Proposed Sections 
 Before an agency may permanently adopt a new or amended section, or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before any action may be taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive sections, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members. 
 Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of bold text. [Brackets] indicate deletion of existing 
material within a section. 
 
   
  TITLE 1. ADMINISTRATION 
 Part IV. Office of the Secretary of State 
  Chapter 71. Office of the Secretary of State 
  
  Private Use of the <nl>State  <ol>[Great] Seal of Texas 
 
  1 TAC sec.sec.71.40-71.42, 71.45, 71.46, 71.48, 71.50 
 
  The Office of the Secretary of State proposes new sec.71.50 and amendments to 
sec.sec.71.40-71.42, 71.45, 71.46, and 71.48, concerning the private use of the 
state seal of Texas. The proposed new rule and amendments implement legislative 
changes enacted by the 73rd Legislative Session (1993). New sec.71. 50 
designates standard designs for the state seal, the reverse of the state seal, 
and the state arms. The amendments to sec. s71.40, 71.41, 71.45, 71.46, and 
71.48 replace the term "Great Seal" with "state seal." Section 71.40 is also 
amended to reflect the definition of the reverse side of the state seal 
delineated in the new legislation. Amendments to sec.71.42 and sec.71.46 replace 
the term "Great Seal" with "state seal" as well as eliminate references to the 
former Sesquicentennial Commission. 
 Guy Joyner, staff attorney, 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. Joyner also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be to make rules consistent with existing law and procedure. 
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 Guy Joyner, Staff Attorney, 
Statutory Documents Sections, P.O. Box 12887, Austin, Texas 78711-2887. 
 The new rule and amendments are proposed under the Government Code, sec.2001. 
004(1) and the Business and Commerce Code, sec.17.08, which provide the 
secretary of state with the authority to prescribe and adopt rules. The new rule 
implements subsection (d) of new Article 6139f of Texas Civil Statutes. The new 
rule and proposed amendments affect the Business and Commerce Code, sec.17.08. 
 
 
  sec.71.40. Definitions.  The following words and terms, when used <nl>in <ol> 
this undesignated head, shall have the following meanings, unless the context 
clearly indicates otherwise. Unless otherwise expressly provided, the past, 
present, or future tense includes the other; the masculine, feminine, or neuter 
gender each includes the other; and the singular and plural number each includes 
the other. 
   
   Abuse-Any departure from reasonable use: immoderate or improper use; use 
contrary to customary or accepted practices and protocols such as would be a 
misuse of the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of Texas. 
   
   Application-The act of making a formal request for licensed permission to use 
the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas. 
   
   Commercial purpose -A purpose that is intended to result in a profit or other 
tangible benefit but does not include an official use in a state function or the 
use of the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of Texas or a 
representation of the  <nl>state<ol> [Great] <nl>seal <ol> [Seal] of Texas for a 
political purpose by an elected official of this state. 
   
  <nl>   State<ol> [Great] <nl>seal<ol> [Seal] of Texas-A seal which contains a 
five-point star encircled by olive and live oak branches, and the words "the 
State of Texas," or depicts the reverse side of the <nl>state <ol> [Great] 
<nl>seal<ol> [Seal] of Texas. 
   
   License-Permission by the secretary of state to conduct the use, manufacture, 
distribution, mass production, replication, sale or incorporation into 
advertisement, draft, or design the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of 
Texas within the accepted criteria of this title. 
   
   Licensed product -A <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas 
product which has been approved by a license. 
   
   Licensee-The applicant who receives permission to use the <nl>state<ol> 
[Great] <nl>seal<ol> [Seal] of Texas. 
   
   Nonexact representation -A deceptively similar representation of the 
<nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas, including a state agency's 
seal which incorporates the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of Texas. 
   
   Nonofficial use -Any use of the  <nl>state<ol> [Great] <nl>seal <ol> [Seal] 
of Texas that is not an official use. 
   
   Official use-The use of the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of 
Texas by an officer or employee of this state in performing a state function. 
   
   Representation of the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas-
Includes a nonexact representation that the secretary of state determines is 
deceptively similar to the <nl>state<ol> [Great]  <nl>seal<ol> [Seal] of Texas. 
   
   Reverse side of the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas-
Comprised of a shield, consisting of a depiction of the Alamo, the [a] cannon 
<nl>of the Battle of Gonzales <ol>, and <nl>Vince's<ol> [a] bridge. The shield 
is encircled by <nl>live <ol> oak and olive branches, and the unfurled flags of 
<nl>the kingdom of <ol> France, <nl>the kingdom of<ol> Spain, <nl>the United 
Mexican States,<ol> [Mexico], the Republic of Texas, the Confederate States of 
America, and the United States of America. Above the shield is emblazoned the 
motto, "Remember the Alamo," and beneath it are the words, "Texas one and 
indivisible," with a <nl>white<ol> five-point <nl>ed<ol> star hanging over the 
<nl>shield, centered between the flags<ol> [all]. 
   
  <nl>   State arms-Comprised of a white star of five points, on an azure 
ground, encircled by olive and live oak branches. 
 
   
  sec.71.41. Application Process. 
 
  (a) Any person not a state public official, or under the express direction of 
a state agency and conducting official state business must, prior to any use of 
the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of Texas in any commercial 
reproduction, distribution, advertisement, manufacture, promotion, replication, 
sale, or any such activity reasonably construed to be embraced by this 
description: 
 
  (1) complete and file with the Office of the Secretary of State, on a form 
prescribed by that office, an application for a license for the private 
nonofficial use of the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of Texas; 
   
  (2) (No change.) 
     
  (b) A complete application must: 
 
  (1) (No change.) 
   
  (2) include a specific description of the intended usage involving the 
<nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas; 
   
  (3) be accompanied by a precise description and the specification of the 
actual product to bear the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas in 
the form of an architectural drawing, an engineer's draft to scale, sales 
brochure, or lucid photograph; and 
   
  (4)  (No change.) 
     
  (c)-(d) (No change.) 
   
  (e) Except as otherwise provided by law, no seal of any state agency, which 
incorporates the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas, may be used 
for a nonofficial use by any person including any official or employee of said 
state agency. Unless a license is first obtained pursuant to the procedures 
herein described, a person may not use a state agency's representation of the 
<nl>state<ol> [Great] Seal of Texas for a commercial purpose. 
 
     
  sec.71.42. Exemptions. 
 
  (a) State agencies and officials who use the <nl>state <ol> [Great] 
<nl>seal<ol> [Seal] of Texas for official uses or state functions have no 
application or fee requirement; however, in an effort to achieve uniformity and 
continuity, state agencies and officials are encouraged to submit their intended 
uses and renditions of the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas to 
the Secretary of State. 
 
  (1)  When a manufacturer or vendor solely produces for, or solely sells or 
distributes to a state agency a product bearing the <nl>state<ol> [Great]  
<nl>seal<ol> [Seal] of Texas for an official use or for a state function, no 
application or license is required. 
   
  (2)-(3) (No change.) 
   
  (4)  When a manufacturer or vendor produces for, or sells or distributes to a 
state agency a product bearing the <nl>state <ol> [Great] <nl>seal<ol> [Seal] of 
Texas that is also available to the general public, the manufacturer or vendor 
must file an application in accordance with sec.71.41(a) of this title (relating 
to Application Process), obtain a license in accordance with sec.71. 45(a) of 
this title (relating to Licensing), and pay, except as otherwise provided by 
these administrative regulations, all fees required by sec.71.44 of this title 
(relating to Fees; Payment of Money). 
   
  (5) (No change.) 
     
  (b) Elected officials who use the <nl>state <ol> [Great] <nl>seal<ol> [Seal] 
of Texas for political purposes have no application or fee requirement. 
 
  (1) When a manufacturer or vendor solely produces for, or solely sells or 
distributes to an elected official a product bearing the <nl>state<ol> [Great] 
<nl>seal<ol> [Seal] of Texas for a political purpose, no application or license 
is required. 
   
  (2)-(3) (No change.) 
   
  (4)  When a manufacturer or vendor produces for, sells, or distributes to an 
elected official a product bearing the  <nl>state<ol> [Great] <nl>seal <ol> 
[Seal] of Texas that is also available to the general public, the manufacturer 
or vendor must file an application in accordance with sec.71.41(a) of this title 
(relating to Application Process), obtain a license in accordance with 
sec.71.45(a) of this title (relating to Licensing), and pay, except as otherwise 
provided by these administrative regulations, all fees required by sec.71.44 of 
this title (relating to Fees; Payment of Money). 
   
  (5) (No change.) 
     
  (c) The manufacturer of a product bearing the <nl>state <ol> [Great] 
<nl>seal<ol> [Seal] of Texas bears the responsibility for filing the necessary 
application, obtaining the appropriate license, and the payment of all fees 
required by the statute and these administrative regulations. 
 
  (1) Vendors or resellers are exempt from the application, licensing, and fee 
requirements of the statute and these administrative regulations where the 
manufacturer of the product transferred has obtained the required <nl>state<ol> 
[Great] <nl>seal<ol> [Seal] of Texas license, provided the vendor or reseller, 
prior to resale, obtains from the manufacturer, on a form prescribed by the 
secretary of state's office, a certification of the manufacturer's license. 
   
  (2)-(4) (No change.) 
     
  [(d) Gross receipts received from the sale of licensed products to the general 
public are exempt from the royalty fee required by the statute and sec.71.44 of 
this title (relating to Fees; Payment of Money) where a royalty is paid to the 
Texas Sesquicentennial Commission (Texas Civil Statutes, Article 6145-11) for 
the sale of the licensed products.] 
 
     
  sec.71.45. Licensing. 
 
  (a) Grant of license. Upon approval of an application, and payment of the 
licensing fee as set forth in sec.71.44 of this title (relating to Fees; Payment 
of Money), any individual or corporation may be granted a license which will 
certify to all, that such person has complied with the requirements of 
application and filing. Licensees may engage in the reproduction of the  
<nl>state<ol> [Great] <nl>seal <ol> [Seal] of Texas for private and public 
nonofficial uses. It is accepted that the licensee will use the <nl>state<ol> 
[Great] <nl>seal<ol> [Seal] of Texas in an exemplary manner. Any and all 
transactions which involve the vendor, manufacturer, or distributor of the 
<nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas and the public are expected 
to be handled in an honest and conscientious fashion. A licensee must display 
the license in a conspicuous manner in the licensee's office or place of 
business. 
   
  (b) Renewal of license. A renewal of a license must take place annually on the 
renewal application and license form provided by the secretary of state's 
office. A renewal may not be granted if licensee: 
 
  (1) has used the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas in a 
manner that is detrimental to the image of the state and not in its best 
interests; or 
   
  (2) (No change.) 
     
  (c) Suspension of license. The licensee's use of the <nl>state<ol> [Great]  
<nl>seal<ol> [Seal] of Texas must not be detrimental to the image of the state 
and its best interests, by virtue of its draft, design, presentation, 
association, distribution, manufacture, or sale. Any such use, late payment, or 
nonpayment of a required fee, violation of either the statute or these 
administrative regulations will result in the suspension of the license. 
 
  (1)-(3) (No change.) 
     
  (d) Revocation of an existing license. 
 
  (1) A license may be revoked for, but not limited to, the following reasons: 
 
  (A) (No change.) 
   
  (B) abusive use of the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas; 
   
  (C) criminal use of the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas; 
   
  (D)-(G) (No change.) 
     
  (2) (No change.) 
 
       
  sec.71.46. Quarterly Report. 
 
  (a) Licensees must file with the Office of the Secretary of State a statement 
(i.e. quarterly report), on a form prescribed by that office, containing the 
following: 
 
  (1) (No change.) 
   
  [(2) a statement of the total quantity of licensed products sold upon which a 
royalty was paid to the Texas Sesquicentennial Commission;] 
   
  <nl>(2)<ol>[(3)] the total amount of gross receipts received from the sale of 
licensed products during the quarter; 
   
  [(4) the total amount of gross receipts received from the sale of licensed 
products during the quarter upon which a royalty was paid to the Texas 
Sesquicentennial Commission;] 
   
  <nl>(3)<ol>[(5)] where the licensee has obtained an exemption under 
sec.71.42(a)(5) of this title (relating to Exemptions), the total amount of 
gross receipts received from the sale of licensed products during the quarter to 
state agencies. 
   
  <nl>(4)<ol>[(6)] where the licensee has obtained an exemption under 
sec.71.42(b)(5) of this title (relating to Exemptions), the total amount of 
gross receipts received from the sale of licensed products during the quarter to 
elected officials; 
   
  <nl>(5)<ol>[(7)] the total amount of gross receipts derived by the licensee 
from other uses of the <nl>state<ol> [Great]  <nl>seal<ol> [Seal] of Texas 
during the quarter; 
   
  <nl>(6)<ol>[(8)] the amount of any royalty fee due for the quarter. 
     
  (b)-(d) (No change.) 
 
     
  sec.71.48. Enforcement.  In addition to the suspension or revocation of a  
<nl>state<ol> [Great] <nl>seal <ol> [Seal] of Texas License, the Office of the 
Secretary of State may: 
 
  (1) request that the Texas Attorney General bring a civil action to enjoin 
either a violation of the statute or these administrative regulations relating 
to the <nl>state<ol> [Great] <nl>seal<ol> [Seal] of Texas, or to collect 
delinquent fees; 
   
  (2)  (No change.) 
 
     
  sec.71.50. Standard Designs. <ol> The following illustrations depict the 
standard designs for the state seal, the reverse of the state seal, and the 
state arms. 
 
  
   
  
  [graphic] 
       
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on October 26, 1993. 
 TRD-9330960 
  Audrey Selden 
 Assistant Secretary of State 
 Office of the Secretary of State 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-5558 
         
           Part V. General Services Commission 
  Chapter 111. Executive Administration Division 
  
  Administration 
 
  1 TAC sec.111.2 
 
  The General Services Commission proposes new sec.111.2, concerning 
definitions. The new section states definitions for words and terms that pertain 
generally to the activities of the commission. The section is a restatement in 
simpler and clearer language of definitions that were previously contained in  
s113.2 pertaining to the commission's central purchasing division. 
 Judith M. Porras, general counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. 
 Ms. Porras 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 clearer rules. 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 Judith M. Porras, General Counsel, 
General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments 
must be received no later than 30 days from the date of publication of the 
proposal in the Texas Register. 
 The new section is proposed under Texas Civil Statutes, Article 601b, which 
provide the General Services Commission with the authority to promulgate rules 
necessary to accomplish the purpose of the Article. 
 
 
  sec.111.2. Definitions.  The following words and terms, when used in this 
title, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
   Act-The State Purchasing and General Services Act, Texas Civil Statutes, 
Article 601b. 
   
   Best interests of the state-Most advantageous to the state in light of all 
relevant circumstances. 
   
   Commission-The General Services Commission. 
   
