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 IV. Office of the Secretary of State Chapter 73. Statutory Documents Statement of Officer Forms 1 TAC sec.73.43, sec.73.44 The Office of the Secretary of State proposes new sec.73.43, concerning Facsimile Transmission of a Statement of Officer forms and new sec.73.44, concerning Statement of Officer forms. These rules are proposed in order to clarify the acceptance by the Office of the Secretary of State of facsimile copies of Statement of Officer forms. Guy Joyner, staff attorney, has determined that for the first five-year period the sections are in effect there will be a savings of $5,600 in postage costs for local government and a time savings to state government due to the elimination of the duplication of filing nor occurring. Mr. Joyner 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 to provide elected and appointed officials with a clarification of the procedure for facsimile filing of Statement of Officer forms with the secretary of state as well as sanctioning the proper form to be used for the filing. There will be no cost to small businesses as a result of enforcing the sections. There is no anticipated additional economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Guy Joyner, Staff Attorney, Statutory Documents Sections, P.O. Box 12887, Austin, Texas 78711-2887. The new sections are proposed under Texas Civil Statutes, Article 6252-13a, sec.4(a)(1), which provide the secretary of state with the authority to prescribe and adopt rules. sec.73.43. Facsimile Transmission of a Statement of Officer Form. The Office of the Secretary of State will accept a properly executed legible facsimile (FAX) copy of the appropriate signed Statement of Officer form required by Vernon's Annotated Texas Constitutional Article 16, sec.1(b) or (d). The facsimile copy eliminates the requirement to file the originally signed instrument with this Office. sec.73.44. Statement of Officer Forms. (a) The Office of the Secretary of State hereby adopts by reference the Statement of Elected Officer and the Statement of Appointed Officer forms. Blank sample copies of each of the forms may be obtained form the Office of the Secretary of State, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887. (b) All persons required to file either of these statements shall use the appropriate form or a document which shall contain the following information: the applicable constitutionally required language with the affiant's typed or printed name, the affiant's signature, the specific office elected or appointed to, and the city and county where the office is located. (c) The Statement of Officer form will be executed before an officer authorize to administer oaths. 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 29, 1992. TRD-9207483 Audrey Selden Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 463-5558 TITLE 7. BANKING AND SECURITIES Part VII. State Securities Board Chapter 109. Transactions Exempt from Registration 7 TAC sec.109.17 The State Securities Board proposes new sec.109.17, concerning federal savings banks. The new section clarifies the status of federal savings banks for purposes of the Securities Act, s5.L. Richard D. Latham, securities commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Latham 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 greater certainty with regard to the availability of exemption under the Act, s5.L, for certain transactions involving the shares of federal savings banks. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Denise Voight Crawford, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. The new section is proposed under Texas Civil Statutes, Article 581, sec.28. 1, which provide the board with the authority to adopt rules and regulations governing registration statements and applications; classify securities, persons, and matters within its jurisdiction; and prescribe different requirements for different classes. sec.109.17. Federal Savings Banks. For purposes of the Securities Act, sec.5.L, the phrase "any federal savings and loan association" shall include any federally chartered savings bank. 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 June 2, 1992. TRD-9207521 Richard D. Latham Securities Commissioner State Securities Board Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 474-2233 Chapter 133. Forms 7 TAC sec.133.34 The State Securities Board proposes new sec.133.34, concerning undertaking regarding non-issuer sales pursuant to sec.139.13 of this title (relating to Non-Issuer Sale). The purpose of the undertaking is to have certain users of the sec.139.14 exemption commit that the proceeds from sale of their securities will not insure to the benefit of the issuer of the securities. Richard D. Latham, securities commissioner has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Latham also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a decreased likelihood that the exemption contained in proposed sec.139.14 would be relied upon improperly. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Denise Voight Crawford, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. The new section is proposed under Texas Civil Statutes, Article 581, sec.28. 1, which provide the board with the authority to adopt rules and regulations governing registration statements and applications; classify securities, persons, and matters within its jurisdiction; and prescribe different requirements for different classes. sec.133.34. Undertaking Regarding Non-Issuer Sales Pursuant to sec.139. 14 of this Title (Relating to Non-Issuer Sales). The State Securities Board adopts by reference the undertaking regarding non-issuer sales pursuant to sec.139.14 of this title in October 1992. This form is available from the State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. 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 June 2, 1992. TRD-9207524 Richard D. Latham Securities Commissioner State Securities Board Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 474-2233 Chapter 139. Exemption by Rule or Order 7 TAC sec.139.13 The State Securities Board proposes new sec.139.13, concerning resales under SEC Rule 144 and Rule 145(d). This proposal and proposed sec.139.14 of this title (relating to Non-Issuer Sales) are intended to fill a narrow gap that exists by virtue of the fact that the Securities Act, sec.5.C(1), is too narrow to cover certain legitimate, non-issuer sales of securities that are not otherwise exempt. Richard D. Latham, securities commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Latham also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the availability of an additional exemption to cover rare situations in which non-issuer owners of securities are unable to sell their securities pursuant to one or more exemptions under the Securities Act, including sec.5.C(1). There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Denise Voight Crawford, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. The new section is proposed under Texas Civil Statutes, Article 581, sec.28. 1, which provide the board with the authority to adopt rules and regulations governing registration statements and applications; classify securities, persons, and matters within its jurisdiction; and prescribe different requirements for different classes. sec.139.13. Resales under SEC Rule 144 and Rule 145(d). (a) Exemption from securities registration. Offers to resell and resales of any security by the owner thereof, or any persona acting on behalf of the owner, shall be exempt from the securities registration requirements of the Securities Act, s7, pursuant to sec.5.T, if the offers to resell and resales of securities are made in compliance with either: (1) Rules 144 promulgated by SEC under the Securities Act of 1933, as amended (1993 Act), as made effective in SEC Release Number 33-5223, as amended in Release Numbers 33-5307, 33-5452, 33-5452A, 33-5560, 33-5613, 33-5517, 33.5979, 33-6032, 33.6180, 34-16589, 33.6286, 33.6389, 33.6488, 33. 6768, and 33.6862; or (2) Rule 145(d) promulgated by SEC under the 1933 Act as made effective in SEC Release Number 33-5316, as amended in Release Numbers 33-5932, 33.6508, 33.6578, 33.6579, 33.6611, and 33.6862. (b) Dealer and agent registration. Any person (other than the owner) who acts as an agent of the owner in connection with a sale to any prospective purchaser in a transaction exempt from securities registration by virtue of this section shall be registered as either a dealer or agent under the Act, as applicable. 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 June 2, 1992. TRD-9207522 Richard D. Latham Securities Commissioner State Securities Board Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 474-2233 7 TAC sec.139.14 The State Securities Board proposes new section sec.139.14, concerning non- issuer sales. This proposal and proposed sec.139.13 of this title (relating to Resales Under SEC Rule 144 and Rule 145(d)) are intended to fill a narrow gap that exists by virtue of the fact that the Securities Act, sec.5.C(1), is too narrow to cover certain legitimate, non-issuer sales of securities that are not otherwise exempt. Richard D. Latham, securities commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Latham also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the availability of an additional exemption to cover rare situations in which non-issuer owners of securities are unable to sell their securities pursuant to one or more exemptions under the Securities Act, including sec.5.C(1). There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Denise Voight Crawford, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. The new section is proposed under Texas Civil Statutes, Article 581, sec.28. 