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 XII. Advisory Commission on State Emergency Communications CHAPTER 251. Regional Plans - Standards 1 TAC sec.251.3 The Advisory Commission on State Emergency Communications (ACSEC) adopts an amendment to sec.251.3, Guidelines for Addressing Funds, concerning the use and distribution of 9-1-1 funds and other related funds, without changes to the proposed text as published in the April 3, 1998, issue of the Texas Register (23 TexReg 3391) and will not be republished. The addressing resource availability and evolving technologies have provided the basis for the reevaluation of this rule. Indicators identify a need to reassess the definitions of addressing activities and addressing completion. The amendment will provide for more timely completion of county rural addressing projects. There were no comments received regarding adoption of the amendment. The amendment is adopted under Health and Safety Code, Chapter 771, sec.sec.771.051, 771.056, and 771.057, which provide the Advisory Commission on State Emergency Communications with the authority to develop and amend a regional plan that meets standards set for the operation of prompt and efficient 9-1-1 services throughout a region. Street addresses are essential to E9-1-1 systems utilizing the Automatic Location Identifier feature which displays locations of 9-1-1 callers. 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 August 17, 1998. TRD-9813005 James D. Goerke Executive Director Advisory Commission on State Emergency Communication Effective date: September 6, 1998 Proposal publication date: April 3, 1998 For further information, please call: (512) 305-6933 1 TAC sec.251.9 The Advisory Commission on State Emergency Communications (ACSEC) adopts new sec.251.9, Guidelines for Addressing Maintenance Funds, concerning the use and distribution of 9-1-1 funds and other related funds, without changes to the proposed text as published in the May 8, 1998, issue of the Texas Register (23 TexReg 4433) and will not be republished. The justification for the new section is to require proper maintenance of maps and records associated with an addressing system for the proper operation of an E9-1-1 system and the delivery of a caller's location. The section will function by providing guidelines to assist local governments in requesting funds for the maintenance of rural addressing systems in Texas. During the comment period, the ACSEC received comments from Map Specialists Addressing Group, Inc., State Representative Clyde Alexander, the Alamo Area Council of Governments, the Heart of Texas Council of Governments, Llano County, and the Capital Area Planning Council. A summary of the comments and ACSEC's responses follow: Map Specialists Addressing Group, Inc., submitted that the new proposed rule limits their right to free enterprise by excluding mechanisms to allow the Counties to receive maintenance funds from the State program to pay for their services. They further stated that the proposed rule would only worsen the existing problem of training and staffing in the majority of the rural counties. Texas State Representative Clyde Alexander (District 12) is concerned about the paragraph regarding street sign replacement. He states that because of recent budget constraints involving the ACSEC and Councils of Governments, many of the counties in his district cannot afford to share the cost of replacing street signs. The core function of a 9-1-1 system is proper addressing, including street signage. The Alamo Area Council of Governments stated that as a result of local government input the cap on personnel should not be included in the proposed rule and that the purchase of new signs in the county should be considered as an authorized expenditure. The Council further states that both new street signs and the replacement/maintenance of existing street signs should be authorized and that the counties be allowed to use the funds as they see fit. The Heart of Texas Council of Governments 9-1-1 Advisory Committee requested clarification regarding the cost share portion of the replacement of existing street signs. The committee felt that each county would be willing to install the signs as their cost share portion. The Committee requests that sign installation be includes as part of street sign replacement. Llano County submitted a resolution requesting the Commission to fund at least one full-time person for Llano County. The Capital Area Planning Council provided a letter from its Emergency Communications Advisory Committee urging the ACSEC to provide funding for at least one full-time person in its region. The Advisory Commission on State Emergency Communications does not agree that an increase in the maximum allowable full time equivalent level of 0.5 is reasonable without appropriate justification. However, there remains a question as to what justification may be used. The Commission recommends that population statistics and growth rates, based on those statistics, be used to determine justification for an increase in full time equivalent for addressing maintenance. Statistics used should be provided by the Texas State Data Center at Texas A&M University to ensure a consistent baseline. The Commission does not agree with using sign installation labor as the cost share portion of street sign replacement. As street signs provide benefits for more than just 9-1-1 services, the Commission proposes a 50/50 cost share for the replacement of existing street signs in the unincorporated areas of a county. Should there be a need for the installation of new street signs, due to the development of a new subdivision in the county, the county should modify its existing subdivision regulations to require the developer to assume those costs. In all other cases, it would be the responsibility of the county to place the new signs. The Commission does not agree that counties be able to use addressing maintenance funds except as outlined within this rule. The new section is adopted under Texas Health and Safety Code, Chapter 771, sec.sec.771.051, 771.056, and 771.057, which provides the Advisory Commission on State Emergency Communications with the authority to develop and amend a regional plan that meets standards set for the operation of prompt and efficient 9-1-1 services throughout a region. The maintenance of street addresses is essential to E9-1-1 systems utilizing the Automatic Location Identification feature which displays the locations of 9-1-1 callers. 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 August 17, 1998. TRD-9813006 James D. Goerke Executive Director Advisory Commission on State Emergency Communication Effective date: September 6, 1998 Proposal publication date: May 8, 1998 For further information, please call: (512) 305-6933 TITLE 4. AGRICULTURE PART II. Texas Animal Health Commission CHAPTER 32.Hearing and Appeal Procedures The Texas Animal Health Commission adopts amendments to sec.sec.32.1, 32.2 and 32.5 and the repeal of sec.32.3 and sec.32.4, concerning hearing and appeal procedures, without changes to the proposed text as published in the June 26, 1998, issue of the Texas Register (23 TexReg 6678). Section 32.1 and sec.32.2 are being amended to update statutory references. The definitions in sec.32.1 are also amended to comply with new Texas Register requirements. Section 32.5(a) and (b) are replaced by the reference in sec.32.2 to the rules of the State Office of Administrative Hearings. Section 32.3 and sec.32.4 are no longer necessary because sec.32.2 adopts rules of State Office of Administrative Hearings. No comments were received regarding adoption of the repeals and amendments. 4 TAC sec.sec.32.1, 32.2, 32.5 The amendments are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.038, 161.041 and 161.046, which authorizes the Commission to enact rules to eradicate communicable disease. 