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

TITLE 1. ADMINISTRATION
PART XV. Health and Human Services Commission
CHAPTER 371. Medicaid Fraud and Abuse Program Integrity
SUBCHAPTER E. Operating Agency Responsibilities
1 TAC sec.371.1000
The Health and Human Services Commission proposes new sec.371.1000 in new 
Chapter 371, Fraud and Abuse, concerning the re-enrollment of providers in the 
Texas Medicaid program under a new contract to provide services or the amendment 
of the providers' existing contracts to provide services under the Medicaid 
program. This new rule affects providers of services in the Medicaid program who 
currently have a signed provider agreement with an agency operating part of the 
Medicaid program. Section 2.07 of Senate Bill 30, enacted by the 75th 
Legislature, requires that the Health and Human Services Commission develop a 
new provider contract for health care services that contains provisions designed 
to strengthen the commission's ability to prevent provider fraud under the Texas 
Medicaid program. Senate Bill 30 also requires that, after the development of 
the new provider contract, the commission and each agency operating part of the 
Texas Medicaid program by rule shall require each provider who enrolled in the 
program before completion of the new contract to re-enroll in the program under 
the new contract or modify the provider's existing contract to comply with the 
requirements of the new contract. This process should enable the Health and 
Human Services Commission to better prevent provider fraud in the Texas Medicaid 
program through the new contract provisions. Those agencies that are operating 
part of the Texas Medicaid program who re-enroll providers will also be able to 
gather updated information on the providers in the program, which will enhance 
the ability of the Health and Human Services Commission, in cooperation with 
agencies operating part of the Medicaid program, to prevent fraud in the 
program. 
Mr. Gary Bego, Associate Commissioner for Fiscal Policy, has determined that for 
each year during the first five-year period that the rule will be in effect, 
there will be no net fiscal implications for state or local government as a 
result of enforcing or administering sec.371.1000. The new contract provisions 
may result in savings to the State of Texas some time in the future but those 
potential savings cannot be quantified at this time. 
Mr. Bego has also determined that for each year during the first five-year 
period the rule will be in effect, the public benefit anticipated as a result of 
adopting the proposed rule will be additional provisions and information 
available to the Health and Human Services Commission to prevent provider fraud 
in the Texas Medicaid program, potentially resulting in savings to the State of 
Texas. There may be incidental costs to providers in complying with this new 
rule, such as secretarial or other administrative time in completing a new 
application for those agencies that choose to re-enroll providers and managerial 
time in reviewing the application or amended contract. Otherwise, there will be 
no costs to small businesses or persons complying with the rule as proposed. 
There will be no adverse economic effect on small businesses. 
Comments may be submitted to Aurora LeBrun, Texas Health and Human Services 
Commission, 4900 North Lamar Boulevard, 4th Floor, Austin, Texas 78751, (512) 
424-6507. Comments must be received no later than 30 days following publication 
of this proposal in the Texas Register. 
The new rule is proposed under the Texas Government Code, Chapter 531, 
sec.531.033, which authorizes the Commissioner of Health and Human Services to 
adopt rules necessary to carry out the Health and Human Services Commission's 
duties under Chapter 531. 
The new rule affects Chapter 531 of the Texas Government Code and Chapter 32 of 
the Texas Human Resources Code. 

sec.371.1000. Provider Re-enrollment or Provider Contract Modification. 
By September 1, 1999, each agency operating part of the Medicaid program must, 
at the agency's discretion, either re-enroll each provider in the Medicaid 
program under a new contract approved by the Health and Human Services 
Commission or modify each existing provider contract using language approved by 
the Health and Human Services 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 April 6, 1998.
TRD-9804750
Marina S. Henderson
Executive Deputy Commissioner
Health and Human Services Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 424-6578

SUBCHAPTER F. Pilot Program: On-Site Reviews of Prospective Providers
1 TAC sec.sec.371.1501, 371.1503, 371.1505, 371.1507, 371.1509
The Health and Human Services Commission proposes new sec.sec.371.1501, 
371.1503, 371.1505, 371.1507 and 371.1509 in Chapter 371, Medicaid Fraud and 
Abuse and Program Integrity, new Subchapter F, Pilot Program: On-Site Reviews of 
Prospective Providers, concerning a pilot program to conduct on-site reviews of 
certain types of providers who are applying to provide services in the Texas 
Medicaid program. Section 2.06 of Senate Bill 30, 75th Legislature, Regular 
Session, directs the Health and Human Services Commission to establish a pilot 
program to reduce fraud by conducting random on-site reviews of prospective 
Medicaid providers in targeted counties. The proposed rules set out how the 
pilot program will operate, in which counties it will occur, and which potential 
provider types will be reviewed. 
Mr. Gary Bego, Associate Commissioner for Fiscal Policy, has determined that for 
each year during the first five-year period that the rules will be in effect, 
there will be no net fiscal implications for state or local government as a 
result of enforcing or administering these rules. As the pilot program will 
utilize personnel currently employed by Health and Human Services Commission or 
by the Texas Department of Human Services, there will be no impact on employment 
in the counties where the program is implemented. There will be no adverse 
effect on small or large businesses. There may be incidental costs to providers 
being reviewed under the pilot program set out under these new rules, such as 
secretarial or other administrative time in gathering and providing medical 
records requested by the review team or in being interviewed by the review team. 
Otherwise, there will be no costs to small businesses or persons complying with 
the rule as proposed. There will be no adverse economic effect on small 
businesses. The on-site reviews may result in savings to the State of Texas some 
time in the future but those potential savings cannot be quantified at this 
time. 
Mr. Bego has also determined that for each year during the first five-year 
period the rules will be in effect, the public benefit anticipated as a result 
of adopting the proposed rules will be the possible prevention of Medicaid 
fraud. This will occur by the on-site review team determining whether certain 
types of providers are equipped or otherwise prepared to provide the services 
they have proposed to provide in their application to enroll in the Texas 
Medicaid program. 
Comments may be submitted to Aurora LeBrun, Texas Health and Human Services 
Commission, 4900 North Lamar Boulevard, 4th Floor, Austin, Texas 78751, (512) 
424-6507. Comments must be received no later than 30 days following publication 
of this proposal in the Texas Register. 
The new rules are proposed under the Texas Government Code, Chapter 531, 
sec.531.033, which authorizes the Commissioner of Health and Human Services to 
adopt rules necessary to carry out the Health and Human Services Commission's 
duties under Chapter 531. 
The new rules affect Chapter 531 of the Texas Government Code and Chapter 32 of 
the Texas Human Resources Code. 

sec.371.1501. Purpose of Pilot Program. 
The Texas Health and Human Services Commission (HHSC) is responsible for 
implementing a pilot program targeted at minimizing the potential for fraud by 
prospective Medicaid providers. The primary focus of this pilot program is to 
conduct in selected counties random on-site reviews of providers who have 
applied to provide services to recipients. This pilot program expires by law on 
September 1, 1999. 

sec.371.1503. On-Site Review Criteria and Effect.
(a) During its on-site review, HHSC will determine whether or not an applicant 
has the ability to provide the services proposed within its application. To make 
this determination, personnel will conduct the inspections and interviews set 
forth in sec.371.1509 of this title (relating to Scope of Review), and evaluate 
information gathered thereby within the context of applicable industry 
standards, including state or federal governmental licensing and/or 
certification standards that apply to the applicant under review. 
(b) In the event an on-site review reveals that a provider is not capable of 
delivering the services proposed within its application or other evidence of 
fraud, HHSC will refer the results of the on-site review to the appropriate 
agency operating part of the Medicaid program. HHSC also may forward to the 
Attorney General or other appropriate law enforcement agency any information 
discovered during an on-site review that HHSC believes warrants further 
evaluation in a law enforcement context. 

sec.371.1505. Selection of Counties. 
(a) Initial Selection. HHSC initially will select no more than five and no less 
than three counties in which to implement the pilot program. Each county 
initially selected for the pilot program must be an urban county that contains 
an established HHSC or Texas Department of Human Services field office with 
personnel available to conduct the pre-certification reviews. 
(b) HHSC will use the following criteria to select counties: 
(1) a heavy concentration of the following specialty providers currently 
enrolled in the program: durable medical equipment, home health care, 
therapists, and laboratories; 
(2) a high number of new applications for enrollment by providers in the 
specialties listed in paragraph (1) of this subsection;
(3) the level of Medicaid program recoupments, as documented by performance 
reports of the Medicaid Program Integrity Department, Office of Investigations 
and Enforcement; 
(4) patterns for fraud and abuse detection identified by the Medicaid Fraud and 
Abuse Detection System; and 
(5) other parameters designed to offer the greatest potential for reducing 
provider fraud. 
(c) Additional Counties. Upon determining that the pilot program is successful 
in reducing provider fraud in the counties initially selected, HHSC may expand 
the program to include additional counties based upon the criteria set out in 
subsection (b) of this section and any additional criteria developed during the 
first phase of the pilot program. 

sec.371.1507. Selection of Prospective Providers to be Reviewed. 
Within each selected county, personnel performing the reviews shall randomly 
select prospective providers for review. The random sample of providers will be 
designed to include a statistically valid representation of the prospective 
provider population, and must include, at a minimum, representative providers 
from the specialties listed in sec.371.1505(b)(1) of this title (relating to 
Selection of Counties). 

sec.371.1509. Scope of Review. 
(a) Inspections and interviews. During on-site reviews conducted under this 
pilot program, personnel may: 
(1) inspect a provider's site for physical compliance with state and federal law 
governing Medicaid providers; 
(2) review and verify licenses, certifications, and accreditation required by or 
relevant to the Medicaid program; 
(3) interview randomly selected provider staff-members, patients, and patients' 
family members; 
(4) review randomly selected patients' medical records; and 
(5) review business records of prospective provider. 
(b) Personnel shall conduct all interviews during on-site reviews in accordance 
with a standard format consistent with interview procedures established for 
survey and investigation of existing Medicaid providers. 
(c) Home Health Agencies and Durable Medical Equipment Providers. For all 
prospective providers of home health care and durable medical equipment, 
personnel must research and confirm compliance by the provider with applicable 
requirements of the Balanced Budget Act of 1997 and sec.32.024 of the Texas 
Human Resources Code, regarding surety bonds and the financial condition of the 
provider's business. 
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 April 6, 1998.
TRD-9804749
Marina S. Henderson
Executive Deputy Commissioner
Health and Human Services Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 424-6578

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 1.General Procedures
SUBCHAPTER K.Employee Training Rules
4 TAC sec.sec.1.700-1.702
The Texas Department of Agriculture (the department) proposes new sec.sec.1.700-
1.702 concerning training for employees of the department. The department 
proposes the new sections to codify policies and procedures currently 
implemented and administered by the department which provide for an adequately 
trained, capable and qualified workforce. The proposed new sections will assist 
the department in providing responsive regulatory and customer services in the 
performance of agricultural regulatory duties pursuant to the State Employees 
Training Act, Texas Government Code, Chapter 656, Subchapter C., 
sec.sec.656.041-656.049. The sections provide requirements for use of state 
funds for training and education in accordance with the State Employees Training 
Act, establish components of the department's employee training program, and 
provide that approval to participate in a training program has no effect on an 
employee's at-will employment status. 
Jo Anne Noble, Director of Staff Development, has determined that for the first 
five-year period the proposal is in effect there will be no fiscal implications 
for state or local government as a result of enforcing or administering the 
proposal. 
Ms. Noble also has determined that for each year of the first five years the 
proposal is in effect the expected public benefit derived from enforcement and 
administration of the proposal will be a department workforce which is 
effectively prepared for technological and legal developments; which can provide 
necessary services more effectively; and which will contribute to the 
proficiency of the department in delivering the level of regulatory services 
expected of it under Texas law. There will be no effect on small or large 
businesses. There is no anticipated economic cost to persons who are required to 
comply with the proposal. 
Comments on the proposal may be submitted to Jo Anne Noble, Director of Staff 
Development, 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 new sections are proposed under the Texas Government Code, sec. 656.048, 
which provides that each state agency shall adopt rules relating to the 
eligibility of the agency's administrators and employees for training and 
education supported by the agency; and the obligations assumed by the 
administrators and employees on receiving the training and education.
The Code affected by this proposal is the Texas Government Code, 
sec.sec.656.041-646.049.

sec.1.700. General Provisions. 
(a) Use of state funds. The department may use state funds to provide training 
and education for its employees in accordance with provisions of the Texas 
Government Code, sec.sec. 656.044 through 656.049. 
(1) Training to be duty related. The training or education shall be related to 
the duties or prospective duties of the employee. 
(2) Attendance may be required. A department employee may be required to attend, 
as part of the employee's duties, a training or education program related to the 
employee's duties or prospective duties. 
(3) Training program outline. The training and educational program of the 
department may include the following four elements: 
(A) preparing for technological and legal developments; 
(B) increasing work capabilities; 
(C) increasing the number of qualified employees in areas designated by 
institutions of higher education as having an acute faculty shortage; and 
(D) increasing the competence of department employees. 
(4) Purposes for which public funds may be used. The department may spend public 
funds as appropriate to pay the salary, tuition and other fees, travel and 
living expenses, training stipend, expense of training materials, and other 
necessary expenses of an instructor, student, or other participant in a training 
or education program. 
(5) Interagency coordination. The department may contract with another state, 
local or federal department, agency, or institution, including a state-supported 
college or university, to train or educate its employees or may join in 
presenting a training or educational program. 
(b) Approval subject to available funds. Approval to participate in a training 
program is not automatic and may be subject to the availability of funds within 
the department's budget. 

sec.1.701.Employee Training Program. 
(a) Components of program. The employee training program for the department 
consists of training, seminars and conferences, as set out and described in 
subsections (b) and 
(c) of this section. 
(b) Department-sponsored training. The department may pay for in-house training 
for department employees, as provided. 
(c) Seminars and conferences. The department may also pay for training seminars 
or conferences unavailable in-house and related to a current or prospective duty 
assignment. Requests to attend an external training program, seminar or 
conference must be approved by the employee's assistant commissioner. Training, 
seminars or conferences which are required to maintain a professional license 
will be considered a priority in allocating a division's training budget if the 
license is a requirement of the employee's job. Attendance at an approved 
training program, seminar or conference will be considered part of the 
employee's normal work duties. An employee will not be required to use accrued 
leave to attend an approved training program, seminar or conference.

sec.1.702. No Effect on At-Will Employment Status. 
Approval to participate in a training program, including department-sponsored 
training, seminars or conferences shall not in any way affect an employee's at-
will status. The approval of a training program is not a guarantee or indication 
that approval will be granted for subsequent training programs. Approval to 
participate in a training program, including department-sponsored training, 
seminars or conferences shall not in any way constitute a guarantee or 
indication of continued employment, nor shall it constitute a guarantee or 
indication of future employment in a current or prospective position. 
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 April 3, 1998.
TRD-9804660
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Argiculture
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-7541

TITLE 10. COMMUNITY DEVELOPMENT
PART V. Texas Department of Economic Development
CHAPTER 186. Smart Jobs Fund Rules
SUBCHAPTER A. General Provisions
10 TAC sec.186.102, sec.186.104
The Texas Department of Economic Development (department) proposes amendments to 
the Smart Jobs Fund Rules, Subchapter A, General Provisions, sec.186.102 and 
sec.186.104. Proposed Smart Jobs Fund rule amendments published in the January 
23, 1998, issue of the Texas Register (23 TexReg 483) have been withdrawn.
The proposed amendments focus and clarify the purpose of the program, reword 
definitions for clarity and for consistency with statute, and add new 
definitions necessary to the administration of the program. Some non-substantive 
grammatical corrections have been made. 
Proposed amendments to sec.186.102 clarify the purpose, intent, and goals of the 
program. 
Proposed amendments to sec.186.104 amend the definitions of consortium, full-
time employment, on-the-job training, and smart job to clarify program 
administration. Amendments to sec.186.104 also add definitions of adversely 
affected defense-dependent community, extraordinary opportunity project, micro-
business, and small business to provide for clarity of program administration 
and to reflect changes made to department legislation by Senate Bill 932 and 
Senate Bill 227 of the 75th Legislature. 
The proposed rule amendments attempt to incorporate as many comments received on 
the rule amendments published on January 23, 1998, as possible. However, 
interested parties should note that in many cases the department received 
conflicting comments, and only one position could be incorporated into the 
rules. Parties who do not think their comments have been adequately responded to 
in the revised rule amendments are encouraged to again submit comments to the 
department. 
Comments received generally favored the proposed definitions of consortium and 
micro-business in the first published rule amendments. Three comments asked for 
a more detailed definition of a high-impact economic development project. The 
definition has been rewritten as "extraordinary opportunity project" and the use 
and purpose of those projects is further explained at proposed rule 
sec.186.305(d). The definition of a smart job has been rewritten in response to 
comments and focuses the definition on family wage jobs. 
Twelve comments suggested that the definition of a small business should be 
changed to mean a business that has fewer than 500 employees or that a 
definition of medium-sized business (100-500 employees) should be added. While 
the department generally agrees that a revised definition of small business 
could benefit the program, the department must give effect to legislative intent 
in its definition of small business in the proposed amendments. 
Senate Bill 932 of the 75th Legislature, which abolished the Texas Department of 
Commerce and established the Texas Department of Economic Development, 
substantially rewrote and repealed portions of the department's enabling 
legislation, found at Government Code, Chapter 481. Section 481.101, which 
contained the definition of a small business, was among the sections repealed. 
Section 481.151 of the current law, which contains the definitions for the Smart 
Jobs program, states that the term "small business" has the meaning assigned by 
sec.481.101.
The department thinks that the repeal of the definition of a small business was 
an oversight, and that the legislature did not intend to eliminate it. This is 
evidenced by the fact that the cross-reference was not deleted from the statute, 
which would indicate an intentional repeal. Further, principals of statutory 
construction state that the repeal of a provision in one statute does not affect 
its operation in another statute where it has been adopted by reference. 
Therefore, the best reading of the law is that the definition of a small 
business remains one that has 100 or fewer employees, despite the repeal. 
Changing the definition would require an act of the Legislature. The department 
has attempted to address the needs of medium-sized businesses by giving points 
for businesses with 100-499 employees in the large business category on the 
proposed scoring mechanism, found in the new proposed rule amendments at 
sec.186.306(b). 
Comments were received from Barlow, Todd, Jordan, & Oliver, L.L.P., Barrios 
Technology, The Boeing Company, Brownsville Economic Development Council, Clear 
Lake Area Chamber of Commerce, Clear Lake Area Economic Development Foundation, 
Doorway to Training, Glick & Glick, Greater Houston Partnership, Honeywell, 
Inc., Johnson Engineering Corporation, Marketing 2 Go, San Angelo Chamber of 
Commerce, San Jacinto College Central, the Office of Senator David Sibley, and 
Small Business United of Texas. 
Gary Rosenquest, Director of Business Services, has determined that for each 
year of the first five years that the proposed amendments are in effect no 
additional cost to the state and to local governments, no reductions in costs to 
the state and to local governments, and no loss or increase in revenue to the 
state or to local governments is expected as a result of enforcing or 
administering the amendments. Mr. Rosenquest has determined that enforcing or 
administering the amendments does not have foreseeable implications relating to 
cost or revenues of the state or local governments. 
Mr. Rosenquest has further determined that there is no probable cost to persons 
required to comply with the amendments, other than any resources used to 
complete a Smart Jobs Fund application by businesses that voluntarily 
participate in the program. Mr. Rosenquest has determined that the public 
benefits expected as a result of adopting the proposed amendments include 
increased economic growth, more equitable distribution of program grant funds, 
and more efficient program administration. 
Comments on the proposed amendments may be hand-delivered to Robin Abbott, 
General Counsel, at the department, 1700 North Congress Ave., Suite 130, Austin, 
Texas 78701; mailed to P.O. Box 12728, Austin, Texas 78711-2728; or faxed to 
(512) 936-0415. Comments received before publication of the proposed amendments 
in the Texas Register or later than 30 days after the date of publication will 
not be considered. 
The amendments are proposed pursuant to Government Code sec.481.0044(a), 
authorizing the governing board of the department to adopt rules necessary for 
the administration of department programs, and sec.481.153, directing the 
governing board to adopt rules as necessary to implement the Smart Jobs Fund 
program, as well as Government Code, Chapter 2001, Subchapter B, Rulemaking, 
setting forth the state agency rulemaking process. 
Government Code, Chapter 481, Subchapter J, is affected by these amendments. 

sec.186.102. Purpose. 
The Smart Jobs Fund is established as a business incentive program <nl> to 
support economic development in the State of Texas<ol> [and to enhance 
employment opportunities for Texans by fostering the development of jobs that 
include wages, benefits, opportunity for advancement, and job security in 
accordance with the program]. <nl>The program seeks to enhance the 
competitiveness of the Texas workforce, assist existing and new industries with 
their employee training needs, and strengthen the state economy through the 
creation and retention of family wage jobs<ol> [It is also established to meet 
the needs of existing and new businesses in this state by assisting them in 
improving the overall education and skill levels of their work forces

sec.186.104. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise. 
<nl>(1)<ol> Adversely affected defense-dependent community--Shall have the 
definition set forth at Government Code, sec.486.003(b). 
<nl>(2)<ol> Authorized employer representative--An individual authorized to bind 
the company under the terms of the contract.
<nl>(3)<ol> Benefits--Perquisites paid by an employer to an employee, either 
voluntarily or by collective bargaining agreement, in addition to the employee's 
wages. 
<nl>(4)<ol> Classroom training--Training provided by an instructor to a group of 
trainees on a predetermined structured curriculum. 
<nl>(5)<ol> Community-based organization--A public or private nonprofit entity 
authorized to do business within the State of Texas and exempt from taxation 
under the United States Internal Revenue Code, sec.501(c), and which has as a 
purpose of the organization providing education, employment, or training 
services. 
<nl>(6)<ol> Competencies--The level of skills that the employer determines to be 
necessary for the participant to successfully perform a specific job. This 
includes the employer's measures of the participant's expected learning gains or 
skill mastery for which they are being trained. Such competencies may be 
specified by the employer, by industry associations, or by inclusion in courses 
approved by the Texas Higher Education Coordinating Board, and be consistent 
with ISO 9000 certification standards[,] or other credible sources acceptable to 
the employer as evidenced by their inclusion in the application. The employer's 
measures shall be consistent with specifications in its business plan as 
essential to the business' competitiveness. 
<nl>(7)<ol> Completed Application--A document submitted by an applicant on the 
forms provided by the Department that provides the information specified in 
sec.186.302 of this title (relating to Application Requirements) in sufficient 
detail as determined by the department to write a contract for a grant awarded 
under this chapter. 
<nl>(8)<ol> Consortium--A group that undertakes a training project <nl>for large 
businesses, small businesses, or a combination of small and large 
businesses,<ol> in which all or most of training will be the same for each 
employer. A lead entity will normally assume responsibility for preparing and 
submitting the grant application and for being the grant administrator. The lead 
entity may be one of the employers, a provider, or other entity acceptable to 
the department. 
<nl>(9)<ol> Contract--The written legally binding obligation between the 
department, each employer, providers, guarantors, and administrative entities 
which may serve as a fiscal agent. 
<nl>(10)<ol> Department--The Texas Department of Economic Development. 
<nl>(11)<ol> Employer organization--An organization funded by a group of 
employers that provides employment based training. 
<nl>(12)<ol> Existing job--A position for which there has been an incumbent 
employee or a job opening for more than one year prior to the date the project 
is scheduled to begin. 
<nl>(13)<ol> Extraordinary opportunity project--A project that, in the 
discretion of the department, has the potential to create time-sensitive 
economic development in a region or the State. 
<nl>(14)<ol> Full-time <nl>permanent<ol> employment--Employment <nl> for a 
single employer<ol> of at least 35 hours a week <nl>that is not temporary or 
seasonal employment<ol> [for a single employer], including normal days not 
worked by an employee such as a weekend or holiday. 
<nl>(15)<ol> Governing Board--The existing board of the Texas Department of 
Economic Development. 
<nl>(16)<ol> In-kind contribution--A noncash contribution of goods and/or 
services provided by an employer as all or part of the employer's matching share 
of a grant or project. 
<nl>(17)<ol> Job-related basic skills--The knowledge and abilities necessary to 
communicate and to function effectively in the workplace. These skills must be 
integrated as part of the job-related occupational skills training curricula and 
must be consistent with the requirements of the employer's business plan. Such 
skills may include reading, writing, mathematics, English as a Second Language, 
and Spanish as a Second Language if these skills are necessary for the job in 
which the participant will be employed at the end of the project consistent with 
the employer's certification. 
<nl>(18)<ol> Job-related occupational skills--The knowledge and abilities the 
employer specifies as necessary to perform the duties and tasks required for a 
specific job. These skills specifications shall be consistent with the 
requirements of the employer's business plan. 
<nl>(19)<ol> Labor organization--Any organization of any kind, or any agency or 
employee representation committee or plan in which employees participate and 
which exists for the purpose, in whole or in part, of dealing with one or more 
employers concerning grievances, labor disputes, wages, rates of pay, hours of 
employment, or conditions of work. 
<nl>(20)<ol> Local labor market--One of many geographic areas of the State for 
which standardized occupational wage data is available from the Texas Workforce 
Commission. 
<nl>(21)<ol> Matching costs--The dollar value of the private contributions from 
the employer required under Smart Jobs Fund, whether they be dollar 
contributions or in-kind contributions. 
<nl>(22)<ol> Micro-business--A small business with 20 employees or less. 
<nl>(23)<ol> Minority employer status for application purposes--Minority group 
members include African-Americans, American Indians, Asian-Americans, Mexican-
Americans and other Americans of Hispanic origin, and women. 
<nl>(24)<ol> New job--A position which did not exist in this state in the 
employer's business and which had no incumbent employee for more than one year 
prior to the date the project is scheduled to begin. This may include an 
employee in an existing job who is being retrained for a new job with new skill 
requirements. 
<nl>(25)<ol> On-the-job training--<nl>Training that provides knowledge or skills 
essential to the full and adequate performance of the job, acquired while the 
participant is engaged in productive work. <ol> [Structured training by 
instruction and supervision during a period of time a trainee works on the job]. 
<nl>(26)<ol> Prevailing wage--The average hourly wage paid for a specific 
occupation within a local labor market area and [is] based on the most current 
information provided by the Texas Workforce Commission. 
<nl>(27)<ol> Program expenses--The costs incurred by the department for its 
operation of the program, which are not included in the cost of specific 
projects. 
<nl>(28)<ol> Project--A specific employment training activity for which an 
employer developed and implemented a plan and entered into a contract under the 
Texas Government Code, Subchapter J, sec.sec.481.151 et seq. 
<nl>(29)<ol> Provider--A person or entity that provides employment-related 
training. The term includes employers, employer associations, labor 
organizations, community-based organizations, training consultants, public and 
private schools, community colleges, senior colleges, universities, technical 
colleges, and other higher education entities as defined in the Education Code, 
sec.61.003, and proprietary schools as defined in the Education Code, sec.32.11. 
<nl>(30)<ol> Reimbursable costs--Those expenses in a training project that are 
reimbursed by a grant from the fund. Costs related to direct training and 
administrative costs for a project are reimbursable costs. 
<nl>(31)<ol> Small Business--A business that has fewer than 100 employees or 
less than $1 million in annual gross receipts. 
<nl>(32)<ol> Smart Job--A [job that is a] family wage job, <nl>as defined at 
Government Code, sec.481.151(8),<ol> [a demand job, a job] in <nl>a<ol> 
manufacturing, [or a job in an] emerging<nl>, or demand<ol> occupation. 
<nl>(33)<ol> Subcontract--A written agreement between an applicant and a 
provider or administrative entity that is signed before a project has been 
approved and a grant awarded which details the rights and responsibilities of 
each party to the agreement. This can include the designation of a provider or 
administrative entity as a fiscal agent. 
<nl>(34)<ol> Technological change--An advance in product design or production 
technique that enhances production efficiency or product performance. 
<nl>(35)<ol> Total project cost--The sum of costs related to direct training 
plus administrative costs funded by a grant awarded under this chapter. 
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 April 3, 1998.
TRD-9804686
W. Lane Lanford
Chief Administrative Office
Texas Department of Economic Development
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 936-0181

