PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 1. ADMINISTRATION Part IV. Office of the Secretary of State Chapter 81. Elections Voter Registration 1 TAC sec.sec.81.11-81.29 The Office of the Secretary of State proposes the repeal of sec.81.11 and new sec.sec.81.11-81.29, concerning disbursement of funds under the Texas Election Code, Chapter 19. These new rules will allow for a more efficient operation of the Chapter 19 fund for both the county voter registrar and the Office of the Secretary of State. These rules designate which goods and services are payable with Chapter 19 funds and outline procedures to be followed by county voter registrars to obtain such funding. Clark Kent Ervin, Assistant Secretary of State, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Ervin also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be a better use of the Chapter 19 funds and a more efficient disbursement processing procedure. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on these proposed rules may be submitted to the Office of the Secretary of State, Bill Bilyeu, Program Administrator for Elections Funds Management, P.O. Box 12060, Austin, Texas 78711. 1 TAC sec.sec.81.11-81.129 The new rules are proposed under the Texas Election Code, sec.31.003 and sec.19.002(b), which provides the Secretary of State with the authority to obtain and maintain uniformity in the application, interpretation, and operation of provisions under the Texas Election Code and other election laws, and in performing such duties, to prepare detailed and comprehensive written directives and instructions based on such laws, and to adopt rules consistent with the Election Code. The Texas Election Code, Chapter 19, sec.19.002(b) is affected by this proposed amendment. sec.81.11. Definitions. The following words and terms, when used herein, shall have the following meanings, unless the context clearly indicates otherwise. Agency-The Office of the Secretary of State. Chapter 19-Texas Election Code Annotated, Chapter 19 (Vernon 1986 and Supplement 1995). Chapter 19 funds -Funding available to a county voter registrar pursuant to Texas Election Code Annotated, sec.19.002 (Vernon 1986 and Supplement 1995). Travel Guide-State of Texas Travel Allowance Guide issued by the Texas State Comptroller. Mileage Guide-Official State Mileage Guide published by Statistical Research Service and adopted by the State Comptroller. NVRA-(National Voter Registration Act) House Bill 127, Chapter 797, 74th Legislature, 1995. Rule-A rule adopted under Chapter 81 of the Texas Administrative Code. Section-A section of Texas Election Code Annotated (Vernon 1986 and Supplement 1995). sec.81.12. Applicable Sections of the Texas Election Code. (a) Chapter 19 provides, in pertinent part, as follows: (1) The Commissioners Court may not consider the availability of state funds under this chapter in adopting the county budget for the office of voter registrar (sec.19.006); (2) State funds disbursed under this chapter may be used only to defray expenses of the voter registrar's office in connection with voter registration (sec.19.004). (b) The Secretary of State has interpreted sec.19.006 to mean that the county must provide for the normal operation of the voter registrar's office. The Secretary of State has interpreted sec.19.004 to mean that Chapter 19 funds shall be expended on items intended to be used exclusively for voter registration, unless the cost is prorated. sec.81.13. Allowable Uses of Chapter 19 Funds. Chapter 19 funds may be used to pay for any item or service designed to increase the number of registered voters in the state, maintain and report an accurate list of the number of registered voters, and/or increase the efficiency of the voter registration office. All Chapter 19 funding requests submitted to the Agency must state which of these purposes the requested item(s) or service(s) will further. If there is a question regarding whether an item or service is payable from Chapter 19 funds, a written request should be submitted to the Agency detailing the estimated cost, projected payment date, purpose of item or service, and how it relates to the aforesaid purposes. The Agency will respond to this request in writing within 14 business days. sec.81.14. "Normal Day-to-Day Operation" Defined. Consistent with the intent of s81.12 of this title (relating to Applicable Sections of the Texas Election Code) funds may not be used to fund the normal day-to-day operation of the voter registrar's office. The normal day-to-day operation of the voter registrar's office must be funded by the Commissioners Court when adopting the budget for voter registration in their county. "Normal day-to-day operation" that must be funded by the county means any duty required to be performed by counties under the Texas Election Code. Examples of such statutory duties include, but are not limited to, the physical acceptance and processing of voter registration certificates and renewals under Chapter 13, notices and corrections made under Chapter 15 and Chapter 16 and the processing and cost of supplying voter lists under sec.18.001. Examples of items which are considered expenses incurred in the normal day-to-day operation of voter registrars' offices and not payable with Chapter 19 funds include, but are not limited to, office furniture, including file cabinets, office supplies, equipment leases, any phone line not dedicated to a computer modem, the repair and warranty of office equipment, printing of voter registration cards, and normal postage costs. The Agency has the sole authority to determine whether a requested item or service is a day-to- day expense and thus not payable with Chapter 19 funds. sec.81.15. Funding Period.
    Chapter 19 funding requests for items and services must be received within 30 days of the vendor's invoice date. Travel expense reimbursement requests must be submitted within 30 days of the completion of travel. Temporary employee funding requests may not cover longer than a 12-week period and must be submitted within 30 days of the end of the subject work period. sec.81.16. Chapter 19 Purchase Voucher Required for Payment. The Agency shall prescribe a Chapter 19 Purchase Voucher Form for use by each county voter registrar. In addition to any supporting documentation required by this chapter, the voter registrar must submit an originally and manually signed Chapter 19 Purchase Voucher Form for each payee. If a Chapter 19 Purchase Voucher Form is received by the Agency seeking funding which is not allowable under the Texas Election Code, Chapter 19, these rules, and Agency directives, the Agency shall so notify the voter registrar in writing within 14 business days of receipt of such form. All requests must be mailed to: Office of the Secretary of State, Attention: Elections Funds Management, P. 0. Box 12060, Austin, Texas 78711- 2060. sec.81.17. Competitive Bidding Generally Required. Except for the purchase of voter registration advertising, the voter registrar shall submit bids for the purchase of items or services to be paid for with Chapter 19 funds according to the following guidelines. (1) No competitive bids for individual purchases of less than $500 are required. However, the voter registrar shall take the steps necessary to insure that all charges are reasonable and competitive relative to the local market. (2) Request for funding for individual purchases of $500 but less than $10,000 must be accompanied by three written bids from three different vendors stating the vendor's name, complete mailing address, telephone number, and the amount of the bid. Copies of all bids received will be forwarded to the Agency. (3) Any request for funding for a purchase of $10,000 or greater must have received the prior written approval of the Agency. Upon receipt of such approval, the voter registrar will advertise for bids in the manner dictated by county regulations. Copies of all bids received will be forwarded to the Agency. (4) If a purchase is handled by a county's purchasing department, the voter registrar may use county purchasing guidelines instead of those set by paragraphs (1) and (2) of this section. However, a copy of the bids, a copy of the county guidelines and signed recommendation of the county purchasing department must be submitted with the Chapter 19 Purchase Voucher Form. (5) Sole source vendor purchases and situations when the lowest bid is not accepted are discouraged. In rare instances when this type of purchase is required, a waiver request, stating a justification, must be submitted and signed by the voter registrar. If the item to be purchased is greater than $1,000, the waiver request must also be signed by the person responsible for county purchases. Only when a sole source vendor purchase or the acceptance of a bid higher than the lowest bid is required by county guidelines may such purchases be paid for with Chapter 19 funds and then, only upon receipt of the waiver request described above. sec.81.18. Approval Requirements for the Secretary of State. A Chapter 19 Purchase Voucher Form shall not be processed for payment without the written approval of the Deputy Assistant Secretary of State for Elections. Chapter 19 Purchase Voucher Forms in excess of $1,000 shall not be processed for payment without the written approval of the Assistant Secretary of State. Chapter 19 Purchase Voucher Forms in excess of $5,000 shall not be processed for payment without the written approval of the Secretary of State. sec.81.19. Method of Payment. Except for travel advances provided by sec.81.23 of this title (relating to Travel Using Chapter 19 Funds Authorized), all payments made from Chapter 19 funds will be made only after the goods or services have been received. An invoice from the vendor must be submitted with all Chapter 19 Purchase Voucher Forms. The signed timesheet required by sec.81.22 of this title (relating to Use of Chapter 19 Funds for Temporary Employees) will be considered a "vendor's invoice" for purposes of this rule. Warrants issued by the State Comptroller of Public Accounts will be payable to the county, county employees for travel reimbursements, or to third party vendors or providers of goods or services, as the case may be. Except for travel expenses authorized by Rule 81.23, no cash payments may be made from Chapter 19 funds. All disbursements of Chapter 19 funds must be made by check or warrant. sec.81.20. Ownership of Equipment Purchased with Chapter 19 Funds. Items and equipment purchased with Chapter 19 funds are the property of the county. The county is responsible for the maintenance and repair of such items and equipment. If items or equipment that were purchased with Chapter 19 funds are no longer needed or useful for voter registration purposes, the items or equipment may be transferred, with the voter registrar's approval, to other county uses. If the items or equipment are no longer needed by the county, they may be disposed of in the manner set by county guidelines. Proceeds received from the sale of items or equipment purchased with Chapter 19 funds may be used only for voter registration purposes in a manner consistent with these rules. sec.81.21. The Agency Required to Mail Semi-Annual Reports. The Agency will submit semi-annual reports to each voter registrar and to each county financial officer reflecting the activity and available balances in each county's Chapter 19 fund account. The voter registrar will promptly notify the Agency if discrepancies are noted between the records of the voter registrar and such semi-annual report. sec.81.22. Use of Chapter 19 Funds for Temporary Employees. The Commissioners Court must budget for the adequate staffing of the voter registrar's office. In those instances when an unpredicted and unpredictable workload cannot be handled by the permanent voter registration staff, the Agency may approve, on a case-by- case basis, the use of Chapter 19 funds for the employment of temporary personnel in the voter registration office. In order to receive Chapter 19 funding for this purpose, the voter registrar must submit an originally and manually signed Chapter 19 Purchase Voucher Form, timesheet signed by both the temporary employee and his/her supervisor, and a description of duties performed by the temporary employee(s). These temporary personnel may be used only for special projects related to voter registration and not for the replacement of permanent full-time or part-time employees. Permanent full-time and part-time county employees may not be compensated with Chapter 19 funds. The voter registrar may have Chapter 19 funded temporary staffing a maximum of any 26 weeks out of the 52 week state fiscal year (September 1 through August 31). For example, if Employee A works one week and Employee B works the next week, the county is allowed only 24 more weeks of Chapter 19 funded temporary personnel. However, if the county employs 15 temporaries in the same week, this would count as only one week of the 26-week allowance. For tracking purposes, working one day of one week counts the same as working an entire week. For example, if Employee C works Monday only, it will count as one week of the 26-week Chapter 19 allowance. The Agency does not issue tax forms to temporary employees funded with Chapter 19 funds. For this reason, the Agency recommends that temporary employment agencies be used if available. The voter registrar should discuss the tax implications of using temporary personnel with the county auditor. The fee or rate of pay to be paid to temporary employees must reflect the fee or rate prevailing in the locale for the same or similar services. Work related injuries to temporary personnel hired with Chapter 19 funds are not the liability of the Agency. sec.81.23. Travel Using Chapter 19 Funds Authorized. (a) Chapter 19 funds may be used to pay travel expenses incurred by the voter registrar and permanent full-time voter registration staffers to attend voter registration seminars and demonstrations. Chapter 19 funds cannot be used to reimburse fully a trip by the voter registrar, unless the purpose of the trip is exclusively related to voter registration. If a voter registrar wishes to travel to a seminar or meeting of which voter registration is not the only topic, the Agency will determine the appropriate portion of the trip expenses that is reimbursable pursuant to Chapter 19 and reimburse the registrar accordingly. (b) All voter registrars who seek reimbursement from Chapter 19 funds should plan their travel to achieve maximum economy and efficiency. All trips which include reimbursable travel must receive prior written approval from the Agency. A written travel request must state the purpose of the trip, itinerary, mode of transportation, and estimated expenses. A Chapter 19 Travel