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 4. AGRICULTURE 
 Part I. Texas Department of Agriculture 
  Chapter 17. Marketing and Development Division 
  
  TAP, Taste of Texas, Vintage Texas, and Texas Grown Promotional Mark 
 
  4 TAC sec.sec.17.51-17.56 
 
  The Texas Department of Agriculture (the department) proposes amendments of 
sec.sec.17.51-17.56, concerning standards for registration to use the TAP, Taste 
of Texas, and Texas Grown promotional emblems. The amendments are proposed to 
clarify the standards, requirements, and application and revocation procedures 
for the voluntary TAP, Taste of Texas, and Texas Grown marketing promotions. In 
addition, the amendments add the Vintage Texas program. The amendment to 
sec.17.51 provides additional definitions, and clarifies existing definitions. 
The amendment to sec.17.52 describes the various programs, changes the contents 
of the program applications, and sets forth restrictions on the use of the 
promotional marks. The amendment to sec.17.53 increases the time period within 
which an initial determination must be made on an application from 15 to 30 
days, and defines the date of notification. The amendment to sec.17.54 clarifies 
the circumstances under which an application may be denied. The amendment to 
sec.17.55 establishes a fee for the Vintage Texas program, omits the previous 
late fee provision, clarifies the annual registration procedures, and provides 
for automatic termination of registration for nonpayment of annual registration 
fees. The amendment to sec.17.56 clarifies the procedures for termination of 
registration to use the promotional marks. 
 Susan Dunn, director for food marketing, has determined that for the first 
five-year period the sections are in effect there will be fiscal implications 
for state government as a result of enforcing or administering the sections. The 
effect on state government will be an estimated increase in revenue, caused by 
addition of the Vintage Texas program, of $500 for the first year, $625 for the 
second and third years, and $675 for the fourth and fifth years. There will be 
no fiscal implications for local government or for local employment as a result 
of enforcing or administering the sections. 
 Ms. Dunn 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 the promotion of products grown in the state or products 
made from ingredients grown in the state. The cost of compliance with the 
sections for small businesses will be a $25 registration fee per firm per year 
of voluntary registration. The cost of compliance will be the same $25 
registration fee for all firms regardless of size. The anticipated cost to 
persons or firms who are required to comply with the sections as proposed will 
be a $25 registration fee per individual per year of voluntary registration. 
 Comments on the proposal may be submitted to Susan Dunn, Director for Food 
Marketing, P O Box 12847, Austin, Texas 78711. Comments must be received no 
later than 30 days from the date of publication of the proposal in the Texas 
Register. 
 The amendments are proposed under the Texas Agriculture Code, sec.12.002, which 
provides the department with the authority to encourage the proper development 
of agriculture, horticulture, and related industries; sec.12.016, which provides 
the department with the authority to adopt rules as necessary for the 
administration of sec.12.002; and sec.12.0175, which provides that if the 
department establishes a program to promote products grown in the state or 
products made from ingredients grown in the state, the department may set by 
rule and collect a fee from each producer that participates in the program. 
 
 
  sec.17.51. Definitions.  The following words and terms, when used in these 
sections, shall have the following meanings, unless the context clearly 
indicates otherwise. 
   
  <nl>   Department-The Texas Department of Agriculture.<ol> TAP <nl>mark<ol> 
[promotional emblem]-The term "Texas Agriculture Product" or the following 
<nl>mark<ol> [symbol] embracing the same, such <nl>mark <ol> [symbol] being 
registered with the secretary of state's office by the <nl>department<ol> [Texas 
Department of Agriculture]. 
 
  
   
  [Graphic] 
     
   Taste of Texas <nl>mark<ol> [emblem]-A flag-shaped <nl>mark<ol> [emblem] 
bearing the words "Taste of Texas" so colored as to closely model the flag of 
the state of Texas<nl>, such mark being registered with the secretary of state's 
office by the department. 
 
  
   
  [Graphic] 
     
   Texas Grown <nl>mark<ol> [emblem]- <nl>A<ol> [The emblem is] vertical and 
rectangular  <nl>mark which<ol> [and] features a native Texas mountain laurel 
branch in bloom over an outline of the state of Texas with the word "Texas" at 
the top and the word "Grown" at the bottom of the rectangle. 
 
  
   
  [Graphic] 
     
  <nl>   Vintage Texas mark-A vertical, rectangular mark consisting of a cluster 
of six grapes loosely forming a triangle and topped by a single grape leaf, all 
centered in the middle of a five-pointed star. Coming from behind the top center 
point of the star is a short curlicue line representing a grapevine. One 
horizontal line intersects with the tip of the center point of the star, and a 
parallel horizontal line intersects the two bottom points of the star. The word 
"VINTAGE" appears above the top parallel line, and the word "TEXAS" appears 
below the bottom parallel line. 
 
  
   
  [Graphic] 
       
  
  sec.17.52. Application for <nl>Registration [Permission] To Use the TAP, Taste 
of Texas, <nl>Vintage Texas, or Texas Grown Promotional <nl>Mark [Emblem]. 
 
  (a) No person shall use, employ, adopt, or utilize the TAP, Taste of Texas, 
<nl>Vintage Texas, <ol> or Texas Grown promotional <nl>mark<ol> [emblem in the 
selling, advertising, marketing, packaging, or other commercial handling of 
food, fiber, or nursery and floral products,], unless prior application <nl>for 
registration<ol> has been made to the <nl>department<ol> [commissioner] 
<nl>and<ol> [for] permission to make such use, employment, adoption, or 
utilization [, and approval] has been granted. 
   
  <nl>(b) Unless permission is otherwise granted by the department: 
 
  <nl>(1) the TAP promotional mark may only be used by TAP program members. The 
TAP program is a program established by the department to promote agricultural 
products produced in Texas; 
   
  <nl>(2) the Taste of Texas promotional mark may only be utilized by Taste of 
Texas program members. The Taste of Texas program is a program established by 
the department to promote agricultural food products processed in Texas, 
regardless of origin, and unprocessed agricultural food products grown in Texas; 
   
  <nl>(3)  the Vintage Texas promotional mark may only be utilized by Vintage 
Texas program members. The Vintage Texas program is a program established by the 
department to promote wine which is: 
 
  <nl>(A) at least 75%, by volume, derived from grapes grown and fermented in 
the State of Texas; and 
   
  <nl>(B) fully produced and finished within the State of Texas; 
     
  <nl>(4) the Texas Grown promotional mark may only be utilized by Texas Grown 
program members. The Texas Grown program is a program established by the 
department to promote Texas-grown nursery and floral products. 
     
  <nl>(c)<ol>[(b)] Applications submitted under this section shall be made in 
writing on a form prescribed by the <nl>department<ol> [commissioner] and shall 
contain: 
 
  (1) the name and address of the applicant; 
   
  (2) a description of the type of business conducted by the applicant; 
   
  (3) the brand name of the product for which application is made; 
   
  (4) the commodity or commodities from which the product is made; 
   
  (5) a statement of the primary source of supply  <nl>and geographic origin<ol> 
of the product and<nl>, if applicable,<ol> the commodity or commodities from 
which it is made [,stated in a manner which explains how the applicant intends 
to employ the TAP Taste of Texas, or Texas Grown promotional emblem only on 
products produced in Texas]; 
   
  (6) <nl>if processed,<ol> a statement of where the product is to be processed; 
   
  (7) a statement of where the product is to be packaged; 
   
  (8) the state(s) where the product is to be marketed; 
   
  [(9) a statement of whether the applicant is involved in intrastate, 
interstate, or international trade; 
   
  [(10) a statement of whether the applicant intends to become involved in 
intrastate, interstate, or international trade;] 
   
  <nl>(9)<ol>[(11)] a statement of how the TAP, Taste of Texas, <nl>Vintage 
Texas,<ol> or Texas Grown promotional <nl>mark<ol> [emblem] is to be employed, 
including a sample of the proposed usage; <nl>and, 
   
  [(12) a statement of fees which will be charged for usage of the TAP, Taste of 
Texas, or Texas Grown emblems; and,] 
   
  <nl>(10)<ol>[(13)] the signature and title of applicant or applicant's agent 
submitting the application. 
     
  <nl>(d)<ol>[(c)] A separate application shall be submitted for each product 
and/or brand name for which <nl>registration<ol> [permission] to use the TAP, 
Taste of Texas, <nl>Vintage Texas,<ol> or Texas Grown promotional <nl>mark<ol> 
[emblem] is sought. 
   
  <nl>(e)<ol>[(d)]  Applications shall be submitted to the <nl>Assistant 
Commissioner <ol> [director,] <nl>for <ol> Marketing <nl>and Agribusiness 
Development<ol> [Division], Texas Department of Agriculture. 
   
  <nl>(f) If approved, applicants shall remit the required registration fee 
within 30 days of notification of approval. 
   
  <nl>(g) Upon receipt of the registration fee, the department shall mail to the 
registrant a certificate of registration, which shall expire on December 31 of 
the year of issuance. The department shall also enclose copies of the mark, 
suitable for reproduction. If the certificate is for less than one full year, 
registration fees will be assessed on a pro rata basis. 
   
  <nl>(h) Other than the use of the promotional mark, no registrant shall use 
any statement of affiliation or endorsement by the State of Texas or the 
department in the selling, advertising, marketing, packaging, or other 
commercial handling of TAP, Taste of Texas, Vintage Texas, or Texas Grown 
products. 
   
  <nl>(i) Registrants shall indemnify and hold harmless the commissioner, the 
State of Texas, and the department for any claims, losses, or damages arising 
out of or in connection with that person's advertising, marketing, packaging, 
manufacture, or other commercial handling of TAP, Taste of Texas, Vintage Texas, 
or Texas Grown products. 
   
