ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 25. Agricultural Development Board The Texas Department of Agriculture (the department) adopts the repeal of sec.sec.25.1-25.9, 25.12, 25.31, 25.32, 25.51-25.58, 25.71-25.82, 25.101, 25.102, 25.111, 25.131-25.141, 25.151, 25.152, 25.161, and 25.171-25.173, concerning the Texas Agricultural Development Board (the Board), without changes to the proposed text as published in the August 29, 1995, issue of the Texas Register (20 TexReg 6727). The repeals are adopted to comply with the repeal of Chapter 57 of the Texas Agriculture Code by the 74th Legislature, Senate Bill 372, resulting in the abolishment of the Board. The repeals will function by deleting references that are now irrelevant and non-functional due to the abolishment of the Board. No comments were received regarding adoption of the repeals. Subchapter A. General Provisions 4 TAC sec.sec.25.1-25.9, 25.12 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513611 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter B. Corporation Filings 4 TAC sec.25.31, sec.25.32 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513612 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter C. Applications in General: Filing Requirements 4 TAC sec.sec.25.51-25.58 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513613 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter D. Facility Bonds: Contents of Application 4 TAC sec.sec.25.71-25.82 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513614 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter E. Facility Bonds: Conditional Approval of Application 4 TAC sec.25.101, sec.25.102 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513615 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter F. Facility Bonds: Final Approval of Application 4 TAC sec.25.111 The repeal is adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513616 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter G. Loans to Lending Institutions Program Bonds: Contents of Application 4 TAC sec.sec.25.131-25.141 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513617 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter H. Loans to Lending Institutions Program Bonds: Conditional Approval of Application 4 TAC sec.25.151, sec.25.152 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513618 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter I. Loans to Lending Institutions Program Bonds: Final Approval of Application 4 TAC sec.25.161 The repeal is adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513619 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 Subchapter J. Loans to Lending Institutions Program Bonds: Certification 4 TAC sec.sec.25.171-25.173 The repeals are adopted under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the administration of its powers and duties under the Code. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513620 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: November 13, 1995 Proposal publication date: August 29, 1995 For further information, please call: (512) 463-7583 TITLE 16. ECONOMIC REGULATION Part VI. Texas Motor Vehicle Commission Chapter 101. Practice and Procedure Adjudicative Proceedings and Hearings 16 TAC sec.101.64 The Texas Motor Vehicle Board adopts an amendment to sec.101.64, concerning the procedure under which decisions regarding general warranty complaints brought under the Texas Motor Vehicle Commission Code, sec.3.08(i), become final, without changes to the proposed text as published in the June 20, 1995, issue of the Texas Register (20 TexReg 4461). The amendment to sec.101.64 excepts cases brought under Texas Motor Vehicle Commission Code, sec.3.08(i) pertaining to consumer complaints, covered by general warranty agreements, from the provisions of sec.101.64. The amendment is necessary to allow the addition of new sec.107.12, which authorizes the executive director to issue final orders under the Code, sec.3.08(i), and which is simultaneously being adopted. The effect of enforcing the section will be to except general warranty claims brought under the Code, sec.3.08(i), from its provisions, thereby allowing expeditious resolution of the claims by bringing them under the procedure used for lemon law claims brought under the Code, sec.6.07. One written comment questioning the efficacy of the proposed amendment was received from Ford Motor Company. A public hearing for the purpose of receiving comments was held September 7, 1995. Testimony questioning sec.101.64 was received from Ford Motor Company. The Board determined that using the same procedures for cases brought under sec.3.08(i) and sec.6.07 would expedite the resolution of general warranty complaints and that this outweighed any negative effect of any perceived expansion of the lemon law to include general warranty complaints. The amendment is adopted 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. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 24, 1995. TRD-9513743 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Effective date: November 15, 1995 Proposal publication date: June 20, 1995 For further information, please call: (512) 505-5100 Chapter 107. Warranty Performance Obligations The Texas Motor Vehicle Board adopts amendments to sec.107.1, concerning Objective and sec.107.6, concerning Hearings; and new sec.107.12, concerning Contested Cases under General Warranty Provisions, Decisions and Final Orders, without changes to the proposed text as published in the June 20, 1995, issue of the Texas Register (20 TexReg 4461). The amendment to sec.107.1 is necessary to allow the use of the applicable procedure promulgated under the Texas Motor Vehicle Commission Code, sec.6.07, known as the lemon law, for general warranty complaints and to allow the addition of proposed new sec.107.12, which will authorize the executive director to issue final orders under the Code, sec.3.08(i). The amendment to sec.107.6(2) changes the notice requirements for lemon law hearings from 20 days to ten days notice, to conform with the provisions of the Administrative Procedure Act and to allow greater flexibility in scheduling lemon law hearings. The amendment also deletes mandatory notice to the dealer, unless the dealer is identified as a party to the proceeding, to relieve the agency of an unnecessary administrative burden. New sec.107.12 authorizes the executive director to issue final orders under the Texas Motor Vehicle Commission Code, sec.3.08(i), pertaining to consumer complaints covered by general warranty agreements, which authority is currently reserved for the Motor Vehicle Board. This enables the Motor Vehicle Division to expedite resolution of general warranty complaints, by allowing use of the procedures promulgated under the Code, sec.6.07. The effect of the amendment to sec.107.1 and new sec.107.12 will be to expedite the resolution of general warranty complaints brought under the Texas Motor Vehicle Commission Code, sec.3.08(i), by bringing them into conformance with procedures used for lemon law claims under the Code, sec.6.07. The effect of enforcing sec.107.6(2) will be the uniformity of Texas Motor Vehicle Board rules with Administrative Procedure Act provisions pertaining to notice of hearing; and also allow greater flexibility in scheduling consumer complaint hearings, thereby expediting resolution of these complaints. Written comments on the proposed amendments and the proposed section were received from Ford Motor Company, General Motors Corporation and the Recreation Vehicle Industry Association. A public hearing for the purpose of receiving comments was held September 7, 1995. Comments in favor of the proposals were received from the Motor Vehicle Division staff. Comments opposing the proposals or parts thereof were received from Ford Motor Company, General Motors Corporation and Buick Motor Division. Concerns were expressed about changing the notice requirements for hearings from 20 to ten days, deleting the requirement to provide the dealer with the notice, except when a party, and expanding the lemon law to include general warranty complaints. The board considered comments questioning whether the procedures as to how decisions become final should be the same for both sec.3.08 and sec.6.07 cases. Because using the same procedures would expedite the resolution of general warranty complaints, the board determined this fact outweighed any negative effect of any perceived expansion of the lemon law to include general warranty complaints. With respect to changing the notice requirements for hearings from 20- to ten-day notice, the board questioned the comments from the manufacturers that this change would seriously impact their ability to resolve complaints before the hearings or create scheduling difficulties, when, in fact, they have usually known about the complaint for three to four months (i. e., when the consumer first files a complaint). The board agreed with the staff's assessment that bringing the notice period into conformity with the Administrative Procedure Act and allowing greater flexibility in scheduling hearings, outweighed the concerns expressed by the manufacturers. Regarding deleting the mandatory notice of the hearing to the dealer, unless the dealer is a party, the board questioned the comments by the manufacturers as to the necessity of providing the hearing notice to the dealer in light of the fact that the agency provides the dealer with a copy of the complaint when filed and asks for a response thereto as part of the mediation process. The board decided that relieving the agency of the administrative burden of providing another notification to the dealer outweighed the concerns expressed by the manufacturers. 16 TAC sec.107.1, sec.107.6 The amendments are adopted 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. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 24, 1995. TRD-9513744 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Effective date: November 15, 1995 Proposal publication date: June 20, 1995 For further information, please call: (512) 505-5100 16 TAC sec.107.12 The new section is adopted 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. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 24, 1995. TRD-9513745 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Effective date: November 15, 1995 Proposal publication date: June 20, 1995 For further information, please call: (512) 505-5100 Chapter 109. Lessors and Lease Facilitators 16 TAC sec.sec.109.1-109.5, 109.7-109.11 The Texas Motor Vehicle Board adopts new sec.sec.109.1-109.5 and sec.sec.109. 7-109.11, concerning regulation of motor vehicle lessors and lease facilitators by establishing requirements for licensing and business practices and cause for cancellation of license. Sections 109.3-109.5, 109.7, and 109.9 are adopted with changes to the proposed text as published in the August 4, 1995, issue of the Texas Register (20 TexReg 5842). Sections 109.1, 109. 