Form, prescribed by the Agency, and Chapter 19 Purchase Voucher Form must be submitted for each traveler within 30 days of the completion of travel. Travel reimbursement requests must include receipts for airfare, rental cars, lodging, seminar registration fees, and miscellaneous expenses. Travel advances will be approved, if at all, on a case-by-case basis. Travel advance funding will not be made for meals or miscellaneous expenses. Travel advance requests must include a Chapter 19 Travel Form and Chapter 19 Purchase Voucher Form for each traveler. No further Chapter 19 Purchase Voucher Forms will be processed until the final accounting of any advanced travel is received. (c) Chapter 19 travelers must obtain the lowest cost airfare. Under no circumstances will the amount of a first class ticket be paid with Chapter 19 funds. Voter registrars are to share rental cars whenever practicable. The Agency must give prior approval for the use of a rental car and the voter registrar must make a proper deduction or reimbursement whenever there is personal use of a rental car. The rental of luxury cars will be disallowed, except in special circumstances requiring the use of large cars, i.e., several employees traveling together. Travel by personal car is reimbursable at the rate set in the Travel Guide per mile with mileage computed using the originating county seat as the departure point and computing final mileage using the Mileage Guide. If more than one person is traveling to the same destination by personally owned automobile, the travelers are to ride together in a single automobile if practicable. (d) Voter registrars who seek reimbursement from Chapter 19 funds for a trip with a final destination within Texas will receive the actual cost of lodging and meals, but such rates may not exceed the rates set by the Travel Guide. Voter registrars who seek reimbursement from Chapter 19 funds for a trip with a final destination outside Texas will receive the actual cost of lodging and meals not to exceed the out-of-state meals and lodging rates set by the Travel Guide for that location. The out-of-state rate for a city is available from the State Comptroller of Public Accounts or the Agency. The voter registrar must be away from his or her home county for at least six consecutive hours to qualify for the partial per diem allowed by the Guide. When requesting Chapter 19 reimbursement, the voter registrar must submit receipts for lodging, airfare, and miscellaneous expenses with the Chapter 19 Purchase Voucher Form and Chapter 19 Travel Form. Amounts in excess of the maximum amounts allowed by the Travel Guide will not be reimbursed. A Meal Itemization Worksheet, prescribed by the Agency, must be completed showing actual costs of meals and signed by each traveler requesting reimbursement. Receipts for such meal costs are not required to be attached. The State Appropriations Act, General Act, 73rd Legislature, Regular Session, Chapter 1051, Article V, sec.13(12), 1993 Texas Session Law Serv. 4251, 5340 (Vernon), prohibits reimbursement for the purchase of alcoholic beverages, gratuities, and tips. sec.81.24. Membership Dues Detailed. Membership dues to groups or associations are payable with Chapter 19 funds only if voter registration is the sole or primary purpose of the group or association. sec.81.25. Voter Registration Drives Encouraged. Pursuant to sec.81.12 of this title (relating to Applicable Sections of the Texas Election Code), efforts to increase the number of registered voters in the county are payable with Chapter 19 funds. Voter registration drive efforts include, but are not limited to, mailouts of applications to households, insertion of applications into newspapers, distributing applications at public locations, and other forms of advertising. "Promotional items" are not payable with Chapter 19 funds. Examples of non-payable promotional items include, but are not limited to, hats, drink coolers, t-shirts, weepuls, pens, pencils, jackets, frisbees, emory boards, fans, dominoes, windshield shades, change purses, and other such novelties or items of nominal value. Items purchased with Chapter 19 funds may include only the county and title of the voter registrar's office. Names of specific individuals may not be included on such materials. Chapter 19 funded voter registration drives must not promote a particular party, candidate, or issue. Chapter 19 funds may not be used for food and drink purchases, except for travel expenses allowed under s81.23 of this title (relating to Travel Using Chapter 19 Funds Authorized). sec.81.26. Technology Purchases Encouraged. Chapter 19 funds may be used for the purchase and initial installation of technological improvements for the voter registration office. "Technological improvements" include, but are not limited to, computer hardware, printers, and computer training. Computer programs and software that are necessary for the operation of the voter registration office are payable with Chapter 19 funds. However, as stated in Rule 81.22, the county may not be reimbursed for the compensation of full or part-time county employees and programmers. The cost of providing the information required by s18.063 of the Texas Election Code is specifically payable with Chapter 19 funds. Pursuant to sec.81.20 of this title (relating to Ownership of Equipment Purchased with Chapter 19 Funds), the upkeep and maintenance of items purchased with Chapter 19 funds is the responsibility of the county. Pursuant to sec.81.12 of this title (relating to Applicable Sections of the Texas Election Code), the voter registrar must prorate the cost between the county and Chapter 19 funds, if the purchased item is not entirely related to voter registration. sec.81.27. Electronic Office Equipment Purchases Encouraged. Chapter 19 funds may be used for the purchase of electronic office equipment. Examples of "electronic office equipment" include, but are not limited to, copiers, fax machines, optical imaging systems and typewriters. Office furniture is required for the normal day-to-day operation of the voter registrar's office and, accordingly, is not payable with Chapter 19 funds. Examples of such office furniture include, but are not limited to, desks, chairs and file cabinets. Pursuant to sec.81.20 of this title (relating to Ownership of Equipment Purchased with Chapter 19 Funds), the upkeep and maintenance of items purchased with Chapter 19 funds is the responsibility of the county. Pursuant to sec.81.12 of this title (relating to Applicable Sections of the Texas Election Code), the voter registrar must prorate the cost between the county and Chapter 19 funds if the purchased item is not entirely related to voter registration. sec.81.28. "NVRA" Expenses Payable. The NVRA amends the Texas Election Code, sec.19.004 to allow expenses incurred by the voter registrar in implementing and conducting the duties required by this act to be payable with Chapter 19 funds. Examples of payable expenses under the NVRA include, but are not limited to, computer programming changes required by sec.15.081 and the printing and mailing of confirmation notices required by sec.sec.13.146, 14.023, 16.0921. sec.81.29. Adherence to Rules Required. Failure to adhere to these rules may result in the denial of funding from Chapter 19 funds. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509441 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 463-5701 1 TAC sec.81.11 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Secretary of State or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under the Texas Election Code, sec.31.003 and sec.19. 002(b), which provides the Secretary of State with the authority to obtain and maintain uniformity in the application, interpretation, and operation of provisions under the Texas Election Code and other election laws, and in performing such duties, to prepare detailed and comprehensive written directives and instructions based on such laws, and to adopt rules consistent with the Election Code. The Texas Election Code, Chapter 19, sec.19.002(b) is affected by this proposed repeal. sec.81.11. Disbursement of Funds under the Texas Election Code, Chapter 17. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509440 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 463-5701 TITLE 16. ECONOMIC REGULATION Part VI. Texas Motor Vehicle Commission Chapter 109. Lessors and Lease Facilitators 16 TAC sec.sec.109.1-109.11 The Motor Vehicle Board of the Texas Department of Transportation proposes to adopt new sec.sec.109.1-109.11, concerning regulation of motor vehicle lessors and lease facilitators. The new sections are required pursuant to action taken by the 74th Legislative Session, Senate Bill 921, which, effective June 8, 1995, mandates regulation of lessors and lease facilitators by the Motor Vehicle Board. The new sections concern requirements for licensing and business practices and cause for cancellation of license. Brett Bray, Director, Motor Vehicle Division has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. There will be no significant impact on local economies or overall employment as a result of enforcing or administering the sections. Mr. Bray also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as result of enforcing the sections will be compliance with statutory changes enacted by the 74th Legislature requiring regulation of the motor vehicle leasing industry and providing a forum for complaints against lessors and lease facilitators engaging in illegal activities. There will be no effect on small businesses. The anticipated economic costs to businesses or persons who are required to comply with the rules as proposed will be the effort of assembling the information necessary to qualify for a license and the license fee. Comments on the proposed rules (six copies) may be submitted to Brett Bray, Director, Motor Vehicle Division, P.O. Box 2293, Austin, Texas, 78768. The Texas Motor Vehicle Board will consider final adoption of the proposed rules at its meeting on September 7, 1995. The deadline for receipt of comments on the proposed new sections will be 5:00 p.m. on August 31, 1995. The new sections are proposed under the Texas Motor Vehicle Commission Code, sec.3.06, which provides the Board with authority to adopt rules necessary and convenient to effectuate the provisions of the act and to govern practice and procedure before the agency. Motor Vehicle Commission Code, sec.sec.4.01, 5.03A, and 5.03B are affected by the proposed new sections. sec.109.1. Objective. The objective of these rules is to implement the intent of the legislature as declared in the Texas Motor Vehicle Commission Code, sec.5.03A and sec.5.03B, by prescribing rules to regulate the business of leasing motor vehicles in this state. sec.109.2. Definitions. The following words and terms, when used in the sections under this Section, shall have the following meanings, unless the context clearly indicates otherwise. Director-The Director of the Motor Vehicle Division, Texas Department of Transportation. Department-The Texas Department of Transportation. sec.109.3. License. No person may engage in business as a lessor or a lease facilitator unless that person has a currently valid license assigned by the Department. Lease facilitators must be licensed separately for each business location. sec.109.4. Application for a License. Application for a lessor's or lease facilitator's license, or a renewal thereof, shall be on a form prescribed by the director, properly completed by the applicant, and shall be submitted with supporting documentation showing all information requested. The supporting documentation shall include: (1) a letter of appointment from each lessor or lease facilitator; (2) a verification that each owner and officer of the applicant has not been convicted of any felony; (3) the fee for the license as prescribed by law for each type of license required; (4) photographs clearly depicting the overall appearance of the interior and exterior of the applicant's office; (5) verification of all assumed name(s), if applicable, in the form of assumed name certificate(s) on file with the Secretary of State or county clerk; (6) a copy of the Certificate of Incorporation on file with the Secretary of State, if a corporation; (7) a sample copy of the agreement between the lessor or lease facilitator and a lessee; and (8) a list of all lessors, including names and addresses, with which any lease facilitator executes leases. This list must be updated in writing upon renewal of a license, and within ten days of the addition of any lessor to this list. sec.109.5. Sanctions. (a) Revocation/Denial. The Motor Vehicle Board may cancel a lessor or lease facilitator's license if that lessor or lease facilitator: (1) fails to maintain an established and permanent place of business conforming to the Department's regulations under sec.109.7 of this title (relating to Lessors and Lease Facilitator Licensing, Established and Permanent Place of Business); (2) refuses to permit or fails to comply with a request by a representative of the department to examine, during normal working hours, the current and previous years' leasing records and ownership papers for vehicles owned, leased, or under that lessor or lease facilitator's control, and evidence of ownership or lease agreement for the property upon which the business is located; (3) fails to notify the department of a change of address within ten days after such change; (4) fails to notify the department of a change of lessor/lease facilitator's name or ownership within ten days after such a change; (5) fails to observe the fee restrictions as described in sec.5.03A and sec.5. 03B of the Motor Vehicle Commission Code; (6) fails to maintain leasing and/or advertisement records as described in these rules; (7) fails to remain regularly and actively engaged in the business of leasing or facilitating the leasing of vehicles as the person's license is issued; (8) violates any law relating to the sale, distribution or insuring of motor vehicles; (9) uses or allows use of a leasing or lease facilitating license for the purpose of avoiding any provisions of the Motor Vehicle Commission Code; (10) makes a material misrepresentation in any application or other information filed with the department; (11) fails to update in writing the list of lessors, including names and addresses, with which any lease facilitator executes leases within ten days of any changes to this list and upon renewal of the license; (12) violates any state or federal law relating to the leasing of new motor vehicles. (b) Referral fees prohibited. A lessor or lease facilitator may not, directly or indirectly, accept a fee from a dealer for referring customers who purchase or consider purchasing vehicles. sec.109.6. Off-Site Leasing.
