ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 1. ADMINISTRATION PART IV. Office of the Secretary of State CHAPTER 81. Elections SUBCHAPTER E. Miscellaneous 1 TAC sec.81.73 The Office of the Secretary of State, Elections Division, adopts new sec.81.73, concerning when the early voting ballot board must convene to count late ballots cast in general primary and runoff primary elections from outside the country and placed in delivery by 7:00 p.m. on election day, without changes to the proposed text as published in the October 24, 1997, issue of the Texas Register (22 TexReg 10483.). This rule is being adopted to set a time frame within which the early voting ballot board must convene and count late early ballots cast from outside the country so that the county executive committee can timely convene not later than 1:00 p.m. on the Friday after the general primary or runoff primary elections, in accordance with sec.172.116(b) of the Texas Election Code ("Code") No comments were received regarding adoption of the new rule. The new section is necessary for the administration of sec.sec.67.003(2), 86.007(d)(3)(B), and 172.116(b) of the Code. The rule is adopted under the Code, Chapter 31, Subchapter A, sec.31.003, which provides the Secretary of State with authority to promulgate rules to obtain uniformity in the interpretation and application of the Code. The Texas Election Code, Chapter 67, sec.67.002, Chapter 86, sec.86.007(d)(3)(B), and Chapter 172, Subchapter E, sec.172.116(b), are affected by this rule. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 21, 1998. TRD-9805608 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Effective date: May 11, 1998 Proposal publication date: October 24, 1997 For further information, please call: (512) 463-5650 PART V. General Services Commission CHAPTER 113.Central Purchasing Division SUBCHAPTER A.Purchasing 1 TAC sec.sec.113.2, 113.7, 113.11 The General Services Commission adopts amendments to Sections 113.2 and 113.11 concerning purchasing, and new sec.113.7 concerning competitive sealed proposals, without changes to the proposed text as published in the March 20, 1998, issue of the Texas Register (23 TexReg 2923). The adoption of sections 113.2 and 113.11 and new sec.113.7 amends language to be consistent with the Texas Government Code, Title 10, Subtitle D, Chapter 2156. The amendments to sections 113.2 and 113.11 adds the definition "agency", clarifies language for the competitive sealed proposal purchasing method to be consistent with the Texas Government Code, Title 10, Subtitle D, Chapter 2156, clarifies the dollar amount threshold for service contract reviews, establishes a formal policy for granting specific delegated authority to state agencies administratively. New sec.113.7 authorizes the Director of the Purchasing Division to promulgate and issue guidelines for the conduct and review of competitive sealed proposals. No comments were received regarding adoption of the amendments and new section. The amendments and new section are adopted under the Texas Government Code, sec.2155.132 and sec.2156.126. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 22, 1998. TRD-9805627 Judy Ponder General Counsel General Services Commission Effective date: May 12, 1998 Proposal publication date: March 20, 1998 For further information, please call: (512) 463-3960 1 TAC sec.113.7 The General Services Commission adopts the repeal of sec.113.7 concerning competitive sealed proposals, without changes to the proposed repeal as published in the March 20, 1998, issue of the Texas Register (23 TexReg 2926). Section 113.7 is repealed to allow for the adoption of new sec.113.7 concerning competitive sealed proposals. The adoption of the repeal of sec.113.7 will allow for the adoption of new sec.113.7 that streamlines language on competitive sealed proposals to conform with the Texas Government Code, Title 10, Subtitle D, Chapter 2156. No comments were received regarding adoption of the repeal. The repeal is adopted under the Texas Government Code, Title 10, Subtitle D, sec.2156.126 This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 22, 1998. TRD-9805628 Judy Ponder General Counsel General Services Commission Effective date: May 12, 1998 Proposal publication date: March 20, 1998 For further information, please call: (512) 463-3960 TITLE 4. AGRICULTURE PART I. Texas Department of Agriculture CHAPTER 3.Boll Weevil Eradication Program SUBCHAPTER E.Creation of Eradication Zones 4 TAC sec.3.113 The Texas Department of Agriculture (the department) adopts new sec.3.113, concerning the creation of a nonstatutory boll weevil eradication zone, without changes to the proposal published in the March 13, 1998, issue of the Texas Register (23 TexReg 2644). The new section is adopted to establish a new nonstatutory boll weevil eradication zone consisting of counties currently located in a statutory zone created under the Texas Agriculture Code, Chapter 74, Subchapter D, in order to allow cotton producers in the proposed area an opportunity to establish a more manageable, efficient eradication program that better meets the local needs of producers. New sec.3.113 establishes the Northwest Plains Boll Weevil Eradication Zone consisting of all of Bailey, Castro, Deaf Smith, Lamb and Parmer counties. A grower referendum will be conducted to determine whether or not a boll weevil eradication program and assessment will be approved for that zone. Written comments generally in support of the proposal were received from the Plains Cotton Growers, Inc. Plains Cotton Growers also stressed the need for a smaller zone made up of the proposed counties due to the lower weevil pressures in that area, and the need for expeditious action in designating the proposed zone. In addition to these written comments, oral comments were also received at a public hearing conducted by the department on April 2, 1998, in Earth, Texas. Approximately 90 individuals attended the public hearing, with 18 providing oral comments Comments in favor of the creation of the proposed zone by splitting the larger Northern High Plains zone expressed a need for a smaller, more manageable zone to allow cotton growers to address their unique agronomic practices and boll weevil pressure on a more local level, with more local input and in a more cost- efficient manner. More specifically, comments noted that a smaller zone made up of the proposed area would allow for more cooperative and timely decision- making; that the farming techniques in the proposed area are similar as compared to those of areas to the east and west of the proposed area; that the proposed area has uniform climate, crop methods (mostly irrigated), uniform crop planting dates and growing season and the lightest boll weevil pressure of any other area in the Northern High Plains zone; that because of the low weevil pressure in the proposed area, the program could be implemented at a lower cost than if a larger area with more infestation were included; that the counties in the proposed area have a history of cooperation in boll weevil control efforts; and that interest among producers in the proposed area is high and in support of establishment of a program. Comments also supported the need for an immediate, comprehensive boll weevil eradication program. More specifically, comments noted that while the boll weevil is still at low levels in the proposed zone area, that situation could change due to the overwintering of weevils and a mild winter, and establishment of a program is needed as a preventive measure; that the boll weevil is a threat to cotton production in the proposed area and cotton is the crop of choice due to the decrease in water supply for that area; that a cooperative effort with surrounding areas will also be needed to get an effective program established; and that growers cannot afford to wait for technological solutions to the boll weevil problem because those new methods may not be forthcoming in the near future, may not be effective in all cases, and may be cost-prohibitive to the regular producer. Comments received from two individual