2, 109.8, 109.10, and 109.11 are adopted without changes and will not be republished. Proposed sec.109.6 is being withdrawn in response to public comment summarized in the public comments section of this preamble. Changes made for clarification or to correct typographical errors are as follows. For clarification in sec.109.3, the board has determined it is necessary to add a description and the functions of a bona fide employee of a lease facilitator. The board has expanded permissible documentation for application for a license by adding the phrase "or acceptable substitute as designated by the Motor Vehicle Division" to sec.109.4. The board has changed sec.109.5(a) by deleting the word "cancel" and substituting "revoke, deny or suspend" to more clearly illustrate due process will be afforded to any licensee facing termination of license. Section 109.5(a)(2) has been augmented by, "Such records shall be kept in accordance with sec.109.9(a) of this title (relating to Records of Leasing)." Section 109.7(1)(E) has been added, "A lease facilitator's established and permanent place of business, as prescribed in this rule, must be physically located within the state of Texas" to clearly indicate that consumers in Texas must be able to deal face-to-face with lease facilitators doing business in Texas. Section 109.7(3) has been amended to require a lessor or lease facilitator to maintain any premises lease for the same period of time as its license, rather than one year, as follows. "If the premises from which a lessor or lease facilitator conducts business are not owned by the licensee, such licensee shall maintain a lease continuous for the same period of time as the lessor's or lease facilitator's license." Additionally, the word "dealer" has been deleted from the phrase "owned by the licensee dealer". Section 109.9(c)(2) has been amended by the addition of the word "new" to clarify that lessors and lease facilitators may not sell new motor vehicles in accordance with the Texas Motor Vehicle Commission Code, sec.5.04. In addition, the word "lease facilitator" has been pluralized throughout Chapter 109. The new rules are necessary to implement the regulation of motor vehicle lessors and lease facilitators by the Motor Vehicle Board pursuant to Senate Bill 921, passed during the 74th Legislative Session, effective June 8, 1995, by imposing requirements for licensing and business practices and cause for cancellation of licenses. The effect 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. Written comments on the proposed section were received from Capital Consultants, National Vehicle Leasing Association, Texas Automobile Dealers Association, Texas Credit Union League and Affiliates and individual lessors. A public hearing for the purpose of receiving comments was held September 7, 1995. Testimony in favor of the proposal was received from Motor Vehicle Division staff and Capital Consultants. Testimony opposing the proposal or parts thereof were received from the National Vehicle Leasing Association (NLVA); Enterprise Fleet Services and one individual. Concerns were expressed about the prohibition against off-site leasing in sec.109.06 as being too restrictive and beyond the intent of the enabling legislation. Comments were received raising questions about the applicability of the motor vehicle leasing rules to "indirect lessors". The board determined that no difference between original lessors and subsequent lessors exists, as far as the public interest in regulating the relationship between Texas consumers and their motor vehicle lessors is concerned; and, therefore, no amendment or clarification in that regard was necessary because the existing proposed language covered all lessors. With respect to questions about whether the statute and rules apply to entities that are exempt from licensing under the statute and whether acquisition fees are allowed, the board concluded that all entities, whether required to hold a license or not, are expected to comply with board rules and statutory regulations. The board also considered the specific concern over sec.109.6 which, as proposed, would preclude off-site leasing activity. It was determined that additional study was necessary with relation to that particular rule (sec.109.6) and it was decided to withdraw it from consideration for passage at this time. The new sections are adopted under the Texas Motor Vehicle Commission Code, sec.3.06, which provides the board with the authority to adopt rules necessary and convenient to effectuate the provisions of the act and to govern practice and procedure before the agency. sec.109.3. License. (a) 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. (b) Lease facilitators must be licensed separately for each business location. Any representative of a lease facilitator must be a bona fide employee of the lease facilitator. A bona fide employee is a representative of the lease facilitator's business: (1) who is on the payroll and receives compensation in which Social Security, FUTA, and all other appropriate taxes are withheld from the representative's paycheck and said taxes are paid to the proper taxing authority; and (2) the details of the work of when, where, and how the final results are achieved are directed and controlled by the lease facilitator. 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 or acceptable substitute as designated by the Motor Vehicle Division; (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; (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 revoke, deny or suspend 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 year's 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. Such records shall be kept in accordance with sec.109.9(a) of this title (relating to Records of Leasing); (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 the Motor Vehicle Commission Code, sec.5.03A and sec.5.03B; (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 of 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.109.7. 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 facilitators 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; (iii) a separate right of occupancy meeting the requirements of this section. (E) A lease facilitator's established and permanent place of business, as prescribed in this rule, must be physically located within the State of Texas. (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, such licensee shall maintain a lease continuous for the same period of time as the lessor's or lease facilitator's license, 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.109.9. 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; (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 facilitators must be in accordance with the Motor Vehicle Board Advertising Rules. (2) Lessors and lease facilitators 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 new 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. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 24, 1995. TRD-9513746 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Effective date: November 15, 1995 Proposal publication date: August 4, 1995 For further information, please call: (512) 463-8630 Chapter 111. General Distinguishing Numbers 16 TAC sec.sec.111.1-111.16 The Texas Motor Vehicle Board adopts 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)). Sections 111.3, 111. 4, 111.7, 111.11, 111.12, and 111.15 are adopted with changes to the proposed text as published in the August 4, 1995, issue of the Texas Register (20 TexReg 5844). Sections 111.1, 111.2, 111.5, 111.6, 111.8-111.10, 111.13, 111.14, and 111.16 are adopted without changes and will not be republished. The board considered revisions that were submitted by the staff. It agreed that most of the changes concerned grammatical corrections or deletion of superfluous and/or confusing language. Changes made for clarification or to correct typographical errors follow. In sec.111.3(3), the word "Sates" has been corrected to "States"; sec.111.3(7) , "a least 25" has been corrected to "at least 25" and the last word "and" has been deleted; sec.111.3(8), "sec.111.4" has been corrected to "sec.111.5"; in sec.111.3(c)(1), "sec.111.6" has been corrected to "sec.111.7". The last sentence has been deleted from sec.111.3(d) because both franchised and independent dealers are now licensed by the Texas Motor Vehicle Commission (now the Texas Motor Vehicle Board) and the distinction no longer applies to independent dealers. In sec.111.3(f), the word "the" has been added to the phrase "under the Texas Business Corporation Act". Section 111.4 has been corrected by changing the word "design" to "designed". Section 111.7 has been amended to clarify that only non-franchised dealers must carry a $25,000 bond. The board has changed sec.111.11(a) by deleting the term "cancellation" and substituting "revocation/denial", as well as deleting the word "cancel" and substituting "revoke, deny or suspend" to more clearly illustrate due process will be afforded to any licensee facing termination of license. Section 111. 11(a)(4) has been amended to clarify that an offer to sell has the same effect as selling, unless otherwise authorized by statute. Section 111.13 has been corrected by the addition of the word "be" to the phrase "must be properly executed". In sec.111.20, the last word "or" has been deleted. The word "Board" has been substituted for "Commission" in sec.111.12. Section 111.15(b)(6) has been corrected by the addition of the word "is" to the phrase "if vehicle is offered". The last word "and" has been deleted in sec.111.15(b)(7). "Titles or photocopies of titles" have been added to sec.111. 15(b)(8) as records a dealer is required to maintain. Section 111.15(c) has been amended to delete the words "assigned ownership documents in favor of the purchaser when the vehicle is sold or furnish". Section 111.15(d) has been amended to delete the words "full cash payment, or the" and "or the documents will be filed by the lienholder". These amendments were made to bring the rules into consistency with state law regarding prohibitions against brokering and procedures called for under laws relating to titling and sales of new motor vehicles. The new rules are required pursuant to action taken by the 74th Legislative Session, Senate Bill 1446, effective June 9, 1995, which transfer regulatory and rulemaking authority regarding such obligations from the Texas Transportation Commission to the Texas Motor Vehicle Board. The effect 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. Written comments on the proposed sections were received from the Texas Automobile Dealers Association and Gulf Insurance Group. A public hearing for the purpose of receiving comments was held September 7, 1995. Testimony in favor of the proposal was received from Heidi Jackson, Assistant Director-Licensing, Motor Vehicle Division. No testimony was received opposing the proposed sections. Concerns were registered about applicability of state rules and regulations regarding the Tax Code and the Comptroller's Office insofar as dealer activity is concerned. The board agreed to the addition of item number 23 under proposed sec.111.11 which causes a dealer to be in jeopardy of sanctions for violation of any state or federal law or regulation relating to the sale of a motor vehicle. The board found the expression of sanctions listed in proposed sec.111.11 to be appropriate and will allow the agency sufficient latitude to deal with a variety of case scenarios. The new sections are adopted under the Texas Motor Vehicle Commission Code, sec.3.06, which provides the Board with the authority to adopt rules necessary and convenient to effectuate the provisions of the act and to govern practice and procedure before the agency. 