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. Health and Human Services
CHAPTER 355.Medicaid Reimbursement Rates
SUBCHAPTER E.Community Care for Aged and Disabled
1 TAC sec.355.502-sec.355.505
The Health and Human Services Commission proposes amendments to sec.355.502, 
concerning reimbursement methodology for the Community-based Alternatives (CBA) 
Program, sec.355.503, concerning reimbursement methodology for the CBA Program 
for 1997 and subsequent cost reports, sec.355.504, concerning reimbursement 
methodology for the Community Living Assistance and Support Services (CLASS) 
Waiver Program, and sec.355.505, concerning reimbursement methodology for the 
CLASS Program for 1997 and subsequent cost reports. 
The purpose of the amendments to the CBA rules is to eliminate the monthly fee 
paid to providers to obtain medical supplies and prescriptions for the 
recipient. Costs for medical supplies will be included as adaptive aids in the 
current CBA requisition fee schedule. Prescriptions currently are covered 
through the Medicaid Vendor Drug Program. The proposed amendments also establish 
a methodology for determination of a payment rate for reassessment of the 
recipient after Medicaid eligibility is established. Such reassessments are 
required by federal regulations. 
The amendments to the CLASS rules are intended to establish a methodology for 
determination of a fee schedule to reimburse CLASS providers for staff costs in 
acquisition of adaptive aids and minor home modifications for the recipient. 
These costs currently are reimbursed as habilitation units of service. If 
approved, the amendments will establish a methodology similar to the CBA program 
for these costs. In addition, the amendment would establish a methodology to 
determine the payment rate for reassessment of a recipient after Medicaid 
eligibility is established. Such reassessments are required by federal 
regulations.
Gary Bego, Associate Commissioner for Fiscal Affairs, has determined that for 
the first five years the rule is in effect no fiscal implications for state or 
local government are anticipated from the enforcement or administration of the 
rule. 
Mr. Bego has also determined that for each year of the first five years this 
rule is in effect the public benefit anticipated from the enforcement of this 
rule is (1) clarification of the handling of revenue from acquisition fees by 
providers for medical supplies, prescriptions, adaptive aids, and minor home 
modifications, (2) the determination of an appropriate reimbursement of 
reassessment of a CBA or CLASS program participant. There is no anticipated 
economic cost to persons required to comply with the proposed rule. This rule 
will have no local employment impact. There will be no effect on small 
businesses.
Questions or comments by members of the public on the proposed rule are 
solicited. Information about the proposal may be obtained by contacting Carolyn 
Pratt, Texas Department of Human Services, P. O. Box 149030, Austin, Texas 
78714-9030, or by phone 512-438-4057. Written comments on the proposal should be 
mailed or delivered to Steve Svadlenak, Texas Health and Human Services 
Commission, P.O. Box 13247, Austin, Texas 78711, or by facsimile (FAX) to (512) 
424-6641. 
The amendments are proposed under Texas Government Code, sec.531.033, which 
authorizes the commissioner of health and human services to adopt rules 
necessary to carry out the commission's duties under chapter 531, and under 
sec.531.021, which authorizes the commission to adopt reasonable rules and 
standards to govern the establishment of rates fees, and charges for medical 
assistance payments under Human Resources Code, Chapter 32. 
This amendments implement Texas Government Code, Chapter 531, sec.531.021 and 
Human Resources Code, Chapter 32, sec.32.028. 

sec.355.502.Reimbursement Methodology for the Community-based Alternatives 
Program - a 1915(c) Medicaid Home and Community-based Waiver for Aged and 
Disabled Adults Who Meet Criteria for Alternatives to Nursing Facility Care.
(a) General requirements. Cost reports pertaining to providers' fiscal years 
ending in calendar year 1996, or modeled costs used for reimbursement 
determination, will be governed by the information in this section, and the 
information in sec.355.201(b) of this title (relating to General Specifications 
and Methodology). In addition, the Texas Department of Human Services (DHS) 
applies the general principles of cost determination as specified in sec.355.101 
of this title (relating to Introduction). Cost reports pertaining to providers' 
fiscal years ending in calendar year 1997 and subsequent years will be governed 
by the information in sec.355.503 of this title (relating to Reimbursement 
Methodology for Community-based Alternatives Waiver Program, a 1915(c) Medicaid 
Home and Community-based Waiver for Aged and Disabled Adults Who Meet Criteria 
for Alternatives to Nursing Facility Care: 1997 and Subsequent Cost Reports). 
(b) - (h) (No change.) 
(i) Waiver reimbursement determination methodology. Recommended reimbursements 
are determined in the following manner. 
(1) Unit of service reimbursement. Reimbursement for personal assistance 
services, nursing, physical therapy, occupational therapy, speech pathology, and 
in-home respite care services will be determined on a fee-for-service basis in 
the following manner. 
(A) Total allowable costs for each provider will be determined by analyzing the 
allowable historical costs reported on the cost report.
(B) Total allowable costs are reduced by the amount of <nl> the<ol> pre-
enrollment expense fee, [and] requisition fee, <nl> and reassessment fee<ol> 
revenues <nl>accrued for the reporting period. <ol>[received through a voucher 
payment system] 
(C) - (F) (No change.) 
(2) - (3) (No change.) 
(4) Requisition fees. Requisition fees are reimbursements paid to the CBA 
<nl>home and community support services<ol> contracted providers for their 
efforts in acquiring adaptive aids and minor home modifications for CBA 
participants. [Reimbursement for medical supplies and prescriptions covered 
under adaptive aids will be determined on a per month per client served basis.] 
Reimbursement for adaptive aids and minor home modifications will vary based on 
the actual cost of the adaptive aid and minor home modification. Reimbursements 
are determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from [other] similar 
programs; consultation with other service providers and/or professionals 
experienced in delivering contracted services; and<nl>/or<ol> other sources. 
<nl>(5)<ol> <nl>Reassessment fees. Reassessment fees are reimbursements paid to 
CBA home and community support services contracted providers for performing 
annual reassessments. Reimbursements are determined using a method based on 
modeled projected expenses which are developed by using data from surveys; cost 
report data from similar programs; consultation with other service providers 
and/or professionals experienced in delivering contracted services; and/or other 
sources. <ol>
[(5) Pre-enrollment expense fee. Reimbursement for pre-enrollment assessment is 
determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from other similar 
programs, consultation with other service providers and/or professionals 
experienced in delivering contracted services; and other sources.] 
<nl>(6)<ol> <nl>Pre-enrollment expense fee. Reimbursement for pre-enrollment 
assessment is determined using a method based on modeled projected expenses 
which are developed by using data from surveys; cost report data from other 
similar programs, consultation with other service providers and/or professionals 
experienced in delivering contracted services; and other sources. <ol>
[(6) Exceptions to the reimbursement determination methodology. DHS may adjust 
reimbursement to compensate foranticipated future changes in the program 
requirements in accordance with sec.355.109 of this title (relating to Adjusting 
Reimbursement When New Legislation, Regulations, or Economic Factors Affect 
Costs).] 
<nl>(7)<ol> <nl>Exceptions to the reimbursement determination methodology. DHS 
may adjust reimbursement to compensate for anticipated future changes in the 
program requirements in accordance with sec.355.109 of this title (relating to 
Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors 
Affect Costs). <ol>
[(7) Authority to determine reimbursement. The authority to determine 
reimbursement is specified in sec.355.101 of this title (relating to 
Introduction).] 
<nl>(8)<ol> <nl>Authority to determine reimbursement. The authority to determine 
reimbursement is specified in sec.355.101 of this title (relating to 
Introduction). <ol>

sec.355.503. Reimbursement Methodology for the Community-based Alternatives 
Waiver Program - a 1915(c) Medicaid Home and Community-based Waiver for Aged and 
Disabled Adults Who Meet Criteria for Alternatives to Nursing Facility Care: 
1997 and Subsequent Cost Reports. 
(a) - (c) (No change.) 
(d) Waiver reimbursement determination methodology. Recommended reimbursements 
are determined in the following manner. 
(1) Unit of service reimbursement. Reimbursement for personal assistance 
services, nursing, physical therapy, occupational therapy, speech pathology, and 
in-home respite care services will be determined on a fee-for-service basis in 
the following manner. 
(A) (No change.) 
(B) Total allowable costs are reduced by the amount of <nl> the<ol> pre-
enrollment expense fee, [and] requisition fee, <nl> and reassessment fee<ol> 
revenues <nl>accrued for the reporting period. <ol> [received through a voucher 
payment system.] 
(C)- (F) (No change.) 
(2) - (3) (No change.) 
(4) Requisition fees. Requisition fees are reimbursements paid to the CBA 
<nl>home and community support services<ol> contracted providers for their 
efforts in acquiring adaptive aids and minor home modifications for CBA 
participants. [Reimbursement for medical supplies and prescriptions covered 
under adaptive aids will be determined on a per month per client served basis.] 
Reimbursement for adaptive aids and minor home modifications will vary based on 
the actual cost of the adaptive aid and minor home modification. Reimbursements 
are determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from [other] similar 
programs; consultation with other service providers and/or professionals 
experienced in delivering contracted services; and<nl>/or<ol> other sources. 
<nl>(5)<ol> <nl> Reassessment fees. Reassessment fees are reimbursements paid to 
CBA home and community support services contracted providers for performing 
annual reassessments. Reimbursements are determined using a method based on 
modeled projected expenses which are developed by using data from surveys; cost 
report data from similar programs; consultation with other service providers 
and/or professionals experienced in delivering contracted services; and/or other 
sources. <ol>
[(5) Pre-enrollment expense fee. Reimbursement for pre-enrollment assessment is 
determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from other similar 
programs, consultation with other service providers and/or professionals 
experienced in delivering contracted services; and other sources.] 
<nl>(6)<ol> <nl>Pre-enrollment expense fee. Reimbursement for pre-enrollment 
assessment is determined using a method based on modeled projected expenses 
which are developed by using data from surveys; cost report data from other 
similar programs, consultation with other service providers and/or professionals 
experienced in delivering contracted services; and other sources. <ol>
[(6) Exceptions to the reimbursement determination methodology. DHS may adjust 
reimbursement if new legislation, regulations, or economic factors affect costs, 
according to sec.355.109 of this title (relating to Adjusting Reimbursement When 
New Legislation, Regulations, or Economic Factors Affect Costs).] 
<nl>(7) <ol> <nl>Exceptions to the reimbursement determination methodology. DHS 
may adjust reimbursement if new legislation, regulations, or economic factors 
affect costs, according to sec.355.109 of this title (relating to Adjusting 
Reimbursement When New Legislation, Regulations, or Economic Factors Affect 
Costs). <ol>
(e) - (h) (No change.)

