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 II. Public Utility Commission of Texas
CHAPTER 23.Substantive Rules
The Public Utility Commission of Texas proposes amendments to sec.23.23, 
relating to Rate Design; sec.23.26, relating to New and Experimental Services; 
sec.23.28, relating to Promotional Rates for LEC Services; sec.23.33, relating 
to Telephone Solicitation; sec.23.69, relating to Integrated Services Digital 
Network (ISDN); and sec.23.99, relating to Unbundling. The proposed amendments 
revise the Commission's mailing address and telephone numbers, and are 
necessitated by the late September, 1996, relocation of the Commission's 
offices. 
Susan Butterick, Administrative Law Judge, has determined that for each year of 
the first five-year period the proposed 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. Butterick also has determined that for each year of the first five years the 
proposed sections are in effect the public benefit anticipated as a result of 
enforcing the sections will be provision of correct information for contacting 
the Commission by mail or telephone. There will be no effect on small businesses 
as result of enforcing these sections. There is no anticipated economic cost to 
persons who are required to comply with the sections as proposed. 
Ms. Butterick has also determined that for each year of the first five years the 
proposed sections are in effect there will be no impact on employment in the 
geographical area affected by implementing the requirements of the sections. 
Comments on the proposed amendments (16 copies) may be submitted to Paula 
Mueller, Secretary of the Commission, Public Utility Commission of Texas, 7800 
Shoal Creek Boulevard, Austin, Texas 78757, within 30 days after publication.
The commission invites specific comments regarding the costs associated with, 
and benefits that will be gained by, implementation of the amendments. The 
commission will consider the costs and benefits in deciding whether to adopt the 
amendments. All comments should refer to Project Number 16198. 

Rates
16 TAC sec.sec.23.23, 23.26, 23.28
These amendments are proposed under the Public Utility Regulatory Act of 1995, 
sec.1.101, Senate Bill 319, 74th Legislature, Regular Session 1995, which 
provides the Public Utility Commission with the authority to make and enforce 
rules reasonably required in the exercise of its powers and jurisdiction, 
including rules of practice and procedure. 
Public Utility Regulatory Act, sec.1.101 is affected by these proposed 
amendments.

sec.23.23.Rate Design.
(a) (No change.) 
(b) Recovery of Fuel and Purchased-Power Costs.
(1)-(3) (No change.) 
(4) Notice of fuel proceedings. In addition to the notice required by the 
Administrative Procedure Act (APA) to be given by the commission, the utility is 
required to give notice of fuel proceeding at the time the petition is filed. 

(A) (No change.) 
(B) Contents of notice. Notice whether by publication or by individual notice to 
each customer shall state the date the petition was filed and include a general 
description of the customers, customer classes, and territories affected by the 
petition; and the relief requested. Notices to revise fuel factors must also 
state the proposed fuel factors by type of voltage and the period for which the 
proposed fuel factors are expected to be in effect. Notices to revise fuel 
factors, to refund, or to surcharge must contain the statement that, "these 
changes will be subject to final review by the commission in the utility's next 
reconciliation," unless, in the case of refunds or surcharges, the change is a 
result of a reconciliation proceeding. Notices to reconcile fuel expenses must 
also state the period for which final reconciliation is sought. In addition, all 
notices must state: "Persons who wish to intervene in the proceeding or comment 
upon the action sought should contact the Public Utility Commission of Texas, 
<nl> P. O. Box 13326, Austin, Texas 78711- 3326 <ol>[7800 Shoal Creek Boulevard, 
Austin, Texas 78757], or call the commission's <nl>Office of Consumer Affairs at 
(512) 936-7120. Hearing- and speech-impaired individuals with text telephones 
(TTY) may contact the commission at (512) 936-7136<ol> [Public Information 
Office at (512) 458-0256 or (512) 458-0221 (telecommunications device for the 
deaf)]." 
(C) (No change.) 
(5)-(8) (No change.) 
(c) Expedited approval of changes in rates. An electric distribution cooperative 
may request expedited review and approval of rate changes pursuant to the 
procedures and limitations of this subsection. 
(1) (No change.) 
(2) Public notice. The utility shall provide public notice in compliance with 
the requirements of this subsection. In the event of a conflict between the 
provisions of this Rule and sec.22.51, of this title (relating to Notice for 
Public Utility Regulatory Act, sec.43 and sec.42, Proceedings), the provisions 
of this Rule shall apply. 
(A) Contents of notice. Public notice shall be entitled "Notice of Rate Change 
Request" and shall contain the following: 
(i)-(iii) (No change.) 
(iv) the following language: "Information concerning the proposed rate changes, 
including the proposed customer, demand, and energy charges applicable to each 
class of service, the estimated effect on revenue by customer class, and a brief 
description of the applicability and type of service for any new class of 
service which is proposed by the utility, is available at the general office of 
the utility, located at ___(utility address)___, or will be provided upon 
request to any customer by mail without charge. The utility has filed a copy of 
this Notice of Rate Change Request with the Public Utility Commission of Texas. 
Persons who wish to intervene in or comment upon these proceedings should notify 
the commission as soon as possible. A request to intervene or for further 
information should be mailed to the Public Utility Commission of Texas, <nl>P. 
O. Box 13326, Austin, Texas 78711-3326<ol> [7800 Shoal Creek Boulevard, Austin, 
Texas 78757]. Further information may also be obtained by calling the Public 
Utility Commission's <nl>Office of Consumer Affairs at (512) 936-7120. Hearing- 
and speech-impaired individuals with text telephones (TTY) may contact the 
commission at (512) 936-7136<ol> [Public Information Office at (512) 458- 0256, 
or (512) 458-0221 for text telephone]." The deadline for intervening will be 
___(45 days after the filing of Notice). 
(B) (No change.) 
(3)-(13) (No change.) 
(d)-(e) (No change.)

sec.23.26.New and Experimental Services.
(a)-(d) (No change.) 
(e) Notice. The presiding officer may require notice to be provided to the 
public in addition to that proposed by the DCTU. Not less than five days before 
the effective date of the application, the DCTU shall file a statement 
indicating the date on which all notice provided to the public was completed and 
proof of such notice. If public notice of the application is required, it shall 
include a description of the new or experimental service, the proposed rates and 
other terms of the service, the types of customers likely to be affected if the 
service is approved, the probable effect on the DCTU's revenues if the service 
is approved, the proposed effective date for the service, and the following 
language: "Persons who wish to comment on this application should notify the 
commission by specified date, ten days before the proposed effective date. 
Requests for further information should be mailed to the Public Utility 
Commission of Texas,<nl> P. O. Box 13326, Austin, Texas 78711- 3326<ol> [(insert 
the commission's current address)],or you may call the Public Utility 
Commission's <nl> Office of Consumer Affairs at (512) 936- 7120. Hearing- and 
speech-impaired individuals with text telephones (TTY) may contact the 
commission at (512) 936-7136<ol> [Public Information Office at (insert the 
commission's current telephone numbers), or (insert current commission telephone 
number for text telephone) 458- 0221 teletypewriter for the deaf]." 
(f)-(m) (No change.)

sec.23.28.Promotional Rates for LEC Services.
(a)-(e) (No change.) 
(f) Notice. At least ten days before any application under this section may be 
filed by a DCTU, the DCTU shall file a statement of intent to file such an 
application and the expected filing date. Such notice shall also include a 
statement of the DCTU's intent to use the expedited procedures of this section, 
a description of the service, and a description of the proposed promotional 
rates and the proposed promotional period. The commission shall then publish 
notice of the DCTU's intent to file such application in the Texas Register. The 
presiding officer may require notice to be provided to the public in addition to 
that proposed by the DCTU in its application. Before the effective date of the 
application, the utility shall file a statement indicating the date on which all 
notice provided to the public was completed and proof of such notice. If public 
notice of the application is required, it shall include a description of the 
service for which promotional rates are proposed, the rates which are proposed 
by the DCTU, the time period during which the promotional rates are proposed to 
be in effect, the types of customers likely to be affected if the application is 
approved, and the following language: "Persons who wish to comment on this 
application should notify the commission by (specified date, ten days before the 
proposed effective date). Requests for further information may be mailed to the 
Public Utility Commission of Texas,<nl> P. O. Box 13326, Austin, Texas 78711- 
3326 <ol> [(insert current commission address)],or you may call the commission's 
<nl>Office of Consumer Affairs at (512) 936-7120. Hearing- and speech-impaired 
individuals with text telephones (TTY) may contact the commission at (512) 936-
7136<ol> [Public Information Office at (insert current commission telephone 
numbers) or (insert current commission telephone number for text telephone) 
teletypewriter for the deaf]." 
(g)-(p) (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 August 16, 1996.
TRD-9612056
Paula Mueller
Secretary of the Commission
Public Utility Commission of Texas
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 458-0100

Certification
16 TAC sec.23.33
The amendment is proposed under the Public Utility Regulatory Act of 1995, 
sec.1.101, Senate Bill 319, 74th Legislature, Regular Session 1995, which 
provides the Public Utility Commission with the authority to make and enforce 
rules reasonably required in the exercise of its powers and jurisdiction. 
Public Utility Regulatory Act, sec.1.101 is affected by this proposed amendment.

sec.23.33.Telephone Solicitation.
(a)-(b) (No change.) 
(c) Responsibility of LECs. Each LEC shall inform its customers of the 
provisions of the Business and Commerce Code, Chapter 37, and sec.3.659 of the 
Public Utility Regulatory Act of 1995, by inserting the notice prescribed by 
this subsection annually in the billing statement mailed to a customer. The 
notice required by this subsection shall be mailed to each customer as a bill 
insert. For residential customers, the notice required by this subsection and 
any CPNI notice required by sec.23.57(e) of this title (relating to 
Telecommunications Privacy) shall be published as a single insert and mailed to 
the customer in a billing statement. Each LEC shall also publish the notice 
required by this subsection in the consumer information pages of its local 
telephone directory on the same page or on a page adjacent to where the CPNI 
notice required by sec.23.57(e) of this title appears. The notice shall read as 
follows: 
TELEPHONE SOLICITATION
Texas law provides certain protections for a person who receives a telephone 
solicitation at a residence. 
A telephone solicitor must: 
* identify himself or herself by name; 
* identify the business on whose behalf he or she is calling;
* identify the purpose of the call; 
* identify the telephone number at which the person, company, or organization 
making the call may be reached 
A telephone solicitor may not call a residence before 9:00 a.m. or after 9:00 
p.m. on a weekday or Saturday or before noon or after 9:00 p.m. on Sunday. If a 
telephone solicitor uses an automatic dialing/announcing device, the machine 
must disconnect from your line within 30 seconds after termination of the call. 
Exceptions: The requirements above do not apply to telephone solicitations made 
at your request, or solicitations made in connection with an existing debt or 
contract, or calls from a telephone solicitor with whom you have a prior or 
existing business relationship. 
If you use a credit card to purchase a good or service from a telephone 
solicitor other than a public charity (an organization exempt from federal 
income tax under the Internal Revenue Code sec.501(c)(3)), the seller must:
* offer a full refund for the return of undamaged and unused goods within seven 
days after you receive the goods or service (the seller must process the refund 
within 30 days after you return the merchandise or cancel your order for 
undelivered goods or services); or 
* provide you with a written contract fully describing the goods or services 
being offered, the total price charged, the name, address, and business phone of 
the seller, and any terms and conditions affecting the sale. 
Complaints. The Texas Attorney General investigates complaints relating to a 
violation of this law, which is found at the Business and Commerce Code Chapter 
37. If you have a complaint about a telephone solicitor whom you believe has 
violated this law, contact: Consumer Protections Division, Office of the 
Attorney General of Texas, P. O. Box 12458, Austin, Texas 78711, (512) 463-2070. 
Another law, found at sec.3.659 and sec.3.660 of the Public Utility Regulatory 
Act of 1995, requires a telephone solicitor to make every effort not to call a 
consumer who asks not to be called again. 
Complaints relating to a violation of this law are investigated by the Public 
Utility Commission of Texas. If you have a complaint about repeated solicitation 
from a telephone solicitor you have asked not to call you again, contact: Office 
of Consumer Affairs, Public Utility Commission of Texas, <nl>P. O. Box 13326, 
Austin, Texas 78711-3326, (512) 936- 7120. Hearing- and speech-impaired 
individuals with text telephones (TTY) may contact the commission at (512) 936- 
7136<ol> [(insert current commission address), (insert current commission 
telephone number) or (insert current commission telephone number for 
teletypewriter for the deaf) teletypewriter for the deaf]. 
"Be advised that you may have additional rights under federal law. Please 
contact the Federal Trade Commission or the Federal Communications Commission 
for further information on these additional rights." 
(d) (No change.)
Issued in Austin, Texas, on August 16, 1996.
TRD-9612057
Paula Mueller
Secretary of the Commission
Public Utility Commission of Texas
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 458-0100

Quality of Service
16 TAC sec.23.69
The amendment is proposed under the Public Utility Regulatory Act of 1995, 
sec.1.101, Senate Bill 319, 74th Legislature, Regular Session 1995, which 
provides the Public Utility Commission with the authority to make and enforce 
rules reasonably required in the exercise of its powers and jurisdiction. 
Public Utility Regulatory Act, sec.1.101 is affected by this proposed amendment.

sec.23.69.Integrated Services Digital Network (ISDN.) 
(a)-(f) (No change.) 
(g) Requirements for notice and contents of application in compliance with this 
section. 
(1) Notice of application. The presiding officer may require notice to the 
public as required by Subchapter D of the commission's Procedural Rules and 
shall require direct notice to all existing ISDN customers. Unless otherwise 
required by the presiding officer or by law, the notice shall include at a 
minimum a description of the service, the proposed rates and other terms of the 
service, the types of customers likely to be affected if the application is 
approved, the proposed effective date for the application, and the following 
language: "Persons who wish to comment on this application should notify the 
commission by (specified date, ten days before the proposed effective date). 
Requests for further information should be mailed to the Public Utility 
Commission of Texas, <nl>P. O. Box 13326, Austin, Texas 78711-3326 <ol>[(insert 
current commission address)], or you may call the Public Utility 
<nl>Commission's Office of Consumer Affairs at (512) 936- 7120. Hearing- and 
speech-impaired individuals with text telephones  (TTY) may contact the 
commission at (512) 936-7136 <ol>[Commission Public Information Office at 
(insert current commission telephone number) or (insert current commission 
telephone number for text telephone) for text telephone]." 
(2)-(3) (No change.) 
(h)-(j) (No change.) 
Issued in Austin, Texas, on August 16, 1996.
TRD-9612058
Paula Mueller
Secretary of the Commission
Public Utility Commission of Texas
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 458-0100