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 States, 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 at 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.111.5 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.111.7 of this title (relating to Bond Requirements), or acceptable security as cited in sec.111.7 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.111.10 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; (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. " (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 the 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.111.10 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(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. 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 designed 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.111.7. Security Requirements. (a) A motor vehicle dealer or motorcycle dealer who does not hold a franchised dealer's license issued 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.111.11. Sanctions. (a) Revocation/Denial. The director may deny, revoke or suspend 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 year's 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.111.10 of this title (relating to Established and Permanent Place of Business), is found to be selling or offering to sell a vehicle to someone other than a licensed dealer, unless authorized by statute; (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.111.15 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 be 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; (22) utilizes a temporary cardboard tag that fails to meet department specifications as cited in sec.111.8 of this title (relating to Temporary Cardboard Tags); or (23) violates any state or federal law or regulation relating to the sale of a motor vehicle. (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 subsections (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 Board. Upon determination that a person had violated or is likely to violate any law, board 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.101.41-101.65 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.111.11 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.111.15. 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 vehicle is offered for sale by consignment; and (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, titles or photocopies of titles, 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 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 of any vehicle to be titled or registered in the state of Texas. (d) Notification to the department. Notification of vehicle sales, as required by the Transportation Code, sec.sec.503.005, 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 vehicle to be transferred out of state, 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. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 24, 1995. TRD-9513748 Brett Bray Director, Motor Vehicle Division Texas Motor Vehicle Commission Effective date: November 15, 1995 Proposal publication date: August 4, 1995 For further information, please call: (512) 505-8630 TITLE 25. HEALTH SERVICES Part I. Texas Department of Health Chapter 3. Memorandums of Understanding With Other State Agencies 25 TAC sec.3.31 The Texas Department of Health (department) adopts new sec.3.31, concerning a memorandum of understanding (MOU), with changes to the proposed text as published in the August 8, 1995, issue of the Texas Register (20 TexReg 5989). The new section adopts by reference an MOU between the department, Texas Department of Criminal Justice, Texas Rehabilitation Commission, Texas Commission for the Blind, Texas Commission for Deaf and Hard of Hearing, and Texas Department of Human Services, and addresses the responsibilities of each agency to institute a continuity of care and service for offenders in the criminal justice system who are physically disabled, terminally ill or significantly ill. The MOU is required by Texas Health and Safety Code sec.614. 015. One staff comment was received regarding the proposed section. The department responded accordingly. COMMENT: Department staff commented that Chapter 835 of the 74th Legislature changed the name of the Texas Commission for Deaf and Hearing Impaired to the Texas Commission for the Deaf and Hard of Hearing, effective September 1, 1995. The section should be changed to reflect the new name. RESPONSE: The department agrees and the title and text of the section were changed. The commenter was the Texas Department of Health, Office of General Counsel. The new section is adopted under the Texas Health and Safety Code, Chapter 614, "Texas Council on Offenders with Mental Impairments," sec.614.015, "Continuity of Care for Physically Disabled, Terminally Ill, or Significantly Ill Offenders," which requires the department to adopt an MOU by rule; and sec.12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health. sec.3.31. Memorandum of Understanding Between the Texas Department of Criminal Justice, Texas Commission for the Blind, Texas Commission for the Deaf and Hard of Hearing, Texas Rehabilitation Commission, Texas Department of Human Services, and the Texas Department of Health. (a) The Texas Department of Health (department) adopts by reference a memorandum of understanding (MOU) between the Texas Department of Criminal Justice, Texas Commission for the Blind, Texas Commission for the Deaf and Hard of Hearing, Texas Rehabilitation Commission, and Texas Department of Human Services. The MOU contains the agreement required by Texas Health and Safety Code, Chapter 614, sec.614.015 to establish the respective responsibilities of these agencies to institute a continuity of care and service program for offenders in the criminal justice system who are physically disabled, terminally ill, or significantly ill. (b) The MOU is adopted by rule in 37 Texas Administrative Code sec.159.5(a). (c) The effective date of the MOU, with respect to the department, is the same as the effective date of this section. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513637 Susan K. Steeg General Counsel, Office of General Counsel Texas Department of Health Effective date: November 13, 1995 Proposal publication date: August 8, 1995 For further information, please call: (512) 458-7236 Chapter 98. HIV and STD Control The Texas Department of Health (department) adopts the repeal of sec.98. 104 and sec.98.105, and new sec.98.104, concerning medication coverage and drug specific eligibility criteria, without changes to the proposed text as published in the July 4, 1995, issue of the Texas Register (20 TexReg 4903) and therefore the sections will not be republished. The new section specifies that medication coverage and drug specific eligibility criteria shall be determined by the commissioner of health considering the recommendations of the Texas HIV Medication Advisory Committee. The repeal and new section are necessary to implement the provisions of the "Communicable Disease Prevention and Control Act." The Texas HIV Medication Program is established by Texas Health and Safety Code (HSC), Chapter 85, Subchapter C, sec.85.063 to assist hospital districts, local health departments, public or nonprofit hospitals and clinics, nonprofit community organizations, and HIV-infected individuals in the purchase of medications approved by the Texas Board of Health (board) that have been shown to be effective in reducing hospitalizations due to HIV-related conditions. Although not required by statute, the board has selected these medications by rule. The proliferation of available medications used in treating HIV-infected individuals, and advances in the medical knowledge concerning their use has resulted in frequent amendments of 25 TAC sec.98.104 and sec.98.105. The rulemaking process is time consuming and could result in a delay between Food and Drug Administration and advisory committee approval, and the addition of drugs to the program in the future. The department is adopting the repeal of existing sec.98.104 and sec.98.105 and new sec.98.104 to make the formulary a matter for internal department decision, rather than a rulemaking procedure. The Texas Board of Health (board) will do this by deleting the rules, but not the policies; establishing medication coverage and drug specific eligibility criteria; and by delegating authority to approve medications to the commissioner of health. The board's authority to approve medications is given in Health and Safety Code, Chapter 85, sec.85.061. The authority to delegate authority to the commissioner is found in Health and Safety Code, Chapter 11, sec.11.013(b). No comments were received regarding adoption of the repeals and new section. Subchapter C. Texas HIV Medication Program 25 TAC sec.98.104, sec.98.105 The repeals are adopted under the Health and Safety Code, sec.85.016, which provides the board with the authority to adopt rules concerning the Texas HIV Medication Program; under Health and Safety Code, sec.12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513644 Susan K. Steeg General Counsel, Office of General Counsel Texas Department of Health Effective date: November 13, 1995 Proposal publication date: July 4, 1995 For further information, please call: (512) 458-7236 25 TAC sec.98.104 The new section is adopted under the Health and Safety Code, sec.85.016, which provides the board with the authority to adopt rules concerning the Texas HIV Medication Program; under Health and Safety Code, sec.12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513645 Susan K. Steeg General Counsel, Office of General Counsel Texas Department of Health Effective date: November 13, 1995 Proposal publication date: July 4, 1995 For further information, please call: (512) 458-7236 Part II. Texas Department of Mental Health and Mental Retardation Chapter 401. System Administration Subchapter C. TDMHMR Rulemaking 25 TAC sec.sec.401.301-401.308 The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeal of sec.sec.401.301-401.308, concerning TDMHMR rulemaking, without changes to the proposed text as published in the September 15, 1995, issue of the Texas Register (20 TexReg 7259). New sec.sec.401.301-401.308, concerning the same matters are adopted contemporaneously in this issue of the Texas Register. The repeals enable the department to update it's policies concerning rulemaking processes consistent with the Administrative Procedure Act, Texas Government Code, Chapter 2001. No comment were received regarding adoption of the repeals. The repeals are adopted under the Texas Health and Safety Code, sec.532.015, which provides the Texas Mental Health and Mental Retardation Board with broad rulemaking authority, and under provisions of Texas Civil Statutes, Article 4413(502), sec.15, which provide the Texas Health and Human Services Commission with authority for department rules. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513595 Ann Utley Chair Texas Department of Mental Health and Mental Retardation Effective date: November 13, 1995 Proposal publication date: September 15, 1995 For further information, please call: (512) 206-4516 The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts new sec.sec.401.301-401.303, and sec. sec.401.305, 401.306, and 401.308, concerning TDMHMR rulemaking, without changes to the proposed text as published in the September 15, 1995, issue of the Texas Register (20 TexReg 7259). Section 401.304 and sec.401.307 are adopted with changes. Existing sec.sec.401.301-401.308, concerning the same matters are repealed contemporaneously in this issue of the Texas Register. The new sections update the department's policies concerning rulemaking processes consistent with the Administrative Procedure Act, Texas Government Code, Chapter 2001. Section 401.304 is changed on adoption to clarify that the commissioner notifies the petitioner in writing not only when a petition is denied but also when a petition results in the initiation of the rulemaking process. Section 401.308 is changed on adoption to more accurately depict the distribution of the new rules. A public hearing was held in Austin on September 26, 1995. No testimony was offered at that time. Written comments were received from Advocacy, Inc.; MHMR Services for the Concho Valley, San Angelo; Harris Mental Health Management Services, Arlington; Tarrant County Mental Health and Mental Retardation Services, Fort Worth; and the Private Providers Association of Texas, Austin. A commenter noted that no methodology is prescribed in the rule for use by the department in determining whether or not a proposed rule will have a significant fiscal implication on state or local government or small businesses, and suggested that the rule should prescribe a standard methodology. The commenter further stated that the absence of a prescribed methodology permits a single designated individual to state an opinion without any real fact finding studies being conducted or factual opinions required from those who must carry out the rule requirements. The department responds that no further standardization of the process is necessary, and that the current system of estimating economic impacts, publishing a statement in the preamble of proposed rule (as required by law), requesting comments specific to fiscal implications when the proposal is distributed, reviewing comments, and revising the economic impact statement as necessary provides the best available information. A commenter noted that the rule does not provide a mechanism for the commissioner to respond to a petition for a rule change. The department responds that the rule requires the commissioner to either deny the petition in writing or initiate rulemaking procedures. Language has been added to clarify that the petitioner will also be notified when rulemaking procedures are initiated. One commenter requested that the rule provide more details specifically as it applies to the re-proposal of a rule which has been withdrawn without final action being taken, and the department's policy concerning the response to substantive negative comment. The commenter also stated that the organization could not support the rules as proposed. The department responds that a detailed description of the required rulemaking process is outlined in the Administrative Procedure Act (APA), Texas Government Code, Chapter 2001, and in the rules of the Texas Register (1 TAC 91) and does not need to be duplicated in the rules of this department. Regarding the issue of substantive negative comment, the department's internal process for responding to comments involves review by staff in legal, fiscal, and program areas. Comment is summarized not only in the adoption, as required by Texas Register rules, but also in a standardized format prescribed by the Texas MHMR Board for its use in considering the recommended rule action. One of the required elements of the board memo is a discussion of negative reactions from the public and other stakeholders. All rules are issued under the authority of the board and the commissioner. The department considers a detailed discussion of this process in the rule to be unnecessarily prescriptive and burdensome, and declines to implement the requested revision. A commenter questioned the distribution of the new rules, both in scope and timeliness. The department responds that the new rules on TDMHMR rulemaking will be distributed to all entities required to comply with one or more departmental rules as well as to advocacy and special interest organizations who routinely receive rules related to their areas of interest. The department distributes rules so that they are received prior to their effective dates; emergency rules that are adopted immediately are distributed as soon as possible following adoption. A commenter questioned whether the distribution section should be expanded to reference community mental health and mental retardation centers or contractors. The department responds that the distribution section has been revised in response to the commenter's concern. A commenter questioned whether the rule should be titled "TXMHMR Rulemaking" instead of "TDMHMR Rulemaking." The department responds that for purposes of compliance with the Administrative Procedures Act and other laws, the department is identified as "TDMHMR." The new sections are adopted under the Texas Health and Safety Code, sec.532. 015, which provides the Texas Mental Health and Mental Retardation Board with broad rulemaking authority, and under provisions of Texas Civil Statutes, Article 4413(502), sec.15, which provide the Texas Health and Human Services Commission with authority for department rules. sec.401.304. Petitions for Rules or Changes to Rules. (a) Any person may petition for a rule or rule change by submitting a request to the commissioner that complies with the following requirements: (l) The petition shall be typed or legibly printed and shall be signed in ink by the petitioner or the petitioner's authorized agent. (2) The petition shall: (A) state its purpose; (B) contain a concise statement of facts in support of its purpose; and (C) include the text of the proposed rule or revision and the proposed effective date. (b) Not later than the 60th day after the date of submission of a petition under this section, the commissioner shall take the following action, with written notification to the petitioner: (1) deny the petition in writing, stating the reason for the denial; or (2) initiate a rulemaking proceeding under this subchapter and Texas Government Code, Chapter 2001. sec.401.307. Distribution. This rule shall be distributed to all members of the board; assistant commissioner; directors in Central Office; superintendents/directors of all department facilities; chief executive officers of mental health and mental retardation authorities, community mental health and mental retardation centers, psychiatric hospitals, and crisis stabilization units; Medicaid providers subject to regulation by the Texas Department of Mental Health and Mental Retardation; advocacy and other organizations; the Texas Register ; and others as appropriate and as designated in the distribution notice. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513594 Ann Utley Chair Texas Department of Mental Health and Mental Retardation Effective date: November 13, 1995 Proposal publication date: September 15, 1995 For further information, please call: (512) 206-4516 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part I. General Land Office Chapter 19. Oil Spill Prevention and Response Subchapter B. Spill Prevention and Preparedness 31 TAC sec.19.17, sec.19.19 The Texas General Land Office (GLO) adopts the repeal of sec.19.17 and sec.19.19, concerning vessel response plans and proof of financial responsibility and denial of entry into port, without changes to the proposed text as published in the May 9, 1995, issue of the Texas Register (20 TexReg 3442). The sections are repealed because they have been moved into new Subchapter E of this chapter (relating to Vessels). The provisions relating to proof of financial responsibility are now at sec.19.62 and provisions relating to denial of entry into port are now at sec.19.63. No comments were received regarding adoption of the repeals. The repeals are adopted under the Texas Natural Resources Code, sec.40.007 and sec.40.117(a)(1), which authorizes the commissioner of the GLO to adopt regulations necessary and convenient to the administration of the Oil Spill Prevention and Response Act and, more specifically, to adopt regulations regarding standards and requirements for discharge prevention and response capabilities of vessels. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 25, 1995. TRD-9513718 Garry Mauro Commissioner General Land Office Effective date: November 14, 1995 Proposal publication date: May 9, 1995 For further information, please call: (512) 305-9129 Subchapter E. Vessels 31 TAC sec.sec.19.60-19.63 The General Land Office (GLO) adopts new sec.sec.19.60-19.63, Subchapter E, concerning vessels and the prevention of and response to oil spills emanating from vessels that enter Texas coastal waters. Section 19.60 and sec.19.61 are adopted with changes to the proposed text as published in the May 9, 1995, issue of the Texas Register (20 TexReg 3443). Section 19.62 and sec.19. 