      Unless otherwise authorized by statute, a lessor or lease facilitator is not permitted to lease or offer to lease from a location other than an established and permanent place of business which has been approved by the department. sec.109.7. Established and Permanent Place of Business.
        A lessor or lease facilitator must meet the following requirements at each location where vehicles are leased or offered for lease. (1) Office requirements. (A) A lessor or lease facilitator must be open to the public during normal working hours. The lessor or lease facilitator's business hours for each day of the week must be posted at the main entrance of the office, and the owner or a bona fide employee of the lessor or lease facilitator must be at the location during the posted business hours for the purpose of leasing vehicles. In the event the owner or a bona fide employee is not available to conduct business during the posted business hours, a separate sign must be posted indicating the date and time such owner or a bona fide employee will resume leasing operations. The structure must be of sufficient size to accommodate and must be equipped with a desk and chairs from which the lessor or lease facilitator transacts his business and be equipped with a working telephone instrument listed in the name under which the lessor or lease facilitator does business. (B) If a licensee's office is located in a residential structure, the office must be completely separated from the residential quarters and be in compliance with all applicable local zoning ordinances and deed restrictions. Such an office shall not be used as a part of the living quarters and must be readily accessible to the public without having to pass into or through any part of the living quarters. (C) Portable-type office structures may qualify, provided they meet the minimum requirements as set forth herein. (D) In those instances when two or more lessors or lease facilitators occupy the same business locations and conduct their respective leasing operations under different names, one office structure for all lessors or lease facilitator operating from such location will be acceptable; provided, however, each lessor or lease facilitator must have: (i) a separate desk from which that lessor or lease facilitator transacts business; (ii) a separate working telephone instrument and listing in the lessor or lease facilitator's name; and (iii) a separate right of occupancy meeting the requirements of this section. (2) Sign requirements. (A) A lessor or lease facilitator shall display a conspicuous sign showing the name under which the lessor or lease facilitator conducts business. Outdoor signs must contain letters no smaller than six inches in height. (B) Such sign must be readable from the address listed on the application for the lessor or lease facilitator license. (3) Lease requirements. If the premises from which a lessor or lease facilitator conducts business are not owned by the licensee dealer, such licensee shall maintain a lease continuous for a period of one year, and such lease agreement shall be on a properly executed form containing, but not limited to the following information: (A) the names of the lessor and lessee; (B) the legal description of the property or street address; and (C) the period of time for which the lease is valid. (4) Independence. A lessor or lease facilitator shall be independent of financial institutions and dealerships in location and in business activities unless that lessor or lease facilitator is an employee of such an institution or dealership. sec.109.8. Refund of Fees. No refund of the fees will be made when a lessor or lease facilitator's license is cancelled. sec.109.9. Records of Leasing. (a) Purchase and leasing records. Lessors and lease facilitators must maintain a separate and complete lease file for each transaction in their business office readily available and subject to inspection during regular business hours upon request by a Department representative containing the following information on each lease transaction for a period of at least three years after the expiration of the lease. (b) Content of records. As used in this subsection, a complete lease file shall include the following things: (1) names, addresses and telephone numbers of the lessor of the vehicle in the transaction; (2) names, addresses and telephone numbers of the lessee of the vehicle in the transaction; (3) names, addresses, telephone numbers and license numbers of the lease facilitator of the vehicle in the transaction; (4) name, home address, and telephone number of employee of lease facilitator who handled the transaction; (5) complete description of the vehicle involved in the transaction, including its Vehicle Identification Number (VIN); (6) name, address, telephone number and General Distinguishing Number of the Dealer selling the vehicle, as well as the franchise license number of the dealer if the vehicle in the transaction is a new motor vehicle; (7) amount of fee received by or paid to the lease facilitator; (8) copies of the buyers order and sales contract for the vehicle; (9) copy of the lease contract; (10) copies of all other contracts, agreements or disclosures between the lease facilitator and the consumer lessee; and (11) copies of the front and back of Manufacturer's Statement/Certificate of Origin or the title of the vehicle involved in the transaction. (c) Records of advertising. A lessor or lease facilitator must maintain copies of all advertisements, brochures, scripts or electronically reproduced copies, in whatever medium appropriate, of promotional materials for a period of at least 18 months, subject to inspection upon request by a department representative at the business of the licensee during regular business hours. (1) All advertisements by lessors or lease facilitator must be in accordance with the Motor Vehicle Board Advertising Rules. (2) Lessors and lease facilitator may not state or infer, either directly or indirectly, in any manner such as advertisements, stationery or business cards that their business involves the sale of motor vehicles. (d) Title assignments. All certificates of title, manufacturer's certificates of origin, or other evidence of ownership for vehicles which have been acquired by a lessor for lease must be properly assigned from the selling dealer into the lessor's name. sec.109.10. Change of Lessor or Lease Facilitator Status. (a) Change of ownership. A lessor or lease facilitator shall notify the department in writing within ten days if there is any change of ownership. Upon notification of a change of the majority ownership interest, the department shall cancel the existing license and the new licensee must qualify under this section. (b) Change of operating status of business location. A licensee shall notify the department in writing within ten days of the opening, closing or relocation of any licensed business location. Each new location must meet all applicable regulations under the Texas Motor Vehicle Commission Code and these rules. sec.109.11. Required Notice to Lessees. Lessors and lease facilitators shall provide notice of the complaint procedures provided by s3. 08(i) and sec.6.07 of the Texas Motor Vehicle Commission Code to each lessee of a new motor vehicle with whom they transact a lease. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 27, 1995. TRD-9509387 Brett Bray Director, Motor Vehicle Division Texas Department of Transportation Proposed date of adoption: September 7, 1995 For further information, please call: (512) 463-8630 Chapter 111. General Distinguishing Numbers 16 TAC sec.sec.111.1-111.16 The Motor Vehicle Board of the Texas Department of Transportation proposes to adopt new sec.sec.111.1-111.16, concerning the obligations of motor vehicle dealers and manufacturers regarding registration and business operations under the Transportation Code, sec.sec.503.001 et seq (formerly Texas Civil Statutes, Article 6686) and the Texas Motor Vehicle Commission Code (Texas Civil Statutes, Article 4413(36)). These new sections are required pursuant to action taken by the 74th Legislative Session, Senate Bill 1446, effective June 9, 1995, and Senate Bill 1139, effective June 8, 1995, which transfer regulatory and rulemaking authority regarding such obligations from the Texas Transportation Commission to the Texas Motor Vehicle Board. New sec.111.1 states the objective of these rules. New sec.111.2 provides definitions. New sec.111.3 prohibits any person from engaging in business as a motor vehicle dealer without a license. New sec.111.4 defines house trailer and travel trailer for the purposes of this chapter. New sec.111.5 prescribes requirements for motor vehicle dealers operating from more than one location. New s111.6 prohibits motor vehicle dealers from selling vehicles at locations that are not licensed by the department. New s111.7 describes the security requirements for motor vehicle dealers. New sec.111.8 describes the size requirements for the design of temporary cardboard tags. New sec.111.9 describes the requirements for placement of temporary cardboard tags and metal dealer license plates. New sec.111.10 sets forth the requirements for a motor vehicle dealer's established and permanent place of business. New sec.111.11 describes the sanctions and grounds for bringing a sanctions action against a licensee. New sec.111.12 describes the procedure for bringing a sanctions action against a licensee. New sec.111.13 states that after cancellation of a dealer's general distinguishing number and license plates, there will be no refund of fees. New sec.111.14 describes the purposes for which manufacturer's license plates may be used. New sec.111.15 describes the records that must be kept by all motor vehicle dealers. New sec.111.16 describes the requirements for motor vehicle dealers who change their original status. Brett Bray, Director, Motor Vehicle Division, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering these sections. Mr. Bray also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to combine the similar functions of the Motor Vehicle Division with those of the Vehicle Title and Registration Division of the Texas Department of Transportation, thereby streamlining the licensing and enforcement processes for all motor vehicle dealers. There will be no effect on small businesses. There is no additional anticipated cost to persons required to comply with these sections as proposed. Comments on the proposal (six copies) may be submitted to Brett Bray, Director, Motor Vehicle Division, P.O. Box 2293, Austin, Texas 78768, (512) 476-3587. The Motor Vehicle Board will consider final adoption of the proposed rules at its meeting on September 7, 1995. The deadline for receipt of comments on the proposed new sections will be 5:00 p.m. on August 31, 1995. The new sections are proposed under the Texas Motor Vehicle Commission Code, sec.3.06 which provides the Board with authority to adopt rules necessary and convenient to effectuate the provisions of the act and to govern practice and procedure before the agency. Motor Vehicle Commission Code, sec.3.01(a) is affected by the proposed new sections. sec.111.1. Objective. The objective of these rules is to implement the intent of the legislature as declared in the Transportation Code, sec.sec.503.001 et seq (formerly Texas Civil Statutes, Article 6686) and Texas Civil Statutes, Article 4413 (Texas Motor Vehicle Commission Code), by prescribing rules to regulate businesses requiring General Distinguishing Numbers. sec.111.2. Definitions. The following words and terms, when used in the sections under this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Barrier-A material object or set of objects. Board-The Motor Vehicle Board of the Texas Department of Transportation. Charitable Organization -An organization that is established and exists for the purpose of relieving poverty, the advancement of education, religion, or science, the promotion of health, governmental, or municipal purposes, or other purposes beneficial to the community without financial gain. Commission-Texas Transportation Commission. Consignment Sale -The sale of a vehicle by a person other than the owner, under the terms of a written authorization from the owner. Dealer-Any person who is regularly and actively engaged in the business of buying, selling, or exchanging new or used motor vehicles, motorcycles, motor homes, house trailers, or trailers or semitrailers as defined in the Transportation Code, sec.sec.502.001 et seq (formerly the Registration Law, Texas Civil Statutes, Article 6675a-1), or the Transportation Code, sec.sec.502.002, et seq (formerly the Certificate of Title Law, Texas Civil Statutes, Article 6687-1), at either wholesale or retail, either directly, indirectly, or by consignment. Department-Texas Department of Transportation. Director-Director, Motor Vehicle Division, Texas Department of Transportation. License-A dealer's general distinguishing number assigned by the Texas Department of Transportation for the location from which the person engages in business. Person-Any individual, firm, partnership, corporation, or other legal entity. Sale-With regard to a specific vehicle, the transfer of possession of that vehicle from a dealer to a purchaser for consideration. Temporary Cardboard Tag-A buyer tag, a dealer tag, or a charitable organization tag. Wholesale Dealer -A licensed dealer who only sells or exchanges vehicles with other licensed dealers. sec.111.3. General Distinguishing Number. (a) No person may engage in business as a dealer unless that person has a currently valid general distinguishing number assigned by the department for each location from which the person engages in business. If a dealer consigns more than five vehicles in a calendar year for sale from a location other than the location for which the dealer holds a general distinguishing number, the dealer must also hold a general distinguishing number for the consignment location. (b) The provisions of subsection (a) of this section do not apply to: (1) a person who sells or offers for sale less than five vehicles of the same type as herein described in a calendar year and such vehicles are owned by him and registered and titled in his name; (2) a person who sells or offers to sell a vehicle acquired for personal or business use if the person does not sell or offer to sell to a retail buyer and the transaction is not held for the purpose of avoiding the provisions of the Transportation Code, sec.sec.503.001 et seq (formerly Texas Civil Statutes, Article 6686), and the sections under this chapter; (3) an agency of the United Sates, this state, or local government; (4) a financial institution or other secured party selling a vehicle in which it holds a security interest, in the manner provided by law for the forced sale of that vehicle; (5) a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court; (6) an insurance company selling a vehicle acquired from the owner as the result of paying an insurance claim; (7) a person selling an antique passenger car or truck that is a least 25 years old or a collector selling a special interest motor vehicle as defined in the Transportation Code, sec.683.077 (formerly the Texas Litter Abatement Act, Texas Civil Statutes, Article 4477-9a), if the special interest vehicle is at least 12 years old; (8) a licensed auctioneer who, as a bid caller, sells or offers to sell property to the highest bidder at a bona fide auction if neither legal nor equitable title passes to the auctioneer and if the auction is not held for the purpose of avoiding another provision of the Transportation Code, sec.sec.503. 