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 1. ADMINISTRATION Part II. Texas Ethics Commission Chapter 8. Legislative Per Diem 1 TAC sec.8.1 The Texas Ethics Commission adopts new sec.8.1, previously proposed as sec.15.1. This section is adopted with changes to the proposed text as published in the January 17, 1992, issue of the Texas Register (17 TexReg 370). The change was not substantive; however, the section number has been renumbered. This section set forth the legislative per diem for members of the legislature and the lieutenant governor for each legislative day. The change in the section number is due to an inadvertent filing of other sections under section numbers previously assigned to the Governor's Office. This section provides the rate of per diem receivable by legislators and the lieutenant governor. No comments were received regarding adoption of the new section. The new section is adopted in compliance with the Texas Constitution, Article III, sec.24, and Article III, sec.17, which provides the Texas Ethics Commission with the authority to set the per diem for members of the legislature and the lieutenant governor. sec.8.1. Legislative Per Diem. Under the Texas Constitution, Article III, sec.24a, the Texas Ethics Commission sets the per diem of members of the legislature and the lieutenant governor under the Texas Constitution Article III, sec.24, and Article IV, sec.17, at the amount allowed as of January 1 of this calendar year of federal income tax purposes as a deduction for living expenses incurred in a legislative day by a state legislator in connection with the legislator's business as a legislator, disregarding any exception in federal law for legislators residing near the Capitol. 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 June 4, 1992. TRD-9208083 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: July 2, 1992 Proposal publication date: January 17, 1992 For further information, please call: (512) 463-5800 Chapter 20. Campaign Financing Subchapter A. Contribution and Expenditure Reports Penalty for Late Filing 1 TAC sec.20.1 The Texas Ethics Commission adopts new sec.20.1, previously proposed as sec.5.1. This section is adopted with changes to the proposed text as published in the January 17, 1992, issue of the Texas Register (17 TexReg 369). No substantive changes were made. The section number has been renumbered. This section sets forth the civil penalty for failure to timely file a sworn report of contributions and expenditures by a candidate/officeholder as required by the Election Code, Title 15. The section was renumbered to correct an inadvertent filing of the section under a section number previously assigned to the Governor's Office. This section will provided notice to the public of the civil penalty, $100, which will be imposed by the commission for the late filing of a contribution and expenditure report. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes Article, 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt rules concerning the administration of the Election Code, sec.254.042(b). sec.20.1. Penalty for Late Filing of Contribution and Expenditure Reports. The civil penalty for failure to timely file a contribution and expenditure report is $100. 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 June 4, 1992. TRD-9208082 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: July 2, 1992 Proposal publication date: January 17, 1992 For further information, please call: (512) 463-5800 Chapter 30. Personal Financial Disclosure Subchapter A. Disclosure Statements Penalty for Late Filing 1 TAC sec.30.1 The Texas Ethics Commission adopts new sec.30.1, previously proposed as sec.7.1. This section is adopted with changes to the proposed text as published in the January 17, 1992, issue of the Texas Register (17 TexReg 369). The heading was changed from "sec.7.1. Penalty for Late Filing of Contribution and Expenditure Reports"to "sec.30.1. Penalty for Late Filing of Personal Financial Statement." The section umber has been renumbered. This section set forth the civil penalty for failure to timely file a personal financial statement with the Texas Ethics Commission for those state officers and employees required to file by Texas Civil Statutes, Article 6252-9b. The change in the section number is due to an inadvertent filing of other sections affecting this section under section numbers previously assigned to the Governor's Office. The change in the heading was made to conform with the following text and as scrivener's correction. This section will provide notice to the public of the civil penalty, $100, which will be imposed by the commission for the late filing of a personal financial statement. No comments were received regarding adoption of the new section. The new sections are adopted under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt rules concerning the administration of the Article 6252-9b. sec.30.1. Penalty for Late Filing of Personal Financial Statement. The civil penalty for failure to timely file a personal financial statement is $100. 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 June 4, 1992. TRD-9208081 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: July 2, 1992 Proposal publication date: January 17, 1992 For further information, please call: (512) 463-5800 Chapter 40. Registration and Regulation of Lobbyists 1 TAC sec.sec.40.1, 40.3, 40.5, 40.7, 40.9, 40.11, 40.13, 40.15, 40.17, 40.19, 40.21, 40.23, 40.25, 40.27, 40.29, 40.31, 40.33 The Texas Ethics Commission adopts new sec.sec.40.1, 40.3, 40.5, 40.7, 40.9, 40.11, 40.13, 40.15, 40.17, 40.19, 40.21, 40.23, 40.25, 40.27, 40.29, 40.31, and 40.33 previously proposed as sections 10.1, 10.3, 10.5, 10.7, 10.9, 10.11, 10.13, 10.15, 10.17, 10.19, 10.21, 10.23, 10.25, 10.27, 10.29, 10.31, and 10. 33, respectively. These sections are adopted with changes to the proposed text as published in the January 17, 1992, issue of the Texas Register (17 TexReg 369). The changes were not substantive; however, the section numbers have been renumbered. These sections set forth the guidelines, requirements, exceptions, penalties, and registration fees concerning lobbyists who are required to file disclosure reports as mandated by the Texas Government Code, Chapter 305. The change in section numbers is due to an inadvertent filing of other sections under section numbers previously assigned to the Governor's Office. These sections will provide the public and the commission with guidelines and a framework within which those persons required to register with the commission will operate, particularly in helping to define who must register and who does not. Comments were received. The comments supported the rules as a whole, but suggested certain changes. The suggested changes were as follows: raise the compensation threshold amount from $200 to $2,000 in sec.40.1 and sec.40.3(a)(2); delete the preparation time from the compensation threshold for oral communication in sec.40.3(b); remove preparation time from the compensation threshold altogether in sec.40.3(b); add statutory cite "the Government Code, sec.305.003(b)" to the cite in sec.40.3(c); raise the 5.0% threshold to 10% in sec.40.3(d); add other parties representing any party to the exclusion under sec.40.5(a); add more examples to sec.40.5(c) and sec.40.7(a)(1); exclude additional types of communication that is part of the public record by amending sec.40.7(a)(4); redefine "special or extra compensation" as it applies to sec.40.7(a)(4); broaden the definition of the term "laws" as stated in sec.40. 7(a)(10); include as an exception under a new section number the activities of engineers registered with the Texas State Board of Registration for Professional Engineers; delete sec.40.9(b); exclude strategy sessions, analyzing actions, research, or advising clients when computing the compensation threshold pursuant to sec.40.11(a); allow a registrant to list prospective income when filing under the modified reporting method sec.40.11(a). Comments were received from the Travis County Bar Association, Administrative Law Texas Ethics Commission Section; Air & Waste Management Association; Exxon Company, U.S.A.; Pilko & Associates, Inc; Waid & Associates; and the Texas Agricultural Cooperative Council. All comments supported the rules, but suggested changes as indicated previously. The agency has taken the changes into account and is proposing amended sec.40.5 and sec.40.7 to embody most of the changes. The commission feels that the $200 compensation threshold and the 5.0% "incidental contact" rules adequately and more accurately reflect the zones when certain activities become lobby activities. Preparatory time for written or oral direct communications to influence legislation or administrative action is not separable from the communication itself and cannot be excluded from the computation of threshold compensation. Additional examples will be added to the new proposed sections. The commission cannot exclude certain named classes of people from the mandates of the statutes due to equal protection problems. The new sections are adopted under Texas Civil Statutes, Article 6252-9d.1, which provide the Texas Ethics Commission with the authority to promulgate and adopt rules concerning the administration of the Texas Government Code, Chapter 305. sec.40.1. Application of the Expenditure Threshold. A person who is not an officer or employee of a political subdivision or of a governmental entity created under the Texas Constitution or laws of this state must register with the commission as a lobbyist if the person makes total expenditures of more than $200 in a calendar quarter on the activities described by the Government Code, sec.305.006(b), excluding expenditures on the person's own travel, food, lodging, or membership dues expenses. sec.40.3. Application of the Compensation Threshold. (a) A person who does not make the requisite type and amount of expenditures must nevertheless register as a lobbyist if the person: (1) is not a member of the state judicial, legislative, or executive branch or an officer or employee of a political subdivision of the state; and (2) communicates directly with a member of the Texas legislative or executive branch to influence legislation or administrative action and receives compensation or reimbursement of more than $200 in a calendar quarter, but not including the person's own travel, food, or lodging expenses or the person's own membership dues, to make such direct communication. (b) To trigger the application of the registration threshold of the Government Code, sec.305.003(a)(2), a person must have communicated directly with a member of the legislative or executive branch to influence legislation or executive action. However, to determine the amount of compensation received for purposes of the Government Code, sec.305.003(a)(2), the amount of compensation received for the direct communication includes additionally any amounts received to prepare for the communication. (c) For purposes of the Government Code, sec.305.003(a)(2), and these rules, a person is not required to register if direct communication to influence legislation or administrative action constitutes only an incidental portion of the activities and duties for which the person receives compensation. (d) Direct communication constitutes an incidental portion of one's activities and duties if no more than 5.0% of one's compensated time during a calendar quarter constitutes time spent in direct communication and in preparing for such communication. (e) In determining the amount of compensation or reimbursement received for purposes of the registration threshold of the Government Code, sec.305. 