ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 22. EXAMINING BOARDS PART XI. Board of Nurse Examiners CHAPTER 217. Licensure and Practice 22 TAC sec.217.15 The Board of Nurse Examiners adopts an amendment to sec.217.15, concerning Continuing Education without changes to the proposed text as published in the October 18, 1996, issue of the Texas Register (21 TexReg 10269). The staff of the Board of Nurse Examiners spends considerable time processing unacceptable continuing education credits for licensees who are being audited. A committee of the Board's staff, together with input from CE staff of the Texas Nurses Association, discussed the current continuing education rules and the difficulties licensees have encountered. As a result of the review, the committee recommended that the list of unacceptable CE be expanded, as well as expanding the list of recognized credentialing agencies/organizations in board policy to include other Boards of Nursing. The Board accepted staff's recommendations at their September meeting. The adopted amendments will clarify for licensees which courses are not acceptable for continuing education credits and which agencies/organizations are recognized as approved providers. No comments were received. The amendment is adopted under the Nursing Practice Act, (Texas Civil Statutes), Article 4514, sec.1, which provides the Board of Nurse Examiners with the authority and power to make and enforce all rules and regulations necessary for the performance of its duties and conducting of proceedings before it. Texas Civil Statutes, Article 4518 is affected by this section. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 23, 1996. TRD-9618657 Katherine A. Thomas, MN, RN Executive Director Board of Nurse Examiners Effective date: January 17, 1997 Proposal publication date: October 18, 1996 For further information, please call: (512) 305-6811 TITLE 28. INSURANCE PART I. Texas Department of Insurance CHAPTER A. General Administration SUBCHAPTER C. Maintenance Taxes and Fees 28 TAC sec.1.414 The Commissioner of Insurance adopts an amendment to sec.1.414, concerning assessment of maintenance taxes and fees for payment in 1997, without changes to the proposed text as published in the November 19, 1996, issue of the Texas Register (21 TexReg 11225). A public hearing was held on December 12, 1996. The amendment is necessary to adjust the rates of assessment for maintenance taxes and fees for 1997 which will provide the revenue necessary to fund appropriations made by the Legislature. Section 1.414 applies the rates to the gross premium receipts for the calendar year 1996, or some other basis designated by statute, to life, accident, and health insurance; motor vehicle insurance; casualty insurance, and fidelity, guaranty and surety bonds; fire insurance and allied lines, including inland marine; workers' compensation insurance; title insurance; health maintenance organizations; third party administrators; and corporations issuing prepaid legal services contracts. The department anticipates the adopted rates will produce revenue of $41,744,662 to the state's general revenue fund. No comments were received regarding adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 4.17, 5.12, 5.24, 5.49, 5.68, 9.46, 21.07-6 sec.21, 23.08A, 1.03A, and Article 20A.33 (the Texas Health Maintenance Organization Act), which provide authorization for the Texas Department of Insurance to assess maintenance taxes and fees for the lines of insurance and related activities specified in amended sec.1.414. Article 4.17 establishes a maintenance tax based on insurance premiums for life, accident, and health coverage and the gross considerations for annuity and endowment contracts. Article 5.12 establishes a maintenance tax based on insurance premiums for motor vehicle coverage. Article 5.24 establishes a maintenance tax based on insurance premiums for casualty insurance and fidelity, guaranty and surety bonds coverage. Article 5.49 establishes a maintenance tax based on insurance premiums for fire and allied lines coverage, including inland marine. Article 5.68 establishes a maintenance tax based on insurance premiums for workers' compensation coverage. Article 9.46 establishes a maintenance fee based on insurance premiums for title coverage. Article 21.07-6 sec.21 establishes a maintenance tax based on the gross amount of administrative or service fees for third party administrators. Article 23.08A establishes a maintenance tax based on gross revenue of corporations issuing prepaid legal service contracts. The Texas Health Maintenance Organization Act, sec.33 (codified at the Insurance Code, article 20A.33), establishes an annual tax based on the gross amounts of revenues collected for the issuance of health maintenance certificates or contracts. Article 1.03A authorizes the commissioner of insurance to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 23, 1996. TRD-9618644 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Effective date: January 13, 1997 Proposal publication date: November 19, 1996 For further information, please call: (512) 463-6327 28 TAC sec.1.415 The Commissioner of Insurance adopts an amendment to sec.1.415, concerning assessment of a maintenance tax surcharge which will be used to service the bonded indebtedness of the Texas Workers' Compensation Insurance Fund, without changes to the proposed text as published in the November 19, 1996, issue of the Texas Register (21 TexReg 11226). A public hearing was held on December 12, 1996. The amendment is necessary to adjust the rate of maintenance tax surcharges due in 1997 on the basis of gross premium receipts for calendar year 1996 for workers' compensation companies. The surcharge will be used to service the bonded indebtedness of the Texas Workers' Compensation Fund. The Texas Workers' Compensation Commission annually establishes and certifies to the comptroller of public accounts the rate of assessment for the maintenance taxes which are