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 <nl> code. [Brackets] indicate deletion of existing material 
within a section.

TITLE 1. ADMINISTRATION
PART IV. Office of the Secretary of State
CHAPTER 81. Elections
Political Parties
1 TAC sec.81.117, sec.81.121
The Office of the Secretary of State proposes amendments to sec.81.117 and 
sec.81.121, concerning primary election funding. Section 81.117 is amended to 
raise the amount of a services contract requiring Secretary of State approval 
from $500 to $1,000. This amendment is consistent with other expenditure amounts 
requiring Secretary of State approval. Section 81.121 is amended to reflect the 
compensation for workers who annotate voter registration lists prior to election 
day, and to set limits on compensation for early ballot board workers when the 
ballot board is reconvened to count late ballots under Texas Election Code, 
sec.87.005.
Clark Kent Ervin, Assistant Secretary of State, has determined that for the 
first five-year period the sections are in effect there will be a fiscal 
implication for state government as a result of enforcing or administering the 
sections. Allowing one hour of compensation for annotating the voter 
registration lists will likely increase the total amount of compensation paid to 
election workers. This additional compensation will amount to about $105,395.00 
in additional funds being paid out of the state primary finance fund. 
Mr. Ervin has also determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be the proper and efficient conduct of the 1998 primary 
elections by party officials with the aid of state money appropriated for that 
purpose. There will be no effect on small businesses. There will be no 
anticipated economic cost to the state and county chairs of the Democratic and 
Republican parties. 
Comments on the proposal may be submitted to the Office of the Secretary of 
State, Cathie E. Penn, Program Administrator for Elections Funds Management, 
P.O. Box 12060, Austin, Texas 78711. 
The amendments are proposed under the Texas Election Code, sec.31.003 and 
sec.173.006, which provides the Office of the Secretary of State with the 
authority to obtain and maintain uniformity in the application, interpretation, 
and operation of provisions under the Texas Election Code and other election 
laws, and, in performing such duties, to prepare detailed and comprehensive 
written directives and instructions based on such laws, and to adopt rules 
consistent with the Election Code that reduce the cost of the primary elections 
or facilitate the holding of the elections within the amount appropriated by the 
legislature for that purpose. 
The Texas Election Code, Chapter 173, Subchapter A, sec.173.006 is affected by 
this proposed amendment. 

sec.81.117. Contracts for Services Must Be with Contractors Regularly in the 
Contracted Business.
Contractors submitting bids as required by sec.81.115 of this title (relating to 
Competitive Quotations for Services or Products Are Required) must provide names 
and telephone numbers of at least three other customers as references in order 
to be considered for any work to be done for the primary fund. Such contractors 
must be able to provide verifiable proof of at least 18 months experience 
providing services being bid in the normal course of their business to other 
parties. Contracts for services costing over <nl> $1000<ol> [$500] must be 
approved in writing by the Secretary of State before money from the primary fund 
may be expended under the terms of such contracts. The fee or rate must be 
reasonable for the services rendered and must be in accord with the fee or rate 
prevailing in the locale for the same or similar services. The contract shall be 
signed by both the county chair and the contractor. It is the county chair's 
responsibility to obtain Employer Identification Numbers from contractors and 
issue IRS Form 1099 if required. 

sec.81.121. Compensation for Election Day Workers.
The hourly rate payable to precinct judges, clerks, early voting ballot board 
members, or persons working at the central counting station for the <nl> 
1998<ol> [1996] general primary and primary runoff elections may not exceed 
<nl>$5.15<ol> [$5.00]. A judge or clerk may be paid only for the actual time 
spent on election duties performed in the polling place or counting station, 
<nl>with the following exceptions. One election worker from each polling place 
may be allowed up to one hour to annotate the precinct list of registered voters 
before election day. If the total number of hours that the early voting ballot 
board works on election day and in reconvening to count late ballots cast from 
outside the United States is less than ten hours, then the ballot board members 
may be paid greater compensation than actually worked, but in no event may the 
compensation exceed the amount payable for 10 hours of work. If the total number 
of hours worked is greater than 10 hours, then the ballot board is entitled to 
compensation for actual time worked.<ol> An election day worker may not receive 
an hourly compensation for travel time, pick up or delivery of supplies, or 
attendance at the precinct convention. Technical support personnel in the 
central counting station appointed under the Texas Election Code, 
sec.sec.127.002, 127.003, or 127.004 may receive a compensation of greater than 
<nl> $5.15<ol> [$5.00] per hour. 
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. 
Filed with the Office of the Secretary of State on January 16, 1998.
TRD-9800782
Clark Kent Ervin
Assistant Secretary of State
Office of the Secretary of State
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 463-5650

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 3.Boll Weevil Eradication Program
SUBCHAPTER E.Creation of Eradication Zones
4 TAC sec.3.112
The Texas Department of Agriculture (the department) proposes new sec.3.112, 
concerning the creation of a nonstatutory boll weevil eradication zone The new 
section is proposed to establish a new nonstatutory boll weevil eradication zone 
consisting of counties not currently located in a statutory zone created under 
Chapter 74, Subchapter D, sec.74.1021. New sec.3.112 proposes, upon the request 
of the Northern Rolling Plains Boll Weevil Eradication Zone Interim Advisory 
Committee, the designation of the Northern Rolling Plains Boll Weevil 
Eradication Zone, in accordance with the Texas Agriculture Code, sec.74.1042. 
Katie Dickie Stavinoha, special assistant for producer relations, 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. 
Ms. Stavinoha also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
sections will be the ability to address cotton growers' desires to have 
efficient, responsive eradication zones to facilitate boll weevil eradication in 
Texas. There will be no effect on small businesses. The anticipated economic 
cost to persons who will be required to comply with the new sections, as 
proposed, is not determinable at this time. If the proposed zone is designated 
and an eradication program and assessment approved by cotton growers in the 
zone, cotton growers in the zone will be assessed annually to cover costs of an 
eradication program in that zone. The costs to individual growers will depend on 
voter approval of an eradication program and assessment, and the amount of the 
assessment established for the zone once a program is approved. 
Comments on the proposal may be submitted to Katie Dickie Stavinoha, Special 
Assistant for Producer Relations, P. O. Box 12847, Austin, Texas 78711, and must 
be received no later than 30 days from the date of the publication of this 
proposal in the Texas Register.
The new section is proposed under the Texas Agriculture Code, sec.74.1042, which 
provides the commissioner of agriculture with the authority, by rule, to 
designate an area of the state as a proposed boll weevil eradication zone. 
The codes affected by the proposal are the Texas Agriculture Code, Chapter 74.

sec.3.112.Northern Rolling Plains Boll Weevil Eradication Zone.
The Northern Rolling Plains Boll Weevil Eradication Zone shall consist of the 
following area: all of Gray, Wheeler, Donley, Collingsworth, Hall, Childress, 
Cottle, King, Hardeman, Wilbarger, Wichita, Clay, and Foard counties, and all of 
Archer County lying north of a line following FM 422 commencing at the Baylor 
county line running east to the intersection of FM 210, continuing east to the 
intersection of State Highway 25, and continuing east to the Clay County line.
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. 
Filed with the Office of the Secretary of State, on January 14, 1998.
TRD-9800562
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 463-7541

PART II. Texas Animal Health Commission
CHAPTER 35.Brucellosis
SUBCHAPTER A.Eradication Brucellosis in Cattle
4 TAC sec.35.2
The Texas Animal Health Commission proposes an amendment to sec.35.2, concerning 
the general requirements relating to eradication of brucellosis in cattle. The 
amendment is being proposed to standardize vaccination ages of cattle. This 
action can be taken as a result of the required use of the vaccine RB-51. The 
amendment also deletes reference and tables relating to the Complement Fixation 
test, and replaces references to the Brucellosis ring test with the Brucellosis 
Milk Surveillance Test. The amendment also deletes language requiring certain 
card test positive cattle to be marked on the hip with yellow paint. The 
amendment is also proposed to clarify that the hold order, rather than the 
quarantine, is used when a vaccinated suspect is located at a market and 
returned to the herd of origin. The amendment is also proposed to require that a 
hold order be placed on herds with fence line or across the road contact with a 
quarantined herd unless an epidemiological evaluation determines the hold order 
is unnecessary. Under the proposed rule, other adjacent or high risk herds may 
be placed under hold order. 
Ms. Suzy Beightler Whittenton, Assistant Executive Director for Administration, 
has determined 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. The agency has made a categorical determination that 
this rule relates to the handling of animals and does not impact private real 
property rights. 
Terry L. Beals, DVM, Executive Director, 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 to update and clarify current testing 
protocols, as well as a clarification of terminology with hold orders and 
quarantines and to require the imposition of a hold order on some adjacent 
herds, thereby reducing the chance of exposing other cattle to brucellosis. 
There are minimal anticipated economic costs to persons who are required to 
comply with the rule as proposed. 
Comments regarding the proposed amendment may be submitted to Ms. Tiffany N. 
Norvell, P.O. Box 12966, Austin, Texas 78711-2966; or by Email: 
tiffanyn@tahc.state.tx.us
The amendment is proposed under the Texas Agriculture Code, Chapter 161, 
Subchapter C, sec.161.061 and sec.161.064 which authorize the Commission to 
enact rules to eradicate communicable disease, and Chapter 163, Subchapter D, 
sec.161.061 and sec.161.064 which authorize the Commission to adopt rules 
relating to vaccination of cattle. 

