ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 1. ADMINISTRATION PART IV. Office of the Secretary of State CHAPTER 91. Texas Register The Office of the Secretary of the State, Texas Register, adopts the repeal of sec.sec.91.1, 91.12, 91.19, 91.21-91.26, 91.31, 91.41-91.43, 91.51, 91.71-91.75, 91.91, 91.97, 91.124, 91.131-91.135, and new sec.sec.91.1, 91.7, 91.9, 91.11, 91.13, 91.15, 91.17, 91.19, 91.21, 91.23, 91.25, 91.27, 91.29, 91.31, 91.61, 91.63, 91.65, 91.67, 91.69, 91.71, 91.73, 91.75, and 91.77, concerning Texas Register procedures. New sec.sec.91.1, 91.9, 91.13, 91.15, 91.17, 91.19, 91.21, 91.23, 91.29, 91.31, 91.63, 91.65, 91.67, 91.71, 91.73, and 91.77 are adopted with changes to the proposed text as published in the July 29, 1997, issue (22 TexReg 6991). Section 91.61 was withdrawn and reproposed in the October 17, 1997, issue (22 TexReg 10203). It is being adopted with changes. The repeals of sec.sec.91.1, 91.12, 91.19, 91.21-91.26, 91.31, 91.41-91.43, 91.51, 91.71-91.75, 91.91, 91.97, 91.124, 91.131-91.135 and new sec.sec.91.7, 91.11, 91.25, 91.27, and 91.69 are adopted without changes and will not be republished. We are withdrawing proposed new sec.91.91 in this issue and will repropose it at a future date. We also withdrew the proposed repeal of sec.91.121 and sec.91.122. The Texas Register is revising its rules in response to Senate Bill 1177, Senate Bill 1715 and House Bill 1, as adopted by the 75th Legislature. The Texas Register is also taking this opportunity to reorganize Chapter 91 into new subchapters. Senate Bill 1715 requires the Texas Register to strike through as well as bracket obsolete language and to underline new language in proposed rules. Agencies will not change the way they code proposed rule amendments, but will now be required to use the code <new> for proposed new rules. Comments were filed by the Texas General Land Office (GLO), the Texas Department of Health (TDH), the Texas Department of Insurance (TDI), the Texas Natural Resource Conservation Commission (TNRCC), the Public Utility Commission of Texas (PUC), the Texas Railroad Commission (RRC), the State Securities Board (SSB), the Texas Water Development Board (TWDB), and the Texas Workers Compensation Commission (TWCC). We received the following comments regarding the proposed new rules in general. The TNRCC recommended that familiar terms, such as "you" and "we" not be included in rule language because such terms may be misinterpreted more readily than terms such as "agency" and "Register." TNRCC also recommended that the preamble for the proposed new rules include a brief explanation of each proposed rule. We agree with TNRCC that more explanation of the proposed rules would help clarify the purpose of each rule for readers. For the same reason we disagree with TNRCC regarding the strict use of third person. Terms such as "you" and "we" are plain to readers. TNRCC in fact uses "we" in its written comments. The RRC commented that the preamble was misleading in its explanation of the coding we require to designate new language in electronic files. We withdrew and reproposed new sec.91.61, concerning electronic procedures for filing rules and miscellaneous documents. The new sec.91.61 appeared in the October 17, 1997, Texas Register (22 TexReg 10203). The new rule addressed the RRC's concerns and simplifies the coding requirements for underlining the entire text of new rules as required by SB 1715 (75th Texas Legislature). The RRC suggested that the Texas Register Form and Style Manual be eliminated and that all requirements be included in the Texas Register rules in Chapter 91. The RRC suggested alternatively that the Form and Style Manual be adopted by reference to give it the force and effect of the rules. The SSB commented that the Form and Style Manual has been a valuable resource and teaching guide. The Texas Register Form and Style Manual will not be eliminated. It will be updated to address these new rules. The updated Form and Style Manual will be made available on the internet. The Manual will not be adopted by reference because it does not contain requirements that have the force and effect of rules. The rules in Chapter 91 provide the minimum requirements for filing documents for publication. The manual is a supplement to the Texas Register rules, offering checklists, examples, and other information which may be helpful to someone preparing documents for filing. The distinction between the Texas Register rules in Chapter 91 and the Texas Register Form and Style Manual is that the rules are mandatory procedures; the Form and Style Manual is optional. COMMENTS ON sec.91.1. DEFINITIONS. The TWCC commented that the definition of "rule" in paragraph (12) changes the definition currently contained in the Administrative Procedure Act. We agree. The definition is adopted with changes to conform to the APA definition. The RRC commented that the term "adoption by reference" should be defined. The RRC commented that in definition (5) Certifying official and in definition (9) Liaison, the word "person" should be changed to "individual" in order to conform to definition (10) Person. We agree. We will address "adoption by reference" in a future proposal. Definitions (5) and (9) will be adopted with changes to substitute the word "individual" for "person." COMMENTS ON sec.91.9. DOCUMENTS ACCEPTED BY THE TEXAS REGISTER. The TWCC commented that this rule should include miscellaneous documents that are not required by law for publication. The GLO commented that this rule should include notices filed by the Coastal Coordination Council under the Natural Resources Code, Chapter 33. We agree, and adopt the rule with changes. COMMENTS ON sec.91.13. NONACCEPTANCE OF DOCUMENTS. The SSB and the TWDB commented against this rule. The commenters described the rule as a harsh policy that would inconvenience agencies and possibly delay the adoption of agencies' rules. The SSB urged the Texas Register to be more cooperative and flexible with documents submitted for publication, noting that "...provisions which reject rule submissions without allowing for any 'play' between us and the Register staff can result in a compounding of the problem, requiring multiple filings and delayed publications." The TWDB recommended that the rule establish a specific time frame of two or three days from submission within which Texas Register staff makes notification of rejection. We agree that cooperation is mutually beneficial for agencies and the Texas Register. But in practice, an agency's priority is to expedite publication of its documents. Often when we notify an agency that a document fails to conform to our requirements, an agency, faced with the delay of a rejection, may promise that if we make an exception and accept the document this time, that next time the mistake will not be repeated. Too often, however, the mistake is repeated along with the promise never to do it again if only we will make an exception again. In the spirit of cooperation and flexibility, we are adopting sec.91.13 with changes. In subsection (a) the wording "We will reject documents that do not conform..." will be adopted to read "We may reject documents that do not conform..." We will notify agencies in writing when documents fail to conform to our rules. In most instances we will not reject documents the first time we send this kind of notification. If the same agency repeats the same mistake in future filings, we will reject the documents. We will notify agencies within two days of the filing deadline to acknowledge the receipt of documents. We will notify agencies within 10 days of the filing deadline if we reject documents. COMMENTS ON sec.91.17. CLASSIFICATION SYSTEMS. The RRC and TNRCC commented on our proposal to eliminate undesignated heads, and expressed concern about their chapters that include both subchapters and undesignated heads. We are adopting sec.91.17, concerning classification systems with changes. Undesignated heads present a difficulty precisely because they are undesignated. Instead of eliminating this classification level, we are changing it. In chapters that have subchapters and undesignated heads, we will change the undesignated heads to numbered divisions. In chapters that have undesignated heads, but no subchapters, we will change the existing undesignated heads to subchapters in the Texas Administrative Code. Divisions will be permitted only within a subchapter classification level. We will convert existing undesignated heads to subchapters or divisions in the Texas Administrative Code as time allows. If an agency converts one undesignated head to a subchapter in a rulemaking submission, we will convert all other undesignated heads in the chapter to subchapters without further notice to the agency. The PUC, the GLO and the RRC commented on the gapping of rules. The PUC and GLO commented that gapping is appropriate and should be allowed. The commenters noted that the new rules fail to address gapping. We agree. We encourage, but do not require, agencies to leave gaps between sections and often between chapters or even subchapters. Gapping leaves space for future additions. It is not necessary to mark a gap with the word "reserved" and we do not permit gapping within a section. We will adopt the following wording suggested by the RRC: "Do not indicate chapters, subchapters, divisions, rule numbers and/or parts of a section as being reserved for future use." COMMENTS ON sec.91.19. NUMBERING SCHEMES. The RRC commented that the new rules do not require that the first rule in a chapter or subchapter end in the number "1." We agree. In most instances it would make sense for the first rule in a chapter or subchapter to end in the number "1," but the rules do not require it. If an agency repealed the first rule in a chapter or subchapter, it would not be necessary to repeal the entire chapter only to make the section numbers line up. The TDI commented that the proposal to limit rule numbers to four digits before the decimal and four digits after the decimal would require some implementation time. The TDI commented that the repeal and readoption of groups of rules necessary to conform to the new four-digit limit would cause a significant expenditure of agency time. We agree. If an agency has existing rules with more than four digits before or after the decimal we will permit the agency to administratively renumber the groups of rules affected by this rule. COMMENTS ON sec.91.21. TITLES. The RRC recommended that we add language to sec.91.21 to explain how to amend the title of a rule. We agree, and will adopt the rule with additional wording suggested by the RRC: "Amendments to titles shall be made showing the new and deleted language in accordance with the requirements of sec.91.61 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents)." COMMENTS ON sec.91.23. STRUCTURE; TERMINOLOGY. The TDH commented on a typographical error in sec.91.23(d)(1). "No change" should read "(No change)". The RRC commented on sec.91.23(a)(1)(B), suggesting the addition of the following language. "This is referred to as an 'implied (a)'." We agree, and will adopt this section with the added wording. COMMENTS ON sec.91.25. FORM OF CITATION. The TDH commented that the rule should explain how to cite statutes and suggested the following language: "To cite material published in the Texas Civil Statutes, give the article number followed by section number. For example: Texas Civil Statutes, Article 6252-13(a), sec.6(c)." We have no disagreement with the citation style suggested by TDH, but the purpose of this rule is to establish the citation format for agency rules published in the Texas Register and in the Texas Administrative Code. We no longer presume to dictate a form of citation for statutes. A widely accepted citation format is offered by the University of Texas Texas Law Review in its publication Texas Rules of Form. If you use Texas Rules of Form please note that its citation format for administrative rules differs slightly from the format in our rule. Use the format in sec.91.25 when filing documents for publication in the Texas Register. COMMENTS ON sec.91.28. PROCEDURE FOR FILING NOTICE OF OPEN MEETING. The SSB commented on a typographical error in the heading which included sec.91.28 among sections proposed for repeal (22 TexReg 6992). The procedure for filing notice of open meetings was not proposed for repeal and will not be changed by the adoption of these rules. We intend to change the open meeting filing procedure in 1998, but that will require publication of the proposal for comments. COMMENTS ON sec.91.29. SERIALIZATION OF DOCUMENTS TO BE PUBLISHED. The TWCC commented on sec.91.29. The comment reads, "No explanation is given as to the meaning of the term 'serialization note' and whether it is included in the first issue in which a document is serialized or the last issue." We agree, and will adopt the section with changes to clarify that when a submission is serialized, the first issue in the series determines the publication date for purposes of calculating the earliest possible date of adoption. A "serialization note" is an editor's note explaining that a submission is being published in series. COMMENTS ON sec.91.31. CORRECTION OF ERROR. The GLO commented in favor of extending the deadline from 10 to 20 days for requesting a correction. The TWCC commented that subsection (d) is unclear, and suggested clarification to the phrase "We will not make substantive corrections." The SSB commented that the rule's requirement to specify whether the error appeared in the print Texas Register, the web site, etc. places a hardship on agencies and would cause them to incur additional time and expense to review all formats. The SSB also asked for clarification of the consequences of a document that is inadvertently omitted from publication: "...would it affect the running of the 30-day comment period for proposed rules(?)