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 II. Texas Ethics Commission Chapter 6. Campaign Financing Subchapter B. Reporting Forms 1 TAC sec.6.13 (Editor's Note: The Texas Ethics Commission proposes for permanent adoption the new section it adopts on an emergency basis in this issue. The text of the new section is in the Emergency Rules section of this issue.) The Texas Ethics Commission proposes new sec.6.13, concerning the form necessary for appointing a campaign treasurer by a candidate for state chair of a political party. Jim Mathieson, assistant general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Mathieson also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to comply with the reporting requirements of Title 15, Election Code. 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 Jim Mathieson, 1101 Camino La Costa, Austin, Texas 78752. Only written comments will be accepted. The new section is proposed under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt forms for persons to comply with the reporting requirements of Title 15, Election Code. 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 April 30, 1992. TRD-9205998 Jim Mathieson Assistant General Counsel Texas Ethics Commission Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5800 1 TAC sec.6.14 (Editor's Note: The Texas Ethics Commission proposes for permanent adoption the new section it adopts on an emergency basis in this issue. The text of the new section is in the Emergency Rules section of this issue.) The Texas Ethics Commission proposes new sec.6.14, concerning the form necessary for the reporting of contributions and expenditures by a candidate or officeholder for state chair of a political party. Jim Mathieson, assistant general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Mathieson also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to comply with the reporting requirements of Title 15, Election Code. 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 Jim Mathieson, 1101 Camino La Costa, Austin, Texas 78752. Only written comments will be accepted. The new section is proposed under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt forms for persons to comply with the reporting requirements of Title 15, Election Code. 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 April 30, 1992. TRD-9206000 Jim Mathieson Assistant General Counsel Texas Ethics Commission Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5800 1 TAC sec.6.15 (Editor's Note: The Texas Ethics Commission proposes for permanent adoption the new section it adopts on an emergency basis in this issue. The text of the new section is in the Emergency Rules section of this issue.) The Texas Ethics Commission proposes new sec.6.15, concerning the form necessary for designating a final report by a candidate for state chair of a political party. Jim Mathieson, assistant general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Mathieson also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to comply with the reporting requirements of Title 15, Election Code. 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 Jim Mathieson, 1101 Camino La Costa, Austin, Texas 78752. Only written comments will be accepted. The new section is proposed under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt forms for persons to comply with the reporting requirements of Title 15, Election Code. 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 April 30, 1992. TRD-9206002 Jim Mathieson Assistant General Counsel Texas Ethics Commission Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5800 1 TAC sec.6.17 (Editor's Note: The Texas Ethics Commission proposes for permanent adoption the new section it adopts on an emergency basis in this issue. The text of the new section is in the Emergency Rules section of this issue.) The Texas Ethics Commission proposes new sec.6.17, concerning the form necessary for the reporting of contributions and expenditures by political parties accepting contributions from corporations and labor unions. Jim Mathieson, assistant general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Mathieson also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to comply with the reporting requirements of Title 15, Election Code. 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 Jim Mathieson, 1101 Camino La Costa, Austin, Texas 78752. Only written comments will be accepted. The new section is proposed under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt forms for persons to comply with the reporting requirements of Title 15, Election Code. 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 April 30, 1992. TRD-9206004 Jim Mathieson Assistant General Counsel Texas Ethics Commission Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5800 TITLE 16. ECONOMIC REGULATION Part IV. Texas Department of Licensing and Regulation Chapter 64. Employers of Certain Temporary Common Workers 16 TAC sec.64.70 The Texas Department of Licensing and Regulation proposes an amendment to sec.64.70, concerning the rights and duties of a license holder under Texas Civil Statutes, Article 5221(a)-10, Employers of Certain Temporary Common Workers. The amendment addresses the concern that information collected as a part of the department's inspection or investigation remain privileged and confidential for the exclusive use of the department. James D. Brush, director, policies and standards 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. Mr. Brush, also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be better enforcement of the statute. 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 James D. Brush, Director, Policies and Standards Division, Texas Department of Licensing and Regulation, P. O. Box 12157, 920 Colorado, Room 801, Austin, Texas 78711, (512) 463-7352. The amendment is proposed under Texas Civil Statutes, Article 5221a-10, which provide the Texas Department of Licensing and Regulation with the authority to promulgate rules necessary to regulate the Employers of Certain Temporary Common Workers Act. sec.64.70. Rights and Duties of a License Holder. (a)-(c) (No change.) (d) The license holder must allow [the] department [and] representatives [of other governmental subdivisions], as part of an inspection or investigation, to enter the business premises during regular business hours and examine and copy any records that relate directly or indirectly to the inspection or investigation being conducted. The department [and] representatives [of other governmental subdivisions] may inspect all records, books, and documents, whether paper or electronic, pertaining to the business operation. All information collected is privileged and confidential for the exclusive use of the department for the administration of the Act. (e) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on April 27, 1992. TRD-9205963 Jack Garison Acting Executive Director Texas Department of Licensing and Regulation Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-3127 TITLE 22. EXAMINING BOARDS Part XXIV. Texas Board of Veterinary Medical Examiners Chapter 571. Licensing Examinations 22 TAC sec.571.3 The Texas Board of Veterinary Medical Examiners proposes an amendment to sec.571.3, concerning eligibility of students to sit for the State Board Exam. This rule revision would allow senior veterinary students to sit for the State Board Examination during December rather than waiting until the spring examination. Buddy Matthijetz, executive director, has determined that for the first five- year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Matthijetz 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 none. 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 Texas Board of Veterinary Medical Examiners, 1946 South IH 35, Suite 306, Austin, Texas 78704. The amendment is proposed under Texas Civil Statutes, Article 8890, sec.7(a), which provide the Texas Board of Veterinary Medical Examiners with the authority to make, alter, or amend such rules and regulations as may be necessary or desirable to carry into effect the provisions of this Act. sec.571.3. Licensing Examinations Eligibility. (a) To be eligible to participate in the State Board licensing examination, applicants must be certified by the Dean of the College from which they are expected to graduate that they are in the final year [last 60 days] of their veterinary college education and are expected to graduate. In the absence of a diploma or transcript certifying award of the DVM degree, the Dean must submit a letter stating the applicant did in fact graduate before the applicant is eligible to obtain a license, providing all other requirements have been met. (b) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on May 1, 1992. TRD-9206033 Buddy Matthijetz Executive Director Texas Board of Veterinary Medical Examiners Proposed possible date of adoption: June 11, 1992 For further information, please call: (512) 447-1183 TITLE 25. HEALTH SERVICES Part II. Texas Department of Mental Health and Mental Retardation Chapter 403. Other Agencies and the Public Subchapter P. Public Responsibility Committees 25 TAC sec.sec.403.441-403.454 (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 Mental Health and Mental Retardation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department of Mental Health and Mental Retardation (TXMHMR) proposes the repeal of sec.sec.403.441-403.454, concerning public responsibility committees. The proposal of new Chapter 410, Subchapter A of this title, also concerning public responsibility committees, is proposed contemporaneously in this edition of the Texas Register. The proposed new subchapter updates provisions related to the function of public responsibility committees at TXMHMR facilities and community centers, including membership and term requirements and exhibits. In addition, the PRC's relationship to abuse and neglect investigations has been restructured in anticipation of the transfer of investigatory responsibilities to the Texas Department of Protective and Regulatory Services, expected to occur September 1, 1992. Leilani Rose, director, Office of Financial Services, has determined that for the first five-year period the repeals are in effect there will be no significant fiscal implications for state or local government as a result of administering the sections as proposed. Local economic impact is anticipated to be insignificant. Peg Barry, director, Public Information and Volunteer Services, has determined that for each year of the first five years the repeals are in effect the public benefit is the adoption of the repeals providing for the establishment of an independent, impartial, third-party mechanism for protecting the rights of persons receiving services at TXMHMR facilities and community centers. There will be no effect on small businesses. Comments on the proposal may be submitted to Linda Logan, director, Policy Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 12668, Austin, Texas 78711-2668, within 30 days of publication. The repeals are proposed under Texas Civil Statutes, Article 5547-202, sec.2. 11, which provide the Texas Board of Mental Health and Mental Retardation with rulemaking powers. sec.403.441. Purpose. sec.403.442. Application. sec.403.443. Definitions. sec.403.444. Functions of the PRC. sec.403.445. Membership. sec.403.446. Meetings. sec.403.447. Information Responsibilities. sec.403.448. Investigatory Responsibilities. sec.403.449. Routine Reporting Responsibilities. sec.403.450. Confidentiality. sec.403.451. Redress to Complaints. sec.403.452. Exhibits. sec.403.453. References. sec.403.454. Distribution. 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 May 4, 1992. TRD-9206071 Anne K. Utley Chair Texas Board of Mental Health and Mental Retardation Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 465-4670 Chapter 410. Volunteer Services and Public Information Subchapter A. Public Responsibility Committees 25 TAC sec.sec.410.1-410.14 The Texas Department of Mental Health and Mental Retardation (TXMHMR) proposes new sec.sec.410.1-410.14 concerning public responsibility committees. The repeal of existing Chapter 403, Subchapter P, also concerning public responsibility committees, is proposed contemporaneously in this edition of the Texas Register. The proposed new subchapter updates provisions related to the function of public responsibility committees at TXMHMR facilities and community centers, including membership and term requirements and exhibits. In addition, the PRC's relationship to abuse and neglect investigations has been restructured in anticipation of the transfer of investigatory responsibilities to the Texas Department of Protective and Regulatory Services, expected to occur September 1, 1992. The new subchapter includes provisions which allow individuals considered affiliated with the department to become members of public responsibility committees after a one-year lapse of relationship with the facility or community center. The new subchapter also includes provisions which allow former employees to serve on public responsibility committees after a one-year break in employment (and with the approval of the facility superintendent/director or the director of the community MHMR center). In addition, unpaid consultants have been deleted from the list of parties considered affiliated. Limitations on the number of terms an individual may serve on a public responsibility committee have been deleted from the proposed subchapter. A provision permitting a public responsibility committee member to be removed from the PRC at the request of the majority of the PRC has been added. Additionally, requirements have been added requiring PRC chairs to submit sign-in sheets from meetings and proof of training conducted to ensure accountability. Quarterly and annual report requirements have been revised. Leilani Rose, director, Office of Financial Services, has determined that for the first five-year period the sections are in effect there will be no significant fiscal implications for state or local government as a result of administering the sections as proposed. Local economic impact is anticipated to be insignificant. Peg Barry, director, Public Information and Volunteer Services, has determined that for each year of the first five years the sections are in effect the public benefit anticipated will be the adoption of rules providing for the establishment of an independent, impartial, third-party mechanism for protecting the rights of individuals receiving services at TXMHMR facilities and community centers. There will be no effect on small businesses. Comments on the proposal may be submitted to Linda Logan, Director, Policy Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 12668, Austin, Texas 78711-2668, within 30 days of publication. The sections are proposed under Texas Civil Statutes, Article 5547-202, sec.2. 11, which provide the Texas Board of Mental Health and Mental Retardation with rulemaking powers. sec.410.1. Purpose. The purpose of this subchapter is to clarify the responsibilities, procedures, obligations, and powers of public responsibility committees at all facilities and community MHMR centers of the Texas Department of Mental Health and Mental Retardation. sec.410.2. Application. The provisions of this subchapter shall apply to all facilities of the Texas Department of Mental Health and Mental Retardation, including their community service and outpatient programs, and community mental health and mental retardation centers established pursuant to Texas Health and Safety Code, sec.534.001 et seq (Texas Civil Statutes, Article 5547-203). sec.410.3. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Advocacy, Inc. -The system of advocacy in Texas for individuals with developmental disabilities and mental illness, created pursuant to Public Law 94-103, sec.113. Board-The board of trustees appointed to govern a community mental health and mental retardation center. Commissioner-The commissioner of the Texas Department of Mental Health and Mental Retardation. Community MHMR center-A community center for mental health and mental retardation established pursuant to Texas Health and Safety Code, sec. s534.001 et seq, (Texas Civil Statutes, Article 5547-203). Department or TXMHMR-The Texas Department of Mental Health and Mental Retardation. Facility-Any hospital, state school for individuals with mental retardation, state center, or other facility of the Texas Department of Mental Health and Mental Retardation and its respective outreach programs, or any organizational entity that may be hereafter made a part of the department. Fiscal year-The period of time between the first day of September and the last day of the next August, inclusive. Individual-Any person who seeks or receives services from a TXMHMR facility or community MHMR center. Interdisciplinary team -A group of professionals and paraprofessionals who assess the individual's treatment, training, and habilitation needs and make recommendations for services. Legally adequate consent-Consent given by a person or the person's legally authorized representative when each of the following conditions has been met: (A) Legal capacity-The person giving the consent is 18 years of age or older and has not been adjudicated incompetent to manage personal affairs by an appropriate court of law; is at least 16 years of age but under 18 years of age receiving voluntary mental health services and has not been adjudicated incompetent to manage personal affairs by an appropriate court of law; is the parent of a person served under 18 years of age who is not and has not been married or has not had disabilities of minority removed for general purposes; or is the guardian who, under court order, has been appointed guardian of the person of the individual. (B) Comprehension of information-The person giving the consent has been informed of and comprehends the nature, purpose, consequences, risks, and benefits of and alternatives to the procedures, and the fact that withholding or withdrawal of consent shall not prejudice any future provision of care and services to the individual. (C) Voluntariness-The consent has been given voluntarily and free from coercion and undue influence. Local authorizing agencies-Those agencies which have authorized community mental health and mental retardation centers as defined in Texas Health and Safety Code, sec.sec.534.001 et seq (Texas Civil Statutes Article 5547-203). PRC-Public responsibility committee. PRC log-The summary of investigations of correspondence received directly by the PRC. A sample PRC log is attached as Exhibit A. Volunteer services council (VSC)-An organized group of volunteers which works for the betterment of persons served by the facility or community MHMR center with which it is associated. sec.410.4. Functions of the PRC. (a) The public responsibility committee (PRC) is an independent, impartial third-party mechanism whose functions shall include, but are not limited to, the following: (1) protecting, preserving, promoting, and advocating for the health, safety, welfare, and legal and human rights of individuals; (2) inquiring into or investigating and responding to comment, suggestions, or complaints made with regard to individuals; (3) ensuring that individuals and, when appropriate, their families, are informed of their rights and the means of protecting those rights; (4) participating in the individual's interdisciplinary team as the PRC deems appropriate (for individual's receiving mental health services, PRC participation in the interdisciplinary team shall be with the individual's permission only); and (5) submitting instances of abuse or denial of rights to the appropriate authorities for action. The public responsibility committee, the Office of Consumer Services and Rights Protection, and the abuse investigator shall work together to ensure efficient and thorough investigation of allegations of abuse or neglect. (b) Members of the PRC should be especially familiar with the facility or community MHMR center, its policies, the rights handbooks for persons receiving services, Chapter 404 of this title (relating to Protection of Clients and Staff), and Chapter 405 of this title (relating to Client (Patient) Care). sec.410.5. Membership. (a) Composition. (1) Each facility or community MHMR center's PRC shall have a minimum of seven members. The membership shall include, but not be limited to, representation by parents, guardians, consumer groups, and advocacy organizations. (2) Facilities may appoint a PRC representative in the locale of its community services or outreach programs. (3) At the beginning of each fiscal year, the PRC shall elect one of its members as chairperson and another member as secretary. (4) At no time shall a majority of any PRC membership be composed of relatives of individuals receiving services. (b) Eligibility. Members of the PRC must: (1) reside in the area served by the facility or community MHMR center; (2) be capable of mature, objective judgment of medical, legal, social, and ethical considerations pertaining to the committee's work; (3) not be an individual receiving services; and (4) not be affiliated with the facility or community MHMR center. This includes employment, financial, or other relationship between a person and TXMHMR central office, a facility, community MHMR center, i.e., full-or part-time employee, former employee, member of a governing or advisory board or panel, paid consultant, contractor, or supplier, or a person related to any of such persons, such as spouse, parent, grandparent, sibling, child, or grandchild. Any such relation to the spouse of an employee, former employee, member of a governing or advisory board or panel, consultant, contractor, or supplier is also considered an affiliation. (A) After a one-year separation from employment, former employees may serve on public responsibility committees through the regular channels of becoming a member and with the approval of the facility superintendent/director or the executive director of the community MHMR center. (B) After a one-year separation from affiliation, all other parties considered affiliated shall be permitted to serve on public responsibility committees through the regular channels of becoming a member. (c) Selection of membership. (1) The executive committee of each facility's volunteer services council shall ensure representation and consultation and select persons to serve voluntarily as members of the PRC. At community MHMR centers, the community MHMR center's local authorizing agencies will serve in this function. The selection process shall include: (A) informing local parents' associations, consumer groups, and advocacy organizations of the selection process and time and place of meeting; (B) inviting such groups to submit nominations for membership; (C) giving public notice of the members selected. (2) Members shall be chosen without regard to sex, race, color, creed, national origin, age, or handicap. (d) Terms of appointment. (1) Members shall be appointed to serve a two-year term. There is no limit on the number of terms served. (A) Membership terms shall be staggered. (B) Expiring terms shall extend until another member is appointed. (2) A roster of all current PRC members will be maintained by the Office of Volunteer Services, central office, and may be forwarded to the advocacy system. (e) Reimbursement. Members of a PRC shall serve without compensation other than reimbursement (by the facility or community MHMR center) for actual expenses, including travel expenses necessarily incurred in the performance of their duties. (f) Training requirements. To obtain essential general knowledge of the facility or community MHMR center, members shall participate in training prior to assuming duties. Training shall be provided at convenient times and shall include, but not be limited to: (1) at least one general orientation to the facility or community MHMR center and its volunteer policies; and (2) additional specialized training related to their specific assignment as members of the PRC. (g) Relationship to facility and community MHMR center staff. (1) PRC members and staff should cooperate with each other to develop good working relationships, mutual acceptance, and cooperation. (2) The facility or community MHMR center's rights protection officer shall serve as staff liaison to the public responsibility committee and shall: (A) provide training in legal issues and issues relating to the rights of persons receiving services; (B) coordinate PRC meetings; (C) maintain the PRC log. The rights protection officer shall maintain confidentiality in all matters relating to receipt, investigation, and reporting of complaints by the PRC. (3) The facility or community MHMR center's volunteer services department shall recruit and provide general training and orientation for PRC members, provide appropriate recognition, and maintain the PRC membership roster and submit changes. At community centers where there is no volunteer services department, the executive director of the community center shall appoint an individual to perform these tasks. (4) The superintendent/director of a facility or the executive director of a community MHMR center may designate either the volunteer services department or the facility or center's rights protection officer to provide assistance to the PRC chair in ordering supplies from central office including PRC letterhead and log report forms. A sample sheet of PRC letterhead is attached as Exhibit B. (5) The staff liaison shall maintain confidentiality in all matters relating to receipt, investigation, and reporting of complaints by the PRC. (h) Removal from PRC. (1) A member shall be removed from the PRC at the request of the majority of the PRC or for: (A) failure to attend two consecutive meetings of the PRC in the absence of an acceptable reason; (B) failure to participate in training; and (C) failure to comply with the provisions of this subchapter. (2) Such member may be removed by the executive committee of the facility's volunteer services council or the community MHMR center's local authorizing agencies, as appropriate. (3) Replacement of the member shall be in accordance with this section. sec.410.6. Meetings. (a) The PRC shall meet as often as necessary to fulfill its duties, but not less than quarterly. (b) The PRC shall determine the times and locations of its meetings. Meetings may be held via teleconference. (c) A quorum of the committee (the majority of its total membership) must be present to conduct business. Votes shall be decided by a simple majority of members present. (d) Facility or community MHMR center staff may attend a PRC meeting with the permission of the PRC. (e) The PRC may invite other appropriate individuals to attend a meeting. (f) The minutes of each PRC meeting shall be maintained by the chairperson in a permanent file. sec.410.7. Information Responsibilities. (a) Each facility and community MHMR center shall be responsible for informing individuals, their families, and the general public of the existence, purpose, and composition of the PRC. Each facility or community MHMR center shall accomplish this task by: (1) distributing news releases to news media at least once a year, stressing the fact that the PRC is an independent, impartial body and that none of its members are affiliated with TXMHMR Central Office, the facility, or the community MHMR center, as applicable; (2) publishing brief statements of PRC purpose and accessibility in periodic publications; (3) posting printed notices conspicuously in all appropriate buildings; and (4) including PRC information in handout materials routinely given to newly admitted individuals, their families, and new employees. A sample document which can be used to accomplish this task is attached as Exhibit C. (b) Each PRC shall publish and distribute information related to its purpose and accessibility. (c) Each PRC will respond to questions, comments, and suggestions related to its purpose. (d) When appropriate, the PRC may assist an individual in securing legal counsel but may not offer any legal advice. sec.410.8. Investigatory Responsibilities.