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 August 17, 1998. TRD-9812983 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: June 26, 1998 For further information, please call: (512)719-0714 4 TAC sec.32.3, sec.32.4 The repeals are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.038, 161.041 and 161.046, which authorizes the Commission to enact rules to eradicate communicable disease. 32.3. Hearing Officer and Commission Authority. 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 August 17, 1998. TRD-9812984 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: June 26, 1998 For further information, please call: (512)719-0714 CHAPTER 35.Brucellosis The Texas Animal Health Commission adopts amendments to sec.sec.35.1-35.4, 35.6, 35.41, and new sec.35.49, concerning eradication of brucellosis in cattle and swine. Section 35.6 is adopted with changes from the proposed text as published in the July 3, 1998, issue of the Texas Register (23 TexReg 6803). Sections 35.1-35.5, 35.41, and 35.49 are adopted without changes and will not be republished. The amendment to sec.35.1 is necessary so RB 51 vaccinated cattle are not given leniency in interpretation of test results to insure that infection is not overlooked. Also, some obsolete definitions are being removed to simplify and clarify the regulations. If adopted, the proposal will provide understandable definitions that minimize the possibility of mistaking brucellosis vaccine reactions with brucellosis disease. The amendment to sec.35.2 is necessary to increase surveillance for brucellosis by testing cattle at a younger age and to insure that infection is not misdiagnosed as a vaccine reaction to RB51. Editorial changes are also being made to clarify the regulations. If adopted, the revision will provide clear regulations that will enhance case finding and ultimately reduce time needed for disease eradication. The amendment to sec.35.3 is necessary to minimize the possibility of mistaking brucellosis vaccine reactions with brucellosis disease. Also, some regulations are being removed because they are no longer in use. If adopted, there will be less misdiagnosis due to confusion in test interpretation when using RB 51 vaccine. The amendment to sec.35.4 is necessary to increase surveillance testing by required cattle to be tested at younger ages. Some regulations involving Class C States and areas are being removed because they are no longer in use. If adopted, the public will benefit from simplified regulations and increased surveillance which minimizes the possibility of disease spread. The amendment to sec.35.6 is necessary to enhance depopulation of infected herds which should reduce the time necessary to accomplish disease eradication. If adopted, the public will benefit from reduced disease transmission and this should reduce time required to eradicate the disease. The amendment to sec.35.41 will expedite interstate movement of hogs when there is no change of ownership. This will not pose any significant disease risk for swine in Texas. New sec.35.49 requires swine semen to be from validated swine brucellosis free herds. The new section is necessary to comply with national program standards to maintain current status and prevent movement restrictions on Texas swine. No comments were received regarding adoption of the amendments and new section. SUBCHAPTER A.Eradication of Brucellosis in Cattle 4 TAC sec.sec.35.1-35.4, 35.6 The amendments are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, 163.061, and 163.068, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture Code. sec.35.6. Indemnity Payments to Owners of Cattle Exposed to Brucellosis. (a) (No change.) (b) Criteria for selection of herds for indemnity payment: (1) the herd must have a professional diagnosis, supported by culture or significant serology and compatible history; or (2) a herd not meeting paragraph (1) of this subsection is recommended for indemnity by the state epidemiologist; (3) all selections of herds or cattle for payment of indemnity are subject to availability of funds. (c) General Requirements. (1) The Commission, through its Executive Director, will determine the amount and number of animals for which indemnity will be paid. The owner of a herd selected for indemnity may be reimbursed from TAHC funds for depopulation at a total rate not to exceed: (A) $100 per head for up to a total of 100 head of cattle which can be composed of exposed nursing males and negative exposed sexually intact females 18 months of age and older; and (B) $100 per head for not more than five negative exposed bulls 18 months of age and older; and (C) Actual cost of spaying not to exceed $10 per head. A spaying certificate and the proof of payment for cost of spaying must be submitted simultaneously with the indemnity claim. (2) Depopulation funds shall not be paid for weaned steers or spayed heifers. (3) All nursing male calves shall be castrated or "B" branded and permitted for immediate slaughter. (4) (No change.) (5) Depopulated sexually intact cattle shall be branded with the letter "B" high on the left hip near the tailhead and identified with a reactor eartag within the specified time intervals according to applicable state/federal requirements and prior to movement from the premise. (6) Sexually intact cattle shall be moved from the premise accompanied with a VS 1-27. They shall either be moved directly to slaughter or through an approved livestock market for sale directly to slaughter and accompanied with a VS 1-27 from the market. In either case the cattle shall be slaughtered within the specified time intervals according to applicable state/federal regulations following identification. Steers and spayed heifers may be retained on the premise or move without restrictions. (7) The owner of a herd approved for depopulation must agree to complete a herd test of all cattle 18 months of age and older except steers and spayed heifers no later than six months after repopulation with test-eligible breeding replacements. (8) The owner of a herd approved for depopulation must agree to complete a herd test of all cattle 18 months of age and older except steers and spayed heifers in units not depopulated six to 12 months after depopulation. (d) (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 August 17, 1998. TRD-9812985 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512)719-0714 SUBCHAPTER B.Eradication of Brucellosis in Swine 4 TAC sec.35.41, sec.35.49 The amendment and new section are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, and 165.023, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture 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 August 17, 1998. TRD-9812986 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512) 719-0714 CHAPTER 43.Tuberculosis SUBCHAPTER A.Cattle 4 TAC sec.43.2 The Texas Animal Health Commission adopts an amendment to sec.43.2, concerning tuberculosis, without changes to the proposed text as published in the July 3, 1998, issue of the Texas Register (23 TexReg 6811). The amendment is necessary to clarify the current regulations. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, and 162.003, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture 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 August 17, 1998. TRD-9812987 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512)719-0714 CHAPTER 51.Interstate Shows and Fairs 4 TAC sec.51.2 The Texas Animal Health Commission adopts an amendment to sec.51.2, concerning interstate shows and fairs, with changes to the proposed text as published in the July 3, 1998, issue of the Texas Register (23 TexReg 6812). The amendment is necessary to reflect the reduced test eligible age for cattle entering from other states. