ADOPTED 
 RULES 
 
 An agency may take final action on a section 30 days after a proposal has been 
published in the  Texas Register. The section becomes effective 20 days after 
the agency files the correct document with the  Texas Register, unless a later 
date is specified or unless a federal statute or regulation requires 
implementation of the action on shorter notice. 
 If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes. 
 
   
  TITLE 4. AGRICULTURE 
 Part II. Texas Animal Health Commission 
  Chapter 35. Brucellosis 
  
  Subchapter A. Eradication of Brucellosis in Cattle 
 
  4 TAC sec.35.1 
 
  The Texas Animal Health Commission adopts an amendment to sec.35.1, concerning 
definitions, without changes to the proposed text as published in the March 14, 
1995, issue of the Texas Register (20 TexReg 1810). 
 The amendment is necessary to define more clearly and add requirements for 
commuter herds. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the Texas Agriculture Code, sec.161.081, which 
provides the Texas Animal Health Commission with the authority to promulgate 
rules regarding the movement of animals into the state; and sec.163. 081, which 
provides the Commission with the authority to adopt rules that relate to the 
testing or vaccination of cattle or to the movement of cattle into and within an 
area. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505153 
  Terry Beals, DVM 
 Executive Director 
 Texas Animal Health Commission 
    Effective date: May 31, 1995 
 Proposal publication date: March 14, 1995 
 For further information, please call: (512) 719-0714 
         
       
  4 TAC sec.35.4 
 
  The Texas Animal Health Commission adopts an amendment to sec.35.4, concerning 
entry of cattle into Texas, with changes to the proposed text as published in 
the March 14, 1995, issue of the Texas Register (20 TexReg 1810). 
 The Commission adopts the proposal with changes to the proposed text that would 
impose additional entry requirements on cattle entering Texas from Montana, 
Idaho and Wyoming. 
 The amendment is necessary to allow non-vaccinated female cattle between four 
and 12 months of age to enter a feedlot for feeding for slaughter. If from other 
than Class Free states, these cattle must be "F"-branded prior to or upon entry 
into the feedlot whether for feeding or for slaughter. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the Texas Agriculture Code, sec.161.081, which 
provides the Texas Animal Health Commission with the authority to promulgate 
rules regarding the movement of animals into the state. 
 No other code or article is affected by this amendment. 
 
 
  sec.35.4. Entry and Change of Ownership. 
 
  (a) (No change.) 
   
  (b) Requirements for cattle entering Texas from other states. 
 
  (1) Vaccination. All female cattle between four and 12 months of age shall be 
officially vaccinated prior to entry. Exceptions to these vaccination 
requirements. 
 
  (A) Female cattle entering for purposes of shows, fairs and exhibitions. 
   
  (B) Female cattle moving within commuter herds. 
   
  (C) Spayed heifers. 
   
  (D) Non-vaccinated female cattle between four and 12 months of age consigned 
from an out-of-state farm of origin will be accompanied by a waybill to a Texas 
market, feedlot for feeding for slaughter or direct to slaughter. These cattle 
may be vaccinated at the market at no expense to the state prior to leaving the 
market and be moved freely. If these cattle are not vaccinated at the market 
then they shall be consigned from the market only to a feedlot for feeding for 
slaughter or direct to slaughter accompanied by an "S" permit. Cattle from other 
than Class Free states entering for feeding for slaughter shall also be "F"-
branded high on the tail-head prior to or upon entering the feedlot. 
   
  (E) Non-vaccinated female cattle between four and 12 months of age consigned 
from an out-of-state livestock market to a Texas livestock market, feedlot for 
feeding for slaughter or direct to slaughter will be accompanied by an "S" 
permit or certificate of veterinary inspection. Individual identification is not 
required. These cattle may be vaccinated at no expense to the state prior to 
leaving the market and be moved freely. If these cattle are not vaccinated at 
the market then they shall be consigned from the market only to a feedlot for 
feeding for slaughter or direct to slaughter, accompanied by an "S" permit. 
Cattle from other than Class Free states entering for feeding for slaughter 
shall also be "F"-branded high on the tail-head prior to or upon entering the 
feedlot. 
   
  (F) Non-vaccinated female cattle between four and 12 months of age moving may 
enter on a calfhood vaccination permit and must be vaccinated at no expense to 
the state within 14 days after arriving at the premise of destination. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505152 
  Terry Beals, DVM 
 Executive Director 
 Texas Animal Health Commission 
    Effective date: May 31, 1995 
 Proposal publication date: March 14, 1995 
 For further information, please call: (512) 719-0714 
         
                       
  TITLE 19. EDUCATION 
 Part VI. Foundation School Budget Committee 
  Chapter 203. Cost of Education Index 
  
  The Foundation School Fund Budget Committee adopts amendments to sec.sec.203. 
1, 203.20, and 203.25, and repeal sec.203.15, concerning the cost of education 
index (CEI), an adjustment to the formula allocations of public school 
districts. The amendments to sec.203.1 and sec.203.20 are adopted with changes 
to the proposed text as published in the October 28, 1994, issue of the Texas 
Register (19 TexReg 8578). The amendment to sec.203.25 is adopted without 
changes and will not be republished. 
 The amendments to the rule make the existing cost of education index applicable 
for the 1995-1996 and 1996-1997 school years. The changes, which are the result 
of the comments received, retain an adjustment for small districts with fewer 
that than 2,000 ADA that are not eligible for the small district adjustment in 
the Texas Education Code, sec.16.103. 
 The repeal of sec.203.15 reflects the statutory change to the Texas Education 
Code, sec.16.103, which promulgates separate formulas for small district 
adjustments. Districts not eligible for the small district adjustment in 
sec.16.103 are accounted for in the change to sec.203.20. 
 On November 10, 1994, designees of the Committee held a joint public hearing 
with the Legislative Budget Office regarding the proposed rules. Three persons 
gave oral testimony at the hearing and two written responses were received. 
 COMMENT: Small districts that have more than 1,600 students experience 
diseconomies of scale. A size adjustment should be made for districts up to at 
least 2,000 students. 
 RESPONSE: The Committee adopts a change to sec.203.20 to incorporate this 
recommendation. 
 COMMENT: The proposed Educational Development Index lacks a sound theoretical 
base when it links the compensatory and bilingual allotments with the cost of 
education index. 
 RESPONSE: This comment concerns a recommendation in the Legislative Budget 
Board's report. The Committee's rules do not incorporate this recommendation of 
the LBB. This is an issue for the legislature as it would require a statutory 
change. 
 COMMENT: The current cost of education index should be readopted, although 
consideration should be given to adopting the updated formulas. 
 RESPONSE: The Committee's rules readopt the current cost of education index. 
The Texas Education Agency's update was considered. 
 COMMENT: Do not sunset the cost of education index adopted for the upcoming 
biennium and direct the staff to do more research on funding programs for "at-
risk" students. 
 RESPONSE: The Committee is required by statute to act prior to each regular 
legislative session to adopt the cost of education index and other equalized 
funding elements for the next biennium. The issue of how programs are funded for 
"at-risk" students is a legislative issue. 
 Dr. Wayne Pierce of the Texas Association of Mid-Sized Schools, Dan Casey of 
the Texas Association of School Boards, and Lynn Moak of the Texas School 
Alliance made oral recommendations in support of the Committee adopting a cost 
of education index; however they recommended modifications to the Committee's 
proposed rules. Representative Kip Averitt's letter also called for modification 
to the Committee's proposal. The Association of Texas Professional Educators 
provided written comments which did not directly address the cost of education 
index. The Texas Association of School Boards, the Texas Association of School 
Administrators, the Congress of Parents and Teachers, and the Texas Association 
of Community Schools were also in favor of modifications to the Committee's 
proposed rules. 
   
  19 TAC sec.sec.203.1, 203.20, 203.25 
 
  The amendments are adopted under the Texas Education Code, sec.16.256, which 
provides the Committee with the authority to promulgate rules. 
 
 
  sec.203.1. General Provisions.  This rule establishes a formula for the 
calculation of each public school district's cost of education index which will 
be used by the Central Education Agency in determining each district's state aid 
for the 1995-1996 and 1996-1997 school years. The cost of education index shall 
adjust for cost variations caused by factors beyond the control of school 
districts. An adjustment is made for small districts with fewer than 2,000 ADA 
that are not eligible for the small district adjustment in the Texas Education 
Code, sec.16.103. 
 
   
  sec.203.20. Computation of Cost of Education Index.  A district's cost of 
education index adjustment for the 1995-1996 and 1996-1997 school years shall be 
computed by the commissioner of education by calculating each district's cost 
adjustment in sec.203.10. If a school district has more than 1,600 students but 
not more than 2,000 students in average daily attendance (ADA), the commissioner 
shall modify the cost adjustment in sec.203. 10 by multiplying it by the 
following size factor: 1.0 + ((2000 - ADA) * . 00014). 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505133 
  Al Gonzales 
 General Counsel, Office of the Governor 
 Foundation School Budget Committee 
    Effective date: September 1, 1995 
 Proposal publication date: October 28, 1994 
 For further information, please call: (512) 463-1750 
         
         
  19 TAC sec.203.15 
 
  The repeal is adopted under the Texas Education Code, sec.16.256, which 
provides the Committee with the authority to promulgate rules. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505134 
  Al Gonzales 
 General Counsel, Office of the Governor 
 Foundation School Budget Committee 
    Effective date: September 1, 1995 
 Proposal publication date: October 28, 1994 
 For further information, please call: (512) 463-1750 
         