SUBCHAPTER C. Application for Grants
10 TAC sec.sec.186.301, 186.302, 186.305-186.308
The Texas Department of Economic Development (department) proposes amendments to 
the Smart Jobs Fund Rules, Subchapter C, Application for Grants, 
sec.sec.186.301, 186.302, and 186.305-186.308. Proposed Smart Jobs Fund rule 
amendments published in the January 23, 1998, issue of the Texas Register (23 
TexReg 483) have been withdrawn. The proposed amendments clarify grant 
eligibility requirements, provide per employee training cost goals, clarify 
information required from training consortia, clarify permissible travel costs, 
provide for division of funds into categories and dedication of funds for 
extraordinary opportunity economic development projects, and provide for 
quarterly allocation of funds and scoring of applications. Some language has 
been changed to more accurately reflect statutory language and statutory intent. 
Some organizational changes and non-substantive grammatical corrections have 
been made. 
Proposed amendments to sec.186.301 provide per trainee cost goals for businesses 
that receive grant funds under the program. 
Proposed amendments to sec.186.302 limit the length of training projects and 
expand the number of project periods, clarify the application requirements 
regarding the size of the business or businesses applying for grant funds, 
clarify application requirements regarding whether the employer would provide 
the training regardless of a Smart Jobs grant award, and clarify the amount of 
grant funds that may be expended for travel. 
Proposed amendments to sec.186.305 clarify the application review process, 
provide that the executive director will attempt to award 50% of funds to small 
businesses, consistent with statute, provide for funding of consortiums made up 
of both large and small businesses. Proposed amendments to sec.186.305 also 
provide for funding categories and for funding of extraordinary opportunity 
projects. 
Proposed amendments to sec.186.306 provide for scoring of applications quarterly 
on a competitive basis. 
Proposed amendments to sec.sec.186.307 and 186.308 are grammatical changes or 
changes that more accurately reflect current program practices. 
The proposed rule amendments attempt to incorporate as many comments received on 
the rule amendments published on January 23, 1998, as possible. However, 
interested parties should note that in many cases the department received 
conflicting comments, and only one position could be incorporated into the 
rules. Parties who do not think their comments have been adequately responded to 
in the revised rule amendments are encouraged to again submit comments to the 
department. 
Comments suggested that the cost per trainee caps initially proposed on January 
23, 1998, should be higher or should be established as goals to retain 
flexibility to fund projects at higher rates on a case-by-case basis. As a 
result, the per trainee costs are proposed as goals of the program, rather than 
as caps. 
Comments did not understand the wording or purpose of language in the rules 
proposed January 23, 1998, regarding employer certification of whether the 
employer would provide training but for a smart jobs grant. As a result, the 
language has been rewritten in the new proposed rules as an application 
requirement and eliminated as a factor in the scoring criteria. 
Two comments favored the quarterly allocation process; one was against the 
quarterly allocation process. The quarterly allocation process has been retained 
in the new proposed rules. 
Two comments disagreed with mixed consortium funding, but seven supported mixed 
consortium funding. As a result, the proposal regarding mixed consortiums has 
been retained in the new proposed rules. 
Many comments were received regarding the proposed scoring criteria. As a 
result, the Department has revised the scoring mechanism to incorporate as many 
suggestions as possible and is publishing the scoring mechanism in the new 
proposed rules 
Comments were received from Barlow, Todd, Jordan, & Oliver, L.L.P., Barrios 
Technology, The Boeing Company, Brownsville Economic Development Council, Clear 
Lake Area Chamber of Commerce, Clear Lake Area Economic Development Foundation, 
Doorway to Training, Glick & Glick, Greater Houston Partnership, Honeywell, 
Inc., Johnson Engineering Corporation, Marketing 2 Go, San Angelo Chamber of 
Commerce, San Jacinto College Central, the Office of Senator David Sibley, and 
Small Business United of Texas. 
Gary Rosenquest, Director of Business Services, has determined that for each 
year of the first five years that the proposed amendments are in effect no 
additional cost to the state and to local governments, no reductions in costs to 
the state and to local governments, and no loss or increase in revenue to the 
state or to local governments is expected as a result of enforcing or 
administering the amendments. Mr. Rosenquest has determined that enforcing or 
administering the amendments does not have foreseeable implications relating to 
cost or revenues of the state or local governments. 
Mr. Rosenquest has further determined that there is no probable cost to persons 
required to comply with the amendments, other than any resources used to 
complete a Smart Jobs Fund application by businesses that voluntarily 
participate in the program. Mr. Rosenquest has determined that the public 
benefits expected as a result of adopting the proposed amendments include 
increased economic growth, more equitable distribution of program grant funds, 
and more efficient program administration. 
Comments on the proposed amendments may be hand-delivered to Robin Abbott, 
General Counsel, at the department, 1700 North Congress Ave., Suite 130, Austin, 
Texas 78701; mailed to P.O. Box 12728, Austin, Texas 78711-2728; or faxed to 
(512) 936-0415. Comments received before publication of the proposed amendments 
in the Texas Register or later than 30 days after the date of publication will 
not be considered. 
The amendments are proposed pursuant to Government Code sec.481.0044(a), 
authorizing the governing board of the department to adopt rules necessary for 
the administration of department programs, and sec.481.153, directing the 
governing board to adopt rules as necessary to implement the Smart Jobs Fund 
program, as well as Government Code, Chapter 2001, Subchapter B, Rulemaking, 
setting forth the state agency rulemaking process. 
Government Code, Chapter 481, Subchapter J, is affected by these amendments. 

sec.186.301. Eligibility. 
(a) (No change.) 
(b) The cost per job is calculated by dividing the total project cost by the 
number of jobs. <nl>It is a goal of the program that the cost per job shall not 
exceed $1,200 per trainee for a large business or $2,500 per trainee for a small 
business.<ol> 
<nl>(c)<ol> Unless one of the conditions set forth in the Smart Jobs Fund, 
sec.481.155(a)(1)-(6) is met, grants awarded by the department shall meet the 
following two tests: the combination of grants in any fiscal year to a single 
employer may not exceed $1,500,000, and no grant or combination of grants in any 
fiscal year to a single employer may exceed 10% of the median annual wages of 
the new or existing jobs being created or retained with the grant. 

sec.186.302. Application Requirements.
(a)-(c) (No change.) 
(d) Business and Training Plan. Grant funds awarded hereunder shall pay for job-
related occupational skills training and job-related basic skills training that 
enhance the employer's ability to carry out its business plan. Job-related basic 
skills must be integrated as part of the job-related occupational skills 
training curricula. An approved business and training plan will become part of 
any contract for grant funds awarded. The business and training plan will 
specify project start dates and project end dates. <nl> The Training Project may 
not exceed 18 months. The employer may specify multiple project periods within a 
Training Project.<ol> [Up to four project periods may be specified by the 
employer.] Each business and training plan must contain the information required 
by the Smart Jobs Fund, sec.481.156(b). Each business and training plan shall 
also: 
(1) (No change.) 
(2) describe the skills training curricula for each project, including the 
number of hours each participant will spend in classroom training, on-the-job 
training, and/or other employer-designed training components[,] to be funded by 
the grant and specify the training provider for each curricula; 
(3)-(4) (No change.) 
(5) specify the projected cost per job<nl>,<ol> which is calculated by dividing 
the total Smart Jobs Fund <nl>project cost<ol>.grant amount] by the number of 
jobs;
(6)-(7) (No change.) 
(e) The application shall include the following information: 
(1) whether the employer is a small business [with less than 100 employees or $1 
million or less in annual gross receipts] or a micro-business [with 20 employees 
or less]; [and] 
(2) whether the employer is a minority group member, and if so, to which 
minority group the employer belongs<nl>;<ol>[
<nl>(3)<ol> if the application is from a consortium, the number of businesses 
that are small businesses, micro-businesses, and large businesses and the number 
of employees to be trained for each; and 
<nl>(4)<ol> whether the employer would provide the training regardless of the 
Smart Jobs grant funds. 
(f) Budget. Each application shall include a budget with line item breakdown of 
costs consistent with the requirements of the Smart Jobs Fund and these rules. 
The budget shall include three parts: 
(1)-(2) (No change.) 
(3) specification of matching contributions. An approved budget with line item 
breakdown of costs will become part of any contract for grant funds awarded 
hereunder. 
(A) Costs related to direct training may include: tuition; fees; books and 
classroom materials; instructor wages and salaries and reasonable benefits if 
the instructor is not an employee of a public education institution if grant 
funds are paying tuition and fees; instructor and trainee travel and per diem 
outside the employer's specified region of the state (limited to 10% of the 
[total] <nl>other direct-related training<ol> costs [related to direct 
training]) with per diem expenses not to exceed the State of Texas allowable 
rates; reasonable equipment lease or rental costs during the term of the 
project; reasonable costs of pre- and post-training participant assessment, 
costs of purchasing approved curricula specified in the applicant's business and 
training plan if there is not already a course offering at a convenient public 
education institution for which the grant is paying tuition and fees; wages, 
salaries, and reasonable benefits of instructional aides and trainees' 
counselors if such personnel are not employees of a public education institution 
if grant funds are paying tuition and fees; and other such reasonable costs 
related to direct training. 
(B)-(E) (No change.) 
(g) Application process and time line. 
(1)-(2) (No change.) 
(3) [Within ten business days after receiving an application, the] <nl>The<ol> 
department shall notify the applicant whether the application is complete. If 
the application is incomplete, the department shall specify in a letter the 
additional information required to complete the application. With this 
notification to the applicant, the department shall identify a contact person on 
its staff who is available to assist the applicant in completing the 
application. The application will be placed in an inactive status if the 
requested additional information is not received within 30 business days from 
date of notification letter. 
(4) (No change.) 

sec.186.305. Funding; Grants.
(a) The executive director shall <nl>evaluate all completed applications to 
determine their eligibility for funding<ol> [attempt to award a grant for all 
approved projects], subject to the availability of funds. To ensure availability 
of funds throughout the fiscal year, <nl> the department shall attempt to ensure 
that 50% of the money spent under the program shall be used for small 
businesses. The<ol> [the] executive director <nl>will<ol> [may] award grants 
based on a quarterly allocation of funds. In deciding which projects to fund, 
the executive director shall be guided by the funding priorities <nl>and the 
scores achieved by each application as<ol> set forth in sec.186.306 of this 
title (relating to Funding Priorities). 
(b) <nl>To meet the legislative priorities and goals established for the 
program, the executive director may divide the funds appropriated for the 
program into separate categories. This includes funding categories for large 
businesses, small businesses, and for extraordinary opportunity projects.<ol> 
[In June of each year, the Policy Board shall review the funding priorities set 
forth in sec.186.306 of this title and advise the executive director about 
changes to those priorities]. 
<nl>(c)<ol> If an application is from a consortium comprised of large and small 
businesses, funding for the large business trainees will originate from the 
large business funding category, as defined under subsection (b) of this 
section, and funding for small business trainees will originate from the small 
business category, as defined under subsection (b) of this section. In the event 
that no funds are available in the large business funding category, the 
consortium may be funded from the small business funding category provided that 
at least 51% of the employees being trained are from small businesses. 
<nl>(d)<ol> For each quarter of the fiscal year, the Governing Board will review 
Smart Jobs fund activity and determine a percentage of total grant funding not 
to exceed 40% to allocate for extraordinary opportunity projects for the next 
quarter. For the first quarter of the fiscal year beginning September 1, 1998, 
it is the intent of the Governing Board to allocate up to 20% of total grant 
funding for extraordinary opportunity projects. 
<nl>(1)<ol> The purpose of this fund is to ensure availability of funds for 
extraordinary economic development opportunities for the State, by capturing the 
top new and expansion projects in terms of job creation and economic investment. 
<nl>(2)<ol> The executive director may designate as extraordinary opportunity 
projects those high impact and/or high profile projects that can demonstrate 
factors such as: 
<nl>(A)<ol> the employer will create jobs in the county equal to or greater than 
2% of the civilian labor force in the county, according to the most recently 
published Texas Workforce Commission estimates, and/or 
<nl>(B)<ol> two or more states are competing for the employer; and/or 
<nl>(C)<ol> the employer will create a number of jobs in the county equal to or 
greater than 25% of the number of jobs currently provided by the largest private 
sector employer in the county; and/or 
<nl>(D)<ol> such other demonstrated economic factors as are acceptable to the 
executive director. 

sec.186.306. Funding Priorities.
(a) Program [Only program] objectives and priorities outlined in the Smart Jobs 
Fund Act and General Provisions <nl>and these rules<ol> will be considered in 
evaluating applications for funding. [, including:] 
[(1) At least 60% of the money spent under the program shall be used for 
projects that assist existing employers.] 
[(2) Shall attempt to ensure that 50% of the money spent under the program shall 
be used for projects that assist employers with fewer than 100 employees or less 
than $1 million in annual gross receipts.] 
[(3) Shall attempt to ensure that 20% of the money spent under the program be 
used for projects that assist minority employers.] 
[(4) Shall to the greatest extent practical spend money from the smart jobs fund 
in all areas of the state.] 
(b) The department will develop a scoring mechanism to be used<nl>, in 
conjunction with other criteria, as a determining factor<ol> for <nl>scoring 
applications on a competitive basis. Applications will be reviewed quarterly. 
Applicants not funded in one quarter will be notified and their applications 
will be reconsidered in the next funding quarter, unless they notify the 
Department that they do not wish to be reconsidered. Applications will not be 
reconsidered for funding after two quarterly allocation periods. <ol> [for 
businesses with 100 or more employees and greater than $1 million in annual 
gross receipts that gives priority to funding applications based on the 
following criteria:] 
<nl>Figure: 10 TAC sec.186.306(b)<ol> 
[(1) business status, including minority businesses, existing businesses, and 
businesses located in an Enterprise Zone;] 
[(2) statewide distribution of businesses receiving grants under the program and 
first-time grantees;] 
[(3) the regional impact of the project, the international impact, and 
involvement in defense conversion activities;] 
[(4) the quality of the jobs, including manufacturing occupations and 
occupations in technological areas, wage levels, benefits, and whether the 
trainees are Texas residents formerly sentenced to the institutional division of 
the state jail division of the Texas Department of Criminal Justice.] 
<nl>(c)<ol> In June of each year, the Governing Board shall review the funding 
priorities set forth in this section and advise the executive director about 
changes to those priorities. 

sec.186.307. Provider Eligibility. 
An employer that has a contract under the Smart Jobs Fund <nl>cannot <ol> [can 
not] receive Smart Jobs fund grant monies for services rendered to another Smart 
Jobs Fund contractor during the contract period. 

sec.186.308. Contracts and Contract Amendments.
(a) The department shall enter into a contract with each employer or employer 
designee participating in the project. Contract amendments must be requested in 
writing at least 30 days prior to the <nl>implementation of the<ol> proposed 
changes [and must be executed before changes are implemented]. Acceptance of the 
requested amendment is within the discretion of the executive director of the 
department. Amendments will not be made during the final quarter of the training 
project. Contracts and contract amendments will be executed by the authorized 
employer's representative and the department executive director or executive 
director designee. 
(b)-(c) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on April 3, 1998.
TRD-9804685
W. Lane Lanford
Chief Administrative Office
Texas Department of Economic Development
Earliest possible date of adoption: May 17, 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
SUBCHAPTER <nl> F<ol>.System Advisory Council
13 TAC sec.1.121, sec.1.122 
(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.1.121 and 
sec.1.122. The repealed sections will be replaced with new procedures for 
resolving disputes and complaints in Chapter 2 General Policies and Procedures. 
The sections proposed for repeal establish different procedures depending on the 
subject matter of the dispute. A single procedure will be proposed to cover all 
areas of dispute with the exception of disciplinary actions against county 
librarians. Disputes involving the award of bids, grants, contracts, membership 
in the Texas Library System, and other subjects under commission authority will 
be resolved using these new procedures. The proposed procedures will conform to 
General Services Commission procedures for resolution of procurement disputes as 
required by S.B. 1752, Government Code, sec.2155.076. 
Raymond Hitt, Assistant State Librarian, has determined that for each year of 
the first five years the sections are in effect there will be no fiscal 
implications for state or local government or small businesses as a result of 
enforcing or administering the sections. 
Mr. Hitt also has determined that for each of the first five years the sections 
are in effect the public benefits anticipated as a result of enforcing the 
section will be to establish a uniform dispute resolution procedure which 
conforms to state law. 
Comments may be submitted to Carol Winship, Director of the Technical Services 
Division, Texas State Library and Archives Commission, P. O. Box 12927, Austin, 
Texas 78711-2927. 
The repeals are proposed under the Government Code, sec.441.006. 
The proposed repeals affect Senate Bill 1752 sec.2156.005(c) and sec.2155.076. 
sec.1.121.Review Procedures.
sec.1.122.Appeals Procedures.
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 31, 1998.
TRD-9804488
Raymond Hitt
Assistant State Librarian
Texas State Library and Archives Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-5460

CHAPTER 2.General Policies and Procedures
SUBCHAPTER <nl>A.<ol><nl>Principles and Procedures of the Commission<ol>
13 TAC sec.sec.2.53-2.55
The Texas State Library and Archives Commission proposes amendments to sec.2.53 
and new sec.2.54 and sec.2.55. A single procedure is proposed to manage the 
resolution of all disputes. The proposed procedures cover all areas of 
operations of the commission with the exception of disciplinary actions against 
county librarians under Government Code, sec.sec.441.007 - 441.0074. Procedures 
concerning certification of county librarians will be proposed at another time. 
The proposed procedures will conform to General Services Commission procedures 
for resolution of procurement disputes as required by S.B. 1752, Government 
Code, sec.2155.076. This proposal is made concurrently with a proposed repeal of 
existing sec.1.121 and sec.1.122 which the new and amended sections replace and 
unify into one procedure. 
Raymond Hitt, Assistant State Librarian, has determined that for each year of 
the first five years the sections are in effect there will be no fiscal 
implications for state or local government or small businesses as a result of 
enforcing or administering the sections. 
Mr. Hitt also has determined that for each of the first five years the sections 
are in effect the public benefits anticipated as a result of enforcing the 
sections will be to establish a uniform dispute resolution procedure which 
conforms to state law. 
Comments may be submitted to Carol Winship, Director of the Technical Services 
Division, Texas State Library and Archives Commission, P. O. Box 12927, Austin, 
Texas 78711-2927. 
The amendment and new sections are proposed under the Government Code, 
sec.441.006. 
The proposed amendment and new sections affect Senate Bill 1752, Texas 
Government Code sec.2156.005(c) and sec.2155.076, and Texas Government Code, 
Chapter 441, Subchapters A, F, G, H, I, J, and L, and Local Government Code, 
Title 6, Subtitle C, and Human Resources Code, Chapter 91, Subchapter E. 

sec.2.53.Service Complaints.
(a) (No change.)
[(b) If the Director and Librarian does not resolve the complaint to the 
satisfaction of the person filing it, the person may request in writing a 
hearing before the Texas State Library and Archives Commission. After receiving 
a written request for hearing on an unresolved complaint, the chairman will 
place the complaint on the agenda for the next scheduled meeting of the 
commission.] 
<nl>(b)<ol> [(c)] Complaints regarding grants and the administration of grants 
will be processed in accordance with the procedures outlined in <nl>sec.2.55 of 
this chapter (relating to Protest Procedure)<ol> [sec.1.122 of this title 
(relating to Appeals Procedures)]. Complaints regarding county librarians 
certified by the commission will be processed in accordance with procedures to 
be included in Chapter 5 of this title (relating to County Librarian 
Certification). 

sec.2.54.Bid Submission, Bid Opening, and Tabulation.
The Texas State Library and Archives Commission adopts by reference the General 
Services Commission rule for Bid Submission, Bid Opening, and Tabulation. The 
rule being adopted by reference has been published as 1 TAC 113.5. 

sec.2.55.Protest Procedure.
(a) An aggrieved person who is not satisfied with a decision, procedure, or 
service received from the staff of the Texas State Library and Archives 
Commission or who is an actual or prospective bidder, grantee, or contractor 
aggrieved in connection with a solicitation, evaluation, or award may file a 
protest with the Director and Librarian in accordance with this rule. 
(b) A protest must be submitted to the Director and Librarian within 21 days 
after the person knows or should have known of the matter which is protested. 
The Director and Librarian has the discretion to allow a protest filed after 21 
days if the protestant shows good cause for the late filing or if the protest 
raises an issue significant to the general policies and procedures of the 
commission. 
(c) The protestant shall mail or deliver a copy of the protest to all interested 
persons. The Director and Librarian will furnish a list of interested persons to 
a protestant. For protests of a competitive selection (bid, contract, or grant), 
interested persons shall include all persons who have submitted a bid, proposal, 
or application. 
(d) A protest must be in writing and identified as a protest under this section, 
and contain the following: 
(1) a description of the protestant's interest in the matter;
(2) the issue(s) to be resolved and remedy(s) requested;
(3) the protestant's argument supporting the protest, including a statement of 
relevant facts and applicable law, specifying the statutes, rules, or other 
legal authority alleged to have been violated; 
(4) the protestant's affirmation that facts set forth in the protest are true; 
and 
(5) a certification that a copy of the protest has been mailed or delivered to 
all interested persons. 
(e) Upon receipt of a protest conforming to the requirements of this section, 
the commission shall not proceed with the solicitation, award, or contract until 
the protest is resolved, unless the Director and Librarian makes a written 
determination that delay would harm the substantial interests of the state. 
(f) The Director and Librarian has the authority to decide, settle, or resolve 
the protest and will make a written determination. The Director and Librarian 
may solicit written responses to the protest from other parties. The Director 
and Librarian shall inform the protesting party and other interested parties by 
letter of his determination, and how to appeal the determination to the 
commission. 
(g) An interested party may appeal the determination of the Director and 
Librarian. An appeal must be in writing and conform to paragraphs (1) - (3) of 
this subsection: 
(1) the appeal must be received in the office of the Director and Librarian no 
later than 15 days after the date the determination is mailed to interested 
parties; 
(2) a copy of the appeal must be mailed or delivered by the appealing party to 
all interested parties and contain a certification of mailing or delivery; 
(3) the appealing party must state whether or not an opportunity is requested to 
make an oral presentation to the commission in open meeting. 
(h) The Director and Librarian shall refer the matter to the commission for 
their consideration at an open meeting. 
(i) The chair of the commission has the discretion to allow an appeal filed more 
than 15 days after the Director and Librarian's determination if the appealing 
party shows good cause for the late filing or if the appeal raises an issue 
significant to the general policies or procedures of the commission.
(j) An interested party may file a response to an appeal of the determination of 
the Director and Librarian no later than seven days after the appeal is mailed 
or delivered. 
(k) Copies of the appeal and responses of interested parties, if any, shall be 
mailed to the commission by the Director and Librarian. 
(l) The chair of the commission has the discretion to decide whether or not a 
request for oral presentations will be granted and will set the order and amount 
of time for oral presentations that are allowed. The chair also has the 
discretion to decide whether presentations and written documents presented by 
Commission staff and interested parties will be allowed.
(m) The commission will determine properly filed appeals and make its decision 
in open meeting. The commission shall vote to uphold or reverse the decision of 
the Director and Librarian. Failing a majority vote of a quorum of the 
commission, the Director and Librarian's decision is upheld. The commission's 
decision is final and not subject to judicial review under the statutes 
governing the commission. 
(n) A decision issued either by the commission in open meeting or in writing by 
the Director and Librarian shall be the final administrative action of the 
commission. 
(o) Documentation concerning a protest of a competitive selection is part of the 
commission's records series for that selection and is retained in accordance 
with the commission's approved records retention schedule. 
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 31, 1998.
TRD-9804489
Raymond Hitt
Assistant State Librarian
Texas State Library and Archives Commission
Earliest possible date of adoption: May 17, 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.3.14
The Railroad Commission of Texas proposes amendments to sec.3.14, concerning 
plugging. The amendments are proposed to conform sec.3.14 to Texas Natural 
Resources Code, sec.sec.89.002 and 89.011, as amended, to codify existing 
commission procedures regarding plugging of inactive wells, to clarify certain 
provisions, and to delete obsolete provisions from the section. 
In conformity with statutory changes, the proposed amendments provide that an 
entity that designates itself to the commission as operator of a well by having 
a designation form approved on or after September 1, 1997, retains 
responsibility for properly plugging that well until a subsequent operator 
files, and the commission approves, an operator designation form for the well in 
question. For wells on which the most recent operator designation form was filed 
prior to September 1, 1997, commission rules regarding plugging responsibility 
remain unchanged - the designated operator is presumed to be responsible for 
plugging but that presumption may be rebutted upon a showing at a hearing that 
some other entity has assumed responsibility for the physical operation and 
control of the well. 
The proposed amendments clarify the procedures for obtaining extensions of 
plugging deadlines and delineate when extensions may be cancelled. A new 
provision concerning applications to transfer inactive wellbores into the Texas 
Experimental Research and Recovery Activity (TERRA) program would be added by 
the proposed amendments. The proposed amendments would also add provisions 
setting out the circumstances in which the commission may plug wells and seek 
reimbursement from the operator and the procedures for obtaining designation as 
an approved cementer. 
Rita E. Percival, Oil and Gas Division planner, has determined that there will 
be no fiscal implications as a result of enforcing or administering the amended 
rule. There will be no effect on state government for each year of the first 
five-year period the amended rule will be in effect, because most actions 
required under the amended provisions are already being carried out under 
general existing statutory authority or as administrative procedures; additional 
actions that may be required, such as any added hearings or field inspections, 
will be carried out by existing staff. There will be no effect on local 
government. 
The cost of compliance with the amended rule for individuals or small businesses 
is anticipated to be the result of the requirements for site cleanup after 
plugging. There will be an estimated cost of $2,700 for a standard oil lease 
tank battery consisting of one 100-barrel oil tank, one 50-barrel water tank, 
one vertical two-phase separator, and associated piping. These costs might be 
recovered in whole or part from the salvage value of this equipment. The cost 
for other sites will increase proportionately with an increase in the amount of 
on-site equipment. 
Colin K. Lineberry, hearings examiner in the Office of General Counsel, has 
determined that for each year of the first five years the section as proposed 
will be in effect, the public benefit anticipated as a result of enforcing the 
section will be increased certainty in determining responsibility for plugging 
of inactive wells and a reduction of the regulatory burden by clarification and 
codification of existing procedures concerning plugging procedures and obtaining 
designation as an approved cementer. The commission anticipates that there will 
be a beneficial effect on small businesses due to the deceased regulatory 
burden. The commission anticipates that there will be a reduction in economic 
costs to persons who are required to comply with the proposed rules because of 
the clarification of existing procedures and removal of obsolete provisions. 
Comments may be submitted to Colin K. Lineberry, Hearings Examiner, Office of 
General Counsel - Oil and Gas Section, Railroad Commission of Texas, P. O. Box 
12967, Austin, Texas 78711-2967. The deadline for filing comments is 60 days 
after publication in the Texas Register. Comments should refer to the docket 
number of this rulemaking proceeding, 20-0217634. For more information call 
Colin K. Lineberry at (512) 463-7051.
The commission has not requested a local employment impact statement, pursuant 
to Texas Government Code, sec.2001.022(h). 
The commission proposes the amendments pursuant to Texas Natural Resources Code, 
sec.sec.81.052, 85.042, 85.046, 85.201, 86.042, 89.001, 89.121, and 91.101, 
which authorize the commission to prevent waste of oil and gas, to protect 
correlative rights and to prevent the pollution of surface and subsurface water 
within the state. 
Texas Natural Resources Code, sec.sec.81.052, 85.042, 85.046, 85.201, 86.042, 
89.001, 89.121, and 91.101 are affected by this proposal.