sec.355.504. Reimbursement Methodology for the Community Living Assistance and 
Support Services Waiver Program - a 1915(c) Medicaid Home and Community-based 
Waiver for Persons With Related Conditions.
(a) General requirements. Cost reports pertaining to providers' fiscal years 
ending in calendar year 1994, 1995, or 1996 will be governed by the information 
in this section, and the information in sec.355.201(b) of this title (relating 
to General Specifications and Methodology). In addition, the Texas Department of 
Human Services (DHS) applies the general principles of cost determination as 
specified in sec. 355.101 of this title (relating to Introduction). Cost reports 
pertaining to providers' fiscal years ending in calendar year 1997 and 
subsequent years will be governed by the information in sec.355.505 of this 
title (relating to Reimbursement Methodology for 1915(c) of the Social Security 
Act Medicaid Home and Community Based Waiver Services for Persons With Related 
Conditions: 1997 and Subsequent Cost Reports).
(b)-(c) (No change.)
(d) Waiver reimbursement determination methodology. 
(1) - (3) (No change.)
(4) Reimbursement determination process. Recommended unit of service 
reimbursements are determined in the following manner. 
(A) Unit or service reimbursement for habilitation, nursing, physical therapy, 
occupational therapy, speech pathology, and psychological services are 
determined in the following manner: 
(i) (No change.)
(ii) Total allowable costs are reduced by the amount of <nl> the<ol> 
administrative expense fee, <nl>requisition fee, and reassessment fee<ol> 
revenues <nl>accrued for the reporting period.<ol> [received through a voucher 
payment system.] 
(iii) - (vii) (No change.)
(B)-(D) (No change.)
(5) (No change.)
(e) (No change.)
<nl>(f)<ol> <nl> Requisition fees. Requisition fees are reimbursements paid to 
the CLASS direct service agency contract-ed providers for their efforts in 
acquiring adaptive aids and minor home modifications for CLASS participants. 
Reimbursement for adaptive aids and minor home modifications will vary based on 
the actual cost of the adaptive aid and minor home modification. Reimbursements 
are determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from similar programs; 
consultation with other service providers and/or professionals experienced in 
delivering contracted services; and/or other sources. <ol>
[(f) Reporting requirements. The program director's full salary is to be 
reported on the line item of the cost report designated for the director.] 
<nl>(g)<ol> <nl> Reassessment fees. Reassessment fees are reimbursements paid to 
CLASS direct service agency contracted providers for performing annual 
reassessments. Reimbursements are determined using a method based on modeled 
projected expenses which are developed by using data from surveys; cost report 
data from similar programs; consultation with other service providers and/or 
professionals experienced in delivering contracted services; and/or other 
sources. <ol>
[(g) Allowable and unallowable costs.]
<nl>(h)<ol> <nl> Reporting requirements. The program director's full salary is 
to be reported on the line item of the cost report designated for the director. 
<ol>
<nl>(i)<ol> <nl> Allowable and unallowable costs. <ol>
(1) General. Allowable and unallowable costs are defined to identify expenses 
which are and are not reasonable and necessary to provide waiver services to 
clients by a prudent and cost-effective operation. Only allowable cost 
information is used to compile the reimbursement determination data base. Cost 
reporting by providers should be consistent with generally accepted accounting 
principles (GAAP). In cases where DHS cost reporting rules conflict with GAAP, 
IRS, or other authorities, DHS rules take precedence for cost reporting 
purposes. 
(2) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(A) Allowable costs. Those expenses that are reasonable and necessary in the 
normal conduct of operations relating to the provision of waiver services. 
(i) "Reasonable" refers to the amount expended. The test of reasonableness is 
that the amount expended does not exceed the cost whichwould be incurred by a 
prudent business operator seeking to contain costs.
(ii) "Necessary" refers to the relationship of the cost to provision of waiver 
services. To qualify as a necessary expense, a cost must be one that is usual 
and customary in the operation of waiver services and must meet the following 
requirements. 
(I) The expenditure was not for personal or other activity not specifically 
related to the provision of waiver services.
(II) The cost does not appear on the list of specific unallowable costs and is 
not unallowable under other federal, state, or local laws or regulations.
(III) The cost bears a significant relationship to the provision of waiver 
services. The test of significance is whether elimination of the expenditure 
would adversely affect the delivery of waiver services. 
(IV) The expense was incurred in the purchase of materials, supplies, or 
services provided directly to the clients or staff of the program in the conduct 
of normal business operations. 
(iii) Normal conduct of operations relating to waiver services and the pre-
enrollment assessment process includes, but is not limited to, the following: 
(I) The administrative expense fee covers reimbursement for the pre-enrollment 
assessment and care planning services. 
(II) Only direct contact with the client is considered allowable when recording 
pre-enrollment assessment and care planning time for each type of professional 
service. 
(III) Only costs associated with the pre-enrollment assessment and care planning 
of those clients seeking enrollment into the waiver program will be allowed. 
(IV) Expenses not used solely for the provision of waiver services and the pre-
enrollment assessment. Whenever allowable costs are attributable partially to 
personal or other business interests not related to the provision of waiver 
services/pre-enrollment assessment and partially to waiver services/pre-
enrollment assessment, the latter portion may be allowed on a pro rata basis if 
the proportion of use by the waiver services/pre-enrollment assessment is well-
documented.
(V) Allowable costs for cost reporting purposes should result from arms-length 
transactions involving unrelated parties. However, in related-party transactions 
the allowable cost to the waiver services program is limited to the lesser of 
the actual cost to the related party (excluding markups and profit margins) or 
the cost to the contracted waiver service provider. Such allowable cost must not 
exceed the usual and customary charges for comparable goods or services in an 
arms-length transaction. A related party is a natural person or organization 
related to the provider entity by blood/marriage, or common ownership, or any 
association which permits either entity to exert power or influence, either 
directly or indirectly, over the other. 
(B) Unallowable costs. Those expenses that are not reasonable or necessary for 
the provision of waiver services and the pre-enrollment assessment. Unallowable 
costs are not included in the data base used to determine recommended 
reimbursements and fees. 
(3) List of Allowable Costs. The following list of allowable costs is not 
comprehensive, but rather serves as a general guide and identifies certain key 
expense areas. The absence of a particular cost does not necessarily mean that 
it is not an allowable cost. 
(A) Compensation of waiver services staff. Compensation will be given only to 
those staff who provide waiver services directly to the clients or in support of 
staff of the waiver services program in the normal conduct of operations 
relating to the provision of waiver services. This includes:
(i) Wages and salaries. 
(ii) Payroll taxes and insurance. Federal Insurance Contributions Act (FICA or 
social security), unemployment compensation insurance, workman's compensation 
insurance. 
(iii) Employee benefits. Employer-paid health, life, accident, liability, and 
disability insurance for employees; contributions to employee retirement fund; 
and deferred compensation limited to the dollar amount the employer contributes. 
The expense: 
(I) must represent a clearly enumerated liability of the employer to individual 
employees; 
(II) must not be incurred as a benefit to employees who do not provide services 
directly to the clients or staff of the waiver services program; and
(III) must not represent any form of profit sharing. 
(B) Compensation of staff outside of the waiver program who provide services 
directly to the clients or in support of staff of the program. Allowable 
compensation is limited to the pro rata portion of the actual working time spent 
on behalf of the program.
(C) Compensation of outside consultants providing services directly to the 
clients or in support of staff of the program. 
(D) Materials and supplies. Includes office supplies, housekeeping supplies, 
medical, and other supplies. 
(E) Utilities. Includes electricity, natural gas, fuel oil, water, waste water, 
garbage collection, telephone, and telegraph. 
(F) Buildings, equipment, and capital expenses. Buildings, equipment, and 
capital used by the waiver provider or in support of the waiver services staff, 
and not for personal business. If these costs are shared with other program 
operations, the portion of the costs relating directly to waiver services may be 
allowed on a pro rata basis if the proportion of use for waiver services is 
documented. 
(G) Depreciation and amortization expense. Property owned by the provider entity 
and improvements to owned, leased, or rented property used by the waiver 
provider that are valued at more than $500 at the time of purchase must be 
depreciated or amortized using the straight line method. The minimum usable 
lives to be assigned to common classes of depreciable property are as follows: 
(i) buildings: 30 years, with a minimum salvage value of 10%; and 
(ii) transportation equipment used for the transport of clients, materials and 
supplies, or staff providing waiver services: a minimum of three years for 
passenger automobiles and five years for light trucks and vans, all with a 
minimum salvage value of 10%. 
(H) Provider-owned property. Property owned by the provider entity and 
improvements to property owned, leased, or rented by the provider that are 
valued at less than $500 at the time of purchase may be treated as ordinary 
expenses.
(I) Rental and lease expense. This includes rental and lease expenses for 
buildings, building equipment, transportation equipment, other equipment, 
related materials, and supplies used by the waiver provider. Rental or lease 
expense paid to a related party is limited to the actual allowable cost incurred 
by the related party.
(J) Transportation expense. This includes the cost of public transportation or 
mileage claimed at the allowable reimbursement per mile set by the state 
legislature for state employees. 
(K) Interest expense. Interest expense is allowable on loans for the acquisition 
of allowable items, subject to:
(i) all of the requirements for allowable costs, 
(ii) written evidence of the loan, and 
(iii) the provider entity being named as maker or comaker of the note. Allowable 
interest is limited to the lesser of the cost to the related party or the 
prevailing national average prime interest rate for the year in which the loan 
contract was executed. 
(L) Tax expense. This includes real and personal property taxes, motor vehicle 
registration fees, sales taxes, Texas corporate franchise taxes, and 
organization filing fees.
(M) Insurance expense. This includes facility fire and casualty, professional 
liability and malpractice, and transportation insurance.
(N) Contract waiver services provided by outside vendors to persons with related 
conditions. 
(O) Business and professional association dues limited to associations devoted 
primarily to the issues of related conditions.
(P) Outside training costs. Limited to direct costs (transportation, meals, 
lodging, and registration fees) for training provided to personnel rendering 
services directly to the clients or staff of the waiver provider. The training 
must be directly related to issues concerning related conditions and located 
within the continental United States.
(4) List of unallowable costs. Unallowable costs are those expenses that are not 
reasonable or necessary for the provision of waiver services. Unallowable costs 
are not included in the reimbursement determination data base used to determine 
recommended reimbursements. The following list is not intended to be 
comprehensive, but rather to serve as a general guide and identify certain key 
expense areas that are not allowable. The absence of a particular cost does not 
necessarily mean that it is an allowable cost. 
(A) Compensation in the form of salaries, benefits, or any form of compensation 
given to individuals who do not provide waiver services either directly to 
clients or in support of staff;
(B) Personal expenses not directly related to the provision of waiver services;
(C) Client room and board expenses, except for those related to respite care; 
(D) management fees paid to a related party that are not derived from the actual 
cost of materials, supplies, or services provided directly to the program; 
(E) Advertising expenses other than those for yellow pages advertising, 
advertising for employee recruitment, and advertising to meet any statutory or 
regulatory requirement;
(F) Business expenses not directly related to the provision of waiver services; 
(G) Political contributions; 
(H) Depreciation and amortization of unallowable costs. This includes amounts in 
excess of those resulting from the straight line depreciation method, 
capitalized lease expenses in excess of the actual lease payment, and goodwill 
or any excess above the actual value of the physical assets at the time of 
purchase; 
(I) Trade discounts of all types. This includes returns, allowances, and 
refunds; 
(J) Donated facilities, materials, supplies, and services, including the values 
assigned to the services of unpaid workers and volunteers;
(K) Dues to all types of political and social organizations, and to professional 
associations not directly and primarily concerned with the provision of waiver 
services; 
(L) Entertainment expenses except those incurred for entertainment provided to 
the staff of the waiver provider as an employee benefit; 
(M) Boards of directors' fees; 
(N) Fines and penalties for violations of regulations, statutes, and ordinances 
of all types; 
(O) Fund raising and promotional expenses; 
(P) Expenses incurred in the purchase of goods and services with revenues from 
gifts, donations, endowments, and trusts; 
(Q) Interest expenses on loans pertaining to unallowable items and on that 
portion of interest paid which is reduced or offset by interest income; 
(R) Insurance premiums pertaining to items of unallowable cost; 
(S) Accrued expenses that are not a legal obligation of the provider or are not 
clearly enumerated as to dollar amount. This includes any form of profit sharing 
and the accrued liabilities of deferred compensation plans; 
(T) Planning and evaluation expenses for the purchase of depreciable assets, 
except where purchases are actually made and the assets are put into service in 
providing waiver services; 
(U) Mileage expense which exceeds the current reimbursement rate set by the 
Texas Legislature for state employee travel or expenses exceeding actual cost of 
public transportation;
(V) Costs of purchases from a related party which exceed the original cost to 
the related party; 
(W) Out-of-state travel expenses, except for provision of waiver services that 
may include training and quality assurance functions;
(X) Legal and other costs associated with litigation between a provider and 
state or federal agencies, unless the litigation is decided in the provider's 
favor,
(Y) Contributions to self-insurance funds which do not represent payments based 
on current liabilities; 
(Z) Any expense incurred because of imprudent business practices;
(AA) Expenses which cannot be adequately documented;
(BB) Expenses not reported according to the instructions on the cost report; 
(CC) Expenses not allowable under other pertinent federal, state, or local laws 
and regulations; and 
(DD) Federal, state, and local income taxes and any expenses related to 
preparing and filing income tax forms.

