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 XII. Advisory Commission on State Emergency Communications 
CHAPTER 251.Regional Plans-Standards
1 TAC sec.251.3
The Advisory Commission on State Emergency Communications proposes an amendment 
to sec.251.3, concerning guidelines for addressing funds. The definitions of two 
terms are being amended in order to provide for more timely completion of county 
rural addressing projects by eliminating a third party from the addressing 
activities. 
James D. Goerke, executive director, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the section. 
Mr. Goerke also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be quicker assignment of street addresses to affected areas. There 
will be no effect on small businesses. There are no anticipated economic costs 
to persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to James D. Goerke, Executive 
Director, Advisory Commission on State Emergency Communications, 333 Guadalupe 
Street, Suite 2-212, Austin, Texas 78701. 
The amendment is proposed under the Texas Health and Safety Code, Chapter 771, 
sec.sec.771.051, 771.056, and 771.057, which provides the Advisory Commission on 
State Emergency Communications with the authority to develop and amend a 
regional plan that meets standards set for the operation of prompt and efficient 
9-1-1 services throughout a region. Street addresses are essential to E9-1-1 
systems utilizing the Automatic Location Identifier feature which displays 
locations of 9-1-1 callers. 
The proposed amendment affects the Health and Safety Code, Chapter 771, 
sec.sec.771.051, 771.055, 771.056, 771.057, and the Texas Administrative Code, 
Part XII, Chapter 251, Guidelines for Addressing Funds.

sec.253.1.Guidelines for Addressing Funds.
(a) (No change.) 
(b) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Addressing Activities. The work associated with the inventory of a county 
for the purposes of rural addressing, [conversion of box and route numbers to 
street addresses,] correction of existing address errors, <nl>assignment of 
street addresses,<ol> assignment of direction or grid locations, notification to 
residents of new addresses, resolutions of address assignment problems, and 
installation of new street signs. 
(2) Addressing Completion. A county addressing project, based upon the 
inventory, has corrected address errors, <nl>assigned street addresses<ol> 
[notified all affected residents of address changes by the county addressing 
authority], provided all new or changed addresses to telephone companies [and 
the post office,] and established a maintenance method. 
(3)-(20) (No change.) 
(c)- (e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on March 23, 1998.
TRD-9804128
James D. Goerke
Executive Director
Advisory Commission on State Emergency Communications 
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-6933

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 19.Quarantines
SUBCHAPTER D.Caribbean Fruit Fly Quarantine
4 TAC sec.19.43
The Texas Department of Agriculture (the department) proposes an amendment to 
sec.19.43 concerning the Caribbean fruit fly quarantine. The amendment to 
sec.19.43 is proposed to exempt commercial fruit of avocado, bell pepper, 
lychee, and tomato from the provisions of the Caribbean fruit fly quarantine. 
The department has determined that when these fruit are commercially produced, 
cleaned, sorted, and packed, they do not present a risk of harboring Caribbean 
fruit fly. 
Awinash Bhatkar, coordinator for plant quality programs, has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result enforcing or 
administering the rule. 
Mr. Bhatkar also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of the amendment 
will be an increase in availability of commercial fruit of avocado, bell pepper, 
lychee, and tomato. There will be no effect on small businesses. There will be 
no anticipated economic cost to persons who are required to comply with the rule 
as proposed. 
Comments on the proposal may be submitted to Awinash Bhatkar, Coordinator for 
Plant Quality Programs, Texas Department of Agriculture, P. O. Box 12847, 
Austin, Texas 78711. Comments must be received no later than 30 days from the 
date of publication of the proposal in the Texas Register. 
The amendment is proposed under the Texas Agriculture Code, sec.71.001, which 
provides the Texas Department of Agriculture with the authority to establish 
quarantines against diseases and pests; and sec.71.007, which authorizes the 
department to adopt rules necessary for the protection of agricultural and 
horticultural interests. 
The code that will be affected by the proposal is the Texas Agriculture Code, 
Chapter 71, Subchapter A. 

sec.19.43. Restrictions. 
(a) (No Change.) 
(b) Exemptions. 
<nl>(1)<ol> Lime fruit which shows no yellow coloring is exempt from these 
rules. 
<nl>(2)<ol> <nl>Commercial fruit of avocado, bell pepper, lychee, and tomato is 
exempt from these rules. Commercial fruit means that fruit which has been 
commercially produced, cleaned, sorted and packed, and as a result free of 
splits or cracks, among other things, and thus without risk of harboring 
Caribbean fruit fly. <ol>
(c) (No Change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on March 19, 1998.
TRD-9804049
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-8170

TITLE 7. BANKING AND SECURITIES
PART VII. State Securities Board
CHAPTER 105.Rules of Practice in Contested Cases
7 TAC sec.105.1
The State Securities Board proposes an amendment to sec.105.1, concerning rules 
of practice in contested cases. The proposal notes procedural rules and statutes 
applicable in contested cases. 
David Grauer, Director, Enforcement Division, and John R. Morgan, Deputy 
Securities Commissioner, have determined that for the first five-year period the 
rule is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the rule. 
Mr. Grauer and Mr. Morgan also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to apprise interested persons of the administrative 
rules and statutes applicable to contested cases. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Articles 581-14, 581-23, 
and 581-24.

sec.105.1.Scope.
These rules of practice are applicable to contested cases under the Texas 
Securities Act (the "Act"). A "contested case" means a proceeding in which the 
legal rights, duties, or privileges of a party are to be determined after an 
opportunity for adjudicative hearing. A "party" means an applicant for 
registration as a dealer or salesman under the Act, sec.15 or sec.18, applicant 
for registration of securities under the Act, sec.7, or a person named in an 
administrative action taken, or proposed to be taken by the Securities 
Commissioner. In a contested case, each party is entitled to an opportunity for 
hearing after reasonable notice of not less than 30 days and to respond and 
present evidence and argument on each issue involved in the case. In the case of 
a hearing called pursuant to the Act, sec.23.A, however, notice given less than 
30, but not less that 15, days will be deemed sufficient. Such hearings shall be 
open to the public in accordance with the Public Information Act, Texas 
Government Code, Chapter 551, and conducted in accordance with the 
Administrative Procedure Act <nl>("APA")<ol>, Texas Government Code, Chapter 
2001, except as may be required by this Chapter. <nl>In a contested case filed 
at the State Office of Administrative Hearings ("SOAH"), the procedural rules of 
SOAH, described in 1 TAC Chapter 155 (relating to Rules of Procedures), the APA, 
and Board rules shall apply. A contested case is governed by the law in effect 
on the date of its filing.<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 March 16, 1998.
TRD-9803804
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

7 TAC sec.105.4
The State Securities Board proposes an amendment to sec.105.4, concerning 
request for a hearing. The proposal would add a provision to conform with the 
concurrently proposed amendment to sec.115.8 and clarify which persons subject 
to an ex parte action are entitled to a hearing, if one is requested. 
David Grauer, Director, Enforcement Division, and John R. Morgan, Deputy 
Securities Commissioner, have determined that for the first five-year period the 
rule is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the rule. 
Mr. Grauer and Mr. Morgan also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to conform the section with other Board rules to 
avoid confusion over applicable procedures. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Articles 581-14, 581-23, 
and 581-24.

sec.105.4.Request for Hearing. 
An applicant taking exception to the failure or refusal of the Securities 
Commissioner to register the applicant as a dealer or salesman under the Act, 
sec.15 or sec.18, or failure to register securities of the applicant under the 
Act, sec.7, may request a hearing pursuant to the Act, sec.24, by filing a 
written request with the Securities Commissioner. A party named in an ex parte 
order issued, or proposed to be issued, by the Securities Commissioner<nl>, 
other than an ex parte order pursuant to sec.115.8 (relating to Ex Parte 
Revocation of a Dealer or Agent Registration),<ol> may request a hearing 
pursuant to the Act, sec.24, by filing a written request with the Securities 
Commissioner no later than the 30th day after the date on which the party is 
notified of such action or proposed action.
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 March 16, 1998.
TRD-9803811
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

CHAPTER 107.Terminology
7 TAC sec.107.2
The State Securities Board proposes an amendment to sec.107.2, concerning 
definitions. The proposal would change the definition of "investment adviser" to 
remove banks and bank holding companies, and, in effect, relieve banks and bank 
holding companies from the notice filing and fee provisions in sec.115.1(i) of 
the Board's rules. The proposal also would amend the definition of "rendering 
services as an investment adviser" to allow certain persons to conduct these 
activities either through registration or by notice filing. To conform to recent 
Texas Register rule changes, all definitions in this section are being numbered. 
The proposal is complimented by a concurrent proposal to amend sec.115.1(i) to 
conform applicability of the notice filing provisions to persons within the 
definition of "investment adviser." 
Michael S. Gunst, Director, Dealer Registration Division, and Tom Spradlin, 
Director of Information Resources and Planning, have determined that there will 
be fiscal implications as a result of enforcing or administering the rule. The 
effect on state government for the first five-year period the rule will be in 
effect will be a loss in revenue estimated at $24,000. There will be no fiscal 
implications for local government as a result of enforcing or administering the 
rule. 
Mr. Gunst and Mr. Spradlin also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to more closely align the Board's definition of 
investment adviser with the definition utilized by the federal government and by 
other states and, thereby, achieve greater uniformity with other securities 
regulators and to incorporate the concept of notice filings by investment 
advisers as an authorization for rendering services as an investment adviser. 
There will be no effect on small businesses. There is no anticipated economic 
cost to persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Article 581-4. 

sec.107.2.Definitions. 
The following words and terms, when used in Part VII of this Title (relating to 
the State Securities Board), shall have the following meanings, unless the 
context clearly indicates otherwise. 
<nl>(1)<ol> Act or Securities Act or Texas Securities Act - The Texas Securities 
Act, Texas Civil Statutes, Article 581-1 et seq., as amended. 
<nl>(2)<ol> Affiliate - An "affiliate" of, or person "affiliated" with a 
specified person, is a person that directly, or indirectly through one or more 
intermediaries, controls or is controlled by, or is under common control with, 
the person specified. 
<nl>(3)<ol> APA or Administrative Procedure Act - The Administrative Procedure 
Act, Texas Government Code, Title 10, Chapter 2001, as amended. 
<nl>(4)<ol> Applicant - A person who submits an application for registration of 
securities, documents in connection with the offer and sale of federal covered 
securities, or for registration as a dealer, investment adviser, or salesman, or 
who files an application for an order of the Securities Commissioner. 
<nl>(5)<ol> Board or Securities Board - The State Securities Board of the State 
of Texas. 
<nl>(6)<ol> Business days - For the purpose of filing Form 133.29 pursuant to 
the requirements of sec.109.13(l) of this title (relating to Limited Offering 
Exemptions), means ordinary business days and does not include Saturdays, 
Sundays, or state holidays. 
<nl>(7)<ol> Certified - In conjunction with the term "financial statement(s)," 
means financial statement(s) prepared in accordance with generally accepted 
accounting principles and examined in accordance with generally accepted 
auditing standards by independent certified public accountants or independent 
public accountants for the purposes of expressing an opinion thereon. Such 
opinion shall be one acceptable to the Securities Commissioner.
<nl>(8)<ol> Code or Internal Revenue Code - The Internal Revenue Code of 1986, 
as amended. 
<nl>(9)<ol> Commissioner or Securities Commissioner - The State Securities 
Commissioner for the State of Texas. 
<nl>(10)<ol> Contested case - A proceeding in which the legal rights, duties, or 
privileges of a party are to be determined by the Securities Commissioner, or 
the Securities Board, after an opportunity for adjudicative hearing before an 
administrative law judge of the State Office of Administrative Hearings. 
<nl>(11)<ol> Control - The possession, direct or indirect, of the power to 
direct or cause the direction of the management and policies of a person or 
company, whether through the ownership of voting securities, by contract, or 
otherwise. 
<nl>(12)<ol> Credit union - For definition see the Texas Credit Union Act (Texas 
Civil Statutes, Article 2461-1 et seq., as amended), which regulates such credit 
unions. 
<nl>(13)<ol> Detailed balance sheet - A balance sheet.
<nl>(14)<ol> Detailed statement showing all assets and liabilities - A balance 
sheet. 
<nl>(15)<ol> Domestic corporation - A corporation incorporated under the laws of 
the State of Texas. 
<nl>(16)<ol> Employer - For purposes of the Texas Securities Act, sec.5.I(b), 
includes a general partner of a limited partnership with respect to a security 
sold or distributed by such limited partnership in a transaction otherwise 
meeting the requirements of sec.5.I(b). 
<nl>(17)<ol> Federal covered securities - Any security or securities described 
as a "covered security" or as "covered securities" in the Securities Act of 
1933, sec.18(b), or rules or regulations promulgated thereunder. However, until 
October 11, 1999, or such other date Congress may authorize, federal covered 
securities for which a fee has not been paid and promptly remedied following 
written notification from the Securities Commissioner to the applicant of the 
nonpayment or underpayment of such fees required by the Texas Securities Act, 
shall be excluded from the definition of federal covered securities. 
<nl>(18)<ol> Financial statement(s) - Balance sheet and related statements of 
income, changes in stockholders' equity, and cash flows, all (consolidated, if 
applicable) prepared in accordance with generally accepted accounting 
principles. The information contained in the previously described statements may 
vary according to presentation and titles as they relate to specific entities, 
such as individuals, partnerships, and nonprofit organizations. 
<nl>(19)<ol> Investment adviser - <nl>Any<ol> [ Every] person [or company] 
who<nl>,<ol> for compensation<nl>,<ol> engages in [this state in] the business 
of <nl>advising <ol> [providing personalized analyses, advice, and/or 
recommendations to] others, either directly or through publications or writings, 
as to the <nl>value of securities or as to the<ol> advisability of investing in, 
purchasing, or selling securities<nl>, or who, for compensation and as part of a 
regular business, issues or promulgates analyses or reports concerning 
securities; but does not include<ol> [. However, this interpretation is deemed 
not to apply to]: 
(A) <nl>a bank, or any bank holding company as defined in the federal Bank 
Holding Company Act of 1956, which is not an investment company <ol> [state or 
national banks in the conduct of their normal banking functions or state or 
federally chartered savings and loan institutions in the conduct of their normal 
functions]; 
(B) any lawyer, accountant, engineer, or <nl>teacher<ol> [geologist,] whose 
performance of such services is solely incidental to the practice of his or her 
profession; [or] 
<nl>(C)<ol> any broker or dealer whose performance of such services is solely 
incidental to the conduct of his business as a broker or dealer and who receives 
no special compensation therefor; 
<nl>(D)<ol> [(C)] the publisher of any bona fide newspaper, news magazine, or 
business <nl>or<ol> [and] financial publication of general and regular 
circulation<nl>; or<ol> [<nl>(E)<ol> any person whose advice, analyses, or 
reports relate to no securities other than securities which are direct 
obligations of or obligations guaranteed as to principal or interest by the 
United States, or securities issued or guaranteed by corporations in which the 
United States has a direct or indirect interest which shall have been designated 
by the Secretary of Treasury, pursuant to the Securities Exchange Act of 1934, 
sec.3(a)(12), as exempted securities for the purposes of that Act.
<nl>(20)<ol> Investment Advisers Act of 1940 - The federal statute of that name, 
as amended, 15 United States Code sec.80b-1, et seq. 
<nl>(21)<ol> Investment Company Act of 1940 - The federal statute of that name, 
as amended, 15 United States Code sec.80a-1, et seq. 
<nl>(22)<ol> License - The whole or part of any registration as a dealer, 
salesman, or agent, or similar form of permission required by the Texas 
Securities Act to sell securities or render investment advice.
<nl>(23)<ol> Licensing - The process respecting the granting, denial, renewal, 
revocation, suspension, annulment, withdrawal, or amendment of a license. 
<nl>(24)<ol> Managing agent or manager - One who is authorized to act generally 
for an organization within a particular locality.
<nl>(25)<ol> NASD - The National Association of Securities Dealers, Inc., and 
NASD Regulation, Inc., a subsidiary of the National Association of Securities 
Dealers, Inc. 
<nl>(26)<ol> Officer - A president, vice president, secretary, treasurer, or 
principal financial officer, comptroller, or principal accounting officer, or 
any other person occupying a similar status or performing similar functions with 
respect to any organization or entity, whether incorporated or unincorporated. 
<nl>(27)<ol> Operating statement - An income statement.
<nl>(28)<ol> Parent - A person controlling another person directly or 
indirectly. 
<nl>(29)<ol> Profit and loss statement - An income statement. 
<nl>(30)<ol> Proposed plan of business - As used in the Texas Securities Act, 
those aspects and only those aspects of the business set-up (other than that 
done or proposed in respect to the pricing and selling of its securities) which 
would materially affect the business relationship between the prospective 
investor and those in control of the business as such relationship would exist 
after the sale to the public of the securities sought to be registered. 
<nl>(31)<ol> Regulatory standards - All standards coming within the meaning of 
"rule" as defined herein. 
<nl>(32)<ol> Rendering services as an investment adviser - Any person [or 
company] coming within the designation cannot conduct such activity without 
first being registered as an investment adviser/dealer under the provisions of 
the Act<nl> or notice-filed under the provisions of sec.115.1(i) of this title 
(relating to General Provisions).<ol> Likewise, every person [or company (other 
than a dealer registered under the Act)] employed or appointed, or authorized by 
such person [or company ] to render services which include the giving of 
investment advice cannot conduct such activities unless registered as a 
<nl>dealer/investment adviser, a<ol> salesman<nl>,<ol> or <nl>an<ol> agent under 
the provisions of the Act<nl>, or notice-filed as a dealer/investment adviser, a 
salesman, or an agent under the provisions of sec.115.1(i) of this title 
(relating to General Provisions)<ol>. 
<nl>(33)<ol> Rule - Any statement by the Board or the Securities Commissioner of 
general applicability that implements, interprets, or prescribes law or policy, 
or describes the procedure or practice requirements of the Board or Securities 
Commissioner. 
<nl>(34)<ol> Savings and loan association - For definition see the Texas Savings 
and Loan Act (Texas Civil Statutes, Article 852a, as amended), which regulates 
such savings and loan associations. 
<nl>(35)<ol> SEC - The United States Securities and Exchange Commission. 
<nl>(36)<ol> Securities Act of 1933 - The federal statute of that name, as 
amended, 15 United States Code sec.77a, et seq.
<nl>(37)<ol> Securities Exchange Act of 1934 - The federal statute of that name, 
as amended, 15 United States Code sec.78a, et seq. 
<nl>(38)<ol> Security holders or purchasers of securities - As such terms are 
used in the Texas Securities Act, sec.5.I, do not include holders of any options 
granted pursuant to a plan which falls within the exemption for employee plans 
provided by the Texas Securities Act, sec.5.I(b).
<nl>(39)<ol> Solicitor - Any person or entity who, for compensation, acts as an 
agent of an investment adviser in referring potential clients. 
<nl>(40)<ol> Staff - Personnel of the Securities Board, excluding the members of 
the Board, the Securities Commissioner, and the Deputy Commissioner. 
<nl>(41)<ol> State, territory, or insular possession of the United States - As 
used in the Texas Securities Act, includes a commonwealth.
<nl>(42)<ol> Statement to reflect the financial condition - A balance sheet. 
<nl>(43)<ol> Telephone or telegram - For purposes of the Texas Securities Act, 
sec.7.C(2)(c), includes any means of electronic transmission such as, but not 
limited to, telephone, telegraph, wireless, graphic scanning, modem, or 
facsimile; provided, however, that the office of the State Securities Board has 
the necessary equipment to accept such a transmission. 
<nl>(44)<ol> Within this state - 
(A) A person is a "dealer" who engages "within this state" in one or more of the 
activities set out in the Texas Securities Act, sec.4.C, if either the person or 
the person's agent is present in this state or the offeree/purchaser or the 
offeree/purchaser's agent is present in this state at the time of the particular 
activity. A person can be a dealer in more than one state at the same time. 
(B) Likewise, a person is a "salesman" who engages "within this state" in one or 
more of the activities set out in the Texas Securities Act, sec.4.D, whether by 
direct act or through subagents except as otherwise provided, if either the 
salesman or the salesman's agent is present in this state or the 
offeree/purchaser or the offeree/purchaser's agent is present in this state at 
the time of the particular activity. A person can be a salesman in more than one 
state at the same time. 
(C) Offers and sales can be made by personal contact, mail, telegram, telephone, 
wireless, electronic communication, or any other form of oral or written 
communication. 
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 March 16, 1998.
TRD-9803805
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