003(a)(2), and this section, a person who receives compensation or reimbursement, both for direct communication with a member of the Texas legislative or executive branch to influence legislation or executive action, and for other activities, may allocate on a reasonable basis his or her compensation and reimbursement to determine the amount subject to Chapter 305. sec.40.5. Exclusions from Administrative Action Lobbying. (a) For purposes of the compensation threshold of the Government Code, sec.305. 003(a)(2), direct communication to influence administrative action does not include testimony or appearance in a public hearing or other communication made by the party, or a party's representative of record, in a proceeding of an adjudicative nature of the type authorized by or subject to the Administrative Procedure and Texas Register Act (Texas Civil Statutes, Article 6252-13a) (APTRA). Examples of these exclusions include appearances and communications by a representative of record in a contested case where the appearance is documented as part of the public record for that particular contested case, whether or not the proceeding is subject to APTRA. (b) A person required to register by the Insurance Code, Article 1.06D, must register notwithstanding this section. (c) For purposes of the Government Code, Chapter 305, administrative action does not include actions which only affect the internal operations of the agency itself, such as the purchasing decisions of the state agency. sec.40.7. Activities that Do Not Require Registration. (a) For the purpose of the Government Code, sec.305.003(a)(2), the following direct communications do not constitute activities to influence legislation or administrative action and are not required to be reported on registration forms or activity reports: (1) the mere preparation and submission of an application or other written document providing information required by law, including statute, rule, regulation, order, or subpoena; (2) direct communication solely for the purpose of obtaining information if no attempt is made to influence the action of a member of the legislative or executive branch-examples include an inquiry as to when a particular matter has been set for hearing or the location of the hearing or as to what is an agency's official interpretation of a statutory provision; (3) providing merely clerical assistance in producing direct communication to influence legislation or administrative action, such as typing or hand- delivering a letter or other document; (4) appearing, submitting public written comments, or testifying at a hearing before a member of the legislative or executive branch in conjunction with official proceedings or rulemaking procedures if the person does not receive special or extra compensation for the preparation, appearance, submission, or testimony other than actual expenses incurred for the preparation, appearance, submission, or testimony; (5) direct communication to the legal representative of a state agency whether concerning litigation in which the agency is a party or concerning adjudicative proceedings of the agency; (6) direct communication to the appointing authority made by a person in his or her capacity as a member of an advisory committee or task force appointed by a member or an entity of the legislative or executive branch; (7) the activities listed in the Government Code, sec.305.004 and sec.305. 003(c), whether or not such activities constitute the sole activities of the person to influence legislation or administrative action; (8) direct communication for the purpose of compliance with existing laws, administrative rules, policies, and procedures, when there is no attempt to change or seek exceptions to such rules, policies, or procedures; (9) direct communication in connection with an audit, inspection, or government investigation to determine compliance with existing laws, regulations, and policies; (10) direct communication involving a request to a person who is a member of the executive branch for a written opinion interpreting the law administered by the agency or office of which that person is a member; and (11) direct communication to provide information in response to a specific request for the information from a member of the legislative or executive branch that are unsolicited or otherwise not a subterfuge from compliance with the requirements of these laws. (b) A person whose only activities to influence legislation or administrative action is one or more of the activities excepted from the lobbyist registration requirement by the Government Code, sec.305.004 and sec.305.003(c), or by rules of this commission is not required to register with the commission as a lobbyist. sec.40.9. Persons Who Assist the Registrant. (a) For purposes of the Government Code, sec.305.005(f)(5), persons employed or retained by the registrant to assist in direct communication with a member of the legislative or executive branch include other registrants and persons who provide administrative or research assistance to the registrant, but not persons whose assistance is clerical in nature. (b) A person employed by the same employer as the registrant and who assists the registrant in lobby activities at the direction of the registrant is employed or retained by the registrant for purposes of the Government Code, sec.305.005(f)(5). A client of a business entity is not an employer for the purposes of this subsection. sec.40.11. Identifying the Amount of Compensation. (a) The amount of compensation or reimbursement that must be reported on the registration or registration renewal is the amount received by the registrant for lobby activities during the calendar year for which the registration or registration renewal is effective. If a registrant terminates a registration during the calendar year or allows a registration to expire without filing a registration renewal, the registrant must file a termination notice. The termination notice must report the amount of compensation or reimbursement received by the registrant during the calendar year for which the terminated or expired registration was effective. The term "lobby activities" means direct communication with one or more members of the Texas legislative or executive branch to influence legislation or administrative action, and activities in preparing for such direct communication. Examples of such activities include holding strategy sessions, reviewing and analyzing legislative or executive actions, conducting research, and advising the client on these matters. (b) A registrant who receives compensation or reimbursement from a person for more than the purposes described in subsection (a) of this section may reasonably determine the amount of this compensation attributable to these purposes and report only that amount. (c) Except as provided in subsection (e) of this section, if the amount of compensation or reimbursement that must be reported on the registration or registration renewal changes, the registrant must file an amended registration schedule to reflect the change, in accordance with the Government Code, sec.305.005(k), not later than the deadline for filing the next monthly activity report under the Government Code, sec.305.007. (d) The members of an organization or association (whether or not it is incorporated) are not clients of the organization or association under the Government Code, sec.305.005(j). The shareholders of a for-profit corporation are not clients of the corporation under the Government Code, sec.305.005(j). (e) The registrant is not required to report changes in the amount of reimbursement received for office expenses and lobby expenditures if those expenditures or reimbursements have been reported on a previous activity report or are reported on the next activity report the registrant is required to file. sec.40.13. Disclosing the Lobbyist Employer. (a) An individual registrant who is reimbursed, retained, or employed by a corporation, association, firm, partnership, committee, club, organization, or group of persons who are voluntarily acting in concert (hereinafter referred to as entity) that is itself engaged in the representation of clients for lobby purposes must provide on the registration or registration renewal the full name and complete address and amount of compensation received for lobby activities from that entity; the full name and complete address of each client of the entity for whom the registrant lobbies; and the amount of compensation received by the entity from the entity's clients for the lobby activities of the registrant and of assistants when acting at the registrant's direction. Provided, however, if the entity registers and discloses the information required by this subsection, the individual registrant is excepted from the requirements of this subsection. (b) In identifying the normal business of the registrant on the