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 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 3.Tax Administration
SUBCHAPTER JJ.Cigarette and Tobacco Products Regulation
34 TAC sec.3.1202
The Comptroller of Public Accounts adopts a new sec.3.1202, concerning warning 
notice signs, with changes to the proposed text as published in the October 31, 
1997, issue of the Texas Register (22 TexReg 10625).
Senate Bill 55, adopted by the 75th Legislature, 1997, requires the comptroller 
to determine the design and size of the warning notice signs that must be 
displayed by each person who sells cigarettes or tobacco products at retail or 
by vending machines. The signs give notice to retailers, employees, and 
customers that the law prohibits the sale and provision of tobacco products to 
minors. The rule also describes the comptroller's responsibility to distribute 
on request the warning notice signs without charge to any person who sells 
cigarettes or tobacco products. 
Subsection (b) of the rule was changed to reflect the correct phone numbers and 
mailing address where retailers may submit requests for additional warning 
signs. Changes were also made to subsection (d)(2)(A) to allow retailers to post 
warning notice signs where they are conspicuous from each cash register or 
check-out stand through which cigarettes or tobacco products are sold, instead 
of requiring retailers to post a warning notice sign at each cash register or 
check-out stand. 
Comments were received from the American Cancer Society - Texas Division, 
Austin, Texas; the American Heart Association, Austin, Texas; McLane Company, 
Inc., Temple, Texas; and an attorney in Dallas, Texas. 
The attorney made comments concerning the placement of tobacco vending machines 
and sales made from such machines. The comptroller made no changes based on 
these comments because the comments do not relate to the substance of this rule. 
The American Cancer Society suggests that the comptroller should provide the 
warning notice signs and not permit retailers to produce their own signs. Senate 
Bill 55 authorizes the comptroller to prescribe by rule, the design and size of 
the required signs and to provide the signs upon request to retailers, 
distributors, or wholesalers of cigarettes or tobacco products. The bill does 
not authorize the comptroller to prohibit sellers of tobacco products from 
developing signs that meet the minimum requirements established by the 
comptroller. McLane stated the size of the warning notice is too obtrusive, and 
the company does not see any reason that retailers with multiple cash registers 
and check-out stations would need to place a sign in each of their check out or 
cash register locations.
McLane also stated that allowing retailers to develop their own signs would 
create a severe financial disadvantage to Texas-based businesses. 
Senate Bill 55 requires that "each person who sells cigarettes or tobacco 
products at retail or by vending machine shall post a sign in a location that is 
conspicuous to all employees and customers and that is close to the place at 
which cigarettes or tobacco products may be purchased." The comptroller 
clarified subsection (d)(2)(A) of the rule to require that an 8-1/2 inches by 14 
inches warning notice sign must be conspicuous from each cash register or check-
out stand through which cigarettes or tobacco products are sold instead of 
having to be posted at each point-of-sale location. In addition to the 8-1/2 by 
14 sign, a smaller 3 inches by 7 inches warning notice sign may be placed on 
each cash register or check-out stand, if a retailer so chooses. The bill also 
requires the comptroller to provide warning signs free of charge upon request, 
thus easing the financial burden to retailers. 
The American Heart Association commented favorably about the comptroller's 
effort to provide readable and standardized signs rather than encouraging 
individual retailers to use nonstandard and potentially unreadable warning 
signs. 
This new section is adopted under the Tax Code, sec.111.002 and sec. 111.0022, 
which provide the comptroller with the authority to prescribe, adopt, and 
enforce rules relating to the administration and enforcement of the provisions 
assigned to the comptroller by law, and by the Health and Safety Code, 
sec.161.084, which provides that the comptroller by rule will determine the 
design and size of the required signs. 
The new section implements the Health and Safety Code, sec.161.084.

sec.3.1202. Warning Notice Signs.
(a) Warning Notice Signs. Each person who sells cigarettes or tobacco products 
at retail or by vending machines must post a warning notice sign in a location 
that is conspicuous to all employees and customers and that is close to the cash 
register, check-out stand, or vending machine where cigarettes or tobacco 
products may be purchased. 