63 are adopted without changes and are not republished. The new subchapter incorporates information previously found in sec.19.17 and sec.19.19, which are concurrently being repealed, and can now be found at sec.19.62 and sec.19.63 of this subchapter. The new subchapter was proposed, and is adopted, to provide a subchapter containing all requirements for vessels subject to regulation under the Oil Spill Prevention and Response Act of 1991 (OSPRA), Texas Natural Resources Code, Chapter 40. The adopted sections apply to vessels subject to the Oil Pollution Act (OPA) and to Regulation 26 of Annex I of MARPOL. Vessels subject only to OSPRA, and not to OPA or Regulation 26, are not affected by these rules. The GLO is continuing to evaluate options for regulating the discharge prevention and response capability of vessels that are capable of carrying 10,000 gallons or more of oil as fuel or as cargo. Unfortunately, there was some confusion regarding the interpretations of the proposed rules applicability to vessels subject to OPA. Vessels that are required to comply with OPA are only required to comply with sec.19.61(a). Even if the same vessel must comply with both OPA and Regulation 26, the GLO does not require compliance with both sec.19.61(a) and (c), but only compliance with (a). Section 19.61(c) regarding IMO vessels applies, for purposes of these rules, only to vessels that are subject to Regulation 26, Annex I of MARPOL and that are not subject to OPA. Section 19.60(a)(1) and (2) are reordered to clarify the distinction between MARPOL and Annex I of MARPOL. Sections 19.60(a)(5), 19.61(a)(2) and (c)(1) have been changed to clarify the relationship between requirements for OPA vessels and vessels subject to Regulation 26 by adding language to the definitions of OPA vessel and IMO vessel and the requirements for response plans from these vessels. Section 19.60(a)(4) has been changed to substitute the term "authorized organization" for the term "approved class society", to conform to practice in the international vessel community. Section 19.61(c)(2)(B)(i) has been changed by adding the requirement that vessels provide their IMO number. Section 19.61(c)(2)(B)(iv) has been changed by deleting the requirement that IMO vessels submit the names of discharge response contractors to the GLO and to require only that such information be kept on board the affected vessel. Section 19.61(c)(2)(A) has been changed to provide for approval by a vessel's flag state to conform to practice in the international vessel community. Section 19.61(c)(2)(B)(iii)(I) has been changed to substitute the term "authorized person" for the term "person-in-charge" to avoid confusion with federal regulations. Section 19.63(d)(5) has been changed because the GLO is not requiring that information about response organizations be forwarded to the GLO, but only that such information be kept on board the IMO vessel. Section 1963.(e) has been changed to delete the requirement that vessels requiring emergency entry into a Texas port must identify response organizations. General Comments One commenter complimented the GLO for connecting OSPRA implementation to IMO Regulation 26 requirements, thereby avoiding duplication and unnecessary paperwork. The GLO is committed to ensuring that the requirements of state law regarding oil spill prevention and response complement, rather than duplicate, federal and international law. Therefore, some of the proposed requirements in this subchapter have been changed to minimize duplication. Two commenters stated that the proposed regulations are duplicative of federal regulations and are therefore inappropriate and fiscally irresponsible. OSPRA requires the GLO to respond to and prepare for oil spills that enter or threaten to enter Texas coastal waters. The GLO, in its fourth year of implementing OSPRA, has proceeded cautiously in imposing requirements on vessels due to the international character of their ownership. However, the Texas Legislature did not intend to rely solely on federal requirements to protect Texas coastal waters. The GLO has strongly supported the "one plan" concept for oil spill prevention and response and believes that these rules, which impose minimal additional requirements on vessel owners and operators, are justified by its legislative mandate to ensure that the state's response to oil spills is swift and orderly. No change was made based on these comments. One commenter recommended that the GLO simply require vessel owners and operators to have an approved plan on board and to allow GLO inspection on request. The GLO requires information that is readily accessible in the event of an oil spill; simply having a plan on board the vessel does not allow the GLO to begin immediate response planning when a spill occurs. The spill responder's lack of access to a spill response plan would create significant problems where the vessel is in distress. These rules do not impose significant additional requirements on vessels already regulated by either OPA or MARPOL, but only requires certain basic information be submitted to the GLO to ensure protection of Texas coastal waters and shorelines. No change has been made based on this comment. One commenter suggested that coastal states, like Texas, provide ship masters with the information needed to make prompt and correct notifications. The GLO welcomes this suggestion and is in the process of providing simplified notification information to ship masters. Based upon this comment, no change was made to the rule. One commenter stated that the proposed regulations are too stringent and will drive commercial shrimping vessels out of business. The same commenter noted that there was no documentation to suggest that vessels carrying 10,000 gallons or more of fuel oil are a potential pollution threat. The requirement that vessels carrying 10,000 gallons or more of oil submit response plans is required by OSPRA. These rules, however, do not affect such vessels. As stated in sec.19.61(b), such vessels are not yet subject to vessel response plan requirements. Furthermore, an analysis of three years of oil spill reports shows that shrimping vessels are responsible for a disproportionate share of oil spills in coastal waters, mostly due to the discharge of oily bilge, flooding and sinking incidents. Two commenters suggested that the GLO simplify its regulations by developing a closer coordination with the United States Coast Guard (USCG) and by accessing USCG data via computer instead of requiring vessel owners and operators to submit information to the GLO. Another commenter recommended that GLO use computers to operate more efficiently and to decrease overhead by retrieving needed information from USCG databases. The GLO has developed a close working relationship with the USCG. The problem with simply sharing databases, which is an excellent idea, is that the USCG is operating a computer system that is not compatible with the one operated by the GLO or by the Texas Department of Public Safety. Furthermore, the GLO does not want to become overly reliant on computer- stored information. During an emergency, when electricity may not be available, information in hard copy may make the difference between an oil spill that can be managed and one that becomes uncontrollable. No change was made to this rule as a result of the comments. Two commenters objected to having to submit both the OPA plan and part of the MARPOL plan to the GLO. Any vessel already subject to OPA does not have to submit part of its MARPOL plan to the GLO. Unfortunately, this was not clear in the proposed rule. Section 19.60 and sec.19.61 are changed to clarify that the GLO is requiring information only once from each vessel entering Texas waters. Therefore, a vessel subject to OPA does not have to submit any MARPOL information to the GLO. One commenter stated that the GLO should coordinate information sharing with the USCG and not require vessel owners and operators to submit proof of compliance with OPA to the GLO. This requirement was not new in the proposed rules. The GLO has been requiring proof of compliance with OPA for over a year, under concurrently repealed sec.19.17 of this chapter, and does not believe the requirement is burdensome. No change was made as a result of this comment. One commenter requested the GLO to clarify that vessels subject to both OPA and IMO need submit only the OPA plan to the GLO. This clarification is being made by changing the definitions in sec.19.60 and the response plan requirements in sec.19.61. One commenter stated that non-oil tankers should have no additional contingency plan requirements other than those required by Regulation 26. Vessels regulated by Regulation 26 are only required to submit a form to the GLO which gives information already required by Regulation 26. The GLO is only requesting the information in English, which may not be the language of the regulation since the master and officers of a vessel often are not English-speaking. This is hardly an additional contingency plan requirement. It allows the GLO to have its own database of vessel information to assist in initiating spill response. No change was made based upon this comment. Two commenters stated that the proposed regulations increase administrative and economic burdens on the public and the private sector without any clear enhancement of safety, pollution prevention or response readiness. The GLO disagrees with these comments. The availability of basic information about a vessel, like the name of the name of the owner, the name of the person in charge of oil spill response and elementary vessel information, as required by sec.19.61(c)(2)(b), enhances the ability of the State of Texas to initiate rapid spill response. Based on these comments and others, the GLO is changing sec.19.61(c)(2)(B)(iv) to delete the requirement that IMO vessel owners and operators submit the names of discharge response contractors to the GLO. Instead, the IMO vessel owners and operators will be required only to have such information on board. One commenter asked whether the vessel owners and operators will have to advise the GLO, in addition to advising the USCG, of vessel movements in Texas and suggested that one notification be sufficient. The GLO is not requiring vessels to report on their movements in Texas. The GLO will coordinate with the USCG when it deems such information necessary. No change was made based upon this comment. Section 19.60 One commenter recommended substituting the phrase "authorized organization" for the words "approved class society." The GLO has changed sec.19.60(a)(4) in accordance with this useful suggestion. One commenter recommended reversing paragraphs (1) and (2) of sec.19.60(a) to clarify that they are separate paragraphs. The GLO has changed sec.19.60(a) to make this clarification and others. One commenter recommended amending sec.19.60(a)(2) to allow any officer of the corporation which owns or operates the vessel to sign the submission of information to the GLO. The GLO, in accord with the federal regulations and with OSPRA regulations related to facilities, is retaining this requirement. The GLO is requiring the signature of at least a corporate vice-president because the responsibility for complying with oil spill prevention and response should be acknowledged at a relatively high level of the corporate organization. Section 19.61 One commenter stated that the proposal in sec.19.61(a), that vessels subject to OPA submit enumerated portions of their response plan to the GLO, is duplicative because the USCG is already reviewing and approving the OPA plans and because vessel owners and operators must comply with OPA response plan requirements to operate in U.S. waters. Further, this commenter stated there is no need for the State to re-review such plans and second-guess the USCG approval. This requirement was not new in the proposed rule. The GLO has been requiring proof of compliance with OPA for over a year, under concurrently repealed sec.19.17 of this chapter, and does not believe the requirement is burdensome. The GLO does not re-review OPA plans; the purpose of the