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 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 17. Marketing and Development Division Texas Commodity Referendum Act 4 TAC sec.sec.17.1, 17.3-17.5, 17.7, 17.9 The Texas Department of Agriculture (the department) proposes amendments to sec.sec.17.1, 17.3-17.5, 17.7, and 17.9, concerning Texas Commodity Referendum Act, Chapter 41, Texas Agriculture Code, and commodity boards established under Chapter 41. The amendments are being proposed in order to clarify existing regulations and delete unnecessary language or language already stated in law. Katie Dickie, special assistant for producer relations, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Ms. Dickie also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be clarification and streamlining of rules relating to commodity boards. There will be no effect on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted to Katie Dickie, Special Assistant for Producer Relations, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed amendments in the Texas Register. The amendments are proposed under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules necessary for administration of the Code. The Texas Agriculture Code, Chapter 41, is affected by this proposal. sec.17.1. Certification of Commodity Organizations. (a) Within 21 days of the hearing, the commissioner may certify the organization by issuing an official certificate, ask for additional information, or deny certification in writing. If certification is denied, the organization must wait 120 days before petitioning the commissioner again.
    [Certification hearing request must be by mail. The commissioner of agriculture will notify by mail and has 30 days to schedule a public hearing. Notice of the hearing will be posted with the secretary of state's office and also notice will be posted on the entrance to the hearing room on the day of the hearing.] (b) If an organization is certified, it is required to submit an election plan for approval, which includes the notice it is required to publish in one or more newspapers having general circulation in the referendum area once a week for three weeks in a row. The election plan includes: (1) notices for newspaper publication as prescibed or approved by the commissioner; (2) a list of newspapers where notices will be published, giving preference to the areas of the greatest production of the specific commodity; (3) a timeline for newspaper notices, notices to county agents, referendum date and canvassing date; (4) a draft ballot; (5) a draft press releases announcing referendum; (6) a draft board member petition; and (7) information on whether the election will be conducted by mail or physical balloting.
      [The conduct of the hearing will be prescribed by the commissioner or by his authorized agents.] (c) The commissioner must be notified of biennial board elections and referenda to increase assessments at least 90 days prior to the voting date. All notices of such elections and referenda will be held in the same manner described in the initial referendum. In case of a referendum adding new territory, then notices will be handled in the same manner as the original referendum.
        [The purpose of the hearing shall be to determine whether or not: [(1) the commodity organization is representative of producers in the state or area; or [(2) the referendum proposed is in conformity with provisions of this Act. [(d) After hearing all testimony, the commissioner may elect to certify or not certify at that time or may elect to ask for additional information or desire additional time, before making a decision. [(e) If the organization is certified to hold a referendum, within 120 days a certificate of certification will be issued. If certification is refused, there will be a six-month waiting period before the same organization can request another certification hearing. [(f) If an organization is certified, it is required to publish a legal notice in the county seat newspaper of every county concerned, once a week for three weeks in a row. This notice must be published at least 60 days before the election and must be a detailed format approved by the commissioner of agriculture. Direct notice must also be given to the county agent of each county affected. In the case of biennial election of board members or increase in assessment propositions, the board may elect, with approval of the commissioner of agriculture, to run legal notice through newspapers within the area, having regional coverage, three weeks in a row, starting 60 days prior to the election. Also, press releases to area radio and television stations and direct written notice to county agents in each affected area. In case of a referendum adding new territory, then legal notice will be handled in the same manner as the original referendum.] sec.17.3. Conduct of Elections & semi; Ballots & semi; Canvass & semi, Reporting. [(a) The commissioner will make available instructions for form of ballot to be used and ballots shall be approved by the commissioner before being submitted to the voters. [(b) The commissioner will act as a "referee" to insure an efficient and honest election.] (a)
          [(c)] In case of mail election, no ballots will be valid if postmarked after midnight on the last day of the election. In physical ballot elections, no absentee ballot will be valid if postmarked after midnight three days before the election. (b)
            [(d)] In physical balloting, balloting locations must be open at hours prescribed by the commissioner
              [7:00 a.m. to 7:00 p.m. on the election day] and
                [,] an election official must be present at all times unless otherwise prescribed by the commissioner
                  . Ballot boxes must be locked and unopened until the canvassing
                    [canvass] committee supervises such opening. (c)
                      [(e)] Ballot must bear signature and the address of the producer to be valid. (d)
                        [(f)] Instruction for election officials and voters will be available in each election from the certified commodity organization and approved by the commissioner of agriculture. (e)
                          [(g)] Ballots in all propositions and elections will be counted by a committee consisting of a county judge (or representative)
                            from the area, a representative of the Texas Agricultural Extension Service, a representative of the certified commodity organization or board, and a representative of the Texas Department of Agriculture. (f)
                              [(h)] In all elections, results will be certified to the commissioner of agriculture for verification. (g)
                                [(i)] All ballots shall be locked in a container and stored with the county clerk's office in the county designated by the certified organization. If no contests or investigations arise out of the election within 45
                                  [60] days after the day of such election, the clerk shall destroy by shredding or burning and notify the organization and the commissioner by mail
                                    [by order of the commissioner of agriculture the ballots shall be destroyed by shredding or burning and witnessed by a representative of the certified organization and a representative of the Texas Department of Agriculture]. (h)
                                      [(j)] Whereas the closed stored container cannot be opened during a 45
                                        [60] day period without a court order, any contest of the election or investigation must be filed in district court in the area of the referendum and election within 30 days after the day ballots are counted. (i)
                                          [(k)] In any case, if a recount is allowed by the district judge, the judge shall have the power to impound said locked ballot boxes and appoint a new canvassing committee consisting of four new members from the same background of the original canvassing committee and a fifth member being a representative from the Attorney General's Office of the State of Texas. sec.17.4. Certification of the Board. After
                                            [Whereas, after] the commissioner certifies
                                              [has certified the] establishing [of] the commodity producers board and issues
                                                [issued] certificates of election to those elected board members, the board shall have after its first organization meetings, all board powers described in this Act. sec.17.5. Assessment of Funds. Assessment will be officially enacted the day the board notified
                                                  [notifies] appropriate collection points
                                                    [processors] of the commodity by registered or certified mail, that from then on the assessment will be collected on all production of that commodity within the assessment area, and remitted to the board once a month or as prescribed by the Board
                                                      . sec.17.7. Geographic Representation on Board. If geographic representation for board members
                                                        is desired in the original referendum it must be so stated in the original certified petition and hearing, whereas, in the case of an existing board, geographic representation or district representation plan may be adopted by the board with approval from the commissioner of agriculture at the time of election plan approval