sec.35.2.General Requirements.
(a) Testing of blood and semen. 
(1)-(6) (No change.) 
(b) Classification of cattle. Cattle shall be classified by approved personnel 
by an evaluation of titer responses for all cattle to serological tests, or by 
identification of Brucella abortus in specimens taken from these cattle. The 
following serological tests may be used for the classification of cattle. 
(1) Card test. The card test (buffered Brucella is a test antigen) that may be 
used to classify cattle as suspects. Results of the card test may be used with 
other test results conducted in the state-federal laboratory to aid in the 
classification of cattle as reactors. The card test may be used as a test to 
classify cattle as reactors on written approval of the owner or his agent. The 
owner or his agent's signature on test charts prior to "B" branding will be 
accepted as approval. Card tests may be used to classify cattle negative on 
surveillance samples collected at slaughter, on routine samples collected on 
farms, at livestock markets, and on tests of suspicious and affected herds. 
[(2) Complement fixation test (CF).] 
[(A) Technicon automated complement fixation test. The Technicon automated 
complement fixation test is an official test when it is conducted at the 
cooperative state-federal brucellosis laboratory using recognized methods.] 
[(i) Interpretation of the Technicon CF test results.] 
[Figure: 4 TAC sec.35.2(b)(2)(A)(i)]
[(ii) Interpretation of test result codes. The following codes are utilized by 
the laboratory to represent the corresponding test results:] 
[Figure: 4 TAC sec.35.2(b)(2)(A)(ii)] 
<nl>(2)<ol> [(B)]Manual complement fixation test. The manual complement fixation 
test is an official test when it is conducted at the cooperative state-federal 
brucellosis laboratory using recognized methods. 
<nl>(A)<ol> [(i)]Interpretation of the manual CF test results. 
Figure: 4 TAC sec.35.2(b)(2)<nl>(A)<ol>[(B)(i)]
<nl>(B)<ol> [(ii)]Interpretation of test result codes. The following codes are 
utilized by the laboratory to represent the corresponding test results: 
Figure: 4 TAC sec.35.2(b)(B)[(ii)]
(3) (No change.) 
(4) <nl>Brucellosis Milk Surveillance Test (BMST)<ol> [Brucellosis ring test 
(BRT)]. The brucellosis<nl> milk surveillance <ol> [ring] test, conducted by 
methods approved by <nl>USDA-APHIS-VS <ol> [the National Veterinary Services 
Laboratory], is a test that may be used to classify herds or cattle as suspected 
of being infected with brucellosis. 
(5)-(10) (No change.) 
(c) (No change.) 
(d) Requirements for a herd test. 
(1) Test eligibility. 
(A) (No change.)
(B) Other than priority herds--All non-exempt cattle 18 months of age and older 
except steers<nl> and,<ol> [,] spayed heifers [, official vaccinates of dairy 
breeds under 20 months of age, and official calfhood vaccinates of beef breeds 
under 24 months of age. Official calfhood vaccinates that are parturient or 
postparturient are test eligible regardless of age]. 
(2) Calfhood vaccination requirements. All female cattle between four and 12 
months of age in affected herds must be vaccinated at the time of testing. 
(3) Identification requirements. All cattle tested shall be identified with 
either an official eartag, an individual registration tattoo, or individual 
registration brand. All cattle in priority herds except steers, spayed heifers, 
and bulls under 18 months must be officially identified regardless of test 
eligibility. 
(e)-(h) (No change.) 
(i) Movement of cattle classified as reactors, exposed or suspects. There shall 
be no diversion from the permitted destination. When moved, the cattle must be 
maintained separate and apart from all other classes of livestock in pens 
reserved for this purpose at livestock markets or trucking facilities. These 
pens must be thoroughly cleaned and disinfected before reuse. 
(1)-(2) (No change.) 
(3) Suspects. Suspects will be moved the same as exposed cattle, except a 
vaccinated suspect(s) at a livestock market in a consignment of otherwise 
negative cattle (where the suspect is card positive on the presumptive test and 
negative to supplemental tests) may move as follows: In a single consignment of 
cattle, which are from a producer's herd of origin, the owner shall either 
return the vaccinated suspect(s) under<nl> hold order<ol> [quarantine] to the 
herd of origin until the suspect(s) is negative to the card test, declared a 
stabilized suspect by an epidemiologist after subsequent test(s) conducted in 
not less than 30 days, or classified as a reactor on a subsequent test: or sell 
the suspect(s) to a quarantined feedlot, designated pen, quarantined pasture, or 
to slaughter, identified with an "S" brand. Card negative cattle in this 
consignment may move from the market unrestricted. Consignments containing a 
card positive but supplemental negative non vaccinated suspect(s) may move from 
the market unrestricted. 
(j)-(k) (No change.) 
(l) Requirements following classification of a dairy or a beef animal or a bison 
as a reactor or a suspect. 
(1) The herd of which the reactor or the suspect was a part shall be placed 
under quarantine <nl>or hold order. When brucellosis infection is diagnosed in a 
herd, a quarantine will be placed on the herd. Any herd with fence line or 
across the road contact with the quarantined herd will be evaluated by a USDA or 
TAHC epidemiologist who will determine whether the herd should be placed under 
hold order. Other adjacent or high risk herds may be placed under hold 
order.<ol> [An adjacent or high risk herd may be placed under quarantine.]
(2) All cattle in the herd except bulls less than 18 months of age, steers, and 
spayed heifers are included in the quarantine <nl>or hold order<ol>. Any 
movement of quarantined cattle shall conform to subsections (h) and (i) of this 
section concerning identification and movement of reactor, exposed, or suspect 
cattle. Release of the quarantine will be as described in paragraph (7) of this 
subsection. 
(3)-(7) (No change.) 
(m)-(v) (No change.) 
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. 
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800805
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 719-0714

4 TAC sec.35.3
The Texas Animal Health Commission proposes an amendment to sec.35.3, concerning 
the requirements for certified brucellosis free herds of cattle relating to 
eradication of brucellosis in cattle. The amendment is being proposed to replace 
language referring to a milk ring test with the Brucellosis Milk Surveillance 
Test. This change will allow the state/federal laboratory more testing latitude. 
Ms. Suzy Beightler Whittenton, Assistant Executive Director for Administration, 
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. The agency has made a categorical statement 
that this rule relates to the qualifying methods of herds certifying for 
brucellosis free herd status and does not impact private real property rights. 
Terry L. Beals, DVM, Executive Director, 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 to allow the state/federal lab more 
latitude in conducting milk ring tests in order for a producer's herd to be 
certified as brucellosis free. 
Comments regarding this proposal or requests for public hearings should be 
directed to Ms. Tiffany N. Norvell, P.O. Box 12966, Austin, Texas 78711-2966; or 
by Email: tiffanyn@tahc.state.tx.us 
The amendment is proposed under the Texas Agriculture Code, Chapter 161, 
Subchapter C, sec.sec.161.041 and 161.046 which authorize the Commission to 
enact rules to eradicate communicable disease, and Chapter 163, Subchapter D, 
sec.163.064 which authorizes the Commission to adopt rules relating to the 
testing of cattle. 

sec.35.3.Requirements for Certified Brucellosis Free Herd of Cattle.
(a)-(c) (No chnge.)
(d) Qualifying methods. A herd may qualify by one or more of the following 
methods. 
(1) Initial certification. 
(A) <nl>Brucellosis Milk Surveillance Test (BMST)<ol> [Milk ring test (BRT)]. A 
minimum of four consecutive, negative milk ring tests conducted at not less than 
90-day intervals, followed by a negative herd blood test conducted within 90 
days after the last negative milk ring test. 
(B) (No change.)
(2)-(3) (No changs.) 
(e) Qualifying Standards. 
(1) Herd infection rates. The individual herd must disclose no evidence of 
infection at the time of initial certification or recertification.
(A negative blood test and a complete epidemiological investigation may be used 
to resolve a suspicious <nl>BMST<ol> [BRT] in qualifying a dairy herd.) 
(2)-(5) (No change.) 
(f) (No change.)
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. 
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800806
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 719-0714

4 TAC sec.35.6
The Texas Animal Health Commission proposes an amendment to sec.35.6, concerning 
indemnity payments to owners of cattle infected with or exposed to brucellosis 
relating to the eradication of brucellosis in cattle. The proposed amendment 
would change the criteria for the selection of herds for indemnity payment 
requiring that the herd have a professional diagnosis. The proposed amendment 
also deletes language referencing specific dollar amounts for indemnity 
replacing it with broader definitive terms allowing the Commission more 
flexibility in encouraging owners of cattle which have been infected with or 
exposed to brucellosis to depopulate those herds or cattle. The amendment also 
states that a professional appraiser will establish the value of the cattle or 
herds selected for indemnity. Depopulation funds may also be paid for calves at 
a rate up to $400.00 or the appraised market value, minus salvage. 
Ms. Suzy Beightler Whittenton, Assistant Executive Director for Administration, 
has determined that for the first five-year period the rule is in effect, there 
will be no net fiscal implications for state or local government as a result of 
enforcing or administering the rule. The funds, if available, will be provided 
by the federal government. The agency has made a categorical statement that this 
rule relates to the handling of animals and does not affect private real 
property rights. 
Terry L. Beals, DVM, Executive Director, 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 to allow owners of herds or cattle 
infected with or exposed to brucellosis a more fair indemnity for depopulating 
those herds or cattle, and will help the state completely eradicate brucellosis 
in cattle in order to be classified as a Class-Free state. The speedy 
achievement of this classification will ensure that cattle originating in herds 
from Texas are able to be exported to other states without implications. 
Comments regarding this proposed amendment or requests for public hearings 
should be directed to Ms. Tiffany N. Norvell, P.O. Box 12966, Austin, Texas 
78711-2966; or by Email: tiffanyn@tahc.state.tx.us 
The amendment is proposed under the Texas Agriculture Code, Chapter 161, 
Subchapter C, sec.sec.161.061 and 161.046 which authorize the Commission to 
enact rules to eradicate communicable disease, and Chapter 163, Subchapter D, 
sec.163.038 which authorizes the Commission to issue indemnity payments.

sec.35.6.Indemnity Payments to Owners of Cattle <nl> Infected With or Exposed to 
Brucellosis <ol>
(a) (No change.)
(b) Criteria for selection of herds for indemnity payment:
[(1) at least 10% of the cattle tested on the initial herd test must have been 
classified as reactors; or] 
<nl>(1)<ol> [(2)] the herd must have<nl> a professional diagnosis, supported by 
culture or significant serology and compatible history<ol> [had two consecutive 
herd tests on which reactors were disclosed]; or 
<nl>(2)<ol> [(3])a herd not meeting paragraph
(1) [or (2)] of this subsection is recommended for indemnity by the state 
epidemiologist; 
<nl>(3)<ol> [(4)] all selections of herds <nl> or cattle for payment of 
indemnity are subject to availability of funds. <ol>
(c) General Requirements 
(1) The commission, through its executive director, will determine the amount 
and number of animals for which indemnity will be paid. The owner of a herd 
selected for indemnity may be reimbursed from TAHC funds for depopulation <nl> 
as follows<ol> [at a total rate not to exceed]: 
(A) <nl>All negative exposed sexually intact cattle will be appraised based upon 
market value by a professional appraiser selected by TAHC at TAHC expense<ol> 
[$100 per head for not more than 100 negative exposed sexually intact females 18 
months of age and older and not more than five negative exposed bulls 18 months 
of age and older]; and 
(B) <nl>No payment will exceed the appraised value of the cattle as disclosed by 
the TAHC appraiser<ol> [Actual cost of spaying not to exceed $10 per head. A 
spaying certificate and the proof of payment for cost of spaying must be 
submitted simultaneously with the indemnity claim]
(2) <nl>Depopulation funds may be paid for all calves at a rate of up to 
$400.00, or appraised market value, minus salvage<ol> [Depopulation funds shall 
not be paid for steers and spayed heifers].
[(3) All bull calves shall be castrated.]
<nl>(3)<ol> [(4)]To receive TAHC indemnity funds, all sexually intact cattle for 
depopulation must be removed from the premise within 45 days after the offer for 
indemnity payment is made to the herd owner. The offer date will be documented 
on the form TAHC 93-14. 
<nl>(4)<ol> [(5)] Depopulated cattle shall be branded with the letter "B" high 
on the left hip near the tailhead and identified with a reactor eartag within 
the specified time intervals according to state/federal requirements and prior 
to movement from the premise. 
<nl>(5)<ol> [(6)]Cattle shall be moved from the premise accompanied with a VS 1-
27. They shall either be moved directly to slaughter or through an approved 
livestock market for sale directly to slaughter and accompanied with a VS 1-27 
from the market. In either case, the cattle shall be slaughtered within the 
specified time intervals according to state/federal regulations following 
identification. Steers and spayed heifers may be retained on the premise or move 
without restrictions. 
<nl>(6)<ol> [(7)]The owner of a herd approved for depopulation must agree to 
complete a herd test of eligible animals no later than six months after 
repopulation with test-eligible breeding replacements.
<nl>(7)<ol> [(8)]The owner of a herd approved for depopulation must agree to 
complete a herd test of eligible animals in units not depopulated six to 12 
months after depopulation. 
(d) If approved by the state epidemiologist, an owner may be paid $200 per B. 
abortus Strain 19 reactor, not to exceed the greater of five head or 5.0% of the 
herd.
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. 
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800807
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 719-0714

