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 IV. Office of the Secretary of State Chapter 102. Health Spas Subchapter A. Statute and Definitions The Office of the Secretary of State adopts the repeal of sec.sec.102.1, 102. 10, 102.20, 102.30, 102.40, 102.41, 102.70-102.73, 102.80, 102.90, and 102.91, concerning the administration of health spas pursuant to the Health Spa Act, Texas Civil Statutes, Article 52211 (Vernon 1987, Supplement 1992), without changes to the proposed text as published in the November 24, 1992, issue of the Texas Register (17 TexReg 8217). The sections are adopted for repeal because of the adoption of new rules to regulate such spas. The repeals are necessary in order to clarify procedures for the registration, escrow, and security requirements prescribed by the Health Spa Act. Further, the repeals are necessary in order to provide a standard procedure for paying health spa members that have suffered losses as the result of the cessation of operation of a health spa. There was one question raised regarding the repeals. One person asked how the amount of the security deposit required under the Act, sec.10 would be determined. The person was told that the amount of the security deposit would be determined by the Act and Attorney General Opinion Number DM-157, dated August 26, 1992. No other comments were received regarding adoption of the repeals. 1 TAC sec.102.1, sec.102.10 The repeals are adopted under the Administrative Procedure and Texas Register Act (APTRA), Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon Supplement 1992), which provide the Office of the Secretary of State with the authority to promulgate rules. 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 December 22, 1992. TRD-9216949 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter A. Definitions The Office of the Secretary of State adopts new sec.102.1, concerning definitions not delineated in the Health Spa Act, Texas Civil Statutes, Article 52211 (Vernon 1987, Supplement 1992), sec.102.10, concerning the procedure for filing health spa registration statements with the secretary of state, sec.102.13, concerning the fees for registration and renewal statements, sec.102.15, concerning spas that are exempt from registration, sec.102.17, concerning the procedure for the registration of sec.7A facilities, sec.102.20, concerning the procedure for establishing and releasing escrow accounts, sec.102.35, concerning the procedure to be used when the secretary becomes aware a health spa has ceased business and a member has suffered financial loss within the meaning of the Health Spa Act, sec.102.40, concerning the procedure to be followed when filing a letter of credit as the security instrument required by the Health Spa Act, sec.10, sec.102.45, concerning the procedure to be followed when filing a certificate of deposit under sec.10, and sec.102.50, concerning forms that are available from the secretary of state for the purpose of complying with the Health Spa Act and these sections, without changes to the proposed text as published in the November 24, 1992, issue of the Texas Register (17 TexReg 8219). The new sections are necessary in order to provide clarification as to the procedures necessary to comply with registration, escrow, and security requirements prescribed by the Health Spa Act. Additionally, a standard procedure is established for paying claims to members that have suffered losses as a result of the cessation of operation of a health spa. No comments were received regarding adoption of the new sections. 1 TAC sec.102.1 The new sections are adopted under the Administrative Procedure and Texas Register Act (APTRA), Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216943 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter B. Registration Procedures 1 TAC sec.sec.102.10, 102.13, 102.15, 102.17 The new sections are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216944 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter B. Procedures for Registration 1 TAC sec.102.20, sec.102.30 The repeals are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to promulgate rules. 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 December 22, 1992. TRD-9216950 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter C. Escrow 1 TAC sec.102.20 The new section is adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216945 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter D. Security 1 TAC sec.102.35, 102.40, 102.45 The new sections are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216946 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter C. Security 1 TAC sec.102.40, sec.102.41 The repeals are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to promulgate rules. 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 December 22, 1992. TRD-9216951 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter E. General Information 1 TAC sec.102.50 The new section is adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216947 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter D. Registrant 1 TAC sec.sec.102.70, 102.71, 102.72, 102.73 The repeals are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216952 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter E. Registration Fees 1 TAC sec.102.80 The repeal is adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216953 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 Subchapter F. Violations 1 TAC sec.102.90, sec.102.91 The repeals are adopted under Texas Civil Statutes, Article 6252-13a, sec.4(a) (Vernon Supplement 1992) and the Health Spa Act, Texas Civil Statutes, Article 5221l (Vernon 1987, Supplement 1992), which provide the secretary of state with the authority to prescribe and adopt rules. 