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, and 163.061, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture Code. sec.51.2. General Requirements. (a) (No change.) (b) Certificate of veterinary inspection. (1) All nonquarantined livestock or poultry entering Texas from any state, territory, or foreign country shall have a certificate of veterinary inspection, except: (A) cattle 18 months of age and over delivered directly from the farm of origin to slaughter or a USDA specifically approved livestock market by the owner or consigned there and accompanied by a waybill; (B) cattle 18 months of age and over entering from other than a farm-of-origin may be moved to slaughter, to a designated pen, or to a quarantined feedlot when accompanied by an "S" permit on which each animal is individually identified. Brucellosis test data shall be written on the "S" permit and include test date and results of that test; (C) steers, spayed heifers, cattle under 18 months of age, sheep, goats, and equine delivered to slaughter or livestock market by the owner or consigned there and accompanied by a waybill; (D)-(E) (No change.) (F) steers, spayed heifers, and cattle under 18 months of age originating in New Mexico which are accompanied by a New Mexico official certificate of livestock inspection along with proof of brucellosis vaccination of heifers which are required to be vaccinated. (2) The certificate of veterinary inspection shall state that: (A) (No change.) (B) the animals were subjected to tests, immunizations, and treatment required by rule of the commission. Animals that have been vaccinated or tested for any disease as required by the commission shall be individually identified on the certificate of veterinary inspection except that brucellosis vaccinated heifers under 18 months of age with tattoos and vaccination tags require only a statement by the veterinarian that they are vaccinated and individually identified. (c)-(e) (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 August 17, 1998. TRD-9812988 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512)719-0714 CHAPTER 55.Swine The Texas Animal Health Commission adopts the repeal of sec.55.1 and new sec.55.1 and amendments to sec.sec.55.4, 55.6, and 55.9, concerning swine, without changes to the proposed text as published in the July 3, 1998, issue of the Texas Register (23 TexReg 6813). The amendment to sec.55.4 adds requirements for livestock markets handling swine. The amendment is necessary to comply with national program standards to maintain current status and prevent movement restrictions on Texas swine. The amendment to sec.55.6 provides that an entry permit is not necessary for swine entering Texas from a swine commuter herd. This provision with the amendment to sec.35.41 expedites interstate movement of hogs when there is no change of ownership. The amendment to sec.55.9 changes the definition of "feral swine" to match the definitions in the federal standards. This is necessary to assure that Texas maintains its current status and to prevent movement restrictions on Texas swine. Section 55.1 is repealed and replaced to comply with national swine brucellosis and pseudorables programs in order to maintain current status and prevent movement restrictions on Texas swine. The new section establishes change of ownership requirements for swine. No comments were received regarding adoption of the repeal, new section, and amendments. 4 TAC sec.55.1 The repeal is adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, and 165.022, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture 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 August 17, 1998. TRD-9812989 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512)719-0714 4 TAC sec.sec.55.1, 55.4, 55.6, 55.9 The new section and amendments are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.041, 161.046, and 165.022, which authorizes the Commission to promulgate rules in accordance with the Texas Agriculture 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 August 17, 1998. TRD-9812990 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: July 3, 1998 For further information, please call: (512)719-0714 CHAPTER 59.General Practice and Procedures 4 TAC sec.sec.59.2, 59.3, 59.6 The Texas Animal Health Commission adopts amendments to sec.sec.59.2, 59.3 and 59.6, concerning general practice and procedures, without changes to the proposed text as published in the June 26, 1998, issue of the Texas Register (23 TexReg 6681). The amendment to sec.59.2 clarifies that comments, as well as complaints, can be addressed to the Commission complaint address and telephone line. Section 59.3 is amended to specify how Commission committees will operate. The amendment to sec.59.6 specifies what action the Commission may take in response to a Petition for Rulemaking. No comments were received regarding adoption of the amendments. The amendments to sec.59.2 are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.033, 161.034, 161.041 and 161.046, which authorizes the Commission to enact rules to eradicate communicable disease. The amendments to sec.59.3 and sec.59.6 are adopted under the Texas Agriculture Code, Chapter 161, sec.sec.161.030, 161.041 and 161.046, which authorizes the Commission to enact rules to eradicate communicable disease. 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 August 17, 1998. TRD-9812991 Kathryn A. Reed General Counsel Texas Animal Health Commission Effective date: September 6, 1998 Proposal publication date: June 26, 1998 For further information, please call: (512)719-0714 TITLE 7. BANKING AND SECURITIES PART II. Texas Department of Banking CHAPTER 17.Trust Company Regulation SUBCHAPTER A.General 7 TAC sec.17.4 The Finance Commission of Texas (the commission) adopts new sec.17.4, concerning bonding requirements for directors, managers, managing participants, officers, and employees, of trust companies. The section is adopted without changes to the proposed text as published in the June 26, 1998, issue of the Texas Register (23 TexReg 6681), and the text will not be published. Pursuant to Texas Civil Statutes, Article 342a-4.110, a trust company is required to maintain a bond for protection and indemnity of clients, in reasonable amounts against dishonesty, fraud, defalcation, forgery, theft, and other insurable losses with a corporate insurance or surety company. A bond is required for each director, manager, managing participant, officer, and employee without regard to whether the person receives salary or other compensation. Upon application, the banking commissioner may eliminate the bonding requirement for a particular individual if the banking commissioner finds that the bonding requirement is unnecessary or burdensome. The commission invites comments from interested parties on whether exemptions from bonding requirements for family trusts should be permitted. New sec.17.4 requires trust companies to comply with the bonding requirements of Texas Civil Statutes, Article 342a-4.110, and sec.17.4, and specifies the types of bonds required to comply with Texas Civil Statutes, Article 342a-4.110, and sec.17.4. The new section also requires that a trust company's board demonstrate that it has thoroughly reviewed the risks associated with its trust business to determine if additional specialized bond coverage is necessary. Additionally, sec.17.4 allows a trust company, under certain circumstances, to utilize a holding company's comprehensive insurance coverage to comply with Texas Civil Statutes, Article 342a-4.110, and sec.17.4. Finally, sec.17.4 requires that a trust company retain all original bonds and make them available to the Texas Department of Banking. The commission received no comments regarding the proposals. The section is adopted under Texas Civil Statutes, Article 342a-1.003(a), which authorizes the commission to adopt rules to implement and clarify the law and to preserve or protect the safety and soundness of trust companies. 