CHAPTER 49.Equine
4 TAC sec.49.1
The Texas Animal Health Commission proposes an amendment to sec.49.1, concerning 
Equine Infectious Anemia: Identification and Handling of Infected Equine. The 
proposed amendment would allow the movement of a reactor equine directly to a 
livestock market, if sold for slaughter, provided that the animal is inspected 
and found to display no clinical signs of EIA, as well as, isolated from the 
other equine and held on the premise no longer than 24 hours. The amendment also 
deletes the exemption of auction markets to require a negative EIA test prior to 
entry. 
Ms. Suzy Beightler Whittenton, Assistant Executive Director for Administration, 
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. The agency has made a categorical statement 
that this rule relates to the handling of animals and does not affect private 
real property rights. 
Terry L. Beals, DVM, Executive Director, 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 to allow a more fair market price for 
reactor equine and to more effectively control EIA by ensuring that equine 
owners may bring equine to a public auction and buy equine at a public auction 
without the fear of an unknown test status on the equine. 
Comments regarding this proposed amendment or requests for a public hearing 
should be directed to Ms. Tiffany N. Norvell, P.O. Box 12966, Austin, Texas 
78711-2966; or by Email: tiffanyn@tahc.state.tx.us
The amendment is proposed under the Texas Agriculture Code, Chapter 161, 
Subchapter C, sec.161.041 and sec.161.046 which authorize the Commission to 
enact rules to eradicate equine infectious anemia, including rules regarding 
testing; and Subchapter G, sec.161.112 which authorizes the Commission to 
regulate the movement of animals from livestock markets and to require tests. 

sec.49.1.Equine Infectious Anemia (EIA): Identification and Handling of Infected 
Equine.
(a)-(g) (No change.) 
(h) Movement of Reactors and Exposed Equine. 
(1) Reactor equine. Following official identification, a reactor must be 
accompanied by a VS Form 1-27 permit issued by an accredited veterinarian or 
other authorized state or federal personnel when moved from its home premises 
either: 
(A) Directly to a slaughter plant, slaughter-only market, or slaughter-only 
buying facility; or 
(B) Directly to an approved diagnostic or research facility<nl>; or <ol>
<nl>(C)<ol> <nl>Directly to a livestock market to be sold for slaughter, 
provided that within 24 hours prior to entry, the equine is inspected by a TAHC 
veterinarian or a Texas USDA-accredited veterinarian to ensure the equine 
displays no clinical signs of EIA and has a normal temperature. The auction 
market must isolate the positive equine from other equine, pen the positive 
equine under a roof, and hold the positive equine on the premise for no longer 
than 24 hours. <ol>
(2) (No change.) 
(i)-(k) (No change.) 
(l) Requirements for Change of Ownership. A negative EIA test within the 
previous 12 months is required for all equine changing ownership in Texas, 
including horses moving to slaughter [, provided an equine may sell at public 
auction without proof of a negative test:] 
[(1) if the animal is sold to slaughter, to be tested at the slaughter facility 
at Commission expense; or] 
[(2) if the animal is sold to other than slaughter, the auction market:] 
[(A) marks the buyer's sheet with a stamp provided by the Commission that has 
the following statement: "To the best of our knowledge, this horse(s) has not 
been tested for EIA and is being sold as is", and]
[(B) provides the buyer with an educational pamphlet supplied by the 
Commission.] 
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.
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800809
Terry Beals, DVM
Executive Director
Texas Animal Health Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 719-0714

TITLE 16. ECONOMIC REGULATION
PART II. Public Utility Commission of Texas
CHAPTER 23.Substantive Rules
General Rules
16 TAC sec.sec.23.1, 23.2, 23.4
(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 Public Utility 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Public Utility Commission of Texas (PUC) proposes the repeal of sec.23.1, 
relating to Purpose and Scope of Rules; sec.23.2, relating to Severability 
Clause; and sec.23.4, relating to Statement of Nondiscrimination. Project Number 
17709 has been assigned to the proposed repeal of sec.sec.23.1, 23.2, and 
sec.23.4. The Appropriation Act of 1997, House Bill 1, Article IX, Section 167 
(Section 167) requires that each state agency review and consider for readoption 
each rule adopted by that agency pursuant to the Government Code, Chapter 2001 
(Administrative Procedures Act). Such reviews shall include, at a minimum, an 
assessment by the agency as to whether the reason for adopting or readopting the 
rule continues to exist. The PUC held three workshops to conduct a preliminary 
review of its rules. As a result of these workshops, the PUC is reorganizing its 
current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 
23 to (1) satisfy the requirements of Section 167; (2) repeal rules no longer 
needed; (3) update existing rules to reflect changes in the industries regulated 
by the commission; (4) do clean-up amendments made necessary by changes in law 
and commission organizational structure and practices; (5) reorganize rules into 
new chapters to facilitate future amendments and provide room for expansion; and 
(6) reorganize the rules according to the industry to which they apply. As a 
result of this reorganization, sec.sec.23.1, 23.2, and 23.4 will be duplicative 
of proposed new sections in Chapter 25 of this title (relating to Substantive 
Rules Applicable to Electric Service Providers) and Chapter 26 of this title 
(relating to Substantive Rules Applicable to Telecommunications Service 
Providers). 
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that 
for each year of the first five-year period these repeals are in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the repeals. 
Ms. Mueller also has determined that for each year of the first five years the 
repeals are in effect, the public benefit anticipated as a result of the repeals 
will be the elimination of unnecessary rules. There will be no effect on small 
businesses as result of repealing these sections. There is no anticipated 
economic cost to persons as a result of repealing these sections. Ms. Mueller 
also has determined that for each year of the first five years the repeals are 
in effect there will be no impact on employment in the geographical area 
affected by the repeal of these sections. 
Comments on the proposed repeals (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711- 3326, within 30 days after publication. All comments 
should refer to Project Number 17709. 
These repeals are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the 
Public Utility Commission with the authority to make and enforce rules 
reasonably required in the exercise of its powers and jurisdiction.
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002.
sec.23.1. Purpose and Scope of Rules.
sec.23.2. Severability Clause.
sec.23.4. Statement of Nondiscrimination.
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. 
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800819
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308

Telephone
16 TAC sec.23.98
The Public Utility Commission of Texas (PUC) proposes an amendment to sec.23.98, 
relating to Abbreviated Dialing Codes. The proposed amendment will reserve 711 
for Telecommunications Relay Services and allow telecommunications providers to 
provide 311 non-emergency governmental services pursuant to the First Report and 
Order in 12 FCC Rcd. 5572, CC Docket Number 92-105, FCC 97-51, In the Matter of 
the Use of N11 Codes and Other Abbreviated Dialing Arrangements. Project Number 
17264 has been assigned to this proposed amendment. 
Ms. Janis Ervin, senior utilities analyst, Office of Regulatory Affairs-
Telecommunications Division, has determined that for each year of the first 
five-year period the proposed section is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section. Mr. Eric White, assistant general counsel, Office of 
Regulatory Affairs-Legal Division has determined that for each year of the first 
five years the proposed section is in effect the public benefit anticipated as a 
result of enforcing the section will be to alleviate the burden on the 911 
system due to non-emergency calls. The effect will be to allow the 911 system to 
focus more of its resources on emergency calls. There will be no effect on small 
businesses as result of enforcing this section. There is no anticipated economic 
cost to persons who are required to comply with the section as proposed. 
Mr. White has also determined that for each year of the first five years the 
proposed section is in effect there will be no impact on employment in the 
geographical area affected by implementing the requirements of the section.
Comments on the proposed amendment (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. All comments 
should refer to Project Number 17264. A public hearing on this rulemaking will 
be held at the offices of the PUC at 10:00 a.m. on March 2, 1998. 
This amendment is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated, sec.14.002 (PURA), which provides the Public Utility 
Commission with the authority to make and enforce rules reasonably required in 
the exercise of its powers and jurisdiction, and specifically sec.52.001, which 
authorizes the Public Utility Commission to formulate and apply rules to protect 
the public interest due to federal administrative actions. 
Cross Index to Statutes: Public Utility Regulatory Act, sec.14.002 and 
sec.52.001. 

sec.23.98. Abbreviated Dialing Codes.
(a) The following abbreviated dialing codes may be used in Texas: 
<nl>(1)<ol> 311 - Non-Emergency Governmental Service; 
<nl>(2)<ol> [(1)] 411: 
(A) Directory Assistance; <nl>and<ol> 
(B) Directory Assistance Call Completion; 
<nl>(3)<ol> [(2)] 611 -- Repair Service;
<nl>(4)<ol> 711 -- Telecommunications Relay Service; 
<nl>(5)<ol> [(3)] 811 -- Business Office; <nl>and<ol> 
<nl>(6)<ol> [(4)] 911 -- Emergency service. 
(b) The following N11 dialing codes are not assigned for use in Texas: 
(1) 211; <nl>and<ol> 
[(2) 311;] 
<nl>(2)<ol> [(3)] 511[;] 
[(4) 711]. 
(c)-(d) (No change.) 
(e) The following limitations apply to a CTU's use of N11 dialing codes for 
internal business and testing purposes: 
(1) use may not interfere with the assignment of such numbers by the FCC and the 
<nl>North American Numbering Plan (NANP)<ol> [NANP]; and 
(2) (No change.) 
<nl>(f)<ol> 311 Service. 
<nl>(1)<ol> Scope and Purpose. This subsection applies to the assignment and 
provision of 311 service. Through this subsection, the commission strives to 
strengthen the 911 system by potentially alleviating congestion on the 911 
system through the establishment of a framework for governmental entities to 
implement a 311 system for non-emergency police and other governmental services. 
<nl>(2)<ol> Definitions. The following words and terms, when used in this 
subsection, shall have the following meanings, unless the context clearly 
indicates otherwise. 
<nl>(A)<ol> "Certificated telecommunications utility" has the meaning assigned 
by sec.23.3 of this title (relating to Definitions).
<nl>(B)<ol> "Governmental entity" means any county, municipality, emergency 
communication district, regional planning commission, appraisal district, or any 
other subdivision or district that provides, participates in the provision of, 
or has authority to provide fire- fighting, law enforcement, ambulance, medical, 
911, or other emergency service as defined in Texas Health & Safety Code 
sec.771.001 (1997). 
<nl>(C)<ol> "911 system" means a system of processing emergency 911 calls, as 
defined in Texas Health & Safety Code sec.771.001 (1997) . 
<nl>(D)<ol> "Selective routing" means the feature provided with 311 service by 
which 311 calls are automatically routed to the 311 Answering point for serving 
the place from which the call originates. 
<nl>(E)<ol> "311 Answering point" means a communications facility that: 
<nl>(i)<ol> is operated during normal business hours; 
<nl>(ii)<ol> is assigned the responsibility to receive 311 calls and, as 
appropriate, to dispatch the non-emergency police or other governmental 
services, or to transfer or relay 311 calls to the governmental entity; 
<nl>(iii)<ol> is the first point of reception by a governmental entity of a 311 
call; and 
<nl>(iv)<ol> serves the jurisdictions in which it is located or other 
participating jurisdictions. 
<nl>(F)<ol> "311 Service" means a telecommunications service provided by a 
certificated telecommunications provider through which the end user of a public 
telephone system has the ability to reach non- emergency police and other 
governmental services by dialing the digits 3-1-1. 311 Service must contain the 
selective routing feature or other equivalent state-of-the-art feature. 
<nl>(G)<ol> "311 Service request" means the initial communication between a 
governmental entity and a certificated telecommunications utility for the 
provision of 311 Service. 
<nl>(H)<ol> "311 System" means a system of processing 311 calls. 
<nl>(3)<ol> A certificated telecommunications utility must have a commission- 
approved application to provide 311 Service.
<nl>(4)<ol> Requirements of application by certificated telecommunications 
utility. 
<nl>(A)<ol> Applications, tariffs, and notices filed under this subsection shall 
be written in plain language, shall contain sufficient detail to give customers, 
governmental entities, and other affected parties adequate notice of the filing, 
and shall conform to the requirements of sec.23.26 of this title (relating to 
New & Experimental Services) or sec.23.27 of this title (relating to Rate-
Setting Flexibility for Services Subject to Significant Competitive Challenges), 
whichever is applicable. 
<nl>(B)<ol> A copy of the text of the proposed notice to notify the public of 
the request for 311 Service and the filing of an application for regulatory 
approval of the certificated telecommunications utility's provision of 311 
service. 
<nl>(C)<ol> No application for 311 Service allowing the governmental entity to 
charge its citizens a fee for using the 311 system shall be approved. 
<nl>(5)<ol> Notice. The presiding officer shall determine the appropriate level 
of notice to be provided and may require additional notice to the public. 
<nl>(A)<ol> The certificated telecommunications utility shall file with the 
commission a copy of the text of the proposed notice to notify the public of the 
request for 311 Service and the filing of an application for regulatory approval 
of the certificated telecommunications utility's provision of 311 service. This 
copy of the proposed notice shall be filed with the commission not later than 10 
days after the certificated telecommunications utility receives the 311 Service 
Request; and 
<nl>(B)<ol> The proposed notice shall include the identity of the governmental 
entity, the geographic area to be affected if the new 311 Service is approved, 
and the following language: "Persons who wish to comment on this application 
should notify the commission by (specified date, 30 days after notice is 
published in the Texas Register). Requests for further information should be 
mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 
78711-3326, or you may call the Public Utility Commission's Office of Customer 
Protection at (512) 936-7120. Hearing- and speech-impaired individuals with text 
telephones (TTY) may contact the commission at (512) 936-7136." 
<nl>(6)<ol> A certificated telecommunications utility will provide 311 Service 
only to governmental entities. 
<nl>(7)<ol> A 311 Service request is the request that starts the six-month 
deadline to "take any necessary steps to complete 311 calls" as required by the 
Federal Communications Commission's Order In the Matter of the Use of N11 Codes 
and Other Abbreviated Dialing Arrangements, CC Docket Number 92-105, FCC 97-51, 
12 F.C.C.R. 5572 (February 19, 1997).
<nl>(8)<ol> 311 calls shall not be completed over the 9-1-1 network or use the 
9-1- 1 database. 
<nl>(9)<ol> The 311 network shall not be used for commercial advertisements. 
<nl>(10)<ol> When a certificated telecommunications utility uses Automatic 
Number Identification (ANI) Service, Automatic Location Identification (ALI) 
Service or other equivalent information-gathering feature for the provision of 
311 Service, a corresponding seven-digit number without that feature must be 
maintained allowing access to the same non-emergency police and governmental 
services offered by the 311 Service. 
<nl>(11)<ol> The commission shall have the authority to limit the use of 311 
abbreviated dialing codes to applications that are found to be in the public 
interest. 
<nl>(12)<ol> The commission shall have the authority to decide which 
governmental entity shall provide 311 Service when there are conflicting 
requests for concurrent 311 Service for the same geographic area, to the extent 
that negotiations between or among the affected governmental entities fail. The 
commission shall consider the following factors in determining conflicting 
requests for 311 Service: 
<nl>(A)<ol> the nature of the service(s) to be provided by the governmental 
entity; and 
<nl>(B)<ol> the potential magnitude of use of the requested 311 Service (i.e., 
the number of residents served by the governmental entity).
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.
Filed with the Office of the Secretary of State on January 16, 1998.
TRD-9800722
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308

