Proposed Sections Before an agency may permanently adopt a new or amended section, or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before any action may be taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive sections, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 7. BANKING AND SECURITIES Part II. Texas Department of Banking Chapter 25. Prepaid Funeral Contracts 7 TAC sec.25.18 The Texas Department of Banking proposes new sec.25.18 to provide the definitions of various terms and phrases used in proposed sec.25.19 and sec.25. 20. Ann Graham, general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. The public benefit anticipated as a result of the adoption of the rule as proposed will be to inform the public of various terms and phrases used in Texas Department of Banking Rules s25.19 and sec.25.20. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Graham, General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294. The new section is proposed under Texas Civil Statutes, Article 548b, sec.sec.2, 8 and 8A (Vernon Supplement 1992) which provide that the Department is authorized to prescribe reasonable rules concerning all matters incidental to the enforcement and orderly administration of Article 548b; to prescribe rules for the enforcement and orderly administration of Article 548b, s8(b); and to prescribe rules concerning maintaining a fund to guarantee performance by sellers of prepaid funeral contracts of their obligations to purchasers of prepaid funeral contracts. Ann Graham, general counsel, has determined that the proposed rule will have no local employment impact. sec.25.18. Definitions Applicable to sec.25.19 and sec.25.20.
    The following terms, when used in sec.25.19 and sec.25.20, shall have the following meanings, unless the context clearly indicate otherwise. Commissioner-The Commissioner of the Banking Department of Texas or the Commissioner's designee. Council or Guaranty Fund Advisory Council-The Prepaid Funeral Contract Guaranty Fund Advisory Council created by the Texas Banking Code, Article 548b, sec.8A(c), to supervise operation and maintenance of the Prepaid Funeral Contract Guaranty Fund. The Council consists of the Commissioner and Texas Attorney General, or their representatives, and one representative of the funeral industry appointed by the Commissioner. Department-The Department of Banking of Texas. Guaranty fund-The Prepaid Funeral Contract Guaranty Fund created, operated, and maintained pursuant to the Banking Code, Article 548b, sec.8A(c), to guarantee performance of prepaid funeral contracts. The Guaranty Fund arises from assessments on sellers of prepaid funeral contracts pursuant to the Banking Code, Article 548b, sec.8A(a), (Cf., definition of "seized funds"). Funeral provider -An individual, firm, partnership, corporation, or association licensed by the Texas Funeral Service Commission to provide funeral services and merchandise in the State of Texas. Maturity-The date of death of the purchaser or other person designated in the prepaid funeral contract for whom the funeral services and merchandise described in the prepaid contract are to be provided. Non-permit holder -An individual, firm, partnership, corporation, or association which is licensed by the Texas Funeral Service Commission to provide funeral services and merchandise in the State of Texas but which does not hold a permit to sell prepaid funeral services and merchandise in the State of Texas. Permit-A permit issued by the Commissioner pursuant to the Banking Code, Article 548b, sec.3 to an individual, firm, partnership, corporation, or association desiring to sell prearranged or prepaid funeral services and merchandise in the State of Texas. Permit holder-An individual, firm, partnership, corporation, or association that holds a permit to sell prearranged or prepaid funeral services and merchandise in the State of Texas. Prepaid funeral contract-A written contract and written amendments thereto, sold by a permit holder to provide prepaid funeral services and merchandise in the State of Texas. Prepaid funeral funds-Those funds paid or collected on prepaid funeral contracts, including earnings, and deposited as provided for in the Banking Code, Article 548b, sec.5(2). Purchaser-An individual who has purchased prepaid funeral services or merchandise in the State of Texas from a permit holder on a written contract. Seized funds-Funds arising from seizures of prepaid funeral contract funds the Banking Code, Article 548b, sec.8. Seized funds are separate from, and do not become part of, the Guaranty Fund. The Banking Code, Article 548b, sec.8(b), places seized funds under the sole control of the Commissioner for the benefit of the purchasers of prepaid funeral contract (Cf. , definition of "Guaranty Fund"). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 18, 1992. TRD-9216824 Ann Graham General Counsel Texas Department of Banking Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 475-1300 7 TAC sec.25.19 The Texas Department of Banking proposes new sec.25.19 to provide procedures for the Commissioner's selection of a permit holder or non-permit holder to service and perform those prepaid funeral contracts that are represented by the prepaid funeral funds seized by the Commissioner. Ann Graham, general counsel, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. The effect on state government: The Department anticipates that the effect on state government will be spending initially approximately 24 hours of staff time in implementing the rule. The staff will spend additional time on the following activities once a seizure occurs: the Department will notify purchasers of a cancellation; the Department may need to notify non-permit holders of a cancellation; the Commissioner will select a permit holder or non-permit holder to service and perform those prepaid funeral contracts that are represented by the prepaid funeral funds seized by the Commissioner; the agreement between the Department and the permit holder or non-permit holder selected by the Commissioner will need to be reduced to a contract; and the staff will prepare and present its analysis of the proposal selected by the Commissioner to the Guaranty Fund Advisory Council. The public benefit anticipated as a result of the adoption of the rule as proposed will be to guarantee performance by sellers of prepaid funeral contracts of their obligations to purchasers. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Ann Graham, General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294. The new section is proposed under Texas Civil Statutes, Article 548b, sec.2 and sec.8(b), (Vernon Supplement 1992), which provide that the Department is authorized to prescribe reasonable rules concerning all matters incidental to the enforcement and orderly administration of Article 548b and to prescribe rules concerning the enforcement and orderly administration of Article 548b, sec.8(b). Ann Graham, general counsel, has determined that the proposed section will have no local employment impact. sec.25.19. Seizure. (a) Notice to purchasers. Within 30 days of cancellation of a prepaid funeral contract permit and seizure of funds, the Department shall notify those who have purchased prepaid funeral contracts from the cancelled permit holder. The notice shall inform the purchasers of the cancellation and seizure. The notice shall also inform the purchasers as to where any future payments that may be due under the contracts should be forwarded and as to how funds can be released from the seized funds prior to selection of a successor permit holder. The Department shall also give the purchaser information as to how the contract may be cancelled should the purchaser wish to cancel it. (b) Bid list of licensed prepaid funeral contract sellers who wish to bid on prepaid funeral contract obligations of cancelled permit holders. The Department shall maintain a bid list of licensed prepaid funeral contract sellers who wish to bid on prepaid funeral contract obligations of cancelled permit holders. The Department shall add to or delete from the bid list the name of any licensed prepaid funeral contract seller upon its request. The Department shall purge the list by deleting the names of those whose permits are cancelled or surrendered. (c) Solicitation of bids. Within 60 days after cancelling a prepaid funeral contract permit, the Department shall notify those on the bid list of the cancellation. The notice shall include the name and address of the cancelled permit holder, the number and aggregate dollar amount of unperformed prepaid funeral contracts, the balance of unearned prepaid funeral funds, and the date by which sealed bid proposals must be submitted to the Department to assume the prior permit holder's obligations under the contracts and the right to receive the balances in the prepaid funeral fund accounts. The notice shall also include instructions as to how eligible potential bidders may inspect the cancelled permit holder's prepaid funeral contract records. The seized contracts will be bid on as a bloc rather than on an individual contract basis and the Commissioner shall have the discretion to combine contracts seized from more than one cancelled permit holder in a bloc for bidding and sale purposes. (d) Notice to non-permit holders. If no permit holder or only one permit holder submits a sealed bid to assume the prepaid funeral obligations, or if no permit holder bidding on the prepaid funeral obligations submits a bid acceptable to the Commissioner, the Department may invite bids from non-permit holder funeral providers located in the same vicinity as the cancelled permit holder. The notice shall include the same information as was contained in the notice to those on the eligible bid list and, in addition, shall inform the non- permit holder that it must apply for and obtain a permit from the Commissioner to sell prepaid funeral services or funeral merchandise in the State of Texas in the event that it receives the bid. The Commissioner may at her option solicit bids from non-permit holders at the same time as bids from the bid list of prepaid funeral contract permit holders are solicited. (e) Solicitation of bids on contracts which could not be placed with successor permit holders when originally seized. The Commissioner may also from time to time solicit bids on seized prepaid funeral contracts which were not placed with successor permittees at the time of seizure. (f) Procedures. After the deadline has expired for submitting sealed bids, the Commissioner shall select a successor to the cancelled permit holder. In the selection, the Commissioner shall consider: (1) If the bidder is also a current permit holder: (A) whether the bidder has demonstrated an ability to properly manage, maintain and account for its own prepaid funeral funds; (B) whether the bidder has properly remedied violations of law cited by the Department in its examination reports; (C) whether the bidder has a history of repeated or continuous violations; (D) whether the bidder has the capacity to deliver or cause to be delivered funeral services in the vicinity of the state in which the cancelled permit holder delivered funeral services and otherwise has the ability to perform the contracts of the cancelled permit holder; (E) whether the bidder poses any other significant regulatory concern; and (F) the amount of money in the cancelled permit holder's prepaid funeral funds, the amount of money offered for the prepaid funeral business, the current or potential claim against the Guaranty Fund and any other options the Commissioner may have, including, but not limited to, rejection of all sealed bid proposals received. (2) If the bidder is not also a current permit holder, the Commissioner shall consider, to the extent applicable, all of the factors listed above and: (A) the bidder's general reputation in the community where it is located; (B) whether the bidder's business ability, experience, character and general fitness warrant the confidence of the public; (C) any state or federal regulatory or law enforcement, administrative, or other action taken against the bidder; and (D) whether the bidder expresses a willingness to obtain a permit from the Commissioner to sell prepaid funeral services or funeral merchandise in the State of Texas and to abide by the statutes and rules governing such permits. (g) Selection by the commissioner. The Commissioner alone shall be responsible for the selection of a bidder to take over the prepaid funeral contracts and funds of a cancelled permit holder. No contract shall be made by the Commissioner which obligates the Guaranty Fund until after approval of the members of the Guaranty Fund Advisory Council has been given in a properly posted open meeting. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 18, 1992. TRD-9216825 Ann Graham General Counsel Texas Department of Banking Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 475-1300 TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 5. Transportation Division Subchapter B. Operating Certificates, Permits, and Licenses 16 TAC sec.5.28 The Railroad Commission of Texas, pursuant to a petition filed by PPG Industries, Inc., proposes an amendment to sec.5.28 concerning specialized motor carriers of petroleum products. The amendment as proposed would add acid chlorides and chloroformates to the list of products that are liquid derivatives of hydro-carbons, and which may therefore be transported by motor carriers authorized to transport petroleum products. Jackye Greenlee, assistant director-central operations, has determined that for the first five-year period the rule as proposed will be in effect, there will be no fiscal implications for state or local governments as a result of the proposed amendment. E. A. Galvan, hearings examiner, has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing this section will be that the list of petroleum products will be more complete. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the ru] e as proposed. Comments may be submitted to E. A. Galvan, Hearings Examiner, Legal Division, Railroad Commission of Texas, P. O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register . The amendment is proposed under the Texas Motor Carrier Act, Texas Civil Statutes Article 911b, which authorizes the Commission to prescribe rules and regulations for the operations of motor carriers. sec.5.2. Specialized Motor Carriers of Petroleum Products. (a) For the purpose of interpreting motor carrier operating authority, the following commodities are established as liquid derivatives of hydro-carbons and are petroleum products. Absorption oil Absorption oil distillate Acetal Acetaldehyde Acetic Acid Acetic anhydride Acetone Acetylene Acid Chlorides Acrolein Acrylonitrile Agricultural spray oil (insecticides) Alcohol: Allyl Amyl Butyl (normal Butyl (secondary) Ethyl Ethyl butyl Ethyl hexl Denatured (ethanol) Hexyl Isoamyl Isobutyl Isopropyl Methally Methyl (methanol) Methyl (amyl) Octyl Propyl Specially denatured Alkyl-pyridine Allyl chloride Amyl acetate Amyl chloride Anhydrous ammonia Anti-freeze Aqua ammonia Aromatic distillate Asphalt Asphalt cutback Belt oil Diacetone Benzene Butadiene Butane Butanol (butyl alcohol normal) Butene Butylene Butylene glycol Butyl acetate Butyl acetate secondary Captan Carbon tetrachloride Chloroform Chloroformates Coal spray oil Commercial cyclohexane Compressor oil Cordage oil Core oil Crude oil Crude wax Cutting oil Cyanhydrine Cyclohexane D.D.T. (technical) Decahydronaphthalene Detergents Benzaldehyde Dodecylbezene Dodecyltoluene Drain oil Drip oil Durene Epichlorohydrin Ethane Ethyl: Acetate Acetoacetate Benzene Chloride Ethyl chloride "Ethyl" fluid Ethylene Ethvlene amines Ethylene diamine Ethylene dibromide Ethylene dichloride Ethylene oxide Ethylhexenol Ethylidene dichloride Fertilizer ammoniating solution Floor oil Formaldehyde Formalin Diallyl phthalate Diamyl naphthalene Dichlorethylether Dichloroisopropyl ether Diesel oil Diethanollamine Diethyl benzene Diethyl carbinol Diethyl carbonate Diethyl phthalate Diethyl sulfate Diethylene ether Diethylene glycol Diisobutylene Dimethyl formamide Dimethyl phthalate Dimethylamine Dinonyl phenol Dipropylene glycol Glycerin Glycerol Glycerol dichlorohydrin Glycol: Diacetate Diethylene Diformate Fuel, jet Fuel oil: Bunker c Commercial medium Distillate Residual #4 Commercial #4 Low sulphur #5 Cold #5 Low sulphur #5 Oil #6 Oil #41 Commercial #741 Oil Gas, liquefied petroleum Gas, oil Gasoline, natural or blended Gasoline, synthetic Mesityl oxide Methanol (methyl alcohol) Methyl acetate Methyl acetoacetate Methyl acetone Methyl amyl acetate Methyl amyl carbinol Ethylene Propylene Propylethylene Triethylene Hexylene Polyethylene Harness oil Heptane Heane Ink oil Insecticides Insulating oil Iso-butane Iso-pentane Isobutyl acetate Isobutylene Isophorene Isopropanol Isopropyl acetate Isopropyl alcohol Isopropyl ether Kerosene Ketone Diisobutyl Methyl butyl Methyl ethyl Methyl chloroform Methyl chloride Methyl ethyl ketone Methyl ethyl-pyridine Methyl isobutyl Methyl isobutyl carbinol Methyl isobutyl ketone Methylene chloride Methylethyl benzene Mineral oil Mineral spirits Miners oil Monochlorobenzene Monoethanolamine Mould oil Naphtha Naphthalene Neutral oil Nitrogen fertilizer solution Nonyl phenol Octanes Octyl acetate Octyl aldehyde Orthoxylene Paint oil Paraffin wax Paraformaldehyde Methyl isobutyl Methyl isopropyl Methyl-normal-amyl Methyl propyl Methyl vinyl pyridine Leather oil Liquid elemental sulphur Liquid fertilizer compounds that are petroleum-product based Liquid latex Liquid soap Liquid sulphur Lubricating oil Phorone Pipe coating oil Polyethylene glycol Polyglycol Polythene Polyvinyl chloride Propane Propeller oil Propyl acetate Propyl aldehyde Propyl formcel Propylene Propylene chlorehydrin Propylene dichloride Propylene glycol Parapoil (heavy oil) Paraxylene Pentane Perchlorethylens Petrolatum Petroleum: Acid Fatty acid Jelly (petrolatum) Oil Cumene Vinyl acetate Vinyl chloride Vinylidene chloride Vinylidene dichloride Waste oil Wax Wax distillate Wax tailings White oil Wool oil Xylene Xylidine Nitroxylene Propylene oxide Propionic acid Pseudocumene Quenching oil Range oil Refined oil Refined wax Refined still bottoms Secondary butyl acetate Snow extender oil Soap oil Solvesse 100 and 150 Stoddard solvent (white spirits) Styrene Styrene-butadiene latex Tanner's oil Tetraethylene glycol Tetrahydronaphthalene Tetrapropylene Toluene Toluol (toluene) Transformer oil Trichlorethane Trichlorethylene Trichlorobenzene Trichloropropane Triethanolamine Triethylene glycol Tripropylene glycol Turbine oil Urea (b) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 21, 1992. TRD-9216828 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Proposed date of adoption: February 1, 1993 For further information, please call: (512) 463-7094 Chapter 9. Liquefied Petroleum Gas Division Subchapter A. General Applicability and Requirements 16 TAC sec.sec.9.2, 9.4, 9.15, 9.28, 9.29 The Railroad Commission of Texas proposes amendments to ssec.9.2, 9.4, 9. 15, 9.28, and 9.29, concerning definitions, additional licensing requirements, LP- gas report forms, public hearing, and filings required for LP-gas installations. The commission proposes amendments to sec.9.2 in order to add three new definitions of terms. The amendments to sec.9.4 further explain licensing requirements and allow for the submission of a new LPG Form 505, Category B/O Testing Procedures Certification, by Category B and O licensees in lieu of written testing procedures. Amendments to sec.9.15 clarify the names of certain LP-gas report forms, and lists new forms. The amendments to sec.9.28 modify the current requirement of notifying all real property owners within 500 feet of certain expansions of existing LP-gas installations. The revisions require all affected real property owners to be notified if the existing installation is more than doubling in size, or if the commission or division director determines notification is necessary. The proposed amendments to sec.9.29 eliminate the current requirement for filing plans and specifications for installations of under 10,000 gallons at schools, convalescent homes, or retail cylinder filling plants/service stations with the LP-gas division for tentative approval. Instead, the licensee would have the responsibility for ensuring that the installation is in total compliance with the applicable rules and regulations, including licensing. After the installation is complete the licensee would be required to submit a form to the division certifying the installation's compliance. If the initial inspection at a school, convalescent home, hospital, or retail LP-gas cylinder filling/motor fuel service station reveals any LP-gas statute or safety rule violations, the installation would immediately be removed from service until the violations are corrected. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state or local government or small businesses as a result of enforcing or administering these sections; however, due to the nature of the proposed changes, it is impossible to specify the amount of that impact. Mr. Petru also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be an increase in compliance due to more clearly understandable rules, a more efficient license application process, and an increase in safety afforded to the general public due to the updated and revised safety requirements. There is an anticipated economic cost to persons required to comply with the proposed sections; however, due to the nature of the proposed changes it is impossible to specify the amount of that impact. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Natural Resources Code, sec.113. 051 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the LP-gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.9.2. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Aggregate water capacity-The total amount of water in pounds or gallons of one or more LP-gas containers in a battery at an installation. When necessary the determination as to what constitutes aggregate water capacity will be made by the division director. Commercial installation -Any installation or building where the public conducts business on the premises, which includes all installations such as, but not limited to, installations at a school, convalescent home, hospital, retail LP-gas cylinder filling/service station, forklift, forklift cylinder exchange, private motor/mobile fuel and cylinder filling installation. A final determination as to what constitutes a commercial installation will be made by the division director. School-A public or private (non-public) institution which has been accredited through the Texas Education Agency or the Texas Private School Accreditation Commission. [Public building -Any building where the public conducts business on the premises which includes all commercial installations such as, but not limited to, forklift, private motor fuel, and cylinder filling installations. A final determination as to what constitutes a public building will be made by the director.] sec.9.4. Additional Licensing Requirements [for Testing]. (a) In addition to the other licensing requirements set out in the Texas Natural Resources Code and the LP-Gas Safety Rules, an applicant for a
      [any] Category [A,] B[,] or O license or renewal shall have on file with the division a properly completed LPG Form 505, Category B/O Testing Procedures Certification. The LPG Form 505, must be properly signed by the LP-gas company representative(s) designated on the applicable LPG Form 1, Application for License.