16 TAC sec.23.99
The amendment is proposed under the Public Utility Regulatory Act of 1995, 
sec.1.101, Senate Bill 319, 74th Legislature, Regular Session 1995, which 
provides the Public Utility Commission with the authority to make and enforce 
rules reasonably required in the exercise of its powers and jurisdiction, 
including rules of practice and procedure. 
Public Utility Regulatory Act, sec.1.101 is affected by this proposed amendment.

sec.23.99.Unbundling.
(a)-(g) (No change.) 
(h) Requirements for notice and contents of application in compliance with this 
section. 
(1) Notice of Application. The presiding officer may require notice to be 
provided to the public as required by Subchapter D of the Commission's 
Procedural Rules. The notice shall include, at a mimimum, a description of the 
service, the proposed rates and other terms of the service, the types of 
customers likely to be affected if the service is approved, the probable effect 
on ILEC's revenues if the service is approved, the proposed effective date for 
the service, and the following language: "Persons who wish to comment on this 
application should notify the commission by specified date, ten days before the 
proposed effective date. Requests for further information should be mailed to 
the Public Utility Commission of Texas,<nl> P. O. Box 13326, Austin, Texas 
78711- 3326<ol> [(insert the commission's current address)],or you may call the 
Public Utility Commission's <nl> Office of Consumer Affairs at (512) 936-7120. 
Hearing- and speech-impaired individuals with text telephones (TTY) may contact 
the commission at (512) 936-7136<ol> [Public Information Office at (insert the 
commission's current telephone numbers), or (insert current commission telephone 
number for text telephone typewriter for the deaf)]." 
(2)-(3) (No change.) 
(i)-(j) (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 August 16, 1996.
TRD-9612054
Paula Mueller
Secretary of the Commission
Public Utility Commission of Texas
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 458-0100

TITLE 19. EDUCATION
PART I. Texas Higher Education Coordinating Board
CHAPTER 5. Program Development
SUBCHAPTER H. Approval of Distance Learning for Public Colleges and Universities
19 TAC sec.5.156
The Texas Higher Education Coordinating Board proposes amendments to sec.5.156 
concerning Approval of Distance Learning for Public Colleges and Universities 
(Procedures for Review and Approval of Lower-Division Distance Learning). The 
proposed rules will provide a uniform means of resolving disputes between 
institutions offering courses via distance learning. If disputes cannot be 
resolved within the established higher education regional councils, an 
additional process devised by the Commissioner will be followed to lead to 
resolution. This new change in rules would direct the Commissioner to devise 
such an additional process. 
Bill Sanford, Assistant Commissioner for Universities has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications as a result of enforcing or administering the rule. 
Mr. Sanford also has determined that for the first five years the rule is in 
effect the public benefit will be that resolution of institutional disputes can 
lead to expanded educational offerings through distance learning. There will be 
no effect on state or local government or small businesses. There is no 
anticipated economic costs to persons who are required to comply with the rule 
as proposed. 
Comments on the proposed amendments can be submitted to Dr. Kenneth H. Ashworth, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711.
The amendments are proposed under Texas Education Code, sec.61.051 and 
sec.130.086 which provides the Texas Higher Education Coordinating Board with 
the authority to adopt rules concerning Approval of Distance Learning for Public 
Colleges and Universities. 
There are no other sections or articles affected by the proposed rule. 

sec.5.156. Procedures for Review and Approval of
Lower-Division Distance Learning. 
(a)-(d) (No change.) 
(e) Procedures for submitting applications to the Board for authorization to 
offer lower-division distance learning classes are as follows:
(1)-(4) (No change.) 
(5) Recommendations of the Regional Councils must be submitted in a time frame 
determined by the Commissioner to permit annual consideration by the Board at 
its April meeting. <nl>Any exceptions to this time frame must be specifically 
approved by the Commissioner.<ol>
(6) The Commissioner will consider the recommendations of Regional Councils as 
well as any dissenting report filed by an institution. Subject to the following 
section, the Commissioner has the authority to approve or disapprove courses and 
Annual Plans, and to resolve disputes between or among institutions which cannot 
be resolved by the Councils. <nl> The Commissioner shall devise a procedure to 
encourage and assist Regional Councils in the resolution of such disputes.<ol> 
The commissioner will report to all affected institutions on approvals and 
disapprovals of classes proposed under each Annual Plan at least two weeks 
before the scheduled April Board meeting, at which time the Board may hear 
appeals to approvals and disapprovals made by the Commissioner. 
(f) (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 August 13, 1996. 
TRD-9612094
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: October 18, 1996
For further information, please call: (512) 483-6160

CHAPTER 9. Public Junior Colleges
SUBCHAPTER J. Approval of Postsecondary Technical and Vocational Courses for 
State Appropriations to Public Community Colleges and Texas State Technical 
Institute
19 TAC sec.9.214
The Texas Higher Education Coordinating Board proposes amendments to sec.9.214 
concerning Approval of Postsecondary Technical & Vocational Courses for State 
Appropriations to Public Community Colleges and Texas State Technical Institutes 
(Approval). The proposed changes will give community and technical colleges more 
flexibility in offering continuing education classes eligible for state 
reimbursement to business and industry in a one-day format. The proposed rules 
reduce the minimum contact hours eligible for state reimbursement from ten to 
seven hours, thus allowing institutions to offer the one-day format for state 
reimbursable continuing education courses. 
Bob Lahti, Assistant Commissioner for Community and Technical Colleges has 
determined that for the first five-year period the rule is in effect there are 
fiscal implications for the state since funding would now be available to 
community and technical colleges offering one-day, seven-hour workforce 
continuing education courses eligible for state reimbursement. Under the current 
rules, funding is only available to continuing education courses with ten or 
more contact hours. 
Mr. Lahti also has determined that for the first five years the rule is in 
effect the public benefit will be with the reduction in contact hour 
requirements for state reimbursement for continuing education courses, community 
and technical colleges would be able to respond to the needs of business and 
industry wanting to offer training in this proposed seven-hour one-day format. 
While the number of contact hours required to receive a full CEU credit would 
remain at ten (seven hours would produce a .7 CEU), the one-day format would be 
more complementary to some business and industry needs. There will be no effect 
on state or local government or small businesses. There is no anticipated 
economic costs to persons who are required to comply with the rule as proposed. 
Comments on the proposed amendments can be submitted to Dr. Kenneth H. Ashworth, 
Commissioner of Higher Education, Texas Higher Education Coordinating Board, 
P.O. Box 12788, Capitol Station, Austin, Texas 78711.
The amendments are proposed under Texas Education Code, sec.130.003(b), 61.063, 
and 135.54 which provides the Texas Higher Education Coordinating Board with the 
authority to adopt rules concerning Approval of Postsecondary Technical & 
Vocational Courses for State Appropriations to Public Community Colleges and 
Texas State Technical Institutes (Approval).
There are no other sections or articles affected by the proposed rule. 

sec.9.214. Approval. 
(a) (No change.) 
(b) <nl>Continuing education<ol> [Postsecondary technical and vocational adult] 
courses will include no fewer than <nl> seven<ol> [ten] contact hours of 
instruction for institutions to receive state funding. The Coordinating Board 
may grant approval for fewer hours only if an authorized local, state, or 
national licensing, certifying, regulatory, or accrediting agency requires such 
training. 
(c)-(g) (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 August 15, 1996. 
TRD-9612095
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Proposed date of adoption: October 18, 1996
For further information, please call: (512) 483-6160

TITLE 22. EXAMINING BOARDS
PART XXIII. Texas Real Estate Commission
CHAPTER 535. Provisions of the Real Estate License Act
Suspension and Revocation of Licensure
22 TAC sec.535.154
The Texas Real Estate Commission proposes an amendment to sec.535.154, 
concerning misleading advertising by real estate licensees. The proposed 
amendment would clarify the requirement contained in Texas Civil Statutes, 
Article 6573a, sec.15(a)(6)(P), that licensees include in their advertisements 
language identifying themselves as a real estate broker or agent. The proposal 
would require the statutory identification to be clear and conspicuous in signs 
which are likely to attract the attention of motorists and pedestrians, such as 
a sign placed along a street to advertise real estate located elsewhere. The 
language chosen by the licensee to provide the statutory identification of the 
licensee as a broker or agent would not comply with the proposed amendment if 
the print or type is too small to be read easily from the sidewalk or street. 
Language at least as large as the largest telephone number in the sign would be 
considered in compliance, although the amendment would permit licensees to 
display the required language in other ways. Because consumers are more likely 
to know that those signs placed by brokers at the property listed for sale or 
lease are those of a broker or agent, the proposed amendment would not apply to 
signs placed on listed property. The proposed amendment is not intended to 
encompass directional signs, such as those only indicating an open house without 
otherwise advertising the property. 
Mark A. Moseley, general counsel, 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. There 
is no anticipated impact on local or state employment as a result of 
implementing the section. 
Mr. Moseley also has determined that for each year of the first five years the 
section as proposed is in effect the public benefit anticipated as a result of 
enforcing the section will be clarification for consumers that they are dealing 
with real estate licensees when the consumers respond to signs offering real 
estate for sale or lease. There is no anticipated effect on small businesses. 
There is no anticipated economic cost to persons who are required to comply with 
the proposed section other than the cost of printing the statutory language in a 
clear or conspicuous manner. This cost cannot be readily estimated, since the 
licensee could affix small placards to existing signs without reprinting them, 
or the licensees signs may already display the statutory identification in a 
clear and conspicuous manner in compliance with the proposed section. 
Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, 
Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. 
The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties 
The statute that is affected by this section is Texas Civil Statutes, Article 
6573a. 

sec.535.154. Misleading Advertising. 
(a)-(f) (No change.) 
<nl>(g)<ol> <nl>An advertisement placed where it is likely to attract the 
attention of passing motorists or pedestrians must contain language that clearly 
and conspicuously identifies as a real estate broker or agent the person 
publishing the advertisement. Advertisements in which the required language is 
not clear and conspicuous shall be deemed by the commission to be deceptive and 
likely to mislead the public for the purposes of Texas Civil Statutes, Article 
6573a (the Act), sec.15(a)(6)(P). The commission shall consider language as 
clear and conspicuous if it is in at least the same size of type or print as the 
largest telephone number in the advertisement, or it otherwise clearly and 
conspicuously identifies as a real estate broker or agent the person who 
published it. The commission shall consider advertisements not to be in 
compliance with this subsection if the required language is in print or type so 
small that it cannot be easily read from the street or sidewalk. This subsection 
does not apply to signs placed on real property listed for sale, rental or lease 
with the broker who has placed the sign, provided the signs otherwise comply 
with this section and the provisions of the Act regarding advertising.<ol>
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 August 15, 1996. 
TRD-9611924
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 465-3900

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 19.Agent's Licensing
SUBCHAPTER K.Agents and Adjusters [Guidelines for Minimum Standards for] 
Continuing Education <nl>Program<ol> [Courses] 
28 TAC sec.sec.19.1001-19.1013
The Texas Department of Insurance proposes amendments to sec.sec.19.1001-19.1004 
and 19.1010-19.1013, and new sec.sec.19.1005-19.1009, concerning guidelines and 
standards for a continuing education program for agents and adjusters. The title 
of the subchapter has been changed to more appropriately reflect the content of 
the subchapter. Section 19.1001 adds language concerning the severability of 
provisions in the subchapter. Section 19.1002 adds definitions for the terms 
"assignee", "disinterested third party", "effective date", "provider", "provider 
registration", and "TDI ID number" and amends the definition of the term 
"licensee". Section 19.1003 adds language to require all agents to take at least 
four hours of insurance regulation and ethics within the first licensing cycle 
for new licensees and within the next two licensing cycles for other licensees. 
Section 19.1004 adds language to the provisions concerning exemption from the 
continuing education requirement. The new language changes the calculation for 
credit hours for the final licensing period to one hour for each whole month 
between the last renewal date and the effective date of the exemption. Section 
19.1004 also adds an exemption for nonresident adjusters who have valid licenses 
from another state which has substantially equivalent continuing education 
requirements for adjusters. New sec.sec.19.1005-19.1009 replace existing 
sec.sec.19.1005-19.1009 which have been proposed for repeal elsewhere in this 
issue of the Texas Register. 
New sec.19.1005 refers to provider and instructor criteria and establishes the 
procedures a provider must follow when applying for registration with the 
department and when certifying course instructors. New sec.19.1006 refers to 
course criteria and sets out the requirements for a course to be registered for 
continuing education.New sec.19.1007 defines the types of continuing education 
courses that may be offered. New sec.19.1008 sets out the methods used in 
determining the number of credit hours to be given for continuing education 
courses. New sec.19.1009 sets out the requirements to be used in determining 
successful completion of continuing education courses. Section 19.1010 has been 
amended to list provider registration forms, course registration forms and 
sample certificates of completion among the forms that may be obtained from the 
department. The language of sec.19.1011 has been clarified to state that agents 
licensed under Articles 21.07-1, 21.07-3 or 21.14 may take continuing education 
courses applicable to any of those license types. The title of sec.19.1012 has 
been changed from Audit of Continuing Education Records to Provider Compliance. 
Section 19.1012 also has been amended to require providers to notify the 
department when a course is discontinued or inactive and when there is a change 
in the provider's information of record. Section 19.1012 also was changed to 
provide that if a provider fails to remedy a discrepancy in its records within 
30 days, the department will automatically close the course certification on the 
31st day until the discrepancy is resolved. Additionally, sec.19.1012 has been 
amended to provide that providers' registration is conditioned upon compliance 
with the proposed sections and that repeated noncompliance may be grounds for 
nonrenewal of a provider's registration, nonapproval of courses and restriction 
of a provider's ability to provide continuing education courses for up to one 
year. New language has been added to sec.19.1013 concerning a licensee's failure 
to comply with the continuing education requirements and the requirements set 
out in these sections. Amended sec.19.1013 sets out the types of violations 
which could, after notice and opportunity for hearing, subject a licensee to 
disciplinary action. Additionally, sec.19.1013 has been amended to provide that 
failure of a provider to comply with the provisions of this subchapter may, 
after notice and opportunity for hearing, cause the provider to be prohibited 
from participating in any department approved education programs for a period 
not to exceed one year.
Edna Ramon Butts, senior associate commissioner, regulation and safety, has 
determined that for each year of the first five years the proposed sections are 
in effect, that there will be no fiscal implications for state or local 
government or small businesses as a result of enforcing or administering these 
sections. There will be no effect on local employment or the local economy. 
Enforcement and administration of the proposed sections will be performed by 
existing departmental staff, so there will be no additional costs associated 
with the proposal.
Ms. Butts has also determined that for each year of the first five years the 
proposed sections are in effect, the public benefit anticipated as a result of 
enforcing the sections will be the continuance of informed and educated 
insurance agents and adjusters. Agents and adjusters who have current 
information on insurance laws and ethical standards are able to better serve the 
public. Ms. Butts estimates that the anticipated cost to individuals and 
entities subject to these sections is $1.00 in additional postage costs per 
course enrollee for providers who provide correspondence self-study courses. 
Comments on the proposal must be submitted within 30 days after publication of 
the proposed subchapter in the Texas Register to Caroline Scott, General Counsel 
and Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-2A, 
Austin, Texas 78714-9104. An additional copy of the comment must be submitted to 
Edna Ramon Butts, Senior Associate Commissioner, Regulation and Safety, Texas 
Department of Insurance, P.O. Box 149104, MC 107-2A, Austin, Texas 78714-9104. 
Any requests for public hearing on this proposal should be submitted separately 
to the Office of the Chief Clerk. 
The proposal is made pursuant to the Insurance Code, Articles 21.07-1, 21.07-3, 
21.07-4, 21.14, and 1.03A, and the Government Code, sec.sec.2001.004 et seq 
(Administrative Procedure Act). The Insurance Code, Articles 21.07-1, sec.3A, 
21.07-3, sec.6A, 21.07-4, sec.7A and 21.14, sec.sec.5b and 5d authorize the 
department to adopt a procedure for establishing guidelines for continuing 
education programs for agents and adjusters. Insurance Code, Article 1.03A 
provides that the Commissioner of Insurance may adopt rules and regulations to 
execute the duties and functions of the Texas Department of Insurance only as 
authorized by a statute. The Government Code, sec.sec.2001.004 et seq. authorize 
and require each state agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and to prescribe the procedures 
for adoption of rules by a state agency. 
The following statutes and rules are affected by this proposal: Rules Statutes 
sec.sec.19.1901-19.1013 Insurance Code, Articles 21.07-1, 21.07-3, 21.07-4, and 
21.14. 