                                                          [least 90 days before any biennial election]. sec.17.9. Penalty and Remedies. If any processor licensed with the department violates
                                                            [commissioner is in violation of] this Act by failing to promptly remit
                                                              [pertaining to the prompt remittance of] assessments, the commissioner is authorized to suspend, revoke, or deny a license in any case in which he determines, after opportunity for a hearing, that there has been violation of or failure to comply with the requirements of this Act or the regulations promulgated thereunder. The commissioner, whenever he deems necessary, may suspend a license temporarily without hearing, for a period not to exceed 30 days. When a license is revoked, the processor shall terminate, in the manner prescribed by the commissioner, all arrangements covering storing, shipping, or handling of said commodity in the warehouse or auction barn or other collection point
                                                                , covered by such license, but shall be permitted, under the direction and supervision of the commissioner, to deliver the commodity previously received. During any suspension of a license, the processor may, under the direction and supervision of the commissioner, operate the warehouse, but shall not receive
                                                                  [received] commodities for storing,
                                                                    shipping, or handling during the term of such suspension. 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 22, 1996. TRD-9600883 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-7583 4 TAC sec.17.2, sec.17.10 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Agriculture or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Department of Agriculture (the department) proposes the repeal of sec.17.2 and sec.17.10, concerning Texas Commodity Referendum Act, Chapter 41, Texas Agriculture Code, and commodity boards established under Chapter 41. The repeals are being proposed in order to delete unnecessary language or language already stated in law. Katie Dickie, special assistant for producer relations, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals. Ms. Dickie also has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be clarification and streamlining of rules relating to commodity boards. There will be no effect on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. Comments on the proposal may be submitted to Katie Dickie, Special Assistant for Producer Relations, Texas Department of Agriculture, P. O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed amendments in the Texas Register. The repeals are proposed under the Texas Agriculture Code, sec.12.016, which provides the Texas Department of Agriculture with the authority to adopt rules necessary for administration of the Code. The Texas Agriculture Code, Chapter 41, is affected by this proposal. sec.17.2. Voter Eligibility. sec.17.10. Adding New Territory. 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 22, 1996. TRD-9600882 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-7583 TITLE 10. COMMUNITY DEVELOPMENT Part I. Texas Department of Housing and Community Affairs Chapter 53. Home Investment Partnership Program 10 TAC sec.sec.53.50-53.62 The Texas Department of Housing and Community Affairs (Department) HOME Investment Partnerships (HOME) Program is proposing new sec.sec.53.50-53.62, concerning the requirements for application and distribution of funds available under federal and state laws and regulations for the HOME Program. The new sections define terms commonly used in the program, eligible applicants and activities, funding distribution and allocation methods, scoring process and criteria, and program administration. The new sections are proposed to define the process the program will use to distribute and administer HOME funds. Daisy Stiner, Director of Housing Programs, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules. Ms. Stiner also has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the rules will be to enhance the Department's ability to provide affordable housing throughout the State of Texas. There will be a beneficial effect in increasing the number of jobs available for small businesses in construction-related fields. The Department is unable to determine whether the administration of these rules will have any fiscal implications on persons required to comply with the rules as proposed. Comments on the proposal may be submitted to Joe B. Mann, HOME Program Manager, P.O. Box 13941, Austin, Texas 78711-3941, within 30 days of the date of this publication. The new sections are proposed under Title II of the Cranston-Gonzales National Affordable Housing Act of 1990 (42 United States Code, sec.sec.12701-12839) and 24 Code of Federal Regulations, Part 92, which provide the Texas Department of Housing and Community Affairs with the authority to promulgate rules. The new rules are pursuant to the authority at Texas Government Code, Chapter 2306; Acts of the 73rd Legislative Regular Session, Senate Bill 45, Chapter 141, page 292, effective May 16, 1993; and Act of the 73rd Legislative Regular Session, Senate Bill 1356, Chapter 725, page 2838, effective September 1, 1993. sec.53.50. Scope. The rules in this chapter apply to the use and distribution of HOME Investment Partnerships Program (HOME) funds. The United States Department of Housing and Urban Development (HUD) through the HOME Program provides funds to the State pursuant to Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990 (42 United States Code, sec. s12701- 12839), as may be amended, and HUD regulations at 24 Code of Federal Regulations (CFR), Part 92, as may be amended. The State's HOME Program is designed to: (1) focus on the areas with the greatest housing need described in the State Consolidated Plan; (2) provide funds for home ownership and rental housing through acquisition, new construction, rehabilitation, reconstruction, tenant-based rental assistance, and pre-development loans; (3) promote partnerships among all levels of government and the private sector, including non-profit and for-profit organizations; and (4) provide low and very low-income Texans with affordable, decent, safe and sanitary housing. sec.53.51. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Board-The governing board of the Texas Department of Housing and Community Affairs. Community Housing Development Organization (CHDO)-A private nonprofit organization that satisfies the requirements of 24 CFR 92.2, as certified by the Department. Consolidated Plan -The State Consolidated Plan prepared in accordance with 24 CFR Part 91, as may be amended, which describes the needs, resources, priorities and proposed activities to be undertaken with respect to certain HUD programs and is subject to approval annually by HUD. Cooperating Entity -An eligible applicant that the lead applicant has designated in its application to carry out certain functions in the HOME Program. The responsibilities of the cooperating entity must be specified in a Memorandum of Understanding signed by the lead applicant and the cooperating entity, and submitted with the application. Department-The Texas Department of Housing and Community Affairs. Expenditure-Documentation has been submitted by the Recipient to the Department for purposes of drawing funds from HUD's Cash/Management Information System (C/MIS) for work completed, inspected and certified as complete, and as otherwise required by the Department. Homebuyer Assistance -A form of assistance to non-profit organizations, CHDOs, units of general local government, and public housing agencies to provide funds to eligible homebuyers for the acquisition of affordable housing. HOME-The HOME Investment Partnerships Program pursuant to 42 United States Code, sec.sec.12701-12839 and HUD regulations at 24 Code of Federal Regulations, Part 92, as may be amended, and the rules promulgated hereunder. HUD-The United States Department of Housing and Urban Development, or its successor. Interim Construction Financing Assistance-A form of assistance to make funds available to HOME eligible applicants including non-profit organizations, CHDOs, units of general local government, for-profit housing organizations and sole proprietors, and public housing agencies for the purpose of constructing affordable housing units. Joint Venture-An agreement between a lead applicant and a cooperating entity formed to administer or implement a HOME program. Each applicant must be eligible to apply for HOME funds as defined by sec.53.52(a) of this title (relating to Applicant Requirements). Each applicant or Joint Venture must sign a Memorandum of Understanding which outlines the responsibilities of each participant in the implementation of HOME Program activities. Lead Applicant -An eligible applicant designated in a HOME application to assume contractual liability and legal responsibility as the recipient executing the written agreement with the State. Low-Income Families -Families whose annual incomes do not exceed 80% of the median income of the area, as determined by HUD, with adjustments for family size. Match-Eligible forms of non-federal contributions to a program or project in accordance with 24 CFR 92.220, as may be amended. NOFA-Notice of Funding Availability, published in the Texas Register. Owner-Occupied Housing Assistance-A form of assistance to nonprofit organizations, CHDOs, units of general local government, and public housing agencies for the purpose of rehabilitating or reconstructing existing owner- occupied housing. Participating Jurisdiction (PJ)-Any state or unit of general local government, including consortia as specified in 24 CFR 92.101, as may be amended, designated by HUD in accordance with 24 CFR 92.105, as may be amended. Program-Funding provided in the form of a contract to an eligible applicant for the purpose of administering more than one Project or assisting more than one household. Program Income -Funds received by the Department or Recipient as loan repayment in the form of interest or principal, funds received by Recipient(s) or the Department on behalf of Recipients who distribute their allocation in the form of a loan to owners, and funds recaptured from the sale of a HOME-assisted unit or Project. Project-A site or an entire building (including a manufactured housing unit), or two or more buildings, together with the site or sites on which the building or buildings are located, that are under common ownership, management, and financing and are to be assisted with HOME funds, under a commitment by the owner, as a single undertaking under 24 CFR Part 92. 