        [licensee that proposes to determine the safety of an LP-gas container for LP-gas service in the State of Texas shall submit for division approval a written detailed test manual covering all testing activities. Also, any testing laboratory currently registered with the division or any Category A, B, or O licensee that seeks to obtain or renew an LP-gas license must submit its manual for division approval prior to the issuance or renewal of the applicable license. Any revisions to a test manual must be submitted and approved prior to implementation.] Procedures for hydrostatic testing must include the use of a calibrated pressure chart recorder. Any additional
          reasonable material may be required by the commission or division director in connection with this subsection
            [division approval]. [(b) The registration for testing laboratories registered with the division on or prior to August 26, 1991, shall continue in effect until August 26, 1992, unless such registration is revoked following a formal hearing. Such registration will expire automatically on August 26, 1992, and an applicable license will be required for any continued testing activities. All testing laboratories operating under the extended registration prescribed by this section must comply with the insurance requirements pertaining to Category A licensees as set out in the Texas Natural Resources Code, sec.113.097 and sec.113.099, except that no products liability insurance is required. All certificates filed are subject to the insurance conditions of the Texas Natural Resources Code, sec.113.098.] (b) An applicant for a Category A license or renewal of Category A license shall have on file with the division a legible copy of his or her current American Society of Mechanical Engineers (ASME) certificate and/or Department of Transportation (DOT) authorization. (1) The licensee shall ensure that his or her ASME certificate and/or DOT authorization is filed with the LP-Gas Division prior to the expiration date of the current certificate or authorization. The division director may grant an extension not to exceed 60 calendar days if ASME or DOT is unable to issue a certificate or authorization renewal prior to the expiration date of the current certificate or authorization provided the licensee's request is received by the division director prior to the expiration date of the current certificate or authorization and the licensee includes a statement from ASME or DOT that ASME or DOT is unable to issue the renewal certificate or authorization and that ASME or DOT will be granting a temporary extension to the current ASME certificate or DOT authorization. Granting of a temporary extension by ASME or DOT does not guarantee the granting of a temporary extension by the division director. (2) If the licensee fails to comply with the requirements of this section the commission or division director may move to call a hearing to show cause why the Category A license should not be suspended or revoked. sec.9.15. LP-Gas Report Forms. Under the provisions of the Texas Natural Resources Code, Chapter 113, the Railroad Commission of Texas has adopted by reference the following forms for use by the Liquefied Petroleum Gas (LP-Gas) Division. These forms are available to the public upon request to the LP-Gas Division in Austin. (1)-(22) (No change.) (23) LPG Form 500A
              [500a]. Notice of LP-Gas Installation; (24) LPG Form 501. Completion Report for Commercial Installations of Less Than 10,000 Aggregate Water Gallon Capacity; [(25) LPG Form 502. Application for Liquefied Petroleum Gas Equipment and Component Approval;] (25)
                [(26)] LPG Form 503. Application to Install a LP-Gas System on School Bus/Mass Transit Vehicles; (26)
                  [(27)] LPG Form 504. Notice of Subsequent Installation or Conversion [by the same Ultimate Consumer or Licensee]; (27) LPG Form 505, Category B/O Testing Procedures Certification; (28)-(34) (No change.) sec.9.28. Public Hearing. (a) (No change.) (b) Notice of the proposed installation. Any application for tentative
                    approval of an
                      LP-gas installation [(LPG Form 500) which is received at the Austin office of the LP-Gas Division on or after January 1, 1988], which pertains to a [new] stationary LP-gas installation of 10,000 gallons or more aggregate capacity, [or an addition to an existing facility whose aggregate capacity will be 10,000 gallons or more when complete, ] shall ensure that an LPG Form 500A, Notice of Proposed LP-Gas Installation
                        [notice of the proposed installation, (LPG Form 500a)] is sent to all owners of real property situated within 500 feet of the proposed container
                          [tank] location. The LPG Form 500 shall be submitted to the LP-Gas Division at the same time the Form 500A is mailed to the real property owners.
                            Sufficient notice shall be deemed given when the applicant has provided evidence that an
                              LPG Form 500A
                                [500a] has been sent to all such real
                                  property owners whose names and addresses may be determined upon diligent investigation of readily available sources of information. If such owners are not determinable as set out in this subsection, the applicant may send an
                                    LPG Form 500A
                                      [500a] to all persons shown as owners on the current county tax rolls. Unless deemed necessary by the commission or division director, real property owners do not need to be notified of an addition to an existing LP-gas facility of 10, 000 aggregate water gallon capacity or greater provided the aggregate water gallon capacity is not more than doubled. The real property owners must be notified of an addition if the aggregate capacity of the installation is increased more than once in a 12-month period.
                                        [Exception:] Applicants submitting an LPG Form 500, Application for Tentative Approval [of LP-Gas Installation], for installation of LP-gas containers of 10,000 water gallon capacity or greater used as a fuel storage supply for asphalt heating at "hot-mix" plants or sites for asphalt paving, need not file the LPG Form 500A
                                          [500 a], Notice of Installation, provided proof is submitted to the division that such "hot-mix" operations will not exceed two years
                                            [one year] at the specified location, and that fire marshal approval has been obtained if operations are within a city's limits or the extra-territorial jurisdiction of a city. (c) Tentative approval considered. Each real property owner receiving notice shall have 18 days from the date of mailing of the notice to submit an objection in writing to the division. An objection is not deemed filed until it is actually received at the Austin office of the LP-Gas Division. The director of the division may grant tentative approval if each real property owner as described
                                              in this subsection has been given notice as certified by the applicant on LPG Form 500, even though objections have been received. Tentative approval may be granted by the director of the LP-Gas Division if he determines that the application meets all applicable rules of the LP-Gas Division, all applicable statutes of the State of Texas, and that the construction of the installation does not appear to
                                                constitute a danger to the public health, safety, and welfare. If tentative approval, as defined herein, is granted, the applicant may begin construction of the proposed facility at its own risk that final approval may not be granted. If the installation is constructed so as to require the notification of additional real property owners or if the installation materially varies from the original submission tentative approval may be revoked by the commission or division director. If tentative approval is revoked, all construction must cease until tentative approval is again granted by the division director following a new application and renotification of all adjoining property owners within the 500 foot radius. (d)-(f) (No change.) (g) Commission orders. Following a public hearing, if the commission finds that the proposed installation is in accordance with the LP-gas safety rules, the statutes of the State of Texas, and that the installation does not constitute a danger to the public health, safety, and welfare, an order shall be issued granting interim approval. Any grant of interim approval will include a provision that such approval may be suspended or revoked if a physical inspection of the installation is not conducted by the division prior to the introduction of LP-gas or if a physical inspection of the installation indicates that it is not installed in accordance with the LP-gas safety rules, or the statutes of the State of Texas, or that the installation constitutes a danger to the public health, safety, and welfare. Following the physical inspection of the installation by the division, if the installation is found to be in accordance with the plans and specifications approved by interim order, and is in compliance with the LP-gas safety rules, the statutes of the State of Texas, and the installation does not constitute a danger to the public health, safety, and welfare, then the commission or the division director, if so delegated by the commission,
                                                  shall issue an order granting final approval. If no objection is filed to the proposed installation, final approval may be granted by the division director upon a similar finding and with a similar provision. sec.9.29. Filings Required for LP-Gas Installations. (a) Prior to the installation of any LP-gas container [at a school, convalescent home, hospital, retail LP-gas cylinder filling/motor fuel service station, or any LP-gas container] installation which would result in an aggregate water capacity of 10,000 gallons or more, plans and specifications for the [complete LP-gas] installation must be submitted on LPG Form 500, Application for Tentative Approval [of LP-Gas Installation], to the LP-Gas Division for tentative approval. Tentative approval must be obtained prior to the setting of the LP-gas container and prior to construction of the LP-gas installation. The LP-Gas Division must be notified prior to implementation of any field alterations or additions during construction (except maintenance and repairs) that may necessitate resubmission of plans and specifications for reapproval consideration. [No LP-gas shall be introduced into any LP-gas container at a school, convalescent home, or hospital that has not been granted final approval by the division.] Except as provided following no
                                                    [No] LP-gas container may be placed into LP-gas service until after final approval has been granted [by the division]. No LP-gas container may be placed into LP- gas service until after final approval has been granted by the division. When there is an immediate need for LP-gas supply under emergency circumstances,
                                                      the commission or
                                                        division director may waive the requirement for [final inspection and] final approval for a reasonable time period prior to introduction of a reasonable amount of LP-gas into the container and placement of such container into LP-gas service. The applicant shall notify the division in writing when the installation is ready for inspection.
                                                          Final approval will follow a physical inspection of the completed installation, which indicates that it was installed in accordance with the tentatively
                                                            approved plans and specifications and was installed in full compliance with all applicable LP-Gas Safety Rules. If the division does not physically inspect the facility within 30 calendar days of receipt of written notice that the facility is ready for inspection, the facility may operate conditionally until the initial inspection is made. If any safety rule violation exists at the time of the initial inspection, the installation shall not continue to operate until final approval is granted.
                                                              The division will review all applications within 21
                                                                [45] calendar days of receipt of the application. The division must mail written notification to the applicant of whether the application is accepted, rejected, or still under review within the 21
                                                                  [45] calendar day period. An application is not accepted (i.e., in compliance) until the applicant has received written notification of the acceptance. (b) (No change.) [(c) An LPG Form 501, Completion Report, may be filed in lieu of submission of plans and specifications for LP-gas container replacement at a school, convalescent home, hospital, or at retail LP-gas cylinder filling and motor fuel service stations, provided the replacement container: [(1) has an aggregate water capacity of less than 10,000 water gallons; and [(2) is installed in the exact same location; and [(3) where the new aggregate water capacity will not increase the minimum distance requirements to buildings and property lines under sec.9.65 of this title (relating to LP-Gas Storage Distance Requirements). Such filing must be made in accordance with the applicable subsection(s) of this section.] (c)
                                                                    [(d)] LPG Form 500, Application for Tentative Approval, LPG Form 500A
                                                                      [500a], Notice of Proposed
                                                                        LP-Gas Installation, and LPG Form 501, Completion Report for Commercial Installations of Less Than 10,000 Aggregate Water Gallon Capacity,
                                                                          including plans and specifications, are not required prior to installation of bulkheads , pull-away devices,
                                                                            and emergency shutoff valves (ESV's) or when maintenance and improvements are being made to the piping system at existing LP-gas installations having an aggregate water capacity of 10,000 water gallons or more which have been previously approved
                                                                              [bulk storage, retail cylinder filling and motor fuel service stations, schools, convalescent homes, and hospitals which have been previously approved]. The commission or division director may require the submission of plans and specifications when deemed necessary to ensure compliance with applicable LP-Gas Safety Rules. (d)
                                                                                [(e)] Prior to the installation of any individual LP-gas container referenced in subsection (a) of this section in a heavily populated or congested area, the director shall determine whether the proposed installation poses a threat to the health, safety, and welfare of the general public. The LP-Gas Division shall determine restrictions on LP-gas container capacities in accordance with the following: (1)-(9) (No change.) (10)
                                                                                  [(f)] if the division director declines to
                                                                                    administratively [to] approve the installation, the applicant shall be notified in writing. The applicant may modify the submission and resubmit for approval, or may request a hearing on the matter in accordance with the general rules of practice and procedure of the commission. The proposed installation shall not be operated or used in LP-gas service in this state until approved by the commission or by the division director following a hearing. (e)
                                                                                      [(g)] After installation of any LP-gas container having an aggregate water capacity under 10,000 gallons at a commercial installation
                                                                                        [public building] as defined in sec.9.2 of this title (relating to Definitions), an LPG Form 501, Completion Report for Commercial Installations of Less Than 10,000 Aggregate Water Gallon Capacity,
                                                                                          must be [submitted to the LP-Gas Division] postmarked within 10 calendar days after completion of the LP-gas installation and submitted to the LP-Gas Division.
                                                                                            No LP-gas shall be introduced into any LP-gas container that is not installed in accordance with the statutes of the State of Texas, or with the LP-Gas Safety Rules in effect at the time of installation. The submission of the LPG Form 501 will indicate that the installation is in total compliance with the statutes and LP-Gas Safety Rules that any necessary LP-gas licenses have been issued, and that the installation has been laced in LP-gas service. After receipt of an LPG Form 501, Completion Report for Commercial Installations of Less Than 10,000 Aggregate Water Gallon Capacity, an inspection will be conducted as soon as possible to determine if the installation described is in compliance with the LP-Gas Safety Rules. At the time of the first inspection at a school, convalescent home, hospital, retail LP-gas cylinder filling/motor fuel service station if any LP-Gas statute or safety rule violation exists, the subject container, including any piping, appliances, appurtenances or equipment connected to the LP-gas container will be removed immediately from LP-gas service until the installation is in total compliance with LP-Gas Safety Rules. The person(s) or entity submitting the LPG Form 501 will be subject to whatever enforcement action deemed appropriate. If, in the opinion of the commission or division director, an LP-gas licensee has a history of violating this subsection the commission or division director may require the affected LP-gas licensee to submit plans and specifications for future LP-gas installations. The affected LP-gas licensee shall be notified in writing of this finding. The LP-gas installations covered by the plans and specifications shall be inspected prior to the installation being placed into LP-gas service. The commission or division director may allow the affected LP-gas licensee to resume submitting LPG Form 501's. The affected LP-gas licensee shall be notified in writing of this finding. (f)
                                                                                              [(h)] An LPG Form 5,
                                                                                                [A] Manufacturer's Data Report,
                                                                                                  [(LPG Form 5),] LPG Form 8,
                                                                                                    Manufacturer's Report of Pressure Vessel Repair, Modification or Testing ,
                                                                                                      [(LPG Form 8),] and any other documentation pertinent to establishing installation compliance with the safety rules must be submitted when requested by the division. (g)
                                                                                                        [(i)] A nonrefundable fee of $25 shall be submitted with each LPG Form 500 submitted [set of plans and specifications as required by the applicable subsections of this section relating to the installation of container(s)]. A nonrefundable, resubmission fee of $15
                                                                                                          [5.00] shall be included with each incomplete or revised set of plans and specifications resubmitted. (h)
                                                                                                            [(j)] A nonrefundable fee of $5.00 shall be submitted with each LPG Form 501, Completion Report for Commercial Installations of Less Than 10,000 Aggregate Water Gallon Capacity
                                                                                                              [,] as required by the applicable subsection(s) of this section for each LP-gas container or cylinder.
                                                                                                                A nonfundable resubmission fee of $11
                                                                                                                  [$5.00] shall be included for each LP-gas form
                                                                                                                    [LPG Form 501] resubmitted. (i)
                                                                                                                      [(k)] An application
                                                                                                                        [If an applicant] for a Category F, G, or I license or for a multiple category license that includes a Category F, G, or I license, which includes
                                                                                                                          [submits] plans and specifications, as required bY subsection (a) of this section,
                                                                                                                            [for a retail LP-gas cylinder filling and/or motor fuel service station, the license to operate shall not be issued until] will not be granted
                                                                                                                              tentative approval [has been granted] by the division until
                                                                                                                                [even if] all other licensing requirements have been met. For any multiple category licensee wishing to have part of the license issued not pertaining to the operations of a retail LP-gas cylinder filling and/or motor fuel service station, the applicant must specifically indicate intent not to install or operate such installation until plans and specifications have been submitted and tentative approval granted. Final approval will follow a physical inspection of the completed installation in accordance with applicable subsection of this section. Note: The intent of this subsection is to eliminate misunderstanding between a prospective licensed operator and licensed installer. (j)
                                                                                                                                  [(l)] When an applicant is notified of an incomplete LPG Form 500, Application for Tentative Approval of LP-Gas Installation, or LPG Form 500A
                                                                                                                                    [500a], Notice of LP-Gas Installation, the applicant has 120 calendar days from the date of the notification letter to resubmit with the deficiencies corrected or the original application will expire. A new application must be filed should the applicant wish to reactivate division review of the proposed LP-gas site. However, if the applicant notifies the division in writing, which must be postmarked before the expiration date, and requests an extension of the time following the 120 calendar days, the application may be renewed for an additional number of days stipulated by the division director. (k)
                                                                                                                                      [(m)] If the tentatively approved installation is not completed within one year from the date original approval was granted, the applicant must notify the division in writing prior to the date of expiration and either request withdrawal of the original application or request an extension of time to complete the installation. The division director shall make final determination on the request for extension of time. If the applicant fails to request an extension of time or withdrawal of the original application within the time period prescribed in this subsection, the applicant will be required to submit a new application if the originally proposed installation is to be installed. If the division director or his delegate determines the completed installation varies materially from the application originally accepted, resubmission of the application for tentative approval may be required. The division's review of such resubmitted application will follow the described procedure in this subsection. (m)
                                                                                                                                        [(n)] It is the applicant's responsibility to notify the LP-Gas Division when the installation is complete and is ready for inspection in order to determine if final approval may be granted. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216873 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 Subchapter B. Basic Rules 16 TAC sec.9.33, sec.9.69 The Railroad Commission of Texas proposes amendments to s9.33 and sec.9. 69, concerning authorized containers and grounding and electrical fields. The commission proposes amendments to sec.9.33 to clarify changes in the rules and to clarify that DOT LP-gas containers shall be manufactured, tested, and inspected in accordance with DOT regulations and specifications. Further amendments eliminate the need for LP-gas container manufacturers to submit plans and specifications for containers. The commission proposes amendments to sec.9.69 to eliminate unnecessary and overly restrictive requirements. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Petru also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There is an anticipated economic cost to persons required to comply with the proposed sections; however, due to the nature of the proposed changes, it is impossible to specify the amount of that impact. Comments on the proposals may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Natural Resources Code, sec.113. 051 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the LP-gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.9.33. Authorized Containers. (a) American Society of Mechanical Engineers (ASME)
                                                                                                                                          [ASME] containers. Any ASME container identified as such by a manufacturer's original or replacement
                                                                                                                                            nameplate is authorized for use in this state
                                                                                                                                              in accordance with the
                                                                                                                                                applicable rules of the Liquefied Petroleum Gas Division, including s9.40 of this title (relating to Manufacturer's Nameplates and Markings on ASME Containers),
                                                                                                                                                  upon submission of filings required by subsection (b) of this section. (b) Manufacturer's data report [and plans and specifications]. (1) Submission [and content]. Manufacturers of liquefied petroleum gas [containers or] unfired pressure vessels shall submit [to the Railroad Commission a] an LPG Form 5, Manufacturer's Data Report, to the commission for each LP-gas container sold for use in the State of Texas within 14 calendar days after the sale of the container(s)
                                                                                                                                                    [manufacturer's data report and plans and specifications for the fabrication assembly, and installation (where applicable) of each such container or vessel]. The manufacturer's data report [and the plans and specifications] shall be complete in all details necessary to fully describe and illustrate, respectively, the fabrication, and
                                                                                                                                                      assembly for each container or containers described on the manufacturer's data report
                                                                                                                                                        [and (if applicable) the installation thereof]. [(2) Certification by manufacturer. The manufacturer of a liquefied petroleum gas container or unfired pressure vessel used to transport, store, or dispense liquefied petroleum gas shall certify on the plans and specifications thereof that, at the time of manufacture, the plans and specifications met or exceeded the requirements of the current edition of the American Society of Mechanical Engineers, Boiler and Pressure Vessel Code, Division 1, Section VIII, and the rules of the commission pertaining thereto.] (2)
                                                                                                                                                          [(3)] Exception
                                                                                                                                                            [Exceptions]. [(A) Manufacturer's data report available. Where plans and specifications for a container presently in existence are unavailable or do not meet the requirements of paragraph (1) or (2) of this subsection, that container is authorized for use in accordance with applicable rules upon submission of a manufacturer's data report which meets the requirements of paragraph (1) of this subsection. [(B) Certification by testing laboratory. [(i) Manufacturer's data report unavailable.] Where the manufacturer's data report is required by the commission but is
                                                                                                                                                              unavailable or does not meet the requirements of paragraph (1) of this subsection, a testing laboratory licensed by [or registered with] the Railroad Commission of Texas shall test the affected container or vessel and, prior to its use in the transport or storage of LP-gas in the State of Texas (other than that which may be incidental to such testing), the laboratory shall submit its certification to the Railroad Commission that the container or vessel is safe for LP-gas service. [(ii) Manner of testing. As necessary, in] In
                                                                                                                                                                order to determine the safety of the container or vessel for LP-gas service, testing shall be by one or more ASME recognized testing methods as determined by the commission or division director. sec.9.69. Grounding and Electrical [Fields]. (a) (No change.) (b) Electrical installations within the vicinity of LP-gas storage containers or LP-gas transfer, handling, or dispensing equipment shall be in accordance with the National Electric Code (NEC) for Class 1, Electrical Group D: Hazardous Locations. The vicinity of storage containers or equipment is that area indicated by the following chart: [graphic] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216872 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 16 TAC sec.9.36 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes to the repeal of existing sec.9. 36, concerning approval of valves, fittings, and equipment, in order to clarify the rules. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Petru also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The repeal is proposed under the Texas Natural Resources Code, sec.113.051 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the LP-gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.9.36. Approval of Valves, Fittings, and Equipment. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216871 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 The Railroad Commission of Texas proposes new sec.9.36, concerning appurtenances and equipment. New sec.9.36 is proposed to provide that all LP-gas appurtenances and equipment are to be listed by a nationally recognized testing laboratory; however, equipment that is note eligible for listing shall be acceptable for use as it is intended. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government or small businesses as a result of enforcing or administering the section; however, due to the nature of the proposed changes, it is impossible to specify the amount of that impact. Mr. Petru also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There is an anticipated economic cost to persons required to comply with the proposed section; however, due to the nature of the proposed new rule, it is impossible to specify the amount of that impact. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The new section is proposed under the Texas Natural Resources Code, sec.113. 051 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the LP-gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.9.36. Appurtenances and Equipment. (a) All appurtenances and equipment eligible for listing and not prohibited for use by the LP-Gas Safety Rules to be placed into LP-gas service shall be listed by a nationally recognized testing laboratory, i.e., Underwriter's Laboratory (UL), Factory Mutual (FM), or American Gas Association (AGA), or such other laboratories approved by the LP-Gas Division. Any listing under this section does not ensure conformity with other state and federal regulations. (b) Non-eligible appurtenances and equipment not prohibited for use by the LP- Gas Safety Rules shall be acceptable and safe for LP-Gas Safety Rules shall be acceptable and safe for LP-gas service over the full range of pressures and temperatures to which they will be subjected under normal operating conditions. (c) The commission shall require sufficient evidence to be submitted to substantiate any claims made regarding the safety of any valves, fitting, and equipment. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216892 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 Subchapter G. Division V 16 TAC sec.sec.9.171-9.175, 9.184, 9.187 The Railroad Commission of Texas proposes amendments to ssec.9.171-9.175, 9.184, and 9.187, concerning definitions and applicability, containers, safety relief valves, protection of valves and fittings, container appurtenances, installation of containers and container appurtenances, and school bus and mass transit vehicle installations. The commission proposes amendments to sec.9.171 and sec.9.173 to clarify the rules. Section 9.172 is amended to modify the section's applicability to school buses and mass transit vehicles. School buses, mass transit, or public transportation vehicles are allowed to carry LP-gas motor fuel or mobile fuel containers with a maximum capacity of 300 water gallons. Passenger-carrying vehicles other than school buses, mass transit, or public transportation vehicles may carry containers that do not exceed 200 water gallons. The rule also expands the type of mounting brackets that may be used with these containers. Amendments to sec.9.174 modify the type of protection that must be provided for valves and fittings. Section 9.175 is amended to provide that containers installed on school buses and mass transit vehicles are to be equipped with an automatic means of preventing overfilling. An amendment to sec.9.184 further clarifies the acceptable means of mounting containers on vehicles. Section 9.187 is amended to make clear its applicability to school buses and mass transit vehicles. It also clarifies the appropriate means of mounting containers on such vehicles. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state or local government or small businesses as a result of enforcing or administering the section; however, due to the nature of the proposed changes, it is impossible to specify the amount of that impact. Mr. Petru also has determined for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There is an anticipated economic cost to persons required to comply with the proposed sections; however, due to the nature of the proposed changes, it is impossible to specify the amount of that impact. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Natural Resources Code, 113. 051 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the LP-gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.9.171. Definitions and Applicability. [(a)] ]The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. (1) -(3) (No change.) (4) Mass transit vehicle-Any vehicle which is
                                                                                                                                                                  used primarily
                                                                                                                                                                    [by a political subdivision of a state, city, or county which is primarily used] in the conveyance of the general public by a political subdivision of a state, city, or county. (5) School bus-A vehicle that is sold or
                                                                                                                                                                      used for purposes that include carrying students to and from school or related events but does not include a bus designed and used for operation as a common carrier in urban transportation. [(b) Provisions of Division V apply only to motor fuel and mobile fuel installations made after March 21, 1983.] sec.9.172. Containers. (a) (No change.) (b) The minimum design working pressure for DOT containers shall be not less than 240 psig. The minimum design working pressure for ASME containers shall not be less than 250 psig, except that containers installed on any vehicle within enclosed spaces (including recesses or cabinets) shall have a minimum design working pressure not less than 312 psig unless such spaces are adequately ventilated. School buses or mass transit vehicles shall have a minimum design working pressure not less than 312 psig.