CHAPTER 115.Dealers and Salesmen
7 TAC sec.115.1
The State Securities Board proposes an amendment to sec.115.1, concerning notice 
filings and fee provisions for investment advisers covered by the National 
Securities Markets Improvement Act of 1996 ("NSMIA"). Specifically, the proposal 
would conform the applicability of the notice filings and fee provisions for 
NSMIA-covered investment advisers to persons within the definition of investment 
adviser in the concurrently proposed amendment to sec.107.2. The proposal would 
also clarify when an amendment fee is due. 
Michael S. Gunst, Director, Dealer Registration Division, and Tom Spradlin, 
Director of Information Resources and Planning, have determined that for the 
first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Gunst and Mr. Spradlin also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to increase uniformity with federal and other states' 
laws and apprise notice filers of the applicable amendment fee. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Articles 581-28-1 and 581-
12.B. Section 28-1 provides the Board with the authority to adopt rules and 
regulations necessary to carry out and implement the provisions of the Texas 
Securities Act, including rules and regulations governing registration 
statements and applications; defining terms; classifying securities, persons, 
and matters within its jurisdiction; and prescribing different requirements for 
different classes. Section 12.B provides the Board with the authority to 
prescribe new dealer/agent registration exemptions by rule. 
The proposed amendment affects Texas Civil Statutes, Articles 581-12, 581-13, 
581-18, and 581-35.

sec.115.1.General Provisions. 
(a)-(h) (No change.) 
(i) Persons not required to register as an investment adviser or an agent of an 
investment adviser on or after July 8, 1997, by act of Congress in Public Law 
Number 104-290, Title III. 
(1) Registration as an investment adviser is not required for the following: 
(A) an investment adviser registered under the Investment Advisers Act of 1940, 
sec.203; <nl>or<ol> 
(B) a person not registered under the Investment Advisers Act of 1940, sec.203, 
because such person is excepted from the definition of an investment adviser 
under the Investment Advisers Act of 1940, sec.202(a)(11) <nl> (F)<ol>; or 
(C) (No change.) 
(2) (No change.) 
(3) Preservation of filing requirements and fees for investment advisers and 
agents exempted from registration pursuant to this subsection only. 
(A) (No change.) 
(B) Upon amendment to its Form ADV, the investment adviser or agent files: 
(i) (No change.) 
(ii) an amendment fee of $25, as provided in the Texas Securities Act, 
sec.35.C<nl>, if any information on the certificate of authorization is being 
amended<ol>. 
(C) (No change.) 
(j)-(k) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 16, 1998.
TRD-9803806
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

7 TAC sec.115.2
The State Securities Board proposes an amendment to sec.115.2, concerning dealer 
applications. The proposal formalizes an existing procedure permitting automatic 
withdrawal and abandonment of applications filed with the Dealer Registration 
Division when an applicant fails to meet registration requirements or fails to 
respond to deficiency letters from agency staff. Michael S. Gunst, Director, 
Dealer Registration Division, and Tom Spradlin, Director of Information 
Resources and Planning, have determined that for the first five-year period the 
rule is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the rule. 
Mr. Gunst and Mr. Spradlin also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to apprise applicants of withdrawal and abandonment 
procedures applicable to pending incomplete applications. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Articles 581-12, 581-13, 
and 581-18.

sec.115.2.Application.
(a)-(c) (No change.) 
(d) <nl>Withdrawal and abandonment of a dealer or agent initial application for 
registration.<ol> 
<nl>(1)<ol> Any initial application [The application] for <nl>dealer or 
agent<ol> registration <nl>that<ol> [of any person or company who] fails to meet 
registration requirements within <nl>six months<ol> [one year] of the filing 
date of the application will <nl>be considered withdrawn without prejudice<ol> 
[expire and become null and void]. A copy of this <nl>subsection<ol> [section] 
will be mailed to <nl>the applicant<ol> [applicants] at least <nl>30<ol> [60] 
days prior to the <nl>withdrawal <ol> [expiration] of <nl>the<ol> [this] 
application <nl> pursuant to this subsection<ol>. 
<nl>(2)<ol> <nl> If an applicant for registration with the Securities 
Commissioner as a dealer or agent fails to make any type of response to the most 
recent written request for information relating to an application that has been 
pending for six months, the application will be considered withdrawn. This 
withdrawal will occur automatically, if the applicant fails to respond to the 
most recent written request for information sent by certified mail to the 
applicant's address as set forth in the application. This certified written 
request shall inform the applicant that the application will be considered 
withdrawn if a response to the request for information is not received within 30 
days from the date of the certified letter. A copy of this subsection and the 
most recent written request for information will be included with the certified 
letter. <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 March 16, 1998.
TRD-9803807
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

7 TAC sec.115.3
The State Securities Board proposes an amendment to sec.115.3, concerning dealer 
examinations. The proposal would add the Series 17 examination to the list of 
exams sufficient to satisfy the general securities exam requirement for a 
limited registration to deal in all general securities except municipal 
securities. This examination is a NASD Regulation, Inc., version of the general 
securities exam that does not address municipal securities issued in the United 
States and is designed for dealer agents from the United Kingdom. 
Michael S. Gunst, Director, Dealer Registration Division, and Tom Spradlin, 
Director of Information Resources and Planning, have determined that for the 
first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Gunst and Mr. Spradlin also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be the facilitation of international trading of 
securities by dealers from the United Kingdom. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Articles 581-12, 581-13, 
and 581-18. 

sec.115.3. Examination. 
(a) (No change.) 
(b) Content. Each applicant must satisfy two examination requirements.
(1) Each applicant must pass an examination on general securities principles. 
This requirement may be satisfied by passing an examination on general 
securities principles administered by the NASD. As set out in subparagraph (B) 
of this paragraph, applicants for restricted registrations may substitute an 
examination dealing with a particular type of security for an examination on 
general securities principles. 
(A) (No change.) 
(B) In lieu of an examination on general securities principles, the Securities 
Commissioner recognizes the following limited examinations, administered by the 
NASD, for the corresponding restricted registrations:
(i)-(v) (No change.) 
(vi) for persons seeking the type of restricted registration specified in 
sec.115.1(b)(1)(M) of this title (relating to General Provisions), either 
<nl>the Series 17 -- General Securities Representative Examination, <ol> the 
Series 37 -- General Securities Representative Examination, the Series 38 -- 
General Securities Representative Examination, or the Series 47 -- General 
Securities Representative Examination. 
(2) (No change.) 
(c)-(f) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 16, 1998.
TRD-9803808
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

7 TAC sec.115.4
The State Securities Board proposes an amendment to sec.115.4, concerning 
evidence of registration. Specifically, the proposal would: delete an obsolete 
subsection and renumber the remaining subsections; clarify that the renewal 
provisions include notice filings; clarify that the fees for registration and 
the fees for notice filing are the same; update a cross-reference; and make 
other non-substantive changes. 
Michael S. Gunst, Director, Dealer Registration Division and Tom Spradlin, 
Director of Information Resources and Planning, have determined that for the 
first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Gunst and Mr. Spradlin also have determined that for each year of the first 
five years the rule is in effect the public benefit anticipated as a result of 
enforcing the rule will be to eliminate an obsolete reference and clarify 
applicability of the rule to notice filings. There will be no effect on small 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The proposed amendment affects Texas Civil Statutes, Articles 581-35, 581-41, 
and 581-42. 

sec.115.4.Evidences of Registration.
(a)-(b) (No change.) 
[(c) Transfer. An individual who is registered in Texas may transfer his or her 
registration to another registered dealer. The transfer application, along with 
a $235 fee, must be filed in duplicate. The application must be signed by the 
new employer and the individual, and must be properly notarized. Any individual 
registered via the CRD may elect transfer through that system.] 
<nl>(c)<ol> [(d)] Cancellation. A securities dealer or investment adviser is 
required to notify the Securities Commissioner upon termination of any 
registered agent from its employ. Upon receipt of such notification, the 
Securities Commissioner shall cancel the registration. Dealers who are members 
of the NASD must file through the CRD a Form U-5, Uniform Termination Notice for 
Securities Industry Registration, to comply with this subsection. 
<nl>(d)<ol> [(e)] Renewal. 
(1) Procedures for renewing expired and unexpired registrations are set forth in 
the <nl>Texas<ol> Securities Act, sec.19.C. 
(2) A notice of impending expiration of registration (renewal application) will 
be sent to a currently registered dealer or investment adviser at least 30 days 
before the expiration of its registration. The renewal application should be 
returned to the State Securities Board for processing, along with the 
appropriate fee. Each applicant fulfilling the renewal requirements set forth in 
the renewal application will be registered for the following calendar year. 
(3) If a person's registration is not renewed in a timely manner because such 
person is or was on active duty with the armed forces of the United States of 
America serving outside Texas, such person may renew the registration pursuant 
to this paragraph. 
(A) Renewal of the registration may be requested by such person, such person's 
spouse, or an individual having power of attorney from such person. The renewal 
application shall include a current address and telephone number for the 
individual requesting the renewal. 
(B) Renewal may be requested before or after expiration of the registration. 
(C) A copy of the official orders or other official military documentation 
showing that such person is or was on active duty serving outside Texas shall be 
submitted to the Securities Commissioner along with the renewal application. 
(D) A copy of the power of attorney from such person, if any, shall be filed 
with the Securities Commissioner along with the renewal application if the 
individual having the power of attorney executes any of the documents required 
in this paragraph. 
(E) A renewal application submitted to the Securities Commissioner pursuant to 
this paragraph shall be accompanied by the applicable renewal fee set out in 
subsection <nl>(e)<ol>[(f)] of this section.
(F) The State Securities Board will not assess any increased fee or other 
penalty against the person for failure to timely renew such person's 
registration if such person establishes to the satisfaction of the Securities 
Commissioner that all requirements of this paragraph have been met. 
<nl>(4)<ol> <nl>All procedures set forth in this subsection shall also apply to 
investment advisers and advisory agents who have submitted a notice filing and 
fee to the Securities Commissioner.<ol>
<nl>(e)<ol> [(f)] Registration <nl>and notice filing<ol> fees. Registration 
<nl>and notice filing<ol> fees are as follows:
(1) Securities Dealer - $275 for original applications and $240 for renewal 
applications. 
(2) Investment Adviser - $275 for original applications and $240 for renewal 
applications. 
(3) Agent, Officer, Partner, or Salesman of Securities Dealer or Investment 
Adviser - $235 for original applications and $220 for renewal applications. 
<nl>(f)<ol> [(g)] Reduced registration fees for certain persons registered in 
multiple capacities. 
(1) In general. A person may request reduced fees under paragraph
(2) of this subsection, provided they are registered or are seeking registration 
in Texas: 
(A) as either an agent of a securities dealer or as a sole proprietor securities 
dealer; and 
(B) as either an agent of an investment adviser that has less than five agents 
or as a sole proprietor investment adviser with less than five agents. 
(2) Procedure. Persons meeting the requirements of paragraph 
(1) of this subsection may request reduced registration fees by filing Form 
133.36, Request for Reduced Fees for Certain Persons Registered in Multiple 
Capacities. Form 133.36 must be filed at the time the original application for 
investment adviser agent or sole proprietor investment adviser registration is 
filed, or at least 30 days before the person's existing investment adviser agent 
or sole proprietor investment adviser registration will expire. On review of 
Form 133.36, the Securities Commissioner may, in his or her discretion, grant or 
deny the request for reduced fees or direct the person to supply additional 
information. 
(3) Reduced fees. If the Securities Commissioner grants a person's request, the 
person must pay all applicable fees for securities agent or dealer registration 
as specified in the Securities Act, sec.sec.35.A, 35.B, and 41(a), but is exempt 
from the fees specified in the Securities Act, sec.41(a), in connection with 
original and renewal applications for investment adviser agent or sole 
proprietor investment adviser registration, as applicable at the time Form 
133.36 is filed. The reduction in fees granted by the Securities Commissioner 
under this subsection shall continue in force, without any further filings, as 
long as a person remains registered in a multiple capacity status.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 16, 1998.
TRD-9803809
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

7 TAC sec.115.8
The State Securities Board proposes new sec.115.8, concerning ex parte 
revocation of a dealer or agent registration. The proposal would formalize an 
existing procedure utilized in the Dealer Registration Division which is a 
method for terminating the registrations of persons who have been unresponsive 
to repeated requests for information. The concurrently proposed amendment to 
sec.105.4 would conform to this new section. 
David Grauer, Director, Enforcement Division, Michael S. Gunst, Director, Dealer 
Registration Division, John R. Morgan, Deputy Securities Commissioner, and Tom 
Spradlin, Director of Information Resources and Planning, have determined that 
for the first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Grauer, Mr. Gunst, Mr. Morgan, and Mr. Spradlin also have determined that 
for each year of the first five years the rule in effect the public benefit 
anticipated as a result of enforcing the rule will be to apprise registrants of 
this termination procedure. There will be no effect on small businesses. There 
is no anticipated economic cost to persons who are required to comply with the 
rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The new rule is proposed under Texas Civil Statutes, Article 581-28-1. Section 
28-1 provides the Board with the authority to adopt rules and regulations 
necessary to carry out and implement the provisions of the Texas Securities Act, 
including rules and regulations governing registration statements and 
applications; defining terms; classifying securities, persons, and matters 
within its jurisdiction; and prescribing different requirements for different 
classes. 
The new rule affects Texas Civil Statutes, Articles 581-12, 581-13, and 581-18.

sec.115.8. Ex Parte Revocation of a Dealer or Agent Registration.
(a) The registration of any dealer or agent who fails to respond to a written 
request by the Securities Commissioner for information deemed necessary by the 
Securities Commissioner to determine a dealer's or agent's business repute or 
qualifications or a dealer's financial responsibility, may be revoked by 
informal disposition as provided in this section. 
(b) Prior to requesting informal disposition of the matter as set forth in 
subsection (c) of this section, the staff shall send the dealer or agent a 
notice, by certified mail or overnight delivery, to the address designated in 
the application for registration. The notice shall contain:
(1) a copy of the prior written request by the Securities Commissioner for 
information; 
(2) a copy of this section; 
(3) a statement that the dealer or agent has failed to comply with a written 
request by the Securities Commissioner; 
(4) a statement that the dealer's or agent's failure to provide the requested 
information constitutes a basis for revocation of its registration unless the 
requested information is delivered to the Securities Commissioner within 30 days 
of the date of the notice; 
(5) a statement that if the dealer or agent elects not to furnish the requested 
information, the dealer or agent may request a hearing by delivering to the 
Securities Commissioner, within 30 days of the date of the notice, a written 
request for a hearing; and 
(6) a statement that the dealer or agent may request voluntary termination of 
its registration by delivering to the Securities Commissioner, within 30 days of 
the date of the notice, a written request for voluntary termination of its 
registration. 
(c) No less than 30 days after sending the notice described in subsection (b) of 
this section, the Securities Commissioner may make an informal disposition of 
the matter by issuing an ex parte order revoking the registration of the dealer 
or agent after finding the following: 
(1) the notice provided for in subsection (b) of this section was sent to the 
address designated in the application for registration; 
(2) the dealer or agent failed to comply with the request for information; and 
(3) no written request for a hearing or for voluntary termination of the 
registration has been received by this agency. 
(d) Within two business days of its issuance, a copy of an ex parte order issued 
pursuant to this section shall be sent to the person named in the order, by 
certified mail or overnight delivery to the address designated in the 
application for registration. 
(e) A dealer or agent subject to an ex parte order issued pursuant to this 
section may request reconsideration by filing, with the Securities Commissioner, 
a written Motion for Reconsideration. The Motion for Reconsideration must be 
filed within 30 days after the ex parte order is issued. Upon good cause shown 
for failure to respond to the request for information, made in conjunction with 
the submission by the dealer or agent of all requested information, the 
Securities Commissioner will order the registration of a dealer or agent 
reinstated. 
(f) An order issued pursuant to this section may not be used as the sole basis 
for denying a subsequent request by an applicant for registration.
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 March 16, 1998.
TRD-9803810
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

CHAPTER 139.Exemptions by Rule or Order
7 TAC sec.139.13
The State Securities Board proposes an amendment to sec.139.13, concerning 
resales of securities under SEC Rules 144 and 145(d). The proposal would add 
references to SEC Releases that amended SEC Rule 144 and Rule 145. Micheal 
Northcutt, Director, Securities Registration Division, has determined that for 
the first five-year period the rule is in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the rule. 
Mr. Northcutt also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be to eliminate differences between the rule and the corresponding 
federal exemptions so it may be used more easily by persons seeking to make 
those types of non-issuer sales. There will be no effect on small businesses. 
There is no anticipated economic cost to persons who are required to comply with 
the rule as proposed. 
Comments on the proposal may be submitted to David Weaver, State Securities 
Board, P.O. Box 13167, Austin, Texas 78711-3167. 
The amendment is proposed under Texas Civil Statutes, Articles 581-28-1 and 581-
5.T. Section 28-1 provides the Board with the authority to adopt rules and 
regulations necessary to carry out and implement the provisions of the Texas 
Securities Act, including rules and regulations governing registration 
statements and applications; defining terms; classifying securities, persons, 
and matters within its jurisdiction; and prescribing different requirements for 
different classes. Section 5.T provides that the Board may prescribe new 
exemptions by rule. 
The proposed amendment affects Texas Civil Statutes, Article 581-7. 

sec.139.13.Resales under SEC Rule 144 and Rule 145(d).
(a) Exemption from securities registration. Offers to resell and resales of any 
security by the owner thereof, or any person acting on behalf of the owner, 
shall be exempt from the securities registration requirements of the 
<nl>Texas<ol> Securities Act, sec.7, pursuant to sec.5.T, if the offers to 
resell and resales of securities are made in compliance with either: 
(1) Rule 144 promulgated by the Securities and Exchange Commission (SEC) under 
the Securities Act of 1933, as amended (1933 Act), as made effective in SEC 
Release Number <nl>33-5224<ol> [33-5223], as amended in Release Numbers 33-5307, 
33-5452, 33-5452A, 33-5560, 33-5613, 33-5517, <nl> 33-5717,<ol> 33-5979, <nl>33-
5995,<ol> 33-6032, 33-6180, 34-16589, 33-6286, 33-6389, 33-6488, 33-6768, [and] 
33-6862<nl>, 33-7285, and 33-7390 <ol>; or 
(2) Rule 145(d) promulgated by the SEC under the 1933 Act as made effective in 
SEC Release Number 33-5316, as amended in Release Numbers 33-5932, 33-6508, 33-
6578, 33-6579, 33-6611, [and] 33-6862<nl>, and 33-7390<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 March 16, 1998.
TRD-9803801
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-8300