sec.3.14.Plugging.
(a) <nl>Definitions and application<ol> [Application] to plug. 
<nl>(1)<ol> <nl>As used in this section: <ol>
<nl>(A)<ol> <nl>"Active operation" means regular and continuing activities 
related to the production of oil and gas for which the operator has all 
necessary permits. In the case of a delinquent inactive well that is not 
permitted as a disposal or injection well, active operation requires reported 
production. <ol>
<nl>(B)<ol> <nl>"Delinquent inactive well" means an unplugged well that has had 
no reported production, disposal, injection, or other permitted activity for a 
period of greater than 12 months and for which, after notice and opportunity for 
hearing, the commission has not extended the plugging deadline. <ol>
<nl>(C)<ol> <nl>"Funnel viscosity" means viscosity as measured by the Marsh 
funnel, based on the number of seconds required for 1,000 cubic centimeters of 
fluid to flow through the funnel. <ol>
<nl>(D)<ol> <nl>"Good faith claim" means a factually supported claim based on a 
recognized legal theory to a continuing possessory right in a mineral estate, 
such as evidence of a currently valid oil and gas lease or a recorded deed 
conveying a fee interest in the mineral estate.<ol> 
<nl>(E)<ol> <nl> "Operator designation form" means a certificate of 
transportation authority and compliance or an application to drill, deepen, 
recomplete, plug back, or reenter which has been completed, signed and filed 
with the commission.<ol> 
<nl>(F)<ol> <nl>"Productive horizon" means any stratum known to contain oil, 
gas, or geothermal resources in producible quantities in the vicinity of an 
unplugged well.<ol> 
<nl>(G)<ol> <nl> "Reported production" means production of oil or gas, excluding 
production attributable to well tests, accurately reported to the commission on 
a monthly producer's report. <ol>
<nl>(H)<ol> <nl> To "serve surface notice" means to hand deliver a written 
notice identifying the well to be plugged and the day the well will be plugged 
to the intended recipient at least three days prior to the day of plugging or to 
mail the notice by first class mail, postage pre-paid, to the last known address 
of the intended recipient at least seven days prior to the day of plugging. <ol>
<nl>(I)<ol> <nl>"Usable quality water strata" means all strata determined by the 
Texas Natural Resources Conservation Commission to contain usable quality water. 
<ol>
<nl>(2)<ol> [(1)] <nl>The operator shall give the commission notice of its<ol> 
[Notification of] intention to plug any well or wells drilled for oil, gas, or 
geothermal resources or for any other purpose over which the commission has 
jurisdiction, except those specifically addressed in sec.3.100(f)(1) of this 
title (relating to Seismic Holes and Core Holes) (Statewide Rule 100), [shall be 
given to the commission] prior to plugging. <nl>The operator shall deliver the 
written notice<ol> [Notification shall be made, in writing,] to the district 
office on the appropriate form. 
<nl>(3)<ol> [(2)] <nl>The operator shall deliver the notice of its intention to 
plug to <ol>[This written notification must be received by] the district office 
at least five days prior to the beginning of plugging operations<nl>. The notice 
shall set out the proposed plugging<ol> [and shall show the proposed] procedure 
as well as the complete casing record. <nl>The operator shall not commence the 
work of plugging the well or wells until the proposed procedure has been 
approved by the district office. The operator shall not initiate approved 
plugging operations<ol> [The work of plugging the well or wells shall not 
commence] before the date set out in the notification for the beginning of 
plugging operations unless authorized by the district director. The operator 
shall <nl> notify<ol> [call] the district office at least four hours before 
commencing plugging operations and proceed with the work as <nl>approved. The 
district director may grant exceptions to the requirements of this paragraph 
concerning the timing of notices when a workover or<ol> [outlined, unless the 
proposed plugging procedure is not approved by the district director. Exceptions 
may be granted at the discretion of the district director when either a workover 
or a] drilling rig is already at work on location, ready to commence plugging 
operations. Operations shall not be suspended prior to plugging the well unless 
the hole is cased and casing is cemented in place in compliance with commission 
rules. 
<nl>(4)<ol> [(3)] The landowner and the operator may file an application to 
condition an abandoned well located on the landowner's tract for usable quality 
water production operations, provided the landowner assumes responsibility for 
plugging the well and obligates himself, his heirs, successors, and assignees as 
a condition to the commission's approval of such application to complete the 
plugging operations. The application shall be made on the form prescribed by the 
commission. In all cases, the operator responsible for plugging the well 
<nl>shall<ol> [must] place all cement plugs required by this rule up to the base 
of the usable quality water strata<nl>.<ol> [, as determined by the Texas 
Department of Water Resources.] 
<nl>(5)<ol> [(4)] <nl>The operator of a well shall serve surface notice on 
the<ol> [Before plugging any well, notice shall be given to the] surface owner 
of the well site tract, or the resident if the owner is absent<nl>, before the 
scheduled date for beginning the plugging operations<ol>. <nl>A<ol> [If they so 
desire, a] representative of the surface owner[, in addition to the commission 
representative,] may be present to witness the plugging of the well. Plugging 
shall not be delayed because of the <nl>lack of actual<ol> [inability to 
deliver] notice to the surface owner or resident <nl> if the operator has served 
surface notice as required by this paragraph<ol>. 
(b) <nl>Commencement of plugging operations and extensions. <ol> [Plugging: 
commencement of operations, extensions, and responsibility.
(1) <nl>The operator shall complete and file in the district office a duly 
verified plugging record<ol> [A plugging record shall be completed, duly 
verified, and filed], in duplicate, on the appropriate form [in the district 
office] within 30 days after plugging operations are completed. A cementing 
report made by the party cementing the well shall be attached to, or made a part 
of, the plugging report. <nl>If the well the operator is plugging is a dry hole, 
an electric log status report shall be filed with the plugging record.<ol> 
(2) Plugging operations on each dry or inactive well <nl> shall<ol> [must] be 
commenced within a period of one year after drilling or operations cease and 
shall proceed with due diligence until completed. <nl> Plugging operations on 
delinquent inactive wells must be commenced immediately unless the well is 
restored to active operation.<ol> For good cause, a reasonable extension of time 
in which to start the plugging operations may be granted pursuant to the 
following procedures. 
(A) The commission or its delegate may administratively grant an extension of 
time of one year if the well is in compliance with all other laws and commission 
rules<nl>; the well and associated facilities are<ol> [relating to conservation 
and safety or the prevention or control of pollution, is] not a pollution 
hazard; <nl>the operator's organization report is current and active, the 
operator has a good faith claim to operate the well;<ol> and 
(i) [provided that] the operator pays the proper fee as provided in sec.3.76 of 
this title (relating to Fees, Performance Bonds, and Alternate Forms of 
Financial Security Required To Be Filed) (Statewide Rule 78), obtains a permit 
for this extension, and no more than three extensions have been granted after 
June 1, 1992, for the well under the provisions of this clause; or 
(ii) the operator files an individual or blanket performance bond as provided in 
sec.3.76 of this title (relating to Fees, Performance Bonds, and Alternate Forms 
of Financial Security Required To Be Filed) (Statewide Rule 78), or a letter of 
credit. 
(B) <nl>The commission or its delegate may revoke an administratively granted 
extension of time if an operator fails to maintain the well in compliance with 
commission rules, fails to maintain a current and accurate organization report 
on file with the commission, or fails to provide the commission, upon request, 
with evidence of a continuing good faith claim to operate the well. <ol> [Any 
administratively granted extension of time is subject to review by the 
commission or its delegate at any time.] 
(C) If the commission or its delegate declines administratively to grant or [to] 
continue an extension of time, <nl>or revokes an extension,<ol> the operator 
shall<nl>, within 30 days, return the well to active operation,<ol> plug the 
well or request a hearing on the matter. 
(D) The commission or its delegate may allow a well to be the subject of more 
than four extensions granted after June 1, 1992, under the provisions of 
subparagraph (A)(i) of this paragraph, upon written application<nl>, if the 
operator's organization report is current and active, the operator has a good 
faith claim to operate the well,<ol> and <nl>the operator demonstrates <ol> [a 
showing] that no pollution of surface or subsurface water could occur as a 
result of granting the extension. If such application is administratively 
denied, the commission may subsequently grant the extension. 
(E) <nl>The operator of any well<ol> [All wells] more than 25 years old that 
<nl>becomes<ol> [become] inactive and subject to the provisions of this 
paragraph shall <nl>plug or annually test such well<ol> [be plugged or tested 
annually] to determine whether the well poses a potential threat of harm to 
natural resources, including surface and subsurface water, oil and gas. 
<nl>(i)<ol> In general, a fluid level test is a sufficient test for purposes of 
this subparagraph. However, the commission or its delegate may require alternate 
methods of testing, and more frequent tests,<nl> if the commission deems it<ol> 
[if it is] necessary to ensure the well does not pose a potential threat of harm 
to natural resources. [Wells that are returned to continuous production, as 
evidenced by three consecutive months of production, within a year after the 
well becomes inactive need not be tested.] Alternate methods of testing may be 
approved by the commission or its delegate by written application and upon a 
showing that such a test will provide information sufficient to determine that 
the well does not pose a threat to natural resources. 
<nl>(ii)<ol> No test other than a fluid level test shall be <nl>acceptable<ol> 
[conducted] without prior approval from the district office. <nl>The district 
office shall be notified at least 48 hours before any test other than a fluid 
level test is conducted. Mechanical integrity test results shall be filed with 
the district office and fluid level test results shall be filed with the 
commission in Austin. Test results shall be filed on a commission-approved form, 
within 30 days of the completion of the test.<ol> 
<nl>(iii)<ol> Notwithstanding the provisions of clause (ii) of this paragraph, a 
[However, a] hydraulic pressure test may be conducted without prior approval 
from the district office, provided that the production casing is tested to a 
depth of at least 250 feet below the base of usable quality water 
<nl>strata<ol>, or 100 feet below the top of cement behind the production 
casing, whichever is deeper and provided that the minimum test pressure is 
greater than or equal to 250 psig for a period of at least 30 minutes. A 
hydraulic pressure test, so conducted, will exempt the well from further testing 
for five years from the date of the test unless the commission or its delegate 
determines that more frequent testing is necessary to ensure that the well does 
not pose a potential threat of harm to natural resources. [The district office 
shall be notified at least two days before any test other than a fluid level 
test is conducted. Mechanical integrity test results shall be filed with the 
district office and fluid level test results shall be filed with the commission 
in Austin. Test results shall be filed on a commission-approved form, within 30 
days of the completion of the test.] 
<nl>(iv)<ol> <nl> Wells that are returned to continuous production, as evidenced 
by three consecutive months of reported production, within a year after the well 
becomes inactive need not be tested. <ol>
<nl>(3)<ol> <nl> An operator may apply to have an inactive, mechanically sound 
and non-polluting wellbore accepted into the Texas Experimental Research and 
Recovery Activity (TERRA) program. If the well is accepted into the TERRA 
program, the operator is no longer responsible for plugging the well. An 
operator is not entitled to a hearing to contest the administrative denial of an 
application to accept a well into the TERRA program. <ol>
[(3) Proper plugging is the responsibility of the operator of the well. For 
purposes of plugging responsibility, the commission will presume that the 
operator designated on the most recent commission-approved producer's 
transportation authority and certificate of compliance was the person 
responsible for the physical operation and control of the well at the time the 
well was abandoned or ceased operation. This presumption may be refuted at a 
hearing called for the purpose of determining plugging responsibility.
<nl>(4)<ol> <nl> The commission may plug or replug any dry or inactive well as 
follows: <ol>
<nl>(A)<ol> <nl> After notice and hearing, if the well is causing or is likely 
to cause the pollution of surface or subsurface water or if oil or gas is 
leaking from the well, and: <ol>
<nl>(i)<ol> <nl>Neither the operator nor any other entity responsible for 
plugging the well can be found; or, <ol>
<nl>(ii)<ol> <nl>Neither the operator nor any other entity responsible for 
plugging the well has assets with which to plug the well. <ol>
<nl>(B)<ol> <nl>Without a hearing if the well is a delinquent inactive well and: 
<ol>
<nl>(i)<ol> <nl> the commission has sent notice of its intention to plug the 
well as required by sec.89.043(c) of the Texas Natural Resources Code; and, <ol>
<nl>(ii)<ol> <nl> the operator did not request a hearing within the period (not 
less than 10 days after receipt) specified in the notice.<ol> 
<nl>(C)<ol> <nl> Without notice or hearing, if: <ol>
<nl>(i)<ol> <nl> The commission has issued a final order requiring that the 
operator plug the well and the order has not been complied with; or, <ol>
<nl>(ii)<ol> <nl>The well poses an immediate threat of pollution of surface or 
subsurface waters or of injury to the public health and the operator has failed 
to timely remediate the problem. <ol>
<nl>(5)<ol> <nl> The commission may seek reimbursement from the operator and any 
other entity responsible for plugging the well for state funds expended pursuant 
to paragraph (4) of this subsection.<ol> 
<nl>(c)<ol> <nl>Designated operator responsible for proper plugging. <ol>
<nl>(1)<ol> <nl>The entity designated as the operator of a well on the most 
recent commission-approved operator designation form filed on or after September 
1, 1997 is responsible for properly plugging the well in accordance with this 
section and all other applicable commission rules and regulations concerning 
plugging of wells.<ol> 
<nl>(2)<ol> <nl>As to any well for which the most recent commission- approved 
operator designation form was filed prior to September 1, 1997, the entity 
designated as operator on that form is presumed to be the entity responsible for 
the physical operation and control of the well and to be the entity responsible 
for properly plugging the well in accordance with this section and all other 
applicable commission rules and regulations concerning plugging of wells. The 
presumption of responsibility may only be rebutted at a hearing called for the 
purpose of determining plugging responsibility. <ol>
<nl>(d)<ol> [(c)] General plugging requirements. 
(1) <nl>Wells must be plugged to insure<ol> [In plugging wells, it is essential] 
that all formations bearing usable quality water, oil, gas, or geothermal 
resources <nl>are<ol> [be] protected. All cementing operations during plugging 
<nl>shall<ol> [must] be performed under the direct supervision of the operator 
or his authorized representative, who shall not be an employee of the service or 
cementing company hired to plug the well. Direct supervision means supervision 
[on location] at the well site <nl>during the plugging operations. The operator 
and the cementer are both responsible for complying with the general plugging 
requirements of this subsection and for plugging the well in conformity with the 
procedure set forth in the approved notice of intention to plug and abandon for 
the well being plugged. The operator and cementer may each be assessed 
administrative penalties for failure to comply with the general plugging 
requirements of this subsection or for failure to plug the well in conformity 
with the approved notice of intention to plug and abandon the well<ol>. 
(2) Cement plugs shall be set to isolate each productive horizon and usable 
quality water strata. [A "productive horizon," as used in this rule, is defined 
as any stratum known to contain oil, gas, or geothermal resources in commercial 
quantities in the area.] 
(3) Cement plugs <nl>shall<ol> [must] be placed by the circulation or squeeze 
method through tubing or drill pipe. <nl> Cement plugs shall be placed by other 
methods only upon written request with the written approval of the district 
director or the director's delegate.<ol> 
(4) All cement for plugging shall be an <nl>approved <ol> [appropriate] API oil 
well cement without volume extenders and <nl>shall be<ol> mixed in accordance 
with API standards. Slurry weights shall be reported on the cementing report. 
The district director <nl>or the director's delegate<ol> may require <nl>that 
specific cement<ol> [specified cementing] compositions [to] be used in special 
situations; for example, when high temperature, salt section, or highly 
corrosive sections are present. 
(5) Operators shall use only cementers approved by the <nl> assistant director 
of well plugging or the assistant director's delegate, except when plugging is 
conducted in accordance with subparagraph (B)(ii) of this paragraph or paragraph 
(6) of this subsection.<ol> [director of field operations.] Cementing companies, 
service companies, or operators <nl> may apply for designation as approved 
cementers. Approval will be granted on a showing by the applicant of the ability 
to<ol> [can qualify as approved cementers by demonstrating that they are able 
and qualified to] mix and pump cement in compliance with this rule. <nl>An 
approved cementer is authorized to conduct plugging operations in accordance 
with commission rules in each commission district.<ol> [If the director of field 
operations refuses to administratively approve a cementing company, the company 
may request a hearing on the matter. After hearing, the examiner shall recommend 
final action by the commission.] 
<nl>(A)<ol> <nl>A cementing company, service company, or operator seeking 
designation as an approved cementer shall file a request in writing with the 
district director of the district in which it proposes to conduct its initial 
plugging operations. The request shall contain the following information: <ol>
<nl>(i)<ol> <nl>the name of the organization as shown on its most recent 
approved organizational report; <ol>
<nl>(ii)<ol> <nl> a list of qualifications including personnel who will 
supervise mixing and pumping operations; <ol>
<nl>(iii)<ol> <nl>length of time the organization has been in the business of 
cementing oil and gas wells; <ol>
<nl>(iv)<ol> <nl>an inventory of the type of equipment to be used to mix and 
pump cement; and <ol>
<nl>(v)<ol> <nl>a statement certifying that the organization will comply with 
all commission rules. <ol>
<nl>(B)<ol> <nl>No request for designation as an approved cementer will be 
approved until after the district director or the director's delegate has: <ol>
<nl>(i)<ol> <nl> inspected all equipment to be used for mixing and pumping 
cement; and <ol>
<nl>(ii)<ol> <nl> witnessed at least one plugging operation to determine if the 
cementing company, service company, or operator can properly mix and pump cement 
to the specifications required by this rule. <ol>
<nl>(C)<ol> <nl> The district director or the director's delegate shall file a 
letter with the assistant director of well plugging recommending that the 
application to be designated as an approved cementer be approved or denied. If 
the district director or the director's delegate does not recommend approval, or 
the assistant director of well plugging or the assistant director's delegate 
denies the application, the applicant may request a hearing on its application. 
<ol>
<nl>(D)<ol> <nl> Designation as an approved cementer may be suspended or revoked 
for violations of commission rules. The designation may be revoked or suspended 
administratively by the assistant director of well plugging for violations of 
commission rules if: <ol>
<nl>(i)<ol> <nl> the cementer has been given written notice by personal service 
or by registered or certified mail informing the cementer of the proposed 
action, the facts or conduct alleged to warrant the proposed action, and of its 
right to request a hearing within 10 days to demonstrate compliance with 
commission rules and all requirements for retention of designation as an 
approved cementer; and <ol>
<nl>(ii)<ol> <nl> the cementer did not file a written request for a hearing 
within 10 days of receipt of the notice.<ol> 
<nl>(6)<ol> <nl>An operator may request administrative authority to plug its own 
wells without being an approved cementer. An operator seeking such authority 
shall file a written request with the district director and demonstrate its 
ability to mix and pump cement in compliance with this subsection. The district 
director or the director's delegate will determine whether such a request 
warrants approval. If the district director or the director's delegate refuses 
to administratively approve this request, the operator may request a hearing on 
its request. <ol>
<nl>(7)<ol> [(6)] The district director may require additional cement plugs to 
cover and contain any productive horizon or to separate any water stratum from 
any other water stratum if the water qualities or hydrostatic pressures differ 
sufficiently to justify separation. The tagging <nl>and/or pressure testing<ol> 
of any such plugs<nl>, or any other plugs,<ol> and respotting may be required 
<nl>if necessary to insure that the well does not pose a potential threat of 
harm to natural resources <ol>. 
<nl>(8)<ol> [(7)] For onshore or inland wells, a 10-foot cement plug shall be 
placed in the top of the well, and casing shall be cut off three feet below the 
ground surface. 
<nl>(9)<ol> [(8)] Mud-laden fluid of at least 9 1/2 pounds per gallon <nl>with a 
minimum funnel viscosity of 40 seconds <ol> shall be placed in all portions of 
the well not filled with cement. The hole <nl>shall<ol> [must] be in static 
condition at the time the <nl>cement<ol> plugs are placed. 
<nl>(10)<ol> [(9)] Non-drillable material that would hamper or prevent reentry 
of a well shall not be placed in any wellbore during plugging operations, except 
in the case of a well plugged and abandoned under the <nl>provisions of sec.3.35 
or sec.3.94(e)<ol> [provision of sec.3.35] of this title (relating to Procedures 
for Identification and Control of Wellbores in Which Certain Logging Tools Have 
Been Abandoned <nl>(Statewide Rule 35); and Disposal of Oil and Gas NORM Waste 
(Statewide Rule 94), respectively)<ol>. Pipe and unretrievable junk shall not be 
cemented in the hole during plugging operations without prior approval by the 
district director. 
<nl>(11)<ol> [(10)] All cement plugs, except the top plug, shall have sufficient 
slurry volume to fill 100 feet of hole, plus 10% for each 1,000 feet of depth 
from the ground surface to the bottom of the plug. 
<nl>(12)<ol> [(11)] <nl>The operator shall fill the rathole, mouse hole, and 
cellar, and shall empty all tanks, vessels, related piping and flowlines that 
will not be actively used in the continuing operation of the lease within 120 
days after plugging work is completed.<ol> [After plugging work is completed, 
the operator must fill the rat hole, mouse hole, and cellar, and must] 
<nl>Within the same 120 day period, the operator shall<ol> remove all <nl>such 
tanks, vessels, and related piping, remove all<ol> loose junk and trash from the 
location<nl>, and contour the location to discourage pooling of surface water. 
The operator shall close all pits in accordance with the provisions of sec.3.8 
of this title (relating to Water Protection (Statewide Rule 8)).<ol> [All pits 
must be backfilled within a reasonable period of time.] 
<nl>(e)<ol> [(d)] Plugging requirements for wells with surface casing. 
(1) When insufficient surface casing is set to protect all usable quality water 
strata and such usable quality water strata are exposed to the wellbore when 
production or intermediate casing is pulled from the well or as a result of such 
casing not being run, a cement plug shall be placed from 50 feet below the base 
of the deepest usable quality water stratum to 50 feet above the top of the 
stratum. This plug shall be evidenced by tagging with tubing or drill pipe. The 
plug must be respotted if it has not been properly placed. In addition, a cement 
plug must be set across the shoe of the surface casing. This plug must be a 
minimum of 100 feet in length and shall extend at least 50 feet above and below 
the shoe. 
(2) When sufficient surface casing has been set to protect all usable quality 
water strata, a cement plug shall be placed across the shoe of the surface 
casing. This plug shall be a minimum of 100 feet in length and shall extend at 
least 50 feet above the shoe and at least 50 feet below the shoe. 
(3) If surface casing has been set deeper than 200 feet below the base of the 
deepest usable quality water stratum, an additional cement plug shall be placed 
inside the surface casing across the base of the deepest usable quality water 
stratum. This plug shall be a minimum of 100 feet in length and shall extend 
from 50 feet below the base of the deepest usable quality water stratum to 50 
feet above the top of the stratum. 
<nl>(f)<ol> [(e)] Plugging requirements for wells with intermediate casing. 
(1) For wells in which the intermediate casing has been cemented through all 
usable quality water strata and all productive horizons, a cement plug meeting 
the requirements of subsection <nl>(d)<ol>(11) [(c)(10)] of this section shall 
be placed inside the casing and centered opposite the base of the deepest usable 
quality water stratum, but extend no less than 50 feet above and below the 
stratum.
(2) For wells in which intermediate casing is not cemented through all usable 
quality water strata and all productive horizons, and if the casing will not be 
pulled, the intermediate casing shall be perforated at the required depths to 
place cement outside of the casing by squeeze cementing through casing 
perforations. 
<nl>(g)<ol> [(f)] Plugging requirements for wells with production casing. 
(1) For wells in which the production casing has been cemented through all 
usable quality water strata and all productive horizons, a cement plug meeting 
the requirements of subsection 
<nl>(d)<ol> (11) [(c)(10)] of this section shall be placed inside the casing and 
centered opposite the base of the deepest usable quality water stratum and 
across any multi-stage cementing tool. 
(2) For wells in which the production casing has not been cemented through all 
usable quality water strata and all productive horizons and if the casing will 
not be pulled, the production casing shall be perforated at the required depths 
to place cement outside of the casing by squeeze cementing through casing 
perforations. 
(3) The district director may approve a cast iron bridge plug to be placed 
immediately above each perforated interval, provided at least 20 feet of cement 
is placed on top of each bridge plug. A bridge plug shall not be set in any well 
at a depth where the pressure or temperature exceeds the ratings recommended by 
the bridge plug manufacturer. 
<nl>(h)<ol> [(g)] Plugging requirements for well with screen or liner. 
(1) If practical, the screen or liner shall be removed from the well. 
(2) If the screen or liner is not removed, a cement plug in accordance with 
subsection <nl>(d)(11)<ol> [(c)(10)] of this section shall be placed at the top 
of the liner. 
<nl>(i)<ol> [(h)] Plugging requirements for wells without production casing and 
open-hole completions. 
(1) Any productive horizon or any formation in which a pressure or formation 
water problem is known to exist shall be isolated by cement plugs centered at 
the top and bottom of the formation. Each cement plug shall have sufficient 
slurry volume to fill a calculated height as specified in subsection <nl> 
(d)(11)<ol> [(c)(10)] of this section. 
(2) If the gross thickness of any such formation is less than 100 feet, the 
tubing or drill pipe shall be suspended 50 feet below the base of the formation. 
Sufficient slurry volume shall be pumped to fill the calculated height from the 
bottom of the tubing or drill pipe up to a point at least 50 feet above the top 
of the formation, plus 10% for each 1,000 feet of depth from the ground surface 
to the bottom of the plug. 
<nl>(j)<ol> [(i)] The district director shall review and approve the 
notification of intention to plug in a manner so as to accomplish the purposes 
of this section. The district director may approve, modify, or reject the 
operator's notification of intention to plug. If the proposal is modified or 
rejected, the operator may request a review by the director of field operations. 
If the proposal is not administratively approved, the operator may request a 
hearing on the matter. After hearing, the examiner shall recommend final action 
by the commission. 
<nl>(k)<ol> [(j)] Plugging horizontal drainhole wells. All plugs in horizontal 
drainhole wells shall be set in accordance with subsection <nl>(d)(11)<ol> 
[(c)(10)] of this section. The productive horizon isolation plug shall be set 
from a depth 50 feet below the top of the productive horizon to a depth either 
50 feet above the top of the productive horizon, or 50 feet above the production 
casing shoe if the production casing is set above the top of the productive 
horizon. If the production casing shoe is set below the top of the productive 
horizon, then the productive horizon isolation plug shall be set from a depth 50 
feet below the production casing shoe to a depth that is 50 feet above the top 
of the productive horizon. In accordance with subsection <nl>(d)(7)<ol> [(c)(6)] 
of this section, the commission or its delegate may require additional plugs. 
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.
Issued in Austin, Texas, on March 31, 1998
Filed with the Office of the Secretary of State, on March 31, 1998.
TRD-9804522
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-7008

