PROPOSED RULES
Before an agency may permanently adopt a new or amended section or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before action is taken. The 30-day time period gives 
interested persons an opportunity to review and make oral or written comments on 
the section. Also, in the case of substantive action, a public hearing must be 
granted if requested by at least 25 persons, a governmental subdivision or 
agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the <nl> code. [Brackets] indicate deletion of existing material 
within a section.

TITLE 1. ADMINISTRATION
PART XV. Texas Health and Human Services Commission
CHAPTER 355.Medicaid Reimbursement Rates
SUBCHAPTER C.Reimbursement Methodology for Nursing Facilities 
1 TAC sec.sec.355.307, 355.401
The Health and Human Services Commission (HHSC) proposes amendments to 
sec.355.307, concerning reimbursement methodology for nursing facilities; and 
sec.355.401, concerning allowable and unallowable costs, in its Medicaid 
Reimbursement Rates chapter. The purpose of the amendments is to allow nursing 
facilities to receive supplemental Medicaid reimbursement for children who 
qualify for the Texas Index for Level of Effort (TILE) heavy-care case mix 
classification and require daily care of a tracheostomy. Qualifying residents 
will be eligible to receive 60% of the total ventilator-dependent supplemental 
reimbursement. Children with tracheostomies who also are ventilator-dependent 
will not be eligible to receive both a ventilator-dependent and a tracheostomy 
supplemental reimbursement. 
Gary Bego, Associate Commissioner for Fiscal Policy, has determined that for the 
first five-year period the proposed section will be in effect there will be 
fiscal implications for state government as a result of enforcing or 
administering the sections. The effect on state government for the first five-
year period the section will be in effect is an estimated additional cost of 
$150,482 in fiscal year (FY) 1998; $230,596 in FY 1999; $240,481 in FY 2000; 
$249,431 in FY 2001; and $259,404 in FY 2002. 
Mr. Bego, also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be that providers of these specialized services for children 
will receive Medicaid payments more closely aligned with the costs of delivering 
these services. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the 
proposed sections.
Questions about the content of this proposal may be directed to Pamela Lawrie at 
(512) 438-4051 in the Texas Department of Human Services' Rate Analysis 
Department. Written comments on the proposal may be submitted to Stephen 
Svadlenak, Health and Human Services Commission, P.O. Box 13247, Austin, Texas 
78711, within 30 days of publication in the Texas Register The amendments are 
proposed under the Texas Government Code, Chapter 531, sec.531.033, which 
authorizes the Commissioner of Health and Human Services to adopt rules 
necessary to carry out the Health and Human Services Commission's duties under 
Chapter 531; and under Texas Government Code, sec.531.021, which provides the 
commission with the authority to administer federal medical assistance funds.
The amendments implement Government Code, sec.531.021 and Human Resources Code 
sec.sec.32.001-32.042. 

sec.355.307. Reimbursement Setting Methodology 
(a) (No change.) 
(b) Reimbursement determination. For reimbursements calculated using cost 
reports pertaining to providers' fiscal years ending in calendar year 1995 or 
1996, the Texas Board of Human Services (board) determines general 
reimbursements for medical assistance programs for Medicaid recipients under 
provisions of the Human Resources Code, Chapter 24 (concerning Reimbursement 
Methodology). For reimbursements calculated using cost reports pertaining to 
providers' fiscal years ending in 1997 and subsequent years, the board 
determines general reimbursements for medical assistance programs for Medicaid 
recipients under provisions of Subchapter A of this chapter (relating to Cost 
Determination Process). The board determines reimbursements for nursing 
facilities based on consideration of Texas Department of Human Services (DHS) 
staff recommendations. To develop reimbursement rate recommendations for nursing 
facilities, DHS staff apply the following procedures. 
(1)-(2) (No change.) 
(3) Per diem rate methodology. Staff determine per diem rate recommendations for 
each of the 11 TILE groups and for the default group according to the following 
procedures: 
(A)-(F) (No change.) 
<nl>(G)<ol> <nl>Supplemental reimbursement for children with tracheostomies 
requiring daily care. As of January 1, 1998, qualifying residents may receive a 
supplement to the per diem rate specified in subparagraph (E) of this paragraph. 
<ol>
<nl>(i)<ol> <nl>To qualify for supplemental reimbursement, a resident must be 
less than 22 years of age; require daily cleansing, dressing, and suctioning of 
a tracheostomy; and be unable to do self care. The daily care of the 
tracheostomy must be prescribed by a licensed physician. <ol>
<nl>(ii)<ol> <nl> The supplemental reimbursement for children receiving daily 
tracheostomy care is 60% of the per diem ventilator rate supplement (specified 
in subparagraph (F)(ii) of this paragraph). <ol> 
<nl>(H)<ol> <nl>Children with qualifying conditions as specified in 
subparagraphs (F) and (G) of this paragraph may receive only one of the 
supplemental reimbursements. Therefore, children with tracheostomies who also 
are ventilator-dependent are not eligible to receive both supplemental 
reimbursements. <ol>

sec.355.401 Allowable and Unallowable Costs: 1997 and Subsequent Cost Reports 
(a)-(b) (No change.) 
(c) In addition to the requirements of sec.355.102 and sec.355.103 of this title 
(relating to General Principles of Allowable and Unallowable Costs, and 
Specifications for Allowable and Unallowable Costs), the following apply to 
costs for the NF program. 
(1)-(2) (No change.) 
(3) Voucherable costs. Except as detailed in subparagraphs
(A) and (B) of this paragraph, any expenses directly reimbursable to the 
provider through a voucher payment and any expenses in excess of the limit, or 
ceiling, for a voucher payment system are unallowable costs. 
(A) The ventilator dependent supplemental voucher system <nl> and the children 
with tracheostomies supplemental voucher system are<ol> [is] not subject to the 
cost reporting restrictions described in this paragraph. 
(B) (No change.) 
(4)-(6) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801448
Marina Henderson
Executive Deputy Commissioner
Texas Health and Human Services Commission
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 424-6576

TITLE 7. BANKING AND SECURITIES
PART VI. Credit Union Department
CHAPTER 91.Chartering, Operations, Mergers, Liquidations 
General Rules
7 TAC sec.91.103
The Texas Credit Union Commission proposes new sec.91.103, concerning public 
notice of the department's activities. The proposed rule is necessary to comply 
with new statutory requirements enacted in the 75th Legislative Session. Senate 
Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas 
Session Law (to be codified at Texas Finance Code Annotated, sec.15.4021), 
requires the commission to adopt rules relating to providing the public with 
notice of department activities. The proposed new rule requires the department 
to publish in the Texas Register and the department newsletter actions taken on 
certain applications and requests submitted for approval that have become final.
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implication as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five-year period the rule is in effect: 
(a) The public benefits anticipated, as a result of the notice being given, will 
be to ensure the public is informed of actions taken by the Department.
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed rule must be submitted within 30 days after 
publication of the proposed section in the Texas Register to Carol P. Shaner, 
Staff Services Officer, Credit Union Department, 914 East Anderson Lane, Austin, 
Texas, 78752-1699.
The new section is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 10 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated Section 15.4021), which 
requires the Commission to provide public notice of Department activities. 
The specific section affected by this proposed rule is sec.11.061 of the Texas 
Credit Union Act (to be codified at Texas Finance Code Annotated, sec.15.4021). 

sec.91.103.Public Notice of Department Activities.
The commissioner shall cause notice of final actions taken by the department on 
certain activities to be published in the Texas Register and the department 
newsletter. Notice shall be published in both publications within 30 days of the 
action becoming final. The activities covered by this requirement are: 
(1) an application for incorporation under the Texas Finance Code, sec.122.001; 
(2) a request for an amendment to a credit union's articles of incorporation 
under the Texas Finance Code, sec.122.011; 
(3) a request for an amendment to a credit union's bylaws for the expansion of 
its field of membership under the Texas Finance Code, sec.122.011; 
(4) an application for merger or consolidation under the Texas Finance Code, 
sec.122.152; 
(5) a request by a foreign credit union to do business in Texas under the Texas 
Finance Code, sec.122.013; and 
(6) an application for conversion of a credit union's Charter under the Texas 
Finance Code, sec.sec.122.201, 122.202 or 122.203.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801286
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

7 TAC sec.91.104
The Texas Credit Union Commission proposes new sec.91.104, concerning public 
notice of certain requests for approval by the commissioner. The proposed rule 
is necessary to comply with new statutory requirements enacted in the 75th 
Legislative Session. Section 17 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.122.005), requires the commissioner to submit to the 
secretary of state for publication in the Texas Register notice of requests for 
approval by the commissioner of applications for incorporation, amendments to 
credit union's articles of incorporation, including amendments to expand field 
of membership, and mergers/consolidations. The proposed new section requires the 
department to publish in the Texas Register and the department newsletter notice 
of such requests received by the Department at least thirty days prior to any 
action being taken on them.
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implication as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five-year period the rule is in effect: 
(a) The public benefits anticipated, as a result of the notice being given, will 
be to ensure the public is informed of applications and requests for approval 
received by the Department. 
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed rule must be submitted within 30 days after 
publication of the proposed section in the Texas Register to Carol P. Shaner, 
Staff Services Officer, Credit Union Department, 914 East Anderson Lane, Austin, 
Texas, 78752-1699. 
The new section is proposed under the provisions of Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 17 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated, sec.122.005), which 
requires the Commission to provide public notice of Department activities. The 
specific section affected by this proposed rule is Texas Finance Code, 
sec.122.005. 

sec.91.104.Notice of Applications.
(a) Upon receipt of a complete application for authorization to be granted by 
the department, the commissioner shall cause notice of such application to be 
published in the Texas Register and the department newsletter. Notice shall be 
published in both publications at least 30 days prior to taking action on the 
request. The activities covered by this requirement are:
(1) an application for incorporation under the Texas Finance Code, sec.122.001; 
(2) a request for an amendment to a credit union's articles of incorporation 
under the Texas Finance Code, sec.122.011; 
(3) a request for an amendment to a credit union's bylaws for an expansion of 
its field of membership under the Texas Finance Code, sec.122.011; and 
(4) an application for merger or consolidation under the Texas Finance Code, 
sec.122.152. 
(b) The commissioner may waive or delay notice of applications under subsection 
(a) of this section when a waiver or delay is in the public interest. The 
commissioner shall consider the welfare and stability of the affected credit 
union(s) in determining the public interest. If the commissioner determines that 
delaying public notice is in the public interest, the notice of application 
shall be published in each publication at the earliest feasible time. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801287
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Loans
7 TAC sec.91.701
The Texas Credit Union Commission proposes an amendment to sec.91.701, 
concerning loans and extensions of credit that a credit union may make. The 
amendments are being proposed to provide specific authorization for a credit 
union to engage in home equity lending and reverse mortgage lending, as allowed 
by Section 50, Article XVI, Texas Constitution. The amendments are necessary to 
further clarify the Commission's determination that state chartered credit 
unions have the authority to offer home equity loans and reverse mortgages to 
their members. An amendment is also proposed to ensure compliance with 
provisions of Section 50, Article XVI, Texas Constitution, pertaining to home 
improvement loans. Next, an amendment is proposed to establish a minimum dollar 
threshold under which title insurance is not required on a real estate loan 
secured by a first lien. The proposed $25,000 threshold would be the same as the 
threshold now required for a real estate loan secured by other than a first 
lien. Currently, a title policy is required on all real estate loans secured by 
a first lien. Lastly, an amendment is proposed to raise the appraisal 
requirement threshold from $50,000 to $100,000, the level established for 
federal credit unions, so that state-chartered credit unions are not 
disadvantaged. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed amended rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the amended rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that state-chartered credit unions will be better able to meet 
the credit needs of all of its members. 
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Written comments on the proposed amendments must be submitted within 30 days 
after their publication in the Texas Register to Carol P. Shaner, Staff Services 
Officer, Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-
1699.
The amendment is proposed under the provision of the Texas Finance Code, 
sec.124.001, which provides the Credit Union Commission with the authority to 
adopt rules governing loans made to credit union members; and under the Texas 
Finance Code, sec.15.402, which authorizes the commission to adopt reasonable 
rules. 
The specific section affected by the proposed amendments is Texas Finance Code, 
sec.124.001. 