sec.355.505. Reimbursement Methodology for the Community Living Assistance and 
Support Services Waiver Program - a 1915(c) Medicaid Home and Community-based 
Waiver for Persons With Related Conditions: 1997 and Subsequent Cost Reports.
(a)-(c) (No change.)
(d) Waiver reimbursement determination methodology. 
(1)-(3) (No change.)
(4) Reimbursement determination process. Recommended unit of service 
reimbursements are determined in the following manner. 
(A) Unit or service reimbursement for habilitation, nursing, physical therapy, 
occupational therapy, speech pathology, and psychological services are 
determined in the following manner: 
(i) Total allowable costs for each provider will be determined by analyzing the 
allowable historical costs reported on the cost report and other pertinent cost 
survey information. 
(ii) Total allowable costs are reduced by the amount of <nl> the<ol> 
administrative expense fee, <nl>requisition fee, and reassessment fee<ol> 
revenues <nl>accrued for the reporting period.<ol>[ received through a voucher 
payment system.] 
(iii)-(vii) (No change.)
(B)-(D) (No change.)
(e) (No change.)
<nl>(f)<ol> <nl> Requisition fees. Requisition fees are reimbursements paid to 
the CLASS direct service agency contract-ed providers for their efforts in 
acquiring adaptive aids and minor home modifications for CLASS participants. 
Reimbursement for adaptive aids and minor home modifications will vary based on 
the actual cost of the adaptive aid and minor home modification. Reimbursements 
are determined using a method based on modeled projected expenses which are 
developed by using data from surveys; cost report data from similar programs; 
consultation with other service providers and/or professionals experienced in 
delivering contracted services; and/or other sources. <ol>
[(f) Allowable and unallowable costs. 
[(1) Providers must follow the guidelines in determining whether a cost is 
allowable or unallowable as specified in sec.335.102 and sec.355.103 of this 
title (relating to General Principles of Allowable and Unallowable Costs, and 
Specifications for Allowable and Unallowable Costs) as well as the following 
provisions.
[(2) Participant room and board expenses are not allowable, except for those 
related to respite care. 
[(3) The cost of adaptive aids and home modifications are not allowable. 
Allowable labor costs associated with acquiring adaptive aids and home 
modifications should be reported in the cost report. Any item purchased for 
participants in this program and reimbursed through a voucher payment system is 
unallowable. Refer to sec.355.103(17)(K) of this title (relating to 
Specifications for Allowable and Unallowable Costs).
<nl>(g)<ol> <nl> Reassessment fees. Reassessment fees are reimbursements paid to 
CLASS direct service agency contracted providers for performing annual 
reassessments. Reimbursements are determined using a method based on modeled 
projected expenses which are developed by using data from surveys; cost report 
data from similar programs, consultation with other service providers and/or 
professionals experienced in delivering contracted services; and/or other 
sources. <ol>
[(g) Authority to determine reimbursement. The authority to determine 
reimbursement is specified in sec.355.101 of this title (relating to 
Introduction).] 
<nl>(h)<ol> <nl> Allowable and unallowable costs. <ol>
<nl>(1)<ol> <nl>Providers must follow the guidelines in determining whether a 
cost is allowable or unallowable as specified in 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) as well as the following 
provisions. <ol>
<nl>(2) <ol> <nl>Participant room and board expenses are not allowable, except 
for those related to respite care. <ol>
<nl>(3)<ol> <nl> The cost of adaptive aids and home modifications is not 
allowable. Allowable labor costs associated with acquiring adaptive aids and 
home modifications should be reported in the cost report. Any item purchased for 
participants in this program and reimbursed through a voucher payment system is 
unallowable. Refer to sec.355.103(b)(17)(K) of this title (relating to 
Specifications for Allowable and Unallowable Costs). <ol>
[(h) Reporting revenue. Revenues must be reported on the cost report in 
accordance with sec.355.104 of this title (relating to Revenues).] 
<nl>(i)<ol> <nl> Authority to determine reimbursement. The authority to 
determine reimbursement is specified in sec.355.101 of this title (relating to 
Introduction). <ol>
[(i) Reviews and field audits of cost reports. DHS staff perform desk reviews or 
field audits on all contracted providers. The frequency and nature of the field 
audit are determined by DHS to ensure the fiscal integrity of the program. Desk 
reviews and field audits will be conducted in accordance with 355.106 of this 
title (relating to Basic Objectives and Criteria for Audit and Desk Review of 
Cost Reports), and providers will be notified of the results of a desk review or 
a field audit in accordance with sec.355.107 of this title (relating to 
Notification of Exclusions and Adjustments). Providers may request an informal 
review and, if necessary, an administrative hearing to dispute an action taken 
by DHS under sec.355.110 of this title (relating to Informal Reviews and Formal 
Appeals).] 
<nl>(j)<ol> <nl> Reporting revenue. Revenues must be reported on the cost report 
in accordance with sec.355.104 of this title (relating to Revenues). <ol>
[(j) Reporting requirements. The program director's full salary is to be 
reported on the line item of the cost report designated for the director.] 
<nl>(k)<ol> <nl> Reviews and field audits of cost reports. DHS staff perform 
desk reviews or field audits on all contracted providers. The frequency and 
nature of the field audit are determined by DHS to ensure the fiscal integrity 
of the program. Desk reviews and field audits will be conducted in accordance 
with sec.355.106 of this title (relating to Basic Objectives and Criteria for 
Audit and Desk Review of Cost Reports), and providers will be notified of the 
results of a desk review or a field audit in accordance with sec.355.107 of this 
title (relating to Notification of Exclusions and Adjustments). Providers may 
request an informal review and, if necessary, an administrative hearing to 
dispute an action taken by DHS under sec.355.110 of this title (relating to 
Informal Reviews and Formal Appeals). <ol>
<nl>(l)<ol> <nl> Reporting requirements. The program director's full salary is 
to be reported on the line item of the cost report designated for the director. 
<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 February 9, 1998.
TRD-9801839
Marina Henderson
Executive Deputy Commissioner
Health and Human Services Commission
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 424-6576

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 3. Boll Weevil Eradication Program
SUBCHAPTER E. Creation of Eradication Zones
4 TAC sec.3.110
The Texas Department of Agriculture (the department) proposes an amendment to 
sec.3.110, concerning the Southern High Plains Boll Weevil Eradication Zone The 
amendment is proposed to change the name of the area designated as the Southern 
High Plains Boll Weevil Eradication Zone to the Western High Plains Boll Weevil 
Eradication Zone. The name change is proposed, upon the request of the Southern 
High Plains Boll Weevil Eradication Zone Interim Advisory Committee, to avoid 
confusion due to the current name of the zone being similar to the existing 
Southern High Plains/Caprock zone, and to more accurately describe the 
geographical area included in the designated zone. All of the area currently 
included in the Southern High Plains Zone will be designated as the Western High 
Plains Boll Weevil Eradication Zone. Katie Dickie Stavinoha, special assistant 
for producer relations, has determined that for the first five-year period the 
section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section. 
Ms. Stavinoha also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
sections will be less confusion among cotton growers and the public in regards 
to the area covered by the zone. There will be no effect on small businesses. 
There is no anticipated economic cost to persons required to comply with the 
amendment as proposed. 
Comments on the proposal may be submitted to Katie Dickie Stavinoha, Special 
Assistant for Producer Relations, P.O. Box 12847, Austin, Texas 78711, and must 
be received no later than 30 days from the date of the publication of this 
proposal in the Texas Register.
The amendment is proposed under the Texas Agriculture Code, sec.74.1042, which 
provides the commissioner of agriculture with the authority, by rule, to 
designate an area of the state as a proposed boll weevil eradication zone; and 
Senate Bill 1814, 75th Legislature, 1997, sec.1.27(d), which provides the 
commissioner of agriculture with the authority to by rule divide a statutory 
zone and fairly apportion any debt to each portion of the divided zone. 
The codes affected by the proposal are the Texas Agriculture Code, Chapter 74. 

sec.3.110.<nl>Western<ol> [Southern] High Plains Boll Weevil Eradication Zone.
The <nl>Western<ol> [Southern] High Plains Boll Weevil Eradication Zone shall 
consist of the following area originally included as a part of the Southern High 
Plains/Caprock Eradication Zone described at the Texas Agriculture Code, 
sec.74.1021(e): all of Andrews, Gaines and Yoakum counties; all of Terry County 
except for all land north of a line 1.25 miles south of the Hockley County line 
from FM 303 east to Highway 385 and all land north and east of a line with 
boundaries of County Road 230, County Road 525 also known as Cemetery Road, and 
County Road 280 to the Lynn County line; and all of Lynn County except for all 
land north and east of a line 5 miles north of Hwy 380 following County Road 18 
that extends from the Terry County line east for 10 miles, then turns south to 
Hwy 380, and runs east to the intersection of FM 212 before turning south to the 
Borden County line. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on February 9, 1998.
TRD-9801831
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 463-7541

TITLE 10. COMMUNITY DEVELOPMENT
PART V. Texas Department of Economic Development
CHAPTER 176.Enterprise Zone Program
10 TAC sec.sec.176.1-176.4, 176.7, 176.8, 176.10, 176.11
The Texas Department of Economic Development (department) proposes amendments to 
sec.sec.176.1-176.4, 176.7, 176.8, 176.10, and 176.11, relating to the Texas 
Enterprise Zone Program. 
The proposed amendments to sec.176.1 change the name of the department to 
reflect the abolishment of the Texas Department of Commerce by Senate Bill 932 
of the 75th Legislature, the transfer of that agency's functions to the 
department, effective September 1, 1997, and the replacement of the Texas 
Department of Commerce Policy Board with the governing board of the department.
The proposed amendments further change legal citations to reference the correct 
sections of the Government Code and the Texas Administrative Code and change the 
name of the division that administers the program within the department.
The proposed amendments to sec.176.2 change legal citations to correctly 
reference sections of the Texas Administrative Code. Section 176.2(b)(5), 
concerning a qualified hotel project, is being amended to define the application 
requirements for hotel projects and to conform the rule to the Enterprise Zone 
Act, sec.2303.003 and sec.2303.5055. Section 176.2(b)(6)(A)(i), relating to 
enterprise project certifications, is being amended to eliminate contradictory 
language and to add clarification. Section 176.2(d) is being amended to further 
define the fee structure for a name change and assumption of an enterprise 
project. This section is also being amended to include a nonrefundable fee to 
recover the department's cost of providing direct technical assistance to 
enterprise projects relating to the adjustment of the total number of jobs 
allocated in their original project application. 
The proposed amendments to sec.176.3(e) allow the inclusion of an industrial 
park in an enterprise zone without including unemployment and poverty data for 
the block groups included in the park if no other area of the block group 
outside the industrial park is included. This would benefit the communities in 
that the Enterprise Zone program could be used as an incentive to attract 
businesses in the industrial park, and thereby providing employment 
opportunities for enterprise zone residents. The proposed amendments to 
sec.176.3(f)(2), establish guidelines for applicants to submit their application 
after the nominating ordinance or order is passed. This language is being added 
to define the time frame in which nominating ordinances or orders are submitted. 
The proposed amendments to sec.176.4 clarify the information needed in a 
nominating ordinance or order when applying for an enterprise zone designation. 
The proposed amendments to sec.176.4(a)(2)(B), clarify the identification of the 
designated representative and liaison to communicate and negotiate with the 
department. The proposed amendments to sec.176.4(a)(5)(A), add identification of 
industrial parks, when applicable, as a requirement when mapping out the 
proposed area of an enterprise zone. The proposed amendment to 
sec.176.4(a)(6)(B) adds the effective date on which the term of reinvestment 
zones became the same as state enterprise zone designations. 
The proposed amendments to sec.176.7 add language setting forth job creation and 
job retention requirements in order to clarify existing program policies used to 
determine whether or not a project qualifies as a retention project. The 
proposed amendments to sec.176.8(c)(2), correct the legal citation to the Texas 
Enterprise Zone Act. The proposed amendments to sec.176.8(d), add language 
allowing enterprise projects to adjust the total number of jobs allocated as a 
result of their original project application. This process would benefit the 
related community and enterprise project because it may be used as an incentive 
for businesses to continue to create additional jobs and to further expand, it 
would reward successful companies, and it may prevent the community from using 
one of the limited 65 project designations on a project that is already 
approved. 
The proposed amendments to sec.176.10(b)(1) clarify enterprise project 
application deadlines. The proposed amendments to sec.176.10(b)(2)(A) allow 
communities to have no more than three projects designated and the ability to 
gain three bonus projects for a total allocation of six. The proposed change 
will encourage the communities to nominate strong projects in order to score 
well and earn a bonus project. The proposed amendments to sec.176.10(b)(2)(B) 
clarify the circumstances under which a governing body may receive a bonus 
enterprise project and to further clarify where bonus projects can be used. This 
section has also been amended to reflect the availability of regular and bonus 
designations. 
The proposed amendments to sec.176.11 reflect the repeal of the bi-annual cost-
benefit analysis reporting requirement by House Bill 2906 of the 75th 
Legislature. 
James Albright, Director of Finance, has determined that for each year of the 
first five years that the amendments will be in effect there will be no 
additional cost, no reduction in costs, and no loss or increase in revenue to 
the state or to local governments as a result of enforcing or administering the 
amendments. The probable economic cost to persons required to comply with the 
amendments is any cost incurred by businesses in preparing and submitting 
applications. Costs to businesses receiving enterprise project designation will 
be significantly offset by the benefits of the program. 
Mr. Albright also has further determined that the public benefit that can be 
expected for each year of the first five years that the amendments are in effect 
is that local communities participating in the Enterprise Zone Program may 
realize the creation and retention of jobs and capital investment by businesses 
within the community. 
Written comments on the proposed amendments may be mailed to Robin Abbott, 
General Counsel, Texas Department of Economic Development, P.O. Box 12728, 
Austin, Texas 78711-2728; delivered to 1700 Congress Avenue, Suite 136, Austin, 
Texas 78701; or faxed to (512) 936-0415. Comments received more than 30 days 
after publication of the proposed amendments will not be considered by the 
department. 
The amendments are proposed pursuant to Government Code, sec.481.0044(a), 
authorizing the governing board of the department to adopt rules for the 
administration of department programs, Government Code, sec.2303.051(c) 
directing the department to adopt rules to carry out the Enterprise Zone 
Program, and Government Code, Chapter 2001, Subchapter B, setting forth the 
agency rulemaking process.
Government Code, Chapter 2303, is affected by these amendments. 

