Adopted Sections An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 22. EXAMINING BOARDS Part VI. Texas State Board of Registration for Professional Engineers Chapter 131. Practice and Procedure Complaints 22 TAC sec.131.173 The Texas State Board of Registration for Professional Engineers adopts an amendment to sec.131.173, concerning complaints, without changes to the proposed text as published in the March 10, 1992, issue of the Texas Register (17 TexReg 1799). The amendment was necessary to correct language in the title in order to provide consistency between the language contained in Texas Civil Statutes, Article 3271a and the board rules of practice and procedure. The amendment clarifies the section as it relates to registrants. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), which provide the board with the authority to make and enforce all rules and regulations necessary for the performance of its duties. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on May 8, 1992. TRD-9206410 Charles E. Nemir, P.E. Executive Director Texas State Board of Registration for Professional Engineers Effective date: May 29, 1992 Proposal publication date: March 10, 1992 For further information, please call: (512) 440-7723 Part XXII. Texas State Board of Public Accountancy Chapter 501. Professional Conduct Advertising and Soliciting 22 TAC sec.501.46 The Texas State Board of Public Accountancy adopts an amendment to sec.501. 46, concerning form of practice, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1851). The amendment is necessary in order to ensure that certificate and license holders may practice public accountancy through limited liability companies and limited liability partnerships. The section will clarify the types of business entities through which CPAs may practice public accountancy. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules of professional conduct relating to form of practice. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206338 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 Chapter 505. The Board 22 TAC sec.505.10 The Texas State Board of Public Accountancy adopts an amendment to sec.505. 10, concerning board committees, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1851). The amendment is necessary in order to clarify the responsibilities of the committees of the board. The section defines the committee's responsibilities. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to board committees. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206339 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 Chapter 513. Registration Registration of Partnerships 22 TAC sec.513.28 The Texas State Board of Public Accountancy adopts new sec.513.28, concerning registered limited liability partnership, without changes to the proposed text as published in the March 3, 1992, issue of the Texas Register (17 TexReg 1974). The section is necessary in order to clarify the partnership entities which may register with the board. The section will allow certificate and registration holders to register as limited liability partnerships. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to limited liability partnership. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206341 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 3, 1992 For further information, please call: (512) 450-7066 Registration of Partnerships 22 TAC sec.513.32 The Texas State Board of Public Accountancy adopts new sec.513.32, concerning application for registration of a limited liability company, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1873). The section is necessary in order to ensure that the requirements for filing an application are clearly stated. The section will detail the requirements for filing an application for registration of a limited liability company. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to application for registration of limited liability companies. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206342 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 Registration of Partnerships 22 TAC sec.513.33 The Texas State Board of Public Accountancy adopts new sec.513.33, concerning sections and statutory requirements that apply to limited liability companies, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1853). This section is necessary in order to insure that the rules applying to limited liability partnerships are clarified. The section states that limited liability partners and partnerships must follow the standards set for partners and partnerships. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to application for registration of limited liability companies. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206343 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 22 TAC sec.513.34 The Texas State Board of Public Accountancy adopts new sec.513.34, concerning the name of limited liability companies, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1853). The section is necessary in order to ensure that the requirements for naming business entities are clear and specific. The section will set forth the requirements for naming limited liability companies. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to application for registration of limited liability companies. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206344 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 22 TAC sec.513.35 The Texas State Board of Public Accountancy adopts new sec.513.35, concerning franchise tax status upon license application, without changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1874). The section is necessary in order to strengthen the state's ability to collect franchise taxes. The section requires that applicants affirmatively certify that franchise tax payments are current. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 41a-1, sec.6(a), which provide the Texas State Board of Public Accountancy with the authority to promulgate rules relating to application for registration of limited liability companies. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on April 22, 1992. TRD-9206345 William Treacy Executive Director Texas State Board of Public Accountancy Effective date: May 28, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 450-7066 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 7. Administration of State Lottery Act Subchapter D. Lottery Game Rules 34 TAC sec.7.301 The Comptroller of Public Accounts adopts new sec.7.301, concerning general definitions, with changes to the proposed text as published in the April 7, 1992, issue of the Texas Register (17 TexReg 2454). This new section defines general terms that are commonly used in lottery games. The new section relates to instant games as authorized by the State Lottery Act. The changes expand the meanings of words and terms to their use in this chapter and clarify that a mid-tier prize includes prize amounts of up to $600. No comments were received regarding adoption of the new section. The new section is adopted under the State Lottery Act, sec.2.02, which provides the comptroller with the authority to adopt all rules necessary to administer the State Lottery Act. sec.7.301. General Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Caption-The letters appearing below the play symbols in the play area that verify the correctness of the play symbols. Claim form-The printed form authorized by the Texas Lottery that a player shall complete and submit to the Texas Lottery along with a winning ticket to be eligible to collect a prize. Claimant-A player who has submitted a valid claim for payment within the required time frame. Claim center-A Texas Lottery location designated by the director to pay claims for prizes. Director-The director of the Texas Lottery. Draw procedures -The written document approved by the director that specifies the draw procedures for a particular game, if a drawing is designed as part of the game. Game number-The number on the back of the ticket which refers to the number associated with the particular game. Game procedures -The written document approved by the director that includes, among other things, the game name, how a prize is won, game prize structure, playstyle, and eligibility for a drawing, if any. Grand prize drawing-An event in which qualified contestants are awarded prizes in a random manner. High-tier prize -A prize of $600 or more. Instant Game-An instant ticket lottery game, developed and offered for sale to the public in accordance with these rules, that is played by uncovering the hidden play area from a ticket to reveal the ticket symbols. Lottery retailer or retailer-A sales agent. Low-tier prize -A prize of less than $50. Mid-tier prize -A prize of $50 or more but less than $600. Minor-An individual younger than 18 years of age. Pack number-The unique number on the back of the ticket that designates the number of the pack. Play area-The latex-covered area of a ticket that contains the ticket symbols. Playstyle-The method of play to determine a winner for an individual game. Play symbol-The printed data under the latex on the front of a ticket that is used to determine eligibility for a prize. The symbols for individual games will be specified in individual game procedures. Preliminary drawing -An event in which tickets received by a specific deadline are utilized for the selection of contestants for a grand prize drawing. Prize structure -The number, value, and odds of winning prizes for an individual game as approved by the director. Sales agent-A person licensed under the State Lottery Act to sell tickets. Texas Lottery-The lottery division established in the Comptroller of Public Accounts under the State Lottery Act. Ticket-Any tangible evidence issued to allow participation in a game or activity authorized by the State Lottery Act. Ticket number-The number on the back of the ticket that refers to the ticket sequence within the pack. Validation number -The unique data printed on a ticket that provides for the verification of the ticket as a valid winner. Valid ticket-A ticket which meets all specifications and validation requirements and entitles the holder to a specific prize amount. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on May 8, 1992. TRD-9206415 Charles Johnstone Senior Legal Counsel, General Law Section Comptroller of Public Accounts Effective date: May 29, 1992 Proposal publication date: April 7, 1992 For further information, please call: (512) 463-4028 34 TAC sec.7.302 The Comptroller of Public Accounts adopts new sec.7.302, concerning instant game rules, with changes to the proposed text as published in the April 7, 1992, issue of the Texas Register (17 TexReg 2454). This new section sets forth the types of lottery instant ticket games that might be implemented, how lottery prizes are won, and how and where prizes are claimed. The new section relates to instant games as authorized by the State Lottery Act. Changes occur in subsections (e) and (f) and they clarify that retailers may pay mid-tier prizes, but are not required; that retailers may pay prizes with a business check; that a claim form is required for any prize paid by a lottery claim center. In addition, subsection (f)(8) was added and provides that the director will recognize only one person as the claimant of a particular prize. No comments were received regarding adoption of the new section. The new section is adopted under the State Lottery Act, sec.2.02, which provides the comptroller with the authority to adopt all rules necessary to administer the State Lottery Act. sec.7.302. Instant Game Rules. (a) Sale of instant game tickets. (1) Only retailers who have been licensed by the Texas Lottery are authorized to sell instant game tickets, and tickets may be sold only at a licensed location. (2) Each instant game ticket shall sell for the retail sales price authorized by the