1, which provide the board with the authority to adopt rules and regulations governing registration statements and applications; classify securities, persons, and matters within its jurisdiction; and prescribe different requirements for different classes. The State Securities Board, pursuant to the Securities Act (the Act), sec.5.T, exempts from the securities registration requirements of the Securities Act, sec.7, the offer and sale of any securities, provided the following conditions are met. (1) Who may sell. Offers or sales may be made by an owner of the securities, or any person acting on the owner's behalf, so long as the owner is not the issuer of the securities. (2) Dealer and agent registration. Any person (other than the owner) who acts as an agent of the owner in connection with a sale to any prospective purchaser in a transaction exempt from securities registration by virtue of this section shall be registered as either a dealer or agent under the Act, as applicable. (3) Use of proceeds. The proceeds of the sale shall be for the benefit of the owner and not directly or indirectly for the benefit of the issuer of the securities. (4) Number of sales. (A) The owner, together with any persons acting in concert with the owner, may make no more than 15 sales in any 12-month period under and in reliance on this section, exclusive of sales made to the issuer, or in compliance with the Act, sec.sec.5.0, 6.F, or 5.H, sec.109.3 of this title (relating to Sales to Financial Institutions and Certain Institutional Investors), sec.139.7 of this title (relating to Sales of Securities to Non-Residents), or sec.139.13 of this title (relating to Resales under SEC Rule 144 and Rule 145(d), except as the allowable number of sales may be increased as provided in subparagraph (B) of this paragraph. (B) The number of sales that may be made under subparagraph (A) of this paragraph may be increased to a higher number as approved by the securities commissioner in response to a written request based on the particular circumstances of a specific transaction. If the securities commissioner approves a higher number of sales in accordance with the provisions of this subparagraph, then in the particular case addressed by the written request, the higher number of approved sales will be allowed. (C) The exemption provided by this section may not be combined with sales made pursuant to the Act, sec.5.C(1) to exceed sales otherwise allowable under this section. (5) Filing requirement for certain persons. Any person who is a director, executive officer, or owner of 15% or more of a class of voting securities or other ownership interests of the issuer who wishes to make sales under and in reliance on this section must file a Form 133.34 with the securities commissioner no later than 15 days after the first receipt of any portion of the consideration for the securities being sold. (6) Anti-fraud provisions. Nothing in this section is intended to or should be construed as in any way relieving owners or persons acting on behalf of owners from an existing duty to disclose to prospective investors information adequate to satisfy the anti-fraud provisions of the 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 June 2, 1992. TRD-9207523 Richard D. Latham Securities Commissioner Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 474-2233 TITLE 19. EDUCATION Part I. Texas Higher Education Coordinating Board Chapter 5. Program Development Subchapter O. Offering of Small Classes by Public Senior Colleges and Universities The Texas Higher Education Coordinating Board proposes repeal of sec.sec.5. 301-5.304 and new sec.sec.5.301-5.303, concerning offering of small classes by public senior colleges and universities. These sections are being repealed and rewritten in response to Rider 19 in Article III of House Bill Number 1, 72nd Legislature. Semester credit hours generated in organized small class would not be included when calculating the number of semester credit hours used for funding. Roger Elliott, assistant commissioner for research and financial planning, has determined that for the first five-year period the repeals and sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals and sections. Mr. Elliott also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals and sections will be more efficient operation of public universities. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals and sections as proposed. Comments on the proposal may be submitted to Kenneth H. Ashworth, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711. 19 TAC sec.sec.5.301-5.304 (Editor's note: The text of the following section*s proposed for repeal will not be published. The sections may be examined in the offices of the Higher Education Coordination Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under Article III, Rider 19, House Bill 1, 72nd Legislature which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding offering of small classes by public senior colleges and universities. sec.5.301. General Provisions. sec.5.302. Definitions. sec.5.303. Justification Codes for the Offering of Small Classes. sec.5.304. Consecutive Offerings of Small Classes. 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 June 2, 1992. TRD-9207580 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 19 TAC sec.sec.5.301-5.303 The new sections are proposed under Article III, Rider 19, House Bill 1, 72nd Legislature which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding offering of small classes by public senior colleges and universities. In compliance with the Texas Education Code, sec.51.403(d), the Coordinating Board sets forth the following guidelines for use by public senior colleges and universities for the offering of small classes. Organized small classes may be offered in any institution as authorized by the appropriate governing board within the following guidelines, but credit hours in such classes may not be counted toward formula funding, as provided in sec.5.302 of this title (relating to Funding). An organized small class may be offered which: (1) is a required course for graduation (the course is not offered each semester or term, and, if canceled, may affect the date of graduation of those enrolled); (2) is a required course for majors in this field and should be completed this semester (or term) to keep proper sequence in courses; (3) is a course in newly established degree program, concentration, or support area; (4) are interdepartmental (cross-listed) courses taught as a single class by the same faculty at the same station, provided that the combined courses do not constitute a small class; (5) is a first-time offering of the course; (6) is class size-limited by accreditation or state licensing standards; (7) is class size-limited by availability of laboratory or clinical facilities; or (8) is voluntarily offered by a faculty member in excess of the institutional teaching load requirement and for which the faculty member receives no additional compensation. sec.5.302. Funding. In compliance with Article III, Rider 19 of House Bill Number 1, 72nd Legislature, the Coordinating Board will delete all semester credit hours generated by organized small classes when computing the number of semester credit hours to be used in the formula base period for the general academic institutions. sec.5.303. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Base period-The Summer, Fall, and Spring semesters immediately preceding the biennium to be funded (ie: for the 1992-1993 biennium, the base period was Summer 1990, Fall 1990, and Spring 1991). Individual instruction classes-Classes whose primary mode of instruction is practicum, independent study, private lesson, thesis, dissertation, or self- paced instruction. Organized classes -Classes whose primary mode of instruction is lecture, laboratory, seminar, or group television instruction. Small classes-Undergraduate level classes with less than 10 registrations, and graduate level classes with less than five registrations. 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 June 2, 1992. TRD-9207579 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 Chapter 13. Financial Planning Subchapter A. General Provisions 19 TAC sec.13.4 (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 Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Higher Education Coordinating Board proposes the repeal of sec.13.4, concerning criteria for allocation of Fiscal Year 1978 funds appropriated for funding family practice residency programs. The rule is being repealed because it pertains to grants that are no longer being offered by the Coordinating Board. Roger Elliott, assistant commissioner for research and financial planning, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Elliott also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be state funds dedicated to the production of family physicians will not be entirely allocated to residency programs that produce family physicians within at most one year of their being funded. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Kenneth H. Ashworth, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711. The repeal is proposed under the Texas Education Code, s61.503 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding criteria for allocation of Fiscal Year 1978 funds appropriated for funding family practice residency programs. sec.13.4. Criteria for Allocation of Fiscal Year 1978 Funds Appropriated for Funding Family Practice Residency Programs. 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 June 2, 1992. TRD-9207581 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 Subchapter D. Procedures and Criteria for Funding of Family Practice Residency Programs The Texas Higher Education Coordinating Board proposes the repeal of sec.sec.13.61-13.73 and new sec.sec.13.61-13.67, concerning procedures and criteria for funding of family practice residency programs. The rules are being repealed and rewritten to allow the Coordinating Board to make the most efficient and effective use of the funds appropriated for the Family Practice Residency Program. The new sections will also clarify the administration of related support programs for the Family Practice Residency Program. The rules will function to focus state funds on those family practice residency programs that are already functioning and producing family physicians, rather than on prospective programs that will take a few years to begin producing physicians. Roger Elliott, assistant commissioner for research and financial planning, has determined that for the first five-year period the repeals and sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals and sections. Mr. Elliott also has determined that for each year of the first five years the repeals and sections are in effect the public benefit anticipated as a result of enforcing the repeals and sections will be state funds dedicated to the production of family physicians will not be entirely allocated to residency programs that produce family physicians within at most one year of their being funded. There will be effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals and sections as proposed. Comments on the proposal may be submitted to Kenneth H. Ashworth, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711. 