CHAPTER 25.Substantive Rules Applicable to Electric Service Providers
SUBCHAPTER A.General Provisions
16 TAC sec.sec.25.1, 25.2, 25.3, 25.4
The Public Utility Commission of Texas (PUC) proposes new sec.25.1, relating to 
Purpose and Scope of Rules; sec.25.2, relating to Cross-Reference Transition 
Provision; sec.25.3, relating to Severability Clause; and sec.25.4, relating to 
Statement of Nondiscrimination. Project Number 17709 has been assigned to these 
proposed new rules. The Appropriation Act of 1997, HB 1, Article IX, Section 167 
(Section 167) requires that each state agency review and consider for readoption 
each rule adopted by that agency pursuant to the Government Code, Chapter 2001 
(Administrative Procedure Act). Such reviews shall include, at a minimum, an 
assessment by the agency as to whether the reason for adopting or readopting the 
rule continues to exist. The PUC held three workshops to conduct a preliminary 
review of its rules. As a result of these workshops, the PUC is reorganizing its 
current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 
23 to (1) satisfy the requirements of Section 167; (2) repeal rules no longer 
needed; (3) update existing rules to reflect changes in the industries regulated 
by the commission; (4) do clean-up amendments made necessary by changes in law 
and commission organizational structure and practices; (5) reorganize rules into 
new chapters to facilitate future amendments and provide room for expansion; and 
(6) reorganize the rules according to the industry to which they apply. 16 TAC 
Chapter 25 has been established for all commission substantive rules applicable 
to electric service providers. The duplicative sections of Chapter 23 will be 
proposed for repeal as each new section is proposed for publication in Chapter 
25. 
New rule sec.25.1 will replace corresponding sec.23.1 of this title (relating to 
Purpose and Scope of Rules). The proposed language in sec.25.1 has been changed 
to reflect the commission's mission statement and primary goals from its 
strategic plan. 
Many of the commission's current rules cross-reference other rule sections. 
Proposed new rule sec.25.2 is to clarify that during this transition phase, if a 
rule section cross-references another section of the rules in Chapter 23 that 
has been repealed due to the transition to the new chapters, then that cross-
reference now refers to the corresponding section in the new chapter.
New rule sec.25.3 will replace corresponding sec.23.2 of this title (relating to 
Severability Clause). The proposed language in sec.25.3 reflects minor changes 
in sentence structure. 
New rule sec.25.4 will replace corresponding sec.23.4 of this title (relating to 
Statement of Nondiscrimination). The language in sec.25.4 has not been changed 
from the language in sec.23.4. 
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that 
for each year of the first five-year period the proposed section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering the section. 
Ms. Mueller also has determined that for each year of the first five years the 
proposed section is in effect the public benefit anticipated as a result of 
enforcing the sections will be clarification of the purpose, scope, mission and 
policy of the commission and its rules. There will be no effect on small 
businesses as result of enforcing this section. There is no anticipated economic 
cost to persons who are required to comply with the sections as proposed. Ms. 
Mueller also has determined that for each year of the first five years the 
proposed section is in effect there will be no impact on employment in the 
geographical area affected by implementing the requirements of the section.
Comments on the proposed new rules (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. The 
commission invites specific comments regarding whether the reason for adopting 
the rules in Chapter 23 continues to exist in adopting its corresponding section 
in the new chapter. All comments should refer to Project Number 17709.
These new rules are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 (PURA), which provides the Public Utility 
Commission with the authority to make and enforce rules reasonably required in 
the exercise of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002. 

sec.25.1. Purpose and Scope of Rules.
(a) Mission of the Public Utility Commission of Texas (PUC). The mission of the 
PUC is to assure the availability of safe, reliable, high quality services that 
meet the needs of all Texans as just and reasonable rates. To accomplish this 
mission, the PUC shall regulate electric and telecommunications utilities as 
required while facilitating competition, operation of the free market, and 
customer choice. 
(b) This chapter is intended to establish a comprehensive system to accomplish 
the mission of the PUC and to establish the rights and responsibilities of both 
the utility service providers and the consumer. This chapter shall be given a 
fair and impartial construction to obtain these objectives and shall be applied 
uniformly regardless of race, nationality, color, religion, sex, or marital 
status. 

sec.25.2. Cross-Reference Transition Provision. 
A reference in a rule section or part of a section of Chapter 22 of this title 
(relating to Procedural Rules); Chapter 23 of this title (relating to 
Substantive Rules); Chapter 24 of this title (relating to Policy Statements); 
Chapter 25 of this title (relating to Substantive Rules Applicable to Electric 
Service Providers); or Chapter 26 of this title (relating to Substantive Rules 
Applicable to Telecommunications Service Providers) to another section or part 
of a section of Chapter 23 that was repealed after January 1, 1998, refers to 
the corresponding section in Chapter 25 or Chapter 26 that replaced the Chapter 
23 section. 

sec.25.3. Severability Clause. 
The adoption of this chapter will in no way preclude the Public Utility 
Commission of Texas from altering or amending any sections of this chapter in 
whole or in part, or from requiring any other or additional service, equipment, 
facility, or standard, either upon complaint or upon its own motion or upon 
application of any utility. Furthermore, this chapter will not relieve in any 
way a utility or customer from any of its duties under the laws of this state or 
the United States. If any provision of this chapter is held invalid, such 
invalidity shall not affect other provisions or applications of this chapter 
which can be given effect without the invalid provision or application, and to 
this end, the provisions of this chapter are declared to be severable. This 
chapter shall not be construed so as to enlarge, diminish, modify, or alter the 
jurisdiction, powers, or authority of the commission or the substantive rights 
of any person. The commission may make exceptions to this chapter for good 
cause. 

sec.25.4. Statement of Nondiscrimination. 
No utility shall discriminate on the basis of race, nationality, color, 
religion, sex, or marital status. 
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.
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800821
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308

CHAPTER 26.Substantive Rules Applicable to Telecommunications Service Providers
SUBCHAPTER A.General Provisions
16 TAC sec.sec.26.1, 26.2, 26.3, 26.4
The Public Utility Commission of Texas (PUC) proposes new sec.26.1, relating to 
Purpose and Scope of Rules; sec.26.2, relating to Cross-Reference Transition 
Provision; sec.26.3, relating to Severability Clause; and sec.26.4, relating to 
Statement of Nondiscrimination. Project Number 17709 has been assigned to these 
proposed new rules. The Appropriation Act of 1997, HB 1, Article IX, Section 167 
(Section 167) requires that each state agency review and consider for readoption 
each rule adopted by that agency pursuant to the Government Code, Chapter 2001 
(Administrative Procedure Act). Such reviews shall include, at a minimum, an 
assessment by the agency as to whether the reason for adopting or readopting the 
rule continues to exist. The PUC held three workshops to conduct a preliminary 
review of its rules. As a result of these workshops, the PUC is reorganizing its 
currentsubstantive rules located in 16 Texas Administrative Code (TAC) Chapter 
23to (1) satisfy the requirements of Section 167; (2) repeal rules no longer 
needed; (3) update existing rules to reflect changes in the industries regulated 
by the commission; (4) do clean-up amendments made necessary by changes in law 
and commission organizational structure and practices; (5) reorganize rules into 
new chapters to facilitate future amendments and provide room for expansion; and 
(6) reorganize the rules according to the industry to which they apply. 16 TAC 
Chapter 26 has been established for all commission substantive rules applicable 
to telecommunications service providers. The duplicative sections of Chapter 23 
will be proposed for repeal as each new section is proposed for publication in 
Chapter 26. 
New rule sec.26.1 will replace corresponding sec.23.1 of this title (relating to 
Purpose and Scope of Rules). The proposed language in sec.26.1 has been changed 
to reflect the commission's mission statement and primary goals from its 
strategic plan. 
Many of the commission's current rules cross-reference other rule sections. 
Proposed new rule sec.26.2 is to clarify that during this transition phase, if a 
rule section cross-references another section of the rules in Chapter 23 that 
has been repealed due to the transition to the new chapters, then that cross-
reference now refers to the corresponding section in the new chapter.
New rule sec.26.3 will replace corresponding sec.23.2 of this title (relating to 
Severability Clause). The proposed language in sec.26.3 reflects minor changes 
in sentence structure. 
New rule sec.26.4 will replace corresponding sec.23.4 of this title (relating to 
Statement of Nondiscrimination). The language in sec.26.4 has not been changed 
from the language in sec.23.4. 
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that 
for each year of the first five-year period the proposed section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering the section. 
Ms. Mueller also has determined that for each year of the first five years the 
proposed section is in effect the public benefit anticipated as a result of 
enforcing the sections will be clarification of the purpose, scope, mission and 
policy of the commission and its rules. There will be no effect on small 
businesses as result of enforcing this section. There is no anticipated economic 
cost to persons who are required to comply with the sections as proposed. Ms. 
Mueller also has determined that for each year of the first five years the 
proposed section is in effect there will be no impact on employment in the 
geographical area affected by implementing the requirements of the section.
Comments on the proposed new rules (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. The 
commission invites specific comments regarding whether the reason for adopting 
the rules in Chapter 23 continues to exist in adopting its corresponding section 
in the new chapter. All comments should refer to Project Number 17709.
These new rules are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 (PURA), which provides the Public Utility 
Commission with the authority to make and enforce rules reasonably required in 
the exercise of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002. 