TITLE 19. EDUCATION
PART II. Texas Education Agency
CHAPTER 109.Budgeting, Accounting, and Auditing
SUBCHAPTER C.Adoptions by Reference
19 TAC sec.109.41
The Texas Education Agency (TEA) proposes an amendment to sec.109.41, concerning 
the "Financial Accountability System Resource Guide." The section adopts by 
reference the "Financial Accountability System Resource Guide" as the TEA's 
official rule. The "Resource Guide" describes rules for financial accounting 
such as financial reporting; budgeting; purchasing; auditing; site-based 
decision making; data collection and reporting; and management. Public school 
districts use the "Resource Guide" to meet the accounting, auditing, budgeting, 
and reporting requirements as set forth in the Texas Education Code and other 
state statutes relating to public school finance. The "Resource Guide" is 
available at www.tea.state.tx.us/school.finance on the TEA website. 
The proposed amendment to sec.109.41 changes the date from "January 1998" to 
"September 1998" to reflect the effective date of the proposed amendments to the 
"Financial Accountability System Resource Guide." Under sec.109.41(b), the 
commissioner of education shall amend the "Financial Accountability System 
Resource Guide," adopting it by reference, as needed. Proposed amendments to the 
"Resource Guide" include changes in financial accounting rules relating to the 
state compensatory education program. These changes will be reflected in 
proposed new module nine of the "Resource Guide." Also, amendments are proposed 
to module one of the "Resource Guide" to include applicable text from proposed 
new module nine. Proposed new module nine describes an auditing system that 
involves risk assessment and desk audit processes. Proposed new module nine of 
the "Resource Guide" also provides guidelines to school districts regarding the 
use of the compensatory education allotment to supplement the regular education 
program. The proposed effective date for proposed new module nine of the 
"Resource Guide" is the fiscal year beginning September 1, 1998. Implementation 
during the first fiscal year will be on a hold-harmless basis, providing a 
transitional year for implementing the new financial accounting requirements for 
the state compensatory education allotment. 
In May 1998, the State Board of Education is scheduled to consider a proposed 
new rule that provides for systems that monitor appropriate use of state 
compensatory education allotment funds by school districts. 
House Bill 1, General Appropriations Act, 75th Texas Legislature, Article IX, 
Rider 167, establishes a four-year sunset review cycle for all state agency 
rules. The TEA is also conducting a review of 19 TAC Chapter 109, Subchapter C, 
Adoptions By Reference, in accordance with Rider 167. The TEA finds sufficient 
reason for the rule to continue to exist and proposes amending the rule as 
indicated. 
Joe Wisnoski, coordinator for school finance and fiscal analysis, has determined 
that for the first five-year period the section is in effect there will be 
fiscal implications for state government as a result of enforcing or 
administering the section. 
Additional costs for the TEA will be incurred in connection with implementing 
the new reporting and auditing system for state compensatory education, required 
by Senate Bill 1873, 75th Texas Legislature, 1997. The reporting and auditing 
system is proposed in new module nine of the "Financial Accountability System 
Resource Guide." Unless additional funds are appropriated to the TEA operating 
budget and the full-time equivalent (FTE) cap is raised, the TEA would need to 
reallocate existing and future budget allocations from other administrative 
areas. 
For this current biennium, the TEA is unable to modify what has been 
appropriated. For future years, however, the estimated additional cost to the 
TEA, if approved, to fully implement the needed monitoring system would be 
$280,000 in FY1999; $2,280,000 in FY2000; and $2,190,000 in FY2001 and FY2002. 
The cost in FY1999 would involve the information system design; specification 
and testing; and development of procedures and writing manuals. Costs in 
subsequent fiscal years would include an estimated 25 FTEs to analyze 
information submitted by school districts and travel to school districts in 
order to perform on-site reviews of problems involving local administration of 
state compensatory education programs. If the proposed additional resources are 
not approved then the TEA would conduct this activity without any additional 
cost or budget appropriation.
There will be no fiscal implications for local government as a result of 
enforcing or administering the section. 
Mr. Wisnoski and Criss Cloudt, associate commissioner for policy planning and 
research, have 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 improving financial accountability for the use of state compensatory 
education allotment and keeping financial management practices current with 
changes in state law and federal rules and regulations. There will not be an 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the section as proposed. 
Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and 
Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. All 
requests for a public hearing on the proposed section submitted under the 
Administrative Procedure Act must be received by the commissioner of education 
not more than 15 calendar days after notice of a proposed change in the section 
has been published in the Texas Register
The amendment is proposed under the Texas Education Code, sec.sec.7.102(b)(33), 
42.152, 44.007, and 44.008, which authorizes the State Board of Education to 
adopt rules relating to school district budgets and audits of school district 
fiscal accounts, and House Bill 1, General Appropriations Act, 75th Texas 
Legislature, Article IX, Rider 167, which establishes a four-year sunset review 
cycle for all state agency rules. 
The amendment implements the Texas Education Code, sec.sec.7.102(b)(33), 42.152, 
44.007, and 44.008, and House Bill 1, General Appropriations Act, 75th Texas 
Legislature, Article IX, Rider 167. 

sec.109.41.Financial Accountability System Resource Guide.
(a) The rules for financial accounting are described in the official Texas 
Education Agency publication, Financial Accountability System Resource Guide, as 
amended <nl>September<ol> [January] 1998, which is adopted by this reference as 
the agency's official rule. A copy is available for examination during regular 
office hours, 8:00 a.m. to 5:00 p.m., except holidays, Saturdays, and Sundays, 
at the Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701. 
(b) The commissioner of education shall amend the Financial Accountability 
System Resource Guide and this section adopting it by reference, as needed. The 
commissioner shall inform the State Board of Education of the intent to amend 
the Resource Guide and of the effect of proposed amendments before submitting 
them to the Office of the Secretary of State as proposed rule changes.
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 April 6, 1998.
TRD-9804724
Criss Cloudt
Associate Commissioner
Texas Education Agency
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-9701

TITLE 22. EXAMINING BOARDS
PART I. Texas Board of Architectural Examiners
CHAPTER 1. Architects
SUBCHAPTER I. Charges Against Architects: Action
22 TAC sec.1.161
The Texas Board of Architectural Examiners proposes an amendment to sec.1.161, 
concerning disciplinary action. The proposed amendment is intended to provide 
specific standards to govern the implementation of an amendment to Vernon's 
Texas Civil Statutes, Article 249a, sec.11. The proposed amendment is expected 
to allow the agency's enforcement division to enforce the statutory provision 
consistently and efficiently. 
Cathy L. Hendricks, Executive Director, Texas Board of Architectural Examiners, 
has determined that for the first five years the section as proposed is in 
effect, there will be no material fiscal implications as a result of enforcing 
or administering the section. 
Ms. Hendricks has also determined that for each year of the first five years the 
section as proposed is in effect, the public benefits anticipated as a result of 
enforcing the section as proposed will be design professionals' increased 
awareness of and compliance with Texas Accessibility Standards. No material 
effect on small business is expected. Persons who are required to comply with 
the section as proposed may be subject to the imposition of an administrative 
fine of up to $1,000 if they fail to submit plans for accessibility review in a 
timely manner. 
Comments may be submitted to Cathy L. Hendricks, ASID/IIDA, Executive Director, 
Texas Board of Architectural Examiners, P.O. Box 12337, Austin, Texas 78711-
2337. 
The amendment is proposed pursuant to Vernon's Texas Civil Statutes, Article 
249a, sec.5(b), which provides the Texas Board of Architectural Examiners with 
authority to promulgate rules to regulate the practice of architecture in Texas. 
This proposed amendment does not affect any other statutes. 

sec.1.161. Disciplinary Action. 
(a)-(b) (No Change.) 
(c) Architects must comply with the Texas Department of Licensing and 
<nl>Regulation's<ol> [Regulation] requirements and submit drawings in a timely 
manner. The <nl>board<ol> [Board] may revoke or suspend an <nl>architect's<ol> 
[architects] certificate of registration; place on probation an architect whose 
registration has been <nl> suspended; reprimand an architect; <ol> [suspended or 
reprimanded;] or assess an administrative penalty in an amount not to exceed 
$1,000.
<nl>(1)<ol> If the facts and circumstances of a TDLR referral appear to warrant 
informal disposition by offering the architect a consent order, the executive 
director, on the advice of staff and legal counsel, may approve of such offer in 
lieu of formal action by the board. The consent order may include the following 
provisions: 
<nl>(A)<ol> the imposition of an administrative penalty in an amount not to 
exceed $1,000, which shall be deposited to the credit of the General Revenue 
Fund; 
<nl>(B)<ol> the imposition of directives that require the architect to implement 
written policies within the architect's practice that are reasonably designed to 
prevent subsequent violations of the Architectural Barriers Act; and/or 
<nl>(C)<ol> the deferral of the case for a certain period of no more than one 
year with the case being finally dismissed at the end of the period if no new 
violations of law occur during the period. 
<nl>(2)<ol> If the executive director approves of a proposed consent order and 
the consent order provides for deferral of the case for a certain period, the 
architect's professional registration shall remain in good standing for the 
duration of the period as long as the architect adheres to the terms of the 
consent order. 
<nl>(3)<ol> If the executive director approves of a proposed consent order and 
the architect fails to adhere to the terms of the consent order, the executive 
director shall refer the case for formal action by the board. 
<nl>(4)<ol> If a consent order is proposed and either the architect or the 
executive director fails to approve of the consent order, the executive director 
shall refer the case for formal action by the board. 
<nl>(5)<ol> The executive director shall not approve of a consent order if the 
conduct that is the subject of the consent order occurred after either of the 
following: 
<nl>(A)<ol> the executive director and the architect approved of a consent order 
in connection with a different referral from the Texas Department of Licensing 
and Regulation; 
<nl>(B)<ol> the board took action against the architect's professional 
registration based on a different referral from the Texas Department of 
Licensing and Regulation. 
(d)-(n) (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 April 6, 1998.
TRD-9804710
Cathy L. Hendricks, ASID/IIDA
Executive Director
Texas Board of Architectural Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 305-8535

CHAPTER 5. Interior Designers
SUBCHAPTER I. Charges Against Interior Designers; Action
22 TAC sec.5.171
The Texas Board of Architectural Examiners proposes an amendment to sec.5.171, 
concerning disciplinary action. The proposed amendment is intended to provide 
specific standards to govern the processing of referrals from the Texas 
Department of Licensing and Regulation pursuant to Vernon's Texas Civil 
Statutes, Article 9102, sec.5(d). The proposed amendment is expected to allow 
the agency's enforcement division to process the referrals consistently and 
efficiently. 
Cathy L. Hendricks, Executive Director, Texas Board of Architectural Examiners, 
has determined that for the first five years the section as proposed is in 
effect, there will be no material fiscal implications as a result of enforcing 
or administering the section. 
Ms. Hendricks has also determined that for each year of the first five years the 
section as proposed is in effect, the public benefits anticipated as a result of 
enforcing the section as proposed will be design professionals' increased 
awareness of and compliance with handicap accessibility laws. No material effect 
on small business is expected. Persons who are required to comply with the 
section as proposed are not expected to experience any cost related to the 
amendment. 
Comments may be submitted to Cathy L. Hendricks, ASID/IIDA, Executive Director, 
Texas Board of Architectural Examiners, P.O. Box 12337, Austin, Texas 78711-
2337. 
The amendment is proposed pursuant to Vernon's Texas Civil Statutes, Article 
249e, sec.5(d), which provides the Texas Board of Architectural Examiners with 
authority to promulgate rules. 
This proposed amendment does not affect any other statutes. 

sec.5.171. Disciplinary Action. 
(a)-(b) (No Change.) 
(c) Interior designers must comply with the Texas Department of Licensing and 
<nl>Regulation's<ol> [Regulation] requirements and submit drawings in a timely 
manner. The <nl>board<ol> [Board] may revoke or suspend an interior designer's 
certificate of <nl> registration; <ol> [registration or] place on probation an 
interior designer whose registration has been <nl> suspended; or reprimand an 
interior designer. <ol> [suspended or reprimanded.] 
<nl>(1)<ol> If the facts and circumstances of a TDLR referral appear to warrant 
informal disposition by offering the interior designer a consent order, the 
executive director, on the advice of staff and legal counsel, may approve of 
such offer in lieu of formal action by the board. The consent order may include 
the following provisions: 
<nl>(A)<ol> the imposition of directives that require the interior designer to 
implement written policies within the interior designer's practice that are 
reasonably designed to prevent subsequent violations of the Architectural 
Barriers Act; and/or 
<nl>(B)<ol> the deferral of the case for a certain period of no more than one 
year with the case being finally dismissed at the end of the period if no new 
violations of law occur during the period. 
<nl>(2)<ol> If the executive director approves of a proposed consent order and 
the consent order provides for deferral of the case for a certain period, the 
interior designer's professional registration shall remain in good standing for 
the duration of the period as long as the interior designer adheres to the terms 
of the consent order. 
<nl>(3)<ol> If the executive director approves of a proposed consent order and 
the interior designer fails to adhere to the terms of the consent order, the 
executive director shall refer the case for formal action by the board. 
<nl>(4)<ol> If a consent order is proposed and either the interior designer or 
the executive director fails to approve of the consent order, the executive 
director shall refer the case for formal action by the board. 
<nl>(5)<ol> The executive director shall not approve of a consent order if the 
conduct that is the subject of the consent order occurred after either of the 
following: 
<nl>(A)<ol> the executive director and the interior designer approved of a 
consent order in connection with a different referral from the Texas Department 
of Licensing and Regulation; 
<nl>(B)<ol> the board took action against the interior designer's professional 
registration based on a different referral from the Texas Department of 
Licensing and Regulation. 
(d)-(n) (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 April 6, 1998.
TRD-9804709
Cathy L. Hendricks, ASID/IIDA
Executive Director
Texas Board of Architectural Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 305-8535

PART III. Texas Board of Chiropractic Examiners
CHAPTER 73. Licenses and Renewals
22 TAC sec.73.2
The Texas Board of Chiropractic Examiners proposes an amendment to sec.73.2, 
relating to mandatory continuing education for renewal of license. The section 
is being amended to delete subsection (d). The Chiropractic Act, Texas Civil 
Statutes, Article 4512b, sec.8b(c), requires the board to establish a minimum 
number of continuing education courses for licensees for renewal of a license 
each year. Currently, the board's continuing education program is set out in 
three separate rules (sec.sec.73.2, 73.3, and 73.5). Section 73.3 and sec.73.5 
were previously proposed for amendment in the March 27, 1998, issue of the Texas 
Register (23 TexReg 3171). Some of the provisions are internally inconsistent. 
The reason for this rulemaking is to delete redundant or inconsistent language.
The current practice of the board is to allow a licensee an additional 12 months 
in which to meet the continuing education obligation. That practice is continued 
in sec.73.5 with some changes. Instead of a license being "canceled" for failure 
to be reinstated at the end of a probationary period, the board will consider a 
license to have "expired" from the date of its renewal, with the existing 
consequence of having to obtain a new license as provided in the Chiropractic 
Act, sec.8a(e) and board rule 73.2(c) for failure to renew timely a license. In 
this context, the word "expired" is consistent with terminology in the related 
rules and section of the Chiropractic Act. 
Under the proposed amendment, a licensee who is in non-compliance with the 
continuing education requirements for two years in a row, must cease practicing 
as provided by the Chiropractic Act, sec.8a for expired licenses for failure to 
renew. Such licensee may renew his or her license by curing any deficiency and 
complying with sec.8a and board rule 73.2(c). 
As stated previously, the Chiropractic Act mandates the board to require 
continuing education as a condition of renewal. The board's program gives 
licensees 12 additional months to comply for each reporting year. It is the 
board's opinion that two years is a reasonable amount of time to obtain a total 
of 32 hours or 16 hours per year of continuing education. The Chiropractic Act's 
continuing education requirement dictates that renewal of a license be denied if 
the continuing education requirement is not met. The Act further expressly 
states in sec.8a(a) that practicing without a renewal certificate is practicing 
without a license, subject to all of the penalties provided in the Act. The 
board's proposed administrative procedures include an incentive to encourage 
timely compliance by making the burdens and sanction for non-compliance more 
stringent the longer compliance is delayed. The proposed amendment for dealing 
with licensees who fail to meet the obligations of renewal implement the Act's 
mandates while, at the same time, give adequate and reasonable opportunity for 
licensees to comply. It is the board's intent to require timely completion of 
mandatory continuing education as well as to make reasonable allowances for 
those times when a licensee may have difficulty in complying timely.
Joyce Kershner, director of licensure, and Dr. Keith Hubbard, D.C., chair, Rules 
Committee, have determined that for the first five year period the rule as 
amended is in effect, there will be no fiscal implications for state or local 
government, as a result of enforcing or administering the rule. 
Ms. Kershner and Dr. Hubbard, 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 as amended will be: that licensees are provided 
better notice of the board's compliance provisions relating to its mandatory 
continuing education program and the consequences of non-compliance; and 
assurance that patients are treated by licensees who continue to acquire 
training and thus, maintain proficiency in their practice. There will be no 
added effect on small businesses versus that on larger businesses. Each licensee 
is subject to the same requirements, regardless of the size of their practice. 
There is no anticipated economic costs to persons who are required to comply 
with the amended rule inasmuch as licensees are required currently to comply 
with similar or the same provisions. Licensees at present pay a fee for 
attending continuing education seminars. 
Comments may be submitted, no later than 30 days form the date of this 
publication, to Dr. Keith Hubbard, D.C., Chairman, Rules Committee, Texas Board 
of Chiropractic Examiners, 333 Guadalupe, Tower III, Suite 825, Austin, Texas 
78701. 
The amendment is proposed under Texas Civil Statutes, Article 4512b, sec.4(c), 
sec.4a, which authorize the board to adopt rules necessary for performance of 
its duties, the regulation of the practice of chiropractic, and the enforcement 
of the Act, and sec.8b, which requires the board to establish a mandatory 
continuing education program with which licensees must comply in order to renew 
their licenses annually. 
The following sections of Texas Civil Statutes, Article 4512b are affected by 
the proposed amendment: sec.sec.4(c), 4a, 8b. 

sec.73.2. Renewal of License. 
(a)-(c) (No change.) 
[(d) Mandatory Continuing Education for Renewal of License.] 
[(1) The board may not issue a renewal license to a licensee who has not 
complied with the mandatory continuing education requirements, unless an 
exemption provided by sec.73.3 of this title (relating to Continuing Education) 
is applicable.] 
[(2) If a licensee has not fulfilled the required continuing education 
requirements within the calendar year preceding the license renewal date, the 
license shall expire. To renew that expired license, the licensee may obtain and 
provide the board with certified attendance records that the licensee has, since 
the expiration of the license, completed sufficient hours of approved continuing 
education courses to satisfy any deficiency in the previous year. Education 
obtained for renewal of an expired license cannot be applied toward renewal of 
license for the following year.] 
[(3) The licensee cannot practice chiropractic until such time as education is 
obtained and the expired license has been renewed.] 
[(4) The licensee must pay to the board the license renewal fee plus late fees 
as applicable under subsection (b)(1), (2) and (3) of this title.] 
[(5) The Executive Director or the Board's designee shall determine if all 
requirements for renewal of license have been fulfilled, and will notify the 
licensee when the practice of chiropractic can resume.] 
[(6) To practice chiropractic with an expired license shall constitute the 
practice of chiropractic without a license.]
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 April 6, 1998.
TRD-9804716
Joyce Kershner
Director of Licensure
Texas Board of Chiropractic Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 305-6700

PART V. State Board of Dental Examiners
CHAPTER 104.Continuing Education
22 TAC sec.104.1
The State Board of Dental Examiners proposes amendments to sec.104.1, 
Requirement that will accrue to licensed dentists and dental hygienists who fail 
to comply with the Board's rules for continuing education.
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. There will be no fiscal impact on state government as a 
result of enforcing this rule. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that the rule will more closely reflect statutory language. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512) 463-6400. To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4544, Section 5 and Article 4551e, 
Section 5A. The proposed change is a house keeping change to provide that 
licensees must complete required continuing education in order to maintain 
licensure, rather than imposing completion of continuing education as a 
prerequisite to renewal of a license. This change is proposed so that the rule 
language will more closely track statutory language. 
The proposed amended rule does not affect other statutes, articles, or codes.

sec.104.1.Requirement.
<nl>To maintain <ol> [As a prerequisite to the annual renewal of] a 
<nl>dental<ol> [dentist's license] or <nl>dental hygiene<ol> [a dental 
hygienist's] license, 36 hours of acceptable continuing education are required 
to be completed by the <nl>licensee<ol> [applicant] within a three-year period 
as defined in paragraphs (1)-(9) of this section: 
(1)-(9) (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 April 6, 1998.
TRD-9804717
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

22 TAC sec.104.4
The State Board of Dental Examiners proposes amendments to sec.104.4, Penalties 
that will accrue to licensed dentists and dental hygienists who fail to comply 
with the Board's rules for continuing education.
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. The fiscal impact on state government will be contingent 
upon several factors: (1) administrative costs necessary to conduct 
enforcement/investigative action against each licensee who fails to comply with 
the continuing education rules; (2) administrative costs to compile an in-house 
history for each licensee who fails to comply with the continuing education 
rules and who, subsequently, submits documentation to cure deficiencies and 
bring himself/herself into compliance with the rules; (3) administrative 
penalties assessed on licensees who fail to comply the continuing education 
rules; (4) costs of administrative hearings before the State Office of 
Administrative Hearing if such costs are awarded to the Board by the 
Administrative Law Judge. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that licensed dentists and dental hygienists will be current with 
the latest scientific and technical developments as related to oral clinical 
care. 
Small and large businesses identified as approved providers of continuing 
education will receive income (enrollment fees) from licensees who attempt to 
cure their continuing education deficiencies. The amount of income to each 
provider will be contingent upon the number of enrollees and the enrollment fee 
for the selected course(s). Also, small and large businesses owned and operated 
by dentists could suffer economic hardships should employed dentists and dental 
hygienists have their licenses revoked for failure to abide by the continuing 
education rules 
The anticipated economic cost to persons who are required to comply with the 
rules as proposed will be the enrollment fees for the continuing education 
courses selected by licensees. Should revocation of license occur, the 
individual would lose his/her professional income. Compliance with the 
amendments for individuals who do not timely complete required continuing 
education will be costs of administrative fines and hearing costs. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512) 463-6400. To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4544, Section 5, Article 4551e, 
Section 5A, Article 4548h, and Article 4548j. Proposed new language in 
subsection (b) provides the range of penalties for violations; proposed new 
subsection (c) provides that falsification of the attestation clause described 
in subsection (a) will result in the implementation of disciplinary procedures. 
Proposed new subsection (d) provides that a licensee who fails to document 
successful completion of required continuing education courses will be given a 
90 day period to cure, i.e., complete the required continuing education and that 
an administrative fine will be proposed for such failure if the deficiency is 
cured. If the deficiency is not cured the board will initiate a disciplinary 
proceeding, non administrative, to revoke the license's license. 
The proposed amended rule does not affect other statutes, articles, or codes. 

sec.104.4. Penalties.
(a) (No change.)
(b) Falsification of a continuing education attestation is a violation of the 
Dental Practice Act and such false certification or the failure to attend and 
complete the required number of continuing education hours shall subject the 
dentist or dental hygienist to disciplinary action. [up to and including 
revocation of license, or imposition of administrative penalties as provided by 
these rules.] 
<nl>(c)<ol> <nl> If it appears that the licensee has falsified the attestation, 
that matter will be referred to the Director of Enforcement of the State Board 
of Dental Examiners for proceeding as set forth in Rule 107.100 of this title 
(relating to Receipt, Processing, and Coordination of Complaint), Rule 107.101 
of this title (relating to Guidelines for the Conduct of Investigation) and the 
Dental Practice Act.<ol>
<nl>(d)<ol> <nl> If a licensee fails to provide documentation of completion of 
continuing education as required in Rule 104.1, of this title (relating to 
Requirement), the licensee will be allowed a 90 day period to cure the 
deficiency. Disciplinary action resulting from such failure will take one of two 
forms: <ol>
<nl>(1)<ol> <nl>if on or before the last day of the period of time allowed to 
cure, proof of completion of the deficiency is filed in the office of the State 
Board of Dental Examiners, an administrative penalty as provided in Article 
4548j, Texas Civil Statutes and Rule 107.201, of this title, (relating to 
Administrative Penalties for Continuing Education Violations) will be proposed. 
In the event of an appeal of such administrative penalty as provided under the 
Administrative Procedure Act, the Board will seek to double the penalty and seek 
the cost of administrative hearing before the State Office of Administrative 
Hearing (SOAH). <ol>
<nl>(2)<ol> <nl> if on or before the last day of the period of time allowed to 
cure, proof of completion of the deficiency is not filed in the office of the 
State Board of Dental Examiners, the board will seek revocation of license. <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 April 6, 1998.
TRD-9804718
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