...". We will adopt the rule with changes to clarify the meaning. If we make an error, we will publish a correction after you notify us. There is no time limit for notification of an error made by the Texas Register because the official text of a rule is the text on file with the Secretary of State and not the text published in the Texas Register or on file with the issuing state agency. It is the agency's responsibility to notify us in a timely manner if the version published in the Texas Register conflicts with the version filed by the agency. If an agency makes an error, the agency must notify the Texas Register that a correction is necessary before the rule becomes effective (usually 20 days after filing). We will not accept or publish a correction that conflicts with the version filed by the agency after the effective date. For corrections to proposed rules and other documents, we prefer to receive notification of an error within 20 days. Determination of adequate notice is an agency certifying official's responsibility. If a proposed rule inadvertently is omitted from an issue by the Texas Register, the 30-day notice period will not begin with the date on which the Texas Register should have published the rule, but with the date on which the rule actually is published. COMMENTS ON sec.91.61. ELECTRONIC PROCEDURES FOR FILING RULES AND MISCELLANEOUS DOCUMENTS. The SSB commented that the coding requirements are unclear. We are adopting the rule with changes to address the following questions. Must each subdivision in a rule be coded separately? Amended sections: yes. New sections: no. Every "" for new language and every opening bracket "[" must have a closing "" or closing bracket "]" in the same subdivision. For example: Use the "" code when you begin new language. Use the "" code at the end of the new language in that subdivision. Repeat the codes within each subdivision as needed. All text between the codes will be underlined. However, for new sections, just use the "" code before the section number at the beginning of the rule to underline the entire text of the rule. The purpose of the "" code and the stricter closing codes for amended rules is to simplify agencies' compliance with SB 1715 which requires all new language to be underlined and deleted text to be indicated with a strike-through. May the "" or "[ ]" codes be used for parts of a word? No. Add or delete a complete word or acronym. Does the requirement in subsection (b) "Use a hard return after each paragraph" signal that the Texas Register will reject an agency's rule submission if the agency uses two hard returns (a skipped line) between preamble paragraph and rule subdivisions? No. We will not reject an agency's document for using two hard returns or for using no hard returns. However, if you do not hit the return key at the end of each subdivision, the two subdivisions will be merged together when the rule is published. For example, if subsection (a) has two paragraphs and you do not hit the return key at the end of paragraph (1), then paragraph (2) will not begin on a separate line, but will be merged with paragraph (1). A second hard return does not present a problem. Is there a separate code, not set out in the rules, for underlining rule text? Is the "<etb>" code to signal the beginning of boldface and underlined text when used in rule text? No. The "<etb>" code will result in underlined text in rules. It will result in boldface text in miscellaneous documents. The Texas Register does not make available a code to create boldface text in rules because doing so might cause confusion. Before SB 1715 boldface text indicated new language. COMMENTS ON sec.91.63. SUBMISSION FORMS. The TWCC commented that subsection (b)(3) is not a method of delivering a submission and should be moved into its own subsection. The RRC commented that this section should address acknowledgments of receipt. The RRC and the SSB commented that the rule does not specify how many copies of the submission form are required. We are adopting the rule with a format change in response to the TWCC concern, and to specify that only one copy of a submission form is required. Subsection (a) concerning the TR-1 agency rule review form will be re-introduced in future rulemaking. COMMENTS ON sec.91.65. PROCEDURES FOR FILING RULES. The GLO, the TNRCC, the PUC, and RRC commented on proposed sec.91.65(a)(3) which limits agencies to one pending amendment at a time for a rule number. The GLO and PUC were opposed to the proposal. The TNRCC commented in favor, but recommended changes. The GLO commented that the limitation will impose great hardship on agencies, listing three examples of how the proposal would impair the GLO's ability to conduct its business and result in hampering the public's opportunity to comment on proposed rules. The PUC commented that the proposal to limit an agency to only one pending amendment per rule number places a significant and unnecessary burden on agencies with rapidly changing environments. The proposed change would impact PUC significantly because many of its existing rules were inadequately gapped, forcing PUC to segment its rules rather than adding new rules. PUC also commented that the Texas Register rules should permit agencies to propose new amendments upon adoption of a rule, rather than waiting until the effective date of a rule. The comments said the proposal will slow down agencies' rulemaking initiatives an additional 20 days. We disagree. Agencies may avoid any delay imposed by the proposal by dividing lengthy rules into shorter sections. Shorter sections are usually more readable. Agencies control their own gapping of rules. If an agency fills all the chapters and subchapters within its specified Part of the Texas Administrative Code, the agency may ask the Texas Register to administratively move the agency's part to permit expansion. The proposal will reduce errors and confusion caused by overlapping and conflicting amendments that are pending simultaneously on a single rule, but filed and published separately. The TNRCC commented in favor of the proposed limitation: "The regulated community can become confused with the language of a rule which is open for more than one set of revisions at a time. Also, the Texas Register and other agencies can encounter difficulty in tracking rule language development and effective dates if any errors occur in the processing of multiple rulemaking actions for a rule." The TNRCC and the GLO recommended that definition rules be excepted from the limitation. The RRC commented that the proposal should be clarified by adding the following wording: "This means that an agency may not propose amendments to different subsections of one section unless they are proposed simultaneously in the same filing. Agencies may not propose amendments to one subsection in one filing and then propose other amendments to a different subsection of that section in another filing until the first proposed amendments have been adopted and become effective." We agree. The rule is being adopted with changes to make definition sections the exception to the rule, and to add the suggested wording. The TDH and the TWCC commented on sec.91.65(c)(2)(C), concerning withdrawal of proposed rules. The commenters recommended clarification such as the following addition: "However, this does not preclude a new proposal of an identical or similar rule following rulemaking procedures for proposed rules as specified in sec.91.65(a) of the title." We agree. The rule is being adopted with the clarifying wording. The TDH and the TWCC commented on sec.91.65(d)(4), concerning emergency rules. The commenters recommended that the effectiveness of an emergency rule be changed from "immediately upon filing or on a stated date less than 30 days after filing" to read "immediately upon filing or on a stated date less than 20 days after filing." The commenters said 20 days would make the rule consistent with Texas Government Code, Chapter 2001 (APA), sec.2001.036(a)(2) concerning the adoption of rules. We proposed the "30 days" because that is the minimum notice period for a rule that is not an emergency. However, we will make the recommended change to "20 days." The TWCC commented on sec.91.65(b). The commenter said that subsection (b) misstates the APA provisions relating to the effective dates for adopted rules, and that paragraph (b)(2) incorrectly suggests that the Texas Register staff has the authority to make substantive corrections to rules. The term "substantive" should be replaced by the term "formatting." We agree, and we are adopting the rule with the recommended changes. The TWCC commented on sec.91.65(f), questioning the requirement that an agency formally repeal a rule rendered invalid by legislation, constitutional amendment, or court decision. The commenter noted that the public comment process is irrelevant and will not change the legislation, constitutional amendment, or court decision that rendered the rule invalid. Subsection (f) does not require an agency to take any action. However, we will not remove rules from the Texas Administrative Code unless an agency repeals them. Subsection (f) gives the public notice that the invalid rules are being removed. This is not a change from current Texas Register rules, and we are adopting this provision as proposed. However, we will consider the TWCC's comments for possible future rulemaking. If we determine that the Secretary of State has the authority to streamline the removal of invalid rules from the Texas Administrative Code, we may propose a change to this policy. The RRC commented on subsection (d), suggesting that the word "days" should be plural possessive: "...less than 30 days' notice...". In subsection (d)(5) the RRC suggested a change in wording to indicate that more than one emergency amendment may be made. We agree, and the rule is being adopted with the recommended changes. COMMENTS ON sec.91.67. RULE SUBMISSION PREAMBLES. The TDH, the GLO, the TNRCC, and the RRC, commented on sec.91.67. The commenters said the proposed rule omitted mention of the Administrative Procedure Act requirement for local employment impact statements, and that the wording of the proposed rule is confusing and inconsistent with the language in the Administrative Procedure Act. We agree with the comments, and adopt the rule with changed wording that is consistent with the Administrative Procedure Act. COMMENTS ON sec.91.71. NOTICE OF TEXAS DEPARTMENT OF INSURANCE FILINGS UNDER THE INSURANCE CODE, ARTICLE 5.96 AND ARTICLE 5.97. The TNRCC commented on a typographical error in subsection (a). The word "Article" should be plural, "Articles." We agree. COMMENTS ON sec.91.73. ADOPTION BY REFERENCE (ABR). The TDH, the GLO, the TNRCC, the RRC, the SSB, and the TWCC commented on sec.91.73. The commenters recommended that no revision date should be required for federal statutes and federal and state rules. We discourage agencies from using wording such as "...as amended in the future," but the rule is adopted with changes to exclude the revision date requirement for federal and state statutes and rules. The GLO commented that the rule does not make a distinction between "adoption" by reference and "incorporation" by reference. We disagree. The rule uses the term "adoption by reference." We will consider proposing a definition for this term in future rulemaking. At that time it may be appropriate to determine if "incorporation" means the same thing as adoption. The current Texas Register rules deliberately do not address the term "incorporation by reference." The Administrative Procedure Act does not use either term. The RRC commented that the rule does not specifically require that agencies file the ABR material with the Secretary of State. We agree with the comment and we may consider reintroducing this requirement in future rulemaking. The rule does not prohibit agencies from filing ABR material with the Texas Register, but in some instances the cost of filing a copy with the Texas Register may be expensive. The Texas Government Code (APA), sec.2002.014 does not specify that the information omitted from the Texas Register is to be filed with the Secretary of State. The TDH and other agencies have made suggestions regarding Adoption by Reference filings, and the somewhat related Memoranda of Understanding (MOU) filings. We anticipate reviewing these policies more extensively in future rulemaking. COMMENTS ON sec.91.75. PROCEDURES FOR FILING A FEDERALLY MANDATED DOCUMENT. The TNRCC commented that the wording of sec.91.75 is broad. We agree. The proposal is intended to establish filing procedures for Texas Government Code (APA), sec.2001.036(a)(3). The rule is adopted with changes to clarify the requirements. COMMENTS ON sec.91.77. GRAPHIC MATERIAL. The RRC and the TWCC commented on typographical errors in the section. "Tables and Graphic" should be spelled "Tables and Graphics." The RRC suggested revised wording for subsections (a) and (e). We agree that the suggested wording clarifies the rule and have included it. The RRC commented against the proposed requirement in subsection (b) to underline new language and strike through deleted language on proposed graphics, noting that this requirement would destroy the format of the graphics or might be impossible in the case of drawings. We agree. The rule is adopted with changes. Agencies will explain amendments to graphics in the preamble. The RRC questioned the necessity for agencies to file tables and graphics with an amended rule when the tables and graphics are not being amended. We agree it is unnecessary to file graphics which are not being amended. However, agencies should account for the graphics as they would any subdivision of a rule. We are adopting sec.91.77 with a change that allows agencies to designate a figure as "(No change)." COMMENTS ON sec.91.91. CHARGES FOR PRODUCTS. The RRC, the SSB, and the TWCC commented against sec.91.91 because the term "market value" is not explained in the rule or in the preamble. We agree. Although "market price" is a statutory term, we failed to explain it adequately in the proposal. We are required to sell the print Register at a reasonable fee fixed by the Secretary of State, but Government Code, sec.2002.0151 allows us to charge "market price" for "specialized value-added services related to the Texas Register." We are withdrawing proposed sec.91.91 in this issue and will repropose it at a future date. We also withdrew the proposed repeal of sec.91.121 and sec.91.122. Definition of Terms 1 TAC sec.91.1 The repeal is adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeal does not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801220 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Agency Liaison 1 TAC sec.91.12 The repeal is adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeal does not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801221 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Filing of Documents 1 TAC sec.sec.91.19, 91.21-91.26, 91.31 The repeals are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeals do not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801222 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Adoption by Reference: Adoption under Federal Mandate 1 TAC sec.sec.91.41-91.43 The repeals are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeals do not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801223 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Format 1 TAC sec.91.51 The repeal is adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeal does not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801224 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Classification Systems 1 TAC sec.sec.91.71-91.75 The repeals are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeals do not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801225 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Submission Forms 1 TAC sec.91.91, sec.91.97 The repeals are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeals do not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801226 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Subscriptions, Individual Copies, and Reprints 1 TAC sec.91.124 The repeal is adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeal does not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801227 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 Miscellaneous Provisions 1 TAC sec.sec.91.131-91.135 The repeals are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The repeals do not affect other statutes, articles, or codes. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801228 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 SUBCHAPTER A. Administrative 1 TAC sec.sec.91.1, 91.7, 91.9, 91.11, 91.13, 91.15, 91.17, 91.19, 91.21, 91.23, 91.25, 91.27, 91.29, 91.31 The new sections are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The new sections do not affect other statutes, articles, or codes. sec.91.1. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Administrative Code - The Texas Administrative Code, as established by the Government Code, Chapter 2002, Subchapter C, sec.2002.051, also referred to as TAC. (2) APA - Administrative Procedure Act, Government Code, Chapter 2001. (3) Agency - Any state board, commission, department, or officer having statewide jurisdiction, other than an agency wholly financed by federal funds, the legislature, the courts, and institutions of higher education, that makes rules or determines contested cases. (4) Certify - To ensure that submitted documents have been reviewed by legal counsel, whose responsibility it is under the APA to determine whether the rule action is within the agency's legal authority. (5) Certifying official - An individual authorized by an agency to certify documents submitted for filing with the Texas Register. (6) Code - The Texas Administrative Code established by the APA, also referred to as TAC. (7) Electronic transmission - The submission of electronic data to the Texas Register by telecommunications, file transfer protocol (FTP) via Internet, e- mail, or diskette. (8) Graphic material - Documents formatted in two or more columns as tables or as maps, charts, spread sheets, pictures, equations or as any other type of document that requires special formatting. (9) Liaison - An individual designated by an agency to act as its representative to the Texas Register. (10) Person - Any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character other than an agency. (11) Register - The Texas Register established by the Government Code, Chapter 2002, Subchapter B. (12) Rule - Any agency statement of general applicability that implements, interprets, or prescribes law or policy or describes the procedure or practice requirements of an agency. It also includes the amendment or repeal of a prior rule, but does not include a statement regarding only the internal management of a state agency not affecting private rights or procedures. (13) Section - A reference to a specific rule in the Texas Administrative Code. (14) Verify - To ensure that submitted documents have been reviewed by the agency liaison, are processed properly, and are correct in format, structure, and content. sec.91.9. Documents Accepted by the Texas Register. File the following documents with the Texas Register for publication: emergency, proposed, withdrawn, and adopted rules; notices of open meetings; appointments; executive orders of the Governor of Texas; summaries of requests for opinions, opinions, and open records decisions of the Attorney General of Texas; summaries of requests for opinions and opinions issued by the Texas Ethics Commission; election law opinions of the Texas Secretary of State; notices filed by agencies, regional councils of government, and the Texas State Library under the Government Code, Chapter 551; notices of proposals and adoptions filed by the Texas Department of Insurance pursuant to the Insurance Code, Article 5.96 and Article 5.97; proposal requests for private consultant services under the Government Code, Chapter 2254; Court of Criminal Appeal rules of appellate procedure and rules of criminal evidence under Texas Civil Statutes, Article 1811f, sec.3; notices filed by the Coastal Coordination Council under the Natural Resources Code, Chapter 33; and, with approval from the Texas Register, miscellaneous documents not required to be published by law. sec.91.13. Nonacceptance of Documents. (a) We may reject documents that do not conform to the Government Code and to the Texas Register rule requirements. We will notify the agency liaison in writing when a document fails to conform to our rules. With the permission of the agency liaison, we will attempt to correct a format error on its first occurrence. If the agency repeats the format error in a future filing, we will reject the document. If we reject a document, we will notify the liaison in writing within 10 days of the filing date explaining why the document is rejected. (b) Reasons for rejecting a document include the following: (1) document structure which does not conform to sec.91.23 of this title (relating to Structure; Terminology); (2) electronic format which does not conform to our procedures as outlined in sec.91.61 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents); and (3) filing procedures which do not conform to sec.91.65 of this title (relating to Procedures for Filing Rules). sec.91.15. Calculation of Effective Dates. (a) In computing a period of days, the first day is excluded and the last day is included. (b) If a number of months is to be computed by counting the months from a particular day, the period ends on the same numerical day in the concluding month as the day of the month from which the computation is begun. If there are not as many days in the concluding month as in the beginning month, the period ends on the last day of the concluding month. sec.91.17. Classification Systems. Use the following classification structure when promulgating rules. (1) We assign each agency to a title identified by an Arabic number and subject category, e.g., Title 1. Administration. (2) We assign each agency a Roman numeral part number to identify the agency within its title. The name of the part shall be the agency's name, e.g., Part IV. Office of the Secretary of State. (3) We assign a chapter range designated with Arabic numbers to each agency. Within that range, organize and name the chapters according to subject matter, e.g., Chapter 91. Texas Register. (4) You may subdivide a chapter into subchapters identified by capital letters. Name subchapters according to subject matter, e.g., Subchapter A. Administrative. (5) You may subdivide a subchapter into divisions identified by Arabic numbers. Name subdivisions according to subject matter, e.g., Division 1. General. (6) Do not indicate chapters, subchapters, divisions, rule numbers, and/or parts of a rule as reserved for future use. sec.91.19. Numbering Schemes. A rule number consists of the chapter number followed by a decimal point and the individual section number, e.g., sec.91.15. Neither the chapter number nor the section number may exceed four digits. Comply with paragraphs (1)-(4) of this section when you submit rules. (1) The proposed and adopted version of a rule must have the same rule number. (2) The number of a proposed rule which has been withdrawn may be used to identify another rule. (3) The number of a repealed rule may be used to identify another rule. (4) Do not amend rule numbers. To change a rule number, repeal and replace the rule. sec.91.21. Titles. Title all chapters, subchapters, divisions, and sections in accordance with the subject matter of the chapters, subchapters, divisions, and sections. In proposed rulemaking, show changes to titles with new and deleted language as required by sec.91.61 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents). sec.91.23. Structure; Terminology. (a) Follow the structure and order outlined in paragraphs (1)-(7) of this subsection when subdividing a rule. (1) The highest subdivision within a rule is a "subsection." You need not subdivide below this level. (A) When there are two or more subsections, designate them with a lower-cased letter in parenthesis, e.g., (a), (b), etc. (B) When there is only one subsection in a section, omit the "(a)." This is referred to as an "implied (a)." (2) The rule subdivision below a subsection is called a "paragraph" and is designated by an Arabic number in parenthesis, e.g., (1), (2), etc. (3) The rule subdivision below the paragraph is called a "subparagraph" and is designated by an upper-cased letter in parenthesis, e.g., (A), (B), etc. (4) The rule subdivision below the subparagraph is called a "clause" and is designated by a lower-cased Roman numeral in parenthesis, e.g., (i), (ii), etc. (5) The rule subdivision below the clause is called a "subclause" and is designated by an upper-cased Roman numeral in parenthesis, e.g., (I), (II), etc. (6) The rule subdivision below the subclause level is called an "item" and is designated by a lower-cased letter with a dash on both sides in parenthesis, e.g., (-a-), (-b-), etc. (7) The rule subdivision below the item is called a "subitem" and is designated by an Arabic numeral with a dash on both sides in parenthesis, e.g., (-1-), (-2- ), etc. (b) When subdividing a rule, follow a parallel outline format, i.e., no (a) without (b), no (1) without (2), etc., with the exception of the implied (a) described in subsection (a)(1)(B) of this section. (c) When amending an existing rule, you must account for all existing language. Within the rule structure, put new language before obsolete language. Use the codes as described in sec.91.61(c)(5), (6), and (9) of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents). Figure: 1 TAC 91.23(c) (d) When you amend a subdivision within a rule, follow the "No change" policy outlined in paragraphs (1)-(3) of this subsection. (1) When you amend only part of an existing rule, we print only the text of the affected subdivisions. Same-level subdivisions are labeled (No change.) Figure: 1 TAC 91.23(d)(1) (2) When you amend a subdivision of a rule below the subsection level, show the text of all the higher-level subdivisions which contain the amended subdivision. Figure: 1 TAC 91.23(d)(2) (3) When you renumber a subdivision that contains lower-level subdivisions, show the language contained in the lower-level subdivisions for clarification. Figure: 1 TAC 91.23(d)(3) (e) Do not reserve subdivisions within a rule for future expansion. (f) Follow any reference to another section or chapter in the same title with the phrase "of this title (relating to...)" with the title of the section or chapter inserted in the parenthesis. Follow a reference to a different subchapter in the same chapter with the phrase "of this chapter (relating to...)" with the title of the subchapter inserted in the parenthesis. It is not necessary to reference the same section, subchapter, or chapter name twice within a rule. (g) Cite any reference to a rule in another title with the title and section number(s) in accordance with sec.91.25(b) of this title (relating to Form of Citation). For example: 1 TAC sec.91.21. sec.91.29. Serialization of Documents To Be Published. If necessary, we will serialize documents submitted for publication. We publish serialized documents in consecutive regular issues. The earliest possible date of adoption for a proposal is determined by the issue date in which the serialization begins. sec.91.31. Correction of Error. (a) Notify us in writing if the Texas Register publishes your agency's submission with an error or omission. (b) Include the following information in the notification: (1) the name of the agency; (2) the date of the issue and the specific section of the Texas Register in which the error occurred (i.e., In Addition, Proposed Rules, etc.); and (3) the nature of the error, and whether it was made by the Texas Register or by the submitting agency. (c) We publish the corrections of errors in the "In Addition" section of the Texas Register. (d) We will not accept a correction that conflicts with the text on file with the Secretary of State after the effective date of a rule. (e) Except as provided in subsection (d) of this section, we will publish a correction in the next available issue of the Texas Register. If the Texas Register inadvertently omits a proposed rule from an issue, the 30-day notice period will not begin until the rule is actually published. Otherwise, determination of adequate notice is an agency's responsibility. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801229 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 SUBCHAPTER B. Electronic Filing Procedures 1 TAC sec.sec.91.61, 91.63, 91.65, 91.67, 91.69, 91.71, 91.73, 91.75, 91.77 The new sections are adopted under the Government Code, Chapter 2002, Subchapter B, sec.2002.017, which provides the Secretary of State with the authority to promulgate rules consistent with the code. The new sections do not affect other statutes, articles, or codes. sec.91.61. Electronic Procedures for Filing Rules and Miscellaneous Documents. (a) Submit documents in electronic format using one of the following methods: file transfer protocol (FTP), e-mail, or 3-1/2 inch diskettes. Submit files in the American Standard Code for Information Interchange (ASCII) format. ASCII means standard keyboard characters limited to those represented by a decimal 32 (a space) to a decimal 126 (a tilde). Characters above 127 (extended characters) are not acceptable without our permission. Name files using the date (month and date only) of the submission followed by a decimal point and the agency code assigned by the Texas Register. If you submit more than one file on the same day, insert a letter in sequence after the date and before the decimal point. For example: 0715.004 indicates that this file was sent on July 15 by the Office of the Secretary of State; 0715a.004 and 0715b.004 indicate a second and third file were sent on the same day. You may submit more than one document in an electronic file except that rules and miscellaneous documents must be submitted as separate files. If you include multiple submissions in an electronic file, insert the code *n (as defined in subsection (c)(10) of this section) between each submission. Include all appropriate language as required by sec.91.67 of this title (relating to Rule Submission Preambles) with each rule submission in the file. (b) All text in an electronic file must be flush left. Do not use tabs or indentations in the file. The preamble introduction statement is the first line of text in the file. Do not use extraneous header information in the file, i.e., title, part, chapter, etc. The submission form contains the necessary agency information. Use a hard return after each paragraph. (c) Enclose codes in < > brackets to designate new language, new paragraphs, italics, section symbols, and other formatting commands. The codes are as follows. (1) --This code is placed before the rule number of each new rule. This code is not used in an amended rule. (2) <*> -- This code is used in place of the section symbol. (3)