  <nl>(j)  Any permission under the certificate of registration granted to a 
registrant to use the mark shall be nonexclusive and nontransferable for the 
products listed in the application. 
   
  <nl>(k) Registrants shall do nothing inconsistent with the ownership of the 
promotional mark in the department, and all use of the mark by any registrant 
shall inure to the benefit of and be on behalf of the department. Further the 
registrants shall not have any right, title or interest in the promotional mark, 
other than the right to use the mark in accordance with the certificate of 
registration. Registrants must agree not to attack the title of the department 
to the mark, or attack the validity of the certificate of registration or the 
permission granted by the department. 
   
  <nl>(l) The nature and quality of the goods sold by registrants in connection 
with the mark shall conform to any standards which may be set from time to time 
by the department. Registrants shall cooperate with the commissioner by 
permitting reasonable inspection of the registrant's operation and supplying the 
commissioner with specimens of use of the mark upon request. 
   
  <nl>(m) Registrants shall comply with all applicable laws and regulations and 
obtain all appropriate governmental approval pertaining to the selling, 
advertising, marketing, packaging, manufacturing or other commercial handling of 
the products covered by the certification of registration. 
   
  <nl>(n) Registrants shall use the mark only in the form and manner, and with 
appropriate legends, as prescribed from time to time by the commissioner. 
   
  <nl>(o) The department shall have the sole right and discretion to bring 
infringement or unfair competition proceedings involving the TAP, Taste of 
Texas, Vintage Texas, or Texas Grown promotional marks. 
 
     
  sec.17.53. Action on Application. 
 
  (a) The <nl>Assistant Commissioner <ol> [director,] <nl>for <ol> Marketing 
<nl>and Agribusiness Development,<ol> Texas Department of Agriculture, within 
<nl>30<ol> [15] days of receipt of an application for <nl>registration<ol> 
[permission] to use the TAP, Taste of Texas, <nl>Vintage Texas,<ol> or Texas 
Grown promotional <nl>mark<ol> [emblem], shall make an initial determination of 
whether such <nl>registration<ol> permission shall be granted or denied, and 
forthwith notify the applicant in writing of his decision setting forth in 
detail the reasons for such grant or denial. 
   
  (b) If the applicant wishes to contest such initial determination, notice of 
protest shall be filed by the applicant with the commissioner within 15 days of 
receipt by the applicant of notice of such initial determination. <nl>The date 
of notification is the date the notice was mailed by first class mail. Should 
notice<ol> [Notice] of protest <nl>be<ol> [being] timely filed, the 
<nl>applicant's request<ol> [application] shall be administered as a contested 
case as provided for the Administrative Procedure and Texas Register Act, Texas 
Civil States, Article 6252-13a, and Chapter 1 of this title (relating to General 
Practice and Procedure). 
   
  (c) (No change.) 
 
     
  sec.17.54. Use of the TAP, Taste of Texas, <nl>Vintage Texas, or Texas Grown 
Promotional <nl>Mark [Emblem].  An application for <nl>registration <ol> 
[permission] to use the TAP, Taste of Texas, <nl>Vintage Texas,<ol> or Texas 
Grown promotional <nl>mark<ol> [emblem] may be denied if: 
 
  (1) application is not made <nl>in compliance with<ol> [pursuant to] sec.17.52 
of this title (relating to Application for Permission To Use the TAP, Taste of 
Texas, <nl>Vintage Texas,<ol> or Texas Grown Promotional <nl>Mark<ol> [Emblem]); 
   
  (2) the applicant cannot provide adequate assurances that the product for 
which application is made <nl>qualifies and will continue to qualify for the 
program(s) in which it is enrolled <ol> [is produced and will continue to be 
produced in Texas]; 
   
  (3)  the product is of a quality markedly inferior to that representative of 
similar products produced in Texas;  <nl>or 
   
  (4) the applicant has <nl>misused<ol> [abused] the TAP, Taste of Texas, 
<nl>Vintage Texas,<ol> or Texas Grown promotional <nl>mark<ol> [emblem] prior to 
the date of application<nl>. <ol> [; or] 
   
  [(5) the commissioner, in the exercise of his discretion, determines that the 
grant of such permission would be injurious to the promotion of Texas 
agricultural commodities.] 
 
     
  sec.17.55. Registration of Those Entitled To Use the TAP, Taste of Texas, 
<nl>Vintage Texas, or Texas Grown Promotional <nl>Mark [Emblem]. 
 
  (a) The <nl>Assistant Commissioner <ol> [director,] <nl>for <ol> Marketing 
<nl>and Agribusiness Development<ol> [Division], Texas Department of 
Agriculture, shall enroll in a register the names of all  <nl>persons<ol> 
[applicants] granted permission under these sections to use the TAP, Taste of 
Texas, <nl>Vintage Texas,<ol> or Texas Grown promotional <nl>mark<ol> [emblem in 
the selling, advertising, marketing, packaging, or other commercial handling of 
food, fiber, and nursery and floral products]. The register shall be available 
for public inspection during normal business hours in <nl>the<ol> offices of the 
Texas Department of Agriculture in Austin. 
   
  (b) Procedure for annual <nl>renewal of <ol> registration of persons 
authorized to use the TAP, Taste of Texas, <nl>Vintage Texas,<ol> or Texas Grown 
promotional <nl>mark<ol> [emblem]. 
 
  (1) Between January 1 and January 31, annually, the  <nl>Assistant 
Commissioner<ol> [director,] <nl>for<ol> Marketing  <nl>and Agribusiness 
Development <ol> [Division], Texas Department of Agriculture, shall mail each 
person previously  <nl>registered<ol> [authorized] to use the TAP, Taste of 
Texas, <nl>Vintage Texas, <ol> or Texas Grown promotional <nl>mark<ol> [emblem] 
a statement setting forth the amount due as an annual registration fee. 
   
  (2) (No change.) 
   
  [(3) Persons who were not registered during the previous year shall register 
in the following manner. 
 
  [(A) Each such person must filed with the department an application to 
register. An application will be provided by the department. 
   
  [(B) The applicant shall remit the required registration fee within 30 days of 
notification of approval. 
   
  [(C) The fee in subparagraph (B) of this paragraph shall be prorated to the 
next renewal date. 
   
  [(D) The department shall mail a certificate of registration after receipt of 
payment of the established fee.] 
     
  <nl>(3)<ol>[(4)] Within 30 days of receipt of the required <nl>renewal 
statement, together with the annual <ol> registration fee, the department will 
mail to the registrant a <nl>renewal <ol> certificate [of registration], which 
shall be good for a period of one year or until the next expiration date, 
whichever comes first. 
   
  <nl>(4) Failure to remit the annual registration fee within 60 days of the due 
date shall result in automatic termination of registration. 
   
  [(5)  A late payment in an amount equal to the annual registration fee may be 
assessed to any registrant who fails to remit the annual registration fee within 
60 days of the due date.] 
     
  (c) <nl>Registration fees<ol> [Fees for registering] for use of the TAP, Taste 
of Texas, <nl>Vintage Texas,<ol> or Texas Grown promotional emblem shall be paid 
to the department in accordance with the following schedule: 
 
  (1) TAP promotional <nl>mark<ol> [emblem]-$25; 
   
  (2) Taste of Texas promotional <nl>mark <ol> [emblem]-$25; 
   
  (3) Texas Grown promotional <nl>mark<ol> [emblem]-$25<nl>;<ol>[.] 
   
  <nl>(4) Vintage Texas promotional mark-$25. 
 
       
  sec.17.56. Termination of <nl>Registration [Permission] To Use the TAP, Taste 
of Texas, <nl>Vintage Texas, or Texas Grown Promotional <nl>Mark [Emblem]. 
 
  (a) <nl>Registration<ol> [Permission granted by the commissioner for] 
<nl>to<ol> use [of] the TAP, Taste of Texas, <nl>Vintage Texas, <ol> or Texas 
Grown promotional <nl>mark<ol> [emblem] may be revoked at any time if the 
<nl>mark is misused<ol> [use for which such permission was granted is abused]. 
   
  (b) <nl>Misuse<ol> [A person abuses] <nl>of<ol> the TAP, Taste of Texas, 
<nl>Vintage Texas,<ol> or Texas Grown promotional <nl>mark<ol> [emblem]  
<nl>includes<ol> [if]: 
 
  (1) <nl>use of the mark<ol> [the emblem is used] in the selling, advertising, 
marketing, packaging, or other commercial handling of a product <nl>for which 
registration to use the mark has not been granted by the department <ol> [not 
produced in Texas]; 
   
  (2) <nl>use of the mark<ol> [the emblem is used] in the selling, advertising, 
marketing, packaging, or other commercial handling of a product which is of a 
quality markedly inferior to that representative of similar products produced in 
Texas; <nl>or 
   
  (3) <nl>use of the mark<ol> [the emblem is used] in a manner violating any 
rule promulgated by the commissioner [regulating the use of such emblem;] <nl>. 
   
  [(4) the emblem is used in a manner which, in the determination of the 
commissioner, is injurious to the promotion of Texas agricultural commodities; 
or 
   
  [(5) the emblem is used by a person after permission has been revoked for 
nonpayment of annual registration fees]. 
     
  (c) Proceedings for the revocation of <nl>registration <ol> [permission] to 
use the TAP, Taste of Texas, <nl>Vintage Texas,<ol> or Texas Grown promotional 
<nl>mark<ol> [emblem] shall be conducted in the manner provided for contested 
cases by the Administrative Procedure and Texas Register Act, Texas Civil 
Statutes, Article 6252-13a, and Chapter 1 of this title (relating to General 
Practice and Procedure). 
   