001, et seq (formerly Texas Civil Statutes, Article 6686), and sections under this chapter; and provided that if an auction is conducted of vehicles owned, legally or equitably, by a person who holds a general distinguishing number, the auction may be conducted only at a location for which a general distinguishing number has been issued to that person or at a location approved by the department as provided in sec.111.4 of this title (relating to More Than One Location); and (9) a person who is a domiciliary of another state and who holds a valid dealer license and bond, if applicable, issued by an agency of that state, when the person buys a vehicle from, sells a vehicle to, or exchanges vehicles with a person who: (A) holds a current valid general distinguishing number issued by the department, if the transaction is not intended to avoid the terms of the Transportation Code, sec.sec.503.001, et seq (formerly Texas Civil Statutes, Article 6686); or (B) is a domiciliary of another state if the person holds a valid dealer license and bond, if applicable, issued by that state, and if the transaction is not intended to avoid the terms of the Transportation Code, sec.sec.503.001, et seq (formerly Texas Civil Statutes, Article 6686). (c) Application for a general distinguishing number shall be on a form prescribed by the director properly completed by the applicant showing all information requested thereon and shall be submitted to the director accompanied by the following: (1) a $25,000 surety bond as provided in sec.111.6 of this title (relating to Bond Requirements), or acceptable security as cited in sec.111.6 of this title (relating to Assignment of Security and Letter of Credit), in the name of the applicant; (2) a one-year lease as cited in sec.111.9 of this title (relating to Established and Permanent Place of Business), or deed for the dealer's location in the name of the applicant; (3) the fee for the general distinguishing number as prescribed by law for each type of license requested; (4) the fee as prescribed by law for each dealer metal plate requested and the license plate reflectorization fee as prescribed by law; (5) photographs clearly showing: (A) the interior of the dealer's office; (B) the exterior of the dealer's office; (C) the dealer's sign; and (D) the vehicle display area; and (6) verification of all assumed name(s), if applicable, in the form of assumed name certificate(s) on file with the secretary of state or county clerk. (d) A person who applies for a general distinguishing number and will operate as a dealer under a name other than the name of that person shall use the name under which that person is authorized to do business, as filed with the secretary of state or county clerk, and the assumed name of such legal entity shall be recorded on the application using the letters "DBA. " A separate license and bond shall be required for each location the person will operate under a different assumed name, except, a location which is licensed by the Texas Motor Vehicle Commission shall not require a bond. (e) If the general distinguishing number is issued to a corporation, the dealer's name, as it appears on file with the secretary of state, shall be recorded on the application. The corporation must provide verification that all corporate franchise taxes required under Texas Business Corporation Act, Article 2.45, have been paid. (f) A licensed wholesale dealer who elects to buy, sell to, or exchange vehicles with persons other than licensed dealers, must satisfy the display space requirements of sec.111.9 of this title (relating to Established and Permanent Place of Business) and exchange the wholesale dealer license for a general distinguishing number which is appropriate for the type of vehicles the dealer wishes to buy, sell, or exchange. (g) An application for a general distinguishing number may be denied if an applicant for such license has committed any act that could result in license cancellation or revocation under the Transportation Code, sec.sec.503.001, et seq (formerly Texas Civil Statutes, Article 6686 sec.(a)(1)(1-A) viii). (h) All general distinguishing numbers expiring on March 31, 1996, when renewed, will expire on the last day of randomly assigned calendar months of the next calendar year. Thereafter, each license will be issued for a period of one year from the date of issuance of the license. The entire yearly license fee will be due at that time. (1) The license fee for each general distinguishing number issued during 1996 for a period of less than one year shall be prorated and only that portion of the license fee allocable to the number of months for which the license is issued shall be payable by the licensee. The amount of such license fees will be rounded off to the nearest dollar. (2) The surety bond or other surety required for dealers by the Department pursuant to the Transportation Code, sec.503.033 (formerly Texas Civil Statutes, Article 6686(a)(1-A)(vii)) must be effective, at a minimum, for the period for which the general distinguishing number will be valid. (3) All dealer metal plates issued to a licensed dealer shall expire on the same date as the expiration of the dealer's general distinguishing number. sec.111.4. House Trailer; Travel Trailer. The term house trailer/travel trailer for the purpose of the sections under this chapter shall mean a vehicle without automotive power design for human habitation and for carrying persons and property upon its own structure and for being drawn by a motor vehicle if that vehicle is less than eight body feet in width and less than 40 body feet in length, excluding the hitch, or the vehicle shall be 400 square feet or less when measured at the largest horizontal projections. sec.111.5. More Than One Location. (a) A dealer holding a general distinguishing number for a particular type of vehicle may operate from more than one location within the limits of a city, provided each such location is operated by the same legal entity and meets the requirements of sec.111.9 of this title (relating to Established and Permanent Place of Business). (b) Additional locations which are not located within the limits of the same city are required to obtain a separate license, and each such location must be bonded unless the location is exempt by statute. sec.111.6. Off-site Sales.
          Unless otherwise authorized by statute, a dealer is not permitted under the Transportation Code, ssec.503.001, et seq (formerly Texas Civil Statutes, Article 6686) to sell or offer for sale vehicles from a location other than an established and permanent place of business which has been approved by the department. sec.111.7. Security Requirements. (a) A franchised motor vehicle dealer or franchised motorcycle dealer who is not licensed by the Texas Motor Vehicle Board of the Texas Department of Transportation shall have a $25,000 bond conditioned on the dealer's payment of all valid bank drafts drawn by the dealer for the purchase of motor vehicles and the dealer's transfer of good title to each motor vehicle the dealer offers for sale. The bond must be valid for the same period of time as the dealer's license and is subject to the following. (1) The bond shall be on a form which is prescribed by the director and approved by the attorney general and issued by a company duly authorized to do business in the state of Texas. (2) The name of all owners shall be shown on the bond along with the name in which the dealer's license is issued. (3) A bond executed by an agent who represents a bonding company or surety must be supported by an original power of attorney from the bonding company or surety. (b) In lieu of a surety bond, the department will accept an assignment of security or an irrevocable letter of credit on forms approved by the attorney general. An assignment of security or an irrevocable letter of credit must be executed by a bank, savings and loan institution, credit union, or other financial institution insured by an agency of the United States government and authorized to do business in the State of Texas. (c) Recovery against the bond or acceptable security may be made by any person who obtains a court judgment assessing damages and attorneys fees for an act or omission on which the bond is conditioned. (d) The provisions of subsections (a) and (b) of this section do not apply to: (1) a franchised motor vehicle dealer who is licensed by the Texas Motor Vehicle Board of the Texas Department of Transportation; (2) a franchised motorcycle dealer who is licensed by the Texas Motor Vehicle Board of the Texas Department of Transportation; (3) a house trailer or travel trailer dealer; or (4) a trailer/semitrailer dealer. sec.111.8. Temporary Cardboard Tags. (a) Motor vehicle, travel trailer, and trailer/semitrailer tags shall be printed on not less than 6-ply cardboard with bolt holes to be horizontally punched on 7-inch centers and vertically punched on 4 1/2-inch centers and the numerals and letters in the dealer number shall not be less than 2 inches high. Motorcycle tags shall be printed on not less than 6-ply cardboard with bolt holes to be horizontally punched on 5 3/4-inch centers and vertically punched on 2 3/4-inch centers and the numerals and letters shall not be less than 1-inch high. Homemade cardboard tags or cardboard tags which have buyer's tag information printed on one side and dealer's tag information printed on the other side are not acceptable. (b) The following appendices indicate the design and the instructions for printing and use of each of the respective temporary tags: (1) Appendix A-1-Dealer (design); Appendix A-2 -Dealer (instructions);
            Figure 1: 16 TAC sec.111.8(b)(1) (2) Appendix B-1-Buyer (design); Appendix B-2 -Buyer (instructions); and
              Figure 2: 16 TAC sec.111.8(b)(2) (3) Appendix C-1-Charitable (design); Appendix C-2 -Charitable (instructions).
                Figure 3: 16 TAC sec.111.8(b)(3) sec.111.9. Metal Dealer License Plates and Temporary Cardboard Tags. (a) Metal dealer license plates shall be attached to the rear license plate holder of vehicles on which such plates are to be displayed. If the vehicle on which a metal dealer plate is to be attached displays Texas multi-year plates that have not been validated for the current registration period, such multi- year plates shall be removed and safeguarded. The multi-year plates should be placed back onto the vehicle when it is sold or if the metal dealer plate is removed from the vehicle. (b) Temporary cardboard tags may be displayed either in the rear window or on the rear license plate holder of unregistered vehicles. When displayed in the rear window, the tag shall be attached in such a manner that it is clearly visible and legible when viewed from the rear of the vehicle. If the vehicle on which a temporary cardboard tag is to be attached displays Texas multi-year license plates that have not been validated for the current registration period, the temporary cardboard tag may be displayed in the rear window as prescribed in this subsection or placed over the rear license plate. The multi-year plates should not be removed from the vehicle. (c) Metal dealer license plates and temporary cardboard tags may not be displayed on laden commercial vehicles being operated or moved upon the public streets or highways or on the dealer's service or work vehicles. (1) Examples of vehicles considered as service or work vehicles are: (A) vehicles used for towing or transporting other vehicles; (B) vehicles, including light trucks used in connection with the operation of the dealer's shops or parts department; (C) courtesy cars on which courtesy car signs are displayed; (D) rental and lease vehicles; (E) dealer-owned vehicles loaned to schools; and (F) any boat trailer owned by a dealer or manufacturer which is used to transport more than one boat. (2) A light truck is not considered to be a laden commercial vehicle: (A) when mounted with a camper unit; or (B) when towing a trailer for recreational purposes. (3) As used in this subsection, light truck shall have the same meaning as defined in the Uniform Act Regulating Traffic on Highways, Texas Civil Statutes, Article 6701d, sec.2. (d) Each unregistered vehicle being conveyed utilizing the full mount method, the saddle mount method, the tow bar method, or any combination thereof in accordance with the Transportation Code, sec.sec.503.029, et seq (formerly Texas Civil Statutes, Article 6686(a), sec.6), shall have a dealer's temporary cardboard tag or a buyer's temporary cardboard tag, whichever is applicable, affixed to that vehicle. If the vehicle being transported is of a type which is prohibited from operating upon the public streets and highway (i.e., off-highway vehicle or self-propelled machine) and, thus, cannot qualify for registration, a cardboard tag shall be displayed thereon; and such tag shall be marked in bold letters with the notation "For Off Highway Use Only." (e) Metal dealer license plates and temporary cardboard tags may be displayed only on the type of vehicle for which the general distinguishing number is issued and for which a dealer is licensed to sell. Non-franchised dealers may not display metal plates on new motor vehicles. (f) A buyer's temporary cardboard tag may not be displayed on any vehicle being operated upon the public streets and highways for which a sale has not been consummated. (g) When an unregistered vehicle is sold to another dealer, the selling dealer shall remove his dealer's temporary cardboard tag. In such instances, the selling dealer may attach his buyer's temporary cardboard tag to the vehicle; or the purchasing dealer may display his dealer's temporary cardboard tag or metal dealer plate on the vehicle. In the event a vehicle is consigned from one dealer to another, the vehicle shall display the temporary cardboard tag of the dealer to which such vehicle was consigned. (h) A dealer shall maintain a record of all dealer metal plates issued to that dealer and as to each vehicle such record shall consist of: (1) the assigned metal plate number; (2) the make; (3) the vehicle identification number; and (4) the name of the person in control. (i) The dealer's record as referenced in subsection (h) of this section, shall be available at the dealer's location during normal working hours for review by a representative of the department. Dealer metal plates which cannot be accounted for shall no longer be valid for use and shall be voided. (j) A charitable organization tag is valid for a period of 30 days from the date of issuance. sec.111.10. Established and Permanent Place of Business.