sec.176.1.General Provisions.
(a) Introduction. Pursuant to the authority granted by the Texas Enterprise Zone 
Act, Texas Government Code, Chapter 2303, as amended, and the Administrative 
Procedure Act, Chapter 2001, Subchapter B, Rulemaking, Texas Government Code, as 
amended, the Texas Department of <nl>Economic Development <ol> [Commerce] 
prescribes the following sections regarding practice and procedure before the 
department in the administration and implementation of the Enterprise Zone 
Program. 
(b) (No change.)
(c) Definition of terms. The following words and terms, when used in this 
chapter, shall have the following meanings, unless the context clearly indicates 
otherwise. 
(1)-(5) (No change.)
(6) Board--The <nl>Governing<ol> [Policy] Board of the Texas Department of 
<nl>Economic Development<ol> [Commerce
(7) (No change.)
(8) Department--The Texas Department of <nl>Economic Development<ol> [Commerce]. 
(9)-(20) (No change.)
(21) Qualified business--A person, including a corporation or other entity that 
the department, for purposes of state benefits under the Act, and a governing 
body, for purposes of local benefits, certifies to have met the following 
criteria: 
(A)-(C) (No change.)
(D) as a builder that has demonstrated proficiency in residential construction, 
financial stability, and participation in a 10-year insured warranty program in 
accordance with the Act and sec.176.10 (f) of this title (relating to 
<nl>Approval Standards for Certification of a Builder as a Qualified 
Business<ol> [Certification of Qualified Business]); or 
(E) (No change.)
(22)-(27) (No change.)
(d)-(e) (No change.)
(f) Examination of records. Any party requesting the examination of records 
pursuant to the Texas <nl>Public Information<ol> [Open Records] Act, Texas 
Government Code, Chapter 552, shall indicate in writing the specific nature of 
the documents to be viewed, and if photocopying is desired, the prevailing 
standard fee of the department will be charged to cover the cost of the request. 
(g) Written communication with the department. Applications and other written 
communications to the department should be addressed to the attention of the 
Texas Enterprise Zone Program, Business <nl>Services Division<ol> [Development 
Division], Texas Department of <nl> Economic Development<ol> [Commerce], P. O. 
Box 12728, Austin, Texas 78711-2728.

sec.176.2.Fling Requirements for Applications and Claims.
(a) (No change.)
(b) Filing.
(1)-(3) (No change.)
(4) Enterprise projects. Applications for enterprise project designation may be 
filed on or before, but no later than, quarterly deadlines published by the 
department in sec.176.10 (b) (1) of this title, (relating to <nl>Approval 
Standards<ol> [Application Contents for an Enterprise Project]) for 
consideration. Applications received after a published deadline will not be 
reviewed and considered for designation until after the next published deadline. 
The applicant shall file with the department an original of an application for 
designation as an enterprise project. 
(5) Qualified hotel project. <nl>Applications for a qualified hotel project 
designation may be filed on any day. The applicant must file with the department 
a certified copy of a resolution nominating the hotel project and a description 
or summary of the project detailing the nature of the business, estimated number 
of new jobs to be created, and the projected capital investment. To permit the 
department to designate the applicant as a qualified hotel project, the project 
shall be deemed to have met all qualifications under the Act, sec.2303.003 and 
sec.2303.5055. Furthermore, the qualified hotel project designation<ol> [A hotel 
must apply to the department in the form provided by the department to be 
designated a qualified hotel project. However, a qualified hotel project that 
meets the conditions under the Act, sec.2303.003 (8), shall be deemed to have 
met the employment, income, and other criteria of a qualified business and an 
enterprise project and the enterprise zone in which the qualified hotel project 
is located shall be deemed to have met all qualifications of the Act to permit 
the department to designate the qualified hotel project as an enterprise 
project. The enterprise project designation or new permanent jobs created by a 
qualified hotel project ] shall not be considered in determining the number of 
enterprise projects that the department may approve pursuant to the other 
provisions of this Act.
(6) Certifications. 
(A) Enterprise projects. 
(i) [Requests for job certifications for designated enterprise projects may be 
filed on any day with the department annually or semiannually at the discretion 
of the entity holding designated project status.] Requests for job 
certifications [for enterprise projects] may be filed with the department on any 
day [after the last day following the state fiscal biennium in which the project 
was designated]. <nl>A job certification request may be made annually or 
semiannually.<ol> 
(ii)-(iii) (No change.)
(B) Qualified business. 
(i)-(ii) (No change.)
(iii) Through the applicable governing body or bodies to the department, a 
residential builder may request certification as a qualified business to 
construct single or multifamily housing in the governing body's or bodies' 
enterprise zone even though the builder's principle office or headquarters is 
located in the state of Texas outside the zone. The governing body or bodies 
shall adopt criteria and guidelines to advance the Act and zone objectives 
including establishing a minimum commitment of the number of housing units that 
are to be constructed in an enterprise zone within its jurisdiction(s) within a 
specific period of time by a builder or group of builders before requesting 
state qualified business status. A builder or group of builders that form a 
consortium for the purpose of constructing housing in an enterprise zone that 
has met requirements established by the local governing body or bodies may be 
nominated for enterprise project designation by the local governing body or 
bodies. In considering such nominations the governing body or bodies shall give 
preference to projects that address affordable housing as set forth in the 
criteria established by the governing body or bodies. The application for 
certification as a qualified business for state benefits may be submitted to the 
department on any day in a form prescribed by the department. The applicable 
governing body or bodies may certify a residential builder as a qualified 
business to receive local benefits in connection with housing construction 
activity in an enterprise zone within its or their jurisdiction without making 
an application to the department to assure compliance with the Act, 
<nl>sec.2303.402<ol> [sec.2303.401]. 
(C)-(D) (No change.)
(c) (No change.)
(d) Fees. A nonrefundable fee to recover the department's cost of providing 
direct technical assistance relating to the enterprise zone program must 
accompany an application to the department in the amount of:
(1)-(3) (No change.)
(4) $300 for application to change <nl>name or<ol> [/] assume enterprise project 
designation as defined in sec.176.8(b) and sec.176.8 (c) of this title (relating 
to <nl>Application Contents for an Enterprise Project<ol> [Approval Standards]); 
<nl>(5)<ol> <nl> $300 to adjust the total number of new jobs as specified in the 
original application as defined in Texas Government Code, sec.2303.405 (relating 
to Application Contents for an Enterprise Project); <ol> 
<nl>(6)<ol> [(5)] $300 for designation as a recycling market development zone; 
<nl>(7)<ol> [(6)] $500 for residential builder certification as a qualified 
business for a three-year period; 
<nl>(8)<ol> [(7)] $300 for certification as a neighborhood enterprise 
association. The fee must be submitted in the form of a cashiers check made 
payable to the Texas Department of <nl>Economic Development<ol>[Commerce]/Texas 
Enterprise Zone Program.
(e)-(g) (No change.)

sec.176.3. Eligibility Requirements for Designation of an Enterprise Zone. 
(a)-(d) (No change.)
(e) Documentation. For the purpose of showing that an area is qualified to be 
designated as an enterprise zone, the applicant must submit documentation, 
including the source, methodology and certification of the data. The authorized 
data source for population estimates is the State Data Center. The authorized 
data source for labor force data is the Texas Workforce Commission. Data will be 
considered current from the State Data Center and the Texas Workforce Commission 
if they are the most recently published estimates or if the enterprise zone 
application containing the data is received by the department before the 61st 
day after the date revised estimates of that data are published. <nl>An 
industrial park may be included as part of the enterprise zone without averaging 
in the unemployment and poverty data. However, data will be required if part of 
the zone includes an area which is outside the industrial park but within the 
same census area. The industrial park may not exceed 25.0% of the proposed zone 
area. To show an area has been designated as an industrial park the applicant 
must include documentation of official action taken by the governing body.<ol> 
(1)-(9) (No change.)
(f) Citizen participation. The department will not approve the designation of an 
area as an enterprise zone unless: 
(1) (No change.)
(2) notice of such hearing is given to the public by publishing once in a 
newspaper of general circulation in the municipality or county or combination of 
municipalities or counties and posting a copy of the same at the city hall or 
county courthouse not later than seven days prior to the date of the hearing. 
Such notice shall contain a description of the area proposed by the municipality 
or county or combination of municipalities or counties to be designated as an 
enterprise zone, and the date, time, and location of such hearing. The 
description of the area should be worded so that residents of the area and other 
interested parties may reasonably identify the area to be discussed at the 
public hearing. The notice shall also encourage all interested parties, 
including residents of the proposed zone to present their views at the hearing. 
The hearing must include a presentation on the proposed location of the zone and 
the provisions for any tax or other incentives applicable to business 
enterprises in the zone. A municipality or county or combination of 
municipalities or counties must adopt the enterprise zone nominating ordinance 
or order within 180 calendar days of the date the last public hearing was held. 
<nl>Further, the application for zone designation must be received by the 
department within 90 calendar days of the date of final approval of the 
nominating ordinance or order, or a new public hearing must occur and a new 
nominating ordinance or order must be enacted.<ol> 
(g) (No change.)

sec.176.4. Application Contents for Designation of Enterprise Zones.
(a) Each application for designation of an enterprise zone, application to amend 
the boundaries of a designated enterprise zone, or for designation of a 
recycling market development zone must be typed directly on the form provided by 
the department and must include all applicable attachments as specified in the 
application. 
(1) (No change.)
(2) The applicant. If a joint application is being submitted by a municipality 
and county, or a combination of municipalities and/or counties, the information 
must be provided for each entity. The application must contain the following 
information and documentation concerning the applicant: 
(A) (No change.)
(B) a certified copy of the ordinance or order as appropriate of the governing 
body of the applicant nominating the area within its jurisdiction as an 
enterprise zone under the Act, containing the information set forth in the Act, 
sec.2303.104, and identifying by job title the liaison[,] <nl>or<ol> liaisons[,] 
<nl>and<ol> representative or representatives in accordance with paragraph (1) 
of this subsection. The ordinance or order must specify any incentives to be 
provided by the municipality or county to business enterprises in the zone, 
including the conditions and circumstances governing the sale of surplus public 
buildings or vacant public lands at less than fair market value and the public 
purpose that will be achieved by the sale. At least three incentives must be 
offered in the zone which are not offered elsewhere throughout the jurisdiction. 
At least one incentive must be financial in nature. The ordinance or order may 
nominate more than one zone, but separate applications must be submitted for 
each zone; 
(C) (No change.)
(3)-(4) (No change.)
(5) The zone. The application must contain the following information and 
documentation concerning the proposed zone: 
(A) a map of the proposed enterprise zone location which clearly shows zone 
boundaries, including existing streets and highways, rail, [and] air facilities, 
<nl>and industrial parks<ol>; 
(B)-(F) (No change.)
(6) The local business incentives. 
(A) (No change.)
(B) For the purposes of tax abatement under the Property Redevelopment and Tax 
Abatement Act (Tax Code, Chapter 312), an enterprise zone designated after 
August 28, 1989 is considered to be a reinvestment zone without further 
designation and <nl>effective September 1, 1995<ol> the reinvestment zone is 
effective for the term of the enterprise zone. In accordance with Chapter 
312.204 and 312.206 of the Tax Code, property tax abatement agreements between 
the governing body of each taxing unit and property owners in an enterprise 
zone, may, but are not required to, contain terms that are identical to those 
contained in the agreement with the municipality, county or both. The terms of 
the agreement that may vary are the portion of the property that is to be exempt 
from taxation under the agreement and the duration of the agreement.
(C) (No change.)
(7) (No change.)
(b)-(c) (No change.)