         Chapter 205. Equalized Funding Elements 
  
  19 TAC sec.sec.205.1, 205.11, 205.21, 205.31, 205.41, 205.51, 205. 61 
 
  The Foundation School Fund Budget Committee (FSFBC) adopts new sec.sec.205.1, 
205.11, 205.21, 205.31, 205.41, 205.51, and 205.61, concerning equalized funding 
elements for the Foundation School Program, without changes to the proposed text 
as published in the October 28, 1994, issue of the Texas Register (19 TexReg 
8579). 
 On November 10, 1994, designees of the Committee held a joint public hearing 
with the Legislative Budget Office regarding the proposed rules. Three persons 
gave oral and written testimony at the hearing and two other written responses 
were received. 
 COMMENT: Small districts that have more than 1,600 students experience 
diseconomies of scale. A size adjustment should be made for districts up to at 
least 2,000 students. 
 RESPONSE: The Committee incorporated this recommendation by adopting a change 
to sec.203.20 of this title. 
 COMMENT: The proposed Educational Development Index lacks a sound theoretical 
base when it links the compensatory and bilingual allotments with the cost of 
education index. 
 RESPONSE: This comment concerns a recommendation in the Legislative Budget 
Board's report. The Committee's rules do not incorporate this recommendation of 
the LBB. This is an issue for the legislature as it would require a statutory 
change. 
 COMMENT: The current cost of education index should be readopted, although 
consideration should be given to adopting the updated formulas. 
 RESPONSE: The Committee's rules readopt the current cost of education index. 
The Texas Education Agency's update was considered. 
 COMMENT: Do not sunset the cost of education index adopted for the upcoming 
biennium and direct the staff to do more research on funding programs for "at-
risk" students. 
 RESPONSE: The Committee is required by statute to act prior to each regular 
legislative session to adopt the cost of education index and other equalized 
funding elements for the next biennium. The issue of how programs are funded for 
at-risk students is a legislative issue. 
 COMMENT: The LBB's study, "Report to the Foundation School Fund Budget 
Committee" and the Foundation School Fund Budget Committee's proposed rules do 
not take into account the adequacy provisions of the Texas Education Code, 
sec.16.001(a) and  sec.16.256(e)(1). The later reference states that the basic 
allotment represents the cost per regular program student that meets the basic 
criteria for an accredited program including all mandates of law and regulation. 
The LBB's report of two years ago recommended a basic allotment of approximately 
$3,000 as necessary for a regular program, whereas the $2,300 basic allotment in 
the proposed rule is just a continuation of current law. The state should move 
toward the higher level of funding. 
 RESPONSE: The district court in Edgewood IV stated that the finance system 
should be considered as a whole and not judged on each individual component. The 
LBB's report of two years ago recommended a funding level for the first and 
second tiers of $3,385 per weighted pupil. The funding level for the first and 
second tiers in the Committee's rules exceeds $3,600 per weighted pupil. The 
LBB's report also recommended a $1.15 local share tax rate for the first tier. 
The Committee no longer has any authority regarding the local share tax rate. 
Furthermore the study recommended an equalized program up to $1.37 tax rate, 
with an unequalized third tier above $1.37 tax rate. A large third tier such as 
this would be detrimental to the equity of the system; the Committee's rules 
equalize up to $1.50 effective tax rate. The issue of a large first tier and a 
smaller second tier should be addressed by the legislature. Given that the 
legislature repealed the Texas Education Code, Titles Title 1 and 2, except 
Chapters 16, 20, and 36, effective September 1, 1995, the appropriate level for 
the basic allotment to fund all mandates of law and regulation should be 
addressed by the Seventy-fourth Legislature when it enacts a new education code. 
 COMMENT: The review of equity merits further analysis and discussion. A 
sensitivity analysis should be done that examines the potential variation in 
revenue per student between districts on measures such as the percent of 
students in the equalized system and the amount of equalized revenue in the 
system. 
 RESPONSE: The Legislative Budget Office can perform additional analyses. 
 COMMENT: Given that property wealth is now limited to $280,000 per weighted 
student and that most districts are limited to a maintenance and operations tax 
rate of $1.50, districts will be limited to roughly $5,400 per unweighted ADA. 
One of the findings is likely to be that without some modification to these 
limits in the future, districts will be in a situation where no district in the 
state will have the capacity to spend at the national average per student, even 
at their maximum tax rate. In addition, districts with "new" debt are further 
limited by the Section 20.09 tax rate limit for M & O and new debt service. A 
thorough examination of these issues is needed over the next several years to 
analyze the impact of these limits on the state's educational program. 
 RESPONSE: The analysis that no district in the state will have the capacity to 
spend at a level equivalent to the national average is questionable. 
Nevertheless, the limits on property wealth and tax rates are set by statute and 
should be addressed by the legislature. Additional state funding, which would 
alleviate the situation to some degree, was considered. 
 COMMENT: Research needs to be updated for the regular education program 
allotment, the CEI, bilingual education allotment, compensatory education 
allotment, other special population program allotments, transportation 
allotment, technology allotment, and the teacher compensation allotment. 
 RESPONSE: The statutory requirements for these studies were repealed by the 
legislature. The Foundation School Fund Budget Committee itself does not have a 
full-time staff to conduct the level of research suggested. 
 COMMENT: Repealing the CEI and PDI committees made the process weaker. Possibly 
the legislature should repeal this part of the education code if the process is 
going to be a trifle. 
 RESPONSE: The level of research declined after the legislature repealed the 
committees and studies that were in statute. The decision to repeal the process 
is a legislative issue. 
 COMMENT: The changes to the Texas Education Code, sec.16.151 relating to 
special education arrangements and limits thereon were not part of a study of 
special education, but were a political decision to change the behavior of 
school districts. 
 RESPONSE: These changes were enacted by statute and are a legislative issue. 
 COMMENT: The maximum guarantee in the second tier should be set at a level to 
achieve an exemplary program. 
 RESPONSE: The concept that the level of the second tier should reflect an 
exemplary educational program was a statutory provision which was repealed by 
the legislature. This is a political decision which should be considered by the 
legislature. 
 COMMENT: Is the Committee called on to adopt capital outlay and debt service 
formulas? 
 RESPONSE: The statute directs the Committee to adopt formula elements for the 
funding formulas in the Texas Education Code, Chapter 16, Subchapter I. The only 
funding formulas currently in Chapter 16 pertaining to capital outlay and debt 
service are those in Subchapter H, which are addressed by the Committee's rule. 
The Committee recommends that the legislature adopt an explicit formula above 
the level of the second tier for equalizing facilities. 
 COMMENT: Concern was expressed about the enrollment projections being based on 
past experience and not giving adequate consideration to factors such as 
economic growth and NAFTA. 
 RESPONSE: Changes due to NAFTA will take place over a number of years; some of 
those effects will be captured in current data. Fall 1994 enrollments are not 
yet available to the Committee, but the legislature will receive an update on 
student counts in March 1995 prior to enacting the appropriations bill. Senate 
Bill 7 eliminated proration, so in the event that the estimates used by the 
legislature prove to be low, districts will be entitled to a credit for the 
additional funding earned by the higher student counts. 
 COMMENT: The extended year program for students at-risk of being retained in 
grade is an integral part of Chapter 16 and should be included, although the 
cost estimates of the Texas Education are probably too high. 
 RESPONSE: The extended year program is set forth in the Texas Education Code, 
Chapter 21 and generates automatic funding under the definition of average daily 
attendance. Chapter 21 was repealed by the legislature effective September 1, 
1995, and the scope of this program may be more fully debated by the 74th 
Legislature if it is re-enacted. The extended year program was considered. 
 COMMENT: In place of a basic allotment of $2,300 and a guaranteed yield of 
$20.55, the Committee should adopt higher numbers which would offset the 
increased property value growth estimated by the Comptroller of Public Accounts 
for 1994 and 1995. This proposed modification is necessary to prevent an 
estimated $400 million reduction in state aid which will take place as a 
function of increased property value statewide. Failure to make these 
modifications will increase reliance on local property tax revenues and lead 
directly to additional equity concerns. 
 RESPONSE: There is an inverse relationship between property values and state 
aid. All other factors being the same, as property values decline, state aid 
increases, and vice versa. Increases to the basic allotment and/or the 
guaranteed yield were considered. 
 COMMENT: Although there is no research on the issue, the weighting for the 
second tier should include 100% of the cost of education index, not 50%. 
 RESPONSE: The decision to include half of the cost of education index in the 
calculation of weighted students was a political compromise of the legislature. 
Given that there is no research on this issue, the Committee yields to the 
decision of the legislature. 
 COMMENT: The Committee should adopt a weight of 5.0 for special education, 
state schools. The 5.0 state schools weight is based upon the Texas Education 
Agency's research at the time of the creation of this weight. 
 RESPONSE: The Texas Education Agency was unable to produce a copy of the 
ascribed research. Furthermore, Senate Bill 7, enacted by the Seventy-Third 
Legislature, amended the Texas Education Code, sec.16.151(b). This section 
explicitly directs the State Board of Education to establish rules with a weight 
of 2.8 for students with disabilities residing in state schools. The Committee 
yields to the decision of the legislature in this case. 
 COMMENT: The Committee should adopt a weight of .24 for compensatory education. 
This weight was recommended by the Legislative Budget Board and Legislative 
Education Board study in 1992. 
 RESPONSE: The current statute distributes compensatory education allocations on 
the basis of students in the free-and-reduced price lunch program, and districts 
have broad discretion over expenditure of these funds. The Legislative Budget 
Board/Legislative Education Board recommended that each student served  by the 
compensatory education program should have an add-on weight of .24. The study 
was also critical of the weak link between the funds for compensatory education 
and the services offered, and criticized the lack of objectives and assessments 
for these programs. The Committee has no information on the number of students 
served or the actual level of compensatory education services that is funded by 
the compensatory allocation. The Committee has no statutory authority to change 
the formula so that it is based on the number of students served. The commenter 
should address this issue with the legislature. 
 COMMENT: The Committee should adopt a weight of .40 for bilingual education. 
This weight was recommended by the Legislative Budget Board and Legislative 
Education Board study in 1992. 
 RESPONSE: The LBB/LEB report states, "The analysis of bilingual education 
appeared to indicate that the cost per student served would be $974 above the 
regular program cost, for an add-on weight of 0.30 in the 1994 school year. 
There is concern that bilingual funds were not properly coded in the PEIMS 
system, and that these numbers reflect the entire cost of educating a student in 
a bilingual program, rather than representing only the marginal cost. There is 
also an on-going effort to develop a dual language program for all students. 
Staff is proposing no change in the bilingual weight (currently 0.10) until 
PEIMS coding issues are resolved and a study of the cost of implementing a dual 
language proposal is completed." No evidence could be found to indicate that the 
PEIMS coding problem had been corrected in order to determine the true level of 
marginal costs that should be reflected in the weight. 
 Dan Casey of the Texas Association of School Boards, and Lynn Moak of the Texas 
School Alliance made oral recommendations in support of the Committee adopting 
rules for the equalized funding elements; however they recommended modifications 
to the Committee's proposed rules. Mr. Casey and Mr. Moak also provided comments 
in writing. Dr. Wayne Pierce of the Texas Association of Mid-Sized Schools 
recommended modifications to the proposed cost of education index. 
Representative Kip Averitt's letter also called for modification to the 
Committee's proposal. The Association of Texas Professional Educators provided 
written comments. The Texas Association of School Boards, the Texas Association 
of School Administrators, the Congress of Parents and Teachers, and the Texas 
Association of Community Schools were also in favor of modifications to the 
Committee's proposed rules. 
 The new rules are adopted under the Texas Education Code, sec.16.256, which 
provides the Committee with the authority to promulgate rules. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505135 
  Al Gonzales 
 General Counsel, Office of the Governor 
 Foundation School Budget Committee 
    Effective date: September 1, 1995 
 Proposal publication date: October 28, 1994 
 For further information, please call: (512) 463-1750 
         
             
  TITLE 22. EXAMINING BOARDS 
 Part XXVIII. Executive Council of Physical Therapy and Occupational Therapy 
Examiners 
  Chapter 651. Fees 
  
  22 TAC sec.651.2 
 
  The Executive Council of Physical Therapy and Occupational Therapy Examiners 
adopts new sec.651.2, concerning Physical Therapy Board Fees, without changes to 
the proposed text as published in the March 7, 1995, issue of the Texas Register  
(20 TexReg 1614). 
 This new rule is being adopted to comply with the law under which the Executive 
Council of Physical Therapy and Occupational Therapy Examiners was given the 
authority and responsibility for setting fees for the Physical Therapy Board. 
 This new rule sets fees for services provided by the Texas Board of Physical 
Therapy Examiners. 
 No comments were received regarding adoption of this rule. 
 The new rule is adopted under Texas Civil Statutes, Article 4512e-1, which 
provide Executive Council of Physical Therapy and Occupational Therapy Examiners 
with the authority to promulgate rules. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 27, 1995. 
 TRD-9505087 
  John P. Maline 
 Executive Director 
 Executive Council of Physical Therapy and Occupational Therapy Examiners 
    Effective date: May 18, 1995 
 Proposal publication date: March 7, 1995 
 For further information, please call: (512) 443-8202 
         
             
  TITLE 25. HEALTH SERVICES 
 Part I. Texas Department of Health 
  Chapter 157. Emergency Medical Care 
  
  The Texas Department of Health adopts the repeal of existing sec.sec.157. 101-
157.113; new sec.157.101; and an amendment to sec.157.121, concerning the new 
Emergency Health Care Advisory Committee. Section 157.101 is adopted with 
changes to the proposed text as published in the December 2, 1994, issue of the  
Texas Register (19 TexReg 9455). The repeal of sec.sec.157.101-157.113 and the 
amendment to sec.157.121 are adopted without changes and therefore the text of 
sec.157.121 will not be republished. 
 The repeals, amendment, and new section establish a new advisory committee to 
the Texas Board of Health (board) by consolidating three committees that have 
advised the board on emergency medical services (EMS) including pediatric 
patients and hospital administrative and operational considerations relating to 
EMS/trauma systems development and facility designation. The purpose of 
consolidating the committees' functions is to promote efficiency, decrease 
duplication, promote objectivity and increase statewide coordination and 
networking. 
 The following comments were received concerning the proposed repeals, 
amendment, and new section. 
 Comment: Concerning sec.157.101(f), four commenters requested that a 
representative with injury prevention expertise be added to the committee. The 
commenters stated that injury prevention must be an important component of any 
trauma care plan and leadership for injury prevention efforts should be from the 
Bureau of Emergency Management and the advisory committee. 
 Response: While the department agrees with the commenters' statements about the 
importance of an injury prevention focus, it disagrees with the addition of a 
specialist to the committee. Injury prevention is an integral component of all 
bureau activities. 
 Comment: Concerning sec.157.101(f), five commenters requested the addition of a 
rehabilitation specialist to the committee explaining that the ultimate goal for 
a trauma patient is reintegration into society at the highest level of 
functioning. 
 Response: The department agrees that rehabilitation is critical in the 
continuum of care, however, it disagrees that a specialist needs to be added to 
the committee. Comments regarding the importance of rehabilitation will be 
shared with the chair of the committee when he or she is making appointments to 
the subcommittee on trauma. 
 Comment: Concerning sec.157.101(f), 22 commenters expressed concern that there 
was no representation on the committee specific to fire departments. Commenters 
pointed out that the fire service provides either first response or emergency 
transport service to the majority of the population in this state. 
 Response: The department agrees and a fire department provider has been added 
to the composition of the committee. 
 Comment: Concerning sec.157.101(f), eight commenters felt that the various 
levels of EMS certificants should be represented on the committee. 
 Response: The department disagrees. Other certification levels can be 
represented on the standing EMS subcommittee. 
 Comment: Concerning sec.157.101(f), three commenters advised that the 
department should look to geographical representation on the committee. 
 Response: The department agrees and the board considers this criterium each 
time they review a committee appointment. 
 Comment: Concerning sec.157.101(f), 37 commenters voiced the opinion that an 
EMS physician (medical director) should be added to the committee since the 
roles of the emergency physician and that of the medical director are very 
different. Consequently their viewpoints on many issues differ. Among these 
comments were a few that felt the representative should be a full time medical 
director; while another commenter felt that directors from both an urban and 
rural area should be added to the committee. 
 Response: The department agrees and the section has been revised to include the 
addition of an EMS medical director. 
 Comment: Concerning sec.157.101(f), 16 commenters requested the addition of an 
EMS educator to the committee, commenting that the committee will be reviewing a 
number of rules that specifically address education concerns. One of these 
commenters suggested that the educator should be chosen from an institution of 
higher learning. 
 Response: The department disagrees. Representative positions already named to 
the committee could be EMS educators as well. Additionally, educator 
participation can be addressed within the EMS subcommittee. 
 Comment: Concerning sec.157.101(f), one commenter requested that another 
emergency physician be included in the committee. 
 Response: The department disagrees. Additions from this specialty can be 
considered when defining the make-up of the three standing subcommittees. 
 Comment: Concerning sec.157.101(f), five commenters asked for the addition of 
another EMS provider because they felt that EMS was underrepresented on the 
committee. 
 Response: The department agrees and has made this inclusion with the addition 
of a fire department representative. 
 Comment: Concerning sec.157.101(f), one commenter asked that a private transfer 
provider be included in the committee because so much transfer work is 
accomplished in the state by private providers. 
 Response: The department disagrees. A private transfer company will have the 
opportunity to apply for the provider position on the committee. Concerning 
sec.157.101(f), two commenters requested that a volunteer representative be 
added to the committee mentioning how much EMS work in the state is accomplished 
by volunteers. 
 Response: The department disagrees since there are four positions on the 
committee that could be filled by a volunteer. Also, volunteers can be 
considered for membership on subcommittees. 
 Comment: Concerning sec.157.101(f), four commenters thought that there should 
be representation from a first responder organization since they are part of the 
total continuum of care. 
 Response: The department disagrees that a position should be added to the 
committee, but agrees that the role of the first responder is an important one. 
 Comment: Concerning sec.157.101(f), one commenter requested that a 
representative be chosen from a recognized EMS association stating that this was 
needed to adequately address specific EMS issues. 
 Response: The department disagrees. Associations may nominate individuals for 
the positions on the committee and support their representation. 
 Comment: Concerning sec.157.101(f), five commenters wanted the addition of 
medical sub-specialties added to the committee composition. Specifically, 
pediatric surgery, neurosurgery, orthopedics and rehabilitation were 
recommended. One commenter indicated there should be two pediatricians on the 
committee. 
 Response: The department disagrees. Participation regarding specialty concerns 
can be considered at the subcommittee level. 
 Comment: Concerning sec.157.101(f), one commenter requested that the trauma 
nurse position be designated specifically for a trauma nurse coordinator. 
 Response: The department disagrees. A trauma nurse coordinator may apply for 
the trauma nurse position. The department believes that it is important to keep 
the representation as general as possible to allow for geographical 
consideration when making appointments. 
 Comment: Concerning sec.157.101(f), one commenter requested that the provider 
position be filled with a full time director. 
 Response: The department disagrees. All provider managers within Texas are 
charged with the same responsibilities so the provider representative should be 
left all inclusive. 
 Comment: Concerning sec.157.101(f), three commenters perceived a problem with 
having four consumer members on the committee and suggested lessening this 
amount and adding professional persons. They felt that there would be much time 
lost in educating these persons regarding the issues. 
 Response: The department disagrees. The legislature has called for a balance of 
consumers on advisory committees. 
 Comment: Concerning sec.157.101(f), one commenter felt that there should be 
another trauma surgeon added to the committee making the point that trauma 
activity is different than EMS. 
 Response: The department disagrees. Additional emphasis with primary focus on 
trauma issues will be dealt with in the trauma subcommittee. 
 Comment: Concerning sec.157.101(f), three commenters suggested that the 
department look at groups such as Mothers Against Drunk Driving, the Texas Head 
Injury Association, and American Association of Retired Persons when making the 
selection of the consumer representatives. 
 Response: The department agrees. Notices of the committee vacancies and 
applications will be sent to consumer organizations around the state. 
 Comment: Concerning sec.157.101(f), two commenters were concerned that the 
committee was weighted with hospital representation and suggested that more 
prehospital members should be added. 
 Response: The department feels that the commenters' concerns have been 
addressed with the addition of the fire department provider and EMS medical 
director to sec.157.101(f)(2)(I) & (J). 
 Comment: Concerning sec.157.101(f), one commenter stated that the rule should 
specify from which associations or organizations the nominations could be 
accepted. 
 Response: The department disagrees. When restricting the source of nominations, 
it is difficult to address other criteria such as geographical considerations. 
 Comment: Concerning sec.157.101(f), one commenter requested that a pediatric 
nurse be added to the committee. 
 Response: The department disagrees. Additional input on pediatric issues will 
be forthcoming from the pediatric subcommittee. 
 Comment: Concerning sec.157.101(p)(3), two commenters suggested that 
subcommittee members should be reimbursed for their expenses since their 
expertise is needed by the department. 
 Response: The department agrees that the expertise of the subcommittee members 
is extremely valuable, however, budgetary constraints demand volunteer 
participation. 
 Comment: Concerning sec.157.101(p)(2), one commenter felt that the restriction 
of not paying employees of other state agencies for being a committee member is 
unfair to state employees since their employers may not be willing to reimburse 
them for their participation on the committee. 
 Response: The department disagrees. The General Appropriations Act, sec.4.4, 
precludes a full time employee from being paid both a salary and compensatory 
per diem for concurrent service as a state employee and as a board or commission 
member. 
 Comment: Concerning sec.157.121(c), staff commented that Article 6252-33, 
Section 8(b) requires that the Texas Board of Health (board) reauthorize the 
Emergency Health Care Advisory Committee within four years from the date of its 
creation to prevent automatic abolishment of the committee. No statutory 
requirement exists for the Bureau of Emergency Management or the Emergency 
Health Care Advisory Committee review of the emergency medical services trauma 
systems rules on a three year basis. 
 Response: The department agrees and therefore sec.157.121(c) has been deleted. 
The following submitted comments on the proposed rules: sixty-four individuals; 
state Firemen's and Fire Marshals' Association; Texas Ambulance Association; 
South Plains EMS, Inc.; Tarrant County EMS Providers Association; and Texas 
Chapter of Emergency Physicians. 
 The commenters were generally in favor of the rules, however, they expressed 
concerns and issues relating to the changes. 
   