-- This code indicates a new paragraph. The new paragraph indicator is used in the text of miscellaneous documents and in rule preambles. (4) -- This code indicates italics in the preamble and text of a rule or in a miscellaneous submission. (5) -- This code indicates boldface type within miscellaneous documents and new language within proposed rule amendments. Within a rule subdivision, place the code before new language and the code after new language. Every code in a subdivision must have a closing code in the same subdivision. (6) -- This code indicates a return to regular typeface or the end of new language. (7) -- This code indicates a superscript and is inserted before the superscripted letter, word, or number. Insert after the superscripted letter, word, or number. (8) -- This code indicates a subscript and is inserted before the subscripted letter, word, or number. Insert after the subscripted letter, word, or number. (9) [ ] -- Brackets indicate deleted language in proposed amendments. Use brackets only with complete words or acronyms. Do not bracket out part of a word. Every opening bracket in a subdivision must have a closing bracket in the same subdivision. (10) *n -- This code indicates the end of a submission within a file comprised of multiple submissions. A submission consists of either the complete text of a miscellaneous document or a rulemaking document (preamble plus rule or rules). (d) After you use FTP to submit a document, fax the appropriate submission form as specified in sec.91.63 of this title (relating to Submission Forms). (e) After you transmit a file through e-mail, fax the appropriate submission form as specified in sec.91.63 of this title. (f) When you submit documents on diskette, format the diskette using DOS 3.1 or a newer version of the operating system. We accept high-density formatted diskettes. Diskettes must contain only the files being submitted for one particular publication in the Texas Register. We will reject diskettes containing files not related to the submission. We do not return diskettes to the issuing agency. You may request a diskette in exchange for the submitted diskette or periodically retrieve your diskettes. Attach a label to the diskette identifying the submitting agency and the file name used on the submission. Deliver or mail the diskette with the appropriate submission form(s) attached. (g) We may postpone publication of documents submitted on paper. (h) Label graphic material as specified in sec.91.77 of this title (relating to Graphic Material) and deliver it to the Texas Register by the deadline. Do not fax graphic material. (i) If we are unable to access a file, if the file does not match the submission form, if an error occurred in the creation of the ASCII file, or if the file is not coded correctly in accordance with subsection (c)(1)-(10) of this section, we will contact the liaison promptly. If time permits us to process the document without delaying production of the issue, we will ask the liaison to resubmit the file. If there is not sufficient time, we will hold the submission for the next issue. sec.91.63. Submission Forms. (a) One typed submission form certified and signed by the agency liaison and certifying official accompanies each document submitted to the Texas Register. The document types and corresponding forms are listed in paragraphs (1)-(5) of this subsection: (1) TR-2--rule submissions; (2) TR-3--open meeting submissions; (3) TR-4--miscellaneous submissions; (4) TR-5--Governor, Attorney General, Secretary of State, Texas Ethics Commission, and Department of Banking submissions; and (5) TR-6--notification pursuant to the Insurance Code, Chapter 5, Subchapter L. (b) Deliver submission forms to the Register by one of the following methods. (1) If you transmit a rule or miscellaneous document electronically, fax the submission form(s) immediately after successful transmission of the document. (2) If you submit a document on diskette, either deliver or mail the submission form(s) with the diskette attached. (c) We will notify agencies within two days of the filing deadline to acknowledge the receipt of submission forms. (d) List on the submission form the file name and means of transmission, i.e., diskette, internet, modem, or e-mail. See sec.91.61 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents). (e) You may reproduce all Texas Register submission forms from blank sample copies or electronic Word files provided by the Texas Register. You may duplicate the forms using your own software. (f) Do not alter the format of Texas Register submission forms listed in subsection (a) of this section without permission from the director of the Register. sec.91.65. Procedures for Filing Rules. (a) Proposed rules. The APA requires an agency to propose rules at least 30 days prior to adoption. When proposing rules, comply with the following procedures. (1) Notice of a proposed action follows rulemaking procedures as specified in sec.91.61 and sec.91.67 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents and Rule Submission Preambles). (2) Propose only one version of a new rule. (3) A rule will have only one pending amendment at a time with the exception of rules containing only definitions. (b) Adopted rules. The APA states that a rule takes effect 20 days after the date on which it is filed in the Office of the Secretary of State unless a later date is required by statute, specified in the rule, or required by federal mandate. When adopting rules, comply with the following procedures. (1) Notice of an adopted action follows rulemaking procedures as specified in sec.91.61 and sec.91.67 of this title. (2) When filing a rule adoption, incorporate any formatting changes made by the Texas Register staff to the proposal as published. If you submit the final version of the rules without accounting for these changes, we will reject the submission. (3) If you submit the final version of the adopted rules without eliminating old and new language coding, we will reject the submission. (4) Submit the text of new and amended rules even when they are adopted without changes and will not be republished in the Texas Register. (5) The proposed and adopted version of a rule must have the same rule number. (6) Do not withdraw an adopted rule. (c) Withdrawn rules. When withdrawing rules, comply with the following procedures. (1) Withdrawal of proposed rules. (A) You may withdraw a proposed rule action prior to its adoption or before the effective date of the automatic withdrawal (see paragraph (2) of this subsection) by submitting a submission form in accordance with sec.91.63 of this title (relating to Submission Forms). (B) The withdrawal takes effect immediately upon filing or on a stated date not later than 20 days after filing. The effective date may not be before the date of filing. (C) You may take no further action on a proposal which you have withdrawn; however, this does not preclude a new proposal of an identical or similar rule following rulemaking procedures for proposed rules as specified in subsection (a) of this section. (2) Automatic withdrawals. (A) We automatically withdraw a proposed rule six months after the date of publication in the Texas Register if the agency neither adopts nor withdraws it. (B) We publish the notice of the automatic withdrawal. The effective date of the automatic withdrawal is the day after the last day of the six-month period. (C) You may take no further action on the proposal after the expiration of the six-month period; however, this does not preclude a new proposal of an identical or similar rule following rulemaking procedures for proposed rules as specified in subsection (a) of this section. (d) Emergency rules. (1) Under the APA, sec.2001.034, you may promulgate emergency rulemaking action on less than 30 days' notice. (2) Notice of adoption of emergency action follows rulemaking procedures as specified in sec.91.61 and sec.91.67 of this title. (3) Emergency rulemaking action does not preclude proposed and final rulemaking action in accordance with the Government Code, Chapters 2001 and 2002. (4) Emergency action becomes effective immediately upon filing or on a stated date less than 20 days after filing. The effective date cannot be earlier than the filing date. The APA limits the effectiveness of emergency action to 120 days, renewable for no more than 60 days, for a maximum of 180 days. Calculate the period of effectiveness by counting the effective date as day one. File the renewal notice during the last 20 days of the original period of effectiveness. You may not renew the effective period after the expiration date. The expiration date is the day after the final full calendar day in the count. (5) After the original filing of an emergency rule, emergency amendments may be made to the original action as many times as needed during the 180-day period of effectiveness (120 days original period of effectiveness plus 60 days renewal of effectiveness). All such amendments expire on the original expiration date. Do not withdraw an emergency rule and file it a second time in order to extend the 180-day effective period. (e) Multiple rule filing. You may file more than one rule number in a submission, if the rules share the same chapter and, if applicable, the same subchapter or division. Do not submit repeals on a submission form containing new or amended rules. (f) Invalid rules. You must formally revise or repeal rules rendered invalid by legislation, constitutional amendment, or court decision in accordance with rulemaking procedures in this chapter. (g) Rule transfers. If legislation transfers rulemaking authority from one agency to another, the transferring and/or receiving agency requests that we administratively transfer the affected rules. The agency should send a written request to the director of the Texas Register. The written request will cite the legislation that requires this transfer and include a copy of the legislation, the effective date of the transfer, and a conversion chart containing the old and new chapters, subchapters (if applicable), and rule numbers affected by the transfer. We will notify the agencies of the transfer notice publication date. sec.91.67. Rule Submission Preambles. (a) A preamble is a narrative introduction to a rule submission containing the information cited in paragraphs (1)-(3) of this subsection. (1) Proposed rule submissions include the information required by Texas Government Code, sec.2001.024. (2) Adopted rule submissions include the information required by the Texas Government Code, sec.2001.033. (3) Emergency rule submissions include the information required by the Texas Government Code, sec.2001.034. (b) You may submit one preamble for all submissions which share the same chapter and fiscal impact note. The "common preamble" accompanies the submission with the lowest rule number. If a repeal and new rule submission have the same number, the common preamble accompanies the repeal. The common preamble addresses all the affected rules; however, each rule submission has its own statutory authority note. sec.91.71. Notice of Texas Department of Insurance Filings under the Insurance Code, Article 5.96 and Article 5.97. (a) Actions under the articles specified in this subsection are exempt from the requirements of APA and are subject to the requirements of the Insurance Code, Article 5.96 and Article 5.97, Chapter 5, Subchapter L. (b) Emergency action under Article 5.96 and Article 5.97 may become effective immediately on filing or on a stated date less than 15 days after filing. The action cannot have an effective date earlier than the file date. sec.91.73. Adoption by Reference (ABR). (a) A document which is being adopted by reference follows the same requirements as other rule actions specified in sec.91.61 and sec.91.65 of this title (relating to Electronic Procedures for Filing Rules and Miscellaneous Documents and Procedures for Filing Rules); however, the actual text of the ABR material need not conform to the Texas Register format requirements and will not be published in the Texas Register or TAC. You may adopt the following documents by reference: (1) federal statutes and regulations; (2) state statutes and regulations; (3) state plans, including those circulated under OMB Circular A-95 for review and comment; and (4) forms. (b) The director of the Texas Register must approve ABR information not listed in subsection (a)(1)-(4) of this section before you adopt it by reference. To be eligible for ABR the information must be cumbersome, expensive, or otherwise inexpedient to include in the Texas Register. (c) Give notice of intention to adopt by reference in the form of a numbered rule and, except for federal or state statutes or regulations, note the revision date of the ABR document. Except for rules adopting federal or state statutes or regulations, amend the rule to adopt a newer version of the ABR document. (d) Agencies are responsible for maintaining and distributing to interested parties all versions of the ABR. We are responsible only for maintaining the most current version of ABR material for public inspection purposes. sec.91.75. Procedures for Filing a Federally Mandated Document. (a) If you are required by federal mandate to implement a rule by a certain date, the rule is effective on the prescribed date. (b) If time allows, follow all format and content requirements for proposed rules as specified in sec.91.65(a) of this title (relating to Procedures for Filing Rules). (c) If federal law or rule specifies a date that does not allow time for notice of proposed action, follow all format and content requirements in the notice of adopted action as specified in sec.91.65(b) of this title. (d) The preamble will state the legal authority for which the rule is proposed or adopted pursuant to federal requirements. sec.91.77. Graphic Material. (a) Graphic material accompanying a rule appears in the Tables and Graphics section of the Texas Register. Label each graphic with a reference code comprised of the word Figure, the TAC citation, and the level of the rule that references the material. Example: "Figure: 34 TAC Section 3.334(a)(1)." The rule text must reference the same label at the appropriate level. (b) Explain in the preamble changes made to amended graphic material. Do not use the , [ ], , or <*> codes in graphic material. If a table or graphic attached to an amended subdivision is not amended or deleted, you may mark it as (No change.), e.g., "Figure: 34 TAC Section 3.334(a)(1) (No change.)" (c) Label a table or graphic within a preamble with the word "Figure," TAC citation, and the word "preamble." Example: "Figure: 34 TAC Chapter 3-- preamble." (d) Do not refer to the Tables and Graphics section of the Texas Register in rule text. Place all table citations at the end of the appropriate subdivision and not within the text of the subdivision. The figure label should not be the only text in a subdivision. (e) Provide a new or amended table or graphic with an adopted rule submission, whether or not the rule is being republished. You may be required to provide a complete table or graphic for publication in the Texas Administrative Code. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801230 Clark Ervin Assistant Secretary of State Office of the Secretary of State Effective date: February 17, 1998 Proposal publication date: July 29, 1997 For further information, please call: (512) 463-5561 PART V. General Services Commission CHAPTER 111.Executive Administration Division Memorandum of Understanding Between the Texas Department of Economic Development and the General Services Commission 1 TAC sec.111.25 The General Services Commission adopts new section sec.111.25, a memorandum of understanding (MOU) between the General Services Commission and the Texas Department of Economic Development (the "TDED") concerning cooperation in program planning, budgeting relating to procurement information, and certification and technical assistance to small and historically underutilized businesses. The new section is adopted without changes to the proposed text as published in the December 19, 1997, issue of the Texas Register (22 TexReg 12361). The new section allows for enactment of the Texas Government Code, Section 481.028 (Vernon 1998). The MOU will enhance opportunities, education, and knowledge of Historically Underutilized Businesses. No comments were received regarding the adoption of new section. The new section is adopted under the Texas Government Code, sec.481.028 and the Texas Government Code, Title 10, Subtitle D, Section 2161, which provides the General Services Commission with the authority to promulgate rules necessary to accomplish the purpose of that Chapter. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 26, 1998. TRD-9801179 Judy Ponder General Counsel General Services Commission Effective date: February 15, 1998 Proposal publication date: December 19, 1997 For further information, please call: (512) 463-3960 CHAPTER 115.Building and Property Services Division Space Allocation 1 TAC sec.115.50 The General Services Commission adopts an amendment to sec.115.50, concerning space allocation and the 153 square feet usable office space rule, without changes to the proposed text as published in the December 19, 1997, issue of the Texas Register (22 TexReg 12362). The amendment is being adopted to correct the old statutory cite for the State Purchasing and General Services Act referenced in subsection 115.50(a) to its current location under the Texas Government Code, Title 10, Subtitle D; and adds new language under subsection 115.50(g) concerning exemptions and/or exclusions to the 153 square feet rule. The amendments enable the commission to efficiently allocate facilities to state agencies for an emergency lease, negotiated lease with a political subdivision, and a negotiated lease in the absence of competition. No comments were received regarding the adoption of amendment. The amendment is adopted under the Texas Government Code, Title 10, Subtitle D., Chapter 2165, sec.2165.108, which provides the General Services Commission with the authority to promulgate rules necessary to accomplish the purpose of that Chapter. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 26, 1998. TRD-9801173 Judy Ponder General Counsel General Services Commission Effective date: February 15, 1998 Proposal publication date: December 19, 1997 For further information, please call: (512) 463-3960 PART X. Texas Department of Information Resources CHAPTER 201.Planning and Management of Information Resources Technologies SUBCHAPTER 1 TAC sec.201.2 The Department of Information Resources adopts new sec.201.2, concerning complaints, without changes to the proposed text as published in the October 31, 1997 issue of the Texas Register (22 TexReg 10593). The new section requires the department to notify consumers and service recipients of the name, mailing address, and telephone number of an identified employee of the department for the purpose of directing complaints to the department. The department received no comments regarding the proposed new section. The new section is proposed in accordance with Texas Government Code sec.2054.035(c), which requires the board of the department by rule to establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the department for the purpose of directing complaints to the department. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 27, 1998. TRD-9801201 C. J. Brandt, Jr. General Counsel Texas Department of Information Resources Effective date: February 16, 1998 Proposal publication date: October 31, 1997 For further information, please call: (512) 475-2153 1 TAC sec.201.13 The Department of Information Resources adopts an amendment to sec.201.13, concerning information resources standards, with changes to the proposed text as published in the September 12,1997, issue of the Texas Register (22 TexReg 9196). The effect of the amendment is to require state agencies to adhere to building wiring standards when wiring or re-wiring state-owned or state-leased space. The department received one comment regarding the proposed rule. The commenter suggested that the language in subparagraph (f)(2)(A)(i) of the proposed subsection should be deleted. This language had been derived from a recommendation issued by the department in 1993 and would have prohibited the use of an optional eight-position jack pin/pair assignment under a particular specified wiring standard. However, the commenter pointed out that the optional pin/pair assignment is now commonly in use. Because common industry wiring practice has evolved since the initial publication of the wiring recommendation in 1993, the department agrees with the comment and has deleted the language in question. Names of those making comments for and against the section: For: the University of Texas at Austin. Against: None. The amendment is adopted pursuant to the provisions of Texas Government Code, sec.2054.051(b), which requires the department to develop and publish standards relating to information resource management by state agencies, and Texas Government Code, sec.2054.052(a), which permits the department to adopt rules as necessary to implement its responsibilities. The amendment is also adopted in accordance with the provisions of House Bill 1, 75th Legislature, Article IX, sec.171. sec.201.13.Information Resource Standards. (a)-(e) (No change.) (f) Communications Wiring Standards for State Facilities. (1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings unless the context clearly indicates otherwise. ANSI -- the American National Standards Institute. EIA -- the Electronics Industry Association. TIA -- the Telecommunications Industry Association. (2) All state agencies will adhere to the following standards when wiring or re- wiring state-owned or state-leased space: (A) ANSI/EIA/TIA-568-1995, Commercial Building Telecommunications Wiring Standard or its most recent successor document. This applies to the telecommunications wiring for buildings that are office-oriented and when ANSI/EIA/TIA-570-1991 is not selected. The term "commercial enterprises" is used in ANSI/EIA/TIA-568-1991 to differentiate between office buildings and buildings designed for industrial enterprises. ST-type fiber connectors shall be used for fiber optic terminations. (B) ANSI/EIA/TIA-570-1991, Residential and Light Commercial Building Telecommunications Wiring Standard or its most recent successor document, when planning and designing premises-wiring systems intended for connecting one to four exchange access lines to various types of customer-premises equipment when ANSI/EIA/TIA-568-1991 is not selected. (C) ANSI/EIA/TIA-569-1990, Commercial Building Telecommunications Pathways and Spaces or its most recent successor document, when planning and designing state- owned and state-leased space to accommodate telecommunications system wiring. (D) ANSI/EIA/TIA-606-1993, Administration Standard for the Telecommunications Infrastructure of Commercial Buildings or its most recent successor document, when documenting and administering telecommunications infrastructures in state- owned and state-leased space. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 27, 1998. TRD-9801199 C. J. Brandt, Jr. General Counsel Texas Department of Information Resources Effective date: February 16, 1998 Proposal publication date: September 12, 1997 For further information, please call: (512) 475-2153 1 TAC sec.201.16 The Department of Information Resources adopts new sec.201.16, concerning minimum standards for meetings held by videoconference call, without changes to the proposed text as published in the November 7, 1997 issue of the Texas Register (22 TexReg 10870). The new section requires governmental bodies to adhere to certain technical and operational standards when holding an open or closed meeting by videoconference call. The department received no comments regarding the proposed new section. The section is adopted in accordance with Texas Government Code sec.551.126(h), which requires the department by rule to specify minimum standards for audio and video signals at a meeting held by videoconference call. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 27, 1998. TRD-9801202 C. J. Brandt, Jr. General Counsel Texas Department of Information Resources Effective date: February 16, 1998 Proposal publication date: November 7, 1997 For further information, please call: (512) 475-2153 TITLE 7. BANKING AND SECURITIES PART VI. Credit Union Department CHAPTER 91.Chartering, Operations, Mergers, Liquidations Loans 7 TAC sec.91.705 The Texas Credit Union Commission adopts an amendment to sec.91.705, concerning loans to credit union officials, with changes to the proposed text as published in the October 31, 1997 issue of the Texas Register (22 TexReg 10594). No substantive change was made as proposed. The amendment will increase the dollar amount of secured credit a credit union may extend to any one official without seeking prior approval from the board of directors, and will set a limit on the aggregate amount of loans to credit union officials as a whole that a credit union may have outstanding at any one time. Increasing the secured credit dollar threshold is warranted given current economic conditions and the higher price of automobiles and other tangible goods in today's market place. Instituting an aggregate limit for loans to officials will ensure that a credit union has the ability to meet its other members' lending needs. The amendment also allows the credit union to apply to the commissioner for a waiver from the aggregate limit, and establishes reporting requirements. Comments generally in support of the amendment were received from the Texas Credit Union League and Dallas Teachers Credit Union. One comment received indicated that additional wording is needed to clarify the commission's intention of having the 20% aggregate limit apply to all loans made to all credit union officials and senior executive staff, along with loans made to those persons' immediate family members. Therefore, the commission added the word "all" to subsection (d) after the words "guaranteed by", made plural the proceeding nouns, and changed the wording "any such individual" to "all such individuals." Another comment made relates to the commission requiring that the report described in subsection (e) include a statement regarding compliance with loan policies for each loan made under this rule. The commenting party believes the use of such boilerplate language will cause the requirement to lose its usefulness. Furthermore, as the board is responsible for developing loan policies in the first place, board members should know whether a reported transaction is compliant. Therefore, placing such a statement in the report could be perceived as encouraging less diligence on the board's part. The commission, however, disagrees with this comment. Because directors and senior executive staff have a responsibility to ensure that a credit union operates in a safe and sound manner and practices are in compliance with board and internal policies, it is imperative that loans made to those individuals withstand scrutiny. Unless a loan is in excess of the amounts contained in the rule, the board is merely being notified of the loans made to credit union officials and senior executive staff. The statement of compliance, therefore, will provide the board with a greater degree of comfort that those loans are above reproach, as well as make the board aware of any loans to officials that are out of policy compliance. Also in regard to subsection (e), a comment was made that it would be more appropriate to identify the type of collateral taken on the loan rather than the purpose of the loan as currently required for the report described in subsection (e). The commission believes that identification of the collateral type will allow the credit union to identify the loans that would require approval by the board prior to the loan being made, which was the original intent of requiring the purpose to be stated. The commission has reflected this recommendation in the final rule. The amendment is adopted under the provisions of the Texas Finance Code, sec.124.201 and sec.124.202, which provide the Credit Union Commission with the authority to establish, by rule, lending conditions and limits for loans to directors, employees, and credit committee members. The specific section affected by this amendment is Texas Finance Code, sec.124.202. sec.91.705.Loans to Officials. (a) The rates, terms, conditions, and