sec.91.701.Loans.
(a)-(b) (No change.) 
(c) Loans secured by real estate. For loans secured, in whole or in part, by a 
lien on real estate, the requirements described in this subsection shall apply 
unless waived in writing by the commissioner: 
(1) Loans secured by a first lien on real estate. A loan, or any refinancing 
thereof, secured by a first lien on real estate shall be subject to the 
requirements described in this paragraph as applicable. 
(A)-(B) (No change.)
(C) Title opinion; Title insurance. A loan may not be made by the credit union 
unless it is furnished with either a written title opinion of an attorney or a 
satisfactory policy of title insurance in the principal amount of the loan, 
which policy shall be issued by a title company authorized to insure titles in 
this state, insuring that the lien is a first and prior lien. <nl>The validity 
of title for loans of less than $25,000 may be determined as prescribed by board 
policy.<ol> 
(D)-(F) (No change.)
(G) Valuation. Every loan must have included in its documentation evidence of 
the market value of the real estate determined in accordance with written board 
policy or, if the amount of the loan exceeds <nl>$100,000<ol>[$50,000], a report 
of an appraisal prepared by a state certified appraiser.
(2) Other real estate loans; Maximum maturity; Loan to value ratio. A loan, or 
any refinancing thereof, secured by a lien on real estate other than a first 
lien: 
(A)-(E) (No change.)
(F) Valuation. Every loan must have included in its documentation evidence of 
the market value of the real estate determined in accordance with written board 
policy or, if the amount of the loan exceeds <nl>$100,000<ol>[$50,000], a report 
of an appraisal prepared by a state certified appraiser.
<nl>(3)<ol> <nl>Home improvement loans. Loans in which the proceeds are used to 
construct new improvements or renovate existing improvements on a homestead 
property must also comply with the requirements of Section 50(a)(5), Article 
XVI, Texas Constitution.<ol> 
<nl>(4)<ol> <nl>Loans originated under Section 50(a)(6), Article XVI, Texas 
Constitution. For a loan secured by an encumbrance against the equity in a 
homestead property, the terms and conditions set forth in Section 50, Article 
XVI, Texas Constitution, will take precedence over any specific requirement 
contained in this section if there is an irreconcilable conflict between a 
constitutional provision and the provision of this section.<ol>
<nl>(5)<ol> <nl> Reverse mortgages. A credit union may offer reverse mortgages 
to its members under the terms and conditions set forth in Section 50, Article 
XVI, Texas Constitution. In the event of an irreconcilable conflict between any 
specific requirement contained in this section and a constitutional provision, 
the constitutional requirement shall prevail. <ol>
(d)-(f) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801288
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Changes in Corporate Status 
7 TAC sec.91.1003
The Texas Credit Union Commission proposes new sec.91.1003, concerning 
mergers/consolidations of credit unions. The new rule is being proposed in order 
to comply with Section 3 of Senate Bill 358 (75th Legislature) which requires 
the commission, by rule, to establish appropriate criteria that the commissioner 
must consider in determining whether to approve or disapprove a 
merger/consolidation request. The proposed rule would formalize documentation 
requirements and merger procedures currently utilized by the Credit Union 
Department, as well as identify grounds for the commissioner's disapproval of a 
merger/consolidation request. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that state-chartered credit unions will have a clearly defined 
set of procedures to follow when contemplating a merger/consolidation, which 
will ultimately benefit their members. 
(b) There is no additional economic cost anticipated to the parties who are 
required to comply with the rule. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed. 
Comments on the proposal must be submitted within 30 days after its publication 
in the Texas Register to Carol P. Shaner, Staff Services Officer, Credit Union 
Department, 914 East Anderson Lane, Austin, Texas 78752-1699. 
The new section is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 3 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (codified at Texas Finance Code Annotated, sec.122.153). The specific 
sections affected by this proposed rule are sec.sec.122.151, 122.152, 122.153 
122.154, and 122.155 of the Texas Finance Code pertaining to merger or 
consolidation. 

sec.91.1003.Mergers/Consolidations.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Surviving credit union - The credit union that will continue in operation 
after the merger/consolidation. 
(2) Merging credit union - The credit union that will cease to exist as an 
operating credit union at the time of the merger/consolidation.
(b) Two or more credit unions authorized to conduct business in this state may 
merge/consolidate, in whole or in part, with each other subject to commission 
rules. 
(c) A credit union authorized to conduct business under the laws of this state 
may merge/consolidate with a credit union authorized to conduct business under 
the laws of another state or U. S. territory, to the extent permitted by the 
laws of the state or territory in question and subject to commission rules. A 
credit union authorized to conduct business under the laws of this state may 
also merge/consolidate with a credit union authorized to conduct business under 
the laws of the United States to the extent permitted by the laws of the United 
States and subject to commission rules. Each such application/plan shall comply 
with the applicable requirements of this section, and shall include a certified 
copy of an order from the appropriate supervisory authority approving the 
merger/consolidation, or other evidence satisfactory to the commissioner that 
all regulatory requirements of the out of state or federal supervisory authority 
have been satisfied. 
(d) Approval to Merge/Consolidate. The following are required for the completion 
of a merger/consolidation of credit unions: 
(1) approval of the merger/consolidation plan by resolution of the board of 
directors of each credit union; 
(2) approval of the merger/consolidation plan by vote of the members of each 
credit union as set forth in Section 122.151 of the Act, unless waived by the 
commissioner; and 
(3) approval by the commissioner of the merger/consolidation plan, the 
certificate of merger/consolidation, and the requisite amendment to the 
surviving credit union's articles of incorporation or bylaws. 
(e) Notice of Intent to Merge/Consolidate. The credit unions shall notify the 
commissioner of their intent to merge/consolidate by filing a copy of the 
resolution adopted by each credit union's board of directors that evidences 
their intent to merge/consolidate. 
(f) Plan for Merger/Consolidation. Upon the commissioner's acknowledgment of 
receipt of the notice of intent to merge/consolidate, a plan for the proposed 
merger/consolidation shall be prepared. The plan shall include: 
(1) the current financial reports of each credit union; 
(2) the combined financial reports of the two credit unions; 
(3) an explanation of any proposed adjustments to the members shares, deposits, 
reserves, or undivided profits; 
(4) a summary of the products and services proposed to be available to the 
members of the surviving credit union, with an explanation of any changes from 
the current products and services provided to the members;
(5) a summary of the advantages and disadvantages of the merger/ consolidation; 
(6) the projected location of the main office and any branch location(s) after 
the merger/consolidation; and 
(7) any other items deemed critical to the merger/consolidation agreement by the 
boards of directors. 
(g) Submission of an Application to Merge/Consolidate to Department.
(1) An application for approval of the merger/consolidation will be complete 
when the following information is submitted to the commissioner:
(A) the merger/consolidation plan, as described in this rule;
(B) a copy of the resolution of each board of directors approving the 
merger/consolidation plan; 
(C) the proposed Notice of Special Meeting of the members and a copy of the 
ballot form to be used, unless approval by the members is waived by the 
commissioner; 
(D) the current delinquent loan summaries for each credit union; 
(E) evidence that relevant supervisory authorities and the share insurer are in 
agreement with the merger/consolidation proposal; and
(F) a request for a waiver of the requirement that the plan be approved by the 
members of any of the affected credit unions, in the event the board(s) seek 
such a waiver, together with a statement of the reason(s) for the waiver(s). 
(2) If the surviving credit union is organized under the laws of another state 
or of the United States, the commissioner may accept an application to merge or 
consolidate that is prescribed by the state or federal supervisory authority of 
the surviving credit union, provided that the commissioner may require 
additional information to determine whether to deny or approve the 
merger/consolidation. The application will be deemed complete upon receipt of 
all information requested by the commissioner. 
(h) Upon receipt of a completed application, notice of the proposed merger/ 
consolidation will be published in the Texas Register and Department Newsletter. 
(i) Commissioner Action on the Application. 
(1) The commissioner shall approve the application for merger/consolidation upon 
the finding from information submitted in the application that the proposed 
merger/consolidation will promote the welfare and stability of the merging and 
surviving credit unions. 
(2) The commissioner shall deny an application for merger/consolidation if the 
commissioner finds any of the following: 
(A) the financial condition of the surviving credit union before the 
merger/consolidation is such that it will likely jeopardize the financial 
stability of the merging credit union or prejudice the financial interests of 
the members, beneficiaries or creditors of either credit union;
(B) the plan includes a change in the products or services available to members 
of the merging credit union that substantially harms the financial interests of 
the members, beneficiaries or creditors of the merging credit union; 
(C) the merger/consolidation would probably substantially lessen the ability of 
the surviving credit union to meet the reasonable needs and convenience of 
members to be served; 
(D) the credit unions do not furnish to the commissioner all information 
requested by the commissioner which is material to the application;
(E) the credit unions fail to obtain any approval required from a federal or 
state supervisory authority; or 
(F) the merger/consolidation would be contrary to law. 
(3) For applications to merge/consolidate in which the products and services of 
the surviving credit union after merger/consolidation are proposed to be 
substantially the same as those of the merging and surviving credit unions, the 
commissioner will presume that the merger/consolidation will not significantly 
change or affect the availability and adequacy of financial services in the 
local community. 
(j) Procedures for Approval of Merger/Consolidation Plan by the Members of Each 
Credit Union. 
(1) The credit unions have the option of allowing their members to vote on the 
plan in person at a meeting of the members, by mail ballot, or by a combination 
of both. 
(2) Members shall be given advance notice of the meeting in accordance with the 
credit union's bylaws. The notice of the meeting shall:
(A) specify the purpose of the meeting;
(B) state the reasons for the proposed merger/consolidation;
(C) state that the merger/consolidation plan will be presented to the members; 
(D) provide the name and location of the surviving credit union; 
(E) specify whether the vote will be taken in person at the meeting, by mail 
ballot to be received by the credit union no later than the date and time of the 
meeting, or by combination of both methods; and 
(F) be accompanied by a mail ballot and a copy of the merger/consolidation plan 
if voting by mail is permitted. 
(k) Completion of Merger/Consolidation. 
(1) Upon approval of the merger/consolidation plan by the membership, if 
applicable, the Certificate of Merger/Consolidation shall be completed, signed 
and submitted to the commissioner for final authority to combine the records. 
Necessary amendments to the surviving credit union's articles of incorporation 
or bylaws shall also be submitted at this time.
(2) Upon receipt of the commissioner's written authorization, the records of the 
credit unions shall be combined as of the effective date of the 
merger/consolidation. The board of the directors of the surviving credit union 
shall certify the completion of the merger/consolidation to the commissioner 
within 30 days after the effective date of the merger/consolidation.
(3) Upon receipt by the commissioner of the certification of the 
merger/consolidation in which the surviving credit union will operate under a 
Texas charter, any article of incorporation or bylaw amendments will be approved 
at the same time the charter of the merging credit union is canceled.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801290
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