   Competitive bidding -The process of inviting and obtaining bids from 
competing sources in response to advertised competitive specifications, by which 
an award is made to the lowest and best bidder meeting the specifications. The 
process contemplates giving potential bidders a reasonable opportunity to bid, 
and requires that all bidders be placed on the same plane of equality. Each 
bidder must bid on the same advertised specifications, terms, and conditions in 
all the items and parts of a contract. The purpose of competitive bidding is to 
stimulate competition, prevent favoritism, and secure the best goods and 
services at the lowest practicable price, for the benefit of the state. 
Competitive bidding cannot occur where contract specifications, terms, or 
conditions prevent or unduly restrict competition, favor a particular vendor, or 
increase the cost of goods or services without providing a corresponding benefit 
to the state. 
   
   Electronic data interchange (EDI)-Exchange of information electronically 
between business parties in a structured format, including but not limited to 
computer direct or indirect electronic information exchange, exchange of 
computer tapes and disks, and telefacsimile transmission. 
   
   Local government -A county, municipality, school district, special district, 
junior college district, or other legally constituted political subdivision of 
the state. 
   
   Minor technicality -A requirement in a bid invitation which, if waived or 
modified by the commission when evaluating bids, would not give a bidder an 
unfair advantage over other bidders or result in a material change in the 
contract. 
   
   Nonresident bidder -A bidder whose principal place of business is not in 
Texas, but does not include a bidder whose majority owner or parent company has 
its principal place of business in Texas. 
   
   Payment bond-A deposit, pledge, or contract of guaranty supplied by a 
successful bidder to protect the state against loss due to the bidder's failure 
to pay material suppliers and subcontractors. Acceptable forms of payment bonds 
are: cashier's check, certified check, or irrevocable letter of credit issued by 
a financial institution subject to the laws of Texas; a surety or blanket bond 
from a company chartered or authorized to do business in Texas; United States 
treasury bond; or certificate of deposit. 
   
   Performance bond -A deposit, pledge, or contract of guaranty supplied by a 
successful bidder to protect the state against loss due to the bidder's 
inability to complete the contract as agreed. Acceptable forms of performance 
bonds are those listed in the definition of payment bond. 
   
   Principal place of business in Texas-A permanent business office located in 
Texas from which a bid is submitted and from which business activities are 
conducted other than submitting bids to governmental agencies, where at least 
one employee works for the business entity submitting bids. 
   
   Texas resident bidder-A bidder with its principal place of business in Texas, 
including a bidder whose majority owner or parent company has its principal 
place of business in Texas. 
 
  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 October 26, 1993. 
 TRD-9331030 
  Judith Porras 
 General Counsel 
 General Services Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-3583 
         
             Chapter 113. Central Purchaseing Division 
  
  Purchasing 
 
  1 TAC sec.113.2, sec.113.6 
 
  The General Services Commission proposes amendments to  s113.2, concerning 
definitions and sec.113.6 concerning bid evaluation and award. The amendment to 
sec.113.2 adds definitions for terms relating to recycling in order to assist 
state agencies in achieving statutorily mandated goals for the procurement of 
products with recycled material content, remanufactured products, and 
environmentally sensitive products. The amendment to sec.113.6 permits the 
commission to resolve tie bids by drawing lots; this amendment is necessary to 
restore a substantially similar provision that was inadvertently repealed in the 
course of adopting simplified purchasing rules. 
 Pat Martin, director, purchasing division, has determined that for the first 
five-year period the sections are in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
sections. 
 Ms. Martin 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 clearer guidelines for purchases by state agencies of 
products containing recycled materials and environmentally sensitive products, 
and clearer guidelines for resolving tie bids. 
 Comments on the proposal may be submitted to Judith M. Porras, General Counsel, 
General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047. 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 Texas Civil Statutes, Article 601b, sec.3. 01 
and sec.3.33, which provide the General Services Commission with the authority 
to promulgate rules necessary to accomplish the purpose of Article 3. 
 
 
  sec.113.2. Definitions.  The following words and terms, when used in this 
title, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
  <nl>   Consumable procurement budget-That portion of an agency's budget as 
identified by the comptroller's expenditure codes attributable to consumable 
supplies, materials and equipment. 
   
  <nl>   Environmentally sensitive products-Products that protect or enhance the 
environment, or that damage the environment less than traditionally available 
products. 
   
  <nl>   Pre-consumer materials -Materials or by-products that have not reached 
a business entity or consumer for an intended end use, including industrial 
scrap material, and overstock or obsolete inventories from distributors, 
wholesalers, and other companies. The term does not include materials and by-
products generated from, and commonly reused within, an original manufacturing 
process or separate operation within the same or a parent company. 
   
  <nl>   Post-consumer materials -Finished products, packages or materials 
generated by a business entity or consumer that have served their intended end 
uses, and that have been recovered or otherwise diverted from the waste stream 
for the purpose of recycling. 
   
  <nl>   Recycled material content-The portion of a product made with recycled 
materials consisting of pre-consumer materials (waste), post-consumer materials 
(waste), or both. 
   
  <nl>   Recycled materials -Materials, goods or products that contain 
recyclable material, industrial waste, or hazardous waste that may be used in 
place of raw or virgin materials in manufacturing a new product. 
   
  <nl>   Recycled product -A product that meets the requirements for recycled 
material content as prescribed by the rules established by the Texas Natural 
Resource Conservation Commission in consultation with the General Services 
Commission. 
   
  <nl>   Remanufactured product -A product that has been repaired, rebuilt, or 
otherwise restored to meet or exceed the original equipment manufacturer's (OEM) 
performance specifications; provided, however, the warranty period for a 
remanufactured product may differ from the OEM warranty period. 
   
  <nl>   Total expenditures on products with recycled material content, 
remanufactured products, and environmentally sensitive products-The total direct 
acquisition costs (vendor selling price plus delivery costs) of all such 
products. 
 
   
  sec.113.6. Bid Evaluation and Award.  
 
  (a) (No change.) 
   
  (b) Award. 
 
  (1)-(2) (No change.) 
   
  (3) In case of tie bids which cannot be resolved by application of one or more 
preferences described in sec.113.8 of this title (relating to Preferences), an 
award shall be made by drawing lots. 
 
  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 October 26, 1993. 
 TRD-9331025 
  Judith Porras 
 General Counsel 
 General Services Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-3583 
         
             
  1 TAC sec.113.19 
 
  (Editor's Note: The General Services Commission proposes for permanent 
adoption the new section it adopts on an emergency basis in this issue. The text 
of the new section is in the Emergency Rules section of this issue.) 
   
  The General Services Commission proposes an amendment to  s113.19, concerning 
the catalogue purchase procedure for automated information systems. The 
amendment provides a protest procedure for federally funded catalogue purchases. 
 Pat Martin, director for purchasing, Purchasing Division, has determined that 
for the first five-year period the section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section. 
 Ms. Martin 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 ensuring the ability of state agencies to make purchases in the 
most efficient manner permitted by state law without jeopardizing the continued 
availability of federal funds. There will be no effect on small businesses. 
There is no anticipated economic cost to persons who are required to comply with 
the rule, except that persons who choose to file protests under the procedure 
will be required to pay the costs of the process.. 
 Comments on the proposal may be submitted to Judith Porras, General Counsel, 
General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments 
must be received no later than 30 days from the date of publication of the 
proposal in the Texas Register. 
 The amendment is proposed under Texas Civil Statutes, Article 601b, sec.3. 081, 
which provide the General Services Commission with the authority to promulgate 
rules necessary to accomplish the purpose of the section. 
 
  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 October 26, 1993 
 TRD-9331029 
  Judith M. Porras 
 General Counsel 
 General Services Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-3583 
         
           Chapter 117. Centralized Services Division 
  
  Central Store 
 
  1 TAC sec.117.51 
 
  The General Services Commission proposes an amendment to  s117.51, concerning 
central supply store operations. The amendment streamlines and consolidates 
existing rules and outlines the scope of central supply store operations for 
governmental entities. 
 Michael N. Powers, director for inter-agency services division, has determined 
that for the first five-year period the section is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the section. 
 Mr. Powers 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 is in effect state agencies and other governmental entities will benefit 
from streamlined regulations. 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 may be submitted to Judith Porras, General Counsel, General Services 
Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments must be received 
no later than 30 days from the date of publication of the proposal in the Texas 
Register. 
 The amendment is proposed under Texas Civil Statutes, Article 601b, Article 11, 
which provide the General Services Commission with the authority to promulgate 
rules to accomplish the purpose of the Article. 
 
 
  sec.117.51. Operation Authority [General]. 
 
  <nl>(a) The Central Store is operated pursuant to Texas Civil Statutes, 
Article 601b, sec.11.04, for state agencies to<ol> [where they can] secure 
[their] small, desk top supply items, without delay and with a minimum of 
paperwork and administrative cost. 
   
  <nl>(b) Purchases from the central store may only be made by authorized 
personnel from state agencies who possess a credit card issued by the commission 
for this purpose. 
   
  <nl>(c) The commission is not responsible for loss of any merchandise after 
charge slips are signed by state agency employees making purchases. 
   
  <nl>(d) After the close of each month, the commission shall submit a purchase 
voucher, along with a copy of signed charge slips to agencies purchasing items 
at the central store. 
   
  <nl>(e) Agencies shall promptly process any purchase voucher prepared by the 
commission. The commission may refuse to permit additional sales transactions 
for an agency so long as that agency holds unprocessed a previous voucher. 
 
  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 October 26, 1993. 
 TRD-9331031 
  Judith Porras 
 General Counsel 
 General Services Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-3583 
         
             
  Central Store 
 
  1 TAC sec.sec.117.52-117.57 
 
  (Editor's note: The text of the following sections proposed for repeal will 
not be published. The sections may be examined in the offices of the General 
Services Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.) 
   
  The General Services Commission proposes the repeal of  ssec.117.52-117.57, 
concerning central supply store operations. The repeal will consolidate existing 
rules. The significant content of these repealed sections is proposed to be 
consolidated into amended sec.117.51. 
 Michael N. Powers, director for inter-agency services division, has determined 
that for the first five-year period the repeals are in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the repeals. 
 Mr. Powers also has determined that for each year of the first five years the 
repeals are in effect the public benefit anticipated as a result of enforcing 
the repeals will benefit from simplified regulations. 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 may be submitted to Judith Porras, General Counsel, General Services 
Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments must be received 
no later than 30 days from the date of publication of the proposal in the Texas 
Register. 
 The repeals are proposed under Texas Civil Statutes, Article 601b, Article 11, 
which provide the General Services Commission with the authority to promulgate 
rules to accomplish the purpose of that Article. 
 
 
  sec.117.52. Purchases. 
 
   
  sec.117.53. Credit Card. 
 
   
  sec.117.54. Responsibility for Loss of Merchandise. 
 
   
  sec.117.55. Supplies. 
 
   
  sec.117.56. Purchase Vouchers. 
 
   
  sec.117.57. Prompt Processing. 
 
  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 October 26, 1993. 
 TRD-9331032 
  Judith Porras 
 General Counsel 
 General Services Commission 
    Earliest possible date of adoption: 
 For further information, please call: (512) 463-3583 
         
                 
  TITLE 4. AGRICULTURE 
 Part I. Texas Department of Agriculture 
  Chapter 26. Texas Agricultural Diversification Program: Linked Deposits 
  
  4 TAC sec.sec.26.1-26.3, 26.5, 26.6, 26.8, 26.10, 26.12 
 
  The Texas Department of Agriculture (the department) proposes amendments to 
sec.sec.26.1-26.3, 26.5, 26.6, 26.8, 26.10, and 26.12, concerning the 
administration, implementation, practice, and procedure for participation in the 
Texas Department of Agriculture Linked Deposit Program. The amendments are 
proposed in order to provide new definitions, clarify the program's purpose, 
make application procedures consistent with new definitions, allow for use of 
loan proceeds for the purchase of water conservation equipment, establish new 
program limitations, correct information on submitting communications regarding 
the program and comply with House Bill 1622 passed by the Texas Legislature, 
73rd session. 
 Robert Kennedy, deputy assistant commissioner for finance and agribusiness 
development, has determined that for the first five-year period the rules are in 
effect there will be no fiscal implications for state or local government as a 
result of enforcing or administering the rules. 
 Mr. Kennedy also has determined that for each year of the first five years the 
rules are in effect the public benefit anticipated as a result of enforcing the 
rules will be the potential to generate up to $5 million in new agricultural 
loans. There will be no effect on small business. There will be no anticipated 
economic cost to persons who are required to comply with the rules as proposed. 
 Comments on the proposal may be submitted to Robert Kennedy, Deputy Assistant 
Commissioner for Finance and Agribusiness Development, Texas Department of 
Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no 
later than 30 days from the date of publication of this proposal in the Texas 
Register. 
 The amendments are proposed under the Texas Agriculture Code, sec.44.007, which 
provides the Texas Department of Agriculture with the authority to adopt rules 
and procedures for administration of its linked deposit program. The sections of 
the Code which will be affected by these rules include Chapter 44 of the Code. 
 
 
  sec.26.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
   Current market rate-The rate of interest on a United States treasury bill or 
note, <nl>the <ol> [whose] maturity date <nl>of which<ol> most closely matches 
the maturity date of the loan<nl>, or the end of the next biennium of the state, 
whichever is sooner, <ol> as determined by reference to the United States 
treasury bill or note section of the Wall Street Journal published on the day 
the loan is priced. 
   
   Customarily grown -Crops, including grapefruit, produced in this state that 
utilize conventional management systems, and have cash receipts equal to or 
exceeding $5 million as listed in <nl>the 1991 Texas Agricultural Cash Receipts 
and Price Statistics,<ol> [1986-1988 Texas Agricultural Statistics,] compiled by 
the Texas Agricultural Statistics Service as published in <nl>November 1992<ol> 
[April 1990] for the period ending <nl>1991<ol> [1988], except for experimental 
varieties of these crops. 
   
  <nl>   Eligible borrower -A person who is in the business or entering the 
business of: 
 
  <nl>(A) processing and marketing agricultural crops in this state; 
   
  <nl>(B) producing alternative agricultural crops in this state; 
   
  <nl>(C) producing agricultural crops in this state, the production of which 
has declined markedly because of natural disasters; or 
   
  <nl>(D) producing agricultural crops in this state using water conservation 
equipment for agricultural production purposes. 
     
   Lender-A financial institution [(which is an approved state depository)] that 
makes commercial loans,  <nl>agrees to participate in the linked deposit 
program, and is certified as a state depository by the treasury. 
   
   Loan-The note or other evidence of indebtedness entered into between the 
<nl>eligible borrower <ol> [applicant] and the lender under the program. 
   
  <nl>   Linked deposit -A time deposit governed by a written deposit agreement 
between the state and the lender that provides that: 
 
  <nl>(A) the lender pay interest on the deposit at a rate that is not less than 
the greater of: 
 
  <nl>(i)<nl> the current market rate minus 2.09%; or 
   
  <nl>(ii)<nl> 1.5%; 
     
  <nl>(B) the state not withdraw any part of the deposit before the expiration 
of a period set by a written advance notice of the intention to withdraw; and 
   
  <nl>(C) the eligible lending institution agree to lend the value of the 
deposit to an eligible borrower at a maximum rate that is the current market 
rate plus 4.0%. 
     