2, as may be amended. Recipient-A sole proprietor, general or limited partnership, trust, firm, corporation, association, cooperative or other entity described in sec.53.52(a) of this title (relating to Applicant Requirements), and that is approved by the Department to administer a HOME Program subject to the terms and conditions of these rules. Rental Project Assistance-A form of assistance available to nonprofit organizations, CHDOs, units of general local government, for-profit housing development organizations and sole proprietors and public housing agencies for the acquisition, new construction, reconstruction or rehabilitation of multi- family or single family rental housing, or conversion of commercial property to rental housing. Rural Area-A rural area is: (A) open country which is not part of or associated with an urban area; (B) any town, village, city or place, including the immediately adjacent densely settled area which is not part of or associated with an urban area and which: (i) has a population not in excess of 10,000 if it is rural in character; or (ii) has a population in excess of 10,000 but not more than 20, 000, and is not contained within a Metropolitan Statistical Area (MSA) or a Primary Metropolitan Statistical Area (PMSA). Special Needs-Those individuals or categories of individuals determined by the Department to have unmet housing needs consistent with 42 USC sec.sec.12701 et seq, as may be amended, and as provided in the Consolidated Plan. Tenant-Based Rental Assistance (TBRA)-A form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. Unit of General Local Government-A city, town, county, or other general purpose political subdivision of the State; a consortium of such subdivisions recognized by HUD in accordance with 24 CFR Part 92.101; as may be amended, and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction. An urban county is considered a unit of general local government under the HOME Program. Very Low-Income Families-Low-income families whose annual incomes do not exceed 50% of the median family income for the area as established by HUD, with adjustments for family size. sec.53.52. Applicant Requirements. (a) Eligible Applicants. The following organizations or entities are eligible to apply for HOME eligible activities: (1) nonprofit organizations which have tax exemption ruling from the Internal Revenue Service under sec.501(c)(3) or (4) of the Internal Revenue Code of 1986; (2) CHDOs; (3) units of general local government; (4) for-profit entities and/or sole proprietors; and (5) public housing agencies. (b) Ineligible Applicants: Previously funded Recipient(s) whose HOME funds have been partially or fully deobligated during the 12 months prior to the current funding cycle; applicants who have not satisfied all threshold requirements described in subsection (c) of this section; applicants who have submitted incomplete applications; or as otherwise barred by the Department. (c) Threshold requirements: An applicant must satisfy each of the following requirements in order to be eligible to apply for HOME funding. (1) provide evidence of its ability to carry out the Program in the areas of financing, acquiring, rehabilitating, developing or managing affordable housing developments. (2) demonstrate fiscal, programmatic, and contractual compliance on previously awarded Department contracts or loan agreements. (3) resolve any previous audit findings and outstanding monetary obligations with the Department (4) demonstrate reasonable HOME Program expenditure and project performance on open contract(s), as determined through program monitoring. Evidence of expenditure and project identification is submitted with the application, and is reconciled with the Department's C/MIS reports during the application review process; and (5) demonstrate satisfactory performance otherwise required by the Department and set out in the application guidelines. sec.53.53. Application Limitations.
                                                                      Except as otherwise provided herein, an applicant may only submit one application per funding year and eligible activity. An eligible applicant may apply for several eligible activities provided that the total amount requested for all activities does not exceed the funding limits established in this section. An eligible applicant submitting an application for Rental Project Assistance may not submit another application for any other eligible activity. Only CHDOs or non-profit organizations may submit more than one application per activity; however, they must apply as a Joint Venture as defined in sec.53.51 of this title (relating to Definitions), and the program/project must be located in a different area. Each new Joint Venture with a different eligible applicant is regarded as a separate applicant. Application limits are established below. The Department reserves the right to reduce the amount requested in an application based on program/project feasibility and/or underwriting analysis. (1) Application amount for Owner-Occupied Housing Assistance, Homebuyer Assistance, Tenant-Based Rental Assistance, and Interim Construction Financing Assistance shall not exceed $500,000, except as otherwise allowed by the Board. (2) Application amount for Rental Project Assistance shall not exceed $1 million except as otherwise allowed by the Board. (3) Per unit subsidy for all HOME-assisted housing may not exceed the per- unit dollar limits established by HUD under sec.221(d)(3) of the National Housing Act which are applicable to the area in which the housing is located. sec.53.54. Program Restrictions. (a) Owner-Occupied Housing Assistance: Assisted homeowners must be low-income and must occupy the property as their principal residence. Housing assisted with HOME funds must meet all applicable local codes and standards, and, at a minimum, Section 8 Housing Quality Standards. In addition, housing that is reconstructed or substantially rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances in accordance with 24 CFR 92.251(a), as may be amended. (b) Homebuyer Assistance: HOME funds utilized for Homebuyer Assistance are subject to the Department's recapture restrictions as approved by HUD in the Consolidated Plan and as outlined in the application guidelines. The eligible uses for Homebuyer Assistance are down-payment assistance, closing cost assistance and gap financing. The total assistance provided per eligible homebuyer may not exceed $5,000, unless otherwise allowed by the Board. (c) Rental Project Assistance: Owners of rental units assisted with HOME funds must comply with income and rent restrictions pursuant to HOME rules and guidelines and keep the units affordable for a period of time, depending upon the amount of HOME assistance provided. Housing assisted with HOME funds must meet all applicable local codes and standards, and, at a minimum, Section 8 Housing Quality Standards. In addition, housing that is newly constructed or substantially rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances in accordance with 24 CFR 92.251(a), as may be amended. (d) Tenant-Based Rental Assistance: Recipients must comply with 24 CFR 92.211 and 92.216, as may be amended. (e) Interim Construction Financing Assistance: Newly constructed housing must meet all applicable local codes, Section 8 Housing Quality Standards, ordinances, and zoning ordinances in accordance with 24 CFR 92.251(a), as may be amended. An eligible applicant that applies for Interim Construction Financing Assistance may also apply for Homebuyer Assistance. (f) CHDO Pre-Development Loans: The Department may set-aside up to 10% of the CHDO 15% Set-Aside for pre-development loans in accordance with 24 CFR 92.301, as may be amended. Funds for pre-development loans are available only when provided in conjunction with a Rental Housing Assistance application and may only be used for activities such as project-specific technical assistance, site control loans, and project-specific seed money. Pre-development loans must be repaid from construction loan proceeds or other project income. In accordance with 24 CFR 92.301, as may be amended, the Department may elect to waive pre- development loan repayment, in whole or in part, if there are impediments to project development that the Department determines are reasonably beyond the control of the CHDO. sec.53.55. Prohibited Activities.