  (d) A proceeding <nl>for<ol> revocation of <nl>registration<ol> [permission] 
to use the TAP, Taste of Texas, <nl>Vintage Texas,<ol> or Texas Grown 
promotional <nl>mark<ol> [emblem] shall not preclude the commissioner from 
pursuing <nl>any other remedies, including<ol>, where applicable, the penal and 
injunctive remedies provided in the Act, sec.2 and sec.3. 
 
  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 January 6, 1993. 
 TRD-9317280 
  Dolores Alvarado Hibbs 
 Chief Administrative Law Judge 
 Texas Department of Agriculture 
    Earliest possible date of adoption: February 15, 1993 
 For further information, please call: (512) 463-7583 
         
                   
  TITLE 19. Education 
 Part II. Texas Education Agency 
  Chapter 157. Hearings and Appeals 
  
  Subchapter AA. General Provisions for Hearings Before the Commissioner of 
Education 
 
  19 TAC sec.sec.157.1041-157.1060 
 
  The Texas Education Agency (TEA) proposes new sec.sec.157.1041-157.1060, and 
157.1071-157.1074, concerning hearings and appeals. The sections govern the 
proceedings in contested cases and appeals before the commissioner of education. 
 Kevin O'Hanlon, chief counsel, 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. O'Hanlon and Criss Cloudt, director of policy planning and evaluation, have 
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 a 
clearer, more concise statement of the rules relating to hearings and appeals. 
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 Criss Cloudt, Policy Planning and 
Evaluation, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. All 
requests for a public hearing on the proposed sections submitted in accordance 
with the Administrative Procedure and Texas Register Act must be received by the 
commissioner of education not more than 15 calendar days after notice of a 
proposed change in the sections has been published in the  Texas Register. 
 The new sections are proposed under The Texas Education Code, sec.11.13, which 
provides for appeals before the commissioner; and Texas Civil Statutes, Article 
6252-13a, sec.3 and sec.4, which authorize the State Board of Education to adopt 
rules of practice setting forth the nature and requirements of all formal and 
informal procedures available. 
 
 
  sec.157.1041. Scope and Purpose. 
 
  (a) This chapter shall govern the proceedings in all contested cases before 
the commissioner of education. 
   
  (b) This chapter adopts for all purposes the provisions of the Administrative 
Procedure and Texas Register Act (APTRA) (Texas Civil Statutes, Article 6252-
13a), the Texas Rules of Civil Evidence, and the Texas Rules of Civil Procedure. 
The Rules of Civil Evidence and Civil Procedure will prevail except as modified 
by APTRA and by these rules. The provisions of this Subchapter AA shall govern 
the procedure for the administration of all appeals before the state 
commissioner of education except where modified by Subchapter BB of this chapter 
(relating to Specific Appeals to the Commissioner). 
 
     
  sec.157.1042. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
   Agency-The Texas Education Agency. 
   
   Commissioner-The state commissioner of education; the agency having statewide 
jurisdiction to hear contested cases. 
   
   Contested case -A proceeding in which legal rights, duties, or privileges of 
a party are to be determined by the commissioner after opportunity for an 
adjudicative hearing. 
   
   Disqualification-When a hearings examiner, in his or her discretion, 
permanently forbids a party representative from any further participation in an 
adjudicative proceeding. 
   
   Exclusion-When a hearings examiner, in his or her discretion, ejects a person 
temporarily from an adjudicative proceeding. 
   
   Hearings examiner -A member or employee of the agency or other individual 
assigned to issue a proposal for decision, to render a decision, or to make 
findings of fact or conclusions of law in a case. 
   
   Hearings process -Refers to an adjudicative proceeding from initiation until 
final decision. 
   
   Party representative -A lawyer or non-lawyer who acts on behalf of himself or 
herself, or on behalf of another person during an adjudicative proceeding. 
 
   
  sec.157.1043. Hearings Examiner. 
 
  (a) The commissioner may designate and appoint a hearings examiner to act on 
his or her behalf in conducting any hearing or proceeding held under this 
chapter and to prepare proposals for decision on those hearings. 
   
  (b) The hearings examiner has the authority to administer oaths; call and 
examine witnesses; issue subpoenas; make rulings on motions, admissibility of 
evidence, and amendments to pleadings; maintain decorum; schedule and recess the 
proceedings from day to day; and make any other orders as justice requires. 
   
  (c) If the hearings examiner is unable to continue presiding over a case at 
any time before the final decision, another examiner will be appointed who shall 
perform any remaining function without the necessity of repeating any previous 
proceedings. 
 
     
  sec.157.1044. Classification of Parties. 
 
  (a) Parties are designated as follows. 
 
  (1) Petitioner-the party who initiates the appeal before the commissioner. 
   
  (2) Respondent-any party against whom a complaint or petition for review has 
been filed with the commissioner. 
   
  (3) Intervenor-a person who, upon showing a justiciable interest, is permitted 
to become a party to a proceeding. 
     
  (b) Regardless of errors concerning designations in the pleadings, parties 
shall be accorded their true status in the appeal. 
 
     
  sec.157.1045. Appearances.  Any party may appear on his or her own behalf; if 
a minor, by his or her next friend, or by a representative of the party's 
choice. Party representatives are held to the same procedural and substantive 
standards as attorneys authorized to practice law. 
 
   
  sec.157.1046. Conduct and Decorum. 
 
  (a) Standards of conduct during adjudicative proceedings. 
 
  (1) The hearings examiner and the party representative should refer to the 
Texas Disciplinary Rules of Professional Conduct for guidance, regardless of 
whether all participants are licensed attorneys (Texas State Bar Rules, Article 
10,  s9). 
   
  (2) Party representatives shall maintain high standards of professionalism 
during the administrative process and promote an atmosphere of civility and 
fairness. 
   
  (3) A party representative shall use these rules for legitimate purposes and 
not for dilatory purposes or to harass or intimidate other participants. 
     
  (b) Exclusion or disqualification of party representatives. 
 
  (1) Contemptuous conduct. A hearings examiner may exclude or disqualify a 
party representative from participating in an agency hearing for contemptuous 
conduct. The hearings examiner shall warn the party representative prior to 
exclusion, if possible. Contemptuous conduct includes: 
 
  (A) actual or threatened physical assault of any participant to the 
proceeding; 
   
  (B) knowingly or recklessly making a false statement of material fact or law 
to the hearings examiner; 
   
  (C) counseling or assisting a witness to testify falsely; 
   
  (D) knowingly or recklessly offering or using false evidence; 
   
  (E) filing a frivolous or knowingly false pleading or other document, or 
filing a frivolous or knowingly false defense. A frivolous filing is one: 
 
  (i) primarily for the purpose of harassing or maliciously injuring another 
person; or 
   
  (ii) for which the party representative is unable to make a good faith 
argument consistent with existing law, or a good faith argument for an 
extension, modification, or reversal of existing law; 
     
  (F) paying, offering to pay, or acquiescing in a payment or offer of payment 
to a witness based on the content of the witness' testimony or the outcome of 
the proceeding; 
   
  (G) continually violating an established rule of agency procedure or of 
evidence; 
   
  (H) raising superfluous objections or otherwise unreasonably delaying the 
proceeding or increasing the costs or other burdens of the proceeding; 
   
  (I) misrepresenting, mischaracterizing, or misquoting facts or law to gain 
unfair advantage; 
   
  (J) except as otherwise permitted by law, communicating or causing someone 
else to communicate with the hearings examiner without the knowledge and consent 
of opposing party representatives in order to gain unfair advantage or to 
influence the proceeding; 
   
  (K) using vulgar or abusive language during the proceeding; and 
   
  (L) engaging in disruptive conduct. 
     
  (2) Conflicts of interest. A hearings examiner may disqualify a party 
representative from participating in a proceeding if the hearings examiner 
decides that the party representative has a conflict of interest. Conflicts of 
interest can be, but are not limited to, the following: 
 
  (A) when a party representative who previously acted as a public officer or 
employee on a matter later attempts to represent a private client on the same 
matter, unless the appropriate government agency consents; 
   
  (B) when a party representative who serves as a public officer or employee on 
a matter negotiates for private employment with a party or party representative 
involved in the same matter; 
   
  (C) when a party representative who serves as a public officer or employee 
participates in a matter involving a former private client whom he or she 
represented on the same matter, unless no one may legally act in the attorney's 
stead; 
   
  (D) when an attorney engages in the practice of law while under suspension or 
in violation of a disciplinary order or judgment; and 
   
  (E) any other conflict of interest that, in the opinion of the hearings 
examiner, offends the dignity and decorum of the proceeding. 
     
  (3) Procedures for excluding or disqualifying a party representative. 
 
  (A) Notice. The hearings examiner shall state the specific reason for 
excluding or disqualifying a party representative on the record or in a written 
order. The hearings examiner shall notify the affected party and party 
representative of the exclusion or disqualification personally or by certified 
mail. 
   
  (B) Reasonable time for substitution. After the hearings examiner has excluded 
or disqualified a party representative, the affected party or party 
representative shall have reasonable time to appeal to the commissioner. If the 
commissioner sustains the exclusion or disqualification, the party shall have a 
reasonable time to substitute a new representative. In determining a reasonable 
time, the hearings examiner shall consider the right of opposing parties to have 
the proceeding resolved without undue delay. The hearings examiner may therefore 
align the affected party with another party in interest instead of permitting a 
substitution. 
   