CHAPTER 107.Dental Board Procedures
Procedures for Investigating Complaints
22 TAC sec.107.101
The State Board of Dental Examiners proposes amendments to sec.107.101, 
Guidelines for the Conduct of Investigations which categorizes all possible 
violations of the Dental Practice Act and Board rules into six generic 
categories for statistical and record keeping purposes. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. The fiscal implications for state government are the 
administrative costs associated with conducting an investigation. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be an unambiguous communication of categories of complaints. 
The proposed amendments will not impose economic costs to persons who are 
required to comply with the rule. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512) 463-6400. To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998. 
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4548h. The proposed amendments reduce 
the number of categories that are used to report complaints from seventeen to 
six. The original seventeen categories sometimes result in artificial 
classification of complaints. Some are very specific while others are so broad 
that they are in effect vague as written. Specific classifications of every 
complaint would require a large number of categories. As a reporting mechanism 
used primarily to measure performance of the board's enforcement effort, a few 
categories dividing complaints into the six that are proposed will provide a 
more useful tool for the board to employ. For example, the dishonorable conduct 
category has often been used for complaints about quality of care, fraud, 
advertising, allowing non dentists to practice dentistry and others. With such 
use, it is a category that has become meaningless. Rather, of more concern is 
whether a complaint is about quality of care or is about the licensee's 
professional conduct. Other changes in subsections (b) and (c) are merely to 
clarify the intent of the board in adopting the rule.
The proposed amended rule does not affect other statutes, articles, or codes.

sec.107.101. Guidelines for the Conduct of Investigation.
(a) <nl>Every complaint shall be classified into one or more of the following 
categories:<ol>[Upon receipt of a complaint and in order to provide proper 
statistical and/or a reporting mechanism, the alleged complaint violation(s) 
shall be classified into one or more of the following 17 categories defined as 
follows:] 
(1) <nl>Quality of Care: failure to treat a patient according to the standard of 
care in the practice of dentistry or dental hygiene.<ol> [Abandonment - 
Discontinuing treatment of a patient without timely notice whereby the patient 
is unable to provide for continued treatment.]
(2) <nl>Sanitation: failure to maintain the dental office in a sanitary 
condition.<ol> [Advertising - Advertising through false, misleading, and 
deceptive statements, whether in person and/or via a print or nonprint medium.] 
(3) <nl>Professional Conduct: violations arising out of the day-to-day practice 
of dentistry, not including administrative requirements. <ol> [Allowing the 
Auxiliary to Practice Dentistry - Allowing an auxiliary person to perform dental 
services which are reserved for licensed dentists or dental hygienists.] 
(4) <nl>Administration: failure to follow the administrative requirements of the 
Dental Practice Act and/or the Board's Rules and Regulations. <ol> [Dishonorable 
Conduct - Conduct which brings discredit upon the dental profession.] 
(5) <nl>Dental Laboratories: violations of the Dental Practice Act and/or the 
Board's Rules and regulations pertaining to the operation of dental 
laboratories.<ol> [Failure to Abide with Rules/Regulations - A violation of the 
day-to-day practice of dentistry, including but not limited to, the failure to 
use proper protection (e.g., lead apron) while taking radiographs, fair dealing, 
and/or special knowledge requirements cited in Rule 109.122.
(6) <nl>Business Promotion: violations arising out of efforts to obtain 
business, such as advertising and referral schemes.<ol> [Fee dispute - Unless 
involved in fraud or other extenuating circumstances, this type of violation 
usually is outside the jurisdiction of the Board.] 
[(7) Fraud - Attempting or practicing financial gain through deception, 
misrepresentation, and/or illegal means in the course of providing dental 
treatment. Fraud also includes the waiving of the insurance co-payment.] 
[(8) Impairment - Impaired due to self-abuse of drugs, alcohol abuse, and/or the 
use of Nitrous Oxide.] 
[(9) Controlled Substances and Prescriptions - Promoting or furthering 
addiction, violation of record keeping rules, prescribing for non-dental 
purposes, and/or over prescribing of controlled substances.
[(10) Negligence - Dental treatment considered to be below the standard 
(parameters) of care based on second opinion evaluations.
[(11) Patient Abuse - The mistreatment of a patient - verbally or physically.] 
[(12) Patient Death - As specified in Rule 109.177, a requirement to submit a 
written report within 30 days after the death of a patient as a result of dental 
treatment.] 
[(13) Patient Hospitalization - As in "Patient Death," a requirement to submit a 
written report of a patient's hospitalization as a result of dental treatment 
whose hospitalization was not in the normal course of dental treatment. This 
includes any injury (morbidity) or incident in the dental office.]
[(14) Practicing Dentistry Without a License (PDWOL) - Practicing dentistry 
without a Texas dental license as defined in Article 4551a, Dental Practice 
Act.] 
[(15) Operating a Dental Laboratory Without Registration (ODLWOR) - Any dental 
laboratory (in-state or out-of-state) providing services without being 
registered with the Board.] 
[(16) Probation Violation/Non Compliance - Violation of a Board Order 
requirement.] 
[(17) Sanitation - Failure to maintain a sterile, clean dental office 
environment; failure to follow appropriate infection control procedures.] 
(b) <nl>If the Board Secretary authorizes an investigation, <ol> [Upon the Board 
Secretary's authorization to initiate an investigation of a complaint,] the 
Director of Enforcement shall <nl>assign<ol> [insure complaints are assigned] a 
priority classification [with appropriate investigative action]. 
(c) Upon [the] receipt of <nl>a complaint<ol>[an investigation file], the 
assigned investigator shall <nl>begin <ol>[commence] an investigation and 
provide a preliminary report to the Director of Enforcement who, in coordination 
with the Board Secretary and Executive Director, shall [then] evaluate the 
imminent danger to the public of Texas.<nl>If it is decided that imminent danger 
to the public of Texas exists, then<ol>[A decision for] immediate temporary 
suspension of license shall be <nl>considered<ol> [made if danger or harm is 
ongoing]. 
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 April 6, 1998.
TRD-9804719
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

Administrative Penalties
22 TAC sec.107.201
The State Board of Dental Examiners proposes new sec.107.201, Administrative 
Penalties for Continuing Education Violations. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. The fiscal impact on state government will be contingent 
upon the number of licensees who fail to submit documentation of 36 hours of 
continuing education and, instead, are assessed a penalty according to the 
category of documentation submitted [18-35 hours; 1-17 hours] or not submitted 
[0 hours]. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that licensed dentists and dental hygienists will be encouraged to 
comply with the continuing education requirements rather than pay penalties.
The economic costs to persons who are required to comply with the rule as 
proposed will be contingent upon the penalty incurred for failure to comply with 
continuing education requirements. Such penalties could impact small and large 
businesses owned by dentists if such businesses employ a penalized dentist or 
dental hygienist and if such penalties are paid by the employer.
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512) 463-6400. To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act; and Article 4544, Section 5, Article 4551e, 
Section 5A, and Article 4548j. This new rule provides for the amounts of 
administrative penalties for failure to complete required continuing education 
hours.
The proposed new rule does not affect other statutes, articles, or codes.

sec.107.201.Administrative Penalties for Continuing Education Violations.
If a licensee, upon request, fails to submit proof of completion of 36 hours of 
continuing education as cited in Chapter 104 of this title (relating to 
Continuing Education), the Board may impose administrative penalties according 
to the following guidelines: 
(1) for completion of 18 to 35 hours, a $500 fine for the first offense and a 
$1000 fine for the second offense; 
(2) for completion of 1 to 17 hours, a $700 fine for the first offense and a 
$1,400 fine for the second offense; 
(3) for 0 hours, a $1,000 fine for the first offense and a $2000 fine for the 
second offense. 
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 April 6, 1998.
TRD-9804721
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

22 TAC sec.107.400
The State Board of Dental Examiners proposes new sec.107.400, Reportable 
Disciplinary Action 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule. The fiscal impact on state government will be any 
administrative costs associated with entering requested and qualifying changes 
into the Board's license database. 
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that superfluous information regarding action against a licensee 
will not be reported to the public because such information does not reflect a 
practitioner's quality of care. 
There will be no effect on small and large businesses nor any economic costs to 
persons who are required to comply with the rule as proposed because such costs 
are incidental and voluntary. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512-463-6400). To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998. 
The new rule is proposed under Texas Government Code sec.2001.021 et.seq; Texas 
Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board of 
Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act. The rule establishes a method whereby a licensee 
who has only one board order that addressed specified violations that are minor 
may, after passage of the required time, request that the board will report to 
individuals who may inquire concerning licensing status of the practitioner's 
license that he or she has no reportable actions. The conditions set forth if 
the proposed rule are intended to protect the public's interest in having ready 
access to information that a licensee has been disciplined if the violation 
found is of the sort that imposed risk upon patients or the public. 
The proposed new rule does not affect other statutes, articles, or codes.

sec. 107.400. Reportable Disciplinary Action.
(a) Information concerning licensure status for all licensees of the State Board 
of Dental Examiners (SBDE) is entered in a license database. The entry in the 
license database for a licensee who has been disciplined will be annotated that 
a disciplinary action has occurred. In responding to licensure status requests, 
the SBDE will report whether a licensee has been disciplined by the Board. 
(b) The Board, upon written request from a licensee, will remove such 
annotations if the discipline imposed falls into any category listed below. 
Licensees having more than one disciplinary action do not qualify for removal of 
the annotations. 
(1) Disciplinary action in which a "reprimand" order was issued. 
(A) The effective date of the Board Order is at least three years past; 
(B) The licensee has had no subsequent disciplinary action; 
(C) The licensee has no disciplinary proceeding pending; and 
(D) The licensee currently is not under investigation by the SBDE. 
(2) Disciplinary action in which a "suspension, all probated" order was issued. 
(A) The effective date of the board order is at least seven years past; 
(B) The "suspension, all probated" order did not involve action based upon 
either fraud or conviction of a criminal act. 
(C) The licensee has had no subsequent disciplinary action; 
(D) The licensee has no disciplinary proceeding pending; and 
(E) The licensee currently is not under investigation by the SBDE. 
(c) The Enforcement Committee of the SBDE will review each request and may ask 
for additional information to evaluate a request. 
(d) Upon a determination by the Enforcement Committee that the licensee meets 
all requirements of this rule, the committee will recommend that the Board 
either grant or deny the request. The committee shall provide its reasons to the 
Board for the recommendation. 
(e) Should the Board grant the request, the annotation of disciplinary action 
for a licensee will be removed from the database. 
(f) The Board will notify the licensee in writing of its decision within a 
reasonable period of time. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on April 6, 1998.
TRD-9804722
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

CHAPTER 109.Conduct
Fair Dealing
22 TAC sec.109.144
The State Board of Dental Examiners proposes amendments to sec.109.144, Records 
and their Transfer. 
Douglas A. Beran, Executive Director, State Board of Dental Examiners, has 
determined for the first five-year period the rule is in effect there will be no 
fiscal implications for local government as a result of enforcing or 
administering the rule nor will there be any fiscal impact on state government.
Mr. Beran also has determined that for each year of the first five years the 
rule is in effect the public benefit anticipated as a result of enforcing the 
rule will be that a dental patient may have access to his/her dental records but 
at a reasonable cost. 
The economic costs to dentists and employer dentists who are required to comply 
with the rule as proposed will be the pass-through costs to patients who request 
copies of their dental records. 
Comments on the proposal may be submitted to Mei Ling Clendennen, Executive 
Assistant, State Board of Dental Examiners, 333 Guadalupe, Tower 3, Suite 800, 
Austin, Texas 78701, (512) 463-6400. To be considered, all comments and written 
requests for public hearing must be received by the State Board of Dental 
Examiners on or before May 16, 1998.
The amended rule is proposed under Texas Government Code sec.2001.021 et.seq; 
Texas Civil Statutes, Article 4543sec.2 and 4551d which provide the State Board 
of Dental Examiners with the authority to adopt and promulgate rules consistent 
with the Dental Practice Act. The proposed amendment, new subsection (f) 
provides that a dentist must make a patient's dental records available at 
reasonable cost when the patient requests them. Further, it provides maximum 
amounts that may be charged for copies and requires that copies be made 
available within 30 days. Other amendments to subsections (a) and (c) are to 
clarify the name of the board. 
The proposed amended rule does not affect other statutes, articles, or codes.

sec.109.144.Records and Their Transfer.
(a) Dental records shall be made available for inspection and reproduction on 
demand by the officers, agents, or employees of the [Texas] State Board of 
Dental Examiners. 
(b) (No change.)
(c) Dental records are the sole property of the dentist who performs the dental 
service. A dentist who leaves a location, whether by retirement, sale, or 
otherwise, shall either take all said dental records with him, make a written 
transfer of records to the succeeding dentist, or make a written agreement for 
the maintenance of records, and the [Texas] State Board of Dental Examiners' 
Central Office shall be notified within 15 days of any such event, giving full 
information concerning the dentists and location(s) involved. A maintenance of 
records agreement shall not transfer ownership of the dental records, but shall 
require: that the dental records be maintained in accordance with the laws of 
the State of Texas and the Rules of the [Texas] State Board of Dental Examiners; 
and that the dentist(s) performing the service(s) recorded shall have access to 
and control of the records for purposes of inspection and copying. A maintenance 
of records agreement may be made at any time in an employment or other working 
relationship between a dentist and another entity. A maintenance of records 
agreement may apply to all or any part of the dental records generated in the 
course of the relationship, including future dental records. The provisions of 
this subsection for a transfer of records or a maintenance of records agreement 
shall not be construed to require a written agreement when a dentist performs 
dental services in the employ of another dentist or entity and the dentist 
performing the dental services leaves the resulting records in the possession of 
the employing dentist or entity. 
(d)-(e) (No change.)
<nl>(f)<ol> <nl> A dentist shall furnish copies of his dental records as 
described in section (b) of this title to a patient who requests his or her 
dental records. Requested copies including radiographs shall be furnished within 
30 days of the date of the request, provided, however, that copies need not be 
released until payment of copying costs has been made. <ol>
<nl>(1)<ol> <nl> A dentist providing copies of patient dental records is 
entitled to a reasonable fee for copying which shall be no more than $25 for the 
first 20 pages and $.15 per page for every copy thereafter. <ol>
<nl>(2)<ol> <nl> Fees for radiographs, which if copied by an x-ray duplicating 
service, may be equal to actual costs verified by invoice. <ol>
<nl>(3)<ol> <nl> Reasonable costs for radiographs duplicated by means other than 
by an x-ray duplicating service shall be as follows: <ol>
<nl>(A)<ol> <nl> a full mouth series: $15; <ol>
<nl>(B)<ol> <nl> a panoramic x-ray: $15; <ol>
<nl>(C)<ol> <nl> a lateral cephalogram: $15; <ol>
<nl>(D)<ol> <nl> a single extra-oral x-ray: $5.00 <ol>
<nl>(E)<ol> <nl> a single intra-oral x-ray: $5.00 <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 April 6, 1998.
TRD-9804723
Douglas A. Beran, Ph.D.
Executive Director
State Board of Dental Examiners
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-6400

TITLE 25. HEALTH SERVICES
PART II. Texas Department of Mental Health and Mental Retardation
CHAPTER 404.Protection of Clients and Staff
SUBCHAPTER H.Criminal History Clearances
25 TAC sec.sec.404.301-404.309
(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 Mental Health and Mental Retardation or in the Texas Register 
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
the repeals of sec.sec.404.301 - 404.309, concerning criminal history 
clearances. New sec.sec.414.501 - 414.509 of new Chapter 414, Subchapter K, 
concerning the same, which would replace the repealed sections, are 
contemporaneously proposed in this issue of the Texas Register. 
The repeals would allow for the adoption of new sections. 
Donald C. Green, Chief Financial Officer, has determined that for each year of 
the first five years the proposal is in effect there will be no additional 
fiscal implications to state or local government or small businesses. 
Margene Caffey, director, Human Resources, has determined that for each year of 
the first five years the proposal is in effect the public benefit anticipated is 
the adoption of rules that protect persons receiving MHMR services by 
prohibiting individuals convicted of serious offenses from attaining employment 
with or volunteer status at TDMHMR, community MHMR centers, and their 
contractors. There is no anticipated local employment impact. There is no 
additional economic cost to persons who are required to comply with the sections 
as proposed. 
Written comments on the proposal may be sent to Linda Logan, director, Policy 
Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 
12668, Austin, Texas 78711-2668, within 30 days of publication. 
These sections are proposed under the Texas Health and Safety Code, sec.532.015, 
which provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority, and the Texas Health and Safety Code, sec.250.002(d) and 
sec.533.007, which permit TDMHMR to adopt rules relating to the processing and 
use of criminal history information. 
These sections would affect the Texas Health and Safety Code, Chapter 250 and 
sec.533.007, and the Texas Government Code, sec.411.115. 
sec.404.301.Purpose.
sec.404.302.Application.
sec.404.303.Definitions.
sec.404.304.Pre-employment Criminal History Clearance.
sec.404.305.Requesting a Criminal History Clearance.
sec.404.306.Criminal History Report.
sec.404.307.Self-Reporting and Subsequent Criminal History Checks.
sec.404.308.References.
sec.404.309.Distribution.
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 April 1, 1998.
TRD-9804595
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: May 17,1998
For further information, please call: (512) 206-4516

CHAPTER 414.Protection of Individuals and Individual Rights 
SUBCHAPTER K.Criminal History Clearances 
The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes 
new sec.sec.414.501 - 414.509, concerning criminal history clearances. The 
repeals of sec.sec.404.301 - 404.309 of Chapter 404, Subchapter H, concerning 
the same, which would replace the repealed sections, are contemporaneously 
proposed in this issue of the Texas Register. 
The new sections implement Senate Bills 190 and 262 of the 75th Legislature, 
which amend sec.250.006 of the Texas Health and Safety Code by adding offenses' 
for which a conviction constitutes an absolute bar to employment with or 
volunteer status at TDMHMR, community MHMR centers, and their contract providers 
of residential services. 
Donald C. Green, Chief Financial Officer, has determined that for each year of 
the first five years the new sections as proposed are in effect there will be no 
additional fiscal implications to state or local government or small businesses. 
Margene Caffey, director, Human Resources, has determined that for each year of 
the first five years the new sections as proposed are in effect the public 
benefit anticipated is the protection of persons receiving MHMR services by 
prohibiting individuals convicted of serious offenses from attaining employment 
with or volunteer status at TDMHMR, community MHMR centers, and their contract 
providers of residential services. There is no anticipated local employment 
impact. There is no additional economic cost to persons who are required to 
comply with the sections as proposed. 
Written comments on the proposal may be sent to Linda Logan, director, Policy 
Development, Texas Department of Mental Health and Mental Retardation, P.O. Box 
12668, Austin, Texas 78711-2668, within 30 days of publication. 
These sections are proposed under the Texas Health and Safety Code, sec.532.015, 
which provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority, and the Texas Health and Safety Code, sec.250.002(d) and 
sec.533.007, which permit TDMHMR to adopt rules relating to the processing and 
use of criminal history information. 
These sections would affect the Texas Health and Safety Code, Chapter 250 and 
sec.533.007, and the Texas Government Code, sec.411.115. 

sec.414.501.Purpose.
The purpose of this subchapter is to protect individuals receiving services 
provided by a facility, community center, or contract provider of residential 
services and the property of those individuals. To do so, this subchapter:
(1) describes the process by which criminal history clearances are conducted of 
applicants for employment with facilities, community centers, and those 
providers of residential services which contract with facilities or community 
centers; 
(2) describes the process by which criminal history clearances are conducted of 
persons applying for volunteer status at a facility or community center; and 
(3) requires facilities, community centers, and providers to have an effective 
self-reporting procedure for employees and volunteers. 

sec.414.502.Application.
(a) This subchapter applies to: 
(1) facilities (which includes the department's Central Office in Austin); 
(2) community centers; and 
(3) providers that contract with facilities or community centers to deliver 
residential services to individuals with mental illness or mental retardation, 
including residences certified by the intermediate care facilities for the 
mentally retarded or persons with a related condition (ICF/MR or ICF/MR/RC) 
program that are owned and operated by a community center. 
(b) This subchapter does not apply to residences certified by the ICF/MR or 
ICF/MR/RC program that are owned by a community center but operated under 
contract by a private provider, or that are privately owned and operated. 
Criminal history clearances are conducted for such residences in accordance with 
rules of the Texas Department of Human Services (TDHS) in 40 TAC sec.sec.76.101- 
76.106. 
(c) The provisions of this subchapter do not apply to entities and providers 
that must otherwise conduct criminal history clearances as required by the Texas 
Health and Safety Code, Chapter 250. 

sec.414.503.Definitions.
The following words and terms, when used in this subchapter, have the following 
meanings, unless the context clearly indicates otherwise: 
(1) Applicant - At the employer's discretion, a person: 
(A) who has applied for a position as an employee or volunteer; 
(B) who is one of a select number of final candidates for a position as an 
employee or volunteer; or 
(C) to whom the employer intends to offer a position as an employee or 
volunteer. 
(2) Community center - A community mental health and mental retardation center 
established under the Texas Health and Safety Code, Title 7, Chapter 534. 
(3) Conviction - The adjudication of guilt, plea of guilty or nolo contendere, 
or the assessment of probation or community supervision for a violation of the 
Penal Code. 
(4) Department - The Texas Department of Mental Health and Mental Retardation 
(TDMHMR). 
(5) Facility - Any state hospital, state school, state-operated community 
services (SOCS), or state center operated by the department, or the department's 
Central Office in Austin. 
(6) IS Coordinator, Criminal History Record Information (CHRI) - The person 
responsible for receiving criminal history requests and FBI cards, processing 
them through the appropriate agencies, and forwarding the reports to the 
requestor. 
(7) Provider - Any entity or person which contracts with a facility or community 
center to deliver residential services to individuals with mental illness or 
mental retardation who have been furloughed or discharged from a facility or 
community center as described in the Texas Government Code, sec.411.115(b). This 
does not include private ICF/MR or ICF/MR/RC providers; TDHS is responsible for 
conducting criminal history clearances for those entities. 
(8) Professional clinical intern - A person who is enrolled in a formal clinical 
rotation at a university/college in a professional training program accredited 
by the appropriate licensing authority or board of examiners, or is engaged in a 
recognized graduate level, clinical professional degree program. Professional 
degree programs include, but are not limited to, nursing, pharmacy, physical 
therapy, occupational therapy, medicine, clinical psychology, social work, and 
dentistry. 

sec.414.504.Pre-employment Criminal History Clearance.
(a) A facility, community center, or provider must conduct a pre-employment 
criminal history clearance of all applicants for employment or volunteer status. 
(b) Providers that request criminal history record information through a private 
agency and providers that must otherwise conduct criminal history clearances as 
required by the Texas Health and Safety Code, Chapter 250, must provide evidence 
of compliance with the Texas Health and Safety Code, Chapter 250, to the 
facility or community center with which it contracts.
(c) For professional clinical interns, a memorandum of understanding or 
affiliation agreement (MOA) must exist between the facility or community center 
and the university/college that specifically states that: 
(1) responsibility for the care of individuals receiving services is retained by 
the facility or community center; and 
(2) the university/college is responsible for conducting a reasonable background 
check of the intern. To facilitate this check, the university/college may elect 
to include a provision in the MOA which requires the department to conduct a 
criminal history clearance. 
(d) An applicant who has been convicted of any of the criminal offenses listed 
in subsection (g) of this section may not be employed or assigned volunteer 
status by the facility, community center, or provider. Each facility, community 
center, or provider may determine other criminal offenses, not listed in 
subsection (g) of this section, for which a conviction may be considered a 
contraindication to employment or volunteer status at that entity. 
(e) The facility, community center, or provider must inform applicants in 
writing at the time that application is made: 
(1) that a pre-employment/volunteer criminal history clearance will be 
conducted; 
(2) of the types of criminal offenses for which a conviction would bar 
employment or volunteer status; and 
(3) that conviction of other types of criminal offenses may be considered a 
contraindication to employment or volunteer status at that entity. 
(f) An applicant may be employed on a temporary or interim basis without a 
criminal history clearance if an emergency exists in which there is a risk to 
the health and safety of individuals receiving services as a result of unfilled 
positions or in which the operations of the organization are severely impaired 
as determined by the chief executive officer of the facility, community center, 
or provider. 
(1) The applicant shall furnish the employer with an affidavit stating that the 
applicant has not been convicted of any of the criminal offenses listed in 
subsection (g) of this section or any criminal offense which that employer has 
determined is a contraindication to employment. The affidavit shall be kept in 
the applicant's file. A sample affidavit may be obtained by contacting Human 
Resource Services, TDMHMR, P.O. Box 12668, Austin, Texas 78711-2668. 
(2) Within 72 hours of the time the person is employed on a temporary or interim 
basis, the facility, community center, or provider shall request a criminal 
history clearance of that person as described in sec.414.505 of this title 
(relating to Requesting a Criminal History Clearance.) 
(3) If the results of the criminal history clearance reveal a conviction for any 
of the criminal offenses listed in subsection (g) of this section or for any 
criminal offense which the employer has determined is a contraindication to 
employment, the facility, community center, or provider shall dismiss the person 
as unemployable immediately upon receipt of the criminal history report. 
(4) An applicant may not receive volunteer placement on a temporary or interim 
basis pending a criminal history clearance. 
(g) Consistent with the Texas Health and Safety Code, sec.250.006, convictions 
of criminal offenses which constitute an absolute bar to employment include: 
(1) criminal homicide (Penal Code, Chapter 19); 
(2) kidnapping and false imprisonment (Penal Code, Chapter 20); 
(3) indecency with a child (Penal Code, sec.21.11); 
(4) sexual assault (Penal Code, sec.22.011); 
(5) aggravated assault (Penal Code, sec.22.02); 
(6) injury to a child, elderly individual, or disabled individual (Penal Code, 
sec.22.04); 
(7) abandoning or endangering a child (Penal Code, sec.33.041); 
(8) aiding suicide (Penal Code, sec.22.08); 
(9) agreement to abduct from custody (Penal Code, sec.25.031); 
(10) sale or purchase of a child (Penal Code, sec.25.08); 
(11) arson (Penal Code, sec.28.02); 
(12) robbery (Penal Code, sec.29.02); and 
(13) aggravated robbery (Penal Code, sec.29.03). 
(h) Consistent with the Texas Government Code, sec.411.115(e), the facility, 
community center, or provider shall destroy conviction information from the 
Texas Department of Public Safety (TDPS) or the Federal Bureau of Investigation 
(FBI), whether obtained through the department or a private agency, after an 
employment/volunteer decision has been made or personal action has been taken. 

sec.414.505.Requesting a Criminal History Clearance.
(a) Facilities must submit criminal history clearance requests to the IS 
Coordinator, Criminal History Records Information (CHRI) in the department's 
Central Office in Austin. Community centers and providers (through the community 
center with which it contracts) may submit requests to the IS Coordinator, 
Criminal History Records Information (CHRI) or may choose to contract with a 
private agency, as permitted by the Texas Health and Safety Code, 250.002(b), to 
conduct criminal history clearances. 
(b) The department may charge a fee to community centers and providers (through 
the community center with which it contracts) which equals the fee that TDPS or 
the FBI charges the department to conduct a criminal history clearance. 
(c) The Criminal History Record Information Request Form HR-44 is used to submit 
requests to the IS Coordinator, CHRI, for criminal history clearances. The 
request is submitted via confidential electronic mail, confidential fax, or 
mail. Copies of the HR-44 form may be obtained by contacting TDMHMR, IS 
Coordinator, Criminal History Records Information, P.O. Box 12668, Austin, Texas 
78711-2668. The form may be duplicated. 
(d) Applicants who have lived outside the State of Texas at any time during the 
two years preceding the application for employment/volunteer status are cleared 
through the FBI using a complete set of fingerprints on the official FBI card 
which may be obtained from Human Resource Services, TDMHMR, P.O. Box 12668, 
Austin, TX 78711-2668. There is a charge for obtaining this information. 