   Program-The Linked Deposit Program authorized by the Act, <nl>sec.44.007, 
<ol> [sec.44]. 
 
   
  sec.26.2. Introduction.  Pursuant to the authority granted by the Act, the 
department prescribes the following rules regarding the administration, 
implementation, practice, and procedure of the <nl>program<ol> [Linked Deposit 
Program]. 
 
   
  sec.26.3. Purpose.  The purpose of the program is to encourage private 
commercial loans for the enhanced production, processing, and marketing of 
certain agricultural crops <nl>and for the purchase of water conservation 
equipment for agricultural production purposes<ol>. These sections are adopted 
to provide standards of eligibility and procedures for obtaining financial 
assistance under the Act. 
 
   
  sec.26.5. Application Procedures for Applicant. 
 
  (a) An applicant must comply with the following procedures to obtain approval 
of the application for participation in the program: 
 
  (1) (No change.) 
   
  (2) an applicant shall submit a complete and accurate application and any 
required credit documentation to the lender; <nl>and 
   
  (3) (No change.) 
     
  (b) The <nl>eligible<ol> borrower shall notify the department in Austin in 
writing upon receipt of the loan proceeds indicating the amount received, date 
received, and the total amount of loan drawn to date. 
 
     
  sec.26.6. Application Procedures for the Lender. A lender must comply with the 
following procedures to obtain approval of an application for participation in 
the program. 
 
  (1)-(4) (No change.) 
   
  (5) A loan, while under the program, shall be set at a rate of interest 
established according to the prescribed linked deposit formula under the Act. 
The linked deposit rate will be recalculated at the end of the fiscal biennium. 
The <nl>eligible <ol> borrower's loan rate shall not exceed the current market 
rate plus 4.0%. 
   
  (6) (No change.) 
   
  (7) A lender shall estimate the proposed rate of interest to be charged the 
<nl>eligible borrower <ol> [applicant] in the [linked deposit] application filed 
with the department. The lender must certify via telephone communication with 
the treasury at the time the loan is priced, the actual rate of interest before 
issuance of the linked deposit. A copy of the certification of the 
<nl>eligible<ol> borrower's loan rate shall be sent to the department, as part 
of the compliance report. In no event shall the actual rate of interest exceed 
the maximum rate of interest allowable under the Act. 
   
  (8) In no instance will the linked deposit be wired to the lender until the 
loan proceeds have been paid to the  <nl>eligible<ol> borrower. In most cases 
the entire approved linked deposit amount will be placed as a linked deposit 
with the applicable lender, except for linked deposits greater than $100,000 
which are subject to incremental funding commensurate with principal draw downs. 
   
  (9)-(11) (No change.) 
 
     
  sec.26.8. Acceptance and Rejection Procedures. 
 
  (a)-(c) (No change.) 
   
  (d) The treasury shall determine the terms and conditions of the linked 
deposit once the maturity date is established (it cannot be set beyond the end 
of the biennium in which the linked deposit is placed), the applicable interest 
rate for the linked deposit can be determined by referring to the United States 
treasury bill or note section of the current issue of the Wall Street Journal 
corresponding with the day the loan is priced. The maturity date is matched to 
the closest treasury bill maturity. If longer than a year, it is matched to the 
treasury note with the maturity closest to the linked deposit maturity. In the 
case of <nl>a <ol> multiple maturity listing, the maturity with the lowest yield 
to arrive at the <nl>linked<ol> [link] deposit rate <nl>should be used. 
   
  (e)-(g) (No change.) 
   
  (h)  If a lender ceases to be a state depository, the treasury shall withdraw 
the linked deposits. If the <nl>lender <ol> [lending institution], which has a 
linked deposit, is purchased by another lending institution, the  <nl>linked<ol> 
[time] deposit will be reissued to the purchasing institution. Should the linked 
deposit loan not be obtained by the purchasing institution, then the 
<nl>linked<ol> [time] deposit will be returned to the state treasury. The 
department and the treasury will allow the borrower 90 days to place the  
<nl>loan<ol> [application] with another <nl>lender<ol> [lending institution]. 
   
  (i) A late payment on a loan by <nl>an eligible borrower<ol> [a participant] 
does not affect the validity of the linked deposit through the period of the 
fiscal biennium. Should <nl>an eligible borrower<ol> [a participant] default on 
a loan and the <nl>lender<ol> [lending institution] <nl>proceed<ol> [proceeds] 
with collection by foreclosure, the linked deposit must be returned to the 
treasury. 
 
     
  sec.26.10. Program Limitations. <ol> In addition to the limitations already 
set forth in these rules, the following limitations apply: 
 
  (1)  (No change.) 
   
  (2) The maximum amount of a loan to produce alternative crops is 
<nl>$250,000<ol> [$100,000]. 
   
  <nl>(3) The maximum amount of a loan to produce crops which have declined 
markedly because of a natural disaster is $250,000. 
   
  <nl>(4) The maximum amount of a loan to purchase water conservation equipment 
for agricultural production purposes is $250,000. 
   
  <nl>(5)<ol>[(3)] The maximum amount of a loan to process or market 
agricultural crops is <nl>$500,000<ol> [$250,000]. 
   
  <nl>(6)<ol>[(4)] All linked deposits placed under this program shall expire 
upon expiration of the biennium; however, subject to legislative authorization 
and approval by the department and the treasury, linked deposits that expired as 
a result of the expiration of the biennium may be renewed. 
   
  <nl>(7)<ol>[(5)] The state shall not be liable for any failure to comply with 
the terms and conditions of the loan, or any failure to make any payments or any 
other losses or expenses that occur directly or indirectly from the program. 
   
  <nl>(8)<ol>[(6)] An applicant may have more than one application and linked 
deposit loan with the program <nl>provided that<ol> [providing] the total 
applications and total linked deposits approved do not exceed the limitations of 
the program maximums as defined in paragraphs (2)<nl>-(5)<ol> [and (3)] of this 
section, and that any previous outstanding linked deposit loans with a lender be 
of a satisfactory status. The total of all linked deposit loans to an applicant 
cannot exceed a maximum of <nl>$500, 000<ol> [$250,000]. 
   
  <nl>(9)<ol>[(7)] A person shall not receive approval of an application if a 
previous loan under the program is in default. 
   
  <nl>(10)<ol>[(8)] An applicant who proposes operations to produce crops that 
are customarily grown in this state is not eligible for participation in the 
production financing for alternative crops portion of the program. 
   
  <nl>(11)<ol>[(9)] The following customarily grown crops are not eligible for 
participation in the production financing for alternative crops portion of the 
program: bell peppers, broccoli, cabbage, cantaloupe, carrots, cattle, 
<nl>celery <ol>, corn, cotton, cottonseed, cucumbers, eggs, grapefruit, certain 
greenhouse or nursery products, hay, hogs, honeydew melons, lambs, cow's milk, 
mohair, oats, spring and summer onions, [oranges,] peanuts, pecans, potatoes, 
poultry, quarter horses, rice, sheep, soybeans, sorghum grain, spinach, 
sugarbeets, sugarcane, sweet potatoes, turkeys, turnips, watermelons, wheat, 
<nl>and <ol> wool. 
   
  <nl>(12)<ol>[(10)] The following alternative crops that are not customarily 
grown in this state are eligible for participation in the production financing 
portion of the program: aloe vera, barley, beets other than sugar, blueberries, 
buffalo, canola, cashmere goats, catfish, cauliflower, [celery,] crambe, 
crawfish, cut flowers, dairy goats, eggplant, emu, experimental varieties of 
customarily grown crops, exotic game species for venison, table and wine grapes, 
greens, herbs, honey, thoroughbred horses, jalapenos, jojoba, kenaf, llamas, 
lean and natural beef, lettuce, longhorn cattle, mesquite, mushrooms, native 
plants, oriental vegetables, peaches,  <nl>oranges<ol>, ostrich, pinto beans, 
pistachios, pumpkins, quail, rabbits, redfish, rhea, rye, shrimp, snap beans, 
squash, strawberries, sunflowers, sweet corn, tilapia, tomatoes, turnips, 
Christmas trees, wildflowers, and <nl>other<ol> crops not currently produced in 
the state. The department may, on a case by case basis, approve for program 
participation crops which are not listed in this paragraph. 
   
  <nl>(13) An agricultural crop produced in this state, the production of which 
has declined markedly because of a natural disaster, and which shall be eligible 
for participation in the production financing portion of the program, is any 
crop produced in the state which has been declared in a state of disaster by the 
United States Department of Agriculture or the President of the United States, 
with the term of eligibility for participation being dependent upon the maturity 
or growing cycle of the type of crop being declared eligible for disaster 
assistance. 
   
  <nl>(14) The following types of equipment considered as water conservation 
equipment for agricultural production purposes are eligible for financing in the 
production financing portion of the program: underground pipe; in-line valves; 
pipe increasers/reducers; gate valves; fittings and bushings; flow meters and 
accessories; circular watering systems complete; drip irrigation systems 
complete with installation; and any other equipment which can be identified and 
verified as water conservation equipment for use within the state. 
 
     
  sec.26.12. Communications with the Department. All communications about the 
program should be directed to <nl>the Deputy Assistant Commissioner for Finance 
and Agribusiness Development <ol> [Program Director, Agricultural 
Diversification Program], Texas Department of Agriculture, P.O. Box 12847, 
Austin, Texas 78711, (512) <nl>475-1614 <ol> [463-7624]. 
 
  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 October 25, 1993. 
 TRD-9330945 
  Dolores Alvarado Hibbs 
 Chief Administrative Law Judge 
 Texas Department of Agriculture 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 463-7583 
         
               
  TITLE 16. ECONOMIC REGULATION 
 Part I. Railroad Commission of Texas 
  Chapter 5. Transportation Division 
  
  Subchapter H. Tariffs and Schedules 
 
  16 TAC sec.5.137 
 
  The Railroad Commission of Texas proposes an amendment to sec.5.137, 
concerning circumstances where the weighing provisions of sec.5.136 are 
unnecessary. The amendment is proposed pursuant to a petition from Texas Motor 
Transportation Association, Inc. The amendment will allow specialized motor 
carriers to assess freight charges based on the shipper's representation of 
weight and count when transporting new iron and steel angles, bars, beams, 
channels, flats, strips, plate, sheets, and/or new and unused pipe. 
 Jackye S. Greenlee, assistant director-Central Operations, 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. 
 John S. Teer, hearings examiner, has determined that for each year of the first 
five years the amendment is in effect, the public benefit anticipated as a 
result of enforcing the section is to reduce shipping delays, traffic 
congestion, and costs incurred by carriers who otherwise would have to locate 
and utilize scales in major metropolitan areas. Small businesses will not be 
affected as a result of the proposed amendment. There is no anticipated economic 
cost to persons who are required to comply with the proposed amendment. 
 Comments may be submitted to John S. Teer, Hearings Examiner, Legal Division, 
Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments 
will be accepted for 30 days after publication in the Texas Register . 
 The amendment is proposed under the Texas Motor Carrier Act, Texas Civil 
Statutes, Article 911b, sec.4(a), which vest the commission with power and 
authority to prescribe all rules and regulations necessary for the government of 
motor carriers and for the safety of operations of motor carriers, and to 
supervise and regulate motor carriers in all matters affecting the relationship 
between such carriers and the shipping public. 
 The statute affected by this rule is Texas Civil Statutes, Article 911b. 
 
 
  sec.5.137. Weighing Unnecessary. 
 
  (a)-(h) (No change.) 
   
  <nl>(i) In lieu of weighing as required by sec.5.136 of this title (relating 
to Weights to Be Used in Assessing Freight Charges) on shipments of new iron and 
steel angles, bars, beams, channels, flats, strips, plate, sheets, and/or new 
and unused pipe via specialized motor carriers, weights may be determined by 
accepting shipper's representation of weight and count, but the weight and count 
so supplied shall be subject to check by the carrier or authorized 
representative of the Commission. 
 
  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 October 25, 1993. 
 TRD-9330959 
  Mary Ross McDonald 
 Assistant Director, Legal Division-Gas Utilities/LP Gas 
 Railroad Commission of Texas 
    Earliest possible date of adoption: December 4, 1993 
 For further information, please call: (512) 463-7094 
         
                   
  TITLE 25. HEALTH SERVICES 
 Part I. Texas Department of Health 
  Chapter 133. Hospital Licensing 
 
  
  (Editor's note: The following rules being proposed are being published in Part 
II of this issue of the Texas Register: sec.sec.133.1-133.7, 133.11-133.14, 
133.21-133.23, 133.29, 133.31, 133.32, 133.51 - 133.54, 133.71, 133.72, 133.101, 
133.102, 133.111-133.113, 133.121, 133.131.) 
         
     Chapter 134. Private Mental Hospitals and Mental Health Facilities 
Licensing 
 
  
  (Editor's note: The following rules being published are being published in 
Part II of this issue of the Texas Register: sec.sec.134.1-134.3, 134.11-134.14, 
134.51-134.54, 134.71-134.73, 134.91, 134.101.) 
         
     Chapter 229. Food and Drug 
  
  Minimum Standards for Licensure of Tattoo Studios 
 
  25 TAC sec.sec.229.401-229.412 
 
  The Texas Department of Health (department) proposes new  ssec.229.401-
229.412, concerning the licensure of tattoo studios. The sections cover general 
provisions, definitions, licensing fee and procedures, physical facilities, 
personnel responsibilities, client qualifications, sterilization, care of the 
tattoo, tattooing equipment, report of infection or allergic reactions, disposal 
of infectious waste and refusal/revocation/suspension of license. House Bill 
1217, 73rd Legislature, 1993, amends the Health and Safety Code by adding 
Chapter 146, which mandates the licensure of tattoo studios by January 1, 1994. 
 The proposed rules establish requirements for standards of sanitation, use of 
aseptic technique, sterilization of equipment, instruction in care of the 
tattoo, and recordkeeping. 
 Dennis E. Baker, director, Division of Food and Drugs, has determined that for 
the first five-year period the section will be in effect, there will be fiscal 
implications as a result of enforcing or administering the rule. The effect on 
State government will be an estimated additional cost of $44,285 each year of 
the five years, based on additional department staff needed for inspection and 
licensing of facilities. The licensing fees are projected to generate additional 
revenue of $45,500 per year, which will offset the additional costs of 
administering this program. There will be no effect on local government. 
 Mr. Baker also has determined that for each year of the first five years the 
proposed sections are in effect the public benefit anticipated as a result of 
the proposed sections will be the protection of public health by reducing the 
possibility of communicable diseases transmission in tattoo studios. The cost to 
small businesses is anticipated to be minimal. There will be no effect on local 
employment. There will be minimal economic cost to persons required to comply 
with the rules as proposed. 
 Comments on the proposal may be submitted to Dennis E. Baker, Acting Director, 
Division of Food and Drugs, Texas Department of Health, 1100 West 49th Street, 
Austin, Texas, 78756, (512) 458-7248. Comments will be accepted for 30 days 
following the date of publication of this proposed rule in the Texas Register. 
In addition, a public hearing on the proposed rule will be held at 9:00 a.m., 
Tuesday, November 9, 1993, in the Texas Department of Health Auditorium, 1100 
West 49th Street, Austin. 
 The sections are proposed under the Texas Health and Safety Code, sec.146. 
010(a) and sec.146.015(a), which provides the department with the authority to 
adopt necessary regulations pursuant to the enforcement of Chapter 146; and 
sec.12.001, which provides the Texas Board of Health with the authority to adopt 
rules for the performance of every duty imposed by law on the Texas Board of 
Health, The Texas Department of Health and the Commissioner of Health. 
 
 
  sec.229.401. General Provisions. 
 
