PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 16. ECONOMIC REGULATION Part IX. Texas Lottery Commission Chapter 402. Bingo Regulation and Tax 16 TAC sec.402.541 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Lottery Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Lottery Commission proposes the repeal of sec.402.541, concerning notification to the Commission because this rule expired by operation of law on April 1, 1995 and the Commission is now proposing new sec.402.541, concerning definitions. Richard Sookiasian, Budget Analyst, has determined that for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Sookiasian, also has determined that for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who hold or seek licenses under the Bingo Enabling Act. Comments on the proposed repeal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The repeal is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, s467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this action. sec.402.541. Notification to the Commission. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600527 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.541 The Texas Lottery Commission proposes new sec.402.541, relating to definitions. The rule sets out concise definitions of words contained, but not otherwise explained, in the Bingo Enabling Act. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear guidance to persons who hold or seek licenses under the Bingo Enabling Act. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.541. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Bingo premises -The area subject to the direct control of, and actual use by, a licensed authorized organization for the purpose of conducting a game of bingo. Break-open bingo ticket-An instant bingo card commonly known as an instant bingo ticket, pull-tab bingo game or instant bingo card as defined by 16 TAC sec.402.554 (relating to instant bingo). Calendar week-A period of seven consecutive days commencing with Sunday and ending with Saturday. Calendar year-A period of 12 consecutive months commencing with January 1 and ending with December 31. Conductor-A licensed authorized organization. Card-minding device -Any mechanical, electronic, electromechanical or computerized device, and including related hardware and software, that is interfaced with or connected to equipment used to conduct a game of bingo and which allows a player to store, display, and mark a bingo card face five spaces wide by five spaces long, the center space free, and the other spaces containing pre-printed numbers between 1 and 75, inclusive. Commission-The Texas Lottery Commission, the agency created by House Bill 54, 72nd Legislature, First called session, as amended by House Bill 1587 and House Bill 1013, 73rd Legislature, Regular Session. Director-The director of the charitable bingo operations division, commonly known as the bingo division, of the Texas Lottery Commission. Executive Director -The Executive Director of the Texas Lottery Commission. Instant bingo ticket-An instant bingo card commonly known as a break-open bingo ticket, a pull-tab bingo game or an instant bingo card as defined by 16 TAC sec.402.554 (relating to instant bingo). Instant bingo card-An instant bingo ticket, pull-tab bingo game, break-open bingo ticket or instant bingo card as defined by 16 TAC sec.402.554 (relating to instant bingo). Location-The area subject to the direct control of, and actual use by, a licensed authorized organization for the purpose of conducting a game of bingo. Operator-A natural person designated pursuant to authority of the Bingo enabling Act, sec.12(a)(7), Texas Civil Statutes, Article 179d. Place-The area subject to the direct control of, and actual use by, a licensed authorized organization for the purpose of conducting a game of bingo. Primary business office-The physical location at which all records relating to the primary purpose(s) of a licensed authorized organization are maintained in the ordinary course of business. Pull-tab bingo game-An instant bingo card commonly known as a break-open bingo ticket, an instant bingo ticket or an instant bingo card as defined by 16 TAC sec.402.554 (relating to instant bingo). 24-hour period -A period of 24 consecutive hours commencing at 12:00 midnight. Working day-Other than a Saturday, Sunday or holiday authorized by law, a period of nine consecutive hours commencing at 8:00 a.m. and ending at 5:00 p.m. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600402 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.545 The Texas Lottery Commission proposes an amendment to sec.402.545, relating to licenses, fees and bonds for conduct of bingo occasions and for commercial lessor. The proposed amendment clarifies statutory requirements for bingo conductors and commercial lessors. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear guidance to persons who hold or seek licenses under the Bingo Enabling Act. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The amendment is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), which authorize the Texas Lottery Commission to adopt rules for the enforcement and administration of the Bingo Enabling Act and Texas Government Code, sec.467.102, which authorizes the Texas Lottery Commission to adopt rules for the enforcement and administration of Texas Government Code, Chapter 467 and the laws under the Commission's jurisdiction. Texas Civil Statutes, Article 179d is affected by this amendment. sec.402.545. Licenses, Fees and Bonds for Conduct of Bingo Occasions and for Commercial Lessor. (a) Annual license to conduct bingo occasions
    [games]. (1) Application. An organization that intends
      [which desires] to conduct bingo on a regular basis shall
        [must] apply to the commission
          [Texas Lottery Commission (commission)] for an annual license to conduct bingo occasions
            . The application must be made on a form prescribed
              [prepared] by the commission and [must contain] all the information required must be correct and complete
                [by that form]. (2) Fee. An application for an annual
                  [a] license to conduct bingo occasions
                    must be accompanied by a license fee in accordance with the Bingo Enabling Act, Texas Revised
                      Civil Statutes, Article 179d, sec.13. (3) License. (A) An annual
                        [A] license to conduct bingo occasions
                          expires one [calendar] year from the date of issuance. (B) A conductor
                            [An organization] may hold only one annual license to conduct bingo occasions,
                              and that license is valid for only that specific
                                [the one] location[, as that term is defined in s402.544 of this title (relating to Definitions),] indicated on the face of its license. A group may not conduct bingo more than three times per calendar week and not more than four hours per 24-hour period. (C) A conductor
                                  [An organization] holding an annual license [to conduct bingo] may receive a temporary license under subsection (c) of this section. (D) An organization must conduct regular bingo to be eligible to sell pull tabs, instant tickets or break open bingo tickets
                                    [See exceptions to license requirements in s402.546 of this title (relating to Exemptions from License Requirements)]. (4) Bond or other security. Each application for an annual license to conduct bingo occasions
                                      must be accompanied by a bond or other security equal to the applicant's estimated quarterly tax liability. If the amount is estimated to be less than $1,900, no bond or other security will be required, unless the commission determines a bond or other security is necessary based on the applicant's history at recordkeeping, reporting, and payment of tax. No new bond will be required upon renewal if the licensee would be eligible to have an existing bond released under subparagraph (D) of this paragraph. If a bond or other form of security is required, no license will be issued until such bond or other security has been posted. (A)-(C) (No change.) (D) Release. If the licensee ceases to conduct bingo occasions
                                        [games] and relinquishes its license or if the license is revoked by the commission for any reason, the commission will release any bond or security on its determination that no amounts of tax, penalty, or interest remain due and payable under the Act. If the licensee has filed all required returns, has no outstanding amounts of tax, penalty, or interest due and payable under the Act, and has completed seven consecutive quarters without a deficiency determination becoming final, the bond or security will be released at the time the licensee next renews its license. (E)-(F) (No change.) (5) Application to conduct bingo occasions
                                          at premises of a commercial lessor. An organization applying to conduct bingo occasions
                                            at premises other than those used by it for its general activities shall submit with its application a certified copy of the minutes of the governing board of the local unit of the applicant voting to conduct bingo occasions
                                              at a location other than the premises used by the organization for its general activities. If the articles of incorporation, by laws, or other organizing instrument of the applicant requires approval by one or more of the state, national, or other higher governing bodies of the organization for the local unit to conduct any of its activities at a separate location, then the applicant shall also submit certified copies of the required approval by those governing bodies. (b) Commercial license to lease bingo premises. (1) Application. Any commercial lessor who intends
                                                [desires] to lease premises[, as the terms is defined in sec.402.544 of this title (relating to Definitions), in a legalized area in Texas] to a licensed authorized
                                                  organization for the purpose of conducting bingo occasions
                                                    must apply to the commission for a commercial lessor's license. The application must be made on a form prescribed
                                                      [prepared] by the commission and [must contain] all information required must be correct and complete
                                                        [by that form]. (2) (No change.) (3) License. (A) A license to lease bingo premises expires one [calendar] year from the date of issuance. (B) Each location to be leased as a bingo premises
                                                          [, as that term is defined in sec.402.544 of this title (relating to Definitions),] must be separately licensed pursuant to separate applications
                                                            [A commercial lessor, however, may lease the same location under the same license to more than one licensed organization. A commercial lessor who wants to lease more than one location must file a separate application and pay a separate fee for each location]. (C) Except as required by the Bingo Enabling Act, Texas Civil Statutes, Article 179d, sec.13(n)(1) and (2), the commission may not issue more than one license to lease bingo premises for any one location[, as that term is defined in sec.402.544 of this title (relating to Definitions)]. (D) (No change.) (E) In order to determine eligibility for purposes of the Bingo Enabling Act, Texas Civil Statutes, Article 179d, sec.13(q), the commission shall conduct a complete background investigation of each employee, owner, officer and director of, each person active in, and each person with a substantial interest in, any corporation that holds a license under the provisions of the Bingo Enabling Act, Texas Civil Statutes, Article 179d, sec.13(j). (4) Bond or other security. Each application for an annual license to lease bingo premises must be accompanied by a bond or other security equal to the applicant's estimated quarterly tax liability. If the quarterly tax liability is estimated to be less than $100, no bond or other security may be required unless the director determines that a bond or other security is necessary to ensure payment.