availability of any loan or extension of credit made to, or endorsed or guaranteed by, a director, employee, loan officer, credit manager, members of the credit committee or an immediate family member of any such individual shall not be more favorable than the rates, terms, conditions, and availability of comparable loans or credit to other credit union members. (b) Before making a loan, extending credit, or becoming contractually liable to make a loan or extend credit to a director, employee, loan officer, credit manager, members of the credit committee or members of their immediate families, the board of directors must approve the transaction if the loan or the extension of credit or aggregate of outstanding loans or extensions of credit to any one person, the person's business interests, and members of the person's immediate family is greater than $25,000 if unsecured credit or $75,000 if secured credit, plus pledged shares and deposits. A loan secured by a lien on improved residential real estate which is the homestead and is actually occupied by the borrower shall not be subject to, or included in the aggregate amounts included in this section. (c) For purposes of this section, the term immediate family member includes a spouse or other family member living in the same household. (d) The aggregate of all outstanding loans or extensions of credit made to, or endorsed or guaranteed by all directors, committee members, senior executive staff, and immediate family members of all such individuals shall not exceed 20% of the credit union's total assets. The requirements described in this subsection shall apply unless waived in writing by the commissioner for good cause shown. (e) The president shall make a report to the board of directors on all loans approved since the previous board meeting for any director, committee member, senior executive staff or immediate family members of such individual. The report shall consist of at least the official's loan number, the amount of the loan, the type of collateral securing the loan, if applicable, the aggregate amount of indebtedness to the credit union, and a statement regarding compliance with loan policies. The board of directors must review this loan approval report at each regular monthly board meeting. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801289 Harold E. Feeney Commissioner Credit Union Department Effective date: February 17, 1998 Proposal publication date: October 31, 1997 For further information, please call: (512) 837-9236 CHAPTER 97.Commission Policies and Administrative Rules General Provisions 7 TAC sec.97.103 The Texas Credit Union Commission adopts new sec.97.103, concerning recusal and disqualification of commission members, with changes to the proposed text published in the October 31, 1997, issue of the Texas Register (22 TexReg 10595). Adoption of the rule is necessary to comply with new statutory requirements enacted by the passage of Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated, sec.15.208), which requires the Commission to adopt rules for recusal by its members. The new rule requires a member who has a personal or private interest in a matter to disqualify him- or herself from any participation in the decision. Comments generally supporting adoption of the rule were received from the Texas Credit Union League and from Dallas Teachers Credit Union. One comment related to the fact that there are two basic conflict of interest provisions in the Texas Finance Code for commission members, and the proposed rule does not make a distinction between them. One provision states that no commission member may act on matters under consideration which directly affect any credit union of which the member of the commission is an officer, director, or member. The second provision requires recusal of members who have a personal or private interest in a measure, proposal, or decision pending before the commission. In response, the commission has expanded subsection (a) to address both provisions. Even if the law might not expressly prohibit a member from participating in the discussion of a matter directly affecting a credit union with which the member is affiliated, participation in the discussion would allow the commission member to advocate a position which is basically what a vote entails. Therefore, the proposed rule precludes a member from both discussing and voting on such matters. Another comment recommended deletion of the portion of the text in subsection (b) that states the term "personal or private interest" includes a direct personal or financial interest in a credit union which is the subject of commission action. The commenting party opines that, as written, a member having a small dollar balance in a credit union's share account would potentially need to recuse him-or herself from any discussion relating to that credit union specifically or to all credit unions in general. Should the commission not make the recommended change, the commenting parting suggests language should be added to further define the term "personal or financial interest." In response, the commission believes that a change to proposed subsection (b) is not necessary. The proposed rule references Section 572.058 of the Texas Government Code in defining what constitutes a "personal or private interest." The definition in that citation excludes an individual engaged in a profession, trade, or occupation from having a personal or private interest in a matter if the individual's interest is the same as all others similarly engaged in the profession, trade, or occupation. Therefore, a commission member whose interest in a matter before the commission is the same as that of other credit union members would not be considered to have a personal or private interest for the purposes of this rule. Furthermore, since the commission members must adhere to the provisions of Texas Government Code and have the benefit of any case law precedents related thereto, any additions to the proposed rule would be redundant. Both parties commented that a commission member could potentially have an personal or private interest in a matter before the commission that is not credit union related, and that it may be appropriate to address such a circumstance in subsection (b). In response, the Commission has added language to subsection (b) to include a direct personal or financial interest in other matters subject to commission action. The new section is adopted under Texas Finance Code, sec.15.402, which provides the Credit Union Commission with the authority to adopt reasonable rules; and under Section 9 of Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (codified at Texas Finance Code Annotated, sec.15.208), which requires the Commission to adopt rules for recusal by its members. sec.97.103.Recusal Or Disqualificaiton Of Commission Members. (a) A commission member may not vote on or otherwise participate in the deliberation or decision of a matter pending before the commission: (1) in which the commission member has a personal or private interest; or (2) which directly affects the credit union of which the commission member is an officer, director, or member. (b) The term "personal or private interest" shall be given the meaning as prescribed in Texas Government Code, sec.572.058, and includes a direct personal or financial interest in a credit union or other matter which is the subject of commission action. (c) A commission member who is disqualified under subsection (a) of this section shall publicly disclose the fact to the commission in a meeting called and held in compliance with the Open Meetings Act, Texas Government Code, Chapter 551. The disclosure shall be entered in the minutes of the meeting. (d) A commission member who is recused or disqualified will be counted in determining a quorum. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801292 Harold E. Feeney Commissioner Credit Union Department Effective date: February 17, 1998 Proposal publication date: October 31, 1997 For further information, please call: (512) 837-9236 7 TAC sec.97.106 The Texas Credit Union Commission adopts new sec.97.106, concerning the methods by which members of credit unions are notified of the name, mailing address, and telephone number of the department for the purpose of directing complaints to the department, with only a minor, nonsubstantive change from the proposed text published in the October 31, 1997, issue of the Texas Register (22 TexReg 10596). Adoption of the rule is necessary to comply with new statutory requirements enacted by the passage of Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated, sec.15.409), which requires the commission to adopt rules governing the methods by which credit union members will be notified that they may file complaints with the department. The commission selected the method of providing notification through signage in the place of business of each credit union regulated by the department. Comments in support of the adoption of the rule were received from the Texas Credit Union League and from Dallas Teachers Credit Union. Dallas Teachers Credit Union recommended a minor technical change in the form of deleting the word "conspicuously" from subsection (a), based on the belief that the word is unnecessary given the requirements set forth in subsection (b). As a result of this comment, the Commission has omitted the word "conspicuously" from subsection (a). The new section is adopted under Texas Finance Code, sec.15.402, which provides the Credit Union Commission with the authority to adopt reasonable rules; and under Section 13 of Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated, sec.15.409), which requires the Commission to adopt rules governing the methods by which credit union members will be notified that they may file complaints with the department. sec.97.106.Complaint Notice. (a) Every credit union shall post, in its principal place of business and all other offices and service facilities, a public notice which provides the name, address, and telephone number of the department. The notice shall further inform members that complaints to the department may be directed to that address or telephone number. (b) The notice shall be printed in at least 14-point type or larger, and shall be clearly visible in a public entrance or lobby area. The commissioner shall prescribe the design and content of the notice to be used for this purpose. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 28, 1998. TRD-9801293 Harold E. Feeney Commissioner Credit Union Department Effective date: February 17, 1998 Proposal publication date: October 31, 1997 For further information, please call: (512) 837-9236 TITLE 16. ECONOMIC REGULATION PART IV. Texas Department of Licensing and Regulation CHAPTER 70. Industrialized Housing and Buildings 16 TAC sec.sec.70.20, 70.22, 70.23, 70.50, 70.60, 70.61, 70.70, 70.71, 70.75, 70.80 The Texas Department of Licensing and Regulation adopts amendments to sec.sec.70.20, 70.22, 70.23, 70.50, 70.60, 70.61, 70.70, 70.71, 70.75 and 70.80 concerning industrialized housing and buildings. Sections 70.20, 70.50, 70.71 and 70.80 are adopted with changes to the proposed text as published in the September 19, 1997, issue of the Texas Register (22 TexReg 9405). Sections 70.22, 70.23, 70.60, 70.61, 70.70 and 70.75 are adopted without changes and will not be republished. The amendment in sec.70.20 broadens the scope of the installation permit as recommended by the Texas Industrialized Building Code Council. The amendments to sec.70.22 and sec.70.23 will permit the acceptance of the Building Officials and Code Administrators International, Inc. (BOCA) certifications as well as the International Conference of Building Officials (ICBO) and the Southern Building Code Congress International (SBCCI) certifications. The amendments to sec.70.50 clarify changes in reporting requirements due to the addition of the installation permit and the changes in sec.70.60 clarify that the Industrialized Building Code Council is responsible for establishing procedures for certification inspections. The amendments to sec.70.61(a) clarify that third party inspection agencies and third party inspectors must conduct Texas IHB inspections in accordance with the procedures established by the Council. The changes in sec.70.61(c) clarify that manufacturers must designate in writing the third party inspection agency responsible for inspections in their facility. The amendments in sec.70.70 eliminate the requirement that plans be submitted on 8-1/2 inch by 11 inch pages. The changes in sec.70.71 from what was proposed is to correct a typographical error and the changes in sec.70.75 revises permit/owner information requirements to include installation permit holders. The changes in sec.70.80 (f), (g), (i) and (j) will permit travel costs to be reimbursed directly to contract providers. The amendments to sec.70.80(h) and (k) raise fees for decals and insignia, eliminate fees for alteration inspections, and add a fee for an installation permit. The Department received a recommendation from the Texas Industrialized Building Code Council in favor of the proposed amendments with minor changes. The amendments will function by increasing program integrity. The amendments are adopted under Texas Revised Civil Statutes Annotated, article 5221f-1 (Vernon 1989) which provides the Texas Department of Licensing and Regulation the authority to promulgate and enforce a code of rules and take action necessary to assure compliance with the intent and purpose of the Act. The Article that is affected by the amendment is Texas Revised Civil Statutes Annotated, article 5221f-1 (Vernon 1989). sec.70.20. Registration of Manufacturers and Industrialized Builders. Manufacturers and industrialized builders shall not engage in any business activity relating to the construction or location of industrialized housing or buildings without being registered with the department. (1) An application for registration shall be submitted on a form supplied by the department, and shall contain such information as may be required by the department. The application must be verified under oath by the owner of a sole proprietorship, the managing partner of a partnership, or the chief executive or chief operating officer of a corporation. The application must be accompanied by the fee set forth in sec.70.70 of this title (relating to Commission Fees). (2) A person who does not purchase industrialized housing or buildings from a manufacturer for sale or lease to the public may file for an installation permit in lieu of registering as an industrialized builder. A person who is not registered as an industrialized builder and who buys or leases industrialized housing