requirement is to ensure that the GLO has basic vessel information and that the vessel is approved by the USCG under OPA. OSPRA specifically requires the GLO to accept federally approved plans in lieu of separate OSPRA plans and nothing in the proposed rule adds requirements nor allows the GLO to second-guess the USCG. No change was made in response to this comment. One commenter stated that the sec.19.61(a) requirement for submission of copies of USCG letters of approval, deficiencies and conditional approval to the GLO is duplicative and burdensome and of no quantifiable benefit to the state. The commenter suggested that the GLO simply consult with the USCG to ensure that a vessel entering Texas waters has a valid, approved response plan or that the GLO seek access to the USCG database. This requirement was not new in the proposed rule. The GLO is unable to access the USCG database for reasons described previously in this preamble. The GLO requires the USCG letters of approval, instead of a complete copy of the plan, to be sure that every vessel entering Texas waters has an approved response plan. The receipt of notices of deficiencies and conditional approvals gives the GLO notice of potential problems or weaknesses in response capability which allow better planning and more appropriate response in the event of an oil spill. No change was made to the rule based upon this comment. One commenter suggested that, instead of the requirements in sec.19.61(a)(2), the GLO allow owners and operators to supply a letter providing the name, address and phone number of the owner/operator, the qualified individual and also a copy of the USCG approval letter and a testimonial that required resources have been provided by contract or other approved means. Section 19. 61(a)(2) was not changed in the rule; these requirements have been in effect for over one year under concurrently repealed sec.19.17 of this chapter; the GLO experience during this time has been that ready access to the information required by sec.19.61(a)(2) has enhanced the State's ability to mobilize appropriate spill response resources. One commenter suggested that the GLO has underestimated the record-keeping requirements of these proposed rules and should instead require only changes related to the qualified individual, the ships named in the plan and changes in geographic specific appendices. The notification of changes in the OPA response plan is required by federal regulations and the GLO is merely requesting a copy of information submitted to the federal government. Making an extra copy and mailing it to the GLO does not significantly increase record-keeping requirements. No changes were made in response to this comment. One commenter requested an amendment to sec.19.61(c)(2) to allow an owner or operator to submit a copy of the Shipboard Oil Pollution Emergency Plan instead of the information requested in the proposed rule. The GLO is not requiring submission of the entire IMO plan for several reasons. First, the GLO does not perceive a need for the entire plan, when only certain information will fulfill the State's responsibility to respond quickly and appropriately. Second, the GLO does not want to incur the cost of translating foreign language plans and therefore is requiring the submission of specified information in English. Finally, the GLO intends to rely on the relationships between vessel owners and operators and their U.S.-based agents to secure additional information in the event of an oil spill. No change was made as a result of this comment. One commenter stated that sec.19.61(c)(2)(A) be amended to provide for approval by the vessel's flag state. Section 19.61(c)(2)(a) does allow for approval by a vessel's flag state or by a class society. However, the language is being changed to conform to a change in sec.19.60.(a)(4) by substituting the phrase "authorized organization" for "approved class society." One commenter stated that reporting requirements in sec.19.61(c)(2)(B) exceeded federal requirements, that the proposed rule will create a substantial administrative burden on the GLO, and that the GLO should regulate vessels for which there are not other regulations instead of those adequately covered by federal law. The same commenter also objected to the requirement that the information be submitted on a specified form. Section 19.61(c)(2)(B) (iv) is changed to require only that discharge response organization information be maintained on board the IMO vessel, instead of being submitted to the GLO. The GLO is requiring the information needed to respond adequately and appropriately to an oil spill. Finally, the GLO requires a specific form to minimize its administrative burden; submission of information on a specific form makes the information more accessible, reduces the person hours required to store and retrieve the information, and ensures consistency. One commenter noted sec.19.61(c)(2)(B) is duplicative because many OPA vessels are also IMO vessels and such vessels should only be required to submit the OPA plan. Section 19.60 and sec.19.61 are changed to clarify that a vessel subject to OPA is not required to submit any information except that required by sec.19.61(a). This was the intent of the proposed rule, and the GLO apologizes for a lack of clarity that led to this and many similar comments and questions. One commenter noted that the sec.19.61(c)(2)(B)(i) requirements contain unnecessary requests and that the GLO should utilize the USCG Port State Information Exchange. The GLO does not consider the USCG Port State Information Exchange data sufficient to meet the requirements of OSPRA. No change was made in response to this comment. One commenter noted that sec.19.61(c)(2)(B)(i) does not request the IMO number, but that the specified form does request the number. Similarly the commenter noted that the form asks for "tanks designed to carry oil," while the text asks for tanks "which carry oil" and that such a request is above the requirements of Regulation 26. The proposed form and sec.19.61(c)(B) have been changed for consistency. One commenter noted that the reference to Regulation 26 in sec.19.61(c)(2)(B) (iii)(I) and (II) are incorrect and appear to have been based on an early draft of Regulation 26 guidelines. The reference used by the GLO is the document adopted by the Marine Environment Protection Committee of the International Maritime Organization at its 31st Session on April 10, 1992, which became effective on April 4, 1993. The GLO is unaware of any other IMO reference documents and the commenter did not cite any. There is no change based on this comment. Three commenters noted that Regulation 26 does not require the designation of a person in charge or of a preparedness manager, and thus proposed sec.19. 61(c)(2)(B)(iii)(I) requires a vessel owner or operator to redraft his Regulation 26 plan. While it is true that Regulation 26 does not require the designation of a person in charge or of a preparedness manager, the Regulation does require a procedure for a person in charge of the ship to report an oil pollution incident, to describe the action to be taken immediately by persons on board and the procedures and point of contact on the ship for coordinating shipboard activities with local authorities. Thus, Regulation 26 requires that some person be responsible for these actions. The GLO, in requiring vessel owners and operators to submit the name of the person, is not imposing a requirement that necessitates a re-write of an IMO plan. The placement of a person's name on a GLO-provided form does not appear unduly burdensome, especially when measured against the enhanced ability of the State to communicate effectively with the appropriate person responsible for the vessel's spill response and preparedness. Vessels may comply with this requirement by simply naming the vessel master as the person required to fulfill these roles. No change was made in response to this comment. Two commenter stated that Regulation 26 does not require someone on board with independent authority to deploy resources and that such authority implicitly belongs to the master of the vessel. One of these commenters also suggested that the on-scene coordinator simply use public funds from the Oil Spill Liability Trust Fund or from the Coastal Protection Fund for cleanup and removal if the vessel fails to respond. The GLO will accept the designation of the master of the vessel as the person responsible for spill response and for preparedness training. The Coastal Protection Fund acts as a safety net to ensure that state spill response will be adequate when owners and operators fail to undertake their legal responsibility to respond to an oil spill. The GLO does utilize the Coastal Protection Fund to respond when a vessel fails to do so; however, the fact that this ability exists should not be an excuse for regulated vessels to ignore legal requirements or to dismiss the importance of an effective, usable oil spill prevention and response plan. OSPRA and OPA both require the responsible person (i.e. the vessel owner or operator) to respond to an oil spill and to prepare for its response in a viable contingency plan, such as the one required by the IMO rules. No change was made in response to this comment. One commenter recommended that the term "person in charge" not be used because it is already used in federal regulations and that the GLO proposed rules will create confusion between GLO's use of the term and the federal government's use of the term. The GLO has changed sec.19.61(c)(2)(B)(iii)(I) to amend the term for the person responsible for and in control of the vessel's spill response to "authorized person," to avoid confusion with federal terminology. One commenter recommended that the GLO accept the USCG letters of approval instead of requiring owners and operators to submit the federal vessel response plan and the Regulation 26 plan. Section 19.61(a) requires vessels subject to OPA to submit only the information required in that section. Such vessels are not required to submit any Regulation 26 information to the GLO. Section 19.60 and sec.19.61 have been changed to clarify the relationship between requirements for OPA and IMO vessels. One commenter recommended that the State of Texas require identification of an authorized person/response manager to recognize, consistent with Regulation 26 guidelines, that the master should focus on the safety of the vessel and crew and the spill response should be managed by a shore based authorized person/response manager. The GLO agrees with the suggestion of this commenter, but declines to require that any specific type of person be designated as the authorized person. Instead, the GLO will rely on the best judgement of the vessel owner or operator to determine who should be responsible for vessel spill response. No change was made as a result of this comment. One commenter noted that the requirement in sec.19.61(c)(2)(B)(iv) that a vessel owner or operator submit the name of two discharge cleanup organizations without having to establish a relationship with the discharge cleanup organizations is a meaningless exercise. The GLO has changed sec.19. 