    Each facility or community MHMR center public responsibility committee (PRC) shall receive, investigate, and report complaints made to it by, or on behalf of, individuals and shall make recommendations to appropriate line authorities. (1) Receipt of complaints. In order to facilitate the receipt of complaints, the PRC must have its own post office box. Rental fees must be paid by the facility's volunteer services council. Community MHMR center's may pay the rental fees if volunteer donations are not available. (A) Complaints must be reduced to writing and should be signed. (i) If a complainant is unable to sign or write, the complaint may be dictated and the complainant's mark confirmed by a witness. (ii) A PRC member must reduce an oral complaint to writing and present it to the PRC. (iii) A PRC member must reduce an anonymous complaint to writing and present it to the PRC. (B) Complaints must be sent directly to the PRC and must be opened by a member of the PRC. (C) Each PRC shall maintain confidential records of complaints received, acknowledge receipt of complaints, and inform the individuals and/or complainants of any action taken. A sample form which may be used to acknowledge receipt of complaints is attached as Exhibit D. A sample form which may be used to inform complainants of any action taken is attached as Exhibit E. (E) The PRC shall record all complaints received in the PRC log, a copy of which is attached as Exhibit A and made a part of this subchapter. (2) Investigation of complaints. In investigating an allegation of denial of individual rights, the PRC shall initiate an investigation or inquiry within 10 calendar days of receipt of a complaint. In investigating a report of alleged abuse or neglect, the PRC shall immediately contact the abuse investigator for the facility or community MHMR center, whose responsibility it is to ensure that an abuse investigation is initiated. At facilities, the superintendent or director is responsible for reporting results of abuse investigations to the PRC in accordance with Chapter 404, Subchapter A of this title (relating to Abuse and Neglect in TXMHMR Facilities). (A) Authority to interview. During an investigation, PRC members may interview the following persons, when appropriate: (i) the complainant; (ii) the individual, if other than the complainant; (iii) any other individual involved in the complaint as participant or observer; (iv) family members, guardians, and/or other representatives of the individual; (v) staff members; and (vi) nonstaff members (volunteers). (B) Authority to inspect site. When investigating complaints of abuse or denial of rights, the PRC shall have the authority, with or without notice, to inspect the facility or community MHMR center which offers services to the individual. (C) Authority to inspect records-mental retardation. When investigating complaints of abuse or denial of rights involving an individual with a primary or secondary diagnosis of mental retardation, the PRC shall have the authority, with or without notice, to inspect records relating to the diagnosis, evaluation, or treatment of the individual, as those records relate to the complaint. (D) Authority to inspect records-mental health. PRC investigations of complaints of abuse or denial of rights of persons with a diagnosis of mental illness are considered evaluations of the abuse protection system of facility and community MHMR center programs. The PRC shall have access to the facility or community MHMR center records relating to the treatment of the individual who has filed a complaint with the committee as those records relate to the complaint. (E) Considerations during investigation. PRC members should observe the facility's or community MHMR center's established schedules and procedures during the investigation of any complaint. sec.410.9. Routine Reporting Responsibilities. (a) Membership changes. Within two weeks of the addition of any new member to the committee, the PRC shall submit to the Office of Volunteer Services, central office, the new member's name, address, date of appointment, and term expiration date. (b) Quarterly report. The chairperson of the PRC shall maintain a PRC log. On a quarterly basis, the PRC chair shall submit a report which includes the PRC log, sign-in sheets from meetings, and proof of training conducted in the previous quarter. (1) The quarterly report shall be submitted to: (A) the Office of Consumer Services and Rights Protection, central Office; (B) the facility superintendent/director or the community MHMR center's executive director; (C) at community MHMR center's, the community MHMR center's board of trustees; and (D) the facility or community MHMR center's rights protection officer (RPO), who shall meet with the PRC at least quarterly to discuss trends evidenced in the logs. (2) For any authorized recipient of the log other than qualified auditing personnel within TXMHMR and the parties named in this paragraph and paragraphs (1) and (3) of this subsection, individual's and employee's names shall be obliterated. (c) Annual report. (1) The PRC shall make an annual report of its work, including: (A) a complete membership roster, including names, addresses, dates of appointments, term expiration dates, and the PRC mailing address; (B) dates of meetings and training (including sign-in sheets and proof of training); and (C) a completed annual report form. A sample copy of the annual report form is attached as Exhibit F. (2) The report shall be submitted no later than October 30 of each year to: (A) the facility's superintendent/director of the community MHMR center's executive director; (B) the commissioner and the commissioner's designee (Office of Consumer Services and Rights Protection); and (C) Advocacy, Inc., 7800 Shoal Creek Boulevard, Suite 171 E, Austin, Texas 78757. sec.410.10. Confidentiality. (a) To assure compliance with the legal requirements of confidentiality relating to matters concerning persons served, no individual member of the PRC or the PRC as a whole shall make statements regarding either a complaint or an investigation except to other PRC members, the complainant, facility and community center staff, abuse investigators, the Office of Consumer Services and Rights Protection, and Advocacy, Inc., unless legally adequate consent is obtained for the release of the information held by the PRC. A sample form which may be used to secure legally adequate consent is attached as Exhibit G. (b) Written records may be reviewed by qualified auditing personnel within TXMHMR (e.g., quality assurance staff, internal audit staff). sec.410.11. Redress to Complaints. The responsibility to provide redress to justifiable complaints shall not lie with the PRC. (1) The superintendent or director shall take such corrective action as is appropriate and report the action to the PRC. (2) If no corrective action is taken, or if the PRC believes the corrective action taken is insufficient or inappropriate, the PRC may file an appeal. (A) At facilities, the written appeal should be filed with the commissioner. (B) At community MHMR centers, the written appeal should be filed with the board, with a copy of the appeal sent to the Office of Consumer Services and Rights Protection, central office, TXMHMR. sec.410.12. Exhibits. The following exhibits are referred to in this subchapter: (1) Exhibit A-PRC log; (2) Exhibit B-Stationery; (3) Exhibit C-Notice of the Existence of the PRC; (4) Exhibit D-Acknowledgment or Receipt of Complaint; (5) Exhibit E-Notice of Any Action Taken; (6) Exhibit F-Annual Report Form; (7) Exhibit G-Format for Informed Consent. sec.410.13. References. Reference is made to the following statutes and rules of the department: (1) Chapter 404 of this title (relating to Protection of Clients and Staff). (See especially Chapter 404, Subchapter A of this title relating to Abuse and Neglect in TXMHMR Facilities)); (2) Chapter 405 of this title (relating to Client (Patient) Care); (3) Texas Health and Safety Code, sec.576,005 (Texas Civil Statutes, Article 5547-87); (4) Texas Health and Safety Code, sec.611.004 (Texas Civil Statutes, Article 5561(h)); (5) Texas Health and Safety Code, sec.sec.532.001 et seq (Texas Civil Statutes, Article 5547-202). (6) Texas Health and Safety Code, sec.sec.534.001, et seq (Texas Civil Statutes, Article 5547-203). (7) Texas Health and Safety Code, sec.534.052 (Texas Civil Statutes, Article 5547-204, sec.4.01). (8) Texas Health and Safety Code, sec.596.002 and s596.004 (Texas Civil Statutes, Article 5547-300, sec. s50 and 60). sec.410.14. Distribution. (a) The provisions of this subchapter shall be distributed to members of the Texas Board of Mental Health and Mental Retardation; deputy commissioners; associate and assistant deputy commissioners; and directors of central oOffice; superintendents and directors of all TXMHMR facilities and community MHMR centers; chairpersons of boards of trustees of community MHMR centers; directors of volunteer services; and chairpersons of all facility and community MHMR center public responsibility committees. (b) The superintendent or director of each facility and community MHMR center shall disseminate the information contained in this subchapter to all appropriate staff members and volunteers. 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 May 4, 1992. TRD-9206070 Anne K. Utley Chair Texas Board of Mental Health and Mental Retardation Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 465-4670 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 19. Agents Licensing Subchapter R. Utilization Review Agents 28 TAC sec.sec.19.1701-19.1719 The State Board of Insurance of the Texas Department of Insurance proposes new sec.sec.19.1701-19.1719, concerning health care utilization review agents. The new sections are necessary to provide procedures for regulating the activities of utilization review agents, and to implement the provisions of the Insurance Code, Article 21.58A. New sec.19.1701 contains general provisions and describes the purpose of the rules. Section 19.1702 describes the limitations on applicability of the act and sec.19.1703 contains definitions of certain terms used in the regulations. Section 19.1704 describes the process for obtaining certification as a utilization review agent. Section 19.1705 describes the general standards for utilization review and sec.19.1706 describes the standards for personnel who conduct utilization reviews and their compensation. Section 19. 1707 prohibits certain activities of utilization review agents. Section 19.1708 describes the manner in which utilization review agents may have contact with health care providers and the way in which utilization review agents receive information from those providers. Section 19.1709 describes certain procedures to be followed by utilization review agents when conducting on-site utilization reviews. Section 19.1710 describes the manner in which utilization review agents must give notice of determinations. Section 19.1711 sets out the requirements for affording health care providers a reasonable opportunity to discuss the services with appropriate professionals prior to the issuance of an adverse determination, and sec.19.1712 sets out the requirements for appeal procedures for adverse determinations which are to be maintained by the utilization review agent. Section 19.1713 describes the manner in which the utilization review agent must assure telephone access to the agent. Section 19.1714 describes the requirements for the utilization review agent to preserve the confidentiality of individual medical records. Section 19.1715 describes the requirements for retrospective review of medical necessity. Section 19.1716 sets out the requirements for a utilization review agent complaint system, describes the Texas Department of Insurance complaint process for complaints alleging a violation of the act governing utilization review agents, the Insurance Code, Article 21.58A, or these rules, describes the authority of the Texas Department of Insurance to make inquiries of utilization review agents, requires the commissioner to maintain a list of utilization review agents and provides for on site review by the Texas Department of Insurance. Section 19.1717 describes the sanctions for administrative violations and the procedures for initiating proceedings and appeals related to allegations of those violations. Section 19. 1718 describes the criminal penalties for performing utilization review without a certificate of registration. Section 19.1719 sets forth the responsibilities of HMOs and insurers performing utilization review under the Insurance Code, Article 21.58A, sec.14(g) and (h). Rhonda Myron, deputy commissioner for the life group, has determined that for the first five-year period the proposed sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections, and there will be no effect on the local employment or local economy. Hospitals run by local governments will be affected, however, to the same extent as other hospitals as described in paragraph as follows. Ms. Myron, also has determined that for the first five years the proposed sections are in effect the benefit to the public will be the implementation of regulation of utilization review agents to carry out the purposes of the Insurance Code, Article 21.58A and these rules. The cost to utilization review agents for the first five-year period the proposed sections are in effect is anticipated to be $3,892 for the licensing fees set forth in 28 TAC sec.19.802. Application costs for new utilization review agents are anticipated to be $600- $750. Application costs for existing utilization review agents are anticipated to be $35-$50. Renewal costs are anticipated to be $35-$50 in addition to the licensing fee. The following are additional anticipated costs for procedures required by the statutes and rules which may not currently be a part of the practice of utilization review agents: $40 per call for the opportunity for review prior to adverse determinations; $50-$l00 per year for the orientation of certain personnel required by these rules if those personnel are utilized for utilization review services; and $400 per year for the cost of obtaining medical records. It is anticipated that third party administrators will have the same costs as utilization review agents except for the cost of medical records. There will be minimal incremental costs for health maintenance organizations as most of these organizations are already complying with these rules as they apply to health maintenance organizations. The costs for insurers are anticipated to be the same as those for utilization review agents except that insurers will not have to pay the licensing fees. Comments on the proposal to be considered by the State Board of Insurance must be submitted in writing within 30 days after publication of the proposed section in the Texas Register to Rhonda Myron, Deputy Commissioner for Life Group, Mail Code 106-1A, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas 78714-9104. The new sections are proposed under the Insurance Code, Articles 21.58A and l. 04, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 21.58A, sec.13 grants the board authority to adopt rules and regulations to implement the provisions of Article 21.58A relating to health care utilization review agents. Article l.04(b) authorizes the board to determine rules. Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5, authorize and require each state agency to adopt rules of practice setting forth the nature and requirements of available procedures and prescribe the procedures for adoption of rules by a state administrative agency. sec.19.1701. General Provisions. (a) Statutory basis. This subchapter implements the provisions of the Insurance Code, Article 21.58A which was added by Acts 1991, 2nd Legislature, Chapter 242, sec.11.03(a), which was effective September 1, 1991, but applies only to utilization reviews conducted on or after June 1, 1992. (b) Severability. Where any terms or sections of this subchapter are determined by a court of competent jurisdiction to be inconsistent with any statutes of this state, or to be unconstitutional, the remaining terms and provisions of this subchapter shall remain in effect. (c) Purpose. The purpose of these rules is to: (1) promote the delivery of quality health care in a cost-effective manner, including protection of patient safety; (2) assure that utilization review agents adhere to reasonable standards for conducting utilization reviews; (3) foster greater coordination and cooperation between health care providers and utilization review agents; (4) improve communications and knowledge of benefits among all parties concerned before expenses are incurred; and (5) ensure that utilization review agents maintain the confidentiality of medical records in accordance with applicable law. sec.19.1702. Limitations on Applicability. (a) Except as noted in sec.19.1719 of this subchapter (relating to Responsibility of HMOs and Insurers Performing Utilization Review Under the Insurance Code, Article 21.58A, sec.14, Paragraphs (g) and (h)), all utilization review agents performing utilization reviews of services provided or proposed to be provided to an individual within the state on or after June 1, 1992, regardless of where the utilization review activities are physically based, must comply with this subchapter. All regulations in this subchapter shall relate to persons or entities subject to this subchapter. (b) Insurers and HMOs are not required to obtain a certificate of registration, but must comply with sec.19.1719 of this subchapter. (Source: Based upon the Act, sec.14(g)(h)(i)). However, an insurer or HMO which performs utilization review for a person other than the one for which it is the payor is required to obtain a certification of registration. (c) This subchapter does not apply to a utilization review agent or other person which conducts only the functions of categories of utilization review listed in subparagraphs (1)-(3) of this subsection. (Source: Based upon the Act, sec.14(a)-(e)). (1) A person who provides information to enrollees about scope of coverage or benefits provided under a health insurance policy or health benefit plan and who does not determine whether particular health care services provided or to be provided to an enrollee are medically necessary or appropriate. (2) A person performing utilization review who is employed by, or under contract to, a certified utilization review agency. (3) A utilization review agency which conducts only the categories of utilization review listed in subparagraphs (A)-(E): (A) Reviews performed pursuant to any contract with the federal government for utilization review of patients eligible for services under Title XVIII or XIX of the Social Security Act (42 United States Code, sec.1395 et seq or sec.1396 et seq); (B) reviews performed for the Texas Medicaid Program, the chronically ill and disabled children's services program created pursuant to Chapter 35, Health and Safety Code, any program administered under Title 2, Human Resources Code, any program of the Texas Department of Mental Health and Mental Retardation, or any program of the Texas Department of Criminal Justice; (C) reviews of health care services provided to patients under the authority of the Texas Workers' Compensation Act (Texas Civil Statutes, sec.8308-1.01 et seq); (D) reviews of health care services provided under a policy or contract of automobile insurance promulgated by the department under the Insurance Code, Subchapter A, Chapter 5 or issued pursuant to the Insurance Code, sec.1.14; (E) reviews of health care services performed directly by the plan sponsor who established or maintains an employer welfare benefits plan provided under the terms or benefits of employee welfare plans as defined in sec.31(I) of the Employer Retirement Income Security Act 1974 (29 United State Code, s1002). sec.19.1703. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-Insurance Code, Article 21.58A, entitled Health Care Utilization Review Agents. Administrative procedure act-Administrative Procedure and Texas Register Act (Texas Civil Statutes, Article 6252-13a). Administrator-A person holding a certificate of authority under the Insurance Code, Article 21.07-6. Adverse determination -A determination by a utilization review agent that the health care services furnished or proposed to be furnished to a patient are not medically necessary or not appropriate in the allocation of health care resources. Board-The State Board of Insurance Certificate-A certificate of registration granted by the board to a utilization review agent. Commissioner-The commissioner of insurance Department-Texas Department of Insurance Dental plan-An insurance policy or health benefit plan, including a policy written by a company subject to the Insurance Code, Chapter 20, that provides coverage for expenses for dental services. Dentist-A licensed doctor of dentistry, holding either a D. D.S. or a D.M.D. degree. Emergency care -Bona fide emergency services provided after the sudden onset of a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, such that the absence of immediate medical attention could reasonably be expected to result in: (A) placing the patient's health in serious jeopardy: (B) serious impairment to bodily functions; or (C) serious dysfunction of any bodily organ or part. Enrollee-A person covered by a health insurance policy or plan. This term includes a person who is covered as an eligible dependent of another person. Health benefit plan-A plan of benefits that defines the coverage provisions for health care for enrollees offered or provided by any organization, public or private, other than health insurance. Health care provider-Any person, corporation, facility, or institution licensed by a state to provide or otherwise lawfully providing health care services that is eligible for independent reimbursement for those services. Health insurance policy-An insurance policy, including a policy written by a company subject to the Insurance Code, Chapter 20, that provides coverage for medical or surgical expenses incurred as a result of accident or sickness. Nurse-A professional or registered nurse, a licensed vocational nurse, or a licensed practical nurse. Open records law-Chapter 424, Acts of the 63rd legislature, Regular Session, 1973 (Texas Civil Statutes, Article 6252-17a). Patient-An enrollee or an eligible dependent of the enrollee under a health benefit plan or health insurance plan. Payor-An insurer writing health insurance policies; any preferred provider organization, health maintenance organization, self-insurance plan; or any other person or entity which provides, offers to provide, or administers hospital, outpatient, medical, or other health benefits to persons treated by a health care provider in this state pursuant to any policy, plan, or contract. Person-An individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert. Physician-A licensed doctor of medicine or a doctor of osteopathy. Provider of record-The physician or other health care provider that has primary responsibility for the care, treatment, and services rendered to the enrollee and includes any health care facility when treatment is rendered on an inpatient or outpatient basis. Screening criteria -The written policies, decision rules, medical protocols, or guides used by the utilization review agent as part of the utilization review process (e.g., Appropriateness Evaluation Protocol (AEP) and Intensity of Service, Severity of Illness, Discharge, and Appropriateness Screens (ISD-A)). Utilization review -A system for prospective or concurrent review of the medical necessity and appropriateness of health care services being provided or proposed to be provided to an individual within the state. Utilization review shall not include elective requests for clarification of coverage. Utilization review agent-An entity that conducts utilization review for an employer with employees in this state who are covered under a health benefit plan or health insurance policy; a payor; and/or an administrator. Utilization review plan-The screening criteria and utilization review procedures of a utilization review agent. Working day-A weekday, excluding New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, and Christmas Day. sec.19.1704. Certification of Utilization Review Agents. (a) An application for certification of a utilization review agent must be filed with the Texas Department of Insurance at the following address: Texas Department of Insurance, Mail Code l07-1A, P.O. Box 300105, Dallas, Texas 75303- 0105. (b) The application must be submitted on a form which can be obtained from the Agents License Section, Mail Code l07-1A, Texas Department of Insurance, 333 Guadalupe, P. O. Box 149104, Austin, Texas 78714-9104. (c) The attachments to the application form require the following information: (1) a summary of the Utilization Review Plan which must include the matters listed in subparagraphs (A) and (B) of this paragraph. The Utilization Review Plan must meet the requirements of sec.19.1705 of this subchapter (relating to General Standards of Utilization Review); (A) an adequate summary description of screening criteria and review procedures to be used to determine medical necessity and appropriateness of health care; and (B) assurance that screening criteria and review procedures to be applied in review determination are established with input from appropriate health care providers and approved by physicians; (2) copies of procedures established for appeal of an adverse determination. These procedures must comply with the provisions of sec.19.1712 of this subchapter (relating to Adverse Determinations of Utilization Review Agents) ; (3) copies of procedures established for handling complaints by enrollees, patients, or health care providers. These procedures must comply with sec.19. 