                                                              No new bond will be required upon renewal if the licensee would be eligible to have an existing bond released under subparagraph (D) of this paragraph. If a bond or other form of security is required, no license will be issued until such bond or other security has been posted. (A)-(E) (No change.) (c) Temporary license to conduct bingo occasions
                                                                [games]. (1) Any authorized
                                                                  organization not holding an annual license to conduct bingo that intends
                                                                    [which desires] to conduct bingo occasions
                                                                      [on a limited basis] must apply to the commission for a temporary license. The application must contain the same information and be made on the same form used by applicants for an annual license. The complete application with required attachments should be filed with the commission at least 30 days in advance of the first bingo occasion
                                                                        [game] that will be played under the temporary license. An organization holding an annual license to conduct bingo shall apply no less than seven working days in advance of the proposed occasion
                                                                          [game], provided that the only proposed change is the date, time and/or location. (2) Fee. An application for a temporary license to conduct bingo occasions
                                                                            must be accompanied by a $25 license fee. A conductor intending to obtain a temporary license shall pay the $25 license fee from the conductor's bingo bank account. (3) License. A temporary license is valid for no more than four consecutive hours during any 24-hour period.
                                                                              [only one day. No more than six temporary licenses may be issued in a calendar year to the same organization.] [(d) Temporary authorization. After preliminary approval of the applicant for a license, the commission may issue a temporary authorization for an initial period not to exceed 60 days. The commission may extend the period of a temporary authorization for good cause. If the application is approved during the period of the temporary authorization, the temporary authorization will be replaced by the issuance of an annual license which will expire one year from the date of issuance of the temporary authorization.] (d)
                                                                                [(e)] License to operate. Each applicant for a license to operate bingo occasions
                                                                                  [games] must demonstrate that it is organized and operated primarily for purposes other than the operation of bingo activities. (e)
                                                                                    [(f)] Payment of fees. The proper license fee must accompany each application. License fees will not be prorated. The fee and any cash bond must be in the form of cash, cashier's check, money order, or check made payable to the state treasurer. After the filing of the application, fee, and any required bond, the commission will promptly investigate the qualifications of the applicant and either: (1) notify the applicant in writing if additional information is required before a license can be granted; (2) notify the applicant in writing why a license is being denied and refund any license fee payment and bond; or (3) issue a temporary authorization or license authorizing the applicant to conduct bingo at the times and place applied for or to lease premises for the conduct of bingo. [(g) Notification of election results. No license will be issued until the commission receives from the appropriate governing body written notification of the date and results of a legalization election along with a map of the boundaries in which games may be held. [(h) Copies of the application. No license or amended license will be issued before a copy of each original application or application for amendment is sent by the applicant to the appropriate governing body of the area in which the games are to be held. [(i) Copies of licenses. Upon receipt of any license or amended license issued by the commission, the licensee must immediately send a copy to: [(1) the appropriate governing body of the area in which the games are to be held; and [(2) the police department of the city or town in which bingo is to be conducted, if it is to be conducted within a city or town, or to the sheriff of the county in which bingo is to be conducted, if it is to be conducted outside a city or town. [(j) Transfer of license. Licenses and renewals issued by the commission may not be transferred or assigned.] (f)
                                                                                      [(k)] Amendments. (1) Applications. A license may be amended if the subject matter of the amendment properly and lawfully could have been included in the original license. An application for an amendment must be filed on a form approved by the commission and will be processed in the same manner as an original application. No amendment to the location, the days or the times of a bingo conductor's license will be effective until the existing license has been surrendered to the commission and an amended license has been issued by the commission
                                                                                        [A licensed organization may not change the location, days, or times of its bingo games until it has surrendered its original license and received an amended license from the commission]. An application for an amendment must be accompanied by a $25 amendment fee. (2) Effective period. An amended license is only effective for the remainder of the period under the original license. (g)
                                                                                          [(l)] Notification of changes. Each licensee has a continuing responsibility to promptly notify the commission in writing of any changes to information in a filed application, when information filed with the commission becomes inaccurate in any way, or when additions or deletions are necessary to reflect changes in the circumstances of the licensee. Examples of such changes include the name of the organizational officers, the amount of rent charged for leased premises, the name of a member responsible for the conduct of games, or the name of an individual connected with a commercial lessor that would affect its eligibility to hold a license and, in the case of lessors, the name of a new authorized organization that intends to lease premises from it for the purpose of conducting bingo. (h)
                                                                                            [(m)] Representation; personal receipt of documents. For purposes of this subsection, an individual shall be recognized by the commission as an applicant's or licensee's authorized representative only if the commission has on file written authorization in the form of a resolution of the applicant's or licensee's governing body, that such individual has the authority to act on behalf of the applicant or licensee, and the extent of such authority. Written authorization furnished by an applicant or licensee under this section shall apply only to the specific individuals listed in the authorization. Agents or employees of an authorized representative are not authorized representatives of the applicant or licensee unless specifically named in the written authorization on file with the commission. Only the applicant, licensee, or those individuals specifically named in the applicant's or licensee's resolution as authorized representatives shall be recognized by the commission concerning any matter relating to the licensing process or any corrective measures to be taken after an audit or field investigation. Only the applicant or its authorized representative may personally receive from the commission documents relating to an applicant's license. (i) Voluntary cancellation of license. A licensee shall be able to surrender its license for cancellation. The cancellation of the license shall be final and effective upon receipt by the director of a certified copy of the resolution, or other authoritative statement of the licensee, requesting cancellation of the license. Cancellation of the license does not relieve the licensee from filing the reports, returns and remittances required by law. The license shall be surrendered to the agency at the time of request. (j) Voluntary suspension of license. A licensee shall be able to voluntarily suspend its license. The suspension shall be effective upon receipt by the director of a certified copy of the resolution, or other authoritative statement of the licensee, requesting suspension of the license. A license that has been voluntarily suspended may be reactivated during the term of the original license. Suspension of the license does not relieve the licensee from filing the reports, returns and remittances required by law. Suspension of the license does not relieve the licensee from the requirement of filing a timely and sufficient application for renewal of the license. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600403 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.546 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Lottery Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Lottery Commission proposes the repeal of sec.402.546, concerning exemptions from licensing requirements because this rule expired by operation of law on April 1, 1995 and the Commission is proposing new rule 402. 546 concerning temporary authorization. Richard Sookiasian, Budget Analyst, has determined that for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Sookiasian, also has determined that for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who hold or seek temporary authorization to conduct bingo occasions. Comments on the proposed repeal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The repeal is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, s467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this action. sec.402.546. Exemptions from Licensing Requirements. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600528 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.547 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Lottery Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Lottery Commission proposes the repeal of sec.402.547, concerning books and records-bingo licenses because this rule expired by operation of law on April 1, 1995 and the Commission is proposing new rule 402. 547 concerning prohibited bingo occasion. Richard Sookiasian, Budget Analyst, has determined that, for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Sookiasian also has determined that, for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who hold or seek a license to conduct bingo occasions. Comments on the proposed repeal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The repeal is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, s467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this action. sec.402.547. Books and Records-Bingo Licensees. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600529 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.548 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Lottery Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) Texas Lottery Commission proposes the sec.402.548, concerning general restrictions on the conduct of bingo because this rule expired by operation of law on April 1, 1995 and the Commission is proposing new rule sec.402.548 concerning general restrictions on the conduct of bingo. Richard Sookiasian, Budget Analyst, has determined that for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Sookiasian also has determined that for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who hold or seek a license to conduct bingo occasions. Comments on the proposed repeal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The repeal is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, s467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this action. sec.402.548. General Restrictions on the Conduct of Bingo. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600530 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.549 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Lottery Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Lottery Commission proposes the repeal sec.402.549, concerning allowable expenditures of receipt from bingo because this rule expired by operation of law on April 1, 1995 and the Commission is proposing new rule 402. 549 concerning exemption from licensing requirements. Richard Sookiasian, Budget Analyst, has determined that for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Mr. Sookiasian also has determined that for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who seek exemption from the licensing requirements of the Bingo Enabling Act. Comments on the proposed repeal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The repeal is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this 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 January 12, 1996. TRD-9600531 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.546 The Texas Lottery Commission proposes new sec.402.546, relating to temporary authorization. The rule establishes the requirements for issuance of temporary authorization under the Bingo Enabling Act, sec.13. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear guidance to persons who hold or seek temporary authorization to conduct bingo occasions. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provide the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.546. Temporary Authorization. (a) A temporary authorization shall be issued only to a person who is not licensed by the commission but who has filed an original application. (b) A temporary authorization to conduct a bingo-related activity may only be issued to a person who will conduct a bingo-related activity at the same location for which the person has a pending original application to conduct a bingo-related activity. A temporary authorization shall not be issued to a person if the proposed location to conduct bingo is not authorized under the provisions of the Bingo Enabling Act, Texas Civil Statutes, Article 179d. (c) A temporary authorization shall be issued for a stated period of time not to exceed 60 days. A temporary authorization may be extended upon written request by the person to whom the temporary authorization was issued. Such request must be filed with the commission at least seven working days prior to the time the temporary authorization expires. Extensions shall be for a period of time not to exceed 60 days. No more than two extensions may be issued. (d) A request for an extension shall include: (1) the complete name of the organization requesting the extension; (2) the Texas taxpayer identification number of the organization requesting the extension; (3) a complete explanation of the basis for the request; and (4) the specific reason(s) supporting the need for an extension. (e) An organization who is not in compliance with the Bingo Enabling Act, Texas Civil Statutes, Article 179d, and/or the Bingo rules and regulations will not be granted an extension unless the organization becomes compliant during the period of the original temporary authorization. (f) An organization conducting bingo under a temporary authorization that desires to obtain a temporary license shall be subject to the same requirements in sec.402.545(c)(1) of this title relating to an organization not holding an annual license to conduct bingo. (g) A temporary authorization is not a license. (h) A temporary authorization may not be amended. (i) An annual license that has been issued to an applicant shall expire one year from the date of the first issuance of any temporary authorization under this section. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600404 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.547 The Texas Lottery Commission proposes new sec.402.547, relating to prohibited bingo occasion. The rule requires bingo games to be actively supervised by the conductor. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear guidance to persons who hold or seek a license to conduct bingo occasions. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.547. Prohibited Bingo Occasion. No licensee shall commence or continue a bingo occasion unless an active member that has been designated pursuant to the Bingo Enabling Act, Texas Civil Statutes, Article 179d, sec.12(a)(7) is physically present at the bingo premises and is actively supervising and directing the bingo occasion. Any occasion, and any game of bingo, conducted in violation of this provision is a violation of the Bingo Enabling Act, Texas Civil Statutes, Article 179d. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600405 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.548 The Texas Lottery Commission proposes new sec.402.548, relating to general restrictions on the conduct of bingo. The rule sets out specific requirements governing the conduct of bingo occasions. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear guidance to persons who hold or seek a license to conduct bingo occasions. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.548. General Restrictions on the Conduct of Bingo. (a) Advertising. Any advertising or promotion of a bingo occasion shall clearly identify the conductor, by name as shown exactly as it is shown on the license. (b) Inspection of equipment, tampering prohibited. All bingo equipment is subject to inspection at any time by any representative of the commission. No licensee may tamper with or modify any bingo equipment in any manner which would affect the randomness of numbers chosen or which changes the numbers or symbols appearing on the face of a bingo card. A licensed authorized organization has a continuing responsibility to ensure that all bingo equipment used by it is in proper working condition. (c) Location of bingo occasion. A bingo occasion may be conducted only on premises which are: (1) owned by the conductor; (2) owned by a governmental agency; (3) leased, or used only by the holder of a temporary license; or (4) owned or leased by a licensed commercial lessor. (d) Merchandise prizes. Any merchandise awarded as a prize in a bingo occasion shall be valued at its current retail price. If a merchandise prize is donated to a licensed organization, it may not be reported as an expenditure for any purpose. (e) Notice of law and regulation. Each conductor shall obtain, maintain, keep current and make available for review to any person upon request a copy of the Bingo Enabling Act and the rules of the commission. (f) Notification of name of operator. Each conductor shall conspicuously display during all bingo occasions a sign indicating the name of the operator in charge of the occasion. The letters on the sign shall be no less than one inch tall. The sign shall inform the players at that location that they should direct any questions or complaints regarding the conduct of the bingo occasion to the operator listed on the sign. The sign should further state that if the player is not satisfied with the response given by the operator that the player has the right to contact the commission and file a formal complaint. (g) Reservation of bingo cards. Except where otherwise expressly permitted by this title, no conductor may reserve, or allow to be reserved, any bingo card or cards for use by a bingo player. (h) Workers and employees prohibited from playing. No bingo occasion shall be continued if, during such occasion, any worker or employee who is conducting or assisting in the conduct of the occasion participates as a player, either directly or by surrogate. (i) Verification. (1) Verification of winning cards. The numbers appearing on the winning card must be verified at the time the winner is determined and prior to prize(s) being awarded in order to insure that the numbers on the card in fact have been drawn from the receptacle. This verification shall be done either in the immediate presence of one or more players at a table or location other than the winners, or displayed on a TV monitor visible by all of the players, or by an electronic verifier system visible by all the players. Each winning disposable paper card or an electronic representation of the card shall also be posted on the licensed premises where it may be viewed in detail by the players until at least 30 minutes after the completion of the last bingo game of that organization's occasion. (2) Verification of numbers drawn. Any player may request a verification of the numbers drawn at the time a winner is determined and a verification of the balls remaining in the receptacle and not drawn. Verification shall take place in the immediate presence of the operator, one or more players other than the winner, and player requesting the verification. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600406 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.549 The Texas Lottery Commission proposes new sec.402.549, relating to exemptions from licensing requirements. The rule contains express language governing the exemptions from the licensing requirements as set out in 39 of the Bingo Enabling Act. Richard Sookiasian, Budget Analyst, has determined that for each year of the first five years that the rule will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. Richard Sookiasian, Budget Analyst, has also determined that for each year of the first five years that the rule will be in effect, there will be no material economic cost to persons, including small businesses, who are required to comply with the rule, and that the public benefits expected as a result of adoption of the proposed rule will be clear guidance to persons who seek exemption from the licensing requirements of the Bingo Enabling Act. Comments on the proposed rule may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.549. Exemptions from Licensing Requirements. (a) Any group or organization that intends to conduct a game under Texas Civil Statutes, Article 179d, sec.39, shall submit in writing to the Texas Lottery Commission (commission), the facts that support its exemption from the licensing requirements. If the organization or group is exempt, the commission will issue a letter of exemption which must be available on the premises at all times during the conduct of bingo. The group or organization must notify the commission within ten working days if there is any change in their status which may affect their eligibility for an exemption. (b) An exemption issued by the commission is valid for two years from the date of issuance. It is the responsibility of the group or organization holding the exemption to reapply in a timely manner. (c) Types of allowable exemptions. (1) An organization conducting on behalf of persons 60 years of age or over shall submit a written request for an exemption describing the organization itself and who will be eligible to participate in the bingo games conducted by the organization, as per the eligibility requirements of Texas Civil Statutes, Article 179, sec.39. (2) A Senior Citizens' Association shall submit a written request for an exemption describing the association and how it is organized. Additionally, the request shall include who will be eligible to participate in the bingo games conducted by the association. (3) A community center having any program operated or funded by a governmental entity shall submit a written request for an exemption. The request shall include the type of program funded by the governmental entity and who will be eligible to participate in the bingo games conducted by the community center. (4) A nursing home or hospital shall submit a written request for an exemption. The request shall include a copy of the certificate from the Texas Health Department and a statement regarding who will be eligible to participate in the bingo games conducted by the nursing home or hospital. (5) A retirement home shall submit a written request for an exemption. The request shall include a brochure or other documentation describing the retirement home and a statement regarding who will be eligible to participate in the bingo games conducted by the retirement home. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600407 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.554 The Texas Lottery Commission proposes an amendment to sec.402.554, relating to instant bingo. The proposed amendment clarifies the definition and manufacturing requirements governing instant bingo cards. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clearer expression of the description and manufacturing requirements of instant bingo cards. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The amendment is proposed under Texas Civil Statutes, Article 179d, sec.16(a) and (d), which authorize the Texas Lottery Commission to adopt rules for the enforcement and administration of the Bingo Enabling Act and Texas Government Code, sec.467.102, which authorizes the Texas Lottery Commission to adopt rules for the enforcement and administration of Texas Government Code, Chapter 467 and the laws under the Commission's jurisdiction. Texas Civil Statutes, Article 179d is affected by this amendment. sec.402.554. Instant Bingo. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Deal of series-Each separate, serialized package of instant bingo cards. (2) Instant Bingo Card-A device used to play a specific game of chance consisting of an individual card, the face of which is initially hidden from view to conceal numbers. Each individual card must: (A) bear an impression of the commission's seal with the words "Texas Lottery Commission" engraved around the margin and a five-pointed star in the center; (B) contain the letters B-I-N-G-O on its face in a conspicuous location in no less than 29-point type; (C) be imprinted in no less than nine-point type with the words "Authorized by the Texas Lottery Commission"; (D) contain the series number assigned by the manufacturer; (E) contain the manufacturer's name or trademark; (F) disclose the amount and number of prize winners, the number of individual cards contained in a deal, and the cost per card; [and] (G) contain no other symbols, emblems, or characters ;
                                                                                              [.] (H) be constructed of cardboard and glued or otherwise securely sealed along all four edges of the card and between the individual break-open tabs on the card; (I) have numbers or symbols that are concealed behind perforated window tabs; (J) allow such numbers or symbols to be revealed only after the player has physically removed the perforated window tabs; and (K) prevent the determination of a winning or losing instant bingo ticket by any means other than the physical removal of the perforated window tabs by the player. (3) Instant bingo game. A game of chance played by the random selection of one or more individually prepackaged instant bingo cards from a series of instant bingo cards. Prize winners are determined by the preprinted appearance of numbers in a prescribed order, according to winning arrangements indicated on the reverse side of the card. (b) (No change.) (c) Manufacturing requirements. (1)-(3) (No change.) (4) Each individual card must be constructed so that it is substantially impossible, in the opinion of the commission, to determine a concealed number or numbers until it has been opened by a player. Without limiting the requirements of the previous sentence of this paragraph, for all instant bingo cards offered for sale by a licensed organization on or after February 1, 1988, such cards shall be required to be constructed of cardboard and
                                                                                                in such a manner so that cardboard
                                                                                                  [card] gluing occurs on all four edges of the card and between the individual break-open tabs on the card. The glue must be of sufficient strength and type so as to prevent the undetectable separation of the card. (5)-(6) (No change.) (d) Prizes, costs, sales, percentages. (1) The cost to purchase an individual instant bingo card may not exceed $1.00
                                                                                                    [$.50] and must be clearly posted in the vicinity of the location where cards are sold. (2) (No change.) (3) All sales of instant bingo cards must be performed under the same condition and in the same manner as sales of regular and paper special bingo cards. Thus, a licensed organization may sell instant bingo cards on the premises specified in its license and where regular or paper special bingo cards are sold[, prior to its licensed times]. They may be redeemed for cash or other cards only[:] [(A) during the times that bingo cards are being sold;] [(B)] during the organization's licensed times where regular or paper special bingo games are being conducted
                                                                                                      [; or] [(C) during a required 30-minute intermission between the bingo occasions of two organizations]. (4)-(7) (No change.) (e)-(f) (No change.) (g) Records. (1) (No change.) (2) The sales of and prizes paid for instant bingo cards, including the series number, shall be shown on the daily cash report and aggregate total sales for the organization must be recorded on the cash register [as required by sec.402.547 of this title (relating to Books and Records-Bingo Licensees)]. (3)-(5) (No change.) (h)-(i) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600408 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.555 The Texas Lottery Commission proposes new sec.402.555, relating to cardminding devices. The rule implements statutory changes and establishes standards for the manufacture, distribution and use of cardminding devices as set out in the Bingo Enabling Act, sec.2 and sec.11. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear expression of the standards concerning manufacture, distribution and use of cardminding devices in the conduct of bingo. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.555. Cardminding Device. (a) Policy Statement. All cardminding devices must be operated in accordance with subsection (g)(2) of this section. (b) Approval of Cardminding Devices. (1) No cardminding device may be sold, leased, or otherwise furnished to any person in this state or used in the conduct of bingo for public play unless and until a cardminding device which is identical to the cardminding device intended to be sold, leased, or otherwise furnished has first been presented to the commission by its manufacturer, at the manufacturer's expense, and has been approved by the commission for use within the state. (2) An identical cardminding device to the cardminding device intended to be sold, leased, or otherwise furnished must be presented to the commission in Austin for review. If granted, approval extends only to the specific cardminding device approved. Any modification must be approved by the commission. (3) Once a cardminding device has been approved, the commission may keep the cardminding device for further testing and evaluation for as long as the commission deems necessary. (c) Manufacturing Requirements. (1) Manufacturers of cardminding devices must manufacture each cardminding device in such a manner to ensure that the internal accounting system of the cardminding device is capable of continuously monitoring all disposable bingo cards and cardminders sales so that at any bingo occasion sales of cardminders do not exceed 30% of gross bingo receipts. (2) The cardminding device must have a dial-up capability so that the commission may remotely monitor the operation and internal accounting systems of the cardminding device at any time. (3) Manufacturers of cardminding devices incorporating erasable programmable read only memory modules (EPROM) and EPROM receptacle or similar logic storage and/or retrieval components must seal these modules and their associated circuitry to secure against unauthorized removal, additions, changes or other alterations by utilizing commission-approved protective seal tape. No security seal shall be broken except when authorized by the commission. (4) Manufacturers of cardminding devices must manufacture each cardminding device to insure that the internal accounting system records and retains for a period of not less than twelve months, the serial number of each bingo card sold for cardminder use, the price of each card sold, the total amount of the cardminder sales for each occasion and the total amount of cardminder card faces sold for each occasion. This information must be secure and shall not be accessible for alteration during the occasion. The cardminder system must be able to verify winning cards and to print them for posting. The capabilities and information must not be lost through power failure or other disruption during the occasion. (5) If the commission detects or discovers any problem with the cardminding device that affects the security and/or integrity of the bingo game or cardminding device, the commission may direct the manufacturer, distributor, or conductor to cease the sale, lease, or use of the cardminding device, as applicable. The commission may require the manufacturer to correct the problem or recall the cardminding device immediately upon notification by the commission to the manufacturer. If the manufacturer, distributor, or conductor detects or discovers any defect, malfunction, or problem with the cardminding device, the manufacturer, distributor, or conductor, as applicable, shall immediately remove the cardminding device from use or play and immediately notify the commission of such action. (6) The toll-free "800" number operated by the Problem Gamblers' Help Line of the Texas Council on Problem and Compulsive Gambling must be displayed on each cardminding device in such a manner that it is conspicuous and clearly visible to a player using the cardminding device. (d) Conductor requirements. (1) Before initial use by a licensed authorized organization, each licensed authorized organization that leases or purchases a cardminding device must notify the commission in writing of the make, model, serial number and dial-up telephone number of the cardminding device. (2) No conductor shall require a player to use a cardminding device in playing bingo. (3) Prior to the start of the bingo occasion, no cardminding device may be reserved for use by any player, with the exception of a player who is disabled in accordance with the provisions of the American with Disabilities Act, or, a player who is playing more than one consecutive bingo occasion. (4) The price for a cardface played through a cardminding device shall be the same price as that of a disposable paper cardface or bingo hardcard, sold separately or in combination. (e) Inspection. The commission or the commission's authorized representative(s) may examine and inspect any individual cardminding device and related systems. Such examination and inspection includes immediate access to the cardminding device and unlimited inspection of all parts of the cardminding device. (f) Records. (1) Each manufacturer selling cardminding devices must maintain a log showing the date, and serial number of the purchased cardminding device and to whom the cardminding device was sold. (2) Each distributor selling, leasing, or otherwise furnishing cardminding devices must maintain a log showing the following information: (A) the date, model and serial number of the cardminding device; (B) the name