                  A dealer must meet the following requirements at each location where vehicles are sold or offered for sale. (1) Office requirements. (A) A dealer's office facility must be open to the public during normal working hours. The dealer's business hours for each day of the week must be posted at the main entrance of the dealer's office, and the owner or a bona fide employee of the dealer must be at the dealer's location during the posted business hours for the purpose of buying, selling, exchanging, or leasing vehicles. In the event the owner or a bona fide employee is not available to conduct business during the dealer's posted business hours, a separate sign must be posted indicating the date and time such owner or a bona fide employee will resume dealer operations. The structure must be of sufficient size to accommodate the usual office furniture and equipment, such as a desk, file cabinet, chairs, etc. As a minimum, the office must be equipped with a desk and chairs from which the dealer transacts his business and be equipped with a working telephone instrument listed in the name under which the dealer does business. (B) If a dealer's office is located in a residential structure, the office must be completely separated from and have no direct access into the residential quarters and be in compliance with all applicable local zoning ordinances and deed restrictions. Such an office shall not be used as a part of the living quarters and must be readily accessible to the public without having to pass into or through any part of the living quarters. (C) Portable-type office structures may qualify, provided they meet the minimum requirements as set forth herein. (D) If a dealer conducts business in conjunction with another business owned by the same person, the same telephone instrument may be used for both businesses. However, if the name of the dealer differs from that of the other business, a separate telephone listing for the dealer is required. (E) If a dealer conducts business in conjunction with another business not owned by the same person, the same telephone number may be used by both businesses; however, the dealer shall have a separate desk, a separate working telephone instrument, and a separate telephone listing in the name of the dealer. The dealer must either own the property or have a separate lease agreement from the owner meeting the requirements of paragraph (4) of this section. (F) In those instances when two or more dealers occupy the same business locations and conduct their respective dealer operations under different names, one office structure for all dealers operating from such location will be acceptable; provided, however, each dealer must, in addition to having a qualifying dealer's sign conspicuously displayed on the premises, have: (i) a separate desk from which that dealer transacts business; (ii) a separate working telephone instrument and listing in the dealer's name; (iii) a separate display space meeting the requirements of paragraph (3) of this section; and (iv) a separate lease agreement meeting the requirements of paragraph (4) of this section. (2) Sign requirements. (A) A dealer shall display a conspicuous sign with letters at least six inches in height showing the name under which the dealer conducts business. (B) Such sign must be readable from the address listed on the application for the dealer license. (3) Display space requirements. (A) A dealer other than a wholesale dealer shall have an off-street display area sufficient to display at least five vehicles of the type for which the general distinguishing number was issued. (B) The display area may not be on a public easement, right-of-way, or driveway, unless the governing body having jurisdiction of the easement, right- of-way, or driveway expressly consents to such use; provided, however, that if the easement, right-of-way, or driveway is a part of the state highway system, such use may only be authorized by a lease agreement entered under the Transportation Code, sec.202.052 (formerly Texas Civil Statutes, Article 6673a- 3). Such area shall be located at the dealer's address or contiguous with the dealer's address. The display area must be owned or leased for the exclusive use by the dealer for a continuous term of not less than one year. If the display area is in conjunction with other parking facilities, such area shall be separated by use of barriers under the control of the dealer so as to prevent its use for any purpose other than a display area. Subject to approval by the department, the display area may be located within a building. (4) Lease requirements. If the premises from which a dealer conducts business is not owned by the licensed dealer, such dealer shall maintain a lease continuous for a period of one year, and such lease agreement shall be on a properly executed form containing, but not limited to, the following information: (A) the names of the lessor and lessee; (B) the legal description of the property or street address; and (C) the period of time for which the lease is valid. sec.111.11. Sanctions. (a) Cancellation. The director may cancel a dealer's license (general distinguishing number) if that dealer: (1) fails to maintain a good and sufficient bond in the amount of $25, 000 or to be currently licensed as a franchised dealer by the Texas Motor Vehicle Board of the Texas Department of Transportation; (2) fails to maintain an established and permanent place of business conforming to the department's regulations pertaining to office, sign, and display space requirements; (3) refuses to permit or fails to comply with a request by a representative of the department to examine, during normal working hours, the current and previous years' sales records and ownership papers for vehicles owned by that dealer or under that dealer's control, and evidence of ownership or lease agreement on the property upon which the dealer's business is located; (4) holds a wholesale dealer license and, without notifying the department and meeting the vehicle display space requirements of sec.111.9 of this title (relating to Established and Permanent Place of Business), is found to be selling a vehicle to someone other than a licensed dealer; (5) holds a travel trailer dealer license or a trailer/semitrailer dealer license and is found to be selling a motor vehicle or a motorcycle; (6) fails to notify the department of a change of address within ten days after such change; (7) fails to notify the department of a dealer's name change or ownership within ten days after such change; (8) issues more than one buyer's temporary cardboard tag for the purpose of extending the purchaser's operating privileges for more than 20 days; (9) fails to remove out-of-state license plates from a vehicle which is displayed for sale; (10) misuses a metal dealer license plate or a temporary cardboard tag; (11) fails to display dealer license plates or cardboard tags in a manner conforming to the department's regulations pertaining to the display of such plates and cardboard tags on unregistered vehicles; (12) fails to satisfy the notification requirements of sec.111.14 of this title (relating to Record of Sales and Inventory); (13) holds open titles or fails to take assignment of all certificates of title, manufacturer's certificates, or other basic evidence of ownership for vehicles acquired by the dealer or fails to assign the certificate of title, manufacturer's certificate, or other basic evidence of ownership for vehicles sold. (All certificates of title, manufacturer's certificates, or other basic evidence of ownership for vehicles owned by a dealer must by properly executed showing transfer of ownership into the name of the dealer.); (14) fails to remain regularly and actively engaged in the business of buying, selling, or exchanging vehicles of the type for which the general distinguishing number is issued; (15) violates any of the provisions of the Transportation Code, sec.sec.503.001, et seq (formerly Texas Civil Statutes, Article 6686), Texas Civil Statutes, Article 4413(36) (Texas Motor Vehicle Commission Code), or any rule or regulation of the department, including advertising rules set out in Chapter 105 of this title (relating to Advertising); (16) has not assigned at least five vehicles in the prior 12 months, provided the dealer has been licensed more than 12 months; (17) files a false or forged title or tax document, including sales tax affidavit or affidavit making application for a certified copy of a title; (18) uses or allows use of that dealer's license or location for the purpose of avoiding the provisions of the dealer law or other laws; (19) makes a material misrepresentation in any application or other information filed with the department; (20) fails to remit payment for civil penalties assessed by the department; (21) sells new motor vehicles without a franchise license issued by the Texas Motor Vehicle Board of the Texas Department of Transportation; or (22) utilizes a temporary cardboard tag that fails to meet department specifications as cited in sec.111.7 of this title (relating to Temporary Cardboard Tags). (b) Civil penalties. The director may assess a civil penalty of not less than $50 nor more than $1,000 against a person who violates any provision of subsection (a) of this section, and in determining the amount of any such penalty may consider the relevant circumstances. (c) Pre-sanction citation. In lieu of imposing sanctions under subsection (a) or (b) of this section, the director may issue a pre-sanction citation to a person notifying that person of the nature of the violation, and specifying the date by which corrective action is to be completed and full compliance is to be met; provided, however, that the director may not utilize this procedure in more than three subsequent violations of the same or similar nature by that person in the same calendar year. sec.111.12. Notice and Appeal. (a) Notice of hearing and complaint. A hearing shall be conducted in all contested cases, as defined in the Texas Administrative Code, which arise in connection with the violation of any law, order or rule of the Commission. Upon determination that a person had violated or is likely to violate any law, commission rule, order or decision, the director shall mail a notice of hearing and complaint by certified mail to the last known address of that person. All hearings shall be conducted in accordance with the procedure as described in the Texas Motor Vehicle Commission Code, sec.3.08. (b) Date, time, and place of hearing. Notice of a hearing shall describe in summary form the purpose of the hearing and its date, time, and place. (c) Administrative hearing. The department may initiate a formal administrative hearing pursuant to the Motor Vehicle Commission Code, Texas Civil Statutes, Article 4413(36), sec.3.03(b) and conducted in accordance with the procedural rules found in sec.sec.101.5-101. 14 and sec.sec.101.41-101.64 of this title (relating to Practice and Procedure), which relate to contested cases before the Texas Motor Vehicle Board, to determine the amount of the civil penalty to be assessed, if any, from not less than $50 up to $1,000 for each alleged violation of the provisions of sec.111.10 of this title (relating to Sanctions), and to determine whether the dealer's license should be canceled. For purposes of assessing civil penalties under this subsection, each act in violation of those provisions is a separate violation, and each day of a continuing violation is a separate violation. (d) Notice of contested case hearing. Notice of a contested case hearing shall be deemed to have been received by any person if notice of the hearing was mailed to the last known address of any person known to have legal rights, duties, or privileges that could be determined at the hearing, not less than ten days before the hearing requested. Notice may be given to any officer, agent, employee, legal representative, or attorney of any person. Notice of any hearing may be waived by any person. sec.111.13. Refund of Fees. When a dealer's general distinguishing number and license plates are cancelled no refund of the fees will be made. sec.111.14. Manufacturers License Plates. (a) Manufacturers that distribute, manufacture, or assemble new vehicles may apply for and secure manufacturers license plates for display on unregistered vehicles. (b) Manufacturers license plates must be used exclusively for the purpose of testing such vehicles or loaning a vehicle to a consumer in accordance with Texas Motor Vehicle Commission Code, Texas Civil Statutes, Article 4413 (36), sec.6.07, and may not be used in conjunction with other business activities such as displayed on a vehicle operated by a representative of the manufacturer who uses the vehicle to contact dealers. sec.111.15. Record of Sales and Inventory. (a) Purchase and sales records. A dealer must keep a complete record of all vehicle purchases and sales for a minimum period of 13 months, and such record must be available for inspection by a representative of the department at the dealer's location. (b) Content of records. As used in this subsection, a complete record of vehicle purchases and sales shall include the: (1) date of purchase; (2) date of sale; (3) vehicle identification number; (4) name and address of person selling to the dealer; (5) name and address of person purchasing from the dealer; (6) name and address of selling dealer if vehicles offered for sale by consignment; (7) except in a purchase or sale by a wholesale dealer, number and filing date of the Tax Collector's Receipt for Title Application/Registration/Motor Vehicle Tax, Form 31; and (8) copies of any and all documents, forms, and agreements applicable to a particular sale, including, but not limited to title applications, work-up sheets, Manufacturer's Certificates of Origin, factory invoices, sales contracts, retail installment agreements, buyer's orders, bills of sale, waivers, or other agreements between the seller and purchaser. (c) Title assignments. All certificates of title, manufacturer's certificates, or other evidence of ownership for vehicles offered for sale or which have been acquired by a dealer must be properly assigned into the dealer's name. A dealer