1716 of this subchapter (relating to Complaints and Information); (4) copies of policies and procedures which ensure that all applicable state and federal laws to protect the confidentiality of medical records are followed. These procedures must comply with sec.19.1714 of this subchapter (relating to Confidentiality); (5) a certification that the utilization review agent will comply with the provisions of the Act; (6) a description of the categories of persons employed to perform utilization review; (7) copies of policies and procedures for orientation and training of personnel who perform utilization review who are not physicians, dentists, nurses, physicians assistants, registered records administrators, or accredited record technicians as addressed in sec.19.1706 of this subchapter (relating to Personnel); (8) a description of the hours of operation within the State of Texas and how the utilization review agent may be contacted during weekends and holidays. This description must be in compliance with sec.19.1713 of this subchapter (relating to Telephone Access); (9) representative samples of all materials provided by the utilization review agent/applicant to inform its clients, enrollees, or providers of the requirements of the Utilization Review Plan; (10) a description of the basis by which utilization review agent compensates its employees or agents to ensure compliance with paragraph (11) of this subsection; (11) a certification that the utilization review agent shall not permit or provide compensation or anything of value to its employees or agents, condition employment or its employee or agent evaluations, or set its employee or agent performance standards, based on the amount or volume of adverse determinations, reductions or limitations on lengths of stay, benefits, services, or charges or on the number or frequency of telephone calls or other contacts with health care providers or patients, which are inconsistent with the provisions of this subchapter. (Source: Subsection (c) is based upon the Act, sec.3(e)). (d) The utilization review agent shall report any material changes in the information in the application or renewal form referred to in this section, not later than the 30th day after the date on which the change takes effect. (Source: Subsection (d) is based upon the Act, sec.3(g)). (e) The application process is described in paragraphs (1)-(6) of this subsection. (1) The department shall have 30 days after receipt of an application to determine whether the application is complete. In the event that an application is found to be incomplete, the department will give the applicant written notice of the required information necessary to complete the application. If the application is complete, the applicant will be advised that the application has been received and accepted for review. (2) The department shall have 60 days from the date the application is determined to be complete pursuant to paragraph (1) of this subsection to process the application and approve or disapprove it. The department shall give the applicant written notice of any deficiencies noted as a result of the review conducted pursuant to this paragraph. (3) The department shall afford the applicant an opportunity for a meeting to discuss any omissions or deficiencies noted. (4) The applicant must correct the omissions or deficiencies in the application within 30 days of the date of the department's latest notice of such omissions or deficiencies. If the applicant fails to do so, the application file will be closed as an incomplete application. The application fee will not be refundable. (5) The applicant may waive any of the time limits described in this subsection, except in paragraph (4). The applicant may waive the time limit in paragraph (4), of this subsection, only with the consent of the department. (6) The department shall maintain an application file which shall contain the application, notices of omissions or deficiencies, responses and any written materials generated by any person that was considered by the department in evaluating the application. (f) A utilization review agent must apply for license renewal every two years, not later than March 1. A renewal form must be used for this purpose. The renewal fee must be submitted with the renewal form. The renewal form can be obtained from the Agents License Section at the address listed in subsection (b) of this section. The completed renewal form and the renewal fee must be submitted to the department at the address listed in subsection (a) of this section. A utilization review agent may continue to operate under its license after a completed renewal application form and the renewal fee has been timely received by the department until the renewal is finally denied or issued by the department. If a completed renewal application and fee is not received prior to March 1 of the year in which the license must be renewed, the license will automatically be cancelled and the utilization review agent must complete and submit a new application form with the new application fee for another certificate of registration. (g) If an application or renewal is initially denied under this section, the applicant or registrant may appeal such denial under the terms of the provisions of Chapter 1, Subchapter A of this title (relating to Rules of Practice and Procedure) and Texas Civil Statutes, Article 6252-13a, (Administrative Procedure and Texas Register Act). A hearing of such appeal shall be conducted within 45 days of the date the petition for such hearing is filed with the commissioner. A decision by the commissioner shall be rendered within 60 days of the date of the hearing. (h) Applications which are filed on or before December 31, 1992, will be processed on a first in, first out basis by the department. The timelines set out for processing applications in subsections (d) and (e) of this section, will not apply to these applications. (i) Entities which were operating in Texas as utilization review agents prior to June 1, 1992, must file the application described in subsections (a), (b), and (c) of this section, by June 1, 1992. Those entities may continue to operate as utilization review agents pending review of the application unless they are advised in writing that the application has been disapproved, or closed as an incomplete application as described in subsection (e) of this section. No entity may continue to operate after 15 days from the date of the notice of the denial or closure of the file. (j) An applicant for a Certificate of Registration as a Utilization Review Agent must provide evidence that the applicant: (1) has available the services of physicians, nurses, physician's assistants, registered records administrators, accredited records technicians, or individuals who have received formal orientation and training in accordance with policies established by the utilization review agent and filed with the Commissioner of Insurance to carry out its utilization review activities in a timely manner; (2) meets any applicable provisions of these rules and regulations relating to the qualifications of the utilization review agents or the performance of utilization review; (3) has policies and procedures which protect the confidentiality of medical records in accordance with applicable state and federal laws; (4) make itself accessible to patients and providers 40 working hours a week during normal business hours in this state in each time zone in which it operates. sec.19.1705. General Standards of Utilization Review. The utilization review plan, including reconsideration and appeal requirements, shall be reviewed by a physician and conducted in accordance with standards developed with input from appropriate health care providers and approved by a physician. The utilization review plan shall include the following components: (1) a description of the elements of review which the utilization review agent provides such as: (A) prospective review; (i) hospital admission; (ii) procedures (such as surgical and non surgical procedures); (iii) courses of outpatient treatment; (B) second surgical opinion; (C) discharge planning; (D) concurrent review; (E) readmission review; and (F) continued stay authorization; (2) written procedures for: (A) notification of the utilization review agent's determinations provided to the enrollee, a person acting on behalf of the enrollee, or the enrollee's provider of record as addressed in sec.19.1710 of this subchapter (relating to Notice of Determinations Made by Utilization Review Agents); (B) appeal of an adverse determination and a copy of any forms used during the appeal process, as required by sec.19.1711 and sec.19.1712 of this subchapter (relating to Requirements Prior to Adverse Determination and Appeal of Adverse Determinations of Utilization Review Agents); (C) receiving or redirecting a toll-free normal business hour and after-hour calls, either in person or by recording, and assurance that a toll-free number will be maintained 40 hours per week during normal business hours as addressed in sec.19.1713 of this subchapter (relating to Utilization Review Agent's Telephone Access); (D) review including: (i) any form used during the review process; (ii) time frames that shall be met during the review; (E) handling of written complaints by enrollees, patients, or health care providers as addressed in sec.19.1716(a) of this subchapter (relating to Complaints and Information); (F) determining if physicians or other health care providers utilized by the utilization review agent are licensed, qualified, and appropriately trained; (G) orientation and training of personnel who perform utilization review, who are not physicians or dentists, nurses, physicians assistants, registered records administrators, or accredited records technicians; (H) assuring that patient-specific information obtained during the process of utilization review, as addressed in s19.1714 of this subchapter (relating to Confidentiality), will be: (i) kept confidential in accordance with applicable federal and state laws; (ii) used solely for the purposes of utilization review, quality assurance, discharge planning, and catastrophic case management; (iii) shared with only those agencies (such as the claims administrator) who have authority to receive such information; and (iv) summary data shall not be considered confidential if it does not provide sufficient information to allow identification of individual patients; (I) notifying health care providers of any intended publication of quality review studies or performance tracking studies; (3) screening criteria. Each utilization review agent shall utilize written medically acceptable screening criteria and review procedures which are established and periodically evaluated and updated with appropriate involvement from the physicians, including practicing physicians, and other health care providers. Such written screening criteria and review procedures shall be available for review and inspection by the commissioner or his or her designated representative and copying as necessary for the commissioner to carry out his or her lawful duties under the Insurance Code, provided, however, that any information obtained or acquired under the authority of these rules and the Act, is confidential and privileged and not subject to the open records law or subpoena except to the extent necessary for the board or commissioner to enforce these rules and the Act. (Source: Based upon the Act, sec.4(i)); (4) utilization review decisions. Utilization review decisions shall be made in accordance with accepted current medical criteria that are established, taking into account special circumstances of each case that may require a deviation from the norm stated in the medical criteria. Criteria must be objective, clinically valid, compatible with established principles of health care, and flexible enough to allow deviations from the norms when justified on a case-by- case basis. Screening criteria must be used only to determine whether to certify the requested treatment, or to refer the request to the appropriate physician, dentist, or another health care provider to determine medical necessity; (5) delegation of review. Provide circumstances, if any, under which the utilization review agent may delegate the review to a hospital utilization review program. sec.19.1706. Personnel. (a) Personnel employed by or under contract with the utilization review agent to perform utilization review shall be appropriately trained and qualified and if applicable, currently licensed. Personnel who obtain information directly from the physician, dentist or health care provider, either orally or in writing, and who are not physicians or dentists, shall be nurses, physicians assistants, registered records administrators, or accredited records technicians, who are either licensed or certified, or shall be individuals who have received formal orientation in accordance with policies and procedures established by the utilization review agent to assure compliance with this section, and a description of such policies and procedures shall be filed with the application referred to in sec.19.1704 of this subchapter (relating to Certification of Utilization Review Agents). This provision shall not be interpreted to require such qualifications for personnel who perform clerical or administrative tasks. (Source: Based upon the Act, sec.4(c)). (b) A utilization review agent may not permit or provide compensation or any thing of value to its employees or agents, condition employment or its employee or agent evaluations, or set its employee or agent performance standards, based on the amount or volume of adverse determinations, reductions or limitations on lengths of stay, benefits, services, or charges or on the number or frequency of telephone calls or other contacts with health care providers or patients, which are inconsistent with the provisions of this subchapter. (Source: Based upon the Act, sec.4(f)). (c) The utilization review agent is required to provide the number, type and minimum qualification or qualifications of the personnel either employed or under contract to perform the utilization review to the commissioner. Utilization review agents shall be required to adopt written procedures used to determine if physicians or other health care providers utilized by the utilization review agent are licensed, qualified, and appropriately trained, and must maintain records on such. (d) Utilization review conducted by a utilization review agent shall be under the direction of a physician current licensed to practice medicine by a state licensing agency in the United States. (Source: the Act, sec.4(h)). (e) Utilization review dental plans shall be reviewed by a dentist currently licensed by a state licensing agency in the United States. sec.19.1707. Prohibitions of Certain Activities of Utilization Review Agents. (a) A utilization review agent may not engage in unnecessary or unreasonably repetitive contacts with the health care provider or patient and shall base the frequency of contacts or reviews on the severity or complexity of the patient's condition or on necessary treatment and discharge planning activity. (Source the Act, sec.4(j)). (b) A utilization review agency shall not set or impose any notice or other review procedures contrary to the requirements of the health insurance policy or health benefit plan. (Source: the Act, sec.4(d)). sec.19.1708. Utilization Review Agent Contact with and Receipt of Information from Health Care Providers. (a) A health care provider may designate one or more individuals as the initial contact or contacts for utilization review agents seeking routine information or data. In no event shall the designation of such an individual or individuals preclude a utilization review agent or medical advisor from contacting a health care provider or others in his or her employ where a review might otherwise be unreasonably delayed or where the designated individual is unable to provide the necessary information or data requested by the utilization review agent. (Source: the Act, sec.4(g)). (b) Unless precluded or modified by contract, a utilization review agent shall reimburse health care providers for the reasonable costs for providing medical information in writing, including copying and transmitting any requested patient records or other documents. A health care provider's charge for providing medical information to a utilization review agent shall not exceed the cost of copying set by rules of the Texas Workers Compensation Commission for records and may not include any costs that are otherwise recouped as a part of the charge for health care. (Source: the Act, sec.4(1)). (c) When conducting routine utilization review, the utilization review agent shall collect only the information necessary to certify the admission, procedure or treatment and length of stay. (1) Utilization review agents shall not routinely require hospitals and physicians to supply numerically codified diagnoses or procedures to be considered for certification. Utilization review agents may ask for such coding, since if it is known, its inclusion in the data collected increases the effectiveness of the communication. (2) Utilization review agents shall not routinely request copies of medical records on all patients reviewed. During prospective and concurrent review, copies of medical records should only be required when a difficulty develops in certifying the medical necessity or appropriateness of the admission or extension of stay. In those cases, only the necessary or pertinent sections of the record should be required. (d) Information in addition to that described in this section may be requested by the utilization review agent or voluntarily submitted by the provider, when there is significant lack of agreement between the utilization review agent and health care provider regarding the appropriateness of certification during the review or appeal process. "Significant lack of agreement" means that the utilization review agent: (1) has tentatively determined, through its professional staff, that a service cannot be certified; (2) has referred the case to a physician for review; and (3) has talked to or attempted to talk to the attending physician for further information. (e) The utilization review agent should share all clinical and demographic information on individual patients among its various divisions (e.g., certification, discharge planning, case management) to avoid duplicate requests for information from enrollee or providers. sec.19.1709. On-Site Review by the Utilization Review Agent. (a) Unless approved for an individual patient by the provider of record or modified by contract, a utilization review agent shall be prohibited from observing, participating in, or otherwise being present during a patient's examination, treatment, procedure, or therapy. In no event shall this section otherwise be construed to limit or deny contact with a patient for purposes of conducting utilization review unless otherwise specifically prohibited by law. (Source: the Act, sec.4(e)). (b) Utilization review agents' staff shall identify themselves by name and by the name of their organization and, for on-site reviews, should carry picture identification and the utilization review company identification card with the certificate number assigned by the Texas Department of Insurance. Utilization review agents should assure that their on-site review staff register with the appropriate contact person, if available, prior to requesting any clinical information or assistance from hospital staff and wear appropriate hospital supplied identification tags while on the premises. Utilization review agents shall agree, if so requested, that the medical records remain available in the designated areas during the on-site review and that reasonable hospital administrative procedures shall be followed by on-site review staff so as to not disrupt hospital operations or patient care. Such procedures, however, should not obstruct or limit the ability of the utilization review agent to efficiently conduct the necessary review on behalf of the patient's health benefit plan. sec.19.1710. Notice of Determinations Made by Utilization Review Agents. (Source: the Act, sec.5). (a) A utilization review agent shall notify the enrollee, a person acting on behalf of the enrollee, or the enrollee's provider of record of a determination made in a utilization review. (b) Except in the case of adverse determinations which are addressed in subsection (c)(2) of this section, the notification required by this section must be mailed or otherwise transmitted not later than two working days after the date of the request for utilization review and all medical information necessary to substantiate the need for the treatment of service recommended is received by the agent. (c) Notification of adverse determination by the utilization review agent must include: (1) the principal reasons for the adverse determination; (2) a description or the source of the screening criteria that were utilized as guidelines in making the determination; and (3) a description of the procedure for appeal. (d) The adverse determination notification must be provided: (1) within one working day by telephone or electronic transmission to the provider of record in the case of a patient who is hospitalized at the time of the adverse determination; or (2) within three working days in writing to the provider of record and the patient if the patient is not hospitalized at the time of the adverse determination. sec.19.1711. Requirements Prior to Adverse Determination. (Source: the Act, sec.4(k)). Subject to the notice requirements of sec.19.1710 of this subchapter (relating to Notice of Determinations Made By Utilization Review Agents), in any instance where the utilization review agent is questioning the medical necessity or appropriateness of the health care services, the health care provider who ordered the services shall be afforded a reasonable opportunity to discuss the plan of treatment for the patient and the clinical basis for the utilization review agent's decision with a physician or, in the case of a dental plan with a dentist, prior to issuance of an adverse determination. The utilization review agent shall have written procedures describing how the opportunity is afforded. sec.19.1712. Appeal of Adverse Determination of Utilization Review Agents. (Source: the Act, sec.6). (a) A utilization review agent shall maintain and make available a written description of an appeal procedure of an adverse determination. (b) The procedures for appeals shall be reasonable and shall include the following: (1) a provision that an enrollee, a person acting on behalf of the enrollee, or the enrollee's physician or health care provider may appeal the adverse determination and shall be provided, on request, a clear and concise statement of the clinical basis for the adverse determination; (2) a list of documents needed to be submitted by the appealing party to the utilization review agent for the appeal; (3) a provision that appeal decisions shall be made by a physician, provided that, if the appeal is denied and within 10 working days the health care provider sets forth in writing good cause for having a particular type of a specialty provider review the case, the denial shall be reviewed by a health care provider in the same or similar specialty as typically manages the medical condition, procedure, or treatment under discussion for review of the adverse determination; (4) in addition to the written appeal, a method for expedited appeal procedure for emergency care denials and denials of continued stays for hospitalized patients, which shall include a health care provider who has not previously reviewed the case; such appeal must be completed no later than one working day following the day on which the appeal, including all information necessary to complete the appeal, is made to the utilization review agent; and (5) written notification to the appealing party of the determination of the appeal, as soon as practical, but in no case later than 30 days after receiving all the required documentation of the appeal. If the appeal is denied, the written notification shall include the clinical basis for the appeal's denial and the speciality of the physician making the denial. sec.19.1713. Utilization Review Agent's Telephone Access. (Source: the Act, sec.7). (a) A utilization review agent shall have appropriate personnel reasonably available by toll-free telephone at least 40 hours per week during normal business hours in both time zones in Texas, if applicable, to discuss patients' care and allow response to telephone review requests. (b) A utilization review agent must have a telephone system capable of accepting or recording or providing instructions to incoming calls during other than normal business hours and shall respond to such calls not later than two working days of the later of the date on which the call was received or the date the details necessary to respond have been received from the caller. sec.19.1714. Confidentiality. (Source: the Act, sec.8). (a) A utilization review agent shall preserve the confidentiality of individual medical records to the extent required by law. (b) A utilization review agent may not disclose or publish individual medical records or other confidential information about a patient obtained in the performance of utilization review without the prior written consent of the patient or as otherwise required by law. A utilization review agent may provide confidential information to a third party under contract or affiliated with the utilization review agent for the sole purpose of performing or assisting with utilization review. Information provided to third parties shall remain confidential. (c) The utilization review agent may not publish data which identifies a particular physician or health care provider, including any quality review studies or performance tracking data without prior written notice to the involved provider. This prohibition does not apply to internal systems or reports used by the utilization review agent. (d) Documents in the custody of the utilization review agent that contain confidential patient information or physician or health care provider financial data shall be destroyed by a method which induces complete destruction of the information when the agent determines the information is no longer needed. (e) All patient, physician, and health care provider data shall be maintained by the utilization review agent in a confidential manner which prevents unauthorized disclosure to third parties. Nothing in this article shall be construed to allow a utilization review agent to take actions that violate a state or federal statute or regulation concerning confidentiality of patient records. (f) To assure confidentiality, a utilization review agent must, when contacting a physician's office or hospital, provide its certification number, the caller's name, and professional qualifications to the provider's named utilization review representative in the health care provider's office. (g) Upon request by the provider, the utilization review agent shall present written documentation that it is acting as an agent of the payor for the relevant patient. (h) The utilization review agent's procedures shall specify that specific information exchanged for the purpose of conducting review will be considered confidential, be used by the private review agent solely for the purposes of utilization review, and shared by the utilization review agent with only those third parties who have authority to receive such information, such as the claim administrator. The utilization review agent's process shall specify that procedures are in place to assure confidentiality and that the utilization review agent agrees to abide by any federal and state laws governing the issue of confidentiality. Summary data which does not provide sufficient information to allow identification of individual patients or providers