  (a)  These sections provide for the licensing and regulation of tattoo 
studios. 
   
  (b) The "Tattoo Parlor Act," House Bill 1217, 73rd Legislature, Regular 
Session, 1993, Health and Safety Code, Chapter 146, requires the Texas Board of 
Health to adopt rules regulating tattoo studios. 
 
     
  sec.229.402. Definitions.  The following words and terms when used in these 
sections shall have the following meanings unless the context clearly indicates 
otherwise. 
   
   Act-The Tattoo Parlor Act, House Bill 1217, 73rd Legislature, Regular 
Session, 1993, Health and Safety Code, Chapter 146. 
   
   Aseptic Technique -A practice which prevents and hinders the transmission of 
disease producing micro-organisms from one person or place to another person or 
place. 
   
   Authorized agent -An employee of the department designated by the 
Commissioner to enforce the Act. 
   
   Clients-A person contracting for the application of a tattoo. 
   
   Commissioner-Commissioner of the Texas Department of Health. 
   
   Cosmetic-An article or substance intended to be rubbed, poured, sprinkled, or 
sprayed on or introduced into or otherwise applied to the human body for 
cleansing, beautifying, promoting attractiveness or altering appearances; or an 
article or substance for use as a component of such an article, except that the 
term does not include soap. 
   
   Department-The Texas Department of Health. 
   
   Operator-An individual designated by the permit holder to control operations 
of the tattoo studio or a facility where tattooing or permanent cosmetic is 
being conducted. 
   
   Sanitize-To treat a clean surface and destroy pathogenic microorganisms. 
   
   Single-service items -Articles intended for one-time, one-person use and are 
to be discarded after such use. 
   
   Tattoo-The practice of producing an indelible mark or figure on the human 
body by scarring or inserting a pigment under the skin using needles, scalpels, 
or other related devices. 
   
   Tattooist-A person who performs tattooing or permanent cosmetics. 
   
   Tattoo Parlor or Tattoo Studio-An establishment or a facility where tattooing 
or permanent cosmetic application is performed. Henceforth in these sections, 
tattoo parlors shall be referred to as tattoo studios. 
   
   Temporary location -An individual operator's tattooing area at a fixed 
location where tattooing is performed for a specified length of time of not more 
than seven days in conjunction with a single event or celebration. 
 
   
  sec.229.403. Licensing Fee and Procedures. 
 
  (a)  License fee. All tattoo studios are required to be licensed annually and 
all temporary locations shall be licensed as indicated in paragraph (2) of this 
subsection with the Texas Department of Health (department) and shall pay a 
license fee for each place of business as follows: 
 
  (1) $130-per tattoo studio; and 
   
  (2) $50-seven-day license for a temporary location. 
     
  (b) License forms. License forms may be obtained from the Texas Department of 
Health, Division of Food and Drugs, 1100 West 49th Street, Austin, Texas, 78756-
3182. 
   
  (c)  License application. The tattoo studio license application shall be 
signed and verified on the department furnished license application, and shall 
contain the following information: 
 
  (1) the full or legal name under which the tattoo studio is conducted; 
   
  (2) the address of each tattoo studio that is to be licensed; 
   
  (3) if a proprietorship, the name and residence address of the proprietor; if 
a partnership, the names and residence addresses of all partners; if a 
corporation, the date and place of incorporation and name and address of its 
registered agent in the state; or if any other type of association, then the 
names of the principals of such association; 
   
  (4) for each tattoo studio, the names and residence addresses of the 
individuals in charge thereof; 
   
  (5) name(s) of the tattoo studio's tattooist(s); 
   
  (6) days and hours of operation of each tattoo studio; 
   
  (7) description of all services to be provided at the tattoo studio; and 
   
  (8) an application form which shall be verified and signed by the owner or 
manager. 
     
  (d) Pre-licensing inspection. On receipt of the initial license application, 
the department shall inspect the proposed tattoo studio to determine compliance 
with these sections and to determine compliance with existing building and 
zoning codes applicable to the studio. 
   
  (e) Issuance of license. The department may issue a license to a tattoo studio 
after determination that the studio is in compliance with applicable statutes, 
rules, and building and zoning codes. 
 
  (1) The initial license shall be valid for one year from the date of issuance 
which becomes the anniversary date. 
   
  (2) The renewal license shall be valid for one year from the anniversary date. 
   
  (3) The license shall be displayed in a prominent place in the tattoo studio. 
     
  (f) Renewal of license. 
 
  (1) Each year, a tattoo studio shall renew its license in accordance with the 
requirements of this section. 
   
  (2) A person who holds a license issued by the Department under the Health and 
Safety Code shall renew the license by filing an application for renewal on the 
form prescribed by the department accompanied by the appropriate licensure fee. 
A licensee must file for renewal before the expiration date of the current 
license. A person who files a renewal application after the expiration date must 
pay an additional $100 as a delinquency fee. 
   
  (3)  Failure to submit the renewal annually shall subject the tattoo studio to 
the enforcement provisions of the Act and also to the provisions of  229.412 of 
this title (relating to Refusal, Revocation or Suspension of License). 
 
  (A) Amendment of license. A license must be amended when the name, ownership, 
or location of the licensed tattoo studio is changed. Such changes require 
submission of the fees as outlined in subsection (a) of this section. 
   
  (B) Notification of change of location of tattoo studio. 
 
  (i)  Not fewer than 30 days in advance of the change, the licensee shall 
notify the commissioner or the commissioner's designee in writing of the 
licensee's intent to change the location of a licensed tattoo studio. The notice 
shall include the address of the new location, and the name and residence 
address of the individual in charge of the tattoo studio at the new location. 
   
  (ii) Notice will be deemed adequate if the licensee provides the intent and 
verification notices to the commissioner or the commissioner's designee within 
the established time frames of clause (1) of this subparagraph by certified 
mail, return receipt requested, mailed to the Texas Department of Health, 
Division of Food and Drugs, 1100 West 49th Street, Austin, Texas, 78756. 
 
           
  sec.229.404. Physical Facilities. 
 
  (a) A tattoo studio must be in a permanent, nondwelling building located in an 
area in which the location is permissible under local zoning codes, if any. 
   
  (b) The tattoo studio shall be maintained in a sanitary condition. Approved 
sanitizing agents shall be used for all working surfaces. There shall be written 
procedures assigning responsibility for sanitation and describing in sufficient 
detail the cleaning methods, equipment, and the use of acceptable disinfectants 
or a 1:100 dilution of household bleach and water (1/4 cup bleach and 1 gallon 
of water) to be used in cleaning the building and all work surfaces. 
   
  (c) The walls, ceilings, and floors shall be kept in good repair. Tattooing 
areas and restrooms shall be of smooth, hard surfaces that are easily cleanable. 
   
  (d)  Tattoo studios shall have adequate lighting of at least 50 foot-candles 
of illumination in the tattooing area. 
   
  (e) Adequate ventilation shall be provided. 
   
  (f) Each tattoo studio shall be provided with adequate, conveniently located 
hand-washing facilities for its personnel, including a lavatory or lavatories 
equipped with hot and cold or tempered running water, germicidal soap, sanitary 
towels or other approved hand-drying devices, and refuse container. Such 
facilities shall be kept clean and in good repair. 
   
  (g)  Animals are not permitted in the tattoo studios, except for guide or 
service animals accompanying persons with disabilities. 
   
  (h) Smoking and the use of tobacco in any form shall be prohibited in tattoo 
studios. 
   
  (i) The tattoo studio shall be rodent-proof and protected from infestation by 
insects. 
 
     
  sec.229.405. Personnel Responsibilities. 
 
  (a)  All tattooists while applying tattoos shall wear clean outer garments, 
maintain a high degree of personal cleanliness, and conform to hygienic 
practices while on duty. 
   
  (b) All tattooists shall wash their hands thoroughly in hot water with a 
germicidal soap before and after applying a tattoo and as often as necessary to 
remove soil and contamination. 
   
  (c) Tattooists must wear approved single-service latex (rubber) gloves while 
applying tattoos. 
   
  (d) When a tattoo session is interrupted: 
 
  (1) gloves shall be removed and discarded; and 
   
  (2) hands shall be washed and a fresh pair of gloves used. 
     
  (e) Any open sores or lesions on the tattooist's hands shall be adequately 
protected. 
   
  (f) The area of the client's skin to be tattooed shall be adequately cleaned 
with a germicidal skin preparation and the tattooist shall treat the skin with 
70% isopropyl alcohol, iodophor, or other acceptable antiseptic products. 
   
  (g) Single-service razors shall be used if shaving is required. 
   
  (h) Each tattooist shall be trained in the practice of aseptic techniques. 
There shall be written documentation showing the name of the tattooist, and the 
date and type of training received. The training shall be conducted by a 
qualified individual on a continuous basis and with sufficient frequency. 
 
     
  sec.229.406. Client Qualifications, Disclosure, and Records. 
 
  (a) Clients must be a minimum of 18 years of age and have a positive 
identification card in their possession. Documentation of verification of age 
must be provided by recording driver's license number or type of identification 
provided. 
   
  (b) No person may be tattooed who appears to be under the influence of alcohol 
or drugs. 
   
  (c) Tattooing shall not be performed on any skin surface which manifests any 
evidence of unhealthy conditions such as rashes, boils, infections, or 
abrasions. 
   
  (d) Each client shall be informed in advance about the possible risk and 
dangers associated with the application of each tattoo. 
   
  (e) The tattoo studio shall maintain proper records of each client. The 
information shall be permanently recorded and made available for examination by 
the authorized agent in the tattoo studio for at least two years following the 
date of the last entry. These permanent records shall include: 
 
  (1) the name, address, and telephone number of the client; 
   
  (2) the date tattoo was applied; 
   
  (3) the client's date of birth; 
   
  (4)  the design, location, and specific color or colors of the tattoo applied 
to the client and when available, the manufacturer's catalogue or identification 
number of each color used; 
   
  (5) the name of the tattooist; and 
   
  (6) the signature of the client. 
 
       
  sec.229.407. Sterilization. 
 
  (a) A tattoo studio shall contain sterilization equipment adequate in size to 
accommodate needles, tubes, tips, and other necessary utensils and equipment. 
   
  (b) Each tattooist is required to be trained, by a qualified individual, in 
proper sterilization procedures. There shall be written documentation showing 
the name of the tattooist and the date and location where training was received. 
   
  (c) After each use, the tattooing equipment shall be cleansed to remove blood 
and tissue residue before sterilization as described in sec.229.409(h) of this 
title (relating to Tattooing Equipment). 
   
  (d) Each batch of equipment sterilized shall be monitored for sterilization by 
the use of chemical/heat sensitive indicators. 
   
  (e) Sterilized equipment shall be stored, wrapped, or covered in a manner 
which will ensure that it will remain sterile until used. Each batch shall be 
labeled with the date of sterilization and the initials of the person 
sterilizing. 
   
  (f) Each tattoo studio shall maintain sterilization records, which shall 
include the following information: 
 
  (1) date of sterilization; 
   
  (2) quantity and type of equipment to be sterilized; and 
   
  (3) name of individual sterilizing the equipment. 
     
  (g) Sterilized equipment stored in an approved manner and not used within 
thirty days after sterilization shall no longer be considered sterile and shall 
be re-sterilized before use. 
   
  (h) One of the following methods of sterilization shall be used. 
 
  (1) Autoclave-steam under pressure: 
 
  (A) 121 degrees Celsius (250 degrees Fahrenheit) and a pressure of at least 15 
pounds per square inch for not less than 30 minutes after the chamber of the 
autoclave has been evacuated of air and has reached temperature; and 
   
  (B) as specified in the manufacturer's operator's manual. 
     
  (2) Dry heat sterilization: 
 
  (A) 160 degrees Celsius (320 degrees Fahrenheit) for not less than two hours 
under atmospheric pressure after the sterilizer has reached the required 
temperature; and 
   
  (B) as specified in the manufacturer's operator's manual. 
 
         
  sec.229.408. Care of the Tattoo. 
 
  (a) Each time a tattoo is applied the client shall receive oral and written 
instructions on the care of the newly-applied tattoo. 
   
  (b) The client shall sign a written statement acknowledging that the client 
has read and understood the recommended instructions for the care of the newly 
applied tattoo. A copy of the signed instruction statement must be kept by the 
operator at the tattoo studio for six months after the application of the 
tattoo. 
   
  (c) The written instructional statement on the care of the tattoo shall 
include at least the following instructions: 
 
  (1)  to limit exposure to the sun; 
   
  (2) to properly cleanse the tattooed area; 
   
  (3) to apply antibiotic ointment or cream; 
   
  (4) to use sterile bandage(s) when necessary; 
   
  (5) the name, address, and telephone number of tattoo studio; 
   
  (6) to consult a health care provider at the first sign of infection or an 
allergic reaction; and 
   
  (7) the signature of the client. 
 
       
  sec.229.409. Tattooing Equipment. 
 
  (a)  Needles, bars, and tubes shall be constructed in a manner that permits 
easy cleaning and sterilization. 
   
  (b) All dyes or pigments used in tattooing shall be non-toxic, free from 
adulteration, and made from materials generally regarded as safe. 
   
  (c)  Only single-service pigment or dye containers shall be used for each 
client. Individual containers of dye or pigment shall be discarded after use. 
   
  (d) In order to minimize transmission of body fluids and disease, single-
service plastic covers shall be used to cover spray bottles or other reusable 
accessories that are handled by the tattooist during application of tattoos to 
multiple clients. 
   
  (e)  All acetate tattoo stencils shall be single-service, or cleaned and then 
disinfected with an effective cutaneous antiseptic before each use. 
   
  (f) Contaminated needles and tubes will be placed in a covered container of 
germicidal solution such as Cidex, full strength (not to be construed as all-
inclusive), until they can be cleaned and sterilized. 
   
  (g) All containers holding contaminated needles and tubes and container lids 
will be cleaned and sanitized daily or as often as needed. 
   
  (h) Needles and tubes will be cleaned prior to sterilization by one of the 
following methods: 
 
  (1) mechanically pre-cleaned using a clean cotton-ball or swab moistened with 
a solution of low-residue detergent and cool water, with care taken to ensure 
removal of any pigment inside tube/tubes not visible to the eye, thoroughly 
rinsed with warm water and then drained, and cleaned by soaking in a protein-
dissolving detergent-enzyme cleaner used according to manufacturer's 
instructions; or 
   
  (2) cleaned in an ultrasonic cleaning unit used according to manufacturer's 
instruction; and 
   
  (3) rinsed and dried prior to packaging for sterilization. 
     