sec.176.7. Requirements for Designation of Enterprise Projects.
(a) The department may not designate a nominated qualified business as an 
enterprise project unless it determines that: 
(1) the business meets the requirements set forth in the Act, <nl> 
sec.2303.402<ol> [sec.2303.401] and this chapter; 
(2)-(5) (No change.)
(b) (No change.)
<nl>(c)<ol> <nl> For job creation a business must be seeking to create new jobs, 
or for an existing business seeking to expand and increase their current level 
of employment in Texas. The program, however, does not allow benefit for moving 
existing jobs from one Texas city to another within the state. <ol>
<nl>(d)<ol> <nl> For job retention a business must submit documentation and 
receive prior approval of documentation in order to qualify for using one of the 
following criteria: <ol>
<nl>(1)<ol> <nl> that permanent employees will be permanently laid off; or <ol>
<nl>(2)<ol> <nl> the business will permanently close down; or <ol>
<nl>(3)<ol> <nl> the business will relocate out of state; or <ol>
<nl>(4)<ol> <nl> a 10% increase in production capacity will occur; or <ol>
<nl>(5)<ol> <nl> a 10% decrease in overall cost per unit produced will occur. 
<ol>
<nl>(6)<ol> <nl> In any case, for job retention, the business must maintain the 
same level of employment that existed 90 days prior to the date of 
application.<ol>

sec.176.8. Application Contents for Designation of an Enterprise Project.
(a)-(b) (No change.)
(c) A lessee or purchaser of a qualified business which has been designated as 
an enterprise project may apply to the department to assume the enterprise 
project designation of the business leased or purchased. The request must be 
made through the appropriate enterprise zone governing body or bodies which must 
take official action, in the form of a resolution, approving of the assumption 
of the enterprise project designation by the lessee or purchaser. The resolution 
should be submitted along with the following information to the department: 
(1) (No change.)
(2) a written certification from the lessee or purchaser on a form to be 
provided by the department that the lessee or purchaser will be a qualified 
business under the Act, <nl>sec.2303.402<ol> [sec.2303.401]; and 
(3)-(4) (No change.)
<nl>(d)<ol> <nl> A designated enterprise project may apply to the department for 
an adjustment to the total number of jobs allocated in their original 
application, in accordance with the Act, sec.2303.407 (regarding Allocation of 
Jobs Eligible for Tax Refund). The enterprise project may not make more than one 
adjustment to the job allocation during the five year designation of the 
project. The request can be made any time during the five year designation 
period. The adjustment of a project designation does not extend the original 
designation period. To receive department approval for an adjustment to the job 
allocation, the project must submit through the applicant governing body or 
bodies: <ol>
<nl>(1)<ol> <nl> a written request from the applicant governing body or bodies 
to adjust the total number of jobs originally allocated to the enterprise 
project operating in an enterprise zone within its jurisdiction; <ol> 
<nl>(2)<ol> <nl> a written explanation by the designee of the reasons for the 
adjustment and any changes to the commitments made by the business in the 
original enterprise project application, if applicable; <ol>
<nl>(3)<ol> <nl> on a form provided by the Department, the designee must provide 
a breakdown of the types of new jobs by classification or title and the salary 
range or hourly-rate for each position for which benefit is sought (Note: State 
sales and use tax paid on qualifying items and adjusted jobs created within 90 
working days prior to the date of application may be considered for refund); and 
<ol>
<nl>(4)<ol> <nl>designee must submit documentation that original commitments 
i.e. the projected number of jobs and investment have been met or will be met as 
specified in their original application.<ol>

sec.176.10.Approval Standards.
(a) (No change.)
(b) Approval standards for designation of enterprise projects. The department 
shall designate qualified businesses as enterprise projects on a competitive 
basis. Applications for designation of enterprise projects will be accepted on a 
quarterly basis on or before the following application deadlines: 
(1) [During the state fiscal biennium beginning September 1, 1995, the] 
<nl>The<ol> application deadline for receipt of enterprise project applications 
by the department is 5:00 p.m., Austin, Texas time, on the first business day of 
every third month beginning with September 1995. The department may designate no 
more than 65 enterprise projects during any fiscal biennium, as specified by the 
Act, sec.2303.403.
(2) The department will designate qualified businesses as enterprise projects 
under the following conditions: 
(A) Each enterprise zone governing body may not have more than <nl>three<ol> 
[four] qualified businesses designated as enterprise projects in enterprise 
project eligible enterprise zones within its jurisdiction during the state 
fiscal biennium beginning September 1, 1995. The enterprise project designations 
will be granted by the department on a first-come, first-served basis, subject 
to the limitations in this section and based upon the availability of enterprise 
project designations. Although enterprise project designations will be awarded 
on a first-come, first-served basis, applications will be scored for the purpose 
of awarding bonus enterprise project designations. 
(B) Each enterprise project application will be scored against all other 
enterprise project applications <nl>approved during a<ol> [received each] 
quarterly deadline, as specified in sec.176.10 (b)(1) of this chapter. If an 
enterprise project application scores within the top quartile (25%) of all the 
other applications <nl>approved in<ol> [submitted on] a quarterly deadline, the 
nominating enterprise zone may nominate a qualified business for a bonus 
enterprise project designation on any subsequent quarterly deadline within the 
state fiscal biennium. Designations will be awarded only if enterprise project 
designations are available. The bonus enterprise project applications will be 
scored in the same manner as all other enterprise project applications received 
on each quarterly deadline. If a bonus project application scores within the top 
quartile (25%) of all the bonus and regular applications received on a quarterly 
deadline, the nominating enterprise zone may nominate an additional bonus 
enterprise project for designation on any subsequent quarterly deadline within 
the same fiscal biennium. The bonus enterprise project designations may only be 
located <nl>in an enterprise zone within the governing body's jurisdiction<ol> 
[in the enterprise zone] from which the bonus enterprise project designation was 
earned, subject to enterprise project availability. Each application submitted 
to the department will be evaluated on the commitments made by the community and 
qualified business as specified under the Act, sec.2303.405. In no case may an 
enterprise zone governing body have a combined total of more than six enterprise 
project designations, including regular and bonus designations, during the state 
fiscal biennium beginning September 1, 1995. 
(C) (No change.)
(3) (No change.)
(c)-(i) (No change.)

sec.176.11.Reporting Requirements.
(a) Annual reports. 
(1) Each municipality, county, or combination of municipalities and/or counties 
that authorized the creation of an enterprise zone shall submit an annual report 
to the department on or before October 1 of each year. The report must be in a 
form prescribed by the department and contain the information listed in the Act, 
sec.2303.205 (c). The information in the report will be used by the department 
to compile an annual report to the governor, legislature, and the Legislative 
Budget Board by December 1 as required by the Act. [The information will also be 
used to compile a bi-annual cost benefit analysis, as required by the Act, 
sec.2303.0525.] If such report is not received by the deadline, the department 
may, following a public hearing, consider termination of the designation of the 
enterprise zone. 
(2) (No change.)
(b) Other reports or documents. 
(1) (No change.)
[(2) Bi-annual cost-benefit analysis of program. Not later than December 1 of 
each even-numbered year, the department shall prepare a cost-benefit analysis of 
the program and submit it to the state auditor for review and comment on the 
methodology and conclusions of the analysis. Before each regular legislative 
session convenes, the state auditor shall submit the analysis and the state 
auditor's comments on the analysis to the governor, the lieutenant governor, and 
the speaker of the house of representatives.] 
<nl>(2)<ol> [(3)] No later than September 1 of each year, a neighborhood 
enterprise association shall furnish an annual statement to the applicable 
governing body or bodies on the programmatic and financial status of any 
approved project and an audited financial statement of the project. The 
governing body or bodies shall include information about all reports filed by 
the neighborhood enterprise association in its annual report on the applicable 
enterprise zone due the department by each October 1 during the zone designation 
period. 
Filed with the Office of the Secretary of State, on February 5, 1998.
TRD-9801762
W. Lane Lanford
Chief Administrative Officer
Texas Department of Economic Development
Earliest possible date of adoption: May 23, 1998
For further information, please call: (512) 936-0181

TITLE 16. ECONOMIC REGULATION
PART II. Public Utility Commission of Texas
CHAPTER 23. Substantive Rules
Telephone
16 TAC sec.23.93
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Public Utility 
Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Public Utility Commission of Texas (PUC) proposes the repeal of sec.23.93, 
relating to Distance Learning, Information Sharing Programs, and Interactive 
Multimedia Communications. The Appropriation Act of 1997, HB 1, Article IX, 
Section 167 (Section 167) requires that each state agency review and consider 
for readoption each rule adopted by that agency pursuant to the Government Code, 
Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a 
minimum, an assessment by the agency as to whether the reason for adopting or 
readopting the rule continues to exist. The PUC held three workshops to conduct 
a preliminary review of its rules. As a result of these workshops, the PUC is 
reorganizing its current substantive rules located in 16 Texas Administrative 
Code (TAC) Chapter 23 to: (1) satisfy the requirements of Section 167; (2) 
repeal rules no longer needed; (3) update existing rules to reflect changes in 
the industries regulated by the commission; (4) do clean-up amendments made 
necessary by changes in law and commission organizational structure and 
practices; (5) reorganize rules into new chapters to facilitate future 
amendments and provide room for expansion; and (6) reorganize the rules 
according to the industry to which they apply. As a result of this 
reorganization, sec.23.93 will be duplicative of the proposed new section in 
Chapter 26 of this title relating to Substantive Rules Applicable to 
Telecommunications Service Providers. Project Number 18700 has been assigned to 
the proposed repeal of sec.23.93. 
Tammy Cooper, senior attorney, Office of Policy Development, has determined that 
for each year of the first five-year period the repeal is in effect there will 
be no fiscal implications for state or local governments as a result of 
enforcing or administering the repeal. 
Ms. Cooper has determined that for each year of the first five years the repeal 
is in effect, the public benefit anticipated as a result of the repeal will be 
the elimination of a duplicative rule. There will be no effect on small 
businesses as a result of repealing this section. There is no anticipated 
economic cost to persons as a result of repealing this section. 
Ms. Cooper has also determined that for each year of the first five years the 
repeal is in effect there will be no impact on employment in the geographical 
area affected by the repeal of this section. 
Comments on the proposed repeal (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 10 days after publication. All comments 
should refer to Project Number 18700. 
This repeal is proposed under the Public Utility Regulatory Act, Texas Utilities 
Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the Public 
Utility Commission with the authority to make and enforce rules reasonably 
required in the exercise of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002. 
sec.23.93. Distance Learning, Information Sharing Programs, and Interactive 
Multimedia Communications.
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 6, 1998.
TRD-9801705
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 936-7308

CHAPTER 26. Substantive Rules Applicable to Telecommunications Service Providers
SUBCHAPTER G. Advanced Services
16 TAC sec.26.141
The Public Utility Commission of Texas proposes new sec.26.141, relating to 
Distance Learning, Information Sharing Programs, and Interactive Multimedia 
Communications. Project Number 18700 has been assigned to this proposed new 
rule. New sec.26.141 will replace corresponding sec.23.93 of this title 
(relating to Distance Learning, Information Sharing Programs, and Interactive 
Multimedia Communications). The specific change to this rule adds new subsection 
(c) in order to clarify the combination of state and federal discount programs 
for qualifying schools, libraries, and other consortia pursuant to this rule and 
sec.23.107 of this title (relating to Educational Percentage Discount Rates or 
E-Rates). The commission makes this change based on the recent ruling by the 
Federal Communications Commission (FCC), In the Matter of Federal-State Joint 
Board on Universal Service, CC Docket No. 96-45, Fourth Order on Reconsideration 
(December 30, 1997). In that order, the FCC determined that any federal discount 
should be applied prior to the application of any state discount. Therefore, the 
new language implements this ruling, and directs that federal educational 
percentage discount rates (E-rates) be applied prior to any applicable state 
discount. Further, any subsequent state discount should be applied based on the 
federal discount, not the full tariffed rate. 
The Appropriation Act of 1997, HB 1, Article IX, Section 167 (Section 167) 
requires that each state agency review and consider for readoption each rule 
adopted by that agency pursuant to the Government Code, Chapter 2001 
(Administrative Procedure Act). Such reviews shall include, at a minimum, an 
assessment by the agency as to whether the reason for adopting or readopting the 
rule continues to exist. The PUC held three workshops to conduct a preliminary 
review of its rules. As a result of these workshops, the PUC is reorganizing its 
current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 
23 to: (1) satisfy the requirements of Section 167; (2) repeal rules no longer 
needed; (3) update existing rules to reflect changes in the industries regulated 
by the commission; (4) do clean-up amendments made necessary by changes in law 
and commission organizational structure and practices; (5) reorganize rules into 
new chapters to facilitate future amendments and provide room for expansion; and 
(6) reorganize the rules according to the industry to which they apply. 16 TAC 
Chapter 26 has been established for all commission substantive rules applicable 
to telecommunications service providers. The duplicative sections of Chapter 23 
will be proposed for repeal as each new section is proposed for publication in 
Chapter 26. 
Parties should note that the commission is considering a related matter in 
Investigation into the Interaction of Federal and State Discounts for Schools 
and Libraries Pursuant to Chapters 58 & 59 of PURA, Project Number 18723. The 
commission tentatively will address that project at its open meeting scheduled 
for February 25, 1998. 
Tammy Cooper, senior attorney, Office of Policy Development, has determined that 
for the first five years the section is in effect there will be no fiscal 
implications for state or local governments as a result of the enforcing or 
administering the sections. 
Ms. Cooper 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 
this section will be the increased access by schools and libraries to new 
technologies and communications services due to lower costs of such services and 
the necessary infrastructure. 
There is no anticipated economic cost to persons who are required to comply with 
the section as proposed. The persons required to comply with this section will 
receive reimbursement for certain costs by the federal E-Rates discount program. 
For each year of the first five years the section is in effect, there will be no 
effect on small businesses as a result of enforcing the proposed section. Ms. 
Cooper has further determined that for the first five years the proposed section 
is in effect there will be no impact on the opportunities for employment in the 
geographic areas of Texas affected by implementing the requirements of the 
rules. 
Comments on the proposed rule (16 copies) may be submitted to Filing Clerk, 
Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, 
Austin, Texas, 78701-3326, within 10 days after publication. All comments should 
refer to Project Number 18700. The commission invites specific comments 
regarding whether the reason for adopting the rule in Chapter 23 continues to 
exist in adopting its corresponding section in the new chapter. The commission 
also invites specific comments regarding the costs associated with, and benefits 
that will be gained by, implementation of the rule. The commission will consider 
the costs and benefits in deciding whether to adopt the rule. 
This rule is proposed under the Public Utility Regulatory Act, Texas Utilities 
Code Annotated sec.14.002 (Vernon 1998) (PURA), which provides the Public 
Utility Commission of Texas with the authority to make and enforce rules 
reasonably required in the exercise of its powers and jurisdiction. This rule is 
also proposed under the authority delegated to the Public Utility Commission 
pursuant to the Public Utility Regulatory Act, sec.sec.57.021 -57.025. 
Cross Index to Statutes: PURA sec.sec.14.002; 57.021; 57.022; 57.023; 57.024; 
57.025. 