(b) Sign Distribution. The comptroller upon request will provide the warning 
notice signs without charge to any person who sells cigarettes or tobacco 
products, including distributors or wholesale dealers of cigarettes or tobacco 
products in this state for distribution to persons who sell cigarettes or 
tobacco products. A distributor or wholesale dealer may not charge for 
distributing a sign under this subsection. Requests for the warning notice signs 
may be made by calling the Comptroller of Public Accounts toll free at 1-800-
862-2260, or by writing to the attention of the Account Maintenance Division, 
Comptroller of Public Accounts, 111 East 17th Street, Austin, Texas, 78774-0100. 
In Austin, call (512) 463-1693. From a Telecommunications Device for the Deaf 
(TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 
463-4621. A request must include the number of signs needed, and the person and 
address to whom the signs are to be mailed. 
(c) Alternate Signs. Retailers, distributors, and wholesale dealers may develop 
their own warning notice signs provided the signs meet minimum size and design 
specifications, including wording and font size, described in subsection (d) of 
this section. A retailer, distributor, or wholesale dealer may submit a sample 
of its proposed sign for review to the address as noted above. 
(d) Sign Design and Minimum Size Requirements. The design, minimum size, and 
placement location of each sign are as follows. 
(1) Design. Each sign must be designed according to the following:
(A) it must contain the following statutory language: "PURCHASING OR ATTEMPTING 
TO PURCHASE TOBACCO PRODUCTS BY A MINOR UNDER 18 YEARS OF AGE IS PROHIBITED BY 
LAW. SALE OR PROVISION OF TOBACCO PRODUCTS TO A MINOR UNDER 18 YEARS OF AGE IS 
PROHIBITED BY LAW. UPON CONVICTION, A CLASS C MISDEMEANOR, INCLUDING A FINE OF 
UP TO $500 MAY BE IMPOSED. VIOLATIONS MAY BE REPORTED TO THE TEXAS COMPTROLLER'S 
OFFICE BY CALLING 1-800-345-8647." 
(B) retailers must display the English version. The comptroller will make a 
Spanish version available. Both the Spanish and English versions may be posted. 
(2) Size and Placement. The sign to be posted on or near: 
(A) the cash register or check-out stand must be no less than 8-1/2 inches wide 
by 14 inches in length. The font size for the statutory language that must 
appear on the sign must be no less than 14-point type. An 8-1/2 inches wide by 
14 inches in length warning notice sign must be conspicuous from each cash 
register or check-out stand where cigarettes or tobacco products may be 
purchased. If a retailer chooses, an additional 3 inches wide by 7 inches in 
length warning notice sign may be conspicuously placed on each cash register or 
check-out stand where cigarettes or tobacco products may be purchased;
(B) the vending machines must be no less than 3 inches wide by 7 inches in 
length. The font size for the statutory language that must appear on the sign 
must be no less than 10-point type. 
(e) Effective Date. The warning notice signs must be displayed in the 
appropriate locations beginning January 1, 1998.
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 January 2, 1998.
TRD-9800021
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: January 22, 1998
Proposal publication date: October 31, 1997
For further information, please call: (512) 463-3699

34 TAC sec.3.1203
The Comptroller of Public Accounts adopts a new sec.3.1203, concerning approved 
seller training programs, with changes to the proposed text as published in the 
October 31, 1997, issue of the Texas Register (22 TexReg 10626). 
Senate Bill 55, enacted by the 75th Legislature, 1997, amended the Health and 
Safety Code, Chapter 161, and the Tax Code, Chapters 154 and 155, and authorized 
the comptroller to establish the minimum curriculum requirements for approved 
seller training programs. The seller training programs are intended to provide 
persons engaged in the retail sales or delivery of cigarettes or tobacco 
products with training and information about the provisions in the new law that 
prohibit the sale or delivery of cigarettes or tobacco products to minors. 
Changes were made to subsection (d)(2) to clarify that current federal and state 
laws should be discussed and compared. Subsection (e) was changed to shorten the 
training class length to a minimum of two hours. Subsection (i) was changed to 
clarify the administrative hearing process. Changes were made to subsection (j) 
to clarify the certification revocation and suspension process. Subsection (n) 
was also changed to correct the phone numbers for reporting class cancellations. 
Comments were received from the American Cancer Society - Texas Division, 
Austin, Texas; McLane Company, Inc., Temple, Texas; H.E.B., Austin, Texas; and 
an attorney in Dallas, Texas. 