TITLE 10. COMMUNITY DEVELOPMENT
PART V. Texas Department of Economic Development
CHAPTER 160.Product Commercialization
10 TAC sec.sec.160.1-160.9
(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 Economic Development or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Economic Development (Department) proposes the repeal of 
Chapter 160 Product Commercialization in its entirety, concerning the 
administration and implementation of the product commercialization fund and the 
oil overcharge fund. The repeal is necessary to accurately reflect current law. 
Effective September 1, 1997, Senate Bill 932 of the 75th Legislature repealed 
Government Code, Chapter 481, Subchapter U, authorizing the Product 
Commercialization Fund. Therefore, the reason for adopting the rule no longer 
exists. 
Robin Abbott, General Counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications to state or 
local governments as a result of the repeal of the rules. No cost to either 
government or the public will result from the repeal of the rules. There will be 
no impact on small businesses. No economic cost is anticipated to persons as a 
result of the repeal of the Product Commercialization rules. 
Ms. Abbott also has determined that for each year of the first five years the 
public benefit anticipated as a result of the repeal of the rules will be a 
clearer understanding of existing Department programs and the rules applicable 
to those programs. 
Written comments on the proposed repeal of the rules should be submitted to 
DeAnn Luper, Legal Assistant, Texas Department of Economic Development, 1700 
North Congress, Austin, Texas 78711, within 30 days of the publication of the 
proposed repeal. Comments may be faxed to Ms. Luper at (512) 936-0415. Comments 
received after the 30 day period will not be considered. 
The repeals are proposed under the authority of the Texas Government Code, 
sec.481.044(a), which authorizes the Department to promulgate rules necessary 
for the administration of department programs and may adopt rules for its 
internal management and control, and the Administrative Procedure Act, Texas 
Government Code, Chapter 2001, which prescribes the standards for agency 
rulemaking.
Texas Government Code, Chapter 481, is affected by this proposal. 
sec.160.1.General Provisions.
sec.160.2.Product Commercialization Fund.
sec.160.3.Application.
sec.160.4.Review Process.
sec.160.5.Terms and Conditions of the Loan.
sec.160.6.Evaluation Criteria.
sec.160.7.Administration.
sec.160.8.Advisory Board Procedures.
sec.160.9.Personal Liability of Members or Persons Acting on Behalf of 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 March 19, 1998.
TRD-9804008
W. Lane Lanford
Chief Administrative Officer
Texas Department of Economic Development
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-0181

CHAPTER 163.Product Development Fund
10 TAC sec.sec.163.1-163.9
(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 Economic Development or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Economic Development (Department) proposes the repeal of 
Chapter 163 Product Development in its entirety, concerning the administration 
and implementation of the product development fund. The repeal is necessary to 
accurately reflect current law. Effective September 1, 1997, Senate Bill 932 of 
the 75th Legislature repealed Government Code, Chapter 481, Subchapter Q, 
authorizing the Product Development Fund. Therefore, the reason for adopting the 
rule no longer exists. 
Robin Abbott, General Counsel, has determined that for the first five-year 
period the section is in effect there will be no fiscal implications to state or 
local governments as a result of the repeal of the rules. No cost to either 
government or the public will result from the repeal of the rules. There will be 
no impact on small businesses. No economic cost is anticipated to persons as a 
result of the repeal of the Product Development Fund rules. 
Ms. Abbott also has determined that for each year of the first five years the 
public benefit anticipated as a result of the repeal of the rules will be a 
clearer understanding of existing Department programs and the rules applicable 
to those programs. 
Written comments on the proposed repeal of the rules should be submitted to 
DeAnn Luper, Legal Assistant, Texas Department of Economic Development, 1700 
North Congress, Austin, Texas 78711, within 30 days of the publication of the 
proposed repeal. Comments may be faxed to Ms. Luper at (512) 936-0415. Comments 
received after the 30 day period will not be considered. 
The repeals are proposed under the authority of the Texas Government Code, 
sec.481.044(a), which authorizes the Department to promulgate rules necessary 
for the administration of department programs and may adopt rules for its 
internal management and control, and the Administrative Procedure Act, Texas 
Government Code, Chapter 2001, which prescribes the standards for agency 
rulemaking.
Texas Government Code, Chapter 481, is affected by this proposal. 
sec.163.1.General Provisions.
sec.163.2.Product Development Fund.
sec.163.3.Application.
sec.163.4.Review Process.
sec.163.5.Terms and Conditions of the Investment. 
sec.163.6.Evaluation Criteria.
sec.163.7.Investment Administration.
sec.163.8.Advisory Board Procedures.
sec.163.9.Personal Liability of Members or Persons Acting on Behalf of 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 March 19, 1998.
TRD-9804009
W. Lane Lanford
Chief Administrative Officer
Texas Department of Economic Development
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-0181

TITLE 13. CULTURAL RESOURCES
PART I. Texas State Library and Archives Commission
CHAPTER 1.Library Development
13 TAC sec.1.21
The commission proposes amendments to sec.1.21. Under new federal legislation, 
the Library Services and Technology Act, the federal administrative agency has 
changed to the Institute of Museum and Library Services and the requirement to 
submit a plan to the federal government has changed in frequency from every year 
to every five years. With this new federal procedure the Commission will no 
longer adopt by rule an annual plan that contains specific grant guidelines each 
year. The purpose of this rule is to adopt by reference the State Plan for the 
Library Services and Technology Act in Texas FFY 1998-2002. 
Raymond Hitt, Assistant State Librarian, has determined that for each year of 
the first five years the sections are in effect there will be fiscal 
implications for state and local government. State and local governments will 
receive approximately an additional $8.5 million dollars each year for the next 
five years in federal grants depending on future appropriation levels. There 
will be no fiscal implications for small businesses or individuals as a result 
of enforcing or administering the section. 
Mr. Hitt also has determined that for each of the first five years the section 
is in effect the public benefits anticipated as a result of enforcing the 
section will be to qualify Texas for federal assistance to improve library 
services. The additional funding will improve the library services available to 
the public. Removing outdated policy from the administrative code should enable 
the public to more easily understand and evaluate current commission policy. 
Comments may be submitted to Jeanette Larson, Director of the Library 
Development Division, Texas State Library and Archives Commission, P. O. Box 
12927, Austin, Texas 78711-2927. 
The amendment is proposed under the Government Code sec.441.006, sec.441.009, 
and sec.441.0091. 
The proposed amendment affects Government Code sec.441.009 and sec.441.0091. 

sec.121.1.State Plan for the Library Services and Technology Act in Texas. 
[Library Services and Construction Act Application for Federal Funding]
The Texas State Library and Archives Commission adopts by reference <nl> the 
State Plan for the Library Services and Technology Act in Texas FFY 1998 - 
2002.<ol> [Library Services and Construction Act Annual Program, 1997, and Long 
Range Plan 1996-1999 (revised July 1996).] Copies may be obtained from the 
Library Development Division of the Texas State Library, PO Box 12927 Austin, 
Texas 78711. 
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 March 30, 1998.
TRD-9803782
Raymond Hitt
Assistant State Librarian
Texas State Board of Archives Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-5460

13 TAC sec.1.93, sec.1.101
(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 State 
Library and Archives Commission or in the Texas Register office, Room 245, James 
Earl Rudder Building, 1019 Brazos Street, Austin.) 
The Texas State Library and Archives Commission proposes to repeal sec.1.93, and 
sec.1.101. The repealed sections remove outdated policy for grants to establish 
public libraries and outdated policy and standards for grants to connect 
libraries to the Internet. 
Raymond Hitt, Assistant State Librarian, has determined that for each year of 
the first five years the sections are in effect there will not be fiscal 
implications for state and local government. There will be no fiscal 
implications for small businesses or individuals as a result of enforcing or 
administering the section. 
Mr. Hitt also has determined that for each of the first five years the section 
is in effect the public benefits anticipated as a result of enforcing the 
section will be to remove outdated policy from the administrative code which 
should enable the public to more easily understand and evaluate current 
commission policy. 
Comments may be submitted to Jeanette Larson, Director of the Library 
Development Division, Texas State Library and Archives Commission, P. O. Box 
12927, Austin, Texas 78711-2927. 
The amendment is proposed under the Government Code sec.441.006, sec.441.009, 
and sec.441.0091. 
The proposed amendment affects Government Code sec.441.0091.
sec.1.93.Establishment Grants. 
sec.1.101.Internet Assistance Grants.
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 March 30, 1998.
TRD-9804466
Raymond Hitt
Assistant State Librarian
Texas State Board of Archives Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-5460

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 3. Oil and Gas Division
16 TAC sec.3.83
The Railroad Commission of Texas proposes an amendment to sec.3.83, regarding 
tax exemption for three-year inactive wells. The proposed amendments put into 
the rule the two-year inactive well incentive provided for under Senate Bill 126 
(75th Legislature). As the rule will be administered, the operator of a well 
that has not produced oil or gas in more than one month in the two years 
preceding the date of application for severance tax exemption will receive 
notice from the commission that the well has been designated as a candidate for 
certification. An application for two-year inactive well certification shall be 
made during the period September 1, 1997, through August 31, 1999, to qualify 
for the tax exemption. 
Rita E. Percival, planner, Oil and Gas Division, has determined that, for each 
year of the first five years the proposed section is in effect, there will be 
fiscal implications for state government as a result of enforcing or 
administering the amended rule, but they are anticipated to be negligible 
because the two-year inactive well incentive will make use of the structure 
already in place for the current three-year inactive well incentive, and any 
required program adjustments will be made by the existing staff under the 
existing budget. There will be no effect on local government. Participation in 
this program will be voluntary, but the cost of compliance for individuals and 
small businesses may include the following: servicing will be required for most 
wells to be brought back onto production; any operator wishing to participate in 
the incentive will be required to file a request for certification; and, if the 
request is denied administratively, the operator may request and participate in 
a hearing. The costs of these actions cannot be predicted because they will vary 
from company to company. The exemption will benefit producers by delaying the 
untimely plugging of wells capable of production.
Marshall F. Enquist, hearings examiner, Office of General Counsel, has 
determined that for each year of the first five years the section is in effect, 
the public benefit anticipated as a result of adopting this amendment will be 
the economic benefit associated with the resumption of oil and gas production 
from inactive wells, which may create increased business and employment 
opportunities in equipment sales, well servicing, hydrocarbon gathering and 
petroleum refining.
Comments may be submitted to Marshall Enquist, Hearings Examiner, Office of 
General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 
78711-2967. Comments will be accepted for 30 days after publication in the Texas 
Register. For further information, call Marshall Enquist at (512) 463-5764.
The commission proposes the amendment under the Texas Natural Resources Code 
sec.sec.81.051, 81.052, 85.055, 85.201 - 85.202, 86.011, 86.012, 86.041, 86.042, 
86.081, 86.083 - 86.090, 111.083, 111.090 and 111.133 which authorize the 
Railroad Commission of Texas to adopt rules for the following purposes: to 
govern and regulate persons and their operations under the jurisdiction of the 
Railroad Commission; to determine the status of gas production from all gas 
reservoirs, to distribute, prorate and apportion allowable production, to 
determine the lawful market demand for gas to be produced from each reservoir; 
to adjust correlative rights and opportunities; to determine the daily allowable 
production for each gas well; to effectuate the provisions and purposes of 
Chapter 86 of the Natural Resources Code; and to conserve and prevent waste of 
gas. 
The Texas Natural Resources Code, Chapter 86, is affected by the proposed 
amendments. 

sec.3.83. Tax Exemption for <nl>Two-Year Inactive Wells and<ol> Three-Year 
Inactive Wells.
(a) Purpose. The purpose of this section is to provide a procedure by which an 
operator can obtain commission certification of a wellbore as a <nl>two-year 
inactive well or <ol> three-year inactive well in order to qualify for the tax 
exemptions provided for in the Tax Code, sec.sec.201.053, 202.052, and 202.056. 
(b) Definitions. 
<nl>(1)<ol> <nl>Two-year inactive well--A well that has not produced any 
hydrocarbons in more than one calendar month in the two years prior to the date 
of certification by the Commission under this section.<ol> 
<nl>(2)<ol> [1] Three-year inactive well--A well that has not produced any 
hydrocarbons in more than one calendar month in the three years prior to the 
date of certification by the commission under this section. [Wells eligible 
under this section include those that:
[(A) were previous producing or injection wells that have not been plugged or 
abandoned;] 
[(B) have been plugged or abandoned; or] 
[(C) are active injection wells.]
<nl>(3)<ol> Eligible well--Wells eligible under this section include those that: 
<nl>(A)<ol> were previous producing or injection wells that have not been 
plugged or abandoned; or 
<nl>(B)<ol> have been plugged and abandoned; or 
<nl>(C)<ol> are active injection wells. 
<nl>(4)<ol> [2] Well--A wellbore with single or multiple completions. 
(c) Certification. The commission or its delegate may certify a well as a 
<nl>two-year inactive well or a<ol> three-year inactive well. If the commission 
or its delegate declines to certify a well administratively, the operator 
affected by this action may request a hearing. 
(d) Revocation of Certification. Certification <nl>of a two-year inactive well 
or a three-year inactive well<ol> may be revoked by the commission for cause 
which includes, but is not limited to, receipt of information by the commission 
that a certified well produced hydrocarbons in more than one calendar month in 
the <nl>applicable two or<ol> three years prior to certification, or if 
production from other wells is credited to the <nl> two-year inactive well or 
the<ol> three-year inactive well, or if a certified well is reported to the 
commission to be capable of production but is not capable of production. The 
Comptroller of Public Accounts will be notified of any revocation. 
(e) Certified Wells. 
<nl>(1)<ol> <nl>Three-year inactive wells.<ol> The commission may not certify a 
<nl>three-year inactive<ol> well under this section after February 29, 1996. 
Prior to applying to the <nl>Comptroller of Public Accounts <ol> [Office of 
Comptroller] for the tax incentives listed in subsection (a) of this section, 
the operator of a <nl>three-year inactive <ol> certified well shall file with 
the commission a test report showing productive capability for the well. 
Production is presumed to begin on this well test date. The certification 
remains with the well in the event of a change of operator or ownership. 
<nl>(2)<ol> <nl>Two-year inactive wells. The commission may not designate a two-
year inactive well under this section after February 29, 2000. An application 
for two-year inactive well certification shall be made during the period of 
September 1, 1997, through August 31, 1999, to qualify for the tax exemption. 
Certification will be issued upon the filing of a test report showing the well's 
capability and an approval of application for certification. Production is 
presumed to begin on the well test date as reported on the appropriate report. 
The certification shall remain with the well in the event of a change of 
operator or ownership.<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 March 18, 1998.
TRD-9803924
Issued in Austin, Texas on March 18, 1998
Mary Ross McDonald 
Deputy General Counsel, Office of the General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-7008

16 TAC sec.3.102
The Railroad Commission of Texas proposes new sec.3.102, concerning a tax 
reduction for incremental production. The new section is proposed to implement 
the Tax Code, sec.202.057, which was added by the 75th Legislature, Regular 
Session, effective September 1, 1997, to determine whether, and in what amount, 
oil and casinghead gas production qualify as incremental production entitled to 
a 50% severance tax exemption. 
Rita E. Percival, planner for the Oil and Gas Division, has determined that 
there will be fiscal implications as a result of enforcing or administering the 
proposed rule. The effect on state government for the first five years the new 
proposed rule will be in effect will include administrative costs such as notice 
to operators, analysis and computer programming, and rulemaking in fiscal year 
1998, and application processing in fiscal year 1998 and following years. These 
activities are, however, being carried out under existing budget and staff 
levels. No severance tax revenue decreases have been forecast by the Comptroller 
of Public Accounts as a result of this incentive program, and increase in sales 
and ad valorem tax revenues as well as general benefits to the Texas economy 
from the multiplier effect are anticipated. There will be no fiscal implications 
for local governments. 
Participation in this incentive is voluntary. If, however, a small business or 
individual does choose to participate, an incremental production technique of at 
least $5,000 is required as one part of eligibility for the incentive. The 
operator will also need to complete a Commission application form and, if the 
application is denied, the operator may choose to incur the expense of a 
hearing. The costs of application and, if undertaken, a hearing will vary from 
company to company. 
Meredith Kawaguchi, legal examiner, Office of General Counsel, has determined 
that for each year of the first five years the section as proposed is in effect, 
the public benefit anticipated as a result of enforcing the section as proposed 
will be increased oil and casinghead gas production from wells that now produce 
only marginally. 
Comments on the proposal may be submitted to Meredith Kawaguchi, Legal Examiner, 
Office of General Counsel - Oil and Gas Section, Railroad Commission of Texas, 
P. O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 30 days 
after publication in the Texas Register. Comments should refer to the docket 
number of this rulemaking, 20-0217624. For further information, contact Ms. 
Kawaguchi at (512) 463-7152.
The commission proposes new sec.3.102 under Tax Code, sec.202.057 which provides 
the commission with the authority to determine the amount of qualified 
incremental production for the 50% severance tax exemption.
The new section also is proposed pursuant to Texas Natural Resources Code, 
sec.sec.81.051 and 81.052, which give the commission jurisdiction and rulemaking 
authority over all oil and gas operators and their wells in Texas. 
The Tax Code, sec.sec.202.051, 201.053, and 201.058, are affected by this rule.

sec.3.102. Tax Reduction for Incremental Production. 
(a) Purpose. The purpose of this section is to provide a procedure by which an 
operator can obtain a 50% severance tax reduction for five years on the 
incremental oil and casinghead gas production from a qualifying lease.
(b) Definitions. The following terms, when used in this section, shall have the 
following meanings, unless the context clearly indicates otherwise:
(1) Oil lease--A commission-designated oil lease to which the commission has 
assigned an identifying number. 
(2) Production--Barrels of oil (including barrels of gas liquids reported as 
production monthly on the appropriate form) plus casinghead gas, where six 
thousand cubic feet of gas is the equivalent of one barrel of oil, expressed in 
barrels of oil equivalent (BOE). 
(3) Baseline production--An oil lease's average BOE monthly production during 
the four highest months of production in the time period from January 1, 1996, 
through December 31, 1996. 
(4) Incremental production--Production from a qualifying lease in excess of 
baseline production. 
(5) Incremental production technique-- 
(A) any secondary or tertiary production enhancement technique;
(B) any primary production enhancement technique that an operator certifies 
required an expenditure of at least $5,000 to cause increased production.
(6) Qualifying lease--A lease is a qualifying lease provided that: 
(A) the commission has designated the lease as an oil lease and has assigned to 
it an identifying number; 
(B) production from the lease, measured by dividing the sum of lease production 
during the four-month period used to compute the baseline production by the sum 
of the number of well-days during the same four-month period, is no more than 
seven barrels of oil equivalent per day per well, excluding gas flared pursuant 
to the rules of the commission; and 
(C) after the operator performs an incremental production technique, the lease 
shows incremental production for four of five consecutive months on or after 
September 1, 1997, and before December 31, 1998. 
(7) Incremental ratio--The amount of a qualifying lease's average monthly 
incremental production during the four-month period used to meet the definition 
of a qualifying lease divided by its average monthly total production during the 
same four- month period. 
(8) Qualified incremental production--A qualifying lease's total monthly 
production multiplied by the incremental ratio. 
(9) Well-day--One well producing hydrocarbons for one day. 
(c) Qualification for the tax reduction. An operator of a qualifying lease is 
entitled to a 50% tax reduction on that lease's qualified incremental production 
for five years provided that: 
(1) The operator of a qualifying lease applies to the commission for a 
determination of an incremental ratio before February 11, 1999; 
(2) The commission certifies an incremental ratio; 
(3) The operator provides to the state comptroller the certified incremental 
ratio; and 
(4) The operator applies to the state comptroller for the tax relief provided by 
this section not later than one year after the date the commission certifies the 
incremental ratio for a qualifying lease.
(d) Request for hearing. If the request for certification of an incremental 
ratio is denied administratively, or if the operator does not agree with the 
administrative determination of the amount of the incremental ratio, the 
applicant may request a hearing. The request for a hearing must be filed within 
twenty days after the date on which notice of the administrative decision is 
mailed to the operator. The commission shall provide notice of the hearing to 
the applicant and to any other affected person named by the applicant. After 
hearing, the examiner shall recommend final action by the commission. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State on March 18, 1998.
TRD-9803923
Issued in Austin, Texas on March 18, 1998
Mary Ross McDonald 
Deputy General Counsel, Office of the General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-7008

PART II. Public Utility Commission of Texas
CHAPTER 22.Practice and Procedure
The Public Utility Commission of Texas proposes amendments to sec.22.31 relating 
to Classification in General; sec.22.33 relating to Tariff Filings; sec.22.35 
relating to Informal Disposition; sec.22.51 relating to Notice for Public 
Utility Regulatory Act sec.2.211, sec.2.212, sec.3.210 and sec.3.211 
Proceedings; sec.22.52 relating to Notice in Licensing Proceedings; and 
sec.22.56 relating to Notice of Unclaimed Funds. The proposed amendments will 
correct citations to the Public Utility Regulatory Act due to codification in 
the Texas Utilities Code and update the sections to reflect changes in state 
government and commission organization. Project Number 17709 has been assigned 
to these proposed amendments. 
Ms. Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined 
that for each year of the first five-year period the proposed sections are in 
effect there will be no fiscal implications for state or local government as a 
result of enforcing or administering the sections. 
Ms. Mueller has determined that for each year of the first five years the 
proposed sections are in effect the public benefit anticipated as a result of 
enforcing the sections will be rules that more accurately reflect current 
statute and state and commission organization. There will be no effect on small 
businesses as result of enforcing these sections. There is no anticipated 
economic cost to persons who are required to comply with the sections as 
proposed. 
Ms. Mueller has also determined that for each year of the first five years the 
proposed sections are in effect there will be no impact on employment in the 
geographic area affected by implementing the requirements of the sections.
Comments on the proposed amendments (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. The 
Appropriations Act of 1997, HB 1, Article IX, 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 
commission invites specific comments regarding whether the reason for adopting 
these rules continues to exist in considering the proposed amendments. All 
comments should refer to Project Number 17709 and reference Procedural Rules, 
Subchapter C and D. 