director and stated in the individual game procedures. (3) Each instant game ticket shall state the overall estimated odds of winning a prize of any kind. (b) Game procedures. (1) The director shall approve and publish individual game procedures prior to each instant game being introduced for sale to the public. Game procedures shall be published in the Texas Register and shall be made available upon request to the public. (2) At a minimum, the game procedures for each game shall contain the following information: (A) confirming captions; (B) game name; (C) game number; (D) prize structure; (E) playstyle; (F) play symbols; (G) ticket order quantity; (H) retail sales price; (I) dollar amount of prizes that may be paid by retailers; and (J) eligibility requirements for a prize drawing, if any. (3) The playstyle for an individual game shall be fully described in the game procedures and may take the form of one of the following methods of play: (A) match three; (B) match three with specific variant; (C) three match three; (D) add up; (E) three in line; (F) key number match; (G) yours beats theirs; (H) three consecutive numbers in sequence; or (I) any other playstyle developed by the Texas Lottery. (c) Determination of prize winner. (1) The play symbols shall be used by a player to determine eligibility for instant prizes. Qualifying play symbols are stated in the game procedures. (2) A player's eligibility to win a prize is subject to the ticket validation requirements provided in subsection (d) of this section. (3) For each individual game, the player shall rub off the latex covering on the front of the ticket to reveal the play symbols. Eligibility to win a prize is based on the approved playstyle as follows. (A) Match three. If three identical play symbols are revealed on the ticket, the player shall win the prize indicated. (B) Match three with specific variant. The player shall win the prize indicated in either of the following ways: (i) the player matches three identical play symbols; or (ii) the player matches two identical play symbols and the variant as specified in the game procedures. (C) Three match three. If three identical play symbols are revealed across one of the three lines, the player shall win the prize indicated. (D) Add up. If the player adds up all of the play symbols printed on the ticket and the amount is greater than or equal to the required total amount printed on the ticket, the player shall win the prize indicated. (E) Three in line. If the player finds three identical play symbols, either diagonally, vertically, or horizontally, on the same ticket, the player shall win the prize indicated. (F) Key number match. If the player finds a play symbol that matches the designated key play symbol, the player shall win the prize indicated. (G) Yours beats theirs. If the player finds a play symbol designated as yours that is greater than the play symbol(s) designated as theirs, the player shall win the prize indicated. (H) Three consecutive numbers in sequence. If the player finds three play symbols in a specified consecutive order among the play symbols, the player shall win the prize indicated. (d) Ticket validation requirements. (1) Each instant game ticket shall be validated according to validation procedures prior to payment of a prize. (2) An instant game ticket shall comply with all of the following. (A) The ticket shall not be stolen or appear on any list of omitted tickets on file with the Texas Lottery. (B) The ticket shall not be counterfeit or forged, in whole or in part. (C) The ticket shall not be mutilated, altered, unreadable, reconstituted, or tampered with in any manner. (D) The ticket shall have been issued by the Texas Lottery in an authorized manner. (E) The ticket shall have been received or recorded by the Texas Lottery by applicable deadlines. (F) The ticket shall pass the confidential validation and security tests appropriate to the applicable playstyle. (G) The validation number of an apparent winning ticket shall appear on the Texas Lottery's official list of validation numbers of winning tickets. A ticket with that validation number shall not have been paid previously. (3) Any ticket not passing all of the validation tests and requirements is void and ineligible for any prize and shall not be paid. The director may, at his/her exclusive determination, reimburse the player for the cost of the void ticket. (4) If a defective ticket is purchased, the Texas Lottery's only liability shall be reimbursement for the cost of the void ticket. (e) Payment of low-tier and mid-tier prizes. (1) Low-tier prizes shall be paid by any retailer or claim center. Mid-tier prizes may be paid by any retailer and shall be paid by any claim center. (2) Retailers may pay cash prizes in cash or by certified check, cashier's check, or money order. Retailers may also pay prizes by business check if acceptable to the claimant. If a retailer decides to pay a prize with a business check, the retailer should inform the claimant prior to ticket validation. (3) Retailers shall pay claims for prizes during their normal business hours, if the Texas Lottery's validation system is operational. (4) Before paying a prize, retailers shall validate the winning ticket according to established validation requirements and procedures. (5) Payment of a prize will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification, if appropriate. (f) Payment of high-tier prizes. (1) High-tier prizes shall be paid by check or warrant by any claim center. (2) A claim form must be thoroughly completed, except for those items where a response is optional, to claim any prize through a claim center. (3) Before paying any prize, claim center technicians shall validate the winning ticket according to established validation requirements and procedures. (4) The Texas Lottery shall deduct from prizes paid by the Texas Lottery a sufficient amount from the winnings of a person who has been finally determined