producers did not support the new proposed zone and/or the establishment of a boll weevil eradication program. One individual stated that the cost of an eradication program would be too expensive. The department believes that, as noted by other comments, that a cost-efficient program can be established by growers; however, any assessment will be based on input from growers and the final determination will be at the grower level through a referendum. Another individual questioned the viability of a program that involves treatment of less than all cotton acreage in the state, and suggested that boll weevil control efforts should be left to technology currently under development. This individual also noted that another bureaucracy is not needed to tell farmers how to farm and that elimination of the weevil would increase cotton yields and bring down the price of cotton. The department disagrees with these comments and believes that an effective, viable eradication program can be developed for the proposed area without having every acre of cotton sprayed throughout the state, although a goal would be to have all surrounding areas involved in an eradication effort, and ultimately include all cotton-producing areas in the state. Further, the department agrees with other comments that the cotton producer cannot afford to wait for technological solutions, which may be costly, ineffective, or long in coming. The department agrees with the comments received in support of the designation of the proposed zone and believes that enough grower support and justification has been demonstrated to adopt the designation of a Northwest Plains Zone and provide the opportunity for growers to express their support by passing or defeating a referendum to establish a zone eradication program. The new section is adopted under the Texas Agriculture Code, sec.74.120, which provides the commissioner of agriculture with the authority to adopt rules to carry out the purposes of Chapter 74; sec.74.1042, which provides the commissioner of agriculture with the authority, by rule, to designate an area of the state as a proposed boll weevil eradication zone; and Senate Bill 1814, 75th Legislature, 1997, sec.1.27(d), which provides the commissioner of agriculture with the authority to by rule divide a statutory zone. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 27, 1998. TRD-9805834 Dolores Alvarado Hibbs Deputy General Counsel Texas Department of Agriculture Effective date: May 17, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 463-7541 TITLE 7. BANKING AND SECURITIES PART I. Finance Commission of Texas CHAPTER 1.Consumer Credit Commissioner SUBCHAPTER A.Regulated Loan Licenses Division 2. Application for License and Transfer of License 7 TAC sec.sec.1.30-1.34, 1.36-1.40 The Finance Commission of Texas (the commission) adopts new sec.sec.1.30&--1.34 and sec.sec.1.36--1.40, concerning the procedures for filing an application for and issuance of a consumer (regulated) loan license under Chapter 3A (Texas Civil Statutes, Art. 5069-3A.101 et seq.), procedures for the transfer of a consumer loan license, processing procedures and time frames for applications, procedures for changes in business form or proportionate ownership, procedures for amendments to pending applications, procedures for the relocation of licensed offices, procedures for designating licenses in an active or inactive status, and the fees associated with licensing activities without changes to the text as proposed in the March 13, 1998, issue of the Texas Register (23 TexReg 2645). The new sections set out detailed procedures related to applications for licenses under Chapter 3A. Section 1.30 defines particular terms. Section 1.31 describes the procedure for filing a new application for a consumer loan license, including instructions regarding what form to use and what information is necessary on the application and what information must be filed with the application. Section 1.32 describes the procedure for filing an application for transfer of a consumer loan license, including the filing requirements. Section 1.33 describes how an application for a consumer loan license is processed, including a description of when an application is complete as well as an explanation of what may occur if an applicant fails to complete an application. In addition, this section describes the hearings process that occurs if the applicant contests the denial of its application. Section 1.34 describes what action the licensee must take when it changes the proportion of ownership in or the form of the licensed entity and lists the time frame within which the licensee must notify the commissioner. Section 1.36 requires each applicant, upon discovery of new or changed information, to supplement its application within 10 days of discovery of the new or changed information. Section 1.37 describes the procedures for relocating a licensed office, including deadlines for notification thereof. Section 1.38 describes how a licensee may change its license from active to inactive status and how a license may activate an inactive license. Section 1.39 sets out the fees for new licenses, license transfers, fingerprint checks, license amendment, license duplication, and costs of hearings. Section 1.40 states that, upon filing with the Office of Consumer Credit Commissioner, an application for consumer loan license or notice becomes a state record and public information subject to the Public Information Act (formerly the Open Records Act.) Most of these procedures were currently in place as a part of the licensing process under the former Chapter 3. These rules clarify and streamline some of the filing procedures. The rules are necessary to provide consistent treatment of license applications and amendments, as well as providing adequate notice to applicants and licensees of the procedural requirements of license issuance under Article 5069, Chapter 3A, Subchapter C. No comments were received regarding adoption of the new sections. The new sections are adopted under Texas Civil Statutes, Article 5069-3A.901, which authorizes the Finance Commission to adopt rules to enforce new Chapter 3A. Texas Civil Statutes, Art. 5069-3A, Subchapter C is affected by these new sections. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 27, 1998. TRD-9805820 Leslie L. Pettijohn Commissioner Finance Commission of Texas Effective date: May 17, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 936-7640 7 TAC sec.sec.1.31-1.34, 1.36-1.40 The Finance Commission of Texas (the commission) adopts the repeal of sec.sec.1.31-1.34 and sec.sec.1.36-1.40, part of the rules which implemented Chapter 3, Texas Civil Statutes, Article 5069-3.01 et seq., without changes to the proposal as published in the March 13, 1998, issue of the Texas Register (23 TexReg 2650). The repeals are necessary as the sections which are repealed relate to licensing procedures under Chapter 3, Texas Civil Statutes, Article 5069-3.01 et seq., which was repealed by the 75th Legislature. Moreover, they are being replaced by a new set of rules for Chapter 3A, a new chapter of the Credit Title which encompasses old Chapters 3 through 5. No comments were received regarding adoption of the repeals. The repeals are adopted under Texas Civil Statutes, Article 5069-3A.901, which authorizes the Finance Commission to adopt rules to enforce new Chapter 3A. The repeals will not be adopted until the proposed replacement sections are adopted. The statutory provisions (as currently in effect) affected by the adopted repeals are Texas Civil Statutes, Articles 5069, Chapter 3A, Subchapter C. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 27, 1998. TRD-9805821 Leslie L. Pettijohn Commissioner Finance Commission of Texas Effective date: May 17, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 936-7640 CHAPTER 4.Currency Exchange 7 TAC sec.4.6 The Finance Commission of Texas (the commission) adopts an amendment to sec.4.6, concerning currency exchange and transmission license exemptions. The amendment is adopted without changes to the proposed text as published in the March 6, 1998, issue of the Texas Register (23 TexReg 2205), and the text will not be republished. Section 4.6(e)(1) as amended clarifies that check sellers who also engage in currency exchange or transmission transactions are exempt from the licensing requirements of Finance Code, Chapter 153, if licensed under Finance Code, Chapter 152. However, these check sellers are required to comply with other provisions of Finance Code, Chapter 153, with respect to their currency exchange or currency transmission transactions. Section 4.6(e)(2) as amended clarifies that exempt check sellers, licensed under Finance Code, Chapter 152, engaging in currency exchange or currency transmission, must comply with the net worth and bonding requirements under Finance Code, Chapter 153. The commission received no comments regarding the proposal. The amendment is adopted pursuant to the Finance Code, sec.153.002, which authorizes the commission to adopt rules "necessary to implement this chapter," and pursuant to the Finance Code, sec.153.109(b), which provides that, "the Commissioner shall determine the amount of the bond or letter of credit based on the dollar volume of the license holder's currency exchange, transportation, or transmission business and the number of locations from which the license holder operates." This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805759 Everette D. Jobe Certifying Official Finance Commission of Texas Effective date: May 14, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 475-1300 PART II. Texas Department of Banking CHAPTER 17.Trust Company Regulation SUBCHAPTER B.Examination and Call Reports 7 TAC sec.17.23 The Finance Commission of Texas (the commission) adopts new sec.17.23, concerning reports of financial condition and results of operations, more commonly referred to as "call reports," by trust companies subject to regulation by the Banking Commissioner of Texas (banking commissioner). The section is adopted with changes to the proposed text published in the March 6, 1998, issue of the Texas Register (23 TexReg 2206). The adopted section requires all trust companies to file four call reports annually with the banking commissioner by certain due dates in the form and manner specified by the banking commissioner. Special call reports may be requested by the banking commissioner to permit discharge of the banking commissioner's duties to monitor the safety and soundness of the trust company. All call reports and special call reports contain certain declarations and attestations, and call reports (but not special call reports) must be posted in the lobby of the trust company at a location accessible to the public. The section further specifies that the public portion of call reports filed with the banking commissioner are public information. Special call reports and the non- public portions of all other call reports are confidential. Finally, corrected call reports must be if significant errors are discovered, and specified penalties will apply to late filings, failures to file, and false or misleading filings. The commission received no comments regarding the proposal. However, subsection (b) has been revised to be more comparable with sec.3.21(c) (relating to Bank Call Reports) and to delete an erroneous statement regarding applicability of the rule. The new section is adopted under Texas Civil Statutes, Article 342a-2.003(b), which authorizes the commission to adopt rules to specify the form of the statement of condition and income, including specified confidential and public information to be in the statement; require public information in the statement to be published at the times and in the publications and locations the finance commission determines; and require the statement to be filed with the banking commissioner at the intervals the finance commission determines. The new section is also adopted under Texas Civil Statutes, Article 342a-3.011(e) which authorizes the commission to adopt rules establishing procedures and requirements for obtaining, maintaining, or revoking an exemption. The new section is also adopted under Texas Civil Statutes, Article 342-1.003(a), which authorizes the commission to adopt rules necessary or reasonable to implement and clarify the law and to preserve the safety and soundness of trust companies. sec.17.23.Call Reports. (a) Call report. As used in this section, the term "call report" means a statement of condition and income and results of operations of a trust company as mandated by the banking commissioner pursuant to Texas Civil Statutes, Article 342a-2.003. (b) Reporting requirements of trust companies. Each trust company shall file four call reports annually with the banking commissioner. Such call reports must be filed with the banking commissioner no later than April 30, July 31, and October 31 of each year, and by January 31 of the subsequent year. The call report forms, the instructions for completing the reports and the accompanying materials will be furnished by the banking commissioner to all trust companies subject to this subsection, or may be obtained upon request from the Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294. The banking commissioner may make such modifications and additions to call report form and contents under this subsection as considered necessary in the discretionary discharge of the banking commissioner's duties. A trust company must submit all information requested on the call report form. (c) Special call reports. In addition to the requirements of subsections (b) of this section, the banking commissioner may require a trust company to file and submit a special call report, in such form and manner and containing such information as may be requested, on dates fixed, whenever in the banking commissioner's discretion the special call report is necessary in the performance of the banking commissioner's supervisory duties related to the safety and soundness of the trust company. Special call reports must contain only such information as is specifically requested by the banking commissioner. (d) Call report declarations and attestations. Each call report or special call report required to be filed under subsections (b) and (c) of this section must contain a declaration by an executive officer, or by another officer designated by the board of directors of the trust company to make such declaration, that the report is true and correct to the best of such individual's knowledge and belief. The correctness of the call report or special call report must also be attested by the signatures of at least two of the directors of the trust company other than the officer making the declaration. The declaration of the directors must state that the call report or special call report has been examined by them and is true and correct to the best of their knowledge and belief. (e) Lobby notice and publication. The latest call report filed with the banking commissioner pursuant to subsection (b) of this subsection or a Notice of Call Report Availability must be posted in the lobby of each trust company that transacts business with the public at a point accessible to the public. A trust company is not required to publish its call report in a newspaper or other media unless specifically directed to do so by the banking commissioner. A trust company required to publish its call report by the banking commissioner shall publish the report in a newspaper or other medium of general circulation as directed by the banking commissioner. (f) Confidentiality. Pursuant to Texas Civil Statutes, Article 342a-2.101, call reports filed under subsection (b) of this section are public information to the extent that such reports are considered public records, and may be published or otherwise disclosed to the public. Special call reports filed pursuant to subsection (c) of this section and non-public portions of call reports filed pursuant to subsection (b) of this section are confidential, subject only to such disclosure as may be permitted by Texas Civil Statutes, Article 342a-2.101 et seq, or by sec.3.111 of this title (relating