The attorney made comments concerning the placement of tobacco vending machines 
and sales made from such machines. The comptroller made no changes based on 
these comments because the comments do not relate to the substance of this rule. 
The American Cancer Society recommends that the tobacco industry's seller 
training programs be excluded from eligibility for certification and tobacco 
industry employees not be allowed to teach the program. 
Senate Bill 55 does not allow the comptroller to exclude any person or entity 
from certification to offer approved seller training programs.
H.E.B. would like to combine tobacco seller training with its alcohol seller 
training program. H.E.B. would also like to utilize one form for reporting 
seller training information to the comptroller's office and the Texas Alcoholic 
Beverage Commission (TABC). H.E.B. also recommends requiring the class 
participants to use their Social Security number on class rosters instead of 
their driver's license number. 
The comptroller has no objections to H.E.B. combining the tobacco products 
seller training with alcohol seller training into one course, as long as the 
course curriculum is certified by the comptroller and complies with the 
standards and requirements set forth in this rule. The components of the seller 
training for tobacco and tobacco products will have to be included in the 
presentation, and the time requirements for each component, tobacco and alcohol, 
must be met. This will probably involve supplementation of existing materials 
and lengthening of the current course. 
Unfortunately, it is not possible to have combined reporting to TABC and the 
comptroller's office for tobacco and alcohol seller training class information. 
The comptroller's office must use the name and driver's license number (if 
applicable) of participants in tobacco seller training for identification 
purposes. Social Security numbers are personal information which, if possible, 
the comptroller's office avoids using for non-tax related purposes to protect 
confidentiality. 
McLane feels that comparing and contrasting the state and federal laws relating 
to sale and distribution of cigarettes and tobacco products will cause confusion 
if taught in a training class. 
By requiring vendors to compare and contrast the current federal laws with 
current state laws in the training class, the comptroller is ensuring that 
students understand and are familiar with the differences and similarities 
between the state and federal laws. In many instances, retailers and their 
employees must comply with federal and state laws, and must be informed of the 
provisions of both.
McLane requested clarification that it is not the comptroller's intention to 
have retailers and their employees determine sales based on any means other than 
that of checking a photographic identification. 
It is not the comptroller's intent to have retailers and their employees 
determine tobacco sales based on any other means than those prescribed by law. 
The intent of the curriculum requirements is to provide retail employees 
attending comptroller approved seller training classes with as much information 
as possible consistent with the goal of Senate Bill 55, which is to reduce the 
incidence of minors possessing and using tobacco. 
McLane requested clarification that the examples used to help retailers and 
their employees identify and eliminate second party sales will not become 
requirements imposed upon retailers and their employees. 
The inclusion of a discussion of second party sales in comptroller approved 
seller training classes is intended to provide retail employees with an example 
of one of the techniques used by minors to illegally obtain cigarettes and 
tobacco products. It does not impose any new legal requirements upon retailers 
and their employees.
McLane recommends that a suitable training program consist of a 15 to 30 minute 
videotape presentation followed by a questionnaire/exam.
Video presentations may be used in an approved training program. An instructor 
must also be present to direct the class and answer questions. After considering 
the comments received regarding the training program length, subsection (e) of 
the rule was changed so that the minimum length of the class is two actual clock 
hours, including class breaks. 
McLane recommends that retail store managers be allowed to become certified to 
present the training course so that their employees can be trained on the 
premises. 
No provision in Senate Bill 55 nor the comptroller's approved seller training 
rule requires the instructor of seller training to be certified by the 
comptroller.
Retailers having 100 or more employees at any time during the permit year and a 
curriculum certified by the comptroller may train their own employees at the 
retailer's location. A retailer with fewer than 100 employees may contract with 
a private entity or public community college which has a comptroller certified 
seller training program to provide training at the retailer's location.
This new section is adopted under the Tax Code, sec.111.002 and sec.111.0022, 
which provide the comptroller with the authority to prescribe, adopt, and 
enforce rules relating to the administration and enforcement of the provisions 
assigned to the comptroller by law, and Tax Code, sec.154.1143 and sec.155.0593, 
which provide that the comptroller shall adopt rules and policies establishing 
the minimum requirements for approved seller training programs.
The new section implements the Tax Code, sec.154.1143 and sec.155.0593.

sec.3.1203. Approved Seller Training Programs.
(a) Definitions. The following words and terms when used in this section shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Application - The form provided by the comptroller's office for use by 
persons interested in performing training under this section. 