19 TAC sec.sec.13.61-13.73 The repeals are proposed under the Texas Education Code, s61.503, which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding procedures and criteria for funding of family practice residency programs. sec.13.61. Types of Grants sec.13.62. Procedures for Requesting Phase I Planning Grant. sec.13.63. Procedures for Requesting Phase II Planning Grant. sec.13.64. Procedures for Requesting Phase I Operational Grant. sec.13.65. Procedures for Requesting Phase II Operational Grant. sec.13.66. Plans Required to Accompany All Grant Requests. sec.13.67. Review of Applications. sec.13.68. Amount of Grant. sec.13.69. Criteria To Qualify for Grants. sec.13.70. Rural Rotations Reimbursement Grant. sec.13.71. Procedures for Requesting a Rural Rotations Grant. sec.13.72. Rural Rotations Preceptor Grants. sec.13.73. Procedures for Requesting a Rural Rotations Preceptor Grant. 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 June 2, 1992. TRD-9207582 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 19 TAC sec.sec.13.61-13.67 The new sections are proposed under the Texas Education Code, sec.61.503 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding procedures and criteria for funding of family practice residency programs. sec.13.61. Types of Grants. Medical schools, licensed hospitals, or nonprofit corporations may apply for a family practice residency operational grant, a support grant or a rural rotations reimbursement grant. A rural rotations supervisor may apply for a rural rotations supervisor grant. (1) A family practice residency operational grant is defined as a grant to support an ongoing family practice residency program and expansions of ongoing family practice residency programs. (2) A support grant is defined as a grant to support an ongoing program that encourages recruitment of medical students to the specialty of family medicine or the development of faculty for Texas family practice residency programs. (3) A rural rotations reimbursement grant is defined as a grant to reimburse Texas family practice residency programs for the costs of providing residents with optional one-month rotations in a rural setting in Texas. (4) A rural rotations supervisor grant is defined as a grant to reimburse rural supervisors for the costs of travel to a rural rotations workshop. sec.13.62. Requirements for a Family Practice Residency Operational Grant. To be considered for a family practice residency operational grant, a medical school, licensed hospital, or nonprofit corporation requesting an operational grant must at a minimum: (1) show that the program is accredited by the Accreditation Council on Graduate Medical Education (ACGME) or the American Osteopathic Association (AOA) as a family practice residency program; (2) meet the Coordinating Board criteria and financial reporting guidelines for a family practice residency operational grant; (3) give evidence that the program has been operational for two or more academic years; (4) give evidence of continuing local support for the program; (5) document expenditures and revenue for the program to substantiate funding needs; (6) submit annual progress reports on the training program to the Coordinating Board that demonstrate the program's efforts to recruit residents likely to practice in underserved areas of the state and the program's encouragement of residents to enter practice in underserved areas of the state. sec.13.63. Requirements for a Support Grant. To be considered for a support grant, a medical school, licensed hospital, or nonprofit corporation must: (1) conform to Coordinating Board guidelines for family practice residency support grant programs; (2) give evidence that the program to be funded has been operational for two or more academic years; (3) give evidence of continued need for funding; (4) document expenditures and revenue to substantiate funding needs; and (5) submit annual progress reports to the Coordinating Board. sec.13.64. Requirements for a Rural Rotations Reimbursement Grant. To be reimbursed for a resident's one-month rotation through a rural setting in Texas, a Texas family practice residency program must: (1) submit documentation giving evidence that the program sponsored a resident in a rural rotation that at the time of the rotation conformed to Coordinating Board guidelines concerning family practice residency rural rotations; (2) document expenditures for rural rotations to substantiate the request for reimbursement in accordance with Coordinating board guidelines; and (3) submit progress reports and financial reports on rural rotations grants to the Coordinating Board on an annual basis, to be reviewed by the Family Practice Residency Advisory Committee. sec.13.65. Requirements for a Rural Rotations Supervisor Grant. In order to apply for a rural rotations supervisor grant, a physician must: (1) meet the eligibility requirements for rural rotations supervisors as set out in Coordinating Board guidelines for rural rotations; (2) attend a rural rotations workshop sponsored by the Coordinating Board; and (3) submit documentation of travel expenditures in accordance with Coordinating Board guidelines after attending a rural rotations workshop. sec.13.66. Review of Family Practice Residency Operational Grant Applications and Support Grant Applications. Programs applying for family practice operational grants and support grants shall be reviewed by the Family Practice Residency Advisory Committee for their viability and their benefit to the state. Programs must be determined to serve the needs of the State of Texas in improving the distribution of health care delivery. The committee's review shall include the following: (1) the ability of the program to meet the requirements set out in sec.13.62 or sec.13.63 of this title (relating to Requirements for a Family Practice Residency Operational Grant; Requirements for a support Grant) and all program guidelines; (2) existing and anticipated costs and funding for currently funded programs and new programs requesting funding; (3) the program's performance in: (A) better distributing family physicians throughout the state; (B) helping medically underserved areas of Texas; and (C) encouraging residents to practice in underserved areas of the state. sec.13.67. Amount of Family Practice Operational Grants and Support Grants. The amount of funds to be allocated for any family practice residency operational grant or support grant shall be determined by the Coordinating Board, after receiving the recommendation of the Family Practice Residency Advisory Committee. Grants shall be used for operating expenditures as defined by generally acceptable accounting procedures and Coordinating Board guidelines for the program. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on June 2, 1992. TRD-9207583 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 Chapter 21. Student Services Subchapter C. Hinson-Hazlewood College Student Loan Program for all Loans which are Subject to the Provisions of the Guaranteed Student Loan Program, the College Access Loan Program, the Health Education Assistance Loan Program, and the Health Education Loan Program 19 TAC sec.21.64 The Texas Higher Education Coordinating Board proposes an amendment to sec.21.64, concerning Hinson-Hazlewood College Student Loan Program (repayment of loans). The rule change is needed in order to simplify the awarding of loan repayment deferments in the College Access Loan Program. The rule will separate the operation of the loan repayment deferment procedures of the College Access Loan Program from the procedures used for awarding deferments in loan programs with guarantees provided by the United States Department of Education. Mack Adams, assistant commissioner for student services, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Adams 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 simplified administration of the College Access Loan Program. 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 Kenneth H. Ashworth, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711. The amendment is proposed under the Texas Education Code, sec.52.54 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding the Hinson-Hazlewood College Student Loan Program (repayment of loans). sec.21.64. Repayment of Loans. (a)-(c) (No change.) (d) Deferments. (1) The commissioner will grant deferments of loan repayment in accordance with the federal law and federal rules as follows: SLS, [and CAL] deferments which are described in the Higher Education Act of 1965, Title IV, Part B, as amended, and the 34 Code of Federal Regulations, Parts 682 and 683; and (B) (No change.) HELP[, and CAL]) which accrues during authorized deferment periods will be charged to the borrower. Interest on GSLs which accrues during authorized deferment periods will be charged to the United States Department of Education unless the borrower has lost eligibility for federal interest subsidy benefits as described in federal law. SLS[, and CAL] loans shall extend the maximum repayment period. (4) (No change.) (e)-(i) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on June 2, 1992. TRD-9207585 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 Subchapter CC. Tuition Credit Program 19 TAC sec.sec.21.950-21.959 The Texas Higher Education Coordinating Board proposes new sec.sec.21.950-21. 