need not be considered confidential. (i) Medical records and patient specific information shall be maintained by the utilization review agent in a secure area with access limited to essential personnel only. (j) Information generated and obtained by the utilization review agents in the course of utilization review shall be retained for at least two years if the information relates to a case for which an adverse decision was made at any point or if the information relates to a case which may be reopened. sec.19.1715. Retrospective Review of Medical Necessity. (Source: the Act, sec.11). (a) When a retrospective review of the medical necessity and appropriateness of health care service is made under a health insurance policy or plan: (1) such retrospective review shall be based on written screening criteria established and periodically updated with appropriate involvement from physicians, including practicing physicians, and other health care providers; and (2) the payor's system for such retrospective review of medical necessity and appropriateness shall be under the direction of a physician. (b) When an adverse determination is made under a health insurance policy or plan based on a retrospective review of the medical necessity and appropriateness of the allocation of health care resources and services, the payor shall afford the health care providers the opportunity to appeal the determination in the same manner afforded the enrollee, with the enrollee's consent to act on his or her behalf, but in no event shall health care providers be precluded from appeal if the enrollee is not reasonably available or competent to consent. Such appeal shall not be construed to imply or confer on such health care providers any contract rights with respect to the enrollee's health insurance policy or plan that the health care provider does not otherwise have. sec.19.1716. Complaint and Information. (a) Utilization Review Agent's Complaint System. (Source: Based on the Act, sec.4(m)). A utilization review agent shall establish and maintain a complaint system that provides reasonable procedures for the resolution of written complaints initiated by enrollees, patients, or health care providers concerning the utilization review and shall maintain records of such written complaints for two years from the time the complaints are filed. The complaint procedure shall include a written response to the complainant by the agent within 60 days. By March 1, of each year, the utilization review agent shall submit to the commissioner or his or her delegated representative, a summary report of all complaints at such times and in such form as the board may require and shall permit the commissioner to examine the complaints and all relevant documents at any time. The summary report covers reviews performed by the utilization review agent during the preceding calendar year and includes: (1) a summary of the resolved complaints listing the number of complaints, classification of complainant (i.e. health care provider, enrollee, patient, etc.), the type of complaints filed, and the complaint resolution; (2) a summary of the unresolved complaints listing the number of complaints, classification of complainant and a brief explanation of all complaints not resolved; and (3) a summary of appeals listing the number of appeals and the results of any appeals under adverse determinations procedures. (b) Complaints to the department. Within a reasonable time period, upon receipt of a written complaint alleging a violation of this subchapter or the Act, by a utilization review agent, from an enrollee's health care provider, a person acting on behalf of the enrollee, or the enrollee, the commissioner or his or her delegated representative shall investigate the complaint and furnish a written response to the complainant and the utilization review agent named. The response will not identify in any manner, the patient or patients, without written consent. This response must include the following: (1) a statement of the original complaint; (2) a copy of any written response by the utilization review agent. The written response should not contain privileged medical records. If it is necessary to refer to medical records they shall be separately forwarded with the response and clearly marked as privileged medical records; (3) a statement of the findings of the commissioner or his or her delegated representative and an explanation of the basis of such findings; (4) corrective actions, if any, on the part of the utilization review agent which the commissioner or his or her delegated representative finds appropriate and whether the utilization review agent has voluntarily agreed to take such action; (5) a time frame in which any corrective actions should be completed. The utilization review agent will provide evidence of corrective action within the specified time frame to the commissioner or his representative. (c) Authority of the department to make inquiries. In addition to the authority of the commissioner to respond to complaints described in subsection (b) of this section, the department is authorized to address inquiries to utilization review agents in relation to the agents business condition or any matter connected with its transactions which the department may deem necessary for the public good or for a proper discharge of its duties. It shall be the duty of the agent to promptly answer such inquiries in writing. (d) Lists of utilization review agents. The commissioner shall maintain and update monthly a list of utilization review agents issued certificates and the renewal date for those certificates. The commissioner shall provide the list at cost to all individuals or organizations requesting the list. (Source: the Act, sec.12). (e) On site review by the Texas Department of Insurance. (1) The commissioner or the commissioner's designated representative is authorized to make a complete on-site review of the operations of each utilization review agent at the principal place of business for such agent, as often as is deemed necessary. (2) Utilization review agents will be notified of the scheduled on-site visit by letter, which will specify, as a minimum, the identity of the commissioner's designated representative and the expected arrival date and time. (3) The utilization review agent must make available during such on-site visits all records relating to its operation. (4) The commissioner or the designated representative may perform periodic telephone audits of utilization review agents authorized to conduct business in this state, to determine if the agent are reasonably accessible. sec.19.1717. Administrative Violations (Source: Subsections (a)-(d) are based on the Act, sec.9). (a) If the commissioner through the commissioner's designated representative, believes that a utilization review agent has violated or is violating the Act, the commissioner's designated representative shall notify the utilization review agent of the alleged violation and may compel the production of any and all documents or other information. (b) The commissioner's designated representative may initiate the proceedings under this section after the 30th day after the date the commissioner's designated representative notifies the agent as required by subsection (a) of this section. (c) Proceedings under this article are a contested case for the purpose of Texas Civil Statutes, Article 6252-13a (Administrative Procedure and Texas Register Act). (d) If after notice and hearing the commissioner determines that the utilization review agent has violated or is violating any provision of this article, the commissioner may: (1) impose sanctions under the Insurance Code, Article 1.10, sec.7; or (2) issue a cease and desist order under the Insurance Code, Article 1. 10A. (e) If the utilization review agent has violated or is violating any provisions of the Insurance Code, other than this Article or applicable rules of the department, sanctions may be imposed under the Insurance Code, Article 1.10 or Article 1.10A. (f) The commission of fraudulent or deceptive acts or omissions in obtaining, attempting to obtain, or use of certification as a utilization review agent shall be a violation of the Act. sec.19.1718. Criminal Penalties.
      Any person or entity performing utilization review without a certificate as required by this article commits an offense. Except as otherwise provided by this section, an offense under this section is a Class A misdemeanor. If it is shown in the trial of a violation of this section that the person or entity has once before been convicted of a violation of this section, on conviction the person or entity shall be punished for a third degree felony. Each day of violation constitutes a separate offense. (Sources: the Act, sec.10). sec.19.1719. Responsibility of HMOs and Insurers Performing Utilization Review Under the Insurance Code, Article 21.58A, sec.14, Paragraphs (g) and (h). (a) HMOs performing utilization review under the Act, sec.14(g), must respond to the annual survey on utilization review distributed by the Texas Department of Insurance within 30 days of receipt of the survey, and Comply with all the following requirements of the Act: (1) utilization review plan, including reconsideration and appeal requirements, shall be reviewed by a physician and conducted in accordance with standards developed with input from appropriate health care providers and approved by a physician (Source: the Act, sec.4(b)); (2) personnel employed by or under contract with HMOs performing utilization review shall be appropriately trained and qualified. Personnel who obtain information directly from the physician or dentist or health care provider, either orally or in writing, and who are not physicians or dentists shall be nurses, physicians assistants, registered records administrators, or accredited records technicians, who are either licensed or certified, or shall be individuals who have received formal orientation in accordance with policies and procedures established by the utilization review agent to assure compliance with this section, and a description of such policies and procedures shall be filed with the commissioner. This provision shall not be interpreted to require such qualifications for personnel who perform clerical or administrative tasks (Source: Based upon the Act, sec.4(c)); (3) unless approved for an individual patient by the provider of record or modified by contract, HMO performing utilization review shall be prohibited from observing, participating in, or otherwise being present during a patient's examination, treatment, procedure or therapy. In no event shall this section otherwise be construed to limit or deny contact with a patient for purposes of conducting utilization review unless otherwise specifically prohibited by law (Source: the Act, sec.4(e)); (4) HMO performing utilization review may not permit or provide compensation or any thing of value to its employees or agents, condition employment or its employee or agent evaluations, or set its employee or agent performance standards, based on the amount or volume of adverse determinations, reductions or limitations on lengths of stay, benefits, services, or charges or on the number or frequency of telephone calls or other contacts with health care providers or patients, which are inconsistent with the provisions of this subchapter (Source: the Act, sec.4(f)); (5) utilization review conducted by an HMO performing utilization review shall be under the direction of a physician licensed to practice medicine by a state licensing agency in the United States (Source: the Act, sec.4(h)); (6) each HMO performing utilization review shall utilize written medically acceptable screening criteria and review procedures which are established and periodically evaluated and updated with appropriate involvement from the physicians, including practicing physicians, and other health care providers. Such written screening criteria and review procedures shall be available for review and inspection by the commissioner and copying as necessary for the commissioner to carry out his or her lawful duties under this code, provided, however, that any information obtained or acquired under the authority of this subsection and article is confidential and privileged and not subject to the open records law or subpoena except to the extent necessary for the board or commissioner to enforce the Act (Source: the Act, sec.4(i)); and (7) unless precluded or modified by contract, an HMO performing utilization review shall reimburse health care providers for the reasonable costs for providing medical information in writing, including copying and transmitting any requested patient records or other documents. A health care provider's charge for providing medical information to a utilization review agent shall not exceed the cost of copying set by rules of the Texas Workers Compensation Commission for records and may not include any costs that are otherwise recouped as a part of the charge for health care (Source: the Act, sec.4(1)). (b) Nothing in the Act or this subchapter shall be construed to prohibit or limit the distribution of a proportion of the savings from the reduction or elimination of unnecessary medical services, treatment, supplies, confinements, or days of confinement in a health care facility through profit sharing, bonus, or withhold arrangements to participating physicians or participating health care providers for rendering health care services to enrollees (Source: Based upon the Act, sec.14(g)(1)). (c) The complaint system established by 28, Texas Administrative Code, sec.11.506(6) shall be considered to be in compliance with this section so long as it provides for complaints for health care providers. (d) HMOs must submit to assessment of maintenance taxes under Article 20A. 33, Texas Health Maintenance Organization Act (Article 20A.33, Vernon's the Insurance Code), to cover the costs of administering compliance of health maintenance organizations under the Act (Source: sec.14(g)(3) of the Act). (e) When an health maintenance organization performs utilization review for a person or entity subject to this article other than one for which it is the payor, such health maintenance organization shall be required to obtain a certificate under sec.3, Article 21.58A and comply with all the provisions of Article 21.58A (Source: sec.14(i) of the Act). (f) HMOs performing utilization review under the Insurance Code, Article 21.58A, sec.14, paragraph (g) will be subject to sec.19.1714 of this subchapter (relating to Confidentiality); sec.19.1716(b) of this subchapter (relating to Complaints and Information); sec.19.1717 of this subchapter (relating to Administrative Violations), with respect to their operations under the provisions of the Act, sec.14(g), restated in subsection (a) of this section. (g) Insurers performing utilization review under sec.14, paragraph (h) of the Act must comply with the requirements of paragraphs (1)-(14) of this subsection. (1) The utilization review plan, including reconsideration and appeal requirements, shall be reviewed by a physician and conducted in accordance with standards developed with input from appropriate health care providers and approved by a physician. (Source: the Act, sec.4(b)). (2) Personnel employed by or under contract with insurers performing utilization review shall be appropriately trained and qualified. Personnel who obtain information directly from the physicians, dentists, or health care providers, either orally or in writing, and who are not physicians or dentists shall be nurses, physician assistants, registered records administrators, or accredited records technicians, who are either licensed or certified, or shall be individuals who have received formal orientation and training in accordance with policies and procedures established by the insurer to assure compliance with this section, and a description of such policies and procedures shall be filed with the department. This provision shall not be interpreted to require such qualifications for personnel who perform clerical or administrative tasks. (Source: Based upon the Act, sec.4(c)). (3) An insurer performing utilization review shall not set or impose any notice or other review procedures contrary to the requirements of the health insurance policy or health benefit procedures contrary to the requirements of the health insurance policy or health benefit plan. (Source: the Act, s4(d)). (4) Unless approved for an individual patient by the provider, or record, or modified by contract, an insurer performing utilization review shall be prohibited from observing, participating in, or otherwise being present during a patient's examination, treatment, procedures, or therapy. (Source: the Act, sec.4(e)). (5) An insurer performing utilization review may not permit or provide compensation or any thing of value to its employees or agents, condition employment or its employee or agent evaluations, or set its employee or agent performance standards, based on the amount or volume of adverse determinations, reductions, or limitations on lengths of stay, benefits, services, or charges or on the number of frequency of telephone calls or other contacts with health care providers or patients, which are inconsistent with the provisions of the Act. (Source: the Act, sec.4(f)). (6) A health care provider may designate one or more individuals as the initial contact or contacts for insurers performing utilization review seeking routine information or data. In no event shall the designation of such an individual or individuals preclude a utilization review agent or medical advisor from contacting a health care provider or others in his or her employ where a review might otherwise be unreasonably delayed or where the designated individual is unable to provide the necessary information or data requested by the insurer performing utilization review. (Source: the Act, sec.4(g)) (7) Utilization review conducted by an insurer performing utilization review shall be under the direction of a physician licensed to practice medicine by a state licensing agency in the United States. (Source: the Act, sec.4(h)). (8) Each insurer performing utilization review shall utilize written medically acceptable screening criteria and review procedures which are established and periodically evaluated and updated with appropriate involvement from physicians, including practicing physicians, and other health care providers. Such written screening criteria and review procedures shall be available for review and inspection by the commissioner and copying as necessary for the commissioner to carry out his or her lawful duties under the Act, provided, however, that any information obtained or acquired under the authority of this subsection and the Act is confidential and privileged and not subject to the open records law or subpoena except to the extent necessary for the board or commissioner to enforce the Act. (Source: the Act, sec.4(i)). (9) An insurer performing utilization review may not engage in unnecessary or unreasonable repetitive contacts with the health care provider or patient and shall base the frequency of contacts or reviews on the severity or complexity of the patient's condition or on necessary treatment and discharge planning activity. (Source: the Act, sec.4(j)). (10) Subject to the notice requirements of sec.5 of the Act, in any instance where the insurer performing utilization review is questioning the medical necessity or appropriateness of health care services, the health care provider who ordered the services shall be afforded a reasonable opportunity to discuss the plan of treatment for the patient and the clinical basis for the insurer's decision with a physician or, in the case of a dental plan with a dentist, prior to issuance of an adverse determination. (Source: Based upon the Act, sec.4(k)). (11) Unless precluded or modified by contract, an insurer performing utilization review shall reimburse health care providers for the reasonable costs for providing medical information in writing, including copying and transmitting and requested patient records or other documents. A health care provider's charges for providing medical information to an insurer performing utilization review shall not exceed the cost of copying set by rule of the Texas Worker's Compensation Commission for records and may not include any costs that are otherwise recouped as a part of the charge for health care. (Source: the Act, sec.4(1)). (12) An insurer performing utilization review shall establish and maintain a complaint system that provides reasonable procedures for the resolution of written complaints initiated by enrollees, patients, or health care providers concerning the utilization review and shall maintain records of such written complaints for two years from the time the complaints are filed. The complaint procedure shall include a written response to the complainant by the agent within 60 days. The insurer performing utilization review shall submit to the commissioner a summary report of all complaints at such times and in such form as the board may require and shall permit the commissioner to examine the complaints and all relevant documents at any time. (Source: the Act, sec.4(m)). (13) The insurer performing utilization review may delegate utilization review to qualified personnel in the hospital or health care facility where the health care services were or are to be provided. (Source: the Act, sec.4(n)). (14) Insurers performing utilization review must comply with subparagraphs (A)- (E) of this paragraph. (A) Insurers must respond to the annual survey on utilization review distributed by the Texas Department of Insurance within 30 days of receipt of the survey. (B) Insurers must comply with all the requirements of the Act, sec.8, restated in sec.19.1714 of this subchapter (relating to Confidentiality). (C) When an insurer performs utilization review for a person or entity subject to this article other than one for which it is the payor, such insurer shall be required to obtain a certificate under sec.3, of the Act and comply with all the provisions of the Act. (Source: the Act, sec.14(i)). (D) Insurers performing utilization review under, s14, paragraph (h) of the Act, will be subject to sec.19.1714 of this subchapter (relating to Confidentiality), subsection (b) of sec.19.1716 of this subchapter (relating to Complaints and Information) and sec.19.1717 of this subchapter (relating to Administrative Violations), with respect to their operations under the provision of sec.14, paragraph (h) of the Act restated in subsection (c) of this section. (E) Insurers performing utilization review under sec.14(g) and (h) of the Act, must furnish the information listed in clauses (i)-(iii) of this subparagraph to the Utilization Review Department of the Texas Department of Insurance: (i) complete name; (ii) principal locality in which utilization review is being performed; and (iii) complete address, including contact person. 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 May 1, 1992. TRD-9206050 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-6327 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part IX. Texas Water Commission Chapter 305. Consolidated Permits Amendments, Renewals, Transfers, Corrections, Revocation, and Suspension of Permits 31 TAC sec.305.70 The Texas Water Commission proposes new sec.305.70, concerning a program for the evaluation of renewal applications for wastewater discharge permits within the same river basin. This section is proposed to implement portions of Senate Bill 818, 72nd Legislature, 1991, known as the Texas Clean Rivers Act. The section establishes a program for the comprehensive evaluation of the combined effects of permitted discharges on water quality within each watershed and to facilitate the receipt of information from the public and other entities affected by those discharges. New sec.305.70(a) provides that the commission, to the greatest extent practicable, will evaluate all renewal applications within a single river basin within the same year. New sec.305.70(b) establishes termination dates for existing wastewater discharge permits issued by the commission. New sec.305.70(c) provides that renewal applications for permits expiring on or after June 1, 1993, shall be due six months prior to the designated expiration dates in sec.305.70(b) . Renewal applications for permits expiring on or before May 31, 1993, shall be submitted prior to the expiration dates designated in sec.305.70(b). Section 305. 70(d) provides that the executive director may require submission of a renewal application sooner than the dates set out in sec.305.70(b) and (c) upon a determination that a particular waste disposal activity necessitates a more frequent evaluation. Section 305.70(e) provides that permit renewals generally will be issued to maintain a five-year cycle of the expiration date schedule in subsection (b) although the commission may issue a permit for less than a five-year term if it determines that a shorter term is necessary. This section establishes new expiration dates for existing permits. To determine the new termination date, permittees should review the list in sec.307. 