sec.26.1. Purpose and Scope of Rules.
(a) Mission of the Public Utility Commission of Texas (PUC). The mission of the 
PUC is to assure the availability of safe, reliable, high quality services that 
meet the needs of all Texans as just and reasonable rates. To accomplish this 
mission, the PUC shall regulate electric and telecommunications utilities as 
required while facilitating competition, operation of the free market, and 
customer choice. 
(b) This chapter is intended to establish a comprehensive system to accomplish 
the mission of the PUC and to establish the rights and responsibilities of both 
the utility service providers and the consumer. This chapter shall be given a 
fair and impartial construction to obtain these objectives and shall be applied 
uniformly regardless of race, nationality, color, religion, sex, or marital 
status.

sec.26.2.Cross-Reference Transition Provision. 
A reference in a rule section or part of a section of Chapter 22 of this title 
(relating to Procedural Rules); Chapter 23 of this title (relating to 
Substantive Rules); Chapter 24 of this title (relating to Policy Statements); 
Chapter 25 of this title (relating to Substantive Rules Applicable to Electric 
Service Providers); or Chapter 26 of this title (relating to Substantive Rules 
Applicable to Telecommunications Service Providers) to another section or part 
of a section of Chapter 23 that was repealed after January 1, 1998, refers to 
the corresponding section in Chapter 25 or Chapter 26 that replaced the Chapter 
23 section.

sec.26.3. Severability Clause.
The adoption of this chapter will in no way preclude the Public Utility 
Commission of Texas from altering or amending any sections of this chapter in 
whole or in part, or from requiring any other or additional service, equipment, 
facility, or standard, either upon complaint or upon its own motion or upon 
application of any utility. Furthermore, this chapter will not relieve in any 
way a utility or customer from any of its duties under the laws of this state or 
the United States. If any provision of this chapter is held invalid, such 
invalidity shall not affect other provisions or applications of this chapter 
which can be given effect without the invalid provision or application, and to 
this end, the provisions of this chapter are declared to be severable. This 
chapter shall not be construed so as to enlarge, diminish, modify, or alter the 
jurisdiction, powers, or authority of the commission or the substantive rights 
of any person. The commission may make exceptions to this chapter for good 
cause. 

sec.26.4. Statement of Nondiscrimination.
No utility shall discriminate on the basis of race, nationality, color, 
religion, sex, or marital status. 
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.
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800822
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 936-7308

PART VI. Texas Motor Vehicle Board
CHAPTER 105. Advertising Rules
16 TAC sec.105.25, sec.105.26
The Texas Motor Vehicle Board proposes an amendment to sec.105.25, concerning 
sales payment disclosures, and simultaneous repeal and proposal of new 
sec.105.26, concerning lease payment disclosures. 
The proposed changes to sec.105.25 amend subsection (5) to clarify the required 
disclosures for the terms of repayment and the annual percentage rate, with 
regard to advertising closed-end credit transactions. 
New sec.105.26 conforms to revised Federal Reserve Board Regulation M (12 CFR 
Part 213) which implements the Consumer Leasing Act (15 U.S.C. 1667-1667e).
The revised Regulation M became effective April 1, 1997 with a mandatory 
compliance date of January 1, 1998. The proposed section establishes new 
disclosure requirements for lease contracts, and revises and streamlines lease 
advertising rules. 
Brett Bray, Director, Motor Vehicle Division has determined that for the first 
five-year period the amendments and new section are in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the amendments. 
Mr. Bray also has determined that for the first five-year period the amendments 
and new section are in effect the public benefit anticipated as a result of the 
proposed amendment to sec.105.25 will be to better educate the motor vehicle 
buying public and to more readily allow consumers to compare financing terms. In 
addition, Mr. Bray has determined that the public benefit anticipated as a 
result of new sec.105.26 will be to help consumers shop and compare lease terms 
and conform to federal law governing lease payment disclosures. There will be no 
effect on small businesses and no anticipated additional economic cost to 
persons who are required to comply with the amendments as proposed. 
Comments on the proposal may be submitted to Brett Bray, Director, Motor Vehicle 
Division, Texas Department of Transportation, P. O. Box 2293, Austin, Texas 
78768, (512) 416-4800. The Motor Vehicle Board will consider adoption of the 
proposed amendments and new section at its meeting on March 5, 1998. Comments 
received by February 15, 1998 will be forwarded to the Board two weeks prior to 
hearing. Comments received by March 2, 1998 will be forwarded to the Board the 
next day. A public hearing on the proposed rules will be held in conjunction 
with the Board's public meeting on March 5, 1998. 
The amendments are proposed under the Texas Motor Vehicle Commission Code, 
sec.3.06, which provides the Board with authority to adopt rules necessary and 
convenient to effectuate the provisions of the act and to govern practice and 
procedure before the agency. 
Motor Vehicle Commission Code, sec.5.01 is affected by the proposed amendment.

sec.105.25. Sales Payment Disclosures. 
[The commission is adopting the Federal Trade commission closed end credit 
disclosure rules which presently read as follows]. An advertisement that 
contains any one of the following messages, statements, or terms: 
(1)-(4) (No change.) 
(5) the amount of any finance charge must include the following: 
(A) (No change.) 
(B) the terms of repayment (the number of months to make repayment and the 
amount per month) <nl>including the amount and due date of any balloon 
payment;<ol> [and] 
(C) the annual percentage rate or APR<nl>; and<ol> 
<nl>(D)<ol> the amount of annual percentage rate, if increased, after 
consummation of the credit transaction. 

sec.105.26. Payment Disclosure - Lease.
(a) An advertisement that promotes a consumer lease and contains any of the 
following messages, statements, or terms: 
(1) the amount of any payment; or 
(2) a statement of any capitalized cost reduction or other payment required 
prior to or by delivery, if delivery occurs after consummation, must clearly and 
conspicuously include the following: 
(A) that the transaction advertised is a lease; 
(B) the total amount due prior to or at consummation or by delivery, if delivery 
occurs after consummation; 
(C) the number, amounts, and due dates or periods of scheduled payments under 
the lease; 
(D) a statement of whether or not a security deposit is required; and 
(E) a statement that an extra charge may be imposed at the end of the lease term 
where the lessee's liability, if any, is based on the difference between the 
residual value of the leased property and its realized value at the end of the 
lease term. 
(b) Except for a periodic payment, a reference to a charge as described in 
subsection (a)(2)(B), i.e., to components of the total due at lease signing or 
delivery, cannot be more prominently advertised than the disclosure of the total 
amount due at lease signing or delivery. 
(c) If a percentage rate is advertised, that rate shall not be more prominent 
than any of the following disclosures stated in the advertisement, with the 
exception of paragraph (19) of this subsection, the notice required to accompany 
the rate. 
(1) Description of payments. 
(2) Amount due at lease signing or delivery. 
(3) Payment schedule and total amount of periodic payments.
(4) Other itemized charges that are not included in the periodic payment. These 
charges include that amount of any liability that lease imposes upon the lessee 
at the end of the lease term. 
(5) Total of payments. 
(6) Payment calculation: 
(A) Gross capitalized cost. 
(B) Capitalized cost reduction. 
(C) Adjusted capitalized cost. 
(D) Residual value. 
(E) Depreciation and any amortized amounts. 
(F) Rent charge. 
(G) Total of base periodic payments. 
(H) Lease term. 
(I) Base periodic payment. 
(J) Itemization of other charges that are a part of the periodic payment. 
(K) Total periodic payment. 
(7) Early termination conditions and disclosure of charges. 
(8) Maintenance responsibilities. 
(9) Purchase option. 
(10) Statement referencing nonsegregated disclosures.
(11) Liability between residual and realized values.
(12) Right of appraisal. 
(13) Liability at the end of the lease term based on residual value. 
(14) Fees and taxes. 
(15) Insurance. 
(16) Warranties or guarantees. 
(17) Penalties and other charges for delinquency. 
(18) Security interest. 
(19) Limitations on rate information. 
(d) If a lessor provides a percentage rate in an advertisement, a notice stating 
that "this percentage may not measure the overall cost of financing this lease" 
shall accompany the rate disclosure. The lessor shall not use the term "annual 
percentage rate," "annual lease rate," or any equivalent term. 
(e) A multi-page advertisement that provides a table or schedule of the required 
disclosures is considered a single advertisement if, for lease terms that appear 
without all of the required disclosures, the advertisement refers to the page or 
pages on which the table or schedule appears. 
(f) A merchandise tag stating any item listed in subsection (a)(1) or (2) of 
this section, must comply with the disclosures in subsection (a)(2)(A)-(E) of 
this section by referring to a sign or display prominently posted in the 
lessor's place of business that contains a table or schedule of the required 
disclosures. 
(g) An advertisement made through television or radio stating any item listed in 
subsection (a)(1) or (2), must state in the advertisement:
(1) that the transaction advertised is a lease; 
(2) the total amount due prior to or at consummation or by delivery, if delivery 
occurs after consummation; 
(3) the number, amounts, and due dates or periods of scheduled payments under 
the lease; and 
(4) Either: 
(A) a toll-free telephone number along with a reference that such number may be 
used by consumers to obtain the information in subsection (a)(2)(A)-(E) of this 
section. The toll-free telephone number shall be available for no fewer than ten 
days, beginning on the date of the broadcast and the lessor shall provide the 
information in subsection (a)(2)(A)-(E) of this section orally or in writing 
upon request; or, 
(B) direct the consumer to a written advertisement in a publication of general 
circulation in the community served by the media station, including the name and 
the date of the publication, with a statement that the required disclosures in 
subsection (a)(2)(A)-(E) of this section are included in the advertisement. The 
written advertisement shall be published beginning at least three days before 
and ending at least 10 days after the broadcast. 
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.
Filed with the Office of the Secretary of State on January 16, 1998.
TRD-9800726
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: March 5, 1998
For further information, please call: (512) 463-8630

16 TAC sec.105.26
(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 Motor 
Vehicle Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Texas Motor Vehicle Commission proposes the repeal of sec.105.26, concerning 
lease payment disclosures. 
Existing sec.105.26 is proposed to be repealed and by a separate simultaneous 
submission, new sec.105.26 is proposed to be adopted to conform the rule to 
revised Federal Reserve Board Regulation M (12 CFR Part 213) which implements 
the Consumer Leasing Act. 
Brett Bray, Director, Motor Vehicle Division, has determined that for the first 
five-year period the repeal of the section is in effect there will be no fiscal 
implications for state or local government as a result of the repeal of the 
section. 
Mr. Bray also has determined that for the first five-year period the repeal is 
in effect the public benefit anticipated is the removal of an inconsistency and 
a conflict with provisions of federal law governing lease payment disclosures. 
There will be no effect on small businesses and no anticipated economic costs to 
any person as a result of the repeal. 
Comments on the proposal may be submitted to Brett Bray, Director, Motor Vehicle 
Division, Texas Department of Transportation, P.O. Box 2293, Austin, Texas 
78768, (512) 416-4800. 
The repeal is proposed under sec.3.06 of the Texas Motor Vehicle Commission Code 
which provides the Commission with authority to adopt, amend and repeal rules as 
may be necessary or convenient to effectuate the provision of the act and to 
govern practice and procedure before the agency. 
Motor Vehicle Commission Code, sec.5.01 is affected by the proposed amendment.
sec.105.26. Payment Disclosures-Lease. 
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.
Filed with the Office of the Secretary of State on January 16, 1998.
TRD-9800727
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: March 5, 1998
For further information, please call: (512) 463-8630