959, concerning Tuition Credit Program. The rules are needed for implementation of a new student financial assistance program provided for in House Bill 1, 72nd Legislature, Rider Number 23, III-9. The rules will provide operating guidelines for the new program. Mack Adams, assistant commissioner for student services, has determined that there will be fiscal implications as a result of enforcing or administering the section. There will be minimal administrative costs for implementing the program. Eligible recipients for awards through the program will receive up to $1,000. Cost for each year of the next five years estimated at $100,000 per year. Mr. Adams also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that eligible students will receive up to $1, 000 of tuition credit for one year of college if graduating high school in three as opposed to four years. Correspondingly, the public school attended by the student will receive less funding due to the student's graduation. 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 Kenneth H. Ashworth, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711. The new sections are proposed under Article III, Page III-9, Rider 19, House Bill 1, 72nd Legislature, which provides the Texas Higher Education Coordinating Board with the authority to adopt rules regarding the Tuition Credit Program. sec.21.950. Purpose. The purpose of the Tuition Credit Program is to increase the efficiency of the Foundation School Program and provide tuition assistance to eligible students. sec.21.951. Delegation of Powers and Duties. The Texas Higher Education Coordinating Board in cooperation with the Texas Education Agency shall administer the Tuition Credit Program. sec.21.952. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Board-The Texas Higher Education Coordinating Board. Commissioner-The commissioner of higher education, the chief executive officer of the board. High school graduate-An individual who, after September 1, 1991, has completed the requisite number of units, the prescribed courses, the examinations and other requirements, and has received a high school diploma from a public high school in Texas. sec.21.953. Eligible Institutions. (a) The board shall approve for participation in the Tuition Credit Program any Texas public institution of higher education; or any nonprofit, independent Texas college or university which is a regular member of, or candidate for accreditation by, the Commission on Colleges of the Southern Association of Colleges and Schools. Nonprofit, independent professional schools which award bachelor's or other higher degrees, and which are not members of the Commission on Colleges of the Southern Association of Colleges and Schools, may petition the board for consideration of approval. In any case, a theological or religious seminary shall not be eligible for approval. (b) The chief executive officer of an eligible institution shall designate a program officer for the Tuition Credit Program. Unless otherwise specified by the chief executive officer of the institution, the director of financial aid at an eligible institution shall serve as the program officer for the Tuition Credit Program. The program officer shall be the board's on- campus agent to certify all institutional transactions, activities, and reports with respect to the Tuition Credit Program. (c) To be eligible, an independent institution must provide matching funds for the state funds awarded through the Tuition Credit Program. To be eligible to receive an award through the Tuition Credit Program, a person must: (1) graduate from a Texas public high school within thirty-six months of his/her original enrollment in any high school; (2) receive the award while enrolled in an eligible institution during the 12 months following graduation from high school; and (3) provide the program officer proof of eligibility, usually in the form of a high school diploma and an academic achievement record (transcript). sec.21.955. Source of Funding. Out of funds appropriated for Foundation School Program allocations, the commissioner of education shall transfer to the board an amount sufficient to fund tuition credits for students who meet the eligibility requirements of the program. The amount awarded a student through this program may not exceed the lesser of: the student's actual tuition charges, or $1,000 in the 12 months immediately following the student's graduation from high school. Students attending eligible independent institutions must receive an equal amount of institutional tuition assistance during the 12-month period. sec.21.957. Disbursement of Funds. Individuals applying for assistance through the Tuition Credit Program must provide proof of eligibility to the Tuition Credit Program at the institution to be attended. The institution may recommend the student for an award by submitting a board-approved application for payment to the board. The application is to certify the student's eligibility and indicate the amount of tuition charged the student for the relevant term. Applications submitted by independent institutions must be accompanied by a deposit of a like amount to be disbursed along with state funds as the student's matched award. As soon as possible after proper documentation and deposits (if required) are received, the board will request the issuance of a state warrant for a Tuition Credit Program award. (For students attending independent institutions, the warrant will include state and matching funds.) A separate application is required for each registration period for which payment of funds is requested. sec.21.958. Refunds. The institution attended by a tuition credit award recipient who withdraws from a class or drops classes during the first four weeks of class will be expected to make a refund to the Tuition Credit Program for tuition received for the dropped classes in accordance with the following schedule: (1) if class is dropped before classes begin, refund full amount; (2) if drop is within first five days of classes, refund 80%; (3) If drop is within second five days of classes, refund 70%; (4) If drop is within third five days of classes, refund 50%; (5) If drop is during fourth five days of classes, refund 25%; (6) If drop is after the forth five days of classes, no refund required. The Institutional Program officer is responsible for acquiring student signatures on affirmation forms, issued with each tuition credit disbursement. By signing the affirmation form, the student will affirm his/her eligibility for the award and indicate the way in which the funds were disbursed (either directly to the student or deposited in the student's account). The program officer is to forward the signed affirmation form to the Coordinating Board within 30 days after the funds are disbursed to the student. 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 June 2, 1992. TRD-9207584 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Proposed date of adoption: July 17, 1992 For further information, please call: (512) 483-6160 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part I. Texas Department of Public Safety Chapter 1. Organization and Administration Electronic Funds Transfers 37 TAC sec.1.241 The Texas Department of Public Safety proposes new sec.1.241 concerning electronic funds transfers of payments. In compliance with the Texas Government Code, sec.404.095(c), this section is promulgated to require electronic funds transfers for payments to the Texas Department of Public Safety which are in excess of $10,000. Electronic funds transfers for payments will increase the speed of depositing revenue from large remitters to the state, increase interest income for the state, and provide a safer and more efficient method for remitters to transmit what they owe to the state. Melvin C. Peeples, assistant chief of fiscal affairs, has determined that there will be no fiscal implications as a result of enforcing or administering the section. Mr. Peeples also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section as proposed will be a decrease in the amount of time required for banking activities with the Texas Department of Public Safety. 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 John C. West, Jr., Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2000. The new section is proposed under the Texas Government Code, sec.404.095(c) and sec.411.006(4), which provides the Texas Department of Public Safety with authority to adopt a rule to require funds transfers for payments to the department in excess of $10,000 or more due in a category of payments if the person paid the agency a total of $250,000 or more in that category of payments. The director has the authority to adopt rules, subject to commission approval, considered necessary for the control of the department. sec.1.241. Electronic Funds Transfer for Payments. If during the preceding year a person paid the department a total of $25,000 or more in a category of payments and the department reasonably anticipates that during the current state fiscal year the person will pay the department $250,000 or more in a category of payments, the person is required to transfer payment amounts of $10,000 or more due the department by one or more of the means of electronic funds transfer approved by the state treasurer. 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 27, 1992. TRD-9207476 James R. Wilson Director Texas Department of Public Safety Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 465-2000 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 48. Community Care for Aged and Disabled Eligibility 40 TAC sec.48.2911, sec.48.2918 The Texas Department of Human Services (DHS) proposes amendments to sec.48. 