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 December 22, 1992. TRD-9216954 Audrey Selden Assistant Secretary of State Office of the Secretary of State Effective date: January 18, 1993 Proposal publication date: November 24, 1992 For further information, please call: (512) 463-5558 TITLE 22. EXAMINING BOARDS Part XVI. Texas State Board of Physical Therapy Examiners Chapter 321. Definitions. 22 TAC sec.321.1 The Texas State Board of Physical Therapy Examiners adopts an amendment to sec.321.1 concerning definitions, without changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7567). The amendment clarifies the intent of the Board that the definitions apply to all chapters of the rules and defines "accredited curriculum in physical therapy education: and "accredited physical therapist assistant program." The amendment assists the Board in licensing persons who are qualified. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 4512e, 3(e) which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering the Act. The amendment assists the Board in licensing persons who are qualified. 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 December 21, 1992. TRD-9216859 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 12, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 Chapter 329. Licensing Procedure 22 TAC sec.329.1 The Texas State Board of Physical Therapy Examiners adopts an amendment to sec.329.1 concerning licensing procedure, with changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7568). The amendment allows the board to change from a norm based grading system for the national examination to a criterion based grading system. This will create a system of grading in which all licensees have to meet a certain standard of knowledge to pass the examination. Sets a limit on the validity of an evaluation of an applicant's educational credentials by a board-approved credentialing evaluator. The amendment assists the board in ensuring that all persons who are licensed are qualified. No comments were received regarding adoption of the amendment. The amendment is adopted under Texas Civil Statutes, Article 4512e, 3(e), which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering the Act. sec.329.1. Licensing Procedure. (a) (No change.) (b) Foreign trained. (1)-(2) (No change.) (3) Evaluations by board-approved education credentialing agencies are valid for the purpose of licensing in this state for no more than two years after the date of issuance. (c)-(d) (No change.) (e) Examination score requirements. All written examinations will be prepared by a Board-approved examination service. For any examinations given on or after January 1, 1993, a passing score will be determined by the Board for each examination. For all examinations given prior to January 1, 1993, a passing score will be determined by the Board for each examination. For all examinations given prior to January 1, 1993, a passing score shall be 1.5 standard deviations below the nationwide mean or higher. The applicant will be notified in writing of the scores and the pass or fail result. Upon receipt of notification of failure, the applicant is immediately ineligible to practice. If an applicant fails, the applicant will be required to complete the application for the next scheduled examination for a second temporary license to be considered. A second temporary license may be issued if score results meet requirements under Section 333.1 of this title. (f)-(k) (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 December 21, 1992. TRD-9216858 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 12, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 Chapter 333. Temporary License 22 TAC sec.333.4 The Texas State Board of Physical Therapy Examiners adopts new sec.333.4 concerning supervision of temporary license, without changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7569). The new section will allow the board to further ensure the health and well- being of clients receiving treatment from persons with temporary licenses. It requires on-site supervision of persons with temporary licenses by persons with permanent licenses. The new section assists the board in ensuring the safety of clients who receive services from persons with temporary licenses. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 4512e, 3(e), which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering 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 December 21, 1992. TRD-9216860 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: March 4, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 Chapter 343. Contested Case Procedure 22 TAC sec.sec.343.2, 343.4, 343.6, 343.9, 343.40, 343.41, 343.50 The Texas State Board of Physical Therapy Examiners adopts amendments to sec.sec.343.2, 343.4, 343.6, 343.9, 343.40, 343.41, and 343.50, concerning contested case procedures. Section 343.41 is adopted with changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7569). Sections 343.2, 343.4, 343.6, 343.9, 343.40, and 343.50 are adopted without changes and will not be republished. The amendments make the title agree with text; comply with House Bill 7 