  Texas Emergency Medical Services Advisory Council 
 
  25 TAC sec.sec.157.101-157.113 
 
  The repeals are adopted under Health and Safety Code, sec.11.016, which 
provides the Board of Health with the authority to appoint advisory committees; 
and sec.12.001, which provides the board with the authority to adopt rules for 
the performance of every duty imposed by law on the board, the department, and 
the Commissioner of Health. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 25, 1995. 
 TRD-9505043 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Effective date: May 17, 1995 
 Proposal publication date: December 2, 1994 
 For further information, please call: (512) 458-7236 
         
         
  Advisory Committee 
 
  25 TAC sec.157.101 
 
  The new section is adopted under Health and Safety Code,  sec.11.016, which 
provides the Board of Health with the authority to appoint advisory committees; 
and sec.12.001, which provides the board with the authority to adopt rules for 
the performance of every duty imposed by law on the board, the department, and 
the Commissioner of Health. 
 
 
  sec.157.101. Emergency Health Care Advisory Committee. 
 
  (a)  The committee. An advisory committee shall be appointed under and 
governed by this section. 
 
  (1) The name of the committee shall be the Emergency Health Care Advisory 
Committee. 
   
  (2) The new advisory committee is promulgated under the provisions of Health 
and Safety Code, sec.11.016, which states the Texas Board of Health (board) may 
appoint advisory committees. 
     
  (b) Applicable law. The committee is subject to Texas Civil Statutes, Article 
6252-33 relating to state agency advisory committees. 
   
  (c)  Purpose. The purpose of the committee is to provide advice to the board 
in the following areas: 
 
  (1) needs of emergency medical services (EMS) in the state to include the 
specialized needs of pediatric patients; and 
   
  (2)  hospital administrative and operational considerations relating to 
EMS/trauma systems development and facility designation. 
     
  (d) Tasks. 
 
  (1) The committee shall advise the board concerning rules relating to EMS, 
EMS/Trauma systems development, and the specialized needs of the emergency 
pediatric patient. 
   
  (2) The committee shall carry out any other tasks given to the committee by 
the board. 
     
  (e) Review and duration. By May 1, 1999, the board will initiate and complete 
a review of the committee to determine whether the committee should be 
continued, consolidated with another committee, or abolished. If the committee 
is not continued or consolidated, the committee shall be abolished on that date. 
   
  (f)  Composition. The committee shall be composed of 14 members appointed by 
the board as follows: 
 
  (1) four shall be consumer members; and 
   
  (2) ten shall be non-consumer members as follows: 
 
  (A) an emergency physician; 
   
  (B) a provider of prehospital emergency medical services; 
   
  (C) an emergency medical technician (EMT), emergency medical technician-
intermediate (EMT-I) or emergency medical technician-paramedic (EMT-P); 
   
  (D) an emergency nurse; 
   
  (E) a pediatrician; 
   
  (F) a trauma surgeon; 
   
  (G) a trauma nurse; 
   
  (H) a facility administrator; 
   
  (I) a fire department provider; and 
   
  (J) an EMS medical director. 
       
  (g) Terms of office. The term of office of each member shall be six years. 
 
  (1) Members shall be appointed for staggered terms so that the terms of 
members will expire on December 31st of each even-numbered year. 
   
  (2) If a vacancy occurs, a person shall be appointed by the board to serve the 
unexpired portion of that term. 
     
  (h) Officers. The committee shall elect a presiding officer and an assistant 
presiding officer at its first meeting after August 31st of every year. 
 
  (1) Each officer shall serve until the next regular election of officers. 
   
  (2) The presiding officer shall: 
 
  (A) preside at all committee meetings at which he or she is in attendance; 
   
  (B) call meetings in accordance with this section; 
   
  (C) appoint subcommittees of the committee as necessary; 
   
  (D) cause proper reports to be made to the board; and 
   
  (E) may serve as an ex-officio member of any subcommittee of the committee. 
     
  (3) The assistant presiding officer shall perform the duties of the presiding 
officer in case of the absence or disability of the presiding officer. In case 
the office of presiding officer becomes vacant, the assistant presiding officer 
will serve until a successor is elected to complete the unexpired portion of the 
term of the office of presiding officer. 
   
  (4) A vacancy which occurs in the offices of presiding officer or assistant 
presiding officer may be filled at the next committee meeting. 
   
  (5) A member shall serve no more than two consecutive terms as presiding 
officer and/or assistant presiding officer. 
   
  (6) The committee may reference its officers by other terms, such as 
chairperson and vice-chairperson. 
     
  (i) Meetings. The committee shall meet at least twice annually and as 
necessary to conduct committee business. 
 
  (1) A meeting may be called by agreement of Texas Department of Health 
(department) staff and either the presiding officer or at least three members of 
the committee. 
   
  (2) Meeting arrangements shall be made by department staff. Department staff 
shall contact committee members to determine availability for a meeting date and 
place. 
   
  (3) Each meeting of the committee shall be announced and conducted in 
accordance with the Open Meetings Act, Texas Government Code, Chapter 551. 
   
  (4) Each member of the committee shall be informed of a committee meeting at 
least five working days before the meeting. 
   
  (5) A simple majority of the members of the committee shall constitute a 
quorum for the purpose of transacting official business. 
   
  (6) The committee is authorized to transact official business only when in a 
legally constituted meeting with quorum present. 
   
  (7) The agenda for each committee meeting shall include an item entitled 
public comment under which any person will be allowed to address the committee 
on matters relating to committee business. The presiding officer may establish 
procedures for public comment, including a time limit on each comment. 
     
  (j) Attendance. Members shall attend committee meetings as scheduled. Members 
shall attend meetings of subcommittees to which the member is assigned. 
 
  (1) A member shall notify the presiding officer or appropriate department 
staff if he or she is unable to attend a scheduled meeting. 
   
  (2) It is grounds for removal from the committee if a member cannot discharge 
the member's duties for a substantial part of the term for which the member is 
appointed because of illness or disability, is absent from more than half of the 
committee and subcommittee meetings during a calendar year, or is absent from at 
least three consecutive committee meetings. 
   
  (3) The validity of an action of the committee is not affected by the fact 
that it is taken when a ground for removal of a member exists. 
   
  (4)  The attendance records of the members shall be reported to the board. The 
report shall include attendance at committee and subcommittee meetings. 
     
  (k) Staff. Staff support for the committee shall be provided by the 
department. 
   
  (l) Procedures. Roberts Rules of Order, Newly Revised, shall be the basis of 
parliamentary decisions except where otherwise provided by law or rule. 
 
  (1) Any action taken by the committee must be approved by a majority vote of 
the members present once quorum is established. 
   
  (2) Each member shall have one vote. 
   
  (3) A member may not authorize another individual to represent the member by 
proxy. 
   
  (4)  The committee shall make decisions in the discharge of its duties without 
discrimination based on any person's race, creed, gender, religion, national 
origin, age, physical condition, or economic status. 
   
  (5) Minutes of each committee meeting shall be taken by department staff. 
 
  (A) A draft of the minutes approved by the presiding officer shall be provided 
to the board and each member of the committee within 30 days of each meeting. 
   
  (B) After approval by the committee, the minutes shall be signed by the 
presiding officer. 
       
  (m) Subcommittees. 
 
  (1) There shall be established three standing subcommittees. 
 
  (A) The standing subcommittees shall consist of the pediatric subcommittee, 
the trauma subcommittee, and the emergency medical services subcommittee. 
   
  (B)  Standing subcommittees shall have goals and objectives reviewed 
biennially to determine appropriateness of subcommittee structure and 
continuation. 
     
  (2) The committee may establish additional subcommittees as necessary to 
assist the committee in carrying out its duties. 
   
  (3) The presiding officer shall appoint members of the committee to serve on 
subcommittees and to act as subcommittee chairpersons. The presiding officer may 
also appoint non-members of the committee to serve on subcommittees. 
   
  (4)  Subcommittees shall meet when called by the subcommittee chairperson or 
when so directed by the committee. 
   
  (5) A subcommittee chairperson shall make regular reports to the advisory 
committee at each committee meeting or in interim written reports as needed. The 
reports shall include an executive summary or minutes of each subcommittee 
meeting. 
     
  (n)  Statement by members. The board, the department, and the committee shall 
not be bound in any way by any statement or action on the part of any committee 
member except when a statement or action is in pursuit of specific instructions 
from the board, department, or committee. 
   
  (o) Reports to the board. The committee shall file an annual written report 
with the board. 
 
  (1) The report shall list: 
 
  (A) the meeting dates of the committee and any subcommittees; 
   
  (B) the attendance records of its members; 
   
  (C) a brief description of actions taken by the committee; 
   
  (D) a description of how the committee has accomplished the tasks given to the 
committee by the board; 
   
  (E) the status of any rules which were recommended by the committee to the 
board; 
   
  (F) anticipated activities of the committee for the next year; and 
   
  (G) any amendments to this section requested by the committee. 
     
  (2) The report shall identify the costs related to the committee's existence, 
including the cost of agency staff time spent in support of the committee's 
activities. 
   
  (3)  The report shall cover the meetings and activities in the immediate 
preceding 12 months and shall be filed with the board each January. It shall be 
signed by the presiding officer and appropriate department staff. 
     
  (p)  Reimbursement for expenses. In accordance with the requirements set forth 
in Texas Civil Statutes, Article 6252-33, a committee member may receive 
reimbursement for the member's expenses incurred for each day the member engages 
in official committee business. 
 
  (1) No compensatory per diem shall be paid to committee members unless 
required by law. 
   
  (2) A committee member who is an employee of a state agency, other than the 
department, may not receive reimbursement for expenses from the department. 
   
  (3) A non-member of the committee who is appointed to serve on a subcommittee 
may not receive reimbursement for expenses from the department. 
   
  (4) Each member who is to be reimbursed for expenses shall submit to staff the 
member's receipts for expenses and any required official forms no later than 14 
days after each committee meeting. 
   