  (i) Cleaning records shall be maintained and kept for a period of one year. 
 
     
  sec.229.410. Report of infection or allergic reactions. <ol> A written report 
of any infection or allergic reaction resulting from the application of a tattoo 
shall be forwarded to the Texas Department of Health within five working days of 
its occurrence or knowledge thereof. The report shall include: 
 
  (1) the name of the affected client; 
   
  (2)  the name and location of the tattoo studio; 
   
  (3) the location of the infection and causative organism, if known; 
   
  (4) the name and address of health care provider, if any; 
   
  (5) the name of the tattooist; and 
   
  (6) any other information considered relevant to the situation. 
 
     
  sec.229.411. Disposal of Infectious Waste. 
 
  (a)  Used tattoo needles shall be subjected to the methods of treatment and 
disposal described in sec.1.136 of this title (relating to Approved Methods of 
Treatment and Disposition) and Title 30, Texas Administrative Code, Chapter 330, 
Subchapter Y, which regulates the disposal of sharps. 
   
  (b) Other infectious waste, i.e., cotton balls, Q-tips, Kleenex, paper towels, 
gloves, pigment containers and soiled linens (not to be construed as all-
inclusive) shall be disposed of by deposition in a sanitary landfill in 
accordance with Title 30, Texas Administrative Code, sec.330.136 (b)(1) 
(relating to Disposal of Special Waste). 
 
     
  sec.229.412. Refusal, Revocation, or Suspension of License. 
 
  (a) Basis. The Texas Department of Health (department) may, after providing 
opportunity for hearing, refuse to license a tattoo studio, or may revoke or 
suspend the license for violations of the requirements in these sections or for 
any reasons described in the Act, or in the Texas Health and Safety Code, 
Chapter 431. 
   
  (b) Hearing. Any hearings for the refusal, revocation or suspension of a 
license are governed by the department's formal hearing procedures in Chapter 1 
of this title (relating to the Board of Health) and the Administrative Procedure 
Act, Texas Civil Statutes, Chapter 2001. 
 
  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 October 27, 1993. 
 TRD-9331024 
  Susan K. Steeg 
 General Counsel, Office of General Counsel 
 Texas Department of Health 
    Proposed date of adoption: December 16, 1993 
 For further information, please call: (512) 458-7248 
                 Part II. Texas Department of Mental Health and Mental 
Retardation 
  Chapter 402. Client Assignment and Continuity of Services 
  
  Subchapter F. Continuity of Services-Mental Retardation Campus-based 
Components 
 
  25 TAC sec.sec.402.214-402.219 
 
  (Editor's note: The text of the following sections proposed for repeal will 
not be published. The sections may be examined in the offices of the Texas 
Department of Mental Health and Mental Retardation or in the Texas Register 
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) 
   
  The Texas Department of Mental Health and Mental Retardation (TXMHMR) proposes 
the repeal of sec.sec.402.214-402.219 of existing Chapter 402, Subchapter F 
governing continuity of services -mental retardation campus-based components. 
The process and requirements described in those sections involving the movement 
of individuals with mental retardation from state facilities to settings in the 
community have been revised and incorporated into new sec.sec.402.311-402.323 of 
Chapter 402, Subchapter I, concerning movement of individuals with mental 
retardation from department facilities. The new sections are proposed for public 
comment contemporareously in this issue of Texas Register. 
 The purpose of repealing the sections as proposed is to permit the adoption of 
new sections which reflect the approach being taken by the TXMHMR service system 
to move individuals with mental retardation from the campus-based settings of 
state facilities into community-based living arrangements. 
 Leilani Rose, director, Financial Services Department, has determined that for 
the first five year period the proposed new rules are in effect, there will be 
no fiscal implications for state or local government as a result of enforcing 
the rules. 
 Jaylon Fincannon, deputy commissioner, Mental Retardation Services, has 
determined that for each year of the first five years the repeal of the sections 
is in effect the public benefit anticipated as a result will be the clear 
delineation of the requirements and procedures at each stage of the process 
which will enable individuals with mental retardation to move from state 
facilities to living arrangements in the community. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed. 
 Written comments on the proposal may be sent to Linda Logan, director, Policy 
Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 
12668, Austin, Texas 78711-2668, within 30 days of publication. 
 A public hearing will be held to accept testimony on the repeal of the sections 
in Chapter 402, Subchapter F and the proposed new subchapter on Monday, November 
29, 1993, at 2:00 p.m., in the TXMHMR Central Office Auditorium at 909 West 45th 
Street, Austin, Texas 78756. If interpreters for the hearing impaired are 
required, please notify Ms. Logan 72 hours prior to the hearing by calling 
512/465-4670. 
 The repeals are proposed under the Texas Health and Safety Code, Title 7, 
sec.532.015, which provides the Texas Board of Mental Health and Mental 
Retardation Board with rulemaking authority. 
 
 
  sec.402.214. Requirements for Community Placement. 
 
   
  sec.402.215. Community Placement: Reassignment from MR Campus-Based Component 
to MRA. 
 
   
  sec.402.216. General Requirements for Discharge of Reassignment. 
 
   
  sec.402.217. Additional Requirements Specific to Type of Discharge. 
 
   
  sec.402.218. Review Procedures Concerning Return to MR Campus-Based Component. 
 
   
  sec.402.219. Quality Assurance Requirements. 
 
  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 October 27, 1993. 
 TRD-9331076 
  Ann K. Utley 
 Chairman 
 Texas Board of Mental Health and Mental Retardation 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 465-4670 
         
           
  Subchapter I. Movement of Individuals with Mental Retardation from Department 
Facilities 
 
  25 TAC sec.sec.402.311-402.323 
 
  The Texas Department of Mental Health and Mental Retardation (TXMHMR) proposes 
new sec.sec.402.311-402.323 of Chapter 402, Subchapter I, concerning movement of 
individuals with mental retardation from department facilities. The new sections 
would replace sec.sec.402.214-402.219 of existing Chapter 402, Subchapter F 
governing Continuity of Services-Mental Retardation Campus-based Components 
which are contemporaneously proposed for repeal in this issue of Texas Register 
. The proposed sections would affect the Texas Health and Safety Code, Title 7. 
 The purpose of the proposed sections is to describe the process and 
requirements for moving individuals with mental retardation from the campus-
based settings of state facilities into community-based living arrangements. The 
sections require that private providers of community-based residential services 
sign a memorandum of agreement with the mental retardation authority in whose 
local service area the provider is located. The MOA spells out the 
responsibilities of both parties and confer eligible provider status on the 
provider. 
 Leilani Rose, director, Financial Services Department, has determined that for 
the first five-year period the sections are in effect there will be no 
significant fiscal impact on state government as a result of enforcing the 
sections as proposed. There will be some additional costs which would be 
incurred by mental retardation authorities (MRAs) to implement provisions of the 
sections; these costs have been compensated through the allocation of additional 
funds in FY 1993 and FY 1994. These costs were considered in early FY 1993, and 
additional allocations were made to each MRA to cover these costs. The Texas 
MHMR Board at its November 1992 meeting approved the allocation of amounts 
ranging from a minimum of $15,000 to a maximum of $150,000 to community center 
MRAs for a total of $1,259,860 with an additional $287,026 to state school MRAs 
and $103,114 to state center MRAs. These funds were for the specific purposes of 
planning, coordinating, and monitoring the activities for individuals moving to 
community living arrangements from campus-based facilities under the expansion 
of the continuity of services network. Funding is continued in FY 1994, as the 
FY 1993 allocations became part of the FY 1994 base. In addition, MRAs will 
recoup some of the overhead costs of moving individuals to the community through 
Prospective Payment Program and Companion Program payments. 
 Jaylon Fincannon, deputy commissioner, Mental Retardation Services, 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 
clear delineation of the requirements and procedures at each stage of the 
process which will enable individuals with mental retardation to move from state 
facilities to living arrangements in the community. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed. 
 Written comments on the proposal may be sent to Linda Logan, director, Policy 
Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 
12668, Austin, Texas 78711-2668, within 30 days of publication. 
 A public hearing will be held to accept testimony on the sections as proposed 
Tuesday, November 30, 1993, at 2:00 p.m., in the TXMHMR Central Office 
Auditorium at 909 West 45th Street, Austin, Texas 78756. If interpreters for the 
hearing impaired are required, please notify Ms. Logan 72 hours prior to the 
hearing by calling (512) 465-4670. 
 The new sections are proposed under the Texas Health and Safety Code, Title 7, 
sec.532.015, which provides the Texas Board of Mental Health and Mental 
Retardation Board with rulemaking authority. 
 
 
  sec.402.311. Purpose.  The purpose of this subchapter is to establish criteria 
and procedures for: 
 
  (1) mental retardation authorities (MRA) to develop and/or provide services 
for individuals residing at facilities of the Texas Department of Mental Health 
and Mental Retardation who are or may be recommended for community living; and 
   
  (2) ongoing monitoring of services provided to individuals with mental 
retardation who have moved or will move into the community from department 
facilities. 
 
     
  sec.402.312. Application.  This subchapter applies to: 
 
  (1) all facilities of the Texas Department of Mental Health and Mental 
Retardation which provide inpatient and/or residential services to individuals 
with mental retardation; and 
   
  (2) mental retardation authorities (MRAs). 
 
     
  sec.402.313. Definitions.  The following words and terms, when used in this 
subchapter, shall have the following meanings, unless the context clearly 
indicates otherwise. 
   
   Actively involved -Involvement with the individual which the IDT deems to be 
of a quality nature based on the following: 
 
  (A)  observed interactions of the person with the individual; 
   
  (B)  advocacy for the best interests of the individual; 
   
  (C)  knowledge of and sensitivity to the individual's preferences, values and 
beliefs; 
   
  (D) ability to communicate with the individual; and 
   
  (E) availability to the individual for assistance or support when needed. 
     
   Capacity-A term consistent with provisions of the Texas Probate Code which is 
used to designate the ability of an individual with mental retardation to give 
legally adequate consent as determined by the interdisciplinary team. 
   
   CARE-The department's Client Assignment and Registration System, an on-line 
data entry system developed to provide demographic and other data about 
individuals served by the department. 
   
   Community living profile-The first section of the Community living plan which 
is completed at any IDT staffing when a recommendation is made for movement of 
the individual to community living. The profile provides descriptive information 
as well as a list of information, recommendations, and preferences that must be 
considered when searching for a community home. 
   
   Community living plan-A plan developed by the individual's interdisciplinary 
team (IDT) which documents the reasons why the individual is recommended for 
community living and makes specific recommendations regarding the services, 
programs, treatment needs, and arrangements needed when the individual moves to 
community living. The plan is followed until an individual habilitation plan 
(IHP) or support plan is developed for the individual by the new community IDT. 
   
   Community program -Any community-based program, including private or publicly 
owned community services, that provides supervision, support, habilitative 
services, and/or residential services in which programs are designed to improve 
the individual's capabilities to function optimally or to maintain the 
individual's present level of functioning. 
   
   Continuity of services activities-The activities designed to ensure 
coordination of services to an individual which include, but are not limited to: 
 
  (A) development of the community living plan which addresses the individual's 
choices and needs; 
   
  (B)  joint community living planning; 
   
  (C) exchange of information pertinent to service needs/training/support; 
   
  (D) implementation of services which address the individual's choices and 
needs; and 
   
  (E)  visits to the individual following the move to the community. 
     
   Department-The Texas Department of Mental Health and Mental Retardation. 
   
   Deputy commissioner -The department's deputy commissioner for Mental 
Retardation Services. 
   
   Eligible provider -For individuals moving from a facility, any provider of 
community-based residential mental retardation services or a home and community-
based service (HCS) program located in the local service area of an MRA which 
has entered into a memorandum of agreement (MOA) with that MRA and which is: 
 
  (A) TXMHMR certified; 
   
  (B)  deemed from certification by TXMHMR i.e. intermediate care 
facilities/mental retardation (ICF/MR), HCS, Texas Department of Protective and 
Regulatory Services (PRS) foster homes for children, and Accreditation Council 
for People with Disabilities (ACD); or 
   
  (C) in provisional status for such certification or licensure. The eligible 
provider requirements shall not apply to non-residential services except for HCS 
programs. 
     
   Facility-Any state hospital, state school, or state center of the department 
which provides inpatient or residential services to individuals with mental 
retardation. 
   
   Individual-A person with mental retardation who has received or is receiving 
inpatient or residential services provided by a facility and who has moved or is 
moving from a facility to a community program. 
   
   Interdisciplinary team (IDT)-A group of mental retardation professionals and 
paraprofessionals plus other concerned persons who assess the individual's 
treatment, training, and habilitation needs and make recommendations for 
services. This group functions as a team and includes: 
 
  (A) the individual; 
   
  (B) the legally authorized representative of an individual who lacks capacity; 
   
  (C) as specified by the facility, persons who are professionally qualified, 
certified, or both, in various professions with special training and experience 
in the diagnosis, management, needs, and treatment of individuals with mental 
retardation; 
   
  (D) persons who are directly involved in the delivery of mental retardation 
services to the individual; 
   
  (E)  representative(s) of the appropriate MRA; and 
   
  (F) member(s) of the facility's public responsibility committee (PRC), if 
requested by the PRC, the individual with capacity, or any legally authorized 
representative. 
     
   Legally adequate consent-A term consistent with provisions of the Health and 
Safety Code, Title 7, sec.591.006 concerning consent obtained from an individual 
with mental retardation which is legally adequate when each of the following 
conditions has been met: 
 
  (A)  legal status: The individual giving the consent is of the minimum legal 
age and has not had a guardian appointed to manage personal affairs by an 
appropriate court of law; 
   
  (B) comprehension of information: The individual giving the consent has been 
informed of and comprehends the nature, purpose, consequences, risks, and 
benefits of and alternatives to the procedure, and the fact that withholding or 
withdrawal of consent shall not prejudice the future provision of care and 
services to the individual with mental retardation; and 
   
  (C) voluntariness: The consent has been given voluntarily and free from 
coercion and undue influence. 
     
   Legally authorized representative-The parent of an individual who is a minor, 
the guardian of an individual who has been determined by a court to lack 
capacity, or the managing conservator of an individual. 
   
   Local service area-A geographic area composed of one or more Texas counties 
delimiting the population which may receive services from an MRA. 
   
   MRA (mental retardation authority)-The entity designated by the commissioner 
to plan, develop, coordinate, and/or provide services to individuals with mental 
retardation in a particular local service area of the state as are required to 
be performed at the local level by state law and the department. Unless 
otherwise specified, this is the MRA serving the individual's county of 
residence. 
   
   Mental retardation services-All services concerned with research, prevention, 
and the detection of mental retardation and all services related to the 
education, training, habilitation, care, treatment, and supervision of 
individuals with mental retardation, except the education of school-age 
individuals that the public educational system is authorized to provide. 
   