2911, concerning eligibility for family care, and sec.48.2918, concerning eligibility for primary home care, in its Community Care for Aged and Disabled chapter. The purpose of the amendments is to increase the maximum number of hours per week a client can receive family care and primary home care services. For a Priority 1 client, the maximum number of hours will increase from 30 to 39. For others, the maximum number of hours will increase from 30 to 50 hours. Burton F. Raiford, interim commissioner, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government for the first five-year period the sections are in effect is an estimated additional cost of $663,884 for fiscal year 1992; $2, 724,103 for fiscal year 1993; $2,866,657 for fiscal year 1994; $3,033,571 for fiscal year 1995; and $3,166,576 for fiscal year 1996. There will be no fiscal implications for local government as a result of enforcing or administering the sections. Mr. Raiford also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be to assist individuals who need additional hours of service to remain in the community. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Questions about the content of the proposal may be directed to Tom Gibbons at (512) 450-3217 in DHS's Long Term Care Department. Comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Policy and Document Support-143, Texas Department of Human Services E-503, P.O. Box 149030, Austin, Texas 78714- 9030, within 30 days of publication in the Texas Register. The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs. sec.48.2911. Family Care. (39 hours a week for a Priority 1 family care applicant/client). Effective September 1, 1992, the applicant/client is eligible for no more than 30 hours of family care services a week. (b)-(d) (No change.) sec.48.2918. Eligibility for Primary Home Care. (a)-(b) (No change.) (39 hours a week for a Priority 1 primary home care applicant or client). Effective September 1, 1992, an eligible applicant or client cannot receive more than 30 hours of primary home care per week. (d)-(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 June 3, 1992. TRD-9207586 Nancy Murphy Agency liaison, Policy and Document Support Texas Department of Human Services Proposed date of adoption: August 1, 1992 For further information, please call: (512) 450-3765 TITLE 43. TRANSPORTATION Part I. Texas Department of Transportation Chapter 25. Maintenance and Operations Division Specific Information Logo Sign Program 43 TAC sec.sec.25.400-25.408 The Texas Department of Transportation (TxDOT) proposes new sec.sec.25. 400- 25.408, concerning the Specific Information Logo Sign Program. Senate Bill 518, 72nd Legislature, 1991, amended Texas Civil Statutes, Article 4477-9a, by requiring the Texas Transportation Commission to contract with a person, firm, group, or association in the State of Texas to erect and maintain signs that give specific information of interest to the traveling public including specific brand names at appropriate locations along interstate highways in each county with a population of less than 20,000. Article 4477-9a further requires the commission to adopt rules necessary to administer and enforce this signing program, and to regulate the content, composition, placement, erection, and maintenance of specific information logo signs and supports within interstate highway right-of-way. In order to comply with the legislative intent these new sections are being proposed for permanent adoption. Section 25.400 outlines the purpose of the sign program. Section 25.401 prescribes the definitions used in this new undesignated head. Section 25.402 authorizes the department to award a contract to develop, operate, and maintain specific information logo signs and prescribes certain terms and conditions of the contract. Section 25.403 describes the procedures by which a contractor may become prequalified to bid on a contract. Section 25.404 describes the procedure for awarding the contract. Section 25.405 describes the specifications for specific information logo signs. Section 25.406 describes how a commercial establishment qualifies to have a sign placed. Section 25.407 describes how a commercial establishment applies for participation in the program; how a commercial establishment is selected to participate; the rights and responsibilities of a commercial establishment; and how a logo may be covered or removed. Section 25.408 describes how a contractor may appeal an adverse decision by the department, and how a commercial establishment may appeal an adverse decision by the contractor. Bob G. Hodge, P.E., director, division of maintenance and operations, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government for the first five- year period the sections are in effect will be an estimated increase in revenue of $51,788 for 1992; $88,039 for 1993; $124,395 for 1994; and $108,858 for each year of 1995 and 1996. There will be no effect on local government as a result of administering the sections. Mr. Hodge also has certified that there will be no significant impact on local economies or overall employment as a result of administering the proposed new sections. Mr. Hodge 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 providing advance notice to motorists of important services so that appropriate exits can be made from rural interstate highways. The cost of compliance of the new sections for small businesses will be that to participate in the program a business will be required to pay fees which will be collected by the contractor for each logo sign panel which include annual rental fees, installation fees, removal fees, covering, and replacement fees. The cost of compliance for small businesses compared with large businesses per $100 of sales will be the same. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Pursuant to the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a, sec.5, the Texas Department of Transportation will conduct a public hearing to receive comments concerning the proposed new sections. The public hearing will be held at 10 a.m. on Wednesday, July 1, 1992, in the first floor hearing room of the DeWitt C. Greer State Highway Building, 125 East 11th Street, Austin. Those desiring to make oral comments or presentations may register starting at 9:30 a.m. Any interested person may appear and offer comments, either orally or in writing, however, questioning of those making presentations will be reserved exclusively to the presiding officer as may be necessary to ensure a complete record. While any person with pertinent comments will be granted an opportunity to present them during the course of the hearing, the presiding officer reserves the right to restrict testimony in terms of time and repetitive content. Organizations, associations, or groups are encouraged to present their commonly held views, and same or similar comments, through a representative member where possible. Comments on the proposed text should include appropriate citations to sections, subsections, paragraphs, etc., for proper reference. Any suggestions or requests for alternative language or other revisions in the proposed text should be submitted in written form. Written comments on the proposal may be submitted to Bob G. Hodge, P.E., Director, Division of Maintenance and Operations, 125 East 11th Street, Austin, Texas 78701. All comments should be submitted no later than 5 p.m. on July 10, 1992. The new sections are proposed under Texas Civil Statutes, Articles 6666 and 4477-9a, which provide the Texas Transportation Commission with the authority to promulgate rules and regulations for the conduct of the work of the Texas Department of Transportation, and specifically for the adoption of rules necessary to administer and enforce the specific information logo sign program. sec.25.400. Purpose. Texas Civil Statutes, Article 4477-9a, require the commission to contract with a person, firm, group, or association in the State of Texas to erect and maintain signs that give specific information of interest to the traveling public including specific brand names, at appropriate locations along interstate highways in each county with a population of less than 20,000. It further requires the commission to adopt rules necessary to administer and enforce this signing program, and to regulate the content, composition, placement, erection, and maintenance of specific information logo signs and supports within interstate highway right of way. The sections under this undesignated head prescribe the policies and procedures for the implementation of a specific information logo sign program. sec.25.401. Definitions. The following words and terms, when used in this undesignated head, shall have the following meanings, unless the context clearly indicates otherwise. Business logo-A separate sign panel of specified dimensions attached to a specific information logo sign and containing the commercial establishment name, symbol, brand, trademark, or combination. Commercial establishment -A privately owned business or corporation offering one or more of the primary motorist services. Commission-The Texas Transportation Commission. Contractor-A person, firm, group, or association in the State of Texas that acts as the authorized agent of the department in the operation of the specific information logo sign program. Department-The Texas Department of Transportation. Interchange-The intersection of the centerlines of an interstate highway and a crossroad. Interstate highway -Any highway which is part of the national system of interstate and defense highways designed to be a multi-lane and divided full control access roadway. Primary motorist service-Gas, food, lodging, or camping available to the traveling public. Ramp business logo-A reduced size separate sign panel of specified dimensions attached to a ramp sign and containing the commercial establishment name, symbol, brand, trademark, or combination. Ramp sign-A sign with ramp business logos, directional arrows, and distances placed near an interstate exit ramp. Specific information logo sign-A rectangular sign panel imprinted with the words "GAS," "FOOD," "LODGING," or "CAMPING," or with a combination of those words, and the names (or business logos) of commercial establishments offering those services. State-The State of Texas. , latest edition, issued by the Texas Department of Transportation. sec.25.402. Specific Information