and Texas taxpayer identification number of the licensed organization to whom the cardminding device was furnished; (C) name, address, and Texas taxpayer identification number of the manufacturer or distributor from whom the cardminding device was purchased; and (D) name, address and Texas taxpayer identification number of the distributor to whom the cardminding device was sold, leased or otherwise furnished. (3) Each conductor purchasing, leasing, or otherwise utilizing a cardminding device must maintain a record showing the date, model, and serial number of the cardminding device and, the name, address, and Texas taxpayer identification number of the distributor from whom the cardminding device was purchased, leased, or otherwise furnished. If multiple conductors hold an interest in a cardminding device, each must maintain a separate record. (4) All records, reports and receipts relating to the cardminding device's sales, maintenance, and repairs must be retained by the conductor on the premises where the conductor is licensed to conduct bingo or at a location designated in writing by conductor for a period of four years for examination by the commission. Any change in the designated location must be submitted to the commission in writing at least ten days prior to the change. (5) Manufacturers and distributors must provide and maintain for four years the following information on each invoice or other document used in connection with a sale or lease, as applicable: (A) date of sale or lease; (B) quantity sold or leased; (C) cost per cardminding device; (D) model and serial number of each cardminding device; (E) name and address of the purchaser or lessee; and (F) Texas taxpayer identification number of the purchaser or lessee. (g) Restrictions. (1) No licensee may display, use or otherwise furnish a cardminding device which has in any manner been marked, defaced, tampered with, or which otherwise may deceive the public or affect a person's chances of winning. (2) A cardminding device may be used by a bingo player only when operated in the following manner: (A) The bingo player must perform at least the following functions: (i) input each number or symbol called by the conductor into the memory of the cardminding device by use of a separate input function. Automatic marking of numbers or symbols is prohibited; (ii) notify the conductor when a winning pattern or "bingo" occurs by means that do not utilize the cardminding device or the associated system; and (iii) identify the winning cardface and display the cardface to the conductor. (B) Each player using a cardminding device is limited to playing a maximum of sixty-six cardfaces during any game. (C) The bingo player must be physically present on the premises where the game is actually conducted. (h) Verification. (1) Verification of winning cardface. The numbers appearing on the winning cardface must be verified at the time the winner is determined and prior to prize(s) being awarded in order to insure that the numbers on the cardface in fact have been drawn from the receptacle. This verification shall be done in the immediate presence of one or more players at a table other than the winner's. Alternatively, each winning cardface played on a cardminding device shall be displayed on any television monitors in use. Each winning cardface played on a cardminding device shall also be printed by the conductor through use of the cardminding system and posted on the licensed premises where it may be viewed in detail by the players until at least 30 minutes after the completion of the last bingo game of that organization's occasion. (2) Verification of numbers drawn. Any player may request a verification of the numbers drawn at the time a winner is determined and a verification of the balls remaining in the receptacle and not drawn. Verification shall take place in the immediate presence of the operator, one or more players other than the winner, and the player requesting the verification. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600409 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 16 TAC sec.402.556 The Texas Lottery Commission proposes new sec.402.556, relating to pull-tab or instant bingo dispensers. The rule implements recent statutory changes and establishes requirements governing pull-tab or instant bingo dispensers as set out in the Bingo Enabling Act, sec.2 and sec.11. Richard Sookiasian, budget analyst, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Sookiasian also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be clear expression of the standards concerning manufacture, distribution and use of pull-tab or instant bingo dispensers in the conduct of bingo. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. The new section is proposed under authority of Texas Civil Statutes, Article 179d, sec.16(a) and (d), and under Texas Government Code, sec.467.102, which provides the Texas Lottery Commission with the authority to adopt rules for the enforcement and administration of the Bingo Enabling Act. Texas Civil Statutes, Article 179d is affected by this new section. sec.402.556. Pull-tab or Instant Bingo Dispensers. (a) Approval of Pull-tab or Instant Bingo Dispensers. (1) No pull-tab or instant bingo dispenser may be sold, leased, or otherwise furnished to any person in this state or used in the conduct of bingo for public play unless and until a dispenser which is identical to the dispenser intended to be sold, leased, or otherwise furnished has first been presented to the commission by its manufacturer, at the manufacturer's expense, and has been approved by the commission for use within the state. (2) An identical dispenser to the dispenser intended to be sold, leased, or otherwise furnished must be presented to the commission in Austin for review. If granted, approval extends only to the specific dispenser model approved. Any modification must be approved by the commission. (3) Once a dispenser has been approved, the commission may keep the dispenser for further testing and evaluation for as long as the commission deems necessary. (b) Manufacturing requirements. (1) Manufacturers of pull-tab or instant bingo dispensers must manufacture each dispenser in such a manner to ensure that the dispenser dispenses a break- open bingo ticket, an instant bingo ticket, a pull-tab bingo game or instant bingo card only after the player inserts money into the dispenser, and that such ticket, game or card is the sole thing of value which may be redeemed for cash. (2) Manufacturers of dispensers must manufacture each dispenser in such a manner to ensure that the device neither displays nor has the capability to determine whether a break-open bingo ticket, an instant bingo ticket, or a pull- tab bingo game is a winning or non-winning ticket. (3) Manufacturers of dispensers must manufacture each dispenser in such a manner that any visual animation does not simulate or display rolling or spinning reels. (4) Manufacturers of dispensers must manufacturer each dispenser in such a manner that any stacking column is adjustable for varying lengths of break-open bingo tickets, instant bingo tickets, or pull-tab bingo games. As an option, a dispenser may use replaceable stacking columns that accommodate varying lengths of break-open bingo tickets, instant bingo tickets, or pull-tab bingo games. The dispenser must be adjustable for varying thicknesses of break-open tickets, instant bingo tickets, or pull-tab bingo games. (5) If the commission detects or discovers any problem with the dispenser that affects the security and/or integrity of the break-open bingo ticket, an instant bingo ticket, or a pull-tab bingo game or dispenser, the commission may direct the manufacturer, distributor, or conductor to cease the sale, lease, or use of the dispenser, as applicable. The commission may require the manufacturer to correct the defect, malfunction, or problem or recall the dispenser immediately upon notification by the commission to the manufacturer. If the manufacturer, distributor, or conductor detects or discovers any defect, malfunction, or problem with the dispenser, the manufacturer, distributor, or conductor, as applicable, shall immediately remove the dispenser from use or play and immediately notify the commission of such action. (6) The toll-free "800" number operated by the Problem Gamblers' Help Line of the Texas Council on Problem and Compulsive Gambling must be displayed on each pull-tab or instant bingo dispenser in such a manner that it is conspicuous and clearly visible to a player using the device. (c) Conductor requirements. (1) A conductor who has purchased or leased a dispenser may not allow another conductor to use such dispenser unless and until the former conductor has removed its break-open bingo tickets, instant bingo tickets, pull-tab bingo games and instant bingo cards from the dispenser. (2) Each conductor who uses a dispenser at its bingo occasion shall affix to the dispenser an identification label which displays the conductor's name and Texas taxpayer identification number. (3) The keys to open the locked doors to the dispenser's ticket dispensing area and coin and/or cash box must be in the possession and control of the operator in charge of the occasion, or someone designated by the operator. The operator in charge or the person designated shall present the keys to a Commission representative immediately upon request. The operator in charge shall be responsible for ensuring that the person so designated shall have the keys available at all times during the occasion. (4) The entire deal or package shall be offered for sale, except as otherwise provided by 16 TAC sec.402.554(d)(5) (relating to Instant Bingo). All break-open bingo tickets, instant bingo tickets, pull-tab bingo games or instant bingo cards in any one column or sleeve must have the same serial number, color description, and must be of the same kind and type. (d) Inspection. The commission or the commission's authorized representative(s) may examine and inspect any individual pull-tab or instant bingo dispenser. Such examination and inspection includes immediate access to the dispenser and unlimited inspection of all parts of the dispenser. (e) Records. (1) Each manufacturer selling pull-tab or instant bingo dispensers must maintain a log showing the date, model, and serial number of the purchased dispenser and to whom the dispenser was sold. (2) Each distributor selling, leasing, or otherwise furnishing pull-tab or instant bingo dispensers must maintain a log showing the following information: (A) the date, model and serial number of the dispenser; (B) the name and Texas taxpayer identification number of the licensed organization to whom the pull-tab or instant bingo dispenser was furnished; (C) name, address, and Texas taxpayer identification number of the manufacturer or distributor from whom the dispenser was purchased; and (D) name, address, and Texas taxpayer identification number of the distributor to whom the dispenser was sold, leased, or otherwise furnished. (3) Each conductor purchasing, leasing, or otherwise utilizing pull-tab or instant bingo dispensers must maintain a log showing the date, model, and serial number of the dispenser and, the name, address, and Texas taxpayer identification number of the distributor from whom the dispenser was purchased, leased, or otherwise furnished. If multiple conductors hold an interest in a dispenser, each must maintain a separate record. (4) All records, reports, and receipts relating to the pull-tab or instant bingo dispenser sales, maintenance, and repairs must be retained by the conductor on the premises where the conductor is licensed to conduct bingo or at a location designated in writing by the conductor for a period of four years for examination by the commission. Any change in the designated location must be submitted to the commission in writing at least ten days prior to the change. (5) Manufacturers and distributors must provide and maintain for a period of four years the following information on each invoice or other document used in connection with a sale or lease, as applicable: (A) date of sale or lease; (B) quantity sold or leased; (C) cost per dispenser; (D) model and serial number of each dispenser; (E) name and address of the purchaser or lessee; and (F) Texas taxpayer identification number of the purchaser or lessee. (f) Restrictions. No licensee may display, use or otherwise furnish a dispenser which has in any manner been marked, defaced, tampered with, or which otherwise may deceive the public or affect a person's chances of winning. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 11, 1996. TRD-9600410 Kimberly L. Kiplin General Counsel Texas Lottery Commission Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 323-3791 TITLE 34. PUBLIC FINANCE Part I. Comptroller of Public Accounts Chapter 3. Tax Administration Subchapter GG. Insurance Tax 34 TAC sec.3.830 The Comptroller of Public Accounts proposes new sec.3.830, concerning the premium tax credit for examination expenses and valuation fees. The new section defines which examination expenses and/or valuation fees are allowed to offset the premium tax liability due. The new section also clarifies the proper application of these credits to the premium tax due. Mike Reissig, chief revenue estimator, has determined that for the first five- year period the rule will be in effect there will be no significant revenue impact on the state or local government. Mr. Reissig also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be in providing new information regarding tax responsibilities. This rule is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule. Comments on the new section may be submitted to Karey W. Barton, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711. The new section is proposed under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. The new section implements the Insurance Code, Article 1.16; Article 1.28; Article 4.10, sec.13; Article 4.11, sec.8; Article 20A.17; and Article 4.07, sec.B. sec.3.830. Premium Tax Credit for Examination Expenses and Valuation Fees. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Direct examination expenses-These expenses include travel (food, lodging, and transportation) and miscellaneous expenses incurred by Texas Department of Insurance (TDI) examiner(s) during the examination of an insurer. (2) Indirect examination expenses-These expenses include TDI examiner salaries, any costs paid directly by the insurance company under examination to third party examiners hired by the TDI to conduct the examination, the overhead assessment, and examination expenses paid to other State of Texas regulatory agencies. (3) Overhead assessment-The overhead assessment is billed by the TDI to cover the operating expenses of the examinations section. These expenses include, but are not limited to, support staff salaries, utilities, rent, office equipment, furniture and fixtures, supplies, and miscellaneous expenses. (4) Rehabilitation fees-These fees are assessed on companies that have undergone a successful rehabilitation by TDI to cover the costs of the rehabilitation. (5) Valuation fee-An annual fee which is assessed by the TDI on Texas domestic life insurance carriers. The fee is used to offset the cost of valuing life insurance policies issued by these carriers. The fee is based on the amount of direct life insurance in force at the end of the calendar year and is reported on the Annual Maintenance, Assessment and Retaliatory Report (Form 25-102). (b) Examination expense credit. (1) Domestic insurers may elect to maintain all or a portion of their books and records outside of Texas under the Insurance Code, Article 1.28. Companies electing to maintain their books and records out of state are allowed to claim indirect examination expenses and the overhead assessment, as defined in subsection (a) of this section, paid during the tax year as a credit. (2) Domestic insurers who maintain all of their books and records in Texas and foreign insurers can claim direct examination expenses, indirect examination expenses, and the overhead assessment, as defined in subsection (a) of this section, paid during the tax year as a credit. (c) Valuation fee credit. This credit can be taken by any company that has paid the valuation fee during the tax year for which the premium tax is due. (d) Limitation of credit. The aggregate of the examination expense credit and the valuation fee credit is limited to the premium tax liability due prior to the application of any premium tax prepayments and/or guaranty association assessment credits available. Any credit which exceeds the premium tax liability for a given year is lost and can not be carried forward to future year(s) nor carried back to previous year(s). Only examination expenses specifically enumerated in subsection (a) of this section are allowed to be used in the computation of the examination expense credit. Rehabilitation fees assessed by the TDI under the Insurance Code, Article 21. 28, are not allowed as a credit. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 17, 1996. TRD-9600611 Martin Cherry Chief, General Law Comptroller of Public Accounts Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 463-4028 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part VI. Texas Department of Criminal Justice Chapter 151. General Provisions 37 TAC sec.sec.151.4, 151.6, 151.51, 151.53, 151.71 The Texas Department of Criminal Justice (TDCJ) proposes amendments to sec.151.4 and new sec.sec.151.6, 151.51, 151.53, and 151.71, concerning general provisions. The amendments to sec.151.4 incorporate a new subsection (a), add changes to former subsection (c), and add new subsections (e)-(g) to the original rule which was effective February 15, 1993, (18 TexReg 590). The amendments are proposed to comply with Government Code sec.492.007, which requires opportunity for public appearance before the Board of Criminal Justice, balanced against the constraint of the Open Meetings Act, specifically Government Code sec.551.042, which prohibits deliberation on issues raised before the Board but not posted for deliberation. New sec.151.6 covers the steps required to petition the agency for adoption of a rule, as required by Texas Government Code sec.2001.021. New sec.151.51 establishes guidelines and eligibility criteria for authorizing custodial officer certification and hazardous duty pay to employees of the Texas Department of Criminal Justice under the authority of Texas Government Code, sec.sec.659.062, 813.506, and 815.505; and House Bill 1, General Appropriations Act, 74th Legislature, 1995. New sec.151.53 provides procedures regarding applications for and administration of multiple employments with the State of Texas by employees of the Texas Department of Criminal Justice, as required by Texas Government Code, Chapter 574 to comply with Texas Constitution, Article XVI, Section 40. Finally, new s151.71 concerns the marking of state vehicles of the Department of Criminal Justice in accordance with Texas Civil Statutes, Article 6701m-1. David P. McNutt, Assistant Director for Budget and Management has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. McNutt also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of enforcing the rules will be increased accountability of the Department of Criminal Justice and clarification of procedures for meetings of the Board. There will be no effect on small business. There is no anticipated economic cost to persons required to comply with the rules as proposed. Comments should be directed to Carl Reynolds, General Counsel, Texas Board of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from the general public should be received within 30 days of the publication of this proposal. The amendment and new sections are proposed under the Government Code, sec.492.013, which grants general rulemaking authority to the Board; Texas Government Code, Chapter 574, and sec. s492.007, 551.042, 659.062, 813.506, 815.505, and 2001.021; House Bill 1, General Appropriations Act, 74th Legislature, 1995; and Texas Civil Statutes, Article 6701m-1. Cross Reference to Statute: Texas Government Code, Chapter 574, sec.sec.492. 007, 551.042, 659.062, 813.506, 815.505, and 2001.021; Texas Civil Statutes, Article 6701m-1. sec.151.4. Presentations to the Texas Board of Criminal Justice. (a) Policy. The Texas Board of Criminal Justice is committed to provide access and opportunity for public comment on issues within the jurisdiction of the board, and invites public testimony on items that are part of the board's posted agenda as provided for in subsection (b) of this section. Because the Open Meetings Act prohibits deliberation on items that are not posted, however, the board does not provide for public presentation on non-posted issues. Persons outside the agency who wish to have items placed on the board agenda are invited to follow the procedure in subsection (d) of this section. (b) Statements concerning items that
                                                                                                        [which] are part of the board's posted agenda. Persons who desire to make presentations to the board concerning matters on the agenda for a scheduled board meeting or subcommittee meeting shall complete registration cards which shall be made available at the entry to the place where the board's scheduled meeting is to be held. The registration cards shall include blanks in which all of the following information must be disclosed: (1) name of the person making a presentation; (2) a statement as to whether the person is being reimbursed for the presentation; and if so, the name of the person or entity on whose behalf the presentation is made; (3) a statement as to whether the presenter has registered as a lobbyist in relationship to the matter in question; (4) a reference to the agenda item which the person wishes to discuss before the board; (5) an indication as to whether the presenter wishes to speak for or against the proposed agenda item; (6) a statement verifying that all factual information to be presented shall be true and correct to the best of the knowledge of the speaker. (c)
                                                                                                          [(b)] Discretion of the chairman of the board. The chairman of the Texas Board of Criminal Justice shall have discretion in setting reasonable limits on the time to be allocated for each presentation. If several persons wish to address the board on the same agenda item, it shall be within the discretion of the chair to request that persons who wish to address the same side of the issue coordinate their comments, or limit their comments to an expression for views previously articulated by persons speaking on the same side of an issue. The chairman shall provide opportunity for testimony of a person who has submitted a registration card prior to the board taking action on the item that the person indicates a wish to discuss. (d)
                                                                                                            [(c)] Requests that issues be placed on an agenda. Persons outside the agency
                                                                                                              who wish to bring issues before the board shall [first] address their request to the Chairman, Texas Board of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Such requests should be submitted at least 50
                                                                                                                [20] days in advance of the board meeting. The decision whether to calendar a matter for discussion before the full board, a board committee, a board liaison