                                                                                                                                                                        A pickup type vehicle, equipped with a camper shell not used for human occupancy, shall not be required to comply with the minimum 312 psig container requirement. (c) LP-gas motor fuel or mobile fuel containers mounted
                                                                                                                                                                          on school buses, mass transit, or public transportation
                                                                                                                                                                            [passenger- carrying] vehicles shall not exceed 300
                                                                                                                                                                              [200] gallons aggregate water capacity. [No more than two containers shall be mounted on a vehicle.] LP-gas containers mounted on passenger-carrying vehicles excluding school buses, mass transit, or public transportation vehicles shall not exceed 200 gallons aggregate water capacity. No more than three containers shall be mounted on a passenger-carrying vehicle.
                                                                                                                                                                                This subsection shall not prevent a LP-gas motor fuel line from being connected to a cargo container on a LP-gas bobtail delivery unit properly registered with this division. [(d) LP-gas motor fuel container on other than passenger vehicles normally operating on the highways shall not exceed 175 gallons individual water capacity, 300 gallons aggregate water capacity. No more than two containers shall be mounted on a vehicle.] (d)
                                                                                                                                                                                  [(e)] All motor fuel or mobile fuel
                                                                                                                                                                                    containers shall be
                                                                                                                                                                                      [of 130 gallons water capacity or more shall be baffled and shall have steel pads continuously welded to the container and] supported [through an arc of 120 degrees] in such a manner as to prevent the concentration of excessive stresses in the shell plate of the container. This shall not prohibit the use of specific mounting brackets, designed and manufactured by the container manufacturer. Such brackets shall comply with the intent of this subsection. The container fastenings and brackets shall be designed and constructed to withstand without permanent visible deformation static loading in any direction equal to four times the weight of the container filled with fuel. Each specific mounting bracket must have the manufacturer's name or logo on it in order to properly identify the bracket manufacturer. (e)
                                                                                                                                                                                        [(f)] Containers covered by this section shall be equipped for filling into the vapor space only. Motor fuel and mobile fuel containers shall not be filled in excess of the maximum permitted filling density. sec.9.173. Safety Relief Valves. (a) All ASME motor fuel and mobile fuel containers shall be equipped with internal type spring-loaded
                                                                                                                                                                                          [spring loaded] safety relief valves which comply with sec.9.42 of this title (relating to Safety Relief Valves), sec.9.43 of this title (relating to Setting of Relief Valves), and sec.9.44 of this title (relating to Construction and Markings of Safety Relief Valves). (b) Prior to the reinstallation of motor fuel or mobile fuel containers equipped with an external relief valve, such container must be retrofitted with an internal safety relief valve of proper size and capacity in compliance with sec.9.42 of this title (relating to Safety Relief Valves), sec.9.43 of this title (relating to Setting of Safety Relief Valves), and sec.9.44 of this title (relating to Construction and Markings of Safety Relief Valves). (c) Safety relief valve discharge shall be directed or vented
                                                                                                                                                                                            [upward within 15 degrees of vertical] so that any gas released will not impinge upon containers, any part of the vehicle, adjacent persons or vehicles, or the inside of the passenger or luggage compartment. (d) Safety relief valve discharge vent lines shall be metallic
                                                                                                                                                                                              [steel] or approved high pressure LP-gas hose or other equivalent material
                                                                                                                                                                                                sized, located, and secured so as to permit sufficient safety relief valve relieving capacity. Discharge vent lines shall be able to withstand the pressure from the relief vapor discharge when the relief valve is in the full open position. A spring-loaded dust or rain cap shall be provided to minimize the possibility of the entrance of dirt or water into either the relief valve or its discharge vent line, and such dust or rain cap shall remain in place except when the relief valve operates. In this event, it shall permit the relief valve to operate at sufficient capacity. (e) (No change.) sec.9.174. Protection of Valves and Fittings. [(a)] Container valves, appurtenances, and connections shall be adequately protected to minimize the possibility of damage due to vehicle collisions,
                                                                                                                                                                                                  accidental contact with stationary objects, or other situations
                                                                                                                                                                                                    [objects thrown up from the ground]. This protection shall be provided by the container manufacturer by means of recessing or by
                                                                                                                                                                                                      a heavy metal fitting guard [with a minimum of seven gauge thickness, adequately] extended to protect all valves when such valves are in full open position. The guard shall be permanently welded to the container or bolted to the guard tabs. [Where used, guard tabs shall have a minimum tensile strength of 55,000 psig and shall be welded to the vessel at the time of fabrication.] The bolts , including lock washers and nuts, or self-locking nuts, must be of sufficient strength to secure the guard against displacement. If self-locking nuts are installed, such nuts shall not be reused once they are removed.
                                                                                                                                                                                                        [securing the guard to the container must be a minimum of 3/8 inch grade five steel machine bolts Exception:] A motor fuel container which is located within an automobile's trunk area, with parts of the vehicle providing protection and all valves and fittings protected by a vapor tight shroud, will be deemed to comply with the foregoing requirement. [(b) Float gauges, relief valves, and other container appurtenances located outside the valve guard area shall be recessed inside the container or protected by a welded guard surrounding the appurtenances. sec.9.175. Container Appurtenances. [(a) All valves, gauging devices, and appurtenances shall have a minimum rated working pressure of 250 psig] (a)
                                                                                                                                                                                                          [(b)] Manual shut-off valves shall be designed to provide positive closure under service conditions and shall be equipped with an internal excess flow check valve designed to close automatically at the rated flow of vapor or liquid specified by the manufacturer. (b)
                                                                                                                                                                                                            [(c)] Containers shall be installed in such manner that access to main shut-off valves is not hindered by the vehicle's frame, body, or any equipment or appurtenance attached to or mounted on the vehicle. This is not to be construed to prohibit the installation of containers inside a vehicle's passenger or luggage compartments where access doors to these compartments may be locked to secure the vehicle and its contents. (c)
                                                                                                                                                                                                              [(d)] Double back flow check valves shall be of the spring-loaded type and shall close when the flow of LP-gas is either stopped or reversed. This valve shall be installed in the fill valve opening of the container, whether used for remote or direct filling. (d)
                                                                                                                                                                                                                [(e)] All motor fuel and mobile fuel containers installed on school buses, mass transit, or
                                                                                                                                                                                                                  public transportation vehicles shall be equipped with an automatic means to prevent filling in excess of the maximum permitted filling density. (e)
                                                                                                                                                                                                                    [(f)] An overfilling prevention device may be installed on the container or exterior of the compartment when remote filling is used, provided that a double back flow check valve is installed in the remote fill valve opening. (f)
                                                                                                                                                                                                                      [(g)] All container openings, except those for safety relief valves and gauging devices, shall be permanently labeled by appropriate means to designate whether they communicate with the liquid or vapor space. (g)
                                                                                                                                                                                                                        [(h)] A solid steel plug shall be installed in unused openings. sec.9.184. Installation of Containers and Container Appurtenances. (a) Containers shall be located in a place and in a manner to minimize the possibility of damage to the container and its fittings. All containers shall be located within the physical limits of the vehicle and shall be protected by the vehicle's bumpers. Extending a chassis or bumper solely
                                                                                                                                                                                                                          for the purpose of mounting containers is prohibited , except where permitted by federal law
                                                                                                                                                                                                                            . Containers shall not be installed less than eight inches from the engine or exhaust system or shall be shielded against direct heating to prevent increased internal pressure of the container. (b) Containers not exceeding 85 gallons water capacity may be mounted in an elevated position, provided such containers are installed within the confines of an overhead steel framework which is common with or attached to the vehicle's frame and is capable of supporting 1.5 times the weight of the vehicle. [No container shall be located directly above another container.] (c)-(d) (No change.) (e) The container, fastenings, or mounting brackets shall be secured to the vehicle with bolts, lock washers and nuts, or self-locking nuts of proper size and strength capable of withstanding a static force in any direction equal to four times the weight of the container filled with fuel. If self-locking nuts are installed, such nuts shall not be reused once they are removed. sec.9.187. School Bus and Mass Transit Vehicle Installations. (a) The application. This section applies to LP-gas systems supplying LP-gas to propel school bus and mass transit vehicles. Prior to the [initial installation of a] conversion to a LP-gas system on any vehicle to be used as a school bus by either public or private educational institutions or mass transit vehicles, an applicant (the ultimate consumer or licensee, as the case may be), making the [initial installation or] conversion shall submit a LPG Form 503, Application to Install a LPG System on School Bus/Mass Transit Vehicles, and other information deemed necessary by the LP-Gas Division for review. An original school bus or mass transit vehicle manufacturer shall submit an LPG Form 503 covering the model(s) of vehicles to be equipped with a LP-gas system prior to the vehicles being utilized in LP-gas service in this state. (b) The application process. After completion of the division's review of the application within the time described in paragraph (7) of this subsection, the application will be returned to the applicant, indicating the submission complies with the LP-gas rules or indicating that corrections are required, and such corrections shall be noted specifically on the returned application. (1)-(4) (No change. ) (5) Material variances. If the division director determines the completed installation or conversion varies materially from the application originally accepted, correction of the variance and notification to the division or
                                                                                                                                                                                                                              resubmission of the specifications is required. The division's review of such resubmitted application will follow the described procedure(s) in this section. (6) Subsequent applications. Any subsequent [installation of or] conversion to an LP-gas system by the same applicant for the same user will not require resubmission of an application, provided the conversions are made in accordance with the application originally accepted. However, an LPG Form 504, Notice of Subsequent Installation or
                                                                                                                                                                                                                                Conversion [by the Same Ultimate Consumer or Applicant] must be file with and approved by the LP-Gas Division prior to the completion of any subsequent school bus or mass transit [installation or] conversion. The applicant shall notify the division in writing when any such subsequent [installation or] conversion is completed and ready for inspection. Original school bus or mass transit vehicle manufacturers shall submit a LPG Form 504 prior to the vehicles being utilized in this state. (7) Time for review of applications. The division will review all applications within 21
                                                                                                                                                                                                                                  [45] calendar days of receipt of the application. The division must mail written notification to the applicant of whether the application is accepted, rejected, or still under review within the 21
                                                                                                                                                                                                                                    [45] calendar day period. An application is not accepted (i.e., in compliance) until the applicant has received written notification of the acceptance. (c) [Each container shall be fitted with an approved automatic means to prevent filling in excess of the maximum permitted filling density.] The motor fuel container(s) installed on a school bus or mass transit vehicle
                                                                                                                                                                                                                                      [container] shall be installed on the underside of the vehicle [on the streetside]. [Installation of the container on top or at the rear of the bus is prohibited.] [(d) LP-gas containers used on school buses shall not exceed 115 gallons aggregate water capacity.] (d)
                                                                                                                                                                                                                                        [(e)] Container(s)
                                                                                                                                                                                                                                          [The container] shall be secured to the school bus or mass transit vehicle
                                                                                                                                                                                                                                            frame (not to the floor [of the bus]) by container
                                                                                                                                                                                                                                              fastenings welded directly to the container or mounting brackets as provided in sec.9.172(d) of this title (relating to Containers). The fastenings or brackets must be secured to the frame as required by sec.9.184(e) of this title (relating to Installation of Containers and Container Appurtenances). Container(s) which have been previously installed on school buses or mass transit vehicles by means of strap mounting brackets may continue to be utilized in LP-gas service on school buses or mass transit vehicles.
                                                                                                                                                                                                                                                [designed with a safety factor of four, to withstand loadings in any direction equal to four times the filled weight of the container. The container shall have a minimum of two padded mounting frame brackets, continuously welded to the container at the time of manufacture, supporting the container through an arc of 120 degrees. Container brackets shall be secured in place using lock washers and double nutted 1/2 inch grade eight tensile strength bolts.] [(f) Containers shall be installed with as much clearance as practical, but never less than the minimum normal road clearance of the vehicle under maximum load conditions. Minimum clearance shall be to the bottom of the container or to the lowest fitting on the container or housing, whichever is lower. All container valves and fittings shall be protected by means of a heavy gauge metal guard having a minimum thickness of seven gauge steel.] (e)
                                                                                                                                                                                                                                                  [(g)] When necessary a
                                                                                                                                                                                                                                                    [An 8-inch by 14-inch minimum size] plumbing chamber door shall be provided in the [street] sidewall of the school
                                                                                                                                                                                                                                                      bus or mass transit vehicle
                                                                                                                                                                                                                                                        to allow easy access for filling or securing the service valve in the event of an emergency. The plumbing chamber door shall be hinged and latched, but not locked. (f) In addition to this section pertaining to school buses and mass transit vehicles, all other applicable sections of the LP-Gas Safety Rules shall apply. [(h) All safety relief valves shall be vented through the street sidewall of the bus skirting. The relief valve discharge vent line shall be metallic pipe or tubing (other than aluminum) and shall be sized, located, and secured, so as not to restrict full discharge. [(i) The relief valve discharge vent lines shall run vertically upward and shall be secured against the outside skirting, continuing upward between windows, terminating at the rolling eaves of the bus roof. A spring-loaded dust or rain cap must be provided which will not divert the discharge of LP-gas onto the container or vehicle. A flexible high pressure LP-gas hose connection shall connect the relief valve threaded collar to the discharge vent line by means of threaded fittings or manufactured hose fittings designed specifically for this purpose. The relief valve discharge vent line and the flexible high pressure LP- gas hose shall withstand the pressure from the relief discharge when the relief valve is in the full open position.] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216870 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6948 Chapter 13. Regulations for Compressed Natural Gas (CNG) Fuel Systems Subchapter A. Scope and Definitions 16 TAC sec.13.3, sec.13.4 The Railroad Commission of Texas proposes amendments to s13.3 and sec.13. 4, concerning definitions and compressed natural gas forms. The commission proposed amendments to sec.13.3 and sec.13.4 to explain terminology in the Regulations for Compressed Natural Gas and to clarify the names of certain report forms. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Petru also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Natural Resources Code, sec.116. 012 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the Compressed Natural Gas Industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.13.3. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Commercial installation -An installation or building where the public conducts business on the premises, which includes all installations such as, but not limited to, installations at a school, convalescent home, hospital, retail CNG service station/cylinder filling, forklift, forklift cylinder exchange, private motor/mobile fuel and cylinder filling installation. A final determination as to what constitutes a commercial installation will be made by the division director. School bus-A vehicle that is sold or used for purposes that include carrying students to and from school or related events, but does not include a bus designed and used for operation as a common carrier in urban transportation. sec.13.4. CNG Forms.
                                                                                                                                                                                                                                                          Under the provisions of the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has adopted by reference the following forms for use by the liquefied Petroleum Gas Division (LP-Gas). These forms are available to the public upon request directed to the LP-Gas Division in Austin: (1)-(17) (No change.) (18) CNG Form 1501. Completion Report for Commercial Installations Having a Aggregate Storage of 240 Standard Cubic Feet or Less; [(19) CNG Form 1502. Application for Compressed Natural Gas Equipment and Component Approval;] (19)
                                                                                                                                                                                                                                                            [(20)] CMG Form 1503. Application to Install a CNG System on School Bus/Mass Transit Vehicles; (20)
                                                                                                                                                                                                                                                              [(21)] CNG Form 1504. Notice of Subsequent Installation or Conversion by the Same Ultimate Consumer or Applicant; (21)
                                                                                                                                                                                                                                                                [(22)] CNG Form 1996A. Insurance Filing Certifying Worker's Compensation Coverage, including Employer's Liability Coverage; (22)
                                                                                                                                                                                                                                                                  [(23)] CNG Form 1996B. Statement in Lieu of Insurance Filing Certifying Worker's Compensation Coverage, including Employer's Liability Coverage; (23)
                                                                                                                                                                                                                                                                    [(24)] CNG Form 1997A. Insurance Filing Certifying Motor Vehicle Bodily Injury Insurance and Property Damage Liability Insurance; (24)
                                                                                                                                                                                                                                                                      [(25)] CNG Form 1997B. Statement in Lieu of Insurance Filing Certifying Motor Vehicle Bodily Injury Insurance and Property Damage Liability Insurance; (25)
                                                                                                                                                                                                                                                                        [(26)] CNG Form 1998A. Insurance Filing Certifying General Liability Insurance; (26)
                                                                                                                                                                                                                                                                          [(27)] CNG Form 1998B. Statement in Lieu of Insurance Filing Certifying General Liability Insurance; (27)
                                                                                                                                                                                                                                                                            [(28)] CNG Form 1999. Notice of Insurance Cancellation. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216868 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: December 22, 1992 For further information, please call: (512) 463-6949 Chapter 13. Regulations for Compressed Natural Gas (CNG) Engine Fuel Systems Subchapter B. General Rules for CNG Equipment Qualifications 16 TAC sec.sec.13.24-13.27, 13.30, 13.31, 13.35 The Railroad Commission of Texas proposes amendments to ssec.13.24-13.27, 13.30, 13.31, and 13.35, concerning school bus and mass transit installations, approval of CNG systems and equipment installation filings and inspection, design and construction of cylinders and pressure vessels, pressure relief devices, piping, valves and hose and hose connections, and exception to a safety rule. Section 13.24 is amended to clarify the procedure for conversion of school buses and mass transit vehicles to compressed natural gas systems. It also specifies the forms to be submitted by the original school bus or mass transit vehicle manufacturer. Section 13.25 would eliminate the current requirement for filing a construction approval form for certain compressed natural gas installations. Instead, the licensee would have the responsibility for ensuring that the installation is in total compliance with the applicable rules and regulations. After the installation is complete, the licensee would be required to submit a form to the division certifying the installation's compliance. In addition, the proposed section decreases the deadline for the division's inspection of a facility; otherwise, the facility may operate conditionally without an inspection by the LP-Gas Division. Section 13.26 is amended to establish the requirements for vapor recovery receivers. Sections 13.27 is amended to reflect clarifications in the rules, and to clarify the proper installation of pressure relief devices. Section 13.30 establishes requirements relating to industrial type connectors, and sec.13.31 is amended to provide a more reasonable safety factor for valves. Section 13.35 is amended to provide a time period for review of requests for an exception to a safety rule. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state or local government or small businesses as a result of enforcing or administering the sections; however, due to the nature of the changes it is impossible to assess that impact. Mr. Petru also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There is an anticipated economic cost to persons required to comply with the proposed sections; however, due to the nature of the proposed changes it is impossible to specify the amount of that impact. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Natural Resources Code, sec.116. 012 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the Compressed Natural Gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.13.24. School Bus and Mass Transit Vehicle Installations. (a) The application. This section applies to compressed natural gas (CNG) systems supplying CNG to propel school bus and mass transit vehicles. Prior to the [initial installation of or] conversion to a CNG system on any vehicle to be used as a school bus by either public or private educational institutions or mass transit vehicles, an applicant (the ultimate consumer or licensee, as the case may be) making the [initial installation or] conversion shall submit a CNG Form 1503, Application to Install a CNG System on School Bus/Mass Transit Vehicles, and other information as deemed necessary by the [division of the] LP- Gas Division for review. An original school bus or mass transit vehicle manufacturer shall submit a CNG Form 1503 covering the model(s) of vehicles to be equipped with a CNG system prior to the vehicles being utilized in CNG service in this state. (b) The application process. After completion of the division's review of the application within the time described in paragraph (7) of this subsection, the application will be returned to the applicant, indicating the submission complies with the CNG rules or indicating that corrections are required, and such corrections shall be noted specifically on the returned application. (1)-(4) (No change. ) (5) Material variances. If the division director determines the completed installation or conversion varies materially from the application originally accepted, correction of the variance and notification to the division or
                                                                                                                                                                                                                                                                              resubmission of the application is required. The division's review of such resubmitted application will follow the described procedure(s) in this section. (6) Subsequent applications. Any subsequent [installation of or] conversion to a CNG system by the same applicant for the same user will not require resubmission of an application, provided the conversions are made in accordance with the application originally accepted. However, a CNG Form 1504, Notice of Subsequent Installation or Conversion [by the Same Ultimate Consumer or Applicant] must be filed with and approved by the division, prior to the completion of any subsequent school bus or mass transit [installation or] conversion. The applicant shall notify the division in writing when any such subsequent [installation or] conversion is completed and ready for inspection. Original school bus or mass transit vehicle manufacturers shall submit a CNG Form 1504 prior to the vehicles being utilized in this state. (7) Time for review of applications. The division will review all applications within 21
                                                                                                                                                                                                                                                                                [45] calendar days of receipt of the application. The division must mail written notification to the applicant of whether the application is accepted, rejected, or still under review within the 21
                                                                                                                                                                                                                                                                                  [45] calendar day period. An application is not accepted (i.e., in compliance) until the applicant has received written notification of the acceptance. sec.13.25. Approval of CNG Systems and Equipment Installation Filings and Inspection. (a) (No change.) (b) The approval process. (1) Application for construction approval. A CNG Form 1500, Application for Construction Approval of a CNG System Installation, must be submitted to the division prior to construction or installation of a CNG system having an aggregate storage capacity in excess of 240 standard cubic feet. The aggregate storage capacity is based on the volume stamped on each cylinder.