must provide assigned ownership documents in favor of the purchaser when the vehicle is sold or furnish the purchaser with the receipt for application for certificate of the title issued by the county tax assessor-collector within 20 working days of the date of sale. (d) Notification to the department. Notification of vehicle sales, as required by the Transportation Code, sec. s503.005, et seq (formerly Texas Civil Statutes, Article 6686, sec.d), shall be an application for certificate of title in the name of the retail purchaser filed with the appropriate county tax assessor-collector. When a sales transaction involves a full cash payment, or the vehicle is to be transferred out of state, or the documents will be filed by the lienholder, the dealer may, in lieu of filing the application for certificate of title for the purchaser, deliver the properly assigned evidence of ownership to the purchaser. In such instance, a photocopy of such evidence, including all assignments, shall be documented on a form prescribed by the director, and maintained on file at the dealer's business location. (e) Consignment sales. A dealer offering a vehicle for sale by consignment shall have a written consignment agreement for the vehicle or a power of attorney covering the vehicle and shall maintain a record of each such vehicle by vehicle identification number and owner of each such vehicle handled on consignment for a minimum of 13 months. sec.111.16. Change of Dealer's Status. (a) Dealer name change. A dealer's name change shall require a new bond or a rider to the existing bond reflecting the new dealer name. The dealer may retain the same general distinguishing number. (b) Change of ownership. A dealer shall notify the department in writing within ten days if there is any change of ownership. Upon notification of a change of the majority ownership interest, the department shall cancel the existing dealer's license and the new owner must qualify for a new general distinguishing number. (c) Change of operating status of a dealer location. A dealer shall notify the department in writing within ten days of the opening, closing, or relocation of any dealer location. Each new location must meet the statutory requirements and requirements as specified in the sections of this chapter. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 31, 1995. TRD-9509497 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Proposed date of adoption: September 7, 1995 For further information, please call: (512) 463-8630 TITLE 22. EXAMINING BOARDS Part IV. Texas Cosmetology Commission Chapter 89. General Rules and Regulations 22 TAC sec.89.5, sec.89.73 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Cosmetology Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Cosmetology Commission proposes the repeal of s89.5, concerning specialty instructor on duty; and sec.89.73, concerning fashion photography salon requirements. The repeals are proposed to comply with Senate Bill 1502, 74th Texas Legislature, Regular Session. Dick Strader, Executive Director, Texas Cosmetology Commission, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals. Mr. Strader also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be to ensure that all certificate holders and licensees comply with the requirements of the rules of the commission. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Dick Strader, Texas Cosmetology Commission, P.O. Box 26700, Austin, Texas 78755-0700. The repeals are proposed under Texas Civil Statutes, Article 8451a, sec.4(a), which provide the Texas Cosmetology Commission with the authority to "issue rules consistent with this Act after a public hearing", to protect the public's health and welfare. Article 8451a, is affected by these proposed repeals. sec.89.5. Specialty Instructor on Duty. sec.89.73. Fashion Photography Salon Requirements. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509429 Dick G. Strader Executive Director Texas Cosmetology Commission Proposed date of adoption: September 9, 1995 For further information, please call: (512) 454-4674 TITLE 25. HEALTH SERVICES Part II. Texas Department of Mental Health and Mental Retardation Chapter 408. Standards and Quality Assurance Subchapter B. Mental Health Community Services Standards 25 TAC sec.sec.408.21-408.25 The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes new Chapter 408, Subchapter B, concerning mental health community services standards. The 1995 Mental Health Community Services Standards are the latest product of an ongoing process to ensure that consumers of mental health services in Texas receive high quality services and that outcomes are used to evaluate services. The standards are used to determine whether community-based services purchased by TDMHMR are being delivered as required under contract. Existing standards, currently adopted by reference in Chapter 408, Subchapter A of this title, will be proposed for repeal in a subsequent issue of the Texas Register. Outcomes were first incorporated into the standards regulating mental health community services in 1991. Central office and community center staff, consumers, advocates, and family members participated in the process. The commissioner appointed members of this group to serve on the Quality Services Council (QSC), which has functioned as a clearinghouse for issues related to the standards. The QSC began work on the proposed standards in 1994. Their charge was to ensure that the standards reflected TDMHMR's movement toward a managed care model of service delivery and continued emphasis on outcome measurement. The primary changes in the standards are shorter timeframes for the completion of clinical activities and increased accountability to TDMHMR, consumers, family and communities for the quality of services provided. Examples of required activities with shortened timeframes are assessments (from 30 to 14 days) and plan reviews (from six to three months). With regard to increased accountability, local authorities are required to conduct self-assessments and forward the results to TDMHMR. Each local authority's provider network will be involved in the process and closely monitored. Local authorities and all providers must provide outcome data to TDMHMR using standardized mechanisms. The proposal of the revised standards occurs at the same time that the contract for services as well as Medicaid and other community-based service arrays are being reconceptualized to reflect an emphasis on managed care concepts of acute and long-term care in areas of assessment, treatment, training, and support. The new approach is intended to coincide with the new fiscal year and biennium. Don Green, chief financial officer, has determined that for the first five years the new sections are in effect, there are no significant fiscal implications to state or local government or small businesses as a result of administering the sections as proposed. Although implementing the standards as proposed will require a shift in staff time from administrative to clinical functions, the mental health authorities should be able to make these changes within the current range in staffing. There is no anticipated local economic impact. Sue Dillard, director, Standards and Quality Assurance, has determined that the public benefit is the way in which the standards promote the critical evaluation of the effects that mental health services have on people receiving services. Through this assessment, the department can better determine and further define best practices in care so that only effective and necessary services that clearly meet the mental health needs of individuals and the community are purchased with state dollars. There is no cost to persons required to comply with the subchapter as proposed. A public hearing will be held on August 21, 1995, at 1:30 p.m., in the TDMHMR Central Office auditorium at 909 West 45th Street, Austin. Persons requiring an interpreter for the hearing impaired should notify Laura Thomas, Office of Policy Development, within 24 hours prior to the hearing. Written comments on the proposal may be submitted to Linda Logan, director, Policy Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 12668, Austin, Texas 78711-2668, within 30 days of publication. The new sections are proposed under the Texas Health and Safety Code, sec.532.015, which provides the Texas Department of Mental Health and Mental Retardation with broad rulemaking powers, and sec.534.052, which gives the board rulemaking authority for community-based mental health and mental retardation services provided by community centers and other contract providers. The proposal affects the Health and Safety Code, sec.534.052. sec.408.21. Purpose. The purpose of this subchapter is to define the requisite, organizational, and services standards for community-based mental health services funded by the Texas Department of Mental Health and Mental Retardation (TDMHMR).
                    Figure 1: 25 TAC sec.408.21 sec.408.22. Application. The provisions of this subchapter apply to all local authorities and providers of community-based mental health services receiving TDMHMR funds. sec.408.23. Definitions. The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise: Agent-An individual who is not an employee of the local authority or provider but who is working under the auspices of the local authority or provider, such as a consultant, volunteer, student, etc. Department-The Texas Department of Mental Health and Mental Retardation. Local authority -An entity to which the Texas Board of Mental Health and Mental Retardation delegates its authority and responsibility within a specified region for the planning, policy development, coordination, resource development and allocation, and for supervising and ensuring the provision of mental health services to persons with mental illness in one or more local service areas. Provider- (A) Any organization or entity, associated by a contract in a working alliance with a local authority or the department to provide community-based services, including employees or agents; or (B) that part of a local authority directly providing programs and services to persons with mental illness or mental retardation, including employees or agents of the programs or services. sec.408.24. Responsibilities of Local Authority. (a) Through its contract with the department, the local authority shall assure its compliance with the provisions of this subchapter. (b) Through its contract with each provider, the local authority shall require compliance with the provisions of this subchapter. (c) The provider shall comply with the applicable provisions of this subchapter. sec.408.25. Distribution. (a) This subchapter shall be distributed to members of the Texas Board of Mental Health and Mental Retardation; executive, management, and program staff of Central Office; chairpersons of boards and chief executive officers (CEOs) of local authorities; and interested advocacy organizations. (b) The CEO of the local authority shall be responsible for disseminating copies of this subchapter to: (1) appropriate staff; (2) providers; (3) agents; and (4) any person served, employee, or other person desiring a copy. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 31, 1995. TRD-9509498 Ann Utley Chair, Texas MHMR Board Texas Department of Mental Health and Mental Retardation Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 206-4516 Part VI. Statewide Health Coordinating Council Chapter 571. Health Planning and Resource Development The Statewide Health Coordinating Council (SHCC) proposes the repeal of sec.sec.571.1 and 571.41-571.51, and new ssec.571.1-571.7, concerning the Texas Statewide Health Coordinating Council and the State Health Plan. Specifically, the repealed sections cover the State Health Plan, introduction, purpose and functions, organization and structure, officers, meetings, committees, ad hoc advisory groups, conflict of interest, general considerations, amendments, and dissolution of the Statewide Health Coordinating Council. The new sections cover purpose, general provisions, officers, meetings, committees, the State Health Plan, and plan implementation. The SHCC is a 15-member advisory council appointed by the governor which is charged with developing and revising the Texas State Health Plan. The new rules are being proposed to incorporate changes in federal and state law, including the repeal of the National Health Planning and Resources Development Act and amendments to the Texas Health and Safety Code, Chapter 104 enacted by the 73rd Texas Legislature. The new rules define the purpose and functions of the SHCC and establish procedures for the development and implementation of the State Health Plan. Dora McDonald, chief, Bureau of State Health Data, Texas Department of Health, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Ms. McDonald also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be the establishment of procedures for public participation in the development of the state health plan. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. No effect on local employment is anticipated. Comments on the proposal may be submitted to Trish O'Day, Texas Department of Health, Bureau of State Health Data and Policy Analysis, 1100 West 49th Street, Austin, Texas 78756, (512) 458-7261. Comments will be accepted for 30 days following the date of publication in the Texas Register. State Health Plan 25 TAC sec.571.1 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Statewide Health Coordinating Council or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under the Health and Safety Code, s104.012, which requires the SHCC to adopt rules governing the development and implementation of the state health plan. The repeal affects the Texas Health and Safety Code, Chapter 104. sec.571.1. State Health Plan for Texas. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509474 Susan K. Steeg General Counsel Statewide Health Coordinating Council Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 458-7236 25 TAC sec.sec.571.1-571.7 The new sections are proposed under the Health and Safety Code, sec.104. 