sec.26.141. Distance Learning, Information Sharing Programs, and Interactive 
Multimedia Communications.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Distance learning. Instruction, learning, and training that is transmitted 
from one site to one or more sites by telecommunications services that are used 
by an educational institution predominantly for such instruction, learning, or 
training, including video, data, voice, and electronic information. 
(2) Educational institution. Accredited primary or secondary schools owned or 
operated by state and local government entities or by private entities; 
institutions of higher education as defined by the Education Code, 
sec.61.003(13); the Texas Education Agency, its successors and assigns; regional 
education service centers established and operated pursuant to the Education 
Code, Chapter 8; and the Texas Higher Education Coordinating Board, its 
successors and assigns. 
(3) Information sharing program. Instruction, learning, and training that is 
transmitted from one site to one or more sites by telecommunications services 
that are used by a library predominantly for such instruction, learning, or 
training, including video, data, voice, and electronic information. 
(4) Interactive multimedia communications. Real-time, two-way, interactive 
voice, video, and data communications conducted over networks that link 
geographically dispersed locations. This definition includes interactive 
communications within or between buildings on the same campus or library site. 
(5) Library. Public library or regional library system as defined by Government 
Code, sec.441.122, or a library operated by an institution of higher education 
or a school district. 
(b) Telecommunications services eligible for reduced rates.
(1) Any tariffed service, if used predominantly for distance learning purposes 
by an educational institution or information sharing program purposes by a 
library, is eligible for reduced rates, as set forth in this section. 
(2) A service is used predominantly for distance learning purposes by an 
educational institution or information sharing program purposes by a library 
when over 50% of the traffic carried, whether in video, data, voice, and/or 
electronic information, is identified for such use pursuant to the requirements 
of subsection (d)(1) of this section. 
(c) Coordination with federal discounts. For any discount received pursuant to 
sec.23.107 of this title (relating to Educational Percentage Discount Rates (E- 
Rates)), an eligible school, library or consortia may apply such discount prior 
to any discount received under this section. Any subsequent discount received 
under this section shall apply to the discounted E-Rate and not the tariffed 
rate. 
(d) Process by which an educational institution or library qualifies for reduced 
rates other than through a customer-specific contract.
(1) Affidavit. To qualify for a discounted rate, an educational institution or 
library, as defined in subsection (a) of this section, must provide a sworn 
affidavit to the dominant certificated telecommunications utility account 
representative or, if no account representative is assigned, to the business 
office of the utility. 
(A) The affidavit shall: 
(i) specify the requested service(s) to be discounted; 
(ii) quantify, if applicable, the requested service(s) to be discounted; 
(iii) state that the discounted service(s) will be used predominantly for 
distance learning purposes or information sharing program purposes; and
(iv) specify the intended use(s) of the discounted service(s).
(B) The affidavit shall be signed by the administrative head of the institution 
(e.g., principal, president, chancellor) or library , or a designee given the 
task and authority to execute the affidavit on behalf of the educational 
institution or library requesting the discounted rates.
(C) No other special form needs to be provided as part of the application 
process. 
(D) The educational institution or library shall provide an affidavit each time 
it orders services that will be used predominantly for distance learning 
purposes or information sharing program purposes. 
(2) Tariff filing. Within 30 days after the most recent effective date of this 
section, each dominant certificated telecommunications utility as of September 
1, 1995, shall file a distance learning and information sharing program tariff, 
providing for a 25% discount on any service used predominantly for distance 
learning or information sharing program purposes, other than a service offered 
pursuant to a customer-specific contract. The tariff filing shall concern only 
the implementation of this section and not affect any of the utility's other 
rates or services not utilized for distance learning or information sharing 
program purposes. Once the tariff goes into effect, any educational institution 
or library subsequently filing an affidavit, as described in paragraph (1) of 
this subsection, shall be eligible to receive the requested service at the 
discounted rate. 
(e) Interactive multimedia communications services. Any dominant certificated 
telecommunications utility that provides interactive multimedia communications 
services may file a tariff to establish rates at levels necessary, using sound 
rate- making principles, to recover costs associated with providing such 
services to educational institutions or libraries. Those interactive multimedia 
communications services used predominantly for distance learning or information 
sharing program purposes, however, shall qualify for a 25% discount pursuant to 
subsection (d) of this section. 
(f) Customer-specific contracts. When a service is provided to an educational 
institution or library pursuant to sec.23.27(c) of this title (relating to Rate-
Setting Flexibility for Services Subject to Significant Competitive Challenges), 
the dominant certificated telecommunications utility shall price those 
components of the service used predominantly for distance learning or an 
information sharing program no less than 105%, and no greater than 110%, of the 
customer-specific long-run incremental cost. 
(g) Cost determination. Not withstanding subsections (d) and (e) of this 
section, once the commission develops cost determination rules for 
telecommunications services generally, a reduced rate approved under this 
section shall recover the service- specific long-run incremental costs. In the 
case of interactive multimedia communications services, however, the commission 
may allow a rate to be set lower than the long-run incremental cost of a 
specific service if such is determined to be in the public interest. 
(h) Filing requirements. Each dominant certificated telecommunications utility 
shall file an annual report with the commission on September 1 of each year 
indicating the demand for distance learning or information sharing program 
services provided under the distance learning or information sharing program 
tariff. The report shall include the following: 
(1) the type of institution(s) or libraries provided service(s);
(2) type(s) of service(s) provided to each institution or libraries; and 
(3) quantity of the service(s) provided. 
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 6, 1998.
TRD-9801704
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 936-7308

SUBCHAPTER L. Wholesale Market Provisions
16 TAC sec.26.283
The Public Utility Commission of Texas proposes new sec.26.283, concerning 
Infrastructure Sharing. The proposed new section will implement the Public 
Utility Regulatory Act, Texas Utilities Code Annotated sec.60.163 (Vernon 1998) 
(PURA), which requires the commission to adopt rules requiring a local exchange 
company to share public switched network infrastructure and technology with 
another local exchange company under certain conditions. Project Number 17296 
has been assigned to this proposed new section. 
Martin Wilson, assistant general counsel, has determined that for each year of 
the first five-year period the proposed new section is in effect there will be 
no fiscal implications for state or local government as a result of enforcing or 
administering the new section. 
Mr. Wilson has determined that for each year of the first five years the 
proposed new section is in effect the public benefit anticipated as a result of 
enforcing the section will be more efficient use of resources by local exchange 
companies. There will be no effect on small businesses as result of enforcing 
this section. There is no anticipated economic cost to entities who are required 
to comply with the section as proposed. 
Mr. Wilson has also determined that for each year of the first five years the 
proposed section is in effect there will be no impact on employment in the 
geographic area affected by implementing the requirements of the section.
Comments on the proposed new section (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North. Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication.
All comments should refer to Project Number 17296. 
This new section is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 and sec.60.163 (Vernon 1998) (PURA). Section 
14.002 provides the commission with the authority to make and enforce rules 
reasonably required in the exercise of its powers and jurisdiction. Section 
60.163 requires the commission to adopt rules regarding the sharing of public 
switched network infrastructure and technology.
Cross Index to Statutes: PURA sec.14.002 and sec.60.163. 

sec.26.283. Infrastructure Sharing.
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings unless the context clearly indicates otherwise. 
(1) Local exchange company (LEC) - As defined in the Public Utility Regulatory 
Act, Texas Utilities Code sec.51.002(4)(Vernon 1998)(PURA).
(2) Public switched network infrastructure and technology - Includes, but is not 
limited to: 
(A) Basic public switched network infrastructure and technology - The physical 
plant and corresponding functionalities that provide basic network services such 
as those listed in PURA sec.58.051. 
(B) Advanced public switched network infrastructure and technology - The 
physical plant and corresponding functionalities that provide integrated 
services digital network (ISDN) services as set forth in PURA sec.58.203(c), 
optical fiber or equivalent facilities, and Common Channel Signaling System 7. 
(3) Requesting LEC - A LEC that requests another LEC to share public switched 
network infrastructure and technology. 
(4) Sharing LEC - A LEC that has been requested by another LEC to share public 
switched network infrastructure and technology. 
(5) Sole carrier of last resort - The LEC holding a certificate of convenience 
and necessity, as to the geographic area covered by such certificate.
(b) Requirement to share. The commission may require any LEC to share public 
switched network infrastructure and technology with any other LEC that requests 
such sharing. In determining whether a LEC is required to share public switched 
network infrastructure and technology, the commission will consider such matters 
as: 
(1) whether the requesting LEC lacks economies of scale or scope that would 
prohibit the requesting LEC from offering a particular telecommunications 
service in an economically efficient manner in a specific geographic area;
(2) whether the requesting LEC is the sole carrier of last resort in the 
specific geographic area involved; 
(3) whether requiring a LEC to share its public switched network infrastructure 
and technology would be economically efficient for the sharing LEC, or, if not, 
whether terms and conditions can and should be imposed that would make such 
sharing economically efficient; and 
(4) whether requiring a LEC to share its public switched network infrastructure 
and technology is in the public interest. 
(c) Procedure to request sharing. 
(1) A LEC requesting that another LEC share public switched network 
infrastructure and technology shall make its request to the sharing LEC in 
writing. 
(2) The requesting LEC and the sharing LEC shall negotiate terms and conditions 
of the sharing arrangement. The terms and conditions may include, but are not 
required to include, joint ownership and/or operation of public switched network 
infrastructure and services by the LECs. 
(3) Within 60 days after a LEC has received a request for sharing, the sharing 
and requesting LECs shall jointly file an agreement setting forth the terms and 
conditions of the sharing arrangement. If the parties cannot reach agreement on 
the appropriate terms and conditions, the requesting party shall instead file, 
not later than the 60th day after the sharing LEC's receipt of the request, a 
petition to resolve issues related to infrastructure sharing. The petition shall 
set forth, as appropriate, the terms and conditions on which agreement has been 
reached, the specific issues the commission is being asked to resolve, the 
requesting LEC's suggested resolution of such issues in terms that could be 
inserted into an agreement, and a suggested procedural schedule for resolution 
of the issues. The petition shall also address the factors that the commission 
must consider under subsection (b) of this section. If a petition is filed in 
lieu of an agreement, the sharing LEC must file a response within 10 days of the 
filing of the petition. The sharing LEC's response must address, in like manner, 
each item required by this subsection to be included in the petition.
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 6, 1998.
TRD-9801706
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 936-7308