prescribed registration form, the registrant must provide the full name and complete address of the entity. (c) An entity that receives compensation to influence legislation or administrative action on behalf of a client and whose only expenditure to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action is the compensation or reimbursement of one or more individual registrants may register as a lobbyist. Such an entity must disclose on its registration form the full name, complete address, and the amount of compensation received by the entity from each of its clients for lobby activities. sec.40.15. Lobby Registration Fee. (a) The lobby registration fee or renewal fee is $300 per calendar year, except as provided by subsection (b) of this section. (b) The lobby registration fee or registration renewal fee for a registrant who is retained, employed, or reimbursed for lobby activities exclusively by one or more organizations exempt from federal income tax under Internal Revenue Code, sec.501(c)(3) or 501(c)(4), is $100 per calendar year. A registrant whose clients include a non-exempt entity is subject to the $300 fee. (c) A registration or registration renewal submitted without the proper fee will not be accepted. A registration or registration renewal submitted without the proper fee does not constitute a filing of a registration or registration renewal as provided by the Act. The submission of an amended registration does not require a fee. (d) The fee should be paid by check or money order made payable to the Texas Ethics Commission. sec.40.17. Lobby Forms. The Texas Ethics Commission adopts the Lobbyist Registration and Registration Renewal Form prescribed by the commission in January 1992. This form is published by and available from the Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. sec.40.19. Identifying Subject Matters. (a) On the registration form, registration renewal form, and activity report, in identifying the subject matter(s) of the direct communication made by the registrant or a person employed or retained by the registrant, the registrant must also provide the actual bill number, docket number, or other official designation of the matter if the registrant knows that information. (b) A registrant is not required to file an amended registration form to indicate a change in the subject matter or administrative designation of legislation or administrative action if the registrant reflects that change in relation to the particular clients on the next monthly activity report that is due under the Government Code, sec.305.007. sec.40.21. Adding or Deleting Clients. If there is a change in the list of persons for whom the registrant lobbies, the registrant must file an amended registration schedule to reflect this change no later than the date the next monthly activity report is due under the Government Code, sec.305.007. sec.40.23. Identifying Persons Who Make Grants or Contributions. A political contribution as defined by the Election Code, sec.251.001, and reported as required by law is not a grant or contribution under the Government Code, sec.305.005(h)(4). sec.40.25. Detailed Reporting. (a) In itemizing expenditures of more than $50 a day for transportation or lodging: (1) identification of the place of transportation must include the name of the carrier and identification of the departure and arrival city or cities; (2) identification of the place of lodging must include the name and complete street address of the hotel or other lodging and identification of the city in which such lodging is located; (3) the date of the transportation or lodging is the date or dates in which the member used such transportation or lodging; and (4) identification of the purpose of the transportation or lodging must include the name of the conference, seminar, or other events, if applicable. (b) In itemizing expenditures of more than $50 a day for food and beverages: (1) identification of the place of the expenditures must include the name and complete street address of the vendor providing the food and beverages, such as the restaurant or the catering service, and the location where the food and beverages are consumed, if different; and (2) the date of the expenditure is the date on which the food and beverages are consumed. (c) In itemizing expenditures of more than $50 a day for entertainment: (1) identification of the place of the expenditure must include the name and complete street address of the entertainment hall, arena, or similar location and identification of the city in which such entertainment occurred; and (2) the date of the expenditure is the date on which the entertainment occurred. sec.40.27. Exclusion from the Definition of "Transportation. " For purposes of the Government Code, Chapter 305, transportation does not include transportation of incidental value, such as a ride of short duration by personal car or taxi- cab. sec.40.29. Civil Late Penalty. The civil penalty for failure to file timely a required registration or report is $100. sec.40.31. Legislative Advertising. Political advertising as defined by the Election Code, sec.251.001(16), does not constitute legislative advertising under the Government Code, sec.305.027. sec.40.33. Conflicts of Interest; Waiver; Withdrawal From Representation. A registrant who resolves a conflict among clients, or withdraws from representation of one or more of the clients whose interests conflict, on the third business day or sooner after the day the registrant became aware of the conflict has not violated the Code of Conduct of the Government Code, sec.305.0011. 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 June 4, 1992. TRD-9208078 Jim Mathieson Assistant General Counsel Texas Ethics Commission Effective date: July 2, 1992 Proposal publication date: January 17, 1992 For further information, please call: (512) 463-5800 TITLE 7. BANKING AND SECURITIES Part V. Office of Consumer Credit Commissioner Chapter 1. Consumer Credit Commission Subchapter B. Miscellaneous Notice in Written Contracts 7 TAC sec.1.302 The Finance Commission of Texas adopts an amendment to sec.1.302, concerning notice in written contracts, without change to the proposed text as published in the April 28, 1992, issue of the Texas Register (17 TexReg 3044). Adoption of the amendment is necessary in order to notify consumers of a new toll-free telephone number of the Office of Consumer Credit Commissioner as well as the telephone number of the seller or creditor with whom the consumer contracted. One comment was received regarding the adoption of the amended section from an attorney representing Bank One, Texas N.A. The comment was neither for or against the amendment, but suggested clarification as to the name of the person to be inserted as the seller or creditor as well as the appropriate telephone number. The commenter reasoned that there might be confusion as to whether the name of the individual should be the seller or a potential subsequent assignee of the seller. Having considered the comment the Finance Commission is of the opinion that the consumer would be better served by preserving the language in the proposal. The rule being amended has been effective since July of 1987 and has been met with acceptance by both the industry and consumers. The intent of this change is to provide notice to the consumer of how he or she can contact the party to whom they are indebted under the contract or agreement. The Finance Commission has attempted to be flexible in the notice requirements to permit interested parties to design the most effective and useful notice. Obviously if a seller retains and services all of the seller's credit transactions, then the seller's name and telephone number should appear in the notice. If a seller routinely assigns all of its credit transactions to a particular person who subsequently services the accounts, then it would be desirable to place the name and telephone number of the assignee in the notice. All interested parties should strive to place the name and telephone number in the notice that would be most useful to the consumer in the future. The amended section is adopted under Texas Civil Statutes, Article 342-114a which provides the Finance Commission with authorization to adopt rules necessary for ensuring compliance with Texas Civil Statutes, Article 5069-1.01 et seq. 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 June 12, 1992. TRD-9208173 Al Endsley Consumer of Credit Commissioner Effective date: June 6, 1992 Proposal publication date: April 28, 1992 For further information, please call: (512) 479-1280 Part I. State Finance Commission Chapter 4. Currency Exchange Subchapter A. General 7 TAC sec.4.07 The State Finance Commission adopts new sec.4.07, concerning currency exchange, with changes to the proposed text as published in the April 21, 1992, issue of the Texas Register (17 TexReg 2841). The Currency Exchange Act requires licensees to post a bond in an amount set by the commissioner. In order to provide guidance and advance notice to licensees and potential licensees, this rule sets out a framework for calculating the bond amount. The rule would allow a prospective licensee to know, in advance, with some degree of certainty, what bond would be required. It also promotes uniformity of treatment. This rule also allows a licensee to deposit cash or approved securities in lieu of posting a bond. The purpose of this provision is to lessen the financial burden on licensees and to provide a bonding alternative for those who do not wish to go through the mechanics of obtaining and renewing a bond each year. Licensees would save the bond premium by choosing this option. The rule is changed to reflect a comment from the Texas Treasury Safekeeping Trust Company. The required bond amount for a licensee conducting a currency transmission business is based on a percentage of the licensee's dollar volume of transmission business. Licensees conducting only a currency exchange business are required to post the minimum bond of $25,000. The rule, in most cases, will allow the licensee to calculate its required bond without action by the Department of Banking. A deposit in lieu of bond will require the prior consent of the commissioner. Such deposits will be held in safekeeping by the Texas Treasury Safekeeping