passed by 72nd Legislature; safeguard the public by allowing board to know if applicant has prior disciplinary action or if a licensee is convicted of a felony; limit those who attend an informal conference and prohibits recording of an informal conference; further define agreed orders; and make rules consistent with the Act. The amendments assist the board in enforcing the Act and rules and therefore safeguarding the public. No comments were received regarding adoption of the amendments. The amendments are adopted under Texas Civil Statutes, Article 4512e, sec.3(e), which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering the Act. sec.343.41. Agreed Orders. (a) An agreed order may be negotiated with any person under the jurisdiction of the Board, the terms of which shall be approved by the Investigation Committee or by the Executive Director. (b) To accept the agreed order, the respondent must sign it in the presence of a notary and return it to the Board within 10 days after receipt. Inaction by the respondent constitutes rejection. (c) The agreed order with the notarized signature of the respondent will be presented to the Board. The proposed agreed order shall have no effect until such time as the Board may, at a regularly scheduled meeting, take action approving the agreed order. (d) Consideration by the Board. (1) Any Board member who participated in the investigation of the complaint or formulation of the proposed agreed order may not participate in the Board review of the agreed order. (2) The name and license number of the licensee will not be made available to the Board until after the Board has reviewed and made a decision on the agreed order. (3) Upon an affirmative majority vote, the Board shall authorize the agreed order, and the chairperson of the Board will sign it. The Board-approved agreed order will be provided to the respondent. (4) If the Board does not approve the agreed order, it may consider the complaint at a contested case hearing, upon notice to the respondent named in the complaint. (e) Failure of the respondent to comply with any term of an agreed order is grounds for additional disciplinary action of the respondent by the board. 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 December 21, 1992. TRD-9216862 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 12, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 22 TAC sec.343.41 The Texas State Board of Physical Therapy Examiners adopts the repeal of sec.343.41 concerning agreed orders, without changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7570). The agency is repealing this section so that a more explicit section can be adopted. The repeal will enable a more explicit section to be adopted. No comments were received regarding adoption of the repeal. The repeal is adopted under Texas Civil Statutes, Article 4512e, 3(e), which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering 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 December 21, 1992. TRD-9216861 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 12, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 Chapter 345. Accessible Services 22 TAC sec.345.1 The Texas State Board of Physical Therapy Examiners adopts new sec.345.1 concerning accessible services, without changes to the proposed text as published in the October 27, 1992, issue of the Texas Register (17 TexReg 7570). The new section would state clearly that the agency will comply with the federal legislation, the Americans with Disabilities Act, so that all services provided by the board are accessible to persons with disabilities and that the agency complies with the employment provisions of this federal act. The new section will assist the board in providing accessible services to applicants, licensees, and the general public. No comments were received regarding adoption of the new section. The new section is adopted under Texas Civil Statutes, Article 4512e, 3(e), which provide the Texas State Board of Physical Therapy Examiners with the authority to adopt rules consistent with the Texas Physical Therapy Practice Act to carry out its duties in administering 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 December 21, 1992. TRD-9216857 Sherry L. Lee Executive Director Texas State Board of Physical Therapy Examiners Effective date: January 12, 1993 Proposal publication date: October 27, 1992 For further information, please call: (512) 443-8202 TITLE 34. PUBLIC FINANCE Part IV. Employees Retirement System of Texas Chapter 69. Membership and Refunds 34 TAC sec.69.9 The Employees Retirement System of Texas adopts new sec.69.9 concerning trustee of trustee transfers, without changes to the proposed text as published in the November 17, 1992, issue of the Texas Register (17 TexReg 8085). Effective on January 1, 1993, the Internal Revenue Code will require that the Employees Retirement System of Texas offer trustee-to-trustee transfers of eligible distributions from a qualified pension plan. The new rule will provide greater flexibility to employees regarding their pension plan and will enable the Employees Retirement System of Texas to transfer distributions to another qualified pension plan designated by the employee. No comments were received regarding adoption of the new section. The new section is adopted under the Texas Government Code, sec.815.102, which provides the Employees Retirement System of Texas with the authority to adopt rules for the administration of the funds of the retirement system. 