61(c)(2)(B)(iv) to require only that such information be available on board. This requirement is intended to enhance speedy response by having some information on board about response capability available to the vessel. One commenter stated that the requirement in sec.19.61(c)(2)(b) that purely IMO vessels identify oil spill responders is inappropriate because Regulation 26 does not contain any such requirement. Section sec.19.61(c)(2)(B)(iv) has been changed to require only that such information be available on board. This requirement is intended to enhance speedy response by having some information on board about response capability available to the vessel. One commenter recommended requiring vessel agents to provide a list of oil spill response organizations to vessels. The GLO agrees that the vessel agents could play a useful role in spill response by providing information to vessels in port. However, OSPRA's jurisdiction does not extend to vessel agents, and therefore the GLO cannot impose any requirements on vessel agents. No change was made in response to this comment. Two commenters stated that requiring updating of vessel information within 24 hours, as required by sec.19.61(c)(2)(D), would create an administrative burden for vessel owners and operators and for the GLO and that vessels not entering Texas waters should not have to report within 24 hours. Section 19. 61(c)(2)(D) is changed to require vessels entering Texas waters to report changes as soon as possible and to allow vessels not entering Texas waters to report changes within 30 days. One commenter stated that since the federal vessel response plans and the Regulation 26 plans are formatted for use by the vessel owner/operator, the vessel owner/operator can supply the State with the latest version of the plan if a spill incident occurs. The initial stages of a spill incident, like any emergency response, can be confusing until an incident command system is established. The difficulties inherent in emergency response to oil spills, which often involves both the federal and the state government, would be exacerbated if a current vessel plan was not available to government spill responders. The GLO is adopting these requirements because adequate response planning includes immediate access to relevant information. One expects vessel owners and operators to be busily engaged in spill response when a spill occurs instead of spending time copying a plan for the GLO. No change was made in response to this comment. Section 19.63 One commenter recommended changing "may be" to "shall be" in sec.19.63(b). This proposed language was chosen specifically to notify regulated vessels that the GLO does not intend to routinely board vessels or require notification from vessels entering Texas waters. Section 19.63(b) provides notice that the GLO may exercise the option to make such request. The GLO will continue to rely on the USCG as the agency primarily responsible for vessel entry into port. The GLO and the USCG will coordinate any vessel boarding or requests for routine information. No change was made based on this comment. One commenter suggested that sec.19.63(b)(2) be amended to make only certain types of equipment subject to the reporting standard. The language in sec.19. 63(b)(2) is taken directly from OSPRA. The GLO has not and does not presently intend to specify which types of equipment problems may be subject to an information request from the GLO. The purpose of this section is to provide notice to vessel owners and operators that the GLO may request information about operational or mechanical failures. No change was made based on this comment. One commenter recommended using the language of 33 Code of Federal Regulations, sec.155.1050, for identifying the types of equipment which a vessel owner or operator must have available to respond to a spill. The same commenter also recommended adding language from the same section related to firefighting responsibility. The GLO does not presently intend to require the presence or use of any particular spill response equipment on board vessels entering Texas coastal waters. No change was made based on this comment. Comments on the proposed new rules were received from: Allied Towing Corporation; Amoco Petroleum Products; Brownsville-Port Isabel Shrimp Producers Association; International Association of Drilling Contractors; International Chamber of Shipping; INTERTANKO; Jo Tankers B.V.; La Quinta Marine Services, Inc.; Marispond, Inc.; Maritime Bureau, Inc.; Maritrans; Seagroup; Sealand Service, Inc.; SeaRiver Maritime, Inc.; Transportation Institute; United States Coast Guard, Marine Safety Office, Corpus Christi; and West Gulf Maritime Association. The new sections are adopted pursuant to Texas Natural Resources Code, sec.40.007 and sec.40.117, which authorize the commissioner of the GLO to promulgate rules necessary and convenient to the administration of OSPRA and rules regarding standards and requirements for discharge prevention and response capabilities of vessels. sec.19.60. Definitions and Correspondence for Vessels. (a) The following words, terms and phrases, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. All other terms are defined in sec.19.2 of this title (relating to Definitions). (1) MARPOL 73/78-The International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978, as amended. (2) Annex I of MARPOL-Regulations for the Prevention of Pollution by Oil. (3) Oil Tanker-A vessel constructed or adapted primarily to carry oil in bulk in its cargo spaces and includes combination carriers and any "chemical tanker" as defined in Annex II of MARPOL 73/78 when it is carrying a cargo or part cargo of oil in bulk. (4) Regulation 26 of Annex I of MARPOL-The regulation adopted in July of 1991 by the Marine Environment Protection Committee of the International Maritime Organization (IMO), requiring every oil tanker of 150 gross tons and above and every other vessel of 400 gross tons and above to carry on board a shipboard oil pollution emergency plan approved by its flag state, or authorized organization. (5) Vessel. (A) OPA vessel-Every description of watercraft or other means of artificial contrivance used, or capable of being used, as a means of transportation on water, other than a public vessel as defined by OPA, required to submit to the United States Coast Guard a tank vessel response plan pursuant to sec.311(j)(5) of the Federal Water Pollution Control Act, as amended by OPA, 33 United States Code, sec.1321(j)(5) and sec.2716. Vessels subject to OPA, 33 United States Code, sec.2701 et seq, and the Federal Water Pollution Control Act (Clean Water Act), 33 United States Code, sec.1251 et seq, as amended by OPA, and operating in coastal waters of the State of Texas that are subject to OPA must have response plans pursuant to 33 United States Code, sec.1321(j)(5) and sec.2716, whenever required by federal law. Submission of the OPA plan, pursuant to sec.19.61(a) constitutes compliance with OSPRA. (B) IMO vessel-An oil tanker of 150 gross tons and above and any other vessel of 400 gross tons and above required to have a shipboard oil pollution emergency plan pursuant to Regulation 26 of Annex I of MARPOL 73/78. A vessel which has submitted an OPA plan is not required to also submit an IMO plan. (C) OSPRA vessel-Every description of watercraft or other contrivance used or capable of being used as a means of transportation on water, whether self- propelled or otherwise, including barges, and with a capacity to carry 10,000 gallons or more of oil as fuel or cargo that operates in coastal waters and not required to have a response plan under either OPA or IMO. Requirements for response plans for OSPRA vessels are under development. (b) All information and correspondence, including requests for forms, relating to this subchapter and vessel compliance with OSPRA shall be submitted to: Texas General Land Office, Oil Spill Prevention and Response Division, 1700 North Congress Avenue, Austin, Texas 78701-1495. sec.19.61. Response Plans. (a) OPA vessels. (1) Vessels subject to OPA, 33 United States Code, sec.sec.2701 et seq and the Federal Water Pollution Control Act (Clean Water Act), 33 United States Code, sec.1251 et seq as amended by OPA. Vessels operating in coastal waters of the State of Texas that are subject to OPA must have response plans pursuant to 33 United States Code, sec.1321(j)(5) and sec.2716, as required by federal law. (2) OPA Vessels must submit vessel response plans to the GLO. All owners and operators of OPA vessels that intend to enter the coastal waters of the State of Texas must submit the following English language version sections of their plan or, if they choose, the entire plan to the GLO. The sections must be accompanied by a letter from the person who signed the vessel response plan that was submitted to the United States Coast Guard and the letter must verify that the submissions to the GLO are identical to those submitted to the United States Coast Guard. Compliance with this section constitutes compliance with OSPRA; an OPA vessel is not required to submit any other response plan. The following sections must be submitted: (A) general information and introduction; (B) notification procedures; (C) list of contacts; (D) geographic-specific appendix for each captain of the port (COTP) zone in Texas in which the vessel intends to operate; (E) vessel-specific appendix for each vessel which intends to enter coastal waters of the State of Texas covered by the plan; and (F) shore-based response activities. (3) Submission of United States Coast Guard letter of acknowledgment or deficiency. Vessel owners and operators are required to forward to the GLO copies of all correspondence between the United States Coast Guard and the vessel owner or operator relating to the receipt, acceptance, deficiency, corrections of deficiencies and notification of changes in the vessel response plan submitted pursuant to OPA, sec.2716. (b) OSPRA vessels are those vessels capable of carrying oil as fuel or cargo in excess of 10,000 United States gallons. OSPRA vessels will be required to meet the vessel response plan requirements of the Texas Natural Resources Code, sec.40.114, when rules are adopted thereunder. (c) IMO Vessels. (1) Compliance with Regulation 26 of Annex I of MARPOL. IMO vessels that enter Texas coastal waters must have on board a shipboard oil pollution emergency plan pursuant to Regulation 26 of Annex I of MARPOL 73/78. The IMO vessel must be operating in compliance with the approved plan to gain entry into a Texas port, pursuant to sec.19.63 of this title (relating to Entry Into Port). Vessels subject to OPA and to IMO are only required to submit their OPA plan to the GLO. (2) Submission of Information to GLO. The plan prepared pursuant to Regulation 26 of Annex I of MARPOL is not required to be submitted to the GLO. Every owner, operator or manager of an IMO vessel that intends