  (C) Appeal to the commissioner. A party or party representative may appeal the 
exclusion (if it is for a period of more than eight hours) or disqualification 
to the commissioner. The motion shall be filed with the commissioner within five 
working days after actual notification of the exclusion or disqualification. If 
the commissioner does not act within 10 days after the motion is filed, the 
motion is overruled by operation of law. The commissioner may, however, extend 
the time for taking action on the motion. 
   
  (D) No further participation. After being disqualified from a proceeding, a 
party representative may not provide further assistance, either directly or 
indirectly, to any party with regard to the proceeding, except to the extent 
reasonably necessary to appeal to the commissioner and to complete the 
withdrawal and substitution of a new party representative. 
   
  (E) No recusal. The exclusion or disqualification of a party representative by 
a hearings examiner is not a ground for recusal of the hearings examiner in the 
same or any subsequent proceeding. 
 
         
  sec.157.1047. Classification of Pleadings. Pleadings filed with the 
commissioner shall include, but not be limited to, petitions, answers, replies, 
exceptions, and motions. Regardless of any error in its designation, the 
pleading shall be accorded its true status in the appeal in which it is filed. 
 
   
  sec.157.1048. Form and Content of Documents.  All pleadings, briefs, and 
exhibits filed with the commissioner shall be signed by the party representative 
and legibly handwritten, typewritten, or printed on paper 8 l/2 inches wide by 
11 inches long. 
 
   
  sec.157.1049. Service of Documents. 
 
  (a) Every pleading, plea, motion, or communication filed with the division of 
hearings may be served by delivering a copy to all party representatives of 
record either in person or by agent or by courier receipted delivery or by 
certified or registered mail, to the party's last known address, or by facsimile 
to the recipient's current telecopier number. 
   
  (b) Service by mail shall be complete upon deposit of the paper, enclosed in a 
postpaid, properly addressed wrapper, in a post office or official depository 
under the care and custody of the United States Postal Service. 
   
  (c) Service by facsimile completed after 5 p.m. local time of the recipient 
shall be deemed served on the following day. 
   
  (d) The party representative shall certify to the hearings examiner compliance 
with this rule in writing over the signature of the party representative and on 
the filed instrument. 
 
     
  sec.157.1050. Filing of Documents. 
 
  (a) Any document shall be deemed filed only when actually received by the 
director of hearings and appeals, the assigned hearings examiner, or the 
designated docket clerk. 
   
  (b) Documents may be filed by mail if sent by certified United States mail, 
return receipt requested, or by an overnight courier service. A document will be 
deemed timely filed if it is mailed on or before one day prior to the filing 
deadline as evidenced by a legible postmark placed on the envelope by the United 
States Postal Service and the document was received by the director of hearings, 
the hearings examiner, or the designated docket clerk by the close of business 
on the third calendar day following the filing deadline. 
   
  (c) Facsimile transmission of pleadings by telecopier to the division of 
hearings, in proper form, containing a facsimile of the signature of the party 
representative filing the pleading, constitutes filing. Parties shall not mail a 
duplicate of the transmitted document. Filing by facsimile completed after 5 
p.m. Austin, time shall be deemed filed on the following business day. 
 
     
  sec.157.1051. Petition for Review. 
 
  (a) Except where otherwise provided by law, the petitioner shall file with the 
commissioner a petition for review within 30 calendar days after the decision, 
order, or ruling complained of is first communicated to the petitioner. In all 
cases, when a decision is announced in the presence of the petitioner or the 
petitioner's representative of record at a hearing, the announced decision shall 
constitute communication to the petitioner. 
   
  (b) A petition for review shall contain the following: 
 
  (1) a description of the ruling, action, or failure to act complained of; 
   
  (2) the date of the ruling, action, or failure to act; 
   
  (3) a precise description of the action the petitioner wants the commissioner 
to take on the petitioner's behalf; 
   
  (4) a statement of the reason the petitioner is entitled to have the 
commissioner take action; 
   
  (5) a statement of the facts of which the petitioner is aware or which the 
petitioner believes to be true, which would lead to a reasonable conclusion that 
the petitioner is entitled to the relief sought; and 
   
  (6) the name, mailing address, telephone number of the petitioner's party 
representative during business hours, and facsimile number, if any. 
     
  (c) Nothing in this section requires the petitioner to plead all evidence 
relied upon. However, all issues relied upon by the petitioner must be raised in 
the petition for review, and the petitioner will be denied the opportunity to 
present evidence on issues not raised in the petition for review. 
   
  (d) The petition for review shall be served on the respondent by personal 
delivery or by certified mail. A certificate evidencing service shall be 
included in the petition for review. 
 
     
  sec.157.1052. Answers. 
 
  (a) The respondent shall file an answer within 20 calendar days after 
receiving notice from the commissioner that an appeal has been docketed. 
   
  (b) The answer shall specifically admit or deny each allegation in the 
petition for review and shall set forth all affirmative defenses. 
   
  (c) The answer shall contain the name of the respondent or the respondent's 
party representative, the mailing address, telephone number during business 
hours, and facsimile number, if any. 
   
  (d) All well-pled factual allegations will be deemed admitted unless the 
respondent's answer, containing specific denials to each allegation, is filed 
within the time period prescribed in subsection (a) of this section. A general 
denial shall not be sufficient to controvert factual allegations contained in 
the petition for review. 
 
     
  sec.157.1053. Prehearing Conference. 
 
  (a) In any appeal, the hearings examiner or a party may move for the setting 
of a prehearing conference. The hearings examiner will direct the parties to 
appear, either in person or by telephone, at a specific time for a conference 
prior to a hearing on the merits for the purposes of considering any of the 
following: 
 
  (1) the formulation or simplification of issues; 
   
  (2) admission of certain assertions of fact or stipulations; 
   
  (3) the procedure at the hearing on the merits; 
   
  (4) any limitation, where possible, of the number of witnesses; and/or 
   
  (5) such other matters as may aid in the simplification of the proceeding or 
the disposition of matters in controversy, including the settlement of matters 
in dispute. 
     
  (b) Action taken at the conference shall be recorded in the manner directed by 
the hearings examiner. 
 
     
  sec.157.1054. Discovery. 
 
  (a) Permissible forms of discovery are: 
 
  (1) oral or written deposition governed by Texas Civil Statutes, Article 6252-
13a, sec.14; 
   
  (2) written interrogatories to a party governed by Rules of Civil Procedure 
168; 
   
  (3) requests of a party for admission of facts and the genuineness or identity 
of documents or things governed by Rules of Civil Procedure 169; 
   
  (4) requests and motions for production, examination, and copying of documents 
or other tangible materials governed by Texas Civil Statutes, Article 6252-13a, 
sec.14a; 
   
  (5) requests and motions for entry upon and examination of real property 
governed by Texas Civil Statutes, Article 6252-13, sec.14a; and 
   
  (6) motions for a mental or physical examination of a party or person under 
the legal control of a party governed by Rules of Civil Procedure 167a. 
     
  (b) Any discovery motion shall contain a certificate by the party filing the 
motion that efforts to resolve the discovery dispute without the necessity of 
agency intervention have been attempted and failed. 
   
  (c) Requirements concerning discovery sanctions include the following. 
 
  (1) Motions for sanctions or order compelling discovery. Upon reasonable 
notice to other parties and affected persons, a party may apply to the hearings 
examiner for an order compelling discovery. A party may not request sanctions 
without having first obtained an order compelling discovery. 
   
  (2) Enforcement in district court. If a person fails to comply with a subpoena 
or a commission for deposition issued by a hearings examiner, the agency or 
party requesting the subpoena or commission for deposition may seek its 
enforcement in district court in any manner provided by law. 
   
  (3) Failure to comply with order or with discovery request. If a party; or an 
officer, director, or managing agency of a party; or a person designated to 
testify on behalf of a party fails to comply with proper discovery requests or 
to obey an order compelling discovery, a hearings examiner may, after 
opportunity for hearing, make orders in response to the failure, including any 
of the following orders: 
 
  (A) preventing the disobedient party from further discovery of any kind, or of 
a particular kind; 
   
  (B) deeming any facts pertaining to the order, or any other facts, to be 
established, as claimed by the moving party; 
   
  (C) disallowing the disobedient party from supporting or opposing designated 
claims or defenses, or prohibiting the party from introducing designated matters 
in evidence; and 
   
  (D) striking out pleadings or parts of pleadings, staying further action until 
the order is obeyed; dismissing the proceeding with or without prejudice; or 
rendering a default judgment against the disobedient party. 
     
  (4) Abuse of discovery process. The hearings examiner may impose any of the 
sanctions listed on a party who abuses the discovery process in seeking or 
resisting discovery or who files a request, response, or answer that is 
frivolous, oppressive, or made for the purpose of delay. 
   
  (5) Failure to respond to or supplement discovery. A party who fails to 
respond to or supplement a discovery request or refuses to supplement a response 
to a discovery request may not present evidence that the party was under a duty 
to provide in a response or supplemental response, and may not offer the 
testimony of an expert witness or of any other person having knowledge of the 
discoverable matter, unless the hearings examiner finds good cause to permit the 
evidence despite the noncompliance. The burden of establishing good cause is 
upon the party offering the evidence, and good cause must be shown in the 
record. 
   
  (6) Impermissible communications. Unless permitted by law, party 
representatives shall not communicate with the hearings examiner or the 
commissioner without the knowledge of all other parties. The hearings examiner 
or commissioner may impose any of the preceding sanctions for impermissible 
communication. 
   