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 December 21, 1992. TRD-9216888 Charles D. Travis Executive Director Employees Retirement System of Texas Effective date: January 12, 1993 Proposal publication date: November 17, 1992 For further information, please call: (512) 867-3336 Chapter 77. Judicial Retirement 34 TAC sec.77.13 The Employees Retirement System of Texas adopts new sec.77.13, concerning trustee of trustee transfers, without changes to the proposed text as published in the November 17, 1992, issue of the Texas Register (17 TexReg 8086). Effective on January 1, 1993, the Internal Revenue Code will require that the Employees Retirement System of Texas offer trustee-to-trustee transfers of eligible distributions from a qualified pension plan. The new rule will provide greater flexibility to employees regarding their pension plan and will enable the Employees Retirement System of Texas to transfer distributions to another qualified pension plan designated by the employee. No comments were received regarding adoption of the new section. The new section is adopted under the Texas Government Code, sec.840.002, which provides the Employees Retirement System of Texas with the authority to adopt rules and provide for forms it considers necessary for the administration of the retirement system. 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 December 21, 1992. TRD-9216889 Charles D. Travis Executive Director Employees Retirement System of Texas Effective date: January 12, 1993 Proposal publication date: November 17, 1992 For further information, please call: (512) 867-3336 Part IX. Texas Bond Review Board Chapter 190. Allocation of the State's Limit on Certain Private Activity Bonds Subchapter A. Program Rules 34 TAC sec.sec.190.1-190.5, 190.8 The Texas Bond Review Board adopts amendments to sec. sec.190.1-190.5, and 190. 8. Section 190.2 and sec.190.3 are adopted with changes to the proposed text as published in the November 17, 1992, issue of the Texas Register (17 TexReg 8086). Sections 190.1, 190.4, 190.5 and 190.8 are being adopted without changes and will not be republished. The Texas Bond Review Board adopts these previously published proposed sections to clarify the application process and require additional information to accompany an initial application for reservation. The Texas Bond Review Board amends these section to facilitate maximum efficiency in the usage of allocation for private activity bonds. Proposed sec.190.2(b) is being amended from the proposed wording to exclude applications for state voted issues from the second lottery which determines a reservation date for the applications receiving an initial reservation. These applications will receive a reservation date of the first business day after the first lottery. Proposed sec.190.3 is being amended from the proposed wording to include language to exclude the Texas Department of Housing and Community Affairs and the Texas Higher Education Coordinating Board from the maximum application amount of $50, 000,000. This additional language is to make sec.190.3(g)(4) consistent with Texas Civil Statutes, Article 5190.9a, sec.3(a). The proposed sections will clarify the application process and require additional information to accompany an initial application for reservation. A comment was received regarding the wording of sec.190.2(b). New language was suggested to exclude applications for state voted issues from the second lottery which determines a reservation date for the applications receiving an initial reservation. These applications will receive a reservation date of the first business day after the first lottery. A comment was received suggesting that the wording of sec.190.3(g)(4) should be consistent with the language of Texas Civil Statutes, Article 5190.9a, sec.3(a). Comments were received questioning the intent of proposed sec.190.1(c)(53) as is might apply to proceeds available from the repayment of student loans. It was determined that those proceeds would not be considered as "unexpended proceeds". Comments were received regarding sec.190.3. Some comments suggested more restrictive requirements for issuers of qualified residential rental project issues and some comments suggested less restrictive requirements for issuers of qualified residential rental project issues. Commenting against the sections were the following: Fulbright and Jaworski; Johnson and Gibbs; Texas Department of Housing and Community Affairs; The Prime Group, Inc; Small, Craig, and Werkenthin; T. J. Thompson and Associates. The amendments are adopted under Texas Civil Statutes, Article 5190.9a, which give the Texas Bond Review Board the authority to propose rules pertaining to the adoption, implementation, and administration of the allocation of the states ceiling on private activity bonds. sec.190.2. Allocation and Reservation System. (a) The state's ceiling shall be determined for each calendar year by the executive director based upon the most recent census estimate of the resident population of the state published by the Bureau of the Census prior to the beginning of such calendar year. The amount of the state ceiling shall be published in the Texas Register in the first January issue of each year. (b) On or after January 2, the board will accept applications for reservation from issuers authorized to issue private activity bonds. The board shall not grant a reservation to any issuer prior to January 10. If two