to Confidential Information). (g) Reports containing significant errors and penalties for failure to file or for filing a report with false or misleading information. A trust company that transacts business with the public which fails to make, file, or submit a call report or a special call report or fails to timely file a call report or special call report as required by this section is subject to a penalty not exceeding $500 a day to be collected by the attorney general on behalf of the banking commissioner. Failure of a trust company that does not transact business with the public to make, file, or submit a call report or a special call report or fails to timely file a call report or special call report as required by this section is grounds for revocation of its exempt status. Any trust company which makes, files, submits or publishes a call report or special call report which contains a significant error, shall file a corrected call report within 20 days from the date of request. For purposes of this subsection, a significant error refers to any difference in the report of condition and/or supporting schedules equating to 5.0% or more of total assets, provided the amount is greater than $50,000, or any difference in the report of income and/or supporting schedules equating to 5.0% or more of total operating income, provided the amount is greater than $5,000. Any trust company which makes, files, submits or publishes a false or misleading call report or special call report is subject to an enforcement action pursuant to Texas Civil Statutes, Article 342a-6.001 et seq. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805764 Everette D. Jobe General Counsel Texas Department of Banking Effective date: May 14, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 475-1300 CHAPTER 21.Trust Company Corporate Activities The Finance Commission of Texas (the commission) adopts new sec.sec.21.4-21.8, regarding corporate application filings by trust companies, and sec.21.23, regarding withholding the identity of prospective officers. The sections are adopted without changes to the proposed text as published in the March 6, 1998, issue of the Texas Register (23 TexReg 2208), and the text will not be published. New sec.21.4 pertains to information required for consideration of corporate filings made with the Texas Department of Banking, including time limits and abandoned filings. New sec.21.5 pertains to publication of public notices required for certain corporate filings by trust companies. New sec.21.6 concerns applications for trust company charters, including the contents of notices to applicants, application processing times, and appeals. New sec.21.7 permits the filing of reproductions of original documents by trust companies in lieu of original documents, provides for their treatment as original, and establishes limits regarding reproductions filed by telephonic document transmission. New sec.21.8 specifies which corporate forms are to be filed with the banking commissioner and with the secretary of state, permits the utilization of modified versions of forms promulgated by the secretary of state if the banking commissioner has not promulgated forms, and specifies which corporate forms, inapplicable to trust companies, do not need to be filed with either the banking commissioner or the secretary of state. New sec.21.23 permits applicants for trust company charters to withhold the identity of prospective officers until the banking commissioner issues a final order on the application, at which time the prospective officers' resumes must be submitted to the department for investigation. The commission received no comments regarding the proposal. SUBCHAPTER A.Fees and Other Provisions of General Applicability 7 TAC sec.sec.21.4-21.8 The new sections are adopted under Texas Civil Statutes, Article 342a- 1.003(a)(1), which authorize the commission to adopt rules to implement and clarify Texas Civil Statutes, Articles 342a-1.001 et seq. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805765 Everette D. Jobe General Counsel Texas Department of Banking Effective date: May 14, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 475-1300 SUBCHAPTER B.Trust Company Chartering and Powers 7 TAC sec.21.23 The new section is adopted under Texas Civil Statutes, Articles 342a-1.003(a), which authorize the commission to adopt rules to implement and clarify Texas Civil Statutes, Articles 342a-1.001 et seq. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805766 Everette D. Jobe General Counsel Texas Department of Banking Effective date: May 14, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 475-1300 PART IV. Texas Savings and Loan Department CHAPTER 79.Miscellaneous SUBCHAPTER F.Fees and Charges 7 TAC sec.79.109, sec.79.110 The Finance Commission of Texas adopts new sec.79.109 and sec.79.110 regarding filing fees for applications received by the Department relating to charter, branch, merger, change of control, subsidiary corporations and other activities and investments requiring approval by the Savings and Loan Commissioner without changes to the proposed text as published in the March 6, 1998, issue of the Texas Register (23 TexReg 2211). New sec.79.109 establishes a fee for protest of an application received by the Department. Administrative costs to process an application increase dramatically when a protest is filed. In such cases, a hearing is required to provide the protestant with the opportunity to present testimony supporting the protest. Costs are incurred by the Department such as administrative law judge fees and other administrative costs that would be unnecessary absent the protest. While the provisions of 7 TAC sec.9.15 authorize the administrative law judge to allocate hearing costs among the parties in a contested case, protestants are frequently beyond the jurisdiction of the Department and recovery of these funds without litigation can be difficult. This fee amount is identical to that charged by the Department of Banking and provides greater assurance of collection of these costs from the protestant. Under the new rule, a member of the general public who is not considered a party may be allowed to testify without paying the protest fee. New sec.79.110 concerns the nonrefundability of filing fees and discretion of the Commissioner to waive or reduce such fees. This rule is also identical to a Department of Banking rule on filing fees. It codifies Department policy on the nonrefundability of filing fees but also introduces some flexibility in applying filing fees in a way that fits the circumstances. For example, some transactions trigger multiple applications under the Department's rules. Such multiple applications may be combined at the Commissioner's discretion into a single application for simplicity and ease of processing. In such cases, information otherwise required for separate applications can be combined and requires less analytical work and processing time by Department staff. This often occurs in applications for merger or consolidation when multi-level mergers are required, in tax free reorganizations to form a holding company, for multi-tiered subsidiary acquisitions involving formation of a shell subsidiary corporation to acquire and own a joint venture, trust or limited partnership, etc. Current rules would require a separate fee for each element of an application of this type. The new rule permits discretion to the Commissioner to waive or reduce a filing fee if he finds appropriate justification. No comments were received regarding the new sections. The sections are amended under Finance Code, sec.11.302, which requires the commission to adopt rules regarding enforcement and implementation of Subtitle C of the Finance Code. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805751 James L. Pledger Commissioner Texas Savings and Loan Department Effective date: May 14, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 475-1350 PART VI. Credit Union Department CHAPTER 91.Chartering, Operations, Mergers, Liquidations SUBCHAPTER A.General Rules 7 TAC sec.91.103 The Texas Credit Union Commission adopts new sec.91.103 concerning the public notice of the Department's activities, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1248). The new rule is necessary to comply with new statutory requirements enacted in the 75th Legislative Session. Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated Section 15.402), requires the Commission to adopt rules relating to providing the public with notice of department activities. The rule requires the Department to publish in the Texas Register and the department newsletter actions taken on certain applications and requests submitted for approval that have become final. No comments were received regarding adoption of the new rule. The new rule is adopted under the provisions of the Texas Finance Code, Section 15.402, which authorizes the commission to adopt reasonable rules, and Section 10 of the Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated Section 15.402), which requires the Commission to provide public notice of Department activities. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805560 Harold E. Feeney Commissioner Credit Union Department Effective date: May 10, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 7 TAC sec.91.104 The Texas Credit Union Commission adopts new sec.91.104 concerning the public notice of certain requests for approval by the commissioner, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1249). The new rule is necessary to comply with new statutory requirements enacted in the 75th Legislative Session. Section 17 of Senate Bill 358, effective September 1, 1997, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated Section 122.005), requires the commissioner to submit to the secretary of state for publication in the Texas Register notice of requests for approval by the commissioner of applications for incorporation, amendments to credit union's articles of incorporation, including amendments to expand field of membership, and mergers/consolidations. The rule requires the department to publish in the Texas Register and the department newsletter notice of such requests received by the Department at least 30 days prior to any action being taken on them. No comments were received regarding adoption of the new rule. The new rule is adopted under the provisions of the Texas Finance Code, Section 15.402, which authorizes the commission to adopt reasonable rules, and Section 17 of the Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated Section 122.005), which requires the Commission to provide public notice of certain requests for approval. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805559 Harold E. Feeney Commissioner Credit Union Department Effective date: May 10, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 SUBCHAPTER G.Loans 7 TAC sec.91.701 The Texas Credit Union Commission adopts an amendment to sec.91.701 concerning loans and extensions of credit that a credit union may make, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1249). The amendments of sec.91.701(c)(3), (4), and (5) provide specific authorization for a credit union to engage in home equity lending and reverse mortgage lending, as allowed by Section 50, Article XVI, Texas Constitution, although the Commission already determined that state chartered credit unions have the authority to offer home equity loans and reverse mortgages to their members. An amendment is also adopted to ensure compliance with provisions of Section 50, Article XVI, Texas Constitution, pertaining to home improvement loans. These amendments also will allow effective enforcement of the Constitutional requirements. The amendment to sec.91.701(c)(1)(C), concerning loans secured by real estate, authorizes a practical procedure regarding the validity of title in connection with home equity loans of less than $25,000, which is justified under current economic conditions. The amendments to sec.91.701(c)(1)(G) and sec.91.701(c)(2)(F), concerning loans secured by real estate, raise the appraisal requirement threshold from $50,000 to $100,000, the level established for federally chartered credit unions, to make this requirement for state- chartered credit unions equivalent to the corresponding requirement for federally chartered credit unions. Comments in general support of the adoption of the rule were received from the Texas Credit Union League. The Texas Credit Union League raised the issue that the National Credit Union Administration, the federal credit union regulator, allows a federal credit union the option of using either state licensed or state certified appraisers as long as the credit union complies with the requirements set forth in the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Currently, sec.91.701 requires the use of a state certified appraiser. The Texas Credit Union League wanted to bring this difference to the commission's attention in the event that the commission would like to harmonize the state appraisal requirements with those of the federal regulator. At the present time, the commission is taking this matter under advisement. If it is determined that harmonizing the appraiser qualification requirement is in the best interest of state-chartered credit unions and their members, an amendment to the rule will be subsequently proposed. The amendment is adopted under Texas Finance Code, Section 15.402, which provides the Credit Union Commission with the authority to adopt reasonable rules; and under Texas Finance Code, Section 124.001, which authorizes the Credit Union Commission to adopt rules relating to a credit union's ability to make loans to its members. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805558 Harold E. Feeney Commissioner Credit Union Department Effective date: May 10, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 SUBCHAPTER J.Changes in Corporate Status 7 TAC sec.91.1003 The Texas Credit Union Commission adopts new sec.91.1003 concerning mergers/consolidations of credit unions, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1250). The new rule is being adopted in order to comply with Section 3 of Senate Bill 358 (75th Legislature) which requires the commission, by rule, to establish appropriate criteria that the commissioner must consider in determining whether to approve or disapprove a merger/consolidation request. The rule formalizes documentation requirements and merger procedures currently utilized by the Credit Union Department, as well as identifies grounds for the commissioner's disapproval of a merger/consolidation request. No comments were received regarding adoption of the new rule. The new rule is adopted under the provisions of the Texas Finance Code, Section 15.402, which authorizes the commission to adopt reasonable rules, and Section 3 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session Law (codified at Texas Finance Code Annotated Section 122.153). This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 21, 1998. TRD-9805567 Harold E. Feeney Commissioner Credit Union Department Effective date: May 11, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 SUBCHAPTER L.Submission of Comments by Interested Parties 7 TAC sec.91.3001, sec.91.3002 The Texas Credit Union Commission adopts new sections sec.91.3001 and sec.91.3002 concerning the opportunity for interested parties to be heard on certain applications, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1252). The new rules are being adopted in accordance with Section 17 of Senate Bill 358, (75th Legislature) which provides that the commission may establish reasonable rules governing the circumstances and conduct of informal meetings. The rules formalizes requirements and procedures to be utilized by the Credit Union Department. No comments were received regarding adoption of the new rules. The new rules are adopted under the provisions of the Texas Finance Code, Section 15.402, which authorizes the commission to adopt reasonable rules, and Section 17 of Senate Bill 358, 75th Legislature, Chapter 338, 1997 Texas Session Law (to be codified at Texas Finance Code Annotated Section 122.005), which provides the Credit Union Commission with the authority to establish, by rule, appropriate criteria governing the circumstances and conduct of informal meetings. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805557 Harold E. Feeney Commissioner Credit Union Department Effective date: May 10, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 CHAPTER 97.Commission Policies and Administrative Rules SUBCHAPTER B.Fees 7 TAC sec.97.113 The Texas Credit Union Commission adopts an amendment to sec.97.113 concerning operating fees, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1253). One amendment will modify the amount of operating fees a state-chartered credit union must pay to the Department annually. This amendment to update the operating fee schedule is the result of the Department's analysis of its current operating costs, the operating assessment schedule imposed on federally chartered credit unions and credit unions chartered by other states, and the structure of the state credit union industry as it exists today. The operating fee schedule currently in effect was adopted in September of 1991. The commission is adopting an amendment to allow for the collection of $200 per foreign branch office operated in the state of Texas by an out-of-state credit union. As the rule now reads, an out-of-state credit union with branches operating in Texas is only required to remit $200 per year to the Department, regardless of the number of actual foreign branch operations in existence. Therefore, an out-of-state credit union with four branches would pay the same annual fee as another out-of-state credit union with only one branch. Amending the rule to allow for a fee to be collected for each branch office will result in a more equitable system. The commission is adopting the addition of a new subsection addressing the collection of operating fees from a state chartered credit union that assumes the assets and liabilities of another state chartered credit union through a merger or consolidation between June 30 and September 1. This will allow the department to collect operating fees normally lost as a result of the timing difference between the date upon which the fees are assessed and the remittance date. No comments were received regarding adoption of the amendment. The amendment is adopted under the provisions of the Texas Finance Code, sec.15.402, which provide the Credit Union Commission with the authority to set, by rule, reasonable supervision fees, charges, and revenues required to be paid by credit unions authorized to do business under the Texas Finance Code. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805556 Harold E. Feeney Commissioner Credit Union Department Effective date: May 10, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 837-9236 TITLE 16. ECONOMIC REGULATION PART II. Public Utility Commission of Texas CHAPTER 26.Substantive Rules Applicable to Telecommunications Service Providers SUBCHAPTER L.Wholesale Market Provisions 16 TAC sec.26.283 The Public Utility Commission of Texas (PUC) adopts new sec.26.283, relating to Infrastructure Sharing, with changes to the proposed text published in the February 20, 1998 issue of the Texas Register (23 TexReg 1465). The new section will implement the Public Utility Regulatory Act, Texas Utilities Code Annotated sec.60.163 (Vernon 1998) (PURA), which requires the commission to adopt rules requiring a local exchange company to share public switched network infrastructure and technology with another local exchange company under certain conditions. The commission received written comments on the proposed amendments from AT & T Communications of the Southwest, Inc. (AT & T), Southwestern Bell Telephone Company (SWBT), and the Texas Telephone Association (TTA). AT & T suggests that the commission should address the issue of intellectual property rights in the context of infrastructure sharing. AT & T notes that in earlier pre-publication comments on this matter, SWBT suggested that intellectual property rights be handled in this proceeding as they were handled by the commission in the "mega- arbitration" proceeding. According to AT & T, the result would be that a local exchange company (LEC) seeking to share SWBT's infrastructure would be compelled to directly negotiate with SWBT's equipment vendors for any licenses necessary to permit it to use SWBT's infrastructure. AT & T asserts that this would impede infrastructure sharing. Further, AT & T notes that the Federal Communications Commission (FCC) order implementing the infrastructure sharing provisions of the federal Telecommunications Act of 1996 (FTA96) placed the burden on the providing incumbent LEC to ensure that a requesting carrier receives the benefits to which the requesting LEC is entitled under FTA96 sec.259. Specifically, a providing incumbent LEC is required to directly negotiate any necessary licensing agreements with its suppliers on behalf of a requesting carrier. The commission declines to add a provision to the text of the section comparable to the affirmative obligation imposed on a sharing LEC by the FCC. However, the commission does find that failure of a sharing LEC to assist a requesting LEC in the acquisition of any necessary licensing arrangements could be construed, depending upon the factual circumstances, as evidence of anticompetitive behavior. SWBT seeks a modification of the timing provisions for filing of an amendment. Proposed subsection (c)(3) would require the filing of a joint agreement by a requesting LEC and a sharing LEC within 60 days of the filing of a request for sharing. SWBT's suggested modification would allow a requesting LEC and a sharing LEC to agree to an extension of that time. The commission agrees that SWBT's suggested modification is appropriate and changes subsection (c)(3) accordingly. TTA comments that the definition of "requesting carrier" in proposed subsection (a)(3) should be amended to specify that a requesting carrier must be the sole carrier of last resort for the specific geographic area requested. TTA suggests that the amendment is required for the section to comply with PURA sec.60.163(a). The commission disagrees with TTA's interpretation of PURA. While PURA sec.60.163(a) requires the commission to adopt rules for infrastructure sharing with companies that are the sole provider of last resort, PURA does not restrict the commission from requiring infrastructure sharing with companies that are not the sole providers of last resort. Proposed subsection (b)(2) requires the commission to consider whether the requesting carrier is a sole provider of last resort in making its determination as to whether infrastructure sharing is required. Therefore, the commission does not make the change requested by TTA. The section is adopted under PURA sec.14.002, which provides the Public Utility Commission of Texas with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, and PURA sec.60.163, which requires the commission to adopt rules requiring a local exchange company to share public switched network infrastructure and technology with another local exchange company under certain conditions. Cross Reference to Statutes: Public Utility Regulatory Act sec.14.002 and sec.60.163. sec.26.283.Infrastructure Sharing. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise. (1) Local exchange company (LEC) - As defined in the Public Utility Regulatory Act, Texas Utilities Code sec.51.002(4) (Vernon 1998) (PURA). (2) Public switched network infrastructure and technology - Includes, but is not limited to: (A) Basic public switched network infrastructure and technology - The physical plant and corresponding functionalities that provide basic network services such as those listed in PURA sec.58.051. (B) Advanced public switched network infrastructure and technology - The physical plant and corresponding functionalities that provide integrated services digital network (ISDN) services as set forth in PURA sec.58.203(c), optical fiber or equivalent facilities, and Common Channel Signaling System 7. (3) Requesting local exchange company (LEC) - A LEC that requests another LEC to share public switched network infrastructure and technology. (4) Sharing local exchange company (LEC) - A LEC that has been requested by another LEC to share public switched network infrastructure and technology. (5) Sole carrier of last resort - The LEC holding a certificate of convenience and necessity, as to the geographic area covered by such certificate. (b) Requirement to share. The commission may require any LEC to share public switched network infrastructure and technology with any other LEC that requests such sharing. In determining whether a LEC is required to share public switched network infrastructure and technology, the commission will consider such matters as: (1) whether the requesting LEC lacks economies of scale or scope that would prohibit the requesting LEC from offering a particular telecommunications service in an economically efficient manner in a specific geographic area; (2) whether the requesting LEC is the sole carrier of last resort in the specific geographic area involved; (3) whether requiring a LEC to share its public switched network infrastructure and technology would be economically efficient for the sharing LEC, or, if not, whether terms and conditions can and should be imposed that would make such sharing economically efficient; and (4) whether requiring a LEC to share its public switched network infrastructure and technology is in the public interest. (c) Procedure to request sharing. (1) A LEC requesting that another LEC share public switched network infrastructure and technology shall make its request to the sharing LEC in writing. (2) The requesting LEC and the sharing LEC shall negotiate terms and conditions of the sharing arrangement. The terms and conditions may include, but are not required to include, joint ownership and/or operation of public switched network infrastructure and services by the LECs. (3) Within 60 days after a LEC has received a request for sharing, the sharing and requesting LECs shall jointly file an agreement setting forth the terms and conditions of the sharing arrangement, unless the requesting LEC and the sharing LEC agree to an extension of time. If the parties cannot reach agreement on the appropriate terms and conditions, the requesting party shall instead file a petition to resolve issues related to infrastructure sharing. A petition to resolve issues related to infrastructure sharing shall be filed not later than the 60th day after the sharing LEC's receipt of the request for sharing, or such later time as the requesting LEC and the sharing LEC agree. The petition shall set forth, as appropriate, the terms and conditions on which agreement has been reached, the specific issues the commission is being asked to resolve, the requesting LEC's suggested resolution of such issues in terms that could be inserted into an agreement, and a suggested procedural schedule for resolution of the issues. The petition shall also address the factors that the commission must consider under subsection (b) of this section. If a petition is filed in lieu of an agreement, the sharing LEC must file a response within 10 days of the filing of the petition. The sharing LEC's response must address, in like manner, each item required by this subsection to be included in the petition. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 23, 1998. TRD-9805695 Rhonda Dempsey Rules Coordinator Public Utility Commission of Texas Effective date: May 13, 1998 Proposal publication date: February 20, 1998 For further information, please call: (512) 936-7308 TITLE 34. PUBLIC FINANCE PART IV. Employees Retirement System CHAPTER 85.Flexible Benefits 34 TAC sec.sec.85.1, 85.3, 85.7, 85.9 The Employees Retirement System of Texas adopts amendments to sec.sec.85.1, 85.3, 85.7, and 85.9, relating to the Flexible Benefits Program, with a technical change to the proposed text of sec.85.7(c)(1)(A), as published in the March 13, 1998, issue of the Texas Register (23 TexReg 2746). The amendments are being made to provide more meaningful benefits to state employees. The amendments allow participants more opportunities to make mid-term changes to their flexible benefits elections and to acknowledge the role of the Family and Medical Leave Act. No comments were received regarding adoption of these amendments. The amendments are adopted under the Insurance Code, Article 3.50-2, sec.4A, which provides the Board of Trustees with the authority to promulgate rules consistent with the Code. sec.85.7.Enrollment. (a) Election of Benefits (1)-(3) (No change) (4) An election to participate in a reimbursement plan must be for a specified dollar amount plus the administrative fee and for eligible terminated employees an additional 2% service charge on the elected amount for continuation coverage authorized under the Public Health Service Act. (5) (No change) (b) (No change) (c) Benefit election irrevocable except for change in family status. (1) An election to participate shall be irrevocable for the plan year unless an eligible change in family status occurs. The allowable change in election must be consistent with the change in family status event. Documentation, as prescribed by the plan administrator, must be submitted in support of the change in family status. (A) Health care reimbursement plan. A change in family status includes marriage; birth; adoption; placement for adoption; acquisition of UGIP eligible dependent; gaining legal custody of a child; spouse terminates employment or goes from full-time to part-time employment status; or spouse or dependent has a significant decrease or loss of coverage imposed by a third party provider. An eligible change in family status permits a participant to elect to participate or increase election amounts consistent with the change in family status event. (B) Dependent care reimbursement plan. A change in family status includes marriage; divorce; annulment; death of spouse or dependent; dependent loses eligibility for UGIP; loss of legal custody of child; birth, adoption, placement for adoption; acquisition of UGIP eligible dependent; gaining legal custody of a child; termination or gaining of employment by a spouse; change from full-time to part-time or part-time to full-time employment status by employee or spouse; workshift change by employee or spouse; spouse goes on or returns from leave without pay; and a significant cost change imposed by a third party provider. An eligible change in family status permits a participant to change the election or to increase or decrease the election amount consistent with the change in family status event. (2) A request to change election may not be made following a pay increase or decrease, pay shortage, paid leave, transfer to new agency, institution, or location within the same plan year, return to state or institution employment from leave with or without pay within the same plan year, financial hardship, loss of eligibility for health coverage by a health maintenance organization, or change in day care provider, unless imposed by a third party provider. (3) Changes will apply prospectively for the remainder of the plan year unless a subsequent family status change occurs during the plan year. (4) (No change) (d) Payment of flexible benefit dollars. (1) Flexible benefit dollars from an active duty participant shall be recovered by the State of Texas or institution of higher education through payroll withholding at least monthly during the plan year and remitted by the State of Texas or institution of higher education to the Employees Retirement System of Texas for the purpose of purchasing benefits. For the health care reimbursement account only, flexible benefit dollars from employees on leave without pay status or who have insufficient funds for any month shall be recovered through direct after-tax payment from the participant or upon the return of the employee to active duty status from payroll withholding, for the total amount due. Terminated or leave without pay employees with health care reimbursement account continuation coverage shall remit after-tax dollars, on a monthly