Submission of Comments by Interested Parties
7 TAC sec.91.3001, sec.91.3002
The Texas Credit Union Commission proposes new sec.91.3001 and sec.91.3002, 
concerning the opportunity for interested parties to be heard on certain 
applications. The new rules are being proposed in accordance with Section 17 of 
Senate Bill 358 (75th Legislature) which provides that the commission may 
establish reasonable rules governing the circumstances and conduct of informal 
meetings. The proposed rules would formalize requirements and procedures to be 
utilized by the Credit Union Department. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for the first five 
year period there will be no fiscal implications as a result of enforcing or 
administering the proposed rules. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rules proposed are in effect: 
(a) The public benefits anticipated as a result of enforcing the rules as 
proposed will be that interested parties unions will have a clearly defined set 
of procedures to follow when requesting an informal meeting with the 
commissioner.
(b) There is no economic cost anticipated to the parties who are required to 
comply with the rules. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rules as proposed. 
Comments on the proposed rules must be submitted within 30 days after their 
publication in the Texas Register to Carol P. Shaner, Staff Services Officer, 
Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-1699.
The new sections are proposed under the provisions of the Texas Finance Code, 
sec.15.402, which authorizes the commission to adopt reasonable rules, and 
Section 17 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session 
Law (to be codified at Texas Finance Code Annotated, sec.122.005), which 
provides the Credit Union Commission with the authority to establish, by rule, 
appropriate criteria governing the circumstances and conduct of informal 
meetings. 
The specific sections affected by these proposed rules are Texas Finance Code, 
sec.sec.122.006, 122.011,122.151, and 122.152, pertaining to applications for 
incorporation, request for approval of article of incorporation amendments, and 
merger or consolidation. 

sec.91.3001.Opportunity to Submit Comments on Certain Applications.
(a) An interested party may submit comments to the commissioner on the following 
matters: 
(1) an application for incorporation under the Texas Finance Code, sec.122.001;
(2) an amendment to a credit union's articles of incorporation under the Texas 
Finance Code, sec.122.011, which includes an amendment to expand the credit 
union's field of membership; or 
(3) an application to merge or consolidate under the Texas Finance Code, 
sec.122.152. 
(b) An interested party is a person or entity that has an interest in particular 
to the application other than as a member of the general public. 
(c) Acceptance of comments under this section does not constitute a 
determination of standing to protest or otherwise participate in a contested 
case hearing on the application. 
(d) Comments may be made in writing or provided in a meeting with the 
commissioner or deputy commissioner, as follows: 
(1) written comments shall be submitted within 30 days after notice of the 
application is published in the Texas Register or the department's newsletter, 
whichever is later;
(2) a meeting to receive comments shall be held upon written request by an 
interested party or upon the commissioner's direction.

sec.91.3002.Conduct of Meetings to Receive Comments.
(a) Meetings to receive comments under sec.91.3001 of this title (relating to 
opportunities to submit comments on certain applications) will be conducted in 
the following manner: 
(1) a written request for a meeting to receive comments must be received by the 
department within 30 days after publication of the notice of the application and 
shall contain the following: 
(A) the identity of the requestor, including the name of a natural person who 
represents a business entity or other association, mailing address, daytime 
telephone number, and a facsimile number if any; 
(B) the name of the application and type of application; 
(C) a description of the requestor's interest in the application; and 
(D) a list of at least three dates and times within 30 days after the date of 
publication of notice of application, which are available for the meeting. 
(2) the meeting will be scheduled and may be rescheduled, if necessary, by the 
commissioner to occur after at least three business days' notice by telephone, 
facsimile, or mail; 
(3) one meeting may be scheduled to receive comments from more than one 
interested party, at the discretion of the commissioner;
(4) a limit on the length and other conditions for the conduct of the meeting 
may be imposed by the commissioner, and the conditions will be stated in the 
notice of the meeting; 
(5) the meeting may be conducted by telephone with the consent of the interested 
party; and 
(6) the department is not required to make a record of the meeting. 
(b) An interested party who fails to attend a meeting scheduled for the party's 
benefit may submit written comments within three days after the date scheduled 
for the meeting, but the commissioner is not required to schedule another 
meeting. 
(c) The purpose of the meeting is only to receive comments, and no decision, 
preliminary or otherwise, will be made at the meeting. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801291
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

CHAPTER 97.Commission Policies and Administrative Rules
Fees
7 TAC sec.97.113
The Texas Credit Union Commission proposes an amendment to existing rule 
sec.97.113, concerning operating fees. One proposed amendment will modify the 
amount of operating fees a state-chartered credit union must pay to the 
Department annually. This amendment to update the operating fee schedule is the 
result of the Department's analysis of its current operating costs, the 
operating assessment schedule imposed on federally chartered credit unions and 
credit unions chartered by other states, and the structure of the state credit 
union industry as it exists today. The operating fee schedule currently in 
effect was adopted in September of 1991. 
The commission is also proposing an amendment to allow for the collection of 
$200 per foreign branch office operated in the state of Texas by an out of state 
credit union. As the rule now reads, an out of state credit union with branches 
operating in Texas is only required to remit $200 per year to the Department, 
regardless of the number of actual foreign branch operations in existence. 
Therefore, an out of state credit union with four branches would pay the same 
annual fee as another out of state credit union with only one branch. Amending 
the rule to allow for a fee to be collected for each branch office will result 
in a more equitable system. 
Lastly, the commission proposes the addition of a new subsection addressing the 
collection of operating fees from a state chartered credit union that assumes 
the assets and liabilities of another state chartered credit union through a 
merger or consolidation between June 30 and September 1. This will allow the 
department to collect operating fees normally lost as a result of the timing 
difference between the date upon which the fees are assessed and the remittance 
date. 
Lynette Pool-Harris, Deputy Commissioner, has determined that for each year of 
the first five year period there will not be fiscal implications as a result of 
enforcing or administering the proposed rule. 
Ms. Pool-Harris, Deputy Commissioner, has determined that for each year of the 
first five years the rule proposed is in effect: 
(a) The public benefits anticipated as a result of enforcing the rule as 
proposed will be that the Department is sufficiently funded by the credit unions 
to cover expenses in regulating and supervising those credit unions.
(b) The anticipated economic cost to the individuals who are required to comply 
with the rule as proposed will be dependent on their asset base as of the 
quarter ending June 30. Credit unions with total assets below approximately $39 
million will pay lower operating fees, while those above $39 million will pay 
higher fees, than they would under the current operating fee schedule. Those 
credit unions experiencing asset growth between June 30 and September 1 due to 
mergers/consolidations will now be financially responsible for the associated 
operating fees. For out of state credit unions operating branches in Texas, the 
anticipated economic cost will be dependent on the number of such branches in 
operation as of September 1 of each year. 
(c) No impact on local employment is anticipated as a result of enforcing the 
rule as proposed.
Written comments on the proposed amendment must be submitted within 30 days 
after its publication in the Texas Register to Carol P. Shaner, Staff Services 
Officer, Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-
1699. 
The amendment is proposed under the provisions of the Texas Finance Code, 
sec.15.402, which provide the Credit Union Commission with the authority to set, 
by rule, reasonable supervision fees, charges, and revenues required to be paid 
by credit unions authorized to do business under the Texas Finance Code. 
The specific section affected by this proposed amendment is Texas Finance Code, 
sec.15.402. 

sec.97.113.Operating Fees.
(a) (No change.) 
(b) Calculation of operating fees. The schedule provided in this section shall 
serve as the basis for calculating operating fees. The base date shall be June 
30 of the year in which operating fees are calculated. The asset base may be 
reduced by the amount of reverse-repurchase balances extant on the June 30 base 
date. The commissioner is authorized to increase or decrease the fee schedule 
annually by amounts not to exceed 10% per year with prior approval of the 
commission, as needed to match revenue with appropriations.
Figure: 7 TAC sec.97.113(b)
(c)-(d) (No change.) 
(e) Out of state branches. Credit unions operating branch offices in Texas as 
authorized by sec.91.211 of this title (relating to Application for a 
Certificate of Authority To Do Business in the State of Texas) shall pay an 
annual operating fee of $200 <nl>per branch office.<ol>
(f) (No change.) 
<nl>(g)<ol> <nl> In the event a credit union in existence as of June 30 merges 
or consolidates with another credit union and the merger/consolidation is 
completed on or before September 1, the surviving credit union shall remit to 
the department the amount that the merging/consolidating credit union would have 
paid if it had still been in existence on September 1. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State, on January 28, 1998.
TRD-9801294
Harold E. Feeney
Commissioner
Credit Union Department
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 837-9236

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 5. Transportation Division
SUBCHAPTER J. Rail Safety
16 TAC sec.5.802
The Railroad Commission of Texas proposes an amendment sec.5.802, concerning 
reports of railroad accidents/incidents. Currently, railroads are required to 
notify the commission immediately of any collision, derailment, fire, explosion, 
act of God, or other event occurring in the state of Texas that: results in the 
death of any railroad passenger or railroad employee; results in the death or 
injury of two or more persons; involves a passenger train; or involves a 
commodity classified as a hazardous material under 49 Code of Federal 
Regulations Part 172. The proposed amendment would require the railroads to 
notify the commission immediately upon the occurrence of any of the described 
events that results in the death of one or more persons.
Jerry Martin, director, Rail Division, has determined that for each year of the 
first five years the section as proposed will be in effect there will be no 
fiscal implications for state or local governments. 
Mr. Martin has also determined that for each year of the first five years the 
section as proposed will be in effect the public benefit anticipated as a result 
of enforcing the section as proposed will be the accumulation by the commission 
of more comprehensive and timely information about deaths and injuries resulting 
from accidents and incidents involving railroad on-track equipment, moving or 
standing, which in turn should help the commission in evaluating the safety of 
railroad operations. 
There is anticipated economic cost to small businesses and individuals required 
to comply with the section as proposed due to the requirement to report all 
accidents and incidents involving railroad on-track equipment which result in 
the death of any person, not just those involving the death of two or more 
persons. However, the cost of complying with the section as proposed cannot be 
determined, since the frequency of reports is related to deaths of persons, 
which cannot be predicted. In addition, each railroad's individual 
administrative costs are likely to differ, making the determination of the cost 
of compliance impossible. 
Comments on the proposed amendment should be filed with Jerry Martin, Director, 
Rail Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 
78711-2967. Comments will be accepted for 60 days after publication in the Texas 
Register. For more information, contact Mr. Martin at (512) 463-7001.
The commission proposes the amendment pursuant to Texas Civil Statutes, Article 
6448a, which authorizes the commission to issue rules as permitted by the 
Federal Railroad Safety Act of 1970. 
Texas Civil Statutes, Article 6448a, is the statute affected by the proposed 
amendment. 

sec.5.802. Reports of Railroad Accidents/Incidents.
(a) (No change.) 
(b) A railroad must report immediately by telephone to the Commission at (512) 
463-6788, whenever it learns of the occurrence of any collision, derailment, 
fire, explosion, act of God, or other event occurring in the State of Texas and 
involving operation of railroad on-track equipment (standing or moving) which: 
(1) results in the death of <nl>one or more persons<ol> [any railroad passenger 
or railroad employee]; 
(2) results in the [death or] injury of two or more persons; 
(3)-(4) (No change.) 
(c) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 29, 1998.
TRD-9801363
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-7008

TITLE 22. EXAMINING BOARDS
PART V. State Board of Dental Examiners
CHAPTER 101. Dental Licensure
22 TAC sec.101.2
The State Board of Dental Examiners proposes new sec.101.2, concerning staggered 
dental registrations. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. There will be no fiscal impact on state government 
because the proposed rule describes procedures already in place as authorized by 
the Dental Practice Act at Article 4550b. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that Board rules will clarify for dental licensees the procedure by 
which dental registrations are staggered and the fees due for the initial 
staggered registration period and subsequent annual renewals. 
There will be no effect on small and large businesses. The economic costs to 
persons who are required to comply with the rule as proposed will be contingent 
upon their placement in the staggered registration system. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4550b, which provides that the Board 
by rule may adopt a staggered registration system. 
The proposed new rule does not affect other statutes, articles, or codes.