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 29.Purchased Health Services
SUBCHAPTER L.General Administration
25 TAC sec.29.1126
On behalf of the State Medicaid Director, the Texas Department of Health 
(department) proposes an amendment to sec.29.1126 concerning in-home total 
parenteral hyperalimentation services provided to Medicaid recipients. The 
amendment removes enteral feeding services as a covered service under in-home 
total parenteral hyperalimentation services rules because these services are 
covered under home health. The amendment also removes reference to the 
reimbursement methodology for enteral feeding services. These services are 
covered under the home health services. 
Mr. Joe Moritz, Health Care Financing Budget Director, has determined that for 
the first five-year period the section is in effect, there will be no fiscal 
implications to state or local government as a result of enforcing or 
administering the section as proposed. 
Mr. Moritz also has determined that for each year of the five years the section 
is in effect, the public benefit anticipated as a result of enforcing the 
section will be the assurance that all Medicaid recipients are receiving 
medically necessary enteral feeding services under home health services. There 
is no effect on small businesses. There is no anticipated economic costs to 
persons who are required to comply with the proposed section. There is no impact 
on local employment. 
Comments on the proposal may be submitted to Genie DeKneef, Program 
Administrator, Health Care Financing, Texas Department of Health, 1100 West 49th 
Street, Austin, Texas 78756-3168, (512) 338-6509. Comments will be accepted for 
30 days following publication of this proposal in the Texas Register. The 
department will hold a public hearing on the proposal Tuesday, March 3, 1998, 
from 9:00 a.m. until 10:00 a.m., at the Stratum, Building D, conference room 
404, 11044 Research Blvd., Austin, Texas. According to federal requirements, a 
copy of this proposal is being sent to each Texas Department of Human Services 
field office where it will be available in each county for public review and 
comment.
The amendment is proposed under the Human Resources Code, sec.32.021 and 
Government Code, sec.531.021, which provides the Health and Human Services 
Commission with the authority to adopt rules to administer the state's medical 
assistance program and is submitted by the Texas Department of Health under its 
agreement with the Health and Human Services Commission to operate the purchased 
health services program and as authorized under Chapter 15, sec.1.07, Acts of 
the 72nd Legislature, First Called Session (1991). 
The amendment affects Chapter 32 of the Human Resources Code. 

sec.29.1126.In-home Total Parenteral Hyperalimentation [and/or Enteral Feeding] 
Services.
(a) Subject to the specifications, conditions, limitations, and requirements 
established by the Texas Department of Health (department), in-home total 
parenteral hyperalimentation [and/or enteral feeding] services shall be 
available to eligible recipients who require long-term support because of 
extensive bowel resection and/or severe advanced bowel disease in which the 
bowel cannot support nutrition. Covered services must be reasonable, medically 
necessary, and prescribed by the recipient's physician (M.D. or D.O.). The 
physician must be licensed in the state in which the physician practices. 
(b) The department or its designee must prior authorize the services. Prior 
authorization request must include all pertinent medical records as required by 
the department or its designee to justify the medical necessity of the long-term 
total parenteral hyperalimentation [and/or enteral feedings]. Prior 
authorization is a mandatory requirement for payment. 
(c) Covered services include, but are not necessarily limited to: 
(1) - (2) (No change.) 
(3) education of the recipient and/or appropriate family members/support persons 
regarding the in-home administration of total parenteral hyperalimentation 
[and/or enteral feedings] before administration initially begins. Education must 
include the use and maintenance of required supplies and equipment; 
(4) visits by a registered nurse appropriately trained in the administration of 
hyperalimentation [and/or enteral feedings]. The nurse must visit the recipient 
at least once per month to monitor the recipient's status and to provide ongoing 
education to the recipient and/or family members/support persons regarding the 
administration of hyperalimentation [and/or enteral feedings]; <nl>and<ol> 
(5) enteral supplies and equipment, if medically necessary, in conjunction with 
total parenteral hyperalimentation [;and].
[(6) enteral solutions, supplies and equipment as the prescribed treatment.] 
(d) Providers of in-home total parenteral hyperalimentation [and/or enteral 
feedings] must: 
(1) - (5) (No change.) 
(e) The department or its designee shall reimburse each provider <nl> for<ol> 
providing total parenteral hyperalimentation [and/or enteral feeding] services 
on a monthly basis. Reimbursement shall be based on one-twelfth of the maximum 
yearly fee established by the department. The maximum fee established for total 
parenteral hyperalimentation is $145 per day. [The maximum fee for enteral 
feeding solution, supplies and equipment not in conjunction with total 
parenteral hyperalimentation is $75 per day.] If funding is available, the 
department will adjust the allowable fees or rates each state fiscal year by 
applying the projected rate of change of the implicit price deflator for 
personal consumption expenditure (IPD-PCE). The department shall use the lowest 
feasible IPD-PCE forecast consistent with the forecasts of nationally-recognized 
sources available to the department at the time rates are prepared. The 
department or its designee shall not reimburse more than a one-week supply of 
solutions and additives if the solutions and additives are shipped and not used 
because of the recipient's loss of eligibility, change in treatment, or 
inpatient hospitalization. The provider must exclude from its monthly billing 
any days that the recipient is an inpatient in a hospital or other medical 
facility or institution. Payment for partial months will be prorated based upon 
actual days of administration. Hospital outpatient departments furnishing in-
home total parenteral nutrition [and/or enteral feedings] must be separately 
enrolled as a provider meeting all requirements stipulated in subsection (d) of 
this section. Reimbursement to hospital outpatient departments furnishing in-
home total parenteral nutrition [and/or enteral feeding] services may not exceed 
the maximum yearly fee established by the department.  
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 6, 1998.
TRD-9801741
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 458-7236

CHAPTER 91.Cancer
The Texas Department of Health (department) proposes the repeal of sec.sec.91.1 
- 91.7 and proposes new sec.sec.91.1 - 91.14, concerning reporting of cancer and 
other precancerous or tumorous disease incidence data to the department or its 
authorized representatives. The new sections specify who is required to report; 
what cancer information is to be reported; when, how and where this information 
should be reported; a cost-recovery method to access cancer information from 
facilities failing to report in the prescribed format; a definition of reporting 
non-compliance; quality assurance activities; immunity from liability for 
reporters; confidentiality and disclosure of cancer information; and requests 
for and release of statistical and personal cancer data. 
The Cancer Registry Division has been awarded a grant by the United States 
Department of Health and Human Services, Centers for Disease Control and 
Prevention (DHHS/CDC) to provide for the support of a statewide population-based 
cancer registry that meets CDC standards for completeness, timeliness, and 
quality cancer registry data. The repeal and new sections are needed to 
implement Health and Safety Code, Chapter 82 (the Cancer Incidence Reporting 
Act) and to meet requirements of this cancer registry related federally funded 
grant.
Nancy S. Weiss, Ph.D., Director, Cancer Registry Division has determined that 
for the first five-year period the sections are in effect, there will be fiscal 
implications as a result of enforcing or administering the sections as proposed. 
The effect on state government will be an estimated increase in revenue to the 
state of approximately $210,000 per year as a result of the proposed cost-
recovery data collection. In addition, these sections are necessary to continue 
to receive $1.1 million per year in federal grant funds. It is estimated that 
costs to the state to administer the new data collection method will equal the 
revenues received. There will be no fiscal implications for most local 
governments. Local governments which are providing cancer diagnosis and/or 
treatment will incur costs of approximately $7.00 per case (average of 30 
minutes per case reported). 
Dr. Weiss has also determined that for each year of the first five years the 
sections are in effect, the public benefit anticipated as a result of enforcing 
the sections will be to have complete and accurate cancer data reported within 
six months of initial diagnosis or admission for the diagnosis or treatment of 
cancer. This will increase the availability of timely, statewide cancer 
incidence data for use in cancer prevention and control efforts in the State. 
The anticipated effect on small businesses (as well as large businesses) who do 
not report will be the cost of data collection by the department estimated to be 
$30 per unreported cancer case. The economic costs to persons who are required 
to comply with the sections as proposed will be the staff time to complete 
reporting requirements which is approximately 30 minutes per case (estimated 
$7.00 per case). There will be no impact on local employment.
Comments on the proposal may be submitted to Nancy S. Weiss, Ph.D., Director, 
Cancer Registry Division, Texas Department of Health, 1100 West 49th Street, 
Austin, Texas, 78756, (512) 467-2239. Comments will be accepted for 30 days 
following publication of this proposal in the Texas Register.

Cancer Registry
25 TAC sec.sec.91.1-91.7
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Health or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The repeals are proposed under Health and Safety Code sec.82.006 which provides 
the department with the authority to adopt rules necessary to implement Chapter 
82 (Cancer Registry); sec.81.004 which provides the Texas Board of Health with 
the authority to administer Chapter 81 for protecting the public's health and 
preventing the introduction of disease in the state; and sec.12.001, which 
provides the Texas Board of Health with the authority to adopt rules for the 
performance of every duty imposed by law on the board, the department, and the 
commissioner of health. 
The repeals affect Health and Safety Code, Chapter 82. 
sec.91.1.Definitions.
sec.91.2.Reporting Requirements.
sec.91.3.List of Reportable Diseases.
sec.91.4.Fee for Collection of Cancer Data.
sec.91.5.Confidentiality and Disclosure.
sec.91.6.Requests for Statistical Cancer Morbidity and Mortality Data.
sec.91.7.Requests and Release of Personal Cancer Data.
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 9, 1998.
TRD-9801853
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: March 22, 1998
For further information, please call: (512) 458-7236

SUBCHAPTER A.Cancer Registry
25 TAC sec.sec.91.1-91.14
The new sections are proposed under Health and Safety Code sec.82.006 which 
provides the department with the authority to adopt rules necessary to implement 
Chapter 82 (Cancer Registry); sec.81.004 which provides the Texas Board of 
Health with the authority to administer Chapter 81 for protecting the public's 
health and preventing the introduction of disease in the state; and sec.12.001, 
which provides the Texas Board of Health with the authority to adopt rules for 
the performance of every duty imposed by law on the board, the department, and 
the commissioner of health. 
The new sections affect Health and Safety Code, Chapter 82. 

sec.91.1.Purpose.
These sections implement the Texas Cancer Incidence Reporting Act, Health and 
Safety Code, Chapter 82, which authorizes the Texas Board of Health to adopt 
rules concerning the reporting of cases of precancerous and tumorous diseases 
and cancer for the recognition, prevention, cure, or control of those diseases, 
and to facilitate participation in the national program of cancer registries 
established by 42 United States Code, sec.sec.280e to 280e-4. Nothing in this 
section shall preempt the authority of facilities or individuals providing 
diagnostic or treatment services to patients with cancer to maintain their own 
facility based tumor registries. 

sec.91.2.Definitions.
The following words and terms, when used in these sections, shall have the 
following meanings, unless the context clearly indicates otherwise. 
Act - The Texas Cancer Incidence Reporting Act, Texas Health and Safety Code, 
Chapter 82. 
Ambulatory surgical center - A facility licensed under the Texas Health and 
Safety Code, Chapter 243. 
Board - Texas Board of Health. 
Cancer - Includes a large group of diseases characterized by uncontrolled growth 
and spread of abnormal cells; any condition of tumors having the properties of 
anaplasia, invasion, and metastasis; a cellular tumor the natural course of 
which is fatal; and malignant neoplasm. 
Cancer reporting handbook - The division's manual for cancer reporters which 
documents reporting procedures and format. 
Cancer treatment center - A special health facility devoted to the study, 
prevention, diagnosis, and treatment of neoplastic and allied diseases. 
Clinical laboratory - An accredited facility in which tests are performed 
identifying findings of anatomical changes; and specimens are interpreted and 
pathological diagnoses are made. 
Department - Texas Department of Health. 
Division - Cancer Registry Division. 
Health care provider - A physician, hospital, outpatient clinic, nursing home 
and all other facilities, individuals, or agencies providing diagnostic or 
treatment services to patients with cancer. 
Health professional - An individual whose vocation or profession is directly or 
indirectly related to the maintenance of the health of another individual and 
duties that require a specified amount of formal education and may require a 
special examination, certification, or license or membership in a regional or 
national association. 
Hospital - A general or special hospital licensed under Health and Safety Code, 
Chapter 241 (Texas Hospital Licensing Law); The University of Texas System 
Cancer Center. 
Personal data - Information that includes items which may identify an 
individual. 
Physician - A person licensed by the Texas State Board of Medical Examiners to 
practice medicine in Texas. 
Precancerous disease - Abnormality of development and organization of adult 
cells; a condition of early cancer, without invasion of neighboring tissue. 
Quality control- Operational procedures by which the accuracy, completeness, and 
timeliness of the information reported to the department can be determined and 
verified. 
Regional cancer registry - The organization authorized to receive and collect 
cancer data for a designated area of the state and which maintains the system by 
which the collected information is reported to the department. 
Regional director - The physician who is the chief administrative officer of a 
public health region and is designated by the department under the Local Public 
Health Reorganization Act, Health and Safety Code, sec.121.007.
Report - Information that is to be provided to the department; the notification 
to the appropriate authority of the occupancy of a specific cancer or tumorous 
disease in a person, including all information required to be provided to the 
department.
Statistical data - Aggregate presentation of individual records on cancer cases 
excluding patient identifying information. 
Texas Cancer Registry - The cancer incidence reporting system administered by 
the Cancer Registry Division. 
Tumorous disease - A new growth of tissue in which the multiplication of cells 
is uncontrolled and progressive, also called neoplasm; a swelling, enlargement, 
or abnormal mass, either benign or malignant, which performs no useful 
functions.