  (5) Requests for reimbursement of expenses shall be made on official state 
travel vouchers prepared by department staff. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 25, 1995. 
 TRD-9505044 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Effective date: May 17, 1995 
 Proposal publication date: December 2, 1994 
 For further information, please call: (512) 458-7236 
         
               
  Emergency Medical Services Trauma Systems 
 
  25 TAC sec.157.121 
 
  The amendment is adopted under the Health and Safety Code, sec.11.016, which 
provides the Texas Board of Health with the authority to appoint advisory 
commitees; 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. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 25, 1995. 
 TRD-9505045 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Effective date: May 17, 1995 
 Proposal publication date: December 2, 1994 
 For further information, please call: (512) 458-7236 
         
           Chapter 169. Zoonosis Control 
  
  Rabies Control and Eradication 
 
  25 TAC sec.169.34 
 
  The Texas Department of Health (department) adopts new  sec.169.34, concerning 
the statewide rabies area quarantine, with changes to the proposed text as 
published in the January 24, 1995, issue of the Texas Register  (20 TexReg 320). 
 The changes as adopted update the species that are prohibited from movement 
under the rabies quarantine and also allows for the transport of these species 
by government employees whose responsibilities include transportation of 
animals. 
 The new section is necessary to prevent the translocation of potentially 
infected animals from within the current rabies epizootics to other locations 
within and outside the state. The rule will help minimize the number of rabies 
cases occurring among susceptible animal populations outside the areas currently 
affected and a corresponding reduction in the threat to public health. 
 The following comments were received concerning the proposed sections. 
 COMMENT: One commenter requested that the rule specifically allow animal 
control officers to transport stray animals to an animal shelter. 
 RESPONSE: The department agrees and has changed the wording to allow transport 
of restricted animals by government employees, or contracting entities, whose 
responsibilities include transportation of animals. 
 COMMENT: One organization felt that bats should not be included in the 
quarantine. The reason for this is two-fold. First, although bats are at high-
risk for rabies, the epidemiology of bat rabies is distinct from that of 
terrestrial animals. Therefore, bats do not contribute to the current rabies 
epizootics. Second, limiting bats' movements is impossible due to their 
migratory habits. 
 RESPONSE: The department agrees and bats will not be included in the species 
restricted by the quarantine. Also, the department feels that skunks do not 
contribute to the current epizootic and has removed them from the list of 
restricted species. 
 COMMENT: Ten zoos and one individual commented that they felt zoos should be 
exempt from the quarantine since wildlife held in captivity in major zoological 
parks poses little risk of transmission of rabies. 
 RESPONSE: The department agrees and the wording has been changed to allow zoos 
which are accredited members of the American Association of Zoological Parks and 
Aquariums (AAZPA) to transport restricted species. 
 COMMENT: One commenter felt that the quarantine should not apply to non-
indigenous species since the expanding rabies epizootics are due to indigenous 
wildlife vectors. 
 RESPONSE: The department agrees and changed the wording to limit prohibition of 
transport to only indigenous species, as specified by scientific name. 
 COMMENT: Nine organizations and 78 individuals commented that wildlife 
rehabilitators licensed by Texas Parks and Wildlife Department should be 
exempted from the quarantine. Three commenters voiced support for the quarantine 
rules as written. Those seeking exemption cited two main concerns: preservation 
of Texas wildlife and humane treatment of animals; and the public health role 
played by wildlife rehabilitators. Without rehabilitators, the general public 
has few alternatives for disposal of injured or orphaned wildlife and may elect 
to keep the animals themselves, thereby increasing their risk of exposure to a 
rabid animal. 
 RESPONSE: The department agrees that the wildlife rehabilitators' efforts 
probably contribute to public health by minimizing the public's exposure to 
potentially diseased animals. The department will allow rehabilitators to 
continue their efforts with the following stipulations: the animals are 
transported by government employees whose responsibilities include 
transportation of animals; the animals are either vaccinated with a rabies 
vaccine approved for raccoons and kept 30 days following vaccination or they are 
kept in captivity six months; and they are released within ten miles of the site 
they were captured. 
 COMMENT: One commenter holding a Texas Parks and Wildlife propagator's license 
suggested that propagators be allowed to move restricted species. 
 RESPONSE: Wildlife propagators should not be exempted from the quarantine 
because of overriding issues. Texas has a large industry which profits from the 
trafficking of wild animals. Since the requirements to obtain a license to 
perform wildlife propagator are minimal, animal dealers could transport large 
numbers of high risk species within and from Texas under the guise of a 
propagator. Prohibition of translocation of high risk species is the primary 
goal of the quarantine, which would be unenforceable if propagators are 
exempted. 
 COMMENT: Three organizations and two individuals commented that animals used 
for educational purposes (such as promoting respect for and safety around wild 
animals) should be exempt from the quarantine. 
 RESPONSE: Animals used for educational purposes should not be exempted from the 
quarantine based on the same rationale used in the case of wildlife propagators. 
 COMMENT: One organization wanted wolf-hybrids excluded from the rabies 
quarantine. 
 RESPONSE: Most taxonomists now agree that wolves and domestic dogs are the same 
genus and species. Since no scientific evidence exists that rabies vaccines 
currently being used in dogs is not effective, the department feels that public 
health is better served if these animals are vaccinated, and therefore 
presumably protected against rabies. As vaccinated animals, they would be 
allowed to be transported. 
 COMMENT: One commenter stated that nuisance trappers (also known as 
professional trappers or exterminators) should be allowed to remove "nuisance" 
animals (such as raccoons) from attics, sheds, etc. 
 RESPONSE: Nuisance trappers are not licensed to perform this work (i.e., they 
are self-regulating); therefore enforcement of the quarantine would be hampered 
by the inability to identify these individuals and regulate their activities. 
Although nuisance trappers have the right to remove the animal from the 
building, they should not be allowed to transport the animal. They may contract 
with governmental entities for transportation purposes. 
 COMMENT: One film maker from Los Angeles requested a one-day exemption for 
transporting a coyote for use in a movie being filmed in Texas. The animal is 
held in permanent captivity and is "trained" for such uses. 
 RESPONSE: Exemption for transporting restricted animals should not be given 
film makers; however, they can contract with government employees who are 
allowed to transport animals, such as animal control officers, to move animals 
to and from movie locations. 
 Several individuals, as well as the following organizations provided comments 
on the new rules: the City of Odessa, Bat Conservation International, Wildlife 
Rescue (Austin), Wildwood Farm (Leander), Animal Rehabilitation Center 
(Midlothian), Wildlife Rescue & Rehabilitation (San Antonio), Animal 
Rehabilitation Center (Houston), Heard Natural History Museum & Wildlife 
Sanctuary (McKinney), Central Texas Wildlife Institute (Hamilton), Wildlife 
Center of Harris County, Wildlife Rescue & Rehabilitation (Boerne), San Antonio 
Zoo, Cameron Park Zoo (Waco), Fort Worth Zoo, Texas Zoo (Victoria), Ellen Trout 
Zoo (Lufkin), Gladys Porter Zoo (Brownville), Dallas Zoo, Houston Zoo, El Paso 
Zoo, Abilene Zoo, Austin Nature Center, Animal Edutainment (Aubrey), The 
Beneficial Animal Teaching Society (Mineral Wells), Sacred Winds (Dale). As 
indicated in the summary of comments, the commenters were generally in favor of 
the rules; however they expressed concerns and offered suggestions. 
 The new section is adopted under the Texas Health and Safety Code, Chapter 826, 
"Rabies," Subchapter E, "Reports and Quarantine," sec.826.045, which provides 
the board with the authority to declare an area rabies quarantine to prevent or 
contain a rabies epizootic and adopt permanent or emergency rules; and 
sec.12.001, which provides the board with the authority to adopt rules for the 
performance of every duty imposed by law on the board, the department, and the 
commissioner of health. 
 
 
  sec.169.34. Area Quarantine. 
 
  (a) Introduction. The purpose of these rules is to prevent the spread of the 
south Texas canine, and Texas fox rabies epizootics in accordance with Health 
and Safety Code, sec.826.045. This rule will be administered with the 
cooperation of the governing bodies of counties and municipalities within the 
quarantine area. 
   
  (b) Definitions. Words and terms used in this section, shall have the 
definitions assigned by Texas Health and Safety Code, sec.826.002 unless the 
context clearly indicates otherwise. 
   
  (c) Declaration. The board declares an area rabies quarantine. 
 
  (1) Area quarantine. The area is defined by the borders of the state of Texas. 
   
  (2) Animals subject to the area quarantine. Any live: coyote (Canis latrans), 
raccoon (Procyon lotor ), red fox (Vulpes fulva), desert fox (Vulpes macrotis), 
swift fox (Vulpes velox), gray fox ( Urocyon cinereoargenteus), dog, wolf-dog 
hybrid, or cat over three months of age for which an official rabies vaccination 
certificate as described in sec.169.29(b) of this title (relating to Vaccination 
Requirement) cannot be produced, is subject to the area quarantine. 
     
  (d) Board's designee. The board's designee is the commissioner, whom the board 
appoints to act as its designee as described in Texas Health and Safety Code, 
sec.826.045. 
   
  (e) Public notification. The Texas Department of Health shall insure that the 
public is notified of the area rabies quarantine by: 
 
  (1) publishing a notice in the Texas Register; 
   
  (2) issuing news releases statewide; and 
   
  (3) posting notice of the quarantine in appropriate public places. 
     
  (f) Prohibited acts. A person shall not remove from, nor transport within the 
area quarantine, any animal described in subsection (c) (2) of this section. For 
dogs and cats, submission to the court of a valid rabies certificate or a signed 
euthanasia release form describing the transported animal, shall be a valid 
defense to a charge of violation of this quarantine. 
   
  (g) Exceptions. Notwithstanding the prohibition in subsection (f) of this 
section, animals described in subsection (c)(2) of this section may be 
transported in the following circumstances. 
 
  (1) Animals may be transported between zoos or other institutions accredited 
by the American Association of Zoological Parks and Aquariums. 
   
  (2) Animals may be transported by employees or contractors of governmental 
entities, when such transport is a part of their official duty. 
     
  (h) Special provisions for rehabilitation of raccoons. Raccoons being 
rehabilitated shall be: 
 
  (1) vaccinated with a vaccine approved for use in raccoons by the United 
States Department of Agriculture and held for 30 days after vaccination without 
symptoms of rabies; 
   
  (2) released within a 10-mile radius of where they were originally captured; 
and, 
   
  (3) transported by employees or contractors of a city or county animal control 
agency. 
     
  (i) Rehabilitation of other wild animals. Rehabilitation of other wild animals 
listed in subsection (c)(2) of this section is prohibited. 
   
  (j) Violation of quarantine. As provided in Texas Health and Safety Code, 
sec.826.046: 
 
  (1) a person commits an offense if the person violates or attempts to violate 
subsection (f) of this section; and 
   
  (2) an offense is a Class C misdemeanor. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 25, 1995. 
 TRD-9505046 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Effective date: May 17, 1995 
 Proposal publication date: January 24, 1995 
 For further information, please call: (512) 458-7236 
         
                 Chapter 295. Occupational Health 
  
  Texas Asbestos Health Protection 
 
  25 TAC sec.295.72 
 
  The Texas Department of Health (department) adopts new  sec.295.72, concerning 
an agreement between the Texas Natural Resource Conservation Commission (TNRCC) 
and the department on inspection of asbestos disposal sites, without changes to 
the proposed text as published in the December 27, 1994, issue of the Texas 
Register (19 TexReg 10304). 
 The new section formally adopts an agreement between the department and TNRCC 
for the inspection and regulation of asbestos renovation and demolition 
activities, and for inspection of facilities which receive asbestos containing 
wastes. House Bill 1680 of the 73rd Legislature amended Article 4477-3a of 
Vernon's Texas Civil Statutes, subsections (k)-(n), to require the department to 
implement a program to regulate asbestos emissions from building demolition and 
renovation activities, and for the department and TNRCC to adopt by rule a 
Memorandum of Understanding (MOU) pertaining to inspection of asbestos disposal 
sites. The MOU insures that the responsibilities of both agencies are 
identified. The department will maintain overall responsibility for asbestos 
demolition and renovation activities, and will provide training relating to 
asbestos waste site inspections for TNRCC inspectors in Fiscal Year 1995. TNRCC 
will perform inspections, conduct enforcement, and inform the department of its 
activities. 
 No comments were received during the comment period of December 27, 1994 
through January 26, 1995. 
 The new section is adopted under the Texas Revised Civil Statutes, 4477-3a, 
sec.12(a), which provide the department the authority to adopt rules necessary 
to carry out its powers, duties, and responsibilities relating to regulation of 
asbestos; and Health and Safety Code, sec.12.001(b)(1), which requires the 
department to adopt rules for the performance of each duty imposed upon it by 
law. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 25, 1995. 
 TRD-9505042 
  Susan K. Steeg 
 General Counsel 
 Texas Department of Health 
    Effective date: May 17, 1995 
 Proposal publication date: December 27, 1994 
 For further information, please call: (512) 458-7236 
         
               
  TITLE 28. INSURANCE 
 Part I. Texas Department of Insurance 
  Chapter 5. Property and Casualty 
  
  Subchapter D. Fire and Allied Lines Insurance 
 
  28 TAC sec.5.3600 
 
  The Texas Department of Insurance adopts new sec.5.3600, concerning the 
Residential Property Insurance Loss Mitigation Advisory Committee, which is 
created and appointed pursuant to Commissioner's Order Number 94-1029 (September 
27, 1994), to advise and make recommendations, including proposals for 
rulemaking, to the Commissioner on reducing residential property insurance 
losses. The new section is adopted without changes to the proposed text as 
published in the October 28, 1994, issue of the  Texas Register (19 TexReg 
8579). 
 The new section is necessary to comply with the rule requirements of Texas 
Revised Civil Statutes Annotated, Article 6252-33, which governs state agency 
advisory committees. Article 6252-33 was enacted by the 73rd Texas Legislature 
in SB 383 (Acts 1993, 73rd Leg., ch. 398, sec.1, eff. Sept. 1, 1993) and 
requires a state agency that is advised by an advisory committee to adopt rules 
stating the purpose of the committee, the tasks of the committee, and the manner 
in which the committee will report to the agency. Article 6252-33, sec.1 defines 
"advisory committee" to mean a committee, council, commission, task force, or 
other entity in the executive branch of state government that is not a state 
agency, is created by or under state law, and has as its primary function the 
advising of a state agency. The Residential Property Insurance Loss Mitigation 
Advisory Committee, which was appointed by the Commissioner of Insurance 
pursuant to the Insurance Code, Articles 1.35C, 5.25, 5.33, and 1.02, was 
created as a result of the May 25, 1994, hearing on reducing residential 
property insurance losses caused by wind and hail and freezing weather and the 
June 29, 1994, hearing on reducing residential property insurance losses from 
crime. The committee was established by Commissioner's Order Number 94-1029 
(September 27, 1994) to advise and make recommendations, including proposals for 
rulemaking and legislation, to the Commissioner on reducing residential property 
insurance losses. 
 Subsection (a) of new sec.5.3600 states the purpose of the rule which is to 
specify the purpose, task, reporting requirements, membership composition, and 
duration of the Residential Property Insurance Loss Mitigation Advisory 
Committee. Subsection (b) specifies the purpose of the committee which is to 
advise and make recommendations, including proposals for rulemaking and 
legislation, to the Commissioner of Insurance, on reducing residential property 
insurance losses. Subsection (c) outlines the tasks of the committee which are 
determined by the Commissioner of Insurance and include identifying specific 
areas of residential property insurance losses to be reviewed for 
recommendation; reporting these areas to the Commissioner; determining the best 
means to address mitigation of losses in these areas, including educational 
efforts, proposals for rulemaking and legislation, and consumer and industry 
initiatives; and preparing final recommendations for the Commissioner's 
consideration. Subsection (d) outlines the committee's reporting requirements. 
Subsection (e) specifies the membership composition of the committee, and 
subsection (f) provides for the duration of the appointees' membership and 
service on the committee. 
 No comments were received regarding adoption of the new section. 
 The new section is adopted pursuant to Texas Civil Statutes, Article 6252-33; 
the Insurance Code, Articles 1.35C, 5.25, 5.33, and 1.03A; and the Government 
Code, sec.sec.2001.004-2001.038. Texas Revised Civil Statutes Annotated, Article 
6252-33, sec.5 requires a state agency that is advised by an advisory committee 
to adopt rules stating the purpose of the committee, the tasks of the committee, 
and the manner in which the committee will report to the agency. Pursuant to 
Article 1.35C(a) of the Insurance Code, at least one-half of the membership of 
each advisory body appointed by the Commissioner, other than an advisory body 
whose membership is determined by the Insurance Code or by another law relating 
to the business of insurance in this state, must represent the general public. 
Article 1.35C(b) of the Insurance Code provides who may not be a public 
representative on an advisory committee appointed by the Commissioner. Article 
5.25(a) of the Insurance Code authorizes the Commissioner to promulgate the 
rates of premiums (as provided by Subchapter M of Chapter 5 of the Insurance 
Code, i.e., Flexible Rating Program for Certain Insurance Lines) to be charged 
and collected for residential property insurance. Article 5.25(a) also 
authorizes the Texas Department of Insurance to collect data to aid in 
determining methods of reducing residential property insurance rates and 
authorizes the Department to employ clerical help, inspectors, experts and other 
assistants, and to incur such other expenses as may be necessary in carrying out 
the provisions of Article 5.25. Article 5.33 of the Insurance Code authorizes 
the Commissioner to compel any company to give credits for any hazards a policy 
holder may reduce or remove. Articles 5. 25 and 5.33 by their terms delegate the 
foregoing authority to the State Board of Insurance; however, this authority is 
interpreted to be delegated to the Commissioner of Insurance and the Department 
of Insurance under Article 1.02 of the Insurance Code, which provides that a 
reference in the Insurance Code or another insurance law to the State Board of 
Insurance means the Commissioner of Insurance or the Texas Department of 
Insurance, as consistent with the respective powers and duties of the 
Commissioner and the Department under Article 1.02. Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations, which must be for 
general and uniform application, for the conduct and execution of the duties and 
functions of the Texas Department of Insurance only as authorized by a statute. 
Section 2001. 031(b) of the Government Code (Administrative Procedure Act) 
authorizes a state agency to appoint committees of experts or interested persons 
or representatives of the public to advise the agency about contemplated 
rulemaking, and sec.2001.031(c) provides that the power of a committee appointed 
under sec.2001.031 is advisory only. The Government Code, sec.sec.2001. 004-
2001.038 authorize and require each state agency to adopt rules of practice 
stating the nature and requirements of all available formal and informal 
procedures and prescribe the procedures for adoption of rules by a state agency. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505058 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: October 28, 1994 
 For further information, please call: (512) 463-6327 
         