sec.19.1001.General Provisions.
<nl>(a)<ol> Purpose and Scope. The purpose of this subchapter is to set forth 
procedures and requirements for certification of continuing education courses 
and the requirements for continuing education for insurance agents and adjusters 
for implementation of the continuing education program as authorized under the 
Insurance Code, Articles 21.07-1, 21.07-3, 21.07-4, and 21.14.
<nl>(b)<ol> <nl>Severability. Where any terms or provisions of this subchapter 
are determined by a court of competent jurisdiction to be inconsistent with any 
statutes of this state or to be unconstitutional, the remaining terms and 
provisions of this subchapter shall remain in effect.<ol>

sec.19.1002.Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>Assignee<ol><nl> -Any individual or organization which is authorized in 
writing by a provider to use its courses as certified by the department. <ol>
<nl>Disinterested third party<ol> <nl>-An individual who is not related in any 
degree to a licensee taking a final examination as part of a course taken for 
continuing education credit. <ol>
<nl>Effective date<ol><nl>-The date assigned by the department on which all 
provider and course submission requirements have been met to the satisfaction of 
the department.<ol>
Licensee-<nl>Any individual person holding a license under the authority of the 
Texas Insurance Code, Articles 21.07-1, 21.07-3, 21.07-4, and 21.14<ol> [Agents 
and adjusters as defined in this section]. 
<nl>Provider<ol>-Any individual or organization which is registered with the 
department as a provider of continuing education courses. 
<nl>Provider registration<ol>-The process of a provider seeking permission as an 
entity to offer continuing education courses for agents and adjusters. 
<nl>TDI ID number<ol><nl>-A number assigned to the licensee by the department 
(found on the license certificate) for identification purposes.<ol>

sec.19.1003. Applicability of Requirements.
(a) Agents licensed under the Insurance Code, Articles 21.07-1, 21.07-3, and 
21.14 shall complete 30 hours of continuing education within each reporting 
period, unless otherwise exempt. 
(b) An agent licensed under <nl>more than one article of<ol> the Insurance Code, 
Articles 21.07-1, <nl> 21.07-3<ol> and 21.14 may elect to satisfy the continuing 
education requirements of <nl>any one of the articles<ol> [either article] and 
shall not be required to complete more than 30 hours within each reporting 
period. 
(c) <nl>All agents subject to these sections, other than local recording agents 
identified in subsection (g) of this section, shall take at least four hours of 
registered courses in insurance regulation and ethics within the first licensing 
cycle for new licenses and reinstated licenses.<ol> 
<nl>(d)<ol> <nl>All agents subject to these sections shall take at least four 
hours of registered courses in insurance regulation and ethics within the next 
two licensing cycles, beginning with the first licensing cycle after the 
effective date of these sections.<ol>
<nl>(e)<ol>Adjusters licensed under the Insurance Code, Article 21.07-4 shall 
complete 30 hours of continuing education within each reporting period. Four of 
the 30 hours must be in <nl> registered<ol> consumer protection courses.
<nl>(f)<ol>[(d)] Agents and adjusters holding a license subject to continuing 
education which is prorated to coincide with the renewal of another license 
shall complete continuing education on a prorated schedule. The credit hours 
required shall be based upon the licensing period from the issue date of the 
license to the prorated renewal date of the license <nl>at the rate of one hour 
for each whole month between the last renewal date and the prorated renewal 
date.<ol>[as follows:] 
Figure 1: 28 TAC sec.19.1003<nl>(f)<ol>[(d)]
<nl>(g)<ol>[(e)] An agent holding only a temporary local recording agent license 
under Article 21.14 shall be required to complete only <nl>four hours of 
registered insurance regulation and ethics instruction for the first reporting 
period<ol>[15 hours of continuing education] after receiving the permanent local 
recording agent license. After the first renewal, the local recording agent is 
subject to the full [30 hours] continuing education requirement.

sec.19.1004.Exemption from Continuing Education. 
The continuing education requirement shall not apply to:
(1) Agents licensed under the Insurance Code, Articles 21.07-1, 21.07-3, and 
21.14 who have been licensed,<nl>under one of those authorities,<ol> for 20 
years or more on or after September 1, 1992. Agents shall apply for this 
exemption by <nl>submitting a written request to the department indicating that 
they have met the longevity requirement<ol> [completing an application obtained 
from the department and submitting all requested information]. Agents must 
satisfy the continuing education requirements through the end of the 
<nl>twentieth  <ol>[nineteenth] year of licensure. The number of credit hours 
for the <nl>final<ol> [license] reporting period is <nl> calculated at the rate 
of 1 hour for each whole month between the last renewal date and the effective 
date of the exemption<ol> [determined as set forth in subparagraphs (A) - (C) of 
this paragraph]. 
[(A) If the twentieth year falls within the first year of the two year license 
period, then no continuing education is required for the reporting period. 
[(B) If the twentieth year falls within the second year of the two year license 
period, then 15 hours of continuing education is required for the reporting 
period to satisfy the nineteenth year of licensure. 
[(C) If the twentieth year falls on or after the license expiration date, then 
30 hours of continuing education is required for the reporting period to satisfy 
the nineteenth year of licensure.] 
(2) Agents licensed under the Insurance Code, Article 21.07-1 who maintain a 
license solely for the purpose of receiving residual or renewal commissions. 
Agents shall apply <nl>by letter for an inactive status exemption each reporting 
period. The letter must certify <ol>[for this exemption on a form obtained from 
the Department] <nl> that the licensee has performed<ol>[. As a condition for 
exemption and for each license renewal period, the agent shall certify on the 
form that] no acts of an insurance agent as defined in the statute governing 
such <nl>for the entire reporting period and<ol> [have been performed and] that 
the sole <nl>purpose<ol> [reason] for <nl>maintaining<ol> [maintenance of] the 
license is to receive residual or renewal commissions. 
(3) Nonresident agents licensed under the Insurance Code, Article 21.07-1 who 
are subject to continuing education requirements in their home state, provided 
the resident state exercises reciprocity with Texas' continuing education 
requirements. 
(4) <nl>Nonresident adjusters that have a valid license from another state, 
provided the other state is recognized by the department as having substantially 
equivalent continuing education requirements for adjusters.<ol>
<nl>(5)<ol>Agents and adjusters who meet the criteria of illness, medical 
disability or circumstances beyond the control of the licensee. A licensee shall 
apply <nl>to the department <ol> for an exemption from or an extension of time 
for meeting the continuing education requirements [by completing an application 
obtained from the department and submitting all requested documents and 
information]. The <nl> request<ol> [form] <nl>should<ol> [must] be received 
<nl>prior to<ol> [within] the <nl>end of the<ol> reporting period for which it 
applies and should include at least the information set forth in subparagraphs 
(A)-(F) of this paragraph: 
(A) Statement of the exact nature of the illness, medical disability or other 
extenuating circumstances beyond the control of the licensee <nl>that have 
prevented or will prevent the licensee from completing the required hours within 
the two year reporting period.<ol> 
(B) Evidence in the form of medical reports from attending physician(s) and 
insurance claims regarding the illness or medical disability of the licensee or 
evidence through insurance claims and/or other documentation as determined 
regarding circumstances beyond the control of the licensee.
(C) Assessment of the condition of the licensee whether it is temporary, 
permanent or unknown. 
(D) Statement as to whether the licensee will or will not be able to perform 
activities including any acts of an agent or adjuster. 
(E) Estimated date when the licensee will be able to perform any activities 
including any acts of an agent or adjuster in accordance with the medical 
reports or other documents pertaining to circumstances beyond the control of the 
licensee. 
(F) Any other information that may be requested by the department.

sec.19.1005.Provider and Instructor Criteria.
(a) A provider seeking initial registration or subsequent application for 
registration from the department as a continuing education provider shall submit 
an application on forms provided by the department. The department may require 
the following items in order to approve or disapprove a provider's request for 
registration: 
(1) A description of the experience and education that the applicant believes 
qualifies the applicant to be a provider; 
(2) A description of the provider's organizational structure, registration 
policies, fee schedules, and promotional materials; 
(3) A description of the provider's student record system including a 
description of the methods for documenting attendance; 
(4) The method used by the provider for evaluating instructors;
(5) An original signature of the person(s) authorized to sign certificates of 
completion; 
(6) A certificate format that the provider proposes to use which is in 
compliance with sec.19.1006(d)(4) of this subchapter (relating to Course 
Criteria); 
(7) If provider is a corporation, partnership, limited liability company or 
other legal entity not otherwise regulated by the department, the names of the 
officers, directors and shareholders if a corporation, the partners if a 
partnership, or the officers, managers and members if a limited liability 
company; 
(8) If provider is a corporation or limited liability company, a current 
Franchise Tax Certificate of Good Standing; 
(9) A description of provider's history, including whether provider has provided 
continuing education courses under any other name and whether provider has ever 
had continuing education approval revoked in Texas or any other state; and 
(10) Other information as specified by the department.
(b) In order to be approved, continuing education providers shall submit all 
requests for course certification in the manner prescribed by the department. 
(c) Providers shall certify that course instructors will be experienced and 
qualified in the subject to be taught, and certify that the course instructors 
meet at least one of the following instructor criteria:
(1) Instructor is and has been in the practice of teaching insurance courses for 
at least the last three years and has the knowledge and experience in the 
subject the instructor will teach; 
(2) Instructor is and has been properly licensed as a licensee subject to 
continuing education under this act for at least five years; 
(3) Instructor is the holder of a professional designation recognized by the 
department which relates directly to the subject the instructor will teach; or 
(4) Instructor is or has been engaged in a recognized profession that is 
pertinent to the subject areas to be taught, including, but not limited to: 
licensed or certified medical professionals, Certified Public Accountants, and 
members of a state bar. 
(d) Providers and instructors must certify that they will comply with all 
provider and course requirements as outlined in these sections.
(e) All providers' registrations are valid for two years. Providers that are 
already registered upon the effective date of these sections shall provide the 
required registration information at the request of the department, or no later 
than the second anniversary of the current provider registration.