  (7) Record of basis for sanction. The hearings examiner shall state the 
specific basis for any sanction in the record or in a written order. A 
sanctioned party has the right to appeal the sanction to the commissioner in 
accordance with sec.157.1046(b)(3)(C) of this title (relating to Conduct and 
Decorum). 
 
       
  sec.157.1055. Motions for Continuance. A motion for continuance shall 
specifically articulate grounds constituting good cause and shall be filed in 
writing. 
 
   
  sec.157.1056. Dismissal Without a Hearing; Nonsuits. 
 
  (a) The commissioner or his or her designee may, on his or her own motion or 
the motion of a party, dismiss an appeal without a hearing for the following 
reasons: compromise, unnecessary duplication of proceedings, res judicata, 
withdrawal, mootness, untimely filing, lack of jurisdiction, failure of a party 
requesting relief from the commissioner to set forth facts in the pleadings that 
would support a decision in that party's favor, failure to state a claim for 
which relief can be granted, or failure to prosecute. 
   
  (b) The petitioner may nonsuit the appeal at any time. 
 
     
  sec.157.1057. Order of Procedure at Hearing. 
 
  (a) The petitioner may state briefly the nature of the claim or defense, what 
the petitioner expects to prove, and the relief sought. Immediately after, the 
respondent may make a similar statement, and the intervenors and other parties 
will be afforded similar rights as determined by the hearings examiner. 
   
  (b) Evidence shall then be introduced by the petitioner. The respondent and 
intervenors shall have the opportunity to cross-examine each of the petitioner's 
witnesses. 
   
  (c) Cross-examination is not limited solely to matters raised on direct 
examination. Parties are entitled to redirect and recross examination. 
   
  (d) Unless the statement has already been made, the respondent may briefly 
state the nature of the claim or defense, what the respondent expects to prove, 
and the relief sought. 
   
  (e) Evidence, if any, shall be introduced by the respondent. The petitioner 
and intervenors shall have the opportunity to cross-examine each of the 
respondent's witnesses. 
   
  (f) The intervenor and other parties may make their statement, unless they 
have already done so, and shall introduce their evidence, if any. The petitioner 
and respondent shall have the opportunity to cross-examine the intervenor's 
witnesses. 
   
  (g) The petitioner may present rebuttal evidence. 
   
  (h) The parties may be allowed closing arguments at the discretion of the 
hearings examiner. 
   
  (i) The hearings examiner may permit deviations from this order of procedure 
in the interests of justice. 
   
  (j) Parties shall provide four copies of each exhibit offered. 
   
  (k) At the hearing before the commissioner, any part or all of a certified 
transcript of sworn testimony and exhibits taken in the hearing before the local 
board of trustees may be used by any person for any purpose against any party 
who was present or represented at the hearing before the local board of trustees 
or who had reasonable notice of the meeting. The Texas Rules of Civil Evidence 
shall be applied to each question and answer as though the witness were then 
present and testifying. Unavailability of a witness is not a requirement for 
admissibility. 
   
  (l) In any appeal where a party is represented by more than one attorney, a 
lead attorney must be designated. The parties shall designate a lead attorney. 
 
     
  sec.157.1058. Filing of Exceptions and Replies to Proposal for Decision. 
 
  (a) A copy of the proposal for decision in a contested case shall be 
simultaneously delivered or mailed by certified mail, return receipt requested, 
to each party representative of record. 
   
  (b) Exceptions to the proposal for decision shall be filed within 20 calendar 
days of the date of the proposal for decision. 
   
  (c) Replies to exceptions shall be filed within 35 calendar days of the date 
of the proposal for decision. 
   
  (d) All disagreements with the factual findings of the proposal for decision 
must be made in the parties' exceptions to the proposal for decision or be 
waived. 
   
  (e) The exceptions shall be specifically and concisely stated. The evidence 
relied upon shall be stated with particularity, and any evidence or arguments 
relied upon shall be grouped under the exceptions to which they relate. 
 
     
  sec.157.1059. Orders.  After the time for filing exceptions and replies to 
exceptions expires, the hearings examiner's proposal for decision will be 
considered by the commissioner and either adopted or modified and adopted. All 
final decisions or orders of the commissioner shall be in writing and signed. A 
final decision shall include findings of fact and conclusions of law separately 
stated. Findings of fact, if set forth in statutory language, shall be 
accompanied by a concise and explicit statement of the underlying facts 
supporting the findings. Parties shall be notified either personally or by 
certified mail of any decision or order, and a copy of the decision or order 
shall be delivered or mailed to any party and to his or her authorized 
representative. 
 
   
  sec.157.1060. Motions for Rehearing. 
 
  (a) In the absence of a finding of imminent peril, a motion for rehearing is a 
prerequisite to a judicial appeal. A motion for rehearing must be filed by a 
party within 20 days after the date the party representative is notified of the 
final decision or order. 
   
  (b) Replies to a motion for rehearing must be filed with the agency within 30 
days after the date the party representative is notified of the final decision 
or order. 
   
  (c) Agency action on the motion for rehearing must be taken within 45 days 
after the date a party representative is notified of the final decision or 
order. If agency action is not taken within the 45-day period, the motion for 
rehearing is overruled by operation of law 45 days after the date the party 
representative is notified of the final decision or order. 
   
  (d) The agency may, by written order, extend the period of time for filing the 
motions or replies and taking agency action, except that an extension may not 
extend the period for agency action beyond 90 days after the date a party 
representative is notified of the final order or decision. 
   
  (e) In the event of an extension, the motion for rehearing is overruled by 
operation of law on the date fixed by the order, or in the absence of a fixed 
date, 90 days after the date the party representative is notified of the final 
decision or order. 
 
  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 January 6, 1993. 
 TRD-9317249 
  Criss Cloudt 
 Director of Policy Planning and Evaluation 
 Texas Education Agency 
    Earliest possible date of adoption: February 12, 1993 
 For further information, please call: (512) 463-9701 
         
             
  Subchapter BB. Specific Appeals to the Commissioner 
 
  19 TAC sec.sec.157.1071-157.1074 
 
  The new sections are proposed under the Texas Education Code, sec.11.13, which 
provides for appeals before the commissioner; and Texas Civil Statutes, Article 
6252-13a, sec.3 and sec.4, which authorize the State Board of Education to adopt 
rules of practice setting forth the nature and requirements of all formal and 
informal procedures available. 
 
 
  sec.157.1071. Proceedings Brought Under the Term Contract Nonrenewal Act. 
 
  (a) This section shall apply in all appeals brought under the Term Contract 
Nonrenewal Act (Texas Education Code, sec.21.201 et seq). To the extent that 
this section conflicts with any other sections governing proceedings before the 
commissioner, the requirements in this section shall prevail. 
   
  (b) All allegations by the teacher that the decision of the board of trustees 
was arbitrary, capricious, unlawful, or not supported by substantial evidence 
shall be decided upon a review of the record of the proceeding of the board of 
trustees as required by the Texas Education Code, sec.21.205(b); however, on the 
motion of either party, the hearings examiner may order that additional evidence 
be taken to supplement the transcript if it appears that the party has evidence 
to offer that is material, relevant, and not unduly repetitious, that the party, 
for good cause, was unable to adduce at the local hearing. Good cause for 
failure to secure the testimony of a witness may be demonstrated by: 
 
  (1) a clear and unambiguous communication to the witness of the party's 
intention to call the witness at the hearing; 
   
  (2) reasonable notice to the witness of the date, time, and place of the board 
meeting at which the testimony will be required; and 
   
  (3) such reasonable follow-up measures as an ordinarily prudent person would 
exercise to secure the attendance of a material witness at a hearing before the 
board of trustees. 
     
  (c) In all nonrenewal cases, the school district must file a record of the 
proceeding before the board of trustees that includes a certified transcription 
of the hearing before the board of trustees; the policies on evaluation, 
nonrenewal, and administrative recommendations concerning nonrenewal; the 
request for a local hearing; and all documents and exhibits filed in the local 
proceeding. The school district shall provide the teacher with written notice 
when the record of appeal is prepared and shall make the record available to the 
teacher for inspection. The school district shall provide the teacher with 
copies of all items in the record other than the transcript. A copy of the 
transcript shall be provided to the teacher upon request for a reasonable 
charge. 
   
  (d) The transcript filed by the school district shall be considered complete 
and accurate and shall be admitted into evidence before the commissioner for all 
purposes, unless the petitioner files objections to the record within 30 days 
after the date of filing of the record that set forth specifically those items 
that are relevant and material and that have been erroneously omitted from the 
record or those portions of the record that are relevant and material but that 
have been inaccurately transcribed. The commissioner may conduct a proceeding 
for the purpose of receiving evidence relevant to any such challenge to the 
record if it appears that the matter in dispute is material to the outcome of 
the appeal. 
   
  (e) Allegations in the petition for review that the decision of the board of 
trustees was arbitrary, capricious, or unlawful must allege sufficient facts 
that would support a holding that the board of trustees' decision was arbitrary, 
capricious, or unlawful, even if it should also be held that the decision was 
supported by substantial evidence. If such factual allegations are not made, no 
cause of action will be stated regarding these claims. 
   
  (f) Upon either party's request, the commissioner shall afford both parties 
the opportunity to present oral argument and/or briefs concerning the merits of 
the appeal. 
   