           Chapter 25. Insurance Premium Finance 
  
  The Commissioner of Insurance of the Texas Department of Insurance adopts the 
repeal of sec.sec.25.1-25.12, 25.101-25.111, 25.201-25.205, 25.301-25.307, 25. 
401-25.404, 25.501-25.509, 25.601-25.606, 25.701-25.718, and 25.801-25.806, 
without changes to the proposed text as published in the November 22, 1994, 
issue of the  Texas Register (19 TexReg 9276). 
 Sections 25.1-25.12, 25.101-25.111, 25.201-25.205, 25.301-25.307, 25.401-25. 
404, 25.501-25.509, 25.601-25.609, 25.701-25.718, and 25.801-25.806 concern the 
licensing, regulation, and examination of insurance premium finance companies. 
The repeal of this chapter is necessary to enable the Commissioner to 
simultaneously adopt a new chapter, which replaces the repealed chapter with 
other provisions regulating insurance premium finance companies. This repeal and 
adoption of a new chapter is necessary to provide for more effective regulation 
of insurance premium finance companies and to give consumers improved access to 
information regarding insurance premium finance companies. 
 The repeal of Chapter 25 allows the Commissioner to adopt a new chapter which 
sets out and clarifies the procedures used in the regulation of insurance 
premium finance companies. 
 No comments were received regarding adoption of the repeals. 
   
  Subchapter A. General Provisions 
 
  28 TAC sec.sec.25.1-25.12 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505060 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter B. Licensing 
 
  28 TAC sec.sec.25.101-25.111 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505061 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter C. Insurance Premium Finance: Agreement 
 
  28 TAC sec.sec.25.201-25.205 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505062 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter D. Increases or Decreases in the Amount of Insurance Premium 
Financed 
 
  28 TAC sec.sec.25.301-25.307 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505063 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter E. Finance Charges 
 
  28 TAC sec.sec.25.401-25.404 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505064 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter F. Power of Attorney 
 
  28 TAC sec.sec.25.501-25.509 
 
  The repeals are adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505065 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter G. Books and Records 
 
  28 TAC sec.sec.25.601-25.606 
 
  The repeal is adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505066 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter H. Annual Reports, Examinations, and Assessments 
 
  28 TAC sec.sec.25.701-25.718 
 
  The repeal is adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505067 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter I. Deceptive Advertising 
 
  28 TAC sec.sec.25.801-25.806 
 
  The repeal is adopted pursuant to the Insurance Code, Articles 24.09 and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505068 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
     