Trust Company. One comment was received from the Texas Treasury Safekeeping Trust Company regarding the deposit in lieu of bond. They asked that the rule make clear that the deposit in lieu of bond is made with the commissioner and not with the Texas Treasury Safekeeping Trust Company. The rule has been revised to reflect that fact and that the commissioner will enter into an agreement with the Texas Treasury Safekeeping Trust Company regarding the safekeeping arrangements. The names of a group or association making comments for the section was the Texas Treasury Safekeeping Trust Company. The new section is proposed under Texas Civil Statutes, Article 350, sec.7, which empower the Finance Commission of Texas to promulgate general rules necessary to implement the provisions of the Act. sec.4.07. Bond Requirements; Deposit in Lieu of Bond. (a) Currency exchange. Licensees engaged exclusively in the business of currency exchange shall post a bond of $25,000. (b) Currency transmission. Licensees engaged in currency transmission or both currency exchange and transmission activities shall post a bond equal to the greater of $50,000 or 1.0% of their total yearly dollar volume of currency transmission business (rounded to the nearest thousand dollars), but in no event will the bond be more than $1 million. (c) Multiple offices. One bond may be used to cover multiple licenses held by or multiple offices owned by one person. The required bond amount, however, may be increased by the commissioner in increments of up to $10,000 for each additional license held or location owned by the licensee. (d) Exception. Notwithstanding the foregoing, the commissioner may require a bond in excess of the amount set forth previously if, in the opinion of the commissioner, unusual circumstances exist, which give rise to an increased risk to the general public or an increased level of regulatory concern. (e) Review. The commissioner shall review the bond amount each year when the licensee's license is renewed. The bond amount will be set based on volume of business in the previous four calendar quarters. The commissioner may review and reset the bond amount at any time if there is a change in the manner in which the licensee conducts business or a change in the ownership or management structure of licensee's business, including any change in principal. (f) Deposit in lieu of bond. (1) A licensee, with the prior permission of the commissioner, may deposit cash (in United States currency) or cash equivalent instruments or securities with the commissioner, in an amount greater than or equal to the amount of the required bond, in a restricted account or under a safekeeping arrangement with the Texas Safekeeping Trust Company in lieu of the bond required under the Act, sec.10. The commissioner shall enter into an agreement with the Texas Treasury Safekeeping Trust Company to provide safekeeping of cash equivalent instruments or securities deposited with the commissioner under this section. The value of any cash equivalent instruments or securities shall be determined by using the lower of the principal amount or market value thereof. (2) The term "cash equivalent instruments or securities" as used in this subsection shall include the following: (A) certificates of deposit in United States dollars issued by a financial institution located in this or any other state and fully insured by the Federal Deposit Insurance Corporation; (B) direct obligations of the United States Government; and (C) other securities or investments approved by the commissioner. (3) Securities deposited in lieu of posting a bond shall be held to secure the same obligations as would the surety bond, but the licensee depositor shall be entitled to receive all interest and dividends thereon. The licensee, with the prior approval of the commissioner, shall have the right to substitute other securities for those deposited, and shall be required to do so upon written order of the commissioner for good cause. 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 June 10, 1992. TRD-9208071 Brian R. Herrick Assistant General Counsel Department of Banking Effective date: July 2, 1992 Proposal publication date: April 21, 1992 For further information, please call: (512) 475-1300 7 TAC sec.4.08 The State Finance Commission adopts new sec.4.08, concerning currency exchange, without changes to the proposed text as published in the April 21, 1992, issue of the Texas Register (17 TexReg 2841). The Currency Exchange Act, sec.9(e), requires that a rule be adopted governing the custody of criminal history information in the department's possession with respect to applicants and their principals. The proposed rule restricts access to this information to those individuals employed by the department and the attorney general to work on Currency Exchange Act regulatory and enforcement activities. The rule also limits the use of such information to the legitimate needs of the department in carrying out its administrative duties under the Act. No comments were received regarding adoption of the new section. The new section is proposed under Texas Civil Statutes, Article 350, sec.7, and sec.9, which empower the Finance Commission of Texas to promulgate general rules necessary to implement the provisions of the Act. 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 June 10, 1992. TRD-9208072 Brian R. Herrick Assistant General Counsel Department of Banking Effective date: July 2, 1992 Proposal publication date: April 21, 1992 For further information, please call: (512) 475-1300 TITLE 16. ECONOMIC REGULATION Part IV. Texas Department of Licensing and Regulation Chapter 64. Employers of Certain Temporary Common Workers 16 TAC sec.64.70 The Texas Department of Licensing and Regulation adopts an amendment to sec.64.70 concerning rights and duties of a license holder, without changes to the proposed text as published in the May 8, 1992, issue of the Texas Register (17 TexReg 3332). The amendment necessary to address the department's authority to enter business premises as a part of an inspection or investigation while also protecting the license holder's right to confidentiality. The amendment requires that all information collected remain privileged and confidential for exclusive use of the department for the administration of the Act. No comments were received regarding the adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 5221a-10, which provide the Texas Department of Licensing and Regulation with the authority to promulgate rules necessary to regulate the Employers of Certain Temporary Common Workers Act. 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 June 11, 1992. TRD-9208128 Jack W. Garison Acting Executive Director Texas Department of Licensing and Regulation Effective date: July 3, 1992 Proposal publication date: May 8, 1992 For further information, please call: (512) 463-3127 TITLE 22. EXAMINING BOARD Part XXIX. Texas Board of Professional Land Surveying Chapter 661. General Rules of Procedures and Practices Applications, Examinations, and Licensing 22 TAC sec.661.41 The Texas Board of Professional Land Surveying adopts an amendment to sec.661.41, concerning applications, without changes to the proposed text as published in the December 24, 1991, issue of the Texas Register (16 TexReg 7623). Section 661.41 clearly defines what a person must do to file an application. Changes made to this section will change the deadline date for filing applications from June 30 to July 15 and from December 1 to January 15. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 5282c, which provide the Texas Board of Professional Land Surveying with the authority to make and enforce all reasonable and necessary rules, regulations, and bylaws not inconsistent with the Texas Constitution, the laws of this state and this Act. 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 June 10, 1992. TRD-9208056 Sandy Smith Executive Director Texas Board of Professional Land Surveying Effective date: July 2, 1992 Proposal publication date: December 24, 1992 For further information, please call: (512) 452-9427 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 7. Corporate and Financial Regulation Subchapter A. Examination and Corporate Custodian and Tax 28 TAC sec.7.83 The State Board of Insurance of the Texas Department of Insurance adopts new sec.7.83, concerning the filing and adoption of examination reports of insurers, with changes to the proposed text as published in the March 13, 1992, issue of the Texas Register (17 TexReg 1899). The new section is necessary to implement the Insurance Code, Article 1.15, sec. 6 (enacted by House Bill 2, sec.11.104, 72nd Texas Legislature, 1991), which directs the board to adopt procedures for the filing and adoption of examination reports of insurers. Additionally, the new section will make adopted examination reports and examination reports made after December 30, 1990, open records under Texas Civil Statutes, Article 6252-17a, sec.3(c). The board believes the reports should be available to the public so persons will have the opportunity to be informed of the financial condition and market conduct of insurers authorized to do business in Texas. The new section provides a procedure for the filing of examination reports and opportunities for the examined insurer to seek changes in its examination report. After a report is adopted by the associate commissioner, an insurer has the right to appeal the adoption to the commissioner, if the insurer believes the report to be factually wrong. If an insurer does not appeal the adoption, the adopted report shall become available to the public. If an insurer appeals the adoption, the adopted report will remain confidential under Texas Civil Statutes, Article 6252-17a, sec.3(a)(12), until the appeal is completed. Seven parties submitted comments regarding the rule. A public hearing was requested under Texas Civil Statutes, Article 6252-13a, sec.5(c), and was held on May 5, 1992. One commenter suggested the definition of examination report was vague and could be construed to include the examiner's work papers related to the examination report. The agency's intent is to make only the examination report available to the public and clarifies this by amending subsection (a)(4), (7), and (8). Five commenters expressed concern that an insurer would not have a copy of the examination report to prepare for the exit interview and/or any management conferences following the exit interview. The agency responds by amending subsection (c)(1) to provide for the insurer to receive and retain a copy of the examination report prior to the exit interview. One commenter suggested the rule contain an explanation of the purpose of the exit interview. The agency disagrees with the comment because such interviews are commonly used in many areas which involve a review of activities or transactions. Therefore, the agency believes the purpose of the interview is self explanatory. Three commenters suggested the time frames for requesting a management conference, the certification of the report as final, and the filing of a written rebuttal to the final report, be amended to generally allow for a longer period of time. One commenter suggested, for example, that days be construed to mean business days. In response, the agency amends subsection (e) (1) to provide that an insurer has 15 days from the insurer's receipt of the report to file a written rebuttal. Otherwise, the agency disagrees with the comments. The agency finds the time frames, measured in calendar days, to be adequate and believes that they provide for the prompt resolution of issues before the report is made available to the public. Three commenters expressed concern over the absence of an appeal to the commissioner from the associate commissioner's adoption of a final examination report. The agency responds by adding the following provision to subsection (e) (1): "A report will not be considered an adopted report during the pendency of any appeal to the commissioner or other appeal under Insurance Code, Article 1. 04. Any appeal to the commissioner must be filed with the commissioner within 15 days from the company's receipt of the associate commissioner's decision." Two commenters recommended an insurer have the right to submit its comments on the report and have them attached to the report. The agency disagrees with the specific recommendation, but amends subsection (c)(1) to provide for the examiner-in-charge to include in the report, a disclosure of the company's dissenting views. One commenter suggested the rule be amended so as to require the report's inclusion of a new section styled "Alleged Violations." The agency disagrees because the comment is not germane and the suggested information would be redundant. One commenter suggested market conduct examination reports be deleted from the rule because they are more subjective than financial examination reports and they are not included in the National Association of Insurance Commissioners' Model Law on Examination Reports. The agency rejects the suggestion because market conduct examinations are conducted under the Insurance Code, Article 1.15, and information about an insurer's market conduct should be available to the public. Two commenters suggested that subsection (e)(2) be deleted since the commissioner's authority to act on a report at any time is clear. Another commenter suggested the rule add emphasis on the need for the commissioner to use discretion when acting on reports before they become public. The agency rejects the comment because the paragraph restates the law found in the Insurance Code, Article 1.15, and its inclusion in the rule is to prevent a construction which would limit the commissioner's authority to act due to the existence of the rule. Five commenters objected to making examination reports public records. The agency disagrees with these comments. The agency believes the public will benefit from having this information available. The rule is retroactive to December 31, 1990, because internal examination procedures in effect since that time have remained similar to those contemplated by this rule. The agency also notes that examination reports prepared by the agency are already public for insurers that do business in states where reports are considered public information. The authority to make reports public exists in the Insurance Code, Article 1.10, sec.6, and the Open Records Act (Texas Civil Statutes, Article 6252-17a, sec.3(c)). For: Office of Public Insurance Counsel; Against: Texas Legal Reserve Officials Association, Association of Fire and Casualty Companies in Texas, and Alliance of American Insurers. The new section is adopted under the Insurance Code, Article 1.15, which authorizes the State Board of Insurance to adopt procedures for the filing and adoption of examination reports. sec.7.83. Examination Reports. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Commissioner-Commissioner of insurance, Texas Department of Insurance. (2) Associate commissioner-The associate commissioner, Financial Program of the Texas Department of Insurance or any successor named by the commissioner. (3) Company-An insurer, group hospital service plan, or health maintenance organization authorized to do business under the laws of this state. (4) Final examination report-An examination report which has been the subject of an exit interview between the examiner-in-charge and company management, any management conferences between the chief examiner and company management, and which has been certified as "final" by the chief examiner. A final examination report does not include work papers related to the examination or report. (5) Financial statement-A balance sheet, income statement, schedule showing results of operations, summary of operations, underwriting and investment exhibit, schedule of capital and surplus accounts, or other similar schedules reflecting financial information about a company. (6) Market conduct examination-An examination which focuses on the performance and general business practices of a company in its dealings with policyholders and the general public. (7) Examination report-A report which contains a financial statement of the company examined or which reflects the results of a market conduct examination. An examination report does not include work papers related to the examination or report. (8) Adopted examination report-An examination report which has been adopted or deemed adopted by the associate commissioner pursuant to this section. An adopted examination report does not include work papers related to the examination or report. (b) Applicability. This section applies only to examination reports with examination dates as of June 30, 1992 or later. (c) Filing of examination reports. (1) Examination reports prepared by the Texas Department of Insurance. Upon completion of an examination, the examiner-in-charge shall provide company management a copy of the examination report for review. Upon completion of company management's review of the report, the examiner-in-charge shall immediately conduct an exit interview with company management. A factual rebuttal by company management shall be noted in the completed examination report along with written comments to the factual rebuttal by the examiner-in- charge. The examiner-in-charge shall submit the completed examination report to the chief examiner within 15 days after the exit interview and simultaneously furnish the company a copy for its retention. Within 30 days after the exit interview, the company examined may submit a written request for a management conference with the chief examiner on the examination report. The company's request shall include a detailed statement of the company's disagreement with the report. The chief examiner may request a management conference to address any regulatory concerns raised by the examination. The management conference must be scheduled for a date within 30 days after the request is made. If no conference is requested by either the company or the chief examiner within the time permitted, the chief examiner shall proceed as provided in subsection (d)(1) of this section, the examination report shall be deemed adopted by the associate commissioner, and the report shall be subject to subsection (f) of this section. (2) Examination reports prepared by other jurisdictions. In lieu of examining any foreign or alien insurer licensed in this state, the Texas Department of Insurance may accept an examination report on the company prepared by the insurance department for the company's state of domicile until January 1, 1994. Thereafter, such report shall be accepted only if the examining insurance department is required by law to conduct an examination of an insurer licensed in that state not less frequently than once every five years, and: (A) the examining insurance department was at the time of the examination accredited under the National Association of Insurance Commissioners Financial Regulation Standards and Accreditation Program; or (B) the examination is performed under the supervision of an accredited insurance department or with the participation of one or more examiners who are employed by such an accredited insurance department and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by its insurance department. (d) Notice to associate commissioner. (1) Examination reports prepared by the Texas Department of Insurance. No later than 15 days following any management conference conducted pursuant to subsection (c)(1) of this section, the chief examiner may make changes to the report which are believed to be necessary or proper. After any such changes are made, the chief examiner shall simultaneously: (A) certify the examination report as final; (B) notify the associate commissioner of the certification; and (C) transmit a copy of the final report to the company examined. (2) Examination reports prepared by other jurisdictions. The chief examiner shall notify the associate commissioner of each examination report received pursuant to subsection (c)(2) of this section. Each such report shall be deemed to be a final report. (e) Adoption of reports. (1) Appeal of final report. A company which is the subject of a final examination report prepared by the Texas Department of Insurance and which has had a management conference pursuant to subsection (c)(1) of this section may, within 15 days after its receipt of the final report transmitted by the chief examiner pursuant to subsection (d)(1)(C) of this section, submit for the associate commissioner's