  (g) The commissioner of education may substitute his or her judgment for that 
of the board of trustees when the board of trustees' decision was arbitrary, 
capricious, unlawful, or not supported by substantial evidence including, but 
not limited to, the following circumstances: 
 
  (1) where the written notice that the teacher's nonrenewal was under 
consideration was not given to the petitioner by April 1. Notice sent by 
certified mail, addressed to the last known address of the teacher, postmarked 
by the United States Postal Service on or before March 25, will be considered 
timely; 
   
  (2) where the written notice to the teacher failed to state the reasons for 
the action under consideration; 
   
  (3) where the required notice failed to state the reasons in a manner 
sufficient to allow the teacher the opportunity to adequately prepare a response 
at the local hearing to the allegations in the notice, and the teacher, at the 
time the teacher requested a hearing, set forth clearly in writing any 
deficiencies in the notice, and any such deficiencies were not promptly 
corrected prior to the date of the hearing; 
   
  (4) where the evidence adduced at the local hearing does not support the 
specific reasons of which the teacher was given written notice; 
   
  (5) where the teacher requested a hearing within 10 days after receiving the 
required notice, and the hearing was not held within 15 days after the request 
was received, except as provided in this subsection. The teacher may waive his 
or her right to be heard within 15 days by written agreement. If the school 
district, within five days of receiving the request for hearing, schedules the 
hearing for a date outside the 15-day period, the teacher will be deemed to have 
consented to that date, unless the teacher files an objection to that date 
within three days after receiving notice from the district; 
   
  (6) where the school district fails to provide the commissioner with a 
certified transcript of the local hearings; 
   
  (7) where the decision of the local board was not supported by substantial 
evidence that would have been admissible in an evidentiary hearing before the 
agency; 
   
  (8) where no written evaluation of the teacher was prepared by the 
administration, or where the board of trustees failed to consider the 
administration's evaluation of the teacher prior to its decision not to renew 
the teacher's term contract. The board of trustees is not bound by the 
administrator's evaluation, but the evaluation must be considered; 
   
  (9) where the reason for nonrenewal was not set forth in writing in the school 
district's policies; 
   
  (10) where the nonrenewal is based on a reason contained in a policy that was 
adopted so recently prior to its use as a reason for nonrenewal that the teacher 
did not have fair opportunity to conform his or her conduct accordingly; and 
   
  (11) where the board of trustees prevented the teacher from introducing at the 
local hearing admissible evidence that was material, relevant, and not unduly 
repetitious. 
     
  (h) Except concerning those matters specifically agreed to, a teacher does not 
waive any right to raise any procedural defect or substantive issue on appeal 
simply by participating in the hearing before the board of trustees; however, 
any procedural defect known at the time of the hearing and not presented by the 
teacher at the hearing is waived, unless good cause is shown for the failure to 
present the defect. 
 
     
  sec.157.1072. Hearings Concerning Complaints Made to the Teachers' 
Professional Practices Commission of Texas. 
 
  (a) This section shall apply to hearings concerning complaints made to the 
Teachers' Professional Practices Commission of Texas (TPPC). To the extent that 
this section of the rules adopted by the TPPC conflict with any other sections 
governing proceedings before the commissioner of education, the requirements of 
this section and rules of TPPC shall be followed. 
   
  (b) When a complaint is received by TPPC, the director of TPPC will consult 
with the attorney assigned to TPPC to discuss the jurisdiction determination. If 
the attorney believes that the facts alleged, even if true, would not constitute 
a violation of the code of ethics, the attorney shall advise the director of 
that opinion in writing. In addition, the commissioner or his or her hearing 
officer may, at any time, advise TPPC of their opinions concerning the issue of 
jurisdiction. 
   
  (c) Upon being notified by TPPC that it has accepted jurisdiction of a 
complaint, the commissioner shall appoint a hearing officer to preside over the 
proceeding and an attorney to advise TPPC at the hearing. 
   
  (d) The rules of evidence shall be liberally construed at any hearing 
conducted under this section, and all evidence shall be admitted, unless: 
 
  (1) it is clearly irrelevant, immaterial, or unduly repetitious; 
   
  (2) its evidentiary value is clearly outweighed by its tendency to prejudice 
the fact finder against a particular party or witness; or 
   
  (3) it is otherwise clearly inadmissible for any purpose. 
     
  (e) Parties who are not represented by counsel shall not be placed at a 
disadvantage by the fact that they are unfamiliar with courtroom procedure. 
Whenever such a party is prevented from presenting relevant evidence by 
objections unrelated to the admissibility of that evidence, the attorney 
assigned by the commissioner to assist the TPPC may explain to that party the 
proper method of presenting the evidence. 
   
  (f) After the parties have concluded their examination of any witness, TPPC 
and the hearing officer may ask any questions that are necessary and proper to 
enable them to understand fully the witness's testimony. 
   
  (g) After both parties have presented their evidence and argument, the hearing 
officer may discuss any aspect of the case freely with TPPC during its 
deliberations. 
   
  (h) The commissioner may receive a recommendation from TPPC that any of the 
following actions be taken regarding the complaint in part or in its entirety: 
 
  (1) that the complaint be dismissed; 
   
  (2) that the respondent be issued a warning to be made a part of the 
respondent's file kept by the Division of Educational Personnel Records (DEPR); 
   
  (3) that the respondent be issued a reprimand to be made a part of the 
respondent's file kept by the DEPR; 
   
  (4) that the respondent be issued a reprimand to be made a part of the 
respondent's file kept by the DEPR, with notification of the reprimand to be 
provided to all superintendents of all school districts in the State of Texas 
and to certification officers in each state or territory of the United States by 
the DEPR; 
   
  (5) that the respondent's certificate be suspended for a period not to exceed 
one year; or 
   
  (6) that the respondent's certificate be revoked. 
     
  (i) After receiving the TPPC's recommendation, the commissioner shall give the 
parties the opportunity to respond to the recommendation in the manner set forth 
in sec.157.16 of this title (relating to Filing of Exceptions and Replies to a 
Proposal for Decision). 
 
  (1) No additional evidence may be presented following the TPPC's 
recommendation without good cause, other than lack of diligence, as determined 
by the commissioner. 
   
  (2) If the commissioner determines that it is necessary to take additional 
evidence, TPPC and the parties shall be notified of the hearing date. Those 
members of TPPC who participated in the initial hearing may participate to the 
same extent in the hearing to receive additional evidence, and after hearing the 
additional evidence, shall be given an opportunity to file an amended 
recommendation to the commissioner. 
     
  (j) If TPPC recommends that the complaint be dismissed or that the respondent 
be issued a warning or reprimand to be kept on file by the DEPR, the 
commissioner may adopt that recommendation with no further proceedings if it is 
supported by substantial evidence in the hearing transcript. Prior to taking any 
action other than that recommended by TPPC, the commissioner shall instruct the 
hearing officer to prepare a proposal for decision pursuant to subsection (k) of 
this section. 
   
  (k) If TPPC recommends that the respondent's certificate be suspended or 
revoked, or that the respondent be publicly reprimanded, the hearing officer 
shall enter a proposal for decision. The hearing officer may adopt the TPPC's 
recommendation in whole or in part in the proposal. The parties shall be given 
an opportunity to respond to the proposal pursuant to sec.157.16 of this title. 
After receiving the TPPC's recommendation, the hearing officer's proposal for 
decision, and the parties' exceptions and replies, the commissioner shall take 
whatever action he or she deems appropriate. 
   
  (l) In any case in which the hearing officer's recommendation is different 
than that of TPPC, the commissioner shall schedule a conference concerning the 
matter with the hearing officer and a representative of the TPPC prior to 
issuing a decision. The TPPC shall be given 10 days notice of the conference. 
 
     
  sec.157.1073. Proceedings Concerning the Suspension or Cancellation of a 
Certificate or Permit by a District or the Agency. 
 
  (a) This section shall apply to all proceedings concerning the sanction of any 
certificate or permit issued by the commissioner of education other than 
proceedings brought to the commissioner by the Teachers' Professional Practices 
Commission of Texas (TPPC). To the extent that this section conflicts with any 
other section governing proceedings before the commissioner, the provisions of 
this section shall prevail. 
   
  (b) A complaint may be filed at any time by a school district or the Division 
of Educational Personnel Records (DEPR) of the Texas Education Agency as 
petitioner requesting the commissioner to sanction a certificate or permit 
issued by the agency. Any complaint must clearly set forth facts that would 
justify taking such action and set forth with specificity the sanction sought to 
be imposed. This complaint shall constitute, and its contents shall be subject 
to, the rules governing petitions for review. Sanctions include: 
 
  (1) that the respondent be issued a warning to be made a part of the 
respondent's file kept by the DEPR; 
   
  (2) that the respondent be issued a reprimand to be made a part of the 
respondent's file kept by the DEPR; 
   
  (3) that the respondent be issued a reprimand to be made a part of the 
respondent's file kept by the DEPR and inscribed on the respondent's Texas 
teacher certificate, with notification of the reprimand to be provided to all 
superintendents of all school districts in the state of Texas and to 
certification officers in each state or territory of the United States by the 
DEPR; 
   
  (4) that the respondent's certificate be suspended for a period not to exceed 
one year; or 
   
  (5) that the respondent's certificate be revoked. 
     
  (c) The respondent shall file an answer that complies with sec.157.1052 of 
this title (relating to Answers). All well-pled factual allegations will be 
deemed admitted unless the respondent's answer, containing specific denials to 
each allegation, is filed within the time period prescribed in  s157.1052(a) of 
this title. A general denial shall not be sufficient to controvert factual 
allegations contained in the petition for review. 
   
  (d) After receipt of the respondent's answer, the commissioner shall schedule 
a hearing at which all parties shall have the opportunity to present evidence 
and argument concerning the merits of the complaint. 
   
  (e) The burden of proof at any such hearing will be on the petitioner or 
petitioner/intervenor to prove its allegations by a preponderance of the 
evidence. 
 
     
  sec.157.1074. Student Appeals. 
 
  (a) This section shall apply in all appeals brought by students from actions 
or decisions of a local board of trustees pursuant to the Texas Education Code, 
sec.11.13(b). To the extent that this section conflicts with any other section 
governing proceedings before the commissioner, the provisions of this section 
shall prevail. 
   