(2) Cigarettes - Has the meaning assigned by Tax Code, Chapter 154. 
(3) Second party sales - A sale which results in the provision of tobacco 
products to a minor, even though the purchaser of the tobacco product is not 
necessarily a minor.
(4) Seller - Any person who sells cigarettes or tobacco products in this state. 
(5) Tobacco products - Has the meaning assigned by Tax Code, Chapter 155. 
(b) Application process. In order for a vendor to be certified to provide 
employers and employees engaged in the retail sales of cigarettes or tobacco 
products with training regarding provisions in the Health and Safety Code, 
Chapter 161 and in the Tax Code, Chapters 154 and 155, regarding regulation of 
sales, distribution, and use of tobacco products, the vendor's training program 
must meet the minimum curriculum requirements established by the comptroller and 
be certified by the comptroller. Vendors must make application to the 
comptroller's office on a prescribed application form. The comptroller's office 
will review qualified applications and certify vendors interested in providing a 
seller training program. 
(c) Curriculum information. Vendors interested in obtaining certification must 
apply in writing and provide a written description detailing curriculum 
information, including: 
(1) the presentation; 
(2) specific course objectives; 
(3) academic content; 
(4) learning activities; 
(5) audio-visual materials, if any; 
(6) written materials (including instructor manual and participant workbook); 
and 
(7) course evaluation or feedback forms. 
(d) Curriculum requirements. The curriculum of the training program presented 
should include, but is not limited to, the following components.
(1) Component One - tobacco-related health hazards. Statistical information 
regarding tobacco- related health hazards as published by the U.S. Food and Drug 
Administration must be included in this component.
(2) Component Two - federal and state laws. Discussion and comparison of the 
provisions of current federal law with the provisions of current state law 
pertaining to minors and tobacco must be included in this component. In 
particular, this component must include a review and explanation of all 
provisions relating to: 
(A) prohibiting the distribution of cigarettes or tobacco products to minors; 
(B) prohibiting the purchase, possession, or consumption of cigarettes or 
tobacco products by minors (citing examples of tobacco products included); 
(C) the warning notice signs for retail locations; 
(D) statistics on tobacco usage by adults and minors; and
(E) the placement of tobacco products in retail locations.
(3) Component Three - detection of minors. This component must identify and 
discuss: 
(A) observation techniques for determining when a customer is a minor; 
(B) common physical and behavioral signs of underage status; and 
(C) behaviors indicative of adolescence, including current clothing trends and 
fads, and physical appearance preferences, according to generally recognized 
experts in the field. 
(4) Component Four - personal identification. This component must: 
(A) identify, discuss, and provide actual samples of acceptable forms of 
identification, including, but not limited to:
(i) a valid state driver's license issued by the Texas Department of Public 
Safety; and 
(ii) other state or U.S. government issued forms of identification (with 
photograph); 
(B) identify, discuss, and provide actual samples of unacceptable forms of 
identification including, but not limited to: 
(i) a temporary state driver's license; 
(ii) a birth certificate; 
(iii) a school or work ID; 
(iv) a social security card; and 
(v) a professionally printed identification card. 
(C) explain how to detect invalid identification documents used in attempts to 
establish proof of age and provide examples of the following:
(i) unofficial documents that look similar to official documents;
(ii) types of document counterfeiting and alteration; and
(iii) warning signs of document counterfeiting and alterations.
(5) Component Five - second party sales. This component must: 
(A) explain and define second party sales; and 
(B) provide examples of second party sales including, but not limited to, the 
following: 
(i) a minor loitering outside a store in the store parking lot; 
(ii) a minor loitering around a store, either inside or outside, after having 
been refused a tobacco purchase; and 
(iii) a minor randomly approaching an adult customer to solicit the adult 
customer to purchase tobacco products and giving the adult customer money. 
(6) Component Six - refusing a sale. This component must: 
(A) identify and discuss techniques to prevent an illegal sale of tobacco 
products to a minor or second party; 
(B) identify and discuss techniques to terminate an illegal sale of tobacco 
products to a minor or second party; and 
(C) provide examples of words and actions that may be used by a seller to 
amicably avoid or terminate illegal attempts to purchase tobacco by a minor. 
(e) Class length. The time length of the seller training class should be a 
minimum of two actual clock hours, including class breaks. 