PART VIII. Texas Racing Commission
CHAPTER 303.General Provisions
SUBCHAPTER A.Organization of the Commission
16 TAC sec.303.4
The Texas Racing Commission proposes an amendment to sec.303.4, concerning 
Commission meetings. The Texas Racing Act was revised by sunset legislation 
effective September 1, 1997, and in that legislation, the Commission is required 
to adopt rules which provide the public with a reasonable opportunity to appear 
before the Commission and to speak on any issue under the jurisdiction of the 
Commission. In addition, the Commission is required to provide notice to each 
racetrack of each Commission meeting at which rules will be considered. This 
amendment implements those requirements. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the amendment is in effect there 
will be no fiscal implications for local government as a result of enforcing the 
proposal. Ms. Flowerday has also determined for the first five-year period the 
amendment is in effect there will be fiscal implications for state government as 
a result of enforcing the proposal. The Commission estimates the annual cost of 
sending the agenda and summary of rule proposals to all racetracks will be 
approximately $100. 
Ms. Flowerday has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the Commission's rules are consistent with Texas Civil 
Statutes, Article 179e, and that the public has ample notice and opportunity to 
be involved in the Commission's policy making and rulemaking procedures. There 
will be no fiscal implications for small businesses. There is no anticipated 
economic cost to an individual required to comply with the proposal. The 
proposal has no effect on the state's agricultural, horse breeding, horse 
training, greyhound breeding, or greyhound training industries. 
Comments on the proposal may be submitted on or before March 10, 1998, to Paula 
C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 
12080, Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.2.11, which 
requires the Commission to adopt rules providing the public with an opportunity 
to appear before the Commission and address the Commission; and sec.3.02, which 
requires the Commission to post notice of a meeting involving rulemaking at each 
racetrack. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.303.4.Meetings.
(a) Except as otherwise provided by state law, commission [and section] meetings 
are subject to the <nl>Texas open meetings law, Government Code, Chapter 551<ol> 
[Texas Open Meetings Act, Texas Civil Statutes, Article 6252-17]. 
(b)-(f) (No change.) 
<nl>(g)<ol> <nl>Before each regular commission meeting, the executive secretary 
shall distribute the agenda and a summary of each rule scheduled for proposal at 
the meeting to each licensed racetrack, each official breed registry, the 
officially recognized horsemen's organization, and the Texas Veterinary Medical 
Association. An association shall post the agenda and rules in a prominent place 
that will ensure access by interested persons. <ol>
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. 
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800440
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699

CHAPTER 305.Licenses for Pari-mutuel Racing
SUBCHAPTER D.Suspension and Revocation of Licenses
16 TAC sec.305.244
The Texas Racing Commission proposes an amendment to sec.305.244, concerning 
failure to disclose. The Texas Racing Act was revised by sunset legislation 
effective September 1, 1997, and in that legislation, the Commission is 
authorized to revoke, suspend, or deny a racetrack license if the applicant has 
failed to fully disclose the true owners of all interests in the racetrack 
facility. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the proposal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the 
proposal is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the Commission's rules are consistent with the 
applicable state law and that the state's licensed racetracks will be owned and 
operated in accordance with the law. There will be no fiscal implications for 
small businesses. There is no anticipated economic cost to an individual 
required to comply with the proposal. The proposal has no effect on the state's 
agricultural, horse breeding, horse training, greyhound breeding, or greyhound 
training industries. 
Comments on the proposal may be submitted on or before March 10, 1998, to Paula 
C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 
12080, Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.6.06 which 
authorizes the Commission to adopt rules regarding racetrack license 
applications. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.305.244.Failure to Disclose.
The commission may suspend or revoke a license if the commission determines that 
the licensee: 
(1) failed to provide information required in the license application; 
(2) provided false information in the license application; [or] 
(3) failed to disclose an ownership interest in a horse or greyhound as required 
by a rule of the commission<nl>; or<ol> 
<nl>(4)<ol> <nl>failed to fully disclose the true owners of all interests, 
beneficial or otherwise, in a proposed racetrack facility<ol>. 
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.
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800439
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699

CHAPTER 307.Practice and Procedure
SUBCHAPTER D.Rulemaking
16 TAC sec.307.302
The Texas Racing Commission proposes an amendment to sec.307.302, concerning the 
Commission's rulemaking procedure. The Texas Racing Act was revised by sunset 
legislation effective September 1, 1997, and in that legislation, the Commission 
is required to distribute a copy of each proposed rule to each racetrack 
location. This amendment implements that requirement. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the amendment is in effect there 
will be no fiscal implications for local government as a result of enforcing the 
proposal. Ms. Flowerday has also determined for the first five-year period the 
amendment is in effect there will be fiscal implications for state government as 
a result of enforcing the proposal. The Commission estimates the annual cost of 
sending the proposed rules to all racetrack locations will be approximately $45. 
Ms. Flowerday has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the Commission's rules are consistent with applicable 
state law and that the racetracks and occupational licensees will have notice of 
the Commission's rulemaking processes. There will be no fiscal implications for 
small businesses. There is no anticipated economic cost to an individual 
required to comply with the proposal. 
Comments on the proposal may be submitted on or before March 10, 1998, to Paula 
C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 
12080, Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act and which requires the 
posting of proposed rules at each racetrack location. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.307.302.<nl>Rulemaking Procedure <ol>[Amendment, Deletions, and Additions of 
Rules].
(a) <nl>The executive secretary or a commission member may present to the 
commission a suggested new rule, amendment to an existing rule, or repeal of a 
rule.<ol> [A proposed addition, amendment, or repeal to the commission rules may 
be made by a commission member by filing the proposal with the executive 
secretary.] 
(b) The commission staff shall provide a copy of <nl>each suggested new rule, 
amendment to an existing rule, or repeal of a rule<ol> [a proposal made under 
this section] to each commission member before the [next regular or special] 
commission meeting <nl> at which the rule will be considered<ol>. 
<nl>(c)<ol> <nl> If the commission votes to propose a suggested new rule, 
amendment to an existing rule, or repeal of a rule, the executive secretary 
shall file the proposal for publication in the Texas Register in accordance with 
the Administrative Procedure Act, Government Code, Chapter 2001. Concurrently 
with filing with the Texas Register, the executive secretary shall distribute a 
copy of each proposal to each association. On receipt of a proposal, an 
association shall promptly post the proposal in a prominent place that will 
ensure access by interested persons. <ol>
[(c) On approval of the proposal, the amendment, deletion, or addition to the 
commission rules will be adopted in accordance with the Administrative Procedure 
and Texas Register Act, Texas Civil Statutes, Article 6252-13a.] 
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. 
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800438
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699

CHAPTER 309.Operation of Racetracks
SUBCHAPTER A.General Provisions
Facilities and Equipment
16 TAC sec.309.18
The Texas Racing Commission proposes an amendment to sec.309.18, concerning 
first aid at pari-mutuel racetracks. The amendment clarifies the requirements 
for first aid personnel and eliminates the requirement of having first aid 
personnel on the grounds of a racetrack when no live racing or exercising is 
occurring. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the amendment is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that pari-mutuel racing will be safe for the patrons and 
participants without being overly burdensome to the racetracks. The Commission 
anticipates licensed racetracks will see cost savings from the new rule because 
they will no longer be required by Commission rule to provide first aid 
personnel when the track is open for simulcasting only. The exact amount of the 
savings cannot be determined because the cost of the first aid personnel varies 
by track and by geographic region within the state. Further, each racetrack is 
free to determine when first aid personnel are required on the grounds when 
simulcasting only. There is no anticipated economic cost to an individual 
required to comply with the proposal. The proposal has no effect on the state's 
agricultural, horse breeding, horse training, greyhound breeding, or greyhound 
training industries. 
Comments on the proposal may be submitted on or before March 10, 1998, to Paula 
C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 
12080, Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.6.06, which 
authorizes the Commission to adopt rules on all matters relating to the 
operation of pari-mutuel racetracks. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.309.18.First Aid.
(a) During a <nl>live<ol> race performance, <nl>a greyhound racing<ol> [an] 
association shall provide: 
(1) a first aid room equipped with at least two beds and other appropriate 
equipment; and 
(2) the services of <nl>a basic emergency medical technician certified after 
September 1, 1996 or a<ol> [at least one] certified paramedic. 
(b) <nl>During a live race meet, a<ol> [A] horse racing association shall 
provide a properly equipped and staffed ambulance for humans <nl>and the 
services of a certified paramedic<ol> at any time that the racetrack is open for 
racing or exercising. At a Class 1 or 2 racetrack, the primary ambulance must be 
a Mobile Intensive Care Unit (MICU) certified by the Texas Department of Health. 
If the MICU ambulance is used to transport an individual, the association may 
not conduct a race until the ambulance is replaced by an ambulance approved by 
the commission. The ambulance must be parked at the entrance to the racing strip 
when not being used to transport an individual. 
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. 
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800437
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699

CHAPTER 323.Disciplinary Action and Enforcement
SUBCHAPTER A.General Provisions
16 TAC sec.323.2
The Texas Racing Commission proposes an amendment to sec.323.2, concerning 
complaints. The Texas Racing Act was revised by sunset legislation effective 
September 1, 1997, and in that legislation, the Commission is required to 
establish methods by which racetrack patrons are notified of the name, mailing 
address, and telephone number for the commission for the purpose of directing 
complaints to the Commission. This amendment implements that requirement. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the amendment is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the 
amendment is in effect the public benefit anticipated as a result of enforcing 
the proposal will be that the public has notice of the process for complaining 
about the activities or operations of pari-mutuel racetracks. There will be 
minimal fiscal implications for licensed racetracks. Because the racetracks are 
already required to provide a place for posting public information, the cost of 
posting a sign with complaint procedure information is estimated to be less than 
$1 per year. Further, because the racetracks already publish a daily race 
program, there is no additional cost anticipated from requiring the inclusion of 
the complaint procedure information. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries.
Comments on the proposal may be submitted on or before March 10, 1998, to Paula 
C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 
12080, Austin, Texas 78711-2080. 
The amendment is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.2.23, which 
requires the Commission to adopt rules which establish methods by which 
racetrack patrons are notified of the name, mailing address, and telephone 
number for the commission for the purpose of directing complaints to the 
Commission. 
The proposed amendment implements Texas Civil Statutes, Article 179e. 

sec.323.2.Complaints.
(a)-(c) (No change.) 
<nl>(d)<ol> <nl>An association shall include in the official program a statement 
that describes the procedure for filing a complaint with the commission. The 
executive secretary shall approve the form of the statement. The statement must 
include the name, mailing address, and telephone number of the commission. <ol>
<nl>(e)<ol> <nl> An association shall prominently post sign(s) in the racetrack 
facility that describe the procedure for filing a complaint with the commission. 
The executive secretary shall approve the form and location of the sign(s).<ol> 
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. 
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800441
Paula C. Flowerday
General Counsel
Texas Racing Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 833-6699