  (b) In all cases, the school district must file a record of the proceedings 
before the board of trustees with its answer. The record of the proceedings must 
include all policies relevant to the appeal, all written correspondence between 
the district's representatives and the student (or the student's parents or 
representatives) concerning the matter appealed, and a certified transcript of 
the local hearing on the matter. The school district shall notify the student in 
writing when the record of appeal is prepared and make the record available to 
the student for inspection. The school district shall provide the student with 
copies of all items in the record other than the transcript. A copy of the 
transcript shall be provided to the student for a reasonable charge upon 
request. 
   
  (c) The commissioner's decision shall be based on a review of the record of 
the proceedings before the board of trustees; however, on the motion of either 
party, the commissioner may order that the record be reopened to supplement the 
transcript if it appears that the party has evidence to offer that is material, 
relevant, and not unduly repetitious, that the party, for good cause, was unable 
to adduce at local hearing. Standards for determining whether the record should 
be reopened because of the absence of a witness are as follows: 
 
  (1) a clear and unambiguous communication to the witness of the party's 
intention to call the witness at the hearing; 
   
  (2) reasonable notice to the witness of the date, time, and place of the board 
meeting at which the testimony will be required; and 
   
  (3) such reasonable follow-up measures as an ordinarily prudent person would 
exercise to secure the attendance of a material witness at a hearing before the 
board of trustees. 
     
  (d) The record of the proceedings shall be considered complete and accurate 
and shall be admitted into evidence before the commissioner for all purposes, 
unless within 30 days of the date of filing the record, the student files 
objections to the record that set forth specifically the items that are relevant 
and material and that have been erroneously omitted from the record or the 
portions of the record that are relevant and material but have been inaccurately 
transcribed. The commissioner shall conduct a proceeding to receive evidence 
relevant to any such challenge to the record if it appears that the matter in 
dispute is material to the outcome of the appeal. 
   
  (e) If the record of the proceedings does not contain a certified transcript 
of the local hearing, the commissioner may, as he or she deems best, either 
reverse the school district's decision without a hearing, or conduct a hearing 
to receive evidence concerning all material facts in dispute. 
   
  (f) Upon either party's request, the commissioner shall afford both parties 
the opportunity to file briefs and present oral argument concerning the merits 
of the appeal. 
   
  (g) The commissioner may substitute his or her judgment for that of the board 
of trustees only when the board's decision was arbitrary, capricious, unlawful, 
or not supported by substantial evidence. 
   
  (h) Cases in which the student's education is being disrupted in any manner 
pending the outcome of the appeal may be expedited. 
 
  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 January 6, 1993. 
 TRD-9317250 
  Criss Cloudt 
 Director of Policy Planning and Evaluation 
 Texas Education Agency 
    Earliest possible date of adoption: February 15, 1993 
 For further information, please call: (512) 463-9701 
         
                   
  TITLE 22. EXAMINING BOARDS 
 Part XXIV. Texas Board of Veterinary Medical Examiners 
  Chapter 573. Rules of Professional Conduct 
  
  Records Keeping 
 
  22 TAC sec.573.51 
 
  The Texas Board of Veterinary Medical Examiners proposes an amendment to 
sec.573.51 concerning rabies control which will align the rule with recently 
adopted changes to the Texas Department of Health's rules concerning the control 
of rabies in Texas. 
 Buddy Matthijetz, Executive Director, 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. Matthijetz 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 to ensure complete rabies vaccination records are maintained 
by the veterinarian for a period of not less than three years and makes issuance 
of rabies tags optional. 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 Judy Smith, Texas Board of 
Veterinary Medical Examiners, 1946 South IH 35, Suite 306, Austin, Texas 78704. 
 The amendment is proposed under Texas Civil Statutes, Article 8890, sec.7(a), 
which provide the Texas Board of Veterinary Medical Examiners with the authority 
to make, alter, or amend such rules and regulations as may be necessary or 
desirable to carry into effect the provisions of this Act. 
 
 
  sec.573.51. Rabies Control. 
 
  <ol>(a)<nl> Official rabies vaccination certificates issued by the vaccinating 
veterinarian shall contain certain standard information as designated by the 
Texas Department of Health, as follows: 
 
  <nl>(1) owner's name, address and telephone number; 
   
  <nl>(2) animal identification (species, sex, age, size (pounds), predominate 
breed, and color; 
   
  <nl>(3) vaccine used, producer, expiration date, and serial number; 
   
  <nl>(4) date vaccinated; 
   
  <nl>(5) rabies tag number if a tag is issued; 
   
  <nl>(6) veterinarian's signature or signature stamp and license number 
<ol>[Each Texas licensed veterinarian shall keep a record of each rabies 
vaccination administered by him/her for at least three years. The record of said 
vaccination shall include the date administered, animal's breed, age, 
approximate weight, name, color, owner, the vaccine expiration date, together 
with its serial number. The name, address, and telephone number of the 
administering veterinarian, along with his/her signature, and license number 
shall be included. The tag shall include the tag serial number, clinic name, or 
veterinarian's name, telephone number, or address and the title "Rabies"]. 
     
  <ol>(b)<nl> Each Texas licensed veterinarian shall keep a copy of each rabies 
vaccination certificate administered by him/her for at least three years <ol>[It 
is the duty of a veterinarian to inquire whether an animal that has expired in 
his/her clinic, or that is brought to the clinic dead, has bitten any human 
being prior to its death. If the animal has bitten any human being prior to its 
death, the veterinarian shall inform the Texas Department of Health or local 
health authorities of the possibility of rabies and take proper precautions to 
preserve the animal's body for rabies diagnosis]. 
   
  <nl>(c) It is the duty of the veterinarian having knowledge of an animal bite 
to a human to immediately report the incident to the local health authority. If 
the veterinarian prepares the biting animal's body for rabies diagnosis, he 
shall follow instructions detailed in the Texas Rabies Control and Eradication 
Act, sec.169.33. 
   
  <nl>(d) If a veterinarian ceases the practice of veterinary medicine, the 
duplicate rabies vaccination certificates retained by that practice shall be 
turned over to the local health authority. This does not apply to the sale or 
lease of a practice, when the records of the practice are transferred to a new 
owner. 
 
  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 January 5, 1993. 
 TRD-9317345 
  Buddy Matthijetz 
 Executive Director 
 Texas Board of Veterinary Medical Examiners 
    Earliest possible date of adoption: February 15, 1993 
 For further information, please call: (512) 447-1183 
         
                 Part XXIX. Texas Board of Professional Land Surveying 
  Chapter 663. Standards of Responsibility and Rules of Conduct 
  
  Professional and Technical Standards 
 
  22 TAC sec.663.18 
 
  The Texas Board of Professional Land Surveying proposes an amendment to 
sec.663.18, concerning certification. The Texas Board of Professional Land 
Surveying proposes this amendment to clarify the Board's position on 
certification. 
 Sandy Smith, executive director, 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. Smith 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 that all work conforming to the definition of surveying, as 
defined by the Act, will be required to adhere to minimum standards, thus 
providing the public with a better surveying product. 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 Sandy Smith, Executive Director, 
7701 North Lamar Boulevard, Suite 400, Austin, Texas 78752. Written public 
comment is invited for 30 days from the date of this Register. 
 The amendment is proposed under Texas Civil Statutes, Article 5282c, sec.9, 
which provide the Texas Board of Professional Land Surveying with the authority 
to make and enforce all reasonable and necessary rules, regulations, and bylaws 
not inconsistent with the Texas Constitution, the laws of this state, and this 
Act. 
 
 
  sec.663.18. Certification. 
 
  (a) (No change.) 
   
  <nl>(b) The Professional Land Surveyor shall not apply a seal to any service 
which does not constitute professional surveying as defined by the Act. 
   
  <nl>(c)<ol>[(b)] If the surveyor certifies, or otherwise indicates, that 
his/her product or service meets a standard of practice in addition to that 
promulgated by the Texas Board of Professional Land Surveying, then the failure 
to so meet both standards may be considered by the Board, for disciplinary 
purposes, to be misleading the public. 
 
  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 January 6, 1993. 
 TRD-9317293 
  Sandy Smith 
 Executive Director 
 Texas Board of Professional Land Surveying 
    Earliest possible date of adoption: February 15, 1993 
 For further information, please call: (512) 452-9427 
         
                   
  TITLE 34. PUBLIC FINANCE 
 Part I. Comptroller of Public Accounts 
  Chapter 3. Tax Administration 
  
  Subchapter B. Natural Gas Production Tax 
 
  34 TAC sec.3.20 
 
  The Comptroller of Public Accounts proposes new sec.3.20, concerning 
producer's gross cash receipts. The new section provides guidance as to what is 
to be included, or excluded, from gross cash receipts when a payment that 
relates to the price, the quality, or the quantity of the gas is made by the 
first purchaser of the gas to the producer. 
 Tom Plaut, chief revenue estimator, has determined that for the first five-year 
period the section is in effect there will be no significant revenue impact on 
the state or local government as a result of enforcing or administering the 
section. This section is adopted under the Tax Code, Title 2, and does not 
require a statement of fiscal implications for small businesses. 
 Dr. Plaut 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 from clarification of the tax law regarding reporting guidelines 
for natural gas occupation tax. There is no significant anticipated economic 
cost to persons who are required to comply with the proposed section. 
 Comments on the new section may be submitted to Charles C. Johnstone, Manager, 
Tax Administration Division, P.O. Box 13528, Austin, Texas 78711. 
 The new section is proposed under the Tax Code, sec.111.002, which provides the 
comptroller with the authority to prescribe, adopt, and enforce rules relating 
to the administration and enforcement of the provisions of the Tax Code, Title 
2. 
 <p sec.3.20. Producer's Gross Cash Receipts. 
 