                                                                        In accordance with 24 CFR 92. 214, as may be amended, HOME funds may not be used to: (1) provide a project reserve account for replacements or increases in operating costs, or operating subsidies; (2) provide TBRA for existing Section 8 Programs; (3) provide non-federal matching contributions for other programs; (4) provide assistance to Public Housing Agency owned or leased projects; (5) carry out Public Housing Modernization; (6) provide pre-payment of low-income housing mortgages under 24 CFR Part 248, as may be amended; (7) provide assistance to a project previously assisted with HOME funds during the period of affordability; and (8) provide funds to reimburse an applicant for acquisition costs for a property already owned by the applicant. sec.53.56. Distribution of Funds. In accordance with 24 CFR 92. 201(b)(1), as may be amended, the Department will make every effort to distribute HOME funds throughout the state according to the state's assessment of the geographic distribution of housing needs, as identified in the Consolidated Plan. The Department will take into consideration the non-metropolitan share of the state's total population and objective measures of rural housing need, such as poverty and substandard housing. Applicants may submit applications for programs or projects located in a PJ, however, the Department will give priority for funding to non-participating jurisdictions. If funds remain in a region or activity after all non-PJ applications that meet or exceed threshold have been funded, then the funds may be transferred to another region or activity, or the Department may consider funding PJ applications that meet or exceed threshold. The Department may distribute HOME funds by direct award or through competition. (1) CHDO Set-Aside: In accordance with 24 CFR 92.300 as may be amended not less than 15% of the HUD-provided HOME allocation is set aside by the Department for CHDO eligible activities, specifically where the CHDO will perform the role of developer, owner, or sponsor. Funded CHDO applicants for set-aside activities are eligible for a proportionate amount of the available operating expenses. CHDO set-aside funds will be reserved within the HOME activity allocations eligible for the CHDO set-aside as sub-allocations for those activities. The sum of all sub-allocations must not be less than the 15% requirement. If an insufficient number of qualified applications are received by the deadline, the Department reserves the right to hold additional competitions in order to meet federal set-aside requirements. (2) Special Needs Set-Aside: In accordance with the Consolidated Plan, funds will be available to units of general local government, CHDOs, public housing authorities, and nonprofit organizations with a documented history of working with special needs populations and relevant housing related experience. Eligible applicants may submit applications for: Owner-Occupied Housing Assistance, Homebuyer Assistance, Tenant-Based Rental Assistance, and Rental Project Assistance. Special-Needs set-aside funds will be reserved within the HOME activity allocations eligible for the Special Needs set-aside as sub-allocations for those activity funds. If an insufficient number of qualified applications are received, the Department reserves the right to transfer funds remaining in the set-aside to another eligible activity. (3) Redistribution. In an effort to commit HOME funds in a timely manner, the Department may reallocate funds set-aside in the Consolidated Plan, in its own discretion, to other regions or activities if: (A) the Department fails to receive a sufficient number of applications from a particular region or activity; (B) no applications are submitted for a region; or (C) applications for a region or activity do not meet or exceed the minimum standards or scores, as applicable. (4) Marginal Applications. When the remainder of the allocation within a region or program set-aside in the Consolidated Plan is insufficient to completely fund the next ranked application in the region or activity, it is within the discretion of the Department to: (A) fund the next ranked application for the partial amount, reducing the scope of the application proportionally; or (B) transfer the remaining funds to other regions or programs. (5) HOME Demonstration Fund. The Department, with Board approval, may reserve HOME funds to combine and coordinate with other programs administered by the Department as outlined in the Consolidated Plan, or for housing activities the Department is permitted to fund under applicable law. sec.53.57. Allocation Plan.
                                                                          Upon notification of HOME Program funding authorization by HUD, the Board will approve a HOME Program allocation plan reflecting the federal award amount and the proposed distribution of funds by HOME activity, and which shall be published each HOME Program funding year in the Texas Register
                                                                            . The funding allocation plan, approved by the Board and published in the Texas Register
                                                                              , will be based on the funding recommendations in the Consolidated Plan. sec.53.58. Application Process.
                                                                                An eligible applicant must submit a completed application to be considered for funding, along with an application fee determined by the Department. Upon receipt, applications are reviewed for completeness. Incomplete applications (information not provided in the application as requested by the Department) and applications containing false information are disqualified. Disqualified applicants are notified in writing. sec.53.59. Process for Direct Awards. (a) The proposed program/project design in the application must comply with all applicable HOME requirements or regulations established in 24 CFR Part 92, as may be amended, and in these rules. Applicants with program/project designs that do not comply with such requirements will not be considered for funding. (b) Rental project applications must receive an underwriting analysis by the Department. A site visit may be conducted as part of the HOME Program feasibility and underwriting analysis. (c) Applications receiving a favorable staff recommendation are then presented to the Board for approval, pending the availability of HOME funds. sec.53.60. Process for Awards made by Competition. (a) The Department will publish a NOFA in the Texas Register
                                                                                  . The NOFA will establish a deadline for receiving applications and indicate the approximate amount of available funds. (b) Selection Procedures for Owner Occupied Housing Assistance, Homebuyer Assistance, and Tenant-Based Rental Assistance. (1) The proposed program design in the application must comply with all applicable HOME requirements or regulations established in 24 CFR Part 92, as may be amended, and in these rules. Applicants with program designs that do not comply with such requirements are disqualified. Disqualified applicants are notified in writing. (2) Applications are ranked from highest scores to lowest in their respective regions or activity according to the average of three HOME Program scores. CHDO Set-Aside scores are ranked from highest to lowest in each CHDO-eligible activity on a statewide basis. (3) Applications that meet or exceed a minimum score of 60% of the total HOME Program score established for the respective activities are considered for funding. (4) Applications receiving a favorable staff recommendation are then presented to the Board for approval, pending the availability of HOME funds for such activity. (5) In event of a tie between two or more applicants, the Department, with Board approval, reserves the right to determine which application will receive funding based on housing need factors and feasibility of the proposed project identified in the application. (c) Selection Procedures for Rental Project Assistance and Interim Construction Financing Assistance: (1) Applications are reviewed by the Department to ensure that the proposed rental housing project or the proposed interim construction program meets applicable HOME requirements. Applications with program designs that do not comply with HOME requirements are disqualified. Disqualified applicants are notified in writing. (2) Applications that meet or exceed a minimum score of 60% of the total HOME Program scoring points established for each Rental Assistance and Interim Construction Assistance program are considered for further processing. Applicants not meeting or exceeding the minimum score established in this section are disqualified and are notified in writing. (3) Applications meeting or exceeding the minimum HOME Program requirements established in paragraph (2) of this subsection must receive an underwriting analysis by the Department. A site visit may be conducted as part of the HOME Program feasibility and underwriting analysis. Applicants must receive recommendation for approval from the Department to be considered for HOME funding by the Board. (4) Applications receiving a favorable staff recommendation are then presented to the Board for approval, pending the availability of HOME funds for such activity. (5) In event of a tie between two or more applicants, the Department, with Board approval, reserves the right to determine which application will receive funding based on housing need factors identified in the application. (6) Board approval for the award of HOME Rental Project Assistance funds is conditional upon a completed loan closing. sec.53.61. General Selection Criteria. The following criteria is utilized in evaluating the applications for HOME funds. The applicable criteria is further delineated in the application guidelines, which are part of the application package: (1) Needs Assessment-Whether the proposed project meets the demographic, economic, and special need characteristics of the population residing in the target area and the need that the HOME program is designed to address, using qualitative and quantitative information, market studies, if appropriate, and other source documentation as delineated in the application guidelines, which are part of the application. (2) Program