or more issuers file an application for reservation of the state ceiling in any of the categories described in the Act, sec.2(b), the board shall conduct a lottery establishing the order of priority of each such application for reservation. Once the order of priority for all applications for reservation filed on or before January 10 is established, reservations for each issuer within the categories described in the Act, sec.2(b)(2)-(5) shall be granted in the order of priority established by such lottery. Each issuer of state voted issues granted a reservation initially shall be granted a reservation date which is the business day immediately following the date of such lottery. If more than 10 applications by issuers, other than issuers of state voted issues, are granted a reservation initially, an additional lottery will be held immediately to determine staggered reservation dates for such issuers. The order of priority for reservations in the category described in the Act, sec.2(b)(1), shall further be determined as provided in the Act, sec.3(c). (1) The first category of priority shall include those applications for a reservation filed by housing finance corporations which filed an application for a reservation on behalf of the same local population prior to September 1 of the previous calendar year, but which did not receive a reservation during such year. (2) The second category of priority shall include those applications for a reservation filed by housing finance corporations to which state ceiling could not be made available by August 31 for that calendar year because of the application of the Act, sec.4(b). (3) The third category of priority shall include those applications for a reservation not included in the first and second categories of priority. (4) Within each category of priority, reservations shall be granted in reverse calendar year order of the most recent closing of qualified mortgage bonds by each housing finance corporation, with the most recent closing being the last to receive a reservation and with those housing finance corporations that have never received a reservation for mortgage revenue bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot. (c) If any issuer which was subject to the lottery conducted as described above does not, prior to September 1 of that year, receive the amount requested by such issuer in its application for reservation filed on or before January 10, and if state ceiling becomes available on or after September 1 such issuer, subject to the provisions of the Act, sec.3(a), shall receive a reservation for any state ceiling becoming available on or after September 1 in the order of priority established by such lottery, without regard to the provisions of the Act, sec.3(c), relating to the order of priority for the category described in the Act, sec.2(b)(1). (d) All applications for a reservation filed after January 10 by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt. (e) An application for a reservation may not be submitted after December 14. (f) The amount of the state's ceiling that has not been reserved prior to December 15 and any amount previously reserved that becomes available on or after that date because of the cancellation of a reservation or any other reason, may be designated, by the board, as carryforward for the carryforward purposes outlined in the code through submission of the application for carryforward and any other required documentation. (g) An issuer may submit an application for carryforward to the board at any time during the year through the last business day in December. (h) Issuers will be eligible for carryforward according to the priority classifications listed in the Act. sec.190.3. Filing Requirements For Applications For Reservation. (a) Form. Applications must be filed on forms prescribed by the board and must contain all information and documentation required under the Act and this chapter, as applicable. (b) Application filing. The issuer shall submit one original and two copies of the application for reservation. Each application must be accompanied by the following: (1) the application fee; (2) the certificate regarding fees, on the form prescribed by the board; (3) a copy of the inducement resolution or other similar official action taken by the issuer with respect to the bonds and the project which are the subject of the application, certified by an officer of the issuer; or a copy of the certified resolution of the issuer authorizing the filing of the application for reservation; (4) a copy of the issuers articles of incorporation as certified by the secretary of state of Texas and by-laws, including amendments thereto and restatements thereof, or alternatively, a certification that there have been no amendments to the articles of incorporation or by-laws since the last submission of these items to the board; (5) a copy of the issuers certificate of continued existence from the secretary of state of Texas or a copy of the issuers certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application; (6) a statement by the issuer, other than an issuer of a state-voted issue, that the bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from a prior issue or issues of bonds issued by the same issuer; (7) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue, issued by the issuer or on behalf of the issuer for the same stated purpose for which the bonds are the subject of this application, a statement by the trustee