sec.19.1006.Course Criteria. 
(a) To be registered, a course must be designed to increase the licensee's 
professional competence. 
(b) The course content shall be designed to enhance the knowledge and 
understanding of one or more of the following: insurance principles and 
coverages; applicable laws, rules and regulations; recent and prospective 
changes in coverages; law and the duties and responsibilities of the licensee; 
consumer protection; or insurance ethics. The course content may also include 
courses on management of the licensee's insurance business. These courses on 
management shall include those subjects specific to the business of insurance 
agency management, specific company policy provisions which cover technical 
aspects of the policies, or underwriting rules and standards. The course content 
for consumer protection shall include: 
(1) Article 21.21, Insurance Code; 
(2) The Unauthorized Insurers False Advertising Process Act, (Article 21.21-1, 
Insurance Code); 
(3) The Unfair Claim Settlement Practices Act (Article 21.21-2, Insurance Code), 
(4) The Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 
17, Business and Commerce Code); or 
(5) Analogous laws as specified by the department. 
(c) Meetings held in conjunction with the regular business of the licensee, or 
training relating to the marketing and business practices of a specific company, 
and those portions of the course content set forth in paragraphs (1) - (3) of 
this subsection shall not be considered applicable to continuing education 
requirements for insurance agents and adjusters:
(1) Course content teaching general accounting, speed reading or other general 
business skills or computer use, or computer software application use. 
(2) Course content teaching motivation, goal-setting, time management, 
communication, sales or marketing skills. 
(3) Course content providing for pre-licensing training or qualifying 
examination preparation. 
(d) The items listed in paragraphs (1) - (6) of this subsection must be 
maintained by the provider and must be furnished with the course application if 
requested by the department. Courses will not be reviewed unless a complete 
application and all of the listed items have been provided to the department. 
The application and items listed in paragraphs (1) - (6) of this subsection 
shall be maintained by the provider for four years; may be subject to random 
review by the department; and shall be provided to the department upon request. 
(1) A certification by the provider that the course meets the minimum 
requirements as defined in these sections. 
(2) The specific learning objectives. The learning objectives are the desired 
outcomes for the learning process and identify the knowledge, skills, or 
abilities the licensee is expected to obtain. 
(3) A detailed course content outline. 
(4) A table of contents for correspondence courses. 
(5) The method of evaluation by which the provider measures how effectively the 
course meets its objectives and provides for student input. 
(6) A sample of the certificate of completion which will be used when licensees 
successfully complete the registered course for approval by the department. The 
certificate of completion must be similar to the sample provided by the 
department and must contain, at a minimum, the following information: provider 
name and number, assignee name and number (if applicable), course name, course 
effective date, TDI course number(s), number of credit hours in each applicable 
category (adjuster, property and casualty, life, accident and health, consumer 
protection or insurance regulation and ethics), date of course completion, 
location of the class, TDI identification number and name of licensee completing 
courses, signature of person authorized to sign certificates and the date 
signed, and a certification by the licensee of completion of the course and the 
date signed. 
(e) Credit will not be awarded to licensees for courses taken or completed prior 
to the effective date assigned by the department or after the expiration date of 
the registration. 
(f) The provider shall at its option indicate whether the course is to be open 
to all licensees or will restrict enrollment to licensees of its choice. 
Restricted enrollment courses will not be included on lists of courses available 
to the public. 
(g) Providers may not advertise that their course has been registered by the 
department until such time that they have received written confirmation from the 
department of the registration of their course. Advertisements that include 
references to course registration by the department must also include the 
provider's name and TDI provider number. Advertisements may not be misleading as 
to the content or requirements for successful completion.
(h) All course registrations are valid for two years. Each course shall be 
reviewed every two years by the provider and updated to remain in compliance 
with this section (relating to Course Criteria) prior to re-submission for 
registration. If more than 25% of the course is changed prior to the course 
expiration date, or the change will affect the course content breakdown as 
registered by the department, the department will consider the course revised 
and the provider must resubmit the course to the department. 
(i) A course may be registered by the department, conditional upon subsequent 
review, after all the following steps have been completed:
(1) The provider is registered in accordance with sec.19.1005 of this subchapter 
(relating to Provider and Instructor Criteria). 
(2) The provider has submitted all items required by the department for course 
registration in accordance with this subchapter. 
(3) The content of the course meets the requirements identified in this 
subchapter. 
(j) Courses that the department does not register due to content shall not be 
considered for credit and cannot be used by licensees for continuing education 
credit. 
(k) If a course is not registered by the department, the provider may request 
re-evaluation, supplying specifics on how each portion of the course meets the 
minimum requirements for registration. If the course is presented during the 
department's re-evaluation, credit will not be authorized.

sec.19.1007.Types of Courses.
Continuing education courses shall consist of four types as described in 
paragraphs (1)-(4) of this section: 
(1) Classroom courses may include lectures, seminars, audio, video and computer-
based instruction, and teleconferences that take place in a classroom setting or 
a monitored environment that allow question and answer or discussion periods. 
Classroom courses also include programs offering classroom preparation for the 
national designation certification program examinations. 
(2) Self-study courses may include textbook, audio, video, computer-based 
instruction, or any combination of these in an independent study setting 
designed in such a manner as to insure that the course cannot be completed by 
the typical enrollee in less time than the period for which the course is 
certified to the department. 
(3) Any insurance course that is part of a degree curriculum of an accredited 
college or university so long as the course content clearly indicates a direct 
link to the business of insurance and/or claims processing.
(4) National designation certification programs which are insurance related. 

sec.19.1008.Hours of Credit.
Credit hours for continuing education courses are determined by the methods set 
forth in paragraphs (1)-(8) of this section: 
(1) Credit for classroom courses is determined by the number of minutes of 
instruction time divided by 60. Instruction time is considered the amount of 
time devoted to the actual instruction and does not include breaks that exceed 
more than 10 minutes per 2 hours of instruction time, lunch or dinner, 
introductions of speakers, or instructions. No more than 15 credit hours shall 
be recognized for any one course. 
(2) Credit for self-study courses, other than correspondence courses, is 
determined by the actual time it takes to complete the course, not including the 
examination. No more than 15 credit hours shall be recognized for any one 
course. 
(3) Credit for correspondence courses is calculated by using a total of 2600 
words of instructional text to one credit hour, or the average of the actual 
time it takes 5 licensees to complete the course, or the average credit hours 
assigned by all other states in which the course is certified or approved. The 
final examination and pre-tests are not authorized for use in determining 
credit. 
(4) Credit for college and university insurance courses is determined by 
successful completion. The number of hours of credit for college and university 
insurance courses is dependent on the number of classroom contact hours, which 
shall be no more than 15 credit hours per course. 
(5) Credit for national designation certification program examinations is 
determined by successfully passing the examination which shall be worth a 
maximum of 20 credit hours. Should the licensee also participate in a certified 
classroom course as defined in paragraph (1) of sec.19.1007 of this subchapter 
(relating to Types of Courses), the licensee must choose either the classroom 
presentation or the national designation certification program examination for 
credit. Credit will not be allowed for both classroom participation and 
certification program examination. 
(6) Credit for agents or adjusters who teach any portion of a registered course 
may receive hour for hour credit up to the maximum number of credit hours for 
the course. 
(7) Credit for any course will not be issued for less than the number of hours 
the course was assigned except to an instructor teaching a portion of the course 
and who does not attend the full course. 
(8) Credit for teaching or completing the same continuing education course more 
than once within the same reporting period shall not be granted for compliance 
with the continuing education requirement. 

sec.19.1009.Course Requirements for Successful Completion. 
(a) Providers shall use attendance rosters or an assessment measurement to 
certify completion of a classroom continuing education course. Attendance of at 
least 90% of the course is required to complete the course when using attendance 
rosters. A means to ensure that the licensee attended the full or at least 90% 
of the course shall be established. Attendance records must include at a 
minimum: sign-in and sign-out sheets, the legible names, addresses, and TDI ID 
number of each licensee in attendance. 
(b) Providers shall use a written examination to evaluate the licensee's 
competency and the effectiveness of continuing education courses that do not use 
monitored attendance and classroom courses that do not use attendance as the 
means of completion. Course records must include at a minimum: the name of the 
exam monitor, the date the exam was taken, the final examination score, the 
examination version used, the legible name, address and the TDI ID number of 
each licensee for each examination attempt. The written examination shall meet 
the criteria set forth in paragraphs (1)-(7) of this subsection:
(1) Final examination questions shall not be the same or substantially the same 
questions the licensee previously encountered in the course materials or review 
exams and cannot be designed such that the correct answer is obvious by its 
content. 
(2) Security measures shall be in place to maintain the integrity of the 
examination and ensure that the enrolled licensee is the individual who took the 
examination. 
(3) Answers to the examination shall not be given to the licensees at any time 
before, during or after the course. 
(4) Examinations shall be graded by an authorized staff member. 
(5) Licensees shall be allowed to retake an examination if a 70% passing score 
is not achieved. The retest shall consist of an alternate examination consisting 
of different questions from the original examination.
(6) Final examinations shall consist of at least three complete exams which are 
distributed alternatively to enrollees of the course and are revised/updated 
every two years by the provider consistent with the course update/revision. 
(7) The final examination shall be monitored by a disinterested third party not 
related to the licensee and taken without the use of the course materials or 
personal notes. The final examination must be provided in a separate, sealed 
envelope and only opened by the person who will be monitoring the licensee's 
final examination. Upon completion of the examination, the person monitoring the 
examination should mail the completed examination directly to the provider. 
(c) Providers shall issue certificates of completion to licensees who 
successfully complete a registered course. The certificate must be issued in a 
manner which will ensure that the person receiving the certificate is the 
licensee who took the course, must be issued within a reasonable period of time, 
and completed to reflect the date the licensee took the course/examination. The 
completed certificate must include the course and licensee information specified 
in sec.19.1006(d)(6) of this subchapter (relating to Course Criteria). 

sec.19.1010.Obtain Forms.
Application forms for [exemption,] provider <nl> registration<ol>, [and] course 
<nl>registration<ol> [certification forms], <nl>sample certificates<ol> 
[certificate] of completion [forms], and the list of courses can be obtained 
from the Texas Department of Insurance, Continuing Education Coordinator,  <nl> 
Licensing Group<ol> [Agent Activity], 333 Guadalupe. P.O. Box 149104, Austin, 
Texas 78714-9104. 

sec.19.1011.Licensee Comppliance. 
(a) Licensees may <nl>meet their continuing education requirements by 
choosing<ol> [choose] courses from [any of] the courses registered with the 
department [approved] for their type of license. [to meet the continuing 
education compliance requirements.]<nl> Licensees<ol> [with the exception of a 
licensees] holding <nl> multiple licenses<ol> [a license] under the Insurance 
Code, <nl> Articles<ol> [Article] 21.07-1,<nl> 21.07-3<ol> and [Article] 21.14 
[who] may take courses applicable to [either] <nl> any of those<ol> license 
<nl>types<ol> [type] for the 30 hours of continuing education compliance 
requirements. 
(b) Agents and adjusters shall provide evidence of completion of continuing 
education upon request of the department. Each licensee shall maintain evidence 
of each course completed for <nl>a period of four years from the date of 
completion of the course<ol> [the current and next preceding renewal period 
which generally consists of a minimum of four years] for the purpose of audit. 
(c) (No change.)

sec.19.1012. <nl>Provider Compliance<ol> [Audit of Continuing Education 
Records].
(a) [All continuing education records and evidence of continuing education of 
licensees maintained for the period required are subject to review by the 
Department at any time. Accuracy of a licensee's records is subject to 
verification at any time.]
[(b)] All continuing education records, rosters, and course materials, including 
final examinations, of providers <nl> shall<ol> [must] be maintained for at 
least four years and are subject to review by the department at any time. 
<nl>(b)<ol> <nl>Providers shall notify the department when a course is 
discontinued or no longer active, and when there is a change to the provider's 
information of record. <ol>
(c) <nl>At the department's request, providers shall furnish course data in an 
acceptable electronic format.<ol>
<nl>(d)<ol>If continuing education records are audited or reviewed and the 
validity or completeness of <nl> the records<ol> [same] are questioned, the 
[licensee or] provider shall have 30 days from the date of notice [of 
discrepancies] to correct discrepancies or submit new documentation. <nl>Should 
the provider fail to satisfactorily remedy the discrepancy within 30 days, the 
department shall automatically cancel the course registration effective the 31st 
day from the date of the notice and will suspend the provider's future 
registration status until such time as the discrepancy is resolved.<ol>
<nl>(e)<ol> <nl>Registration of providers is conditioned upon the provider's 
compliance with these provisions. Repeated non-compliance with this subchapter 
may be considered grounds for non-renewal of a provider's registration. For 
providers who fail to comply with this subchapter, the department may remove the 
certification of courses and restrict a provider's ability to provide continuing 
education courses for up to one year.<ol> 
<nl>(f)<ol> <nl>The department may conduct audits of any certified course 
without prior notice to the provider. Department staff, or the department's 
representative or designee, may enroll and take courses without identifying 
themselves as employees or representatives of the department. <ol>

sec.19.1013.Failure to Comply.
(a) Failure by a licensee to comply with the continuing education requirements 
in the absence of a valid exemption, or falsification of records of compliance 
by the licensee,<nl> or knowing acceptance of a certificate of completion for a 
course which does not comply with the registration requirements of this 
subchapter may, after notice and opportunity for hearing, subject the licensee 
to<ol> [is subject to disciplinary action after notice and hearing.] <nl>an 
administrative penalty <ol> [a fine], suspension, revocation or cancellation of 
a license in accordance with the Insurance Code, Articles 1.10, sec.7; 21.07-1, 
sec.12; 21.14, sec.16; 21.07-3, sec.12; and/or 21.07-4, sec.17 or any other 
applicable laws or statutes. <nl>The department considers the following to be 
some examples of violations of this subchapter:<ol> 
<nl>(1)<ol> <nl>The use, submission or filing of any document which is all or in 
part false or deceptive for the purpose of complying with the continuing 
education statutes and this subchapter, or in responding to any inquiry from the 
department concerning compliance. <ol>
<nl>(2)<ol> <nl> Obtaining or accepting any certificate of completion or 
certificate of attendance from a provider when the licensee has not met the 
minimum completion requirements.<ol>
<nl>(3)<ol> <nl> Cheating or using unauthorized materials or receiving 
unauthorized assistance during an examination. <ol>
(b) Failure by a provider to comply with this subchapter, or falsification of 
any records by the provider <nl>or participation in any activities which allow 
circumvention of the requirements of the applicable statutes or this 
subchapter<ol> may subject the courses of the provider to be <nl>immediately<ol> 
removed from the list of registered courses[, and cause the courses to be 
decertified]. <nl> Failure by a provider to comply with this subchapter may 
also, after notice and opportunity for hearing, subject the provider to be 
prohibited from participating in any department registered continuing education 
programs for a period not to exceed one year. The department considers the 
following to be some examples of violations of this subchapter:<ol> 
<nl>(1)<ol> <nl>Holding out to the public that the provider is authorized to 
offer department registered continuing education courses prior to the receipt of 
approval of the provider application from the department. <ol>
<nl>(2)<ol> <nl> Advertising as registered and soliciting attendance for any 
course prior to notice of registration of such course from the department.<ol>
<nl>(3)<ol> <nl> The use of unqualified instructors to present otherwise 
registered continuing education courses. <ol>
<nl>(4)<ol> <nl> Failure to maintain course records for the required time 
period. <ol>
<nl>(5)<ol> <nl> The use, submission or filing of any document for the purpose 
of complying with the continuing education statutes and this subchapter, or in 
responding to any inquiry from the department concerning continuing education, 
when the provider knows or should know that the document, or any part of it is 
false or deceptive. <ol>
<nl>(6)<ol> <nl> Failure to use the approved course outline. <ol>
<nl>(7)<ol> <nl> Failure to notify the department of changes to any course which 
are required to be reported. <ol>
<nl>(8)<ol> <nl> Failure to conduct the certified course, as specified in the 
course application.<ol>
(9) <nl>Failure to monitor course attendance where monitoring is required.<ol>
<nl>(10)<ol> <nl> Failure to provide timely refunds to participants when 
required.<ol>
<nl>(11)<ol> <nl> Failure to file or the late filing of any form or other 
required information. <ol>
<nl>(12)<ol> <nl> Failure to insure an appropriately monitored examination where 
monitoring is required. <ol>
<nl>(c)<ol> <nl>A single violation may subject the provider to suspension of the 
department registration for each course for not more than one year. <ol>
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 August 19, 1996.
TRD-96112086
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-6327