authorized to pay the cost of administering the Texas Workers' Compensation Act. The commissioner of insurance may increase the Texas Workers' Compensation Commission tax rate to a rate sufficient to pay all debt service on the bonds issued on behalf of the Texas Workers' Compensation Insurance Fund, subject to the maximum rate established by the Texas Labor Code, sec.404.003. The department estimates $22,340,015 will be generated from the maintenance tax surcharge which will be used to pay debt service for $300 million in bonds issued in 1991 by the Texas Public Finance Authority on behalf of the Texas Workers' Compensation Fund. No comments were received regarding adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 5.76-3, 5.76-5, 5.68 and 1.03A and the Texas Labor Code, sec.403.002. The Insurance Code, Article 5.76-3 establishes the Texas Workers' Compensation Insurance Fund. Article 5.76- 5 establishes the maintenance tax surcharge. Article 5.68 establishes the maintenance tax based on premiums for workers' compensation coverage. Article 1.03A authorizes the commissioner to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. The Texas Labor Code, sec.403.002 establishes the maintenance tax for workers' compensation insurance companies. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 23, 1996. TRD-9618645 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Effective date: January 13, 1997 Proposal publication date: November 19, 1996 For further information, please call: (512) 463-6327 CHAPTER 7. Corporate and Financial Regulation SUBCHAPTER J. Examination Expenses and Assessments 28 TAC sec.7.1012 The Commissioner of Insurance adopts an amendment to sec.7.1012, concerning assessments to cover the expenses of examining insurance companies, without changes to the proposed text as published in the November 19, 1996, issue of the Texas Register (20 TexReg 11227). A public hearing was held on December 12, 1996. The amendment is necessary to provide a rate of assessment for domestic and foreign insurance company examination expenses in 1997 which will provide the revenue necessary to fund the appropriations made by the Legislature. Section 7.1012 provides the method and rates of assessment for examination expenses of foreign and domestic insurance companies. Rates of assessment are levied against and collected from each domestic insurance company based on admitted assets and gross premium receipts for the 1996 calendar year, and from each foreign insurance company examined during the 1997 calendar year based on a percentage of the gross salary paid to an examiner for each month or part of a month during which the examination is made. The department anticipates that the adopted rate will produce revenue of $11,546,384 to the state's general revenue fund. The expenses and charges to be assessed are in addition to, and not in lieu of, any other charge which may be made under the law, including the Insurance Code, Article 1.16. No comments were received regarding the adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 1.16 and 1.03A. The Insurance Code, Article 1.16(a) and (b) authorizes the commissioner of insurance to make assessments necessary to cover the expenses of examining insurance companies and to comply with the provisions of the Insurance Code, Articles 1.16, 1.17, and 1.18, in such amounts as the commissioner certifies to be just and reasonable. In addition, Article 1.16(c) provides that expenses incurred in the examination of foreign insurers by Texas examiners shall be collected by the commissioner by assessment. Article 1.03A authorizes the commissioner of insurance to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 23, 1996. TRD-9618642 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Effective date: January 13, 1997 Proposal publication date: November 19, 1996 For further information, please call: (512) 463-6327 CHAPTER 25. Insurance Premium Finance SUBCHAPTER E. Examinations and Annual Reports 28 TAC sec.25.88 The Commissioner of Insurance adopts an amendment to sec.25.88, concerning an assessment which will be used to cover the general administrative expense assessment of insurance premium finance companies, without changes to the proposed text as published in the November 19, 1996, issue of the Texas Register (21 TexReg 11228). A public hearing was held on December 12, 1996. The amendment is necessary to adjust the rate of assessment which is sufficient to meet the expenses of performing the department's statutory responsibilities for the regulation and examination of insurance premium finance companies. The department levies the rate of assessment set in the section to cover the 1997 fiscal year's general administrative expense and will collect from each insurance premium finance company on the basis of a percentage of total loan dollar volume for the 1996 calendar year. The department estimates that $488,534 will be collected for the state's general revenue fund. No comments were received regarding the adoption of the amendment. The amendment is adopted under the Insurance Code, Articles 24.06(c), 24.09, and 1.03A. Article 24.06(c) provides that each insurance premium finance company licensed by the department shall pay an amount assessed by the department to cover the direct and indirect cost of examinations and investigations and a proportionate share of general administrative expense attributable to regulation of insurance premium finance companies. Article 24.09 authorizes the department to adopt and enforce rules necessary to carry out provisions of the Insurance Code concerning the regulation of insurance premium finance companies. Article 1.03A authorizes the commissioner to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on December 23, 1996. TRD-9618643 Caroline Scott General Counsel and Chief Clerk Texas Department of Insurance Effective date: January 13, 1997 Proposal publication date: November 19, 1996 For further information, please call: (512) 463-6327