SUBCHAPTER C.Classification of Applications or Other Documents Initiating a 
Proceeding
16 TAC sec.sec.22.31, 22.33, 22.35
These amendments are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 and sec.14.052 (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, 
including rules of practice and procedure. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002 and 
sec.14.052. 

sec.22.31.Classification in General.
(a) Classification and Assignment of Control Number. <nl> Central Records<ol> 
[The secretary] shall determine whether an application or other document 
initiating a proceeding should be designated as a docket, tariff, or project. 
<nl>Central Records<ol> [The secretary] shall assign an appropriate control 
number to each docket, tariff, or project. 
(b) Control Numbering System. <nl>Central Records<ol> [The secretary] shall 
establish and maintain a control numbering system. (c) Control Number Log. 
<nl>Central Records<ol> [The secretary] shall maintain a record or log of all 
applications or other documents assigned a control number, which shall include 
the style, the date the application or other document was filed or the 
proceeding initiated, the nature of the proceeding, and the presiding officer 
assigned to the proceeding, if any. The log shall be accessible to the public. 

sec.22.33.Tariff Filings.
(a) Applicability and Classification. This section shall apply to undocketed 
applications by utilities to change their tariffs. Such tariff filings shall be 
classified as "electric tariff filings," "regular telephone tariff filings," or 
"special telephone tariff filings." Electric tariff filings and regular 
telephone tariff filings shall be those applications filed pursuant to sec.23.24 
of this title (relating to Form and Filing of Tariffs). Special telephone tariff 
filings shall be those applications filed by telecommunications utilities 
pursuant to <nl>sec.23.25 of this title (relating to Procedures Applicable to 
PURA Chapter 58 Electing Incumbent Local Exchange Carriers), sec.23.26 of this 
title (relating to New and Experimental Services), sec.23.27 of this title 
(relating to Rate-Setting Flexibility for Services Subject to Significant 
Competitive Challenges, and sec.23.28 of this title (relating to Promotional 
Rates for LEC Services)<ol> [sec.sec.23.25 -- 23.28 of this title (relating to 
Rates)] or PURA, <nl>sec.sec.53.251, 53.252, 53.301 - 53.308 or 55.004<ol> [or 
sec.3.212 or sec.3.213]. This section shall apply unless it is inconsistent with 
<nl>Chapters 23, 25 or 26<ol> [Chapter 23] of this title, or PURA. 
(b) - (f) (No change.) 

sec.22.35.Informal Disposition.
(a) (No change.) 
(b) Proposed Order. The <nl>presiding officer<ol> [commission secretary] shall 
prepare a proposed order which shall be served on all parties no less than 20 
days before the commission is scheduled to consider the application in open 
meeting. 
(c) - (e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State, on March 18, 1998.
TRD-9803993
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308

SUBCHAPTER D.Notice
16 TAC sec.sec.22.51, 22.52, 22.56
These amendments are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 and sec.14.052 (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, 
including rules of practice and procedure. 
Cross Index to Statutes: Public Utility Regulatory Act sec.14.002 and 
sec.14.052. 

sec.22.51. Notice for Public Utility Regulatory Act <nl> Chapter 36, Subchapters 
C - E; Chapter 51, sec.51.009; and Chapter 53, Subchapters C - E<ol> [sec.2.211, 
sec.2.212, sec.3.210, and sec.3.211], Proceedings. 
(a) Notice in a Proceeding Seeking a Rate Increase. In proceedings under PURA, 
<nl>Chapter 36, Subchapters C and E; Chapter 51, sec.51.009; or Chapter 53, 
Subchapters C and E<ol> [sec.2.212 or sec.3.211] involving the commission's 
original jurisdiction over a utility's proposed increase in rates, the applicant 
shall give notice in the following manner: 
(1) Publication of Notice. The applicant shall publish notice of its statement 
of intent to change rates in conspicuous form and place at least once a week for 
four consecutive weeks prior to the effective date of the proposed rate change, 
in a newspaper having general circulation in each county containing territory 
affected by the proposed rate change. The published notice shall contain the 
following information: 
(A) - (E) (No change.) 
(F) the following language: "Persons who wish to intervene in or comment upon 
these proceedings should notify the <nl>Public Utility Commission of Texas 
(commission)<ol> [commission] as soon as possible, as an intervention deadline 
will be imposed. A request to intervene or for further information should be 
mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 
78711-3326. Further information may also be obtained by calling the Public 
Utility Commission's Office of <nl> Customer Protection<ol> [Consumer Affairs] 
at (512) 936-7120 <nl> or (888) 782-8477<ol>. Hearing- and speech-impaired 
individuals with text telephones (TTY) may contact the commission at (512) 936- 
7136. The deadline for intervention in the proceeding is 45 days after the date 
the application was filed with the commission." 
(2) - (3) (No change.) 
(b) Notice in a PURA <nl>Chapter 36, Subchapters C and E; Chapter 51, 
sec.51.009; or Chapter 53, Subchapters C and E<ol> [sec.2.212 or sec.3.211] 
Proceeding Seeking a Rate Decrease. In proceedings initiated pursuant to PURA, 
<nl>Chapter 36, Subchapters C and E; Chapter 51, sec.51.009; or Chapter 53, 
Subchapters C and E<ol> [sec.2.212 or sec.3.211] in which a rate reduction that 
does not involve a rate increase for any customer is sought, the applicant shall 
give notice in the following manner: 
(1) (No change.) 
(2) Notice by Mail to Affected Customers. The applicant shall mail notice of the 
proposed rate decrease to all of the applicant's affected customers. This notice 
may be mailed separately or may be mailed with customer billings. At the top of 
this notice, the following language shall be printed in prominent lettering: 
"Notice of Rate Decrease Request." The notice shall contain the following 
information: 
(A) - (E) (No change.) 
(F) the following language: "Persons who wish to intervene in or comment upon 
these proceedings should notify the <nl>Public Utility Commission of Texas 
(commission)<ol> [commission] as soon as possible, as an intervention deadline 
will be imposed. A request to intervene or for further information should be 
mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 
78711-3326. Further information may also be obtained by calling the Public 
Utility Commission's Office of <nl> Customer Protection<ol> [Consumer Affairs] 
at (512) 936-7120 <nl> or (888) 782-8477<ol>. Hearing- and speech-impaired 
individuals with text telephones (TTY) may contact the commission at (512) 936- 
7136. The deadline for intervention in the proceeding is 45 days after the date 
the application was filed with the commission." 
(3) (No change.) 
(c) Notice in a PURA <nl>Chapter 36, Subchapter D; or Chapter 53, Subchapter 
D<ol> [sec.2.211 or sec.3.210] Rate Investigation. In an investigation into a 
utility's rates pursuant to PURA, <nl>Chapter 36, Subchapter D; or Chapter 53, 
Subchapter D<ol> [sec.2.211 or sec.3.210 ], the presiding officer may require 
the utility under investigation to provide reasonable notice to its customers 
and affected municipalities. Reasonable notice may include notice of the type 
set forth in subsection (a) of this section. 
(d) (No change.) 

sec.22.52.Notice in Licensing Proceedings.
(a) Notice in Electric Licensing Proceedings. In all electric licensing 
proceedings except minor boundary changes and notice of intent and certification 
proceedings for new electric generating plants, the applicant shall give notice 
in the following ways: 
(1) Applicant shall publish notice of the applicant's intent to secure a 
certificate of convenience and necessity in a newspaper having general 
circulation in the county or counties where a certificate of convenience and 
necessity is being requested, once each week for two consecutive weeks beginning 
with the week after the application is filed with the commission. This notice 
shall identify in general terms the type of facility if applicable, and the 
estimated expense associated with the project. 
(A) The notice shall also include the following statement in the first 
paragraph: "Persons with questions about this project should contact (name of 
utility contact) at (utility contact telephone number). Persons who wish to 
intervene in the proceeding or comment upon action sought, should contact the 
Public Utility Commission of Texas <nl>(commission)<ol>, at P. O. Box 13326, 
Austin, Texas 78711-3326, or call the Public Utility Commission's Office of 
<nl>Customer Protection<ol> [Consumer Affairs] at (512) 936-7120 <nl>or (888) 
782-8477<ol>. Hearing- and speech-impaired individuals with text telephones 
(TTY) may contact the commission at (512) 936-7136. The deadline for 
intervention in the proceeding is (date 70 days after the date the application 
was filed with the commission) and a letter requesting intervention should be 
received by the commission by that date."
(B) - (D) (No change.) 
(2) (No change.) 
(3) Applicant shall, upon filing an application, mail notice of its application 
to the owners of land, as stated on the current county tax roll(s), who would be 
directly affected by the requested certificate, including the preferred location 
and any alternative location of the proposed facility. For purposes of this 
paragraph, land is directly affected if an easement would be obtained over all 
or any portion of it, or if it contains a habitable structure that would be 
within 200 feet of the proposed facility.
(A) The notice must contain all information required in paragraph (1) of this 
subsection and contain the following statement in the first paragraph of the 
notice printed in bold-face type: "Your land may be directly affected in this 
proceeding. If the preferred route or one of the alternative routes requested 
under the certificate is approved by the Public Utility Commission of Texas, the 
utility will have the right to build a facility which may directly affect your 
land. This proceeding will not determine the value of your land or the value of 
an easement if one is needed by the utility to build the facility. If you have 
questions about this project, your should contact (name of utility contact) at 
(utility contact telephone number). If you wish to participate in this 
proceeding by becoming a party or to comment upon action sought, you should 
contact the Public Utility Commission of Texas <nl>(commission) <ol>, at P.O. 
Box 13326, Austin, Texas 78711-3326, or call the Public Utility Commission's 
Office of <nl>Customer Protection<ol> [Consumer Affairs] at (512) 936-7120 
<nl>or (888) 782-8477<ol>. Hearing- and speech-impaired individuals with text 
telephones (TTY) may contact the commission at (512) 936- 7136. If you wish to 
participate in this proceeding by becoming a party, the deadline for 
intervention in the proceeding is (date 70 days after the date the application 
was filed with the commission), and you must send a letter requesting 
intervention to the commission which is received by that date." 
(B) - (E) (No change.) 
(4) - (6) (No change.) 
(b) Notice by Applicants for New Electric Generating Plant. Persons planning to 
apply for a certificate of convenience and necessity for a new electric 
generating plant shall file a notice of such intent with the commission pursuant 
to PURA, <nl>sec.37.058<ol> [sec.2.255(d)]. Applicants for new electric 
generating plants shall give notice in the following ways: 
(1) Applicants for a Notice of Intent shall provide notice of the application by 
publishing in a newspaper having general circulation in the county or counties 
in which the generating plant is proposed to be located, if known, and in each 
county containing territory served by the utility, once each week for two 
consecutive weeks beginning the week after the notice of intent is filed with 
the commission. This notice shall identify the site of the facility, if known. 
This notice shall further identify in general terms the type of facility, 
including at a minimum the fuel to be used, basic technology, size of the plant 
and estimated service date, and the estimated expense associated with the 
project. The notice shall also include the following statement: "Persons with 
questions about this project should contact (name of utility contact) at 
(utility contact telephone number). Persons who wish to intervene in the 
proceeding or comment upon action sought should contact the Public Utility 
Commission's <nl>(commission)<ol> Office of <nl>Customer Protection<ol>[ 
Consumer Affairs] at (512) 936-7120 <nl> or <ol>(888) 782-8477. Hearing- and 
speech-impaired individuals with text telephones (TTY) may contact the 
commission at (512) 936-7136. The deadline for intervention in the proceeding is 
70 days after the date the application was filed with the commission." Proof of 
publication of notice shall be in the form of a publisher's affidavit which 
shall specify the newspaper(s) in which the notice was published; the county or 
counties in which the newspaper(s) is or are of general circulation; and the 
dates upon which the notice was published. Proof of publication shall be 
submitted to the commission as soon as available. 
(2) (No change.) 
(c) Notice in Telephone Licensing Proceedings. In all telephone licensing 
proceedings, except minor boundary changes, applications for a certificate of 
operating authority, or applications for a service provider certificate of 
operating authority, the applicant shall give notice in the following ways: 
(1) Applicants shall publish in a newspaper having general circulation in the 
county or counties where a certificate of convenience and necessity is being 
requested, once each week for two consecutive weeks, beginning the week after 
the application is filed, notice of the applicant's intent to secure a 
certificate of convenience and necessity. This notice shall identify in general 
terms the types of facilities, if applicable, the area for which the certificate 
is being requested, and the estimated expense associated with the project. 
Whenever possible, the notice should state the established intervention 
deadline. The notice shall also include the following statement: "Persons with 
questions about this project should contact (name of utility contact) at 
(utility contact telephone number). Persons who wish to intervene in the 
proceeding or comment upon action sought, should contact the Public Utility 
Commission <nl>(commission),<ol> at P. O. Box 13326, Austin, Texas 78711-3326, 
or call the Public Utility Commission's Office of <nl>Customer Protection <ol> 
[Consumer Affairs] at (512) 936-7120 <nl>or <ol>(888) 782-8477. Hearing- and 
speech-impaired individuals with text telephones (TTY) may contact the 
commission at (512) 936-7136. The deadline for intervention in the proceeding is 
70 days after the date the application was filed with the commission." Proof of 
publication of notice shall be in the form of a publisher's affidavit which 
shall specify the newspaper(s) in which the notice was published; the county or 
counties in which the newspaper(s) is or are of general circulation; and the 
dates upon which the notice was published. Proof of publication shall be 
submitted to the commission as soon as available. 
(2)-(3) (No change.) 

sec.22.56.Notice of Unclaimed Funds.
The applicant shall notify the <nl>Comptroller of Public Accounts <ol> [State 
Treasurer] of proceedings in which there may be a specific amount of money to be 
refunded to ratepayers who may need to be located. This rule shall not apply in 
fuel refund proceedings. 
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 March 18, 1998.
TRD-9803992
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308

SUBCHAPTER E.Pleadings
16 TAC sec.22.71
The Public Utility Commission of Texas (PUC) proposes an amendment to sec.22.71, 
relating to Filing of Pleadings and Other Materials. The proposed amendment will 
assure that the commissioners have adequate time to fully review all documents 
necessary to conduct an open meeting. Project Number 18893 has been assigned to 
this proposed amendment. 
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that 
for each year of the first five-year period the proposed section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering the section. 
Ms. Mueller has determined that for each year of the first five years the 
proposed section is in effect the public benefit anticipated as a result of 
enforcing the section will be more timely and convenient access to public 
information on proceedings scheduled before an open meeting of the commission. 
There will be no effect on small businesses as a result of enforcing this 
section. There is no anticipated economic cost to persons who are required to 
comply with the section as proposed.
Ms. Mueller 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 amendment (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. All comments 
should refer to Project Number 18893. 
This amendment is proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 and sec.14.052 (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, 
including rules of practice and procedure. 
Cross Reference to Statutes: Public Utility Regulatory Act, sec.14.002 and 
sec.14.052. 

sec.22.71.Filing of Pleadings and Other Materials. 
(a) - (g) (No change.) 
(h) Filing deadlines for documents addressed to the commissioners.
(1) Except as provided in paragraph (2) of this subsection, all documents 
<nl>from parties<ol> addressed to the commissioners relating to any proceeding 
that has been placed on the agenda of an open meeting shall be filed with the 
commission filing clerk no later than <nl>seven<ol> [six] days prior to the open 
meeting at which the proceeding will be considered provided that no party is 
prejudiced by the timing of the filing of the documents. Documents that are not 
filed before the deadline and do not meet one of the exceptions in paragraph (2) 
of this subsection, will be considered untimely filed. 
(2) - (3) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on March 18, 1998.
TRD-9803966
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 936-7308

PART VIII. Texas Racing Commission
CHAPTER 309.Operation of Racetracks
SUBCHAPTER B.Horse Racetracks
Operations
16 TAC sec.309.199
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Racing 
Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal of sec.309.199, concerning 
horsemen's bookkeeper. The Texas Racing Act was revised by sunset legislation 
effective September 1, 1997, and in that legislation, the Commission is required 
to adopt rules developing a system for monitoring the activities and employees 
of an association relating to the horsemen's account. Contemporaneously with 
this proposal, the Commission is proposing new sec.309.199 and sec.313.61 which 
relate to the purse account and the duties of the horsemen's bookkeeper. These 
rule changes implement the sunset legislation. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the repeal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that the Commission's rules are consistent with Texas Civil 
Statutes, Article 179e, and that all funds dedicated to purses and to the owners 
of race horses will be adequately protected. There will be no fiscal 
implications for small businesses. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before May 12, 1998, to Paula C. 
Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The repeal is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the Commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; sec.3.22, which authorizes 
the Commission to adopt rules relating to the horsemen's account; and sec.6.06, 
which authorizes the Commission to adopt rules on all matters relating to the 
operation of racetracks. 
The proposal implements Texas Civil Statutes, Article 179e. 

sec.309.199.Horsemen's Bookkeeper.
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 March 17, 1998.
TRD-9803855
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699