(f) Notice of certification or denial. The comptroller shall notify each 
applicant with a letter of certification or denial, including reasons for the 
denial, within 15 business days from the date the application is received by the 
comptroller. The certification or denial letter will be mailed to the address on 
the vendor's application. 
(g) Certification. A qualified vendor is certified to provide seller training 
unless the certification is revoked or suspended by the comptroller.
(h) Denial. Applications for certification will be denied based on the following 
factors: 
(1) the curriculum information submitted does not meet the minimum requirements 
set out in subsection (d) of this section; 
(2) the application is incomplete; 
(3) the applicant is currently delinquent in the payment of any tax or fee 
collected by the comptroller. 
(i) Administrative hearing. If the comptroller determines that an applicant is 
not eligible for certification, the applicant will be notified, in writing, that 
the application has been denied. The notice will state the reasons for the 
denial. The applicant may, within 15 days of the date of the notice of denial, 
make a written request for an oral hearing to contest the denial. If the 
applicant does not request a hearing within 15 days of the date of the notice of 
denial, the hearing is waived and the denial is final. The hearing will be 
governed by the provisions of sec.sec.1.1-1.42 of this title (relating to 
Practice and Procedure). 
(j) Certification revocation or suspension. The comptroller may, after notice 
and opportunity for a hearing, revoke or suspend a vendor's certification upon 
finding that the seller training classes provided by a vendor fail to comply 
with the comptroller's standards and requirements for seller training programs 
described in subsections (c), (d), and (e) of this section, or the vendor 
becomes delinquent in the payment of any tax or fee collected by the 
comptroller. If the comptroller determines that certification should be 
suspended or revoked, the comptroller will notify the vendor, in writing, that 
the certification will be suspended or revoked and will state the reasons for 
the action. The vendor may, within 15 days of the date of the notice of 
suspension or revocation, make a written request for an oral hearing to contest 
the action. If the vendor does not request a hearing within 15 days of the date 
of the notice of suspension or revocation, the hearing is waived and the 
suspension or revocation becomes effective. 
(k) Certification reinstatement. The comptroller may reinstate the vendor's 
certification after receiving proof that the vendor has satisfied all the 
comptroller's standards and requirements for seller training as provided under 
subsections (c), (d), and (e) of this section, and the vendor is current in the 
payment of any tax or fee obligation due the comptroller. 
(l) Notice of classes scheduled. Vendors must provide the comptroller's office 
written notification of the date, time, and location of scheduled training 
classes at least five business days prior to the date training classes will be 
conducted.
(m) Vendor reporting requirements. 
(1) By the 15th day of the month, each certified vendor must report data for 
each training class completed during the previous month. The data must include: 
(A) a class roster with the name, driver's license number, and date of birth of 
each participant; 
(B) the total number of classes conducted for the month; 
(C) the total number of participants that attended each class; and 
(D) the total number of participants that successfully completed the class. 
(2) The reports must be mailed to the Texas Comptroller of Public Accounts, 111 
East 17th Street, Austin, Texas, 78774-0100. 
(n) Class cancellations. Vendors must notify the comptroller's office by 
telephone of any training class cancellations prior to the actual training 
session date by calling 1-800-531-5441, extension 65946 or the local number in 
Austin (512) 936-5946. 
(o) Class monitoring. Training classes may be monitored unannounced by the 
comptroller or a comptroller's representative to evaluate the curriculum 
presentation and the classroom environment. 
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 January 2, 1998.
TRD-9800022
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: January 22, 1998
Proposal publication date: October 31, 1997
For further information, please call: (512) 463-3699

34 TAC sec.3.1204
The Comptroller of Public Accounts adopts a new sec.3.1204, concerning 
administrative remedies for violations of Health and Safety Code, Chapter 161, 
Subchapter H or K, with changes to the proposed text as published in the October 
31, 1997, issue of the Texas Register (22 TexReg 10628).
Senate Bill 55, adopted by the 75th Legislature, 1997, added sec.154.1142 and 
sec.155.0592 to the Tax Code authorizing the comptroller to administratively 
assess a fine for certain violations of the Health and Safety Code. 