SUBCHAPTER K.Agents and Adjusters Guidelines for Minimum Standards For 
Continuing Education Courses
28 TAC sec.sec.19.1005-19.1009
(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 Insurance or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Insurance proposes the repeals to sec.sec.19.1005-
19.1009 of Subchapter K, concerning minimum standards for continuing education 
courses for agents and adjusters. The repeal is proposed to enable the 
Commissioner of Insurance to adopt new sec.sec.19.1005-19.1009 concerning the 
continuing education program for agents and adjusters. The department will 
simultaneously propose new sec.sec.19.1005-19.1009, as well as amendments to 
sec.sec.19.1001-19.1004 and 19.1010-19.1013, which appear elsewhere in this 
issue of the Texas Register. 
Edna Ramon Butts, senior associate commissioner, regulation and safety, has 
determined that for each year of the first five years the proposed repeal will 
be in effect, there will be no fiscal implications for state or local 
government, or small business as a result of enforcing or administering the 
repeal. There will be no effect on the local economy or local employment. Ms. 
Butts has also determined that for each year of the first five years the repeal 
is in effect, the anticipated public benefit is the simultaneous adoption of new 
sec.sec.19.1005-19.1009, concerning the continuing education program for agents 
and adjusters. On the basis of cost per hour of labor, there is no anticipated 
difference in cost of compliance between small and large businesses. There is no 
anticipated economic cost to persons required to comply with the repeal as 
proposed. 
Comments on the proposal must be submitted within 30 days after publication of 
the proposed repeal in the Texas Register to Caroline Scott, General Counsel and 
Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-2A, Austin, 
Texas 78714-9104. An additional copy of the comment must be submitted to Edna 
Ramon Butts, Senior Associate Commissioner, Regulation and Safety, Texas 
Department of Insurance, P. O. Box 149104, MC 107-2A, Austin, Texas 78714-9104. 
Any requests for public hearing on this proposal should be submitted separately 
to the Office of the Chief Clerk.
The repeals are proposed pursuant to the Insurance Code, Articles 21.07-1, 
21.07-3, 21.07-4, 21.14, and 1.03A, and the Government Code, sec.sec.2001.004 et 
seq (Administrative Procedure Act). The Insurance Code, Articles 21.07-1, 
sec.3A, 21.07-3, sec.6A, 21.07-4, sec.7A and 21.14, sec.sec.5b and 5d authorize 
the department to adopt a procedure for establishing guidelines for continuing 
education programs for agents and adjusters. Insurance Code, Article 1.03A 
provides that the Commissioner of Insurance may adopt rules and regulations to 
execute the duties and functions of the Texas Department of Insurance only as 
authorized by a statute. The Government Code, sec.sec.2001.004 et seq authorize 
and require each state agency to adopt rules of practice setting forth the 
nature and requirements of available procedures and to prescribe the procedures 
for adoption of rules by a state agency. 
The following statutes and rules are affected by this proposal: Rules Statutes 
28 TAC sec.sec.19.1005-19.1009 Insurance Code, Articles 21.07-1, 21.07-3, 21.07-
4, and 21.14. 
sec.sec.19.1005.Course Criteria.
sec.sec.19.1006.Types of Courses.
sec.sec.19.1007.Hours of Credit.
sec.sec.19.1008.Course Requirements for Successful Completion. 
sec.sec.19.1009.Course Certification. 
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 August 19, 1996.
TRD-9612087
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-6327

SUBCHAPTER P. Fees Charged by Local Recording Agents 
28 TAC sec.sec.19.1501 - 19.1503
The Texas Department of Insurance proposes amendments to sec.sec.19.1501-19.1502 
and new sec.19.1503 concerning fees charged by local recording agents to 
purchasers of insurance policies. The amendments delete reference to repealed 
Insurance Code, Article 21.14, sec.4(e) and insert reference to the Insurance 
Code, Articles 21.35A and 21.35B concerning reimbursement and payments agents 
are permitted to charge clients. Articles 21.35A and 21.35B were amended by the 
74th Legislature. The proposed amendment to sec.sec.19.1501-19.1502 and new 
sec.19.1503 harmonizes the provisions of Articles 21.35A and 21.35B. Section 
19.1501 sets out the purpose and scope of this subchapter. Section 19.1502 
amends the definitions for fees and local recording agent, deletes definitions 
for board, company and person, and adds definitions for membership dues, agent 
fee, inspection fee, policy fee, and service fee. Existing sec.19.1503, which 
refers to adoption by reference of the Disclosure Statement for Local Recording 
Agents' Fees form, has been proposed for repeal elsewhere in this issue of the 
Texas Register. The department will no longer promulgate a form for disclosure 
of fees charged by local recording agents. Instead, local recording agents must 
maintain written records of the required disclosures which must be made 
available to the department for inspection or copying. New sec.19.1503 sets out 
the procedures which must be followed when local recording agents charge clients 
fees. Local recording agents must disclose to a client, in writing, the 
following: that the agent has notified the client of the agent's reimbursement 
or fee requirement; the policy fee, agent fee, service fee or inspection fee, if 
any, charged by the agent on the transaction; the client's written agreement to 
the charges, including the client's signature; the toll-free telephone number of 
the department for information on how to file a complaint, an itemized list of 
the services provided and the corresponding charges for each service. Section 
19.1504 has been proposed for repeal elsewhere in this issue of the Texas 
Register since the text of the section is now included in new sec.19.1503. 
Edna Ramon Butts, senior associate commissioner, regulation and safety, has 
determined that, for the first five-year period the proposal will be in effect, 
there will be no fiscal implications for state or local government, or small 
businesses as a result of enforcing or administering the amendments to the 
subchapter. 
Ms. Butts has also determined that for each year of the first five years the 
proposed amendments are in effect, the public benefit anticipated as a result of 
enforcing the amendments will be that consumers will have access to more 
information on what fees may be properly charged by local recording agents, 
which will deter agents from improperly charging fees not authorized by 
consumers. Consumers will be able to make better informed choices when deciding 
where and how to spend their insurance dollars. There is no anticipated 
additional cost to local recording agents who comply with proposed sec.19.1503 
since local recording agents already are required to use a disclosure form when 
invoicing clients for fees pursuant to Insurance Code, Article 21.35A.
There will be additional costs to local recording agents who comply with 
proposed sec.19.1503 as it applies to disclosure of fees under Insurance Code, 
Article 21.35B. The cost to agents is anticipated to be a one-time cost of $12 
to $45 in order to produce a fee disclosure form. Agents may then incur between 
.01 to .05 cents per sheet to copy the disclosure form. Part of that cost may be 
offset by the agents' ability to collect fees for the services provided. On the 
basis of cost per hour of labor, there is no anticipated difference in cost of 
compliance between small and large businesses.
Comments on the proposal to be considered by the department must be submitted in 
writing, within 30 days after publication of the proposed amendments in the 
Texas Register, to Caroline Scott, General Counsel and Chief Clerk, Texas 
Department of Insurance, P.O. Box 149104, Mail Code 113-1C, Austin, Texas 78714-
9104. An additional copy of the comments must be submitted to Edna Ram&oacute;n 
Butts, Senior Associate Commissioner, Regulation and Safety, Texas Department of 
Insurance, P.O. Box 149104, MC 107-2A, Austin, Texas 78714-9104. Request for a 
public hearing should be submitted separately to the Chief Clerk's office. 
The sections are proposed under the Insurance Code, Articles 21.35A, 21.35B, and 
1.03A, and the Government Code, sec.sec.2001.004 et seq (Administrative 
Procedure Act). The Insurance Code, Article 21.35A sets out the fees a local 
recording agent may charge a client for reimbursement of certain costs. Article 
21.35B establishes the various payments an insurer, its agent, or sponsoring 
organization may collect. Article 1.03A provides that the Commissioner of 
Insurance may adopt rules and regulations to execute the duties and functions of 
the Texas Department of Insurance only as authorized by a statute. The 
Government Code, sec.sec.2001.004 et seq authorizes and requires each state 
agency to adopt rules of practice setting forth the nature and requirements of 
available procedures and to prescribe the procedures for adoption of rules by a 
state agency. 
The following rules and statutes are affected by the proposed amendment: Rules 
Statutes sec.sec.19.1501-19.1503 Insurance Code, Articles 21.35A, 21.35B.

sec.19.1501.General Provisions.
(a) <nl>Purpose and Scope. The purpose of this subchapter is to insure full 
disclosure of fees local recording agents charge purchasers of insurance 
policies. This subchapter applies to all fees authorized to be charged by local 
recording agents.<ol> [Statutory basis and purpose. This subchapter implements 
the provisions of Article 21.14, sec.4(e) which was enacted in 1991 as Chapter 
685 at page 2857 of the Acts of the 72nd Legislature and which first became 
effective on June 16, 1991.] 
(b) (No change.)

sec.19.1502.Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings unless the context clearly indicates otherwise.
<nl>Agent fee<ol>-A charge made by a local recording agent, in lieu of or in 
addition to the commission, for services the agent has actually performed in 
connection with the sale of a particular policy.
[Board -The State Board of Insurance.]
[Company-Any insurance company, corporation, inter-insurance exchange, mutual, 
reciprocal, association, Lloyds, or other insurance carrier licensed to transact 
business in the State of Texas other than orders, societies, associations, or 
auxiliaries excepted from Texas Insurance Code, Article 21.14.] 
Fees-<nl>Include the following:<ol>
<nl>(A)<ol> <nl> reimbursements for costs incurred by a local recording agent in 
obtaining a motor vehicle record of a person, or a photograph of property that 
is or will be insured under an insurance policy, which may not exceed the actual 
costs incurred by the local recording agent; <ol>
<nl>(B)<ol> <nl> charges made by a local recording agent for services rendered 
to a client which may include special delivery or postal services, printing and 
reproduction services, electronic mail service, telephone transmission costs, 
and similar costs that the local recording agent incurs on the client's behalf; 
<ol>
<nl>(C)<ol> <nl> policy fees, agent fees, service fees, inspection fees, or 
membership dues in a sponsoring organization. [Fees authorized by Texas 
Insurance Code, Article 21.14 sec.4(e), which may include a charge for services 
rendered to a client. These services may include special delivery or postal 
charges; printing and reproduction costs; electronic mail costs; telephone 
transmission costs; and similar costs that the local recording agent may incur 
on behalf of the client.] <ol>
<nl>Inspection fee<ol><nl>-A charge made by a local recording agent for 
examination of a risk to be insured to determine acceptance, rejection or rate. 
<ol>
Local recording agent-<nl>A person subject to licensing under Insurance Code, 
Article 21.14.<ol> [A person engaged in soliciting and writing insurance, being 
authorized by a company, including fidelity and surety companies, to solicit 
business and to write, sign, execute, and deliver policies of insurance and to 
bind companies on insurance risks, and who maintains an office and a record of 
such business and the transactions which are involved, who collects premiums on 
such business and otherwise performs the customary duties of a local recording 
agent representing a company in its relation with the public, or a person 
engaged in soliciting and writing insurance, being authorized by a company, 
including fidelity and surety companies, to solicit business, and to forward 
applications for insurance to the home office of the companies, where the 
company's general plan of operation in this state provides for the appointment 
and compensation of agents for and for the execution of policies of insurance by 
the home office of the company, or by a supervisory office of such company, and 
who maintains an office and a record of such business and the transactions which 
are involved and collects premiums on such business and otherwise qualifies and 
performs the customary duties of a local recording agent representing the 
company in its relation with the public.] 
<nl>Membership dues<ol>-A payment or obligation required by an organization or 
group for an individual to be considered a member or part of the organization or 
group.
[Person-An individual, a corporation, a partnership, an association, a joint 
stock company, a trust, an unincorporated organization, any similar entity or 
any combination of the foregoing acting together.]
<nl>Policy fee<ol><nl>-A charge collected by a local recording agent on behalf 
of an insurer, in addition to the premium, in connection with issuance of the 
policy. <ol>
<nl>Service fee<ol><nl>-A charge made by a local recording agent for performing 
the necessary business functions associated with writing a policy of insurance. 
These charges may include special delivery or postal charges, printing and 
reproduction costs, electronic mail costs, telephone transmission costs, and 
similar costs incurred by the agent on behalf of the client. These charges may 
not exceed the actual costs incurred by the agent.<ol>

sec.19.1503.Procedures for Charging Fees.
(a) A local recording agent may charge a client a fee to reimburse the agent for 
those costs specifically enumerated in the Insurance Code, Article 21.35A(b). A 
local recording agent may also charge a client those fees listed in Articles 
21.35A(c) and 21.35B(a) and set out in the definition of fees in this 
subchapter. 
(b) The local recording agent must follow the procedures for disclosure set out 
in this subsection when charging a client for these fees. The local recording 
agent must obtain the written agreement of the client to the charges, including 
the client's signature. The local recording agent must disclose, to a client, 
the following information in writing: 
(1) that the agent has notified the client of the agent's reimbursement or fee 
requirement prior to incurring the expense or providing the service;
(2) the policy fee, agent fee, service fee or inspection fee, if any, charged by 
the agent on the transaction; 
(3) the toll-free telephone number (1-800-252-3439) of the Texas Department of 
Insurance and a statement in bold face type advising the client that the client 
may call that number to obtain information on how to file a complaint if the 
client did not agree to the charges in advance or if the client does not agree 
to the reasonableness of the charges; and (4) a complete, itemized listing of 
the services provided for which the client is being charged and the 
corresponding charge for each itemized service. 
(c) All files relating to fees, including written records of disclosure of fees, 
must be maintained in a separate file for a period of five years and must be 
made available to the Texas Department of Insurance for inspection or copying 
upon request to insure compliance with this subchapter and Texas Insurance Code, 
Articles 21.35A and 21.35B. 
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 August 19, 1996.
TRD-9612085
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-6327