sec.101.2. Staggered Dental Registrations.
The State Board of Dental Examiners, pursuant to Article 4550b, V.T.C.S., has 
established a staggered license registration system comprised of initial dental 
license registration periods followed by annual registrations (i.e., renewals). 
(1) The initial, staggered dental license registration periods will range from 6 
months to 17 months. Each dentist for whom an initial dental license 
registration is issued will be assigned a computer-generated check digit. The 
length of the initial license registration period will be according to the 
assigned check digit as follows: 
(A) a dentist assigned to check digit 1 will be registered for 6 months; 
(B) a dentist assigned to check digit 2 will be registered for 7 months; 
(C) a dentist assigned to check digit 3 will be registered for 8 months; 
(D) a dentist assigned to check digit 4 will be registered for 9 months; 
(E) a dentist assigned to check digit 5 will be registered for 11 months; 
(F) a dentist assigned to check digit 6 will be registered for 12 months; 
(G) a dentist assigned to check digit 7 will be registered for 13 months; 
(H) a dentist assigned to check digit 8 will be registered for 14 months; 
(I) a dentist assigned to check digit 9 will be registered for 15 months; and 
(J) a dentist assigned to check digit 10 will be registered for 17 months. 
(2) For individuals who qualify for dental licensure by examination, the initial 
dental license registration fees will be as follows:
(A) an annual license registration fee of $70 prorated according to the number 
of months in the initial registration period; 
(B) $9.00 for peer assistance.
(3) For individuals who qualify for dental licensure by credentials, the initial 
dental license registration fees will be as follows:
(A) an annual license registration fee of $70 prorated according to the number 
of months in the initial registration period; 
(B) $9.00 for peer assistance; 
(C) a $200 annual assessment by the Texas Legislature for deposit to the General 
Revenue Fund. 
(4) Subsequent to the initial registration period, a licensee's annual 
registration (renewal) will occur on the first day of the month that follows the 
last month of his/her initial dental license registration period. Pursuant to 
sec.102.1(a) of this title (relating to Fee Schedule), the licensee will pay the 
following fee for each annual registration (i.e., renewal): 
(A) a license registration fee of $70; 
(B) $200 annual assessment by the Texas Legislature for deposit to the General 
Revenue Fund; 
(C) $9.00 for peer assistance. 
(5) Approximately 60 days prior to the expiration date of the initial dental 
license registration period, a license renewal notice will be mailed to all 
dental licensees who have that expiration date.
(6) A license registration expired for more than one year may not be renewed. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801315
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 102. Fees
22 TAC sec.102.1
The State Board of Dental Examiners proposes an amendment to sec.102.1, 
concerning fees. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications on state or local government as a result of enforcing or 
administering the rule. The fiscal impact on state government will be contingent 
upon the number of exception tracking numbers issued to registrants in each 
state-supported dental school. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that licenses, registrants, and dental schools will know the 
appropriate fees due to State Board of Dental Examiners. 
There will be no effect on small and large businesses. The anticipated economic 
costs to persons and/or dental schools required to comply with the rule as 
proposed will be contingent upon the costs associated with each application, 
registration, tracking number, et cetera. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act, and Article 4550a sec.1 and sec.2, Article 4550c, 
Article 4551e sec.5, Article 4551f sec.6, Article 4547, Article 4545a, and 
Article 4544 sec.1 and sec.2 and sec.467.0041, Title 6, Chapter 467 of the 
Health and Safety Code, Peer Assistance Programs. The proposed amended rule does 
not affect other statutes, articles, or codes. 

sec.102.1. <nl>Fee Schedule<ol> [Licensing and Examination Fees].
(a) <nl>Dentists.<ol> [Any person desiring to obtain a license to practice 
dentistry, dental hygiene and operate a dental laboratory in the State of Texas 
shall pay the following fees:] 
(1) <nl>Application for licensure by examination<ol> [ dental examination fee: 
$150]: 
<nl>(A)<ol> initial application/examination: $150; and 
<nl>(B)<ol> initial assessment by the Texas Legislature for deposit to the 
General Revenue Fund: $200; 
(2) <nl>Annual registration<ol> [dental hygiene examination fee:] $70. 
(3) <nl>Annual peer assistance: $9.00.<ol> [ dental laboratory application fee: 
$100] 
(4) <nl>Annual assessment by Texas Legislature for deposit to the General 
Revenue Fund: $200.<ol> [dental licensure by credentials application fee $2,000] 
(5) <nl>Application for licensure by credentials: $2,000. <ol> [dental hygiene 
licensure by credentials application fee: $475
<nl>(6)<ol> Duplicate license: $15.
<nl>(7)<ol> Duplicate renewal certificate: $15. 
<nl>(8)<ol> Reactivate a retired license: $250. 
(b) <nl>Dental Hygienists:<ol> [Any person licensed to practice dentistry, 
dental hygiene and operate a dental laboratory in the State of Texas shall pay 
the following annual renewal fees:] 
(1) <nl>application for licensure by examination:<ol> [ dentists:] $70; 
(2) <nl>annual registration:<ol> [dental hygienists:] $41; 
(3) <nl>annual peer assistance: $2.00;<ol> [ dental laboratory: $100] 
<nl>(4)<ol> application for licensure by credentials: $475; 
<nl>(5)<ol> duplicate license: $15;
<nl>(6)<ol> duplicate renewal certificate: $15; and
<nl>(7)<ol> reactivate a retired license: $250. 
(c) <nl>Dental laboratories: <ol>[The peer assistance fee for dentists shall be 
$9.00] 
<nl>(1)<ol> initial application: $100; and
<nl>(2)<ol> annual registration: $100.
(d) <nl>Application for faculty member exception tracking (identification) 
number: $75.<ol> [The peer assistance fee for dental hygienists shall be $2.00] 
(e) <nl>Application for dental intern or resident exception tracking 
(identification) number: $25.<ol> [A duplicate license fee shall be $15] 
[(f) A duplicate renewal certificate fee shall be $15.] 
[(g) The administrative fee to reactivate a retired license shall be $250.] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801316
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 103. Dental Hygiene Licensure
22 TAC sec.103.4
The State Board of Dental Examiners proposes new sec.103.4, concerning staggered 
dental hygiene registrations. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. There will be no fiscal impact on state government 
because the proposed rule describes procedures already in place as authorized by 
the Dental Practice Act at Article 4550b. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that Board rules will clarify for dental hygiene licensees the 
procedure by which dental hygiene registrations are staggered and the fees due 
for the initial staggered registration period and subsequent annual renewals. 
There will be no effect on small and large businesses. The economic costs to 
persons who are required to comply with the rule as proposed will be contingent 
upon their placement in the staggered registration system. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4550b, which provides that the Board 
by rule may adopt a staggered registration system. 
The proposed new rule does not affect other statutes, articles, or codes.

sec.103.4. Staggered Dental Hygiene Registrations. 
The State Board of Dental Examiners, pursuant to Article 4550b, V.T.C.S., has 
established a staggered license registration system comprised of initial dental 
hygiene license registration periods followed by annual registrations (i.e., 
renewals).
(1) The initial dental hygiene license registration periods will range from 6 
months to 17 months Each dental hygienist for whom an initial dental hygiene 
license registration is issued will be assigned a computer generated check 
digit. The length of the initial license registration period will be determined 
on the basis of the assigned check digit as follows: 
(A) a dental hygienist assigned to check digit 1 will be registered for 6 
months; 
(B) a dental hygienist assigned to check digit 2 will be registered for 7 
months; 
(C) a dental hygienist assigned to check digit 3 will be registered for 8 
months; 
(D) a dental hygienist assigned to check digit 4 will be registered for 9 
months; 
(E) a dental hygienist assigned to check digit 5 will be registered for 11 
months; 
(F) a dental hygienist assigned to check digit 6 will be registered for 12 
months; 
(G) a dental hygienist assigned to check digit 7 will be registered for 13 
months; 
(H) a dental hygienist assigned to check digit 8 will be registered for 14 
months; 
(I) a dental hygienist assigned to check digit 9 will be registered for 15 
months; and 
(J) a dental hygienist assigned to check digit 10 will be registered for 17 
months. 
(2) For individuals who qualify for dental hygiene licensure by examination, the 
initial dental hygiene license registration fees will be as follows: 
(A) an annual license registration fee of $41 prorated according to the number 
of months in the initial registration period; and 
(B) $2.00 for peer assistance. 
(3) For individuals who qualify for dental hygiene licensure by credentials, the 
initial dental hygiene license registration fees will be as follows: 
(A) an annual license registration fee of $41 prorated according to the number 
of months in the initial registration period; and 
(B) $2.00 for peer assistance. 
(4) Subsequent to the initial registration period, a licensee's annual 
registration (renewal) will occur on the first day of the month that follows the 
last month of his/her initial dental hygiene license registration period. 
Pursuant to sec.102.1(b) of this title (relating to Fee Schedule) the licensee 
will pay the following fee for each annual registration (i.e., renewal): 
(A) a license registration fee of $41; and 
(B) $2.00 for peer assistance. 
(5) Approximately 60 days prior to the expiration date of the initial dental 
hygiene license registration period, a license renewal notice will be mailed to 
all dental hygiene licensees who have that expiration date. 
(6) A license registration expired for more than one year may not be renewed. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801317
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 104. Continuing Education
22 TAC sec.104.1
The State Board of Dental Examiners proposes an amendment to sec.104.1, 
concerning requirements for continuing education. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that individuals who cannot meet the continuing education 
requirements may have alternative methods available to them, credit for 
interactive computer courses can be given, and the term "scientific or 
technical" is better defined. 
There will be no effect on small and large businesses. There are no anticipated 
economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4544 sec.5 and Article 4551e. The 
amended sec.3 is proposed to allow individuals who are not able to obtain 
continuing education to request the Board to approve alternatives to meet 
continuing education requirements. Proposed sec.5 is amended to provide a 
definition of the term "scientific or technical." Proposed sec.9 is added to 
allow credit for up to twelve hours per three year period for interactive 
computer courses. 
The proposed amended rule does not affect other statutes, articles, or codes. 

sec.104.1. Requirement. 
As a prerequisite to the annual renewal of a dentist's license or a dental 
hygienist's license, 36 hours of acceptable continuing education are required to 
be completed by the applicant within a three-year period as defined in 
paragraphs (1)-(9) of this section: 
(1)-(2) (No Change.) 
(3) Each licensee shall select and participate in the continuing education 
courses endorsed by the providers identified in sec.104.2 of this title 
(relating to Provider's Continuing Eduction). <nl>Alternatively, a licensee who 
is unable to meet education course requirements as cited in paragraph (5) of 
this section may request that alternative courses or procedures be approved by 
the Continuing Education Committee.<ol> 
<nl>(A)<ol> Such requests must be in writing and submitted to and approved by 
the Continuing Education Committee prior to the expiration of the three-year 
period for which the alternative is being requested. 
<nl>(B)<ol> A licensee must provide supporting documentation detailing the 
reason why the continuing education requirements set forth in paragraph (5) of 
this section cannot be met and must submit a proposal for alternative education 
procedures. 
<nl>(C)<ol> Acceptable causes may include residence outside the Untied States, 
unanticipated financial or medical hardships, or other extraordinary 
circumstances that are documented. 
<nl>(D)<ol> Should the request be denied, the licensee must complete 
requirements as cited in paragraph (5) of this section. 
(4) (No Change.) 
(5) All 36 hours must be either technical or scientific as related to clinical 
care. <nl>The term "technical or scientific" as applied to continuing education 
shall mean that courses have significant intellectual or practical content and 
are designed to directly enhance the practitioner's knowledge and skill in 
providing clinical care to the individual patient.<ol> 
(6)-(8) (No Change.) 
(9) Individual courses and/or instructors will be approved by providers cited in 
sec.104.2 of this title. <nl>No more than 12 hours in a 36-hour accumulation may 
be interactive computerized courses. These hours must be provided by those 
entities cited in sec.104.2 of this title. Examples of interactive computer 
courses include those that involve interactive dialog through electronic linkage 
with an instructor in which manipulation of text or data by the licensee 
occurs.<ol> 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801318
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