70(b) to locate the basin into which their discharge flows, and then locate the segment as it appears on the first page of their commission discharge permit. The expiration date for permits which authorize a discharge to multiple basins and/or segments shall be the earliest date listed for the basins or segments. The order of basins was generally determined by ranking the loading of biochemical oxygen and carbonaceous oxygen demanding constituents for each river basin. This schedule of expiration dates set out in this section has been designed to provide a constant and even inflow of permit applications into the commission. This regulated schedule will even out the workload for commission staff and thus expedite the processing of applications at the commission. The commission will continue to process all renewal applications previously received except for those permits for which this section establishes expiration dates of January 1, 1993-September 1, 1993. These permit applications will temporarily be set aside and supplemental information will be requested of permittees as necessary to promote a consistent review of these applications with the remaining permits in Basin 10: San Jacinto River. The commission acknowledges that the abbreviated time period within which the first group of permittees has to prepare an application may cause some hardship. This initial group of permittees may not have sufficient funds set aside for the costs associated with preparation of permit applications. Accordingly, those permittees with permit expiration dates between January 1, 1993 and May 31, 1993, may apply for up to a three-month extension for filing their permit applications upon a showing that the limited time period they have to prepare and submit their application will cause an extreme financial hardship. The commission will send renewal applications to permittees in Basin 10: San Jacinto River as soon as possible to allow permittees time to prepare a thorough application. The commission will establish a schedule to send renewal applications to permittees one year prior to the expiration dates set out in this section. Ms. Norma Nance, director of budget, planning and evaluation, has determined that for the first five years this section is in effect, there will be fiscal implications as a result of enforcing or administering the section. There will be no direct costs to state government. There will be no costs to local governments that are not permittees directly affected by this section. Local governments holding wastewater permits under the Texas Water Code, Chapter 26 are affected to the extent all wastewater discharge permit holders are affected by this section. All holders of wastewater discharge permits are potentially affected by this rule. While the actual costs of preparing permit renewal applications may not increase because of this section, the timing and schedule constraints may cause unanticipated financial burdens. As a result of amending permit expiration dates, costs associated with renewal applications may be incurred at a time when funds are not immediately available or have not been budgeted. The costs of preparing a permit renewal application vary significantly, but the average cost is estimated to be $2,000. There are approximately 310 permits primarily regulating agricultural activities which have no expiration date. The cost for these permittees of developing a permit renewal application may be considered an incremental cost of this proposed section. The $2,000 average cost figure would be applicable to these permits. Ms. Nance has determined that for the first five years these sections as proposed are in effect, the public benefit anticipated as a result of enforcement of or compliance with the sections will be improvements in the evaluation of the cumulative effects of permitted discharges on water quality, the regulation of permitted discharges, and the opportunity for public input in the permitting process. Many of the permittees affected are small businesses, however, there are no differential impacts to small businesses anticipated. There are no anticipated economic costs to persons who are required to comply with this section, other than those costs applicable to wastewater permittees. Comments on the proposal may be submitted to Margaret Ligarde, Staff Attorney, Legal Division, P.0. Box 13087, Austin, Texas 78711. The deadline for submission of written comments will be 30 days after the date of publication of this proposal in the Texas Register. To facilitate public comment on the proposed new section in Chapter 305, the commission has scheduled a public comment hearing as follows: Stephen F. Austin Building, Room 118, 1700 North Congress Avenue, on June 5, 1992, at 10 a.m., Austin. The new section is proposed under the Texas Water Code, ssec.5.103, 5.105, and 26.011, which provide the Texas Water Commission with the authority to adopt rules necessary to carry out its powers and duties under the code and all other laws of the State of Texas and to establish and approve all general policies of the commission. sec.305.70. Basin Permitting. (a) Upon receipt of wastewater discharge permit renewal applications, the commission, to the greatest extent practicable, will evaluate all renewal applications within a single river basin within the same year. The expiration dates for all permits issued after the effective date of this section shall be in accordance with the basin schedules in subsection (b) of this section. (b) The expiration dates of existing wastewater discharge permits issued by the commission are amended in accordance with the following schedule: (1) Domestic wastewater permits. [graphic] (2) Industrial wastewater permits. [graphic] (3) Feedlot/concentrated animal feeding operations permits. [graphic] (c) In accordance with sec.305.63 of this title (relating to Renewal), renewal applications for permits expiring on or after June 1, 1993, shall be due six months prior to the designated expiration dates in subsection (b) of this section. Renewal applications for permits expiring on or before May 31, 1993, shall be submitted prior to the expiration dates designated in subsection (b) of this section. If submission of a renewal application before May 31, 1993, would cause extreme hardship, a permittee may request from the executive director an extension of the filing deadline of up to three months. (d) The executive director may require submission of a renewal application sooner than the dates set out in subsections (b) and (c) of this section upon a determination that a particular waste disposal activity necessitates a more frequent evaluation. In such event, the executive director shall notify the permittee by certified mail that an application is required and shall state a specific due date for submission of the application. The permittee shall submit a renewal application on or before nine months following receipt of the notice. (e) Permit renewals generally will be issued to maintain a five-year cycle of the expiration date schedule in subsection (b) of this section. The commission may issue a permit for less than a five-year term if it determines that a shorter term is necessary. 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 May 4, 1992. TRD-9206088 Mary Ruth Holder Director, Legal Division Texas Water Commission Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Part XIV. Texas Board of Irrigators Chapter 421. Introductory Provisions General Provisions 31 TAC sec.421.1 The Texas Board of Irrigators proposes amendments to sec. s421.1, 421.36, and 421.39, concerning general provisions for the board. These amendments are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments are proposed in order to implement certain provisions of Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991 and became Texas Civil Statutes, Article 8751. These amendments are proposed in order to define the duties and responsibilities of officers and employees of the board as well as to provide guidelines for maintaining official open records. Section 421.1 (relating to Definitions) defines terms that are used throughout 31 TAC Chapters 421, 423, 425, 427, 429, and 431. Section 421.36 (relating to Officers and Employees) delineates the duties and responsibilities of board officers and employees. Section 421.39(b) (relating to Official Records) concerns the availability of board records to the public. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 761). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 these sections will be a clarification of Texas Civil Statutes, Article 8751. 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 these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m., 30 days after the date of this publication. For further information please call (512) 463-8069. The amendment is proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.421.1. Definitions. The following words and terms, when used in this part, shall have the following meanings, unless the context clearly indicates otherwise. Backflow prevention -The mechanical prevention of reverse flow, or back siphonage, of nonpotable water from an irrigation system into the potable water source. Hydraulics-The mathematical computation of determining pressure losses and pressure requirements of an irrigation system. Landscape irrigation -The science of applying water to turf or plant material to promote and/or sustain growth. Non-toxic substance -Any substance, solid, liquid, or gaseous, which may make the water aesthetically unacceptable but, if ingested, will not cause illness or death. Precipitation zones - (A) Precipitation Zone Number 1 is defined as the region of Texas requiring the landscape irrigation system to distribute a minimum of .25 inches of water per hour for every hour that the landscape irrigation system is in operation. (B) Precipitation Zone Number 2 is defined as the region of Texas requiring the landscape irrigation system to distribute a minimum of .275 inches of water per hour for every hour that the landscape irrigation system is in operation. (C) Precipitation Zone Number 3 is defined as the region of Texas requiring the landscape irrigation system to distribute a minimum of .30 inches of water per hour for every hour that the landscape irrigation system is in operation. (D) Precipitation Zone Number 4 is defined as the region of Texas requiring the landscape irrigation system to distribute a minimum of .325 inches of water per hour for every hour that the landscape irrigation system is in operation. The precipitation zones defined in subparagraphs (A)-(D) of this definition are represented as Zones Number 1-4 on the following map. [graphic] Toxic substance -Any substance, solid, liquid, or gaseous, which when introduced into the water supply system creates, or may create, a danger to the health and well-being of the consumer. Water conservation -The design and installation of an irrigation system which applies the least amount of water to maintain healthy individual plant material or turf. 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 April 29, 1992. TRD-9205943 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 General Provisions Affecting Board 31 TAC sec.421.36, sec.421.39 The amendments are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.421.36. Officers and Employees. (a) When present, the chairman shall preside at all meetings, sign all certificates of registration issued, and perform all other duties pertaining to the office.
        [The board shall elect a chairman who shall hold office for two years and thereafter until his successor has been elected. The chairman may be removed by the board for cause, but his removal does not disqualify him from continuing as a member of the board. When present, the chairman shall preside at all meetings, sign all certificates of registration issued; and perform all other duties pertaining to the office.] (b) (No change.) (c) Where there is a vacancy in the office of the vice chairman, the board shall elect a member to fill the vacancy for the remainder of the unexpired term.
          [Where there is a vacancy in the office of the chairman or vice chairman, the board shall elect a member to fill the vacancy for the remainder of the unexpired term.] (d) (No change.) (e) The executive secretary is authorized to request necessary services from the executive director. Such services include, but are not limited to: conducting investigations, holding hearings, and performing other duties and functions in accordance with Texas Civil Statutes, Article 8751. sec.421.39. Official Records. (a) (No change.) (b) All records, reports, documents, data, and other information collected by the executive secretary and staff in the performance of enforcement duties are the property of the state. Unless the executive secretary considers information to be confidential and not subject to disclosure in accordance with the Texas Open Records Act, Texas Civil Statutes, Article 6252-17a, or the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a, all such records, reports, documents, data, and other information collected by the executive secretary shall be made available to the public for inspection and copying during regular office hours.
            [Subject to the limitations and exceptions provided under the Open Records Act, Texas Civil Statutes, Article 6252-17a, information collected, assembled, or maintained by the board or its executive secretary is public information open to inspection and copying during regular business hours.] 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 April 29, 1992. TRD-9205942 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Chapter 423. Registration of Irrigators and Installers Application for Registration The Texas Board of Irrigators proposes amendments to sec. s423.1, 423.4, 423.7, 423.10, 423.13, 423.19, 423.22, 423.41, 423.50, and 423.56, concerning application for registration to become a licensed irrigator or installer. These amendments are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments are proposed in order to implement certain provisions of Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991, and became Texas Civil Statutes, Article 8751. These amendments are proposed in order to delineate eligibility requirements and procedures for those applying for certificates of registration. Section 423.1 (relating to Certificate of Registration) delineates the eligibility requirements for obtaining an irrigator's or installer's license. Section 423.4 (relating to Application for Certificates of Registration) dictates who must apply for a certificate of registration and the procedure for obtaining a certificate of registration. Section 423.7 (relating to Application and Examination Fees; Form of Payment) sets out the amount and form of payment to be paid by an irrigator or installer in applying to take the examination. Section 423.10 (relating to Application Processing) describes the process for applying to take the irrigator's or installer's licensing examination. Section 423.13 (relating to Determination of Registration by Endorsement) defines the board's procedure for registering by endorsement certain irrigators and installers that are licensed in other states. Section 423.19 (relating to Rejection of Application) provides the conditions under which the board may reject an application for registration. Section 423.22 (relating to Hearing on Rejected Application) dictates the procedures to be taken if a hearing is requested on a rejected application. Section 423.41 (relating to Eligibility for Written Examinations) discusses who is to administer the examination for irrigators and installers to become licensed, and who is eligible to take the aforementioned examination. Section 423.50 (relating to Appearance for Examination; Failure to Appear) dictates that an applicant must personally appear to take the examination and failure to appear may result in forfeiture of the examination fee. Section 423.56 (relating to Grading; Minimum Passing Score) dictates that to become a licensed irrigator or installer the applicant must correctly answer a minimum of 70% of the questions in each section of the examination. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 763). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the proposed sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 grammatical correction and clarification of existing rules. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m., 30 days after the date of this publication. For further information please call (512) 463-8069. 31 TAC sec.sec.423.1, 423.4, 423.7, 423.10, 423.13, 423.19, 423.22 The amendments are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.423.1. Eligibility for Certificates of Registration. (a) The board shall
              [may] issue certificates of registration only to persons
                [individuals] who are eligible for registration as licensed irrigators or licensed installers under Texas Civil Statutes, Article 8751 and these sections. No certificate of registration may be issued to any firm, partnership, corporation, or other group of persons. (b) No person
                  [individual] is eligible to receive a licensed irrigator's or licensed installer's certificate of registration unless he has applied for it pursuant to these sections and: (1) the board has determined that the
                    [he is a] person [of good moral character who] has passed a uniform, reasonable examination for irrigators or installers, as applicable, administered by the board in accordance with these sections and Texas Civil Statutes, Article 8751. To pass such examination, a person must satisfactorily demonstrate sufficient proficiency in, but not limited to, the principles of cross connections, safety devices to prevent contamination of potable water supplies, efficient irrigation system design and installation, water conservation, hydraulics, and backflow prevention
                      ; or (2) the board has determined that he is a person registered as the equivalent of a licensed irrigator or licensed installer in another state or country that has requirements for registration or licensing
                        that are substantially equivalent to the requirements of Texas. [and that extends the same privilege of reciprocity to licensed irrigators or licensed installers registered in Texas.] sec.423.4. Applications for Certificates of Registration. (a) (No change.) (b) In addition to submitting his completed application form and application fee, a person
                          [an irrigator or installer] holding the equivalent of
                            a valid licensed irrigator or licensed installer
                              certificate of registration in another state [or country] who wishes to be considered for registration by endorsement
                                in Texas [under reciprocity,] shall arrange for a certified copy of his certification record from the state or country in which he is registered to be directly submitted
                                  [submit] to the executive secretary by the foreign registration agency.
                                    [his certification record from the state or country in which he is registered.] Obtaining a passing grade on all or any part of the written examination required for registration may be waived by the board on a case-by-case basis for any person holding the equivalent of a valid irrigator's or installer's license or certificate of registration issued by another state that has substantially equivalent requirements as Texas. (c) (No change.) sec.423.7. Application and Examination Fees; Form of Payment. Persons applying for an irrigator's certificate of registration shall remit an application and examination fee of $75. Persons applying for an installer's certificate of registration shall remit an application and
                                      [or] examination fee of $35. Payments shall be made by personal check, money order, or cashier's check made payable to the Texas Board of Irrigators. These fees shall not be refundable. sec.423.10. Application Processing. (a) (No change.) (b) Applications for registration by examination may be made at any time but must be accompanied by the examination fee and received by the executive secretary at least 30
                                        [45] days prior to the applicant's examination date. Applicants shall be responsible for fulfilling all
                                          application requirements by this [the] deadline. If the application is complete, the executive secretary shall notify the applicant, so stating, within 10 working days after receipt of the complete
                                            application. (c) The executive secretary
                                              [board] shall verify [and evaluate] each submitted application, and if the board or the executive secretary should require additional relevant information, the applicant shall submit such information within the time and in the form requested. The applicant shall be given written notice of any deficiency within 10 working days of receipt of the application. (d) (No change.) sec.423.13. Determination of Application for Registration 23>by Endorsement. [under Reciprocity.] The board's approval of an application for registration by endorsement
                                                [under reciprocity] shall be given by letter, within 120
                                                  [30] days after receipt of said application, which assigns the applicant a registration number. A certificate of registration and identification card shall be issued upon the applicant's compliance with sec.425.41 of this title (relating to Seal Required) and sec.425. 44 of this title (relating to Seal and Rubber Stamp Facsimile Design) as applicable. sec.423.19. Rejection of Application. [(a)] The board, or the executive secretary on behalf of the board, may reject an application if: (1)-(2) (No change.) [(b) The board may reject an application if the board finds that the applicant is not of good moral character.] sec.423.22. Hearing on Rejected Application. (a) (No change.) (b) The applicant must request a hearing in writing within 20
                                                    [10] days after the applicant receives his letter of rejection. (c)-(d) (No change.) (e) The board shall render a final decision on the application in an open meeting.
                                                      [inform the applicant of its final decision on his application by certified mail.] If the final decision is to uphold its rejection of the application, the board shall state in its final order
                                                        [decision] the reasons and relevant facts for rejection. The final decision or order must be rendered within 60 days after the date the hearing is finally closed. 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 April 29, 1992. TRD-9205941 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Examinations 31 TAC sec.sec.423.41, 423.50, 423.56 The amendments are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.423.41. Eligibility for Written Examinations. The board, or any board members, or the executive secretary on behalf of the board shall administer written examinations only to persons [who the board has determined to be of good moral character and] who have completed the required application form and have submitted it and the required examination fee to the executive secretary in accordance with these sections. sec.423.50. Appearance for Examination; Failure to Appear. Applicants shall personally appear for the written examination at the designated date, time, and place and be prepared to present sufficient identification. An applicant who fails to appear for an examination shall forfeit the required examination fee except upon written request showing good cause why the applicant failed to appear, as determined by the board or the executive secretary. sec.423.56. Grading; Minimum Passing Score. A score of 70% or more on each and every section of the applicable examination is required for registration as a licensed irrigator or licensed installer. 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 April 29, 1992. TRD-9205940 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Certificate of Registration 31 TAC sec.sec.425.16, 425.19, 425.22, 425.25 The Texas Board of Irrigators proposes amendments to sec. s425.16, 425.19, 425.22, 425.25, and 425.41, concerning certificates of registration. These amendments are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments are proposed in order to implement certain provisions of Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991, and became Texas Civil Statutes, Article 8751. These amendments are proposed in order to provide guidelines for the expiration of certificates of registration, the renewal of certificates of registration, and the penalty for failure to renew a certificate of registration. Section 425.16 (relating to Notice of Expiration; Change of Address) dictates that the executive secretary is to send written notification of the expiration of a licensed irrigator's or installer's certificate of registration. Section 425.19 (relating to Renewal of Certificate; Same Registration Number) discusses the cost and procedure of renewing an unexpired certificate of registration. Section 425.22 (relating to Failure to Renew Certificate of Registration; Notice; Penalty) discusses the 90-day grace period in which an irrigator or installer may renew an expired certificate of registration, the consequences of failing to renew a certificate of registration within such grace period, and the penalties for purporting to be a licensed irrigator or installer in the absence of a current license. Section 425.25 (relating to Unauthorized Use of Certificate) dictates who is authorized to use a certificate of registration and the consequences for violating this rule. Section 425.41 (relating to Seal Required) requires a licensed irrigator to obtain a seal that is approved by the board, register such seal with the board, and place such seal on all professional documents. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 764). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 grammatical correction and clarification of existing rules. 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 these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m., 30 days after the date of this publication. For further information please call (512) 463-8069. The amendments are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.425.16. Notice of Certificate Expiration; Change of Address. (a) The executive secretary shall notify each licensed irrigator and licensed installer of the date of expiration of his certificate and the amount of the fee that is required for the annual renewal of registration. Such notice shall be sent by first-class mail to the person's last known address according to records of the board at least 30 days before the expiration of a licensed irrigator's or licensed installer's certificate.
                                                          [by June 30 of each year to each licensed irrigator's or licensed installer's last known address.] (b) Licensed irrigators and licensed installers shall immediately notify the executive secretary in writing
                                                            of any change in mailing address. sec.425.19. Renewal of Certificate; Same Registration Number. (a) A licensed irrigator or a licensed installer may renew an unexpired certificate
                                                              [his certificate] of registration [at any time during the months of July and August of each year] by payment of a renewal fee in the amount of $85 for a licensed irrigator or $50 for a licensed installer. Payment shall be made by personal check, money order, or cashier's check made payable to the Texas Board of Irrigators. (b) (No change.) sec.425.22. Failure To Renew Certificate of Registration; Notice; Penalty. (a) If a person's licensed irrigator or licensed installer certificate of registration has been expired for 90 days or less, the certificate of registration is automatically suspended; however, the person may renew the certificate by paying to the board the required renewal fee as stated in sec.425.19(a) of this title (relating to Renewal of Certificate; Same Registration Number), and a late payment fee that is one-half of the examination fee set out in sec.423.7 of this title (relating to Application and Examination Fees; Form of Payment).