sec.414.506.Criminal History Report.
(a) The IS Coordinator, Criminal History Records Information (CHRI) will forward 
criminal history reports immediately to the requesting facility or community 
center. 
(b) Facilities and community centers will have written policies and procedures 
consistent with this subchapter that describe how information obtained through a 
criminal history clearance will be processed and later destroyed. The policies 
and procedures must include: 
(1) processes that protect the confidentiality of criminal history reports 
pursuant to the Texas Health and Safety Code, sec.250.007; 
(2) the notification of an applicant if a conviction is revealed; and 
(3) information on how an applicant can address inaccuracies of a report (i.e., 
the opportunity to be heard by Texas Department of Public Safety (TDPS), 
pursuant to Texas Health and Safety Code, sec.250.005(b)) if the applicant 
believes he/she has been unjustly denied employment or volunteer status as a 
result of an inaccurate criminal history report. 
(c) An applicant whose report identifies a conviction of any of the criminal 
offenses listed in sec.414.504(g) of this title (relating to Pre-employment 
Criminal History Clearance) or a conviction of any criminal offense which the 
employer considers to be a contraindication to employment or volunteer status 
must be notified in writing: 
(1) of the TDPS or FBI report of the conviction; 
(2) of the applicant's ineligibility for employment or volunteer status because 
of the conviction; and 
(3) how to address inaccuracies of a report (i.e., the opportunity to be heard 
by Texas Department of Public Safety (TDPS), pursuant to Texas Health and Safety 
Code, sec.250.005(b)) if the applicant believes he/she has been unjustly denied 
employment or volunteer status as a result of an inaccurate criminal history 
report. 

sec.414.507.Self-Reporting and Subsequent Criminal History Checks.
(a) Following employment with or attaining volunteer status at a facility, 
community center, or provider, all employees and volunteers shall report to a 
person designated by that facility, community center, or provider any subsequent 
convictions or offenses for which they are charged. 
(b) A facility, community center, or provider may conduct criminal history 
checks on any employee or volunteer at any time it deems appropriate. Requests 
by a facility for subsequent criminal history checks must be coordinated with 
the director of human resource services at the department's Central Office prior 
to submission. 
(c) Each facility, community center, and provider shall develop written policies 
and procedures consistent with this subchapter describing how it will respond to 
information obtained through self-reporting and subsequent criminal history 
checks. 
(1) Pursuant to the Texas Health and Safety Code, sec.533.007(i), adverse 
personnel action may not be taken if the information received pertains to arrest 
warrants or wanted persons notices. 
(2) If the information reflects a conviction for an offense: 
(A) listed in sec.414.504(g) of this title (relating to Pre-employment Criminal 
History Clearance), then consideration may be given to any contention by the 
employee/volunteer concerning errors of fact or identity in the report. While 
the employee/volunteer is attempting to rectify the accuracy of the information, 
the employee/volunteer shall be removed from direct contact with individuals 
receiving services. If the employee or volunteer fails to rectify the accuracy 
of the information, as provided by Texas Health and Safety Code, sec.250.005(b), 
then the facility. community center, or provider shall immediately dismiss the 
employee or volunteer. 
(B) considered to be a contraindication to employment or volunteer status, then 
consideration may be given to mitigating circumstances. 

sec.414.508.References.
The following documents were referenced in this subchapter: 
(1) 40 TAC sec.sec.76.101-76.106; 
(2) Texas Health and Safety Code, Title 7, Chapter 534; 
(3) Texas Government Code, sec.411.115; 
(4) Penal Code, Chapters 19-22, 25, and 28-29; 
(5) Texas Health and Safety Code, Chapter 250; and 
(6) Texas Health and Safety Code, sec.533.007. 

sec.414.509.Distribution.
(a) This subchapter shall be distributed to: 
(1) members of the Texas MHMR Board; 
(2) members of the Mental Retardation Advisory Council; 
(3) members of the Mental Health Planning and Advisory Council; 
(4) executive, management, and program staff in Central Office; 
(5) superintendents and directors of facilities and state-operated community 
services; 
(6) board chairpersons and executive directors of all community centers; 
(7) advocacy organizations; and 
(8) those individuals who have requested to receive copies of departmental 
rules. 
(b) A copy of this subchapter shall be made available upon request to: 
(1) any person who applies for employment or volunteer status with the 
department, community center, or provider; 
(2) any employee or volunteer of the department, community center, or provider; 
(3) the counsel of record of an applicant, employee, or volunteer; 
(4) any individual with mental illness or mental retardation; 
(5) the legally authorized representative of any individual with mental illness 
or mental retardation; 
(6) the counsel of record of any individual with mental illness or mental 
retardation; or 
(7) any interested person. 
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 April 1, 1998.
TRD-9804594
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Earliest possible date of adoption: May 17,1998
For further information, please call: (512) 206-4516

TITLE 34. PUBLIC FINANCE
PART III. Teacher Retirement System of Texas
CHAPTER 41.Insurance
34 TAC sec.41.12
The Teacher Retirement System of Texas (TRS) proposes amendments to sec.41.12 
concerning the certification of public school employees group health coverage by 
TRS. New law passed by the 75th Legislature found at sec.22.004 of the Education 
Code provides that the TRS Board of Trustees shall adopt rules to determine 
whether a school district's coverage is comparable to the basic coverage 
provided under the Texas Employees Uniform Group Insurance benefits Act. It is a 
requirement for each school district to provide the information outlined in the 
amended section. The amendments provide clarification as to the methodology and 
consequences of the certification process. 
The justification for TRS to adopt this rule is to provide notice to those who 
must comply with the law and rules as to how the decisions will be made on 
certification. It also informs the districts the consequences of the 
certification process. 
Ronnie Jung, TRS Chief Financial Officer, has determined that for the first 
five-year period the section is in effect, there will be no fiscal implications 
for state and local government as a result of enforcing or administering the 
section. 
Mr. Jung also has determined that for each year of the first five years the 
section is in effect that the public benefit anticipated from the section is 
that more relevant data will be submitted to TRS for the determination of 
comparability. There will be no effect on small business. There may be an 
economic cost to persons who are required to comply with the proposed section. 
Comments on the proposal must be submitted in writing to: Charles L. Dunlap, 
Executive Director, Teacher Retirement System, 1000 Red River, Austin, Texas 
78701-2698, within 30 days of publication in the Texas Register . 
The amendments are proposed under the Government Code, Chapter 825, sec.825.102, 
which provides the Board of Trustees of the Teacher Retirement System with the 
authority to adopt rules for the administration of the funds of the retirement 
system. In addition, the Education Code, sec.22.004 provides the requirements on 
the substance of the rule and on submitting the certification. 
Education Code,sec.22.004, is affected by this proposed action. 

sec.41.12. Certification of Insurance Coverage 
(a) The Executive Director of TRS shall determine the comparability of a school 
district's group health coverage to the coverage provided under the Texas 
Employees Uniform Group Insurance Benefits Act (Texas Insurance Code, Article 
3.50-2). <nl>As required by the Education Code, sec.22.004 each district shall 
make available to its employees group health coverage provided by a risk pool 
established by one or more school districts under the Local Government Code, 
Chapter 172 or under a policy of insurance or group contract issued by an 
insurer, a company subject to the Insurance Code, Chapter 20, or a health 
maintenance organization under the Texas Health Maintenance Organization Act 
(Insurance Code, Chapter 20A). The coverage must meet the substantive coverage 
requirements of Insurance Code, Article 3.51-6 and any other law applicable to 
group health insurance policies or contracts issued in this state. The coverage 
must include major medical treatment but may exclude experimental diagnostic 
procedures. In this subsection, "major medical treatment" means a medical, 
surgical, or diagnostic procedure for illness or injury. The coverage may 
include managed care or preventive care and must be comparable to the basic 
health coverage provided under the Texas Employees Uniform Group Insurance 
Benefits Act (Insurance Code, Article 3.50-2). In addition to these 
requirements,<ol> [In making that decision ] the following factors shall be 
considered <nl>in determining comparability:<ol> 
(1)-(7) (No change.) 
(b) (No change.) 
(c) TRS staff, under the direction of the executive director, will develop a 
methodology and criteria for comparison determination. <nl> This methodology 
will include an evaluation of relevant variables with respect to applicable 
factors stated in subsection (a) of this section, including the following 
related to the scope of coverage:<ol>
<nl>(1)<ol> <nl> types of plans available in each area;<ol>
<nl>(2)<ol> <nl>access to providers, including specialists; and <ol>
<nl>(3)<ol> <nl>provider network availability and utilization. <ol>
<nl>(A)<ol> <nl> To provide for the reasonable and accurate consideration of 
these variables, a determination of each plan's benefit replacement ratio to the 
basic Texas Employees Uniform coverage will be used. Benefit replacement ratio 
means the ratio of benefits projected to be paid by the plan to the projected 
incurred cost of the services provided. Benefit replacement ratio determinations 
will involve review of applicable factors set forth in the Education Code, sec. 
22.004(a) in connection with plan information provided by the district. A plan 
will be certified as comparable if it has a benefit replacement ratio not more 
than five (5) percentage points below the ratio of the applicable benchmark plan 
under the Insurance Code, Article 3.50-2. <ol>
<nl>(B)<ol> <nl>The benchmark plan will reflect the basic health coverage 
provided under the Texas Employees Uniform Group Insurance Benefits Act 
(Insurance Code, Article 3.50-2)("Act"). Specifically the benchmark plan is the 
plan under the Act (or two plans if, in accordance with the Act, there is a 
distinction between point of service and out-of-network indemnity plans) most 
prevalent by number of employees participating. If the most prevalent plan(s) 
under the Act are amended, the benchmark plan(s) will be amended 
accordingly.<ol>
<nl>(C)<ol> <nl> Where a district offers multiple plans, some of which are 
determined by this methodology to be comparable, while others are not, the plans 
will be frequency weighted by the number of members therein, such that a 
weighted average will be determined. Accordingly, the school district composite 
comparability will be reported, as described by subsection (e) of this section, 
in addition to the comparability of each individual plan. <ol>
<nl>(D)<ol> <nl>TRS staff and the executive director may consult with qualified 
experts (including a group insurance consultant or actuary as described in the 
Insurance Code, Article 3.50-4, sec. 5(a)(9)) to evaluate comparability, develop 
and use methodology, and determine benefit replacement ratios. <ol>
<nl>(E)<ol> <nl> For reference purposes, the employee cost for each plan will 
also be reported, as described by subsection (e) of this section. However, 
employee cost will not be a factor in determining comparability. <ol>
(d) Each public school district shall report<nl>, using a uniform reporting form 
or method of reporting prescribed by the Teacher Retirement System (TRS),<ol> 
the <nl>district's<ol> [districts] compliance with the Education Code, sec. 
22.004(c), to the executive director of TRS by November 1 of each school year. 
The report must reflect the district group health coverage plan in effect on 
November 1 and must include all information required by statute and any 
additional information requested by TRS staff to complete the certification. 
<nl>A district's failure to submit required information to TRS on or before 
November 1 of each year may result in a TRS report to the Legislative Budget 
Board and the legislature reflecting the district's non-compliance, as described 
in subsection (e) of this section.<ol>
<nl>(e)<ol> <nl>The executive director of the Teacher Retirement System (TRS) 
shall certify whether a district's coverage is comparable to the basic health 
coverage provided under the Texas Employees Uniform Group Insurance Benefits Act 
(Insurance Code, Article 3.50-2). If the executive director of TRS determines 
that the group health coverage offered by a district is not comparable, the 
executive director shall report that information to the district and to the 
Legislative Budget Board. The executive director shall submit a report to the 
legislature not later than January 1 of each odd-numbered year describing the 
status of each district's group health coverage program based on the information 
provided by the district and the certification described herein.<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 April 6, 1998.
TRD-9804748
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed possible date of adoption: May 24, 1998
For further information, please call: (512) 370-0592

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART VII. Texas Commission on Law Enforcement Officer
Standards and Education
CHAPTER 211. Administration Division
37 TAC sec.211.9
The Texas Commission on Law Enforcement Officer Standards and Education proposes 
to amend sec.211.9, concerning contested cases and hearings. The amendment 
allows the commission to enter a default judgment in contested cases when the 
licensee fails to appear for a hearing. 
Dr. D.C. Jim Dozier, Executive Director of the Commission, has determined that 
for the first five-year period that the amendments are in effect, there will be 
no fiscal implications for state and local government as a result of enforcing 
or administering the section. 
Dr. Dozier also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
enforcing this section will be more efficient administration of the Commission's 
rules in situations relating to hearings in contested cases. There will be no 
effect on small businesses. There is no anticipated increase in economic costs 
to individuals who are required to comply with the amendments. 
Written comments should be submitted to Dr. D.C. Jim Dozier, Executive Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 6330 U.S. 
Highway 290 East, Suite 200, Austin, Texas 78723, or by facsimile to (512) 406-
3614. 
The amendment is proposed under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the Commission to promulgate rules for the 
administration of Chapter 415; and sec.415.0605, which sets out a licensee's 
entitlement to a hearing in an enforcement action. 
The following statute is affected by the proposed amendment: Texas Government 
Code Annotated, Chapter 415, sec.415.010-General Powers. 

sec.211.9. Contested Cases and Hearings.
<nl>(a)<ol> Contested cases and hearings will be conducted pursuant to the 
provisions of the Administrative Procedure Act, Texas Government Code Annotated, 
Chapter 2001. 
<nl>(b)<ol> If a respondent fails to appear in person or by legal representative 
on the day and at the time set for hearing in a contested case, the 
Administrative Law Judge, upon motion by the petitioner, shall enter a default 
judgment in the matter adverse to the respondent who has failed to attend the 
hearing. 
<nl>(c)<ol> For purposes of this section, default judgment shall mean the 
issuance of a proposal for decision against the respondent in which the factual 
allegations against the respondent contained in the complaint shall be admitted 
as prima facie evidence, and deemed admitted as true, without any requirements 
for additional proof to be submitted by the petitioner. 
<nl>(d)<ol> Any default judgment granted under this section will be entered on 
the basis of the factual allegations contained in the complaint, and upon the 
proof of proper notice to the defaulting party opponent. For purposes of this 
section proper notice means notice sufficient to meet the provisions of the 
Government Code, sec.sec.2001.051, 2001.052, 2001.054 and sec.211.16 of this 
title (relating to Notice); such notice also shall include the following 
language in capital letters in boldface type: FAILURE TO APPEAR AT THE HEARING 
WILL RESULT IN THE ALLEGATIONS AGAINST YOU SET OUT IN THE COMPLAINT BEING 
ADMITTED AS TRUE. 
<nl>(e)<ol> The effective date of this section is September 1, 1998. 
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 April 3, 1998.
TRD-9804705
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Enforcement
Proposed date of adoption: June 12, 1998
For further information, please call: (512) 450-0188

37 TAC sec.211.22
The Texas Commission on Law Enforcement Officer Standards and Education proposes 
to amend sec.211.22, concerning issuance of duplicate or delayed documents. The 
amendments will require the submission of an application form for duplicate 
documents, as well as a $20 nonrefundable application fee.
Dr. D.C. Jim Dozier, Executive Director of the Commission, has determined that 
for the first five-year period that the amendments are in effect, there will be 
no fiscal implications for state and local government as a result of enforcing 
or administering the section. 
Dr. Dozier also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
enforcing this section will be more cost effective administration of commission 
functions. There will be no effect on small businesses. Individuals seeking a 
duplicate of a previously issued document will be required to pay a $20.00 fee 
to receive it. 
Written comments should be submitted to Dr. D.C. Jim Dozier, Executive Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 6330 U.S. 
Highway 290 East, Suite 200, Austin, Texas 78723, or by facsimile to (512) 406-
3614. 
The amendment is proposed under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the Commission to promulgate rules for the 
administration of Chapter 415; and which authorizes the commission to establish 
reasonable and necessary fees for the administration of Chapter 415. 
The following statute is affected by this proposed amendment: Texas Government 
Code Annotated, Chapter 415, sec.415.010-General Powers. 

sec.211.22. Issuance of Duplicate or Delayed Documents. 
(a) If an original license, certificate, acknowledgment, or other document was 
previously issued by the commission, a duplicate of that document may, if the 
document is current and valid, be issued after: 
(1) <nl>an application is submitted<ol> [a request is made in person or in 
writing]; 
(2) (No change.)
(3) payment of a <nl>nonrefundable $20.00 application fee<ol> [$5.00 fee]. 
(b) (No change.) 
(c) The effective date of this section is <nl>September 1, 1998<ol> [February 1, 
1989]. 
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 April 3, 1998.
TRD-9804706
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Enforcement
Proposed date of adoption: June 12, 1998
For further information, please call: (512) 450-0188

CHAPTER 219. Prelicensing and Reactivation Courses, Tests
and Endorsements of Eligibility Division
37 TAC sec.219.78
The Texas Commission on Law Enforcement Officer Standards and Education proposes 
to amend sec.219.78, concerning training standards for issuance of a jailer 
license. The amendment eliminates the independent study, or correspondence, 
option for the basic county corrections course.
Dr. D.C. Jim Dozier, Executive Director of the Commission, has determined that 
for the first five-year period that the amendments are in effect, there will be 
fiscal implications for state and local government as a result of enforcing or 
administering the section. According to Commission records, approximately 11.5% 
(206 out of 1795) of county corrections officers trained in a recent seven month 
period completed the basic county corrections course by correspondence rather 
than the classroom-based option. The approximate average cost of the 40-hour 
correspondence option (calculated from a sample of training providers) is $65. 
The average cost of the current 80-hour classroom-based course (again, 
calculated from a sample of training providers) is $85. Thus, the annualized 
cost increase statewide, should this proposal be adopted, is approximately 
$7,140. However, if the correspondence option is not eliminated by this proposed 
rule change, the Commission plans to modify the correspondence course by adding 
an associated 40-hour classroom component to bring the correspondence option in 
line with the learning objective requirements of the 80-hour classroom-based 
course. The 40-hour classroom component is necessary to teach skills such as 
defensive tactics and to meet other objectives that were recently added to the 
classroom-based course, increasing the instructional time to 80 hours. The 
addition of forty hours of classroom time to the 40-hour correspondence course 
would increase the cost of the new correspondence/classroom option to at least 
as much, if not more than, the current 80-hour classroom option. The elimination 
of the correspondence option may also force county corrections facilities that 
previously required personnel to complete the correspondence option to pay 
overtime or hire additional personnel to replace personnel who are absent for 
training. These costs depend on individual county wage rates and training 
practices for corrections personnel, and cannot be accurately estimated for 
purposes of a fiscal note. 
Dr. Dozier also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
enforcing this section will be clearer understanding on the part of the public 
of the Commission's training standards for those seeking a jailer license and 
more vigorous training standards for county corrections personnel. There will be 
no effect on small businesses. There is no anticipated increase in economic 
costs to individuals who are required to comply with the amendments.
Written comments should be submitted to Dr. D.C. Jim Dozier, Executive Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 6330 U.S. 
Highway 290 East, Suite 200, Austin, Texas 78723, or by facsimile to (512) 406-
3614. 
The amendment is proposed under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the Commission to promulgate rules for the 
administration of Chapter 415, and which authorizes the Commission to set 
minimum training standards for issuance of a jailer license. 
The following statute is affected by this proposed amendment: Texas Government 
Code Annotated, Chapter 415, sec. 415.010 - General Powers. 

sec.219.78. Training Standards for Jailer License.
(a) The training standards for a jailer license are successful completion of: 
(1) the current basic county corrections course; <nl>or<ol> 
(2) [the current basic county corrections independent study course; or] 
[(3)] previous training which has been certified by commission staff to be 
equivalent to the basic county corrections course. 
(b) (No change.) 
(c) The effective date of this section is <nl>September 1, 1998<ol> [June 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 April 3, 1998.
TRD-9804703
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Enforcement
Proposed date of adoption: June 12, 1998
For further information, please call: (512) 450-0188

CHAPTER 221. Proficiency Certificates and Other Post-Basic Licenses Division
37 TAC sec.221.19
The Texas Commission on Law Enforcement Officer Standards and Education proposes 
an amendment to sec.221.19, concerning jailer proficiency certificates. The 
amendments add a requirement for successful completion of a course relating to 
employment issues before a basic jailer proficiency certificate may be issued. 
The course will be provided by the employing agency. This course requirement was 
added by House Bill 1856, passed by the 75th Legislature, which amended 
sec.415.062 of the Government Code. 
Dr. D.C. Jim Dozier, Executive Director of the commission, has determined that 
for the first five-year period that the amendments are in effect, there will be 
fiscal implications for state and local government as a result of enforcing or 
administering the section. Law enforcement agencies that wish their commissioned 
peace officers to receive proficiency certificates will have to provide them 
with a course relating to employment issues. Many agencies already provide their 
officers with such information as part of their orientation; the cost of 
developing and delivering such a course will vary widely and cannot be 
accurately determined for the purpose of a fiscal note. 
Dr. Dozier also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
enforcing this section will be an increased understanding and awareness of 
federal and state statutes that relate to employment issues affecting county 
jailers. There will be no effect on small business. There is no anticipated 
increase in economic costs to individuals who are required to comply with the 
amendments. 
Written comments should be submitted to Dr. D.C. Jim Dozier, Executive Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 6330 U.S. 
Highway 290 East, Suite 200, Austin, Texas 78723, or by facsimile to (512) 406-
3614. 
The amendment is proposed under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the Commission to promulgate rules for the 
administration of Chapter 415, and which authorizes the Commission to set 
requirements for a basic jailer certificate; and by sec.415.062, which requires 
courses relating to employment issues before a basic proficiency certificate may 
be issued. 
The following statute is affected by this proposed amendment: Texas Government 
Code Annotated, Chapter 415, sec.415.010 - General Powers. 

sec.221.19. Jailer Proficiency.
(a) (No change.) 
(b) The <nl>requirements <ol>[requirement] for a basic jailer certificate 
<nl>include:<ol> 
<nl>(1)<ol> [is] one year of experience as a jailer<nl>; and<ol> 
<nl>(2)<ol> successful completion of a course of instruction provided by the 
employing agency on federal and state statutes that relate to employment issues 
affecting peace officers and county jailers, including: 
<nl>(A)<ol> civil service; 
<nl>(B)<ol> compensation, including overtime compensation, and vacation time; 
<nl>(C)<ol> personnel files and other employment records;
<nl>(D)<ol> management-employee relations in law enforcement organizations; 
<nl>(E)<ol> work-related injuries; 
<nl>(F)<ol> complaints and investigations of employee misconduct; and 
<nl>(G)<ol> disciplinary actions and the appeal of disciplinary action. 
(c)-(d) (No change.) 
(e) the effective date of this section is <nl>September 1, 1998<ol> [November 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 April 3, 1998.
TRD-9804704
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Enforcement
Proposed date of adoption: June 12, 1998
For further information, please call: (512) 450-0188

CHAPTER 225. Contract Jailer Certification Division
37 TAC sec.225.3, sec.225.11
The Texas Commission on Law Enforcement Officer Standards and Education proposes 
to amend sec.225.3 and sec.225.11, concerning minimum standards and enforcement 
for contract jailer certificates. Section 225.3 will be amended to include a new 
section prohibiting a person who has ever been convicted or placed on deferred 
adjudication probation for a misdemeanor or felony offense from being issued a 
contract jailer certificate, if that offense was related to the duties and 
responsibilities of an office requiring such a certificate. The amendments to 
sec.225.11 increase the general suspension term for contract jailer certificates 
from 12 months to five years, bringing this term in line with the general 
suspension term for Commission licenses. The amendments also allow the 
Commission to suspend the certificate of a person convicted of a Class C 
Misdemeanor that was directly related to the duties and responsibilities of 
their office as a contract jailer. 
Dr. D.C. Jim Dozier, Executive Director of the Commission, has determined that 
for the first five-year period that the amendments are in effect, there will be 
no fiscal implications for state and local government as a result of enforcing 
or administering the sections. 
Dr. Dozier also has determined that for each year of the first five years the 
amendments are in effect, the public benefit anticipated as a result of 
enforcing this section will be higher ethical standards for Commission 
certificate holders, and thus increased public safety. There will be no effect 
on small businesses. There is no anticipated increase in economic costs to 
individuals who are required to comply with the amendments. 
Written comments should be submitted to Dr. D.C. Jim Dozier, Executive Director, 
Texas Commission on Law Enforcement Officer Standards and Education, 6330 U.S. 
Highway 290 East, Suite 200, Austin, Texas 78723, or by facsimile to (512) 406-
3614. 
The amendments are proposed under Texas Government Code Annotated, Chapter 415, 
sec.415.010, which authorizes the Commission to promulgate rules for the 
administration of Chapter 415, and under Texas Government Code Annotated, 
Chapter 511, sec.511.0092, which requires a county, municipality or private 
vendor operating a facility which holds out-of-state inmates to require all 
employees at the facility to maintain certification as required by the 
Commission. 
The following statute is affected by this proposed amendment: Texas Government 
Code Annotated, Chapter 415, sec.415.010-General Powers; and Chapter 511, 
sec.511.0092 - Contracts for Out-of-State Inmates. 

sec.225.3. Minimum Standards for Contract Jailer Certificate. 
(a) An applicant for a temporary contract jailer certificate or a contract 
jailer certificate must: 
(1)-(5) (No change.) 
<nl>(6)<ol> not have ever been convicted of a misdemeanor or felony offense or 
placed on deferred adjudication community supervision for a misdemeanor or 
felony offense, if the offense directly relates to the duties and 
responsibilities of any office requiring such certificate. In determining 
whether a criminal offense directly relates to such office, the commission shall 
consider: 
<nl>(A)<ol> the nature and seriousness of the crime; 
<nl>(B)<ol> the relationship of the crime to the purpose for requiring a 
certificate for such office; 
<nl>(C)<ol> the extent to which a certificate might offer an opportunity to 
engage in further criminal activity of the same type as that in which the person 
had previously been involved; and 
<nl>(D)<ol> the relationship of the crime to the ability, capacity or fitness 
required to perform the duties and discharge the responsibilities of such 
office; 
<nl>(7)<ol> [(6)] be of good moral character; 
<nl>(8)<ol> [(7)] be subjected to a thorough, comprehensive background 
investigation and be interviewed personally prior to appointment by 
representatives of the employing contract jail; 
<nl>(9)<ol> [(8)] meet one of the following minimum educational requirements; 
(A) be a high school graduate; 
(B) have passed a general educational development (GED) test indicating high 
school graduation level; or 
(C) have 12 semester hours credit from an accredited college or university; 
<nl>(10)<ol> [(9)] be examined by a licensed physician and be declared in 
writing within 180 days before the date of employment by the contract jail to 
show no trace of drug dependency or illegal drug use after a physical 
examination, blood test, or other medical test administered by a licensed 
physician selected by the employing contract jail; 
<nl>(11)<ol> [(10)] be examined by a licensed psychologist or psychiatrist and 
be declared in writing by that professional within 180 days before the date of 
employment by the contract jail to be in satisfactory psychological and 
emotional health appropriate to the job of contract jailer. The psychological 
examination must be conducted pursuant to professionally recognized standards 
and methods by a licensed psychologist or psychiatrist, selected by the 
employing contract jail; 
<nl>(12)<ol> [(11)] not have been discharged from any military service under 
less than honorable conditions, including, specifically; 
(A) under other than honorable conditions; 
(B) bad conduct; 
(C) dishonorable; or 
(D) any other characterization of service indicating bad character; 
<nl>(13)<ol> [(12)] not have had any commission license or certificate denied by 
final order or revoked, or have a suspension or voluntary surrender of any 
commission license or certificate currently in effect; and 
<nl>(14)<ol> [(13)] not violate any commission rule. 
(b)-(f) (No change.) 
(g) The effective date of this section is <nl>September<ol> [March] 1, 1998. 