                                                                                                                                                                                                                                                                                    [at a public or private school, hospital, convalescent center, and prior to construction or installation of a CNG compression, storage, or dispensing system in three circumstances: [(A) when CNG is sold to the general public; [(B) when a mass transit facility services its own mass transit vehicles with CNG; or [(C) when a commercial user's CNG system has an aggregate storage capacity in excess of 12,200 standard cubic feet.] (2)-(7) (No change.) (8) Notification. The applicant shall notify the division in writing when the system is completed and ready for inspection. The CNG system shall not be placed into CNG service until final approval is granted by the division after a physical inspection determines the CNG system is installed in full compliance with both the accepted construction plans and specifications, and all applicable CNG safety regulations. If the division does not physically inspect the facility within 30 calendar
                                                                                                                                                                                                                                                                                      [75] days of written notice that the facility is ready for inspection, the facility may
                                                                                                                                                                                                                                                                                        [can] operate conditionally until final inspection takes place. (9) (No change.) (10) Fees. A nonrefundable fee of $26 shall be submitted with each CNG Form 1500, Application for Construction Approval of a CNG System Installation. A nonrefundable fee of $16
                                                                                                                                                                                                                                                                                          [$6.00] shall be submitted for each resubmitted CNG Form 1500, Application for Construction Approval of a CNG System Installation. (c) Completion of CNG portable or stationary systems. (1) Completion report. A CNG Form 1501, Completion Report for Commercial Installations Having a Aggregate Storage of 240 Standard Cubic Feet or Less
                                                                                                                                                                                                                                                                                            , must be submitted to the division postmarked within 10 calendar days after completion of a CNG system at facilities where the aggregate storage capacity of a commercial installation
                                                                                                                                                                                                                                                                                              [user] is 240
                                                                                                                                                                                                                                                                                                [12,200] standard cubic feet or less[, except as noted under subsection (b)(1) of this section]. The submission of a CNG Form 1501, Completion Report for Commercial Installations Having a Aggregate Storage of 240 Standard Cubic Feet or Less, will indicate that the CNG installation is in total compliance with the statutes and regulations for CNG, that any necessary CNG licenses have been issued, and that the operation has been placed in CNG service. After receipt of a CNG Form 1501, an inspection will be conducted as soon as possible to determine if the installation described is in compliance with the Regulations for Compressed Natural Gas. At the time of the first inspection at a retail CNG service station/cylinder filling installation, if any violation of a CNG statute or regulation exists, the subject installation, including any appurtenances or equipment, will be removed immediately from CNG service until the installation is in total compliance with the Regulations for Compressed Natural Gas. The person(s) or entity submitting the CNG Form 1501 will be subject to whatever enforcement action deemed appropriate. If, in the opinion of the commission or division director, a CNG licensee has a history of violating this subsection, the commission or division director may require the affected CNG licensee to submit plans and specifications for future CNG installations. The affected CNG licensee shall be notified in writing of this finding. The licensee's installations shall be inspected prior to the installation being placed into CNG service. The commission or division director may allow the affected CNG licensee to resume submitting CNG Form 1501's. The affected licensee must be notified in writing of this finding. (2) Fees. A nonrefundable fee of $6.00 shall be submitted with each originally filed
                                                                                                                                                                                                                                                                                                  CNG Form 1501, Completion Report for Commercial Installations Having a Aggregate Storage of 240 Standard Cubic Feet or Less
                                                                                                                                                                                                                                                                                                    [, originally filed]. (3) Resubmission Fee. A nonrefundable fee of $12
                                                                                                                                                                                                                                                                                                      [$6.00] shall be submitted for each resubmitted CNG Form 1501, Completion Report for Commercial Installations Having a Aggregate Storage of 240 Standard Cubic Feet or Less. (d) Approval of CNG systems, equipment and components. (1) All appurtenances and equipment eligible for listing and not prohibited for use by the Regulations for Compressed Natural Gas to be placed into CNG service shall be listed by a nationally recognized testing laboratory i.e., Underwriter's Laboratory (UL), Factory Mutual (FM), Canadian Gas Association (CGA), or American Gas Association (AGA), or such other laboratories approved by the LP-Gas Division. Any listings under this section do not ensure conformity with other state and federal regulations.
                                                                                                                                                                                                                                                                                                        [Compressed Natural Gas systems, equipment and components (i.e., containers, pressure vessels, pressure relief devices, including pressure relief valves, pressure gauges, pressure regulators, valves, hose and hose connections, vehicle fueling connections, engine fuel systems, and electrical equipment) related to CNG systems shall be approved by the Railroad Commission for use in the State of Texas. A CNG Form 1502, Application for Compressed Natural Gas Equipment an Component Approval, must be submitted to the division for any equipment or component which is required to be approved, and other data as the commission may reasonably require. Exception: Equipment (including pressure vessels) and components need not be approved by the commission provided they are listed by a nationally recognized testing laboratory, i.e., Underwriter's Laboratory (UL), Factory Mutual (FM), American Gas Association (AGA), or the Canadian Gas Association, and such other laboratories approved by the division, provided these rules do not prohibit their use in CNG service. Approval under this subsection does not ensure conformity with other state and federal regulations. Any subsequent modifications to approved CNG equipment, and components will require resubmission to the division prior to installation or usage. Devices not previously mentioned in this subsection shall be constructed to provide safety equivalent to that required for other parts of the system.] (2) Non-eligible appurtenances and equipment shall be acceptable and safe for CNG service over the full range of pressures and temperatures to which they will be subjected under normal operating conditions. (3) The LP-Gas Division shall require evidence to be submitted to substantiate any claims made regarding the safety of any valves, fittings, and equipment. (e) Issuance of License. If application is made for a license under any category in which plans or specifications are required to be
                                                                                                                                                                                                                                                                                                          submitted [for installation of retail storage and/or dispensing equipment], the license to operate shall not be issued before final approval of the installation has been granted by the division. Final approval will follow a physical inspection of the completed installation in accordance with subsections (a) and (b)
                                                                                                                                                                                                                                                                                                            [subsection (b)(7)] of this section. Tentative approval will not be granted by the division on any plans and specifications required to be submitted until all licensing requirements have been met. For any multiple category licensee wishing to have part of the license issued which does not pertain to the operations of the installation, the applicant specifically must indicate he or she will not install or operate the installation until plans and specifications have been submitted and tentative approval granted. Final approval will follow a physical inspection of the complete installation in accordance with applicable subsection(s) of this section. Note: The intent of this subsection is to clarify the distinction between a prospective licensed operator and licensed installer. (f) Time review of application. The division will review all applications within 21
                                                                                                                                                                                                                                                                                                              [45] calendar days of receipt of the application. The division must mail written notification of whether the application is accepted (construction approval), rejected, or still under review within the 21
                                                                                                                                                                                                                                                                                                                [45] calendar day period. An application is not accepted (i.e., in compliance) until the applicant has received written notification of the acceptance. (g) Administrative Review
                                                                                                                                                                                                                                                                                                                  [Denial]. (1) The division director or his delegate shall examine all drawings, plans, reports, and specifications required by statute or commission rules to be submitted for approval. The division director or his delegate shall determine whether the design, manufacture, construction, or use of the depicted item, system, operation, procedure, or installation complies with the division rules. The division director shall also determine whether the materials submitted for acceptance is hazardous to the health, safety, and welfare of the general public. If the division director declines administratively to accept the submission, he shall notify the applicant in writing of the deficiencies. The applicant may modify and resubmit the application to be reconsidered for acceptance, or may request a hearing on the matter. The subject of the submission shall not be operated or used in CNG service in this state until approved by the commission or division director. (2) If a CNG stationary or mobile installation, which is not specifically covered by the Regulations for Compressed Natural Gas, has been or is to be installed, the commission or division director shall apply and require any reasonable sound engineering and safety provisions which may be deemed necessary to ensure the subject CNG installation is safe for CNG service. If the acceptable entity(ies) disagrees with the commission or division director's provisions, he or she may request a hearing. However, such installation shall not be placed into CNG operation until such time as the commission or division director has determined the installation is safe for CNG service. sec.13.26. Design and Construction of Cylinders and Pressure Vessels. (a) (No change.) (b) Cylinders shall be manufactured, inspected, marked, tested, and retested in accordance with United States Department of Transportation (DOT) regulations and exemptions for compressed natural gas (CNG) service. Fuel supply cylinders shall have a rated service pressure of not less than 2,400 psig at 70 degrees Fahrenheit. Cascade storage cylinders shall have a rated service pressure of not less than 3,600 psig at 70 degrees Fahrenheit. Steel cylinders shall be manufactured and tested in compliance with DOT 3AA specifications. Fiber reinforced plastic and full composite cylinders shall comply with DOT FRP1 standard. Fiber reinforced plastic and hose wrapped composite cylinders shall comply with DOT FRP2 standard. Vapor recovery receivers shall have a minimum rated service pressure of 250 psig and be manufactured, inspected, marked, tested, and, if applicable, retested in accordance with Department of Transportation (DOT) regulations or the American Society of Mechanical Engineers (ASME) code. (c)-(f) (No change.) sec.13.27. Pressure Relief Devices. (a) Each fuel supply cylinder shall be fitted with a pressure relief device in accordance with the following: (1) pressure relief devices for cylinders shall be in accordance with Compressed Gas Association (CGA) Pamphlet S-1.1 , "Pressure Relief Device Standards-Part 1, Cylinders for Compressed Gases"
                                                                                                                                                                                                                                                                                                                    [and be of the CG-9 "Combination Rupture Disk-Fusible Plug CG-5" type in which the fusible plug has a nominal yield temperature of 212 degrees Fahrenheit]; (2) cylinders manufactured under Department of Transportation exemption or special permits that require fire tests for design qualification shall be equipped with pressure relief devices in accordance with CGA S-1.1 and of the type, temperature rating, pressure rating, number, and location used in the fire tests
                                                                                                                                                                                                                                                                                                                      [only one combination rupture disk-fusible plug shall be installed in any pressure relief device opening]; (3)-(4) (No change.) (5) pressure relief devices shall be located so that the temperature to which they are subjected shall be representative of the temperature to which the cylinder is subjected
                                                                                                                                                                                                                                                                                                                        [the pressure relief device on cylinders shall be permanently marked with the manufacturer's name, initials, or trademark, the temperature rating (212 degrees Fahrenheit) of the fuse plug, and the maximum pressure rating of the rupture disk]. (b) Containers (other than cylinders) and pressure vessels shall be provided with one or more spring-loaded pressure relief valves set to open in accordance with the American Society of Mechanical Engineers (ASME) Code. The pressure relief devices shall be installed directly to the appropriate nozzle opening of the container. (c) The minimum rate of discharge of pressure relief devices shall be in accordance with Compressed Gas Association (CGA) Pamphlet S-1.1, "Pressure Relief Device Standards-Part 1, Cylinders for Compressed Gases"
                                                                                                                                                                                                                                                                                                                          [(cylinders); S-1.2 (cargo and portable tanks); S-1.3 (storage cylinders)] or the ASME Code, whichever is applicable. (d) (No change.) [(e) Each pressure relief valve shall be plainly marked by the manufacturer of the valve, as follows: [(1) with the pressure in pound per square inch (psi) at which the valve is set to start-to-discharge; [(2) with the discharge capacity in cubic feet per minute (cfm); or [(3) any other marking(s) as required by the Department of Transportation (DOT) or the ASME Code.] sec.13.30. Piping. (a) (No change.) (b) All tubing shall be a minimum of "Type 304 Stainless Steel". All tubing connectors
                                                                                                                                                                                                                                                                                                                            [connections] shall be a minimum of Type 304 Stainless Steel industrial type connectors having a minimum design pressure of 5, 000 psig
                                                                                                                                                                                                                                                                                                                              [made of manufactured multifarrel compression fittings]. (c) -(f) (No change.) sec.13.31. Valves. (a) (No change.) (b) Shutoff valves shall have a design working pressure not less than the rated working pressure of the entire system and shall be capable of withstanding a hydrostatic test of at least four times the rated service pressure without failure. Leakage shall not occur at less than 1 1/2 times the rated service pressure using dry air or the test medium
                                                                                                                                                                                                                                                                                                                                [with a safety factor of four]. (c) (No change.) (d) Valves of a design that will allow the valve
                                                                                                                                                                                                                                                                                                                                  stem to be removed without removal of the complete bonnet or disassembly of the valve body [, and valves with valve stem packing glands which cannot be replaced under pressure] shall not be used. Exception: Where there is a shutoff valve of acceptable type between them and the container or pressure vessel (this does not apply to service valves). (e) (No change.) sec.13.35. Application for an Exception to a Safety Rule. (a)-(d) (No change.) (e) Division review. The division director or his delegate shall review the application within 21 days of receipt of the exception request. The division must mail written notification to the applicant within the 21 days of whether the request is accepted, rejected, or still under review
                                                                                                                                                                                                                                                                                                                                    [when it is complete]. If the commission has received no objections from any affected parties, the division director may grant the exception, unless the division director determines the exception would be hazardous to the health, safety, or welfare of the general public. If the division director declines administratively to grant the exception, he shall notify the applicant by certified mail, return receipt requested, of the reasons and of any specific deficiencies. The applicant may modify the application to correct the deficiencies and resubmit the application, or may request a hearing on the matter. (f)-(j) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216869 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 Subchapter C. Classification, Registration, and Examination 16 TAC sec.sec.13.74 The Railroad Commission of Texas proposes an amendment to sec.13.74, concerning examination fees. The amendment to sec.13.74 provides the commission discretion to set the fee for all examinations administered and establishes a late filing penalty for the qualified status fee if the fee is not received by the established deadline. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the section is in effect there will be fiscal implications for state or local government as a result of enforcing or administering the section; however, due to the nature of the changes it is impossible to specify the amount of that impact. Mr. Petru also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. The only anticipated economic cost to persons who are required to comply with the section as proposed would be the cost of licensing examinations. The exact cost of these examinations will be determined by the commission. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendment is proposed under the Texas Natural Resources Code, sec.116. 012 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the Compressed Natural Gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.13.74. Examination Fees. (a) Each applicant shall pay the Railroad Commission in advance a nonrefundable examination fee for each required examination. The fee for all categories of management and employee
                                                                                                                                                                                                                                                                                                                                      examinations shall be established by the commission
                                                                                                                                                                                                                                                                                                                                        [$25 per exam. The fee for all employee examinations shall be $10 per exam]. If an applicant fails an examination, the full examination fee shall be charged for each subsequent examination. (b) In order to maintain qualified status, each person who has been qualified by examination shall annually pay to the division the sum of $10 on or before the 31st day of May. If this fee is not received by the deadline, that person shall cease performing all CNG related activities. Upon receipt in the Austin office of the $10 fee, plus a $10 late filing penalty by midnight the 31st day of August of each year, that person may resume performing CNG activities. [Qualified employee status must be renewed on a yearly basis for those years in which reexamination or seminar participation is not required. In order for an individual who is qualified to maintain status as a qualified employee, a renewal fee of $10 must be paid annually, on or before April 30th. Failure to timely renew qualified status will require the employee to pay another examination or seminar fee and to be reexamined or to participate in another seminar.] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216867 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 Subchapter D. CNG Compression, Storage, and Dispensing Systems 16 TAC sec.sec.13.102 The Railroad Commission of Texas proposes an amendment to sec.13.102, concerning installation of electrical equipment. The commission proposes the amendments to sec.13.102 to reflect clarifications in the rules. The amendment to sec.13.102 clarifies the distance electrical installations must be located with respect to compressors, cascades, and dispensing equipment. Thomas D. Petru, director, liquefied petroleum gas division, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Petru also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be an increase in compliance due to more clearly understandable rules and an increase in safety afforded to the general public due to the updated and revised safety requirements. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Thomas D. Petru, Director, Liquefied Petroleum Gas Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days after publication in the Texas Register. The amendment is proposed under the Texas Natural Resources Code, sec.116. 012 (Vernon Supplement 1992), which authorizes the Railroad Commission of Texas to promulgate rules and standards related to the Compressed Natural Gas industry and its operations, which will protect or tend to protect the health, safety, and welfare of the general public. sec.13.102. Installation of Electrical Equipment. (a) Electrical installations
                                                                                                                                                                                                                                                                                                                                          [equipment] located within the vicinity
                                                                                                                                                                                                                                                                                                                                            [15 feet] of any compressor, cascade, or dispensing equipment shall be [installed] in accordance with the National Electrical Code (NEC) for Class 1, Group D: Hazardous Locations
                                                                                                                                                                                                                                                                                                                                              [, Division 1, locations]. The classified area shall not extend beyond an unpierced wall, roof, or vapor tight partition. The vicinity of any compressor, cascade, or dispensing equipment is that area indicated by the following chart. [graphic] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 22, 1992. TRD-9216866 Nolan Ward Hearings Examiner, Legal Division-General Law Railroad Commission of Texas Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 463-6949 TITLE 22. EXAMINING BOARDS Part VIII. Texas Appraiser Licensing and Certification Board Chapter 153. Provisions of the Texas Appraiser Licensing and Certification Act 22 TAC sec.153.9 The Texas Appraiser Licensing and Certification Board proposes an amendment to sec.153.9, concerning Applications. The proposal would amend the application forms for a state certification or license, and for approval as an appraiser trainee. In addition to editorial changes, the proposed amendment would incorporate into the application form a statement concerning the possible nonrenewal of a license, certification or approval issued from that application for those who are in default on TGSLC loans, pursuant to proposed 22 TAC sec.153.17(h) and the Texas Education Code, sec.57.491. Renil C. Liner, commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Liner also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be in compliance with state laws affecting occupational licenses and more efficient application processing. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Renil C. Liner, Commissioner, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188. The amendment is proposed under the Texas Appraiser Licensing and Certification Act, Texas Civil Statutes, Article 6573a.2, which provides the Texas Appraiser Licensing and Certification Board with authority to adopt rules and regulations necessary for the performance of its duties. sec.153.9. Applications. (a) The Texas Appraiser Licensing and Certification Board adopts by reference the following forms approved by the board in 1991 and 1993,
                                                                                                                                                                                                                                                                                                                                                and published by and available from the board, P.O. Box 12188, Austin, Texas 78711- 2188: (1) TALCB Form 1.1
                                                                                                                                                                                                                                                                                                                                                  [1.0], Application for Appraiser Certification or