Design-Whether the proposed project meets the needs identified in the needs assessment, whether the design is complete (including timeline for program implementation and service delivery), and whether the project fits within the community setting. Information required includes, but is not limited to: community involvement; support services and resources; scope of program; income and population targeting; marketing, fair housing and relocation plans, as applicable. (3) Capability of Applicant-Whether the applicant has the capacity to administer and manage the proposed program/project, demonstrated through previous experience either by the applicant, cooperating entity or key staff (including other contracted service providers), in program management, property management, acquisition, rehabilitation, construction, real estate finance counseling and training or other activities relevant to the proposed program, and the extent to which applicant has the capability to manage financial resources, as evidenced by previous experience, documentation of the applicant or key staff, and existing financial control procedures. (4) Financial Design-Whether the proposed program budget includes eligible forms of matching contributions in accordance with 24 CFR 92.220, as may be amended, and program leveraging. sec.53.62. Program Administration. (a) Agreement. Upon approval by the Board, applicants receiving HOME funds shall enter into, execute, and deliver to the Department all written agreements between the Department and Recipient, including land use restriction agreements and compliance agreements as required by the Department. (b) Amendments. The Department, acting by and through its Executive Director, may authorize, execute, and deliver modifications and/or amendments to any HOME written agreement provided that any such modification and/or amendment does not exceed 25% of the original award. Modifications and/or amendments exceeding 25% will be presented to the Board for approval. (c) Deobligation. (1) The Department reserves the right to deobligate funds upon the happening of one of the following events: (A) Recipient has any unresolved compliance issues on existing or prior HOME contract with the Department. (B) Recipient fails to set-up programs or expend funds in a timely manner. (C) Recipient defaults on any agreement by and between Recipient and the Department. (D) Recipient misrepresents any facts to the Department during the HOME application process, award of contracts, or administration of any HOME contract. (E) Recipient's inability to provide adequate financial support to administer the HOME contract or withdrawal of significant financial support. (F) Recipient is not in compliance with 24 CFR Part 92, as may be amended, or these rules. (G) Recipient declines funds. (2) When the Department determines that funds are to be deobligated, the following procedures will apply: (A) Recipient is notified in writing that the Department is recommending the deobligation of funds for the identified reasons defined in this subsection. (B) Recipient has 30 days from the date of the letter to respond to the notice. (C) The Department reviews pertinent correspondence, including Recipient's response, investigation reports and findings, prior to a final recommendation to the Board to deobligate funds. (D) Recipient is notified in writing of the Department's recommendations to deobligate funds. A Recipient is notified of the date and time of the meeting of the Board at which time a determination will be made by the Board. (E) The Department makes recommendation to the Board for deobligating funds, and the Recipient is notified of the Board's determination. (3) The Department, with approval of the Board, may elect to reassign funds to the next funding cycle for award to new applicants or reallocate deobligated funds to any of the following: (A) An entity within the same target area, to continue the program as originally designed. (B) The Recipient with the highest expenditure rate for the same activity in the same region. (C) The next ranked eligible applicant within the current funding cycle, if the applicant is prepared to start the program in a timely manner. (4) The amount of deobligated funds awarded to a Recipient may not exceed the maximum limits established in sec.53.53 of this title (relating to Application Limitations). (d) Waiver. Upon determination of good cause, the Department, upon approval of the Board, may waive all or any part of these rules that are within the discretion of the State. (e) Additional Funds. In the event the Department receives additional funds from HUD, the Department, with Board approval, may elect to distribute funds to other Recipients. 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-9600886 Larry Paul Manley Executive Director Texas Department of Housing and Community Affairs Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 475-2135 TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 1. Practice and Procedure Subchapter C. Docketing, Notice, and Service 16 TAC sec.1.49 The Railroad Commission of Texas proposes new sec.1.49, concerning service of process, notice of hearing, default, and motion for rehearing practice in oil and gas contested cases brought by the Legal Enforcement Section of the Office of General Counsel. The proposed new rule sets out legal standards and procedures for service of process, answers, requests for hearing, the setting of hearings, the issuance of default final orders, and motions for rehearing in oil and gas enforcement cases. Under the new rule, hearings will no longer be automatically set in most oil and gas enforcement cases until the respondent files a hearing request or an answer to the original complaint. The new rule also makes clear that motions for rehearing may be made on equitable grounds or on grounds that there is error in the commission's final order. Dwight Martin, assistant director, Legal Enforcement Section, Office of General Counsel, has determined that for each year of the first five years the proposed new rule are in effect, there will be no fiscal implications for state government as a result of enforcing or administering it. There will be no fiscal implications for local government or cost of compliance with the proposed new rule for small businesses as a result of its adoption. Mr. Martin also has determined that for each year of the first five years that the proposed new sec.1.49 is in effect, the public will benefit from speedier prosecution of commission oil and gas enforcement cases, and members of the regulated community will benefit from a clear statement of the legal standards and procedures applicable to those cases, both of which are anticipated to reduce administrative costs, increase efficiency, and enable the commission to better protect surface or subsurface waters of the state from pollution. There is no anticipated economic cost to persons required to comply with the proposed new rule. Comments on proposed new sec.1.49 should refer to docket number 20-0211024 and should be submitted to Dwight Martin, Assistant Director, Legal Enforcement Section, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas, 78711-2967. The deadline for filing comments is February 26, 1996, or 30 days after publication in the Texas Register, whichever is later. The new section is proposed pursuant to Texas Government Code, sec.2001. 004(1), which requires the commission to adopt rules of practice stating the nature of all available formal and informal procedures, and Texas Natural Resources Code, sec.81.052, which authorizes the commission to adopt all necessary rules for governing persons and their operations under the jurisdiction of the commission. The following codes are affected by this proposed new sec.1.49: Texas Government Code, sec.2001.004(1); and Texas Natural Resources Code, sec.81.052. sec.1.49. Service of Process; Notice of Hearing; Default; and Motions for Rehearing in Oil and Gas Contested Cases Brought by the Legal Enforcement Section. (a) Commencement of a contested case. (1) Enforcement contested cases are commenced by sending the original complaint to the respondent via certified and regular first-class mail. In cases against foreign or non-resident respondents, the complaint will also be sent to the resident agent listed on the respondent's most recently filed Organization Report (Form P-5). The complaint will be accompanied by a letter stating that the commission believes the respondent has violated commission rules or statutes as set forth in the original complaint; that the respondent may, within 30 days of the date of service, file an answer or request a hearing to contest the allegations of the original complaint; and that the respondent may wish to hire an attorney or other representative or choose to appear on its own behalf. The commission may offer to settle the case via an agreed order. The letter will state that if, on 31st day after the date of service, the respondent has not entered into an agreed order, filed an answer to the original complaint, or requested a hearing, a default final order may thereafter be issued against respondent without further notice. (2) When there is actual pollution or injury to the public health and safety, or an imminent threat thereof, a hearing may be set and notice of the hearing sent with the original complaint. The notice will state that if the respondent fails to appear at the hearing, a default final order may be issued against respondent without further notice. (b) Filing of answer or request for hearing; setting of hearing. A request for hearing shall serve as a general denial of the allegations in the original complaint. An answer or request for hearing is timely if filed with the Docket Services Section of the Office of General Counsel before a default final order is issued by the commission. Except in cases brought under subsection (a)(2) of this section, the Legal Enforcement Section will set a hearing on a date at least 30 days after receipt of a timely answer or hearing request. (c) Notice of hearing. Notices of hearing will be sent along with the original complaint to respondents or their representatives in all cases brought under subsection (a) (2) of this section. In other cases, notices of hearing will be sent, along with a current Legal Enforcement Section pleading, only after the respondent or its representative has timely filed a request for hearing or an answer. The notice will be sent to the