sec.225.11. Enforcement-Contract Jailer Certificate.
(a)-(c) (No change.) 
(d) [Unless otherwise specified, the term of suspension shall be 12 months. The 
exceptions are as follows:] 
[(1)] If a judgment and sentence is entered resulting in a misdemeanor 
conviction <nl>above the level of a Class C Misdemeanor, the term of suspension 
shall be five years.<ol> [and sentence of either a fine, a jail term or both, or 
community supervision, then, regardless of the actual sentence imposed, the term 
of suspension shall be essentially equal to the maximum potential confinement 
applicable to that offense, except for DWI, for which the term of suspension 
shall be 24 months.] 
<nl>(e)<ol> [(2)] If the court's judgment or adjudication is deferred for any 
felony or serious misdemeanor and the certificate holder is then placed on 
community supervision, the term of suspension shall be equal to the actual time 
served on community supervision. 
<nl>(f)<ol> The commission may suspend for not less than six months and not more 
than 24 months the certificate of a person convicted of a Class C Misdemeanor 
that was directly related to the duties and responsibilities of office after the 
commission has considered
<nl>(1)<ol> the nature and seriousness of the crime; 
<nl>(2)<ol> the relationship of the crime to the purpose for requiring a 
certificate for such office; 
<nl>(3)<ol> the extent to which a certificate might offer an opportunity to 
engage in further criminal activity of the same type as that in which the person 
had previously been involved; and 
<nl>(4)<ol> the relationship of the crime to the ability, capacity or fitness 
required to perform the duties and discharge the responsibilities of such 
office; 
<nl>(g)<ol> [(e)] If a certificate can be suspended for a community supervision 
or misdemeanor conviction the commissioners may, in their discretion and upon 
proof of mitigating factors, probate all or part of the suspension term during a 
probation term of up to twice the maximum suspension term, or issue a written 
reprimand in lieu of suspension. 
(1) A suspension or probation may be ordered to run concurrently or 
consecutively with any other suspension or probation. The beginning date of a 
probation must be within the term of suspension. 
(2) If a certificate can be suspended for any other reason, the commission, 
through its executive director may either: 
(A) probate all or part of the suspension term during a probation term of up to 
twice the maximum suspension term; or 
(B) issue a written reprimand in lieu of suspension. 
(3) If probated, a suspension may not be probated for less than six months. 
(4) The commission may impose reasonable terms of probation. 
(5) A probated certificate remains probated until: 
(A) the term of suspension has expired; 
(B) all other terms of probation have been fulfilled; 
(C) a written request for reinstatement has been received by the commission from 
the certificate holder unless the probation has been revoked by the commission 
for violation of probation; or 
(D) until revoked. 
<nl>(h)<ol> [(f)] A suspended certificate remains suspended until: 
(1) the term of suspension has expired and the term of court-ordered community 
supervision has been completed, and a written request for reinstatement has been 
received from the certificate holder; or 
(2) the remainder of the suspension is probated. 
<nl>(i)<ol> [(g)] The commission shall immediately revoke a temporary contract 
jailer certificate issued by the commission if the certificate holder is or has 
been convicted of a felony offense under the laws of this state, another state, 
or the United States as provided in paragraphs (1)-(4) of this subsection. 
(1) A deferred adjudication community supervision is not a felony conviction. 
(2) A person is convicted of a felony when an adjudication of guilt on a felony 
offense is entered against that person by a court of competent jurisdiction 
whether or not: 
(A) the sentence is subsequently probated and the person is discharged from 
community supervision; 
(B) the accusation, complaint, information, or indictment against the person is 
dismissed and the person is released from all penalties and disabilities 
resulting from the offense; 
(C) the cause has been made the subject of an expunction order; or 
(D) the person is pardoned for the offense, unless the pardon is expressly 
granted for subsequent proof of innocence. 
(3) Revocation of a certificate shall permanently disqualify a person from 
certification and a certificate may not be reinstated except when the 
certificate holder proves the facts supporting the revocation have been negated, 
such as: 
(A) the felony conviction has been reversed or set aside on direct or collateral 
appeal, or a pardon based on subsequent proof of innocence has been issued; 
(B) the report alleged to be false or untruthful was found to be truthful; or 
(C) the section was not violated. 
(4) During the direct appeal of any felony conviction, a certificate may be 
conditionally revoked pending resolution of the mandatory direct appeal. The 
certificate will remain revoked unless and until the holder proves that the 
conviction has been set aside on appeal. The holder of any revoked certificate 
may informally petition the executive director for reinstatement of that 
certificate based upon proof by the certificate holder that the facts supporting 
the revocation have been negated. If granted, the executive director shall 
inform the commissioners of such action no later than at their next regular 
meeting. If denied informally, the holder of a revoked certificate may petition 
the commission for a hearing to determine reinstatement based upon the same 
proof. 
<nl>(j)<ol> [(h)] Upon any denial or cancellation of a temporary contract jailer 
certificate or contract jailer certificate, the applicant may request a hearing 
at which the commission must prove sufficient facts to support its action. After 
such hearing, the commission may issue a final order of denial or cancellation. 
<nl>(k)<ol> [(i)] The commission may cancel, suspend, or revoke a temporary 
contract jailer certificate or contract jailer certificate even though it has 
become inactive by some other means, such as expiration. 
<nl>(l)<ol> [(j)] A temporary contract jailer certificate or contract jailer 
certificate holder may permanently or temporarily voluntarily surrender a 
certificate for any reason. 
(1) A certificate holder may voluntarily surrender any certificate by sending, 
or causing to be sent, a signed, written request to the executive director, who 
may accept or reject the request. The signed written request shall indicate that 
the certificate holder understands and has knowledge of the consequences of the 
document being signed. The executive director may accept requests for voluntary 
surrender submitted to the commission in any other form that indicates the 
certificate holder intends to voluntarily surrender the certificate to the 
commission. The executive director may liberally construe the intent of any 
request and may, specifically, construe the surrender of any single commission 
certificate to be a surrender of all other certificates held unless the request 
expressly states otherwise. The surrender should include a summary of the reason 
for the surrender. 
(2) If accepted, the holder is not longer certified under either type of 
surrender effective on the beginning date of the surrender, and until such 
person applies for and meets the requirements of a new certificate. 
(3) A term, or temporary, surrender shall have its ending date stated in the 
request. Any request without a stated ending date shall be construed as a 
permanent surrender. A permanent surrender shall have no ending date. 
<nl>(m)<ol> [(k)] The effective date of the cancellation, suspension, or 
revocation shall be: 
(1) any date agreed to by both parties which is no earlier than the date of the 
rule violation; 
(2) the date of the commission final order is entered in a contested case or the 
date it becomes effective, if that order is appealed. 
<nl>(n)<ol> [(l)] The executive director shall inform the commissioners of any 
denial, reprimand, probation, cancellation, suspension, or revocation no later 
than at their next regular meeting. 
<nl>(o)<ol> [(m)] Once final action has been taken to deny, cancel, reprimand, 
suspend, probate, or revoke a certificate, the commission shall search its files 
and send, by regular mail, notice of the action to the chief administrator of 
any agency shown to have the certificate holder under either current or latest 
appointment. 
<nl>(p)<ol> [(n)] The effective date of this section is <nl>September <ol> 
[March] 1, 1998. 
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 April 3, 1998.
TRD-9804707
Edward T. Laine
Chief, Professional Standards and Administrative Operations
Texas Commission on Law Enforcement Officer Standards and Enforcement
Proposed date of adoption: June 12, 1998
For further information, please call: (512) 450-0188

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 19.Nursing Facility Requirements for Licensure and
Medicaid Certification
SUBCHAPTER U.Surveys, and Visits
40 TAC sec.19.2009
The Texas Department of Human Services (DHS) proposes an amendment to 
sec.19.2009, concerning hearings on complaints of resident neglect and abuse, 
and misappropriation of resident property in Medicaid-certified facilities, in 
its Chapter 19, Nursing Facility Requirements for Licensure and Medicaid 
Certification. DHS is modifying the appeal process provided to nurse aides 
before being listed on the nurse aide registry as having abused or neglected a 
resident or having misappropriated resident property. Currently, nurse aides 
have a two- level process of appeals: the first level is a hearing before a 
hearing officer, and the second is a hearing before an administrative law judge. 
The appeals process is being modified to provide nurse aides with an opportunity 
to show compliance before DHS proposes to enter their names on the registry, 
followed by a hearing before an administrative law judge once DHS has proposed 
entering their names on the registry. The purpose of the amendment to 
sec.19.2009 is to implement a part of this change in the appeal process for 
nurse aides by clarifying that the hearing required by 42 CFR sec.488.335, to be 
provided by the state survey agency prior to referring a nurse aide to the 
registry for abuse or neglect of a resident or misappropriation of resident 
property, is a formal hearing. Also in this issue of the Texas Register, DHS is 
proposing related policy in Chapter 94, Nurse Aides, to implement the rest of 
the changes in the nurse aides appeal process. 
Eric M. Bost, commissioner, has determined that for the first five- year period 
the section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section. 
Mr. Bost also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be to allow DHS to resolve nurse aide cases for a proposed finding 
of abuse, neglect, or misappropriation of a resident's property in a more timely 
manner, which will ensure better protection for nursing facility residents. 
There will be no effect on small businesses, because the section has no adverse 
economic effect at all. There is no anticipated economic cost to persons who are 
required to comply with the proposed section. 
Questions about the content of this proposal may be directed to Renee Clack at 
(512) 231-5800 in DHS's Credentialing Department. Written comments on the 
proposal may be submitted to Supervisor, Rules and Handbooks Unit-216, Texas 
Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, 
within 30 days of publication in the Texas Register The amendment is proposed 
under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes 
the department to administer public and medical assistance programs, and under 
Texas Government Code sec.531.021, which provides the Health and Human Services 
Commission with the authority to administer federal medical assistance funds.
The amendment implements the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.32.001-32.042. 

sec.19.2009.Hearings on Complaints of Resident Neglect and Abuse, and 
Misappropriation of Resident Property in Medicaid-Certified Facilities. 
With the following [two] exceptions, hearings required by 42 Code of Federal 
Regulations sec.488.335 will be conducted by an impartial Long Term Care - 
Regulatory staff person who may hear testimony in person or by telephone for the 
purpose of determining whether sufficient grounds exist for a referral of an 
individual to the appropriate licensure authority and the facility 
administrator. Cases involving nurse aides <nl>and medication aides <ol>will be 
conducted according to the Texas Department of Human Services' rules for 
<nl>formal <ol>[informal] hearings found in Chapter 79 of this title (relating 
to Legal Services). [Cases involving medication aides and nurse aides who are 
also certified as medication aides will be conducted according to the rules for 
formal hearings found in the same chapter.] The hearings referenced in this 
section are not applicable to information provided by the department pursuant to 
42 CFR sec.488.325(h) <nl>(referrals for substandard quality of care)<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 April 6, 1998.
TRD-9804727
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: June 15, 1998
For further information, please call: (512) 438-3765

CHAPTER 94.Registry, Findings; Inquiries
40 TAC sec.94.11
The Texas Department of Human Services (DHS) proposes an amendment to sec.94.11, 
concerning registry; findings; inquiries, in its Chapter 94, Nurse Aides. The 
purpose of the amendment is to modify the appeal process provided by DHS to 
nurse aides before being listed on the nurse aide registry as having abused or 
neglected a resident or having misappropriated resident property. Currently, 
nurse aides have a two- level process of appeals: the first level is a hearing 
before a hearing officer, and the second is a hearing before an administrative 
law judge. The appeals process is being modified to provide nurse aides with an 
opportunity to show compliance before DHS proposes to enter their names on the 
registry, followed by a hearing before an administrative law judge once the DHS 
has proposed entering their names on the registry.
Eric M. Bost, commissioner, has determined that for the first five- year period 
the section is in effect there will be no fiscal implications for state or local 
government as a result of enforcing or administering the section. 
Mr. Bost also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
sections will be to allow DHS to resolve nurse aide cases for a proposed finding 
of abuse, neglect, or misappropriation of a resident's property in a more timely 
manner, which will ensure better protection for nursing facility residents. 
There will be no effect on small businesses, because the section has no adverse 
economic impact at all. There is no anticipated economic cost to persons who are 
required to comply with the proposed section. 
Questions about the content of this proposal may be directed to Renee Clack at 
(512) 231-5800 in DHS's Credentialing Department. Written comments on the 
proposal may be submitted to Supervisor, Rules and Handbooks Unit-216, Texas 
Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, 
within 30 days of publication in the Texas Register The amendment is proposed 
under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes 
the department to administer public and medical assistance programs, and under 
Texas Government Code sec.531.021, which provides the Health and Human Services 
Commission with the authority to administer federal medical assistance funds.
The amendment implements the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.32.001-32.042. 

sec.94.11. Registry; Findings; Inquiries.
(a)-(b) (No change.) 
(c) The department reviews and investigates allegations of abuse, neglect, or 
misappropriation of resident property by a nurse aide employed in a facility. If 
there is a finding of an alleged act of abuse, neglect, or misappropriation of a 
resident property by a nurse aide, the department must comply with the hearings 
process as provided in 42 Code of Federal Regulations sec.488.335. A nurse aide 
must be given written notice by the department of a proposed finding on an 
allegation and may request a hearing. The request must be made, in writing, 
within 30 days of the date the notice is mailed to the nurse aide. The hearing 
is held pursuant to the applicable provisions of the department's <nl>formal 
<ol>[informal] hearing procedures as provided in <nl>sec.sec.79.1601 - 79.1614 
<ol>[sec.sec.79.1001 - 79.1007] of this title (relating to <nl>Formal 
<ol>[Informal] Hearings). [The final hearing decision on a finding is made as 
provided in paragraph (3) of this subsection.] 
[(1) A copy of the department's investigative report concerning the incident 
which is the subject of the hearing must be provided prior to the hearing by the 
hearing officer to the nurse aide, upon written request by the nurse aide. Such 
a report may be used in the preparation of the nurse aide's defense, but is 
otherwise confidential in accordance with Health and Safety Code, Chapter 242, 
Section 127, and no other use and no subsequent release is authorized.] 
[(2) If the nurse aide fails to request a hearing, to appear at the scheduled 
hearing or be represented at the scheduled hearing, the department may reach a 
finding on the allegation without a hearing.] 
[(3) The hearing officer, upon completion of the hearing, must prepare a written 
decision based solely on the evidence presented at the hearing and the statutory 
and regulatory provisions of the Omnibus Budget Reconciliation Act of 1987 as 
amended and this chapter. The decision must state the reasons for the decision.] 
<nl>(d)<ol> <nl> The nurse aide has 30 days from receipt of DHS's notice to 
request a hearing in accordance with sec.sec.79.1601 - 79.1614 of this title 
(relating to Formal Hearings). <ol>
<nl>(1)<ol> <nl> If the nurse aide fails to request a hearing, DHS may reach a 
finding on the allegation. <ol>
<nl>(2)<ol> <nl> If the nurse aide or representative fails to appear at the 
scheduled hearing, the Administrative Law Judge may sustain DHS's finding. <ol>
<nl>(3)<ol> <nl> If a hearing is conducted regarding the finding of an alleged 
act of abuse, neglect, or misappropriation of a resident's property, the nurse 
aide will be informed of the final decision within 120 days from the date the 
request was received by DHS. <ol> 
[(d) If an alleged act of abuse, neglect, or misappropriation of resident 
property by a nurse aide, who also is a permitted medication aide under Chapter 
95 of this title (relating to Medication Aides), violates the rules in this 
chapter and Chapter 95 of this title, the department must comply with the formal 
hearing procedures under sec.sec.79.1601 - 79.1614 of this title (relating to 
Formal Appeals), the Administrative Procedures Act, Title 10 of the Texas 
Government Code, sec.sec.2001.051 et seq, and sec.sec.76.101-76.106 of this 
title (relating to Criminal History Check of Employees in Facilities for Care of 
the Aged and Persons with Disabilities), if applicable. Through the formal 
hearing, determinations are made on both the certificate of nurse aide practice 
and the permit for medication aide practice.] 
<nl>(e)<ol> <nl>If an alleged act of abuse, neglect, or misappropriation of 
resident property by a nurse aide, who also is a permitted medication aide under 
Chapter 95 of this title (relating to Medication Aides), violates the rules in 
this chapter and Chapter 95 of this title (relating to Medication Aides), DHS 
must comply with the formal hearing procedures as required in subsection (d) of 
this section. Through the formal hearing, determinations are made on both the 
certificate of nurse aide practice and the permit for medication aide practice. 
<ol>
<nl>(f)<ol>[(e)] DHS will not make a finding that an individual has neglected a 
resident if the individual demonstrates that the neglect was caused by factors 
beyond the individual's control. 
<nl>(g)<ol>[(f)] The registry, the nurse aide, the administrator of the facility 
where the event occurred, and the administrator of the facility that currently 
employs the nurse aide, if different than the facility in which the incident 
occurred, must be notified of the findings. 
<nl>(h)<ol>[(g)] The registry must include the documented findings involving an 
individual listed on the registry, as well as any brief statement of the 
individual disputing the findings. 
<nl>(i)<ol>[(h)] The information on the registry must be made available to the 
public. 
<nl>(j)<ol>[(i)] <nl>DHS <ol>[The department], in the case of inquiries to the 
registry, must verify if the individual is listed on the registry and must 
disclose any information concerning a finding of neglect, abuse<nl>, <ol>or 
misappropriation of resident property involving an individual listed on the 
registry. <nl>DHS <ol>[It] must also disclose any statement by the individual 
related to the finding or a clear and accurate summary of such a statement. 
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 April 6, 1998.
TRD-9804728
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Proposed date of adoption: June 15, 1998
For further information, please call: (512) 438-3765

PART VI. Texas Commission for the Deaf and Hard of Hearing
CHAPTER 181.General Rules of Practice and Procedures 
SUBCHAPTER A.General Provisions
40 TAC sec.181.41
(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 Commission 
for the Deaf and Hard of Hearing or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Commission for the Deaf and Hard of Hearing is proposing the repeal of 
sec.181.41. Services for Deaf and Hearing-Impaired Individuals, concerning the 
placement of TDDs in selected state agencies and in emergency dispatch 
communication centers in selected units of local governments.
David W. Myers, Executive Director, has determined that for the first five year 
period the proposed section is in effect there will be no fiscal implication for 
state or local government as a result of the repeal of this section.
Mr. Myers has also determined that for the first five year period the public 
benefit anticipated as a result of this repeal will be the elimination of a rule 
which no longer authorizes placements. There will be no effect on small 
businesses. There is no anticipated economic hardship to persons required to 
comply with the section as proposed. 
Comments on this repeal may be submitted to Billy Collins, Texas Commission for 
the Deaf and Hard of Hearing, P.O. Box 12904, Austin, Texas 78711-2904. 
This repeal is proposed under the Human Resources Code, sec.81.006(b)(3), which 
provides the Texas Commission for the Deaf and Hard of Hearing with the 
authority to adopt rules for administration and programs. 
The proposed repeal affects Texas Administrative Code, Title 40, Chapter 181, 
Subchapter A, sec.181.41. 
sec.181.41.Telecommunication Devices for the Deaf (TDD) Program.
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 April 3, 1998.
TRD-9804647
David W. Myers
Executive Director
Texas Commission for the Deaf and Hard of Hearing
Earliest possible date of adoption: May 17,1998
For further information, please call: (512) 407-3250

SUBCHAPTER F.Fees
40 TAC sec.181.810
(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 Commission 
for the Deaf and Hard of Hearing or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Commission for the Deaf and Hard of Hearing is proposing the repeal of 
sec.181.810, concerning establishing prices for TCDHH publications. 
David W. Myers, Executive Director, has determined that for the first five year 
period the proposal is in effect there will be no fiscal implication for state 
or local government as a result of the repeal of this section. 
Mr. Myers has also determined for the first five year period that the public 
benefit anticipated as a result of this repeal will be the elimination of 
duplicate rules. There will be no effect on small businesses. There is no 
anticipated economic hardship to persons required to comply with the section as 
proposed.
Comments on this repeal may be submitted to Billy Collins, Texas Commission for 
the Deaf and Hard of Hearing, P.O. Box 12904, Austin, Texas 78711-2904. 
This repeal is proposed under the Human Resources Code, sec.81.006(b)(3), which 
provides the Texas Commission for the Deaf and Hard of Hearing with the 
authority to adopt rules for administration and programs.
The proposed repeal affects Texas Administrative Code, Title 40, Chapter 181, 
Subchapter E, sec.181.810. 

sec.181.810.Publications.
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 April 3, 1998.
TRD-9804646
David W. Myers
Executive Director
Texas Commission for the Deaf and Hard of Hearing
Earliest possible date of adoption: May 17,1998
For further information, please call: (512) 407-3250

40 TAC sec.181.840
(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 Commission 
for the Deaf and Hard of Hearing or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Commission for the Deaf and Hard of Hearing is proposing the repeal of 
sec.181.840, concerning the establishment of a sliding fee scale used for 
interpreter services that are provided in non-governmental settings and that are 
reimbursed by the Commission. 
David W. Myers, Executive Director, has determined that for the first five year 
period the proposal is in effect there will be no fiscal implication for state 
or local government as a result of the repeal of this section.
Mr. Myers has also determined that for the first five year period the public 
benefit anticipated as a result of this repeal will be the elimination of a rule 
which no longer has authority. There will be no effect on small businesses. 
There is no anticipated economic hardship to persons required to comply with the 
section as proposed. 
Comments on this repeal may be submitted to Billy Collins, Texas Commission for 
the Deaf and Hard of Hearing, P.O. Box 12904, Austin, Texas 78711-2904. 
This repeal is proposed under the Human Resources Code, sec.81.006(b) (3), which 
provides the Texas Commission for the Deaf and Hard of Hearing with the 
authority to adopt rules for administration and programs.
sec.181.840.Sliding Fee Scale for Interpreter 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 April 3, 1998.
TRD-9804645
David W. Myers
Executive Director
Texas Commission for the Deaf and Hard of Hearing
Earliest possible date of adoption: May 17,1998
For further information, please call: (512) 407-3250

PART XX. Texas Workforce Commission
CHAPTER 837.Apprenticeship Training
The Texas Workforce Commission proposes new sec.sec.837.1, 837.2, 837.21, 
837.22, 837.41-837.44, 837.61-837.65, 837.81-837.85, 837.100, 837.101, and 
837.121-837.125, concerning the operation of the Apprenticeship Training 
program. 
New Subchapter A concerns the General Purpose and Definitions. 
Newsec.837.1 of Subchapter A, Scope and Purpose, states that these rules are to 
implement and interpret the requirements of Texas Education Code, Chapter 133 
New sec.837.2 defines words and terms used in these rules. 
New Subchapter B concerns the federal requirements for apprenticeship training.
New sec.837.21 states that all apprenticeship training programs must be 
registered with the U.S. Department of Labor, Bureau of Apprenticeship Training. 
New sec.837.22 states that apprenticeship training programs must comply with 
equality of opportunity procedures set forth in the federal regulations. New 
Subchapter C concerns the funding notice and application process. 
New sec.837.41 sets forth the procedure for providing annual notice of available 
funds, states that the annual notice will include the annual funding formula, 
and states the method for determining the contact-hour rate. 
New sec.837.42 sets forth the procedure for submitting funding applications to 
the Texas Workforce Commission. 
New sec.837.43 describes the two-step allocation process, consisting of Planning 
Allocations and Final Allocations. 
New sec.837.44 describes the procedure for submitting contract amendments. New 
Subchapter D concerns the qualifications for funding. 
New sec.837.61 describes the eligible applicants. 
New sec.837.62 sets forth the priority for allocating funds. 
New sec.837.63 describes the funding qualifications for all apprenticeship 
training programs. 
New sec.837.64 describes the funding qualifications for related instruction 
classes. 
New sec.837.65 describes the funding qualifications for supplementary 
instruction classes. 
New Subchapter E concerns the use of funds and account maintenance. 
New sec.837.81 describes allowable expenditures. 
New sec.837.82 sets forth cost categories. 
New sec.837.83 lists various funding limitations. 
New sec.837.84 describes allowable travel expenses. 
New sec.837.85 sets forth the procedure for maintenance of accounts.
New Subchapter F concerns compliance monitoring. 
New sec.837.100 provides for state monitoring of apprenticeship training 
programs. 
New sec.837.101 provides for corrective action for failure to comply with 
applicable laws, regulations, guidelines and policies. 
New Subchapter G concerns reporting requirements. 
New sec.837.121 requires an apprenticeship training class organization report 
for related instruction. 
New sec.837.122 requires an apprenticeship training class organization report 
for supplementary instruction. 
New sec.837.123 requires expenditure reports. 
New sec.837.124 requires closeout reports. 
New sec.837.125 requires annual performance reports. 
Randy Townsend, Director of Finance, has determined that for the first five-year 
period the rules are in effect, there will be minimal fiscal implications as a 
result of enforcing or administering the rules, beyond the legislative 
appropriation establishing the fund. There will be minimal additional costs to 
the state as a result of enforcing the rules. There will be no reduction in 
costs to the state. There will be no costs to local governments other than those 
attendant to obtaining a grant. 
Alan D. Miller, Director of Workforce Development, has determined that for each 
year of the first five years the rules are in effect, the public benefit 
anticipated as a result of enforcing the rules will be the enhancement of the 
ability of local education agencies to sponsor apprenticeship training programs 
in cooperation with local apprenticeship committees. 
The effect on small businesses is that previous written policies and guidelines 
have been restated as rules for clarity and conciseness. There are no 
anticipated costs to persons who are required to comply with the rules as 
proposed.
Comments on the proposal may be submitted to Diane Lamb, Apprenticeship 
Coordinator, Texas Workforce Commission, 101 East 15th Street, Room 248-T, 
Austin, Texas 78778; fax (512) 305-9640; or e-mail dlamb@twc.state.tx.us.