  (a) The following words and terms, when used in this section, shall have the 
following meanings, unless the context clearly indicates otherwise. 
 
  (1)  Arm's-length transaction-A transaction between parties free of fraud or 
intent to evade the tax under this section. 
   
  (2)  Non-recoupable payment-A payment made by a purchaser to a producer which 
is not refundable and will not be applied toward the purchase price of gas taken 
in the future. 
   
  (3) Recoupable payment-A payment made by a purchaser to a producer and is to 
be applied toward the price of gas to be produced and delivered to the purchaser 
during future periods. 
   
  (4) Related party-Any party with common ownership and exercising control over, 
or under the control of, the other party, or owned by another party which has 
common ownership and control over both contracting parties. 
     
  (b) The producer's gross cash receipts shall include: 
 
  (1) payments made to the producer by the first purchaser of gas which relate 
to the price of gas produced and taken pursuant to the terms of a contract for 
the sale of gas; and 
   
  (2)  all monies that are received as compensation by the producer in 
connection with any judgment, compromise, or settlement agreement relating to 
the recovery of the contract price of gas produced, as provided by subsection 
(d) of this section. 
     
  (c) The producer's gross cash receipts shall not include: 
 
  (1) payments made to the producer by a purchaser under a contract for the sale 
or purchase of gas if the gas is never produced and delivered to the purchaser 
pursuant to that contract; 
   
  (2) reimbursement for litigation-related expenses, such as documented 
attorney's fees or court costs; or reasonable interest agreed upon by the 
parties, or in the absence of an agreement between the parties an amount to be 
determined by or from the records of the producer; or court-ordered interest 
received by the producer in connection with any judgment, compromise, or 
settlement agreement arising out of a dispute involving a contract for the sale 
of gas; 
   
  (3) a payment made to a producer by a gas purchaser to terminate a gas 
purchase contract. However, a replacement contract entered into within 90 days 
by the producer and same purchaser, or a party related to that purchaser, 
covering sales from the same leases or unit subject to the terminated contract 
may be examined to determine if the replacement contract is an arm's-length 
transaction between the parties. The burden in establishing that a replacement 
contract is not an arm's-length contract is on the comptroller. A below market 
price paid for the gas in a replacement contract will be evidence that the 
contract was not arm's length; and 
   
  (4) a payment made to a producer by a gas purchaser to amend any provision in 
the gas purchase contract, except for a provision affecting the price to be paid 
by the purchaser. 
     
  (d)  This subsection is solely for the purpose of allocating a settlement 
among several claims. 
 
  (1) Any judgment, compromise, or settlement amount received shall be prorated 
based upon the documented amounts due under the contract for each issue 
according to the records of the producer when the value received by a producer 
from a purchaser in settlement of a dispute concerning pricing and any other 
issue associated with the gas sales/purchase contract is less than the full 
amount sought by the producer. Any amount allocated as a payment defined in 
subsection (c)(1) of this section is not taxable. The value subject to tax is 
the product obtained by multiplying the settlement amount, minus litigation-
related expenses and interest, by a fraction, the numerator of which is the 
documented value assigned to pricing and the denominator of which is the total 
documented amount sought by the producer. For example, a settlement of $110,000 
(minus litigation-related expenses and interest of $10,000) for a pricing 
dispute of $25,000, and an amount of $225,000 for failure to pay for gas not 
taken, would result in a taxable settlement value of $10,000 (100,000 X 
25,000/250,000). 
   
  (2) Records of the producer shall include, but are not limited to: 
 
  (A) the contracts and the settlement agreements; 
   
  (B) accounting entries, including entries reflecting receivables and payables; 
   
  (C) court pleadings; and 
   
  (D)  worksheets, including calculations reflecting settlement amounts. 
     
  (3) Whenever it is necessary to determine taxable value under this subsection, 
the greatest weight shall be given to the records in the order that they are 
listed in paragraph (2) of this subsection. 
     
  (e) When gas is sold for consideration other than cash or products extracted 
from the gas, the taxable value shall be determined as follows. 
 
  (1) When gas is sold for cash and any consideration other than products or 
residue or both, the tax shall be computed on the producer's gross cash receipts 
for the gas sold and, with regard to the non-cash consideration, on the gross 
value of all items received. 
   
  (2) When gas is sold for any consideration other than cash, products, or 
residue, or a combination thereof, the tax shall be computed on the gross value 
of all items received for the gas sold. 
   
  (3) For purposes of this subsection, the reasonable market value shall be 
assigned to the non-cash consideration. 
     
  (f) Tax is due according to the following. 
 
  (1) Tax is due on payments, including recoupable payments as defined in this 
section, made to the producer by the first purchaser of gas when the gas is 
produced and delivered to the purchaser. 
   
  (2) If a producer receives a non-recoupable payment as consideration for 
amending any provision in the contract affecting the price of the gas, then the 
tax shall be due based upon the value the producer would have received under the 
pricing provisions of the contract before they were amended until: 
 
  (A) the difference between the value the producer would have received before 
the contract price was amended and the value the producer received after the 
contract price was amended equals the non-recoupable payment; or 
   
  (B) until production from the property ceases; or 
   
  (C) until the properties are sold or until the contract is terminated in an 
arms-length transaction. 
     
  (3) This subsection is solely for the purpose of determining when tax is due. 
 
  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 January 7, 1993. 
 TRD-9317314 
  Martin Cherry 
 Chief, General Law Section 
 Comptroller of Public Accounts 
    Earliest possible date of adoption: February 15, 1993 
 For further information, please call: (512) 463-4028 
         
    Texas Department of Insurance Exempt Filing  
  Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L 
 
  (Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the 
Texas Register publishes notice of proposed actions by the Texas Board of 
Insurance. Notice of action proposed under Article 5.96 must be published in the 
Texas Register not later than the 30th day before the board adopts the proposal. 
Notice of action proposed under Article 5.97 must be published in the Texas 
Register not later than the 10th day before the Board of Insurance adopts the 
proposal. The Administrative Procedure and Texas Register Act, Article 6252-13a, 
Texas Civil Statutes, does not apply to board action under Articles 5.96 and 
5.97. 
 The complete text of the proposal summarized here may be examined in the 
offices of the Texas Department of Insurance, 333 Guadalupe Street, Austin, 
Texas 78714-9104.) 
   
  The State Board of Insurance, at a Board meeting scheduled for February 10, 
1993, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe 
Street in Austin, will consider a forms revision filing by the Texas Department 
of Insurance for the Reinsurance Intermediary Bond and the Corporate Agents 
Bond. 
 The proposed revision to the Reinsurance Intermediary Bond includes as surety a 
surplus lines insurer eligible to do business in this state as authorized by 28 
TAC sec.19.403. The revision also amends the signature block to reflect, "This 
form must be countersigned by a Licensed Agent." 
 The proposed revision to the Corporate Agents Bond adds 28 TAC sec.11.404, 
(b)(2) to include HMO Corporate Agents. 
 Copies of the full text of the proposed form for the Texas Department of 
Insurance are available for review in the Office of the Chief Clerk of the Texas 
Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104, contact 
Angie Arizpe at (512) 322-4147 (refer to Reference Number A-0193-71). 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedures and Texas 
Register 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 January 6, 1993. 
 TRD-9317268 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6328 
         
   
  The State Board of Insurance, at a Board meeting scheduled for February 10, 
1993, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe 
Street in Austin, will consider a filing by the Texas Department of Public 
Safety for a Special Rangers Bond Form. 
 The Special Ranger Bond is conditioned on the person performing the duties of 
the office of Special Ranger in accordance with the provisions of the Government 
Code, Texas Civil Statutes, sec.411.023. The penalty amount of the bond is 
$2,500. 
 Copies of the full text of the proposed Special Rangers Bond form are available 
for review in the Office of the Chief Clerk of the Texas Department of 
Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For further 
information or to request copies of the text, please contact Angie Arizpe at 
(512) 322-4147 (refer to Reference Number A-0193-72). 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register 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 January 6, 1993. 
 TRD-9317267 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6328 
         
   
  The State Board of Insurance, at a Board meeting scheduled for 9 a.m., 
February 17, 1993, in Room 100 of the Texas Department of Insurance Building, 
333 Guadalupe Street in Austin, will consider a proposal filed on behalf of the 
Texas Automobile Insurance Service Office (TAISO). TAISO's petition proposes 
amendments to the Texas Automobile Liability Experience Rating Plan (the Plan). 
These amendments were proposed in a petition (Reference Number A-1192-69), filed 
by TAISO on November 24, 1992. 
 TAISO's petition proposes amendment of Definition 17 ("Adjusted Loss Ratio") in 
Section I ("Special Definitions") of the Plan, reportedly to correct an error 
that occurred when new definitions were added and some remaining ones were 
renumbered. The petition also proposes amendment of Section II ("Eligibility 
Requirements and Miscellaneous Rating Rules") of the Plan, to add to Rule 2 
("Experience Period"), two words which were reportedly omitted in error when the 
Plan was revised effective November 1, 1987. 
 A copy of the petition containing the full text of these proposed amendments to 
the Plan is available for review in the office of the Chief Clerk of the Texas 
Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104. For 
further information or to request copies of the petition, please contact Angie 
Arizpe at (512) 322-4147; (refer to Reference Number A-1192-69). 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure and Texas 
Register 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 January 8, 1993. 
 TRD-9317420 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6328