                                                                                                                                                                                                                                                                                                                                                    Licensing and Examination; (2)-(3) (No change.) (4) TALCB Form 4.2
                                                                                                                                                                                                                                                                                                                                                      [4.0], Application for Approval as an Appraiser Trainee; (5)-(8) (No change.) (c)-(f) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216909 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 465-3950 22 TAC sec.153.17 The Texas Appraiser Licensing and Certification Board proposes an amendment to sec.153.17, concerning Renewal of Certification, License or Trainee Approval; Continuing Education. Subsection 153.17(g), Renewal of Licenses for Servicemen in Active Duty Outside the State, is necessary for the board to comply with House Bill-1393, 72nd Legislature, 1991. The subsection permits a licensee on active military duty to renew an expired license by documenting active duty outside the state, applying for renewal within 90 days after the active duty ends, paying the renewal fee in effect when the license expired, and satisfying any education or experience requirements that would have been imposed for a timely renewal. Subsection (h), Denial of Licensing and Certification of Persons who are in Default on TGSLC Loans, provides that license and certification renewals are subject to the Texas Education Code, sec.57.491, and that the board must give notice and opportunity for a hearing prior to declining to renew a license or certification for defaulting on a TGSLC loan or a repayment agreement. The subsection also requires the board to advise licensees of the effect of a default on subsequent license or certification renewals. Renil C. Liner, commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government or small businesses as a result of enforcing or administering the section. Mr. Liner has also determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be in compliance with state laws affecting occupational licenses. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments may be submitted to Renil C. Liner, Commissioner, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188. The amendment is proposed under the Texas Appraiser Licensing and Certification Act, Texas Civil Statutes, Article 6573a.2, which provides the Texas Appraiser Licensing and Certification Board with authority to adopt rules and regulations necessary for the performance of its duties. sec.153.17. Renewal of Certification, License or Trainee Approval; Appraiser Continuing Education. (a)-(f) (No change.) (g) Renewal of Licenses for Servicemen in Active Duty Outside the State is as follows. (1) A person previously licensed or certified by the Board under this Act who is on active duty in the United States armed forces and serves in this capacity outside the State of Texas may renew an expired license or certification without being subject to any increase in fee imposed in his or her absence, or any additional education or experience requirements if the person: (A) provides a copy of official orders or other official documentation acceptable to the Board showing that the person was on active duty outside the state during the person's last renewal period; (B) applies for the renewal within 90 days after the person's active duty ends; and (C) pays the renewal application fee in effect when the previous license or certification expired. (2) Appraiser continuing education requirements that would have been imposed for a timely renewal shall be deferred under this section to the next renewal of a license or certification. (h) Denial of Licensing and Certification of Persons who are in Default on TGSLC Loans is as follows. Renewals of licenses and certifications issued by the Board are subject to the policies established by the Texas Education Code, sec.57.491. Before the Board declines to renew a license or certification due to default on a loan guaranteed by the Texas Guaranteed Student Loan Corporation (TGSLC), a default on a repayment agreement with TGSLC, or a failure to enter a repayment agreement with TGSLC, the Board shall give notice and provide an opportunity for a hearing in accordance with the provisions of Texas Civil Statutes, Article 6252-13a, s18. The Board shall advise those licensed or certified in renewal notices and shall advise those who apply for licensure or certification in application forms that default on a loan guaranteed by TGSLC may prevent subsequent renewal of a license or certification or prevent the approval of an initial application for license or certification. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216910 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 465-3950 22 TAC sec.153.19 The Texas Appraiser Licensing and Certification Board proposes an amendment to sec.153.19, concerning Licensing and Certification of Persons with Criminal Backgrounds. The proposed section prohibits those who are incarcerated from obtaining or renewing a license or certification; provides for the suspension or revocation of an existing license because of a conviction of a felony or misdemeanor; provides the rationale for honesty, trustworthiness, and reliability to protect the public; provides factors which the Board may consider in determining the fitness of a person to become licensed or certified; and requires the applicant to be responsible for securing and providing the Board with necessary information for the Board's determination. Renil C. Liner, commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government or small businesses as a result of enforcing or administering the section. Mr. Liner has also determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to better insure that those who become licensed or certified appraisers are honest, trustworthy, reliable, and have integrity. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments may be submitted to Renil C. Liner, Commissioner, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188. The amendment is proposed under the Texas Appraiser Licensing and Certification Act, Texas Civil Statutes, Article 6573a.2, which provides the Texas Appraiser Licensing and Certification Board with authority to adopt rules and regulations necessary for the performance of its duties. sec.153.19. Licensing and Certification of Persons with Criminal Backgrounds [Criminal Offense Guidelines]. (a) No currently incarcerated individual will be eligible to obtain or renew an appraiser license or certification. (b) As provided in Texas Civil Statutes Article 6252-13c the Board may suspend or revoke an existing valid license or certification, disqualify an individual from receiving a license or certification, or deny to a person the opportunity to be examined for a license or certification because of a person's conviction of a felony or misdemeanor if the crime directly relates to the duties and responsibilities of the licensed occupation. The Board shall revoke the license or certification of an individual upon his felony conviction, felony probation revocation, revocation of parole, or revocation of mandatory supervision. (c) The Texas Appraiser Licensing and Certification Board considers it very important that persons who are licensed or certified, persons who are candidates to be licensed or certified, and persons who are training to be licensed or certified, be honest, trustworthy, and reliable. The public necessarily reposes a great deal of trust and reliance upon licensed and certified appraisers because of the complex nature of appraisal valuation, and such relationship should not be undermined. When entering onto another's business or residential property or when representing the interests of another, an appraiser must have the ability to conduct himself or herself with honesty, trustworthiness, reliability, and integrity. Thus, the
                                                                                                                                                                                                                                                                                                                                                        [The Texas Appraiser Licensing and Certification] Board deems the following felonies and misdemeanors directly related to the occupation of licensed or certified appraisers or appraiser trainees: (1) offenses involving fraud or misrepresentation; (2) offenses against real or personal property belonging to another, if committed knowingly or intentionally; (3) offenses against public administration; (4) offenses involving the sale or other disposition of real or personal property belonging to another without
                                                                                                                                                                                                                                                                                                                                                          [with] authorization of law; (5) offenses involving moral turpitude; and (6) offenses of attempting or conspiring to commit any of the foregoing offenses. (d) In determining whether a criminal offense is directly related to an occupation, the Board shall consider the following factors: (1) the nature and seriousness of the crime; (2) the relationship of the crime to the purposes for requiring a license or certification to engage in the occupation; (3) the extent to which a license or certification might offer an opportunity to engage in further criminal activity of the same type as that in which the person previously had been involved; and (4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of the licensed occupation. (e) In addition to the factors that may be considered under subsection (b) of this section, the Board, in determining the present fitness of a person who has been convicted of a crime, shall consider the following evidence: (1) the extent and nature of the person's past criminal activity; (2) the age of the person at the time of the commission of the crime; (3) the amount of time that has elapsed since the person's last criminal activity; (4) the conduct and work activity of the person prior to and following the criminal activity; (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and (6) other evidence of the person's present fitness including letters of recommendation from: prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; the sheriff and chief of police in the community where the person resides; and any other persons in contact with the convicted person. (f) It shall be the responsibility of the applicant to the extent possible to secure and provide the Board the recommendations of the prosecution, law enforcement, and correctional authorities; the applicant shall also furnish proof in such form as may be required by the Board that he or she has maintained a record of steady employment and has supported his or her dependents and has otherwise maintained a record of good conduct and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he or she has been convicted. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216911 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 465-3950 22 TAC sec.153.20 The Texas Appraiser Licensing and Certification Board proposes new sec.153. 20, concerning Guidelines for Revocation and Suspension; Investigation. The section defines specific actions by licensees which may be cause for suspension or revocation of a license or certification; provides for Board discretion in determining appropriate penalties but restricts some infractions to specific penalties; provides that provisions of this rule do not relieve a licensee from civil liability or criminal prosecution; provides for complaints and investigations; prohibits undercover or covert investigations and anonymous complaints; holds Board members and employees harmless with respect to disclosures made to the Board in connection with any complaints; and provides for notice and referral of contested cases to the State Office of Administrative Hearings. Renil C. Liner, commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Liner also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the ability of the Texas Appraiser Licensing and Certification Board to accept complaints against its licensees, investigate those complaints, and revoke or suspend a license or certification in order to better protect the public from fraudulent, incompetent or misleading real estate appraisers. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Renil C. Liner, Commissioner, Texas Appraiser Licensing and Certification Board, P.O. Box 12188, Austin, Texas 78711-2188. The amendment is proposed under the Texas Appraiser Licensing and Certification Act, Texas Civil Statutes, Article 6573a.2, which provides the Texas Appraiser Licensing and Certification Board with authority to adopt rules and regulations necessary for the performance of its duties. sec.153.20. Guidelines for Revocation and Suspension; Investigation. (a) The Texas Appraiser Licensing and Certification Board (the Board) may suspend or revoke a license or certification issued under provisions of the Texas Appraiser Licensing and Certification Act (the Act) at any time when it has been determined that the person holding the license or certification: (1) has been convicted of a felony; (2) has disregarded or violated a provision of the Act of the Rules of the Texas Appraiser Licensing and Certification Board; (3) has acted or held himself or any other person out as a licensed or certified real estate appraiser under the Act when not so licensed or certified; (4) has accepted payment for appraisal services and has failed to deliver the agreed service in a timely or agreed upon manner; (5) has refused to refund payment received for appraisal services when he or she has failed to deliver the appraisal service in a timely or agreed upon manner; (6) has accepted payment for services contingent upon a minimum, maximum, or pre-agreed value estimate; (7) has offered to perform appraisal services or has agreed to perform such services when employment to perform such services is contingent upon a minimum, maximum, or pre-agreed value estimate; (8) has made a willful or negligent misrepresentation or any willful or negligent omission of material fact; (9) has had a license or certification as an appraiser revoked, suspended, or otherwise acted against by any other jurisdiction for an act which is an offense under Texas law; (10) is confined in any county jail, post adjudication; is confined in any state or federal prison or mental institution; or through mental disease or deterioration, can no longer safely be entrusted to deal with the public or in a confidential capacity; (11) has procured license or certification pursuant to the Act by making false or fraudulent representation; (12) has failed to actively, personally, and diligently supervise an appraiser trainee under his or her sponsorship or any person not licensed or certified under the Act who assists the licensee or certificate holder in performing real estate appraisals; (13) has had a final civil judgement entered against him or her on grounds of fraud, misrepresentation, or deceit in the making of any appraisals of real estate. (b) The Board has discretion in determining the appropriate penalty for any violation under subsection (a) of this section with the following restrictions. (1) Penalty for an offense under subsection (a)(1) of this section shall be immediate revocation of a license or certification pursuant to Vernon's Texas Civil Statutes, Article 6252-13c(4)(e). (2) Penalty for an offense under subsection (a)(3) of this section shall be suspension of license or certification for a period not to exceed two years. (3) Penalty for a first violation under subsection (a)(4) of this section shall be suspension of license or certification for a period not to exceed 60 days. (4) Penalty for a second violation under subsection (a)(4) of this section shall be suspension of license or certification for a period not to exceed one year. (5) Penalty for an offense of either subsection (a)(6)(7) of this section shall be suspension of license or certification not to exceed a period of one year. (c) The provisions of this section do not relieve a person from civil liability or from criminal prosecution under the Act or under the laws of this State. (d) The Board may direct the commissioner, on signed complaint in writing of a consumer or service recipient, to investigate the actions and records of a state licensed real estate appraiser, a state certified real estate appraiser, or an appraiser trainee. (e) The commissioner may ask for inspection of an appraiser's books and records relative to a specific complaint or investigation. The appraiser must produce the specified documents within 60 days of the request. (f) The commissioner shall then make recommendations to the Board on an appropriate action under this section. (g) The Board may not investigate under this section a complaint submitted more than two years after the date of discovery of the incident involving the state licensed real estate appraiser, state certified real estate appraiser, or appraiser trainee that is the subject of the complaint. (h) Notwithstanding any other provision of the Act, there shall be no undercover or covert investigations conducted by authority of the Act. No investigations of licensees or certificate holders or any other actions against licensees or certificate holders shall be initiated on the basis of anonymous complaints whether in writing or otherwise, but shall be initiated only upon the Board's own motion or a signed written complaint from a consumer of service recipient. Upon the adoption of such a motion by the Board or upon receipt of such complaint, the licensee or certificate holder shall be notified promptly and in writing unless the Board itself, after due consideration determines otherwise. (i) All Board members, officers, directors, and employees of this agency shall be held harmless with respect to any disclosures made to the Board in connection with any complaints filed with the Board. (j) If the board determines to take further action, notice of a hearing shall be given in accordance with sec.151.17 of this title (relating to Notice of Hearing); and any further proceedings shall be considered to be a contested case and to be governed by the Administrative Procedure and Texas Register Act, Texas Civil Statutes Article 6252-13a. The hearing shall be conducted by the State Office of Administrative Hearings pursuant to Texas Civil Statutes, Article 6552-13f, and Chapter 155 of this title (relating to Standards of Practice). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216912 Renil C. Liner Commissioner Texas Appraiser Licensing and Certification Board Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 465-3950 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 48. Community Care for the Aged and Disabled Medicaid Waiver Program for Persons with Related Conditions 40 TAC sec.48.2102, sec.48.2103 The Texas Department of Human Services (DHS) proposes amendments to sec.48. 2102 and sec.48.2103, concerning definitions and eligibility criteria, in its Community Care for Aged and Disabled chapter. The purpose of the amendment to sec.48.2103 is to require an applicant for the Community Living Assistance and Support Services (CLASS) program to move into the geographic catchment area within 120 days from the date the applicant's name is removed from the waiting list and begins the CLASS enrollment process. Section 48.2102 is amended to add the definition of "participant." Burton F. Raiford, commissioner, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Raiford also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that the rule will more accurately reflect DHS's policy concerning eligibility criteria. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Questions about the content of the proposal may be directed to Barbara Stegall at (512) 450-3228 in DHS's Community Care Section. Comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Policy and Document Support-315, Texas Department of Human Services E-503, P.O. Box 149030, Austin, Texas 78714- 9030, within 30 days of publication in the Texas Register. The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority to administer public and medical assistance programs. sec.48.2102. Definitions. The following words and terms, when used in this undesignated head, have the following meanings, unless the context clearly indicates otherwise. Participant-A person who receives Community Living Assistance and Support Services (CLASS). sec.48.2103. Participant [Client] Eligibility Criteria. (a) (No change.) (b) To be determined eligible by DHS for the waiver program services, participants
                                                                                                                                                                                                                                                                                                                                                            [clients] must also meet the following requirements: (1) Participants
                                                                                                                                                                                                                                                                                                                                                              [Clients] must meet the intermediate care facility for the mentally retarded with related conditions (ICF-MR/RC VIII) level-of-care criteria as determined by the Texas Department of Health (TDH) according to applicable state and federal regulations, and as verified by a current level of care assessment. (A) A preadmission level of care assessment by TDH expires 90 calendar days from its issuance. For participants
                                                                                                                                                                                                                                                                                                                                                                [clients] who are enrolled in the waiver program within 30 calendar days of discharge from an ICF-MR/RC VIII or another waiver program provider, the current level-of-care assessment may be used for enrollment and is valid until the expiration date on the level-of-care assessment. (B)-(C) (No change.) (2) Applicants must live in the contracted provider's geographic catchment area or must move into the geographic catchment area within 120 days from the date the applicant's name is removed from the waiting list and the applicant begins the Community Living Assistance and Support Services (CLASS) enrollment process
                                                                                                                                                                                                                                                                                                                                                                  . [If an applicant has been removed from his home and community because of intermediate care facility for the mentally retarded (ICF-MR) institutional placement, he may move into the waiver program geographic catchment area and enroll in the waiver program even though his original county of residence is outside the provider's geographic catchment area.] (3) (No change.) (c) (No change.) (d) Enrollment into this waiver program is limited to the number of participants
                                                                                                                                                                                                                                                                                                                                                                    [clients] approved by HCFA and allocated to the provider. (e) Participants
                                                                                                                                                                                                                                                                                                                                                                      [Clients] may be enrolled in only one waiver program at a time. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 28, 1992. TRD-9216935 Nancy Murphy Agency Liaison, Policy and Document Support Texas Department of Human Services Proposed date of adoption: March 15, 1993 For further information, please call: (512) 450-3765 Part IX. Texas Department on Aging Chapter 251. Support Documents Statutes and Regulations 40 TAC sec.251.7 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department on Aging proposes the repeal of sec.251.7, concerning carryover policy which will be followed regarding unexpended funds awarded to Area Agencies on Aging in the prior fiscal year in order to publish a completely revised rule regarding this subject. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Ms. Ammons, also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule in the proposed new section. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The repeal of this section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.251.7. Carryover Policy-Older Americans Act, Title III. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216956 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 The Texas Department on Aging proposes new sec.251.7, concerning carryover policy which will be followed regarding unexpended funds awarded to Area Agencies on Aging in the prior fiscal year. It implements new methods of determining the validity of carryover for each area agency and refers to the future establishment of a revised formula to be used in distributing funds identified in this process. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department. sec.251.7. Carryover Policy-Older Americans Act, Title III. (a) Background and purpose. The Texas Department on Aging has revised the policy regarding the carryover of unexpended funds awarded in the prior fiscal year. The new policy establishes the criteria under which a subgrantee agency may request authorization to expend Older Americans Act, Title III, funds during the fiscal year immediately following the fiscal year for which the funds were initially awarded. (b) Carryover. Carryover is defined as any funds awarded for which no goods or services have been received, financial obligation encumbered, or services performed by employees, contractors, subgrantees, or other payees. (c) Notification of grant award. The notification of grant award issued by the Department authorizes the use of Title III funds for the specific federal fiscal year during which the award is issued (October 1-September 30). At the end of each federal fiscal year, grantees are provided a 90-day closeout period to determine the balance of unexpended funds. At the end of the closeout period, an end-of-year report is completed indicating the unexpended balance. Funds contracted, obligated, or awarded beyond the Department's grant period are considered unexpended. Accrued expenditures would include items or services contracted or purchased within the grant period, but where delivery is not made until a subsequent period. Conclusion of the obligation, including receipt of the goods or services and full and final payment, must be not later than 15 days prior to the due date of the end-of-year report. The request for use of carryover funds shall be an integral part of the grantee's annual area plan submission or as otherwise directed by the Department. (d) Policy for approval. It is the policy of the Department to approve the carryover, with adequate justification, of up to 5.0% of funds awarded during the first three quarters of the grant period. Approval shall be based upon timely submission of adequate justification. Any funds awarded during the last quarter of the grant period will be allowed as carryover in addition to the 5.0% awarded, if any, through adequate justification. No agency will be automatically guaranteed any carryover, except for those grant awards made during the last quarter of the grant period. The allowable carryover shall be computed by determining 5.0% of all Title III funds awarded during the first three quarters of the fiscal year and adding the amount of those grant awards made during the last quarter of the grant period. In no case shall the total carryover exceed 6.0% of the total Title III funding. In no case shall disallowed costs be permitted as carryover. Additionally, unexpended adequate proportion and maintenance of effort funds shall not be permitted as carryover, unless the grantee has received a waiver from the requirements of adequate proportion in accordance with 40 TAC 268.7. (e) Justification required. Adequate justification shall be defined as meeting those performance measures and financial standards outlined in the 40 TAC sec.255.35, Area Agency on Aging Operations standards as established by the Department. Such standards shall be an integral part of the area plan and assurance of compliance shall be required by all grantees. (f) Funds not approved. All funds not approved for carryover shall become part of a reallocation pool. Notifications of grant award for all reallocated funds shall be issued by the Department not later than February 15 of each fiscal year. Eligibility for participation in the funds reallocation shall be limited to grantee agencies that meet the following criteria: (1) the agency did not have unexpended Title III funds in excess of 5. 0% of the overall Title III funds awarded during the first three quarters of the grant period; (2) grantee agencies eligible for reallocated funds must have met all of the performance measures and financial standards outlined in the 40 TAC sec.255.35, Area Agency on Aging Operations, as established by the Department; (3) the grantee agency did not have any disallowed costs during the fiscal year related to aging funds; and (4) the grantee agency met all adequate proportion and maintenance of effort requirements or obtained waiver from adequate proportion requirements in accordance with 40 TAC sec.268.7. (g) Allocation formula. In accordance with the Human Resources Code, sec.101.029(d), the Department, by rule, shall adopt a reallocation formula that includes performance as a criterion, in addition to other criteria adopted by the department. Therefore, the funds in the reallocation pool shall be distributed using the Department's published funding formula, exclusive of consideration for any service and administration bases and phase-in after removal of all grantee agencies not meeting all the performance measures as outlined in subsection (e) of this chapter, relating to the reallocation pool. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216955 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 Chapter 255. State Delivery Systems 40 TAC sec.255.35 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) Texas Department on Aging proposes the repeal of sec.255.35, concerning staffing of area agencies on aging as a result of the 1992 changes to the Older Americans Act and the complete rewrite of the previous rules regarding operation of Area Agencies on Aging. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Ms. Ammons also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be a greater understanding of the roles and mission of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The repeal of this section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.35. Staffing of Area Agencies on Aging Type of Submission. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216932 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.35 The Texas Department on Aging proposes new sec.255.35 concerning area agency on aging operations. This section is a complete rewrite of the previous rule regarding area agency on aging operations and incorporates materials contained in previous rules pertaining to staffing of area agencies on aging, recent changes as a result of the reauthorization of the Older Americans Act of 1965, as amended, and revisions to simplify and clarify the language of the rule. Specific language regarding monitoring has been eliminated. Additional language has been developed regarding the obligations of the area agency on aging to fulfill responsibilities in leadership, advocacy, systems development, and access to services. Ann Ammons, Director of Field Operations, Texas Department on Aging, has determined that there will not be fiscal implications as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section as proposed will be a greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. The anticipated economic cost to individuals who are required to comply with the section as proposed will be none. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.35. Area Agency on Aging Operations. (a) Area Agency Program Responsibilities. The operations of the Area Agency on Aging encompasses these distinct responsibilities relative to meeting the requirements of the Older Americans Act. (1) Leadership. The area agency on aging shall be the leader relative to all aging issues on behalf of all older persons in the planning and service area. (2) Advocacy. The area agency shall serve as the visible public advocate for the development or enhancement of comprehensive and coordinated community-based system of services in each community through the planning and service area that focus on the needs of low-income minority individuals. (3) Systems development. The area agency will be responsible for systems building in its planning and service area (PSA). The system building includes five components that will result in the interconnection of the elements of planning, development, service delivery, service access and management. System building will further develop or enhance the existence of a comprehensive and coordinated continuum of services within the planning and service area. (4) Access to services. The area agency shall be the access point for older individuals with needs through its information and assistance and case management services. (b) Organization and staffing of the area agency. The area agency must be a single identifiable organizational unit either standing alone or with an umbrella agency and must have a qualified staff. (1) Organization. Area agencies will develop and maintain an organizational structure which will effectively administer Older Americans Act programs and responsibilities. (2) Director. Each area agency must have a full time director able to perform the functions as prescribed in sec.305(c), of the Older Americans Act of 1965, as amended. Each individual selected to perform the duties of the full time director will be identified on the staffing pattern and in job descriptions as either director, area agency on aging, or as manager, area agency on aging, and will be budgeted at 100% of administration in the area plan budget. (3) Qualifications. The full time area agency director should be qualified by education and/or experience to administer, coordinate and supervise all duties and functions of the area agency. (4) Staffing plan. The area agency must have on file for review a staffing plan that identifies the staff assigned to carry out area agency responsibilities and functions as detailed in sec.306, Title III of the Older Americans Act of 1965, as amended. (5) Organizational chart. The area agency shall have an organizational chart which identifies: (A) the area agency on aging as an agency which functions as a separate organizational unit to administer programs under the Older Americans Act, as amended; (B) the area agency on aging director; (C) all paid and volunteer staff; (D) each staff position assigned, including part-time; (E) lines of authority for all paid and volunteer staff; and (F) the percent of time of each position which is dedicated to aging program activities that is compensated through direct charges to the aging contract. (6) Job descriptions. Job descriptions for all positions specified on the organizational chart shall be developed and maintained. They will be signed by the incumbent and will include statements which define the scope, responsibilities, duties, and activities of the area agency director, full and part time staff, and volunteer staff. (7) Hiring preference. Area agencies will give preference in hiring to older individuals. Special consideration shall be given to individuals with formal training in the field of aging (including an educational specialty or emphasis in aging and a training degree or certificate in aging or equivalent professional experience in the field of aging, in accordance with the Older Americans Act, sec.307(a) (11) as amended. (c) Area agency activities. Area agencies will administer the provisions of the Older Americans Act as it relates to Title III programs in accordance with the approved area plan, and state and federal fiscal and programmatic rules, regulations and statutes. (1) System building. Area agenices will facilitate systems building activities for the development of a continuum of services from current service providers to long-term care services for the frail elderly. Area agencies will facilitate systems development in their planning and service area to provide opportunities and protection for older persons in their communities. To do this, area agencies will: (A) identify the needs of older persons on a continuing basis through the gathering and analysis of data. The outcomes of the needs assessment shall be utilized by the area agency in its area plan and should reveal the following: (i) the identification of those persons of greatest economic and social need; (ii) the identification of the needs of the frail elderly; (iii) the identification of services most needed in the rural areas; (iv) the establishment of priorities for funding decisions and service system development within the PSA; (v) the establishment of a plan to target services to those individuals of greatest economic and social need with preference to the low income minority target group as specified in the OAA; (vi) the identification of available resources which meet, or can be used to meet, the needs of older persons; (vii) measurable and attainable objectives and outcomes which are set out in the area plan and development of strategies or action plans which detail the activities to be used in implementing the area plan; and (viii) the establishment of procedures which provide for the utilization of information obtained from public hearings, the advisory council, local officials, older persons and the general public in the planning and service area of the area agencies on aging; (B) develop and publish methods for targeting services for those in social and economic need with preference to the low income minority as specified in the OAA as amended; (C) develop a comprehensive and coordinated system of services delivery; (D) determine the need for protective services, for the identification, prevention and treatment of abuse, neglect, and exploitation of older persons; (E) evaluate the effectiveness of the use of resources in meeting such needs; and (F) enter into contracts with service providers for the provision of services to meet the needs of the elderly as determined in the planning and service region. (2) Planning. The area agency on aging has the principal responsibilities for carrying out activities necessary for effective planning on behalf of older persons in their planning and service area (PSA). Planning responsibilities include: (A) needs assessment; (B) developing and updating the area plan to meet the needs of the older persons as determined by the area agency; (C) coordinating regional planning with all agencies, coalitions, and elderly persons to maximize all funding resources available to meet the needs of the elderly in the PSA; and (D) engaging in program development to fill gaps in services or expand existing service delivery, advocacy, and service access. (3) Training and Technical Assistance. The area agency shall provide for a training and technical assistance program necessary for the implementation of the area plan and programs, including in-service training to staff of the area agency, advisory council members, volunteers, grantees, and service providers under the area plan. (A) The area agency shall develop and implement a training plan for area agency and service provider staff development training each budget year based on information obtained from an assessment of training needs and requests made by the staff, grantees, and service providers under the area plan. The training plan shall include all required training indicated in TDoA standards. (B) The area agency shall assure the availability of area agency and contractor staff to attend training as required by the state agency. (4) Monitoring. Area agencies will conduct at least one on-site annual program monitoring of service providers. These monitoring visits may be announced or unannounced at the discretion of the area agency. Technical assistance will be furnished as needed. Area agencies on aging will monitor accomplishment of program outcomes and determine their effectiveness. Monitoring activities shall include: (A) analysis of the performance of all service providers to which the area agency has awarded a contract; (B) a monitoring procedure will be established by the area agency that includes written reports on findings to the service providers with a request for corrective action plan, follow up and appropriate correspondence to verify plan was accomplished and documentation of that accomplishment. (5) Advocacy. Area agencies shall provide leadership and be a visible advocate for older persons within the PSA. Activities on behalf of the elderly are: (A) involvement of older persons and other citizens in program planning ensuring community awareness of and involvement in addressing their needs; (B) reviewing and commenting on state plans and grant applications, budgets, and policies which affect older persons; (C) conduct public hearings to provide opportunities for older persons and those representing older persons to voice their needs and concerns; (D) coordinating area planning and development of activities related to the purposes of the Older Americans Act; (E) representing the interests of older persons before legislative, executive and regulatory bodies in their PSA; (F) providing technical assistance to agencies, organizations, associations or individuals representing older persons; (G) acting on behalf of older individuals by receiving and investigating complaints and resolving specific problems; and (H) organizing coalitions which influence other community agencies and organizations to make changes which will benefit older persons, especially the low income minority and those with the greatest social and economic need as targeted in the OAA. (6) Advisory councils. Area agencies will establish, utilize, and support an advisory council. (A) Responsibilities of the advisory council are: (i) advise on all matters relating to the development, administration and implementation of the area plan and its amendments; (ii) conduct public hearings on the area plan; (iii) review and comment on the area agency's budget prior to its submission to the TDoA; (iv) review and comment on community policies, programs and actions affecting older individuals, represent the interests of older persons, and encourage the involvement of older persons; (v) ensure, in collaboration with the area agency, that the advisory council membership is constituted as follows: (I) more than 50% of the members shall be 60 years of age or older, and include those of greatest economic and social need and clients of services funded by the area agency; (II) minority older individuals shall be represented at least in proportion to their number in the PSA; (III) each county within the PSA shall have at least one representative on the area agency advisory council; (IV) local elected officials will be members; (V) members of the general public will be members; (VI) providers of veterans health care (if appropriate); (VII) participants of Title III services will be members; (VIII) persons with disabilities and/or their caretakers and/ or caregivers; and (IX) additional membership will be determined by the area agency. (B) Conflict of interest. Council members who are Title III subcontractors shall not vote on agenda items that would be considered conflict of interest. This action should be recorded in the minutes of the meeting to stand as an official record of the abstention. A conflict of interest would be indicated when an individual is: (i) employed by, cohabitates with, or is the spouse of an employee or council member, or participates in the management of a business entity, agency or other organization regulated by or receiving funds from Title III programs; (ii) uses or receives a substantial amount of tangible goods, services, or funds from programs authorized by the Older Americans Act of l965 as amended. (C) Bylaws. Area agencies shall develop and publish advisory council bylaws governing the following: (i) role and functions of the advisory council; (ii) number and characteristics of membership; (iii) procedures for membership selection; (iv) the procedures for the conduct of the advisory council's business and activities; (v) establish scheduled meeting requirements; and (vi) procedures for selection of representation to the state citizens advisory council. (D) Support of advisory council. The area agency shall support the council to facilitate its purpose and functions as follows: (i) orient and train new advisory council members; (ii) share agency information with council members; (iii) brief members about upcoming programs and problems affecting older persons; (iv) update members on state and federal legislative actions; (v) meeting preparations, including notification, agenda and minutes; and (vi) review and draft recommendations for action by the grantee board. (d) Area agency fiscal responsibilities. Area agencies on aging must demonstrate and maintain fiscal integrity in order to assure compliance with the requirements of the Older Americans Act of l965, as amended; Titled 45 CFR, Part 74; OMB Circular A-87 or A-122; OMB Circular A-128 or A-133; and all Texas Department on Aging Policies and Rules as published in the Texas Administrative Code (TAC) ; and, with all state and local laws as pertains to the operation of an Area Agency on Aging. In addition, the following financial standards will be followed to structure area agencies on aging. (1) Records maintenance. The area agency on aging's provisions for maintenance of records shall include the following. (A) Area agencies shall establish written procedures to adequately assure proper maintenance and retention of all financial records, supporting documents, statistical records, and all other records relating to its performance. All of the aforesaid records shall be kept at the Area Agency on Aging site, and shall be maintained for a period of five years following the end of Grantee's fiscal year or indefinitely if audit findings or other disputes or litigation have not been resolved. Multi-site Area Agencies on Aging may maintain all records at a designated central location (administrative headquarters, etc.) for purposes of this section. (B) The Area agency shall assure that all service providers adhere to the requirements for proper maintenance of records as specified in subsection (d)(1)(A) of this section relating to maintenance of records. (2) Records accessibility. The area agency on aging's provisions for accessibility of records shall include the following. (A) The area agency on aging shall give the Texas Department on Aging, the Comptroller General of the United States, and the State of Texas, through any authorized representatives, the access to and right to examine all records, books, papers, contracts, or other documents related to this contract. Such right of access shall continue as long as such records, or any of them, are in existence. (B) The area agency shall assure that all service providers adhere to the requirements for proper accessibility of records as specified in subsection (d)(2)(A) of this section referring to records accessibility. (3) Audits. The area agency on aging shall provide an independent audit as follows. (A) The area agency on aging shall provide and furnish the Texas Department on Aging an annual audit by an independent certified public accounting firm within one hundred eighty (180) days of the end of the Grantee's fiscal year. (B) The audit must cover the entire organization and be conducted in accordance with generally accepted auditing standards. Audits performed under this subsection are subject to review and resolution by the Texas Department on Aging. (C) The area agency on aging receiving more than $25,000 in federal funding from all sources must provide an audit in accordance with the standards for financial and compliance audits contained in the Standards for Audits of Governmental Organizations, Programs, Activities and Functions, issued by the United States General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments, or OMB Circular A-133 Audits of Institutions of Higher Education, and Other Nonprofit Organizations, as applicable. (D) The area agency on aging understands and agrees that the Area Agency on Aging shall be liable to the Texas Department on Aging for any costs disallowed as a result of unresolved questioned costs revealed during the audit. (4) Payment suspension and grant termination. (A) In the event that monitoring/evaluation activities by the Texas Department on Aging disclose serious deficiencies in the operation of an Area Agency on Aging under provisions of all Texas Department on Aging Policies and Rules as published in the Texas Administrative Code (TAC) under Chapter 251 et seq. (Title 40 Part IX, Texas Administrative Code), the Texas Department on Aging may elect to suspend or terminate the Area Agency on Aging's grant upon 15 days written notice from the Texas Department on Aging to the Area Agency on Aging. (B) The area agency on aging, upon notification of such suspension or termination, shall have the right to appeal such suspension or termination following procedures outlined in 40 TAC sec.257.71, concerning right to appeal. (C) The area agency on aging's grant may be terminated upon the occurrence of any of the following events: (i) discontinuance of funding to the Texas Department on Aging from the Administration on Aging; or (ii) failure of the area agency on aging to comply with all Texas Department on Aging Policies and Rules as published in the Texas Administrative Code (TAC) under Chapter 251 et seq. (Title 40 Part IX, Texas Administrative Code); or (iii) mutual agreement between the area agency on Aging and the Texas Department on Aging. (D) If the area agency on aging's grant is terminated, the Texas Department on Aging may require the area agency on aging to transfer title and deliver to the Texas Department on Aging any property acquired by federal funds. (5) Recapture of payments. Recapture of payments may occur when an area agency on aging has failed to comply with all Texas Department on Aging Policies and Rules as published in the Texas Administrative Code (TAC) under Chapter 251 et seq. (Title 40 Part IX, Texas Administrative Code), or if the Area Agency on Aging has received funds in excess of those actually earned. The Texas Department on Aging may take appropriate action including the recapture of payment and/or withholding of funds in such cases that overpayment has occurred. (6) Allowability. All purchases made with grant funds shall follow the criteria of allowability as prescribed in OMB Circular A-87 or A-122 and the following: (A) All purchases must have been made by actual receipt of the merchandise or issuance of a purchase contract, voucher, or other legal document that binds both parties to the transaction, no later than September 30 of the fiscal year for which funds have been budgeted and encumbered. (B) Actual receipt of the merchandise and payment must be made no later than the December 15 immediately following the fiscal year for which funds have been budgeted and encumbered. (C) Merchandise placed on order by a purchase order but not actually received by December 15 will have to be re-justified and paid for with current year funds. (7) Debarment or suspension requirements. Dealing with entities under debarment or suspension shall be prohibited as follows. (A) The area agency on aging shall not, using reasonably prudent judgement, deal with any person, business, or other entity which has been suspended or debarred from receiving federal funds under 45 Code of Federal Regulations 76, Government-wide Debarment and Suspension (non-procurement) and Government-wide Requirements for Drug-Free Workplace (Grants), subsection 200, or 48 Code of Federal Regulations 9, Contractor Qualifications, subsection 4. (B) The area agency on aging shall assure that all service providers adhere to the requirements regarding debarment and suspension as specified in subsection (d)(7)(A) of this section, relating to use of prudent judgment and dealing with suspended entities or persons. (8) Disallowance of costs. Disallowance of costs shall occur as follows. (A) The allowable use of federal, state, and matching credit funds, in accordance with OMB Circulars A-87, A- 122, and other applicable laws, regulations, and circulars promulgated by recognized authoritative bodies, may be reviewed by independent audit and/or subgrantee monitoring by the Texas Department on Aging, as required by OMB Circular A-128. (B) Costs found to be unallowable, as defined in subsection (d)(8)(A) of this section relating to disallowed costs, shall be designated as questioned costs. (C) Questioned costs shall represent costs that have been determined to be unallowable after the close of a grant year and, in the case of monitoring, submission of the final financial status report, Form 269. Disallowance is established when an area agency on aging receives notification of a proposed action, in accordance with 40 TAC sec.257.12, Notice of Proposed Action, resulting from questioned costs which remain unresolved at the time of such notification. (D) In accordance with 40 TAC sec.257.11 of this part, referring to hearings for area agencies, an area agency on aging shall have the right to a hearing concerning the issuance of, or basis for the disallowance, and shall exercise such right by following the procedures in 40 TAC sec.257.13, Request for Hearing. (E) Any area agency on aging having funds recaptured in accordance with subsection (d)(5) of this section, relating to recapture of funds, because of a disallowance shall waive all rights to such funds and shall not receive any of the funds upon reallocation. (F) Disallowance resulting from questioned costs revealed during independent audit shall be issued within 30 days following the failure to resolve all such questioned costs within the six months allowed for resolution in accordance with OMB Circular A-128, sec.14. (G) Disallowance resulting from questioned costs established during monitoring by the Department shall be issued within 30 days following the failure to resolve all such questioned costs within the timeframe established in the monitoring report. (9) Federal cash management requirements, 45 Code of Federal Regulations 92, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, and 31 Code of Federal Regulations 205, Withdrawal of Cash from the Treasury for Advances Under Federal Grant and Other Programs, respectively, requires that all Area Agencies on Aging comply with the following. (A) Under 45 Code of Federal Regulations 92.21(b), methods and procedures for payment shall minimize the time elapsing between the transfer of funds and disbursement by the grantee or subgrantee, in accordance with Treasury regulations at 31 Code of Federal Regulations Part 205. (B) Under 31 CFR 205.4(a), cash advances to a recipient organization shall be limited to the minimum amounts needed and shall be timed to be in accord only with the actual, immediate cash requirements of the recipient organization in carrying out the purpose of the approved program or project. The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the recipient organization for direct program costs and the proportionate share of allowable indirect costs. (C) In order for area agencies on aging to comply with the minimization of funds, two procedures must be instituted within the fiscal departments. (i) Advance funds must be requested from the Texas Department on Aging in a manner consistent with each agency's payment schedule and one which will minimize the time between receipt and disbursement. Agencies making only monthly payments may continue to request money monthly. Agencies making payments more often should request money twice each month. Requests should be timed to disbursement needs. (ii) The form, "Federal Funds Daily Cash Balance", must be maintained beginning January 1, l993. This form must be completed on a daily basis or as payments using federal funds are made. (D) Any area agency on aging that cannot or does not choose to adhere to the requirements in paragraph (9) (A) and (B) of this section, relating to cash management requirements, may request reimbursement of funds per 45 Code of Federal Regulations 92, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, subsection 21(d). (10) Budget and budget amendments. All budget and budget amendment submissions shall be required to meet the following requirements. (A) For all original budget submissions. (i) All area agencies on aging shall be required to submit an original budget as part of their area plan prior to the beginning of each federal fiscal year. The budget must quantify the persons and units to be served, the expenses to provide services, and the resources available to fully fund such expenses to assure compliance with the goals and objectives detailed in the area plan narrative in order to produce the desired outcomes of the AAA and fulfillment of the AAA's mission, as stated in the Area Plan. (ii) The original budget submission must be received by the due date as prescribed by the Texas Department on Aging (TDoA). The Department may request each AAA to set its own due date within a prescribed parameter. If the date of receipt is established by the AAA, it becomes the official required submission date. (iii) The original budget must use the planning figures provided by the Department in allocating all funds provided by the Department. (iv) The area agency must ensure that financial standards regarding adequate proportion, match requirements, and maintenance of effort are budgeted in all submissions. In the event that an area agency provides services through case management and utilizes the direct purchase of services pool for the resources, verification of intent to meet these standards shall be submitted in a format to be prescribed by the Department if not budgeted in contracted services. (v) The area agency must complete all supporting documentation, as prescribed by the the Department, for submission with the budget. (B) For all budget amendment submissions. (i) An amended budget shall be due when there is a change of scope in the operations of the area agency change of scope is a situation or event which could alter or affect an area agency's ability to comply with its approved area plan. The following are considered changes in scope. (I) If funding increases or decreases by 10% or more of federal Title III funds on a cumulative basis into or out of a fund category for services provided under "Part B", "Part C-1", or "Part C-2". This provision shall not apply to the administrative budget. In addition, this provision shall not apply to AAA budgets placing all service funds, except those budgeted as direct service, into a direct purchase of services pool under the case management service. (II) A service which was identified and approved in the area plan becomes unavailable within the planning and service area of the area agency. (III) A contracted service is proposed to be established and funded by the area agency which was not identified and approved in the area plan. This provision shall not apply to vendor services established, in the case of area agency that budget service funds into a direct purchase of services pool under the case management service. (IV) The area agency requests a waiver to provide a service directly which was not identified and approved in the area plan. (V) If expenditures increase by 10% or more of the allocation of federal Title III funds into a fund category for services provided under "Part B", "Part C-1", or "Part C-2", when an area agency places all service funds, except those budgeted as direct service, into a direct purchase of services pool under the case management service. Other changes may occur which the area agency may feel will qualify as a change of scope. These issues will be addressed on an individual basis. If warranted, the situation may become specifically identified as a change of scope for the benefit of all area agencies (ii) An amended budget must be submitted and approved, regardless of the amount of funds transferred, prior to: (I) contracting for a previously unbudgeted and unapproved service; or (II) the area agency conducting a service directly, when waiver is required, which was not identified and approved in the area plan and budget; or (III) the expenditure of unbudgeted funds resulting from an increase in the approved administrative budget, regardless of the amount. (iii) An amended budget must be submitted for approval within 10 normal work days of: (I) discontinuance of a service which was identified and approved in the area plan and budget; or (II) changes in funding that increases or decreases a funding category by more than the cumulative 10% allowable of federal Title III funds, except in the case of area agencies that budget all service funds into a direct purchase of services pool under the case management service; or (III) any decrease in the approved administrative budget, regardless of the amount; (IV) when expenditures increase in a funding category by 10% or more of the allocation of federal Title III funds in the case of an area agency that budgets all service funds into a direct purchase of services pool under the case management. (iv) The area agency must complete all supporting documentation, as prescribed by the Department, for submission with the budget amendment. (v) A final budget amendment will be required of all area agencies unless: (I) no funds have been transferred between