   Parent-the natural or adoptive mother or father of the individual, but not a 
mother or father whose parent-child relationship has been legally terminated. 
   
   Regional monitor -An employee of TXMHMR Central Office who: 
 
  (A) is responsible for approving living situations for individuals moving from 
facilities to community programs; 
   
  (B)  conducts periodic and follow-up reviews; and 
   
  (C) serves as a technical resource to MRAs. 
     
   TXMHMR service delivery system-All campus-based facilities and community-
based services operated or contracted for by the department. 
 
   
  sec.402.314. Philosophy and Principles. 
 
  (a) Each individual receiving residential services through the TXMHMR service 
delivery system is entitled to choice and decision-making authority. To make 
choice possible and relevant, the individual requires supports, experiences, and 
options. If an individual cannot communicate preferences related to activities 
and expectations or does not choose to communicate, the questions are asked of 
those actively involved persons (family members, guardians, friends, and/or 
those who provide personal support) who spend the most time with the individual 
and are sensitive to and aware of how the individual expresses likes and 
dislikes, choices, preferences, and desires. 
   
  (b) The following principles support choice and decision-making by the 
individual. Each facility and MRA is required to put these principles into 
practice as they carry out continuity of services activities. 
 
  (1) The choices, preferences, expectations, likes and dislikes of the 
individual and any legally authorized representative are the dominant force 
behind all decisions. 
   
  (2) Individuals making choices are entitled to training, counseling, and 
opportunities to experience and to try the options involved in making choices. 
   
  (3) The same range of options for residential and support services that are 
available to all people should be available for individuals receiving services 
from the TXMHMR service delivery system. 
   
  (4)  Visits and interviews with the individual, a legally authorized 
representative, and other actively involved persons, as well as observations, 
are the primary basis for collecting data and information to determine if the 
individual's choices and needs are being met across time and services. 
     
  (c) The MRA shall assume an affirmative responsibility to ensure continuing 
residential services, if needed and requested, to any individual with mental 
retardation who was in a facility and who is discharged from a community home. 
 
     
  sec.402.315. General Provisions. 
 
  (a) The department shall compile the following lists and provide them to the 
MRA: 
 
  (1)  quarterly list of all individuals from the MRA's local service area who 
are diagnosed as having mental retardation and who are residing in facilities 
with each individual's level of care, I.Q., adaptive behavior level (ABL), 
mobility status, health status, behavior management status, hearing and vision 
status, and whether the individual has been recommended for community living; 
   
  (2) quarterly list of all individuals from the MRA's local service who have 
been moved to community living since August 7, 1991, with the location of the 
home; 
   
  (3) quarterly list of all individuals from other MRAs who have been moved into 
the local service area of the MRA since August 7, 1991, with the location of the 
home; and 
   
  (4) twice annually a list of all TXMHMR certified or deemed status community 
providers and those pending TXMHMR certification or deemed status. 
     
  (b) Before the initiation of movement activities or referrals to a residential 
community program not operated by the MRA, the MRA and the provider of 
residential community services shall enter into a memorandum of agreement (MOA) 
which is described in sec.402.322 as Exhibit A. Those providers are eligible 
providers. 
 
  (1) A single MOA may cover more than one eligible provider operated by a 
company in the MRA's local service area. 
   
  (2) If the MRA chooses to use a substitute MOA, it must be approved by the 
deputy commissioner or designee. 
   
  (3) The MRA shall enter into an MOA with all providers which wish to provide 
services to individuals served by the MRA and which meet the requirements 
outlined in the MOA. Disputes as to whether the provider meets the requirements 
shall be submitted for arbitration to the deputy commissioner or designee. 
     
  (c) The MRA shall have procedures in place to ensure that all eligible 
providers have equal access to information about individuals recommended for 
community living. 
   
  (d)  The MRA and facility shall have and implement procedures which ensure 
that the necessary consents for release of information to eligible providers and 
providers of non-residential community services are obtained as described in 
Chapter 403, Subchapter K of this title (relating to Client-Identifying 
Information). 
   
  (e) The MRA and the facility shall have and implement procedures which ensure 
that necessary planning-linking activities between the MRA, facility, and 
involved community resources (both public and private) occur to assure that 
individuals residing in the facility move to the appropriate living option. 
 
  (1) For an individual not currently recommended for community living, 
planning-linking activities shall include: 
 
  (A) evidence that the MRA incorporates the individual's choices and needs into 
ongoing agency service planning for future consideration; 
   
  (B) identification by the facility interdisciplinary team (IDT) of services 
the individual would require to reside successfully in the community; and 
   
  (C) monitoring by the MRA of the status of such services, especially those 
being developed or yet to be developed. 
     
  (2) For an individual recommended for community living, a designated MRA staff 
person shall: 
 
  (A) obtain relevant information regarding the individual's status and progress 
through visits and interactions with the facility currently responsible for 
provision of services; 
   
  (B) communicate information regarding eligible providers, both public and 
private, and any other providers of appropriate non-residential community 
services to the facility currently responsible for provision of services; and 
   
  (C)  communicate relevant information to eligible. 
       
  (f) A staff person from the MRA shall be invited to attend the individual's 
IDT meetings. If the MRA staff person is unable to attend the meeting, the MRA 
shall ensure that the facility has the information needed to assist the IDT in 
making a decision regarding community living. 
   
  (g) The individual, regardless of capacity, always has the right to be present 
and to participate in IDT meetings and administrative hearings. The desires and 
aspirations of the individual, regardless of capacity, shall be the dominant 
factor considered when recommendations are made concerning movement. 
   
  (h) Communication devices and techniques (including the use of sign language) 
shall be utilized, as appropriate, to facilitate the individual's involvement in 
the process and to ensure that the individual is able to make those desires and 
aspirations known. 
   
  (i) The individual with capacity has the right to exclude a parent or other 
actively involved persons from participation in: 
 
  (1)  meetings of the interdisciplinary team (IDT) at which movement of the 
individual is to be discussed; and 
   
  (2) all review and appeal procedures. 
     
  (j) If the individual with capacity wishes to include a parent or other 
actively involved persons, facility staff shall encourage the attendance and 
participation by those persons. Every reasonable attempt shall be made to 
schedule meetings at a time that is convenient for the those persons. 
   
  (k) When the IDT fails to reach consensus while meeting as described in 
sec.402.316 of this title (relating to Recommendation for Community Living) or 
in sec.402.317 of this title (relating to Selecting a Community Living Option), 
the review and appeal processes described in Chapter 402, Subchapter H of this 
title (relating to Placement Appeals Procedures-Mental Retardation Services) 
shall be followed. 
 
     
  sec.402.316. Recommendation for Community Living. 
 
  (a) When the IDT makes a recommendation that an individual should move into 
the community, the recommendation shall be made: 
 
  (1) using information from the mental retardation authority (MRA) regarding 
all applicable community resources; and 
   
  (2) as described in the department's rules governing placement appeals 
procedures (Chapter 402, Subchapter H) in  s402.286 of this title (relating to 
Placement Recommendation by Interdisciplinary Team) and in sec.402.287 of this 
title (relating to Appeal to the Placement Review Team). 
     
  (b) When a recommendation for community living is made, the IDT shall 
designate specific staff members at the facility and the MRA shall designate its 
own staff members. The staff members will cooperate in researching community 
living options and report their recommendations to the IDT. 
   
  (c) A community living profile, i.e. the first section of the community living 
plan which is described in sec.402.322 of this subchapter as Exhibit B, shall be 
completed by facility staff at the IDT meeting when a recommendation for 
community living is made and forwarded to the MRA within 14 calendar days of the 
IDT meeting or placement review team meeting, whichever is appropriate. The 
placement review team process is described in sec.402.287 of this title 
(relating to Appeal to the Placement Review Team). The community living profile 
shall: 
 
  (1) outline any preferences the individual and any legally authorized 
representative has about community living (e.g., type of home, geographic 
preferences, vocational or habilitation services); 
   
  (2) outline any medical needs to be communicated to the physician who will be 
providing care in the community, and any other special needs to be communicated 
to community-based service providers; and 
   
  (3) indicate whether or not a determination of mental retardation has been 
conducted since September 1, 1993, as described in Chapter 405, Subchapter D of 
this title (relating to Determination of Mental Retardation and Appropriateness 
for Admission to Mental Retardation Services) or a comprehensive diagnosis and 
evaluation before September 1, 1993, and the date of such. 
     
  (d) The MRA shall solicit the thoughts, opinions, choices, and desires of the 
individual and any legally authorized representative when reviewing the various 
community living options. The review shall include all eligible providers which 
have contacted the MRA regarding available services and vacancies and any other 
providers of appropriate none-residential community services. The MRA shall also 
obtain input from the facility IDT staff regarding all appropriate community 
resources. 
   
  (e) The MRA shall send the community living profile to all eligible providers 
and to any providers identified by the individual and any legally authorized 
representative provided that the appropriate consents for release of information 
are obtained as described in Chapter 403, Subchapter K of this title (relating 
to Client-Identifying Information). 
   
  (f) The MRA may send the community living profile to eligible providers and 
any other providers of appropriate non-residential community services in the 
local service areas of other MRAs if: 
 
  (1) appropriate services are not available in the MRA's local service area; 
   
  (2) the individual or any legally authorized representative desires services 
outside the MRA's local service area; and 
   
  (3) the MRA serving that area and the facility keep each other informed of 
these referrals. 
     
  (g) If additional information (e.g., assessments or a report from the annual 
planning meeting) is required, the community program provider shall submit a 
written request to the facility. The facility shall compile the information and 
forward it to the community program provider. 
   
  (h) Eligible providers shall notify the MRA in writing if they are interested 
and are available to provide the services. 
   
  (i) Once all community living options are known to the MRA, they shall be 
reviewed with the individual, any legally authorized representative, and 
designated facility staff. 
 
  (1) The individual with capacity or a legally authorized representative shall 
choose which community living options shall be considered in greater detail by 
the IDT as described in  s402.317 of this title (relating to Selecting a 
Community Living Option). If needed, the regional monitor or other facility 
staff may assist the individual and any legally authorized representative to 
make the decision. 
   
  (2) The ability of the home to meet the needs of the individual shall provide 
the basis of the decision. 
     
  (j) If the individual with capacity or a legally authorized representative 
does not make a choice of which options are to be considered in greater detail 
by the IDT, the staff designated by the IDT as described in subsection (b) of 
this section shall make the decision based on the following: 
 
  (1) characteristics of the home best suited for the individual; 
   
  (2) medical and health care needs; 
   
  (3) social relationships and support network; 
   
  (4) emotional and behavioral factors; 
   
  (5) transportation; 
   
  (6) financial; 
   
  (7) employment, vocational, and educational; and 
   
  (8) any other needs as outlined by the individual, the individual's parent, 
the IDT, and as identified by the MRA staff. 
     
  (k)  The MRA shall coordinate with the facility to assist the individual and 
any legally authorized representative in making arrangements for preselection 
visits to proposed homes. 
 
  (1) If overnight visits are utilized, the facility first shall assure that 
staff at the proposed home receive the following prior to or at the time of the 
preselection visit: 
 
  (A)  identifying data; 
   
  (B) the individual's legal status; 
   
  (C) the individual's determined disability(ies); 
   
  (D)  pertinent medical/medication information; 
   
  (E) adequate medication supply; 
   
  (F) behavioral data; 
   
  (G) fiscal resources; 
   
  (H) clothing, personal items, and adaptive equipment; and 
   
  (I) other pertinent treatment information. 
     
  (2) If a proposed home is outside the local service area of the individual's 
MRA, that MRA shall notify the appropriate MRA of the planned visit. 
 
       
  sec.402.317. Selecting a Community Living Option. 
 
  (a) An IDT meeting shall be scheduled to approve a home for the individual as 
described in rules of the department governing placement appeals procedures in 
sec.402. 288 of this title (relating to Specific Alternate Placement 
Recommendation by IDT). 
 
  (1) The meeting may be called by the individual with capacity, any legally 
authorized representative, or the case manager. 
   
  (2) If an MRA staff person, preferably a case manager, has not been assigned 
already by the MRA, this shall be done prior to scheduling the meeting. 
     
  (b)  The following people shall be invited to the meeting: 
 
  (1)  individual; 
   
  (2) any legally authorized representative; 
   
  (3) staff from the MRA serving the individual's county of residence; 
   
  (4) the MRA which serves the local service area where the individual may be 
moving, if different; 
   
  (5) staff of the program where the individual may be moving; 
   
  (6) facility IDT staff; and 
   
  (7)  other actively involved persons. 
     
  (c) For school-aged individuals, a representative of the local independent 
school district in which the home is located shall be notified by the MRA of the 
meeting and encouraged to participate and to assist in coordinating educational 
services for the individual. 
   
  (d) If circumstances preclude attendance in person by any of those invited, 
that person or persons may participate via telephone. 
   
  (e) The individual with capacity or any legally authorized representative may: 
 
  (1) choose the proposed home; 
   
  (2)  choose a home with no vacancies and be placed on a waiting list for that 
home if the provider agrees; or 
   
  (3) request the MRA to facilitate development of a specific living arrangement 
not yet available. Requests for alternatives not available shall be used in the 
MRA's planning processes to develop and/or expand services. 
     
  (f) If there is no consensus by the IDT concerning the choice made by the 
individual with capacity or any legally authorized representative as described 
in subsection (e) of this section, then the IDT shall notify the head of the 
facility within one working day of the need for an administrative hearing as 
described in Chapter 402, Subchapter H of this title (relating to Placement 
Appeals Procedures-Mental Retardation Services). 
   
  (g) If the provider of residential services is eligible but is in provisional 
status regarding certification or licensure the MRA shall verify that there are 
adequate life safety provisions and that there are no environmental concerns. 
   
  (h) The facility shall send the following to the regional monitor: 
 
  (1) report from the last annual planning meeting of the IDT; 
   
  (2) most recent psychological, social, medical, and vocational/educational 
assessments; 
   
  (3) report from any interim meetings of the IDT which addressed community 
living issues not addressed at the annual planning meeting; and 
   
  (4) the community living profile. 
     
  (i) If a home is being considered which is outside the local service area of 
the individual's county of residence MRA, the following shall occur. 
 
  (1) The county of residence MRA shall inform the receiving MRA where the 
community home is proposed that the individual is considering moving into the 
area. 
   
  (2) The receiving MRA shall be asked to assume responsibilities for arranging 
the community living option, monitoring, and case management. If the receiving 
MRA agrees then the county of residence designation shall be changed when the 
individual moves. If the change is time limited, a MOA shall be executed as 
described in sec.402.320 of this title (relating to Guidelines for Changing 
County of Residence). 
   
  (3) If the receiving MRA does not want to be a part of the community living 
option and the county of residence MRA wants to continue to seek movement of the 
individual to that location, the MRAs shall submit the issue to the deputy 
commissioner or designee for arbitration. 
 
  (A) Each MRA shall submit the reasons for its position in writing to the 
deputy commissioner with copies to the other MRA and to the individual and any 
legally authorized representative. 
   
  (B) The individual and any legally authorized representative shall be asked to 
submit their opinions to the deputy commissioner regarding the disagreement. 
   