consideration, a written factual rebuttal to the report. Within 30 days following receipt of the rebuttal, the associate commissioner shall adopt the examination report, either with or without changes or shall reject the report. A report will not be considered an adopted report during the pendency of any appeal to the commissioner or other appeal under Insurance Code, Article 1.04. Any appeal to the commissioner must be filed with the commissioner within 15 days from the company's receipt of the associate commissioner's decision. If no written rebuttal is submitted within the time permitted, no further action is required and the report shall be: (A) deemed adopted by the associate commissioner; and (B) subject to subsection (f) of this section. (2) Commissioner's authority. Nothing contained herein shall be construed to limit the commissioner's authority to use any final or preliminary examination report, any examiner or company work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner may deem appropriate. (3) Disclosure by commissioner. Nothing contained herein shall be construed to prohibit the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the insurance department of any other state or country, or to law enforcement officials of this or any other state, or to an agency of the federal government at any time. The commissioner may request any recipient of such reports or matters relating thereto to agree in writing to hold it confidential and in a manner consistent with this section. (f) Open records treatment. (1) Adopted examination report. Each adopted examination report prepared by the Texas Department of Insurance shall be considered an open record pursuant to the Open Records Act, Texas Civil Statutes, Article 6252-17a, sec.3(c). Each report received from another jurisdiction pursuant to subsection (c)(2) of this section shall be considered an open record. (2) Completed examination reports. All examination reports with examination dates as of December 31, 1990, or later, but before June 30, 1992, which are determined by the chief examiner to be completed shall be considered open records pursuant to the Open Records Act. (3) Confidential supervision. No examination report will be made an open record under this subsection, until the examined company is released from any confidential supervision order issued by this agency. 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 June 11, 1992. TRD-9208086 Linda K. von Quintus-Dorn Chief Clerk Texas Department of Insurance Effective date: July 2, 1992 Proposal publication date: March 13, 1992 For further information, please call: (512) 463-6327 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part II. Texas Parks and Wildlife Commission Chapter 65. Wildlife Subchapter A. Statewide Hunting and Fishing 31 TAC sec.sec.65.3, 65.13, 65.40, 65.72 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing held May 21, 1992, adopts amendments to sec. sec.65.3, 65.13, 65.40, and 65. 72, concerning the Statewide Hunting and Fishing Proclamation. Section 65.40 and sec.65.72 are adopted with changes to the proposed text as published in the February 25, 1992, issue of the Texas Register (17 TexReg 1516). Section 65.3 and sec.65.13 are adopted without changes and will not be republished. The changes were made at the request of: staff, the public who attended the March 26 and May 21, 1992, public hearings, persons who gave testimony at 45 and 22 public hearings held during the periods of March 2-6 and April 27-May 1, 1992, and comments on the proposed changes by letter or telephone calls to the department. The changes are: amend sec.65.40(1)(C) to reduce the number of days that antlerless deer may be taken in Cherokee and Nacogdoches Counties from 18 days to four days, and in Walker County antlerless deer may be taken only by antlerless deer permit, amend sec.65.72(b)(4)(A) to gradually increase flathead catfish minimum length limits from nine to 18 inches during the 1992-93 season and to 24 inches in length beginning September 1, 1993, amend sec.65.72(b)(4)(B) (ii) to permit the bag limit for bass in Lakes Brownwood and Coleman to remain at five bass per day, and amend sec.65.72(b)(4)(B)(ii) to add Van Zandt County to the description of the location of Purtis Creek Reservoir. The adopted rules are based upon studies and investigations by the department which determine appropriate wildlife resource utilization. The rules as adopted have as their factual basis scientific studies and investigations which track trends in wildlife resource populations and assesses factors affecting those populations. The adopted rules are based upon the best available scientific information. The commission is responsible for administering a flexible law to deal effectively with changing conditions to prevent depletion or waste of wildlife resources and to provide equitable and reasonable privileges of ownership to pursue, take, possess, and kill wildlife resources. The Texas Employment Commission on February 12, 1992, indicated in reply to departmental correspondence that the amendments as proposed will have minimal fiscal and employment impacts upon the state. The rules are needed to: appropriately manage wildlife resource populations; permit harvest options for areas or counties having attainable management goals; limit declines in available wildlife resource habitat; reduce the number of areas having high hunting pressure; clarify and simplify rules relating to possession of firearms during the archery only seasons; amend season opening dates to conform to weekends; initiate experimental regulations to assess management options for selected fish species such as: permit selected fish species to spawn once before being retained, moderate the effects of cyclic water levels upon spawning, and enhance fishing opportunities in small reservoirs near urban areas or within state parks; protect selected fish species from overharvest; simplify saltwater fish bag and possession limits; increase harvest opportunities on Spanish mackerel; allow retention of sharks taken by sail lines; and permit freshwater nongame fish to be taken for purposes other than bait. The amendments will provide harvest opportunity of wildlife resources consistent with acknowledged fisheries and wildlife management tenets which are designed to prevent depletion or waste. Comments by the public concerning the amendments proposed in the February 25, 1992, issue of the Texas Register were presented to the Parks and Wildlife Commission at public hearings held March 26 and May 21, 1992. The comments were summarized from: comments made at 45 county public hearings where 921 persons attended during the period of March 2-6, 1992, comments made at 22 county public hearings where 123 persons attended during the period of April 27-May 1, 1992, comments in the form of petitions, resolutions, department and citizen surveys, letters, and telephone calls, and comments made by the public attending the March 26 and May 21, 1992, commission public hearings. The comments made by the public at the county hearings, by correspondence, or at the commission public hearings are available for public inspection at the Texas Parks and Wildlife Department Headquarters Complex, 4200 Smith School Road, Austin, Texas 78749, 1-800-792-1112, extension 4974 or 512-389-4974. The public comments at county hearings included generalized statements relating to a deer population decline over large areas attributed to various reasons: overharvest of doe deer, lack of control over antlerless deer harvest, and buck deer harvest regulated through issuance of permits by landowners, overharvest of buck deer, harvest of spike bucks, lack of suitable deer habitat, special game management plans, and return regulatory authority over wildlife resources to county commissioners courts. The public at the county hearings expressed opposition to either-sex deer hunting seasons, one buck bag limit, long deer season, opening date of deer season, length of doe season, "doe days," the late doe only season in south Texas, catfish minimum length limits, prohibition of netting non-game fish, crappie minimum length limits, white bass size limits, and proposed minimum length and bag limits for bass. Persons at the county hearings favored reduced deer bag limits, shortened deer season length, reduced "doe days," keep buck bag limit at one, return to a deer bag limit of two bucks and no does, closed deer season for certain areas, deleted late antlerless deer season in south Texas, protect spike bucks, decreased minimum size limits for bass, and netting for rough fish. Correspondence received at the department headquarters in the form of letters, petitions, surveys, resolutions, and telephone calls concerned comments on white-tailed deer seasons, bag limits, decline of deer population, management options for differing harvest regimes, "doe days," protection of spike bucks, closure of doe season, closure of deer season, shortening deer season, reinstating antlerless deer permits, small landowners adjacent to large landowners overharvesting the deer population, and delaying the opening of deer season so majority of doe deer will be bred; and comments concerning freshwater fishing, specifically, bag limits for crappie, bass, and flathead catfish, gill nets, and more restrictive regulations for freshwater fish. Comments attached to department surveys requested a return to issuance of antlerless deer permits, a deletion of "doe days," a reduction of deer bag limit, a closed deer season, and concern for a declining deer population. Petitions were received from persons representing groups related to eliminating "doe days" and reinstating antlerless deer permits and removing the saltwater trotline ban on weekends. Comments made by the public at the county hearings concerned many of the proposed amendments but they also commented upon regulations not being proposed for amendments. A state senator requested that antlerless deer be taken only by the use of antlerless deer permits for Cherokee and Nacogdoches Counties. A state representative of Walker County Wildlife Association, requested the use of antlerless deer permits for Walker County. A state representative representing Nacogdoches, Panola, Shelby, Sabine, Angelina, and Houston Counties, requests that