CHAPTER 107. Dental Board Procedures
Procedures Governing Grievances, Hearings, and Appeals
22 TAC sec.107.63
The State Board of Dental Examiners proposes an amendment to sec.107.63, 
concerning informal disposition. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that informal settlement conferences can be conducted as closed 
meetings thereby facilitating settlement of complaints. 
There will be no effect on small and large businesses. There are no anticipated 
economic costs to persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before March 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543 sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act. The proposed amendments will make it clear that 
panels of board members who participate in informal settlement conferences act 
only in an advisory capacity to the board. The rule as currently written allows 
the panel to dismiss cases; the amendment will allow the panel to only recommend 
dismissal to the board. Further, the panel no longer will be empowered to order 
further investigations but rather to refer a case to the Board Secretary for 
further action. 
The proposed amended rule does not affect other statutes, articles, or codes. 

sec.107.63. Informal Disposition. 
Pursuant to the Administrative Procedure and Texas Register Act, sec.13(e), 
ultimate disposition of any complaint or matter pending before the Board may be 
made by stipulation, agreed settlement, or consent order. Such informal 
dispositions will facilitate the expeditious change or correction of dental 
practice patterns which constitute violations of the Dental Practice Act or the 
rules of the Board. 
(1) (No change.) 
(2) Procedure. Upon referral by the secretary or executive director of a 
complaint or other matter for possible resolution by stipulation, agreed 
settlement, or consent order, the following procedure shall be followed.
(A)-(F) (No change.) 
(G) At the conclusion of the settlement conference, the Board's 
representative(s) shall make recommendations to the licensee for resolution or 
correction of any alleged violations of the Dental Practice Act or of the Board 
rules. Such recommendations may include any disciplinary actions authorized by 
the Dental Practice Act, Texas Civil Statutes, Article 4549, sec.3. The Board's 
representative(s) may, <nl>on the basis<ol> [also conclude] that a violation of 
the Dental Practice Act or the Board's rules has not been established 
<nl>recommend that <ol>[and may order] the case be closed, or the case may be 
referred <nl>to the Board Secretary <ol> for further investigation. 
(H)-(J) (No change.) 
<nl>(K)<ol> A recommendation to close a case requires no action by the 
Respondent prior to its presentation to the Board. 
(3) Consideration by the Board. 
(A) (No change.) 
(B) Upon an affirmative majority vote, the Board shall <nl> either<ol> enter an 
order approving the proposed settlement agreements<nl>, or without entry of an 
order, approve the recommendation to close.<ol> Said order shall bear the 
signature of the president and secretary of the Board, or of the officer 
presiding at such meeting and shall be included in the minutes of the Board. 
(C) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 28, 1998.
TRD-9801319
Douglas A. Beran, Ph.D. 
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6400

TITLE 25. HEALTH SERVICES
PART II. Texas Department of Mental Health and Mental Retardation 
CHAPTER 409.Medicaid Programs
SUBCHAPTER L.Mental Retardation Local Authority (MRLA) Pilot Program
25 TAC 409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 409.531,
409.533, 409.535, 409.537, 409.539, 409.541
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
new sec.sec.409.517, 409.519, 409.521, 409.523, 409.525, 409.527, 409.529, 
409.531, 409.533, 409.535, 409.537, 409.539, and 409.541 of Chapter 409, 
Subchapter L, concerning Mental Retardation Local Authority (MRLA) Pilot 
Program. 
The proposed new sections would govern the MRLA Pilot Program authorized by 
sec.533.0355 of the Texas Health and Safety Code, which allows the department to 
implement a pilot project to study an authority structure for service delivery 
at the local or regional level through a pilot mental health or mental 
retardation authority. This subchapter is also adopted in response to Senate 
Concurrent Resolution 55 of the 74th Texas Legislature which requires the State 
Medicaid Office to apply for a federal waiver to allow a consumer-directed pilot 
program for persons with mental retardation and other developmental 
disabilities. The State Medicaid Office, Texas Health and Human Services 
Commission, has delegated the authority to operate this pilot program to TDMHMR. 
The MRLA Pilot Program would be implementation on April 1, 1998, contingent on 
the approval of a waiver request submitted by TDMHMR to the Health Care 
Financing Administration.
The first part of the subchapter, proposed in the January 12, 1998, issue of the 
Texas Register (22 TexReg 12243-12248), provides the basic framework necessary 
to implement the MRLA Pilot Program: provisions related to the geographic 
boundaries of the pilot, service components, client eligibility criteria, 
payment categories and provider claims payment, criteria for payment, 
utilization review, other provider requirements, and the provider's right to an 
administrative hearing. The subchapter is being proposed in stages to enable 
implementation of the MRLA Pilot Program on April 1, 1998, which will provide 
for access to federal and state funds to serve an additional 225 individuals who 
are currently on waiting lists. 
The proposed sections in this issue of the Texas Register represent the second 
part of the subchapter. These sections deal with maintenance of consumer waiting 
lists, processes for applicant enrollment, certification of providers, 
corrective actions and sanctions, payment of rejected claims, calculation of 
consumer copayment, and provider certification standards. A related action, 
published in the December 19, 1997, issue of the Texas Register (22 TexReg 
12369-12372), is the proposal of rules by the Health and Human Services 
Commission to describe cost reimbursement methodology requirements for the pilot 
program. Responsibility for adopting rules governing the determination of fees, 
charges, and rates for Medicaid payments under Chapter 32, Texas Human Resource 
Code, transferred to the Health and Human Services Commission on September 1, 
1997, pursuant to sec.531.021 of the Texas Government Code. 
Don Green, chief financial officer, has determined that for each year of the 
first five-year period the rule, as proposed, is in effect there will be no 
fiscal implications for state or local government as a result of enforcing or 
administering the proposed sections. 
Ernest McKenney, director, Medicaid Administration, has determined that for each 
year of the first five years the new sections are in effect the public benefit 
anticipated will be that data from the pilot on the role of the local authority 
will be used to improve service delivery systems prior to state wide 
implementation For each year of the first five years the new sections are in 
effect there is no anticipated economic cost to persons who are required to 
comply with the proposed sections. There will be no effect on small business.
A public hearing will be held at 8:30 a.m., Monday, February 23, 1998, in Room 
240 of the main TDMHMR Central Office building (Building 2) at TDMHMR Central 
Office, 909 West 45th Street, Austin, Texas, to accept oral and written 
testimony concerning the proposal. Persons requiring an interpreter for the deaf 
or hearing impaired should notify Sheila Wilkins, Office of Policy Development, 
at least 72 hours prior to the hearing by calling (512) 206-4516. 
Questions about the content of the proposal may be directed to Mr. McKenney. 
Comments on the proposed sections should be submitted to Linda Logan, director, 
Policy Development, Texas Department Mental Health and Mental Retardation, P.O. 
Box 12668, Austin, TX 78711-2668, within 30 days of publication.
The amended sections are proposed under the Texas Health and Safety Code, 
sec.532.015(a), which provides TDMHMR with broad rulemaking authority; Human 
Resource Code, Chapter 32, sec.32.021, and Government Code, Chapter 531, 
sec.531.021, which provide the Texas Health and Human Services Commission 
(THHSC) with the authority to administer federal medical assistance funds and 
administer the state's medical assistance program. Senate Bill 509 of the 74th 
Texas Legislature clarifies THHSC's authority to delegate the operation of all 
or part of a Medicaid program to a health and human service agency. 
The section affects Human Resources Code, Chapter 32, and Government Code, 
Chapter 531, sec.531.021.

sec.409.517.Rejected Claims. 
If the Texas Department of Mental Health and Mental Retardation (TDMHMR) rejects 
a claim because of errors, the provider must research the errors, initiate 
appropriate corrective action, and resubmit a corrected claim to TDMHMR with 
supporting documentation within 180 calendar days from the end of the month of 
service or within 30 days of notification of a rejected claim by TDMHMR, 
whichever is later. 

sec.409.519.Calculation of Consumer Co-payment. 
(a) Consumers who are determined to be financially eligible based on the special 
institutional income limit are required to share in the cost of waiver services. 
The method for determining the consumer's co-payment is described in subsection 
(b) of this section and documented on the Texas Department of Human Services 
Medical Assistance Only Worksheet. When calculating the co-payment amount for 
consumers with incomes that exceed the supplemental security income (SSI) 
federal benefit rate (FBR), deduct the following: 
(1) the cost of the consumer's maintenance needs which must be equivalent to the 
special institutional income limit for eligibility under the Texas Medicaid 
program. 
(2) the cost of the maintenance needs of the consumer's dependent children. This 
amount is equivalent to the Temporary Assistance to Needy Families (TANF) basic 
monthly grant for children or a spouse with children, using the recognizable 
needs amounts in the TANF Budgetary Allowances Chart; and 
(3) the costs incurred for medical or remedial care which are necessary but are 
not subject to payment by Medicare, Medicaid, or any other third party. These 
include the cost of health insurance premiums, deductibles, and co-insurance. 
(b) The co-payment amount is the consumer's remaining income after all allowable 
expenses have been deducted. The co-payment amount is applied only to the cost 
of home and community-based services which are funded through the MRLA Pilot 
Program and specified on the consumer's IPC. The co-payment must not exceed the 
cost of services actually delivered. 
(c) Consumers must pay the cost sharing amount to the provider contracted to 
deliver authorized waiver services. 

sec.409.521.Spousal Impoverishment Provisions. 
(a) For program consumers with spouses who live in the community, the income and 
resource eligibility requirements are determined according to the spousal 
impoverishment provisions in the Social Security Act, sec.1924, and as specified 
in the Medicaid State Plan and in sec.409.505 (a)(1) of this title (relating to 
Client Eligibility Criteria.) 
(b) After the consumer is determined to be eligible for Medicaid, the Texas 
Department of Human Services (TDHS) determines the amount of the consumer's 
income applicable to payment. 
(c) To determine the amount of the consumer's income applicable to payment, TDHS 
uses the same methodology as if the consumer were residing in an institution, 
except that the personal needs allowance is equal to the institutional income 
cap. The spousal diversion is equal to the SSI income limit. 

sec.409.523.Maintenance of MRLA Pilot Program Referral List. 
(a) The local MRA will maintain an up-to-date list of individuals living in and 
waiting for MRLA Pilot Program services in the MRA's local service area.
(1) The MRA will assign the individual's placement on the referral list, 
chronologically by date of application. 
(2) The MRA will notify MRLA Pilot Program providers in its local service area 
of the process providers should use to refer applicants who wish to be placed on 
the referral list. 
(3) The MRA may disregard an applicant on the referral list only when the 
following documentation exists: 
(A) written permission of the applicant or the applicant's legal representative 
to remove the applicant's name from the referral list;
(B) the applicant is deceased; 
(C) the applicant moved out of the local service area; or
(D) TDMHMR has denied the applicant's enrollment and the applicant or the 
applicant's legal representative has had an opportunity to exercise the 
applicant's right to appeal the decision according to sec.409.505 of this title 
(relating to Client Eligibility Criteria). 
(4) At the written request of an applicant or the legal representative of an 
applicant who moves to the local service area of a different MRA, the original 
MRA will assist in transferring the applicant's name and current application 
date to the MRA having jurisdiction in the local service area where the 
applicant has moved. The MRA receiving the referral transfer will add the 
individual's name to its referral list maintaining the current application date 
assigned by the transferring MRA. 