  (C) The county of resident MRA shall inform the individual, any legally 
authorized representative, and the facility of the final agreement. 
       
  (j) The current facility shall inform any new facility that may serve the 
individual of staff experiences and recommendations regarding how best to serve 
the individual. 
   
  (k) All MRAs and facilities that are involved must be notified and invited to 
participate in any planning meeting(s) for the individual. 
 
     
  sec.402.318. Planning Moves Into the Community. 
 
  (a) When a recommendation of a specific home for the individual in the 
community has been made as described in rules of the department governing 
placement appeals procedures in  s402.288 of this title (relating to Specific 
Alternate Placement Recommendation by IDT) or by the hearing officer as 
described in sec.402.293 of this title (relating to Final Decision), the 
facility IDT shall meet to complete the community living plan which shall 
include: 
 
  (1)  a statement of the individual's choices and needs; 
   
  (2) a list of supports and services necessary for the individual to succeed in 
the chosen home and persons identified who will facilitate such; 
   
  (3)  identification of the MRA case manager assigned to provide continuity of 
services activities as well as a facility contact person; 
   
  (4) all current physician orders and treatments, including rationale for all 
medications prescribed and dispensed by the facility, and amount dispensed which 
will be continued after movement; 
   
  (5) the name of the physician or health care entity that will become the 
individual's primary health care provider; 
   
  (6) documentation that the individual and any legally authorized 
representative has had an opportunity to participate in the development of the 
community living plan with notations concerning their reactions; 
   
  (7) statement that the individual and any legally authorized representative 
has been counseled on the relative advantages and disadvantages of the proposed 
home with concurrent documentation of their opinions, ideas, and suggestions; 
   
  (8) the reason for the move to a community home; 
   
  (9) a brief summary of findings, events, and progress during the period of 
service to the individual; 
   
  (10)  current diagnoses; 
   
  (11) date of the move to the home; 
   
  (12) any referrals made or instructions provided to and/or for the individual 
at reassignment, to include a copy of the community living plan, if applicable, 
naming the services and/or supports the individual requires in the new home and 
the agency(ies) responsible for provision; and 
   
  (13)  the signatures of all participants. 
     
  (b) The facility shall send copies of the completed community living plan to 
the: 
 
  (1) regional monitor; 
   
  (2) MRA county of residence; 
   
  (3) provider; and 
   
  (4) any legally authorized representative. 
     
  (c) As soon as possible, but no later than two weeks after receiving the 
community living plan, the regional monitor shall visit the proposed setting, if 
necessary, and notify the MRA of any concerns and whether the home is approved. 
   
  (d)  The MRA shall arrange for department funding, if applicable. 
   
  (e)  The MRA shall notify the facility when the setting is approved. The 
facility shall ensure the following: 
 
  (1) a 30-day supply of prescribed medications has been provided; 
   
  (2) individual's personal belongings are prepared to accompany the individual; 
   
  (3) all necessary financial arrangements and agreements are addressed; 
   
  (4)  appropriate special instructions for the individual or others are 
furnished in writing and orally prior to or at the time of departure; 
   
  (5) the records described in subsection (i) of this section shall accompany 
the individual unless the movement is to the individual's home; and 
   
  (6) the appropriate Social Security office has been notified of the 
individual's impending move. 
     
  (f) The MRA shall maintain evidence that the physician, direct care staff, 
consultants, and others who will be delivering services to the individual are 
informed of the individual's community living plan prior to provision of 
service. 
   
  (g) The MRA shall coordinate and ensure satisfactory transition of the 
individual to the community-based option through involvement of the facility 
staff in the process. The MRA shall assure that staff from the MRA and/or 
facility accompany the individual to the community home (if other than the 
family's home) and shall remain there for a period of time which is determined 
to be necessary for satisfactory transition. The case manager shall arrange to 
meet the individual at the home as soon as possible. 
   
  (h) If an individual on regular admission to a facility is placed in a setting 
outside the local service area of that facility, then 180 days after moving to a 
community home the individual shall be reassigned to the facility serving that 
area. Written notification shall be sent by the original facility to the 
individual or legally authorized representative, case manager, and the facility 
serving the area. 
   
  (i) The following records, as applicable, shall be provided by the facility 
and shall accompany the individual: 
 
  (1) a copy of birth certificate, if required by the community services 
provider; 
   
  (2)  copies of any legal documents, if required by the community-based 
facility; 
   
  (3) a copy of the individual's Social Security card; 
   
  (4)  a photograph current within one year; 
   
  (5) a copy of the immunization record; 
   
  (6) a copy of the height and weight record; 
   
  (7) a copy of the seizure record; 
   
  (8) a copy of the treatment and diet record; 
   
  (9) a copy of the most recent medical and dental examination; 
   
  (10) copies of all laboratory tests conducted within the past 30 days and any 
additional significant reports made within the past year (including, X-ray, EEG, 
and EKG); 
   
  (11) copies of the physician's progress reports; 
   
  (12) a copy of the social history and the most recent psychological 
examination; and 
   
  (13)  copy of Medicaid, Medicare, or third-party insurance cards; 
   
  (14)  nursing care plan; and 
   
  (15) any other data requested by the community program. 
     
  (j) Prior to or at the time of movement, the facility physician shall prepare 
a letter summarizing the highly relevant medical information to be given to the 
new physician or health care entity that will be providing services to the 
individual in the community. Whenever possible, the facility physician shall 
communicate directly with the new physician. 
   
  (k) The facility shall transmit the completed community living plan and any 
other necessary information regarding treatment needs to the physician who will 
provide care in the community. The MRA county of residence shall document that 
the information is sent. 
   
  (l) The MRA shall notify the regional monitor within three days of the date of 
the move. 
   
  (m) The individual shall be reassigned in CARE by the facility to the serving 
MRA. If necessary, the county of residence shall be changed at this time. 
 
     
  sec.402.319. Requirements for Continuity of Service Activities Following 
Movement. 
 
  (a) The MRA is responsible for assigning a case manager to maintain an ongoing 
relationship with the individual who moves into the community to determine if: 
 
  (1) there are factors which may preclude the successful attainment of the 
individual's choices and needs relative to their quality of life; 
   
  (2) the individual's choices and needs that affect continuing the placement 
are met in the community setting; 
   
  (3) the individual continues to be eligible for the setting; and 
   
  (4) the home continues to be appropriate for the individual. 
     
  (b)  The MRA may request a case management waiver in accordance with TXMHMR 
procedures. 
   
  (c) The case manager shall visit the individual as frequently as needed, but 
no less frequently than monthly. If the individual has an approved waiver, the 
visits shall be made quarterly. 
   
  (d) The MRA shall use visits and interviews with the individual and others, as 
well as observations, as the primary basis for collecting data and information 
to determine if the individual's choices and needs are being met across time and 
services. It is not the MRA's responsibility to monitor the facility to see if 
it meets the certification standards of another agency. 
   
  (e) Visits shall be documented on progress notes by the MRA and pertinent 
information shall be shared with the provider and, if needed, the assigned 
facility and the MRA staff administratively responsible for community living 
activities. 
 
  (1) Significant problems not resolved during the visit shall become a part of 
the MRA's system for problem analysis and monitoring. 
   
  (2)  The MRA shall maintain evidence of problem correction. Problems related 
to certification standards of another agency shall be reported to the 
appropriate staff in those agencies. 
   
  (3) Concerns regarding rights violations or abuse and neglect issues shall be 
reported in accordance with applicable laws and regulations. 
     
  (f) Visits shall be accomplished with the participation from the facility if 
considered by either party to be in the best interest of the individual. If the 
facility and the MRA accomplish this process together for the individual, it 
shall be a joint visit resulting in one progress note and one reporting process. 
   
  (g) Facility staff shall be invited to participate in the 30-day staffing and 
shall be available for on- going consultation and information. 
   
  (h) The regional monitor shall conduct a 30-day review, a 90-day review, and 
annual reviews, with follow-up reviews as necessary. 
   
  (i) Annually the MRA shall assess the individual using the Case Management 
Assessment format. The information shall be included in the individual's annual 
planning staffing. 
 
     
  sec.402.320. Guidelines for Changing County of Residence. 
 
  (a)  It is the preference of the department that where the individual lives in 
the community be the county of residence. Other considerations would include: 
 
  (1) preferences of the individual and family; 
   
  (2)  anticipated length of stay, if known, in the county; and 
   
  (3)  recommendations of the individual's treatment team. 
     
  (b) If a change in county of residence is indicated, staff requesting the 
change shall inform the affected MRAs in writing. 
   
  (c) Disagreements regarding a change in county of residence shall be resolved, 
whenever possible, by staff of the affected MRAs. If this is not possible, the 
matter shall be referred to the appropriate assistant deputy commissioner(s). 
   
  (d) Time limited change of county of residence are acceptable and must be 
documented with a memorandum of agreement between the MRAs. 
   
  (e) There shall be no "out of state" county of residence designations. If an 
out of state transfer is indicated the MRA shall contact the Office of Consumer 
Services and Rights Protection for assistance. 
   
  (f) The county of residence shall be recorded or updated in CARE. Only an 
individual's current MRA can change the county of residence in the CARE system. 
 
     
  sec.402.321. References.  Documents referenced in this subchapter include: 
 
  (1) Texas Health and Safety Code, Title 7, Chapters 591-596; 
   
  (2) Texas Administrative Code, Title 40, Part I, Chapter 27, concerning Texas 
Intermediate Care Facility/Mental Retardation (ICF/MR) Standards for 
Participation (rules of the Texas Department of Human Services); 
   
  (3) Chapter 402, Subchapter H of this title (relating to Placement Appeals 
Procedures-Mental Retardation Services; 
   
  (4)  Chapter 403, Subchapter K of this title (relating to Client-Identifying 
Information); 
   
  (5) Chapter 405, Subchapter D of this title (relating to Determination of 
Mental Retardation and Appropriateness for Admission to Mental Retardation 
Services); and 
   
  (6) Chapter 410, Subchapter A of this title (relating to Public Responsibility 
Committees). 
 
     
  sec.402.322. Exhibits.  The following exhibits are referenced in this 
subchapter and copies can be obtained by writing to Texas Department of Mental 
Health and Mental Retardation, P.O. Box 12668, Austin, Texas 78711: 
 
  (1) Exhibit A: Example of Memorandum of Agreement (MOA); and 
   
  (2) Exhibit B: Community Living Plan. 
 
     
  sec.402.323. Distribution. 
 
  (a) This subchapter shall be distributed to members of the Texas Board of 
Mental Health and Mental Retardation, deputy commissioners, associate deputy 
commissioners, assistant deputy commissioners, directors and section chiefs of 
Central Office, superintendents and directors of all department facilities, and 
board chairpersons and executive directors of all community mental health and 
mental retardation centers. 
   
  (b) The superintendent, director, or executive director shall ensure 
distribution of this subchapter to appropriate staff. 
   
  (c) A copy of this subchapter shall be made available upon request to any 
staff member; any individual with mental retardation; the individual's parent; 
counsel of record of any individual with mental retardation; or to any 
interested party. 
 
  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 October 27, 1993. 
 TRD-9331041 
  Ann K. Utley 
 Chairman 
 Texas Department of Mental Health and Mental Retardation 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 465-4670 
         
                   
  TITLE 31. NATURAL RESOURCES AND CONSERVATION 
 Part II. Texas Parks and Wildlife Department 
  Chapter 57. Fisheries 
  
  31 TAC sec.57.500 
 
  The Texas Parks and Wildlife Commission proposes an amendment to sec.57. 500, 
concerning the marking of vehicles that transport fish for commercial purposes. 
This amendment will correct a typographical error. 
 Robin Riechers, staff economist, 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. Riechers 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 simply correct a typographical error in the proclamation and will 
not effect the public. There will be no effect on small businesses. It is 
anticipated that there will be no fiscal implications to persons who are 
required to comply with the section as proposed. The Department has not filed a 
local employment impact statement with the Texas Employment Commission in 
compliance with the Administrative Procedure and Texas Register Act, sec.4A, as 
this agency has determined that the section as proposed will not impact local 
economics. 
 Comments on the proposal may be submitted to Charles Hensley, Director of Law 
Enforcement, Texas Parks and Wildlife Department, 4200 Smith School Road, 
Austin, Texas 75744; (512) 389-4845 or 1 (800) 792-1112, extension 4845. 
 The amendment is proposed under the Texas Parks and Wildlife Code, Chapter 66, 
sec.66.104, which provides the Texas Parks and Wildlife Commission with the 
authority to regulate the identification of vehicles transporting aquatic 
products. 
 Cross reference to statute: Parks and Wildlife Code, Chapter 47 
 
 
  sec.57.500. Marking of Vehicles. All motor vehicles, trailers, or semitrailers 
transporting fish for commercial purposes shall exhibit the inscription "fish" 
on the right, left, and rear sides of the vehicle. The inscription shall read 
from left to right and shall be plainly visible at all times while transporting 
fish. The inscription "fish" shall be attached to or painted on the vehicle, 
trailer, or semitrailer in <nl>block <ol> [black] arabic letters of good 
proportion in contrasting color to the background and be at least eight inches 
in height. 
 
  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 October 26, 1993. 
 TRD-9330981 
  Paul M. Shinkawa 
 Director, Legal Services 
 Texas Parks and Wildlife Department 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: 1 (800) 792-1112, Ext. 4433 or (512) 389-
4433 
         
               
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part III. Texas Youth Commission 
  Chapter 91. Discipline and Control 
  
  Disciplinary Practices 
 
  37 TAC sec.91.3 
 
  The Texas Youth Commission (TYC) proposes an amendment to sec.91.3, concerning 
rules of conduct, contraband, and dress. The amendment allows individual 
superintendents or the facility administrator with approval of the director of 
institutions or director of community services, to prohibit symbolic expressions 
that have been shown to precipitate violence or potentially violent behavior 
which presents an imminent peril to the health and safety of our youth, staff, 
and visitors. 
 John Franks, director of fiscal affairs, 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. Franks also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be a safe environment for TYC staff and visitors, and youth in the 
custody of the Texas Youth Commission. 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 Gail Graham, Policy and Manuals 
Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, 
Austin, Texas 78765. 
 The amendment is proposed under Human Resources Code, sec.61.034, which 
provides the Texas Youth Commission with the authority to make rules appropriate 
to the proper accomplishment of its functions. 
 
 
  sec.91.3. Rules of Conduct, Contraband and Dress. 
 
  (a) (No change.) 
   
  (b) Rules. 
 
  (1)-(4) (No change.) 
   
  (5) Symbolic Expression. 
 
  <nl>(A) A facility superintendent/<nl>facility administrator <ol> may adopt 
rules for the facility to prohibit any symbolic expression(s) that have been 
shown to precipitate violent behavior which endangers the safety of youth, staff 
or visitors at the facility. All rules adopted by a superintendent/ <nl>facility 
administrator<ol> and approved by the director of institutions/<nl>director of 
community services<ol> must be clearly communicated to each youth and posted at 
the same place as other rules set out in this policy. [Unless it is repealed 
earlier, the authority granted in this subsection expires on March 31, 1993.] 
   