funding categories since the last approved budget or amendment; and (II) no services have been added or deleted since the last approved budget or amendment; and (III) the AAA provided no additional direct services since the last approved budget or amendment. (vi) The final budget amendment must be received by August 15 of each fiscal year or as otherwise prescribed by the Department. (e) Area agency accountability. Area agencies on aging shall be accountable to meet all programmatic and financial performance targets as outlined in its area plan and the requirements established by its contract with the Department. (1) Performance measures. Area agencies on aging will meet the following performance measures. (A) All reports, budgets, budget amendments, and other required submissions to the Department shall be accurate and have sufficient documentation to verify such accuracy upon review by the Department during any on-site review. (B) An area agency must ensure, through appropriate contractor monitoring, that service standards established by the Department are met and that the well- being of older individuals within its service area is maintained. The area agency shall be able, through appropriate documentation, to demonstrate the successful accomplishment of all established service standards. (C) On an annual basis, the area agency on aging achieves 90% of planned service units, unduplicated persons, and total expenditures for the area agency on aging's four largest (defined by dollar amount) budgeted programs. (D) The area agency on aging will maintain a timely reporting rate, on an annual basis, of 100% for Forms 300, 269, Ombudsman, other required reporting obligations as prescribed by the Department and area plan objectives and outcomes, unless it has received written extension in accordance with subsection (e)(1)(F) of this section relating to applications for extensions for a period not to exceed three working days. (E) Area agencies on aging must file on time their area plan and any required amendments, all monitoring responses, Budget and Budget Amendments, unless written extension, not to exceed ten working days, has been granted in accordance with subsection (e)(1)(F) of this section referring to requests for extensions. (F) All extensions must be requested in writing prior to the due date. All requests must provide justification for the need of extension and no more than four extensions shall be approved during any fiscal year. (G) The area agency on aging shall meet, unless written waiver is obtained; all requirements for adequate proportion with regard to access, in-home services, and legal services; and, maintenance of effort with regard to legal services and Ombudsman activities. (2) Performance reports. On a timely basis, not to be less than quarterly, the Department may present to the Board of the Department a performance report for all area agencies on aging detailing the adherence to, or lack thereof, of the financial and reporting requirements outlined in subsection (d) of this chapter relating to the AAA fiscal operations standards. Such information may be the basis for Department actions such as: (A) qualifying for carryover funding; (B) inclusion in the carryover reallocation pool; (C) institution of administrative sanctions; or (D) implementing procedures leading to withdrawal of AAA designation. (3) Compliance with performance standards. Performing up to the standards outlined in subsection (d) of this chapter referring to area agency fiscal responsibilities will provide positive incentive for AAAs in such ways as: (A) ability to qualify for carryover funds following the procedures as prescribed in 40 TAC sec.251.7, of this Title referring to carryover policy; and (B) ability to participate in the reallocation of carryover funds deobligated from ineligible area agencies on aging. (4) Failure to meet performance standards. Failure to meet the required standards as outlined in this title may result in the following actions being taken by the Department. (A) First notification of standards deficiencies to the Area Agency on Aging by the Department of any such deficiency with the following information provided: (i) a complete explanation of the standards which have not been met; and (ii) complete and detailed corrective actions required to be completed by the Area Agency in order to meet the standards; and (iii) a timeframe within which the corrective actions must be completed. (B) If corrective actions are not complete and acceptable within the timeframe established under paragraph (a)(4)(iii) of this section relating to establishment of a timeframe for corrective actions, second notification of standards deficiencies to the Area Agency on Aging by the TDoA shall be sent by certified mail with the following information provided: (i) a complete explanation of the standards which have not been met; and (ii) complete and detailed corrective actions, which may include additional reporting, required to be completed by the Area Agency in order to meet the standards; and (iii) an explanation for the unacceptability of any corrective actions which may have been taken by the Area Agency on Aging; and (iv) a timeframe within which the corrective actions must be completed; and (v) notification that the area agency on aging has been placed in a probationary status and that all administrative funds shall be withheld by the Department until such time as the area agency on aging resolves all deficiencies outlined in the notification of standards deficiencies and is removed from probationary status; and (vi) notice that failure to resolve all deficiencies may result in the TDoA seeking withdrawal of designation as an area agency on aging following the procedures outlined in 40 TAC 255.34 of this Title referring to withdrawal of area agency designation and continuity of services; and (vii) notice that the area agency on aging may appeal the actions being taken by the Department by following the procedures established in 40 TAC sec.257.11 of this Title referring to appeal procedures. (f) Uniform logo for area agencies on aging. Each area agency on aging will use the logo designed by the Department to assure a uniform, statewide symbol for area agencies on aging designation for public information purposes. The following logo will be used. [graphic] (1) The logo will be used for at least the following: (A) public service announcements; (B) pamphlets; (C) brochures; (D) signs; (E) newsletters; (F) business cards; (G) stationery; (H) displays; (I) reports; (J) other means of public communication media whenever possible. (2) Failure to physically demonstrate adherence to this policy will be considered non-compliance with this rule. (3) Use of the Department's logo is required for all area agencies on aging designated under Title III of the Older Americans Act, as amended, no later than December, 1993. (g) Uniform telephone listings. The telephone number of each area agency on aging, the area agency on aging's information and assistance toll-free or collect number, and the area agency on aging's nursing home ombudsman toll-free or collect number will appear in each telephone directory that is published by the provider of local telephone service, for residents in any geographical area that lies in whole or in part in the planning and service area served by the area agency on aging. (1) The listings will appear in the unclassified sections and government sections under the listing "SENIOR CITIZENS SERVICES," "AGING," "SOCIAL SERVICES," or other appropriate sections of the phone book if these listings are not available. (2) The listings will appear in the classified section of the telephone directories of the major metropolitan area of the area agency on aging, and to the extent possible, in other areas of the area agency on aging's service area. (3) The listing in the unclassified section and classified section is to begin with the words: Area Agency on Aging to position it at or near the top of each heading. The listing will appear in boldface type, as follows: Area Agency on Aging of (name of area) Business Office area code and telephone number Information and Assistance toll-free or collect number Nursing Home Ombudsman toll-free or collect number (4) These listings are to be completed by no later than the next printing cycle of the telephone directory of each provider of local telephone service. (5) These listings will be used in all other service directories, public service announcements, pamphlets, brochures, reports, newsletters, stationery, and other means of public communication media whenever possible. (6) Failure to physically demonstrate adherence to this policy will be considered non-compliance with this rule. (h) Listing of the Texas Department on Aging as primary funding source by Area Agencies on Aging. All area agencies on aging designated under Title III of the Older Americans Act, as amended, will cite the Texas Department on Aging as its primary funding source. (1) The phrase "Funded by the Texas Department on Aging" will appear in all news releases, public service announcements, pamphlets, displays, signs, brochures, reports, stationery, and other means of public communication media. (2) Use of this phrase in all public communication media is effective upon adoption of this rule. Existing stocks of information items may be expended, and once expended, reorders will fall under this requirement. Existing non- expendable items such as signs and displays will be required to adhere to this requirement no later than December, 1993. (3) Failure to physically demonstrate adherence to this policy will be considered non-compliance with this rule. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216931 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 Chapter 255. State Delivery Systems Statutes and Regulations 40 TAC sec.255.36 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department on Aging proposes the repeal of sec.255.36, concerning operating an area agency on aging as a result of the revision and relocation of much of the contents of this chapter elsewhere in the Texas Administrative Code as 40 TAC sec.255.35. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Ms. Ammons also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be greater understanding of the processes required of area agencies on aging as a result of simplify the language of the rule, removing barriers and reducing the total amount of information previously requested of applicants. In addition, the relocation of information pertaining to operating an area agency into a single chapter of the code will simplify location of these requirements. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The repeal of this section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.36. Operating an Area Agency on Aging. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216959 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.36 The Texas Department on Aging proposes new sec.255.36, concerning approval of direct services applications by area agencies on aging. This section is a complete rewrite of the previous rule regarding policies and procedures for approval of direct services applications by area agencies on aging. This chapter establishes policies and procedures to be followed when area agencies on aging (AAA) foresee the need to provide a service(s) directly to the elderly. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be greater understanding of the processes required of area agencies on aging as a result of simplify the language of the rule, removing barriers and reducing the total amount of information previously requested of applicants. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.36. Policies and Procedures for Approval of Direct Services Applications by Area Agencies on Aging. (a) Purpose. This chapter establishes policies and procedures to be followed when area agencies on aging (AAA) foresee the need to provide a service(s) directly to the elderly. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Direct services-Activities performed to provide any of the approved Title III services directly to an individual older person by the staff of an area agency on aging. (2) Regularly contracted period-The federal or state fiscal year, unless otherwise specified. (3) Emergency period-A time period, not to exceed 90 days or a period which has been negotiated by the Texas Department on Aging (TDoA) and the area agency on aging as appropriate for the situation. (c) Processing direct service applications. (1) Justification for submission. The three conditions, as provided by the Older Americans Act, 307 (b)(10), as amended, when an area agency on aging may submit an application to provide a service directly are when: (A) adequate supply of services. The area agency on aging may provide a service(s) directly when evidence indicates that an adequate supply of a service does not exist in the planning and service area, or when a service provider has failed to provide the service(s) in accordance with the provisions of the contract; (B) administrative functions. These services do not require a submission of a request to provide service(s) directly as they have been declared to be independent and separate from the delivery of other services. The area agency on aging must, however, include these services in the area plan, or area plan amendment pertaining to the program year as prescribed by the Texas Department on Aging. The service(s) related to the area agency on aging's administrative function are: (i) outreach and advocacy; (ii) information and referral; (iii) information and assistance; (iv) case management; (v) benefits counseling; and (vi) transportation if provided by another division of the grantee agency. (C) More economical service. When service(s) of comparable quality can be provided more economically by the area agency on aging. (2) When applications may be submitted. When a determination is made that conditions exist which warrant the submission of an application to provide service, the area agency on aging may submit the application: (A) at the time of submission of the area plan or area plan amendment; (B) when it becomes apparent that the area agency on aging must provide services to comply with the intent of the Older Americans Act; (C) emergency situations of no longer than 90 days or a period which has been negotiated by the Texas Department on Aging. (d) Documentation requirements. To permit the Department to render a factual decision on the direct service application, the AAA must submit adequate documentation to support their position for supplying the service(s) directly, including at least a summary or "not applicable" statement, with justification, on each of the following six sections. All of the items must be readily available for review at the AAA by the Texas Department on Aging. Additional information may be required for clarification. The area agency on aging shall submit the following to document these conditions: (1) information about the level of need for that service in the region as supported by needs assessment data; (2) a list of the providers in the region who are currently providing, or could provide, the service and the level of service being provided by each; (3) documentation of the efforts made by the area agency on aging to find other provider(s), as follows: (A) publication date for the RFP; (B) copies of letters sent to potential providers; (C) the log or roster of agencies submitting competing proposals; (D) a copy of the proposal(s) submitted by other service providers for the services. (If no proposal(s) were submitted, a letter signed by the grantee executive director should certify this fact); (4) as a result of service provider default, the area agency on aging should gather copies of the following items which provides documentation for the area agency on aging's action in taking over the service(s): (A) the executed contract; (B) the service provider's RFP; (C) program performance reports submitted by the service provider for the current contract period; (D) reimbursement vouchers submitted to the area agency on aging prior to notification of the intent to terminate service; (E) the letter from the subcontractor or the AAA notifying the other party of the intent to terminate the contractual agreement between them and all other associated documents; and (F) the letter from the area agency on aging or contractor acknowledging receipt. (NOTE: Area agencies on aging must follow grant termination procedures specified in the RFP and contract). (5) an amended area plan which details the area agency on aging's plan for assuming direct service provision which will include: (A) proposed AAA service plan for directly providing the service; (B) the amended AAA staffing structure and job descriptions indicating who will perform the direct service; (C) a budget amendment request which reflects the requirements for direct provision of service(s); (D) an estimate of the length or duration that the AAA will provide the service(s); (E) documentation by the AAA of how they can provide the service more economically than any other provider; (6) emergency situations. If an emergency exists which threatens the health and welfare of a significant segment of the elderly population, such as a breach of contract, unlawful activity, or severe mismanagement, the AAA may, after notifying TDoA and getting preliminary approval, move to immediately provide the services in question. (e) Action by the Texas Department on Aging. The Texas Department on Aging approves requests submitted under this title, by an area agency on aging to provide a service(s). (1) In cases when an area agency on aging requests approval to provide services at the beginning of a new planning period, or at the beginning of a subsequent year of that planning period, the Department reviews all documentation and competing proposals submitted in accordance with this chapter and prepares a recommendation for submission to the Texas Board on Aging for consideration during the area plan approval process. This documentation becomes a part of the area plan. (2) In cases where an area agency on aging requests approval under this chapter to provide emergency services for 90 days or a negotiated period during a given fiscal year, the Department reviews all the documentation and prepares a letter to the requesting area agency on aging of approval or disapproval. All documentation will become a part of the area plan or area plan amendment. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216957 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.37 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department on Aging proposes the repeal of sec.255.37, concerning contract and reimbursement methodology for aging services provided under the Older Americans Act as a result of a complete revision of this rule and the publication of this revision as 40 TAC sec.255.38, concerning contract and reimbursement methodology for area agencies on aging. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Ms. Ammons also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.37. Contract and Reimbursement Methodology for Aging Services Provided under the Older Americans Act. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216962 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.37 The Texas Department on Aging proposes new sec.255.37, concerning area agency on aging program development. This section is a complete rewrite of the previous rule regarding Area Agency on Aging applications for program development to simplify and clarify the language of the rule and eliminate potential barriers to the application process. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department. sec.255.37. Area Agency on Aging Program Development. (a) Purpose. This chapter establishes policies and procedures to be followed when area agencies on aging foresee the need to conduct program development services. (1) Definition. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. Program development is defined as a supportive service that includes those activities which result in the stimulation and creation of additional services and programs to remedy gaps and deficiencies in presently existing services and programs. Program development activities must meet two major characteristics. Program Development must be specifically defined, and it must be limited to accomplish a specific outcome. (2) Unit of service. Program development does not have a unit of service. Time spent on Program Development activities shall be recorded on the time sheets of the area agency staff performing the activity and be compensated based on accurate documentation. (3) Method of service delivery. Program development is a service directly related to the administrative function of area agencies on aging and will be performed by area agency staff as a direct service. (4) Service objectives. Program development will be used to establish a new service/s or improve, expand, or integrate existing services. (5) Service activities. While it is impossible to provide an all inclusive list of activities which could be categorized as program development, the following are examples of program development activities. In these examples, program development includes such activities as planning, needs assessment, service development and/or expansion into new areas in the planning and service area. The area agency is require to include the proposed program development activities in the area plan for determination of acceptability by the Texas Department on Aging. The proposed activities must be approved in the area plan before expenditures can occur. (6) Standards of performance. Program development activities should be directed toward those service providers who have gaps in service, who have a potential to expand to reach currently unserved eligible elderly of the target population, to increase participation, and/or integrate fragmented systems for systems building in the planning and service area. (7) Approval of program development services. Program development must be approved by the Texas Department on Aging prior to implementation by an area agency on aging. (A) Area agencies on aging, consistent with the approved budgeting cycle, will submit the details of their proposals for program development to the general public during public hearings for review and comment. (B) Program development goals, objectives, and outcomes will be developed in the area plan or the area plan amendment. These goals and objectives will include a clear statement of the objective for the planning period and will be evaluated by the TDoA based on the following: (i) a defined and measurable output has been stated as the program development objective in the area plan; (ii) a defined and measurable outcome has been stated as the program development objective in the area plan; (iii) the person/s performing the program development has been identified and budgeted; (iv) the beginning and ending dates of program development activity have been specified; and (v) the anticipated accomplishments of the activity, including significant dates by which to measure progress toward the program development objective, have been established. (8) The Texas Department on Aging will not fund program development activities as a cost of supportive services for the administration of area plans until it has first spent 10% of the total of its combined allotments under Title III on the administration of area plans. In order to implement this policy area agencies must incorporate program development costs as an integral part of their administration allocation, matching it at the rate of 75/25. (9) Additional clarification. Program Development is distinct from area plan administration activities. It is not cyclical. Administration involves the ongoing planning and management activities of the area agency related to the development and administration of the area plan, including those activities carried out by the area agency that in general promote the development of a comprehensive and coordinated services system. Program development is time limited, and must be approved by the TDoA on an annual basis. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216960 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.38 The Texas Department on Aging proposes new sec.255.38, concerning contract and reimbursement methodologies for area agencies on aging which specifies various methods of procurement which may be used for purchase of services under Title III of the Older Americans Act, as amended. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department. sec.255.38. Contract and Reimbursement Methodology for Area Agencies on Aging. (a) Authority to contract. The authority for area agencies to contract is based on the Older Americans Act of 1965, as amended, and its regulations; HHS regulations on Administration of Grants; Title 45 Code of Federal Regulations, Part 74; Title 45 Code of Federal Regulations, Part 92; Title 45 Code of Federal Regulations, Part 1321, et seq.; Title 45 Code of Federal Regulations, Part 91; and all Texas Department on Aging Policies and Rules as published in the Texas Administrative Code (TAC) under Chapter 251 et seq. (Title 40 Part IX, Texas Administrative Code); and with all state and local laws as pertains to this contract and its attachments. (b) Types of contracts. The Texas Department on Aging has authorized the use of four contracting methodologies for the procurement of goods and services by area agencies on aging. These contracting methods are known as cost reimbursement, performance based unit rate, direct purchase of services, and sole source procurement. (1) Cost reimbursement. In cost reimbursement contracts, the area agency pays the contractor on a reimbursable basis for services rendered. The contractor agrees to deliver specific services on an "at risk" basis; that is, the AAA will make payment of actual expenses based on a pro rata share that Title III funds represents of the total funds budgeted in the PLANS document for each specific service. Adjustments to the share of expenses that Title III funds will pay will be considered only in instances where a service provider experiences significant operating losses due to events over which they have no control, or reasonably could not have anticipated or in instances where a service provider experiences excess revenues over operational costs due to unanticipated and/or unbudgeted additional resources or reductions in expenses due to a change in cost allocation methodology. "At risk" reimbursement will not be adjusted to offset poor management planning. Any adjustment to an "at risk" reimbursement rate will be judged on its own merits. It is the responsibility of the contractor requesting an increase in the share of expenses that Title III will pay to provide adequate documentation to assure the AAA that the increase is warranted due to circumstances beyond their control. It is the responsibility of the AAA requesting a decrease in the share of expenses that Title III will pay to provide adequate documentation to assure that the decrease is warranted. (2) Unit rate performance based contract. In this contracting method, the area agency agrees to make payment to the contractor in the amounts and upon the terms, provisions and budgets as set forth in the contract as a result of negotiation of a suitable unit rate. The area agency pays the contractor on a unit rate reimbursement basis for services rendered. The contractor agrees to deliver specific services on an "at risk" basis. Adjustments will be considered only in instances where a service provider suffers operating losses due to events over which they have no control, or reasonably could not have anticipated or instances where a service provider experiences significant excess revenues over operational costs due to unanticipated and/or unbudgeted additional resources or reductions in expenses due to a change in cost allocation methodology. "At risk" unit rates will not be adjusted to offset poor management planning. Any adjustment to an "at risk" unit rate will be judged on its own merits. It is the responsibility of the contractor requesting rate increase to provide adequate documentation to assure the AAA that the increase is warranted due to circumstances beyond their control. It is the responsibility of the AAA requesting a rate decrease to provide adequate documentation to assure that the decrease is warranted. (3) Direct purchase of service contracts. Direct purchase of service (DPS) contracting is an alternative contracting methodology for the purchase of services. It allows for the purchase of service on a client-by-client basis instead of contracting annually by either performance based or cost reimbursement method. The area agency sets aside a sum of money, know as a direct purchase "pool," to be used by Case Managers to develop an individual's service plan. DPS provides access to OAA resources to those in greatest need and is an effective targeting pool, it allows many more providers to participate in Title III programs and broadens access to service while providing increased flexibility for case management, permits more direct monitoring of service dollar expenditures, ties up fewer dollars in administrative costs and presents a case manager with more control over commitment of resources to individual clientele. (4) Sole source procurement. This method may be used only when the award of a contract is infeasible under the other procurement methods. In this event, area agencies will comply with the procedures established in 45 Code of Federal Regulations, Part 92.36(d)(4), Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, relating to procurement by noncompetitive proposals. (c) Contracting processes. Area agencies, using the unit rate performance based or cost reimbursement methods generally follow the pattern detailed as follows. (1) Requests for proposals. Area agencies on aging annually issue requests for proposals (RFPs) to be completed by applicant agencies desiring to provide aging services in Texas. Area agencies must comply with competitive bidding procedures for any available funds in excess of $25,000 in the aggregate. Funds in excess of $25, 000 many not be subdivided to circumvent the intent of this policy. Area agencies should require additional information on which to judge the qualification of applicants and their potential to be successful service providers. RFPs issued by area agencies include part or all of the following information: (A) a section detailing proposal requirements which contain the purpose, eligibility requirements, contact person, contract period, format, review criteria, scope, and appeal procedures for bidders. Also included are particulars regarding the purpose of the RFP, authority of the issuing agency, submission procedures, required proposal content, proposal review criteria, appeals procedures, award process (including description of performance based unit rate contracts), and contractor responsibilities; (B) background information which consists of the service area, target population, services and funding for the services to be procured; (C) contract award considerations which detail any special factors regarding the contract, how payment will be made for service delivery, and funding requirements which must be complied with by the service provider; (D) service requirements and obligations of the successful bidders which encompasses records maintenance requirements, evaluation and assessment conditions, requirements to assure non-discrimination, drug free work place, confidentiality, contributions, reporting requirements training, coordination, and others which must be observed to assure compliance with federal and state requirements; (E) audit requirements which conform to the requirements set forth in Standards for Audits of Governmental Organizations, Programs, Activities and Functions, issued by the United States General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments, or OMB Circular A-133 Audits of Institutions of Higher Education, and Other Nonprofit Organizations, as applicable. (d) Prescribed contracting methods for Specific Services. The Legislature and the Texas Department on Aging have identified specific services which must be contracted either by performance based contracting or by cost reimbursement. (1) The following services will be contracted for using the performance based unit rate methodology. (A) congregate meals; (B) home delivered meals; (C) legal assistance; (D) homemaker; (E) adult day care; (F) case management; (G) demand/response transportation; and, (H) emergency response services. (2) Other services authorized by the Older Americans Act, as amended, may be contracted for either by performance based unit rate contracting or cost reimbursement, as determined by the area agency on aging. (3) All services may be purchased using the direct purchase of service method when it is necessary to meet the needs of elderly clients who are participating in Case Management programs. The DPS RFP and contracting methods are detailed in 40 TAC sec.255. 