28 TAC sec.sec.19.1503-19.1504
(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 Insurance or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Insurance proposes the repeals to sec.sec.19.1503-
19.1504 of Subchapter P, concerning fees charged by local recording agents to 
purchasers of insurance policies. The repeal is proposed to enable the 
Commissioner of Insurance to adopt amended sec.sec.19.1501-19.1502 and new 
sec.19.1503 concerning fees charged by local recording agents. The department 
will simultaneously propose amendments to sec.sec.19.1501-19.1502 as well as new 
sec.19.1503, which appear elsewhere in this issue of the Texas Register. 
Edna Ramon Butts, senior associate commissioner, regulation and safety, has 
determined that for each year of the first five years the proposed repeal will 
be in effect, there will be no fiscal implications for state or local 
government, or small business as a result of enforcing or administering the 
repeal. There will be no effect on the local economy or local employment. Ms. 
Butts has also determined that for each year of the first five years the repeal 
is in effect, the anticipated public benefit is the simultaneous adoption of 
proposed amendments to sec.sec.19.1501-19.1502 and new sec.19.1503 regarding 
fees charged by local recording agents to purchasers of insurance policies. On 
the basis of cost per hour of labor, there is no anticipated difference in cost 
of compliance between small and large businesses. There is no anticipated 
economic cost to persons required to comply with the repeal as proposed. 
Comments on the proposal must be submitted within 30 days after publication of 
the proposed repeal in the Texas Register to Caroline Scott, General Counsel and 
Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-1C, Austin, 
Texas 78714-9104. An additional copy of the comment must be submitted to Edna 
Ram&oacute;n Butts, Senior Associate Commissioner, Regulation and Safety, Texas 
Department of Insurance, P. O. Box 149104, MC 107-2A, Austin, Texas 78714-9104. 
Any requests for public hearing on this proposal should be submitted separately 
to the Office of the Chief Clerk. 
The repeals are proposed pursuant to the Insurance Code, Articles 21.35A, 
21.35B, and 1.03A, and the Government Code, sec.sec.2001.004 et seq 
(Administrative Procedure Act). The Insurance Code, Article 21.35A sets out the 
fees a local recording agent may charge a client for reimbursement of certain 
costs. Article 21.35B establishes various payments an insurer, its agent, or 
sponsoring organization may collect. Insurance Code, Article 1.03A provides that 
the Commissioner of Insurance may adopt rules and regulations to execute the 
duties and functions of the Texas Department of Insurance only as authorized by 
a statute. The Government Code, sec.sec.2001.004 et seq authorize and require 
each state agency to adopt rules of practice setting forth the nature and 
requirements of available procedures and to prescribe the procedures for 
adoption of rules by a state agency. 
The following statutes and rules are affected by this proposal: Rules Statutes
sec.19.1503-19.1504 Insurance Code, Articles 21.35A, 21.35B.
sec.19.1503.Adoption by Reference of Forms Relating to Fees Charged by Agents.
sec.19.1504.Procedures for Charging Fees.
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 August 19, 1996.
TRD-9612088
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-6327

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 3. Tax Administration
SUBCHAPTER O. State Sales and Use Tax
34 TAC sec.3.351
(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 Comptroller of 
Public Accounts or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin). 
The Comptroller of Public Accounts proposes the repeal of sec.3.351, concerning 
the Economic Recovery Tax Act of 1981. The section is being repealed because the 
Internal Revenue Code, sec.168(f)(8), no longer exists. The Tax Equity and 
Fiscal Responsibility Act of 1982, as Public Law 97-248, repealed the temporary 
federal tax benefits for the safe-harbor leases formerly described in 
sec.168(f)(8). 
Mike Reissig, chief revenue estimator, has determined that for the first five-
year period the repeal 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 
repeal is in effect the public benefit anticipated as a result of enforcing the 
rule will be in providing 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 repeal may be submitted to Karey W. Barton, Manager, Tax Policy 
Division, P.O. Box 13528, Austin, Texas 78711. 
This repeal 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 repeal implements the Tax Code, sec.111.002.

sec.3.351. Economic Recovery Tax Act of 1981. 
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 August 14, 1996. 
TRD-9611861
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-4028

CHAPTER 5.Funds Management (Fiscal Affairs)
Claims Processing-Purchase Vouchers
34 TAC sec.5.52, sec.5.53
(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 Comptroller of 
Public Accounts or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Comptroller of Public Accounts proposes the repeal of sec.5.52 and sec.5.53, 
concerning requirements for all purchase vouchers and requirements for certain 
types of purchase vouchers. The sections are being repealed because they are no 
longer necessary. 
Mike Reissig, chief revenue estimator, has determined that repeal of the rule 
will not result in any fiscal implications to the state or to units of local 
government. 
Mr. Reissig also has determined that the repeal will benefit the public and 
state agencies by providing them with new information regarding purchase 
vouchers. There will be no effect on small businesses. There are no additional 
costs to persons who are required to comply with the repeal. 
Comments on the proposal may be addressed to Kenny McLeskey, Manager of Claims 
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure that 
the comptroller considers and responds to a comment made about this proposal, 
then the person must ensure that the comptroller receives the comment not later 
than the 30th day after the issue date of the Texas Register in which this 
proposal appears. If the 30th day is a state or national holiday, Saturday, or 
Sunday, then the first workday after the 30th day is the deadline.  
The repeals are proposed under the Government Code, sec.sec.403.011, 403.071, 
403.078, 2101.035, and 2103.004. These statutes generally require a state agency 
to submit payment vouchers to the comptroller in the form and with the 
information required by the comptroller. The statutes also require the 
comptroller to audit those vouchers on a pre-payment or post-payment basis. 
Finally, the statutes authorize the comptroller to adopt rules for the effective 
operation of the uniform statewide accounting system. 
The repeals implement the Government Code, sec.sec.403.011, 403.071, 403.078, 
2101.035, and 2103.004. 
sec.5.52.Requirements for All Purchase Vouchers. 
sec.5.53.Requirements for Certain Types of Purchase Vouchers.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on August 19, 1996.
TRD-9612077
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-4028

34 TAC sec.5.56
(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 Comptroller of 
Public Accounts or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Comptroller of Public Accounts proposes the repeal of sec.5.56, concerning 
fiscal year determination procedures. The section is being repealed so that a 
substantially revised section may be adopted. Mike Reissig, chief revenue 
estimator, has determined that repeal of the rule will not result in any fiscal 
implications to the state or to units of local government. 
Mr. Reissig also has determined that the repeal will benefit the public and 
state agencies by providing them with new information regarding fiscal year 
determination procedures. There will be no effect on small businesses. There are 
no additional costs to persons who are required to comply with the repeal. 
Comments on the proposal may be addressed to Kenny McLeskey, Manager of Claims 
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure that 
the comptroller considers and responds to a comment made about this proposal, 
then the person must ensure that the comptroller receives the comment not later 
than the 30th day after the issue date of the Texas Register in which this 
proposal appears. If the 30th day is a state or national holiday, Saturday, or 
Sunday, then the first workday after the 30th day is the deadline. 
The repeal is proposed under the Government Code, sec.2101.035, which authorizes 
the comptroller to adopt rules for the effective operation of the uniform 
statewide accounting system. 
The repeal implements the General Appropriations Act and the Government Code, 
sec.2101.035. 
sec.5.56.Fiscal Year Determination Procedures.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on August 19, 1996.
TRD-9612078
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-4028

34 TAC sec.5.56
The Comptroller of Public Accounts proposes new sec.5.56, concerning 
appropriation year determination, to replace sec.5.56 that is being repealed. 
The new section is necessary for the following reasons. 
First, the implementation of the uniform statewide accounting system (USAS) has 
changed the terminology used when determining the correct fiscal year to charge 
for a purchase. Instead of using the term "fiscal year" in this context, 
"appropriation year" is now used. The new section will reflect the current 
terminology. 
Second, the former section about fiscal year determination did not cover how to 
determine the correct appropriation year to charge when a state agency grants 
money to another agency or to a private person or entity. The new section will 
set forth the correct procedure. 
Third, the former section attempted to cover all the issues about when a 
contract is formed between a state agency and another entity. Because the 
legislature has greatly expanded the ways that state agencies may enter into 
contracts, the new section will not cover these issues. The determination of 
when a contract is formed has always depended on the basic principles of 
contract law. Therefore, the omission of information in the new section about 
these issues will not have any substantive effect. 
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 information regarding appropriation year 
determination. There will be no significant fiscal implications for small 
businesses. There is no significant anticipated economic cost to persons who are 
required to comply with the proposed rule. 
Comments on the proposal may be addressed to Kenny McLeskey, Manager of Claims 
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure that 
the comptroller considers and responds to a comment made about this proposal, 
then the person must ensure that the comptroller receives the comment not later 
than the 30th day after the issue date of the Texas Register in which this 
proposal appears. If the 30th day is a state or national holiday, Saturday, or 
Sunday, then the first workday after the 30th day is the deadline. 
The new section is proposed under the Government Code, sec.2101.035, which 
authorizes the comptroller to adopt rules for the effective operation of the 
uniform statewide accounting system. 
The new section implements the General Appropriations Act and the Government 
Code, sec.2101.035.  

sec.5.56.Appropriation Year Determination.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Appropriation year-The accounting period beginning on September 1st and 
ending the following August 31st. 
(2) Capital asset-A good other than a consumable that benefits a state agency 
during more than one appropriation year. 
(3) Comptroller-The comptroller of public accounts for the State of Texas. 
(4) Consumable-A good that perishes with use and that, under ordinary 
circumstances, will be entirely used during one appropriation year. 
(5) Include-A term of enlargement and not of limitation or exclusive 
enumeration. The use of the term does not create a presumption that components 
not expressed are excluded. 
(6) Institution of higher education-Has the meaning assigned by the Education 
Code, sec.61.003. 
(7) May not-A prohibition. The term does not mean "might not" or its 
equivalents. 
(8) State agency-A department, board, commission, committee, council, agency, 
office, or other entity in the executive, legislative, or judicial branch of 
Texas state government, the jurisdiction of which is not limited to a 
geographical portion of this state. The term includes an institution of higher 
education. 
(b) General requirements and exceptions. 
(1) A state agency must comply with this section when determining the 
appropriation year to be charged for the agency's: 
(A) purchase of a good, service, or capital asset; or 
(B) payment of a grant. 
(2) The comptroller may require a state agency to make available to the 
comptroller the documentation that supports the agency's classification of a 
payment as a consumable, service, capital asset, or grant.
(3) This section does not apply to the extent it conflicts with Texas law, 
including a valid rider or other provision of the General Appropriations Act. 
(4) This section does not apply to a purchase that is paid with non-appropriated 
funds. 
(c) Purchases of consumables. 
(1) Except as provided in paragraph (2) of this subsection, a state agency must 
charge a purchase of consumables to the appropriation year in which their 
delivery to the agency occurs. 
(2) Except as provided in paragraph (3) of this subsection, a state agency may 
not charge a purchase of consumables to a particular appropriation year if it 
would be unreasonable to anticipate that the agency will consume all the 
consumables during that year. 
(3) A state agency may charge the appropriation year that immediately precedes 
the appropriation year in which consumables are delivered to the agency for 
their purchase if: 
(A) the agency contracted for the consumables during the immediately preceding 
appropriation year and, at the time of the contracting, the agency reasonably 
anticipated that the consumables would be delivered during that year; 
(B) the delivery of the consumables was delayed until the next appropriation 
year for reasons beyond the agency's reasonable control; and 
(C) the order quantity was no more than the agency could have consumed before 
the end of the immediately preceding appropriation year had the delivery 
occurred as originally expected. 
(d) Purchases of services. 
(1) A state agency must charge a purchase of services to the appropriation year 
in which the services are rendered. The agency may not charge a particular 
appropriation year for the payment of a service contract that is performed 
during a different appropriation year. 
(2) Payments under a service contract that is performed over more than one 
appropriation year must be prorated so that each appropriation year is charged 
only to the extent of the services performed during that year.  
(e) Purchases of capital assets. 
(1) Except as provided in paragraphs (2)-(3) of this subsection, a state agency 
must charge the purchase of a capital asset to the appropriation year in which 
the agency enters into a valid contract for the purchase. The date on which the 
capital asset is delivered to the agency is irrelevant.
(2) A state agency may contract during a particular appropriation year for the 
purchase of a capital asset in reliance on an existing appropriation for a 
subsequent appropriation year so long as payment for the asset does not occur 
until after the start of the subsequent year. For example, assume that the 
General Appropriations Act for appropriation years 1998 and 1999 is signed by 
the governor on June 1, 1997. A state agency may contract after May 31, 1997, 
for the purchase of a capital asset and pay for the asset with appropriation 
year 1998 funds so long as the payment is not made until after August 31, 1997. 
Similarly, the agency may contract after May 31, 1997, for the purchase of a 
capital asset and pay for the asset with appropriation year 1999 funds so long 
as the payment is not made until after August 31, 1998. If the agency contracts 
before June 1, 1997, for the purchase of a capital asset, the agency may not use 
appropriation year 1998 or 1999 funds to pay for the asset because the 
appropriations for those years are not in existence on the date the contract is 
entered into. 
(3) A payment made under a lease-purchase agreement must be charged to the 
appropriation year in which the payment is made. 
(f) Grant payments. A state agency's payment of a grant to an individual or 
entity must be charged to the appropriation year in which the agency contracts, 
awards, or otherwise legally commits to pay the grant if an appropriation for 
that year and purpose is available. Otherwise, the payment must be charged to 
the first appropriation year for which an appropriation is available. This 
subsection applies regardless of how the grantee will use the grant funds. This 
subsection also applies even if the payments under a grant contract will be made 
over more than one appropriation year. 
(g) Contracts for the purchase of a combination of consumables, services, and 
capital assets. 
(1) This subsection applies only to: 
(A) a contract that involves the purchase of two or more of the following: a 
consumable, a service, or a capital asset; or 
(B) two or more closely related contracts that together involve the purchase of 
two or more of the following: a consumable, a service, or a capital asset. 
(2) If the dominant purpose of one or more contracts is to purchase a 
consumable, then subsection (c) of this section governs the determination of the 
correct appropriation year to charge for the purchases.
(3) If the dominant purpose of one or more contracts is to purchase a service, 
then subsection (d) of this section would govern the determination of the 
correct appropriation year to charge for the purchases.
(4) If the dominant purpose of one or more contracts is to purchase a capital 
asset, then subsection (e) of this section would govern the determination of the 
correct appropriation year to charge for the purchases.
(h) Purchase options. The appropriation year in which a state agency exercises a 
contractual option to purchase a good, service, or capital asset must be charged 
for the cost of exercising that option, subject to this section's requirements 
for determining the correct appropriation year to charge for the purchase. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on August 19, 1996.
TRD-9612079
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 463-4028

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART IV. Texas Commission for the Blind
CHAPTER 163. Vocational Rehabilitation Program
The Texas Commission for the Blind proposes amendments to sec.sec.163.4 and the 
repeal of sec.sec.163.50, 163.51 and 163.52 of Chapter 163 concerning the 
provision of vocational rehabilitation services. New sec.sec.163.50, 163.51, and 
163.52 are being proposed concurrently. The purpose of the amendments, repeals, 
and new sections is to comply with section 101(a)(5)(A) of the Rehabilitation 
Act of 1973, as amended. The proposal eliminates definitions no longer 
applicable, redefines several terms, and establishes an order of selection that 
conforms with the Act, which requires the agency to consider functional 
limitations when determining the severity of a person's disabilities. 
Pat D. Westbrook, Executive Director, has determined that for the first five 
years the rules are in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the amendments. Mr. 
Westbrook 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 a federally-approved order of selection for 
vocational rehabilitation services if, in the event of inadequate funds, such 
services cannot be provided to all eligible individuals. There will be no effect 
on small businesses. There is no economic cost to individuals who are required 
to comply with the rules. 
Questions about the content of this proposal may be directed to Jean Crecelius 
at (512) 459-2611. Written comments on the proposal may be submitted to Policy 
and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 days from 
the date of this publication. 