address from which the request or answer was received, and will state that if the respondent fails to appear at the hearing, a default final order may be issued against respondent without further notice. (d) Default order upon failure to answer, request hearing, or appear at hearing. (1) If the respondent fails to answer the original complaint, request a hearing, or appear at a scheduled hearing, a default final order may be issued by the commission without further notice. (2) Default final orders will contain findings of fact and conclusions of law sufficient to support the relief ordered. (3) No default final order shall be issued until the returned certified mail receipt (green card) attached to the original complaint or the notice of hearing, or the returned certified mail containing the complaint or the notice, has been on file with the commission for 15 days, exclusive of the day of receipt and day of issuance. Default final orders need not be individually signed in each case by the commissioners if the case is listed by docket number and summarized on a Master Default Order. (e) Motions for rehearing in Oil and Gas enforcement default cases. Motions for rehearing in oil and gas enforcement default cases may be made on equitable grounds or on grounds that there is error in the final order. (f) Non-applicability of this section to emergency situations. The existing power of the commission to remedy and seek reimbursement for remediation of any condition which threatens the public health and safety, or to order an operator to remedy said condition, shall not be affected by 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 18, 1996. TRD-9600733 Mary Ross McDonald Acting General Counsel, Office of General Counsel Railroad Commission of Texas Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-7008 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 9. Title Insurance Subchapter A. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas 28 TAC sec.9.1 The Texas Department of Insurance proposes an amendment to sec.9.1 which concerns amendments to the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (the Basic Manual). The amended section is necessary to reflect amendments to the Basic Manual, which the section adopts by reference. The amendment consists of proposed modifications to Administrative Rules L-1, L-2, L-3, D.1, G.1, and G.2 concerning the requirements for licensing title insurance agents under the Insurance Code, Articles 9.36 and 9.37; title insurance escrow officers under the Insurance Code, Articles 9.42, 9.43, and 9.44; and direct operations under the Insurance Code, Article 9.36A. Administrative Rules L-1, L-2 and L-3 establish requirements for issuance, cancellation, renewal, change in operations and additional appointments for title insurance agents, title insurance escrow officers, and direct operations. In Administrative Rules L-1, L-2, and L-3 the procedure for cancellation of a license is being revised to require that the entity requesting cancellation send a letter indicating the reasons for cancellation of the license as a mandatory requirement for granting the cancellation. This change in the cancellation procedure is necessary to ensure that information regarding malfeasance by a title insurance agent, escrow officer or direct operation as a ground for license cancellation is reported to the department. Administrative Rules L-1, L-2, and L-3 are also amended to implement changes to the Insurance Code occasioned by House Bill 1461, as enacted by the 73rd Legislature, which provides that a staggered license renewal system may be adopted under the Insurance Code, Article 21.01-2. The current procedure for renewal of title insurance agents' licenses, escrow officers' licenses, and direct operations' licenses is being revised to convert to a staggered renewal system to uniformly distribute the number of license expirations and renewals over a 12-month time period. Under the present license renewal system, all title insurance licenses expire on the same day (June 1st) of each year. A single renewal date system requires the department to process a large number of renewals in a very short period of time to provide the renewal licenses in a timely manner. Changing the renewal system to a staggered renewal system where the processing of renewal applications is spread over a 12-month time period rather than all renewals being processed in a single month, will eliminate license processing overloads allowing more efficient use of department staff time and expedite the issuance of licenses to the applicants. Administrative Rule L-1 is also amended to include pertinent language relating to letters of credit issued by a financial institution in this state and insured by an agency of the United States Government. The proposal changes references from the State Board of Insurance to the Texas Department of Insurance as consistent with the requirements of House Bill 1461. The amendments also correct various typographical and grammatical errors that currently exist in the Basic Manual. David Durden, deputy commissioner for property and casualty lines, has determined that for the first five-year period the proposal is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Durden has determined that there may be a small fiscal impact on one title insurance underwriter with respect to the proposed conversion to the staggered renewal system. One underwriter estimated that for the first five-year period the proposal is in effect it would cost $2,600 in new software and labor to convert to the staggered renewal system. Out of the six underwriters reporting on the fiscal impact of converting to a staggered renewal system, five underwriters reported that it would have no fiscal impact while one underwriter reported $2,600 in conversion expenses. Four title insurance agents were also consulted regarding the fiscal impact of converting to a staggered renewal system and all reported that it would have no fiscal impact. Mr Durden has further determined that there will be no other implications for the local economy and no impact on local employment as a result of administering the proposed section. Mr. Durden also has determined that for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amendment will be a more efficient and cost effective system of licensing title insurance agents, title insurance escrow officers and direct operations. One of the most important benefits of the staggered renewal system for licensees will be that individuals who hold both title agent and escrow officer licenses will have the same renewal date for both licenses. This will simplify license renewal and the monitoring of continuing education credits necessary to maintain these licenses. There is no anticipated economic cost to persons or business entities who are required to comply with the section as proposed. Comments on the proposal to be considered by the department must be submitted within 30 days after publication of the proposed section in the Texas Register to Alicia M. Fechtel, General Counsel and Chief Clerk, Texas Department of Insurance, P.O. Box 149104, Mail Code 113-2A, Austin, Texas 78714-9104. An additional copy of the comment should be submitted to David Durden, Deputy Commissioner for Property and Casualty Lines, Mail Code 103-1L, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. Request for a public hearing should be submitted separately to the Chief Clerk's office. The amendment is proposed under the Insurance Code, Articles 9.36, 9.42, 9. 43, 9.36A, 21.01-2, and 1.03A and the Government Code, sec.sec.2001.004 et seq. Article 9.36 authorizes the department to accept applications, issue, renew, and cancel title insurance agents' licenses and provides for a staggered renewal system to be adopted under Article 21.01-2. Article 9.42 authorizes the department to adopt a system of staggered renewal for escrow officers' licenses under Article 21.01-2. Article 9.43 authorizes the department to accept applications for escrow officers' licenses and to grant such license. Article 9.36A authorizes the department to accept applications, issue, and renew direct operations' licenses and provides for the adoption of a staggered renewal system under Article 21.01-2. Article 21.01-2 authorizes the commissioner by rule to adopt a staggered renewal system under which licenses expire on various dates during a licensing period. Article 1.03A authorizes the commissioner to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. The Government Code, ssec.2001.004 et seq (Administrative Procedure Act) authorizes and requires each state agency to adopt rules of practice setting forth the nature and requirements of available procedures and to prescribe the procedure for adoption of rules by a state administrative agency. The following statutes are affected by this proposal: Insurance Code, Articles 9.36, 9.37, 9.42, 9.43, 9.44, 9.36A, and 21.01-2 sec.9.1. Basic Manual Of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas. The Texas Department of Insurance adopts by reference the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas as amended effective March 1, 1996