SUBCHAPTER A.General Purpose and Definitions
40 TAC sec.837.1, sec.837.2
The new rules are proposed under Texas Labor Code, Section 301.061 which 
provides the Texas Workforce Commission with the authority to adopt such rules 
as it deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal.

sec.837.1.Scope and Purpose. 
The purpose of these rules is to implement the provisions of Texas Education 
Code, Chapter 133, related to state-funded apprenticeship training programs. 
These rules may be cited as the Apprenticeship Training Rules. 

sec.837.2. Definitions.
In addition to the definitions relating to apprenticeship training found in 
Texas Education Code, sec.133.001, and in 29 C.F.R. sec.29.2, the following 
words and terms when used in this chapter shall have the following meanings, 
unless the context clearly indicates otherwise.
(1) Administrator's Guide for Apprenticeship Training Programs -- An 
informational supplement to the Apprenticeship Training Rules, referred to in 
this chapter as "the Administrator's Guide." The Administrator's Guide is issued 
annually by the Texas Workforce Commission and provides relevant dates and 
sample application forms with instructions useful in planning and submitting an 
application for Apprenticeship Training Program funding. The Administrator's 
Guide may be obtained from the Texas Workforce Commission, Apprenticeship 
Training, 101 East 15th Street, Austin, Texas 78778-0001. 
(2) Apprentice -- A full-time paid worker, at least 16 years of age except where 
a higher minimum age standard is otherwise fixed by law, who is employed to 
learn a skilled trade under standards of apprenticeship established by the 
Bureau of Apprenticeship Training of the U.S. Department of Labor. 
(3) Apprenticeship agreement -- A written agreement between an apprentice and 
either an employer or an apprenticeship committee acting as agent for 
employer(s), which contains the terms and conditions of the employment and 
training of the apprentice. The elements of an apprenticeship agreement are set 
forth at 29 C.F.R. sec.29.6, and a sample copy is available in the 
Administrator's Guide. 
(4) Apprenticeship committee -- An autonomous local group consisting of members 
appointed by one or more employers of apprentices, or by one or more bargaining 
agents representing members of an apprenticeable trade, or a combination of the 
above. An apprenticeship committee is designated for each apprenticeship 
training program to establish instruction standards and goals for a particular 
craft or crafts, interview and select applicants, and monitor the program and 
apprentices as described in Texas Education Code, sec.133.003. 
(5) Apprenticeship training program -- A training program that provides on-the-
job training, preparatory instruction, supplementary instruction, or related 
instruction in a trade that has been certified as an apprenticeable occupation 
by the Bureau of Apprenticeship Training of the U.S. Department of Labor. The 
program is a structured system of training designed to prepare individuals for 
occupations in skilled trades and crafts by combining training under the 
supervision of experienced journeymen with job-related classroom instruction. 
(6) Bureau of Apprenticeship and Training -- The U.S. Department of Labor, 
Employment and Training Administration, Bureau of Apprenticeship and Training. 
(7) Commission -- The Texas Workforce Commission. 
(8) Federal Regulations -- The U.S. Department of Labor standards for the 
registration of apprenticeship programs found in 29 C.F.R. Part 29. 
(9) Sponsor -- Any public school district or state post-secondary institution, 
collectively referred to in this chapter as "local education agency", operating 
an apprenticeship program pursuant to a contract between the local education 
agency and an apprenticeship committee. 
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 April 6, 1998.
TRD-9804732
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER B.Federal Requirements
40 TAC sec.837.21, sec.837.22
The new rules are proposed under Texas Labor Code, Section 301.061 which 
provides the Texas Workforce Commission with the authority to adopt such rules 
as it deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal. 

sec.837.21. Registration with the Bureau of Apprenticeship and Training. 
(a) All apprenticeship training programs must be registered with the Bureau of 
Apprenticeship and Training to obtain acceptance and recording of such program 
as meeting the basic standards and requirements defined in 29 C.F.R. Part 29. 
Approval of an apprenticeship training program is evidenced by a Certificate of 
Registration issued by the Bureau of Apprenticeship and Training. 
(b) All apprenticeship agreements must be registered with the Bureau of 
Apprenticeship and Training to obtain acceptance and recording of such agreement 
as evidence of the participation of the apprentice in a particular registered 
apprenticeship program. 

sec.837.22. Equal Opportunity Standards. 
Sponsors of apprenticeship training programs must comply with the procedures to 
promote equality of opportunity in registered apprenticeship programs as set 
forth in 29 C.F.R. Part 30.
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 April 6, 1998.
TRD-9804733
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER C.Funding Notice and Application Process
40 TAC sec.sec.837.41-837.44
The new rules are proposed under Texas Labor Code, Section 301.061 which 
provides the Texas Workforce Commission with the authority to adopt such rules 
as it deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal. 

sec.837.41. Notice of Available Funds.
(a) The Commission, upon the recommendation of the Texas Council on Workforce 
and Economic Competitiveness, shall provide annual notice, through publication 
in the Texas Register, to all potential program sponsors of the amount of funds 
available to support apprenticeship training programs for the prospective fiscal 
year. The Apprenticeship Training Program's fiscal year starts on September 1 
and ends on August 31 of each year. 
(b) The notice shall also include the annual funding formula for the prospective 
fiscal year, consisting of the contact-hour rate, the percentage of funds 
available for new programs or established programs not currently receiving 
funds, and any funds set aside for other funding purposes.
(c) The contact-hour rate is the method used to distribute apprenticeship 
training funds to local education agencies that sponsor apprenticeship training 
programs. The contact-hour rate is determined by the statewide total number of 
contact hours of apprenticeship training instruction classes divided into the 
amount of available funds. 

sec.837.42.Applications.
(a) Local education agencies shall mail or hand deliver an original and one copy 
of the Commission's application forms to the Texas Workforce Commission, 
Apprenticeship Training Program, 101 East 15th Street, Austin, TX 78778-0001. 
(b) Faxed copies of the original application will not be accepted.
(c) The Commission shall notify the local education agency of the 
application/contract approval, and shall assign a contract number to be used by 
the local education agency in all correspondence with the Commission.

sec.837.43.Funding Allocation Process.
(a) Funds are distributed to the eligible local education agencies by the 
Commission in a two-step allocation process, consisting of Planning Allocations 
and Final Allocations. 
(b) Planning Allocations. 
(1) All local education agencies shall submit to the Commission their estimated 
contact hours of job-related instruction classes for the prospective fiscal 
year. The estimated contact hours are determined by the number of registered 
apprentices anticipated to enroll in a class, multiplied by the number of hours 
that the class will be conducted during the year. 
(2) The Commission, after determining the preliminary contact-hour rate for each 
local education agency, shall notify all local education agencies of the 
planning allocations for the prospective fiscal year based on the preliminary 
contact-hour rate. This rate is determined by the statewide total estimated 
contact hours of job-related instruction classes divided into the amount of 
funds available to the Commission. 
(3) The planning allocation is a temporary budget. The budget for each local 
education agency will be finalized based on the final allocation of funds as 
provided in subsection (c) of this section. 
(c) Final Allocations. 
(1) Each local education agency shall report the actual contact hours of job-
related instruction classes (number of apprentices and number of class hours) to 
the Commission for determination of the final contact-hour rate for the final 
allocations of funds. 
(2) The Commission shall notify each local education agency of the current year 
final allocations based on the final contact-hour rate. 
(3) If sufficient funds are available after the final allocations for job-
related instruction classes are determined, these funds may be allocated for 
supplementary (journeymen) instruction classes.

sec.837.44.Contract Amendments.
(a) Each local education agency must submit a contract amendment to the 
Commission that reflects the final allocation for job-related instruction 
classes as calculated from the approved number of actual contact hours of each 
class. If funds are allocated for supplementary (journeymen) instruction, 
contract amendments must also incorporate these funds (the approved number of 
estimated contact hours for journeymen instruction).
(b) A final contract amendment is also required from each local education agency 
that receives an allocation for supplementary (journeymen) instruction classes. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
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 April 6, 1998.
TRD-9804734
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER D.Funding Qualifications
40 TAC sec.sec.837.61-837.65
The new rules are proposed under Texas Labor Code, sec. 301.061 which provides 
the Texas Workforce Commission with the authority to adopt such rules as it 
deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal. 

sec.837.61.Eligible Applicants.
(a) Entities eligible to apply to the Commission for apprenticeship training 
funding are public school districts and public post-secondary institutions.
(b) Approved local education agencies shall be the fiscal agents for the funds 
and are subject to the audit procedures described in Texas Education Code, 
sec.133.005. Approved local education agencies shall subcontract with the local 
apprenticeship committee of a registered apprenticeship training program to fund 
job-related classroom instruction. 

sec.837.62. Priority for Allocating Funds. 
The purpose of the Apprenticeship Training funds is to supplement the costs of 
the job-related classroom instruction of eligible registered apprenticeship 
training programs. Funds for apprenticeship training instruction classes are 
allocated on the following priority: 
(1) related instruction, or "Apprenticeship", classes that consist of organized, 
off-the-job instruction in theoretical or technical subjects required for the 
completion of an apprenticeship program for a particular apprenticeable trade; 
(2) supplementary instruction, or "Journeymen", classes that consist of 
instruction designed to provide new skills or upgrade current skills for persons 
employed as journeymen craftsmen in apprenticeable trades; and, 
(3) preparatory instruction classes consisting of instruction lasting six months 
or less that teach the basic skills required for an individual to comply with 
the terms of the individual's apprenticeship agreement. 

sec.837.63. Funding Qualifications for all Apprenticeship Training Programs.
Each apprenticeship training program must meet the following eligibility 
requirements to qualify for funding: 
(1) be sponsored by a public school district or a state post-secondary 
institution pursuant to a contract between the district or institution and an 
apprenticeship committee; 
(2) be certified and registered by the Bureau of Apprenticeship and Training no 
later than August 1 (one month) prior to the applicable program year; 
(3) provide the local education agency with a validated copy of their written, 
national standards as approved by the Bureau of Apprenticeship and Training (or 
where national standards do not exist, individual program standards approved by 
the Bureau); and 
(4) comply with Commission regulations as stated in Texas Education Code, 
Chapter 133 and the Administrator's Guide. 

sec.837.64. Funding Qualifications for a Related Instruction (Apprentice) Class.
The following additional eligibility requirements must be met for an 
apprenticeship training program to qualify for the funding of a related 
instruction (apprenticeship) class: 
(1) Each apprentice of the specific occupation of the program must: 
(A) be a full-time employee in the private sector in Texas;
(B) be registered with the Bureau of Apprenticeship and Training on or before 
September 1 of the applicable program year; 
(C) receive related instruction concurrently with on-the-job training; and 
(D) be physically present on the official third class meeting, or both the 
second and fourth class meetings, as evidenced by the physical presence of the 
authorized local education agency administrator. 
(2) Each job-related instruction class for the applicable program year must 
begin on or after September 1, conduct the fourth class meeting no later than 
the first Saturday in October, and end on or before August 31. 
(3) Only registered apprentices are allowed to attend a related (apprentice) 
instruction class. The class will be disallowed for funding for the entire year 
if anyone else attends the class. The local education agency will reimburse the 
Commission for any disallowed funding. 
(4) The number of approved related instruction hours per class per year must be 
certified by the Bureau of Apprenticeship and Training.
(5) The number of estimated contact hours and the number of actual contact hours 
of the apprenticeship training instruction classes must be submitted by the 
local education agency and received by the Commission on or before the 
respective due dates as stated in the Administrator's Guide.

sec.837.65.Qualifications for Funding a Supplementary Instruction (Journeymen) 
Class.
Supplementary instruction classes will be funded if eligible and if funds are 
available after final allocations to related instruction classes. The following 
eligibility requirements must be met for an apprenticeship training program to 
qualify for the funding of a supplementary instruction (journeymen) class: 
(1) Each supplementary instruction class shall be for skill upgrading directly 
related to the trade of the sponsoring organization/association with tasks or 
skills performed at the journeymen level; not to exceed forty-eight hours of 
instruction. 
(2) Each supplementary instruction class shall maintain an accurate attendance 
roster listing every person who attends the class and their attendance. 
(3) Only journeymen who are employed in Texas by members of the support 
organization/association are allowed to attend supplementary instruction 
classes. The class will be disallowed for funding if anyone else attends the 
class. 
(4) For additional background and supplementary information on supplementary 
instruction classes, see the Administrator's Guide. 
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 April 6, 1998.
TRD-9804735
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER E.Use of Funds and Account Maintenance
40 TAC sec.sec.837.81-837.85
The new rules are proposed under Texas Labor Code, Section 301.061 which 
provides the Texas Workforce Commission with the authority to adopt such rules 
as it deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal.

sec.837.81.Allowable Expenditures.
Apprenticeship training funds are used to supplement the cost of instructor 
salaries, instructional supplies and materials, instructional equipment, other 
operating expenses, and administration costs incurred by the local education 
agency. Each budget item requested must be an allowable expenditure under the 
authorizing program statutes, regulations, and guidelines. 

sec.837.82. Cost Categories. 
Costs are divided into two main categories, administrative and instructional. 
(1) Administrative. Costs that are allowable, necessary and reasonable incurred 
by the local education agency to properly administer and manage the funds, such 
as local education agency supervisors and administrative supplies. 
Administrative costs may not exceed 15% of the total contract. 
(2) Instructional. Costs that are allowable, necessary and reasonable for the 
apprenticeship training program to properly conduct the job-related instruction 
class, such as instructors' salaries and instructional supplies.

sec.837.83. Funding Limitations.
(a) All encumbrances and expenditures of funds approved in the application shall 
occur on or after the effective date of an executed contract between the 
Commission and a local education agency. 
(b) The local education agency shall only include as costs or expenditures all 
goods that have been received and all services rendered by the ending date of 
the contract. 
(c) Indirect costs may not be charged to this program. 
(d) No more than fifteen per cent (15%) of the state appropriated funds may be 
used by the local education agency for administrative purposes.
(e) Only the approved number of related instruction hours per class are funded. 
(f) An apprenticeship training program is not eligible for funding with Chapter 
133 funds with the Commission if: 
(1) it is classified as a municipality, state, or federally sponsored program; 
(2) the local education agency charges the apprentice tuition or fees other than 
an administrative fee to cover costs of processing the apprentice's records 
which shall not exceed $5 for each course in which the apprentice is enrolled; 
or 
(3) the job-related instruction class receives funds from another government 
funding source, such as the Texas Higher Education Coordinating Board. 
(g) Apprenticeship training funds shall not be allowed for:
(1) curriculum development or class preparation; 
(2) teacher retirement matching on salaries funded with state General Revenue 
funds; 
(3) furniture, such as student desks, folding tables, and chairs; 
(4) costs of remodeling buildings or facilities; 
(5) rental cost of publicly-owned space; or 
(6) food costs. 

sec.837.84.Allowable Travel Expenses.
Amounts authorized for maximum recovery for travel and per diem costs against 
this funding source are restricted to those amounts which are approved in the 
State of Texas Appropriations Act in effect for the particular funding period.

sec.837.85. Maintenance of Accounts. 
(a) Each local education agency shall maintain records on all expenditures, and 
shall use budgeting, accounting, and auditing procedures in accordance with the 
provisions of the Texas Workforce Commission Financial Manual for Grants and 
Contracts. 
(b) Such local education agency budgeting, accounting and auditing procedures 
must assure that: 
(1) contracts are accounted for with the modified accrual method; 
(2) an encumbrance method of budgetary control is included in the accounting 
system; and 
(3) contracts are accounted for on an individual project basis by budget 
function, cost category, cost subcategory, and year of entitlement. 
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 April 6, 1998.
TRD-9804736
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER F.Compliance Monitoring
40 TAC sec.837.100, sec.837.101
The new rules are proposed under Texas Labor Code, sec.301.061 which provides 
the Texas Workforce Commission with the authority to adopt such rules as it 
deems necessary for the effective administration of the Act. Texas Labor Code, 
Chapter 302 and Texas Education Code, Chapter 133 will be affected by this 
proposal. 

sec.837.100. State Monitoring.
The Commission will monitor apprenticeship training programs for compliance with 
applicable laws, regulations, guidelines, and policies, as well as for 
effectiveness. The Commission may conduct on-site visits in accordance with a 
monitoring instrument, which will be available to the local education agencies 
for prior review. Unannounced visits may be made at the discretion of the 
Commission. 

sec.837.101. Corrective Action.
Failure to comply with applicable laws, regulations, guidelines, and policies 
may result in corrective action, which shall include technical assistance and 
may lead to withdrawal of funds at the Commission's discretion.
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 April 6, 1998.
TRD-9804737
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER G.Reporting Requirements
40 TAC sec.sec.837.121-837.125
The new rules are proposed under Texas Labor Code, Section 301.061 which 
provides the Texas Workforce Commission with the authority to adopt such rules 
as it deems necessary for the effective administration of the Act. 
Texas Labor Code, Chapter 302 and Texas Education Code, Chapter 133 will be 
affected by this proposal. 

sec.837.121.Apprenticeship Training Class Organization Report for Related 
Instruction.
(a) The required Apprenticeship Training Class Organization Report for Related 
(Apprentice) Instruction classes shall be furnished to the local education 
agency by the Commission. 
(b) The purposes of the form are to verify the number of actual contact hours of 
each job-related instruction class; determine the final contact-hour rate for 
final allocations of funds; and assist the Commission in maintaining a clear 
audit trail. Both the apprenticeship training program director (or designee) and 
the authorized local education agency administrator who sign the Apprenticeship 
Training Class Organization Report will be held accountable for accurate 
information. 

sec.837.122. Class Organization Report for Supplementary (Journeymen) 
Instruction.
(a) The required Apprenticeship Training Class Organization Report for 
Supplementary (Journeymen) Instruction Classes shall be furnished to the local 
education agency by the Commission. 
(b) The purposes of the form are to verify the number of actual contact hours of 
the supplementary instruction class, and to determine the final approval of 
funds for each class based on the number of actual contact hours of the class. 
Both the apprenticeship training program director (or designee) and the 
authorized local education agency administrator who sign the form will be held 
accountable for accurate information. 

sec.837.123. Expenditure Reports.
The local education agency will receive the appropriate expenditure report 
form(s) from the Commission after the application/contract is approved. 

sec.837.124.Closeout Report.
No more than thirty (30) days following the end of the contract period of 
performance, the local education agency must submit to the Commission a Closeout 
Report detailing allowable expenditures incurred during the contract period. 
Such reports shall be prepared using the appropriate Commission forms with 
supporting documentation as the Commission may prescribe. 

sec.837.125. Annual Performance Report. 
Each apprenticeship training program is responsible for providing information 
for the Annual Performance Report that is required 30 days after the ending date 
of the project. The Annual Performance Report form shall be prepared using the 
appropriate forms supplied by the Commission. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on April 6, 1998.
TRD-9804738
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8812

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 1.Management
SUBCHAPTER A.Organization and Responsibilities
43 TAC sec.1.1, sec.1.2
The Texas Department of Transportation proposes amendments to sec.1.1 and 
sec.1.2, concerning organization and responsibilities.
EXPLANATION OF PROPOSED RULE 
Transportation Code, sec.201.102 requires the commission to develop policies 
that clearly separate the policy-making responsibilities of the commission and 
the management responsibilities of the executive director and staff of the 
department.
The amendments to sec.1.1 and sec.1.2 are proposed to reflect recently enacted 
legislation affecting the responsibilities of the commission and the department, 
and to clarify the respective roles of the commission and the executive director 
in determining the organizational structure of the department and ensure that 
those roles are consistent with the commission's and the commissioner of 
transportation's statutory responsibilities concerning department organization.
FISCAL NOTE
Frank J. Smith, Director, Finance Division, has determined that for the first 
five-year period the amendments are in effect, there will be no fiscal 
implications for state or local governments as a result of enforcing or 
administering the sections. There are no anticipated costs for persons required 
to comply with the amendments as proposed. 
Bob Jackson, Acting General Counsel, has certified that there will be no 
significant impact on local economies or overall employment as a result of 
enforcing or administering the amendments. There will be no effect on small 
businesses. 
PUBLIC BENEFIT 
Mr. Jackson also has determined that for each year of the first five years the 
amended sections are in effect, the public benefit anticipated as a result of 
enforcing or administering the sections will be to notify the public of the 
responsibilities of the commission and the department. 
SUBMITTAL OF COMMENTS 
Written comments on the proposed new section may be submitted to Bob Jackson, 
Acting General Counsel, 125 East 11th Street, Austin, Texas 78701-2483. The 
deadline for receipt of comments will be 5:00 p.m. on May 18, 1998. 
STATUTORY AUTHORITY 
The amendments are proposed under Transportation Code, sec.201.101, which 
provides the Texas Transportation Commission with the authority to establish 
rules for the conduct of work of the Texas Department of Transportation, and 
more specifically, sec.201.102, which requires the commission to develop 
policies that clearly separate the policy-making responsibilities of the 
commission and the management responsibilities of the executive director and 
staff of the department. 
No statutes, articles, or codes are affected by these proposed amendments. 

sec.1.1. Texas Transportation Commission.
(a) (No change.)
(b) Commission responsibilities. 
(1) The Texas Transportation Commission, with the advice and recommendations of 
the executive director, will: 
(A)-(C) (No change.)
(D) award contracts necessary for the improvement of the state highway system, 
as provided by Transportation Code, Chapter 223, [as amended,] and sec.sec.9.10-
9.20 of this title (relating to Highway Improvement Contracts); 
(E)-(H) (No change.)
(I) approve the location and environmental review of turnpike projects 
constructed by the Texas Turnpike Authority <nl>Division of the department<ol>, 
[and] the use of the Texas Turnpike Authority feasibility study fund<nl>, and 
fulfill other responsibilities concerning the Texas Turnpike Authority Division 
under Transportation Code, Chapter 361 <ol>; 
(J)-(Q) (No change.)
<nl>(R)<ol> <nl> administer the state infrastructure bank; <ol>
<nl>(S)<ol> <nl> authorize the department to charge a toll for the use of one or 
more lanes on a segment of the state highway system for the purposes of 
congestion mitigation; <ol>
<nl>(T)<ol> <nl> organize the department into divisions to accomplish the 
department's functions and duties assigned to it; <ol>
<nl>(U)<ol> <nl> approve recommendations for changes to the department's 
organizational structure submitted by the commissioner of transportation under 
subsection (d)(1)(E) of this section; and <ol>
<nl>(V)<ol> [(R)] perform other duties required by law. 
(2) The commission may, consistent with applicable law, delegate one or more of 
the functions listed under paragraph (1) of this subsection to the executive 
director [other, than those functions under subparagraph (J), and those 
functions under subparagraph (P) that are delegated solely to the commission]. 
The executive director may further delegate such functions to one or more 
employees of the department. 
(c) Members. Each member of the commission shall: 
(1) execute a bond payable to the state in the sum of $5,000, to be approved by 
the governor, and conditioned on the faithful performance of the member's 
duties; <nl>and<ol> 
(2) attend at least half of the regularly scheduled meetings that the member is 
eligible to attend during a calendar year unless the absence is excused by 
majority vote of the commission[; and] 
[(3) serve ex officio as a member of the board of directors of the Texas 
Turnpike Authority]. 
(d) Commissioner of transportation. 
(1)-(2) (No change.)
<nl>(3)<ol> <nl> The commissioner of transportation or a member of the 
commission designated by the commissioner of transportation shall serve as a 
member of: <ol>
<nl>(A)<ol> <nl> the board of directors of the Texas Turnpike Authority Division 
of the department; and <ol>
<nl>(B)<ol> the Coastal Coordination Council.

sec.1.2. Texas Department of Transportation.
(a) Executive director. 
(1)-(2) (No change.)
(3) The executive director shall: 
(A)-(D) (No change.)
(E) notify the commissioner of transportation of grounds for removal of a 
commission member if having knowledge that a potential ground for removal 
exists<nl>, or, if the potential ground for removal relates to the commissioner 
of transportation, notify another member of the commission <ol>; 
(F)-(G) (No change.)
(4)-(3) (No change.)
(b) (No change.)
(c) Divisions. <nl>Consistent with commission direction provided under 
sec.1.1(b)(1)(T) and (U) of this title (relating to Texas Transportation 
Commission), the<ol> [The] executive director shall organize the department into 
headquarters operating divisions and special offices reflecting the various 
functions and duties assigned to the department, and shall designate a division 
or special office director who shall administer each division or special office. 
(d) (No change.)
(e) Motor Vehicle Board. 
(1) Membership. The Motor Vehicle Board of the Texas Department of 
Transportation (board) consists of <nl>nine<ol> [six] persons appointed by the 
governor with the advice and consent of the senate. <nl> The executive director 
of the Texas Department of Transportation is a member of the board ex officio. 
The executive director may attend a meeting of the board and may confer with and 
advise the board, the chairman, or the director. The executive director may not 
vote on a matter coming before the board. Except as provided by this subsection, 
the provisions of the Texas Motor Vehicle Commission Code relating to members of 
the board include:<ol> 
<nl>(A)<ol> <nl>two dealers licensed pursuant to the terms of the Texas Motor 
Vehicle Commission Code, at least one of whom must be a franchised dealer; and 
<ol>
<nl>(B)<ol> <nl> one representative of a motor vehicle manufacturer or 
distributor licensed pursuant to the terms of the Texas Motor Vehicle Commission 
Code. <ol>
(2) Board policy and purpose. In accordance with <nl> the Texas Motor Vehicle 
Commission Code<ol> [Texas Civil Statutes, Article 4413(36)], the policy and 
purpose of the board is to insure a sound system of distributing and selling 
[new] motor vehicles through licensing and regulating manufacturers, 
distributors, converters, and dealers of those vehicles, and enforcing the Texas 
Motor Vehicle Commission Code as to other persons, in order to provide for 
compliance with manufacturer's warranties, and to prevent frauds, unfair 
practices, discriminations, impositions, and other abuses of the citizens of the 
state. 
(3) Board responsibilities. 
<nl>(A)<ol> In accordance with <nl>the Texas Motor Vehicle Commission Code<ol> 
[Texas Civil Statutes, Article 4413(36a)], the board shall: 
<nl>(i)<ol> [(A)] exercise the authority and perform the duties placed on the 
board by law; [and] 
<nl>(ii)<ol> [(B)] advise the department on: 
<nl>(I)<ol> [(i)] matters arising under the Texas Motor Vehicle Commission Code 
and other matters relating to the licensing and regulation of motor vehicle 
manufacturers, distributors, converters, and dealers; and 
<nl>(II)<ol> [(ii)] the personnel, budgetary, equipment, data processing, and 
facility and property needs of the board and the Motor Vehicle Division of the 
department<nl>; and<ol> 
<nl>(iii)<ol> <nl> in coordination with the department, develop and implement 
policies that clearly delineate the policy-making responsibilities of the board 
and the management responsibilities of the department. <ol>
<nl>(B)<ol> <nl> The department, by agreement with the board, may provide 
personnel and services to the board as needed to carry out purposes, powers, and 
duties of the board. The board may delegate authority to personnel as needed. 
<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 31, 1998.
TRD-9804512
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Earliest possible date of adoption: May 17, 1998
For further information, please call: (512) 463-8630