                                                                [Failure of a licensed irrigator or a licensed installer to renew his certificate of registration by August 31 of each year does not deprive him of the right to renewal, but his registration shall be automatically suspended and the fee paid for renewal of a certificate of registration after the August 31 deadline shall be increased 10% for each month or part of a month that the renewal payment is delayed.] If [the] a person
                                                                  [licensed irrigator or licensed installer] fails to pay in full
                                                                    his certificate of registration
                                                                      renewal fee and late payment fee
                                                                        within 90 days after expiration of the certificate of registration,
                                                                          [after the August 31 deadline,] the certificate of
                                                                            [his] registration shall not be renewable.
                                                                              [automatically expire,] The person
                                                                                must requalify under Texas Civil Statutes, Article 8751, s8, by submitting to examination,
                                                                                  and otherwise
                                                                                    [he must comply] complying
                                                                                      with Chapter 423 of this title (relating to Registration of Irrigators and Installers) to obtain a new licensed irrigator or licensed installer certificate of registration. (b) The executive secretary shall immediately notify each licensed irrigator and licensed installer who has failed to renew his certificate of registration by its expiration date
                                                                                        [August 31] of such failure by certified mail sent to his last known address. (c) Any failure of the executive secretary to notify a licensed irrigator or installer about renewal of a certificate of registration shall not affect the requirements relating to renewal of certificates of registration upon licensees under this subchapter. (d)
                                                                                          [(c)] Any irrigator or installer who acts as a licensed irrigator or licensed installer when his registration has been automatically suspended or has automatically expired pursuant to these sections is in violation of Texas Civil Statutes, Article 8751 and is subject to the penalties provided in sec.12 thereof. sec.425.25. Unauthorized Use of Certificate. (a) (No change.) (b) Anyone who uses or attempts to use as his own the certificate of registration of someone else who is a licensed irrigator or licensed installer violates Texas Civil Statutes, Article 8751 and this section. (c) (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 April 29, 1992. TRD-9205939 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Seal 31 TAC sec.425.41 The amendment is proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.425.41. Seal Required. (a)-(b) (No change.) (c) Each licensed irrigator who, on August 28, 1979, held a valid license as a landscape irrigator under Texas Laws 1973, Chapter 629, as amended, and therefore is registered pursuant to Texas Civil Statutes, Article 8751, sec.15, shall file with the board before January 1, 1981, in duplicate, a sample impression of his seal or rubber stamp facsimile of the design required by sec.425.44 of this title (relating to Seal and Rubber Stamp Facsimile Design) on letterhead or other business stationery which he uses. 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 April 29, 1992. TRD-9205938 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Chapter 427. Water Supply Connections Standards for Connections to Potable Water Supplies 31 TAC sec.sec.427.2, 427.3, 427.4, 427.6, 427.8 The Texas Board of Irrigators proposes new sec.sec.427.2, 427.3, 427.6, and 427. 8, an amendment to sec.427.4, and the repeal of sec.427.10, concerning standards for connections to potable water supplies. These new sections are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments and new sections are proposed in order to implement certain provisions of Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991, and became Texas Civil Statutes, Article 8751. These amendments and new sections are proposed in order to provide guidelines for: local inspection of irrigation systems; the type of backflow prevention device to install; and minimum industry standards for irrigators and installers. Section 427.4 (Relating to Absence of Local Regulation) defines the type of backflow prevention device to be installed in the absence of local regulation. Section 427.2 (relating to Local Inspection) reiterates a portion of the authority of the local regulations in relation to inspection requirements, ordinances, or regulations designed to protect the public water supply. Such authority is executed by local inspectors. Section 427.3 (relating to Water Conservation) discusses the board's recommendation that irrigation systems are to be designed, installed, maintained, repaired, and serviced in a manner that will promote water conservation. Section 427.6 (relating to Required Backflow Prevention Devices) describes the type of backflow prevention device that shall be installed in irrigation systems. The type of backflow prevention device installed in an irrigation system is contingent upon that systems's potential for contamination of the public water supply. Section 427.8 (relating to Minimum Industry Standards for Irrigators/Installers) describes the minimum industry standards for: spacing, water pressure, derating, precipitation rate, depth coverage, and wiring. Section 427.10 (relating to Connections to Alternative Water Supplies) is being repealed. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 766) except for the correction of a grammatical error in the explanation of minimum industry standards for depth coverage of piping in sec.427.8(e) (relating to Minimum Industry Standards for Irrigators/Installers) and a new sec.427.3 (relating to Water Conservation). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 clarification as to the proper usage and proper types of backflow prevention devices as well as clarification of existing rules relating to the proper standards of irrigation systems. 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 these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m. , 30 days after the date of this publication. For further information please call (512) 463-8069. These sections are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.427.2. Local Inspection.
                                                                                            Any city, town, county, special purpose district, or other political subdivision of the state may be responsible for inspection of connections to its public water supply system up to and including the backflow prevention device. Water on the discharge side of the backflow prevention device is nonpotable and the portion of an irrigation system on the discharge side of the backflow prevention device is not required to be inspected by a city, town, county, special purpose district, or other political subdivision of the state. sec.427.3. Water Conservation.
                                                                                              The board recommends that irrigation systems be designed, installed, maintained, repaired, and serviced in a manner that will promote water conservation as defined in sec.421.1 of this title (relating to Definitions). sec.427.4. Absence of Local Regulation-Backflow Prevention Devices. Where a licensed irrigator's or a licensed installer's connection of an irrigation system [or yard sprinkler system] to a public or a private potable water supply is not subject to any inspection requirement, ordinance, or regulation of any city, town, county, special purpose district, or other political subdivision of the state, the licensed irrigator or licensed installer making such connection shall install one of the following devices. (1) Atmosperic vacuum
                                                                                                [Vacuum] breakers. Atmospheric vacuum
                                                                                                  [Vacuum] breakers are designed to prevent only back-siphonage. Therefore, vacuum breakers shall not be used in any irrigation systems where back-pressure may occur. In this subchapter, back-pressure means any pressure, regardless of its source, against the outlet side of the backflow prevention device, which exceeds the supply pressure against the inlet side of the device. Where vacuum breakers may be used, they shall be installed at least six to 12
                                                                                                    inches above the surrounding ground. [(2) Atmospheric vacuum breakers.] In addition [to the prohibition and installation requirements of subsection (a) of this section], continuous pressure on the supply side of an atmospheric vacuum breaker is prohibited. Therefore, atmospheric vacuum breakers shall be installed in either of the two following ways. (A)-(B) (No change.) (2)
                                                                                                      [(3)] Pressure-type vacuum breakers
                                                                                                        [breaker]. Pressure- type vacuum breakers are designed to prevent back-syphonage and can operate under continuous pressure.
                                                                                                          Subject to the prohibition and installation requirements of paragraph (1)
                                                                                                            [subsection (a)] of this section, a single pressure-type vacuum breaker may be used in systems where the sprinkler main may be pressurized at all times. (3)
                                                                                                              [(4)] Double check assembly backflow preventors
                                                                                                                [preventor]. Double
                                                                                                                  [A double] check assembly (DCA) backflow preventors
                                                                                                                    [preventor] are designed to prevent back pressure and back-syphonage of water not containing any toxic substance. They
                                                                                                                      may be used where water supply pressure and back pressure on the backflow prevention
                                                                                                                        device may continuously exist. (4)
                                                                                                                          [(5)] Reduced pressure principle devices
                                                                                                                            [device]. Reduced
                                                                                                                              [A reduced] pressure principle devices
                                                                                                                                [device] are designed for water containing toxic or non-toxic substances and for back- pressure and back-syphonage. They
                                                                                                                                  shall be installed above ground in a location so as to insure that the device will not be submerged during operation. [In addition, adequate provisions shall be made for any water which may be discharged through the device's release valve. A licensed irrigator may not incorporate this device in an irrigation system design without first obtaining informed approval to do so from the party for whom he is designing the system.] sec.427.6. Required Backflow Prevention Devices. (a) An irrigation system that does not have associated with it any type of injection device and that is connected or capable of being connected only to a single source of water presents a low potential for contamination of the water supply and is, therefore, considered to be a "low hazard" installation. Such an irrigation system shall be connected to the water supply through a double check assembly backflow preventor, an appropriate type of vacuum breaker, or other industry-approved "low hazard" backflow prevention device. (b) An irrigation system with any kind of injection device associated with it has a potential for introducing toxic substances into the water supply and is, therefore, considered to be a "high hazard" installation. Such an irrigation system shall not be connected to any water supply except only through an industry-approved "high hazard" backflow prevention device, such as an appropriate pressure-type backflow preventor or reduced pressure principle backflow prevention device. (c) If an irrigation system has more than one water supply source, with one or more supplies being potable water and the other supply or supplies being nonpotable water, the irrigation system shall be connected to each water supply only through an industry-approved "high hazard" backflow prevention device. sec.427.8. Minimum Industry Standards for Irrigators/Installers. (a) Minimum industry standards for spacing. (1) Irrigation systems using spray or rotary heads shall be designed and installed not to exceed the manufacturer's maximum recommended head spacing for a specific nozzle operating at a specific pressure. (2) Irrigation systems using spray or rotary heads with no recommended spacing provided by the manufacturer shall be designed and installed in conformance with the average spacing specifications provided by a minimum of three other manufacturers of like equipment for the same size nozzle and the same pressure. (3) Irrigation systems not using spray or rotary heads shall be installed according to the manufacturer's recommended installation specifications. (b) Minimum industry standards for water pressure. Irrigation systems using spray or rotary heads shall be designed and installed according to the minimum head pressure required by the manufacturer for the nozzle and head spacing used. (c) Minimum industry standards for wind derating. (1) Irrigation systems using spray or rotary heads shall be designed and installed with the head spacing derated according to the manufacturer's recommendation for the average nighttime wind speed. (2) Irrigation systems using spray or rotary heads with no manufacturer's recommended spacing deration provided shall be designed and installed in conformance with the average spacing wind derating information provided by three other manufacturers of like equipment for that size nozzle and pressure. (d) Minimum industry standards for precipitation rate. (1) Landscape irrigation systems using spray or rotary heads that are installed in Precipitation Zone Number 1, as defined in sec.421.1(A) of this title (relating to Definitions), shall be designed and/or installed to provide a minimum precipitation rate of .25 inches per hour for every hour that the landscape irrigation system is in operation. (2) Landscape irrigation systems using spray or rotary heads that are installed in Precipitation Zone Number 2, as defined in sec.421.1(B), shall be designed and/or installed to provide a minimum precipitation rate of .275 inches per hour for every hour that the landscape irrigation system is in operation. (3) Landscape irrigation systems using spray or rotary heads that are installed in Precipitation Zone Number 3, as defined in sec.421.1(C), shall be designed and/or installed to provide a minimum precipitation rate of .30 inches per hour for every hour that the landscape irrigation system is in operation. (4) Landscape irrigation systems using spray or rotary heads that are installed in Precipitation Zone Number 4, as defined in sec.421.1(D), shall be designed and/or installed to provide a minimum precipitation rate of .325 inches per hour for every hour that the landscape irrigation system is in operation. (e) Minimum industry standards for depth coverage of piping. Irrigation systems using spray or rotary heads shall be designed and/or installed according to the manufacturer's recommended specifications for depth coverage of piping, unless one of the following circumstances is encountered. (1) If the manufacturer has no recommended specifications for depth coverage of piping, the irrigation system shall be designed and/or installed to provide a minimum of six inches of coverage over piping. (2) If utilities, structures, or tree roots are encountered, the irrigation system shall be designed and/or installed to provide a minimum of two inches of coverage over piping. (f) Minimum industry standards for wiring irrigation systems. (1) The wiring used in an irrigation system that connects section valves to controllers shall be Underwriters Laboratories listed for direct underground burial. (2) The wiring used in an irrigation system that connects section valves to controllers shall be sized according to the manufacturer's recommendation. (3) Direct burial wire splices used in an irrigation system shall be waterproof. (4) Direct burial wire splices used in an irrigation system shall consist of a mechanical wire connector inside of an container surrounded by a waterproof sealant. 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 April 29, 1992. TRD-9205935 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Standards for Connections to Potable Water Supplies 31 TAC sec.427.10 (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 Board of Irrigators or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.427.10. Connections to Alternate Water Supplies. 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 April 29, 1992. TRD-9205944 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Chapter 429. Violation of Statute or Board Rule Complaint Process The Texas Board of Irrigators proposes the repeal of sec. s429.1, 429.13, 429. 16, 429.19, and 429.22, new sec.sec.429.1-429.3, 429.5, 429.11, 429.13-429.19, and 429.41, and amendments to ssec.429.4, 429.7, 429.10, 429.44, 429.51, 429.53, and 429.55, concerning the steps taken to file a complaint with the board against an irrigator or installer, setting complaint on board agenda for further investigation, board consideration of and action on complaints, referral of complaints by the board to hearings before the Texas Water Commission, referral of probable violations to the board by board members, and the Texas Water Commission's authority to revoke the registration of a licensed irrigator or installer; concerning the board's issuance of enforcement orders, hearings with respect to alleged violations of the Licensed Irrigators Act or of any order of the board, the steps taken to file a complaint with the board against an irrigator or installer, policies allowing the public to speak on issues under the board's jurisdiction, notice of complaint status, the hearing request and enforcement report, the procedures for notice, hearing, action, and appeal of alleged violations of Texas Civil Statutes, Article 8751, or a rule of the board; and concerning the processing of a complaint filed with the board against an irrigator or installer, the investigation of a complaint, informal resolution of a complaint, revocation of registration by the board, civil penalties to be assessed by a court, and action by the attorney general to recover civil penalties and pursue injunctive relief. These amendments, repeals, and new sections are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments are proposed in order to implement certain provisions of Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991, and became Texas Civil Statutes, Article 8751. These amendments, repeals, and new rules are proposed in order to provide guidelines for making complaints to the Board of Irrigators, investigating complaints, and resolving complaints through either informal resolution or a formal hearing. Section 429.4 (relating to Board's Receipt of Complaint) dictates the duties of the executive secretary upon receipt of a complaint. Section 429.7 (relating to Investigation of Complaint) discusses the duties of the executive secretary, or an investigator designated by the executive secretary, in investigating a complaint and the authority of the executive secretary to refer the complaint to the attorney general if the executive secretary determines that immediate legal action is necessary to enforce applicable statutes or board rules. Section 429. 10 (relating to Informal Resolution of Complaint) provides that the executive secretary determines when a complaint is informally resolved and notifies the complainant, respondent, and the board of such informal resolution. Section 429. 44 (relating to Surrender of Certificate and Identification Card; Seal) discusses that once an irrigator's/installer's license has been revoked by the board, such irrigator/installer shall surrender his certificate of registration and identification card to the board. Section 429.51 (relating to Civil Penalty) sets out the maximum civil penalty a person may be assessed when found in violation of statutes, rules, or board orders by a court of competent jurisdiction. Section 429.53 (relating to Injunctions) dictates that the board may enforce Texas Civil Statutes, Article 8751, board rule, and board order by injunctions or other appropriate remedy. Section 429.55 (relating to Action by Attorney General) provides for the recovery of civil penalties, or for injunctive relief through action by the attorney general. Sections 429.1, 429.13, 429.16, 429.19, 429.22, and 429.41 are being repealed in order to comply with Texas Senate Bill 544, 72nd Legislature (1991), which went into effect on September 1, 1991, and became Texas Civil Statutes, Article 8751, that mandates the establishment of a formal hearing process before the board. Section 429.1 (relating to Enforcement Orders) dictates that the board may issue orders enforcing compliance with Texas Civil Statutes, Article 8751, board rules, and board orders. Section 429.2 (relating to Hearings on Alleged Violations) discusses that the board may order a public hearing with respect to alleged violations, may receive relevant evidence, may compel attendance of a witness, shall make findings of fact and conclusions of law, and is authorized to issue orders. Section 429.3 (relating to Complaint) defines who may file a complaint to the board and what that complaint must include. Section 429.5 (relating to Public Comment) discusses the board's policy that provides the public with an opportunity to appear before the board and speak on any issue that is under the jurisdiction of the board. Section 429.13 (relating to Hearing Request and Enforcement Report) delineates the steps to be taken by the executive secretary in initiating an enforcement action; what matters are to be included in the enforcement report; what the proposed penalty is to be based upon; and the maximum administrative penalty allowed. Section 429.14 (relating to Notice) provides that the executive secretary shall notify an alleged violator of the issuance of a violation report. This section also dictates what information the notice is to include, when the notice shall be sent, and under what circumstances a hearing shall be set. Section 429.15 (relating to Answer) discusses the following: that if the executive secretary recommends that a penalty be assessed, the respondent may answer within a specific time period; the contents of the respondent's answer; the board's action after receiving respondent's answer; circumstances under which supplemental pleadings may be filed; presumptions to be made in the hearing except for good cause shown; amendments to answer consenting to the executive secretary's violation report and recommended penalties; and that if the respondent and the executive secretary reach a settlement, such settlement is subject to board approval. Section 429.16 (relating to Hearing) dictates the following: when the board may remand the matter for an evidentiary hearing before a hearings examiner that has been designated by the board; that the hearings examiner shall make findings of fact and conclusions of law, and issue a proposal for decision; and that the board and the hearings examiner have subpoena power. Section 429.17 (relating to Board Consideration of Complaint; Board Action on Complaint) prescribes the options the board has upon receiving the hearing examiner's recommendations. This section also delineates factors the board is to consider in determining the penalty amount. Section 429.18 (relating to Notice of Board Order) dictates that the executive secretary shall send notice to the respondent of the board's order. Such notice shall contain elements specified in this section. Section 429.19 (relating to Appeals of Administrative Penalties) sets out the procedures for a respondent's appeal of an administrative penalty. Specifically, this section: requires that the respondent pay the penalty in full within 30 days of the final board order; defines how a respondent who is assessed a penalty may suspend enforcement of such penalty while seeking judicial review; provides the options of a respondent who is financially unable to pay the assessed penalty; delineates the consequences for failing to act on a penalty within 30 days of the board's final order; dictates the procedure for collecting or returning appropriate penalty amounts after final appellate determination; provides that supersedeas bonds or escrow accounts must be drawn according to a form on file in the executive secretary's office; and defines the standard of review of the board's order or decision. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 768) except for the correction of grammatical errors in sec.429.11 (relating to Notice of Complaint Status), sec.429.13(b)(2) (relating to Hearing Request and Enforcement Report), sec.429.17(b) (relating to Board Consideration of Complaint; Board Action on Complaint), sec.429.51(a) (relating to Civil Penalty); and the addition of s429.5 (relating to Public Comment). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the proposed sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 hearings before the board as well as enforcement of Texas Civil Statutes, Article 8751. 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 these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m., 30 days after the date of this publication. For further information please call (512) 463-8069. 31 TAC sec.sec.429.1, 429.13, 429.16, 429.19, 429.22

                                                                                                                                  The board, upon a recommendation of the executive secretary, or upon its own motion, may issue appropriate orders enforcing and directing compliance with the provisions of Texas Civil Statutes, Article 8751, the rules of the board, and other orders of the board. A copy of every such order shall be sent by certified mail to the person to whom it is directed. However, when the board determines that time is of the essence in achieving compliance, the order may be transmitted in person, by telephone, telegraph, telecopier (telefax), or other satisfactory means, but it shall be promptly followed by the written order sent by certified mail as aforesaid. When the person to whom the order is directed receives it, regardless of how that person initially receives the order, the person shall immediately comply with the order according to its terms. sec.429.2. Hearings on Alleged Violations. The board may, upon the request of the executive secretary, order a public hearing with respect to alleged violations of the provisions of the Licensed Irrigators Act or of any order of the board. The board may receive relevant and competent evidence from any party who appears at the hearing, may compel the attendance of witnesses, shall make findings of fact and conclusions of law, and is authorized to issue orders and make determinations necessary to effectuate the purposes of the Licensed Irrigators Act. sec.429.3. Complaint. (a) Any person with personal knowledge of any probable violation of Texas Civil Statutes, Article 8751 or of these sections may file a written complaint with the board. (b) Any person with personal knowledge of any probable act of a licensed irrigator or licensed installer which may constitute gross negligence, incompetency, or misconduct while he is acting as a licensed irrigator or licensed installer may file a written complaint with the board. (c) A written complaint must include the name and address of the person against whom the complaint is filed and the alleged facts and must be notarized. sec.429.4. Board's Receipt of Complaint. (a) Upon the board's receipt of a complaint, the executive secretary must

                                                                                                                                    [shall:] [(1) send three copies of the complaint to the executive director;] [(2)] send one copy of the complaint by certified mail to the respondent.