  <nl>(B) When the symbolic expression rule is authorized by the director of 
institutions or director of community services for a specific facility, the 
superintendent or facility administrator shall semi-annually submit to the 
appropriate director a report to include at least: 
 
  <nl>(i)<nl> date rule approved and initiated; 
   
  <nl>(ii) <nl> date approved rule to expire; 
   
  <nl>(iii)<nl> impact of the rule on overall behaviors of the entire student 
population; 
   
  <nl>(iv) <nl> impact of the rule on behaviors of specific students to whom the 
rule is directed (include description of impact on violence); and 
   
  <nl>(v) <nl> anticipated length of rule extension. 
 
  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 October 22, 1993. 
 TRD-9330895 
  Jay Lindgren 
 Acting Executive Director 
 Texas Youth Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 483-5244 
         
                         
  TITLE 40. SOCIAL SERVICES AND ASSISTANCE 
 Part I. Texas Rehabilitation Commission 
  Chapter 103. Vocational Rehabilitation Services Program 
  
  Subchapter A. Provision of Vocational Rehabilitation Services 
 
  40 TAC sec.103.7 
 
  The Texas Rehabilitation Commission (TRC) proposes an amendment to sec.103. 7, 
concerning Mental Restoration Services. The purpose of the amendment is to 
conform to the Health and Human Services Commission Coordinated Strategic Plan 
by providing quality services to clients. 
 Charles Harrison, deputy commissioner, Financial and Planning Services, has 
determined that for the first five-year period the section is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the section. 
 Lena Jackson, program specialist, also has determined that for each year of the 
first five years the amendment is in effect the public benefits anticipated as a 
result of enforcing the section as proposed will be to emphasize the Texas 
Rehabilitation Commission's commitment to provide quality services to clients of 
the agency. 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. 
 Questions about the content of the proposal may be directed to Lena Jackson, 
Program Specialist, Programs Administration, at (512) 483-4113, in the Texas 
Rehabilitation Commission. Comments on the proposal may also be submitted to 
Lena Jackson, Program Specialist, Program Administration, Texas Rehabilitation 
Commission, 4900 North Lamar Boulevard, Suite 5413, Austin, Texas 78751-2399, 
within 30 days of publication in the Texas Register. 
 The amendment is proposed under the Human Resources Code, Title 7, which 
provides the Texas Rehabilitation Commission with the authority to make 
regulations governing personnel standards, the protection of records and 
confidential information, the manner and form of filing applications, 
eligibility, investigation, and determination for rehabilitation and other 
services, procedures for hearings, and other regulations subject to this 
section; as necessary to carry out the purposes of this chapter. 
 No codes or statutes are affected by the proposed amendment. 
 
 
  sec.103.7. Mental Restoration Services. 
 
  (a)-(c) (No change) 
   
  <nl>(d) The commission provides mental restoration services utilizing only 
physicians licensed by the State and skilled in the diagnosis and treatment of 
mental or emotional disorders, or psychologists licensed or certified in 
accordance with State law. 
 
  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 October 25, 1993. 
 TRD-9330996 
  Charles W. Schiesser 
 Associate Commissioner for Legal Services 
 Texas Rehabilitation Commission 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 483-4051 
         
                 Part III. Texas Commission on Alcohol and Drug Abuse 
  Chapter 147. Approved Drug Offender Education Program 
  
  General Provisions 
 
  40 TAC sec.sec.147.1, 147.2, 147.4 
 
  The Texas Commission on Alcohol and Drug Abuse proposes amendments to 
sec.147.1, 147.2, and 147.4, concerning Approved Drug Offender Education 
Programs. In sec.147.1 the definitions of approval period and drug offender are 
amended to include misdemeanor offenses. Section 147.2 amends the objective of 
the program to include misdemeanor offenses. Section 147.4 allows for an agency 
to submit payment for fees by an agency voucher. 
 Denise Hudson, director, fiscal services, has determined that there will be 
fiscal implications as a result of enforcing or administering the sections. For 
state and local government there is no known basis for calculating costs for 
each program. Costs will vary depending on the fees each program chooses to 
assess each participant. 
 Ms. Hudson 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 section will be the establishment of quality programming in drug offender 
education programs approved by the Texas Commission on Alcohol and Drug Abuse. 
The cost of compliance with the sections for small businesses will be unknown. 
There is no known basis for calculating costs. Cost will vary with each program 
depending on whether they raise the fee per participant to cover any additional 
costs incurred for complying. Cost for persons will vary depending on the fees 
each program chooses to assess each drug offender education program participant. 
Approximate costs to person will be $0-$125 for fiscal years 1994-1998. 
 Comments on the proposal may be submitted to Denise F. Mosel, Division 
Assistant, Texas Commission on Alcohol and Drug Abuse, 710 Brazos Street, 
Austin, Texas 78701-2576. 
 The amendments are proposed under Texas Civil Statutes, Article 6687b, sec.24B, 
which provide the Texas Commission on Alcohol and Drug Abuse with the authority 
to promulgate written rules and regulations setting forth minimum standards for 
the operation of approved drug offender education programs for persons convicted 
of certain drug offenses and who must complete an approved drug offender 
education program in order to have the driver's license reinstated. 
 The statute affected by these rules is Texas Civil Statutes, Article 6687b, 
sec.24B. 
 
 
  sec.147.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly states 
otherwise: 
   
   Approval period -That period of time beginning with the date the approval was 
granted and <nl>ending August 31 of every odd-numbered year<ol> [is valid for 
two years from the date of issurance]. 
   
   Drug offender-A person convicted of a <nl>misdemeanor or<ol> felony offense 
under the Controlled Substances Act (21 United States Code, sec.321 et seq), 
<nl>a drug <ol> [felony] offense as assigned by 23 United States Code, 
<nl>sec.159(c) and includes an offense under Texas Civil Statutes, Article 
6701l-1, or the Penal Code, sec.19.05(a)(2) committed as a result of the 
introduction into the body of any substance the possession of which is 
prohibited under the Controlled Substances Act, <ol>[sec. 104, as amended by 
Public Law Number 101-516, sec.333,] or a felony under the Texas Health and 
Safety Code, Chapter 481<nl>, that is not a drug offense<ol>. 
 
   
  sec.147.2. Objective.  The intent of the commission by adoption of this 
chapter and in cooperation with the Department of Public Safety is to promulgate 
written rules, regulations, and standards reflecting minimum standards for the 
uniform operation of programs designed to educate persons on the dangers of drug 
abuse. Adoption of these rules is authorized by Texas Civil Statutes, Article 
6687b, sec.24B, which provide that persons convicted of  <nl>a misdemeanor 
or<ol> felony drug <nl>offense <ol> [offenses] must attend and successfully 
complete an educational program approved by the commission designed to educate 
persons on the dangers of drug abuse prior to having their driver's licenses 
reinstated. 
 
   
  sec.147.4. Fees. 
 
  (a)-(c) (No change.) 
   
  (d)  Remittances submitted to the commission in payment of fees may be in the 
form of cashier's check<nl>, <ol>[or] money order<nl>, or agency voucher<ol>. 
 
  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 October 26, 1993. 
 TRD-9330957 
  David P. Tatum 
 Executive Director 
 Texas Commission on Alcohol and Drug Abuse 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 867-8720 
         
             
  Drug Offender Education Program Standards 
 
  40 TAC sec.147.33 
 
  The Texas Commission on Alcohol and Drug Abuse proposes an amendment to 
sec.147.33, concerning Approved Drug Offender Education Programs. The amendment 
adds misdemeanor offenses in order to comply with the Texas Civil Statutes, 
Article 6687b, sec.24B. 
 Denise Hudson, director, fiscal services, has determined that there will be 
fiscal implications as a result of enforcing or administering the sections. For 
state and local government there is no known basis for calculating costs for 
each program. Costs will vary depending on the fees each program chooses to 
assess each participant. 
 Ms. Hudson 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 section will be the establishment of quality programming in drug offender 
education programs approved by the Texas Commission on Alcohol and Drug Abuse. 
The cost of compliance with the sections for small businesses will be unknown. 
There is no known basis for calculating costs. Cost will vary with each program 
depending on whether they raise the fee per participant to cover any additional 
costs incurred for complying. Cost for persons will vary depending on the fees 
each program chooses to assess each drug offender education program participant. 
Approximate costs to person will be $0-$125 for fiscal years 1994-1998. 
 Comments on the proposal may be submitted to Denise F. Mosel, Division 
Assistant, Texas Commission on Alcohol and Drug Abuse, 710 Brazos Street, 
Austin, Texas 78701-2576. 
 The amendment is proposed under Texas Civil Statutes, Article 6687b, sec.24B, 
which provide the Texas Commission on Alcohol and Drug Abuse with the authority 
to promulgate written rules and regulations setting forth minimum standards for 
the operation of approved drug offender education programs for persons convicted 
of certain drug offenses and who must complete an approved drug offender 
education program in order to have the driver's license reinstated. 
 The statute affected by this rule is Texas Civil Statutues, Article 6687b, 
sec.24B. 
 
 
  sec.147.33. Program Admission. <ol> The following persons are eligible for 
admission to an Approved Drug Offender Education Program: 
 
  (1) any person convicted of a <nl>misdemeanor or<ol> felony offense under the 
Controlled Substances Act (21 United States Code, sec.321 et seq); <nl>a 
drug<ol> [felony] offense as assigned by 23 United States Code, <nl>sec.159(c) 
and includes an offense under Texas Civil Statutes, Article 6701l-l, or the 
Penal Code,  s19.05(a)(2), committed as a result of the introduction into the 
body of any substance the possession of which is prohibited under the Controlled 
Substances Act, <ol> [sec. 104, as amended by Public Law Number 101-516, sec. 
333,] or a felony under the Texas Health and Safety Code, Chapter 481 <nl>, that 
is not a drug offense <ol>; and 
   
  (2) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on October 26, 1993. 
 TRD-9330956 
  David P. Tatum 
 Executive Director 
 Texas Commission on Alcohol and Drug Abuse 
    Earliest possible date of adoption: December 3, 1993 
 For further information, please call: (512) 867-8720 
         
    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 Act, the Government Code, Chapter 2001, 
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, of the Texas Department of Insurance, at a Board 
meeting scheduled for 9:00 a.m., November 17, 1993 in Room 100 of the Texas 
Department of Insurance Building, 333 Guadalupe Street in Austin, will consider 
a forms filing by the Texas Department of Banking (Department) for a new surety 
bond form entitled "BOND FOR WITHDRAWAL OF EXCESS FUNDS, Form Number 
092293.WEF". This bond form is required by Acts of the 73rd Legislature. 
 The proposed new BOND FOR WITHDRAWAL OF EXCESS FUNDS, Form Number 092293. WEF 
(the Bond) is required by the revisions to Texas Civil Statutes, Article 548b, 
sec.5, (the Act). The Act allows a permit holder who sells prepaid funeral 
benefits or contracts to withdraw from trust accounts excess earnings that 
exceed 110% of all sums paid by purchasers of contracts. Certain documentation 
and specific criteria must be furnished to the Department for approval of the 
withdrawal. Permit holders must either have an unqualified opinion by a 
certified public account of an audited financial statement within 18 months of 
application or an audited financial statement with a qualified opinion which is 
accompanied by the Bond in an amount equal to the amount of the requested 
withdrawal. The Bond will be written in favor of the Commissioner of the 
Department and shall be reduced on an annual basis by an amount equal to ten 
percent per year. 
 The Act further provides the Commissioner shall approve an application to 
withdraw excess earnings unless the Commissioner determines that the seller's 
ability to deliver the contracted services and merchandise would be materially 
jeopardized by the withdrawal due to: (1) the amount of the requested withdrawal 
exceeds the net worth of the seller, however, the Commissioner may approve the 
withdrawal if the application is accompanied by the Bond. Such bond shall be 
reduced on an annual basis by an amount equal to 20% per year; (2) if the seller 
has experienced a net loss from operations in any of the last three years; 
however, the Commissioner may approve the withdrawal if accompanied by the Bond. 
Such bond shall be reduced on an annual basis by an amount equal to 10% per 
year; and (3) if the contingent liabilities other than commitments disclosed on 
the face of the seller's audited financial sheet exceeds the seller's net worth 
as of the date of the financial statement; however, again, the Commissioner may 
approve the withdrawal if accompanied by the Bond. Such bond shall be reduced on 
an annual basis by an amount equal to 10% per year. There are numerous other 
reasons that do not have the Bond as an option that would allow the Commissioner 
to deny a withdrawal. 
 Copies of the full text of the proposed bond form for the Texas Department of 
Banking 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-0993-23). 
 This notification is made pursuant to the Insurance Code, Article 5.97, which 
exempts the Board's action on this filing from the requirements of the 
Government Code, Chapter 2001. 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure 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 October 26, 1993. 
 TRD-9330998 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6327 
         
   
  The State Board of Insurance, at a Board hearing scheduled for 9:00 a.m. , 
December 2, 1993, in Room 100 of the Texas Department of Insurance Building, 333 
Guadalupe Street in Austin, will consider adoption of revisions to the Texas 
Basic Manual of Rules, Classifications and Rates for Workers' Compensation and 
Texas Experience Rating Plan Manual as proposed by the staff of the Workers' 
Compensation Division of the Texas Department of Insurance. 
 The revisions as proposed by staff combine the Texas Basic Manual of Rules, 
Classifications and Rates for Workers' Compensation and Employers Liability 
Insurance and the Texas Experience Rating Plan Manual into one manual entitled 
Texas Workers' Compensation Manual of Rules, Classifications, Endorsements and 
Experience Rating ("Manual"). The proposed re-writing and revising of the manual 
includes but is not limited to the following: (1) editorial changes necessary 
because the State Board of Insurance no longer sets Workers' Compensation rates; 
(2) the elimination of Texas from interstate rating for employers with 
operations in states other than Texas; (3) amendments to various classification 
footnotes due to the changes adopted to the classification system; (4) proposal 
of a rule concerning applying initial and renewal experience modifier if 
modifier is calculated during the applicable policy period; (5) proposal of a 
rule for calculation of a contingent modifier based on experience available at 
the time of calculating the experience modifier; and (6) proposed change in rule 
pertaining to employer who leaves an employee leasing arrangement. 
 A copy of the petition containing the full text of the proposed amendments 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 
(512) 322-4147, (refer to Reference Number W-1093-26-I). 
 The staff and the State Board of Insurance request that written comments to 
these proposed amendments be submitted to the office of the Chief Clerk prior to 
the public hearing on December 2, 1993. Public testimony at the public hearing 
on December 2, 1993, is also invited. 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure Act. 
 This notification is made pursuant to the Insurance Code, Article 5.96, which 
exempts it from the requirements of the Administrative Procedure 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 October 27, 1993. 
 TRD-9331084 
  Linda K. von Quintus-Dorn 
 Chief Clerk 
 Texas Department of Insurance 
    For further information, please call: (512) 463-6327