  The Commissioner of Insurance of the Texas Department of Insurance adopts new 
sec.sec.25.1-25.4, 25.6, 25.8-25.13, 25.21-25.33, 25.41-25.65, 25.71-25.76, and 
25.81-25.90, regarding the licensing, regulation, and examination of insurance 
premium finance companies. Sections 25.1, 25.9, 25.10, 25.42, 25.43, 25.47, 
25.58, 25.59, 25.64, 25.65, and 25.84 are adopted with changes to the proposed 
text as published in the November 22, 1994, issue of the  Texas Register (19 
TexReg 9276). Sections 25.2-25.4, 25.6, 25.8, 25.11-25.13, 25. 21-25.33, 25.41, 
25.44-25.46, 25.48-25.57, 25.60-25.63, 25.71-25.76, 25.81-25. 83, 25.85-25.90 
are adopted without changes. The text of these sections will not be republished. 
 New Chapter 25 replaces repealed Chapter 25 concerning the licensing, 
regulation, and examination of insurance premium finance companies. In response 
to comments, several changes were made to the chapter. The definition for 
"policy fee" was deleted from sec.25.1 because it is not addressed in the 
chapter. Section 25.7 was deleted to allow for a later rewording, clarification 
and republication. Section 25.9(a) was changed to delete reference to the 
Insurance Code, Article 21.21 and to clarify application of the section to 
insurance premium finance companies. The language in the Premium Finance 
Comparison Disclosure Form was changed to provide a more balanced and accurate 
picture of the payment options available to consumers in financing premiums and 
to emphasize to the consumer the requirement that the form be completely filled 
out before signing. Deletions and additions were made to sec.25.10(a) and (b) to 
clarify that an insurer is not required to return unearned premium to an 
insurance premium finance company if it has already returned it to the insured. 
Section 25.10(c) was changed to increase from 15 days to 20 days the time period 
for insurance premium finance companies to return unearned premiums to insureds. 
Grammatical changes were made to sec.25.10(d). Section 25.42 was changed to 
allow rate and refund charts to be made available to insureds only upon request. 
Section 25.43 was changed to clarify that the time period for return of an 
unacceptable agreement begins on the date of receipt. References to the Texas 
Workers' Compensation Insurance Fund (the Fund) have been deleted from 
sec.sec.25.47, 25.58, and 25.59. Section 25.59(a) has been changed to clarify 
what law applies to the cancellation date of insurance policies. Language has 
been added to sec.25.64(b) to clarify when an agent may be notified of a 
financed premium or when a policy may be funded directly. Section 25.65 has been 
changed to clarify that it applies to relocation of current accounts. Section 
25.84 has been changed to delete the requirement that insurance premium finance 
companies maintain a copy of the declaration page in each file. The language in 
sec.25.84 has also been changed to allow for maintenance of a computer printout 
of the notice of intent to cancel, in conformity with sec.25.58(a). 
 New Chapter 25 is necessary to provide for the orderly and efficient 
administration of insurance premium finance companies. It defines terms commonly 
used in premium finance and sets out and clarifies the procedures used in 
licensing and regulating insurance premium finance companies. The new chapter 
also provides for notice to consumers of pertinent information regarding the 
services provided by insurance premium finance companies. 
 For with changes: Office of Public Insurance Counsel and Texas Farmers 
Insurance Company. Against: Universal Premium Services, Inc., Westchester 
Premium Acceptance Corp., National IPF Co. doing business as Emerald Finance 
Co., Premium Financing Specialists, Inc., Amerisure Companies, Insurance Premium 
Finance Association of Texas, Express Premium Finance Corporation, and the Texas 
Workers' Compensation Insurance Fund submitted comments objecting to certain 
provisions or sections of the proposed chapter. 
 General Comment: One commenter suggests that Texas should adopt the position of 
some other states which regulate premium finance companies, i.e., if an 
insurance agent violates Chapter 24, he should be subject to license 
disciplinary action. 
 Agency Response: The Insurance Code, Chapter 21, Subchapter A, contains 
numerous provisions which state that any agent who violates any of the insurance 
laws of Texas may be disciplined by the Department through license suspension or 
revocation. Therefore, the Department does not find it necessary to adopt a rule 
subjecting agents to discipline specifically for violation under the Insurance 
Code, Chapter 24. 
 Section 25.1. Definitions. Comment: One commenter suggested that the term 
"policy fee" be deleted from sec.25.1 because it does not appear anywhere else 
in the chapter and serves no purpose. Another commenter suggested that the 
definition for "policy fee" be clarified. 
 Agency Response: The Department agrees. The definition for "policy fee" has 
been deleted. 
 Section 25.7. Inducements. Comments: One commenter suggests that sec.25.7 be 
expanded and clarified, stating that inducements to agents are widespread 
throughout the premium finance industry. Three commenters argue that sec.25.7 
exceeds the scope of Insurance Code, Article 24.14(a), with one of the 
commenters stating that a literal reading of the words would prohibit a premium 
financing transaction in which an agent receives a commission. Two commenters 
argue that the section is vague and unenforceable, asserting that it gives 
premium finance companies no guidance to distinguish between lawful and unlawful 
acts. Another commenter argues that the Insurance Code, Article 24.14 adequately 
addresses the issue of inducements and that attempts to clarify the statute will 
cause ambiguities. The commenter also states that the section as worded seems to 
prohibit transfers between affiliated companies, agencies and managing general 
agents who own premium finance companies. One commenter asserts that sec.25.7, 
if read literally, would also prohibit all business or contractual relationships 
between premium finance companies and agents. The commenter further asserts that 
some of those relationships are specifically authorized by the Insurance Code. A 
commenter argues that the Department has exceeded its statutory authority by 
using the term "agent" in sec.25.7, stating there is no legislative intent to 
subject agents to the Insurance Code, Article 24.14(a). The commenter asserts 
that the section is vague as worded because it creates a violation if agents who 
own premium finance companies submit financing business to their own premium 
financing companies because they would then receive consideration from their own 
companies through profit. The commenter suggests the Department delete reference 
to the premium finance company and refer to the agent submitting premium 
financing business as "another" agent to distinguish that agent from the one who 
owns the premium finance company. 
 Agency Response: The Department disagrees. The plain wording of Insurance Code, 
Article 24.14(a) shows that its purpose is to prohibit inducements of any kind 
and therefore, it has broad application. This broad prohibition against 
inducements, coupled with the authority granted to the Department in Insurance 
Code, Article 24.09 to adopt and enforce rules to carry out Chapter 24, provides 
the Department with authority to promulgate rules prohibiting inducements. 
Additionally, the Department interprets the term "premium finance company" as 
used in Insurance Code, Article 24.14 to include agents or persons who own 
premium finance companies. Therefore, the prohibition against inducements in 
Article 24.14 is applicable to such persons. Because there is confusion, 
however, about the wording of sec.25.7, that section has been deleted from the 
chapter. The Department may republish the section at a later date, once the 
language of the rule has been clarified. 
 Section 25.9. Texas Automobile Insurance Plan Association (TAIPA) Financing 
Disclosure and Premium Finance Comparison Disclosure Form. Comment: Two 
commenters object to the Premium Finance Comparison Disclosure Form (disclosure 
form) as being outside the Department's authority as granted in Insurance Code, 
Articles 24.09 and 21.21. 
 Agency Response: The Department disagrees. The Insurance Code, Article 24. 09, 
grants the Department broad authority to adopt rules "necessary to carry out 
this chapter." When Insurance Code Chapter 24 is viewed in its entirety, it 
shows a general statutory scheme to provide for disclosure of information to 
insurance consumers. For example, Articles 24.11, 24.12, 24.13 and 24.17 all 
deal with disclosure and notification to insureds regarding premium finance 
agreements, truth in lending, deceptive advertising and cancellation of finance 
agreements, respectively. The Department believes that adoption of the 
disclosure form falls within the purposes of Chapter 24 by providing for 
disclosure of pertinent information to the insurance consumer. 
 Comment: A commenter objects to the reference to the Insurance Code, Article 
21.21 in sec.25.9(a). The commenter asserts that the definition of "person" 
contained in the Insurance Code, Article 21.21, sec.2(a) does not include 
premium finance companies and thus does not provide the Department with 
authority to issue rules affecting premium finance companies. 
 Agency Response: While the Department disagrees that the definition of "person" 
contained in Insurance Code, Article 21.21, sec.2(a) does not include premium 
finance companies, the last line in sec.25.9(a) was not meant to refer to 
premium finance companies, but to agents. To avoid confusion, that line has been 
deleted. 
 Comment: One commenter argues that the disclosure form is onerous on the agent. 
 Agency Response: The Department disagrees. The disclosure form requires the 
agent to enter only seven numbers and to obtain the insured's signature. The 
disclosure form ensures that the information regarding premium financing and the 
TAIPA installment plan is presented clearly and accurately to the consumer. The 
Department believes that the disclosure form adds very little to the agent's 
activities, since the cost information is already being provided to the 
consumer. In fact, because a substantial amount of important information is 
summarized on the form, the Department believes that its use may ease the 
agent's job of explaining payment options to the consumer. Finally, the 
commenter gave no explanation or example why the disclosure form would be 
onerous to the agent. 
 Comment: One commenter asserts the disclosure form is a duplication of the 
requirements detailed in the TAIPA Plan of Operation. 
 Agency Response: The Department disagrees. The TAIPA Plan of Operation and 
Application require only an acknowledgment by the consumer that the TAIPA 
installment plan has been offered. The disclosure form, on the other hand, 
ensures that the cost information needed for an informed decision is made 
available to the consumer. 
 Comment: Four commenters argue that the disclosure form is improper and 
prejudicial because of the language in the opening paragraph. 
 Agency Response: The Department agrees. The language in the opening paragraph 
has been changed to provide a more balanced comparison between the payment 
options and to more clearly reflect the choices available to consumers. 
 Comment: Four commenters believe the disclosure form is improper and 
prejudicial to premium finance companies because it assumes the finance charge 
is the only factor involved in the financing decision and fails to mention the 
levels of service and ease of use offered to consumers by premium finance 
companies. 
 Agency Response: The Department disagrees. The purpose of the disclosure form 
is to give consumers a comparison of the differences involved in financing 
insurance premiums through an insurance premium finance company and TAIPA. Since 
the bottom line in such a comparison involves money, it is neither improper nor 
prejudicial to show the projected differences in amount to be paid by the 
consumer. Additionally, the agent remains in a good position to explain the 
benefits of premium finance to the consumer. 
 Comment: Two commenters object to the requirement that the premium finance 
company maintain copies of the disclosure form because the document is 
originated by the agent. They argue that since there is no legal relationship 
between the insurance premium finance company and the agent, the disclosure form 
is not within the company's control. The commenters also argue that this 
provision would create an administrative nightmare for all insurance premium 
finance companies engaged in financing TAIPA business. 
 Agency Response: The Department disagrees. Premium finance companies regularly 
require agents to provide certain documents to them before financing insurance 
premiums. For example, the agents must provide the premium finance companies 
with the finance agreement, any memoranda to the finance agreement, and truth-
in-lending documentation. The Department does not believe that the addition of a 
one-page form, which shall be handled in the same manner as other forms 
delivered by the agent to the company, is onerous. Neither commenter provided an 
example or explanation of the potential problems they assert. 
 Comment: Four commenters argue that the disclosure form will not enable 
consumers to make meaningful cost comparisons, particularly in cases where the 
terms of the transaction are different. In other words, the comparison is apples 
to oranges. They also argue that the disclosure form should provide a 
mathematical calculation of the implied interest rate of the monthly fee. 
 Agency Response: The Department disagrees. The fact that the terms of the TAIPA 
installment plan and premium financing may be different does not invalidate or 
make confusing the information presented to the consumer on the disclosure form. 
The comparison is apples to apples, i.e., down payment, number of payments, 
amount of each payment, and total payment. If the terms differ, the consumer is 
in a position to weigh the advantages of different terms against the differences 
in total cost. The Department does not believe a calculation to develop an 
implied interest rate for the TAIPA installment plan would provide any 
additional useful information to the consumer, but would potentially confuse 
both the agent and the consumer. The chart "Premium Finance Disclosure Form 
Examples" shows how the comparisons would appear to the consumer. The Department 
believes that this cost information provides the relevant points of comparison 
for the consumer to make an informed decision. Consumers are quite able to make 
informed choices when given the necessary information. 
 Comment: One commenter argues that the disclosure form does not compare apples 
to apples because the form does not disclose that additional TAIPA payment 
options are not presented-the advanced premium payment plan or full annual 
payment. 
 Agency Response: The Department disagrees. TAIPA offers three payment options. 
The first option is full annual premium payment with no deposit. The second is 
advanced premium payment where the total annual premium is paid within 30 days 
of the premium notice with a 25% down payment. The third option is the TAIPA 
installment payment plan. The purpose of the disclosure form is to provide a 
comparison of the cost of payment plans which are nearly equivalent in their 
other terms-down payment, number of monthly payments. Premium finance may be an 
option for the consumer seeking a monthly installment plan, but premium finance 
is not a relevant comparison to full annual payment or advanced premium payment. 
 Comment: Three commenters argue that the disclosure form does not compare 
apples to apples because premium finance may be eight, nine, or ten payments 
compared to the eight payments of the installment plan. 
 Agency Response: The Department disagrees. Because any of the premium finance 
options for TAIPA policies available in the market place are equivalent or 
nearly equivalent to the TAIPA installment plan with respect to the terms of 
down payment and number of payments, the meaningful comparison is between total 
costs of the installment plan and premium finance. The form compares total cost 
of each and therefore, compares apples to apples. 
 Comment: Two commenters assert that the disclosure form does not compare apples 
to apples because many times the insured is financing liability through TAIPA 
along with physical damage through another company on one premium finance 
agreement making the total premium and amount financed different for the 
installment plan and the premium finance plan. 
 Agency Response: The Department disagrees. Whether or not the consumer 
purchases physical damage coverage is irrelevant to the comparison of the total 
costs of the TAIPA installment plan versus premium finance of the TAIPA policy. 
The consumer may choose the TAIPA installment plan even if he or she is 
purchasing physical damage and paying for that policy through premium finance. 
In this case, the consumer is still offered the comparison between installment 
plan total cost and premium finance total cost for the TAIPA policy alone. 
 Comment: Two commenters argue that the disclosure form is biased because it is 
required if the consumer chooses premium finance but not if the consumer chooses 
the installment plan. 
 Agency Response: The Department disagrees. In the Department's experience the 
TAIPA installment plan generally represents a smaller total cost than premium 
finance. On the other hand, because insurance premium finance companies allow 
repayment over a longer period of time (eight, nine, or ten payments to the 
eight payments of the TAIPA installment plan), the monthly payments due 
insurance premium finance companies generally may be less. Therefore, the 
disclosure form gives the consumer full disclosure and, in most instances, two 
major choices-a lower total cost or a lower monthly payment. 
 Comment: One commenter asserts that the title of the form, "Premium Finance 
Comparison Disclosure Form", is prejudicial to the premium finance option. 
 Agency Response: The Department disagrees. The disclosure form is only required 
when an underlying policy has been issued through TAIPA. Thus, the title 
describes exactly what the form is-a premium finance comparison disclosure. 
 Comment: One commenter states that the revised disclosure form does not 
indicate that some consumers obtaining insurance through TAIPA are not eligible 
for the installment plan. 
 Agency Response: The Department agrees. The disclosure form has been modified 
to indicate those situations in which a consumer obtaining insurance through 
TAIPA is not eligible for the TAIPA installment plan. 
 Comment: One commenter argues that the disclosure form is an advertisement and 
as such, the disclosure form cannot offer less disclosure than the requirements 
of the Federal Truth-in-Lending Act and Regulation Z. The commenter argues that 
because the disclosure form does not contain the annual percentage rate, it 
therefore discloses less than federal requirements. The commenter goes on to 
state that the Insurance Code prohibits less stringent advertising disclosures 
than federal law. Finally, the commenter argues that the disclosure form 
conflicts with federal Truth-in-Lending Regulations. 
 Agency Response: The Department disagrees. The entire argument of the commenter 
rests on the assertion that the premium finance disclosure form offers less 
disclosure than federal requirements because no annual percentage rate is 
provided for either premium financing or the TAIPA installment plan. This 
argument is faulty. The form does not provide less disclosure simply because of 
the absence of the annual percentage rate. The purpose of the annual percentage 
rate is to provide a meaningful comparison of different sets of loan terms. This 
is particularly important when the terms of the loan options vary by term, as in 
two, three, four, or five years. In the case of the premium finance disclosure 
form, the terms of both options-down payment and number of monthly payments are 
either identical or vary only slightly. The major difference between the two 
payment plans is the difference between service charges for the TAIPA 
installment plan and the interest charges for premium finance. Thus, the total 
cost represents the common measure of comparison between the installment plan 
and premium finance, and represents a reliable proxy for annual percentage rate. 
Given the very short term of the premium finance loan-less than one year-the 
Department believes that the total cost is more useful and informative data for 
the consumer than the percentage rate alone. Through use of the disclosure form, 
the consumer can look at the total dollar costs of each option and easily weigh 
the benefits against the actual dollar costs of each option. No other commenter 
provided an example or explanation why the disclosure form would be in conflict 
with federal or state regulations. The Department does not believe any such 
conflict exists. 
 Comment: One commenter asserts that, in practice, the disclosure form will not 
always be given to the consumer in conjunction with a completed premium finance 
agreement and thus would not be in compliance with the Texas Insurance Code. 
 Agency Response: The Department disagrees. The commenter is arguing that the 
section will be regularly violated and by violating this section, the insurance 
premium finance company will be in violation of another part of the Insurance 
Code. The assumption is faulty. If the insurance premium finance company does 
not provide the consumer with the disclosure form, the insurance premium finance 
company will be in violation of the proposed section. We cannot use the 
assumption that insurance premium finance companies will violate the proposed 
section as a reason not to adopt the disclosure form and section. 
 Section 25.10. Premium Refunds. Comment: Five commenters object to the 15 day 
time period for premium finance companies to return unearned premiums to the 
insured as provided in proposed sec.25.10(c). The commenters wanted one of two 
options: to have the proposed section state that the time period begins to run 
when the premium finance company receives funds from the insurer that have been 
cleared and paid; or, to have the period extended to 30 days. 
 Agency Response: The Department believes that fifteen days is adequate time for 
funds received from the insurer to clear and for the premium finance company to 
return the unearned premiums to the insured. However, because two commenters 
suggested the occasional situation where the 15 day time limit might be 
difficult to meet, the time period has been extended to 20 days. 
 Comment: One commenter argues that sec.25.10 should be limited to situations 
where cancellations are made only when requested by the premium finance 
companies. The commenter argues that as written, the proposed section requires 
the insurer to pay even if the insurer cancels the policy for underwriting 
reasons or the insured requested cancellation. Further, the commenter asserts 
that the section is one-sided because the insurer may have already refunded the 
unearned premium to the insured before knowing the policy was financed. 
 Agency Response: The Department agrees. The wording of  sec.25.10(a) and (b) 
has been changed to provide that if the premium finance company has not notified 
the insurer that a policy is financed, the insurer does not have to return 
unearned premium to the company if it has already refunded it to the insured. 
 Comment: One commenter states that the deletion of the words "except that" from 
sec.25.10(d), and the separation of the sentence into two sentences is 
confusing. The commenter suggests that the Department keep the language in 
existing sec.25.504. 
 Agency Response: The Department agrees. Section 25.10(d) has been changed to 
one sentence with the words "except that" added. 
 Section 25.32. Financial Responsibility. Comment: One commenter argues that 
sec.25.32(c), which requires that each premium finance company maintain net 
assets of $25,000 at all times for each licensed location, exceeds the 
Department's statutory authority. The commenter asserts that such a requirement 
is not contemplated in Insurance Code, Chapter 24. 
 Agency Response: The Department disagrees. The Insurance Code, Article 24. 
03(c)(2) states that the Department may refuse to issue a license to an 
applicant if "the applicant does not have available for the operation for the 
business net assets of at least $25,000". The Department interprets that 
provision to mean that those net assets must be available at all times for 
operation of the business, not just at time of licensing, since presumably, the 
company will continue to operate after a license is issued. 
 Section 25.41. Unacceptable Loans. Comment: A commenter states that sec.25. 41 
and sec.25.43 conflict because "one specifies notice and the other requires a 
return of the agreement for correction". The commenter also asserts that the 
Truth-in-Lending Act and the Fair Credit Reporting Act may preempt sec.25.41 
since they set out certain requirements for a rejection notice. 
 Agency Response: The Department disagrees. The two provisions address separate 
issues. Section 25.41 concerns notifying an insured that the insurance premium 
loan has been denied. Section 25.43 addresses the time period for a premium 
finance company to return to the agent an unacceptable agreement. Section 25.41 
is not preempted by federal regulations because it simply requires that a 
rejection notice be sent. The form of the rejection notice is not prescribed by 
the section. Therefore, the elements contained in the rejection notice are those 
required by federal regulations. 
 Section 25.42. Rate and Refund Chart. Comment: One commenter states it is 
unclear what is meant by the section since different loan amounts may have 
different rates and terms. The commenter suggested sec.25.42 be modified to 
clarify the type of rate and refund chart required. 
 Agency Response: The Department disagrees that the section is unclear. Section 
25.42 is essentially the same provision as old sec.25.111. The Department 
believes that premium finance companies understand what is meant by a rate and 
refund chart since they are currently required to maintain them for inspection 
by the Department. 
 Comment: A commenter argues that making the rate and refund chart available to 
the insured requires increased paperwork. Three commenters suggested that the 
chart be made available to the insured only upon request. 
 Agency Response: The Department disagrees that requiring that the chart be made 
available to the insured increases paperwork since insurance premium finance 
companies are already required to maintain rate and refund charts for inspection 
by the Department. The section simply adds that it be made available to 
insureds. The Department has, however, added language to sec.25.42 to make the 
charts available "upon request" by the insured. 
 Section 25.43. Acceptance or Rejection. Comment: One commenter states that the 
section does not provide for correction of clerical errors. Another commenter 
argues that the section should allow for correction of completed applications in 
order to save time. 
 Agency Response: The Department disagrees. If insurance premium finance 
companies are allowed to correct "clerical errors", that in effect is allowing 
the companies to alter the contractual relationship between themselves and the 
insureds, without the insureds' consent. Standards for what comprise a clerical 
error are difficult to establish and the insurance premium finance company 
should not be in a position to unilaterally make that determination. The insured 
should agree to any changes made to the agreement since some of those changes 
may, in fact, be substantive. 
 Comment: One commenter states that the section implies that the three day 
period within which to return an unacceptable agreement begins when the 
agreement is received. The commenter also states the section has caused 
confusion because it does not specify whether receipt of the agreement includes 
the down payment. The commenter asserts that a premium finance company should 
not have to decide whether or not to accept a tendered agreement if the down 
payment is not included. 
 Agency Response: Section 25.43 has been amended to clarify that the three day 
time period begins on the day an unacceptable agreement is received. However, 
the determination of whether or not an agreement is acceptable is to be made by 
the premium finance company. 
 Section 25.44. Prompt Processing Required. Comment: One commenter states that 
the section requires a premium finance company to fund premium loans within five 
working days after acceptance of the agreement. The commenter argues that unless 
sec.25.43 is changed to clarify when the three day period begins, a premium 
finance company might have to fund a loan prior to receipt of the down payment. 
 Agency Response: The language of sec.25.43 has been changed to clarify when the 
three day period for return of unacceptable agreements begins. Section 25. 44 
simply sets five working days as the reasonable period of time within which to 
process premium finance agreements after acceptance has taken place. The section 
goes on to state that if that time limitation cannot be met, notification of the 
delay must be given to the agent and the insured. Consequently, the premium 
finance company determines whether the loan can be funded within that time 
period. 
 Comment: A commenter argues that the five day period contained in this section 
should be changed. 
 Agency Response: The Department disagrees. Five working days is a reasonable 
amount of time for a premium finance company to process an agreement or notify 
the agent and insured that it cannot be processed within that time period. 
 Section 25.47. Policies Issued Through the Texas Workers' Compensation 
Insurance Fund and the Texas Medical Liability Insurance Underwriting 
Association. Comment: Three commenters argue that the provision concerning 
financing of premiums for policies issued through the Texas Workers' 
Compensation Insurance Fund (the Fund) should be deleted because it is unfair 
and inconvenient to consumers, unworkable and discriminates against the 
financing of workers' compensation insurance premiums. One commenter goes on to 
state that unlike the Texas Workers' Compensation Assigned Risk Pool, the Fund 
competes in the open market. Therefore, requiring that Fund policies be financed 
on a separate agreement places the Fund at a competitive disadvantage. Agency 
Response: The Department agrees. References to the Fund have been deleted from 
sec.25.47. 
 Section 25.50. Premium Decrease Due To Improper Rating. Comment: One commenter 
asserts that sec.25.50(2) is contrary to Insurance Code, Article 24. 16. The 
commenter states that sec.25.50(2) appears to require a credit for finance 
charges if a premium refund is received, even if the refund is not enough to 
fully pay the debt. 
 Agency Response: The Department disagrees. Section 25.50 does not address the 
issue covered in Insurance Code, Article 24.16, but sets out the procedures that 
a premium finance company may use if there is a reduction in premium while the 
loan is being paid by the insured. Section 25.50(2) states that the insured's 
account should be credited with the amount of the return premium, and the 
repayment amount and repayment schedule should be adjusted accordingly. 
 Comment: A commenter states that sec.25.50(2) is the most correct method to 
handle premium decreases. The commenter also asserts that sec.25.50(1) will not 
achieve the results sought by the regulation. 
 Agency Response: Under the section, premium finance companies may choose which 
method to use when crediting an insured's account for return premium. Therefore, 
the premium finance company decides which method is "correct" for its business. 
 Section 25.51. Changes in Finance Rate. Comment: One commenter asserts that the 
section substitutes rates permitted under the Texas Credit Code for the rate 
found in the finance agreement. Agency Response: The Department disagrees. Other 
than correcting the Texas Credit Code cite, the section is the same as existing 
sec.25.306 which is being repealed simultaneous with the adoption of these 
sections. 
 Section 25.58. Notice of Intent to Cancel Insurance Because of Default. 
Comment: Two commenters object to sec.25.58(b). They argue that requiring a copy 
of the notice of intent-to-cancel be sent to the Fund serves no purpose, and 
will cause unnecessary paper flow. One commenter also argues that the 
requirement will only add to the paper handling and filing workload of the Fund. 
Agency Response: The Department agrees. References to the Fund have been deleted 
from sec.25.58(b). 
 Section 25.59. Notice of Cancellation Because of Default. Comment: One 
commenter objects to sec.25.59(a). The commenter states that, as currently 
worded, the provision may lead to situations in which the specified cancellation 
date conflicts with provisions of the Texas Workers' Compensation Act. The 
commenter suggests the words "or by applicable law" be added to the end of the 
last sentence in sec.25.59(a). 
 Agency Response: The Department agrees. The suggested language change has been 
made. Comment: Two commenters object to sec.25.59(b). They make the same 
argument as the one against sec.25.58(b), i.e., that requiring a copy of the 
notice of intent-to-cancel be sent to the Fund serves no purpose, and will cause 
unnecessary paper flow and additional work. Agency Response: The Department 
agrees. References to the Fund have been deleted from sec.25.59(b). 
 Section 25.63. Filing of Power of Attorney on Assignment with Insurer. Comment: 
One commenter argues that the section is an attempt to restate the statute and 
that there is no reason to advise policy holders that the insurer has sixty days 
to return unearned premium. 
 Agency Response: The Department disagrees. Section 25.63 does not require 
notice to the policy holder, but to the insurer. 
 Comment: Another commenter argues that it should not be the responsibility of 
the insurance premium finance company to advise the insurer of the 60 day 
requirement to return unearned premium. 
 Agency Response: The Department disagrees. The section is in accordance with 
the notification requirement found in the Insurance Code, Article 24.22. 
 Section 25.64. Notification to Insurers. Comment: One commenter argues that 
sec.25.64(b) conflicts with the definition of the "agency relationship" between 
an agent and the insurance company it represents; and, that it conflicts with 
Article 24.22. Another commenter argues that sec.25.64(b) is unduly restrictive 
by requiring notice be sent to the insurer rather than the managing general 
agent. 
 Agency Response: The Department disagrees. Article 24.22 states that an 
"insurance premium finance company which enters into a premium finance agreement 
. . . shall notify either the insurer or" other state insurance pools. The 
premium finance company may "notify or fund an agent or managing general agent" 
only if authorized in writing by county mutuals. The Department has, however, 
changed the language in sec.25.64(b) to clarify that notification to agents in 
the context of county mutuals is permitted if written authorization is received. 
 Section 25.65. Relocation of Accounts. Comment: A commenter states that it is 
not clear whether the section applies to current accounts only, or whether it 
also applies to closed accounts. 
 Agency Response: The Department agrees. The section has been modified and the 
word "current" inserted before "accounts". 
 Section 25.71. Advertisements in General. Comment: One commenter argues that 
the section conflicts with the requirements of the Truth-in-Lending Act and 
should be brought into conformity with the Act. 
 Agency Response: The Department disagrees. Section 25.71 sets out in general 
language the requirement that premium finance company advertising cannot be 
misleading or deceptive. This language neither conflicts with, nor is intended 
to replace, federal provisions. 
 Section 25.84. Individual Account Records. Comment: Seven commenters assert 
that requiring premium finance companies to maintain copies of declaration pages 
in their account files would be impractical, burdensome and unenforceable. 
Although two of the commenters state that it would be a good business practice, 
they argue that because declaration pages are not produced by the premium 
finance companies and generally do not exist at the time of funding by the 
premium finance company, it would be difficult for the companies to compel the 
insurers to provide them with copies of declaration pages. 
 Agency Response: The Department agrees. The requirement for maintaining a copy 
of the declaration page in the account files has been deleted. 
 Comment: Two commenters point out that requiring the premium finance company to 
maintain a copy of the notice of intent to cancel is inconsistent with the 
provision of sec.25.58(a), which allows the company to maintain either a copy or 
a computer printout of the notice. 
 Agency Response: The Department agrees. Section 25.84 has been changed to allow 
a premium finance company to maintain a computer printout of the notice of 
intent to cancel, in conformity with sec.25.58(a). 
 Section 25.85. Retention of Records. Comment: One commenter argues that with 
"the announced policy of a three- or five-year examination schedule" by the 
Department, requiring retention of records after the last examination date is 
unreasonable. The commenter suggests that the records be kept for the statutory 
period and then placed in electronic storage. Another commenter argues that the 
requirement that insurance premium finance companies retain account records in 
original form for one year after the last audit is unreasonable. The commenter 
suggests that the time limit be one year, or three years maximum. 
 Agency Response: The Department disagrees. The suggestions presented by the 
commenters seem to be more burdensome than  sec.25.85. The section requires 
retention of records of paid out loans for one year after the last examination. 
After one year, the records may be microfilmed for the remainder of the 
statutory period. 
 Section 25.87. Annual Reports. Comment: One commenter recommends that sec.25. 
87 be amended to require that annual reports be prepared using generally 
accepted accounting principles. 
 Agency Response: The Department disagrees that this should be made a 
requirement since modified generally accepted accounting principles are already 
used by insurance premium finance companies. 
       