Logo Sign Program. (a) Program. The department may award a contract to a person, firm, group, or association in the State of Texas, for an initial period not to exceed five years, to develop, operate, and maintain specific information logo signs at appropriate locations along interstate highways in each county with a population of less than 20,000, subject to the following terms and conditions. (b) Marketing. In marketing the specific information logo sign program, the contractor shall: (1) develop an inventory of potential eligible commercial establishments; (2) send letters explaining the program to potential eligible commercial establishments; and (3) advertise the program in local papers and post notices at appropriate locations at the county seats. (c) Market study and construction plans. Prior to construction of a specific information logo sign at an approved location, the contractor must submit to the department a market study and construction plans. Upon approval of these plans the department will issue a work order to the contractor. (d) As-built plans. The contractor shall submit as-built plans to the department upon completion of the installation of specific information business logo signs. (e) Sign erection in first year. In the first year of the contract between the department and contractor, the contractor shall erect specific information logo signs and business logos at a minimum of 40% of the interchanges where agreements have been completed between the commercial establishments and the contractor. Specific information logo signs and business logos shall be erected within two years of the execution date of an agreement between the commercial establishments and the contractor pursuant to sec.25.407 of this title (relating to Program Operation). (f) Annual report. The contractor shall furnish an annual report to the department. The annual report will include the contractor's financial statement as provided in sec.25.403 of this title (relating to Prequalification) , summary of eligible interchanges, business logos erected, and number of commercial establishment agreements completed. Other reports may also be required throughout the year as determined by the department. (g) Installation by contractor. Installation of specific information and business logo signs may only be performed by the contractor, a subcontractor approved by the department, or, in emergency situations, by the department. In the event that the department undertakes installation or other duties of the contractor, the contractor shall immediately remit to the department the specified fee or cost of such work. (h) Department review. Prior to installation, the design and location of business logo signs must be submitted to the department for review. The department shall inspect installation and monitor maintenance. (i) Additional signing. If the department determines that additional regulatory, warning, or guide signing is needed at an interchange, existing or planned specific information logo signs shall be removed or relocated by the contractor as directed by the department and at the sole expense of the contractor. (j) Sign maintenance. The specific information logo signs shall be maintained by the contractor in a manner and condition that is a distinct benefit to the safety of the public, benefit to the commercial establishments, and to the satisfaction of the department. (k) Fees. (1) The contractor shall assess the following non-refundable fees and shall remit to the department an amount equal to 5.0% of all such fees no later than the first Monday following receipt by the contractor: (A) installation fee. A one-time fee in the amount specified in the contractor's bid proposal under sec.25.404 of this title (relating to Contract Award Procedures) for the installation of the commercial establishment's business logo and, if necessary, ramp business logo; (B) annual rental fee. An annual fee for each business logo and for each ramp business logo (for ramp signs) in the respective amounts specified in the contractor's bid proposal under sec.25.404 of this title; (C) covering fee. A $100 fee for covering and uncovering a business logo and ramp business logo pursuant to sec.25.407 of this title (relating to Program Operation); (D) replacement fee. A $100 fee for each business logo and ramp business logo replaced at the request of the commercial establishment. (2) The contractor shall reduce the annual rental fee a prorated amount for each calendar day when: (A) the business or ramp business logo(s) has not been erected; or (B) a previously erected business or ramp business logo is obscured from view of the motorists for a period of time exceeding 10 calendar days. (3) A contractor may not reduce the annual fee for the period a business logo or ramp business logo is covered at the request of the commercial establishment. (l) Bonding. The contractor shall satisfy all requirements of Texas Civil Statutes, Article 5160, relating to bonds. (m) Permits, licenses, and taxes. The contractor shall procure all permits and licenses; pay all charges, fees, and taxes; and give all notices necessary and incidental to the due and lawful prosecution of the work. When requested, the contractor shall furnish the department with evidence of compliance with the permit, license, and tax requirements. (n) Records. The contractor shall, consistent with generally accepted accounting principles, maintain all books, documents, paper, advertising contracts, accounting records, and other evidence pertaining to the contract with the department and shall, upon request of the department, make available such documents, records, and information for examination by the department, its designee, or the state auditor. (o) Termination. The department or the contractor may terminate the contract upon default of the other party. (1) If the contractor terminates the contract or defaults prior to the conclusion date of any five-year term, ownership of the contract rights and any rights in the business logo signs constructed at the various interchanges and intersections shall immediately pass to and vest in the department on the effective date of termination, and the contractor shall not be entitled to any compensation. (2) If the department terminates the contract for reasons other than default of the contractor, the contractor will be paid for a percentage of the fair market value for each of the specific information logo signs erected. The percentages are as follows within year of agreement: 0-1 year-75%; one-two years-50%; two-three years-25%; three years or greater -0%. (p) Sale, transfer, and assignment of contract. The contractor shall not sell, transfer, assign, or otherwise dispose of the contract or any portion thereof, or of its right, title, or interest therein, without the prior written consent of the department. sec.25.403. Prequalification. (a) Eligibility. To be eligible to submit a bid on a contract for the specific information logo sign program, a contractor must prequalify by submitting an introductory letter and a statement of interest. A committee of department employees appointed by the director of the division of maintenance and operations will evaluate and score each statement of interest. To prequalify, a contractor must receive a final score of not less than 70 points on the statement of interest. (b) Introductory letter. The introductory letter shall be addressed to Director of Maintenance and Operations, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483, and shall contain: (1) an expression of the contractor's interest in the project; (2) a summary of the contractor's qualifications to do the work; and (3) any other summary information concerning the project team or the contractor that may be useful or informative to the department, contractors, or subcontractors. (c) Statement of interest. The statement of interest shall contain the following components in the order listed. (1) Staffing. (A) The contractor shall specify the identity of key individuals, including subcontractors, who are proposed to be part of the contractor's project team together with their respective qualifications and experience on similar or related projects, the expected amount of involvement, and the time commitment for each individual and subcontractor. (B) Evaluation will be on the basis of the qualifications, experience, and time allocation of the members of the project team as they relate to the specific project, with a maximum of 20 points. (2) Capability. (A) The contractor's capability for actually undertaking and performing the work shall be described, to include the types and locations of similar work performed in the last three years that best characterizes the quality and cost control of the contractor as well as the names, addresses, and phone numbers of knowledgeable individuals who can be contacted. This component shall also include a discussion of the contractor's internal policies and procedures that are related to work quality, cost control, and resources, including management and organization capabilities currently available for performing the work for the project. (B) Evaluation will be on the basis of the contractor's capability to perform the work, including internal quality and cost control procedures, with a maximum of 15 points. (3) Understanding of the project. (A) The contractor's understanding of the project, based on information available from the department, site visits by the contractor, and applicable regulations or requirements known and as understood by the contractor, shall be discussed. (B) Evaluation will be on the basis of the contractor's demonstrated knowledge of the required work as contained in a clear and concise explanation, with a maximum of 15 points. (4) Approach to the project. (A) The approach or course of action by which the contractor proposes to meet the goals and objectives of the project shall be described. The approach must be realistic, clear and concise, and shall identify potential impacts, impediments, or conflicts. (B) Evaluation will be on the basis of how well the contractor has planned a preliminary