deer harvest be reduced as deer population is down. The Walker County judge stated that deer are depleted and requests a deer permit system. An individual from International Paper, spoke for keeping opening date of deer season as is. An individual from Landowners in Lampasas County, Adamsville, and Lucy Creek Wildlife Management Areas, requested that the antlerless deer permit system be reinstated. Two individuals from the Doss Wildlife Management Area, requested that deer season opening date be the second Saturday of November, and a third individual requested that deer season opening date be November 15. An individual from Nacogdoches County Farm Bureau, stated that deer herd has been depleted. Individuals from Jackson and Victoria Counties, presented petition of 800 signatures requesting a one buck limit and no antlerless deer be taken. An individual from Harvest Creek Co-op, requested that seasons and bag limits be left as is. An individual from the Texas Sportsmen's Association, requested a return to antlerless deer permits. An individual from the Lone Star Bowhunters, requests an archery season with five full weekends. An individual from the Texas International Blackpowder Hunters Association, requests a muzzleloading season for Texas. An individual from the Temple-Inland, stated that a bag limit of one buck and one doe would make the logistics of getting more hunters more difficult. An individual from the Texas Wildlife Association, stated that there was a decline in deer numbers and that small landowners overharvest deer. Other individuals from the Texas Sportsmen's Association, requested that the "doe days" experimental harvest system be eliminated. An individual from Cherokee County, stated deer population is depleted. An individual from Cherokee County Farm Bureau, requests a "swing tag" for either a buck or doe deer. Another individual from the Doss Wildlife Management Area, requests that no muzzleloading season be permitted during the first part of November. An individual from Bowhunters of Texas, requests separation of archers and muzzleloaders due to safety. The Texas Parks and Wildlife Commission disagreed with several comments received because they were judged not to be compatible with wildlife resource management. The commission must make findings of fact based upon the department's scientific surveys and investigations. Several of the comments were related to rules not proposed as amendments in the February 25, 1992, issue of the Texas Register and will not be discussed. With respect to deer regulations, the department staff through studies formulates regulations designed to conserve and protect the white-tailed deer resource and its habitat. The staff has determined that the status of deer populations determined from scientific surveys and investigations of deer populations does not warrant the extent of concern expressed by the public in their comments. Reduced deer bag limits for east Texas are appropriate because this population has been brought closer to the carrying capacity of the habitat. The regulations for deer bag limit reduction in east Texas are believed by staff to be adequate to protect the resource. Most deer populations in the state remain near or above carrying capacity of the habitat even though numbers of deer may be down in some areas. Comments from the public concerning white-tailed deer bag limits centered around the belief that bag limits are too liberal and permit harvest of too many antlerless deer. The majority of persons who commented requested either a stop in the harvest of antlerless deer or reinstatement of the antlerless deer permit system based upon landowner acreage. Additionally, several persons opposed the buck deer bag limit reduction to one buck as they believed this restriction was unnecessary. Staff reviewed those comments and the data upon which the bag limits were based. Staff believes that the proposed bag limits and season length are appropriate to address stable or declining deer populations and additional restrictions are not appropriate to deer management at this time except in a few situations. The existing one buck bag limit is due to high hunting pressure on the buck segment of the herd. A reduced buck harvest is necessary to balance the sex ratio of the deer herd and to insure adequate breeding age males for high reproductive rates. Maintaining the deer herd within the habitat's carrying capacity prevents degradation of habitat and lessens stress within the herd. An experimental harvest regime commonly called "doe days" was implemented during the 1990 hunting season. This harvest approach has proven applicable and effective in much of the southeastern United States. Some persons opposed this regulation for being too liberal and believe too many antlerless deer were harvested and that existing deer populations are too low to support this harvest. Staff has reviewed the public's comments, the biological basis for this experiment, and the results of harvest surveys. This regulation appears to be a reasonable method of providing for limited antlerless deer harvest without requiring issuance of antlerless deer permits. Staff believes that this regulation can be tailored or adapted, with experience gained from this study, for future deer harvest needs of large areas of Texas. Comments concerning "doe days" regulations were received from the public in east Texas and the lower Post Oak Savannah ecological region. The majority of the people wanted no harvest of antlerless deer. Other persons commented that the "doe days" harvest regime is too restrictive in time which results in the unintentional taking of many antlerless buck fawns. Staff reviewed this proposal and the public's concerns. There is cause for careful consideration and study in this region of Texas. Data indicate that the deer herd has declined from previous years in some areas. However, staff believes that the herd is at or near the carrying capacity of the habitat and that the harvest of antlerless deer is required. With respect to freshwater fishing regulations, the staff, through studies, has determined the current nine-inch minimum size limit for flathead catfish does little to address potential overharvest. The proposed 24" minimum length limit assures that flathead catfish have the opportunity to spawn at least once prior to being retained by fishermen and that an increase will be achieved in total yield available. The cyclic fluctuations of water levels impacts spawning bass in certain locales and the proposed regulations are designed to temper those adverse conditions. Other comments opposed prohibiting the use of nets to take non-game fish and suggested that length and daily bag limits were too restrictive. The commission after hearing and reviewing the public's testimony and staff's response to the testimony made the following changes: antlerless deer may be taken in Walker County only by antlerless deer permit which is based upon landownership acreage, reduce the "doe days" season length in Cherokee and Nacogdoches Counties from 18 days to four days, gradually increase the minimum length limit for flathead catfish from nine inches to 18 inches beginning September 1, 1992, and then increase to 24 inches beginning September 1, 1993, and thereafter, and keep the bag limit of five bass per day in Lakes Brownwood and Coleman but increase the minimum length limit to 18 inches. The amendments are adopted under the Texas Parks and Wildlife Code, Chapter, sec.61, Uniform Wildlife Regulatory Act (Wildlife Conservation Act of 1983) which provides the Texas Parks and Wildlife Commission with authority to establish wildlife resources regulations for this state. sec.65.40. Deer: White-tailed and Mule Deer. No person may take more than the aggregate total of five deer per license year; of which no more than two may be mule deer, only one of which may be a buck mule deer; no more than two white- tailed buck deer, or no more than five antlerless deer, both species combined. (1) White-tailed deer: general open seasons, bag, and possession limits shall be as follows. (A) (No change.) (B) In Aransas, Atascosa, Bee, Brooks, Cameron, Dimmit, Duval, Frio, Hidalgo, Jim Hogg, Jim Wells, Kenedy, Kinney (only south of U.S. Highway 90), Kleberg, LaSalle, Live Oak, McMullen, Maverick, Medina (only south of U.S. Highway 90), Nueces, Refugio, San Patricio, Starr, Uvalde (only south of U.S. Highway 90), Webb, Willacy, Zapata, and Zavala Counties, there is an open season for white- tailed deer. (i)-(iii) (No change.) (iv) Special (South Texas) late season. In the counties listed in this subparagraph there is a special late antlerless only white-tailed deer season. (I) Open season: January 16-31, 1993. (II) (No change.) (C) No person may take or possess more than one white-tailed buck deer per license year from counties, in the aggregate, listed within this subparagraph. (i) In Anderson, Angelina (only on Angelina National Forest and Corps of Engineers lands), Archer, Armstrong, Baylor, Borden, Brazos, Briscoe, Burleson, Camp, Carson, Childress, Clay, Collingsworth, Cooke, Cottle, Crane, Crosby, Delta, Denton, Dickens, Donley, Ector, Ellis, Falls, Fannin, Fisher, Floyd, Foard, Franklin, Freestone, Garza, Gray, Gregg, Grimes, Hall, Hardeman, Haskell, Hemphill, Hill, Hopkins, Houston, Howard, Hutchinson, Jack, Jasper (only on Angelina National Forest and Corps of Engineers lands), Johnson, Jones, Kent, King, Knox, Lamar, Leon, Limestone, Lipscomb, Loving, Madison, McLennan, Midland, Milam, Montague, Motley, Navarro, Newton (only on Sabine National Forest and Sabine River Authority lands), Ochiltree, Parker, Rains, Randall, Red River, Roberts, Robertson, Sabine (only on Sabine National Forest, Corps of Engineers lands, and Sabine River Authority River lands), San Augustine (only on Angelina and Sabine National Forests and Corps of Engineers lands), San Jacinto (only on Sam Houston National Forest), Scurry, Smith, Stonewall, Swisher, Tarrant, Titus, Trinity, (only on Davy Crockett National Forest), Upshur, Upton, Van Zandt, Walker, Ward, Wheeler, Wichita, Wilbarger, Wise, Wood, and Young Counties, there is an open season for white-tailed deer. (I)-(II) (No change.) (ii) -(iii) (No change.) (iv) In Bowie (except on Corps of Engineers lands), Cass (except on Corps of Engineers