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 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 3. Income Assistance Services
The Texas Department of Human Services (DHS) adopts amendments to sec.3.501, 
sec.3.1104, sec.3.1202, and sec.3.2401, without changes to the proposed text as 
published in the May 9, 1997, issue of the Texas Register(22 TexReg 4053). The 
text will not be republished. 
The justification for the amendment to sec.3.501 is to implement federally 
mandated policy that revises the disqualification of individuals convicted of a 
felony criminal offense involving the use, sale or possession of a controlled 
substance. The justification for the amendments to sec.3.1104 and sec.3.1202 is 
to implement a mandatory one month sanction for the first noncompliance of 
failure to comply with the Job Opportunities and Basic Skills (JOBS) program. 
The justification for the amendment to sec.3.2401 is to allow states to provide 
only adequate notice to a household whose mail has been returned. The amendments 
will function by ensuring that the state will be in compliance with federal 
legislation. 
During the public comment period DHS received no comments. 

SUBCHAPTER E. Household Determination
40 TAC sec.3.501
The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, 
which provides the department with the authority to administer public assistance 
programs. 
The amendment implements the Human Resources Code sec.sec.22.001-22.030.
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 June 12, 1997.
TRD-9707651
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: July 2, 1997
Proposal publication date: May 9, 1997
For further information, please call: (512) 438-3765

SUBCHAPTER K. Employment Services
40 TAC sec.3.1104
The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, 
which provides the department with the authority to administer public assistance 
programs. 
The amendment implements the Human Resources Code sec.sec.22.001-22.030.
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 June 12, 1997.
TRD-9707652
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: July 2, 1997
Proposal publication date: May 9, 1997
For further information, please call: (512) 438-3765

SUBCHAPTER L. Work Registration
40 TAC sec.3.1202
The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, 
which provides the department with the authority to administer public assistance 
programs. 
The amendment implements the Human Resources Code sec.sec.22.001-22.030.
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 June 12, 1997.
TRD-9707653
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: July 2, 1997
Proposal publication date: May 9, 1997
For further information, please call: (512) 438-3765

SUBCHAPTER X. Case Disposition
40 TAC sec.3.2401
The amendment is adopted under the Human Resources Code, Title 2, Chapter 22, 
which provides the department with the authority to administer public assistance 
programs. 
The amendment implements the Human Resources Code sec.sec.22.001-22.030.
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 June 12, 1997.
TRD-9707650
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: July 2, 1997
Proposal publication date: May 9, 1997
For further information, please call: (512) 438-3765

TITLE 43. TRANSPORTATION
PART III. Automobile Theft Prevention Authority
CHAPTER 57.Automobile Theft Prevention Authority 
43 TAC sec.sec.57.48-57.51 
The Automobile Theft Prevention Authority (the Authority) adopts sec.sec.57.48-
57.51, concerning fee calculations by insurers, audit of fee payments, reporting 
non-payment or intentional underpayment to the Department of Insurance and 
procedures for determining insurance company fee refunds, with changes to the 
proposed text as published in the December 13, 1996, issue of the Texas Register 
(21 TexReg 11945). 
Section 57.48 establishes guidelines for use by insurance companies in 
determining the amount of the annual fee imposed on insurance companies by Texas 
Civil Statutes, Article 4413(37), sec.10. Section 10 bases the fee on "motor 
vehicle years of insurance." Section 57.48 clarifies that the statutory $1.00 
fee is payable for each motor vehicle insured regardless of the number of policy 
renewals and that the fee is payable by each insurer when more than one insurer 
provides coverage in a calendar year. These guidelines are aimed at simplifying 
the accounting and regulatory requirements in assessing this fee. The new 
Section 57.49 and 57.50 notify insurers that their books and records are subject 
to audit and that the failure to pay or intentionally underpaying fees may place 
their certificates of authority at risk under sec.10(d). The authority is 
responsible for administering the fee in conjunction with the state 
comptroller's office. Auditing of insurance company records relating to the fee 
may be necessary for proper accounting. Section 6A of Article 4413(37), Texas 
Civil Statutes, gives the authority the discretion to grant refunds of fees. In 
sec.57.51, the authority exercises this discretion by establishing procedures 
for applying for a refund in the event of an overpayment. The procedures include 
the statutory time period in which claims for refunds must be filed, as set by 
the legislature in House Bill (H.B.) 1387, Acts 1997, 75th Regular Session. 
The authority received written and oral comments on sec.57.51 from State Farm 
Mutual Automobile Insurance Company, State Farm County Mutual Insurance Company 
of Texas and State Farm Fire and Casualty. Because identical comments were filed 
on behalf of the three companies, the companies are referred to as "the 
commenters." The comments are characterized as against the adoption of this new 
section, as proposed. 
The commenters stated that proposed rule sec.57.51(a) inappropriately limits the 
availability of refunds to those no older than six months from the date fees 
were due. The commenters also stated that the rule, as proposed, failed to 
address refund requests made prior to the effective date of H.B. 2845, Acts 
1995, 74th Legislature, Chapter 953, sec.1, which amended Texas Civil Statutes, 
Article 4413(37) to provide for refunds. This rule was proposed prior to the 
passage of H.B. 1387. Section 57.51(a) has been amended to provide for the 
statutory deadlines set by H.B. 1387. Those deadlines require that refund claims 
be made by the later of November 1, 1997, or within six months after the date 
fees were paid. 
The commenters felt that the reference in proposed rule sec.57.51(d) to the two 
insurance company representatives on the authority was ambiguous and might 
preclude participation "by any representative of an insurance company" in the 
determination of a refund. While the authority believes that the subsection as 
proposed clearly refers only to the two insurance company representatives who 
serve on the authority, the subsection has been clarified in response to the 
comments. 
Lastly, the commenters felt that the last sentence of sec.57.51(d) was either 
unclear or was an impermissable attempt by the agency to foreclose judicial 
review of its decisions. The authority disagrees. The intent of this sentence is 
to recognize and give notice to interested persons that the authority's 
determination is final and judicial review is not provided by statute. Article 
4413(37) sec.6A does not provide for appeal from the decision of the authority 
on refunds. Section 6A grants sole discretion to the authority, in the first 
instance, to provide a refund procedure and to determine eligibility for a 
refund. The commenters suggested that the provision could end with providing 
that a motion of rehearing is not a prerequisite to judicial review under Texas 
Government Code, sec.sec.2001.171 et seq. Since no right of appeal is granted by 
Texas Civil Statutes, Article 4413(37) and sec.6A expressly states "eligibility 
for a refund is not a contested case within the meaning of the Administrative 
Procedure Act (Chapter 2001, Government Code), the authority disagrees that such 
language is appropriate. 
These rules are adopted under Texas Civil Statutes, Article 4413(37), sec.6(a) 
and sec.6A(d). The authority interprets sec.6(a) as authorizing it to adopt 
rules implementing its statutory powers and duties, including determining the 
adequacy of fee payments and establishing refund procedures. The authority 
interprets sec.6A(d) as requiring it to determine by rules the procedures 
insurers must follow to establish eligibility for refunds. Texas Civil Statutes, 
Article 4413(37) sec.6A and sec.10 is affected by these rules.