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 August 14, 1998. TRD-9812909 Everette D. Jobe General Counsel Texas Department of Banking Effective date: September 3, 1998 Proposal publication date: June 26, 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.21.24, concerning statutory exemptions for trust companies administering family trusts, and new sec.21.51, concerning change of control applications for trust companies. The sections are adopted without changes to the proposed text as published in the June 26, 1998, issue of the Texas Register (23 TexReg 6682), and the text will not be published. Pursuant to Texas Civil Statutes, Article 342a-3.011, a trust company may request in writing that it be exempted from specified provisions of Texas Civil Statutes, Article 342a-1.001 et seq. The banking commissioner may grant the exemption in whole or in part if the banking commissioner finds that the trust company does not transact business with the public. A trust company does not transact business with the public if it acts as a corporate fiduciary for accounts in which all beneficiaries are related within the fourth degree of affinity or consanguinity to the person who controls the trust company. Pursuant to Texas Civil Statutes, Article 342a-3.012(6), a trust company requesting an exemption from the banking commissioner, must provide a list of the specific statutory provisions for which the exemption request is made. New sec.21.24 specifies the information that must be contained in an exemption application, and further specifies the specific provisions of Texas Civil Statutes, Article 342a-1.001 et seq., from which a trust company may request an exemption, subject to conditions or limitations imposed by the banking commissioner. Exemption from these provisions is permissible because trust companies that do not transact business with the public will be limited to administration of family trusts. New sec.21.24 also specifies the provisions from which a trust company may not request an exemption, detailed in subsection (c) and described in the following paragraphs. An exemption may not be requested from Texas Civil Statutes, Article 342a, Chapter 1 (relating to General Provisions). An exemption may not be requested from Texas Civil Statutes, Article 342a-2.002, requiring annual examinations, or Texas Civil Statutes, Article 342a-2.003, requiring the quarterly filing of Statements of Condition and Income, except as otherwise provided by this section. Thus, trust companies that do not transact business with the public will be subject to annual examinations and quarterly filings of Statements of Condition and Income. These provisions are necessary for the Texas Department of Banking (the department) to meet its operational and oversight responsibilities to ensure the safety and soundness of trust companies, thus exemptions from these provisions are not appropriate. However, a trust company may request an exemption from public disclosure of the Report of Trust Assets. Except for Texas Civil Statutes, Article 342a-3.002(11), an exemption may not be made from Chapter 3 (relating to Powers, Organization, Organizational Changes, and Capital and Surplus). These provisions are necessary for the department to ensure the safety and soundness of trust companies, to limit trust companies not transacting business with the public from exceeding their limited purpose of administering family trusts, and to ensure that Texas corporate governance requirements are met. An exemption from Texas Civil Statutes, Article 342a- 3.002(11), requiring that the number of directors, managers, or managing participants, be specified in the articles of association as at least five and no more than 25, one of which must be a resident of this state, is appropriate because under subsection (b)(3) of this section, a minimum of three directors, managers, or managing participants is permissible. Also, although trust companies not transacting business with the public may be authorized to maintain restricted capital at an amount less than the statutory minimum, an exemption from Texas Civil Statutes, Article 342a-3.007(a) (relating to Restricted Capital), is unnecessary because Texas Civil Statutes, Article 342a-3.007(e), allows the banking commissioner, on a case-by-case basis, to reduce the minimum restricted capital amount if certain conditions are met. Generally, however, the banking commissioner will not grant approval for a trust company that does not transact business with the public to maintain restricted capital of less than $250,000. Additionally, an exemption from Texas Civil Statutes, Article 342a- 4.110 (relating to Bonding), is unnecessary because Texas Civil Statutes, Article 342a-4.110(c), grants the commissioner the authority to eliminate the bonding requirement for a particular individual if the bonding requirement is unnecessary or burdensome. A trust company may not request an exemption from Texas Civil Statutes, Article 342a, Chapter 4 (relating to Shares and Participation Shares, Shareholders and Participants, and Management), except that an exemption may be requested from Texas Civil Statutes, Article 342a-4.103(a) (relating to the minimum number of directors, managers, and managing participants) and Article 342a-4.107(a)-(c) (relating to insider transactions). These provisions are necessary for the department to ensure the safety and soundness of trust companies, to limit trust companies not transacting business with the public from exceeding their limited purpose of administering family trusts, and to ensure that Texas corporate governance requirements are met. A trust company may not request an exemption from Texas Civil Statutes, Article 342a, Chapter 5, Subchapter B (relating to State Trust Company Investments); Subchapter D (relating to Other Investment Provisions); Subchapter E (relating to Trust Deposits); and Subchapter F (relating to Liabilities and Pledge of Assets), except that an exemption may be requested from Texas Civil Statutes, Article 342a-5.103 (relating to Subsidiaries). These provisions are necessary for the department to ensure the safety and soundness of trust companies and to limit trust companies not transacting business with the public from exceeding their limited purpose of administering family trusts. New sec.21.24(c) does not allow a trust company to request an exemption from Texas Civil Statutes, Article 342a, Chapter 6 (relating to Enforcement Actions), Chapter 7 (relating to Dissolution and Receivership), and Chapter 8 (relating to General Provisions). These provisions are necessary for the department to meet its operational and oversight responsibilities to ensure the safety and soundness of trust companies and to limit trust companies not transacting business with the public from exceeding their limited purpose of administering family trusts. As adopted, sec.21.24(d) requires the banking commissioner to issue a written notice pursuant to sec.21.4 informing the applicant of the status of the exemption application. Section 21.24(e) requires that all beneficiaries of family trusts obtain a copy of the exemptions granted by the banking commissioner to a trust company. New sec.21.51 pertains to requirements and procedures for change of control applications for trust companies. The adopted rule is based on existing sec.15.81, the change of control rule applicable to banks that will continue to apply to trust companies until the adopted sec.21.51 becomes effective. The commission received no comments regarding the proposals. SUBCHAPTER B.Trust Company