Division <nl>4.<ol> Operations
16 TAC sec.309.199
The Texas Racing Commission proposes new sec.309.199, concerning the purse 
account. The Texas Racing Act was revised by sunset legislation effective 
September 1, 1997, and in that legislation, the Commission is required to adopt 
rules developing a system for monitoring the activities and employees of an 
association relating to the horsemen's account. Contemporaneously with this 
proposal, the Commission is proposing new sec. 313.61 which relates to the 
duties of the horsemen's bookkeeper. These rule changes implement the sunset 
legislation. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the new section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the new 
section is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that the Commission's rules are consistent with Texas Civil 
Statutes, Article 179e, and that all funds dedicated to purses and to the owners 
of race horses will be adequately protected. There will be no fiscal 
implications for small businesses. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before May 12, 1998, to Paula C. 
Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The new section is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.3.22, which 
authorizes the Commission to adopt rules relating to the horsemen's account; and 
sec.6.06, which authorizes the Commission to adopt rules on all matters relating 
to the operation of racetracks. 
The proposal implements Texas Civil Statutes, Article 179e. 

sec.309.199.Purse Accounts.
(a) All money required to be set aside for purses, whether from wagering on live 
races or on simulcast wagering, are trust funds held by an association as 
custodial trustee for the benefit of horsemen. No more than three business days 
after the end of each week's wagering, the association shall deposit the amount 
set aside for purses into purse accounts maintained by breed by the horsemen's 
organization in one or more federally insured depositories. 
(b) Purse money for a completed race shall be made available to the horsemen's 
bookkeeper on or before the third day after the week's races have run. The 
horsemen's bookkeeper shall distribute purse money for a race to the accounts of 
the persons entitled to the money immediately after the executive secretary 
advises the horsemen's bookkeeper that the race has been cleared for payment. 
(c) If an association fails to run live races during any 12-month period, all 
money in the purse account shall be paid to the horsemen running in the last 
live meet conducted by the association in a pro rata amount based on the 
published condition book(s) for that meet. 
(d) If an association ceases a live race meet before completion of the live race 
dates granted by the commission, the funds in and due the purse account shall be 
distributed as follows: 
(1) first, payment of earned but unpaid purses; 
(2) second, retroactive pro rata payments to the horsemen if provided by 
contract with the horsemen's organization; and 
(3) third, subject to the approval of the horsemen's organization, transfer 
within 120 days after cessation of live racing of the balance in the purse 
account to a purse account for one or more other associations. 
(e) The commission may at any time inspect, review, or audit the records and 
performance of the association, the horsemen's organization, or the horsemen's 
bookkeeper to determine compliance with this section. 
(f) No part of any funds allocated to any race or races from the purse fund 
shall be subject to any surcharge, promotion fee, advertising fee, or expense by 
the association for any reason whatsoever. 
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 March 17, 1998.
TRD-9803856
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699

CHAPTER 313.Officials and Rules of Horse Racing
SUBCHAPTER A.Officials
Duties of Other Officials
16 TAC sec.313.61
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Racing 
Commission or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal of sec.313.61, concerning the 
duties of the horsemen's bookkeeper. The Texas Racing Act was revised by sunset 
legislation effective September 1, 1997, and in that legislation, the Commission 
is required to adopt rules developing a system for monitoring the activities and 
employees of an association relating to the horsemen's account. 
Contemporaneously with this proposal, the Commission is proposing new 
sec.309.199 and sec.313.61 which relates to the purse account and the duties of 
the horsemen's bookkeeper. These rule changes implement the sunset legislation. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the repeal is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that the Commission's rules are consistent with Texas Civil 
Statutes, Article 179e, and that all funds dedicated to purses and to the owners 
of race horses will be adequately protected. There will be no fiscal 
implications for small businesses. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before May 12, 1998, to Paula C. 
Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The repeal is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, 
which authorize the Commission to adopt rules for conducting racing with 
wagering and for administering the Texas Racing Act; sec.3.22, which authorizes 
the Commission to adopt rules relating to the horsemen's account; and sec.6.06, 
which authorizes the Commission to adopt rules on all matters relating to the 
operation of racetracks. 
The proposal implements Texas Civil Statutes, Article 179e. 

sec.313.61.Horsemen's Bookkeeper.
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 March 17, 1998.
TRD-9803857
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699

Division<nl> 3<ol>. Duties of Other Officials
16 TAC sec.313.61
The Texas Racing Commission proposes new sec.313.61, concerning the duties of 
the horsemen's bookkeeper. The Texas Racing Act was revised by sunset 
legislation effective September 1, 1997, and in that legislation, the Commission 
is required to adopt rules developing a system for monitoring the activities and 
employees of an association relating to the horsemen's account. 
Contemporaneously with this proposal, the Commission is proposing new 
sec.309.199 which relates to the purse account. These rule changes implement the 
sunset legislation. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the new section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the new 
section is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that the Commission's rules are consistent with Texas Civil 
Statutes, Article 179e, and that all funds dedicated to purses and to the owners 
of race horses will be adequately protected. There will be no fiscal 
implications for small businesses. There is no anticipated economic cost to an 
individual required to comply with the proposal. The proposal has no effect on 
the state's agricultural, horse breeding, horse training, greyhound breeding, or 
greyhound training industries. 
Comments on the proposal may be submitted on or before May 12, 1998, to Paula C. 
Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The new section is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; sec.3.22, which 
authorizes the Commission to adopt rules relating to the horsemen's account; and 
sec.6.06, which authorizes the Commission to adopt rules on all matters relating 
to the operation of racetracks. 
The proposal implements Texas Civil Statutes, Article 179e.

sec.313.61.Horsemen's Bookkeeper. 
(a) Designation of horsemen's bookkeeper. 
(1) An association shall ensure a horsemen's bookkeeper is available to maintain 
the horsemen's account. 
(2) The executive secretary may designate an entity unrelated to the association 
to serve as the horsemen's bookkeeper. To be designated as the horsemen's 
bookkeeper, an entity must submit a plan of operation acceptable to the 
executive secretary that demonstrates the entity's ability to perform the duties 
of the horsemen's bookkeeper. 
(3) A designation as horsemen's bookkeeper does not constitute a license, but 
the commission may require any individual involved with a designated entity to 
receive a license. 
(4) If the executive secretary approves an association's request to designate an 
entity as horsemen's bookkeeper, the association is relieved of responsibility 
for providing a horsemen's bookkeeper and shall cooperate fully with the 
horsemen's bookkeeper designated by the executive secretary. 
(b) Revocation of designation. 
(1) A designation as the horsemen's bookkeeper continues in effect until revoked 
by the executive secretary. 
(2) The executive secretary may revoke a designation as the horsemen's 
bookkeeper if the executive secretary determines the designated entity has: 
(A) failed to comply with the Act, commission rules, or the plan of operation, 
in a manner that indicates malfeasance as opposed to mere mistake; 
(B) failed to maintain accurate and reliable records; 
(C) misappropriated or mishandled funds in its possession or control; or 
(D) failed to correct within a reasonable time any deficiency in operations 
identified by the executive secretary in writing. 
(3) Before revoking a designation as horsemen's bookkeeper, the executive 
secretary must issue a notice of proposed revocation which specifically 
describes the grounds for revocation. No later than 30 days after receiving a 
notice of proposed revocation, the entity may file a written response to the 
allegations with the executive secretary. 
(4) The executive secretary may not revoke a designation without making adequate 
provision for a successor horsemen's bookkeeper.
(c) Operations of horsemen's bookkeeper. 
(1) Each owner engaged in racing must open and maintain an account with the 
horsemen's bookkeeper. The horsemen's bookkeeper may permit other individuals to 
open and maintain an account with the horsemen's bookkeeper, subject to the 
approval of the commission. The aggregate of all such accounts is the horsemen's 
account. 
(2) The horsemen's bookkeeper shall keep accurate records of the horsemen's 
account and the constituent accounts. The horsemen's bookkeeper shall: 
(A) promptly credit each account with all earnings, awards, and deposits; 
(B) deduct or disburse all payments as directed by the owner or authorized 
agent; 
(C) render periodic statements of each constituent account; and 
(D) perform all other duties and functions as may be required by the Act or the 
commission's rules. 
(d) Audit. The commission may at any time inspect, review or audit the records 
and performance of the horsemen's bookkeeper. 
(e) Temporary provision. Until September 1, 1998, the commission may approve 
contracts submitted by an association for the provision of horsemen's bookkeeper 
services. 
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 March 17, 1998.
TRD-9803858
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699

CHAPTER 321.Pari-mutuel Wagering
SUBCHAPTER B.Distribution of Pari-mutuel Pools
16 TAC sec.321.118
The Texas Racing Commission proposes new sec.321.118 concerning special wagers. 
The new section establishes a procedure for the Commission to approve special 
wagers designed to promote special racing events. 
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, has 
determined that for the first five-year period the new section is in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing the proposal. 
Ms. Flowerday has also determined that for each of the first five years the new 
section is in effect the public benefit anticipated as a result of enforcing the 
proposal will be that racetracks will be encouraged to offer innovative wagers 
while the integrity of pari-mutuel is strictly maintained. There will be no 
fiscal implications for small businesses. There is no anticipated economic cost 
to an individual required to comply with the proposal. The proposal has no 
effect on the state's agricultural, horse breeding, horse training, greyhound 
breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before May 12, 1998, to Paula C. 
Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, 
Austin, Texas 78711-2080. 
The new section is proposed under the Texas Civil Statutes, Article 179e, 
sec.3.02, which authorize the Commission to adopt rules for conducting racing 
with wagering and for administering the Texas Racing Act; and sec.11.01, which 
authorizes the Commission to adopt rules regulating pari-mutuel wagering. The 
proposal implements Texas Civil Statutes, Article 179e. 

sec.321.118.Special Wager.
(a) Special wager authorized. 
(1) Subject to the prior approval of the commission, an association may offer a 
special wager in any form of wager authorized by the Rules. All applicable laws 
and rules that apply to the form of wager selected for the special wager apply 
to the special wager. 
(2) A special wager must be based on the outcome of a race or races and comply 
with the definition of pari-mutuel wagering as defined by the Act, sec.1.03(18). 
The wager must be based on the performance of a specific race animal or animals 
in a race or races. 
(3) All tickets on a special wager shall be calculated as a separate pool. If a 
special wager uses a point system to determine the winning tickets, the Board of 
Stewards is responsible for certifying the accuracy of the point totals for 
purposes of payoff calculations and pool distribution. The use of any point 
system must be based on objective criteria. 
(b) Approval of special wager. 
(1) To offer a special wager, an association must file a written request with 
the executive secretary. The request must be filed no later than the 30th day 
before the day on which the commission is to consider the request. 
(2) The request must state: 
(A) the name of the wager; 
(B) the type of wagering pool to be used; 
(C) the method by which winning tickets will be determined; and 
(D) the method for addressing dead heats, no contest races, scratches, jockey 
changes, coupled entries, prevention of start, and disqualifications.
(3) After reviewing the request, the executive secretary may request additional 
information regarding the special wager. 
(4) If the commission determines the proposed special wager will be offered in a 
manner that complies with these Rules and that is consistent with maintaining 
the integrity of pari-mutuel wagering, the commission may approve the request. 
The commission may place reasonable conditions on the approval of the special 
wager. The commission has sole discretion to approve or disapprove requests for 
special wagers. 
(5) The executive secretary shall notify the association of the commission's 
decision regarding the request no later than the fifth day after the 
commission's decision. 
(c) Notice of special wager. 
(1) An association shall publish notice of a special wager that is approved in 
its program at least two weeks before the first day the special wager will be 
offered. If the wager is to be offered during the first two weeks of a live race 
meeting, the association shall publish notice of the special wager in the 
program for every race day in the race meeting before the day the special wager 
is to be offered. 
(2) The association shall post in a prominent place in the grandstand of the 
racetrack a full description of the special wager, including all information 
described in subsection (b)(2) of this section and any conditions imposed by the 
commission. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on March 17, 1998.
TRD-9803859
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 833-6699

TITLE 22. EXAMINING BOARDS
PART XI. Board of Nurse Examiners
CHAPTER 217.Licensure and Practice
22 TAC sec.217.5
The Board of Nurse Examiners proposes an amendment to sec.217.5 concerning 
Temporary License and Endorsement. 
The proposed amendment will harmonize the procedures and fees charged for 
eligibility determination for examination applicants, declaratory order 
petitioners and endorsees by equalizing the procedures and fees applied to all 
persons seeking licensure, regardless of the method of entry. 
Katherine A. Thomas, MN, RN, executive director, has determined that there will 
be no fiscal implications for state or local government as a result of enforcing 
or administering the rule. 
There will be no effect on local government nor businesses to comply with the 
rule. 
Katherine A. Thomas, MN, RN, executive director, has determined that for each 
year of the first five years the rule as proposed will be in effect the public 
is not affected. 
Written comments on the proposed amendment may be submitted to Katherine Thomas, 
Board of Nurse Examiners, P.O. Box 430; Austin, Texas 78767. 
The amendments are proposed under the Nursing Practice Act, (Texas Civil 
Statutes), Article 4514, sec.1, which provides the Board of Nurse Examiners with 
the authority and power to make and enforce all rules and regulations necessary 
for the performance of its duties and conducting of proceedings before it and 
Article 4525(a) which authorizes the Board to refuse to admit persons to the 
licensing examination. 
Article 4525(a) is affected by this section. 

sec.217.5.Temporary License and Endorsement. 
(a)-(c) (No change.) 
(d) Should it be ascertained from the application filed, or from other sources, 
that the applicant should have had an eligibility issue settled by way of a 
Petition for Declaratory Order, (see Texas Civil Statutes, Article 4525(a) and 
213.27, 213.28 and 213.29 of this Chapter relating to Good Professional 
Character, Licensure of Persons with Criminal Convictions and Eligibility and 
Disciplinary Criteria Regarding Intemperate Use and Lack of Fitness) then the 
application will be treated and processed as a Petition for Declaratory Order 
and the applicant will be required to pay the appropriate fees for determination 
of eligibility which are not refundable. Should the Board finally determine that 
the individual is not eligible <nl>for licensure as a professional nurse in 
Texas<ol> [to be admitted to the examination], then that individual is precluded 
from again petitioning, or applying to the Board for <nl>licensure until<ol> 
[admission to the examination except when] the impediment to eligibility for 
licensure has been removed, such as when an applicant receives a full and 
unconditional pardon for prior criminal convictions. 
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 March 19, 1998.
TRD-9804007
Katherine A. Thomas, MN, RN
Executive Director
Board of Nurse Examiners
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-6811

22 TAC sec.217.7
The Board of Nurse Examiners proposes amendments to sec.217.7 concerning Failure 
to Renew License. 
Senate Bill 617, passed during the 75th Legislative Session, included the 
provision that certain conditions could lead to the refusal of a license and 
that refusal based on these conditions does not entitle the individual to a 
hearing. 
The amendments implement and state the requirements for application of the 
statute. In addition, the amendments will provide the necessary requirements 
needed to reactivate a license which has been refused. 
Katherine A. Thomas, MN, RN, executive director, has determined that there will 
be no fiscal implications for state or local government as a result of enforcing 
or administering the rule. 
There will be no effect on local government nor businesses to comply with the 
rule. 
Katherine A. Thomas, MN, RN, executive director, has determined that for each 
year of the first five years the rule as proposed will be in effect the public 
is not affected. 
Written comments on the proposed amendments may be submitted to Katherine 
Thomas, Board of Nurse Examiners, P.O. Box 430; Austin, Texas 78767. 
The amendments are proposed under the Nursing Practice Act, (Texas Civil 
Statutes), Article 4514, sec.1, which provides the Board of Nurse Examiners with 
the authority and power to make and enforce all rules and regulations necessary 
for the performance of its duties and conducting of proceedings before it and 
Article 4525(a) which permits the Board to refuse to issue or renew a license. 
Article 4525(a) and (a-1) are affected by this section. 

sec.217.7. Failure to Renew License. 
(a)-(c) (No change.) 
<nl>(d)<ol> <nl>The issuance of a license renewal may be refused to an 
individual who: <ol>
<nl>(1)<ol> <nl>fails to submit an application for renewal; or <ol>
<nl>(2)<ol> <nl>submits an application which: <ol>
<nl>(A)<ol> <nl>is incomplete; <ol>
<nl>(B)<ol> <nl>does not show that the person meets the requirements for 
renewal; or <ol>
<nl>(C)<ol> <nl> is not accompanied by the correct fee(s). <ol>
<nl>(e)<ol> <nl>The refusal to renew the license for reasons in subsection 
(d)(1) and (2) of this section does not entitle the individual to a hearing. 
<ol>
<nl>(f)<ol> The individual refused a license renewal who wishes to reactivate 
his or her license will be required to:
(1) correctly complete the reactivation application form;
(2) show evidence of meeting all current requirements for licensure, including 
20 contact hours of continuing education according to requirements in sec.217.15 
of this title (relating to Continuing Education); and 
(3) submit payment of the correct non-refundable fee as follows: 
(A) if the license has not been renewed for more than 90 days, the required fee 
will equal the renewal fee plus one-half the examination fee, plus any 
applicable fines; or 
(B) if the license has not been renewed for more than 90 days, the required fee 
will equal the renewal fee plus the full examination fee, plus any applicable 
fines. 
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 March 23, 1998.
TRD-9804136
Katherine A. Thomas, MN, RN
Executive Director
Board of Nurse Examiners
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 305-6811

PART XVII. Texas State Board of Plumbing Examiners
CHAPTER 363.Examination
22 TAC sec.363.4
The Texas State Board of Plumbing Examiners proposes an amendment to sec.363.4. 
This Section specifies the requirements applicants must meet when scheduling and 
rescheduling appointments to take an examination administered by the Board. 
James Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule. 
Mr. Fowler also has determined that each year of the first five years the rule 
is in effect the public benefit will be to allow a greater number of applicants 
to take the exam due to the decreased number of no-shows at the examination 
center. The new rule will also assist applicants for examination in receiving 
credit for examination fees paid when the applicant has a legitimate reason to 
reschedule an appointment for examination. The applicants will also benefit by 
having a shorter waiting period to take an examination. There will be no effect 
on small businesses. There is no economic cost to the persons having to comply 
with the rule as proposed. 
Comments on the proposed rule change may be submitted to Gilbert Kissling, 
Administrator, Texas State Board of Plumbing Examiners, 929 East 41st Street, 
P.O. Box 4200, Austin 78765-4200. 
The amendment to sec.363.4 is proposed under and effect Texas Revised Civil 
Statutes Annotated Article 6243-101, sec.5(a), sec. 8(a) and sec.13(a). (Vernon 
Supp. 1998). 
No other statute, article, or code is affected by this proposed amendment. 

sec.363.4. Reporting for Examination.
(a) Each applicant must report promptly at the place of the examination. [An 
applicant who fails to appear shall forfeit the examination fee. An applicant 
who wishes to take the examination within 90 days shall receive full credit for 
the forfeited fee.]
<nl>(b)<ol> <nl> If an applicant is scheduled for an examination and cannot 
appear, the applicant must notify the Texas State Board of Plumbing Examiners in 
writing, postmarked no later than ten business days before the original 
examination date.<ol>
<nl>(c)<ol> <nl> An applicant is allowed one emergency reschedule without having 
to re-apply with a new application and fee. <ol>
<nl>(d)<ol> <nl> An applicant must request the emergency reschedule in writing 
with an explanation of the emergency, postmarked no later than five business 
days after the examination date. Business or work schedule conflicts are not 
considered emergencies. <ol>
<nl>(e)<ol> <nl> An applicant who fails to appear or does not give the required 
ten business days notice or does not have an excused emergency, shall forfeit 
the examination fee and must re-apply with a new application and fee. <ol>
<nl>(f)<ol> <nl> If the applicant has an excused emergency, the applicant has 
five business days after the examination date to notify the Board and reschedule 
the examination. If the applicant does not reschedule the examination within the 
five business days after the examination date, the applicant must re-apply with 
a new application and fee. <ol>
<nl>(g)<ol> <nl> The following are considered excused emergencies:<ol>
(1) Death in family; 
(2) Illness or hospitalization of applicant or applicants immediate family; 
(3) Automobile accident on day of the examination; 
(4) Other reasons approved by the Chief Examiner. 
<nl>(h)<ol> <nl> Emergencies will be subject to verification by the Chief 
Examiner. <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 March 20, 1998.
TRD-9804072
Robert L. Maxwell
Chief of Field Services/Investigations
Texas State Board of Plumbing Examiners
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 458-2145, Ext. 233