to be: (A) delinquent in the payment of a tax or other money collected by the Comptroller of Public Accounts, state treasurer, or Texas Alcoholic Beverage Commission; (B) delinquent in making child support payments administered or collected by the attorney general; or (C) in default on a loan guaranteed under the Education Code, Chapter 57. (5) If a person is indebted or owes delinquent taxes to the state, other than those specified in paragraph (4) of this subsection, the winnings of a person shall be withheld until the debt or taxes are paid. (6) When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service. In addition, before paying a prize of more than $5,000, the Texas Lottery shall withhold federal income tax at a rate set by the Internal Revenue Service. (7) Payment of a prize will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification. (8) The director shall recognize only one person as claimant of a particular prize. A claim may be made in the name of a person other than an individual only if the person possesses a federal employer identification number (FEIN) issued by the Internal Revenue Service and such number is shown on the claim form. Groups, family units, clubs, organizations, or other persons without an FEIN shall designate one individual in whose name the claim is to be filed. If a claim is erroneously entered with multiple claimants, the claimants shall designate one of them as the individual recipient of the prize, or, if they fail to designate an individual recipient, the director may designate any one of the claimants as the sole recipient. In either case, the claim shall then be considered as if it were originally entered in the name of the designated individual and payment of any prizes won shall be made to that single individual. Once a ticket is validated, it will not be returned to the winner, but will be forwarded to the lottery, along with the completed claim form. (g) Payment of prize awarded to minor. (1) A person 18 years of age or older may purchase a ticket to give as a gift to another person, including a minor. (2) If a minor is entitled to a cash prize of less than $600, the Texas Lottery shall deliver to an adult member of the minor's family or to the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor. (3) If a minor is entitled to a cash prize of more than $600, the Texas Lottery shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor. (4) If a minor is entitled to a prize other than money, the Texas Lottery shall pay the cash equivalent of such prize in the manner provided by paragraphs (2) and (3) of this subsection. (h) Ticket responsibility. (1) A ticket is a bearer instrument until signed on the back by the ticket holder. (2) The Texas Lottery shall not be responsible for lost, stolen, or destroyed tickets. (3) The Texas Lottery shall not be responsible for erroneous or mutilated tickets. (4) The Texas Lottery shall not be responsible for tickets claimed by a player in error for a lower prize at a retailer. (5) The Texas Lottery shall not be responsible for tickets delivered to any address other than that designated by the Texas Lottery for such purpose. (i) Disputed ticket. If a dispute arises between the Texas Lottery and a ticket claimant concerning whether the ticket is a winning ticket and if the ticket prize has not been paid, the director may, exclusively at his/her determination, reimburse the claimant for the cost of the disputed ticket. This shall be the claimant's exclusive remedy. (j) Game termination and prize claim period. (1) The director, at any time, may announce the termination date for an individual game. If this occurs, no tickets shall be sold past the termination date. (2) Instant game prizes shall be claimed no later than 180 days after the termination date of the individual game. (3) Any prize directly payable by the Texas Lottery and not claimed within the period and manner provided in this section shall be used to provide additional money to the state lottery account for the payment of prizes. (k) Game report. Following the last day on which prizes may be claimed after termination of a game, the director shall prepare a report that shows, at a minimum, the total number of tickets sold and the number of prizes awarded in the game. The report shall be made available for public inspection. (l) Governing law. In purchasing an instant game ticket, the lottery player agrees to comply with and abide by Texas law, all rules and final decisions of the Texas Lottery, and all procedures and instructions established by the director for the conduct of the instant game. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on May 8, 1992. TRD-9206416 Charles Johnstone Senior Legal Counsel, General Law Section Comptroller of Public Accounts Effective date: May 29, 1992 Proposal publication date: April 7, 1992 For further information, please call: (512) 463-4028 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 85. General Licensing Procedures Subchapter U. Day Care Licensing Procedures 40 TAC sec.85.2012 The Texas Department of Human Services (DHS) adopts an amendment to sec.85. 2012 in its General Licensing chapter, without changes to the proposed text as published in the March 24, 1992, issue of the Texas Register (17 TexReg 2203). The amendment is justified because it provides for the new owner to operate within the law immediately after assuming ownership of the facility. The amendment will function by allowing for the issuance of a child care license to a new owner to be effective no later than the date the new owner assumes the responsibility for operation. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs, and Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on May 8, 1992. TRD-9206370 Nancy Murphy Agency liaison, Policy and Document Support Texas Department of Human Services Effective date: June 15, 1992 Proposal publication date: March 24, 1992 For further information, please call: (512) 450-3765