367, Direct Purchase of Services Program for Area Agencies on Aging. (e) Cost reimbursement and unit rate performance based contract content. Contract documents utilized by the area agencies on aging should include the following paragraphs which encompass the following subjects: (1) authority to contract; (2) contracting parties and execution date; (3) contract period; (4) contract extension provisions; (5) procedures to amend; (6) scope of services; (7) funding obligations; (8) compensation processes; (9) payment methodology; (10) reporting requirements; (11) match requirements; (12) program income; (13) contribution policy; (14) maintenance of requirements; (15) accessibility of records; (16) audit requirements; (17) payment suspension and contract termination; (18) deobligation of funding; (19) recapture of payments; (20) indemnification; (21) liability to third parties; (22) insurance coverage; (23) code of conduct; (24) governance; (25) assignment; (26) force majeure; (27) contract notices; (28) political activity; (29) sectarian involvement; (30) right to appeal; (31) independent contractor; (32) oral and written agreement; (33) severability; (34) venue; and (35) targeting expectations. (f) Standard assurances. Contract documents utilized by the area agencies on aging should include the following standard assurances required by appropriate paragraphs of the Older Americans Act as follows. (1) Information and assistance systems: (A) 306a4-provide for establishment of I & A, with emphasis on isolated elderly, Alzheimer's victims and their caretakers; (B) 306a5B-provide assurances that the AAA will use outreach efforts that will identify elderly, with emphasis on rural, greatest economic need (emphasis on low-income minority), greatest social need (emphasis on low-income minority), severe disabilities, limited English-speaking ability, elderly Alzheimer's and their caretakers; (C) 306a5C-contain an assurance that AAA will ensure that each activity, including planning, advocacy, and systems development, will include a focus on the needs of low- income minority elderly; (D) 306a6B-provide that the AAA will furnish technical assistance in a timely manner to service providers under the Area Plan and an annual evaluation of the effectiveness of outreach; (E) 306a6C-provide that the area agency will take into account in the development and implementation of the Area Plan, the views of service recipients; (F) 306a6D-provide that the AAA will serve as advocate and focal point for elderly (in cooperation with agencies, organizations, and individuals participating in activities under the plan); (G) 306a6Ei-provide that the AAA will enter into arrangements with organizations providing day care for children or adults and respite for families to provide opportunities to voluntarily care for the children; (H) 306a6Eii-provide that the AAA will, if possible, enter into arrangements and coordinate with organizations that have a proven record of providing services to elderly that were officially designated as community action agencies or programs; (I) 306a6G-provide that the AAA will develop and publish methods by which priority of services is determined; (J) 306a6I-provide that the AAA will conduct efforts to facilitate coordination of community based, long-term care services, designed to include case management; (K) 306a6L-the area plan will provide that the AAA will coordinate access, in- home, and legal services with activities of community-based organizations established for the benefit of Alzheimer's victims and their families; (L) 306a6M-as above for mental health services; (M) 306a6N-the area plan will provide that the AAA will conduct outreach to elderly Indians if there is a significant Indian population (Dallas, Deep East, Middle Rio, and Rio); (N) 306a6P-the area plan will provide that the AAA will establish a grievance procedure for elderly who are dissatisfied with or denied services under this Title; (O) 306a6R-the area plan will provide that the AAA will list the telephone number of the agency in each telephone directory that is published under the name Area Agency on Aging; (P) 306a18-the area plan will provide assurances to coordinate Title III services with Title VI (Deep East AAA only); (Q) 306a19-the area plan will provide an assurance that the AAA will pursue activities to increase access by elderly Native Americans to all aging programs and benefits provided by the AAA including Title III, and specify the ways in which the area agency intends to implement the activities (Dallas, Deep East, Middle Rio); (R) 306a20A-the area plan will provide that Title III case management services provided through the AAA will not duplicate case management services provided through other Federal and State programs; (S) 306a20B-the area plan will provide that Title III case management services provided through the AAA will be coordinated with other Federal and State programs; (T) 306a20C-the area plan will provide that Title III case management services provided through the AAA will be provided by a public agency or a non-profit private agency that does not provide, and does not have a direct or indirect ownership or controlling interest in, or a direct or indirect affiliation or relationship with, an entity that provides services other than Title III case management; or is located in a rural area and obtains a waiver of this requirement; and (U) 306a6H-the area plan will provide that the AAA will establish effective and efficient procedures for coordination between OAA providers and between OAA providers and other Federal programs, especially Low-Income Home Energy Assistance Act, Part A of Energy Conservation in Existing Buildings Act CSBC7. (2) Homemaker services: (A) 306a6H-the area plan will provide that the AAA will establish effective and efficient procedures for coordination between OAA providers and between OAA providers and other Federal programs especially (Title XX); (B) 306a7-the area plan will provide that the AAA will provide assurances that any amount received under Part D will be expended in accordance with such part-In-Home Services for Frail Older Individuals; and (C) 306a10-the area plan will provide that the AAA will provide assurances that any amount received under part G will be expended in accordance with such part-Supportive Activities for Caretakers who provide In-Home Services to Frail Older Individuals. (3) Home repair/modification. Under paragraph 306a6Q -the area plan will provide that the AAA will enter into voluntary arrangements with non-profit entities that provide housing (such as HUD 202) to provide leadership and coordination in development, provision, and expansion of adequate housing, supportive services, referrals, and living arrangements for elderly and advance notification and non- financial assistance to older individuals who are subject to eviction. (4) Ombudsman, adult day care, elder abuse awareness: (A) 306a6J-the area plan will provide that the AAA will identify the public and private non-profit agencies involved in prevention, identification and treatment of abuse, neglect, and exploitation of elderly and determine the extent to which the need for services is unmet; and (B) 306a6K-the area plan will provide that the AAA will facilitate the involvement of long-term care providers in the coordination of community-based long-term care services and work to ensure community awareness of and involvement in addressing the needs of residents of long-term care facilities. (5) Center operations, transportation, legal, health screening, health education, physical fitness. Under paragraph 306a6S-the area plan will provide that the AAA will identify the needs of elderly and describe methods to coordinate planning and delivery of transportation services to elderly, including those with special needs. (6) Senior volunteers and employment opportunities. Under paragraph 306a12-the area plan will in the discretion of the AAA, provide for an area volunteer services coordinator. (7) Congregate and home delivered meals. Under paragraph 306a16-the area plan will provide assurances that projects will reasonably accommodate participants with particular dietary needs arising from health requirements, religious requirements, or ethnic background. (8) Corporate eldercare assurances: (A) 306a13A-the area plan will describe all activities of the AAA, whether funded by public or private funds; (B) 306a13Bi-the area plan will provide an assurance that the (AAA's) activities conform with the responsibilities of the AAA as set forth in 306a; (C) 306a13Bii-the area plan will provide an assurance that the (AAA's) activities conform with the laws, regulations, and policies of the state; (D) 306a14A-the area plan will provide assurance that the AAA will maintain the integrity and public purpose of services provide in all contractual and commercial relationships; (E) 306a14B-the area plan will provide assurance that the AAA will disclose to AoA and state the identity of each non-governmental entity with which such agency has a contract or commercial relationship relating to providing any service to elderly; and the nature of such contract or relationship; (F) 306a14C- the area plan will provide assurance that the AAA will demonstrate that a loss or diminution in the quantity or quality of the services provided or to be provided by such agency has not resulted and will not result from such contract or relationship; (G) 306a14D-the area plan will provide assurance that the AAA will demonstrate that the quantity or quality of the services to be provide by such agency will be enhanced as a result of such contract or such relationship; (H) 306a14E-the area plan will provide assurance that the AAA will, on request from AoA or the State for the purpose of monitoring, disclose all sources and expenditures of funds such agency receives or expends to provide services to the elderly; (I) 306a15-the area plan will provide assurances that Title III funds will not be used to pay any part of a cost (including admin) incurred by AAA to carryout a contract or commercial relationship that is not carried out to implement this title; and (J) 306a16-the area plan will provide assurances that preference in receiving services under Title III will not be given to particular elderly as a result of a contract or commercial relationship that is not carried out to implement this title. (9) Administrative assurances: (A) 306a5Aii-provide assurances that AAA will include in each contract with provider a requirement that provider will specify how to meet needs of low- income minority, and provide services to low-income minority in accordance with their need for service, and meet specific objectives established by the area agency for providing services to low- income minority individuals; (B) 306a6A-provide that AAA will conduct periodic evaluations and public hearings on activities carried out under the Area Plan; (C) 306a6F-provide that the AAA will establish an advisory council consisting of elderly, clients, representatives of elderly, elected officials, veteran's health care providers, and general public; and (D) 306a6O-the area plan will provide that the AAA will compile available information on institutions of higher education and make information available to elderly at senior centers, and nutrition sites. (10) Budget related assurances: (A) 306a2-provide assurances that an adequate proportion of the amount allotted for part B to the planning and service area will be expended for the delivery of each of the following categories of services: (i) services associated with access to services (outreach, information and assistance, case management, and transportation); (ii) in-home services; and (iii) legal assistance; (B) 306a5Ai-set objectives for serving elderly in greatest social or economic need, include specific objectives for providing services to low-income minority individuals; and (C) 306a11-the area plan will provide assurances that the area agency will expend not less than the total amount of funds appropriated and expended by the agency in FY91 in carrying out the State Long-Term Care Ombudsman program. (g) Performance standards. Regardless of the type of procurement processes used, the area agency must ensure that the service provider conforms to the specified service standard in providing the service. In the absence of adopted standards for any specific service, the area agency must identify the performance standards which the provider will be expected to follow until such time as service standards are issued by the state office. (h) Cost accounting. In order to establish and track service costs accurately, each service provider must have an accounting system which identifies all costs for each specific service being purchased, regardless of procurement method. The AAA should require, by contract stipulation, that the service provider have adequate accounting records to review and manage service costs. (i) Reporting requirements. Service contracts must contain specific requirements for reporting, regardless of procurement method used. Area Agencies must assure that the reporting requirements include a provision for adequate reporting and documentation of units of service and unduplicated persons who received the services. It must be understood by the service providers that payments for service will be based on the service units provided and the agreed upon method for service payment. (j) Direct services. AAAs providing direct services will be required to complete the appropriate section of the Area Plan/amendments. The PLANS budget document will specify the unit rate identified for applicable direct services of the AAA. AAAs shall enter into a Direct Service Agreement with TDoA which states the service performance expectation during a specified period. The direct service agreement will become part of the approved area plan. All requirements regarding performance standards, cost accounting and reporting requirements will apply to area agencies in direct service provision. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216963 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 40 TAC sec.255.40 The Texas Department on Aging proposes new section sec.255.40, concerning direct purchase of services (DPS) for area agencies on aging concerning establishing an additional contracting method to permit area agencies to respond to the contracting requirements of service management, gap filling, and services to otherwise difficult areas to serve in planning and service areas across the State. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Ammons also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be greater understanding of the roles and missions of the Texas Department on Aging as a result of the changes to the Older Americans Act of 1965 as amended by the 1992 amendments to the Act. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.255.40. Direct Purchase Of Services (DPS) Program for Area Agencies on Aging. (a) Definitions. The following words and terms, when used in this part, will have the following meanings, unless the context indicates otherwise. Direct purchase of services (DPS)-DPS is a contracting methodology for the purchase of services on a client-by-client basis in lieu of annualized contracting, or a fixed sum basis. (b) Purposes. Direct purchase of services (DPS) is a procurement methodology which provides flexibility in the purchasing of services for participants in Title III Programs and the ability to fill gaps in service not otherwise responsive to annualized contract procedures. Advantages of Direct Purchase of Services includes the following: (1) provides access to resources to those in greatest social and economic need; (2) allows many more providers to participate in the Title III reimbursement program, thus facilitating broader access to service while also providing increased brokering flexibility for case management and gap filling purposes; (3) monitoring of the resources used through DPS is more direct than traditional area agency monitoring procedures; (4) less service dollars are tied up in administrative costs; (5) control over care plan provisions is heightened; and (6) a mechanism for funding badly needed new services is created. (c) DPS components. Basic components of a DSP system consist of the following elements: (1) area agency directed care management system; (2) purchase agreement or contracting structure which permits flexible purchase of needed service increments based on individual assessment and client/participant care plans; (3) service standards which detail levels of acceptability for service delivery; (4) provider selection criteria or pre-qualification processes to permit rapid identification and procurement of needed services; and (5) a number of providers (a pool) willing to provide services on an as required basis. (d) Area agency direct purchase of services requirements. Area agencies on aging should consider the implementation of direct purchase of services processes when the area agency: (1) is performing the direct service of case/care management; (2) is experiencing difficulties in meeting the needs of the service population through annual performance based unit rate and/or cost reimbursement contracting processes; (3) has rural areas wherein service is lacking, either through the absence of a service provider in the area or due to geographical remoteness; (4) has a requirement to temporarily provide services as a result of contractor default; (5) fill gaps in services across the planning and service area. (e) Elements of the DPS process. The elements of the DPS process consist of determination of service needs, selection of appropriate procurement processes, identification of vendors, selection of vendors, delivery of services, payment for services, and monitoring. (1) Determining service needs. The area agency must identify, through public hearings, needs assessments, individual client assessments, waiting lists, advisory council and staff interaction and other methods, the types and quantities of services which are needed in the planning and service area. A decision must be made regarding what methods of procurement will be used once these needs have been identified. Annualized cost reimbursement, performance based unit rate, direct purchase of services, or a mixture of all three methods, may be appropriate based on the characteristics of the service area, the characteristics and needs of the service population, and the degree of development of the service delivery system. If a determination is made that direct purchase of service is appropriate, the following process may be followed to implement this purchase option. (2) Identification of potential vendors. A request for vendors, similar to that of a request for proposal, will be published in regional newspapers, mailed to potential vendors, or publicized in other appropriate media. The request for vendors should indicate the types of services, number of units, number of persons to be served, location of service delivery, period of service, agency publishing the request for vendors, contact person, telephone number, and where the appropriate response packets may be acquired. A time by which the response must be received to be considered must be established. The application to be completed by the vendor should contain the following: (A) name, address, telephone number, contact person (name and title) and type of agency (public, private nonprofit, private for profit); (B) background of the agency making application (purpose of agency, history of providing proposed service, and number and qualifications of staff available to provide service); (C) service and bidding information for each service (proposed service to be delivered, units of service which can be delivered per time period, geographic areas where services can be provided, proposed cost per unit of service, what the unit cost includes, and source of match); (D) the application should be signed by the potential vendor's authorized official, the title of this official and the date. (3) Vendors' conferences. Vendors should be apprised of the following during the vendors' conference. It may be more effective to provide the conferences based on the services each vendor has applied to provide: (A) purpose of DPS; (B) relationship to other contracting methods; (C) qualification to be included in the vendor pool; (D) how a vendor will be selected from the pool to provide the service; (E) how often a vendor may be re-qualified; (F) how the vendor pool may be enlarged or further developed; and (G) what constitutes grounds for removal from the vendor pool. (4) Selection of vendors. Selection of vendors may be accomplished by a review panel composed of the area agency staff, area agency advisory council sub- committees, and other grantee staff members as may be appropriate to determine the acceptability of the proposals. The following are examples of factors which may be used to evaluate the ability of the applicant to provide the services needed: (A) unit rate per unit of service; (B) service capacity; (C) responsiveness to needs of client/participant; (D) ability to comply with standards; (E) background or history of acceptable performance; (F) cost effectiveness; (G) quality of service; and (H) capacity to provide service in identified geographic areas. (5) Certification of acceptance. Certification of acceptance by the area agency of the vendors which have qualified as service providers may be formalized by inter-agency agreement, letters of agreement, or purchase agreement. Each of the agreements should consist of at least the following information: (A) names of the parties to the agreement; (B) purpose of the agreement; (C) objectives of the agreement; (D) duties and responsibilities of the area agency; (E) duties and responsibilities of the vendor; (F) special conditions (special diets, etc.,); and (G) signatures of the participants to the agreement. (6) Delivery of services. Services must be delivered in the quantity, quality, timeliness, and to the recipient (either a participant in a care management program or to a designated area for participants in a congregate program) specified by the area agency on aging. The service standards, as published in the Texas Administrative Code, should be furnished to vendors which covers the services they have agreed to provide. In those instances where a number of vendors have been qualified to provide the same service at the same unit rate and in the same manner, a procedure will be established by the area agency to sequence, on a rotating basis, the purchase of services through each vendor, ensuring that equitable purchasing processes are maintained. (7) Required documentation. The area agency must establish a process to document the establishment of the vendor as a service provider. This documentation should be maintained by the area agency and the vendor. Documentation which supports payment for the delivery of services and provides an audit trail must be developed to facilitate determination of proper service delivery. (A) Documentation affirming the selection of a vendor as a service provider should consist of the following. (i) a completed bid application identifying the vendor and providing information regarding his capability to provide services. (ii) an interagency agreement which specifies the service to be purchased, the units of service to be delivered and the cost per unit, appropriately signed or otherwise validated; (iii) standard assurances consisting of the Rehabilitation Act of 1973, sec.504, Title VI of the Civil Rights Act of 1964, Americans with Disabilities Act of 1992, and others required by law and/or deemed appropriate by the area agency; (iv) records of validation of service quantity, quality, and responsiveness in the form of desk reviews and completed monitoring instruments; (v) individual client needs assessments which provide sufficient information to indicate the need for the services purchased. (B) Documentation required to justify the payment of service should be developed. This documentation may differ depending on the environment in which service is delivered. If the service purchased is for delivery to a participant in a case management program, the documentation must reflect certain items. If the service is for a congregate program in a remote area, again the documentation will reflect the needs of that specific program. This documentation should be submitted to the area agency on a monthly basis with a request for payment for services provided, and should include the following: (i) a record of delivery of service to the client which could consist of a roster and initials of the individual receiving the service, date service was provided, social security number of the individual served, the unit rate and name of care manager who ordered and arranged the service; (ii) a monthly service and fiscal report signed by an authorized individual of the vendor; (iii) a monthly report of contributions for the services provided, accompanied by a check (if appropriate) or other instrument in the amount of those contributions; (iv) area agency shall maintain a copy of the desk review by the area agency attesting to the validity of the request for reimbursement and a request to issue a check to the vendor to the fiscal department. (f) Assessment and monitoring. Area agencies will conduct monthly desl reviews/assessments of vendors and at least one on site annual program monitoring of vendors. Area agencies on aging will monitor accomplishment of program outcomes and determine their effectiveness. (1) Assessments will consist of a desk review of documentation submitted for payment. Examination of this documentation should indicate that the vendor has provided the number of service units that they were requested to provide for the period in question and that the payment requested is supported by the documentation provided. (2) Monitoring shall analyze the performance of all vendors with which the area agency has memorandums of agreement on an annual basis. A monitoring procedure will be established by the area agency that includes notices of visit, entry and exit briefings on intent of visit and resultant findings, written reports on findings to the service providers with a request for corrective action plan, responses from the vendor, follow up if necessary and appropriate correspondence to verify the service plan was accomplished and documentation of that accomplishment. No notice monitoring may also be conducted. Contact with recipients of services is encouraged. Technical assistance should always be considered as an important component of monitoring visits. (g) Waiver authorized. Compliance with sec.92.36(i)(iii), Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, for the state office on aging to approve area agency contracts with for- profit vendors/service providers is waived for direct purchase of service procurement. The Texas Department on Aging will continue to require area agencies to submit contracts with for-profit activities which are initiated annually to TDoA for approval prior to finalization of the contract. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216964 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 Chapter 289. Procedures for Approval of Area Agency Requests to Provide Services Directly 40 TAC sec.sec.289.1, 289.5, 289.7, 289.9, 289.11, 289.13, 289.17 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department on Aging proposes the repeal of sec. s289.1, 289.5, 289.7, 289.9, 289.11, 289.13, and 289.17, concerning procedures for approval of area agencies to provide services directly as a result of the revision and relocation of this chapter elsewhere in the Texas Administrative Code. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals. Ms. Ammons also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be greater understanding of the processes required of area agencies on aging as a result of simplify the language of the rule, removing barriers and reducing the total amount of information previously requested of applicants. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The repeals are proposed under the Human Resources Code, s101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.289.1. Purpose. sec.289.5. Applicability. sec.289.7. Definitions. sec.289.9. State and Federal Guidance for Direct Service Provision. sec.289.11. Adequate Supply of Services. sec.289.13. Services Directly Related to Administrative Functions. sec.289.17. Action by the Texas Department on Aging. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216958 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727 Chapter 291. Area Agency on Aging Program Development Statutes and Regulations 40 TAC sec.sec.291.1-291.6 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department on Aging or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department on Aging proposes repeal of sec. s291.1-291.6, concerning area agency on aging program development. This chapter is no longer required as a complete revision to this rule has been proposed to simplify the language and the processes for area agencies to apply for the authority to conduct program development. This new chapter will be incorporated as 40 TAC sec.255.37, Area Agency on Aging Program Development. Ann Ammons, director of field operations, Texas Department on Aging, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals. Ms. Ammons also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be greater understanding of the roles and missions of area agencies on aging as a result of incorporating new language and simplifying previous language in the rule. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Ann Ammons, Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. The new section is proposed under the Human Resources Code, sec.101, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the department. sec.291.1. Service Definition. sec.291.2. General Information. sec.291.3. Service Objectives. sec.291.4. Service Activities. sec.291.5. Standards of Performance. sec.291.6. Prohibited Activities/Sanction. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on December 23, 1992. TRD-9216961 Mary Sapp Executive Director Texas Department on Aging Earliest possible date of adoption: February 1, 1993 For further information, please call: (512) 444-2727