SUBCHAPTER A. General Information
40 TAC sec.163.4
The amendment is proposed under Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The amendment affects Human Resources Code, Title 5, Chapter 91, Subchapter D, 
sec.91.023, concerning Rehabilitation Services, and sec.91.052, concerning the 
Vocational Rehabilitation Program for the Blind.

sec.163.4. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
[Disability-A physical or mental impairment that constitutes or results in a 
substantial impediment to employment.]
Most severely disabled (person who is)-A person <nl> who:<ol> [with or without 
secondary disabilities or functional limitations whose visual acuity meets the 
definition of blind.] 
<nl>(A)<ol> <nl> has functional limitations in four or more life skills areas 
(such as the inability to obtain a driver's license without special optical 
accommodations, care for self independently, access standard print, travel 
independently, socially interact with others, access technology without special 
adaptations, or manage one's home independently);<ol> 
<nl>(B)<ol> <nl> requires, in addition to comprehensive assessment, counseling, 
guidance, and employment assistance, at least four other substantial VR services 
to achieve an employment outcome;<ol> 
<nl>(C)<ol> <nl> needs services for a period of at least six months; and<ol> 
<nl>(D)<ol> <nl> has one or more physical or mental disabilities defined in 
section 7(15)(A) of the Act, or any other disability or combination of 
disabilities that causes comparable substantial functional limitations.<ol>
Nonseverely disabled (person who is)-A person <nl> who:<ol> [whose visual acuity 
in one eye meets the definition of blind and whose visual acuity in the other 
eye with best correction is better than 20/70, or a person whose visual acuity 
in both eyes with best correction is better than 20/70.] 
<nl>(A)<ol> <nl> has functional limitations in one life skills area (such as the 
inability to obtain a driver s license without special optical accommodations, 
care for self independently, access standard print, travel independently, 
socially interact with others, access technology without special adaptations, or 
manage one's home independently); and<ol> 
<nl>(B)<ol> <nl> requires, in addition to comprehensive assessment, counseling 
guidance, and employment assistance, at least one other substantial vocational 
rehabilitation service to achieve an employment outcome.<ol>
Representative-<nl>A parent, legal guardian, or other representative appointed 
by the court to represent the individual or an advocate or other family member 
designated in writing by the individual to represent the individual.<ol> [The 
parent, guardian, family member, or advocate of the applicant or consumer or 
other representative authorized by the applicant or consumer.]
[Secondary disability-A physical impairment that is either associated with or 
unrelated to the visual condition, but is less significant than the visual 
condition.]
Severely disabled (person who is)-A person <nl> who:<ol>[whose visual acuity in 
one eye meets the definition of blind and whose visual acuity in the other eye 
meets the definition of visually impaired, or a person whose visual acuity in 
both eyes meets the definition of visually impaired.] 
<nl>(A)<ol> <nl> has functional limitations in two or more life skills areas 
(such as the inability to obtain a driver s license without special optical 
accommodations, care for self independently, access standard print, travel 
independently, socially interact with others, access technology without special 
adaptations, or manage one s home independently);<ol> 
<nl>(B)<ol> <nl> requires, in addition to comprehensive assessment, counseling, 
guidance, and employment assistance, at least two other substantial vocational 
rehabilitation services to achieve an employment outcome;<ol> 
<nl>(C)<ol> <nl> needs services for a period of at least three months; and<ol> 
<nl>(D)<ol> <nl> has one or more physical or mental disabilities defined in 
section 7(15)(A) of the Act, or any other disability or combination of 
disabilities that causes comparable substantial functional limitations.<ol>
[Visually disabled (person who is)-A person who has a visual impairment that 
constitutes or results in a substantial impediment to employment and who can 
benefit in terms of an employment outcome from vocational rehabilitation 
services.]
[Visually impaired (person who is)-A person whose best corrected visual acuity 
is between 20/70 and 20/200 in both eyes, or a person who has a visual field of 
30 degrees or less but greater than 20 degrees with best correction.]
Visual impairment-<nl>A visual acuity, with best correction, of 20/70 or less in 
the better eye, or a visual field of 30 degrees or less in the better eye, or a 
combination of both.<ol> [An injury, disease, or other disorder that materially 
reduces, or if not treated will probably result in materially reducing, visual 
functioning.] 
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 August 13, 1996. 
TRD-9611846
Pat D. Westbrook
Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 459-2611

SUBCHAPTER D. Order of Selection for Payment of Services
40 TAC sec.sec.163.50, 163.51, 163.52
(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 
Commission for the Blind or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin).
The repeals are proposed under Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The repeals affect Human Resources Code, Title 5, Chapter 91, Subchapter D, 
sec.91.023, concerning Rehabilitation Services, and sec.91.052, concerning the 
Vocational Rehabilitation Program for the Blind.
sec.163.50. Defined Purpose. 
sec.163.51. Application of Order of Selection. 
sec.163.52. Order of Selection Expenditure Categories.
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 August 13, 1996. 
TRD-9611845
Pat D. Westbrook
Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 459-2611

SUBCHAPTER D. Order of Selection for [Payment of] Services
sec.sec.163.50, 163.51, 163.52
The new rules are proposed under Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The new rules affect Human Resources Code, Title 5, Chapter 91, Subchapter D, 
sec.91.023, concerning Rehabilitation Services, and sec.91.052, concerning the 
Vocational Rehabilitation Program for the Blind.

sec.163.50. Authority. 
An order of selection is authorized in 101(a)(5)(A) of the Rehabilitation Act of 
1973, as amended, to assure that those individuals with the most severe 
disabilities are selected for service before other individuals with disabilities 
in times of limited funding.

sec.163.51. Application. 
The order of selection is applied after eligibility for services is determined.

sec.163.52. Order of Selection. 
(a) Vocational rehabilitation services shall be provided according to the 
following priorities: 
(1) Priority 1 - Persons who meet the definition of most severely disabled. 
(2) Priority 2 - Persons who meet the definition of severely disabled. 
(3) Priority 3 - Persons who meet the definition of nonseverely disabled. 
(b) Within the priorities listed in subsection (a) of this section, special 
consideration and priority are given to public safety officers whose visual 
impairments are sustained in the line of duty. 
(c) To inquire if the agency is operating under the order of selection, a person 
may contact any commission office, including the central office at 4800 North 
Lamar, Austin, Texas, toll-free (800) 252-5204.
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 August 13, 1996. 
TRD-9611844
Pat D. Westbrook
Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 459-2611

SUBCHAPTER E. Consumer participation in Cost of Services
40 TAC sec.163.61
The Texas Commission for the Blind proposes the repeal of sec.163.61 of Chapter 
163 concerning consumer participation in cost of vocational rehabilitation 
services and the simultaneous adoption of new sec.163.61. The purpose of the 
repeal is to allow for the proposal of a revised section that increases the 
services exempt from consumer participation in their cost. The new rule adds all 
training and assistive technology devices and equipment necessary for employment 
to the list of exempt services. The new rule is consistent with consumer and 
advocate comments and should expedite the employment of consumers. 
Pat D. Westbrook, Executive Director, has determined that for the first five 
years the rules are in effect there will be no material fiscal implications for 
state or local government as a result of enforcing or administering the rules. 
Mr. Westbrook also has determined that for each year of the first five years the 
repeal and rule as proposed are in effect the public benefits anticipated as a 
result of enforcing the repeal and rule will be simplified access to needed 
services for consumers of vocational rehabilitation services and a simultaneous 
reduction in procedural paperwork. There will be no effect on small businesses. 
There is no economic cost to individuals who are required to comply with the 
rule. 
Questions about the content of this proposal may be directed to Jean Crecelius 
at (512) 459-2611 and written comments on the proposal may be submitted to 
Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 
days from the date of this publication. 
(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 Commission 
for the Blind or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin). 
The repeal is proposed under the Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The repeal affects Human Resources Code, Title 5, Chapter 91, Subchapter D, 
sec.91.023 concerning Rehabilitation Services and sec.91.052 concerning the 
Vocational Rehabilitation Program for the Blind.
sec.163.61. Scope of Subchapter. 
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 August 13, 1996. 
TRD-9611843
Pat D. Westbrook
Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 459-2611

The new section is proposed under the Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The new section affects Human Resources Code, Title 5, Chapter 91, Subchapter D, 
sec.91.023 concerning Rehabilitation Services and sec.91.052 concerning the 
Vocational Rehabilitation Program for the Blind.

sec.163.61. Scope of Subchapter. 
All vocational rehabilitation services are subject to this subchapter except the 
following: 
(1) assessment for determining eligibility and priority for services, except for 
vocational rehabilitation services other than those of a diagnostic nature 
provided under an extended evaluation; 
(2) assessment for determining vocational rehabilitation needs; 
(3) counseling, guidance, and referral services by commission staff; 
(4) employment assistance services by commission staff;
(5) training; 
(6) vocational rehabilitation teacher services (including consumable supplies); 
(7) reader and interpreter services; 
(8) orientation and mobility services; 
(9) tuition and fees; 
(10) assistive technology devices and other necessary equipment; and 
(11) services paid for or reimbursed by a source other than 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 August 13, 1996. 
TRD-9611842
Pat D. Westbrook
Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 459-2611

PART IX. Texas Department on Aging
CHAPTER 270.General Service Requirements
40 TAC sec.270.2, sec.270.5
The Texas Department on Aging proposes an amendment to sec.270.2 relating to 
Service Definitions and sec.270.5, relating to Nutrition Service Requirements, 
which are necessary to complement the promulgation of sec.270.6, Participant 
Assessment and sec.270.8, Data Management. The proposed amendments are intended 
to clarify the language and the services which will be delivered under the 
proposed new services of Participant Assessment and Data Management. Frank 
Pennington, director of program and fiscal accountability, has determined that 
for the first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Pennington also has determined that for each year of the first five years 
the amendments are in effect, the public benefit anticipated will be a better 
understanding of the language used to describe services and a better 
understanding of the costs of a nutrition program as it relates to the directly 
related cost to provide meals and other costs indirectly associated with the 
provision of meals to persons authorized this service under the Older Americans 
Act. There is no economic cost to persons who are required to comply with the 
amendments as proposed. There will be no effect on small businesses. Comments on 
the proposed amendments may be submitted to Frank Pennington, director of 
program and fiscal accountability, Texas Department on Aging, P.O. Box 12786, 
Austin, Texas 78711. 
The amendments are proposed under the Human Resources Code, Chapter 101, which 
provides the Texas Department on Aging with the authority to promulgate rules 
governing the operation of the Department. 
The Human Resources Code, Chapter 101, relating to the operation of the Texas 
Department on Aging, is affected by these proposed amendments. 

sec.270.2.Service Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
Congregate nutrition services-The provision of services at a congregate meal 
site in accordance with requirements established in sec.270.5, <nl>of this title 
(relating to Nutrition Service Requirements). <ol>[Nutrition Service 
Requirements, of this chapter.] 
<nl>Data Management<ol><nl>-Activities including data entry of initial 
participant information, maintenance of Client Information System (CIS) data 
information, and records management relating to the home-delivered meals 
program. <ol>
Emergency Response Service Unit of Service<nl> (ERS) <ol>-The unit of service 
for ERS is one calendar month. The provider agency is eligible for payment for a 
full month of service if the client receives services for any part of the month. 
Home delivered meal-A hot or otherwise appropriate meal which meets all 
requirements in sec.270.5, of this title (relating to Nutrition Service 
Requirements) <nl>and sec.270.6, of this title, (relating to Participant 
Assessment),<ol> served to an eligible person in his/her place of residence.
[Nutrition unit of service-A meal which meets one third of the required daily 
allowance as established by the Food and Nutrition Board of the National Academy 
of Sciences - National Research Council. ]
<nl>Participant Assessment<ol><nl>-Activities including data entry of initial 
participant information, maintenance of CIS data information, and records 
management relating to the home-delivered meals program. <ol>