Chartering and Powers 7 TAC sec.21.24 The section is adopted pursuant to Texas Civil Statutes, Article 342a- 3.011(e)(2), which authorizes the commission to adopt rules specifying the provisions of Texas Civil Statutes, Article 342a-1.001 et seq., that are subject to an exemption request. The section is also adopted pursuant to Texas Civil Statutes, Article 342a-1.003(a), which authorizes the commission to adopt rules necessary or reasonable to implement and clarify Texas Civil Statutes, Article 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 August 14 , 1998. TRD-9812908 Everette D. Jobe General Counsel Texas Department of Banking Effective date: September 3, 1998 Proposal publication date: June 26, 1998 For further information, please call: (512) 475-1300 SUBCHAPTER E.Change of Control 7 TAC sec.21.51 The section is adopted under Texas Civil Statutes, Article 342a-1.003(a)(1), which authorizes the commission to adopt rules to implement and clarify Texas Civil Statutes, Article 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 August 14, 1998. TRD-9812907 Everette D. Jobe General Counsel Texas Department of Banking Effective date: September 3, 1998 Proposal publication date: June 26, 1998 For further information, please call: (512) 475-1300 TITLE 16. ECONOMIC REGULATION PART I. Railroad Commission of Texas CHAPTER 15. Alternative Fuels Research and Education Division SUBCHAPTER A. General Rules 16 TAC sec.15.30 The Railroad Commission of Texas adopts amendments to sec.15.30, relating to the Propane Alternative Fuels Advisory Committee, without changes to the proposed version published in the July 17, 1998, issue of the Texas Register (23 TexReg 7322). Specifically, the commission amends the date on which the advisory committee is abolished in order to continue the committee in existence until September 1, 2002. The commission received no comments on the proposed amendment. The commission adopts the amendment under Texas Natural Resources Code, sec.113.241, which gives the commission the authority to adopt all necessary rules relating to conducting research and educating the public regarding the use of propane; and Texas Natural Resources Code, sec.113.242, which gives the commission the authority to appoint one or more advisory committees composed of members representing the propane industry, consumers, and other interests to consult with and advise the commission on opportunities and methods to expand the use of propane. Texas Natural Resources Code, sec.sec.113.241 and 113.242, are affected by the proposed amendment. 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 August 11, 1998. TRD-9812705 Mary Ross McDonald Deputy General Counsel Railroad Commission of Texas Effective date: August 31, 1998 Proposal publication date: July 17, 1998 For further information, please call: (512) 463-7008 TITLE 28. INSURANCE PART I. Texas Department of Insurance CHAPTER 9.Title Insurance SUBCHAPTER A.Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas 28 TAC sec.9.1 The Commissioner of Insurance adopts an amendment to 28 TAC sec.9.1 concerning the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (the Basic Manual). Amended sec.9.1 incorporates by reference amendments to the Basic Manual which add a new procedural rule and new forms that provide for a limited coverage mortgagee title policy for home equity Texas homestead property pursuant to Section 50, Article XVI, Texas Constitution. By voter approval on November 4, 1997, the Texas Constitution was amended to permit an encumbrance against homestead property for certain extensions of equity credit. Section 9.1 is adopted with three changes to the proposed text as published in the March 6, 1998, issue of the Texas Register (23 TexReg 2228) and with changes to the proposed amendments to the Basic Manual which the section adopts by reference, all of which are more particularly described below. The amendment concerns the adoption by reference of certain amendments to the Basic Manual. The amended section is necessary to reflect amendments to the Basic Manual, which the section adopts by reference, and to delete unnecessary wording from sec.9.1. The amendments to the Basic Manual are necessary to facilitate the administration and regulation of title insurance in this state by adopting new rules and forms which clarify and standardize the rules and forms which regulate title insurance. The effective date of the section as published in the proposal was April 30, 1998; however, in order to allow for at least twenty days after filing with the Texas Register for the section to become effective, the effective date of the section has been changed to October 1, 1998. The mail code and the name of the Title Insurance Section as published in the proposal have been changed to Mail Code "106-2T" and to "Title Division" to reflect the new mail code and the new name of the Title Division. The new procedural rule in the Basic Manual facilitates the issuing of mortgagee title policies insuring home equity liens on homestead property. Procedural Rule P-46, relating to the Texas Residential Limited Coverage Junior Mortgagee Policy (T- 44); Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45); Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46); and Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement will enable title insurance companies to issue limited coverage mortgagee title policies for home equity Texas homestead property. The new forms are the Texas Residential Limited Coverage Junior Mortgagee Policy Combined Schedule (T-44); Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45); and Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46). Amendments to the procedural rule and form T-44 were proposed by Stewart Title Guaranty Company, Texas Land Title Association, and the Office of Public Insurance Counsel, and all the amendments have been accepted. The amendments to the procedural rule by Texas Land Title Association provide that the amount of loans that could be covered by the junior mortgagee policy would not exceed $100,000; that the junior mortgagee policy additional coverage endorsement could be issued only on the issuance of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44), simultaneously with the issuance of the mortgagee policy; and that a non-substantive change in the order of paragraphs be made in the additional coverage endorsement. The amendments to form T-44 by the Office of Public Insurance Counsel provide the addition of the word "adverse" before "claim" in the section dealing with notification by the insured to the company and clarify the determination of value in the payment of loss. All of the amendments were accepted and incorporated by Stewart Title Guaranty Company, which amended its petition to reflect these amendments. The proposed Rate Rule R-27, Premium For Texas Residential Limited Coverage Junior Mortgagee Policy (T-44); Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45); Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46); Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement are considered under Docket Number 2336. Amended sec.9.1 incorporates by reference certain amendments to the Basic Manual, which facilitate the issuance of mortgagee title policies insuring home equity liens on homestead property. The section adopts by reference and amends the Basic Manual, Section IV, Procedural Rules, to add new Procedural Rule P-46, relating to the Texas Residential Limited Coverage Junior Mortgagee Policy (T- 44); Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45); Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46); and Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement. The new procedural rule provides the scope of coverage and the restrictions required by the constitutional amendment. The