or basic course of action, what alternative and/or innovative approaches are proposed, and what provisions are identified for dealing with potential impacts, impediments, or conflicts, with a maximum of 15 points. (5) Schedule control. (A) Internal methods that will be used by the contractor for schedule control must be fully described. Current references must be listed that confirm the contractor's ability for the timely completion of project work. The intent of this section is to make sure that the project is expedited. (B) Evaluation will be on the basis of the internal measure used by the contractor to ensure timely completion along with his or her demonstrated reputation for project completion, with a maximum of 10 points. (6) Location of the work. (A) The location or locations where the work will be accomplished by the contractor and any subcontractor, the identities of those who will be involved at each work location for the major work elements on the project, the location of the business offices, and the location where the signs will be fabricated shall be identified. (B) Evaluation will be on the basis of the contractor's ability to erect, maintain, and replace signs in a timely and effective manner, with a maximum of 15 points. (7) Certified financial statement. (A) The contractor must furnish a certified financial statement for the fiscal year immediately preceding the date of the introductory letter. (B) Evaluation will be on the basis of the contractor's financial ability to implement and operate the program, with a maximum of 10 points. (8) Supporting information. (A) The contractor may provide supporting information, such as graphs, charts, photos, resumes, and references. (B) This component will not be evaluated or scored as part of the statement of interest. (d) Page limits. The entire statement of interest including the eight sections listed in subsection (c) of this section should not exceed 18 pages. A page is defined as an 8.5 by 11 inch or 11 by 17 inch sheet containing text, pictures, graphs, charts, plan sheets, or any other graphics. Not more than three 11 by 17 inch sheets, may be used in conjunction with pictures, graphs, charts, plans, and other graphics. If 11 by 17 inch sheets contain text only, they will be counted as two pages. sec.25.404. Contract Award Procedures. (a) Notice. The department will publish a notice of intent to award a specific information logo sign program contract in industry related publications at least 45 calendar days prior to contractor selection. The notice shall include prequalification requirements for potential contractors. (b) Bidding requirements. (1) To be considered for award of a contract under this section, a contractor must file with the director of maintenance and operations a sealed bid proposal in a form prescribed by the department. Submission of the bid proposal must comply with the location, date, and time requirements of the notice. The bids shall be opened at a public hearing conducted by the director of maintenance and operations. All bidders may attend and all bids shall be opened in their presence. (2) The bid amount will be the total of the installation fee plus five times the sum of the annual rental fees for one business logo sign space and one ramp business logo sign per direction of travel. Expressed as a formula: [graphic] (3) The department will not consider a bid which: (A) fails to comply with any requirement of the notice; (B) specifies an installation fee that is less than 5.0% or greater than 25% of the annual rental fee; or (C) specifies that the ramp business logo annual rental fee is less than 5.0% or greater than 15% of the business logo annual rental fee. (c) Award of contract. (1) All bid proposals received by the director of maintenance and operations shall be tabulated and forwarded to the commission. The commission may accept or reject all bids, and if accepted, award the contract to the lowest bidder. (2) The department will notify the contractor by certified mail of the award of a specific information business logo sign program contract within 10 calendar days of the date of the award. To accept the award, the contractor must execute a contract with the department within 30 calendar days of the date of the award. (3) The contract shall be in a form prescribed by the department and shall, at a minimum, include all terms and conditions prescribed by this undesignated head and such other terms and conditions the department deems advantageous to the state. sec.25.405. Specifications. (a) Specific information logo signs. (1) Design. A specific information logo sign shall: (A) have a blue background with a white reflective border; (B) contain a principal legend equal in height to the directional legend; (C) meet the applicable provisions of the Texas MUTCD; (D) have background material which conforms with department specifications for reflective sheeting; (E) be fabricated, erected, and maintained in conformance with department specifications and fabrication details; (F) provide not less than eight inches vertical spacing and not less than 12 inches horizontal spacing between business logos. (2) Content. A specific information logo sign shall contain: (A) word legends for the following services: GAS, FOOD, LODGING, or CAMPING; (B) the exit number; (C) no more than four business logos on one sign panel; and (D) no more than one type of service on a sign panel, or, in an area having fewer than three qualified commercial establishments available for that service, no more than two types of services on that sign panel. (3) Placement. Subject to approval of the department, a specific information logo sign shall be installed or placed: (A) to conform to the following order of placement along the direction of travel: CAMPING, LODGING, FOOD, GAS; (B) according to the following priorities where available space is limited: GAS, FOOD, LODGING, and CAMPING; (C) to take advantage of natural terrain; (D) to have the least impact on the scenic environment; (E) to avoid visual conflict with other signs within the highway right-of-way; (F) with a lateral offset equal to or greater than existing guide signs; (G) at least 800 feet from the previous interchange and at least 800 feet from the exit direction sign at the interchange from which the services are available; (H) only in areas where a 30-foot offset from the edge of the pavement can be achieved; (I) without blocking motorists' visibility of existing traffic control and guide signs; (J) in locations that are not overhead; (K) where a motorist, after following the sign(s), can conveniently re-enter the highway and continue in the original direction of travel; and (L) at least 800 feet, but not excessively spaced, from another sign having the same legend. (4) Existing regulatory, warning, destination, guide, recreation, and cultural interest signs will not be removed or relocated to accommodate a specific information logo sign. (b) Business logos. (1) Design. A business logo: (A) may not exceed 48 inches in width or 36 inches in height; (B) may be any color or combination of colors; and (C) may only be fabricated, erected, and maintained in conformance with current department specifications for aluminum signs and reflective sheeting. (2) Content. A business logo may: (A) consist of a registered trademark or a legend message identifying the name or abbreviation of the commercial establishment; (B) contain supplemental information, limited to the word "DIESEL" on a gas logo or the words "24 HOURS" on a gas or a food logo, the words "DIESEL" and "24 HOURS" not to exceed six inches in height; (C) contain a message, symbol, or trademark only if the message, symbol, or trademark does not resemble an official traffic control device; and (D) contain text, symbols, or advertising only if the text, symbols, or advertising are related to the primary service of the specific information logo sign. (c) Ramp signs. (1) Design. A ramp sign shall: (A) meet the applicable provisions of the Texas MUTCD; (B) have a blue background with a white reflective border; (C) conform with the latest department specifications for reflective sheeting for the background material of the sign; and (D) be fabricated, erected, and maintained in conformance with the current department specifications for aluminum signs and roadside signs. (2) Placement. Subject to approval of the department, a ramp sign may be placed along an exit ramp or access road, or at an intersection of an access road and crossroad when a commercial establishment's building or on-premise signing is not visible from that exit ramp, access road, or intersection. (3) Content. A ramp business logo shall: (A) be no larger than 24 inches in width and 18 inches in height; (B) contain directional arrows and distances; and (C) be a duplicate of the business logo erected on a specific information logo sign. sec.25.406. Commercial Establishment Eligibility. (a) General requirements for eligibility. To be eligible to have a business logo placed on a specific information logo sign, a commercial establishment must: (1) offer at least one primary motorist service; (2) be located directly adjacent to the interstate highway on which the specific information logo sign is located or on an intersecting crossroad; (3) be located within three miles from an interchange on an interstate highway, or, if no other eligible service of the same kind is located within that distance, be located within 15 miles of the interchange and be issued a permit by the department; (4) comply with all applicable laws concerning the provisions of public accommodations without regard to race, religion, color, sex, or national origin; and (5) post its hours of operation on or near the main entrance so that they are visible to the public during open and closed hours. (b) Specific services eligibility. In addition to the general requirements for eligibility to have a business logo placed on a specific information logo sign, a commercial establishment must meet the requirements for at least one of the following primary motorist services. (1) Gas. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "GAS," a commercial establishment must provide: (A) vehicle services, including fuel, oil, and water; (B) tire repair, if the establishment is not a self-service station; (C) restroom facilities and drinking water; (D) continuous operation for at least 12 hours per day, seven days a week; and (E) a telephone accessible to the public 24 hours a day. (2) Food. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "FOOD," a commercial establishment must provide: (A) a license or other evidence of compliance with public health or sanitation laws, if required by applicable other law; (B) continuous operation at least 12 hours a day to serve three meals a day; (C) seating capacity for at least 16 people; (D) public rest rooms; and (E) a telephone accessible to the public 24 hours a day. (3) Lodging. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "LODGING," a commercial establishment must provide: (A) a license or other evidence of compliance with laws regulating facilities providing lodging, if required by applicable other law; (B) at least 10 rooms; and (C) a telephone accessible to the public 24 hours a day. (4) Camping. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "CAMPING," a commercial establishment must provide: (A) a license or other evidence of compliance with laws regulating camping facilities, if required by applicable other law; (B) adequate parking accommodations; and (C) modern sanitary facilities and drinking water. (c) Multiple services eligibility. If a commercial establishment offers more than one primary motorist service, it will be eligible to display a business logo for each of those services on the appropriate specific information logo sign, provided that: (1) minimum criteria for the service as described in sec.25.405 of this title (relating to Specifications) are met; (2) the additional business logo(s) would not prevent participation by another eligible commercial establishment whose sole service would be displaced; and (3) a business logo space is available. sec.25.407. Program Operation. (a) Commercial establishment application. (1) Applications for commercial establishments desiring to participate in the specific information logo sign program are available upon request from the Texas Department of Transportation, Maintenance and Operations Division, 125 East 11th Street, Austin, Texas 78701-2483. (2) A commercial establishment desiring to participate in the specific information logo sign program must submit an application to the contractor and verify that all requirements are met. Applications must be submitted to the location as stated on the application form. The contractor will verify the eligibility of each applicant. (3) A separate application is required for each primary motorist service per interchange per direction of travel. Only one application per commercial establishment per primary motorist service per direction of travel per interchange will be accepted. (4) Applications will be reviewed by the contractor and applicants notified in writing of being qualified or rejected. Rejected applications will be returned and deficiencies noted. (5) Rejected applicants may resubmit their application when the noted deficiencies have been corrected. (6) To be eligible for the selection process for the available business logo space(s), available first alternate position, or available second alternate position, a commercial establishment must have submitted a qualified application before the commercial establishment application deadline. (7) The commercial establishment application deadline for the annual random drawing in the following calendar year is 5 p.m. of the second Tuesday in August, received at the location as stated on the application. The commercial establishment application deadline for an emergency random drawing is 14 calendar days after the business logo space(s), the first alternate position, or the second alternate position becomes available. If no qualified applications are on file or received, the contractor may postpone the commercial establishment application deadline until 14 calendar days after a qualified application is received. (8) Qualified applications received after the commercial establishment application deadline will be placed on file and considered eligible for future annual and emergency random drawings. (b) Commercial establishment selection. (1) Available business logo space(s) and relative placement of business logos on the specific information logo sign, available first alternate position, and available second alternate position for each primary motorist service for each direction of travel at an interchange will be awarded by the annual or emergency random drawing of the qualified applications received before the commercial establishment application deadline. (2) The annual random drawing will be held publicly by the contractor on the second Tuesday of September in the presence of two or more department employees. Emergency random drawings will be held publicly as needed in the presence of two or more department employees. Emergency random drawings of qualified applicants will be held no earlier than 20 days nor later than 45 days after the commercial establishment application deadline. Emergency random drawings will not be held within 45 days prior to the annual random drawings. (3) When a business logo space(s) becomes available, the first and second alternates have first right of refusal, respectively, for the available business logo space. If the first alternate accepts an available business logo space, the second alternate then becomes the first alternate with first right of refusal for any existing or future available business logo space. Any remaining available business logo space(s), available first alternate position, or available second alternate position are awarded by the annual or emergency random drawings. (4) If the number of qualified applicants is less than or equal to the number of available business logo space(s) at the time of the commercial application deadline, the available space(s) will be awarded to the qualified applicants. The random drawing will determine only the relative placement of the business logo signs in the available space(s). (5) The contractor shall notify the commercial establishment by certified mail of the award of specific information business logo sign space within 10 calendar days of the date of the award. To accept the award, the commercial establishment must execute a written agreement with the contractor within 30 calendar days of the date of the award. The agreement shall be in a form as prescribed by the department and shall, at a minimum, contain all applicable provisions prescribed by this undesignated head. (c) Responsibilities and rights of commercial establishment. (1) The commercial establishment must provide a business logo and, if necessary, ramp business logo(s) within 60 days of notification by the contractor of the contractor's intent to erect the specific information logo signs or ramp signs. (2) A commercial establishment may renew its agreement with the contractor on an annual basis no later than July 31 of the last year of the contract. If the commercial establishment does not renew its agreement with the contractor, the contractor will remove the business logo at the end of the participation agreement, and will make the vacated space(s) available to other commercial establishments pursuant to subsection (b) of this section. (d) Covering of business logo. A business logo and the ramp business logo(s) of a commercial establishment may be covered by the contractor if the commercial establishment is temporarily closed for a period not exceeding 30 calendar days. Unless removed pursuant to subsection (e) of this section, the business logo and ramp business logo(s) will remain covered until the commercial establishment reopens. (e) Removal of business logo. (1) A business logo of a participating commercial establishment shall be removed by the contractor if the commercial establishment: (A) ceases to exist; (B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified on the agreement; (C) is temporarily closed for more than 30 calendar days; (D) does not meet the minimum requirements as stated herein, and all corrections are not made within 30 calendar days of written notification; (E) is sold, and the new commercial establishment does not continue the original primary motorist service or does not meet the minimum requirements for the primary motorist service; or (F) has not provided a replacement business logo sign within 60 calendar days of written notification that the business logo is missing, damaged, broken, or faded. (2) Removal of a business logo by the contractor will include the removal of the commercial establishment's ramp business logo sign(s). (3) When the business logo is removed, the annual participation agreement is terminated between the commercial establishment and the contractor. All funds paid to the contractor by the commercial establishment are forfeited. Upon removal of a business logo, the vacated space becomes available pursuant to subsection (b) of this section. A replacement commercial business is selected, as stated in the commercial establishment selection process. sec.25.408. Appeal. (a) Contractor. A contractor may appeal any adverse decision by the department under sec.25.403 of this title (relating to Prequalification) by filing a petition for an administrative hearing pursuant to sec.sec.1.21-1.26 of this title (relating to Contested Case Procedure). Any dispute as to the terms of the contract will be governed by sec.1.68 of this title (relating to Contract Claim Procedure). (b) Commercial establishment. A commercial establishment may appeal any adverse decision by the contractor by filing a petition for an administrative hearing pursuant to sec.sec.1.21-1.26 of this title. 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 June 2, 1992. TRD-9207552 Diane L. Northam Legal Administrative Assistant Texas Department of Transportation Earliest possible date of adoption: July 10, 1992 For further information, please call: (512) 463-8630