sec.270.5.Nutrition Service Requirements.
(a) (No change.)
(b) Congregate Nutrition Services Program Description and Performance 
Requirements. 
(1)-(8) (No change.)
(9) Nutrition outreach. Nutrition outreach shall be conducted with emphasis on 
the preferred target group as defined in sec.260.1(f) of this title (relating to 
<nl>Area Agency on Aging Administrative Requirements)<ol>[ Targeting Service 
Delivery). ] 
(10)-(11) (No change.)
(c) Home-Delivered Nutrition Service Program Description and Performance 
Requirements. 
(1) (No change.)
(2) Service activities. Service activities include provision of meals and 
nutrition education in the home, with ongoing nutrition outreach, [assessment of 
needs,] and appropriate referral to other services. Other in-home services may 
also be provided by resources other than the Older Americans Act. 
(3) (No change.)
(4)Eligibility. [(A)] Procedures shall be developed and implemented for 
determination of eligibility and assessing the need for service so that meals 
are delivered only to eligible persons<nl> as defined in sec.270.6 of this title 
(relating to Participant Assessment. <ol> 
[(B) Eligibility criteria shall comply with provisions stated in the Older 
Americans Act, Section 307(a)(13)(A) and (I), concerning eligibility.
[(C) Person is assessed as being homebound. 
[(D) Eligibility shall be based on an assessment of at least the following: 
[(i) impairment in ability to perform activities of daily living or instrumental 
activities of daily living; 
[(ii) frequency that a person leaves his home and assistance that is needed to 
do so; 
[(iii) ability to prepare nutritious meals and shop for food; and 
[(iv) resources available to assist older persons. 
[(E) A home visit for assessment of need for service shall be documented within 
two weeks of beginning service. 
[(F) Reassessment shall be done at no greater than six-month intervals.] 
(5) Participant records. Records for regular participants shall be 
maintained<nl>, as defined in sec.270.8 of this title (relating to Data 
Management).<ol> [which contain the following information: 
[(A) intake information; 
[(B) documentation of eligibility, assessment, and reassessment;
[(C) procedures for emergency care; and 
[(D) be made available for monitoring purposes. ] 
(6)-(7) (No change.)
(8) Meal packaging. Supplies and carriers will be used so that hot foods are 
packaged and transported separately from cold foods.
(A)-(B) (No change.)
(C) Meal packaging must meet the following criteria: 
(i) (No change.)
(ii) be designed with compartments to separate food items for visual appeal and 
minimize spillage between compartments;<nl> and<ol> 
(iii) (No change.)
(9)-(11) (No change.)
(12) Nutrition outreach. Nutrition outreach shall be conducted with emphasis on 
the preferred target group as defined in sec.260.1(f) of this title<nl> 
(relating to Area Agency on Aging Administrative Requirements).<ol> 
(13) (No change.)
(d) (No change.)
(e) Administrative Responsibilities for Nutrition/Meal Service Providers. 
(1)-(9) (No change.)
(10) Director of the nutrition/meal provider agency. The service provider agency 
shall identify an individual as director who is responsible for the overall 
management of nutrition services and compliance with performance requirements, 
standards, and procedures. 
(A) The director or another employee responsible for food service management 
shall complete the 15-hour course in food protection approved by the Federal 
Food and Drug Administration, or the course approved by the Texas Department of 
Health, or an equivalent course approved by <nl> this Department<ol>[the Texas 
Department on Aging] as specified in the Department's procedures. 
(B) (No change.)
(11)-(13) (No change.)
(14) Contributions. Provider shall comply with provisions in sec.270.1(j) of 
this title<nl> (relating to General Service Requirements)<ol> and 
sec.260.2(g)(2) of this title (relating to Area Agency on Aging Fiscal 
Responsibilities). 
(A) (No change.)
(B) <nl>The service provider agency shall accept the Texas Lone Star Card to 
make contributions for meals if justified by evaluation of local need and deemed 
cost effective.<ol>[The service provider agency shall accept food stamps as 
contributions for meals if warranted by evaluation of local need. ] 
(15) (No change.)
(16) United States Department of Agriculture assistance. United States 
Department of Agriculture assistance for meals served in the form of cash, 
and/or commodities shall be used in accordance with the Older Americans Act, 
sec.311, concerning surplus commodities; the United States Department of 
Agriculture Food Distribution Regulations, <nl> Code of Federal 
Regulations<ol>[CFR] 7, Part 250; the Texas Department of Human Services; and 
the Texas Department on Aging. All eligible meals, regardless of the funding 
source, shall be reported to the area agency. USDA cash shall be used to 
purchase only United States grown food. 
<nl>(17)<ol> <nl> Negotiation of contracts. Subcontractors will negotiate a rate 
of payment based on the base meal rate, as identified in sec.270.5(f) (7) of 
this title (relating to Area Agency on Aging Responsibilities). The Department 
adopts a meal rate ceiling of $4.88 for Home Delivered Meals or such rate 
ceiling as may be established by the Texas Department of Human Services for 
Home-delivered meals (formerly called Title XX, Home-delivered meals). <ol>
(f) Area Agency on Aging Responsibilities. 
(1) Policies and Procedures. The area agency shall develop and implement written 
policies and procedures for the following: 
(A)-(B) (No change.)
(C) verification that all providers comply with the Older Americans Act, 
sec.311, concerning surplus commodities and United States Department of 
Agriculture Food Distribution Regulations, 7 <nl> Code of Federal 
Regulations<ol>[CFR], Part 250; that only eligible meals served by Older 
Americans Act funded projects are reported for USDA cash/commodity 
reimbursement; and that cash will be used to purchase only United States grown 
food. 
(2) Compliance requirements. Area agencies are responsible for the following: 
(A) (No change.)
(B) [that] all meals meet requirements as specified in subsection (d) of this 
section, relating to requirements for meals; 
(C) [that] consistent procedures for waiting lists are used by providers and 
case management units; <nl>and<ol>
(D) [that] service provider agencies have made appropriate arrangements for 
availability of meals in weather-related emergencies and disasters. 
(3) (No change.)
(4) (No change.)
(5) United States Department of Agriculture direct reimbursement.
(A) United States Department of Agriculture cash distribution to meal providers 
shall be based on a lump sum method that is based on eligible meals served. 
Annual settlements will be calculated at the final United States Department of 
Agriculture reimbursement rate times the total number of reported eligible meals 
served during the fiscal year; [or] 
(B) an alternative distribution method that is based on an evaluation 
documenting greatest need for additional services or resources, or efficient use 
of resources may be used by the area agency<nl>; or<ol>[.] 
(C) <nl>if<ol> [If] meals are purchased through a direct purchase of service 
agreement with a vendor, USDA cash shall be used by the area agency to purchase 
additional eligible meals, as needed.
(6) (No change.)
<nl>(7)Negotiation of contracts. <ol>
<nl>(A)<ol> <nl>In using the unit rate performance based contracting method to 
procure Home Delivered Meals, potential subcontractors must establish a base 
meal cost, consisting of four categories: food costs, labor costs to produce 
meals, meal delivery costs, and administrative costs directly associated with 
the cost categories listed in this subparagraph. Rates are to be based on 
actual, cash costs of production, excluding estimates of volunteer time, and the 
value of contributed goods and services. The base meal cost, determined as an 
aggregate of these four cost categories, must be the basis of negotiation 
between the area agency contractor and all respondents to requests for proposal 
to establish a cost for home delivered meals. <ol>
<nl>(B)<ol> <nl>Area agency contractors must negotiate rates to ensure that the 
base meal rate paid using Title III funds is equal to or less than rates of 
payment negotiated with other federal and state funding sources, including 
contracting to deliver Title XX meals. Costs of services other than the base 
meal rate must be reported in other service categories, as explained in 
sec.270.6 of this title (relating to Participant Assessment), and in sec.270.8 
(relating to Data Management).<ol>
<nl>(i)<ol> <nl>The department may consider a waiver to this requirement where 
the area agency contractor identifies the specific costs included in the Title 
III contracted rate that result in a higher rate of payment to a subcontractor 
than in other contracted rates in force. The area agency will provide 
documentation that identifies additional costs, the effective rates for each 
contract, and rationale for including any additional costs as necessary and 
reasonable to the provision of meals. <ol>
<nl>(ii)<ol> <nl> Requests for waivers must be submitted to the Department prior 
to the effective date of contracting with a subcontractor, if the base meal cost 
for Title III meals will be higher than the subcontractor's other federal or 
state contracted rates. <ol>
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 August 14, 1996.
TRD-9611841
Mary Sapps
Executive Director
Texas Department on Aging
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 444-6840

40 TAC sec.270.6, sec.270.8
The Texas Department on Aging proposes new sec.270.6, relating to Participant 
Assessment and new sec.270.8, relating to Data Management. The proposed new 
rules will establish guidelines for quality service, accountability, and 
reimbursement for area agencies on aging when providing services supplemental to 
the delivery of Home Delivered Meals as authorized by the Older Americans Act. 
New sec.270.6 establishes guidelines for thoroughly assessing the eligibility, 
functional impairment score, nutritional risk score, and the individual needs of 
a participant for the receipt of home delivered meals. New sec.270.8 will 
establish guidelines for thoroughly maintaining the documentation related to 
reporting client activity through electronic or other means to the Department. 
Frank Pennington, director of program and fiscal accountability, has determined 
that for the first five-year period the rules are in effect there may be fiscal 
implications; however, the degree of impact to state or local governments cannot 
be determined at this time. 
Mr. Pennington also has determined that for each year of the first five years 
the proposed new rules are in effect, the public benefit anticipated will be a 
better accountability of federal and state resources when providing for the 
initial assessment and reassessment of participants and for better reporting of 
those activities directly relating to the administrative activities involving 
data entry, reporting, and records retention for the delivery of Home Delivered 
Meals as authorized by the Older Americans Act programs. There will be no effect 
on small businesses. There is no economic cost to persons who are required to 
comply with the new rules as proposed. 
Comments on the proposed new rules may be submitted to Frank Pennington, 
director of program and fiscal accountability, Texas Department on Aging, P.O. 
Box 12786, Austin, Texas 78711. 
These new rules are proposed under the Human Resources Code, Chapter 101, which 
provides the Texas Department on Aging with the authority to promulgate rules 
governing the operation of the Department. 
The Human Resources Code, Chapter 101, relating to the operation of the Texas 
Department on Aging, is affected by these proposed actions.

sec.270.6.Participant Assessment.
(a) Purpose. This chapter establishes into law guidelines for quality service, 
accountability, and reimbursement for area agencies on aging, area agency 
contractors and subcontracting service providers when providing participant 
assessment services for Home Delivered meals as authorized by the Older 
Americans Act.
(b) Scope. Participant assessment applies only to those activities which 
directly relate to the initial assessment and reassessment of participants for 
home delivered meals. Funds may not be claimed for any activities conducted by 
volunteers. Case Management assessments covering multiple services may only 
allocate that portion covering assessment for home delivered meals to this 
service. 
(c) Objective. The objectives of the service are to thoroughly assess the 
eligibility, functional impairment score, nutritional risk score, and individual 
needs of an applicant/participant for the receipt of home delivered meals, and 
to plan and arrange for the service of home delivered meals to eligible 
participants. 
(d) Service Activities. Service activities include: 
(1) assessment of the participant's functional abilities, dietary needs, and 
eligibility for participation in the home delivered meals program, including 
arranging for meals to begin and appropriate referral to other services, and 
completion of the forms as required by Department procedures; 
(2) reassessment of the participant including completion of the forms required 
per Department procedures to assess the participant's functional abilities, and 
dietary needs, eligibility, and inquiry of any changes in the person's life that 
could impact their functional level; and
(3) travel to and from the home of the applicant/participant for the purpose of 
assessment or reassessment; 
(e) Eligibility. 
(1) Procedures shall be developed and implemented for determination of 
eligibility and assessing the need for service so that meals are delivered only 
to eligible persons. 
(2) Eligibility criteria shall comply with provisions stated in the Older 
Americans Act, sec.307(a)(13)(A) and (I), relating to eligibility.
(3) If an applicant is assessed as homebound, eligibility shall be based on an 
assessment of at least the following: 
(A) impairment in ability to perform activities of daily living or instrumental 
activities of daily living; 
(B) frequency that a person leaves his home and the degree of assistance that is 
needed to do so; 
(C) ability to prepare nutritious meals and shop for food; and 
(D) resources available to assist older persons. 
(4) A home visit for assessment of need for service shall be conducted and 
documented within two weeks of beginning service.
(5) Reassessment shall be done at intervals no greater than six months. 
(f) Participant records. 
(1) A confidential participant case record shall be developed, organized, and 
maintained on each participant served, protected from damage, theft, and 
unauthorized inspection, and made available for monitoring and audit purposes. 
Records shall contain the following information: 
(A) intake information; 
(B) documentation of eligibility, assessment, and reassessment; and 
(C) procedures for emergency care. 
(2) Written procedures must be established and followed by the subcontracting 
nutrition provider for obtaining the written consent of the participant for 
release of confidential information to other service providers when referrals 
are made. 
(g) Conditions for referral to other services. When conditions are discovered 
during the assessment which warrant referral, participants shall be assisted in 
taking advantage of other services. Participants shall be referred to 
appropriate agencies as warranted by their condition and in accordance with the 
Department's procedures. 
(h) Recordkeeping and Reporting. Subcontracting nutrition/meal providers shall 
maintain records and report in compliance with the Department's procedures, and 
the provisions as defined in sec.270.1(h) and (i) of this title (relating to 
Recordkeeping and Reporting). 
(i) Monitoring. The Area Agency on Aging will conduct periodic evaluations of 
home-delivered meal participants' records of assessment and reassessment to 
verify that eligibility criteria for home-delivered meal services are met. The 
area agency shall comply with the Department's procedures in addition to 
sec.260.1(e) of this title (relating to Area Agency on Aging Administration 
Requirements). 

sec.270.8.Data Management.
(a) Purpose. This chapter establishes into law guidelines for quality service, 
accountability, and reimbursement for are agencies on aging, area agency 
contractors and subcontracting service providers when providing Data Management 
Services for Home Delivered meals as authorized by the Older Americans Act. 
(b) Scope. Data management applies only to those activities directly relating to 
the administrative activities involving data entry, reporting, and records 
retention. Data Management does not relate to any activities of meal 
preparation. Funds may not be claimed for any activities conducted by 
volunteers. 
(c) Objective. The objective of the service is to thoroughly maintain the 
documentation related to reporting client activity through electronic or other 
means to the Department. 
(d) Service Activities. Service activities include: 
(1) initial participant data entry into the Department's Client Information 
System (CIS); 
(2) monthly service level reporting into the CIS, or other means; and 
(3) retention and safeguarding the assessment record of home delivered meals 
participant. 
(e) Participant records. 
(1) A confidential participant case record shall be developed, organized, and 
maintained on each participant served, protected from damage, theft, and 
unauthorized inspection, and made available for monitoring and audit purposes. 
Records shall contain the following information: 
(A) intake information; 
(B) documentation of eligibility, assessment, and reassessment; and 
(C) procedures for emergency care. 
(2) Written procedures must be established and followed by the subcontracting 
nutrition provider for obtaining the written consent of the participant for 
release of confidential information to other service providers when referrals 
are made. 
(f) Recordkeeping and Reporting. Subcontracting nutrition providers shall 
maintain records and report in compliance with the Department's procedures, and 
the provisions as defined in sec.270.1(h) and (i) of this title (relating to 
Recordkeeping and Reporting) and sec.270.5 of this title (relating to Nutrition 
Service Requirements). 
(g) Monitoring. The area agency contractor will conduct periodic evaluations of 
home-delivered meal participants' records of assessment and reassessment to 
verify that eligibility criteria for home-delivered meal services are met. The 
area agency contractor shall comply with the Department's procedures in addition 
to sec.260.1(e) of this title (relating to Area Agency on Aging Administration 
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 August 14, 1996.
TRD-9611840
Mary Sapps
Executive Director
Texas Department on Aging
Earliest possible date of adoption: September 27, 1996
For further information, please call: (512) 444-6840