TITLE 22. EXAMINING BOARDS
PART XVII. Texas State Board of Plumbing Examiners
CHAPTER 361.Administration
22 TAC sec.361.1
The Texas State Board of Plumbing Examiners proposes an amendment to sec. 361.1. 
This section specifies the meanings of words and terms used in the Plumbing 
License Law and Board Rules. 
James Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule. 
Mr. Fowler also has determined that each year of the first five years the rule 
is in effect the public benefit will be greater protection of health, safety and 
welfare by clearly defining that each plumbing company must be under the 
supervision of a Responsible Master Plumber that is supervising only one 
plumbing company. A master plumber will be required to properly supervise and be 
knowledgeable of and responsible for all plumbing work performed under his 
license. The Responsible Master Plumber will not be allowed to dilute his 
supervisory capabilities by attempting to act as a Responsible Master Plumber 
for multiple companies for the purpose of receiving compensation from multiple 
companies. There will be no effect on small businesses except that all plumbing 
businesses will be ensured that they will receive the proper supervision of a 
Responsible Master Plumber. The economic cost to the persons having to comply 
with the rule as proposed will be those master plumbers that receive 
compensation from multiple plumbing companies who use their master plumber 
license in return for the these master plumbers attempting to act as a 
Responsible Master Plumber, will only be able to be compensated by one plumbing 
company for this service. 
Comments on the proposed rule change may be submitted to Gilbert Kissling, 
Administrator, Texas State Board of Plumbing Examiners, 929 East 41st Street, 
P.O. Box 4200, Austin 78765-4200. 
The amendment is proposed under and effect Texas Revised Civil Statutes 
Annotated Article 6243-101, sec.2(2) and sec.5(a) (Vernon Supp. 1998). 
No other statute, article, or code is affected by this proposed amendment. 

sec.361.1. Definitions.
The following words and terms, when used in this part, have the following 
meanings, unless the context clearly indicates otherwise.
Responsible Master Plumber-A responsible master plumber is the master that 
allows his Master Plumber License to be used by a company for the purpose of 
performing plumbing work and obtaining the required plumbing permits. The master 
<nl> plumber, <ol>by allowing his license to be used in this manner, assumes 
responsibility for all plumbing work performed. <nl> A Responsible Master 
Plumber may allow his master plumber license to be used by only one plumbing 
company.<ol>
Plumbing Inspector -An individual with no financial or advisory interests in any 
plumbing company who: is employed by<nl>or is an agent of<ol> a political 
subdivision to check plumbing work for compliance with health and safety laws 
and ordinances; and has successfully completed the examinations and met the 
Board's requirements for plumbing inspector status. 
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.
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800745
Robert L. Maxwell
Chief of Field Services/Investigations
Texas State Board of Plumbing Examiners 
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 458-2145, Ext. 233

CHAPTER 363.Examination
22 TAC sec.363.1
The Texas State Board of Plumbing Examiners proposes an amendment to sec.363.1. 
This section specifies the eligibility requirements for taking the examinations 
offered by the Board. 
James Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule. 
Mr. Fowler has determined that each year of the first five years the rule is in 
effect the public benefit will be to allow more individuals that do not meet the 
requirements to be licensed plumbers, to become licensed plumbing inspectors. 
The rule as proposed will give these unlicensed individuals additional means to 
qualify to take the plumbing inspector examination. There will be no effect on 
small businesses. There is no economic cost to the persons having to comply with 
the rule as proposed. 
Comments on the proposed rule change may be submitted to Gilbert Kissling, 
Administrator, Texas State Board of Plumbing Examiners, 929 East 41st Street, 
P.O. Box 4200, Austin 78765-4200. 
The amendment is proposed under and effect Texas Revised Civil Statutes 
Annotated Article 6243-101, sec.2(5) and sec.5(a) (Vernon Supp. 1998). 
No other statute, article, or code is affected by this proposed amendment.

sec.363.1. Qualifications. 
(a) Master Plumber. Each applicant must: 
(1) be licensed either as: 
(A) a journeyman plumber in Texas or another state and must have held the 
journeyman license for at least two years before filing the master plumber 
application; or 
(B) a master plumber in another state in which case the applicant need not be 
currently licensed at the time of application if the expired license is 
renewable in the state that issued it; 
(2) be a high school graduate or hold a General Equivalency Diploma (GED); and 
(3) maintain a single registered mailing address that the board shall regard as 
the applicant's principal business address for communication and record keeping 
purposes. 
(b) Journeyman Plumber. Each applicant must: 
(1) be a high school graduate, hold a General Equivalency Diploma (GED) or have 
begun accumulating work experience hours prior to September 1, 1993 and apply to 
take the Journeyman examination by December 31, 1997; and 
(2) have either of the following: 
(A) registration as a registered plumbing apprentice and at least 8,000 hours of 
experience working at the trade or such work experience and technical training 
combined to equal 8,000 hours, as verified by former employers; or 
(B) a journeyman license from another state that need not be current at the time 
of application if the expired license is renewable in the state that issued it. 
(c) Plumbing Inspector. Each applicant must: 
(1) be a high school graduate or hold a General Equivalency Diploma (GED) and 
(2) have one of the following: 
(A) a journeyman or master plumber license issued in the state of Texas; 
(B) a journeyman or master plumber license issued in another state, provided he 
or she passes the Texas State Board of Plumbing Examiners journeyman exam; or
(C) successful completion of the International Association of Plumbing and 
Mechanical Officials (IAPMO)<nl>, International Conference of Building Officials 
<ol>(ICBO), or Southern Building Code Congress International (SBCCI) 
certification and 5,000 hours of experience working at the trade or such work 
experience and technical training combined to equal 5,000 hours as verified by 
former employers. 
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.
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800746
Robert L. Maxwell
Chief of Field Services/Investigations
Texas State Board of Plumbing Examiners 
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 458-2145, Ext. 233

22 TAC sec.363.11
The Texas State Board of Plumbing Examiners proposes an amendment to sec.363.11. 
This section specifies the requirements for persons desiring to offer license 
endorsement training programs. 
James Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule. 
Mr. Fowler also has determined that each year of the first five years the rule 
is in effect the public benefit will be greater protection of health, safety and 
welfare by ensuring that the Water Supply Protection Specialist Training 
Programs will always be provided equitably across the state. There will be no 
effect on small businesses and no economic cost to the persons having to comply 
with the rule as proposed, since all of the providers of the training programs 
are already providing the programs equitably across the state. 
Comments on the proposed rule change may be submitted to Gilbert Kissling, 
Administrator, Texas State Board of Plumbing Examiners, 929 East 41st Street, 
P.O. Box 4200, Austin 78765-4200. 
The amendment is proposed under and effect Texas Revised Civil Statutes 
Annotated Article 6243-101, sec.11(A) and sec.5(a) (Vernon Supp. 1998). 
No other statute, article, or code is affected by this proposed amendment.

sec.363.11. Endorsement Training Programs. 
(a) (No change.)
(b) Water supply protection training programs 
(1) Any person wishing to offer a Board approved training program in water 
supply protection to the public must meet criteria as prescribed by the Board. 
Instructors shall be employed by a program that meets certification requirements 
of the Central Education Agency or is exempted from the Central Education Agency 
certification requirements under Chapter 32, sec.32.12(a)(5) Texas Education 
Code (Proprietary Schools and Veterans Education). Such persons shall provide to 
the administrator lesson plans and instructor qualifications. The Board shall 
provide a course outline and the required minimum hours.
(2) Periodically, the Board shall review Board approved training programs in 
water supply protection for quality in content and instruction <nl> and ensure 
that programs have been provided equitably across the state of Texas<ol>. The 
Board shall also respond to complaints regarding approved programs. 
(b) (No change.)
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. 
Filed with the Office of the Secretary of State, on
January 16, 1998.
TRD-9800747
Robert L. Maxwell
Chief of Field Services/Investigations
Texas State Board of Plumbing Examiners 
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 458-2145, Ext. 233

CHAPTER 367.Enforcement
22 TAC sec.367.3
The Texas State Board of Plumbing Examiners proposes an amendment to sec.367.3. 
This section specifies the requirements for plumbing companies to secure the 
services of a Responsible Master Plumber, as well as the requirements for a 
master plumber that acts as a Responsible Master Plumber. 
James Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule.
Mr. Fowler also has determined that each year of the first five years the rule 
is in effect the public benefit will be greater protection of health, safety and 
welfare by clearly defining that each plumbing company must be under the 
supervision of a Responsible Master Plumber that is supervising only one 
plumbing company. A master plumber will be required to properly supervise and be 
knowledgeable of and responsible for all plumbing work performed under his 
license. The Responsible Master Plumber will not be allowed to dilute his 
supervisory capabilities by attempting to act as a Responsible Master Plumber 
for multiple companies for the purpose of receiving compensation from multiple 
companies. There will be no effect on small businesses except that all plumbing 
businesses will be ensured that they will receive the proper supervision of a 
Responsible Master Plumber. The economic cost to the persons having to comply 
with the rule as proposed will be those master plumbers that receive 
compensation from multiple plumbing companies who use their master plumber 
license in return for the these master plumbers attempting to act as a 
Responsible Master Plumber, will only be able to be compensated by one plumbing 
company for this service. 
Comments on the proposed rule change may be submitted to Gilbert Kissling, 
Administrator, Texas State Board of Plumbing Examiners, 929 East 41st Street, 
P.O. Box 4200, Austin 78765-4200. 
The amendment is proposed under and effect Texas Revised Civil Statutes 
Annotated Article 6243-101, sec.2(2) and sec.5(a) (Vernon 1997).
No other statute, article, or code is affected by this proposed amendment.

sec.367.3 Requirement for Plumbing Companies.
(a) A company offering to do plumbing work must secure the services of at least 
one <nl> Responsible Master Plumber <ol> [person] holding a current master 
plumber's license. <nl>A Responsible <ol> [The] Master Plumber shall not allow 
any person, firm, company, or corporation to use his or her master plumber's 
license for any purpose unless the master plumber is a bona fide employee of the 
person, firm, company, or corporation or is the owner of [or has a substantial 
financial interest in] the firm, company, or corporation that will use the 
master plumber's license.<nl> A Responsible<ol> [The] Master Plumber's license 
shall be used by only <nl>one <ol> such [a] person, company, firm, or 
corporation. The <nl>Responsible<ol>Master Plumber shall be knowledgeable of and 
responsible for all permits, contracts, and agreements to perform plumbing work 
secured and plumbing work performed under his or her master plumber's license. 
All work performed under the <nl>Responsible<ol> Master Plumber's license shall 
be within the sight of and under the direct control and on-the-job supervision 
of a licensed plumber that is a bona fide employee of the person, or bona fide 
employee, owner of [or has a substantial financial interest in] the firm, 
company, or corporation using the master plumber's license. 
(b) (No change.)
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. 
Filed with the Office of the Secretary of State, on January 16, 1998.
TRD-9800748
Robert L. Maxwell
Chief of Field Services/Investigations
Texas State Board of Plumbing Examiners 
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 458-2145, Ext. 233

PART XXIII. Texas Real Estate Commission
CHAPTER 535.Provisions of the Real Estate License Act
General Provisions Relating to the Requirement of Licensure
22 TAC sec.sec.535.1-535.4
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.1, 
concerning when a real estate license is required, sec.535.2, concerning a 
broker's responsibility, sec.535.3, concerning compensation accepted by a 
salesperson, and sec.535.4, concerning compensation paid by a salesperson. The 
amendments replace gender-specific terms such as salesman or his with neutral 
terms such as salesperson or a person's. Adoption of the amendments is necessary 
for TREC to comply with House Bill 814, 75th Legislature (1997) which requires 
TREC to use the term salesperson in all its rules and documents no later than 
January 1, 1999, and for TREC to revise its rules for consistency and style. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
There is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency s 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections. 
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 amendments are 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 these sections is Texas Civil Statutes, Article 
6573a. 

sec.535.1. License Required. 
(a)-(e) (No change.) 
(f) Unless otherwise exempted by this Act, a person must be licensed as either a 
real estate broker or <nl>salesperson<ol> [ salesman ] in order to show a 
broker's listings or solicit listings of real property. 
(g) (No change.) 
(h) Real estate licensure is not required of a partnership acting as a real 
estate broker in Texas. A partner or non-partner employee who acts as a real 
estate agent in the partnership's name must be licensed as a real estate broker 
or <nl>salesperson<ol> [salesman].