sec.57.48.Motor Vehicle Years of Insurance Calculations. 
Each insurer, in calculating the fees established by Texas Civil Statutes, 
Article 4413(37), sec.10, shall follow the following guidelines: 
(1) The single statutory fee of $1.00 is payable on each motor vehicle for which 
the insurer provides insurance coverage during the calendar year regardless of 
the number of policy renewals; and 
(2) When more than one insurer provides coverage for a motor vehicle during the 
calendar year, each insurer shall pay the statutory fee for that vehicle. 

sec.57.49.Audit.
(a) The authority may employ or retain the services of auditors for the purpose 
of assisting the authority to determine an insurer's compliance with the 
requirements of Texas Civil Statutes, Article 4413(37), sec.10.
(b) All insurers subject to Texas Civil Statutes, Article 4413(37), sec.10 shall 
make their books and records reflecting motor vehicle years of insurance 
available to the auditors upon request during normal business hours. 
(c) The authority may assess to insurance companies charges for audit in cases 
where the companies' assertion of Refund Due was determined to be unfounded. 

sec.57.50.Report to Department of Insurance.
If the authority determines that an insurer failed to pay or intentionally 
underpaid the fee required by Texas Civil Statutes, Article 4413(37), sec.10, 
the authority shall notify the Department of Insurance with the request that the 
Department revoke the insurer's certificate of authority. 

sec.57.51.Refund Determinations.
(a) An insurer claiming an overpayment of the annual fees due the authority 
under Texas Civil Statutes, Article 4413(37), sec.10 must file a written claim 
for refund not later than the later of: 
(1) November 1, 1997; or 
(2) six months after the date the fees were paid to the authority. 
(b) The executive director or the authority's designee shall review the claim 
and obtain from the insurer any additional information, if any, that may be 
necessary or helpful to assist in the authority's determination. If an insurer 
refuses to provide the requested information, the refund may be denied in whole 
or in part. 
(c) The director or the authority's designee is authorized to employ or retain 
the services of financial advisors to assist in the determination. The director 
or the designee shall prepare a written report to the authority's board based on 
the director's or the designee's review containing the findings, conclusions, 
and the recommendation. 
(d) The authority shall base its determination on the documentary evidence 
considered by the director or the designee. The two insurance company 
representatives on the authority shall not participate in the determination. The 
authority's decision shall be based on a majority vote of the five remaining 
members. The authority's decision is final. 
(e) Upon determining that an insurer is entitled to a refund, the authority 
shall notify the comptroller and request the comptroller to draw warrants on the 
funds available to the authority for the purpose of refunding monies overpaid.
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 June 13, 1997.
TRD-9707742
Deanna Citerne
Acting Executive Director
Automobile Theft Prevention Authority
Effective date: July 3, 1997
Proposal publication date: December 13, 1996
For further information, please call: (512) 416-4606