as to the current amount of unexpended proceeds that exists for each such issue. The issuer shall certify to the current amount of unexpended proceeds that exists for each issue should a trustee not administer the bond issues; (8) if unexpended proceeds other than prepayments exist from a prior issue or issues of bonds, other than a state-voted issue, issued by issuer or on behalf of issuer for the same stated purpose for which the bonds are the subject of this application, a definite and binding financial commitment agreement which must accompany the application in such form as the board finds acceptable, to expend the unexpended proceeds within 12 months after the date of receipt by the board of an application for reservation. For purposes of this paragraph, the commitment by lenders to originate and close loans within a certain period of time shall be deemed a definite and binding agreement to expend bond proceeds within such period of time and any additional period of time during which such origination period may be extended under the terms of such agreement; provided however, that any such extension provision may be amended, prior to date on which the bond authorization requirements described in subsection (c) of this section must be satisfied, to provide that such period shall not be extended beyond 12 months after the date of receipt by the board of an application for reservation; (9) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue, issued by the issuer or on behalf of the issuer for the same stated purpose for which the bonds are the subject of the pending application, a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application to fulfill the requirements of the Act and that the agreement referred to in paragraph (8) of this subsection constitutes a legal and binding obligation of the issuer, if applicable, and the other party or parties to the agreement; (10) a written opinion of legal counsel, addressed to the board, to the effect that the bonds are required to be included under the state ceiling and that the issuer is authorized under the laws of the state to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference, the provision of the Constitution or law of the state which authorizes the bonds for the project; (11) a qualified mortgage bond issuer that submits an application for reservation as described in the Act, sec.3(c), shall provide a statement certifying to the most recent closing of qualified mortgage bonds or the most recent date of a reservation received for mortgage revenue bonds and state the governmental unit(s) for which the local population was based for the issuance of bonds or for receipt of a reservation; and (12) For a qualified residential rental project issue, an issuer that submits an application as described in the Act, sec.3(c), shall provide a copy of an executed earnest money contract between the borrower and the seller of the project. This earnest money contract must be in effect at the time of submission of the application to the board. (c) Bond authorization requirements. Not later than 35 calendar days after an issues reservation date, the issuer shall submit to the board: (1) one-third of the closing fee; (2) the certificate regarding fees, on the form prescribed by the board; (3) a certificate signed by the issuer that certifies the principal amount of the bonds to be issued or the portion of the state ceiling that will be converted to mortgage credit certificates; (4) a list of finance team members with their addresses and telephone numbers; (5) if applicable, an amended agreement pursuant to subsection (b)(8) of this section; (6) a bond authorization requirements checklist, on the form prescribed by the board. (d) Closing fee. The remaining two-thirds of the fee must be paid simultaneously with closing on the bonds. The issuer should submit the fee to the board not later than the fifth calendar day after the day on which the bonds are closed. (e) Closing documents. Not later than the fifth calendar day after the day on which the bonds are closed the issuer shall file with the board: (1) a certificate regarding fees, on the form prescribed by the board; (2) a closing documents checklist, on the form prescribed by the board; (3) a certificate of delivery on the form prescribed by the board; (4) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue; (5) if one is required, a copy of the approval of the governmental unit or governmental units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the code does not require such a public hearing and approval of a governmental unit or governmental units; (6) other documents relating to the issuance of bonds, including a statement of the bonds: (A) principal amount; (B) interest rate or the formula by which the interest is calculated; (C) maturity schedule; (D) purchaser or purchasers; and (7) an official statement; (8) for mortgage credit certificates the issuer shall file subsection (e)(1) and the following: (A) a certified copy of the issuer's resolution electing to convert state ceiling to mortgage credit certificates; (B) issuer's mortgage credit certificate election; and (C) program plan. (f) Additional information. The board may require additional information at any time before granting a certificate of reservation or certificate of allocation. (g) Application restrictions. (1) In order to submit an application for reservation prior to January 11 of the current year an issuer or borrower must have been in existence on January 1 of that current year. (2) Project substitutions will not be allowed after the application for reservation has been delivered to the board. (3) No issuer may submit an application for reservation for the same or substantially the same project or projects as are contained in the application of another issuer. (4) No issuer may submit an application for reservation in excess of $50,000,000 except for the housing finance division of the Texas Department of Housing and Community Affairs and the Texas Higher Education Coordinating Board. 