sec.91.3.Who Shall Report.
(a) Each hospital, cancer treatment center, or ambulatory surgical center shall 
report to the department, by methods specified in sec.sec.91.4-91.7 of this 
title (relating to Cancer Registry) required data from each medical record in 
its custody or under its control of cases of cancer or those precancerous or 
tumorous diseases specified by the board in sec.91.4 of this title (relating to 
What to Report). 
(b) Each clinical laboratory shall report to the department, by methods 
specified in sec.91.6 of this title (relating to How to Report) required data 
from each medical record in its custody or under its control of cases of cancer 
or those precancerous or tumorous disease specified by the board in sec.91.4 of 
this title, except for cases reported or to be reported by subsection (a) of 
this section. 
(c) Each physician or other health professional shall report to the department, 
by methods specified in sec.91.6 of this title, required data from each medical 
record in his or her custody or under his or her control of cases of cancer or 
those precancerous or tumorous diseases specified by the board in sec.91.4 of 
this title, except for cases reported or to be reported by subsection (a) of 
this section. 
(d) The department will furnish on request to each health care provider within 
the state requisite forms to be completed on all cancer cases. 
(e) If a hospital, other required facility or individual fails to report in a 
format prescribed by the department, the department or its authorized 
representative may access the information from the hospital, other facility or 
individual and report it in the appropriate format. In these cases, the 
hospital, other facility or individual shall reimburse the department or the 
authorized representative for its cost to access and report the information.
(f) Any hospital, other facility or individual which is required to reimburse 
the department or its authorized representative for the cost to access and 
report the information pursuant to subsection (e) of this section shall provide 
payment to the department or its authorized representative within 60 days of the 
day this payment is demanded. In the event any hospital, other facility or 
individual fails to make payment to the department or its authorized 
representative within 60 days of the day the payment is demanded, the department 
or its authorized representative may, at its discretion, assess a late fee not 
to exceed one and one-half percent per month of the outstanding balance. 
Further, in the event that the representative takes legal action to recover 
costs and any associated fees, and the department or its authorized 
representative receives a judgement in its favor, the hospital, other facility 
or individual shall also reimburse the department or its authorized 
representative for any additional cost incurred to pursue the legal action. Late 
fees and payment made to the department by hospitals, other facilities or 
individuals pursuant to this subdivision shall be considered as reimbursement of 
the additional costs incurred by the department. 
(g) All physicians, hospitals, outpatient clinics, nursing homes, hospices, and 
other facilities, individuals or agencies providing diagnosis or treatment 
services to patients with cancer shall grant the department or its authorized 
representative access to all records which would identify cases of cancer or 
would establish characteristics of the cancer, treatment of cancer, or medical 
status of any identified cancer patient. 

sec.91.4.What to Report.
(a) Reportable conditions. 
(1) Cases of cancer or those precancerous or tumorous diseases to be reported to 
the division are as follows: 
(A) all neoplasms with a behavior code of two or three in the most current 
edition of the International Classification on Diseases for Oncology (ICD-O) 
with the exception of those designated by the division as non-reportable in the 
cancer reporting handbook; 
(B) all benign and borderline neoplasms of the brain and central nervous system; 
(C) cystadenomas of borderline malignancy of ovary (ICDO-2 codes C56.9 and 
M83801); 
(D) hydatiform mole, malignant (ICDO-2 codes C58.9 and M91001); and 
(E) any neoplasm specified malignant. 
(2) Codes and taxa of the International Classification of Diseases, Ninth 
Revision, Clinical Modification which correspond to the division's reportable 
list are specified in the cancer reporting handbook.
(b) Reportable information.
(1) The data required to be produced or furnished shall include, but not be 
limited to: 
(A) name, address, zip code, and county of residence; 
(B) date of birth, sex, race, and Spanish ethnicity, and birthplace;
(C) information on industrial or occupational history, to the extent such 
information is available from the medical record; 
(D) diagnosis including the cancer site, cell type, tumor grade and size, stage 
of disease, date of diagnosis, and diagnostic confirmation method; 
(E) all cancer-related treatment; and 
(F) documentation to support cancer diagnosis, stage and treatment.
(2) Each report shall: 
(A) be legible and contain all data items required in paragraph
(1) of this subsection relating to reporting requirements and complete 
documentation;
(B) be in a format prescribed by the division; 
(C) meet all quality control standards utilized by the division;
(D) in the case of individuals who have more than one form of cancer, be 
submitted separately for each primary cancer or precancerous or tumorous disease 
diagnosed; 
(E) be submitted to the division electronically, or manually if electronic means 
are unavailable; and 
(F) be transported by secure means at all times to protect the confidentiality 
of the data. 

sec.91.5.When to Report.
(a) All reports of cases are to be submitted to the department within six months 
of initial diagnosis or admission at their facility for the diagnosis or 
treatment of cancer. 
(b) Data should be submitted at least quarterly; monthly submissions are 
recommended. 

sec.91.6.How to Report.
A report of cancer can be made to the department by any of the following 
methods: 
(1) submission of a completed Confidential Cancer Reporting Form (TCR No. 1); 
(2) submission electronically using one of the following methods: 
(A) three and one half inch disk; 
(B) magnetic tape; 
(C) computer modem transmission; or 
(D) the Internet. 

sec.91.7.Where to Report.
(a) All counties shall be assigned to a designated regional cancer registry of a 
public health region. 
(b) Forms. 
(1) Completed forms shall be submitted to the regional director or his designee 
at the public health region where the person with cancer or precancerous or 
tumorous disease is diagnosed or treated. 
(2) A map and list of public health regions, and the addresses of respective 
regional directors are available from the Texas Department of Health, 1100 West 
49th Street, Austin, Texas, 78756-3199. 
(c) All electronic data reports should be submitted to the central office of the 
division to the Cancer Registry Division, Texas Department of Health, 1100 West 
49th Street, Austin, Texas 78756-3199. 

sec.91.8.Compliance.
A cancer reporter in accordance with sec.91.3(a)-(c) of this title (relating to 
Who Shall Report) is considered compliant if he/she meets sec.91.4(a)(1) and (b) 
of this title (relating to What to Report), sec.91.5 of this title (relating to 
When to Report), and sec.91.6 of this title (relating to How to Report). If the 
reporter is non-compliant, the department may collect the data as stated in 
sec.91.3 of this title. 

sec.91.9.Immunity from Liability.
The following persons subject to this chapter that act in compliance with this 
chapter are not civilly or criminally liable for furnishing the information 
required under this chapter: a hospital, clinical laboratory, ambulatory surgery 
center, or cancer treatment center; or a physician or other health care 
provider. Staff of the division that disclose confidential data in the course of 
their job duties are not civilly or criminally liable for furnishing the 
information required. 

sec.91.10.Confidentiality and Disclosure.
(a) Pursuant to the Texas Cancer Incidence Reporting Act, Health and Safety 
Code, Chapter 82, sec.82.009, all data obtained directly from the medical 
records of a patient is for the confidential use of the department and the 
persons or public or private entities that the executive deputy commissioner 
determines are necessary to carry out the intent of this chapter based upon the 
recommendation of the Committee on Requests for Personal Data in sec.181.11 of 
this title (relating to Requests for Personal Data). The data are privileged and 
may not be divulged or made public in a manner that discloses the identity of an 
individual whose medical records have been used for obtaining data under this 
chapter. Information that may identify an individual whose medical records have 
been used for obtaining data under this chapter is not available for public 
inspection under Government Code, Chapter 552. Statistical informationcollected 
under this chapter is public information. 
(b) Only personnel authorized by the director of the department and other 
individuals authorized by the director of the division or his designee shall 
have access to the records. 
(c) Photocopying or other reproduction of any clinical records or reports 
containing identifying information, except as may be required in the conduct of 
the official business of the department, is prohibited. 
(d) Any legal documents other than the original incidence reports and abstracts, 
such as computer printouts or photocopies of any documents containing 
identifying information, shall also be considered confidential material while in 
active use, and shall be destroyed immediately upon termination of their use by 
the department. 
(e) Information that characterizes the caseload of a specific cancer reporting 
institution or health care provider will be treated sensitively but the 
department will follow Government Code, Chapter 552. 

sec.91.11.Quality Assurance.
(a) The department shall cooperate and consult with participating health care 
facilities so that such facilities may provide timely, complete and accurate 
data. The department will provide: 
(1) reporting training, on-site case-finding studies, and reabstracting studies; 
(2) quality assurance reports to assure the computerized data utilized for 
statistical information and data compilation is correct; and 
(3) educational information available from the department morbidity and 
mortality statistics. 
(b) The regional cancer registry shall maintain a system of quality control in 
accordance with procedures approved by the department.

sec.91.12.Requests for Statistical Cancer Data.
(a) Statistical cancer data previously analyzed and printed are available upon 
written or oral request. All other requests for statistical data requiring 
programming and computer retrieval and for which a fee is levied under 
sec.sec.1.251-1.255 of this title (relating to Requests for Providing Public 
Information) shall be in writing and directed to: Cancer Registry Division, 
Texas Department of Health, 1100 West 49th Street, Austin Texas 78756-3199.
(b) To ensure that the proper data are provided, the oral or written request 
shall include, but not be limited to, the following information:
(1) name, address, and telephone number of the person requesting the 
information; 
(2) type of data needed and for what years (e.g. lung cancer incidence rates, 
Brewster County, 1992-1995); and 
(3) name and address of person(s) to whom data and billings are to be sent (if 
applicable). 
(c) The department's obligation to furnish the requested data is subject to the 
availability and accuracy of collected data. 
(d) The department may charge for requested data in accordance with 
sec.sec.1.251-1.255 of this title (relating to Requests for Providing Public 
Information). 
(e) Publications prepared by the Cancer Registry Division from its data for 
general distribution may be subject to a set fee per copy to offset the cost of 
printing. 

sec.91.13.Requests and Release of Personal Cancer Data.
(a) Requests for data. 
(1) Requests for personal cancer data shall be in writing and directed to: Texas 
Department of Health, Committee for Requests for Personal Data, Bureau of Vital 
Statistics, 1100 West 49th Street, Austin, Texas 78756-3199.
(2) Written requests for personal data shall include the following information 
and assurances: 
(A) name and address of the agency, institution , or firm sponsoring the 
project; 
(B) name, degree(s), title, address, and telephone number of the person who will 
direct the project; 
(C) name and address of the agency, institution, or firm funding the project (if 
other than that shown in subparagraph (A) of this paragraph);
(D) names, degree(s) and titles of other persons who will have supervisory 
responsibilities in the project; 
(E) specific purpose of the project and a statement of why the disclosure of 
this information is deemed necessary to accomplish this purpose; 
(F) type of data needed and for what years (e.g., cervical cancer incidence, El 
Paso County, 1990-1995); 
(G) action planned; 
(H) results expected; 
(I) assurances that the following conditions regarding the release of the 
requested data shall be met: 
(i) the data shall be treated as strictly confidential; 
(ii) the data shall not be used for any purpose other than that specifically set 
forth in this subsection and shall not be used for any secondary purpose; 
(iii) the data shall not be made available to any other individual agency, 
institution, or firm; 
(iv) no follow back of any type shall be made to any individual, institution, or 
agency without written authorization by the Texas Department of Health; 
(v) any data released by a project shall be restricted to aggregate data and 
shall not identify any individual or institution; 
(vi) the Texas Department of Health shall be given credit as the source of the 
data; 
(vii) a copy of the results of the project shall be furnished to the Texas 
Department of Health; and 
(viii) if electronic media are provided, such media, after serving the purpose 
set forth in this subsection, shall be erased unless specific authority is 
requested and granted for their retention and future use; 
(J) name and address of person(s) to whom data and billing are to be sent must 
be provided; and 
(K) the release must be signed by the appropriate administrative officer of the 
sponsoring agency, institution, or firm. 
(b) Release of data. 
(1) The division may provide reports containing personal data back to the 
respective reporting health care provider from records previously submitted to 
the division from each respective reporting entity for the purposes of case 
management and administrative studies. These reports will not be released to any 
other entity. 
(2) The division may release personal data to other bureaus of the department, 
provided that the disclosure is require