to traverse Texas coastal waters shall submit to the GLO, 60 days after this rule becomes final: (A) a copy of its flag state or authorized organization approval of the IMO Regulation 26 Shipboard oil pollution emergency plan; and (B) IMO Vessel Form. Every owner, operator or manager of an IMO vessel that intends to traverse Texas coastal waters shall submit to the GLO the information listed in this subsection. This information is required by Regulation 26, sec.2.5.4. The information must be submitted on IMO Vessel Form: Figure 1: 31 TAC 19.61(c)(2)(B). (i) Vessel Information. The registered name, flag state, port of registry of the vessel, international call sign, official number and issuer of the number, IMO number, gross tonnage, overall length, breadth and summer draught. Any previous registered names of the vessel shall also be provided and if the vessel has not previously been registered under another name, such fact shall be affirmatively stated. The owner, operator or manager of an IMO vessel shall also submit a general arrangement plan showing the location and tank capacities for those tanks which carry oil. (ii) Notification Information. The name, address, telephone number, and facsimile number of the owner, operator and manager of the vessel. The telephone number provided shall be a 24-hour contact number for the person named as owner, operator and manager. (iii) Vessel Personnel Information. Every owner, operator or manager of an IMO vessel that intends to traverse Texas coastal waters shall designate a: (I) Authorized Person: who is responsible for and in control of all oil spill response operations on behalf of the vessel. This person must be available 24 hours a day to ensure prompt response to oil spills in Texas coastal waters. This person need not be on board the vessel but must have independent authority to deploy response equipment and to expend funds necessary for response actions. This information is required pursuant to Regulation 26, sec.2.2.4. Further responsibilities of the person in charge are delineated at sec.19.16 of this title (relating to Person in Charge). (II) Preparedness Manager: who is responsible for ensuring that personnel aboard an IMO vessel are properly trained in mitigation and control of an unauthorized discharge of oil. This information is required pursuant to Regulation 26, sec.2.5.1. (iv) Vessel Response Organization. Every owner, operator or manager of an IMO vessel that intends to traverse Texas coastal waters shall maintain on board the name and telephone numbers of two oil spill response organizations identified as capable of providing a timely response to an unauthorized discharge of oil from the vessel, at her intended port of call and at any portion of the route of said vessel to and from the port of call. (D) Changes in IMO Vessel Form. Any change in any information required pursuant to this section shall be submitted to the GLO as soon as possible when the vessel is entering Texas waters. Vessels not entering Texas waters shall report such changes to the GLO within 30 days of the change. (E) DCO List. The GLO shall provide, upon request, a list of DCOs certified in Texas. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 25, 1995. TRD-9513719 Garry Mauro Commissioner General Land Office Effective date: November 14, 1995 Proposal publication date: May 9, 1995 For further information, please call: (512) 305-9129 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part IV. Texas Commission for the Blind Chapter 171. Cooperative Activities 40 TAC sec.171.3 The Texas Commission for the Blind adopts an amendment to sec.171.3, concerning memoranda of understanding between agencies without changes to the proposed text as published in the September 19, 1995, issue of the Texas Register (20 TexReg 7471). The rule functions as the agreement between the Texas Department of Human Services, the Texas Interagency Council on Early Childhood Intervention, the Texas Department of Health, the Texas Department of Mental Health and Mental Retardation, the Texas Commission for the Blind, the Texas Department of Protective and Regulatory Services, the Texas Education Agency, the Texas Juvenile Probation Commission, the Texas Rehabilitation Commission, and the Texas Youth Commission in delivering coordinated services to children and youths with multi-agency needs. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs, and which authorizes the agency to negotiate interagency agreements with other state agencies to extend and improve the regular services provided by the agencies. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 23, 1995. TRD-9513603 Pat D. Westbrook Executive Director Texas Commission for the Blind Effective date: November 13, 1995 Proposal publication date: September 19, 1995 For further information, please call: (512) 459-2611 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 notices of actions taken by the Department of Insurance pursuant to Chapter 5, Subchapter L, of the Code. Board action taken under these articles is not subject to the Administrative Procedure Act. These actions become effective 15 days after the date of publication or on a later specified date. The text of the material being adopted will not be published, but may be examined in the offices of the Department of Insurance, 333 Guadalupe, Austin.) The Commissioner of Insurance, at a public hearing under Docket Number 2174 held at 9:00 a.m., October 19, 1995, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by staff to the Texas Automobile Rules and Rating Manual (the Manual), Rule 74, to implement the optional Academic Achievement Discount set forth in the Insurance Code, Article 5.03-3, adopted by the 74th Legislature in Senate Bill 553. Staff's petition (Reference Number A-0895-26-I) was published in the September 15, 1995, issue of the Texas Register (20 TexReg 7274). The Insurance Code, Article 5.03-3 provides that an insurer may grant a discount for certain automobile insurance premiums for academic achievement if necessary qualifications are met. Article 5.03-3 provides that the "commissioner by rule shall set the amount of the discounts applicable under this article...". Manual Rule 74 is amended by adding a new section I as shown in the exhibit attached to staff's petition, as amended. The amount of the discount will be determined in "Private Passenger and Commercial Auto Benchmark Rates," Docket Number 454-95-1218.G. The amendments as adopted by the Commissioner of Insurance are shown in an exhibit on file with the Chief Clerk under Reference Number A-0895-26-I, which is incorporated by reference into Commissioner's Order Number 95-1107. The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.03-3, 5.10, 5.96, 5.98, and 5.101. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act). Consistent with the Insurance Code, Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action. IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual is amended as described herein, and the amendments are adopted effective January 1, 1996. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 16, 1995. TRD-9513756 Alicia M. Fechtel General Counsel and Chief Clerk Texas Department of Insurance Effective date: January 1, 1996 For further information, please call: (512) 463-6327 The Commissioner of Insurance, at a public hearing under Docket Number 2175 held at 9:00 a.m., October 19, 1995, in Room 100 of the Texas Department of Insurance Building, 333 Guadalupe Street in Austin, Texas, adopted amendments proposed by staff to the Texas Automobile Rules and Rating Manual (the Manual), Rule 135, and to adopt Endorsement 4R Mobilowners Policy-Exclusion of Windstorm, Hurricane, Hail and Flood, and Endorsement TE 20 17, Mobile Homes-Exclusion of Windstorm, Hurricane, Hail and Flood. Staff's petition (Reference Number A-0895- 25-I) was published in the September 15, 1995, issue of the Texas Register (20 TexReg 7273). To increase incentive for insurers to continue writing coverage for mobile homes in coastal areas, Mobilowners Endorsement 4R is adopted for the Manual. This endorsement will exclude from the Mobilowners Policy the perils of windstorm, hurricane, hail and flood, thereby making the policyholders eligible for other insurance policies. One of such policies will be that offered through the Texas Catastrophe Property Insurance Association (Catpool), and the other will be a flood insurance policy from the federal government (Federal Emergency Management Agency/National Flood Insurance Program). Endorsement TE 20 17 is also adopted, which will have the same effect as Endorsement 4R, but will be used for mobile homes covered under the Business Auto, Garage, or Truckers Coverage Form. Manual Rule 135 "Mobile Homes" is amended to refer to the new endorsements. These amendments consist of adding a new paragraph 10 to Section I.C., renumbering existing paragraph 10 as paragraph 11, and adding a new subsection J to Section II of Rule 135. An editorial correction of the wording of the note following Manual Rule 135, Section II.D. is also adopted. The current wording "...with respects the personal effects..." will be changed to "...for the personal effects...". The proposed endorsements provide that they are being issued for reduced policy premiums, and the amendments to Rule 135 refer to Rate Section VII regarding premium adjustments, although the wording for Rate Section VII has not yet been developed. The amounts of the credits to be given by rate-regulated companies need to be determined at a rate hearing conducted under the Insurance Code, Article 5.101. Therefore, the effective date for the new endorsements and for the amendments to Rule 135 will be: (1) for companies subject to Article 5.101, the effective date of the relevant rates and credits adopted in "Private Passenger and Commercial Auto Benchmark Rates," Docket Number 454-95-1218.G; and (2) for county mutual insurance companies subject to the Insurance Code, Chapter 17, November 15, 1995, subject to the insurer filing with the Department rates and credits for the new endorsements, or a date later than November 15th if so specified by the county mutual insurer. The amendments as adopted by the Commissioner of Insurance are shown in exhibits on file with the Chief Clerk under Reference Number A-0895-25-I, which are incorporated by reference into Commissioner's Order Number 95-1108. The Commissioner of Insurance has jurisdiction over this matter pursuant to the Insurance Code, Articles 5.06, 5.10, 5.96, and 5.98. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Government Code, Chapter 2001 (Administrative Procedure Act). Consistent with the Insurance Code, Article 5.96(h), the Department will notify all insurers writing automobile insurance of this adoption by letter summarizing the Commissioner's action. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on October 16, 1995. TRD-9513755 Alicia M. Fechtel General Counsel and Chief Clerk Texas Department of Insurance Effective date: November 15, 1995 For further information, please call: (512) 463-6327