Changes were made to subsections (c)(1)-(c)(3) to clarify that in cases where 
multiple violations of the Health and Safety Code, Chapter 161, Subchapter H or 
K occur, fines may be assessed per violation. A change was made to subsection 
(c)(4) to indicate that the comptroller may revoke a retailer's permit for 
certain violations of the Health and Safety Code, Chapter 161, Subchapter H or 
K. A change was made to subsection (e) to change the number of calendar days a 
permit holder has to respond to a written notice of violation to conform to 
current practice. The original subsection (f) is deleted. The information that 
was in this subsection is now reflected in subsection (e). The original 
subsection (g) was relettered to (f) and the word "oral" was added to clarify 
the type of administrative hearing. The original subsection (h) was relettered 
to (g) and words were added to clarify the provision. 
Comments were received from the American Cancer Society - Texas Division, 
Austin, Texas; the American Heart Association, Austin, Texas; McLane Company, 
Inc., Temple, Texas; and an attorney in Dallas, Texas. 
The attorney made comments concerning the placement of tobacco vending machines 
and sales made from such machines. The comptroller made no changes based on 
these comments because the comments do not relate to the substance of this rule. 
The American Cancer Society does not feel the comptroller's office has the 
statutory authority to offer a lesser penalty to violators who waive the right 
to a hearing. 
The comptroller's office is merely complying with the statutory parameters for 
administrative fines. The statutory fines are maximums, and the comptroller's 
office is within its legal authority to promulgate administrative rules that 
reflect the same fines that are set by statute and enable the agency to execute 
its responsibility under the law. 
The American Heart Association commented favorably about the comptroller's 
effort to encourage retailers to cooperate with enforcement of the prohibition 
on tobacco sales to minors by providing an incentive for more cooperation and by 
reducing administrative costs. 
McLane is concerned that the comptroller's office will take premature 
disciplinary action based upon complaints received from the tobacco hotline. 
Therefore, McLane encourages the comptroller's office to require that all 
complaints be submitted in writing and the rule be modified to allow for the 
imposition of severe fines and penalties for those persons or organizations 
filing false claims. 
The comptroller's office will not take any administrative action against a 
permit holder without verification of a complaint which comes from the tobacco 
hotline. The Enforcement Division and the Criminal Investigations Division of 
the comptroller's office will coordinate with local law enforcement to follow up 
on complaints received from the tobacco hotline. Complaints received from the 
tobacco hotline will eventually take written form if there is, in fact, a 
violation. If a violation is found, an agent of the comptroller or local law 
enforcement will either make a written report or issue a citation. The 
comptroller's office will not take any disciplinary action without the requisite 
proof of violation. The comptroller's office does not have statutory authority 
or jurisdiction to impose penalties against individuals for filing false 
complaints under Senate Bill 55. 
This new section is adopted under the Tax Code, sec.111.002 and sec.111.0022, 
which provide the comptroller with the authority to prescribe, adopt, and 
enforce rules relating to the administration and enforcement of the provisions 
assigned to the comptroller by law. 
The new section implements Tax Code, sec.154.1142 and sec.155.0592.

sec.3.1204. Administrative Remedies for Violations of Health and Safety Code, 
Chapter 161, Subchapter H or K. 
(a) Definitions. The following words and terms, when used in this section shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Place of business - Has the meaning assigned by the Tax Code, sec.154.001 
and sec.155.001. 
(2) Permit holder - Has the meaning assigned by the Tax Code, sec.154.001 or 
sec.155.001.
(3) Retailer - Has the meaning assigned by the Tax Code, sec.154.001 or 
sec.155.001. 
(b) Notice of violations. The comptroller receives notice of a violation of 
Health and Safety Code, Chapter 161, Subchapter H or K from:
(1) the Enforcement or Criminal Investigations Divisions of the comptroller's 
office; 
(2) local law enforcement or Drug Abuse Resource Education (DARE); 
(3) a municipal court or a justice of the peace court; or 
(4) a complaint reported by a caller on the tobacco hotline.