                                                                                                                  [or alternatively before a board subcommittee], or with a designated staff member, shall be within the discretion of the chairman. (e) Disability accommodation. Persons with disabilities who have special communication or accommodation needs and who plan to attend a meeting may contact the office of the administrative assistant to the chairman in Austin. Requests should be made at least two days before a meeting. The department will make every reasonable effort to accommodate these needs. (f) Conduct and decorum. The board will receive public input as authorized by this section, subject to the following guidelines. (1) Questioning of those making presentations will be reserved to board members and staff recognized by the chairman. (2) Presentations shall remain pertinent to the issue being discussed. (3) A person who disrupts a meeting must leave the meeting room if ordered to do so by the chairman. (4) A person may not assign a portion of his or her time to another speaker. (g) It is a crime to carry a licensed concealed handgun at a meeting of the board. sec.151.6. Petition for the Adoption of a Rule. (a) Submission of the petition. (1) Any person may petition the agency to adopt a rule. (2) The petition shall be mailed or delivered to the general counsel of the Texas Board of Criminal Justice at the Austin headquarters office of the Texas Department of Criminal Justice. (3) The petition shall be in writing, shall contain the petitioner's name and address, and shall describe the rule and the reason for it. If the general counsel of the Texas Board of Criminal Justice determines that further information is necessary to assist the agency in reaching a decision, the general counsel may require that the petitioner resubmit the petition and that it contain: (A) a brief explanation of the proposed rule; (B) the text of the proposed rule prepared in a manner to indicate the words to be added or deleted from the current text, if any; (C) a statement of the statutory or other authority under which the rule is to be promulgated; and (D) the public benefit anticipated as a result of adopting the rule or the anticipated injury of inequity that could result from the failure to adopt the proposed rule. (b) Consideration and disposition of the petition. (1) Except as provided in subsection (c) of this section, the agency shall consider and dispose of all petitions submitted. (2) Within 60 days after receipt by the general counsel's office of the petition, or within 60 days after receipt by the general counsel's office of a resubmitted petition in accordance with subsection (a)(1)-(3) of this section, the agency shall deny the petition or institute rulemaking procedure in accordance with the Administrative Procedure Act. The agency may deny parts of the petition or institute rulemaking procedures on parts of the petition. (3) If the agency denies the petition, the general counsel shall give the petitioner written notice of the agency's denial and the reasons for the denial. (4) The petitioner may appeal the denial to the Board Chairman, whose decision is final. (c) Subsequent petitions to adopt the same or similar rule. All initial petitions for the adoption of a rule shall be presented to and decided by the agency in accordance with the provisions of paragraphs (1) and (2) of this subsection. The general counsel may refuse to consider any subsequent petition for the adoption of the same or similar rule submitted within six months after the date of the initial petition. sec.151.51. Custodial Officer Certification and Hazardous Duty Pay Eligibility Guidelines. (a) Purpose. The purpose of this section is to establish guidelines and eligibility criteria for authorizing custodial officer certification and hazardous duty pay to employees of the Texas Department of Criminal Justice (hereinafter, Agency), under the authority of the Texas Government Code, sec.sec.659.062, 813.506, and 815.505; and House Bill 1, General Appropriations Act, 74th Legislature, 1995. In accordance with these provisions and in keeping with the responsibilities of the Board, this rule relating to custodial officer certification and hazardous duty pay applies effective September 1, 1995. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise. (1) Custodial Officer Certification-Service certification to the Employees Retirement System based on meeting the eligibility requirements within subsection (d)(1) of this section. (2) Direct Inmate/Confinee Contact-When an employee's job assignment requires routine contact with the general inmate/confinee population in close proximity to inmates/confinees without the protection of bars, doors, security screens, etc. Such contact would normally involve supervision of inmates/confinees in housing areas, educational and recreational facilities, industrial shops, kitchens, laundries, medical areas, agricultural shops and fields, and other areas whether on or away from Agency property. (c) Hazardous Duty Pay. (1) For the biennium beginning September 1, 1995, the Agency is authorized to pay hazardous duty pay at a rate of $7.00 per month for each year of State service up to and including the 30th year for those employees authorized to receive hazardous duty pay. (2) Full-time employees and officials of the Parole Division who have routine direct contact with inmates/confinees of any penal or correctional institution or with administratively released prisoners subject to the jurisdiction or supervision of the Parole Division are authorized to receive hazardous duty pay. (3) All employees authorized hazardous duty pay shall be required to complete all training as may be prescribed by departmental policies. The appropriate Division Director may waive any portion or all of the training requirements. (d) Procedures for Custodial Officer Certification and Hazardous Duty Pay (1) The following employees are eligible for custodial officer certification and hazardous duty pay: (A) all persons classified as Correctional Officer I through Warden, including Training Officers; (B) all other employees assigned to work on a unit and whose job routinely requires direct contact with inmates/confinees. Examples include: Farm Managers, Livestock Supervisors, Maintenance Foremen, Shop Foremen, Medical Assistants, Food Service Supervisors, Stewards, Education Consultants, Commodity Specialists, and Correctional Counselors; (C) employees assigned to administrative offices whose job requires routine direct contact with inmates/confinees at least 50% of the time. Managers must document and submit the criteria used to verify this eligibility. Examples include: Investigators, Compliance Monitors, Accountants routinely required to audit unit operations, Sociologists, Interviewers, Classification Officers, and Supervisor Counselors; (D) administrative positions whose jobs require response to emergency situations involving inmates/confinees. Examples include: the Executive Director, Deputy Director, Institutional Division Director, some Assistant Directors, and not more than 25 Administrative Duty Officers. (2) Employees receiving custodial officer certification and hazardous duty pay on August 31, 1985, who do not meet the criteria in paragraph (1) of this subsection shall continue to receive custodial officer certification and be paid hazardous duty pay only for so long as they remain in their current position. A change in position, whether by promotion or otherwise, except by reclassification or title change required by the Legislature or State Classification Officer, to a position that does not qualify for custodial officer certification and hazardous duty pay under provisions of paragraph (1) of this subsection causes the person to become ineligible for such pay. (3) In requesting authorization to receive custodial officer certification and hazardous duty pay, the following procedures shall be followed. (A) The Employee Classification Section of the Huntsville Human Resources Department, or its successor office or function within the Agency, shall conduct a review of the position for which custodial officer certification and hazardous duty pay is sought and shall document conformance with the criteria listed in paragraph (1) of this subsection. (B) The Human Resources Department shall forward the request (complete with state title, working title, and job number) to the Executive Director or appropriate Division Director who shall review the request and approve or disapprove. Approved requests shall be presented to the Board of Criminal Justice at the next regular meeting of the Board. Disapproved requests shall be returned to the originating supervisor. (C) The Board shall take the request into consideration, review the conformance with paragraph (1) of this subsection, and either approve or disapprove the request. (D) Custodial officer certification shall become effective on the first day of occupancy in the position authorized to receive custodial officer certification and hazardous duty pay by Board action. (4) The Executive Director shall use the eligibility requirements listed in paragraph (1) of this subsection to determine custodial officer certification. The names of employees and the amount of service each performed as a custodial officer during each fiscal year shall be certified to the Employee Retirement System. (e) The department shall file a report annually with the Governor's Office and the Legislative Budget Office indicating the numbers and position titles of employees authorized to receive hazardous duty pay. sec.151.53. Multiple Employments With The State. (a) Purpose. The purpose of this section is to provide procedures regarding applications for and administration of multiple employments with the State of Texas by employees of the Texas Department of Criminal Justice (hereinafter, Agency). (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Multiple Employments-Simultaneous paid employment for more than one position with one or more State agencies. (2) Principal Employer-The Agency is considered the principal employer for all full-time employees. (3) Additional Employer-For employees whose principal employer is the Agency, the additional employer is the other State agency to which they are applying for multiple employment. (c) Procedures. (1) Qualifications. Multiple employments with the State are contingent upon there being no conflict between the office of or position with the principal employer and the additional employer. The proposed multiple employments must be of benefit to the Agency and to the State of Texas; Additional employment must not interfere with the performance of duties with the Agency. The employee's work hours or cycle will not be changed to accommodate additional employment unless there is a clear benefit to the Agency. (2) Application Procedures. Multiple employment may not commence until it is approved by the Texas Board of Criminal Justice. Approval is valid only while the employee remains in his or her current position within the Agency or in the approved additional position. If an employee changes positions or work schedule within the Agency or with the additional employer, a new request and Board approval will be required. The Agency shall establish a procedure for requests to be submitted and processed. (3) Administration. Upon Board approval of multiple employment, the Payroll Department will coordinate with the additional State Agency payroll department to ensure that there is an official record of Board approval and of the compensation to be received by the employee, including salary, bonus, per diem, or other types of compensation; and compliance with the provisions of the current General Appropriations Act. sec.151.71. Marking of State Vehicles of the Department of Criminal Justice. (a) Except as provided in subsections (b) and (c) of this section, all TDCJ vehicles shall be inscribed in accordance with Texas Civil Statutes, Article 6701m-1. (b) The purposes for not inscribing TDCJ vehicles are to legitimately maintain anonymity for law enforcement purposes, to avoid damage to a vehicle or danger to staff that could occur if it were identified as a TDCJ vehicle, or to avoid hindrance of TDCJ efforts in an emergency, such as an escape, attempted escape, or riot. Accordingly, the following vehicles are exempt from inscription: (1) vehicles used for surveillance, undercover work, or investigation of law or TDCJ policy violations by the Internal Affairs Division or other investigatory unit within TDCJ; and (2) vehicles assigned to officials holding administrative positions whose jobs require response to emergency situations involving offenders. (c) The department shall establish a procedure for determining whether a vehicle is subject to an exemption in subsection (b) of this section. If the executive director determines that a vehicle should be exempt but does not fit into an exemption under subsection (b) of this section, the executive director may authorize the non-inscription of the vehicle subject to ratification at the next regularly scheduled board meeting. Ratification may be by inclusion on the consent agenda of the board. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600489 Carl Reynolds General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 463-9693 37 TAC sec.151.21 The Texas Department of Criminal Justice proposes new sec.151.21, concerning prohibition on carrying weapons. The new section is proposed in response to the passage of Article 4413(29ee) , Revised Statutes, and authorized by Penal Code, sec.30.05, Attorney General Opinion Number DM-363 (August 30, 1995), and Attorney General Letter Opinion Number 95-058 (September 15, 1995). David P. McNutt, Assistant Director for budget and Management has determined that there will be no fiscal implications for state or local government because signs required will be manufactured by Texas Correctional Industries. Mr. McNutt also has determined that the public benefit anticipated as a result of enforcing the section as proposed will be safety on property owned by TDCJ and clarity of notice to handgun license holders of the rights of the property owner. There will be no effect on small businesses. There is no anticipated economic cost to persons required to comply with the section as proposed. Comments should be directed to Carl Reynolds, General Counsel, Texas Board of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from the general public should be received within 30 days of the publication of this proposal. The new section is proposed under the Government Code, s492.013, which grants general rulemaking authority to the Board. The proposal is in response to Article 4413(29ee), Revised Statutes, and authorized by Penal Code, sec.30. 05, Attorney General Opinion Number DM-363, and Attorney General Letter Opinion Number 95-058. Cross Reference to Statute: Article 4413(29ee), Revised Statutes. Penal Code, sec.30.05, Attorney General Opinion Number DM-363; Attorney General Letter Opinion Number 95-058. sec.151.21. Prohibition on Carrying Weapons. (a) Policy. (1) It is criminal trespass for a person to enter or remain on property of the Texas Department of Criminal Justice (TDCJ) with a deadly weapon on his person or in his vehicle. (2) It is a felony under Penal Code, sec.46.035, for a person licensed to carry a handgun under Article 4413(29ee), Revised Statutes, to carry a handgun on the premises of a correctional facility, regardless of whether the handgun is concealed. (3) In addition to the prohibitions in paragraphs (1) and (2) of this subsection, an employee of TDCJ is prohibited from carrying a firearm in a state-owned vehicle, and except as provided in the Use of Force Plan or other applicable agency policies, no employee may use or carry a firearm on his person or in his vehicle while on duty . (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Deadly weapon-A firearm or anything manifestly designed, made, or adapted for the purpose of inflicting death or serious bodily injury, or anything that in the manner of its use or intended use is capable of causing death or serious bodily injury. (2) Exempt employee-An employee in the position of warden, assistant warden, or an administrative position eligible for custodial officer certification and hazardous duty pay under sec.151.51(d)(1)(D) of this title (relating to Custodial Officer Certification and Hazardous Duty Pay Guidelines) . (3) Firearm-Any device designed, made, or adapted to expel a projectile through a barrel by using the energy generated by an explosion or burning substance or any device readily convertible to that use. (4) Handgun-Any firearm that is designed, made, or adapted to be fired with one hand. (5) Property of TDCJ- (A) land owned or leased by TDCJ; (B) a building owned, leased, contracted for, or operated by TDCJ, including a correctional facility, parole office, and office space; and (C) an area controlled or owned by TDCJ that is appurtenant to a building owned, leased, contracted for, or operated by TDCJ, such as a driveway, parking lot, walkway, or sidewalk. (c) Exceptions. (1) An exempt employee may carry a firearm in his vehicle for purposes of responding to emergency situations involving inmates or confinees, or on his person in the event of an actual emergency situation. (2) State-owned housing, other than Bachelor Officers' Quarters, is excepted from this rule, only to the extent that weapons are secured under lock and key within the house. (3) A person who is authorized by law, other than Article 4413(29ee), Revised Statutes, to carry a firearm, is excepted from this rule, including a security officer who has a defense to prosecution for Unlawful Carrying Weapons, sec.46.02, Penal Code. (4) The written consent of the executive director or his designee to an individual is effective to create an exception from this rule. (d) Duties of the Executive Director. (1) The executive director shall ensure that agency policies are consistent with this rule. Policies adopted to ensure the safety and security of correctional facilities may be more restrictive than this rule and may encompass weapons not covered by this rule. (2) The executive director shall ensure that signs are posted in English and Spanish to provide adequate notice of subsection (a)(1) and, where applicable, subsection (a)(2) of this section, stating: "IT IS A CRIME (MISDEMEANOR) FOR A PERSON TO ENTER OR REMAIN ON PROPERTY OF THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE WITH A DEADLY WEAPON, INCLUDING A DEADLY WEAPON ANYWHERE IN A VEHICLE." "IT IS A CRIME (FELONY) FOR A HANDGUN LICENSE HOLDER TO CARRY A HANDGUN ON THE PREMISES OF A CORRECTIONAL FACILITY." This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600486 Carl Reynolds General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 463-9693 Chapter 155. Reports and Information Gathering Subchapter B. Site Selection and Facility Names 37 TAC sec.155.21 The Texas Department of Criminal Justice (TDCJ) proposes new sec.155.21, concerning naming of TDCJ units and facilities. David P. McNutt, Assistant Director for Budget and Management has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. McNutt also has determined that for each year of the first five years the new rule as proposed is in effect the public benefit anticipated as a result of enforcing the new rule will be clear guidance for a community interested in influencing the name of a facility in the community. There will be no effect on small businesses. There is no anticipated economic cost to persons required to comply with the rule as proposed. Comments should be directed to Carl Reynolds, General Counsel, Texas Board of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from the general public should be received within 30 days of the publication of this proposal. The new section is proposed under the Government Code, s492.013, which grants general rulemaking authority to the Board. Cross Reference to Statute: Government Code, sec.492.013. sec.155.21. Naming of TDCJ Units and Facilities. (a) Purpose. The purpose of this section is to establish procedures for the naming of units and facilities of the TDCJ. (b) Policy. It is the policy of the Board to name units and facilities of the TDCJ based upon geographical location, function, and in recognition of persons who have contributed to the process of criminal justice in the State of Texas. Generally, the Board will name facilities for persons whose careers or actions were important to, and well known in, the locality of the unit/facility. However, the Board specifically reserves the right to choose a name other than any proposals submitted from the locality of the unit/facility. (c) Procedures. (1) Proposals for the naming of TDCJ units and facilities shall be thoroughly researched and coordinated as follows. (A) All proposals for the naming of TDCJ units and facilities must include the following information to be considered: (i) location of the unit/facility to be named; (ii) proposed name for the unit/facility; (iii) biographical sketch of the person; (iv) synopsis of the reasons, achievements, incidents and other justification forming the basis for the recommendation; and (v) approval from the individual or, if the individual is deceased, the individual's next-of-kin. (B) TDCJ staff will maintain a file on all requests and when necessary conduct a preliminary review of appropriate sources to determine the merit of each proposal. Staff shall also compile a packet of proposals for review by the Board, or a designated committee or liaison of the Board. (2) The Board will review the proposals submitted by staff and will select a name for the unit/facility being considered by a majority vote. Receiving public testimony on name selection shall be at the discretion of the Chairman. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600487 Carl Reynolds General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 463-9693 Chapter 163. Community Justice Assistance Division Standards 37 TAC sec.163.43 The Texas Board of Criminal Justice proposes an amendment to sec.163.43, Funding and Financial Management, concerning the eligibility of community supervision and corrections departments (CSCDs) for discretionary grant funds under Government Code, sec.509.011(b). The effect of the proposed amendment is to require the judges who manage CSCDs to hold open meetings when planning for or deliberating the expenditure of any state aid from the Department of Criminal Justice. David P. McNutt, assistant director for budget and management services of the Department of Criminal Justice, has determined that there will be no fiscal effect on state government for the first five-year period of operations. David P. McNutt has further determined that there will also be no fiscal effect on local government for the next five-year period, and that the implementation of this amendment will have no effect on small businesses, as they will not have to comply with the rule. Mr. McNutt also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the encouragement of open governmental action regarding the expenditure of state funds for community corrections programs. Compliance with this amendment will not impose any economic costs on individuals, as no individuals have a duty to comply. Comments should be directed to Carl V. Reynolds, General Counsel, Texas Board of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from the general public should be received within 30 days of the publication of this proposed amendment The amendment is proposed under the Government Code, sec.509.011, and by sec.492.013, giving the Board general rulemaking authority. Cross Reference to Statute: Government Code, sec.509.011 sec.163.43. Funding and Financial Management. (a) Funding. (1) Qualifying for TDCJ-CJAD funding. CSCDs qualify for TDCJ-CJAD state aid by: (A)-(D) (No change.) (E) the district judge(s) designating a fiscal officer to account for, disburse, and report on all CSCD funds ; and (F) in the case of qualifying to receive discretionary funds, the district judges committing to holding all meetings or deliberations regarding the receipt or expenditure of any TDCJ-CJAD state aid in substantial compliance with the Open Meetings Act, Government Code, Chapter 551, as though that act applied to meetings among members of the judiciary. (2)-(4) (No change.) (b)-(e) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 12, 1996. TRD-9600488 Carl Reynolds General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: February 23, 1996 For further information, please call: (512) 463-9693