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 289.Radiation Control
SUBCHAPTER D.General
25 TAC sec.289.202
The Texas Department of Health (department) proposes an amendment to sec.289.202 
concerning standards for protection against radiation. The amendment to 
sec.289.202 allows exemption of cesium-137 contaminated emission control dust 
and other incident-related material from certain disposal requirements under 
specific handling, treatment, transport, and radiation dose conditions. The 
amendment provides an additional method of disposal for certain materials that 
have been incidentally contaminated by the inadvertent melting of a radioactive 
source. When the requirements of the proposed amendment are met, the 
contaminated material is required to be managed as a hazardous waste rather than 
a mixed waste. The amendment is consistent with the final staff technical 
position of the United States Nuclear Regulatory Commission regarding 
disposition of cesium-137 contamined emission control dust and other incident-
related material, which was published in the Wednesday, March 19, 1997, issue of 
the Federal Register, page 13176. 
Mrs. Ruth E. McBurney, C.H.P., Director, Division of Licensing, Registration and 
Standards, Bureau of Radiation Control, has determined that for each year of the 
first five-year period the section will be in effect, there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the section as proposed. 
Mrs. McBurney also has determined that for each year of the first five years the 
proposed section will be in effect, the public benefit anticipated as a result 
of enforcing the section will be to provide an additional method of disposal for 
these contaminated materials, thereby encouraging final disposition of them. 
Such disposition provides a greater degree of protection of public health and 
safety than does the current situation in which the materials are being stored 
at the site of the melting incident. There will be no effect on small 
businesses. There are no anticipated economic costs to persons who are required 
to comply with the section as proposed. There is no anticipated impact on local 
employment. 
Comments on the proposal may be presented to Ruth E. McBurney, C.H.P., Director, 
Division of Licensing, Registration and Standards, Bureau of Radiation Control, 
Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756-3189, 
Telephone (512) 834-6688 or electronic mail at Ruth.Mcburney@tdh.state.tx.us. 
Public comments will be accepted for 30 days following publication of this 
proposal in the Texas Register. In addition, a public hearing will be held at 
9:30 a.m., Tuesday, April 14, 1998, in Conference Room N218, Texas Department of 
Health, Bureau of Radiation Control, located at the Exchange Building, 8407 Wall 
Street, Austin, Texas. 
The amendment is proposed under the Health and Safety Code, Chapter 401, which 
provides the Texas Board of Health (board) with authority to adopt rules and 
guidelines relating to the control of radiation; and sec.12.001, which 
authorizes the board to adopt rules for the performance of every duty imposed by 
law on the board, the department and the commissioner of health. This amendment 
affects Health and Safety Code, Chapter 401. 

sec.289.202.Standards for Protection Against Radiation. 
(a)-(ee) (No change.) 
(ff) General requirements for waste management. 
(1) Unless otherwise exempted, a licensee shall discharge, treat, or decay 
licensed material or transfer waste for disposal only: 
(A)-(C) (No change.) 
(D) as authorized in accordance with <nl>paragraph (2) of this subsection, 
and<ol> subsections (gg) and (hh) of this section. 
<nl>(2)<ol> <nl> Upon agency approval, emission control dust and other material 
from electric arc furnaces or foundries, such as K061 listed hazardous waste or 
other listed hazardous waste, contaminated as a result of inadvertent melting of 
a cesium-137 source may be transferred for disposal to a hazardous waste 
disposal facility authorized by the Texas Natural Resource Conservation 
Commission (Commission) or its successor, another state's regulatory agency with 
jurisdiction to regulate hazardous waste as classified under Subtitle C of the 
Resource Conservation and Recovery Act (RCRA), or the EPA. The material may be 
transferred for disposal without regard to its radioactivity if the following 
conditions are met.<ol>
<nl>(A)<ol> <nl>Contaminated material described in paragraph (2) of this 
subsection, whether packaged or unpackaged (i.e., bulk), must be treated through 
stabilization to comply with all waste treatment requirements of the appropriate 
state or federal regulatory agency as listed in this paragraph. The treatment 
operations must be undertaken by either of the following: <ol>
<nl>(i)<ol> <nl>the owner/operator of the electric arc furnace or foundry 
licensed to possess, treat or transfer cesium-137 contaminated incident-related 
material; or <ol>
<nl>(ii)<ol> <nl>a service contractor licensed by the agency, NRC, or an 
agreement state.<ol> 
<nl>(B)<ol> <nl>The emission control dust and other incident-related materials 
have been stored (if applicable) and transferred in accordance with operating 
and emergency procedures approved by the agency.<ol> 
<nl>(C)<ol> <nl> The total cesium-137 activity contained in emission control 
dust and other incident-related materials to be transferred to a hazardous waste 
disposal facility has been specifically approved by NRC or the appropriate 
agreement state(s) and does not exceed the total activity associated with the 
inadvertent melting incident. <ol> 
<nl>(D)<ol> <nl>The hazardous waste disposal facility operator has been notified 
in writing of the impending transfer of the incident-related materials and has 
agreed in writing to receive and dispose of the packaged or unpackaged 
materials. Copies of the notification and agreement shall be submitted to the 
agency. <ol> 
<nl>(E)<ol> <nl> The licensee, as listed in subparagraph (A)(i) or (ii) of this 
paragraph, notifies the NRC or agreement state(s) in which the transferor and 
transferee are located, in writing, of the impending transfer, at least 30 days 
before the transfer. <ol>
<nl>(F)<ol> <nl>The packaged stabilized material has been packaged for 
transportation and disposal in non-bulk steel packaging as defined in DOT 
regulations at 49 CFR 173.213. <ol> 
<nl>(G)<ol> <nl>The emission control dust and other incident-related materials 
that have been stabilized and packaged as described in subparagraph (F) of this 
paragraph shall contain pretreatment average concentrations of cesium-137 that 
do not exceed 130 pCi/g of material, above background.<ol>
<nl>(H)<ol> <nl>The dose rate at 3.28 feet (1 m) from the surface of any package 
containing stabilized waste shall not exceed 20 &micro;rem per hour or 0.20 
&micro;Sv per hour, above background. <ol>
<nl>(I)<ol> <nl> The unpackaged stabilized material shall contain pretreatment 
average concentrations of cesium 137 that do not exceed 100 pCi/g of material, 
above background. <ol> 
<nl>(3)<ol> <nl> The licensee transferring the cesium-137 contaminated incident-
related material must consult with the agency, the Commission or its successor, 
another state's regulatory agency with jurisdiction to regulate hazardous waste 
as classified under RCRA, or the EPA and other authorized parties, including 
state and local governments, and obtain all necessary approvals, in addition to 
those of NRC and/or appropriate agreement states, for the transfers described in 
paragraph (2) of this subsection.<ol> 
<nl>(4)<ol> <nl>Nothing in this subsection shall be or is intended to be 
construed as a waiver of any RCRA permit condition or term, of any state or 
local statute or regulation, or of any federal RCRA regulation. <ol> 
<nl>(5)<ol> <nl>The total incident-related cesium-137 activity received by a 
facility over its operating life shall not exceed 1 Ci (37 GBq). The agency will 
maintain a record of the total incident-related cesium-137 activity shipped by a 
person licensed by the agency. Upon consultation with Commission, the agency 
will determine if the total incident-related cesium-137 activity received by a 
hazardous waste disposal facility over its operating life has reached 1 Ci (37 
GBq). The agency will not approve shipments of cesium-137 contaminated incident-
related material that will cause this limit to be exceeded. <ol> 
<nl>(6)<ol> [(2)] A person shall be specifically licensed to receive waste 
containing licensed material from other persons for: 
(A) treatment prior to disposal; 
(B) treatment by incineration; 
(C) decay in storage; 
(D) disposal at an authorized land disposal facility; or 
(E) storage until transferred to a storage or disposal facility authorized to 
receive the waste. 
(gg)-(ggg) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Filed with the Office of the Secretary of State, on March 20, 1998.
TRD-9804093
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 4558-7236

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission
CHAPTER 113. Control of Air Pollution From Toxic Materials
SUBCHAPTER <nl>A. <ol><nl>Definitions<ol>
30 TAC sec.113.1
The commission proposes new sec.113.1, concerning Definitions and the repeal of 
sec.113.21, concerning Beryllium. The commission also proposes to delete the 
division, Beryllium, and to change the title of Subchapter A from Hazardous Air 
Pollutants to Definitions. 
EXPLANATION OF PROPOSED RULES. This proposal is part of the regulatory reform 
effort. Regulatory reform projects identify rules and regulations which need 
clarification for the benefit of the public; are outdated; impose regulatory 
requirements in excess of their contribution to the commission's mission; or are 
duplicated, unnecessary, or inconsistent. 
The proposed repeal will reduce duplication by controlling beryllium air 
emissions by individual New Source Review (NSR) permit instead of by rule. 
Permit requests with beryllium emissions submit technical representations 
stating that they comply with the beryllium emission standard in Chapter 113. 
The NSR Permit Division reviews the technical representations and includes the 
emissions limit in the Maximum Allowable Emissions Rate Table. After the 
proposed repeal of the state beryllium standard, any permit request will be 
subject to a standard NSR permit review which includes computer dispersion 
modeling, an impacts analysis, and the Effects Screening Level (ESL). The permit 
review will be conducted at the same level as the current Chapter 113 standard. 
The proposed new subchapter for definitions will make the Chapter 113 format 
more consistent with other air regulations. The proposed new definition for 
"Section 111(d) State Plan" in Subchapter A partially implements the Federal 
Clean Air Act, sec.111(d) concerning performance standards for existing sources. 
The definition is being proposed in anticipation of future rulemaking to 
implement the Hospital/Medical/Infectious Waste Incinerator Emissions Guidelines 
and sec.111(d) State Plan revision as required by the federal rules promulgated 
on September 15, 1997 (62 Federal Register 48347). 
FISCAL NOTE. Stephen Minick, Strategic Planning and Appropriations Division, has 
determined that for the first five-year period the repeals are in effect there 
will be no fiscal implications for state or local government as a result of 
administration or enforcement of the rules. Most beryllium emissions are 
currently regulated by permit instead of by rule; therefore, repealing these 
provisions and continuing to enforce through a permit will have no significant 
impact on administration or enforcement. 
PUBLIC BENEFIT. Mr. Minick has also determined that for each year of the first 
five years the public benefit anticipated as a result of enforcing the repeals 
will be the elimination of rules that are redundant or no longer apply, as well 
as a more logically arranged Chapter 113. There is no anticipated economic cost 
to persons or small businesses required to comply with the rules as proposed, 
because the requirements themselves will not be changed.
DRAFT REGULATORY IMPACT ANALYSIS. The commission has reviewed the proposed 
rulemaking in light of the regulatory analysis requirements of Texas Government 
Code, sec.2001.0225, and has determined that the rulemaking is not subject to 
sec.2001.0225 because it does not meet the definition of a "major environmental 
rule" as defined in the act, and it does not meet any of the four applicability 
requirements listed in sec.2001.0225(a). 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this proposal under Texas Government Code, sec.2007.043. The 
following is a summary of that assessment. The specific purpose of this 
rulemaking is to reduce duplication and improve compliance by controlling 
beryllium air emissions by individual New Source Review permit instead of by 
rule, and make the Chapter 113 format more consistent with other air regulations 
through the addition of a subchapter for definitions. Promulgation and 
enforcement of this rulemaking will not affect private real property. 
COASTAL MANAGEMENT PLAN. The commission has determined that the proposed 
rulemaking relates to an action or actions subject to the Texas Coastal 
Management Program (CMP) in accordance with the Coastal Coordination Act of 
1991, as amended (Texas Natural Resource Code, sec.sec.33.201 et. seq.), and the 
commission's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency 
with the Texas Coastal Management Program. As required by 31 TAC 
sec.505.11(b)(2) and 30 TAC sec.281.45(a)(3), relating to actions and rules 
subject to the CMP, commission rules governing air pollutant emissions must be 
consistent with the applicable goals and policies of the CMP. The commission has 
reviewed this proposed action for consistency with the CMP goals and policies in 
accordance with the rules of the Coastal Coordination Council and has determined 
that the proposed action is consistent with the applicable CMP goals and 
policies. The CMP policy applicable to this rulemaking action is the policy that 
commission rules comply with regulations at Title 40, Code of Federal 
Regulations (40 CFR), to protect and enhance air quality in the coastal area (31 
TAC sec.501.14(q)). This proposal does not change existing requirements which 
already comply with regulations at 40 CFR, and is therefore consistent with this 
policy. Interested persons may submit comments on the consistency of the 
proposed rules with the CMP during the public comment period. 
PUBLIC HEARING. A public hearing on the proposal will be held in Austin on April 
28, 1998, at 10:00 a.m. in Building F, Room 2210 of Texas Natural Resource 
Conservation Commission complex, located at 12100 North IH-35, Park 35 
Technology Center, Austin. The hearing is structured for the receipt of oral or 
written comments by interested persons. Individuals may present oral statements 
when called upon in order of registration. Open discussion within the audience 
will not occur during the hearing; however, an agency staff member will be 
available to discuss the proposal 30 minutes prior to the hearing and answer 
questions before and after the hearing. 
SUBMITTAL OF COMMENTS. Written comments may be submitted to Heather Evans, 
Office of Policy and Regulatory Development, MC 205, P.O. Box 13087, Austin, 
Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule 
Log No. 97135-113-AI. Comments must be received by 5:00 p.m. May 4, 1998. For 
further information, please contact Alan Henderson of the Air Policy and 
Regulations Division, Office of Policy and Regulatory Development, (512) 239-
1510. 
Persons with disabilities who have special communication or other accommodation 
needs who are planning to attend the hearing should contact the agency at (512) 
239-4900. Requests should be made as far in advance as possible. 
STATUTORY AUTHORITY. The new section is proposed under the Texas Health and 
Safety Code, Texas Clean Air Act (TCAA), sec.382.017, which provides the 
commission with the authority to adopt rules consistent with the policy and 
purposes of the TCAA because the primary purposes of this rulemaking are to 
rescind a subchapter which contains an air emission standard which is redundant 
to the permitting process, and to add a new Subchapter A, concerning 
Definitions, to make air regulations more consistent in format with each other. 
The new section is also proposed under the TCAA, sec.382.011 which provides the 
commission with the authority to control the quality of the state's air, and 
sec.382.012 which provides for the commission to prepare and develop a general, 
comprehensive plan for the proper control of the state's air. 
The proposed new definition for "Section 111(d) State Plan" in Subchapter A, 
partially implements of the Federal Clean Air Act sec.111(d). 

sec.113.1. Definitions. 
The words and terms of this subchapter have the meanings assigned to them in the 
Texas Clean Air Act (TCAA). If no meanings are assigned to them by the TCAA, 
they shall have the meanings ascribed to them by this section. If a word or term 
of this subchapter is not defined either in the TCAA or this section, they will 
have the meaning commonly ascribed to them in the field of air pollution 
control. Section 111(d) state plan - A plan submitted by the state to the EPA 
Administrator which establishes standards of performance for any existing source 
for any air pollutant for which air quality criteria have not been issued or 
which is not included on a list published under FCAA sec.108(a), or emitted from 
a source category which is regulated under FCAA sec.112 or 112(b), but to which 
a standard of performance under FCAA sec.111 would apply if such existing source 
were a new source, and provides for the implementation and enforcement of such 
standards of performance. 
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 March 18, 1998.
TRD-9803985
Kevin McCalla 
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: July 15, 1998
For further information, please call: (512) 239-1970

SUBCHAPTER [A. Hazardous Air Pollutants]
[Beryllium]
30 TAC sec.113.21
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Natural 
Resource Conservation Commission or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.) 
STATUTORY AUTHORITY. The repeal is proposed under the Texas Health and Safety 
Code, Texas Clean Air Act (TCAA), sec.382.017, which provides the commission 
with the authority to adopt rules consistent with the policy and purpose of the 
TCAA. 
The proposed repeal does not implement any new state or federal requirement, and 
is part of the regulatory reform effort 
sec.113.21. Beryllium. 
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 March 18, 1998.
TRD-9803984
Kevin McCalla 
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: July 15, 1998
For further information, please call: (512) 239-1970

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART XIII. Board for Lease of University Lands
CHAPTER 401. Organization of the Board
31 TAC sec.sec.401.1-401.7
(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 Board for Lease 
of University Lands or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Board for Lease of University Lands proposes the repeal of sec.sec.401.1-
401.7, concerning Organization of the Board. The Board for Lease of University 
Lands is revising its rules in response to Senate Bill 1354, as adopted by the 
75th Legislature. The Board took this opportunity to undertake a complete review 
of the Board's rules and to make changes so that the rules more comprehensively 
address the administration and enforcement of Texas Education Code, Chapter 66, 
Subchapter D and provide for consistent and uniform application of the rules. 
Pamela S. Bacon, Secretary to the Board for Lease of University Lands, has 
determined that for the first five-year period the rules are in effect there 
will be no negative fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Ms. Bacon has also determined that for each year of the first five years the 
rules are in effect the public benefit will be the application of more uniform 
and comprehensive Board rules that are consistent with current law. There will 
be no effect on state or local government or small businesses. There are no 
anticipated economic costs to persons who are required to comply with the rules 
as proposed. 
Comments on the proposal may be submitted to Ms. Pamela S. Bacon, Secretary, 
Board for Lease of University Lands, 201 West 7th Street, OGC, Austin, Texas 
78701. 
The repeals are proposed under Texas Education Code, Chapter 66, Subchapter D, 
Section 66.64, which provides the Board for Lease of University Lands with the 
authority to adopt rules for the administration and enforcement of that 
subchapter and leases issued under that subchapter. 
Cross Reference to Statute: Texas Education Code, Chapter 66. The repeals do not 
affect other statutes, articles, or codes. 
sec.401.1. Membership. 
sec.401.2. The Chairman and the Vice Chairman of the Board. 
sec.401.3. The Secretary of the Board. 
sec.401.4. Employees. 
sec.401.5. Meetings. 
sec.401.6. Minutes. 
sec.401.7. Notification of Policies of the Board.
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 March 20, 1998.
TRD-9804102
Pamela S. Bacon
Secretary
Board for Lease of University Lands
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 499-4462