  Subchapter A. General Provisions 
 
  28 TAC sec.sec.25.1-25.4, 25.6, 25.8-25.13 
 
  The new sections are adopted pursuant to the Insurance Code, Articles 24. 09 
and 1.03A, and the Government Code, sec. sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 
 
  sec.25.1. Definitions.  The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
   
     Affiliated-When any person is connected by commonality of interest or 
ownership with another person. 
   
     Agent-An individual licensed by the Texas Department of Insurance pursuant 
to Insurance Code, Article 21.07 (licensing of agents), Article 21.14 (local 
recording agents), Article 21.07-3 (managing general agents), and Article 1.14-2 
(surplus lines agents). 
   
     Annual percentage rate-That rate computed in accordance with the 
regulations issued by the Federal Reserve Board of the United States pursuant to 
section 1606 of the Consumer Credit Protection Act, 15 U.S.C. sec.1601, et seq. 
   
     The Department -The Texas Department of Insurance. 
   
     Insurer-A company or other entity formally liable on an insurance risk. 
   
     Licensee-A person holding an insurance premium finance license. 
   
     Person-An individual, partnership, corporation, joint venture, trust, 
association, or any other legal entity, however organized. 
   
     Premium finance company-An insurance premium finance company as defined by 
the Insurance Code, Article 24.01. 
   
     Ownership in a corporation-The possession of 10% or more stock in a 
corporation. 
 
   
  sec.25.9. Texas Automobile Insurance Plan Association Financing Disclosure and 
Premium Finance Comparison Disclosure Form. 
 
  (a) Before an insurance premium finance company may finance a policy insured 
through the Texas Automobile Insurance Plan Association (TAIPA), it must require 
disclosure to the insured or prospective insured the payment plan available 
through TAIPA. A comparison between the terms of financing the policy with an 
insurance premium finance company and the use of the payment plan available 
through TAIPA must be made. 
   
  (b) This disclosure shall be made using the Premium Finance Comparison 
Disclosure Form (Disclosure Form), which the Department adopts and incorporates 
by reference. This form is published by the Department and may be obtained from 
the Premium Finance Licensing Unit, Mail Code 107-5A, Texas Department of 
Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas, 78714-9104. 
   
  (c) The insurance premium finance company shall maintain copies of the 
Disclosure Forms as evidence to an examiner that disclosure of the TAIPA payment 
plan was made to the insured. 
 
     
  sec.25.10. Premium Refunds. 
 
  (a) If the insurance premium finance company notified the insurer of the 
existence of the premium finance agreement pursuant to the Insurance Code, 
Article 24.22, then the entire unearned premium owed the insurance premium 
finance company (in trust for the insured) shall be paid within 60 days from the 
date notice of cancellation was received. If an audit of the insured's records 
is required to determine the amount of premiums, the time shall be extended to 
90 days. If the audit is delayed because of acts of the insured, the 90-day 
period shall be extended to provide a reasonable time to conduct the audit and 
determine the amount of premiums earned. 
   
  (b) If the insurance premium finance company does not give notice of the 
premium finance agreement to the insurer (as provided by the Insurance Code, 
Article 24.22), then the total unearned premium refund shall be paid directly to 
the insurance premium finance company within 120 days from the effective date of 
the cancellation, unless the insurer has already refunded the unearned premium 
to the insured due to cancellation. 
   
  (c) The insurance premium finance company shall return any monies due to the 
insured within 20 days from the date returned unearned premiums are received 
from the insurer or agent. 
   
  (d) This section shall apply to cancelled policies written through or in a 
statutory plan or pool, except that the agent who applied for the statutory plan 
or pool policy on behalf of the insured shall be solely responsible for the 
payment of any unearned commission owed to the insurance premium finance company 
unless the insuring company tenders the entire unearned premium including 
unearned commission. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505070 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
             
  Subchapter B. Licensing and Regulation 
 
  28 TAC sec.sec.25.21-25.33 
 
  The new sections are adopted pursuant to the Insurance Code, Articles 24. 09 
and 1.03A, and the Government Code, sec. sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505071 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter C. Operations 
 
  28 TAC sec.sec.25.41-25.65 
 
  The new sections are adopted pursuant to the Insurance Code, Articles 24. 09 
and 1.03A, and the Government Code, sec. sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
 
  sec.25.42. Rate and Refund Chart. Each insurance premium finance company shall 
establish and maintain a rate and refund chart which complies with the 
authorized rates required by the Credit Code, Chapters 3 and 4, and the 
Insurance Code, Chapter 24. A copy of the rate and refund chart prepared by the 
insurance premium finance company shall be made available for review and 
inspection upon request by an examiner of the Department. The rate and refund 
chart shall also be made available to the insured upon request. 
 
   
  sec.25.43. Acceptance or Rejection. An insurance premium finance company may 
not alter any insurance premium finance agreement unless agreed to by the 
insured. The insurance premium finance company shall return any unacceptable 
agreement to the agent from whom it was received within three working days of 
the date of receipt. 
 
   
  sec.25.47. Policies Issued Through the Texas Medical Liability Insurance 
Underwriting Association. Insurance coverage provided by authority of the 
Insurance Code, Article 21.49-3 (Texas Medical Liability Insurance Underwriting 
Association Act) may not be financed in conjunction with other types of 
insurance under a single insurance premium finance agreement, but must be 
financed by a separate agreement. 
 
   
  sec.25.58. Notice of Intent to Cancel Insurance Because of Default. 
 
  (a) A notice of intent-to-cancel insurance because of default, as provided by 
the power of attorney agreement, shall be titled "Notice of Intent to Cancel" 
and shall be sent to the insured with a cancellation date not earlier than ten 
days after the mailing date of the notice of intent to cancel. The insurance 
premium finance company shall establish and maintain either a computer printout 
or a copy of the intent-to-cancel notice if the policy is subsequently 
cancelled. Such records shall provide evidence to an examiner that the notice 
was mailed. A copy of the notice of intent-to-cancel insurance because of 
default shall be sent to the insurance agent. 
   
  (b) If the insurance policy financed by an insurance premium finance company 
is written under the authority of the Texas Medical Liability Insurance 
Underwriting Association (Insurance Code, Article 21.49-3), a copy of the notice 
of intent-to-cancel and the request for cancellation shall be sent to the Texas 
Medical Liability Insurance Underwriting Association. 
 
     
  sec.25.59. Notice of Cancellation Because of Default. 
 
  (a) A notice of cancellation because of default shall be titled "Notice of 
Cancellation" and may not be sent to the insurer before the ten-day waiting 
period of the notice of intent-to-cancel has expired. Copies of the Notice of 
Cancellation shall be sent to the insured, insurance agent, and insured's 
permanent account file. The insurance company policy cancellation date shall be 
the day following receipt of the notice of cancellation issued by the insurance 
premium finance company or the date specified on the notice of cancellation, 
whichever is later, unless otherwise stated in the insurance policy or by 
applicable law. 
   
  (b) If the insurance policy financed by an insurance premium finance company 
is written under the authority of the Texas Medical Liability Insurance 
Underwriting Association (Insurance Code, Article 21.49-3), a copy of the notice 
of intent-to-cancel and the request for cancellation shall be sent to the Texas 
Medical Liability Insurance Underwriting Association. 
 
     
  sec.25.64. Notification to Insurers. 
 
  (a) An insurance premium finance company which enters into an insurance 
premium finance agreement with an insured to finance an insurance policy or 
policies shall notify the insurer whose premiums are being financed of the 
existence of such agreement within a reasonable period of time not to exceed 30 
days after the date such agreement is received by the insurance premium finance 
company. 
   