new procedural rule also provides that a company may issue a Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement to the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) by adding promulgated language provisions in Endorsement Form T-3. The section also adopts by reference and amends the Basic Manual, Section II, Insuring Forms, to add the following new forms. The new Texas Residential Limited Coverage Junior Mortgagee Policy Combined Schedule (T-44) is the form of the schedule that states the recording information, the exceptions to coverage, and the disclosures regarding the status of the title insurance agent. The new Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) is the form that states the coverage and exceptions based on the date of the policy. The new Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) is the form that states the coverage and exceptions due to changes in the rate of interest of the insured's mortgage loan. Comment: A commenter expressed support for the amendment, but noted that all home equity products need to be put into context as an evolving process. The title insurance industry is attempting to address the concerns of lenders regarding the issues related to making home equity loans and getting title insurance coverage, and the title insurance industry may return within a year with changes to some of these products. Agency Response: The department agrees that the current amendment is an appropriate interim step, and the department may consider suggested additional coverage in future proposed rules. Comment: A commenter expressed concerns and proposed changes to the policy regarding the addition of the word "adverse" before "claim" in the section dealing with notification by the insured to the company and to clarify the determination of value in the payment of loss. The commenter further stated that binding arbitration should not be in a contract of insurance unless it has been negotiated between the parties. Agency Response: The department notes the acceptance and incorporation of the proposed changes by Stewart Title Guaranty Company and acknowledges the general concern regarding binding arbitration, but notes that the product under consideration is designed for purchase by institutional lenders, rather than laypersons. Further, the department notes the responsive comments made by Stewart Title Guaranty Company at the public hearing, that arbitration will be conducive to expedited claims settlements and a lower priced product. The amended section is adopted pursuant to the Insurance Code, Articles 9.07, 9.21, and 1.03A and Section 50, Article XVI, Texas Constitution. Article 9.07 authorizes and requires the commissioner to promulgate or approve rules and policy forms of title insurance and otherwise to provide for the regulation of the business of title insurance. Article 9.21 authorizes the commissioner to promulgate and enforce rules and regulations prescribing underwriting standards and practices, and to promulgate and enforce all other rules and regulations necessary to accomplish the purposes of Insurance Code, Chapter 9, concerning regulation of title insurance. Article 1.03A authorizes the commissioner to adopt rules and regulations for the conduct and execution of the duties and functions of the department as authorized by statute. By voter approval on November 4, 1997, Section 50, Article XVI, Texas Constitution was amended to permit an encumbrance against homestead property for certain extensions of equity credit. The Government Code, sec.sec.2001.004-2001.038 et seq. (Administrative Procedure Act) authorizes and requires each state agency to adopt rules of practice setting forth the nature and requirements of available procedures and to prescribe the procedure for adoption of rules by a state administrative agency. sec.9.1.Basic Manual Of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas. The Texas Department of Insurance adopts by reference the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas as amended effective October 1, 1998. The document is available from and on file at the Texas Department of Insurance, Title Division, Mail Code 106-2T, 333 Guadalupe Street, Austin, Texas 78701-1998. 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 August 17, 1998. TRD-9813001 Lynda H. Nesenholtz General Counsel and Chief Clerk Texas Department of Insurance Effective date: October 1, 1998 Proposal publication date: March 6, 1998 For further information, please call: (512) 463-6327 TITLE 30. ENVIRONMENTAL QUALITY PART I. Texas Natural Resource Conservation CHAPTER 39.Public Notice SUBCHAPTER F.Public Notice of Radioactive Material License Applications 30 TAC sec.sec.39.303, 39.305, 39.307, 39.309, 39.313 The Texas Natural Resource Conservation Commission (commission) adopts amendments to sec.sec.39.303, 39.305, 39.307, 39.309 and new sec.39.313, concerning Public Notice. Section 39.313 is adopted with a change to the proposed text as published in the April 24, 1998, issue of the Texas Register (23 TexReg 3997). Sections 39.303, 39.305, 39.307, and 39.309 are adopted without changes and will not be republished. EXPLANATION OF ADOPTED RULE The purpose of these rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the Texas Department of Health (TDH) by Senate Bill (SB) 1857, 75th Legislature, 1997; to incorporate revisions and additions which are needed to maintain compatibility with the rules of the United States Nuclear Regulatory Commission (NRC); and to continue with agency-wide regulatory reform efforts to simplify language and requirements. Compatibility of the commission's rules with the federal program is necessary to preserve the status of Texas as an Agreement State under Title 10 Code of Federal Regulations Part 150 and the "Articles of Agreement between the United States Atomic Energy Commission and the State of Texas for Discontinuance of Certain Commission Regulatory Authority and Responsibility Within the State Pursuant to Section 274 of the Atomic Energy Act of 1954, as Amended." In sec.39.313 (relating to Public Notification and Public Participation), the first sentence is amended to remove an incorrect reference and replace it with the correct one. The removed incorrect reference to "sec.336.603 of this title (relating to Radiological Criteria for Unrestricted Use)" would have made this requirement more stringent than the federal rule and in disagreement with the cross reference to this notice requirement in sec.336.611 (relating to Public Notification and Public Participation). This incorrect reference has been replaced with the correct reference to "sec.336.609 of this title (relating to Alternate Criteria for License Termination)." FINAL REGULATORY IMPACT ANALYSIS The commission has reviewed the adopted rulemaking in light of the regulatory analysis requirements of Texas Government Code sec.2001.0225 and has determined that the rulemaking is not subject to sec.2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act, and it does not meet any of the four applicability requirements listed in sec.2001.0225(a). Although this rule is to protect the environment and reduce the risk to human health from environmental exposure, this is not a major environmental rule because it does not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, this rule does not exceed a standard set by federal law, exceed an express requirement of state law, exceed a requirement of a delegation agreement, or adopt a rule solely under the general powers of the agency. The rule adds federal requirements that are necessary to maintain compatibility with the rules of the NRC. TAKINGS IMPACT ASSESSMENT The commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code sec.2007.043. The following is a summary of that Assessment. The specific purpose of the rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH by SB 1857, 75th Legislature, 1997, to incorporate revisions and additions which are needed to maintain compatibility with the rules of the NRC, and to continue with agency- wide regulatory reform efforts to simplify language and requirements. Compatibility of the commission's rules with the federal program is necessary to preserve the status of Texas as an Agreement State under Title 10 Code of Federal Regulations Part 150 and the "Articles of Agreement between the United States Atomic Energy Commission and the State of Texas for Discontinuance of Certain Commission Regulatory Authority and Responsibility Within the State Pursuant to the Atomic Energy Act sec.274 of 1954, as Amended." The rules will substantially advance this specific purpose by removing commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH and by incorporating into commission rules the new federal requirements contained in "Resolution of Dual Regulation of Airborne Effluents of Radioactive Materials, Clean Air Act", 61 Fed. Reg. 65120, December 10, 1996, effective January 9, 1997 and "Radiological Criteria for License Termination", 62 Fed. Reg. 39058, July 21, 1997, effective August 20, 1997. Promulgation and enforcement of these rules will not burden private real property which is the subject of the rules because they primarily implement less stringent federal decommissioning requirements. Section 336.501 extends the deadline to apply for a license to decommission from January 1, 1999, to January 1, 2000. If these existing, unlicensed sites decommission before January 1, 2000, owners or operators will avoid license application and annual fees. For both licensed and unlicensed disposal sites, new alternatives for decommissioning without meeting the criteria for unrestricted use are offered in new sections sec.336.607 (relating to Criteria for License Termination under Restricted Conditions) and sec.336.609 (relating to Alternate Criteria for License Termination). A site using one of these alternatives may save on decommissioning cost. Also, the following exceptions to the application of Chapter 2007 of the Texas Government Code listed in Texas Government Code sec.2007.003(b) apply to these rules: Section 2007.003(b)(4)--an action that is reasonably taken to fulfill an obligation mandated by federal law. COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW The commission has reviewed the adopted rulemaking and found that the rule is neither identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11, nor will it affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11. Therefore, the adoption is not subject to the Coastal Management Program. HEARING AND COMMENTERS A public hearing was not held for this rulemaking. The comment period closed May 26, 1998. No comments were received. STATUTORY AUTHORITY The amendments and new sections are adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. sec.39.313. Public Notification and Public Participation. Upon the receipt of a license termination plan or decommissioning plan from the licensee, or a proposal by the licensee for release of a site under sec.336.607 of this title (relating to Criteria for License Termination under Restricted Conditions) or sec.336.609 of this title (relating to Alternate Criteria for License Termination), or whenever the commission deems notice to be in the public interest, the commission shall: (1) notify and solicit comments from: (A) local and state governments in the vicinity of the site and any Indian Nation or other indigenous people that have treaty or statutory rights that could be affected by the decommissioning; and (B) the United States Environmental Protection Agency for cases where the licensee proposes to release a site under sec.336.609 of this title (relating to Alternate Criteria for License Termination); and (2) publish a notice in the Texas Register and in a forum, such as local newspapers, letters to state or local organizations, or other appropriate forum, that is readily accessible to individuals in the vicinity of the site, and solicit comments from affected parties. 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 August 14, 1998. TRD-9812918 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 CHAPTER 305.Consolidated Permits SUBCHAPTER C.Application for Permit 30 TAC sec.305.54 The Texas Natural Resource Conservation Commission (commission) adopts an amendment to sec.305.54, concerning Additional Requirements for Radioactive Material Licenses. Section 305.54 is adopted without change to the proposed text as published in the April 24, 1998, issue of the Texas Register (23 TexReg 4015) and will not be republished. EXPLANATION OF ADOPTED RULE The purpose of these rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the Texas Department of Health (TDH) by Senate Bill (SB) 1857, 75th Legislature, 1997. FINAL REGULATORY IMPACT ANALYSIS The commission has reviewed the adopted rulemaking in light of the regulatory analysis requirements of Texas Government Code sec.2001.0225 and has determined that the rulemaking is not subject to sec.2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act, and it does not meet any of the four applicability requirements listed in sec.2001.0225(a). Although this rule is to protect the environment and reduce the risk to human health from environmental exposure, this is not a major environmental rule because it does not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, this rule does not exceed a standard set by federal law, exceed an express requirement of state law, exceed a requirement of a delegation agreement, or adopt a rule solely under the general powers of the agency. TAKINGS IMPACT ASSESSMENT The Commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code sec.2007.043. The following is a summary of that Assessment. The specific purpose of the rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH by SB 1857, 75th Legislature, 1997. The rules will substantially advance this specific purpose by removing commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH. Promulgation and enforcement of these rules will not burden private real property which is the subject of the rules because they merely delete commission rule language on a jurisdiction transferred to the TDH by statute. COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW The commission has reviewed the adopted rulemaking and found that the rule is neither identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11, nor will it affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11. Therefore, the adoption is not subject to the Coastal Management Program. HEARING AND COMMENTERS A public hearing was not held for this rulemaking. The comment period closed May 26, 1998. No comments were received. STATUTORY AUTHORITY This amendment is adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812919 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 CHAPTER 336.Radioactive Substance Rules The Texas Natural Resource Conservation Commission (commission) adopts amendments to sec.sec.336.1, 336.2, 336.101, 336.102, 336.107, 336.201, 336.203, 336.209, 336.211, 336.213, 336.304, 336.331, 336.332, 336.334, 336.341, 336.348, 336.352, 336.356, 336.501, 336.502, 336.503, 336.512, 336.513, 336.701, 336.702, 336.802, 336.803, 336.804, 336.805, 336.806, 336.807; repeals of sec.sec.336.104, 336.108, 336.217, 336.357, 336.366, 336.514, 336.601-336.606, 336.613-336.629, 336.636; and new sec.sec.336.514, 336.515, 336.517, 336.519, 336.601, 336.603, 336.605, 336.607, 336.609, 336.611, 336.613, concerning Radioactive Substance Rules. Section 336.519 is adopted with changes to the proposed text as published in the April 24, 1998, issue of the Texas Register (23 TexReg 4016). The