sec.409.525.Process for Applicant Referral and Enrollment. 
(a) The MRA designated by TDMHMR for the geographic area in which the applicant 
resides will receive all requests from applicants seeking enrollment into the 
MRLA Pilot Program. 
(1) The MRA will register the applicant on the MRA's referral list as specified 
in sec. 409.523 of this title (relating to Maintenance of MRLA Pilot Program 
Referral List). 
(2) The MRA will notify the first applicant on the referral list when a 
placement vacancy occurs in the MRA's local service area and begin the 
referral/enrollment process by informing the applicant and/or the applicant's 
legal representative of his/her choice between participation in the ICF-MR 
Program or the MRLA Pilot Program and documenting the applicant's or the 
representative's choice of services. 
(3) If the applicant or representative chooses participation in the MRLA Pilot 
Program, the MRA will assign a Service Coordinator who will develop a Person-
Directed Plan (PDP). At minimum, the PDP will include the following: 
(A) a description of the services and supports the individual requires to 
continue living in the community; 
(B) a description of the individual's current services and supports, identifying 
those that would continue to be available if the individual enrolled in the MRLA 
Pilot Program (e.g., services not covered under the approved waiver); 
(C) individual outcomes to be achieved through MRLA Pilot Program service 
components and justification for each service component to be included in the 
applicant's IPC; 
(D) identification of all determinations needed to establish the applicant's 
eligibility for SSI or Medicaid benefits and for an ICF-MR Level of Care (LOC); 
and 
(E) actions and methods to be used to reach identified service outcomes, 
projected completion dates, and person(s) responsible for completion.
(4) The service coordinator prepares an application for the individual's 
enrollment into the MRLA Pilot Program. 
(A) If the applicant's financial eligibility for the MRLA Pilot Program must be 
established, the MRA will initiate, monitor, and support the individual's 
application processes necessary to obtain a financial eligibility determination. 
(B) The MRA will complete an LOC assessment form. The MRA will determine or 
validate a determination that the applicant has mental retardation in accordance 
with Chapter 405, Subchapter D of this title (relating to Determination of 
Mental Retardation and Appropriateness for Admission to Mental Retardation 
Services) or verify that the individual has been diagnosed by a licensed 
physician as having a related condition as defined in sec.406.202 of this title 
(relating to Definitions for Level-of-Care and Level-of-Need Criteria). The MRA 
will administer the Inventory for Client and Agency Planning (ICAP) and 
recommend a level-of-need assignment to TDMHMR in accordance with sec.409.507 of 
this title (related to Payment Category Assignment and Provider Claims Payment).
(C) Develop a proposed IPC with the applicant based on the PDP and 
sec.409.503(b) of this title (relating to Service Components of the MRLA 
Program). 
(5) The Service Coordinator will inform the applicant or the applicant's legal 
representative of all available MRLA Pilot Program providers in the local 
service area. The Service Coordinator will: 
(A) assist the applicant or the applicant's legal representative in selecting 
potential providers within the local service area; 
(B) review the proposed IPC with potential provider agencies as selected by the 
applicant or the applicant's legal representative; 
(C) arrange for meetings/visits with potential providers as desired by the 
applicant or the applicant's legal representative; 
(D) assure that the applicant's or representative's choice of a specific 
provider is documented, is signed by the applicant or the applicant's 
representative and is retained by the MRA in the individual's record; and
(E) negotiate/finalize the proposed IPC to be delivered by the selected 
provider.
(b) When the selected provider has agreed to deliver the services delineated on 
the IPC, the MRA will submit the application for enrollment to TDMHMR. TDMHMR 
will send notification of the applicant's approval or denial of MRLA Pilot 
Program enrollment to the applicant, the selected provider, and the responsible 
MRA. 
(c) The selected provider will initiate services in accordance with the approved 
IPC upon receipt of TDMHMR's enrollment approval. 

sec.409.527.Revisions and Renewals of IPCs, LOCs and LONs for Enrolled 
Individuals.
(a) At least annually, but prior to the expiration of an individual's IPC, the 
service coordinator, the individual, the individual's legal representative, and 
the provider must review the PDP to assure individual outcomes previously 
identified are relevant. The IPC is reviewed by the service planning team, 
updated to reflect any changes to the PDP, and is submitted to TDMHMR for 
approval. 
(b) The service coordinator, in collaboration with the service planning team, 
will initiate revisions to the IPC in response to changes in the individual's 
needs as documented in the current PDP. 

sec.409.529.Coordination of Transfers and Permanent Discharges. 
(a) Individuals who are currently receiving services from an HCS or HCS-O 
Program provider and who are moving to a geographic area covered by the MRLA 
Pilot Program may request to transfer their services to an MRLA Pilot Program 
provider. The service coordinator from the receiving MRA will:
(1) coordinate with the individual and their current HCS or HCS-O provider to 
facilitate selection of a provider and enrollment in the MRLA Pilot Program. 
(2) determine in conjunction with the current HCS or HCS-O provider and the 
receiving MRLA provider, an effective date for enrollment.
(3) review the current IPC with the individual and the receiving MRLA provider 
and will negotiate and finalize the initial MRLA Pilot Program IPC. The 
effective date of the individual's IPC as established in the HCS or HCS-O 
Program will not be changed upon enrollment with an MRLA provider. 
(b) Individuals currently receiving services within the MRLA Pilot Program may 
request to transfer their services to another MRLA provider in any of the local 
service areas specified in sec.409.501(a) of this title (relating to Geographic 
Area of the MRLA Pilot Program). 
(1) If an individual is transferring to a provider within the same MRA, the 
service coordinator will coordinate with the individual, the current provider, 
and the receiving provider to facilitate the transfer.
(2) If the transfer will be to another MRA in the MRLA Pilot Program, the 
sending and receiving MRAs will coordinate the transfer. The receiving service 
coordinator will review the current IPC with the individual and the receiving 
MRLA provider and will initiate any changes if needed. The effective date of the 
individual's IPC will not be changed upon transfer to another provider. 
(3) The MRAs will determine in conjunction with the current provider and the 
receiving MRLA provider, an effective date for transfer.
(c) Individuals who are moving outside the geographic area of the MRLA Pilot 
Program and who are currently receiving services from an MRLA provider may 
request to transfer their services to an HCS or HCS-O Program provider in the 
area to which they are moving. 
(1) If the individual is seeking HCS-O Program services, the service coordinator 
will confirm the individual's eligibility with TDMHMR.
(2) The receiving MRA will assist the individual or the individual's 
representative to facilitate selection of an HCS or HCS-O provider.
(3) The current and the receiving MRAs will determine in conjunction with the 
current MRLA provider and the receiving HCS or HCS-O provider an effective date 
for enrollment. 
(4) The effective date of the individual's IPC as established in the MRLA Pilot 
Program will not be changed upon enrollment into the HCS or HCS-O Program. 
(d) TDMHMR must approve all discharges from program services.
(1) The service coordinator must submit the request to TDMHMR to discharge an 
individual from program services. 
(2) TDMHMR will send a written discharge notification to the participant or the 
participant's representative, the provider, and the MRA indicating the effective 
date of the discharge and the participant's right to a fair hearing in 
accordance with sec.409.505 of this title (relating to Client Eligibility 
Criteria). 

sec.409.531.Certification Status.
(a) Program providers contracted with TDMHMR for participation in the MRLA Pilot 
Program must be in continuous compliance with the MRLA Pilot Program Principles 
for Program Providers as described in Each program provider participating in the 
MRLA Pilot Program will receive a certification review conducted by TDMHMR or 
its designee at least annually in order to maintain certification status.
Figure 1:25 TAC sec.409.531(a).
(1) TDMHMR personnel will conduct all certification reviews of program providers 
operated by the local Mental Retardation Authority. 
(2) TDMHMR or its designee will conduct all certification reviews of non-MRA 
operated program providers. 
(b) Certification review corrective action plans required from the program 
provider as determined by prior reviews under the HCS or HCS-O Consumer 
Principles for Evidentiary Certification and related timelines remain in effect 
until the first certification review as a program provider participating in the 
MRLA Pilot Program. 

sec.409.533.Hazards to Health, Safety, and Welfare. 
A hazard to health, safety, and welfare is any condition that the review team 
determines may result in imminent death, or serious or permanent harm to an 
individual. A hazard is designated as such in the MRLA Pilot Program 
certification review report. If the hazard is corrected during the review visit, 
the corrections will also be designated in the report. 
(1) Immediate Corrective Action. Findings determined to be a hazard to health, 
safety and welfare must be corrected by the program provider before the exit 
conference of the respective review. 
(2) Sanctions. If the program provider does not correct the hazard to health, 
safety, and welfare before the exit conference, 
(A) the program provider will be denied certification, and
(B) the MRA with permission of the Texas Department of Mental Health and Mental 
Retardation (TDMHMR) will immediately coordinate development of alternative 
services for people enrolled in the provider's program, as appropriate. 

sec.409.535.Compliance. 
If any item of noncompliance with the MRLA Pilot Program Evidentiary Principles 
for Program Providers remains uncorrected at the time of the exit conference, 
the program provider must complete corrective action within 30 calendar days 
following the exit conference. TDMHMR or its designee must complete a follow-up 
review within 15 calendar days following the 30th day. The follow-up review may 
be either a desk review of documentation or an on-site review at the review 
team's discretion. 

sec.409.537. Sanctions. 
(a) If the program provider does not correct all remaining items of 
noncompliance by the completion of the first follow-up review, a vendor hold may 
be implemented and will continue until corrective action is confirmed by TDMHMR. 
(1) TDMHMR or its designee will complete a second follow-up review between 30 
and 60 calendar days from the date the vendor hold was implemented.
(2) If the program provider corrects all items of noncompliance by the 
completion of the second follow-up review, the vendor hold is removed effective 
the date the review is completed. 
(b) TDMHMR denies certification and initiates contract cancellation if the 
program provider does not correct all items of noncompliance by the completion 
of the second follow-up review. 

sec.409.539.Unannounced or Intermittent Review Visits. 
(a) TDMHMR or its designee may conduct unannounced or intermittent review visits 
at any time, with or without prior notice to the program provider.
(b) Items of noncompliance noted in unannounced or intermittent review visits 
may result in certification action described in sec.sec.409.533 and .537 of this 
title (relating to Hazards to Health, Safety, and Welfare; Compliance; and 
Sanctions). 

sec.409.541.Compliance with MRLA Pilot Program Principles for Mental Retardation 
Authorities. 
(a) Mental Retardation Authorities participating in the MRLA Pilot Program must 
be in continuous compliance with the MRLA Pilot Program Principles for 
Authorities as described in 
Figure 2:25 TAC sec.409.541(a). 
(b) Each Mental Retardation Authority participating in the MRLA Pilot Program 
will receive a compliance review conducted by TDMHMR at least annually. 
(c) If any item of noncompliance remains uncorrected by the Mental Retardation 
Authority at the time of the review exit conference, the Mental Retardation 
Authority will develop a plan of correction with timelines to be implemented 
after approval by TDMHMR. TDMHMR may take action as specified in the performance 
contract between the local Mental Retardation Authority and TDMHMR if the MRA 
fails to develop or implement an approved plan of correction.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801449
Ann Utley
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 206-45516