                                                                                    [August 1, 1995]. The document is published by and is available from Hart Information Services, 11500 Metric Boulevard, Austin, Texas 78758, and is available from and on file at the Texas Department of Insurance, Title Insurance Section, Mail Code 105-3B, 333 Guadalupe Street, Austin, Texas 78701-1998. 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 22, 1996. TRD-9600890 Alicia M. Fechtel General Counsel and Chief Clerk Texas Department of Insurance Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-6327 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part III. Texas Youth Commission Chapter 88. Special Management Programs 37 TAC sec.88.1 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Youth Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Youth Commission (TYC) proposes the repeal of s88.1, concerning special management and treatment program for assaultive youth. This section is being repealed and a new replacement section proposed in this publication to allow changes in rules of operation which are more consistent with legislative intent and agency mission regarding committed juvenile delinquents. John Franks, Director of Finance, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Franks also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be the replacement by a new rule which encourages more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The repeal is proposed under the Human Resources Code, s61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the accomplishment of its functions. The proposed repeal implements the Human Resource Code, s61.034. sec.88.1. Special Management and Treatment Program for Assaultive Youth. 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 18, 1996. TRD-9600735 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 The Texas Youth Commission (TYC) proposes new sec.88.1, concerning special management and treatment program for assaultive youth. The new section will provide guidelines for TYC staff to determine when a TYC youth is eligible for the special management and treatment program. John Franks, Director of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Franks also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The new section is proposed under the Human Resources Code, sec.61.075, which provides the Texas Youth Commission with the authority to order confinement under conditions it believes best designed for the child's welfare and the interests of the public. The proposed rule implements the Human Resource Code, sec.61.034. sec.88.1. Special Management and Treatment Program for Assaultive Youth. (a) The Texas Youth Commission (TYC) provides a special management and treatment program for youth residing in TYC operated institutions who are assaultive or self destructive. The program is provided within each institutional setting for youth whose continued presence in the general population poses a serious threat to life, property, self, staff, or other youth. Youth who do not respond to regular program services including security admission for short term crisis intervention, may be admitted to a special management and treatment program for aggressive and assaultive behaviors. The program is comprised of a strong counseling component and a system of graduated reintegration into the general population. (b) Youth considered for the special management and treatment program must meet admission criteria. Eligible youth are those who instigate or engage in one or more of the following behaviors: (1) assault of TYC staff; (2) one or more serious assaults on a student resulting in bodily injury; (3) willful destruction of property; (4) escape with exacerbating circumstances, e.g., aggravated assault, arson, or possession of a weapon; (5) serious self-abuse or engage in suicidal behavior. (c) A fact finding level II hearing is held to determine whether a youth meets behavioral criteria. (d) Program admission must be recommended by a mental health professional. The recommendation is based on a determination that the following criteria is met. (1) The youth poses a continuing risk for assaultive behavior, injury to self and/or destruction of property; and (2) less restrictive intervention is unlikely to manage the risk. (e) An individualized treatment program is developed for each youth. The plan consists of performance objectives which the youth must meet in order to be returned to the general population. (f) A youth who has once successfully completed the program shall not be returned unless admission criteria has been met for a different incident. 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 18, 1996. TRD-9600734 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 Chapter 93. General Provisions Death of a Youth 37 TAC sec.93.1 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Youth Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Youth Commission (TYC) proposes the repeal of s93.1, concerning death of a youth. This section is being repealed and a new replacement section proposed in this publication to allow changes in rules of operation which are more consistent with legislative intent and agency mission regarding committed juvenile delinquents. John Franks, Director of Finance, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Franks also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be the replacement by a new rule which encourages more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The repeal is proposed under the Human Resources Code, s61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the accomplishment of its functions. The proposed repeal implements the Human Resource Code, s61.034. sec.93.1. Death of a Youth. 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 18, 1996. TRD-9600737 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 The Texas Youth Commission (TYC) proposes new sec.93.1, concerning death of a youth. The new section will provide guidelines for responding to the death of a TYC youth, John Franks, Director of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Franks also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The new section is proposed under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the accomplishment of its functions. The proposed rule implements the Human Resource Code, sec.61.034. sec.93.1. Death of a Youth. (a) The Texas Youth Commission (TYC) responds to the death of a youth in a responsible and sensitive manner. (b) On the death of a youth residing in a TYC residential facility, the following actions are taken. (1) The following should be notified immediately: (A) local law enforcement officials; (B) program administrator/regional director; (C) executive director or designee; (D) the youth's family; and (E) the youth rights administrator. (2) The agency cooperates fully with any external investigation and conducts an internal investigation into the circumstances of the death. The investigation is conducted in accordance with alleged mistreatment policy. (3) An autopsy is sought by TYC staff who work with the medical examiner and the family as needed to arrange an autopsy. (4) The youth's family is responsible for burial arrangements. If the family is unable or unwilling to assume such responsibility, TYC will ensure an appropriate burial. (c) On the death of a youth residing in a home placement, the following actions are taken. (1) TYC staff is immediately notified. (2) An investigation by TYC is generally not conducted unless the youth was under the supervision of a TYC residential program staff or contract staff at the time of death. 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 18, 1996. TRD-9600736 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 Transportation of Youth 37 TAC sec.93.31 (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 Youth Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas Youth Commission (TYC) proposes the repeal of s93.31, concerning transportation of youth. This section is being repealed and a new replacement section proposed in this publication to allow changes in rules of operation which are more consistent with legislative intent and agency mission regarding committed juvenile delinquents. John Franks, Director of Finance, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. Mr. Franks also has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be the replacement by a new rule which encourages more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The repeal is proposed under the Human Resources Code, s61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the accomplishment of its functions. The proposed repeal implements the Human Resource Code, s61.034. sec.93.31. Transportation of Youth. 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 18, 1996. TRD-9600739 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 The Texas Youth Commission (TYC) proposes new sec.93.31, concerning transportation of youth. The new section will specify guidelines for transporting TYC youth among TYC facilities and community corrections programs. John Franks, Director of Finance, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Franks also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be more efficient agency operation. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Gail Graham, Policy and Manuals Coordinator, Texas Youth Commission, 4900 North Lamar Boulevard, P.O. Box 4260, Austin, Texas 78765. The new section is proposed under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the accomplishment of its functions. The proposed rule implements the Human Resource Code, sec.61.034. sec.93.31. Transportation of Youth. (a) Transportation of Texas Youth Commission (TYC) youth among its facilities and community corrections programs is coordinated by the statewide transportation unit, regional transportation, or individual programs. (b) The statewide transportation unit provides transportation primarily between programs involving an institution. The unit may provide courtesy transportation and may assist in coordinating transportation of youth between TYC programs not involving an institution, including interstate compact movements, and some new commitments. (c) Counties are responsible for transporting all new commitments to a TYC assessment unit and for providing all transportation necessary to meet requirements of a bench warrant. (d) Mechanical restraints will be used when youth are being transported by the transportation unit. They may be used during transportation by others when circumstances create a risk of escape or harm and in accordance with GOP.67.09, sec.91.59 of this title (relating to Use of Force). 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 18, 1996. TRD-9600738 Steve Robinson Executive Director Texas Youth Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 483-5244 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part XX. Texas Workforce Commission Chapter 801. Local Workforce Development Boards 40 TAC sec.801.2 The Texas Workforce Commission proposes new sec.801.2, concerning waivers which may be granted regarding service delivery, board staffing and developmental services. Only under exceptional circumstances will such waivers be allowed. The Labor Code, as amended by Chapter 655, Acts of the 74th Legislature, 1995, requires the Commission to establish objective criteria for the granting of waivers to local workforce development boards. C. Ed Davis, Deputy Administrator for Legal Affairs, has determined that for the first five years the section as proposed is in effect, there will be minimal fiscal implications as a result of enforcing or administering the rule. There will be no additional costs for state government as a result of enforcing or administering the rule. Reductions in costs to the state will depend on program consolidation and local involvement and cannot be estimated. Any costs to local governments choosing to operate under a plan including waivers are entirely within the control of the local government and cannot be estimated. Mr. Davis also has determined that for the first five years the section as proposed is in effect, the public benefit anticipated as a result of enforcing the section will be improved coordination of and access to workforce training and services programs at the local level. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Leslie Geballe, Intergovernmental Relations, Texas Workforce Commission Building, 101 East 15th Street, Room 662, Austin, Texas 78778, (512) 463-2213. The new section is proposed under Texas Civil Statutes, Labor Code, sec.302. 063, as amended by Chapter 655, Acts of the 74th Legislature, 1995, which direct the Texas Workforce Commission to develop objective criteria for the granting of waivers under Texas Civil Statutes, Government Code, sec.sec.2308.264, 2308.267, and 2308.312. No other statute, article or code will be affected by this proposal. sec.801.2. Waiver Requirements. (a) Purpose of Rule. The Workforce and Economic Competitiveness Act, sec.sec.2308.264, 2308.267, and 2308.312, Government Code, Texas Civil Statutes, sets forth prohibitions regarding service delivery, board staffing, and developmental services. Only under exceptional circumstances will waivers from such prohibitions be allowed. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly requires otherwise. (1) Board-A local workforce development board as created under the Workforce and Economic Competitiveness Act. (2) Developmental services-Program services designed to increase a participant's basic education and skill level, including adult basic education courses, GED preparatory courses, adult literacy programs, and occupational skills training. (3) One-Stop services-Services provided at a Career Development Center, established by a board, including: (A) access to labor market information in the workforce area; (B) individual education, training, and employment referral services; (C) assessment of individual needs and the development of an individual service strategy; (D) support services, including child care assistance, loans, and other forms of financial assistance required to participate in and complete training; (E) eligibility determination for state and federal benefit programs, including Food Stamp Employment and Training and unemployment insurance benefits; (F) job readiness programs; (G) life skills programs; (H) job search seminars; and (I) other employment services. (4) Person-Any individual, sole proprietorship, partnership, corporation or other legal entity. (5) Workforce education-Articulated career-path programs and the constituent courses of those programs that lead to initial or continuing licensing or certification or associate degree-level accreditation and that are subject to: (A) initial and ongoing state approval or regional or specialized accreditation; (B) a formal state evaluation that provides the basis for program continuation or termination; (C) state accountability and performance standards; and (D) a regional or statewide documentation of the market demand for labor according to employers' needs. (6) Workforce training and services-Training and services programs that are not "workforce education." Such services include intake and eligibility assessment, life skills training, job search seminars, and job readiness programs. (c) Independent Service Delivery. A board may not directly provide workforce training and services. (d) Separate Staffing. A board may employ professional, technical, and support staff to carry out its strategic planning, oversight, and evaluation functions. The board's staff shall be employed separately and independently of any organization which provides workforce education or workforce training and services in the workforce development area. Further, the board's staff may not be employed by, or provide services to, any other person in conflict with the board's duties and functions under the Act. (e) Developmental Services. A person who provides "one-stop" services at a Career Development Center may not also provide developmental services. Persons seeking developmental services must be referred to the full range of services available in the region and must not be unduly influenced to participate in any training services made available by a particular provider. (f) Requesting a Waiver of the Requirements. (1) The board may submit its written request for a waiver under subsection (c), (d), or (e) to the Commission at any time in the board's planning process, including at the time of submission of the strategic plan. (2) A request for a waiver of any of the requirements under subsection (c), (d), or (e) must contain a detailed justification for the request, including, but not limited to, the following: (A) documentation of the process used to notify the public and interested parties of the solicitation of bids for the provision of necessary services; (B) details of any bids or inquiries received as a result of public notice and solicitation for bids, including, responses given to any inquiries received; (C) criteria used to evaluate any bids received; (D) methodology used to determine the lack of any existing qualified alternative; (E) cost-effectiveness; (F) prior experience; (G) geographic or budgetary considerations; (H) availability of qualified applicants; (I) a detailed proposal for the provision of such services should a waiver be granted; and (J) whether the Texas Workforce Commission is able to provide the needed services in the area. (g) Duration of Waiver. (1) A waiver may be granted for a period not to exceed the effective date of an approved plan and budget. (2) A waiver may be conditioned upon the board's completion of measures taken to eliminate the need for a waiver. (h) Changed Circumstances. (1) The board shall timely notify the Commission of any material change in circumstances that may bear upon the Commission's decision on the waiver request. (2) If the Commission becomes aware of a change in circumstances materially affecting its decision to grant a waiver, the Commission may review its decision and require the board to submit information regarding the continued need for the waiver. 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 18, 1996. TRD-9600807 C. Ed Davis Deputy Administrator for Legal Affairs Texas Workforce Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-2291 40 TAC sec.801.3 The Texas Workforce Commission proposes new sec.801.3, concerning submission of plans, plan modification and amendments. The Labor Code, as amended by Chapter 655, Acts of the 74th Legislature, 1995, requires the Commission to establish a state-local planning process for workforce training and services, to review plans, and to make recommendations regarding implementation of those plans to the Texas Council on Workforce and Economic Competitiveness. C. Ed Davis, Deputy Administrator for Legal Affairs, has determined that for the first five years the section as proposed is in effect, there will be minimal fiscal implications as a result of enforcing or administering the rule. There will be no additional costs for state government as a result of enforcing or administering the rule. Reductions in costs to the state will depend on program consolidation and local involvement and cannot be estimated. Any costs to local governments choosing to cooperate under a plan are entirely within the control of the local government and cannot be estimated. Mr. Davis also has determined that for the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the section will be improved coordination of and access to workforce training and services programs at the local level. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to Leslie Geballe, Intergovernmental Relations, Texas Workforce Commission Building, 101 East 15th Street, Room 662, Austin, Texas 78778, (512) 463-2213. The new section is proposed under Texas Civil Statutes, Labor Code, sec.302. 041 and sec.302.042, as amended by Chapter 655, Acts of the 74th Legislature, 1995, which direct the Texas Workforce Commission to design and implement a state-local planning process for workforce training and services, to review local plans and to make recommendations to the Texas Council on Workforce and Economic Competitiveness regarding plan implementation. No other statute, article or code will be affected by this proposal. sec.801.3. Requirements for Submission of Local Workforce Training and Services Plans, Modifications and Amendments. (a) Purpose of Rule. (1) All workforce training and services plans and budgets developed pursuant to state and federal law by a local workforce development board shall be submitted to the Workforce Division of the Texas Workforce Commission for review. (2) Before a plan and budget will be forwarded by the Commission to the Texas Council on Workforce and Economic Competitiveness (TCWEC) for approval, all requirements of this section must be met. (b) Standards for Submission. A local workforce training and services plan and budget will be reviewed according to criteria established by the Commission. The Commission will provide guidelines for strategic planning and budgeting to local boards. (c) Plan Modification or Amendment. An approved plan and budget may be changed by either modification or amendment. Either method of change must be submitted to the Commission for review before implementation. (1) A modification is a substantial revision of a plan and budget. The Commission will provide criteria to local boards that will define what constitutes a substantial revision. Each modification must provide evidence that a majority of the Chief Elected Officials (CEOs) of a local workforce delivery area have approved the modification. (2) An amendment is a minor adjustment to a plan and budget. The Commission will provide criteria to local boards that will define what constitutes a minor adjustment. An amendment does not require approval by a majority of the CEOs of a local workforce delivery area. 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 18, 1996. TRD-9600806 C. Ed Davis Deputy Administrator for Legal Affairs Texas Workforce Commission Earliest possible date of adoption: February 26, 1996 For further information, please call: (512) 463-2291