                                                                                                                                      [; and] [(3) send a copy of the complaint to the chairman of the board.] (b) If a complaint filed with the board is not notarized or does not allege sufficient facts upon which the executive secretary can determine the basis for enforcement of Texas Civil Statutes, Article 8751 or the rules of the board the executive secretary shall immediately notify the complainant. sec.429.5. Public Comment.
                                                                                                                                        Persons may appear before the board and comment on any issue that is under the jurisdiction of the board. sec.429.7. Investigation of Complaint. (a) The executive secretary or an investigator designated by the executive secretary shall investigate each notarized complaint that alleges sufficient facts to establish a prima facia basis for enforcement of Texas Civil Statutes, Article 8751, or the rules of the board.
                                                                                                                                          [The chairman of the board may appoint not more than three members of the board to investigate a complaint. The executive secretary shall furnish each board member appointed to investigate a complaint with a copy of the complaint file.] (b) The executive secretary or an investigator designated by the executive secretary
                                                                                                                                            [Appointed members] shall investigate the matters complained of and may take steps to secure the respondent's voluntary compliance with Texas Civil Statutes, Article 8751, and these sections, or otherwise informally resolve the matter. (c) Upon completion of the investigation, the investigator shall file a written report with the executive secretary,
                                                                                                                                              [the investigating board members shall file with the executive secretary a written report,] including a detailed description of the investigation and any informal resolution.
                                                                                                                                                [, and any recommendations to the board.] (d) During investigation of a complaint, if the executive secretary determines
                                                                                                                                                  [chairman and board members appointed to investigate the complaint determine] that immediate legal action is necessary to enforce Texas Civil Statutes, Article 8751, or the rules of the board, the executive secretary immediately shall refer the complaint to the attorney general with a request that suit be initiated to obtain injunctive and other appropriate relief. Copies of the request shall be sent to the complainant, respondent, and all board members. At a subsequent meeting of the board, the investigator
                                                                                                                                                    [a board member appointed to investigate the complaint] shall report on the investigation and actions taken to enforce Texas Civil Statutes, Article 8751, and the rules of the board. sec.429.10. Informal Resolution of Complaint. Where the executive secretary
                                                                                                                                                      [chairman of the board] determines that a complaint is informally resolved: (1) the executive secretary shall so inform the complainant and respondent in writing, notifying them that the executive secretary will report the resolution to the board with a recommendation that
                                                                                                                                                        the board [will] take no further action on the complaint unless requested to do so by the complainant; [and] (2) the investigator or the executive secretary
                                                                                                                                                          [board members investigating the complaint] shall brief the board, at its next meeting, on the complaint, investigation, and resolution; and
                                                                                                                                                            [.] (3) the board will make a final decision on the complaint that it determines to be consistent with the informal resolution between the parties, the Licensed Irrigators Act, and the rules of the board. sec.429.11. Notice of Complaint Status. For each written complaint filed with the board in accordance with sec.429.3 of this title (relating to Complaint) that is within the authority of the board to resolve, the executive secretary on behalf of the board, at least quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an undercover investigation. sec.429.13. Hearing Request and Enforcement Report. (a) If the executive secretary determines through investigation of a complaint that evidence exists of a violation of Texas Civil Statutes, Article 8751, or the rules of the board, the executive secretary may refer such evidence to the board and may initiate an enforcement action by issuing a petition to the board that alleges the facts upon which the action is based, incorporating the complaint upon which the petition is based, and requesting a hearing and appropriate relief. The executive secretary shall set the petition for consideration by the board as soon as practicable. (b) If the enforcement action seeks or recommends an administrative penalty to be assessed by the board and is brought pursuant to Texas Civil Statutes, Article 8751, or any other statute authorizing the board to assess an administrative penalty, an enforcement report shall accompany the petition of the executive secretary. The enforcement report shall include: (1) a brief statement of the nature of each alleged violation; (2) the statute and rules of the board allegedly violated; (3) the facts relied upon by the executive secretary in concluding that a violation has occurred; (4) a recommendation that an administrative penalty be assessed; (5) the amount of the recommended penalty; and (6) an analysis of the following factors upon which the proposed penalty shall be based: (A) the seriousness of each alleged violation, including, but not limited to, the nature, circumstances, extent, duration, and gravity of the prohibited acts; the hazard or potential hazard created to the health, safety, and general welfare of the consuming public and the public at large; (B) with respect to the alleged violator: (i) the history and extent of previous violations; (ii) the degree of culpability; (iii) the demonstrated good faith, including actions taken by the alleged violator to rectify the cause of the violation and actions taken to mitigate any damage or harm caused by the violation; (iv) any economic benefit gained through the violations; and (v) the amount necessary to deter future violations; and (C) any other matters that justice may require. (c) The recommended penalty for each violation shall be specified in the enforcement report in an amount not to exceed $1,000. sec.429.14. Notice. (a) The executive secretary shall notify the alleged violator by certified mail, return receipt requested, of the issuance of the executive secretary's petition concerning a violation or noncompliance and the recommendation, if any, that a license be suspended or revoked and/or that an administrative penalty be assessed. The notice shall include a brief summary of the charges, a statement of whether the revocation or suspension of the alleged violator's license will be recommended, and a statement of the amount of the penalty recommended. The notice shall also include a statement of the right of the person charged to an evidentiary hearing on any or all of the following: the occurrence of the violation or the suspension or revocation of the license and/or the amount of the penalty. The notice shall be sent not later than the 14th day after the date on which the enforcement report is issued, or if an enforcement report is not issued, then at least 20 days prior to the hearing before the board or a hearings officer appointed by the board. (b) If the person charged requests an evidentiary hearing or fails to timely respond to the notice as required by sec.429.15(a) of this title (relating to Answer), the executive secretary shall set an evidentiary hearing and shall send notice of the time and place of the hearing to the person charged not less than 10 days prior to the evidentiary hearing by certified mail, return receipt requested. (c) In all cases where the executive secretary proposes that the board suspend or revoke a person's certificate of registration, the board will make the final decision upon such proposal. No decision by the board may be made upon a proposal to revoke or suspend a person's certificate of registration except after notice and a hearing before the board or a hearings officer appointed by the board. sec.429.15. Answer. (a) If the executive secretary recommended in the enforcement report that a penalty be assessed, the person charged may submit to the board a sworn answer, not later than 20 days after the date on which notice of the initial hearing before the board is received, containing either written consent to the executive secretary's petition and enforcement report, including the recommended penalty, or a written request for an evidentiary hearing. (b) If the person charged consents to the petition and enforcement report, including the recommended penalty, the answer shall affirmatively so state. After the answer is received, the board shall issue an order approving the enforcement report and the recommended penalty, granting the petition, and ordering payment of the recommended penalty. (c) If the person charged requests an evidentiary hearing to contest either the occurrence of the violation, the recommended penalty, or both, the answer shall: (1) admit or deny all factual matters; and (2) affirmatively allege any and all claims, defenses, or mitigating factors the person charged may have and the reasoning in support thereof. (d) Supplemental pleadings may be filed by the person charged, but only in the event good cause can be shown as to why claims, defenses, or mitigating factors were not affirmatively alleged or factual matters not controverted in the original answer. (e) Except for good cause shown: (1) factual matters not controverted shall be presumed admitted; (2) failure to raise a claim, defense, or mitigating factor shall be presumed to be a waiver of such claim, defense, or mitigating factor; and (3) new matters alleged in the answer shall be presumed to be denied by the executive secretary unless admitted in subsequent pleading or stipulation by the executive secretary. (f) Nothing shall preclude the person charged from amending the answer at any time so as to consent to the executive secretarys violation report and recommended penalty. Further, the executive secretary and person charged may reach an agreement such that an agreed order is entered wherein the person charged admits to any or all of the violations alleged in the executive secretary's violation report and consents to the assessment of a specific administrative penalty. Such settlement of the matters raised by the executive secretarys violation report is subject to the approval of the board. sec.429.16. Hearing. (a) Whenever the executive secretary sets a matter for hearing in accordance with sec.429.14(b) of this title (relating to Notice), the board may remand such matter for hearing to be held by a hearings examiner for the purpose of developing an evidentiary record and recommendations as stated in subsection (c) of this section, prior to proceedings before the board. (b) The board shall designate a hearings examiner when a hearing is either requested by the respondent or is automatically set due to respondent's failure to timely answer. The chairman of the board is authorized to effectuate a remand to a hearings examiner and to designate a hearings examiner on behalf of the board in accordance with these rules. (c) The hearings examiner shall make findings of fact and conclusions of law and promptly issue to the board a proposal for decision as to the occurrence of the violation, including a recommendation as to the amount of the proposed penalty if a penalty is warranted. These hearings shall be held in accordance with the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a. (d) The board and a hearings examiner designated by the board may compel the attendance of a witness before the board or hearings examiner as in civil cases in district court by issuance of a subpoena. sec.429.17. Board Consideration of Complaint; Board Action on Complaint. (a) Based upon the evidentiary record and recommendations of the hearings examiner, the board by order may find a violation has occurred and may assess a penalty or may find that no violation has occurred. (b) When assessing an administrative penalty, the board shall consider each factor listed in sec.429.12(b)(6) of this title (relating to Hearing Request and Enforcement Report) in determining the amount of the penalty. (c) As provided by law, the board may suspend or revoke the registration of, or place on probation a person whose certificate has been suspended, and reprimand any licensed irrigator or licensed installer after giving due notice and an opportunity for hearing as required by law, if it finds that he is guilty of: (1) a violation of Texas Civil Statutes, Article 8751, or a rule of the board; (2) fraud or deceit in obtaining a certificate of registration; or (3) gross negligence, incompetency, or misconduct while acting as a licensed irrigator or licensed installer. (d) If the board chooses to probate the suspension, the board may require the violator to: (1) report regularly to the board on matters that are the basis of the probation; (2) limit activities to the areas prescribed by the board; or (3) continue or renew professional education until the registrant attains a degree of skill satisfactory to the board in those areas that are the basis of the probation. sec.429.18. Notice of Board Order. The executive secretary shall give notice of the boards order to the person charged. Such notice shall be sent by first-class mail to the person's last known address according to board records. The notice shall include: (1) the findings of fact and conclusions of law separately stated; (2) the amount of the penalty ordered, if any; (3) a statement of the right of the person charged to judicial review of the board's order, if any; and (4) other information required by law. sec.429.19. Appeals of Administrative Penalties. (a) Within the 30-day period immediately following the day on which the board's order is final, as provided by Texas Civil Statutes, Article 6252-13a, sec.16(c), the person charged with the penalty shall pay the penalty in full. (b) The person assessed a penalty by the board may suspend enforcement of the penalty while seeking judicial review, by contesting either the occurrence of the violation, the recommended penalty, or both. Enforcement of the penalty may be suspended by forwarding the amount of the penalty to the executive secretary for placement in an escrow account or posting with the executive secretary a supersedeas bond in a form approved by the executive secretary for the amount of the penalty, within the 30 day period immediately following the day on which the board's order is final. (c) In the event the person assessed a penalty by the board is financially unable to satisfy the requirements set out in subsections (a) or (b) of this section, that person may satisfy the requirements of subsection (b) of this section by filing with the executive secretary an affidavit sworn- by the person assessed a penalty. Such affidavit shall state that person is financially unable either to forward the amount of the penalty or to post bond. The affidavit shall be filed within the 30-day period immediately following the day on which the board's order is final. (d) Failure to pay the penalty in full, or failure to forward the amount of the penalty for placement in an escrow account, or post a supersedeas bond, or failure to file the affidavit with the executive secretary within the 30-day period immediately following the day on which the board's order is final, shall result in a waiver of all legal rights to judicial review. In the event the person assessed fails to take any of the actions in subsections (a)-(c) of this section, the executive secretary may forward the matter to the attorney general for enforcement. (e) In the event that the final appellate determination is against the person assessed a penalty, he or she shall pay the board the full amount of the penalty, and the board shall deposit the amount of the penalty in the state treasury to the credit of the general revenue fund. (f) In the event that the final appellate determination reduces the amount of the penalty or is in favor of the person assessed, the executive secretary shall return the appropriate amount of the penalty assessed plus accrued interest on the amount returned with a certificate of its return. Interest on the amount returned shall be paid at the rate described in Texas Civil Statutes, Article 8751, sec.11A(n). (g) Any supersedeas bond or escrow account filed with the executive secretary for the purpose of appeal of the final decision of the board shall be drawn according to a form on file in the office of the executive secretary. Upon request, the executive secretary shall certify the receipt of the amount of any penalty received for the purpose of appeal. (h) Judicial review of the order or decision of the board assessing the penalty shall be in accordance with the substantial evidence rule and shall be instituted by filing a petition with a district court in Travis County as provided by Texas Civil Statutes, Article 6252-13a. 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 April 29, 1992. TRD-9205933 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Revocation of Registration 31 TAC sec.429.41 (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 Board of Irrigators or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. 31 TAC sec.429.44 The amendment is proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.429.44. Surrender of Certificate and Identification Card; Seal. Upon the revocation of a licensed irrigator's or licensed installer's registration by the board
                                                                                                                                                              [commission], the affected irrigator or installer shall immediately surrender his certificate of registration and identification card to the board and shall cease using his official seal and any rubber stamp facsimile of the seal in the irrigator's possession. 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 April 29, 1992. TRD-9205934 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Penalty sec.sec.429.51, 429.53, 429.55 The amendments are proposed under Texas Civil Statutes, Article 8751, sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.429.51. Civil Penalty. (a) A person who violates Texas Civil Statutes, Article 8751; a rule adopted by the board pursuant to Texas Civil Statutes,
                                                                                                                                                                Article 8751; or an order of the board
                                                                                                                                                                  [commission] issued after a hearing, pursuant to Texas Civil Statutes, Article 8751, s5(c); and/or an order suspending or
                                                                                                                                                                    revoking a certificate of registration under Texas Civil Statutes, Article 8751, sec.11, is subject to a civil penalty not to exceed $3,000
                                                                                                                                                                      [$1,000] for each offense. Each day a violation is committed is a separate offense. (b) (No change.) sec.429.53. Injunctions. The board may enforce Texas Civil Statutes, Article 8751, a board rule, or board
                                                                                                                                                                        [commission] order by injunctions or other appropriate remedy. The action may be brought by the board in a court of competent jurisdiction in the county in which the offending activity occurred, in which the defendant resides, or in Travis County. sec.429.55. Action By Attorney General. At the request of the executive secretary
                                                                                                                                                                          [board], the attorney general shall institute and conduct a suit in the name of the state to recover the civil penalty as provided under sec.429.51 of this title (relating to Civil Penalty) or for injunctive relief or other appropriate remedy or for both. 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 April 29, 1992. TRD-9205937 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 Chapter 431. Standards Of Conduct Subchapter A. Licensed Irrigator And Installer Standards 31 TAC sec.sec.431.1-431.6 The Texas Board of Irrigators proposes amendments to sec. s431.1-431.6, concerning the standards of conduct for licensed irrigators or installers. These amendments are proposed under Texas Civil Statutes, Article 8751, sec.7. These amendments are proposed in order to: add installers as a group that is governed by 31 TAC Chapters 421, 423, 425, 427, 429, and 431; provide guidelines for advertising by irrigators and installers; and provide consumers with information regarding regulation of irrigation in Texas. Section 431.1(b) (relating to Purpose of Standards) requires that applicants are to become informed of the standards of conduct provided in this chapter, while licensed irrigators or installers are deemed to have notice of such standards of conduct. Section 431.2 (relating to Intent) prescribes the purpose of establishing standards of conduct and the consequences for failing to comply with such standards. Section 431.3 (relating to Proficiency in Field of Irrigation; Representation of Qualifications) defines competence in the performance of irrigation or installation, and requires truthful disclosure by a licensed irrigator or installer of his qualifications. Section 431.4 (relating to Advertisement) dictates where a licensed irrigator or installer must display his registration number; prohibits false, misleading, or deceptive practices relating to the bidding or advertising of services; and requires the display of the board's name, address, and telephone number at a licensed irrigator's or installer's place of business. Section 431.5 (relating to Contracts) states what a written agreement to install an irrigation system shall contain, and if there is no written agreement the licensed irrigator/installer is to provide written information as to how the consumer may contact the board. Section 431.6 (relating to Design) dictates what shall be included in a design, written agreement, bill for service, or document. These proposed rules are identical to the emergency rules that were published in the January 31, 1992, issue of the Texas Register (17 TexReg 772). Bettye Jean Urban, chief fiscal officer, has determined that for the first five- year period the sections are in effect there will be negligible fiscal implications for state government as a result of enforcing or administering the sections. There will be no effect on local government. Ms. Urban 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 clarification of the existing rules as they relate to the standards of conduct for licensees. 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 these proposals may be submitted to Kathy Keils, Staff Attorney, P.O. Box 13087, Austin, Texas 78711-3087. Comments will be accepted until 5 p.m., 30 days after the date of this publication. For further information please call (512) 463-8069. The amendments are proposed under Texas Civil Statutes, Article 8751,sec.7, which provide the Texas Board of Irrigators with the authority to adopt rules necessary to carry out its powers and duties under Texas Civil Statutes, Article 8751. sec.431.1. Purpose of Standards. (a) (No change.) (b) Every applicant for registration as a licensed irrigator or installer
                                                                                                                                                                            shall become fully informed of the obligations and responsibilities inherent in the practice of irrigation as outlined by these standards of conduct. Each licensed irrigator or installer
                                                                                                                                                                              shall be deemed to have notice of these standards of conduct, and shall be required to abide by the standards. sec.431.2. Intent. (a) These standards of conduct are established to prescribe responsibility and knowledge on the part of the irrigator and installer
                                                                                                                                                                                and to aid in governing the irrigation industry. (b) The board shall determine what actions constitute violations of the standards and institute appropriate disciplinary action which may lead to monetary penalties and/or
                                                                                                                                                                                  the suspension or revocation of a license in accordance with the applicable state statutes. sec.431.3. Proficiency in Field of Irrigation; Representation of Qualifications. (a) Competence in the performance of services of a licensed irrigator or installer
                                                                                                                                                                                    requires that the licensee's knowledge and skill encompass the currently accepted practice and knowledge of selling, designing, consulting, installing, maintaining, altering, repairing, or servicing an irrigation system including the connection of such system in and to a private or public, raw or potable water supply system or any water supply. Licensed irrigators must therefore maintain proficiency in the field of irrigation. (b) A licensed irrigator or installer
                                                                                                                                                                                      shall accurately and truthfully represent to a prospective client his qualifications and capabilities of resources to perform the services requested and shall not perform services for which he is not qualified by experience or knowledge in the technical field involved. sec.431.4. Advertisement. (a) A licensed irrigator or installer
                                                                                                                                                                                        shall display his registration number in the form of "LI_________" in block letters at least two inches high, on both sides of all vehicles used by him or by his employees for installation, service, or repair of irrigation
                                                                                                                                                                                          [irrigations] systems. (b) All advertisements, including business cards, of a licensed irrigator shall display his registration number in the form of "LI_______________." (c) False, misleading, or deceptive practices relating to the bidding or advertising of services and fees by a licensed irrigator or a licensed installer is prohibited. (d) The name, mailing address, and telephone number of the board shall be prominently displayed on any sign in plain view at the place of business of a licensed irrigator or licensed installer. sec.431.5. Contracts. (a) A licensed irrigator's agreement to install an irrigation system, if in writing, shall specify his name, business address and telephone number, date that the agreement was signed by each party thereto, total agreed price, and the design number or a copy of the design. If there is no written design, the agreement shall contain a brief description of the major components of the system to be installed. Such agreement shall also provide the name, mailing address, and telephone number of the board for the purpose of directing complaints to the board. (b) All written contracts and bills for service
                                                                                                                                                                                            to install irrigation systems shall include the statement: "Irrigation in Texas is regulated by the Texas Board of Irrigators, P. O. Box 12337, Austin, Texas 78711 [78701], (512) 463-7990 [475-8161]." (c) If there is no written agreement or bill for service, the irrigator or installer shall provide a written document that includes the statement: "Irrigation in Texas is regulated by the Texas Board of Irrigators, P.O. Box 12337, Austin, Texas 78711, (512) 463-7990." sec.431.6. Design. (a) No licensed irrigator may design an irrigation system, or a portion thereof, so as to require the use of any component part in a way which exceeds the manufacturer's performance limitations for the part, unless the use is necessary to accommodate special site conditions. Special site conditions shall be noted on the design,
                                                                                                                                                                                              [or in] the written agreement, the bill for service, or the document described in 431. 5(c) (relating to Contracts).