TITLE 28. INSURANCE
PART I. Texas Department of Insurance
CHAPTER 5.Property and Casualty Insurance
SUBCHAPTER A.Automobile Insurance
Notice Requirements to Claimants Regarding Motor Vehicle Repairs
28 TAC sec.5.501
The Texas Department of Insurance proposes new sec.5.501 concerning the 
procedures that an insurer (including a person acting on behalf of an insurer) 
must follow in order to give the required notice to beneficiaries or third-party 
claimants regarding their motor vehicle repair rights under the Insurance Code, 
Article 5.07-1. Article 5.07-1 was amended by House Bill 423, 75th Texas 
Legislature, 1997, to mandate that the commissioner adopt a rule establishing 
the method or methods insurers shall use to comply with the notice provisions 
contained in section (e) of 5.07-1. The proposed rule requires the insurer to 
provide the notice to a beneficiary or third-party claimant. One requirement of 
the proposed rule is for an insurer to give a copy of the prescribed notice to 
any claimant at the time the vehicle is presented to the insurer in connection 
with a claim for damage repair. If the vehicle is presented to the insurer, the 
notice must be given at that time. The proposed rule alternatively provides that 
if the claim is made by means other than presentation of the vehicle to the 
insurer, then the insurer must mail the prescribed notice to any claimant who is 
not otherwise given the notice within three business days from the making of the 
claim. In such a case, the insurer must mail the notice within three business 
days of receiving notice of the claim by other means (such as in writing or by 
telephone), unless the notice is delivered to the claimant by some other means 
within that time. 
House Bill 423, enacted by the 75th Texas Legislature, 1997, amended Article 
5.07-1 entitled Disclosure of Consumer Information. Newly added section (e) of 
Article 5.07-1 provides, "At the time the vehicle is presented to an insurer or 
an insurance adjuster or other person in connection with a claim for damage 
repair, the insurer or insurance adjuster or other person shall provide to the 
beneficiary or third-party claimant notice of the provisions of this article." 
Section (e) also provides that the commissioner shall adopt a rule establishing 
the method or methods insurers shall use to comply with the notice provisions in 
this section. The proposed rule is necessary to implement the provisions of 
section (e) of Article 5.07-1. The proposed rule establishes the methods to be 
used to provide notice to a beneficiary or third-party claimant and prescribes 
the actual notice that must be provided by an insurer. The proposed rule defines 
the term "insurer" to include any person acting on behalf of an insurer through 
actual or apparent authority, regardless of whether employed by the insurer. 
This definition is in accord with the statutory language which requires the 
notice to be given by the insurer, insurance adjuster or "other person" in 
connection with a claim for damage repair. The requirement of the proposed rule 
that an insurer provide the notice to a beneficiary or third-party claimant is 
necessary to comply with the terms of Article 5.07-1. Under the proposed rule, 
when the vehicle is presented to the insurer, the prescribed notice must be 
given to the claimant at that time. This method of notification complies with 
the specific requirement of section (e) of Article 5.07-1 which specifies that 
the notice must be given when the vehicle is presented to an insurer. The 
proposed rule also requires an insurer to mail the prescribed notice to a 
claimant within three business days of receiving notice of the claim when the 
claim is made by means other than the presentation of the vehicle to an insurer. 
The proposed rule allows an exception to the mailing of the notice if the 
insurer delivers the notice to the claimant by some other means within three 
business days of the claim. This additional method for providing notice to a 
beneficiary or third-party claimant is necessary to ensure that all 
beneficiaries and third-party claimants who submit a claim to an insurer receive 
notification of the provisions of Article 5.07-1. In many cases, an insurer's 
claims handling procedure will not require the claimant to present the vehicle 
to the insurer. Without the additional method for providing notice, many 
claimants may not obtain information about their rights in connection with a 
motor vehicle repair. The proposed rule ensures complete disclosure of the 
contents of Article 5.07-1 to each claimant. The proposed rule allows an insurer 
to send, along with the notice, a letter that addresses the issue of liability. 
The proposed rule also allows the insurer to include in the notice an optional 
provision which explains that providing the notice does not constitute an 
admission of liability by the insurance company. This optional provision, 
concerning the insurer's liability, is intended to alleviate the potential for 
misconceptions concerning the purpose and meaning of the notice. The proposed 
rule requires that the notice be printed in at least 10 point type on a separate 
page from any other material, and must be attached to, or printed on the reverse 
side of a copy of Article 5.07-1. The type-size requirement is intended to make 
the notice conspicuous. Similarly, the proposed section requires that the notice 
and statute be provided together, but separate from any letter or other 
material, to help draw the claimant's attention to the information and to 
provide all of the pertinent information to the claimant in a compact manner. 
David Durden, deputy commissioner for property and casualty lines has determined 
that for the first five-year period the proposed amendment is in effect, there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the section and there will be no effect on local 
employment or the local economy. 
Mr. Durden has also determined that for each year of the first five years the 
proposed amendment is in effect, the public benefit anticipated as a result of 
administering the section will be that consumers who have automobile insurance 
claims that involve repair of damage to their vehicles will obtain information 
concerning their rights in connection with a motor vehicle repair. Mr. Durden 
estimates that for the first five years the section is in effect, the cost to 
persons required to comply with the notice requirements will be $9,568,702. The 
cost of compliance with this rule is the cost to insurers who must provide the 
notice to claimants during the claims settlement process. The cost estimate is 
based on information provided by a sample of insurance companies in response to 
an informal survey sent out by the department and also data reported by a sample 
of insurance companies in their Fast Track statistical reports. The survey 
revealed that insurers estimated the additional time added to each claims 
handling transaction would range from .5 minutes to 5 minutes per transaction at 
$.23 to $.77 per minute. The labor cost estimate for the first year of $1.00 per 
transaction is based on a time estimate of 2 minutes per transaction at $.50 per 
minute. The labor cost per transaction is a blended cost that would include all 
transactions done, including both those transactions conducted in person and 
through the mail. The additional costs per transaction also include $.23 for 
postage and $.04 for system, printing, and paper. The postage cost is estimated 
to be $.23 per transaction rather than $.29 because this cost is reduced to 
reflect that 20% of the transactions are done in person and not by mail. The 
total cost per transaction for the first year is estimated to be $1.27. The 
first year cost per transaction figure of $1.27 is adjusted for inflation at a 
rate of 2% to arrive at $1.30 for the second year. The first year cost per 
transaction figure is further adjusted for inflation at a rate of 2.5% for years 
3-5 to arrive at $1.33 for the third year, $1.36 for the fourth year, and $1.40 
for the fifth year. The number of auto insurance claims per year was estimated 
from an average of the data reported by a sample of insurers in the survey and 
from estimated industry claims from Fast Track data to be 1,439,082 claims 
transactions per year. The total cost for each of the five years was calculated 
by multiplying the estimated cost per transaction for each year by the estimated 
number of claims transactions per year. The total cost to insurers is estimated 
to be $1,827,635 in the first year, $1,864,187 in the second year, $1,910,792 in 
the third year, $1,958,562 in the fourth year, and $2,007,526 in the fifth year. 
Mr. Durden has determined that the effect of this section on small businesses 
results mostly, if not entirely, from the legislative enactment of HB 423 which 
mandates that the commissioner adopt a rule establishing the method insurers 
shall use to comply with the notice provisions contained in Article 5.07-1. The 
maximum additional cost for insurers that can be associated with this proposed 
section ranges from $1.27 per transaction for the first year to $1.40 for the 
fifth year. The total cost to an insurer depends upon the number of claims that 
the insurer handles in a given year. Both small and large insurers affected by 
this section would incur the same costs for each notice given to a consumer. The 
cost per hour of labor; postage; and for system, printing and paper would not 
vary between the large and small insurers. The requirement of notice in this 
section is mandated by the underlying statute and cannot be waived for small 
businesses. 
Comments on the proposal to be considered by the Department must be submitted 
within 30 days after publication of the proposed section in the Texas Register 
to Caroline Scott, General Counsel and Chief Clerk, Texas Department of 
Insurance, P. O. Box 149104, Mail Code 113-2A, Austin, Texas 78714-9104. An 
additional copy of the comment should be submitted to David Durden, Deputy 
Commissioner for Property and Casualty Lines, Texas Department of Insurance, P. 
O. Box 149104, Mail Code 104-5A, Austin, Texas 78714-9104.
The amendment is proposed under the Insurance Code, Articles 5.07-1, 5.10, 5.98, 
and 1.03A; and the Government Code sec.sec.2001.004-2001.038. Article 5.07-1 
requires the commissioner to adopt a rule establishing the method that insurers 
must use to provide claimants with notice of their repair rights as specified in 
Article 5.07-1. Article 5.10 authorizes the commissioner to adopt and enforce 
all reasonable rules and regulations that are consistent with subchapter A of 
Chapter 5. Article 5.98 authorizes the commissioner to adopt reasonable rules 
and rates that are appropriate to accomplish the purposes of Chapter 5. Article 
1.03A authorizes the commissioner to adopt rules and regulations, which must be 
for general and uniform regulation, for the conduct and execution of the duties 
and functions of the department only as authorized by a statute. The Government 
Code, sec.sec.2001.004-2001.038 (Administrative Procedure Act) authorize and 
require each state agency to adopt rules of practice stating the nature and 
requirements of available formal and informal procedures and prescribe the 
procedures for adoption of rules by a state administrative agency. 
The following articles of the Insurance Code are affected by this section: 
Insurance Code, Articles 5.07-1, 5.10, and 5.98 

sec.5.501. Notice Requirements To Claimants Regarding Motor Vehicle Repairs. 
(a) The word "insurer" as used in this rule, includes any person acting on 
behalf of an insurer through actual or apparent authority, regardless of whether 
employed by the insurer. 
(b) An insurer must give the notice prescribed by this rule to any beneficiary 
or third-party claimant who makes a claim regarding damage to a vehicle. If a 
claimant presents the vehicle to the insurer in connection with a claim for 
damage repair, the notice must be given to the claimant at that time. If the 
claim is made instead by other means (such as in writing or by telephone) an 
insurer must mail the notice to the claimant within three business days of 
receiving notice of the claim, unless the insurer otherwise delivers the 
claimant the notice within those three business days. An insurer, if it chooses 
to address the liability issue initially, may send or deliver its own letter 
along with the notice. The notice may include the Optional Provision. The notice 
must be on a separate page from any letter or other material, except as 
otherwise provided in this rule. 
(c) The notice must be printed in at least ten point type, must be attached to, 
or printed on the reverse side of, a copy of the Insurance Code, Article 5.07-1, 
and must read as follows: 
FIGURE NO. 1: 28 TAC sec.5.501(c) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801451
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6327

CHAPTER 19.Agent's Licensing
SUBCHAPTER I.Licensing Fees
28 TAC sec.19.802
The Texas Department of Insurance proposes an amendment to sec.19.802, 
concerning the amounts of fees for original and renewal applications, 
appointments and examinations for various licensees. This amendment would reduce 
the fees required for an original application and for renewal of a utilization 
review agent certification. Section 3(f) of Insurance Code, Article 21.58A 
(regarding Health Care Utilization Review Agents) states that the department 
shall establish and administer certification and renewal fees in amounts no 
greater than is necessary to cover the cost of administration of the article. 
The current fee for original applications of utilization review agents is 
$2,157, and for renewal applications of utilization review agents is $2076. The 
department proposes to reduce the original application fee to $2,150 and the 
renewal fee to $545 to better reflect the administrative cost to process renewal 
applications for utilization review certification. 
Leah Rummel, Deputy Commissioner, HMO/URA Group, has determined that for each 
year of the first five years the proposed section will be in effect, there will 
be a slight fiscal implication for state government in that the reduction in 
fees remitted to the general revenue will be approximately $230,000. This amount 
is calculated based on an estimate of 150 renewals per year. If a local 
government or small business is an utilization review agent, their costs 
associated with an original application or renewal application will be lower. 
Otherwise, there will be no effect on the local economy or local employment. 
Ms. Rummel has also determined that for each year of the first five years the 
proposed section is in effect, the anticipated public benefit of enforcing the 
section is that utilization review agents will be charged lower original 
application and significantly lower renewal fees that more accurately reflect 
the administrative cost to process their original and renewal applications. 
Since the proposed section lowers the cost of fees for application and renewal 
application of utilization review agents and places no additional burden on the 
agents, there is no anticipated additional cost to comply with the section for 
utilization review agents. Ms. Rummel has determined that there is no adverse 
impact on small businesses as a result of the proposed section. The cost to 
apply for each utilization review agent who is an employee of a large or small 
business, and the cost for each business operating as a utilization review agent 
will be identical and lower under the proposed section. The cost of labor per 
hour is not affected by the proposed section and there is thus no adverse 
economic effect upon small businesses.
Comments on the proposal, to be considered by the department, must be submitted 
in writing, within 30 days after publication of the proposed amendment in the 
Texas Register, to Caroline Scott, General Counsel & Chief Clerk, Texas 
Department of Insurance, P.O. Box 149104, Mail Code 113-1C, Austin, Texas 78714-
9104. An additional copy of the comments must be submitted to Leah Rummel, 
Deputy Commissioner, HMO/URA Group, Texas Department of Insurance, P.O. Box 
149104, MC 108-6A, Austin, Texas 78714-9104. Request for a public hearing should 
be submitted separately to the Chief Clerk's office. 
The amended section is proposed under the Insurance Code, Articles 21.58A and 
1.03A. Insurance Code, Article 21.58A provides for the certification of 
utilization review agents and sets out the standards and procedures to be used 
by such agents when conducting utilization reviews. Section 3(f) of Article 
21.58A states that the department shall establish and administer certification 
and renewal fees in amounts no greater than is necessary to cover the cost of 
administration of the article. Article 1.03A provides that the Commissioner of 
Insurance may adopt rules and regulations to execute the duties and functions of 
the Texas Department of Insurance only as authorized by a statute. The 
Government Code, sec.sec.2001.004 et seq. authorizes and requires each state 
agency to adopt rules of practice setting forth the nature and requirements of 
available procedures and to prescribe the procedures for adoption of rules by a 
state agency. 
The following rules and statutes are affected by the proposed amendment: 
Insurance Code, Article 21.58A 

sec.19.802.Amounts of Fees.
(a) (No change.) 
(b) The amounts of fees are as follows: 
(1)-(21) (No change.) 
(22) utilization review agent: 
(A) original application - <nl>$2,150 <ol> [$2,157
(B) renewal - <nl>$545.<ol> [$2,076.] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 26, 1998.
TRD-9801157
Caroline Scott
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-6327