  (b) The word "insurer", as used in the Insurance Code, Articles 24.17 and 
24.22, means the company or other entity formally liable on the insurance risk. 
It does not mean an insurance agent. Accordingly, notice to an insurance agent 
or to a managing general agency of the insurer is not notice under the Insurance 
Code, Article 24.22, unless the premium finance company has received written 
authorization from a county mutual insurance company to notify an agent or 
managing general agent. If the insurance premium finance company gave notice to 
the insurer in accordance with the Insurance Code, Article 24.22, the insurer 
shall, as provided in the Insurance Code, Article 24.17, return whatever 
unearned premiums are due under the insurance contract directly to the insurance 
premium finance company within 60 days. Return of unearned premium through an 
accounts current with an agent or agency does not satisfy the insurer's 
obligation under the Insurance Code, Article 24.17. 
 
     
  sec.25.65. Relocation of Accounts. When current accounts are relocated to an 
affiliated office, both licensed offices shall maintain current records of the 
accounts relocated. A copy of the Notification of Relocation letter to the 
insured shall be filed with the Department at the time it is mailed to the 
insured. This notice shall include the following: (1) Exact name of the company 
as licensed, (2) Present physical address, (3) New physical address, (4) Present 
mailing address, (5) New mailing address, (6) Present phone number, (7) New 
phone number, and (8) Date of relocation of account. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505072 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
           
  Subchapter D. Advertising 
 
  28 TAC sec.sec.25.71-25.76 
 
  The new sections are adopted pursuant to the Insurance Code, Articles 24. 09 
and 1.03A, and the Government Code, sec. sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505073 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
         
  Subchapter E. Examinations and Annual Reports 
 
  28 TAC sec.sec.25.81-25.90 
 
  The new sections are adopted pursuant to the Insurance Code, Articles 24. 09 
and 1.03A, and the Government Code, sec. sec.2001.004 et seq (Administrative 
Procedure Act). Article 24.09 authorizes the Texas Department of Insurance to 
adopt and enforce rules necessary to carry out the provisions of Chapter 24 
(regulating insurance premium finance companies). Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
 The following article is affected by this adoption: Insurance Code, Chapter 24. 
 
 
  sec.25.84. Individual Account Records. Individual account records on each 
insured shall be maintained to reflect the complete account history as to 
funding, charges, payments, and adjustments, if any, and shall include the 
accurate dates of all entries to the account. The records shall also reflect the 
date the finance charge began to accrue. Individual account records shall 
disclose the date that the insurance premium finance company requested 
cancellation of the financed insurance policies. The individual's file shall 
contain copies of premium finance agreements, memoranda, notices of intent to 
cancel or computer printouts of such notices, and cancellation notices. A 
complete account history shall be maintained by the licensee in all closed 
account files. All records of proof-of-funding must be available for examination 
by the Department. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505074 
  Alicia M. Fechtel 
 General Counsel and Chief Clerk 
 Texas Department of Insurance 
    Effective date: May 17, 1995 
 Proposal publication date: November 22, 1994 
 For further information, please call: (512) 463-6327 
         
                 
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part III. Texas Youth Commission 
  Chapter 87. Treatment 
  
  Program Planning 
 
  37 TAC sec.87.25 
 
  The Texas Youth Commission (TYC) adopts an amendment to  sec.87.25, concerning 
Title IV-E foster care youth, without changes to the proposed text as published 
in the March 24, 1995, issue of the Texas Register (20 TexReg 2193). 
 The justification for amending the section is for TYC to have a more efficient 
process for holding dispositional review hearings when youth are on runaway 
status. 
 The amendment will allow an attorney to appear at a dispositional review 
hearing on behalf of a TYC youth who is on runaway status. The hearing may be 
conducted by telephone conference. 
 No comments were received regarding adoption of the amendment. 
 The amendment is adopted under the 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. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505030 
  Steve Robinson 
 Executive Director 
 Texas Youth Commission 
    Effective date: May 17, 1995 
 Proposal publication date: March 24, 1995 
 For further information, please call: (512) 483-5244 
         
           Chapter 88. Special Management Programs 
  
  37 TAC sec.88.5 
 
  The Texas Youth Commission (TYC) adopts new sec.88.5, concerning the new 
aggression intervention and management unit at the TYC Residential Treatment 
Center at Corsicana, without changes to the proposed text as published in the 
March 24, 1995, issue of the Texas Register (20 TexReg 2193). 
 The justification for the new section is for TYC to provide more efficient 
treatment in an appropriate placement for severely emotionally disturbed, 
assaultive youth. 
 The new rule will provide for the special management of seriously and or 
chronically assaultive youth who are severely emotionally disturbed. Qualified 
youth may be moved to the unit for treatment following the appropriate Level I 
or Level II due process hearing conducted to establish the behavior criteria. 
 No comments were received regarding adoption of the new rule. 
 The new rule is adopted under the Human Resources Code,  sec.61.075, which 
provides the Texas Youth Commission with the authority to order the child's 
confinement under conditions it believes best designed for the child's welfare 
and the interests of the public. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's authority. 
 Issued in Austin, Texas, on April 26, 1995. 
 TRD-9505031 
  Steve Robinson 
 Executive Director 
 Texas Youth Commission 
    Effective date: May 17, 1995 
 Proposal publication date: March 24, 1995 
 For further information, please call: (512) 483-5244 
         
             
  TITLE 43. TRANSPORTATION 
 Part I. Texas Department of Transportation 
  Chapter 1. Management 
  
  Advisory Committees 
 
  43 TAC sec.1.82, sec.1.83 
 
  The Texas Department of Transportation adopts amendments to sec.1.82 and 
sec.1.83, concerning department advisory committee operations and procedures and 
advisory committee responsibilities, with changes to the proposed text as 
published in the February 28, 1995, issue of the Texas Register  (20 TexReg 
1410). 
 Texas Civil Statutes, Article 46c-3, requires the Texas Transportation 
Commission to appoint a six-member Aviation Advisory Committee to advise the 
commission and the Texas Department of Transportation on aviation matters. Texas 
Civil Statutes, Article 6673h, requires the commission to appoint a Bicycle 
Rules Advisory Committee to advise the commission and the department on the 
development of rules for bicyclists' use of the state highway system. Texas 
Civil Statutes, Article 6673h, provided that on passage of initial rules 
regarding bicycle road use, the Bicycle Rules Advisory Committee was to be 
abolished. 
 Section 1.82 is amended to provide that Aviation Advisory Committee members be 
appointed for three-year staggered terms. 
 Section 1.82 and sec.1.83 are amended to abolish the Bicycle Rules Advisory 
Committee in accordance with Texas Civil Statutes, Article 6673h. Bicycle road 
use rules were adopted by the commission on December 21, 1994, and thus, the 
department's rules concerning the Bicycle Rule Advisory Committee are obsolete 
and should be deleted. 
 On March 13, 1995, the department conducted a public hearing on the proposed 
adoption of amendments to sec.1.82 and sec.1.83, in order receive testimony. 
During the public hearing the department clearly stated its intent, in order to 
maximize the benefit of the proposed amendments and to ensure continuity in 
Aviation Advisory Committee operations, to begin staggering member term limits 
effective August 31, 1995 instead of August 31, 1996 as published. No oral or 
written comments were received. 
 The amendments are adopted under Texas Civil Statutes, Articles 6666, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically Texas Civil Statutes, Article 46c-3, which requires the Texas 
Transportation Commission to appoint a six-member Aviation Advisory Committee to 
advise the commission and the Texas Department of Transportation on aviation 
matters, and Texas Civil Statutes, Article 6673h, which require the commission 
to appoint a Bicycle Rules Advisory Committee to advise the commission and the 
department on the development of rules for bicyclists' use of the state highway 
system and provides that on passage of initial rules regarding bicycle road use, 
the Bicycle Rules Advisory Committee was to be abolished. 
 
 
  sec.1.82. Statutory Advisory Committee Operations and Procedures. 
 
  (a) Applicability. This section applies to statutory advisory committees. 
   
  (b) Membership. 
 
  (1) Aviation. 
 
  (A) The commission will appoint the members of the aviation advisory committee 
to staggered terms of three years, unless sooner removed at the discretion of 
the commission, with two members' terms expiring August 31 of each year. 
   
  (B)  The commission will appoint six members in August, 1995 for initial terms 
as follows: two to serve terms expiring August 31, 1997, two to serve terms 
expiring August 31, 1998, and two to serve terms expiring August 31, 1999. 
   
  (C) Existing members shall serve until the commission appoints new members 
under subparagraph (B) of this paragraph. 
     
  (2) Environmental and Public Transportation. Members of the Environmental and 
Public Transportation Advisory Committees shall be appointed and shall serve 
pursuant to Texas Civil Statutes, Article 6663b and Texas Civil Statutes, 
Article 6673g, respectively. 
   
  (3) Officers. Each committee shall elect a chair and vice-chair by majority 
vote of the members of the committee. 
     
  (c)-(h)  (No change.) 
 
     
  sec.1.83. Statutory Advisory Committees. 
 
  (a) Environmental Advisory Committee. 
 
  (1) Purpose. Created pursuant to Texas Civil Statutes, Article 6673g, the 
Environmental Advisory Committee provides a forum for the exchange of 
information between the department, the commission and committee members 
representing the general public and the environmental community. Advice and 
recommendations expressed by the committee provide the department and the 
commission with greater insight with regard to environmental issues; thus, 
facilitating the department's and the commission's goal of ensuring that 
environmental considerations are fully integrated into department and commission 
rules and policies. 
   
  (2) Duties. The committee shall: 
 
  (A) advise the commission on rules of the department that may affect the 
environment; 
   
  (B) become informed and knowledgeable of the department's environmental 
activities, and the environmental policies, and rules which govern the 
department's operations; 
   
  (C) communicate to the department any views or recommendations of the 
committee regarding the department's environmental policies, rules, and 
procedures; 
   
  (D) communicate the roles, mission, and environmental policies of the 
department in order to promote a better understanding of the department 
throughout the general public and environmental community; and 
   
  (E) perform other duties as determined by order of the commission. 
     
  (3) Meetings. The committee shall meet: 
 
  (A) as necessary, at the call of its chair, but not exceeding once each month; 
   
  (B) at the request of the commission; and 
   
  (C) as required by sec.1.84 of this title (relating to Rulemaking). 
     
  (4) Duration. The committee is abolished September 1, 1997, unless continued 
in existence by affirmative vote of the commission. 
     
  (b) Aviation Advisory Committee. 
 
  (1)  Purpose. Created pursuant to Texas Civil Statutes, Article 46c-3, the 
Aviation Advisory Committee provides a direct link for general aviation users' 
input into the Texas Airport System. The committee provides a forum for exchange 
of information concerning the users' view of the needs and requirements for the 
economic development of the aviation system. The members of the committee are an 
avenue for interested parties to utilize to voice their concerns and have that 
data conveyed for action for system improvement. Additionally, committee members 
are representatives of the department and its Aviation Division, able to furnish 
data on resources available to the Texas aviation users. 
   
  (2) Duties. The committee shall: 
 
  (A)  periodically review the adopted capital improvement program; 
   
  (B)  advise the commission on the preparation and adoption of an aviation 
facilities development program; 
   
  (C) advise the commission on the establishment and maintenance of a method for 
determining priorities among locations and projects to receive state financial 
assistance for aviation facility development; 
   
  (D) advise the commission on the preparation and update of a multi-year 
aviation facilities capital improvement program; and 
   
  (E) perform other duties as determined by order of the commission. 
     
  (3) Meetings. The committee shall meet once a calendar year and such other 
times as requested by the Aviation Division Director. 
   
  (4)  Duration. The committee is abolished September 1, 1997, unless continued 
in existence by affirmative vote of the commission. 
     
  (c) Public Transportation Advisory Committee. 
 
  (1) Purpose. Created pursuant to Texas Civil Statutes, Article 6663b, the 
Public Transportation Advisory Committee provides a forum for the exchange of 
information between the department, the commission, and committee members 
representing the transit industry and the general public. Advice and 
recommendations expressed by the committee provide the department and the 
commission with a broader perspective regarding public transportation matters 
that will be considered in formulating department policies. 
   
  (2) Duties. The committee shall: 
 
  (A)  advise the commission on the needs and problems of the state's public 
transportation providers, including recommending methods for allocating state 
public transportation funds if the allocation methodology is not specified by 
statute; 
   
  (B) comment on proposed rules or rule changes involving public transportation 
matters during their development and prior to final adoption unless an emergency 
requires immediate action by the commission; and 
   
  (C) perform other duties as determined by order of the commission. 
     
  (3) Meetings. The committee shall meet: 
 
  (A) as necessary, at the call of its chair, but not exceeding once each month; 
   
  (B) at the request of the commission; and 
   
  (C) as required by sec.1.84 of this title (relating to Rulemaking). 
     
  (4) Duration. The committee is abolished September 1, 1997, unless continued 
in existence by affirmative vote of the commission. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505160 
  Robert E. Shaddock 
 General Counsel 
 Texas Department of Transportation 
    Effective date: May 19, 1995 
 Proposal publication date: February 28, 1995 
 For further information, please call: (512) 463-8630 
         
             
  43 TAC sec.1.85 
 
  The Texas Department of Transportation adopts an amendment to sec.1.85, 
concerning department advisory committees, without changes to the proposed text 
as published in the January 24, 1995, issue of the Texas Register  (20 TexReg 
329). 
 The Public Transportation Assessment Advisory Committee is adopted to create a 
forum for communication among the department, the transit industry, and transit 
users for issues pertaining to the comprehensive assessment of public 
transportation which is being conducted to assess program efficiency and 
effectiveness, demand and ridership, funding requirements, and future program 
direction. The committee will review reports and other deliverables developed 
during the assessment and shall provide advice and recommendations to the 
department pertaining to the assessment, its findings, and recommendations. 
 On February 6, 1995, the department conducted a public hearing on the proposed 
amendment and no comments were received. 
 The amendment is adopted under Texas Civil Statutes, Articles 6666, which 
provide the Texas Transportation Commission with the authority to establish 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically Texas Civil Statutes, Article 6252-33, which provide that a 
state agency that is advised by an advisory committee shall adopt rules that 
state the purpose of the committee and describe the task of the committee and 
the manner in which the committee will report to the agency. 
 
  This agency hereby certifies that the rule as adopted has been reviewed by 
legal counsel and found to be a valid exercise of the agency's legal authority. 
 Issued in Austin, Texas, on April 28, 1995. 
 TRD-9505159 
  Robert E. Shaddock 
 General Counsel 
 Texas Department of Transportation 
    Effective date: May 19, 1995 
 Proposal publication date: January 24, 1995 
 For further information, please call: (512) 463-8630