                                                                                                                                                                                                [if there is no written design.] (b) Adequate design and specifications of an irrigation system to be installed are the responsibility of the licensed irrigator who designs or supervises the designing of the system regardless of whether a fee is collected for the design work. (c) The design [work] shall include a statement of area coverage of the irrigation system, and any system which does not provide 100% coverage shall be so noted on the design ,
                                                                                                                                                                                                  [or in] the written
                                                                                                                                                                                                    agreement, the bill for service, or the document described in 431.5(c) (relating to Contracts).
                                                                                                                                                                                                      [if there is no written design.] 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 April 29, 1992. TRD-9205936 Joyce Watson Executive Secretary Texas Board of Irrigators Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-8069 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part IX. Texas Commission on Jail Standards Chapter 259. New Construction Rules New Low-Risk and Medium-Risk Design, Construction and Furnishing Requirements 37 TAC sec.sec.259.201-259.205, 259.207, 259.212-259.216, 259.233, 259.235, 259.256 The Texas Commission on Jail Standards proposes amendments to sec.sec.259. 201- 259.205, 259.207, 259.212-259.216, 259.233, 259.235, and 259.256, concerning the addition of design and construction requirements and guidelines for medium-risk jail facilities. Jack E. Crump, executive director, 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. Crump 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 optimum utilization of existing jail space and efficient and economical means of new jail construction while still providing appropriate protection for the community, corrections staff, and inmates. 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 Jack E. Crump, Executive Director, Texas Commission on Jail Standards, 611 South Congress, Suite 200, Austin, Texas 78704, (512) 463-5505. The amendments are proposed under the Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails. sec.259.201. [Low-Risk] Facility Site. The site should be of sufficient size to provide for the immediate facility and a reasonable projected expansion. A buffer zone around the building is desirable. sec.259.202. [Low-Risk] Facility Operation Concept. Inmates housed in medium-risk and low-risk facilities shall be assessed according to the provisions of Chapter 271 of this title (relating to Classification and Separation of Inmates) in order to provide for adequate protection of the inmates, staff, and community. Unlike jails and lock-ups for high-risk and pre- classified inmates, these facilities do not require stringent security measures
                                                                                                                                                                                                        . Inmates housed in the low-risk facility shall be male or female inmates sentenced to work release, school release, or weekend detention programs or inmates who require minimal supervision. Medium-risk inmates require closer supervision and more restricted movement
                                                                                                                                                                                                          . [Unlike a jail or lock-up, a low- risk facility does not require a security perimeter. It does, however, require segregation of male and female inmates.] sec.259.203. Low-Risk Facility Security Requirements. Low-risk facility security should be planned to protect inmates from one another, protect custodial personnel from inmates and deter or prevent escapes.
                                                                                                                                                                                                            [; however, the stringent security measures of jails and lock-ups are not required.] A low- risk facility need not be designed and maintained as a special security unit. It does not require a security perimeter. When built in conjunction with other jail or lock-up functions, the integrity of the security perimeter of the higher security facility shall not be compromised. sec.259.204. Medium-Risk Facility Security Requirements. A security perimeter to restrict the movement of inmates and unauthorized persons and to prevent the introduction of contraband into the facility shall be maintained. Safety vestibules shall be provided for each inmate living area and day room used for confinement of three or more inmates within the security perimeter
                                                                                                                                                                                                              . [Special Security. A low-risk facility need not be designed and maintained as a special security unit. When built in conjunction with other jail or lock-up functions, the integrity of the security perimeter of the higher security facility shall not be compromised.] sec.259.205. Life Safety.
                                                                                                                                                                                                                Facilities shall comply with the provisions of Chapter 263 of this title (relating to Life Safety).
                                                                                                                                                                                                                  [Public Building. A low-risk facility may be located under, in, or on top of another building which has not been designed for security purposes.] sec.259.207. Segregation. (a) (No change.) (b) Medium-risk facilities shall have cells and day rooms of capacities which provide adequate separation of different classifications of male and female inmates as required by the facility classification plan and Chapter 271 of this title (relating to Classification and Separation of Inmates). (c)
                                                                                                                                                                                                                    [(b)] Low-risk and medium-risk
                                                                                                                                                                                                                      facilities shall provide adequate single cells, separation cells, or holding cells for the holding of inmates for medical segregation or awaiting transfer to administrative or disciplinary segregation housing or shall provide written procedures for expeditious transfer of inmates to appropriate facilities. Cells used for this purpose shall be provided with a security perimeter. (Applicable to facilities initiated after May 1, 1991.) sec.259.212. Construction Materials. (a) Low-risk facilities
                                                                                                                                                                                                                        . Inmate living areas and day rooms may be constructed of conventional construction materials. Consideration should be given to the use of quality durable materials.
                                                                                                                                                                                                                          [Single story facilities may be of wooden frame construction if they meet the provisions of sec.263.12(1) of this title (relating to Separation); sec.263.22 of this title (relating to Hazardous Area Protection); sec.263.24 of this title (relating to Construction Materials and Furnishings); and sec.263.53 of this title (relating to Smoke and Fume Removal), as determined by the local fire marshal.] (b) Medium-risk facilities. Inmate living areas and day rooms shall be constructed of metal, masonry, concrete, or other comparable materials. The purpose of a particular wall or partition and the type of security sought to be achieved should determine the selection of appropriate materials. sec.259.213. Functions . [Low-Risk Facilities.] (a) Space shall be allocated for, but not limited to, the following functions
                                                                                                                                                                                                                            : [A low-risk facility shall consist of single cells (rooms) or multiple-occupancy cells (rooms) or dormitories for the custody of inmates who are considered to be not dangerous or likely to escape and who may be involved in some type of "release" program. It shall be of sufficient size to accommodate the needs of its daily operation. Minimum dimensions and areas for housing and activity space shall be allocated for, but not limited to, the following functions:] (1)-(16) (No change.) (b) Space should be allocated for a kitchen, inmate commissary, and library, if conditions warrant. It is permissible to use the same rooms or space allocation for more than one of the listed functions where such use will not deny any constitutional right of inmates, custodial personnel, or general public and where such use will not impair the safety, security, segregation
                                                                                                                                                                                                                              , or sanitation of the facility. sec.259.214. Inmate Entrance.
                                                                                                                                                                                                                                The inmate entrance may be through a conventional vestibule into the receiving area. This entrance shall allow for passage of patient evacuation equipment
                                                                                                                                                                                                                                  [a loaded ambulance cot]. The vestibule shall be designed and constructed to allow observation and identification of a person approaching the inmate entrance and shall maintain the security level appropriate to the facility. The security perimeter of a medium-risk facility shall not be compromised
                                                                                                                                                                                                                                    . Electronic surveillance equipment may be used. sec.259.215. Inmate Reception.
                                                                                                                                                                                                                                      Facilities [Low-risk facilities] shall have a receiving area. The receiving area shall be designed to readily permit the administrative processing of inmates. Receiving areas should be provided with drinking fountains and water closets. Panels or partitions may be erected at the booking desk, counter, or area to insure privacy and increase separation of males, females, juveniles, and adults during a multiple booking operation. sec.259.216. Kitchen. If food is to be prepared in the [low-risk] facility, a kitchen shall be provided. The kitchen shall be planned for efficient food preparation and receipt of supplies and storage. sec.259.233. Infirmary. (a) An infirmary is desirable and the construction of an infirmary should be considered for a [low-risk] facility having a capacity of 50 or more whenever it is anticipated that: (1)-(3) (No change.) (b) (No change.) sec.259.235. Multi-purpose Rooms.
                                                                                                                                                                                                                                        A [low-risk] facility shall have, in addition to any activity or day room area, one or more multi-purpose rooms for group assembly of inmates. The multi-purpose room may be used for conferences, interrogations, contact visits, religious services, education, group counseling, or other special uses. sec.259.256. Windows and Screens. Operable windows shall be equipped with insect screens. Windows and/or skylights should be provided. The security level of windows in inmate occupied areas shall be equal to or greater than the perimeter wall of the inmate occupied area to which windows might provide inqress or eqress
                                                                                                                                                                                                                                          . [Window area shall be commensurate with the architectural expression of the facility, its location and other related factors. ] 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 April 27, 1992. TRD-9205974 Jack E. Crump Executive Director Texas Commission on Jail Standards Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5505 Chapter 271. Classification and Separation of Inmates 37 TAC sec.271.1 The Texas Commission on Jail Standards proposes an amendment to sec.271.1, concerning instructions for assessing and classifying jail inmates according to low risk, medium risk, and high risk custody levels. Jack E. Crump, executive director, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Crump, 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 efficient and economical utilization of existing and future jail space while still providing appropriate protection for the community, corrections staff, and inmates. 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 Jack E. Crump, Executive Director, Texas Commission on Jail Standards, 611 South Congress Avenue, Suite 200, Austin, Texas 78704, (512) 463-5505. The amendment is proposed under the Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails. sec.271.1. Inmate Safety.
                                                                                                                                                                                                                                            A person arrested shall be confined or separated in a facility in the following manner: (1)-(3) (No change.) (4) A custody level shall be assessed each individual consistent with public safety and available information when other than high-risk housing is utilized. (A)-(B) (No change.) (C) This assessment shall determine low-risk, medium-risk
                                                                                                                                                                                                                                              , or high-risk custody status. Inmates with a custody assessment of 42
                                                                                                                                                                                                                                                [24] -60 shall be considered high-risk inmates. Inmates with a custody assessment of 24-41 may be considered medium-risk inmates.
                                                                                                                                                                                                                                                  Inmates with a custody assessment of 0-23 may be considered low-risk inmates. A similar assessment system may be used; however, scoring guidelines shall be comparable with this subparagraph. (D) After custody level assessment has been resolved, medium-risk and
                                                                                                                                                                                                                                                    high-risk inmates shall be classified according to sec.271.2 of this title (relating to Classification Plan). Low-risk inmates do not require further classification except the separation of male and female inmates. Inmates transferred directly to a low-risk or medium-risk
                                                                                                                                                                                                                                                      facility shall be assessed by the sheriff or his designee upon arrival. Those inmates whose risk assessment is not compatible with the risk level of the facility shall be immediately transferred to a facility which provides appropriate risk level requirements.
                                                                                                                                                                                                                                                        [Those not qualifying as low-risk inmates shall be immediately transferred to a high-risk facility.] 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 April 27, 1992. TRD-9205975 Jack E. Crump Executive Director Texas Commission on Jail Standards Earliest possible date of adoption: June 8, 1992 For further information, please call: (512) 463-5505 Texas Department of Insurance Exempt Filing Notification Pursaunt 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. on June 11, 1992, will consider the adoption of the Texas Dwelling Policy Forms and Endorsements, pursuant to the Insurance Code, Article 5.35, that will become the minimum coverage that must be provided under a dwelling insurance policy. These policies and endorsements have been rewritten from conventional language to simplified easy to read language and have been reformatted to provide a more "user-friendly" policy for insureds. New options in coverage combinations are provided under single coverage forms to eliminate the need of using separate endorsements to extend coverage under a policy. In addition, the policy forms and endorsements to be considered by the board, meet the minimum readability standards set by order of the commissioner of insurance. Coverage being provided under the new policy forms is equal to or greater than the coverage currently provided under the approved policy forms. Reference to short rate cancellation has been eliminated to provide equal treatment to both the company and the insured. The new policy forms incorporate provisions of the Insurance Code, Article 21.49-2B (relating to cancellation and nonrenewal of certain property and casualty policies) and Article 21.55 (relating to prompt payment of claims), and eliminate the need for the attachment of mandatory endorsements. Endorsements containing obsolete provisions or coverages have been eliminated. Copies of the full text, of the policy forms and endorsements are available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P-0492-19I). The 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 May 4, 1992. TRD-9206076 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327 The State Board of Insurance, at a board meeting scheduled for 8:30 a.m. on June 11, 1992, will consider the adoption of the Texas Farm and Ranch Owners Policy Forms and Endorsements, pursuant to the Insurance Code, Article 5.35, that will become the minimum coverage that must be provided under a farm and ranch owners insurance policy. These policies and endorsements have been rewritten from conventional language to simplified easy to read language and have been reformatted to provide a more "user-friendly" policy for insureds. In addition, the policy forms and endorsements to be considered by the board meet the minimum readability standards set by order of the commissioner of insurance. The policy forms and endorsements to be adopted provide the same coverage and policy conditions as were previously approved by the board with the following exceptions. Reference to short rate cancellation has been eliminated to provide equal treatment to both the company and the insured. The new policy forms incorporate provisions of the Insurance Code, Article 21.49-2B (relating to cancellation and nonrenewal of certain property and casualty policies), Article 21.55 (relating to prompt payment of claims), and Article 21.56 (relating to notice of settlement of liability claims), and eliminate the need for the attachment of mandatory endorsements. Liability and property coverage have been combined in the policy forms eliminating the need to attach a separate liability endorsement. Policy Form FRO-C has been eliminated and an optional endorsement is available to provide all-risk coverage previously provided under Form FRO-C. Copies of the full text of the policy forms and endorsements are available for review in the office of the Chief Clerk of the State Board of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P-0492-20I). The 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 May 4, 1992. TRD-9206077 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327 The State Board of Insurance, at a board meeting scheduled for 8:30 a.m, June 11, 1992, will consider the adoption of the Texas Farm and Ranch Policy Forms and Endorsements, pursuant to the Insurance Code, Article 5.35, that will become the minimum coverage that must be provided under a farm and ranch insurance policy. These policies and endorsements have been rewritten from conventional language to simplified easy to read language and have been reformatted to provide a more "user-friendly" policy for insureds. New options in coverage combinations are provided under single coverage forms to eliminate the need of using separate endorsements to extend coverage. In addition, the policy forms and endorsements to be considered by the board meet the minimum readability standards set by order of the commissioner of insurance. Coverage being provided under the new policy forms is equal to or greater than the coverage currently provided under the approved policy forms. Reference to short rate cancellation has been eliminated to provide equal treatment to both the company and the insured. The new policy forms incorporate provisions of the Insurance Code, Article 21.49-2B (relating to cancellation and nonrenewal of certain property and casualty policies) and Article 21.55 (relating to prompt payment of claims), and eliminate the need for the attachment of mandatory endorsements. Endorsements containing obsolete provisions or coverages have been eliminated. Copies of the full text of the policy forms and endorsements are available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P-0492-21I). The 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 May 4, 1992. TRD-9206078 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327 The State Board of Insurance, at a board meeting scheduled for 8:30 a.m. June 11, 1992, will consider the adoption of the Texas Homeowners Policy Forms and Endorsements, pursuant to the Insurance Code, Article 5.35, that will become the minimum coverage that must be provided under a homeowners insurance policy. The policy forms and endorsements to be considered by the board meet the minimum readability standards set by order of the commissioner of insurance. The policy forms and endorsements to be adopted provide the same coverage and policy conditions as were previously approved by the board with the following exceptions. Reference to short rate cancellation has been eliminated to provide equal treatment to both the company and the insured. The new policy forms incorporate provisions of the Insurance Code, Article 21.49-2B (relating to cancellation and nonrenewal of certain property and casualty policies), Article 21.55 (relating to prompt payment of claims), and Article 21.56 (relating to notice of settlement of liability claims), and eliminate the need for the attachment of mandatory endorsements. Copies of the full text of the policy forms and endorsements are available for review in the office of the Chief Clerk of the State Board of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P-0492-22I). The 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 May 4, 1992. TRD-9206079 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327 The State Board of Insurance, at a board meeting scheduled for 8:30, on June 11, 1992, will consider the adoption of the Texas Personal Lines Manual, pursuant to the Insurance Code, Article 5.101. The new Texas Personal Lines Manual contains rules, rates and/or premiums applicable to the writing of the Texas Homeowners Policy, Texas Dwelling Policy, Texas Farm and Ranch Owners Policy and the Texas Farm and Ranch Policy. The Texas Personal Lines Manual replaces the existing dwelling, homeowners, farm and ranch, and farm and ranch owners sections of the Texas General Basis Schedules. The manual consists of a Homeowners, Dwelling, Farm and Ranch, and Farm and Ranch Owners section. Each section has been reformatted and rewritten to correspond with the new simplified easy to read policies. In addition, optional credits have been included in the Homeowners and Farm and Ranch Owners sections to provide a method of reducing premium for qualifying risks. The minimum premium in the Dwelling and Farm and Ranch sections has been amended to a $25 policy writing minimum premium. Copies of the full text of the policy form are available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P-0492-23I). The 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 May 4, 1992. TRD-9206080 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327 The State Board of Insurance, at a board meeting scheduled for 8:30 a.m. on June 11, 1992, will consider the adoption of the Texas Commercial Property Rating Manual. This manual will be used for the inspection of buildings to establish base fire and extended coverage insurance rates under the Insurance Code, Article 5.25. The new manual replaces the existing rating schedules contained in the Texas General Basis Schedules with certain revisions to update the new manual to incorporate the new name of the agency as the Texas Department of Insurance. The new manual has been structured in a simplified format to be more "user friendly" and provide protection class codes for cities and towns as well as construction class codes. In addition, Guidelines and Standards for Approval of Testing Laboratories have been incorporated for easy reference by all interested parties. This is an initial stage in a continuing process to establish a more efficient and effective classification system to better recognize fire protection. Copies of the full text of the manual are available for review in the office of the Chief Clerk of the State Board of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further information or to request copies of the text, please contact Lynette Brown at (512) 322-4147, refer to (Reference Number P- 0492-24I). The notification is made pursuant to the Texas 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 May 4, 1992. TRD-9206081 Linda von Quintus-Dorn Chief Clerk Texas Department of Insurance Filed: May 4, 1992 For further information, please call: (512) 463-6327