CHAPTER 403. Sale of Oil and Gas Leases
31 TAC sec.sec.403.1-403.8
(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 Board for Lease 
of University Lands or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Board for Lease of University Lands proposes the repeal of sec.sec.403.1-
403.8, concerning Sale of Oil and Gas Leases. The Board for Lease of University 
Lands is revising its rules in response to Senate Bill 1354, as adopted by the 
75th Legislature. The Board took this opportunity to undertake a complete review 
of the Board's rules and to make changes so that the rules more comprehensively 
address the administration and enforcement of Texas Education Code, Chapter 66, 
Subchapter D and provide for consistent and uniform application of the rules. 
Pamela S. Bacon, Secretary to the Board for Lease of University Lands, has 
determined that for the first five-year period the rules are in effect there 
will be no negative fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Ms. Bacon has also determined that for each year of the first five years the 
rules are in effect the public benefit will be the application of more uniform 
and comprehensive Board rules that are consistent with current law. There will 
be no effect on state or local government or small businesses. There are no 
anticipated economic costs to persons who are required to comply with the rules 
as proposed. 
Comments on the proposal may be submitted to Ms. Pamela S. Bacon, Secretary, 
Board for Lease of University Lands, 201 West 7th Street, OGC, Austin, Texas 
78701. 
The repeals are proposed under Texas Education Code, Chapter 66, Subchapter D, 
Section 66.64, which provides the Board for Lease of University Lands with the 
authority to adopt rules for the administration and enforcement of that 
subchapter and leases issued under that subchapter. 
Cross reference to Statute: Texas Education Code, Chapter 66. The repeals do not 
affect other statutes, articles, or codes. 
sec.403.1. Time and Place. 
sec.403.2. Tracts. 
sec.403.3. Advertising. 
sec.403.4. Information and Inspection of Lands. 
sec.403.5. General Bidding Rules. 
sec.403.6. Public Auction Lease Sale Procedures.
sec.403.7. Sealed Bid Lease Sale Procedures. 
sec.403.8. Terms of Lease. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on March 20, 1998.
TRD-9804103
Pamela S. Bacon
Secretary
Board for Lease of University Lands
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 499-4462

CHAPTER 405. Disposition of Bonuses, Rentals, Royalties, Fees
31 TAC sec.sec.405.1-405.4
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Board for Lease 
of University Lands or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Board for Lease of University Lands proposes the repeal of sec.sec.405.1-
405.4, concerning Disposition of Bonuses, Rentals, Royalties, Fees. The Board 
for Lease of University Lands is revising its rules in response to Senate Bill 
1354, as adopted by the 75th Legislature. The Board took this opportunity to 
undertake a complete review of the Board's rules and to make changes so that the 
rules more comprehensively address the administration and enforcement of Texas 
Education Code, Chapter 66, Subchapter D and provide for consistent and uniform 
application of the rules. 
Pamela S. Bacon, Secretary to the Board for Lease of University Lands, has 
determined that for the first five-year period the rules are in effect there 
will be no negative fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Ms. Bacon has also determined that for each year of the first five years the 
rules are in effect the public benefit will be the application of more uniform 
and comprehensive Board rules that are consistent with current law. There will 
be no effect on state or local government or small businesses. There are no 
anticipated economic costs to persons who are required to comply with the rules 
as proposed. 
Comments on the proposal may be submitted to Ms. Pamela S. Bacon, Secretary, 
Board for Lease of University Lands, 201 West 7th Street, OGC, Austin, Texas 
78701. 
The repeals are proposed under Texas Education Code, Chapter 66, Subchapter D, 
Section 66.64, which provides the Board for Lease of University Lands with the 
authority to adopt rules for the administration and enforcement of that 
subchapter and leases issued under that subchapter. 
Cross reference to Statute: Texas Education Code, Chapter 66. The repeals do not 
affect other statutes, articles, or codes. 
sec.405.1. Payment of Fees. 
sec.405.2. Bonus, Rental, and Royalty Payments. 
sec.405.3. Assignment, Relinquishments, and Other Fees. 
sec.405.4. Special One Percent Fee. 
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 March 20, 1998.
TRD-9804105
Pamela S. Bacon
Secretary
Board for Lease of University Lands
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 499-4462

CHAPTER 407. Operational Matters
31 TAC sec.sec.407.1-407.17
(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 Board for Lease 
of University Lands or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Board for Lease of University Lands proposes the repeal of sec.sec.407.1-
407.17, concerning Operational Matters. The Board for Lease of University Lands 
is revising its rules in response to Senate Bill 1354, as adopted by the 75th 
Legislature. The Board took this opportunity to undertake a complete review of 
the Board's rules and to make changes so that the rules more comprehensively 
address the administration and enforcement of Texas Education Code, Chapter 66, 
Subchapter D and provide for consistent and uniform application of the rules. 
Pamela S. Bacon, Secretary to the Board for Lease of University Lands, has 
determined that for the first five-year period the rules are in effect there 
will be no negative fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Ms. Bacon has also determined that for each year of the first five years the 
rules are in effect the public benefit will be the application of more uniform 
and comprehensive Board rules that are consistent with current law. There will 
be no effect on state or local government or small businesses. There are no 
anticipated economic costs to persons who are required to comply with the rules 
as proposed. 
Comments on the proposal may be submitted to Ms. Pamela S. Bacon, Secretary, 
Board for Lease of University Lands, 201 West 7th Street, OGC, Austin, Texas 
78701. 
The repeals are proposed under Texas Education Code, Chapter 66, Subchapter D, 
Section 66.64, which provides the Board for Lease of University Lands with the 
authority to adopt rules for the administration and enforcement of that 
subchapter and leases issued under that subchapter. 
Cross reference to Statute: Texas Education Code, Chapter 66. The repeals do not 
affect other statutes, articles, or codes. 
sec.407.1. Common Tankage and/or Commingling of Oil and Gas; Lease Automatic 
Custody Transfer (LACT) Systems; Vapor Recovery Systems; and Off-Lease Storage. 
sec.407.2. Applications. 
sec.407.3. Operating Requirements for Common Tankage and/or Commingling Systems. 
sec.407.4. Lease Automatic Custody Transfer Systems.
sec.407.5. Unitizations. 
sec.407.6. Vapor Recovery Systems. 
sec.407.7. Off-Lease Storage. 
sec.407.8. Produced Water. 
sec.407.9. Reporting Procedures. 
sec.407.10. Limited Period for Taking Action. 
sec.407.11. Field Inspection. 
sec.407.12. Alterations in System Design. 
sec.407.13. Exceptions. 
sec.407.14. Termination. 
sec.407.15. Penalties. 
sec.407.16. Tank Cleaning Regulations. 
sec.407.17. Reporting of Production. 
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 March 20, 1998.
TRD-9804104
Pamela S. Bacon
Secretary
Board for Lease of University Lands
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 499-4462

CHAPTER 409. Special Actions by the Board
31 TAC sec.sec.409.1-409.4
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Board for Lease 
of University Lands or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Board for Lease of University Lands proposes the repeal of sec.sec.409.1-
409.4 concerning Special Actions by the Board. The Board for Lease of University 
Lands is revising its rules in response to Senate Bill 1354, as adopted by the 
75th Legislature. The Board took this opportunity to undertake a complete review 
of the Board's rules and to make changes so that the rules more comprehensively 
address the administration and enforcement of Texas Education Code, Chapter 66, 
Subchapter D and provide for consistent and uniform application of the rules. 
Pamela S. Bacon, Secretary to the Board for Lease of University Lands, has 
determined that for the first five-year period the rules are in effect there 
will be no negative fiscal implications to state or local governments as a 
result of enforcing or administering the proposed rules. 
Ms. Bacon has also determined that for each year of the first five years the 
rules are in effect the public benefit will be the application of more uniform 
and comprehensive Board rules that are consistent with current law. There will 
be no effect on state or local government or small businesses. There are no 
anticipated economic costs to persons who are required to comply with the rules 
as proposed. 
Comments on the proposal may be submitted to Ms. Pamela S. Bacon, Secretary, 
Board for Lease of University Lands, 201 West 7th Street, OGC, Austin, Texas 
78701. 
The repeal is proposed under Texas Education Code, Chapter 66, Subchapter D, 
Section 66.64, which provides the Board for Lease of University Lands with the 
authority to adopt rules for the administration and enforcement of that 
subchapter and leases issued under that subchapter. 
Cross reference to Statute: Texas Education Code, Chapter 66. The repeal does 
not affect other statutes, articles, or codes. 
sec.409.1. Proration of Production.
sec.409.2. Suspension of Unitization Agreements.
sec.409.3. Approval of Unitization Agreements. 
sec.409.4. Forfeiture and Reinstatement of Leases.
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 March 20, 1998.
TRD-9804106
Pamela S. Bacon
Secretary
Board for Lease of University Lands
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 499-4462

PART XV. Texas Low-Level Radioactive Waste Disposal Authority
CHAPTER 450.Planning and Implementation Fees 
SUBCHAPTER A.Assessment of Fees 
31 TAC sec.sec.450.1-450.4
The Texas Low-Level Radioactive Waste Disposal Authority proposes amendments to 
sec.sec.450.1-450.4, concerning planning and implementation fees for low-level 
radioactive waste generators for the state's fiscal year 1998. The amended 
sections assess the fees, specifies which entities should pay the fees, and 
provides for the collection and deposit of fees in the state treasury. 
Tim Schaffner, Director of Accounting, has determined that for fiscal year 1998, 
there will be fiscal implications to the state as a result of enforcing or 
administering the subchapter. There will be an estimated increase in state 
government revenue for 1998 of $4,260,256, but for fiscal years 1999-2002, there 
will be no fiscal implications for state government since the subchapter applies 
only to FY 1998. There will be no fiscal implications for local governments. Mr. 
Schaffner has determined that for 1998, the public benefits anticipated as a 
result of enforcing the subchapter as proposed will be that the waste 
generators, rather than the general revenue of the state, will provide the 
funding of the low-level radioactive waste disposal program. 
The total anticipated economic costs to persons, generators, and small and large 
business generators of waste who are required to comply with this subchapter as 
proposed will be: $4,260,256 in 1998. The subchapter will not be in effect 
during fiscal years 1999-2002. 
Comments on the proposal may be submitted to Lee H. Mathews, Deputy General 
Manager and General Counsel, Texas Low-Level Radioactive Waste Disposal 
Authority, 7701 North Lamar Boulevard, Suite 300, Austin, Texas 78752. 
The amendments are proposed under the Health and Safety Code, sec.402.054 which 
provides the Texas Low-Level Radioactive Waste Disposal Authority with the 
authority to adopt rules, standards, and orders necessary to properly carry out 
the Texas Low-Level Radioactive Waste Disposal Authority Act, and sec.402.2721 
which directs the authority to adopt planning and implementation fees. 
The Texas Health and Safety Code, sec.402.054 and sec.402.2721 are affected by 
the amended sections. 

sec.450.1.Purpose.
The purpose of this subchapter is to adopt, for this state's fiscal year 
<nl>1998<ol> [1997], planning and implementation fees to fund the Authority's 
budget for that fiscal year.

sec.450.2.Applicability.
(a) This subchapter applies to: 
(1) (No change.)
(2) persons required to be licensed by the Texas Department of Health to possess 
or use radioactive material and who generated and shipped or caused to have 
shipped by others, 7.5 cubic feet or more of radioactive material to a licensed 
low-level waste disposal facility during the period January 1, <nl>1996<ol> 
[1995] through <nl> December 31, 1997 <ol> [November 30, 1996]. 
(b) (No change.)

sec.450.3.Assessed Fees.
(a) Fees shall be assessed to persons subject to sec.450.2(a)(1) of this title 
(relating to Applicability), as follows: 
Figure: 31 TAC sec.450.3(a)
(b)-(c) (No change.)

sec.450.4.Collection of Fees.
(a) (No change.)
(b) Fees assessed under this subchapter shall be paid in one payment equal to 
the <nl>1998<ol> [1997] assessment on or before June 15, 1998. [March 1, 1997.] 
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 March 18, 1998.
TRD-9803936
Lee H. Mathews
Deputy General Manager and General Counsel
Texas Low-Level Radioactive Waste Disposal Authority 
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 451-5292

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 3.Tax Administration
SUBCHAPTER II.Telecommunications Infrastructure Fund Assessment 
34 TAC sec.sec.3.1101-3.1103
(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 Comptroller of 
Public Accounts or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Comptroller of Public Accounts proposes the repeal of sec.sec.3.1101-3.1103, 
concerning the telecommunications infrastructure fund. The comptroller has 
determined the consolidation of sections dealing with similar subject matter 
will benefit taxpayers by providing a more effective means of obtaining 
information. These sections are being repealed in order to simplify the 
consolidation of related sections into a single section.
The new sec.3.1101, concerning telecommunications receipts, assessment 
determination, due date for assessment report and payment, auditing, records, 
and assessments, includes the substance of the current sec.3.1101, concerning 
due date for assessment report and payment, the substance of the current 
sec.3.1102, concerning telecommunications receipts and assessment determination, 
and the substance of the current sec.3.1103, concerning auditing, records, and 
assessments. 
Mike Reissig, chief revenue estimator, has determined that repeal of the rule 
will not result in any fiscal implications to the state or to units of local 
government. 
Mr. Reissig also has determined that there will be no cost or benefit to the 
public from the repeal of this rule. This repeal is adopted under the Tax Code, 
Title 2, and does not require a statement of fiscal implications for small 
businesses. There are no additional costs to persons who are required to comply 
with the repeal. 
Comments on the repeal may be submitted to Karey W. Barton, Manager, Tax Policy 
Division, P.O. Box 13528, Austin, Texas 78711. 
These repeals are proposed under the Tax Code, sec.111.002 and sec.111.0022, 
which provide the comptroller with the authority to prescribe, adopt, and 
enforce rules relating to the administration and enforcement of the provisions 
assigned the comptroller by law. 
The repeals implement the Texas Utility Code, sec.sec.57.041, 57.042, 57.043, 
and 57.048. 
sec.3.1101.Due Date for Assessment Report and Payment.
sec.3.1102. Telecommunications Receipts and Assessment Determination.
sec.3.1103. Auditing, Records, Assessments. 
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 March 17, 1998.
TRD-9803831
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-4062

34 TAC sec.3.1101
The Comptroller of Public Accounts proposes a new sec.3.1101, concerning 
telecommunications receipts, assessment determination, due date for assessment 
report and payment, auditing, records, and assessments. The Public Utility 
Regulatory Act of 1995, Title III, sec.3.606 (Texas Civil Statutes, Article 
1446c-0), was amended in Senate Bill 249, 75th Legislature, 1997, to impose a 
Telecommunications Infrastructure Fund (TIF) Assessment at a rate of 1.25%. The 
Public Utility Regulatory Act of 1995 was recodified in Senate Bill 1751, 75th 
Legislature, 1997, into the Utilities Code, Title 2, titled the Public Utility 
Regulatory Act, in a nonsubstantive recodification. The Utility Code, Title 2, 
sec.sec.57.041-57.051, deal with the Telecommunications Infrastructure Fund. The 
assessment is on sales taxable telecommunications revenue from both 
telecommunications utilities and commercial mobile service providers. 
Information regarding telecommunications receipts, reporting due dates, penalty 
for late filing, interest rates, and audits is moved from sec.sec.3.1101-3.1103 
of this title (relating to Due Date for Assessment Report and Payment, 
Telecommunications Receipts and Assessment Determination, and Auditing, Records, 
Assessments) which are proposed for repeal. Senate Bill 862 redefined "Telephone 
Prepaid Calling Cards" as tangible personal property and excluded them from the 
definition of telecommunications services effective September 1, 1997. 
Accordingly, subsection (a)(9) defining "Telecommunications Utility" excludes 
sales of telephone prepaid calling cards made after September 1, 1997. 
Mike Reissig, chief revenue estimator, has determined that for the first five-
year period the rule will be in effect there will be no significant revenue 
impact on the state or local government. 
Mr. Reissig also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be in providing definitions and new information regarding tax 
responsibilities. This rule is adopted under the Tax Code, Title 2, and does not 
require a statement of fiscal implications for small businesses. There is no 
significant anticipated economic cost to individuals who are required to comply 
with the proposed rule. 
Comments on the proposal may be submitted to Karey W. Barton, Manager, Tax 
Policy Division, P.O. Box 13528, Austin, Texas 78711. 
This new section is proposed under the Tax Code, sec.111.002 and sec.111.0022, 
which provide the comptroller with the authority to prescribe, adopt, and 
enforce rules relating to the administration and enforcement of the provisions 
assigned the comptroller by law. 
The new section implements the Public Utility Regulatory Act, sec.sec.57.041-
57.051.