(c) Disciplinary actions. The comptroller after receiving notice of violation 
may take the following actions: 
(1) if during the preceding 12 months at the place of business for which a 
permit is issued, the permit holder has not been found to have violated the 
Health and Safety Code, Chapter 161, Subchapter H or K, the comptroller may 
require the permit holder to pay a fine in an amount not to exceed $500 per 
violation; 
(2) if during the preceding 12 months at a place of business for which a permit 
is issued, the permit holder has been found to have violated the Health and 
Safety Code, Chapter 161, Subchapter H or K, the comptroller may require the 
permit holder to pay a fine in an amount not to exceed $750 per violation; 
(3) if during the preceding 12 months at a place of business for which a permit 
is issued, the permit holder has been found to have violated the Health and 
Safety Code, Chapter 161, Subchapter H or K at least twice, the comptroller may 
require the permit holder to pay a fine in an amount not to exceed $1000 per 
violation or suspend the permit for that place of business for not more than 
three days; or 
(4) if during the preceding 12 months the permit holder has been found to have 
violated Health and Safety Code, sec.161.082(b), on four or more previous and 
separate occasions at the same place of business for which a permit is issued, 
the comptroller may revoke the permit. 
(A) The revocation of the retailer's permit shall be governed by the provisions 
in Tax Code, sec.154.114 and sec.155.059. 
(B) A retailer whose permit has been revoked under paragraph
(4) of this subsection may not apply for a retailer's permit for the same place 
of business before the expiration of six months after the effective  date of the 
revocation. 
(d) The comptroller will send written notice to the permit holder informing the 
permit holder that a violation has occurred. If the comptroller so offers, the 
permit holder may have the option to waive the right to a hearing and pay a 
lesser administrative fine or agree to a lesser administrative remedy.
(e) If the permit holder does not respond to the written notice of violation 
within 15 calendar days or requests a hearing, a hearing will be set. The 
hearing shall be governed by sec.sec.1.1-1.42 of this title (relating to 
Practice and Procedure). 
(f) An oral administrative hearing will be held at the office of the Comptroller 
of Public Accounts in Austin, Texas. The recourse for a permit holder who does 
not agree with the administrative decision will be governed by the provisions of 
Tax Code, Chapter 111; Government Code, Chapter 2001; and sec.sec.1.1-1.42 of 
this title. 
(g) The burden of proof in an administrative hearing pursuant to this rule is by 
a preponderance of the evidence, unless otherwise provided 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 January 2, 1998.
TRD-9800023
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: January 22, 1998
Proposal publication date: October 31, 1997
For further information, please call: (512) 463-3699

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART VII. Texas Commission on Law Enforcement Officer Standards and Education
CHAPTER 225.Contract Jailer Certification Division
37 TAC sec.sec.225.1, 225.3, 225.5, 225.7, 225.9, 225.11
The Texas Commission on Law Enforcement Officer Standards and Education adopts 
new sec.sec.225.1, 225.3, 225.5, 225.7, and, 225.11, concerning contract jailer 
certification, without changes to the proposed text as published in the October 
3, 1997 issue of the Texas Register (22 TexReg 9865). sec.225.9 is adopted with 
a change from the proposed text as published in the same issue. Subsection (j) 
of that section was inadvertently omitted from the proposal. The section 
requires a contract jail chief administrator to notify the Commission when a 
person under appointment as a contract jailer resigns or is terminated. The 
subsection had been considered, proposed and adopted by the Commissioners, and 
is a necessary reporting procedure which is required of all chief administrators 
who appoint personnel who must be licensed or certified by the Commission to 
perform their duties. The subsections that follow the omitted subsection were 
also renumbered to reflect the correction. 
These sections were developed to implement a new certification program for 
contract jailers. The new certification program is required by Senate Bill 367, 
passed during the 75th Legislative session, which requires operators of private 
facilities that contract with cities or counties to hold out-of-state prisoners 
to ensure that their detention employees are certified by the Commission.
The Commission modeled this proposed certification program after its existing 
county jailer licensing program, with the exception that there will be a fee for 
issuance of contract jailer certificates, and that these certificates will be 
renewable, rather than permanent. The fees will be phased in over the year 
following the effective date of the new sections. 
No comments were received regarding the adoption of these new sections.
The new sections are adopted under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the commission to promulgate rules for the 
administration of Chapter 415, and sec.415.062, which authorizes the commission 
to issue proficiency certificates.

sec.225.9.Reporting Responsibilities of Contract Jail Chief Administrators 
(a) A contract jail chief administrator is responsible for making any reports or 
submitting any documents required of that entity by the commission. 
(b) Prior to the employment by a contract jail of a person who does not hold a 
contract jailer certificate, a contract jail chief administrator must contact 
the commission to determine whether the person has a current and valid contract 
jailer certificate. If the person does not have a valid certificate, the chief 
administrator must file an application for the certificate with the commission. 