sec.535.2. Broker's Responsibility. 
(a) (No change.) 
(b) Licensure as either a Texas real estate <nl>salesperson <ol> [salesman] or 
broker does not require membership in any trade association or local board. 
(c) A broker is responsible for <nl>the<ol> [his salesman's] authorized acts 
<nl>of the broker's salesperson<ol>, but the broker may absent himself <nl>or 
herself<ol> as <nl>the broker<ol> [he ] chooses. 
(d) A <nl>salesperson<ol> [salesman] may work in or out of a real estate office 
without direct supervision of <nl>the salesperson s<ol> [his] sponsoring broker. 
This in no way lessens the degree of responsibility of the sponsoring broker for 
<nl>the salesperson's <ol> [his salesman's] actions. 
(e) A real estate <nl>salesperson<ol> [salesman] is not required by this Act to 
sell <nl>a<ol> [his] home or other real property owned by <nl>the 
salesperson<ol> [him] through <nl> the salesperson's<ol> [his] sponsoring 
broker. Such may be a matter of civil agreement between the two. 
(f) A real estate agent owes the very highest fiduciary obligation to <nl>the 
agent's<ol> [his] principal and is obliged to convey to <nl>the<ol> [his] 
principal all information of which the agent has knowledge and which may affect 
the principal's decision. It is the broker's obligation under a listing contract 
to negotiate the best possible transaction for <nl>the<ol> [his] principal, the 
person <nl> the broker<ol> [he] has agreed to represent. 
(g) A broker is responsible for the authorized acts of <nl> the broker's<ol> 
[his] associates whether they are licensed as <nl> salespersons<ol> [salesmen] 
or brokers. 
(h) A broker is responsible for the proper handling of escrow monies placed with 
<nl>the broker<ol> [him], but whom <nl> the broker<ol> [he] designates to sign 
[his] checks is <nl>the broker's<ol> [his] internal business and not regulated 
by this Act.

sec.535.3.Compensation Accepted by <nl>Salesperson <ol> [Salesman]. 
A <nl>salesperson<ol> [salesman] is not permitted to receive compensation for 
[his] acts as a licensed real estate <nl> salesperson<ol> [salesman], except 
through <nl>the salesperson's <ol> [his] sponsoring broker or through the broker 
under whom <nl> the salesperson<ol> [he] was licensed when he <nl>or she<ol> 
earned the right to compensation, although the broker need not actually receive 
the money and pay it to the <nl>salesperson<ol> [salesman]. Payments not made by 
or through the broker must be made with the broker's knowledge and consent.

sec. 535.4. Compensation Paid by <nl>Salesperson <ol> [Salesmen].
A real estate <nl>salesperson<ol> [salesman] may pay a commission to another 
person with the knowledge and consent of the real estate <nl>salesperson's<ol> 
[salesman's] sponsoring broker. 
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.
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800468
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 465-3900

Definitions
22 TAC sec.sec.535.12, 535.14-535.17, 535.20
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.12, 
concerning general definitions, sec.535.14, concerning offers to dispose of real 
estate, sec.535.15, concerning negotiations, sec.535.16, concerning listings, 
sec.535.17, concerning appraisals, and sec.535.20, concerning procuring 
prospects. The amendments replace gender-specific terms such as salesman or his 
with neutral terms such as salesperson ora person s. Adoption of the amendments 
is necessary for TREC to comply with House Bill 814, 75th Legislature (1997) 
which requires TREC to use the term salesperson in all its rules and documents 
no later than January 1, 1999, and for TREC to revise its rules for consistency 
and style. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
There is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency s 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections. 
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 amendments are 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 these sections is Texas Civil Statutes, Article 
6573a. 

sec. 535.12. General.
(a)-(b) (No change.) 
(c) Licensure is not required for a person to list <nl>the person's<ol> [his] 
property with a licensee. Compensation to the owner for granting the listing 
does not require licensure of the owner.
(d) A person may invest in real estate or contract to purchase real estate and 
then sell it or offer to sell it without having a real estate license. Texas 
real estate licensure is not required of one who buys and sells real property 
only for <nl>the person's<ol> [his] own account. 
(e) One who owns property jointly with another may sell and convey title to his 
<nl>or her<ol> interest in the property, but <nl> the person<ol> [he] must be 
licensed to act for compensation as an agent for the other owner unless 
otherwise exempted from the requirement of licensure. 
(f) (No change.)

sec.535.14.Offers to Dispose of Real Estate.
Offering property by mail from another state to residents of Texas does not 
require licensure as a Texas real estate broker or <nl>salesperson <ol> 
[salesman]. 

sec.535.15. Negotiations. 
(a)-(g) (No change.) 
(h) A person can be hired by a broker to act as a hostess, attendant or 
custodian at and of homes which a broker offers for sale without coming within 
the purview of The Real Estate License Act, so long as such person does not 
engage in activities defined as acts of a broker or <nl> salesperson<ol> 
[salesman] which require licensure. 

sec.535.16. Listings.
(a)-(b) (No change.) 
(c) A broker should take net listings only when the principal insists upon a net 
listing and when the principal appears to be familiar with current market values 
of real property. When a broker accepts a listing, <nl> the broker<ol> [he] 
enters into a fiduciary relationship with <nl> the<ol> [his] principal, whereby 
the broker is obligated to make diligent efforts to obtain the best price 
possible for the principal. The use of a net listing places an upper limit on 
the principal's expectancy and places the broker's interest above <nl>the<ol> 
[his] principal's interest with reference to obtaining the best possible price. 
Net listings should be qualified so as to assure the principal of not less than 
<nl> the principal's<ol> [his] desired price and to limit the broker to a 
specified maximum commission. 
(d) (No change.)

sec. 535.17.Appraisals.
(a) A <nl>salesperson<ol> [salesman] may make, sign, and present real estate 
appraisals for <nl>the salesperson's<ol> [his] sponsoring broker, but the 
appraisals must be submitted in the broker's name and are the broker's 
responsibility. A real estate <nl> salesperson<ol> [salesman] may not appraise 
real property for others and for compensation without such activity being 
conducted through <nl> the salesperson's<ol> [his] sponsoring broker. 
(b)-(c) (No change.) 
(d) Real estate licensure is not required for one to testify as to the value of 
real property, but if in preparing [himself] to testify, the person actually 
does appraise the property for another person and for compensation, licensure 
would be required. 
(e)-(l) (No change.)

sec.535.20.Procuring Prospects.
(a) This section prohibits a person not licensed as a Texas real estate broker 
or <nl>salesperson<ol> [salesman] from receiving a referral fee from another 
concerning the sale, exchange, purchase, rental or lease of real estate. 
(b)-(c) (No change.) 
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.
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800469
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 465-3900

Exemptions to Requirements of Licensure
22 TAC sec.535.31, sec.535.33
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.31, 
concerning attorneys at law and sec.535.33, concerning public officials. The 
amendments replace gender-specific terms such as salesman or his with neutral 
terms such as salesperson or a person's. or revise the sections to eliminate use 
of terms related to a single gender. Adoption of the amendments is necessary for 
TREC to comply with House Bill 814, 75th Legislature (1997) which requires TREC 
to use the term salesperson in all its rules and documents no later than January 
1, 1999, and for TREC to revise its rules for consistency and style. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
There is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency's 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections. 
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 amendments are 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 these sections is Texas Civil Statutes, Article 
6573a.

sec.535.31. Attorneys at Law. 
(a) Licensed attorneys are exempt from the requirements of The Real Estate 
License Act, but cannot sponsor real estate <nl>salespersons <ol> [salesmen] for 
licensure unless such attorneys are also licensed as real estate brokers. 
(b)-(c) (No change.) 
(d) A Texas-licensed attorney is exempted from real estate licensure 
requirements whether dealing with [his] clients or with non-clients. 
(e) An attorney should make his <nl>or her<ol> own determination regarding 
whether [his] acting as a real estate agent on the basis of <nl>a<ol> [his] law 
license may violate the State Bar's Code of Professional Responsibility. 
(f)-(g) (No change.) 

sec.535.33. Public officials. 
(a)-(e) (No change.) 
(f) A <nl>salesperson<ol> [salesman] making appraisals for the Veterans 
Administration must do so through <nl>the salesperson's <ol> [his] sponsoring 
broker. 
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.
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800470
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 465-3900

The Commission
22 TAC sec.535.41
The Texas Real Estate Commission (TREC) proposes an amendment to sec.535.41, 
concerning procedures of the commission. The amendment replaces terms such as 
chairman or his with terms which are not gender-specific, such as chairperson or 
the chairperson s. Archaic references to enabling legislation would also be 
revised with current citations. Adoption of the amendment is necessary for TREC 
to comply with House Bill 814, 75th Legislature (1997), which replaces gender-
specific terms used in Texas Civil Statutes, Article 6573a, and for TREC to 
revise its rules for consistency and style. 
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 consistency between the section and the agency s 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply 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.535.41. Procedures. 
(a) Meetings. 
(1)-(2) (No change.) 
(3) Meetings shall be called by the <nl>chairperson <ol> [chairman] on <nl>the 
chairperson's<ol> [his] own motion or upon the written request of five members. 
(b) (No change.) 
(c) Officers. 
(1) Officers of the commission shall consist of a <nl>chairperson <ol> 
[chairman], <nl>vice-chairperson<ol> [vice-chairman ] and secretary. 
(2) The commission shall elect a <nl>vice-chairperson <ol> [vice-chairman] and 
secretary at a regular meeting in February of each year. The governor shall 
designate one member to serve as <nl>chairperson <ol> [chairman] at the pleasure 
of the governor. Elected officers shall serve until their successors are 
elected. 
(d) Order of business. 
(1) (No change.) 
(2) Proceedings in contested cases shall be conducted in accordance with the 
Administrative Procedure [and Texas Register] Act, <nl>Texas Government Code, 
sec.sec.2001.001 et seq<ol> [ sec.14 (Texas Civil Statutes, Article 6252-13a)] 
and Chapter 533 of this title (relating to Practice and Procedure). 
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. 
Filed with the Office of the Secretary of State, on January 12, 1998.
TRD-9800471
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: March 2, 1998
For further information, please call: (512) 465-3900

Requirements for Licensure
22 TAC sec.sec.535.51-535.53, 535.61, 535.62, 535.66, 535.68, 535.70
The Texas Real Estate Commission (TREC) proposes amendments to sec.535.51, 
concerning general requirements for licensure, sec.535.52, concerning individual 
applicants, sec.535.53, concerning corporations and limited liability companies, 
sec.535.61, concerning examinations, sec.535.62, concerning waiver of 
examination, sec.535.66, concerning accreditation, sec.535.68, concerning 
alternative education for brokers, and sec.535.70, concerning required 
coursework. The amendments replace terms such as salesman or his with terms 
which are not gender-specific, such as salesperson or the salesperson's. In some 
cases, additional terms are used to broaden the scope of the text and avoid use 
of single gender-specific terms. Section 535.52 also would be amended to delete 
an outdated provision relating to the licensing of partnerships under prior law. 
Adoption of the amendments is necessary for TREC to comply with House Bill 814, 
75th Legislature (1997) which requires TREC to use the term salesperson in all 
its rules and documents no later than January 1, 1999, and for TREC to revise 
its rules for consistency and style. 
Mark A. Moseley, general counsel, has determined that for the first five-year 
period the sections are in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the sections. 
There is no anticipated impact on local or state employment as a result of 
implementing the sections. 
Mr. Moseley also has determined that for each year of the first five years the 
sections as proposed are in effect the public benefit anticipated as a result of 
enforcing the sections will be consistency between the sections and the agency s 
enabling legislation. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections. 
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 amendments are 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 these sections is Texas Civil Statutes, Article 
6573a. 

sec.535.51. General Requirements. 
(a) Only a licensed broker may apply as sponsoring broker for licensure of a 
real estate <nl>salesperson<ol> [salesman].
(b) Applications are returned to applican