lands), Colorado (only in that portion of the county that lies south and west of the Colorado River), DeWitt, Gonzales, Guadalupe (only in that area of the county bounded on the north by IH 10 and on the west by State Highway 123), Harrison (except on Corps of Engineers lands), Karnes, Lavaca (only in that area of the county bounded on the north by U.S. Highway 90A and on the west by U.S. Highway 77), Marion (except on Corps of Engineers lands), Morris (except on Corps of Engineers lands), Panola, Rusk, Shelby (except on Sabine National Forest and Sabine River Authority lands), and Wilson Counties, there is an open season for white-tailed deer. (I)-(III) (No change.) (v) In Bowie (only on Corps of Engineers lands), Cass (only on Corps of Engineers lands), Harrison (only on Corps of Engineers lands), Marion (only on Corps of Engineers lands), Morris (only on Corps of Engineers lands), and Shelby (only on Sabine National Forest and Sabine River Authority lands) Counties, there is an open season for white-tailed deer. (I)-(III) (No change.) (vi) In Bastrop, Caldwell, Cherokee, Fayette, Guadalupe (all lands north of IH 10 and all lands west of State Highway 123), Harris, Lavaca (all lands north of U.S. Highway 90A and all lands west of U.S. Highway 77), Montgomery (except on Sam Houston National Forest) and Nacogdoches (except on Angelina National Forest and Corps of Engineers lands) Counties there is an open season for white-tailed deer. (I)-(III) (No change.) (vii) In Montgomery (only on Sam Houston National Forest) and Nacogdoches (only on Angelina National Forest and Corps of Engineers lands), there is an open season for white-tailed deer. (I)-(III) (No change.) (viii) -(ix) (No change.) (D)-(E) (No change.) (2)-(5) (No change.) sec.65.72. Fish. (a) (No change.) (b) Bag, possession, and length limits. (1) It is unlawful for any person while fishing on or in public waters to have in his possession fish in excess of the daily bag limit or fish within a protected length limit as established for those waters. (2)-(3) (No change.) (4) There are no bag, possession, or length limits on game or nongame fish, except as provided in these rules. (A) Statewide daily bag, possession, and length limits shall be as follows: [graphic] (B) Exceptions to Statewide daily bag, possession, and length limits shall be as follows: (i) For licensed chartered vessels the bag limit is two king mackerel per person per day for all persons on board, or three king mackerel per person per day exclusive of captain and crew, whichever is greater. (ii) insert pg 2 [graphic] (iii) Bag and possession limits for black drum, sheepshead, and flounder do not apply to the holder of a valid commercial finfish fisherman's license. (c) Freshwater devices, means, and methods. (1) (No change.) (2) It is unlawful for any person to take, attempt to take, or possess fish caught by any device, means, or method other than as authorized in these rules. (A) (No change.) (B) Trotline. Nongame fish, channel catfish, blue catfish, and flathead catfish may be taken by trotline. It is unlawful for any person to use a trotline: (i)-(vi) (No change.) (vii) in Gibbons Creek Reservoir in Grimes County, Lake Bastrop in Bastrop County, Fayette power project cooling pond in Fayette County, Pinkston Reservoir in Shelby County, Lake Burke-Crenshaw in Harris County, and Bright Lake in Williamson County, or in reservoirs 500 acres or less lying totally within boundaries of a state park. (C) Jugline. Nongame fish, channel catfish, blue catfish and flathead catfish, may be taken with a jugline. It is unlawful for any person to use a jugline in Lake Bastrop in Bastrop County, Lake Burke-Crenshaw in Harris County, and Bright Lake in Williamson County. (D) Throwline. Nongame fish, channel catfish, blue catfish and flathead catfish may be taken with a throwline. It is unlawful for any person to use a throwline in Lake Bastrop in Bastrop County, Lake Burke-Crenshaw in Harris County, and Bright Lake in Williamson County. (E) Shad trawl. Nongame fish only may be taken with a shad trawl. It is unlawful for any person to use a shad trawl longer than six feet or with a mouth larger than 36 inches in diameter. A shad trawl may be equipped with a funnel or throat and must be towed by boat or by hand. (F) Seine. Nongame fish only may be taken with a seine. It is unlawful for any person to use a seine: (i)-(iii) (No change.) (G) Dip net. It is unlawful for any person to use a dip net except: (i) (No change.) (ii) to take nongame fish. (H) Cast net. Nongame fish only may be taken with a cast net. It is unlawful for any person to use a cast net exceeding 14 feet in diameter. (I) Minnow trap. Nongame fish only may be taken with a minnow trap. It is unlawful for any person to use a minnow trap exceeding 24 inches in length or with a throat larger than one by three inches. (J) (No change.) (K) Umbrella net. Nongame fish only may be taken with an umbrella net. It is unlawful for any person to use an umbrella net with the area within the frame exceeding 16 square feet. (L)-(M) (No change.) (N) Gill nets, trammel nets, and hoop nets. (i) It is unlawful for any person to use gill nets, trammel nets, or hoop nets in the public freshwaters of this state without a permit in compliance with sec. sec.57.377-57.386 of this title (relating to Permits to Sell Nongame Fish Taken from Public Freshwater). (ii) It is unlawful for any person to use gill nets, trammel nets, or hoop nets in the freshwaters of this state except that (this clause (ii) expires on September 1, 1993). (I) Nongame fish only may be taken in the following rivers and streams, exclusive of tributaries: (-a-) the Angelina River from U.S. Highway 84 in Rusk County to the Texas Eastern Transmission Company pipeline above Sam Rayburn Reservoir; (-b-) the Attoyac River (Bayou) from U.S. Highway 84 in Rusk County to Cottonham Crossing above Sam Rayburn Reservoir; (-c-)a the Brazos River from State Highway 7 in Falls County to IH 10 in Austin County; (-d-) the Navasota River from State Highway 7 in Robertson County to its confluence with the Brazos River; (-e-) the Neches River from State Highway 294 in Cherokee County to U.S. Highway 69 in Jasper County and from FM Road 1013 in Jasper County to IH 10 in Jefferson County; (-f-) the Sabine River from Lake Tawakoni Dam to U.S. Highway 80 in Van Zandt County and from State Highway 63 in Newton County to Sabine Lake; (-g-) the San Antonio River and Coleto Creek (exclusive of Coleto Creek Reservoir) in Goliad and Victoria Counties; (-h-) the San Bernard River between Austin and Colorado Counties; and (-i-) Yegua Creek from Somerville Dam to its confluence with the Brazos River. (II) Nongame fish only may be taken in all freshwaters of Dimmit, Gillespie, Liberty, and Zavala Counties and in all fresh waters of Jefferson and Orange Counties, except those eastward of State Highway 347 and southward of IH 10. (iii) It is unlawful for any person: (I) while using a gill net, trammel net, or hoop net, to have in his possession fish, other than those species permitted for that device; (II) to use gill nets or trammel nets exceeding 1,800 feet in length, in any one operation; (III) to use gill nets, trammel nets, or hoop nets without valid gear tags attached within three feet of each end of the net; (IV) to use gill nets or hoop nets with mesh less than three inches square; or (V) to use trammel nets with mesh on any wall less than three inches square. (d) Saltwater devices, means, and methods. (1) (No change.) (2) Only the following means and methods may be used for taking fish: (A)-(B) (No change.) (C) Trotlines. (i)-(ii) (No change.) (iii) No person may retain or possess red drum, sharks, or spotted seatrout caught on a trotline other than a sail line. (iv)-(xiii) (No change.) (D) (No change.) (e) (No change.) 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 June 11, 1992. TRD-9208067 Paul M. Shinkawa Director, Legal Services Texas Parks and Wildlife Department Effective date: September 1, 1992 Proposal publication date: February 25, 1992 For further information, please call: (512) 389-4974 TITLE 34. PUBLIC FINANCE Part VIII. State Depositor Board Chapter 171. Collateral Transactions 34 TAC sec.171.1 The State Depositor Board adopts an amendment to sec.171.1, concerning collateral transactions, without changes to the proposed text as published in the April 24, 1992, issue of the Texas Register (17 TexReg 2966). The amendment is necessary in order to provide less restrictive requirements for acceptable security collateral for state deposits. The amendment will include Federal Home Loan Mortgage Corporation discount notes and primary debt instruments or debentures as acceptable security collateral for state deposits. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Government Code, sec.404.013 (Vernon 1991), which provides the State of Depository Board with the authority to adopt and enforce rules governing the handling of funds in state depositories. 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 June 12, 1992. TRD-9208127 Alicia M. Fechtel General Counsel Texas State Treasury Department Effective date: July 3, 1992 Proposal publication date: April 24, 1992 For further information, please call: (512) 463-5971 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part III. Texas Youth Commission Chapter 87. Treatment Health Care Services 37 TAC sec.87.113 The Texas Youth Commission (TYC) adopts new sec.87.113, concerning substance abuse services, without changes to the proposed text as published in the May 12, 1992, issue of the Texas Register (17 TexReg 3456). The new section concerning clinical management of chemically dependent youth will bring about more efficient substance abuse services. The new section will provide procedures for managing chemically dependent youth. No comments were received regarding adoption of the new section. The new section is adopted under the Human Resources Code, sec.61.076, which provides the Texas Youth Commission with the authority to determine the type of treatment received by each youth. 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 June 12, 1992. TRD-9208179 Ron Jackson Executive Director Texas Youth Commission Effective date: July 6, 1992 Proposal publication date: May 12, 1992 For further information, please call: (512) 483-5244