or buildings from an industrialized builder and assumes responsibility for the installation of the unit or units shall apply for an installation permit. The application shall be submitted on a form supplied by the department and shall contain such information as may be required by the Department. A separate application must be submitted for each building containing industrialized housing and buildings modules or modular components. The application must be accompanied by the fee set forth in sec.70.80 of this title (relating to Commission Fees). (3) The registration shall be valid for 12 months and must be renewed annually. Every corporate entity must be separately registered. Each separate manufacturing facility must be registered; a manufacturing facility is separate if it is not on property which is contiguous to a registered manufacturing facility. An industrialized builder must register each separate sales office but is not required to register each job location. (4) A registered manufacturer or industrialized builder shall notify the department in writing within 10 days if: (A) the corporate or firm name is changed; (B) the main address of the registrant is changed; (C) there is a change in 25% or more of the ownership interest of the company within a 12-month period; (D) the location of any manufacturing facility is changed; (E) a new manufacturing facility is established; or (F) there are changes in principal officers of the firm. (5) A manufacturer certified pursuant to sec.70.61 of this title (relating to Responsibilities of the Department - Plant Certification), whose registration expires shall have his certification revoked if the registration is not renewed within 30 day of the expiration date. A manufacturer whose certification has been revoked must undergo another certification inspection to reinstate the certification. (6) An application for original registration or renewal may be rejected if any information contained on, or submitted with, the application is incorrect. The certificate of registration may be revoked or suspended or a penalty or fine may be imposed for any violation of the Act, violation of the rules and regulations in this chapter or administrative orders of the department, or violations of the instructions and determinations of the council in accordance with sec.70.90 of this title (relating to Sanctions - Administrative Sanctions/Penalties), and sec.70.91 of this title (relating to Revocation or Suspension because of a Criminal Conviction). sec.70.50. Manufacturer's and Builder's Monthly Reports. (a) The manufacturer shall submit a monthly report to the department, of all industrialized housing, buildings, modules, and modular components which were constructed and to which decals and insignia were applied during the month. The manufacturer shall keep a copy of the monthly report on file for a minimum of five years. The report must state the name and address of the industrialized builder to whom the structures, modules, or modular components were sold, consigned, or shipped. If any such units were produced and stored, the report must state the storage location. The report shall also contain: (1)-(2) (No change.) (3) the registration number of the industrialized builder (as assigned by the department) to whom the units were sold, consigned, and shipped or the installation permit number issued by the Department; (4)-(7) (No Change.) (b) Each industrialized builder shall submit a monthly report to the department of all industrialized housing, buildings, modules, and modular components which were installed during the month. A copy of the report shall be kept on file by the industrialized builder for a minimum of five years. The report shall contain: (1) (No change.) (2) identification of the type of foundation system in accordance with the following: (A) if the unit was installed within the corporate limits of a city, the name of the city responsible for the site inspection; (B) if the unit was installed outside the corporate limits of a city and if the builder is not responsible for the installation and site work, then identification of the installation permit number or builder registration number obtained from the Department by the person responsible; (C) if the unit was installed outside the corporate limits of a city and if the builder is responsible for the installation and site work and the unit is installed on a permanent foundation system, identification of the Texas approved inspector that performed the site inspection; or (D) if the unit was installed outside the corporate limits of a city and if the builder is responsible for the installation and the site work and the unit is installed on a temporary foundation system, then the builder shall provide a notarized statement certifying that the unit was installed on a temporary foundation system in compliance with the engineered plans and all applicable codes. (3)-(5) (No change.) (c)-(d) (No change.) sec.70.71. Responsibilities of the Registrants - Manufacturer's Data Plate. (a) The manufacturer will attach a data plate to each dwelling unit of a residential structure containing industrialized housing and buildings modules and to each appropriate unit of a commercial structure containing industrialized housing and buildings modules. The data plate must be made of a material that will not deteriorate over time and be permanently placed so that it cannot be removed without destruction. The data plate will be placed on or near the electrical distribution panel or in some other easily accessible location as designated in the approved design package. (b) The data plate must contain, as a minimum, the following information: (1) the manufacturer's name, registration number, and address; (2) (No change.) (3) the State decal numbers; (4)-(11) (No change.) (c) All modular components shall be marked with, or otherwise have permanently affixed, a data plate containing the following information: (1) the manufacturer's name, registration number, and address; (2) the serial or identification number of the component or components; (3) the State insignia number or numbers; (4) the name and date of applicable codes; (5) the design loads for the component; and (6) any special conditions of use for the component. (d) The information required in subsection (c) of this section may be placed in the crate in which the component or components are shipped or on a tag attached to the crate or to the component if the component is such that the information may not be marked or permanently affixed to the component. (e) Structures designated by the manufacturer as not being designed for placement on a permanent foundation shall have a manufacturer's seal permanently attached inside the door of the electrical panel or near the entrance door if the unit does not have an electrical panel. The seal shall not be smaller than 2 by 1 - 1/2 inches and shall be constructed of a metallic alloy. The seal must contain the following capitalized statement: THIS STRUCTURE IS NOT DESIGNED FOR PLACEMENT ON A PERMANENT FOUNDATION AND DOES NOT MEET THE REQUIREMENTS OF TEXAS CIVIL STATUTES, ARTICLE 5221f-1, INDUSTRIALIZED HOUSING AND BUILDINGS. sec.70.80. Commission Fees. (a)-(e) (No change.) (f) The fee for department personnel for certification inspections at a manufacturing facility shall be $40 per hour. Travel and per diem costs shall be reimbursed by the manufacturer in accordance with the current rate as established in the current Appropriations Act. The department shall present a billing statement to the manufacturer at the completion of the inspection that is payable upon receipt. (g) When the department acts as a design review agency, the fee for such services is $40 per hour. The manufacturer for whom the services are performed shall pay the fee before approval of the designs, plans, specifications, compliance control documents, and installation manuals and before the release of the documents to the manufacturer. Travel and per diem costs shall be reimbursed by the manufacturer in accordance with the current rate as established in the current Appropriations Act. (h) The fees for issuing decals and insignia are: (1) modules (decals): $0.07 per square foot of floor area, with a minimum of $25 for each decal; and (2) modular component (insignia): $0.02 per square foot of surface area with a minimum of $0.60 for each insignia or $0.07 per square foot of floor area with a minimum of $15 for each insignia. (i) The fee for department personnel for special inspections shall be $40 per hour. A special inspection is any inspection for industrialized housing and buildings that is not covered by other fees. The Department will present a billing statement at the conclusion of the inspection that is payable upon receipt. Travel and per diem costs shall be reimbursed in accordance with the current rate as established in the current Appropriation Act. (j) The fee for department monitoring of design review agencies and third party inspection agencies outside headquarters shall be $40 per monitor hour. Travel and per diem costs shall be reimbursed in accordance with the current rate as established in the current Appropriations Act. The department will present the agency or manufacturer a statement at the conclusion of the monitoring trip, and it is payable upon receipt. (k) The fee for an installation permit shall be $75 for each building containing industrialized housing and buildings modules or modular components. A separate application must be submitted for each building containing industrialized housing and buildings modules or modular components. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on February 2, 1998. TRD-9801441 Tommy V. Smith Executive Director Texas Department of Licensing and Regulation Effective date: March 16, 1998 Proposal publication date: September 19, 1997 For further information, please call: (512) 463-7357 TITLE 25. HEALTH SERVICES PART VII. Texas Medical Disclousre Panel CHAPTER 601.Informed Consent 25 TAC sec.sec.601.4, 601.6, 601.8 The Texas Medical Disclosure Panel (panel), by majority vote of the panel on January 13, 1998, enters this order finally adopting amendments to sec.601.4 and sec.601.6, and adopting new sec.601.8, concerning informed consent with changes to text as published in the October 31, 1997, issue of the Texas Register (22 TexReg 10615). The proposed amendments and new section were published in the October 17, 1997, issue of the Texas Register (22 TexReg 10236) in error without the proposed disclosure and consent forms, and with the wrong certifying official. The proposal was republished correctly in the October 31, 1997. Section 601.4 adopts the form to be used to inform a patient or person authorized to consent for the patient of the possible risks and hazards involved in the medical treatments and surgical procedures named on the form. The amendment to sec.601.4 adds language providing exceptions to using the general disclosure and consent form. The language addresses the exceptions to using the general disclosure and consent form for radiation therapy, electroconvulsive therapy, and the new exception, hysterectomy procedures. There are no changes to the disclosure and consent form for medical and surgical procedures. Section 601.4(a) is adopted with minor clarification changes. Section 601.6 provides a history of rule actions. The amendment to sec.601.6 updates the history of rules changes, by including the rules adopted by the panel effective October 3, 1995, as stated in new subsection (g); the rules adopted by the panel effective October 23, 1997, as stated in new subsection (h); and these rules which were adopted by the panel on January 13, 1998, with an effective date of February 18, 1998, as stated in new subsection (i). Section 601.6 (g), (h), and (i) is adopted with minor clarification changes. The panel clarified language in subsection (i) to include the effective date of the adoption and to include the legislative directive that the section applies to hysterectomies performed at least 90 days following publication of the adopted section in the Texas Register. New sec.601.8 establishes a new disclosure and consent form which shall be used by a physician or health care provider to inform a patient or person authorized to consent for the patient of the possible risks and hazards involved in performing a hysterectomy. The form was established in response to House Bill 723, which amended the Medical Liability and Insurance Improvement Act of Texas (Act), Texas Civil Statutes, Article 4590i, Subchapter F, by adding sec.6.08, which requires the panel to develop and prepare written materials to inform a patient or person authorized to consent for a patient of the possible risks and hazards of a hysterectomy. The form includes the information required by HB 723 and incorporates current language from the general disclosure and consent form to meet the requirements of sec.6.08(d) of the Act, which requires a physician or health care provider to obtain informed consent under both sec.6.05 and sec.6.08 of the Act from a patient or person authorized to consent for the patient before performing a hysterectomy. The form also incorporates the risks associated with the use of blood and blood byproducts previously adopted by the panel. Sections 6.08(a)-(b) of the Medical Liability and Insurance Act required the panel to develop and prepare the materials to be available in English, Spanish, and any other language the panel considers appropriate. The panel determined that it was only appropriate to prepare the form in English and Spanish at this time. The English form is published as part of the rule. Both English and Spanish versions of the form will be available from the Texas Department of Health. In response to a comment received during the comment period, the panel has included a designation for hysterectomies performed using endoscopy/laparoscopy, together with the risks and hazards for same, to the consent form. The panel has also added clarifying language to specify that the form is required for hysterectomies performed at least 90 days after publication of the adopted section, and that the Spanish version is available from the Texas Department of Health. The following is a summary of written comments received during the comment period ending December 1, 1997. All comments concern the disclosure and consent form for a hysterectomy in sec.601.8. COMMENT: A commenter suggested that the language contained in the "NOTICE" portion of the form be changed to read, "Refusal to consent to a hysterectomy will not result in the withdrawal or withholding of any benefits provided by programs or projects receiving federal funds or state funds or otherwise affect your right to future care or treatment." The