sec.3.1101. Telecommunications Receipts, Assessment Determination, Due Date for 
Assessment Report and Payment, Auditing, Records, and Assessments. (Public 
Utility Regulatory Act, sec.sec.57.041-57.051)
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Basic local exchange telephone service - The provision by a telephone 
company of each access line and each dial tone to a fixed location for sending 
and receiving telecommunications in the telephone company's local exchange 
network. Services will be considered to be basic whether the customer has access 
to a private line or a party line or whether the customer has limited or 
unlimited access. It does not include long-distance telecommunications service. 
(2) Commercial mobile service - Any mobile service that is provided for profit 
and makes interconnected service available to the public or to such classes of 
eligible users as to be effectively available to a substantial portion of the 
public, as specified by regulation by the Federal Communications Commission 
(FCC). The full text defining Commercial Mobile Service can be found in the 
Communications Act of 1934 (47 United States Code, sec.sec.151, et seq.), 
sec.153(n) and sec.322(d). 
(3) Commercial mobile service provider - Any person (sole owner, partnership, 
corporation or other organization) who is a provider of commercial mobile 
service. The term includes persons who resell mobile service to end users. 
Specialized mobile radio service companies and providers of private carrier 
paging services were not considered commercial mobile service providers until 
August 10, 1996, pursuant to 47 Code of Federal Regulations, sec.20.9(c). 
(4) Long-distance telecommunication - A service which both originates from and 
is billed to a telephone number or billing or service address within Texas. 
(5) Mobile service - Radio communication service carried on between mobile 
stations or receivers and land stations, and by mobile stations communicating 
among themselves, and includes: 
(A) both one-way and two-way radio communication services;
(B) a mobile service which provides a regularly interacting group of base, 
mobile, portable, and associated control and relay stations (whether licensed on 
an individual, cooperative, or multiple basis) for private one-way or two-way 
land mobile radio communications by eligible users over designated areas of 
operation; and 
(C) any service for which a license is required in a Personal Communications 
Service as authorized by the FCC. 
(6) Private line - A telephone circuit dedicated for use between specific 
locations. 
(7) Sales tax - Tax due under the Tax Code, Chapter 151.
(8) Telecommunications receipts - Any receipt derived from telecommunications 
services on which the retailer is required to collect Texas sales tax. 
(9) Telecommunications services - The electronic or electrical transmission, 
conveyance, routing, or reception of sounds, signals, data, or information 
utilizing wires, cable, radio waves, microwaves, satellites, fiber optics or any 
other method now in existence or that may be devised including, but not limited 
to, long-distance telephone service. The storage of data or other information 
for subsequent retrieval or the processing, or reception and processing, of data 
or information intended to change its form or content are not included in 
telecommunications services. Effective September 1, 1997, the term does not 
include the sale or use of a telephone prepaid calling card. Providers of 
telecommunications services should refer to sec.3.344 of this title (relating to 
Telecommunications Services).
(10) Telecommunications utility -
(A) A public utility as defined by the Public Utility Regulatory Act, 
sec.51.002(8); 
(B) an interexchange telecommunications carrier, including a reseller of 
interexchange telecommunications services; 
(C) a specialized communications common carrier; 
(D) a reseller of communications; 
(E) a communications carrier who conveys, transmits, or receives communications 
wholly or partly over a telephone system, or 
(F) a provider of operator services as defined by the Public Utility Regulatory 
Act, sec.55.081, unless the provider is a subscriber to customer-owned pay 
telephone service; and 
(G) the full text defining telecommunications utility can be found in the Public 
Utility Regulatory Act, sec.51.002(11). Effective September 1, 1997, the term 
does not include individuals that sell telecommunications services through 
telephone prepaid calling cards. 
(11) Telephone prepaid calling card - A card or other item, including an access 
code, that represents the right to make one or more telephone calls for which 
payment is made in incremental amounts before the call is initiated. The term 
"telephone prepaid calling card" does not include a card sold by mechanical 
means for consideration of one dollar or less. 
(b) Assessment base. Sales for resale and sales to persons exempted from paying 
sales tax under the Tax Code, Chapter 151, are excluded from the assessment 
base. Commercial mobile service providers and telecommunications utilities, 
including persons who are resellers in either of those categories, shall pay the 
assessment on charges for any of the following: 
(1) basic local exchange service; 
(2) enhanced services; 
(3) auxiliary services (call waiting, call forwarding, etc.); 
(4) long-distance telecommunications services which are both originated from and 
billed to a telephone number or billing or service address within Texas; 
therefore, if a call originates in Texas and is billed to a Texas service 
address, the charge is taxable even if the invoice, statement, or other demand 
for payment is sent to an address in another state; 
(5) paging, mobile telephone, and other commercial mobile service, including 
roaming charges; 
(6) a taxable service paid for by the insertion of coins or tokens into a coin-
operated telephone other than a private pay telephone;
(7) equipment provided to a customer as part of a telecommunications service 
including separately stated charges for installation, maintenance, and repair. 
Equipment sold to customers and invoiced separately from telecommunications 
services is excluded. Separately stated charges for maintenance or repair of 
customer-owned equipment are excluded; 
(8) installation of telecommunications services (service connection fee); 
(9) private line services, including charges for related equipment. Taxable 
receipts include the channel termination charge imposed at each channel 
termination point within this state, the total channel mileage charges imposed 
between channel termination points or relay points within this state, and an 
apportionment of the interoffice channel mileage charge that crosses the state 
border. An apportionment on the basis of the ratio of the miles between the last 
channel termination point in Texas and the state border to the total miles 
between that channel termination point and the next channel termination point in 
the route will be accepted. Other methods may be used if first approved in 
writing by the comptroller; and 
(10) services provided through telephone prepaid calling cards sold prior to 
September 1, 1997. Revenue from services provided through rechargeable telephone 
prepaid calling cards sold prior to September 1, 1997, are subject to the 
Telecommunications Infrastructure Fund assessment until the value purchased 
prior to that date is consumed. 
(c) The Telecommunications Infrastructure Fund Assessment is 1.25% of the 
assessment base. The total amount deposited to the credit of the fund, excluding 
interest and loan repayments, may not exceed $1.5 billion. Not later than August 
31 of each year, the comptroller shall determine the total amount, excluding 
interest and loan repayments, that has been deposited to the credit of the fund 
during that fiscal year and the preceding fiscal years. If the comptroller 
determines that a total of $1.2 billion or more, excluding interest and loan 
repayments, has been deposited to the credit of the fund, the comptroller shall 
impose the assessment during the next fiscal year at a rate that the comptroller 
estimates is sufficient to produce the amount necessary to result in the deposit 
in the fund of a total of not more than $1.5 billion, excluding interest and 
loan repayments. 
(d) The annual assessment imposed by the Public Utility Regulatory Act, 
sec.57.043, is due and payable quarterly. The quarterly reporting periods end on 
March 31st, June 30th, September 30th, and December 31st. The returns are to be 
filed on or before the last day of the month following the period ending date. 
Reports and payments due to be submitted on due dates occurring on Saturdays, 
Sundays, or legal holidays may be submitted the next business day. 
(e) All payments postmarked, or received if not mailed, after the due date are 
late, and a penalty of 5.0% of the assessment is due. If the assessment is not 
paid within 30 days after the due date, an additional 5.0% of the assessment is 
due. Interest at a rate of 12% per year is due if the payment is more than 60 
days late. 
(f) Taxpayer accounts may be audited by authorized representatives of the 
Comptroller of Public Accounts at any time during regular business hours of the 
taxpayer. 
(g) The audit will be performed by examining any records, books, or other 
information which are maintained by the taxpayer. If the records are inadequate 
to accurately reflect the taxable telecommunications receipts, the auditor will 
base the audit report on the best information available. 
(h) The Comptroller of Public Accounts may assess any unpaid tax assessment 
within four years after the date the assessment was due and payable. 
(i) All taxpayers subject to the tax assessment imposed by the Public Utility 
Regulatory Act, sec.57.043, must keep adequate records in order to accurately 
determine the amount of tax due and payable for a period of at least four years, 
and make the records available to the comptroller or his designated 
representative upon request. 
(j) Application. This section applies to the Telecommunications Infrastructure 
Fund Assessment only. 
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 March 17, 1998.
TRD-9803832
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 463-4062

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART III. Texas Commission on Alcohol and Drug Abuse
CHAPTER 151.Peer Assistance
40 TAC sec.sec.151.1-151.5, 151.11, 151.21, 151.22, 151.31, 151.32, 151.51, 
151.61
The Texas Commission on Alcohol and Drug Abuse proposes new sec.sec.151.1-151.5, 
151.11, 151.21, 151.22, 151.31, 151.32, 151.51, and 151.61, concerning peer 
assistance programs. The new sections are being proposed to establish minimum 
requirements for peer assistance programs, including administrative structure, 
definitions, organization, staffing, program description, policies and 
procedures, referral process, and to establish the certification process to be 
implemented by the Texas Commission on Alcohol and Drug Abuse. The new sections 
describe the applicability of the rules, the program's purpose, the relationship 
between the program and the licensing/disciplinary authority, terms used in this 
chapter, organization, staffing requirements, program description, policies and 
procedures, referral requirements and the certification process. 
Terry Faye Bleier, Executive Director, has determined that for the first five-
year period the new sections are in effect there will be no fiscal implications 
for state or local government as a result of enforcing the new sections. Ms. 
Bleier also has determined that for each year of the first five years the new 
sections are in effect the public benefit anticipated will be more effective 
peer assistance programs for impaired professionals. There is no additional 
effect on small businesses. There is no anticipated economic cost to persons 
required to comply with the proposed new rules. 
Comments on the proposal may be submitted to Tamara Allen, Program Compliance, 
Texas Commission on Alcohol and Drug Abuse, 9001 North IH 35, Suite 105, Austin, 
Texas 78753-5233. 
The new sections are proposed under the Texas Health and Safety Code, 
sec.461.012(18) and sec.467.001 which provide the Texas Commission on Alcohol 
and Drug Abuse with the authority to promulgate written rules setting forth 
minimum standards for peer assistance programs. 
The code affected by the proposed rules are the Texas Health Safety Code, 
sec.461.012(18) and sec.467.001.

sec.151.1.Authority.
Authority is granted to the Texas Commission on Alcohol and Drug Abuse under 
Texas Health and Safety Code, sec.461.012 and sec.467.001, to establish minimum 
criteria for peer assistance programs. 

sec.151.2. Program Purpose. 
Peer assistance programs identify, assist, and monitor individuals with job-
impairing mental health, alcohol, or drug problems so that they may return to 
safe practice. Peer assistance programs offer support and assistance and have a 
rehabilitative emphasis rather than a disciplinary emphasis. 

sec.151.3. Applicability.
These sections apply to any board approved peer assistance program organized and 
operated under authority of Texas Health and Safety Code, Chapter 467. These 
sections do not apply to peer assistance programs established for licensed 
physicians or pharmacists or for any other profession that is authorized by 
other law to establish a peer assistance program. The peer assistance program 
for pharmacists is required to establish and comply with rules that are at least 
as strict as those contained in this chapter. 

sec.151.4. Relationship to Licensing/Disciplinary Authority. 
Peer assistance programs must be established and approved by the licensing or 
disciplinary authority for the profession the program is to serve. Peer 
assistance programs must submit documentation to the licensing/disciplinary 
authority showing that the program meets the minimum criteria established by the 
commission and any additional criteria established by the state legislature or 
the licensing/disciplinary authority. 

sec.151.5. Program Requirements.
(a) The peer assistance program must comply with federal regulations for 
Confidentiality of Alcohol and Drug Abuse Patient Records (Code of Federal 
Regulations, Title 42, Part 2). 
(b) If a referred individual fails to comply with program participation 
requirements, the program shall notify the person making the report and the 
appropriate licensing or disciplinary authority. 
(c) The program must comply with applicable statutory mandates.

sec.151.11. Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) Chemical dependency - Abuse of, psychological dependence on, or addiction to 
alcohol or a controlled substance. 
(2) Commission - The Texas Commission on Alcohol and Drug Abuse. 
(3) Impaired professional - An individual whose ability to perform professional 
services is impaired by chemical dependency or by mental illness.
(4) Impaired student - A student whose ability to perform the services of the 
profession for which the student is preparing for licensure would be, or would 
reasonably be expected to be, impaired by chemical dependency on drugs or 
alcohol or by mental illness. 
(5) Licensing/disciplinary authority - A state agency or board that licenses or 
has disciplinary authority over professionals.
(6) Mental health professional - An individual licensed by the state as a 
physician, professional counselor (LPC), chemical dependency counselor (LCDC), 
psychologist, marriage and family therapist (LMFT), master social worker (LMSW). 
Mental health professional also includes an advanced practice nurse with a 
specialty in psych-mental health and a certified addictions registered nurse 
(CARN). 
(7) Mental illness - Any clinical disorder as defined in the Diagnostic and 
Statistical Manual of Mental Disorders 4th edition or subsequent editions. 
(8) Peer assistance program - A program designed to help an impaired 
professional which is established or approved by a licensing or disciplinary 
authority, and meets the criteria established by the Texas Commission on Alcohol 
and Drug Abuse and any additional criteria established by the licensing or 
disciplinary authority. 
(9) Professional - An individual who may incorporate under the Texas 
Professional Corporation Act (Texas Civil Statutes, Article 1528e), or who is 
licensed, registered, certified, or otherwise authorized by the state to 
practice as a licensed professional. 
(10) Staff - All persons responsible for implementing a peer assistance program, 
whether employed, under contract, paid or volunteer.
(11) Student - An individual enrolled in an educational program or course of 
study leading to initial licensure as a professional as such program or course 
of study is defined by the appropriate licensing or disciplinary authority.

sec.151.21. Organization. 
(a) The peer assistance program's governing body is legally responsible for the 
management, services and operations of the program. No member of the governing 
body shall have the potential for direct financial gain from these activities. 
(b) The governing body shall designate/employ an administrator for the peer 
assistance program. The administrator is responsible for the day-to-day 
operations of the program. 
(c) The program shall maintain adequate financial records according to generally 
accepted accounting principles. Financial records shall include an annual budget 
and records of income and expenditures.

sec.151.22.Staffing. 
(a) The program shall maintain an adequate number of staff to effectively 
administer the program and provide the services identified in the program 
description. 
(b) Each staff position shall have a written job description that specifies: 
(1) duties and responsibilities; and 
(2) minimum qualifications, including the level of education, training, or 
related work experience required. 
(c) Only individuals who meet the minimum qualifications listed in the job 
description shall be employed as staff. 
(d) The application or resume for each staff member shall document required 
education, training, and related work experience. 
(e) The organization must provide adequate supervision for staff. 
(f) Staff shall complete eight hours of training before working with program 
participants. At least five hours of the training must be conducted by a mental 
health professional and include the following topics: 
(1) chemical dependency and mental illness, including appropriate treatment; 
(2) guidelines for identification; and 
(3) intervention and advocacy skills, as applicable.
(g) The facility shall maintain documentation to verify compliance with these 
standards. Personnel files shall be kept for at least two years after the 
individual stops working with the program.

sec.151.31. Program Description. 
There shall be a written description of the peer assistance program that 
includes:
(1) goals and objectives; 
(2) target population; 
(3) the plan for ensuring services are available throughout the state; 
(4) the services to be provided including: 
(A) identification of and intervention with impaired professionals and, if 
served, impaired students; 
(B) assistance with accessing treatment; 
(C) monitoring and support of participants; 
(D) intervention in crises, including relapses; and 
(E) support during the reentry by participants to professional practice or 
academic role. 
(5) the plan for program evaluation; and 
(6) the methods that will be utilized to promote and encourage use of the 
program.

sec.151.32. Policies and Procedures.
(a) The peer assistance program shall operate according to written policies and 
procedures designed to support the implementation of the program description. 
The policies and procedures must comply with the requirements of the commission 
and any additional requirements of the state legislature or the 
licensing/disciplinary authority that established the program. 
(b) There must be at least one professional who is recovering from chemical 
dependency and one professional who has recovered from mental illness involved 
in program and policy development. These individuals may be members of the 
governing board, staff, or members of an advisory committee for the program. 
(c) The written policies and procedures must state philosophy and methods for 
program operation including: 
(1) the licensing/disciplinary authority's role in the process and the program's 
relationship to the authority; 
(2) procedures for maintaining confidentiality; 
(3) compliance with applicable state and federal legal authority and 
regulations; 
(4) eligibility criteria for participants; 
(5) the diagnoses that will be accepted; 
(6) all formal agreements (including consents for disclosure) required of 
participants; 
(7) a description of the following processes, including (where applicable) how 
they apply to self-referrals/participants: 
(A) referral; 
(B) intervention; 
(C) drug testing; 
(D) treatment; 
(E) return to work; 
(F) crisis and relapse; 
(G) noncompliance; 
(H) dismissal; 
(I) moving out of state; and 
(J) completions. 
(8) the program's role in the accessing of treatment by the participant; 
(9) participant records and related documentation; 
(10) program's relationship to reporting (third) parties; and 
(11) the criteria to be used for selection of assessment and treatment referral 
resources. 
(d) The manual shall be current and staff shall have access to applicable 
information.

sec.151.51. Referrals to Assessment/Treatment Resources. 
(a) Neither the peer assistance program nor any individual associated with it 
shall accept compensation for referrals. Compensation includes: 
(1) pay; 
(2) anything of value; and 
(3) any other form of benefit or consideration. 
(b) If the peer assistance program has a relationship with a licensed treatment 
facility that involves ownership, operation, management and/or control, then the 
program must comply with the requirements of the Texas Health and Safety Code, 
Title 2, sec.164.007 and sec.164.008 regarding referrals for treatment. 
(c) If the peer assistance program is not subject to the Texas Health and Safety 
Code, Title 2, sec.164.007 and sec.164.008, the program must: 
(1) implement an objective process for selecting assessment and treatment 
resources to be provided as referrals to participants; and
(2) maintain documentation including: 
(A) the method for establishing selection criteria; 
(B) the relevance of the criteria to the services to be provided;
(C) the process used to apply the criteria to potential resources; and 
(D) the justification for the selection of those assessment and treatment 
resources chosen. 

sec.151.61. Certification.
Peer assistance programs that are required to obtain certification from the 
commission must comply with the following process:
(1) The program must submit all documentation required by the commission to 
verify that the program meets the minimum standards described in this chapter. 
(2) Once the commission is satisfied that the program does meet minimum 
standards, the program will receive a document confirming certification. 
(3) Programs will be recertified periodically as determined by the commission. 
(4) The program must notify the commission within 30 days of any change in 
status, including change of address or telephone number.
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 March 18, 1998.
TRD-9803934
Mark S. Smock
Deputy for Finance and Administration
Texas Commission on Alcohol and Drug Abuse
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 349-6794

40 TAC sec.sec.151.21-151.28
(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 
Commission on Alcohol and Drug Abuse or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Commission on Alcohol and Drug Abuse proposes the repeal of 
sec.sec.151.21-151.28, concerning peer assistance programs. These sections 
describe the authority, program purpose, application of the rules, definitions 
of terms used, general requirements, policies and procedures, the roles of peer 
intervenors and advocates, and the referral process used in peer assistance 
programs. The repeal is proposed to implement a certification process for 
certain of these programs and to revise programmatic requirements for peer 
assistance programs. 
Terry Bleier, Executive Director, has determined that for the first five-year 
period the repeal is in effect there will be no fiscal implications for state or 
local government as a result of the proposed repeal. 
Ms. Bleier also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated will be more effective peer 
assistance programs. There will be no effect on small businesses. There is no 
anticipated economic cost to current providers. 
Comments on the proposal may be submitted to Tamara Allen, Program Compliance, 
Texas Commission on Alcohol and Drug Abuse, 9001 North IH 35, Suite 105, Austin, 
Texas 78753. 
The new sections are proposed under the Texas Health and Safety Code, 
sec.461.012(18) and sec.467.001 which provide the Texas Commission on Alcohol 
and Drug Abuse with the authority to promulgate written rules setting forth 
minimum standards for peer assistance programs. 
The code affected by the proposed rules are the Texas Health Safety Code, 
sec.461.012(18) and sec.467.001. 
sec.151.21. Authority.
sec.151.22. Program Purpose. 
sec.151.23. Application.
sec.151.24. Definitions. 
sec.151.25. General Requirements.
sec.151.26. Policies and Procedures.
sec.151.27. Peer Intervenors and Advocates. 
sec.151.28. Referrals. 
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 March 18, 1998.
TRD-9803954
Mark S. Smock
Deputy for Finance and Administration
Texas Commission on Alcohol and Drug Abuse
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 349-6794

CHAPTER 153.Offender Education Programs
General Provisions and Procedures
40 TAC sec.153.3
The Texas Commission on Alcohol and Drug Abuse proposes new sec.153.3, 
concerning fees for offender education programs. The new section describes fees 
assessed by the commission. The new section is proposed to establish the fees 
that will be charged by the commission for offender education programs approved 
or certified by the Texas Commission on Alcohol and Drug Abuse. 
Terry Faye Bleier, Executive Director, has determined that for the first five-
year period the new section is in effect there will be no fiscal implications 
for local government as a result of enforcing the new section. Ms. Bleier has 
determined that the fiscal implication for state government will be an increase 
in the amount of fees collected for administration of these programs. Ms. Bleier 
also has determined that for each year of the first five years the new section 
is in effect the public benefit anticipated will be quality programming in 
offender education programs approved or certified by the Texas Commission on 
Alcohol and Drug Abuse. There is no additional effect on small businesses. The 
anticipated economic cost to persons required to comply with the proposed new 
rules is an additional $50 for each new applicant and an additional $100 for 
each application renewal. By raising these fees, the Texas Commission on Alcohol 
and Drug Abuse is seeking to recoup at least half of the cost to administer 
these programs. These fees are set by the commission and are not mandated by the 
legislature. 
Comments on the proposal may be submitted to Tamara Allen, Program Compliance, 
Texas Commission on Alcohol and Drug Abuse, 9001 North IH 35, Suite 105, Austin, 
Texas 78753-5233. 
The new section is proposed under the Texas Transportation Code, 
sec.sec.521.374-521.376, the Texas Alcoholic Beverage Code, sec.106.115, the 
Texas Health and Safety Code, sec.461.012(18), and the Texas Code of Criminal 
Procedure, Article 42.12, which provide the Texas Commission on Alcohol and Drug 
Abuse with the authority to promulgate written rules setting forth minimum 
standards for the approval or certification of offender education programs. 
The codes affected by the proposed rule are the Texas Transportation Code 
sec.sec.521.374-521.376, the Texas Alcoholic Beverage Code, sec.106.115, the 
Texas Health Safety Code, sec.461.012(18), and the Texas Code of Criminal 
Procedure, Article 42.12. 

sec.153.3. Fees. 
(a) Fees will be assessed by the commission in accordance with the fee schedule 
set forth in sec.153.4(b) of this title (relating to Application and 
Approval/Certification), as applicable. 
(b) The schedules of fees shall be as follows: 
(1) initial application fee - $300; 
(2) application renewal fee -$225; 
(3) participant certificates of completion - $100/batch (in batches of 100 at 
$1.00 per certificate); 
(4) program approval certificate duplication or replacement fee - $5.00. 
(c) Fees paid to the commission by applicants are not refundable.
(d) Payment must be in the form of cashier's check, money order, commercial 
check, or agency voucher. 
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 March 18, 1998.
TRD-9803953
Mark S. Smock
Deputy for Finance and Administration
Texas Commission on Alcohol and Drug Abuse
Earliest possible date of adoption: May 3, 1998
For further information, please call: (512) 349-6794