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 December 21, 1992. TRD-9216835 Beverly S. Bunch Interim Executive Director Texas Bond Review Board Effective date: January 11, 1993 Proposal publication date: November 17, 1992 For further information, please call: (512) 463-1741 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 56. Family Planning Subchapter B. Client Rights and Eligibility The Texas Department of Human Services (DHS) adopts the repeal of sec.56.801; amendments to sec.56.201 and sec.56.401; and new sec.56.801 and sec.56.802. The amendment to sec.56.201 and new sec.56.801 and sec.56.802 are adopted with changes to the proposed text published in the October 30, 1992, issue of the Texas Register (17 TexReg 7656). The repeal of sec.56.801 and the amendment to sec.56.401 are adopted without changes and will not be republished. The amendments and new sections are justified to explain that DHS direct delivery staff will identify and refer clients to available family planning services, but in-depth outreach, information and education, supportive counseling, and follow-up are to be provided by family health services nurses and by contracted health providers. The amendments and new sections will function to make clear the roles of DHS's direct delivery staff, family health services nurses, and contracted health providers to provide mandated family planning services. No comments were received regarding adoption of the repeal, amendments, and new sections. DHS, however, is adopting an amendment and new sections with minor changes needed to make the sections clearer. In sec.56.201(a), DHS has added the word "promptly" in the first sentence to specify that family planning services will be both offered and provided promptly. Also, in the same sentence, DHS added the words "and current" to indicate that both former and current AFDC applicants will be offered and provided family planning services. DHS added the words "former and current" to the first sentence to clarify the category of recipients to receive family planning services. DHS added the words "of AFDC and current Medicaid recipients" to the first sentence to clarify the type of recipient to receive family planning services. DHS added the words "and arrangements" to the last sentence of sec.56.201(a) to clarify DHS worker responsibilities to make both referrals and arrangements for family planning services. In sec.56.801(b), DHS added the words "former and current AFDC" to clarify which recipients will receive family planning referrals and also DHS substituted the words "their family" with the words "AFDC household" to clarify that all members in the AFDC household are eligible to receive family planning services. In sec.56.802, DHS added the words "contracted health" to references to providers who provide family planning purchased counseling and education services to clarify that contracted health providers will provide in depth family planning services previously delivered by DHS direct delivery workers. 40 TAC sec.56.201 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs. sec.56.201. Prompt Service. (a) The Texas Department of Human Services (DHS) and contracted health providers are responsible for promptly offering and promptly providing family planning services to Aid to Families with Dependent Children (AFDC) households, former and current AFDC applicants, former and current AFDC recipients, and current Medicaid recipients. Federal regulations require that family planning services must be offered within 31 days after the first assistance payment (and at least annually thereafter) and must be arranged within 30 days after the client's request for services. Federal regulations further stipulate a penalty for failure to meet these requirements. DHS offers family planning services in writing with the first assistance check. Referrals and arrangements for family planning services are the responsibility of the DHS worker who receives the request. (b)-(c) (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 December 22, 1992. TRD-9216853 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: January 15, 1993 Proposal publication date: October 30, 1992 For further information, please call: (512) 450-3765 Subchapter D. Purchased Services 40 TAC sec.56. 