012, which requires the SHCC to adopt rules governing the development and implementation of the state health plan. The new sections affect the Texas Health and Safety Code, Chapter 104. sec.571.1. Purpose. The purpose of Statewide Health Coordinating Council (council) is to review and assess major statewide health concerns and the availability and use of the state's health resources, including higher education resources, for addressing these issues in order to provide direction for the state's legislative and executive policy making processes. sec.571.2. General Provisions. (a) Fiscal year. For all fiscal and administrative purposes, the reporting year of the Statewide Health Coordinating Council (council) shall be identical to that of the Texas Department of Health (department). (b) Conflict of interest. (1) Prior to taking his or her position on the council, each member shall submit in writing to the chair a list of all business or other organizations of which he or she is an officer, director, trustee, member, owner (either as a sole proprietor or partner), shareholder with a 5.0% or greater interest in all outstanding voting shares, employee, or agent, if said relationship might reasonably result in a conflict of interest involving issues considered by the council. The members' written statements will be resubmitted with any necessary changes each year. Each year the chair shall provide all members' written statements to council members. (2) When any matter before the council raises the question of a conflict of interest, the affected member shall make known the potential conflict, whether previously disclosed by his or her written statement or not, and after answering any questions council members may have, shall withdraw from the discussion for so long as the matter remains under discussion, but may remain in the room. If the affected member fails to withdraw during the discussion and/or the vote on the matter, the chair may require that the member withdraw. If the conflict affects the chair, the vice chair may require that the chair withdraw from the meeting in the same manner. sec.571.3. Officers. (a) Selection and appointment. At its first annual meeting on or after September 1 of each year, the council shall elect a chair, unless the chair has been appointed by the governor, a first vice chair, a second vice chair, and a secretary from among its members. The chair shall appoint a parliamentarian from among the members. (b) Duties. The chair shall preside at all meetings, and appoint such standing and ad hoc committees as are authorized by the council. The first vice chair and the second vice chair, in that order, shall assume the authority and duties of the chair when the chair is absent. The parliamentarian shall advise the chair and the council on parliamentary procedure upon the request of the chair or any member of the council. The secretary shall authenticate the minutes of all council meetings and perform such other duties as may be assigned by the chair or the council. (c) Elections. In addition to considering the slate submitted by the nominating committee, the chair shall also accept nominations from the floor. Officers so elected shall serve two-year terms, or until their successors are elected, and shall assume office immediately upon election, excluding partial terms. (d) Vacancies. Vacancies in offices shall be filled by a majority vote of members present and voting at the next regularly scheduled meeting of the council. Officers so elected shall serve the unexpired term of their predecessor. sec.571.4. Meetings. (a) Parliamentary procedure. All council, committee, and advisory group meetings shall be conducted in accordance with parliamentary procedure as described in the most recent edition of Robert's Rules of Order. (b) Minutes. Department staff shall prepare and transmit minutes of each council meeting to the members for review prior to the next meeting. (c) Attendance. Department staff shall maintain a record of each member's attendance at council meetings. If any member fails to attend two consecutive regular meetings without authorization from the chair, a motion to notify the member officially of such absences shall be voted on by the council. If approved, a copy of the notification shall also be forwarded to the governor with a request for appropriate action. (d) Quorum. A majority of the council shall be defined as more than one-half the voting members of the council. A majority of the council shall constitute a quorum for the transaction of business at any meeting. (e) Voting. The council may act only by majority vote of its members present and voting, with each member entitled to one vote unless a conflict of interest has arisen. No member may vote by proxy for another member. (f) Presiding officer. In the absence of the chair, first vice chair, and the second vice chair, a presiding officer shall be chosen by a majority of the council members present. (g) Frequency of meetings. The council shall meet not less than two times per year at times and places designated by the chair. (h) Meetings of the council may be called by the chair and one other officer, or at the request of any eight members. sec.571.5. Committees. (a) Designation. The committees of the council shall be standing and ad hoc. Committees shall be appointed from the membership by the chair with such powers and responsibilities as shall be delegated to them by the chair and as authorized by the council. A majority of the members of a committee shall constitute a quorum for the transaction of business. Each member shall be entitled to one vote. No member may vote by proxy for another member. A majority vote of members present at a meeting at which a quorum is present shall be required for approval of any action by the committee. (b) Plan development committee. The plan development committee shall include all members who wish to serve, but no fewer than eight members who serve two- year terms. The committee shall provide guidance to the department during the development of the proposed state health plan. (c) Legislative committee. The legislative committee is a committee of no fewer than seven members who shall serve two-year terms. The legislative committee shall make recommendations to the council regarding the following: (1) state and federal legislation as it relates to health planning and health program implementation activities; (2) the budgets of other state agencies and programs affecting state health plan implementation strategies; (3) the adequacy and application of health and health-related appropriation requests; and (4) the council's statutory statewide implementation responsibilities, including proposals for legislative or administrative action or rules required by the state health plan. (d) Nominating committee. The chair shall appoint a nominating committee of five members prior to each meeting at which an election is scheduled. The nominating committee shall consist of five members. The nominating committee shall submit its nominations to the chair in time to allow the chair to provide the list of nominees to each member of the council. Each nominating committee shall dissolve itself upon completion of its purpose each year. (e) Ad hoc advisory committees. With the authorization of the council, the chair may appoint ad hoc advisory groups to perform such tasks of limited scope or duration as may be appropriate. sec.571.6. State Health Plan. (a) Proposed state health plan. The department, in consultation with the Health and Human Services Commission and other state agencies, and in cooperation with the state health plan development committee, after conducting a systematic process for gathering local, regional and statewide perspectives, shall prepare a proposed state health plan every six years and a proposed revision of the plan at least biennially. The department shall submit the proposed state health plan to the council for review and approval. (b) Periodic issue papers. The council may direct the department to prepare periodic issue papers analyzing important issues within the scope of the Health and Safety Code, sec.104.022, for the purpose of informing other governmental entities and the public regarding health concerns facing the state and options for addressing them. (c) Recommendations. On the basis of periodic issue papers and other information gathered by the council, the council shall prepare recommendations that will be part of the state health plan. (d) Public comment. The council shall give priority to soliciting public comment from throughout the state on the proposed plan and shall direct the department to prepare and make such revisions to the plan as it considers appropriate. sec.571.7. Plan Implementation. (a) The council shall develop and direct strategies for presentation of appropriate sections of the state health plan to the legislature. (b) The legislative committee shall develop and submit to the council proposals and strategies for implementing the plan. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509475 Susan K. Steeg General Counsel Statewide Health Coordinating Council Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 458-7236 Procedures and Bylaws 25 TAC sec.sec.571.41-571.51 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Statewide Health Coordinating Council or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under the Health and Safety Code, sec.104.012, which requires the SHCC to adopt rules governing the development and implementation of the state health plan. The repeals affect the Texas Health and Safety Code, Chapter 104. sec.571.41. Introduction. sec.571.42. Purpose and Functions. sec.571.43. Organization and Structure. sec.571.44. Officers. sec.571.45. Meetings. sec.571.46. Committees. sec.571.47. Ad Hoc Advisory Groups. sec.571.48. Conflict of Interest. sec.571.49. General Considerations. sec.571.50. Amendments to these Sections. sec.571.51. Dissolution of the Council. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 28, 1995. TRD-9509473 Susan K. Steeg General Counsel Statewide Health Coordinating Council Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 458-7236 TITLE 30. ENVIRONMENTAL QUALITY Part I. Texas Natural Resource Conservation Commission Chapter 294. Underground Water Management Area Subchapter D. Ogallala Aquifer 30 TAC sec.sec.294.30-294-32 The Texas Natural Resource Conservation Commission (TNRCC) proposes new sec.sec.294.30-294.32, concerning underground water management areas. These new sections are proposed in response to a landowner petition submitted on August 4, 1993, in accordance with Texas Water Code, sec.52.024 and will expand the boundaries of Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River. Prior to 1989, predecessor agencies to the TNRCC designated underground water management areas by issuing agency orders. The Board of Water Engineers designated Subdivision Number 2 and Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River, in Orders dated March 20, 1951 and May 8, 1956. Subdivision Number 2 was delineated in a portion of the area lying in Martin County and Subdivision Number 4 was delineated in a portion of the area lying in Andrews, Cochran, Dawson, Gaines, Lynn, Terry, and Yoakum counties. The Water Code, sec.52.024(c) (sec.35.004(c) effective September 1, 1995) provides that the "Commission may alter the boundaries of designated management areas as required by future conditions and as justified by factual data." Pursuant to legislation passed in 1989, the Water Code, sec.52.024(e) (sec.35.004(d) effective September 1, 1995) further requires the Commission to use the procedures applicable to rulemaking for any designation of underground management areas. The proposed rule will expand the boundaries of Subdivision Number 4 to include all of the area lying in Andrews, Dawson, Gaines, Martin, Terry, and Yoakum counties; to include the portion of the area overlying the Ogallala aquifer in Borden, Ector, Howard, and Midland counties; and to eliminate the area previously delineated by Board Order in Cochran and Lynn counties. The proposed rule will effectively consolidate Subdivision Number 2, as designated by the Board of Water Engineers, into Subdivision Number 4. Upon issuance, the rule designating the new boundaries of Subdivision Number 4 will supersede the two Board Orders. The Water Code, sec.52.024(a) (sec.35.004(a) effective September 1, 1995) provides that "To the extent feasible, the management area shall coincide with the boundaries of an underground water reservoir or a subdivision of an underground water reservoir. However, the commission also may consider other factors, including the boundaries of political subdivisions." The proposed rule is a combination of political subdivision and aquifer boundaries. New sec.294.30 defines certain words and terms used within the subchapter. New sec.294.31 designates Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River, as an underground water management area. New sec.294.32 describes the boundaries of Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River. Stephen Minick, Strategic Planning and Appropriations Division, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Minick also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be improvement in the consistency of state regulations and statutory authority and the opportunity for more cost-effective and comprehensive management of limited groundwater resources. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. A public hearing on the proposal will be held on August 23, 1995, at 10:00 a.m. in the Mesa Underground Conservation District Building, 212 North Avenue G, Lamesa, Texas 79331. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion within the audience will not occur during the hearing; however, a TNRCC staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing. The rule and a map of the proposed boundaries are available for examination in several locations in the affected area, as well as in the Office of the Commission's Executive Director in Austin. For more information on the locations of the rule and map, please contact Steve Musick, Water Planning and Assessment Division, (512) 239-4514. Written comments on the proposal should mention Log Number 95128-294-WT and may be submitted to Lutrecia Oshoko, Texas Natural Resource Conservation Commission, Office of Policy and Regulatory Development, MC-201, P.O. Box 13087, Austin, Texas 78711-3087, (512) 239-4640. Written comments must be received by 5:00 p.m., 30 days from the date of publication of this proposal in the Texas Register. For further information or questions concerning this proposal, please contact Steve Musick, Water Planning and Assessments Division, (512) 239-4514. Persons with disabilities who have special communication or other accommodation needs who are planning to attend the hearing should contact the agency at (512) 239-4900. Requests should be made as far in advance as possible. The new sections are proposed under the Texas Water Code (Vernon 1992), sec.5.103, which provides the TNRCC with the authority to adopt any rules necessary to carry out the powers and duties under the provisions of the Texas Water Code and other laws of this state. There are no other rules, codes, or statutes that will be affected by these new sections. The new sections are proposed under the Texas Water Code, sec.5.103 and sec.5. 105, which provides the Texas Natural Resource Conservation Commission with the authority to adopt any regulations necessary to carry out its powers and duties under the Texas Water Code and other laws of this state and to establish and approve all general policy of the commission. Specifically, the Texas Water Code, sec.52.024 (sec.35.004 effective September 1, 1995) grants the commission the authority to designate underground water management areas. sec.294.30. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Ogallala Aquifer -The groundwater reservoir which consists primarily of the Ogallala Formation located in the High Plains of the Texas Panhandle and extending north, west, and east into adjacent states. The boundary of the formation is mapped along the eastern High Plains escarpment and along the Canadian River Valley where the formation outcrop is in contact with the underlying formations of the Cretaceous, Triassic, or Permian age. The southern extent of the aquifer is placed at the estimated formation pinchout. The aquifer also includes any water that occurs in overlying younger sediments consisting of windblown sand and silt, alluvium, and playa lake deposits. Underground Water Management Area-An area suitable for management of underground water resources. sec.294.31. Designation of Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River. Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River, as identified in sec.294.32 of this title (relating to Description of Boundaries), is designated as an underground water management area. This designation supersedes two Orders of the Board of Water Engineers, dated March 20, 1951 and May 8, 1956, designating Subdivision Number 2 and Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River, as underground water management areas. The surface boundaries of Subdivision Number 4 are described generally as follows: the southern boundary follows the southern county line of Andrews County to the point of intersection with the southern extent of the Ogallala aquifer, follows the southern extent of the Ogallala aquifer through northern Ector and central Midland counties to the eastern Midland County line, and extends north to the Midland-Martin County line and east to the outcrop of the Ogallala Formation on the Howard-Glasscock County line; the eastern boundary generally follows the eastern outcrop of the Ogallala Formation through central Howard and western Borden counties; the northern boundary follows the northern county lines of Dawson, Terry, and Yoakum counties; and the western boundary follows the western county lines of Yoakum, Gaines, and Andrews counties. The area encompassed by Subdivision Number 4 includes all of the area in Andrews, Dawson, Gaines, Martin, Terry, and Yoakum counties, and all of the area overlying the Ogallala aquifer in Borden, Ector, Howard, and Midland counties. sec.294.32. Description of Boundaries. The description of the boundaries of Subdivision Number 4 of the Underground Water Reservoir in the Ogallala Formation, South of the Canadian River, is as follows: (1) Beginning at the southwest (SW) corner of Andrews County at the Texas-New Mexico state line, proceed east along the Andrews-Ector County line, to the point where the Andrews-Ector County line intersects the northwest (NW) corner of Section 4, Block 43, Township (TWP) 1-N of the T&P Railroad Company Survey in Ector County taken from the landowners maps produced by the Southwest Mapping Company (note: all remaining reference points are taken from Southwest Mapping Company landowner maps and are from the T&P RR Co. surveys unless otherwise noted); (2) Thence, southeast into Ector County, to the midpoint of the northern boundary of Section 22, Block 43, TWP 1-N; (3) Thence southeast to the NW corner of Section 27, Block 43, TWP 1-N; (4) Thence southeast to the midpoint of the western boundary of Section 25, Block 43, TWP 1-N; (5) Thence southeast to the NW corner of Section 48, Block 42, TWP 1-N; (6) Thence southeast to the midpoint of the southern boundary of Section 33, Block 42, TWP 1-N; (7) Thence southeast to the NW corner of Section 9, Block 42, TWP 1-S; (8) Thence southeast to the NW corner of Section 22, Block 42, TWP 1-S; (9) Thence southeast to the NW corner of Section 35, Block 42, TWP 1-S; (10) Thence south to the SW corner of Section 35, Block 42 TWP 1-S; (11) Thence southeast to the southeast (SE) corner of Section 38, Block 42, TWP 1-S; (12) Thence southeast to the SE corner of Section 48, Block 42, TWP 1-S; (13) Thence southwest to the SW corner of Section 1, Block 42, TWP 2-S; (14) Thence southwest to the northeast (NE) corner of Section 17, Block 42, TWP 2-S; (15) Thence southwest to the NW corner of Section 19, Block 42, TWP 2-S; (16) Thence south to the SW corner of Section 31, Block 42, TWP 2-S; (17) Thence southeast to the midpoint of the southern boundary of Section 42, Block 42, TWP 2-S; (18) Thence southwest to the SW corner of Section 6, Block 42, TWP 3-S; (19) Thence east to the SE corner of Section 6, Block 42, TWP 3-S; (20) Thence southeast to the midpoint of the southern boundary of Section 8, Block 42, TWP 3-S; (21) Thence south to the midpoint of the southern boundary of Section 20, Block 42, TWP 3-S; (22) Thence east to the point where the southern boundary of Section 19, Block 41, TWP 3-S, intersects the Ector-Midland County line; (23) Thence northeast into Midland County, to the midpoint of the western boundary of Section 13, Block 41, TWP 3-S; (24) Thence east to the SE corner of Section 10, Block 40, TWP 3-S; (25) Thence northeast to the NE corner of Section 48, Block 39, TWP 3-S; (26) Thence east to the NE corner of Section 14, Block 39, TWP 3-S; (27) Thence northeast to the midpoint of the eastern boundary of Section 2, Block 39, TWP 3-S; (28) Thence east to the midpoint of the eastern boundary of Section 5, Block 38, TWP 3-S; (29) Thence north to the NE corner of Section 35, Block 38, TWP 2-S; (30) Thence northeast to the midpoint of the eastern boundary of Section 27, Block 38, TWP 2-S; (31) Thence southeast to the SE corner of Section 33, Block 38, TWP 2-S; (32) Thence east to the SE corner of Section 31, Block 38, TWP 2-S; (33) Thence southeast to the NE corner of Section 22, Block 37, TWP 3-S; (34) Thence southeast to the midpoint of the eastern boundary of Section 24, Block 37, TWP 3-S; (35) Thence southeast to the Midland-Glasscock County line where it intersects Section 30, Block 41, TWP 3-S; (36) Thence north along the Midland-Glasscock County line to the junction of Midland, Glasscock and Martin counties; (37) Thence east along the Glasscock-Howard County line to the point where it intersects the eastern boundary of Section 8, Block 33, TWP 2-S; (38) Thence northwest into Howard County to the NE corner of Section 5, Block 33, TWP 2-S; (39) Thence northeast to the midpoint of the northern boundary of Section 38, Block 33, TWP 1-S; (40) Thence northwest to the midpoint of the southern boundary of Section 24, Block 33, TWP 1-S; (41) Thence northeast to the SE corner of Section 13, Block 33, TWP 1-S; (42) Thence northeast to the SE corner of Section 7, Block 32, TWP 1-S; (43) Thence northeast to the SE corner of Section 3, Block 32, TWP 1-S; (44) Thence east to the SE corner of Section 2, Block 31, TWP 1-S; (45) Thence northeast to the NE corner of Section 42, Block 30, TWP 1-N; (46) Thence northwest to the SE corner of Section 13, Block 31, TWP 1-N; (47) Thence northwest to the SE corner of Section 9, Block 31, TWP 1-N; (48) Thence northwest to the SW corner of Section 32, Block 31, TWP 2-N; (49) Thence east to the SE corner of Section 42, Block 27 of the Houston and Texas Central Railroad Company survey (H&T RR Co.); (50) Thence north to the SW corner of Section 27 of the H&T RR Co. survey; (51) Thence west to the NW corner of Section 40, Block 27 of the H&T RR Co. survey; (52) Thence north to the SW corner of Section 21, Block 27 of the H&T RR Co. survey; (53) Thence east to the SE corner of Section 22, Block 27 of the H&T RR Co. survey; (54) Thence north to the Howard-Borden County line where it intersects the eastern boundary of Section 15, Block 27 of the H&T RR Co. survey; (55) Thence west along the Howard-Borden County line until it intersects the eastern boundary of Section 21, Block 33, TWP 3-N; (56) Thence northwest to the Borden-Dawson County line where it intersects the northern boundary of Section 20, Block 33, TWP 4-N; (57) Thence north along the Borden-Dawson County line to the point where it intersects the northern boundary of Section 25, Block 1, TWP 6-N; (58) Thence southeast to the SE corner of Section 44, Block 32 of the EL and RR Railroad Company survey (EL & RR Co.) for Borden County; (59) Thence east to the SE corner of Section 48, Block 32 of the EL & RR Co. survey; (60) Thence northeast to the NE corner of Section 43, Block 31, TWP 6-N; (61) Thence north to the NE corner of Section 31, Block 31, TWP 6-N; (62) Thence northwest to the NW corner of Section 19, Block 31, TWP 6-N; (63) Thence northeast to the SE corner of Section 24, Block 10, EL & RR Co. survey; (64) Thence north along the eastern boundary of Block 10, EL & RR Co. survey, to its intersection with the Borden-Lynn County line; (65) Thence west to the junction of Terry, Lynn and Dawson counties; (66) Thence north along the Terry-Lynn County line to the junction of Terry, Lynn, Hockley and Lubbock counties; (67) Thence west along the Terry-Hockley County line, continuing west along the Yoakum-Cochran County line to the NW corner of Yoakum County at the Texas- New Mexico state line; (68) Thence south along the Texas-New Mexico state line to the point of origin at the SW corner of Andrews County. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on July 31, 1995. TRD-9509489 Lydia Gonzalez-Gromatzky Acting Director, Legal Division Texas Natural Resource Conservation Commission Earliest possible date of adoption: September 4, 1995 For further information, please call: (512) 239-4640 Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L (Editor's Note: As required by the Insurance Code, Article 5.96 and 5. 97, the Texas Register publishes notice of proposed actions by the Texas Board of Insurance. Notice of action proposed under Article 5.96 must be published in the Texas Register not later than the 30th day before the board adopts the proposal. Notice of action proposed under Article 5.97 must be published in the Texas Register not later than the 10th day before the Board of Insurance adopts the proposal. The Administrative Procedure Act, the Government Code, Chapters 2001 and 2002, does not apply to board action under Articles 5.96 and 5.97. The complete text of the proposal summarized here may be examined in the offices of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas 78714-9104.) The Commissioner of Insurance, at a public hearing under Docket Number 2163 scheduled for 1:30 p.m., September 7, 1995, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, will consider a petition filed by Blake Bailey to delete the "intra-family tort exclusion" contained in the Texas Homeowners Policy-Form B. The deletion was proposed in a petition filed on May 23, 1992. The portion of Mr. Bailey's petition seeking deletion of the intra-family tort exclusion in the Texas automobile insurance polices will not be considered. Homeowners coverage is currently subject to the following exclusion contained in Section II-Exclusions, 2(e): "Coverage C (Personal Liability) does not apply to bodily injury to you or an insured within the meaning of part a. or part b. of insured as defined." This exclusion precludes liability coverage for bodily injury for an insured or a family member of the same household. Mr. Bailey's petition proposes to delete the exclusion in its entirety, thus allowing an insured family member injured on the insured property to file a claim under the homeowners policy, including an injury caused by the actions of another insured family member. Mr. Bailey's petition was filed with the Department of Insurance on May 23, 1992. The petition was abated pending a resolution of the Twyman vs. Twyman and Boyles vs. Kerr cases then pending before the Texas Supreme Court. The Texas Supreme Court rendered its decisions in Twyman vs. Twyman and Boyles vs. Kerr on May 5, 1995. A copy of the petition is available for review in the office of the Chief Clerk of the Texas Department of Insurance, 333 Guadalupe Street, Austin, Texas. For further information or to request copies of the petition, please contact Angie Arizpe at (512) 322-4147. (Please refer to Reference Number P-0795-19.) Written comments to the proposed amendment should be submitted prior to the public hearing on September 7, 1995. The written comments should be directed to the Office of the Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-1C, Austin, Texas 78714-9104. An additional copy of comments is to be submitted to David Durden, Deputy Commissioner, Property and Casualty Insurance Lines, Texas Department of Insurance, P.O. Box 149104, MC 104-5A, Austin, Texas 78714-9104. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas on July 28, 1995. TRD-9509424 Alicia M. Fechtel General Counsel and Chief Clerk Texas Department of Insurance