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART VI. Texas Deparmtent of Criminal Justice
CHAPTER 152.Institutional Division
SUBCHAPTER D.Other Rules
37 TAC sec.152.51
The Texas Department of Criminal Justice proposes an amendment to sec.152.51 
concerning authorized witnesses to the execution of an inmate sentenced to 
death. 
The amendment specifies those persons authorized to witness the execution of an 
inmate sentenced to death based upon the recommendation of the Victim Services 
Division and the approval of the Director of the Texas Department of Criminal 
Justice Institutional Division. 
David P. McNutt, Deputy Director for Administrative Services has determined that 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering this section as proposed. 
Mr. McNutt also has determined that the public benefit anticipated as a result 
of enforcing the section as proposed will be potential closure for family 
members of murder victims. There will be no effect on small businesses. There is 
no anticipated economic cost to individuals, as no individuals have a duty to 
comply. 
Comments should be directed to Carl Reynolds, General Counsel, Texas Department 
of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of this 
proposal. 
The amendment is proposed under the Government Code, sec.492.013, which grants 
general rulemaking authority and the Code of Criminal Procedure, Article 43.20. 
Cross Reference to Statute: Code of Criminal Procedure, Article 43.20.

sec.152.51. Authorized Witnesses to the Execution of an Inmate Sentenced to 
Death. 
(a) (No change.) 
(b) Definition. "Close relative of the deceased victim" means the following 
persons in relation to the victim for whose death an inmate is sentenced to 
death: 
(1)-(3) (No change.) 
(4) another individual with a close relationship to the deceased victim, <nl>or 
to a close relative of the victim,<ol> upon <nl> the recommendation of the 
Victim Services Division (VSD) and <ol>approval <nl> of <ol> [by] the Director 
of the [Institutional Division] Texas Department of Criminal Justice 
Institutional Division (TDCJ-ID).
(c) Witnesses. The only persons authorized to witness an execution are as 
follows: 
(1)-(8) (No change.) 
(9) if there are fewer than five close relatives of the deceased victim<nl>:<ol> 
[,] 
<nl>(A)<ol> additional close relatives of a victim for whose death the inmate 
has been convicted but for whose death the inmate is not sentenced to death<nl>; 
and <ol>[,] 
<nl>(B)<ol> if there are still fewer than five persons, additional close 
relatives of a victim for whose death the inmate is unequivocally responsible, 
upon the recommendation of the Victim Services Division and approval of the 
Director of TDCJ-ID[, up to a total of five close relatives under this paragraph 
and paragraph (8) of this subsection]. 
(d)-(e) (No change.) 
(f) Victim Notification. 
(1) (No change.) 
(2) The VSL/Emergency Action Center (EAC) shall provide a list of scheduled 
executions to the TDCJ <nl>(VSD)<ol> [Victim Services Office (VSO)]. Subsequent 
updates regarding significant changes pertaining to the execution (e.g., dates, 
court rulings, etc.) shall also be providedto the TDCJ <nl>VSD<ol> [VSO] by the 
VSL/EAC in an expedient manner. 
(3) The <nl>VSD<ol> [VSO] is responsible for notifying the relatives of the 
victim of the scheduled execution date, time, and location, upon request. It is 
the responsibility of the relative to notify the TDCJ <nl>VSD<ol> [VSO] of any 
subsequent address changes and their intent to attend. 
(4) The relative of the victim must be identified and approved by the 
<nl>VSD<ol> [VSO]. 
(5) It is the responsibility of the <nl>VSD<ol> [VSO] to notify the VSL, no 
later than five days prior to the scheduled execution date, of the names and 
contact numbers for those persons planning to attend. 
(6) The <nl>VSD<ol> [VSO] shall contact the relative of the victim and provide 
information regarding the written procedures affecting their participation. 
(g) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801436
Carl Reynolds
General Counsel
Texas Department of Criminal Justice
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 46663-9693

CHAPTER 159.Special Programs
37 TAC sec.159.9
The Texas Department of Criminal Justice proposes new sec.159.9 concerning a 
memorandum of understanding between the Department and the Texas Commission on 
Law Enforcement Officer Standards and Education regarding firearms proficiency 
training for supervision officers. House Bill 2909, passed by the 75th 
Legislature, requires the two agencies to enter into the agreement. The new 
section adopts by reference new 37 TAC sec.211.33 proposed by the Texas 
Commission on Law Enforcement Officer Standards and Education in the December 
26, 1997, issue of the Texas Register (22 TexReg 12708). 
David P. McNutt, Deputy Director for Administrative Services has determined that 
there may be fiscal implications for state and local governments as a result of 
enforcing or administering the section as proposed. The Texas Department of 
Criminal Justice will require individual officers to bear the costs of training, 
certification, and equipment if the officer chooses to carry a weapon in the 
course of his or her duties. Local community supervision and corrections 
departments will decide independently as to whether the program will be allowed 
or required, see 37 TAC sec.163.34 adopted in this issue of the Texas Register. 
There are approximately 3,500 probation and community supervision officers in 
the state. It has been estimated by the Texas Commission on Law Enforcement 
Officer Standards and Education that an authorized firearms training program 
will cost between $750 and $1,200 and the Texas Commission on Law Enforcement 
Officer Standards and Education will charge $20 for issuance of a Firearms 
Proficiency Certificate. 
Mr. McNutt also has determined that for each year of the first five years the 
new section is in effect, the public benefit anticipated as a result of 
enforcing the section as proposed will be adequate training and certification 
for supervision officers who choose to or are required to carry weapons in the 
course of their duties. There will be no effect on small businesses. The 
individual supervision officers who choose to or are required to carry weapons 
in the course of their duties may bear the cost of training, certification, and 
equipment. 
Comments should be directed to Carl Reynolds, General Counsel, Texas Department 
of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from 
the general public should be received within 30 days of the publication of this 
proposal. 
The new section is proposed under sec.76.0051, Government Code, which authorizes 
supervision officers to carry weapons; sec.415.038, which requires TCLEOSE 
training for supervision officers; and sec.509.003, which provides general 
rulemaking authority for CJAD standards. 
Cross Reference to Statute: Government Code, sec.76.0051 and sec.415.038.

sec.159.9. Firearms Proficiency Training for Supervision Officers / Memorandum 
of Understanding
(a) The Texas Department of Criminal Justice adopts by reference a memorandum of 
understanding (MOU) with the Texas Commission on Law Enforcement Officer 
Standards and Education, sec.211.33 of this title (relating to Memorandum of 
Understanding Regarding Firearms Proficiency Training for Supervision Officers), 
which establishes the responsibilities between the two agencies in developing a 
basic training program in the use of firearms by community supervision officers 
and parole officers. Section 163.34 of this title (relating to Carrying of 
Weapons) governs the use of firearms for Community Supervision Officers.
(b) The MOU is required by House Bill 2909 (Chapter 1261, Session Laws, 75th 
Legislature). 
(c) Copies of the MOU are filed in the Office of the Texas Commission on Law 
Enforcement Officer Standards and Education, 6330 U.S. Highway 290 East, Suite 
200, Austin, Texas 78723. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 2, 1998.
TRD-9801437
Carl Reynolds
General Counsel
Texas Department of Criminal Justice
Earliest possible date of adoption: March 15, 1998
For further information, please call: (512) 463-9693

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 19. Nursing Facility Requirements for Licensure and
Medicaid Certification
SUBCHAPTER J. Quality of Care
40 TAC sec.19.901
The Texas Department of Human Services (DHS) proposes an amendment to 
sec.19.901, concerning quality of care, in its Nursing Facility Requirements for 
Licensure and Medicaid Certification chapter. The purpose of the amendment is to 
ensure that nursing facilities that admit children with special needs provide 
adequate staffing for their care. The amendment targets children with 
respiratory care needs and those with daily tracheostomy care. 
Eric M. Bost, commissioner, has determined that for the first five-year period 
the section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section. Mr. Bost also 
has determined that for each year of the first five years the section is in 
effect the public benefit anticipated as a result of enforcing the section will 
be that medically fragile children in nursing facilities will receive closer 
supervision and care. There will be no effect on small businesses, since the 
only two nursing facilities that would be affected by the rules are not small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the proposed section. 
Questions about the content of this proposal may be directed to Sharon Balcezak 
at (512) 438-3529 in DHS's Long Term Care Policy Section. Written comments on 
the proposal may be submitted to Supervisor, Rules and Handbooks Unit-149, Texas 
Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, 
within 30 days of publication in the Texas Register.
The amendment is proposed under the Health and Safety Code, Chapter 242, and 
under the Human Resources Code, Title 2, Chapter 22, which authorizes the 
department to administer public assistance programs. 
The amendment implements the Health and Safety Code, sec.242.037, and the Human 
Resources Code, sec.sec.22.001-22.030. 

sec.19.901. Quality of Care. 
Each resident must receive and the facility must provide the necessary care and 
services to attain or maintain the highest practicable physical, mental, and 
psychosocial well-being, as defined by and in accordance with the comprehensive 
assessment and plan of care. If children are admitted to the facility, care and 
services must be provided to meet their unique medical and developmental needs. 
(1)-(13) (No change.) 
<nl>(14)<ol> Pediatric care. 
<nl>(A)<ol> Licensed nursing care of children. A facility caring for children 
must have twenty-four hour a day on-site licensed nursing staff in numbers 
sufficient to provide safe care. For any facility with five or more children 
under 26 pounds, at least one nurse must be assigned solely to the care of those 
children. 
<nl>(B)<ol> Fewer than five pediatric residents. Facilities with fewer than five 
pediatric residents must assure that the children's rooms are in close proximity 
to the nurses' station. 
<nl>(C)<ol> Respiratory care of children. 
<nl>(i)<ol> To facilitate the care of ventilator-dependent children or children 
with tracheostomies, a facility must group those children in rooms contiguous or 
in close proximity to each other. An exception to this rule is children who are 
able to be schooled off-site. 
<nl>(ii)<ol> Facilities must assure that alarms on ventilators, apnea monitors, 
and any other such equipment uniquely identify the child or the child's room. 
<nl>(iii)<ol> A facility caring for children with tracheostomies requiring daily 
care (including ventilator-dependent children with tracheostomies) must have 
twenty-four hour a day on- site respiratory therapy staff in numbers sufficient 
to provide a safe ratio of respiratory therapist per these residents. For the 
purposes of this rule, respiratory therapy staff is defined as a registered 
respiratory therapist (RRT), a certified respiratory therapy technician (CRT), 
or a licensed nurse whose primary function is respiratory care. 
<nl>(I)<ol> If the facility cares for nine or more children with tracheostomies 
requiring