401 The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 22, 1992. TRD-9216854 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: January 15, 1993 Proposal publication date: October 30, 1992 For further information, please call: (512) 450-3765 Subchapter H. DHS Direct Delivery of Family Planning Services 40 TAC sec.56.801 The repeal is adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 22, 1992. TRD-9216855 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: January 15, 1993 Proposal publication date: October 30, 1992 For further information, please call: (512) 450-3765 Subchapter H. Family Planning Program Services Provided by Texas Department of Human Services (DHS) Direct Delivery Staff, Family Health Services Nurses, and Providers 40 TAC sec.56.801, sec.56.802 The new sections are adopted under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs. sec.56.801. Direct Services Provided by Texas Department of Human Services (DHS) Direct Delivery Staff. (a) DHS direct delivery staff will describe family planning services available and how to get them, and explain that they are usually free, always confidential, and that their use is always voluntary and will not affect eligibility for any other health or social services program. (b) DHS direct delivery staff must promptly provide referrals, upon request, for clients to family planning service providers in accordance with 42 United Stated Code, sec.602(a)(15)(A) and Administrative Office and Program Instruction (AO-PI)-74-1 for all Medicaid recipients and former and current Aid to Families with Dependent Children (AFDC) applicants, former and current AFDC recipients, and AFDC household members. sec.56.802. Family Planning Services Provided by Texas Department of Human Services (DHS) Family Health Services Nurses and Contracted Health Providers. (a) DHS family health services nurses and contracted health providers offer and provide outreach, information and education, referrals, supportive counseling, and follow-up services. (b) DHS family health services nurses and contracted health providers offer and provide outreach to ensure that people who need and want family planning services are aware of the availability of these services. Outreach includes: (1) informing people about the availability of family planning services; (2) attending group meetings to inform interested people about the availability of family planning services; and (3) referring people to family planning educational services. (c) DHS family health services nurses and contracted health providers offer and provide educational services to present correct information about birth control and family planning, to alleviate fears and misunderstandings about the use of contraceptive methods, and to help clients who elect to accept contraception to choose a method. Client education includes: (1) informing clients, including minors and disabled individuals who may be considered to be sexually active, about family planning benefits, the reproductive process, contraceptive methods, and how to gain access to family planning services; (2) selecting organizations that are appropriate for the education sessions and contacting community leaders to promote interest in holding educational meetings; and (3) distributing printed materials and leading discussions about family planning services at various sites. (d) DHS family health services nurses and contracted health providers help clients use family planning services by making prompt and effective referrals for family planning services in accordance with 42 United States Code, sec.602(a)(15)(A) and Administrative Office and Program Instruction (AO-PI) -74- 1. This service includes: (1) informing clients about available sources for family planning medical services and other related services; (2) explaining eligibility and screening for eligibility for clients who want family planning services so appropriate referrals can be made; (3) informing clients of what to expect in a family planning clinic or facility; (4) ensuring that clients have transportation and child care services, if available, to enable them to attend family planning appointments; and (5) sharing, with the clients' permission, pertinent information with resources to which clients are referred. (e) DHS family health services nurses and contracted health providers offer and provide supportive counseling services to help clients deal with feelings that may interfere with appropriate choices and use of family planning services. This includes counseling about: (1) fears and anxieties concerning family planning methods; (2) solutions for family problems including counseling with the spouse to ensure effective use of the contraceptive method; (3) human sexuality concerns; (4) religious and cultural value conflicts with special attention to members of groups with high need of supportive counseling services; and (5) problem pregnancy (including referrals for pregnancy termination, prenatal care, and adoption), sexually transmitted infections, natural family planning, sterilization, and genetic problems. (f) DHS family health services nurses and contracted health providers follow up on family planning services to ensure the quality of services delivered to clients. Follow-up includes: (1) contacting clients regarding missed appointments with providers; (2) counseling clients about any difficulties encountered in using contraceptive methods; (3) assessing the care delivered to clients by providers and working with clients to resolve obstacles and differences. If indicated, arrangements must be made for referrals of clients to other providers. If several clients have problems with a single provider, a request must be made for a program review of the provider; and (4) periodically checking with clients to see if they are still receiving family planning services. 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 December 22, 1992. TRD-9216856 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Effective date: January 15, 1993 Proposal publication date: October 30, 1992 For further information, please call: (512) 450-3765