commenter also suggested changing the language in the third sentence of paragraph six of the consent form to read, "I understand that I have the right to seek a second opinion from a second physician if I so desire." RESPONSE: The panel appreciates the comment but determined that the suggested changes would exceed the panel's statutory authority since the language in the proposed rule is mandated by House Bill 723. No change was made as a result of the comments. COMMENT: A commenter stated that "Section 1 of House Bill 723, sec.sec.6.08(a)- (b) of the Medical Liability Insurance Act requires the panel to develop and prepare materials available in English, Spanish, and any other language the panel considers appropriate. While the proposed form includes the required statutory material in English, it does not provide the material in Spanish as required by sec.6.08(b). Also, the proposed rule does not specify if the panel considers any other language as appropriate." The commenter asked, since proposed sec.601.8 provided that, "the form shall be available in both English and Spanish," whether it is assumed that the panel has determined that no other language is appropriate at this time." The commenter further recommended that, since sec.2 of House Bill 723 states that the panel shall prescribe the form and content of the materials required to be distributed under sec.6.08, the panel should also publish the required form in Spanish. RESPONSE: No comments were received suggesting that the form be made available in any other languages. The panel has determined that the form shall be available only in English and Spanish at this time. However, the provider must present the information in a manner understandable to the individual patient regardless of what languages the panel has deemed be made available pursuant to House Bill 723. In response to the commenter's recommendation that the panel publish the form in Spanish, on advice of the Texas Department of Health's Office of General Counsel (OGC), House Bill 723 does not require the panel to publish the form in Spanish. Both the English and the Spanish version of the form will be provided by the Texas Department of Health. The OGC believes that this meets the intent of House Bill 723. No change was made as a result of the comments. COMMENT: One commenter suggested that the panel include a Spanish version of the form for Spanish speaking patients as required by House Bill 723, and add a signature line for an interpreter to sign if the patient is in need of an interpreter to understand the consent form. The commenter further stated that by adding these components the form would meet the federal Medicaid requirement. RESPONSE: The panel appreciates the comments and, as previously noted, is not publishing the form in Spanish. The Spanish version of the form will be available from the Texas Department of Health. In response to the commenter's other concern, providers are free to include additional documentation when an interpreter is used. No change was made as a result of the comments. COMMENT: One commenter expressed concern, "that as a result of the new law it appears a facility may need three consents prior to performing a hysterectomy," referencing the new Texas Medical Disclosure Panel consent form, the consent form with National Heritage Insurance Corporation (NHIC) language, and the "routine facility consent form." The commenter wanted the panel to be aware of these factors when considering the implementation of the consent form. The commenter is in favor of streamlining the process. RESPONSE: The panel appreciates the commenter's concern, however, the panel has promulgated the form required by House Bill 723. The form meets the requirements of sec.6.05 and sec.6.08, as set forth in House Bill 723. While the panel supports attempts to streamline the process of obtaining consent, it would exceed the panel's charge to attempt to incorporate language required by NHIC and the panel is not aware of the content or purpose of a "routine facility consent form." No change was made as a result of the comment. COMMENT: One commenter suggested, "that a designation for endoscopy/laparoscopy, together with the risks and hazards for same, be added to the proposed consent form." The commenter believes that, if the suggested change is made, a patient undergoing a laparoscopically assisted vaginal hysterectomy (LAVH), for example, will only need to sign one form. "Otherwise, practitioners will either have to have the patient sign the standard form in addition to the hysterectomy form, or else they will have to write in the endoscopy/laparoscopy information on the hysterectomy form. Neither of these latter choices would seem preferable to the signing of one, completely pre-printed form." RESPONSE: The panel agrees and has revised the form to list the additional risks associated with endoscopy/laparoscopy. COMMENT: Concerning sec.601.8, a commenter asked if the rules included a Spanish version of the form as required by House Bill 723. RESPONSE: As previously stated, the Spanish version of the form will be available from the Texas Department of Health. No change was made as a result of the comment. The commenters include a representative from Representative Dawnna M. Duke's office; Texas Hospital Association, Austin, Texas; Hermann Hospital, Houston, Texas; Providence Health Center, Waco, Texas; Texas State Board of Medical Examiners, Austin, Texas; and an individual. The commenters were generally in favor of the rules, but expressed concerns, asked questions, and made recommendations as previously mentioned. The amendments and new section are adopted under the Medical Liability and Insurance Improvement Act of Texas, Texas Civil Statutes, Article 4590i, sec.6.04, which provides the Texas Medical Disclosure Panel with the authority to prepare lists of medical treatments and surgical procedures that do and do not require disclosure by physicians and health care providers of the possible risks and hazards and to prepare the form(s) for the treatments and procedures which do require disclosure; and sec.6.08 which requires the panel to develop and prepare written materials to inform a patient or person authorized to consent for a patient of the risks and hazards of a hysterectomy. sec.601.4.Disclosure and Consent Form. (a) The Texas Medical Disclosure Panel adopts the following form which shall be used by a physician or health care provider to inform a patient or person authorized to consent for the patient of the possible risks and hazards involved in the medical treatments and surgical procedures named in the form. Except for the procedures shown in subsection (b) of this section, the following form shall be used for the medical treatments and surgical procedures described in sec.601.2 of this title (relating to Procedures Requiring Full Disclosure--List A). Figure 1: 25 TAC sec.601.4(a) (b) Informed consent for: (1) radiation therapy shall be provided in accordance with sec.601.5 of this title (relating to Radiation Therapy Disclosure and Consent Form); (2) electroconvulsive therapy shall be provided in accordance with sec.601.7 of this title (relating to Informed Consent for Electroconvulsive Therapy); and (3) hysterectomy procedures shall be provided in accordance with sec.601.8 of this title (relating to Hysterectomy Disclosure and Consent Form). sec.601.6. History. (a)-(f) (No change.) (g) Effective October 3, 1995, sec.601.1 - 601.4 of this title were repealed and replaced with new sec.601.1 of this title (relating to General), sec.601.2 of this title (relating to Procedures Requiring Full Disclosure (List A), sec.601.3 of this title (relating to Procedures Requiring No Disclosure (List B), and sec.601.4 of this title (relating to Disclosure and Consent Form), sec.601.5 of this title (relating to Radiation Therapy Disclosure and Consent Form), this section, and sec.601.7 of this title (relating to Informed Consent for Electroconvulsive Therapy). The sections were repealed to incorporate List A and List B into Texas Register format. In addition, sections were added to include general provisions; to provide a history of the rules of the panel; and to adopt a section which addresses informed consent for electroconvulsive therapy. (h) Effective October 23, 1997, sec.601.2 of this title was amended to update risks and hazards requiring full disclosure prior to performing abdominal endoscopic/laparoscopy procedures and endoscopic surgery of the thorax. (i) Effective February 18, 1998, sec.601.4 of this title and this section were amended and new sec.601.8 of this title (relating to Hysterectomy Disclosure and Consent Form) was added to address legislative requirements relating to informed consent for hysterectomies. Section 601.8 of this title adopts a form to be used in providing informed consent prior to performing a hysterectomy and applies to hysterectomies performed at least 90 days after the date of publication of adopted sec.601.8 of this title in the Texas Register. sec.601.8.Hysterectomy Disclosure and Consent Form. The Texas Medical Disclosure Panel adopts the following form which shall be used to provide informed consent to a patient or person authorized to consent for the patient of the possible risks and hazards involved in the hysterectomy surgical procedure named in the form. This form is to be used in lieu of the general disclosure and consent form adopted in sec.601.4 of this title (relating to Disclosure and Consent Form) for disclosure and consent relating to only hysterectomy procedures. Providers are required to use the form to obtain consent for hysterectomies performed at least 90 days following publication of this adopted section in the Texas Register. Providers shall have the form available in both English and Spanish language. The Spanish version is available from the Texas Department of Health. Figure 1: 25 TAC sec.601.8 This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on January 29, 1998. TRD-9801382 Melba W. Swafford, M.D. Chairperson Texas Medical Disclosure Panel Effective date: February 18, 1998 Proposal publication date: October 31, 1997 For further information, please call: (512) 458-7236 TITLE 28. INSURANCE PART I. Texas Department of Insurance CHAPTER 3.Life, Accident, Health Insurance and Annuities SUBCHAPTER MM.Assessment 28 TAC sec.3.13001 The Commissioner of Insurance adopts new sec.3.13001, concerning definitions, procedures, criteria and forms for the making and collecting of assessments on insurers that provide health insurance in this state by the Texas Health Insurance Risk Pool. The section is adopted with changes to the proposed text as published in the December 19, 1997 issue of the Texas Register (22 TexReg 12394). A public hearing on the section was held on January 8, 1998. The new section is required by Insurance Code, Article 3.77, sec.8 which directs the commissioner of insurance to adopt rules to provide the procedures, criteria and forms necessary for the Texas Health Insurance Risk Pool to implement, collect and deposit assessments made to recoup the Pool's net loss under Insurance Code, Article 3.77, sec.13. The section was developed with the assistance of the Board of Directors of the Texas Health Insurance Risk Pool to assure that it met the needs of the pool. The board of directors of the pool has frequently expressed its desire to minimize administrative costs so that the maximum amount of money collected in premiums and assessments can be used by the pool to pay claims, therefore the adopted section is intended to meet the requirement of Insurance Code, Article 3.77, sec.8, while minimizing the cost of compliance with the section for the pool. Besides the board's contribution in the drafting of the section, several changes were made to the proposed section in response to the board's testimony at the hearing on the section and written comments submitted by the board. The definition of "insurer" in sec.3.13001(a)(2) was changed, a new paragraph in sec.3.13001(c)(5) was inserted, sec.3.13001(c)(3) was changed and sec.3.13001(e) was changed, all in response to comments from the pool. In addition to the latitude provided in the procedures for making assessments and the criteria for those assessments, the section provides the pool with an outline for the forms to be used in determining and collecting assessments, instead of adopting a specific form. The adopted section provides an uncomplicated procedure and clear criteria for the making of assessments by the board of directors of the pool. Every insurer that collects health insurance premiums in this state will be affected by the section. The Texas Health Insurance Risk Pool is authorized by Insurance Code, Article 3.77, sec.13, to assess insurers providing health insurance in this state for operating funds and for any net loss experienced by the pool in providing insurance to medically uninsurable Texans. The new section provides definitions, procedures, criteria and forms for the making and collecting of assessments by the Texas Health Insurance Risk Pool. Section 3.13001(a) contains definitions of the terms used in the section. The definition of "insurer" was changed in response to a comment to conform it to the definition of "insurer" in Insurance Code, Article 3.77. Section 3.13001(b) authorizes the board of directors of the pool to consider and determine the need for, and the amount of, any regular and interim assessments at any meeting of the board. Section 3.13001(c)(1)-(3) provides that interim assessments shall cover estimated cash requirements of the pool and shall be credited against the regular assessment for the applicable fiscal year. Section 3.13001(c)(4) directs the board to request insurers to provide the board information on their health insurance premiums in this state. If an insurer does not provide the information, the section provides that the board may presume that all the insurer's health insurance premiums reported to the Texas Department of Insurance are assessable. A new section 3.13001(c)(5) was inserted in response to a comment and proposed sec.3.13001(c)(4) was renumbered as paragraph (5). Proposed sec.3.13001(c)(5) was renumbered as paragraph (6). It provides that the pool may audit the information on health insurance premiums submitted by insurers. Section 3.13001(c)(6) was renumbered as paragraph (7). It provides that the board shall determine the date an assessment must be paid by an insurer and charge interest if an assessment is not paid when due. Section 3.13001(c)(7) was renumbered as paragraph (8). It provides that the limitation on assessments of one-half of one percent of an insurers collected health insurance premiums in this state in Insurance Code, Article 3.77, sec.13(e) shall be calculated on the ins