basis, directly to the Employees Retirement System of Texas for the plan year, except as described in sec.85.3(b)(3)(D) of this title (relating to Eligibility and Participation). (2)-(3) (No change (e)-(f) (No change) This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 20, 1998. TRD-9805537 Shelia W. Beckett Executive Director Employees Retirement System of Texas Effective date: September 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 867-3125 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART I. Texas Department of Human Services CHAPTER 19. Nursing Facility Requirements for Licensure and Medicaid Certification SUBCHAPTER J. Quality of Care 40 TAC sec.19.901 The Texas Department of Human Services (DHS) adopts an amendment to sec.19.901, concerning Quality of Care, without changes to the proposed text as published in the February 13, 1998, issue of the Texas Register (23 TexReg 1268). The text will not be republished. Justification of the amendment is that medically fragile children in nursing facilities will receive closer supervision and care. The amendment will function by ensuring that nursing facilities that admit children with special needs provide adequate staffing for their care. The amendment targets children with respiratory care needs and those with daily tracheostomy care. The department received no comments regarding the proposal. The amendment is adopted under the Health and Safety Code, Chapter 242, and under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs. The amendment implements the Health and Safety Code, sec.242.037, and the Human Resources Code, sec.sec.22.001-22.030. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805745 Glenn Scott General Counsel, Legal Services Texas Department of Human Services Effective date: May 15, 1998 Proposal publication date: February 13, 1998 For further information, please call: (512) 438-3765 PART XIX. Texas Department of Protective and Regulatory Services CHAPTER 715.Day Care Licensing The Texas Department of Protective and Regulatory Services (TDPRS) adopts the repeal of sec.sec.715.231, 715.330, 715.433, and 715.501- 715.507, without changes to the proposed text published in the March 13, 1998, issue of the Texas Register (23 TexReg 2775). The justification for the repeals is to delete rules that are out of date and that are substantively covered by other rules. For waivers and variances, sec.725.2023 (relating to Requesting the Waiver/Variance) covers the topic for all standards, regardless of the setting. Sections 715.501-715.507, standards for registered family homes, should have been deleted when the more recent rules became effective January 30, 1990. TDPRS is therefore adopting the repeal of Subchapter F, Standards for Registered Family Homes, at this time. The repeals will function by having current rules that will be clearer for the general public, as well as for those operators in child care who must comply with the rules. No comments were received regarding adoption of the repeals. SUBCHAPTER C.Standard for Kindergartens and Nursery Schools 40 TAC sec.715.231 The repeal is adopted under the Human Resources Code (HRC), Chapters 40 and 42, which describe the department's regulatory and rulemaking authority. The repeal implements the HRC, Chapters 40 and 42. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805795 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER D.Standards for Schools: Grades Kingergarten and Above 40 TAC sec.715.330 The repeal is adopted under the Human Resources Code (HRC), Chapters 40 and 42, which describe the department's regulatory and rulemaking authority. The repeal implements the HRC, Chapters 40 and 42. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805799 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER E.Minimum Standards for Day Care Centers 40 TAC sec.715.433 The repeal is adopted under the Human Resources Code (HRC), Chapters 40 and 42, which describe the department's regulatory and rulemaking authority. The repeal implements the HRC, Chapters 40 and 42. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805800 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER F.Standards for Registered Family Homes 40 TAC sec.sec.715.501-715.507 The repeals are adopted under the Human Resources Code (HRC), Chapters 40 and 42, which describe the department's regulatory and rulemaking authority. The repeals implement the HRC, Chapters 40 and 42. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805801 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 CHAPTER 725.General Licensing Procedures The Texas Department of Protective and Regulatory Services (TDPRS) adopts amendments to sec.sec.725.1001, 725.1403, 725.1804, 725.2002, 725.2018, 25.2020, 725.2023, 725.2024, 725.2028, 725.2030, 725.2033, 725.2046, 725.4052, and 725.7001; and adopts the repeal of sec.sec.725.2025 and 725.2031, without changes to the proposed text published in the March 13, 1998, issue of the Texas Register (23 TexReg 2776). The justification for the proposal is to bring TDPRS rules into compliance with current legislation and to ensure consistency in the rules. The amendments to sec.sec.725.2023 and 725.2024 add a time limit for requests for administrative reviews. The amendment to sec.725.2033 deletes the procedure for issuing temporary registration to ensure that registration, as licenses and certificates, are not issued unless all standards, rules, and statute requirements are in compliance. The amendment to sec.725.7001 deletes the reference to harassment, which is covered by the right of the facility/family home to an administrative review anytime there is a question about TDPRS's right to access information that is believed to be outside TDPRS's authority. The proposal will function by providing public access to clarified rules for operators of child care who must comply with these rules. No comments were received regarding adoption of the proposal. SUBCHAPTER A.Definitions 40 TAC sec.725.1001 The amendment is adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendment implements the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805803 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER O.Exemptions from Licensing 40 TAC sec.725.1403 The amendment is adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendment implements the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805805 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER S.Administrative Procedures 40 TAC sec.725.1804 The amendment is adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendment implements the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805806 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER U.Day Care Licensing Procedures 40 TAC sec.sec.725.2002, 725.2018, 725.2020, 725.2023, 725.2024, 725.2028, 725.2030, 725.2033, 725.2046 The amendments are adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendments implement the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805807 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 40 TAC sec.725.2025, sec.725.2031 The repeals are adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The repeals implement the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805808 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER PP.Release Hearings 40 TAC sec.725.4052 The amendment is adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendment implements the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805809 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER NNN.Abuse/Neglect Investigations in Child Care Facilities 40 TAC sec.725.7001 The amendment is adopted under the Human Resources Code, Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs. The amendment implements the Human Resources Code, sec.sec.42.001-42.077. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on April 24, 1998. TRD-9805810 C. Ed Davis Deputy Director, Legal Services Texas Department of Protective and Regulatory Services Effective date: June 1, 1998 Proposal publication date: March 13, 1998 For further information, please call: (512) 438-3765