The application must be approved with a certificate issuance date before the 
person is employed. The application must be completed, signed, and filed with 
the commission by the contract jail's chief administrator or designee. 
(c) An application for a temporary contract jailer certificate or contract 
jailer certificate must be submitted on the application form currently 
prescribed by the commission and must have attached to it two commission 
applicant fingerprint cards. 
(d) A contract jail that files an application for certification must keep on 
file and in a format readily accessible to the commission and the Commission on 
Jail Standards a copy of the documentation necessary to show that each temporary 
contract jailer certificate holder or contract jailer certificate holder 
appointed by that contract jail met the minimum standards for certification, 
including specifically: 
(1) a computerized criminal history (CCH) check by name, race, sex and date of 
birth by both TCIC and NCIC; 
(2) two completed applicant fingerprint cards; 
(3) an original sworn, notarized statement by the applicant
(A) of his or her complete criminal history; or 
(B) that he or she has never been arrested, charged, convicted or placed on 
probation for a criminal offense. 
(4) a certified document from the appropriate authority showing final 
disposition of each arrest, probation, community supervision, conviction, or any 
other criminal history that may exist; 
(5) an original and current declaration signed by a physician that the applicant 
is both physically sound and shows no trace of drug dependency or illegal drug 
use; 
(6) an original and current declaration signed by a licensed psychologist or 
psychiatrist that the applicant is in satisfactory psychological and emotional 
health to be a private jailer; 
(7) a DD-214 or other documentation showing the character of service, if the 
applicant was ever in the military; 
(8) a copy of a valid high school diploma, GED certificate, college transcript, 
or other documentation necessary to show the applicant meets the education 
standards for the contract jailer certificate; and 
(9) any other documentation required by the commission for that certificate. 
(e) The contract jail chief administrator must notify the commission of the 
appointment of a person who holds a current and valid contract jailer 
certificate not later than 30 days after the date of employment. Notification 
must be made on the currently prescribed commission form that reports 
employment. This form must be completed, signed and filed with the commission by 
the contract jail's chief administrator or designee. If the person is hired 
after a 180-day break in employment, the report of employment must include: 
(1) a new criminal history check by name, sex, race and date of birth from both 
TCIC and NCIC; 
(2) a new declaration of psychological and emotional health; 
(3) a new declaration of lack of any drug dependency or illegal drug use; and 
(4) an original sworn, notarized statement by the applicant
(A) of his or her complete criminal history, or 
(B) that he or she has never been arrested, charged, convicted, or placed on 
probation for a criminal offense. 
(f) A contract jail must retain a copy of records required under this section 
for a minimum of five years after the employee's termination date with the 
contract jail. The records must be maintained in a format readily accessible to 
the commission and to the Texas Commission on Jail Standards.
(g) A contract jail which submits an application for an individual must report 
to the commission any failure to employ that individual in the reported capacity 
within 30 days of the reported date of employment. Such report must be made on a 
currently prescribed commission form that reports termination. 
(h) A contract jail chief administrator shall notify the commission in writing 
within 30 days when it receives information that a person employed with that 
entity has been arrested, charged, indicted, or convicted for any offense for 
which confinement may be a punishment. 
(i) Except in the case of a commission error, a contract jail chief 
administrator who wishes to report a change to any information within commission 
files about a certificate holder shall do so in a signed, written request to the 
commission, containing: 
(1) the certificate holder's name and social security number;
(2) the requested change; and 
(3) the reason for the change. 
(j) A contract jail chief administrator must notify the commission in writing on 
a commission form that reports termination when a person under appointment with 
that entity resigns or is terminated. 
(k) When a person who holds a contract jailer certificate or a temporary 
contract jailer certificate resigns from employment with a contract jail or if a 
person's employment is terminated for any reason, the contract jail shall submit 
a report to the commission on the currently prescribed commission form that 
reports resignation or termination. The report shall be submitted within 30 days 
following the date of resignation or termination.
(l) The effective date of this section is March 1, 1998.
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. 
Filed with the Office of the Secretary of State on December 31, 1997.
TRD-9717293
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Education
Effective date: March 1, 1998
Proposal publication date: October 3, 1997
For further information, please call: (512) 450-0188