remaining sections are adopted without changes and will not be republished. EXPLANATION OF ADOPTED RULE The purpose of these rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the Texas Department of Health (TDH) by Senate Bill (SB) 1857, 75th Legislature, 1997; to incorporate revisions and additions which are needed to maintain compatibility with the rules of the United States Nuclear Regulatory Commission (NRC); and to continue with agency-wide regulatory reform efforts to simplify language and requirements. Compatibility of the commission's rules with the federal program is necessary to preserve the status of Texas as an Agreement State under Title 10 Code of Federal Regulations Part 150 and the "Articles of Agreement between the United States Atomic Energy Commission and the State of Texas for Discontinuance of Certain Commission Regulatory Authority and Responsibility Within the State Pursuant to Section 274 of the Atomic Energy Act of 1954, as Amended." In sec.336.519(a) a typographical error has been corrected. In the second sentence, in the phrase "30 days before to the expiration date," the unnecessary word "to" has been deleted. FINAL REGULATORY IMPACT ANALYSIS The commission has reviewed the adopted rulemaking in light of the regulatory analysis requirements of Texas Government Code sec.2001.0225 and has determined that the rulemaking is not subject to sec.2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act, and it does not meet any of the four applicability requirements listed in sec.2001.0225(a). Although this rule is to protect the environment and reduce the risk to human health from environmental exposure, this is not a major environmental rule because it does not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, this rule does not exceed a standard set by federal law, exceed an express requirement of state law, exceed a requirement of a delegation agreement, or adopt a rule solely under the general powers of the agency. The rule adds federal requirements that are necessary to maintain compatibility with the rules of the Nuclear Regulatory Commission. TAKINGS IMPACT ASSESSMENT The commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code sec.2007.043. The following is a summary of that Assessment. The specific purpose of the rules is to remove commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH by SB 1857, 75th Legislature, 1997, to incorporate revisions and additions which are needed to maintain compatibility with the rules of the NRC, and to continue with agency- wide regulatory reform efforts to simplify language and requirements. Compatibility of the commission's rules with the federal program is necessary to preserve the status of Texas as an Agreement State under Title 10 Code of Federal Regulations Part 150 and the "Articles of Agreement between the United States Atomic Energy Commission and the State of Texas for Discontinuance of Certain Commission Regulatory Authority and Responsibility Within the State Pursuant to the Atomic Energy Act sec.274 of 1954, as Amended." The rules will substantially advance this specific purpose by removing commission rule language related to the source material licensing and by-product disposal jurisdiction transferred to the TDH and by incorporating into commission rules the new federal requirements contained in "Resolution of Dual Regulation of Airborne Effluents of Radioactive Materials, Clean Air Act", 61 Fed. Reg. 65120, December 10, 1996, effective January 9, 1997 and "Radiological Criteria for License Termination", 62 Fed. Reg. 39058, July 21, 1997, effective August 20, 1997. Promulgation and enforcement of these rules will not burden private real property which is the subject of the rules because they primarily implement less stringent federal decommissioning requirements. Section 336.501 extends the deadline to apply for a license to decommission from January 1, 1999, to January 1, 2000. If these existing, unlicensed sites decommission before January 1, 2000, owners or operators will avoid license application and annual fees. For both licensed and unlicensed disposal sites, new alternatives for decommissioning without meeting the criteria for unrestricted use are offered in new sections sec.336.607 (relating to Criteria for License Termination under Restricted Conditions) and sec.336.609 (relating to Alternate Criteria for License Termination). A site using one of these alternatives may save on decommissioning cost. Also, the following exceptions to the application of Chapter 2007 of the Texas Government Code listed in Texas Government Code sec.2007.003(b) apply to these rules: Section 2007.003(b)(4)--an action that is reasonably taken to fulfill an obligation mandated by federal law. COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW The commission has reviewed the adopted rulemaking and found that the rule is neither identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11, nor will it affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11. Therefore, the adoption is not subject to the Coastal Management Program. ADOPTED NOTICE OF REVIEW The commission adopts the review of Chapter 336 concerning Radioactive Substance Rules. The review was conducted in accordance with the General Appropriations Act, Article IX, sec.167, 75th Legislature, 1997. The commission readopts the rules contained in 30 TAC Chapter 336, concerning Radioactive Substance Rules, as required by the General Appropriations Act, Article IX, sec.167. Section 167 requires state agencies to review and consider for readoption rules adopted under the Administrative Procedure Act. The reviews must include, at a minimum, an assessment that the reasons for the rules continue to exist. The commission has reviewed the rules in Chapter 336 and determined that the reasons for adopting those rules continue to exist. The rules are necessary to implement Texas Health and Safety Code Chapter 401 (relating to Radioactive Materials and Other Sources of Radiation) and are needed to maintain compatibility with the rules of the NRC. Compatibility of the commission's rules with the federal program is necessary to preserve the status of Texas as an Agreement State under Title 10 Code of Federal Regulations Part 150 and the "Articles of Agreement between the United States Atomic Energy Commission and the State of Texas for Discontinuance of Certain Commission Regulatory Authority and Responsibility Within the State Pursuant to Section 274 of the Atomic Energy Act of 1954, as Amended." In addition, the rules are needed in the protection of human health and the environment from radioactive substances. The comment period on the review closed May 26, 1997. No comments were received related to the rule review. HEARING AND COMMENTERS A public hearing was not held for this rulemaking. The comment period closed May 26, 1998. No comments were received. SUBCHAPTER A.General Provisions 30 TAC sec.336.1, sec.336.2 STATUTORY AUTHORITY These amendments are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. The readoption of the commission's rules is under Article IX, Section 167, General Appropriations Act, 75th Legislature. 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 August 14, 1998. TRD-9812920 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER B.Radioactive Substance Fees 30 TAC sec.sec.336.101, 336.102, 336.107 STATUTORY AUTHORITY. These amendments are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812921 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 30 TAC sec.336.104, sec.336.108 These repeals are adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812922 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER C.Additional Application, Operation, and License Requirements 30 TAC sec.sec.336.201, 336.203, 336.209, 336.211, 336.213 STATUTORY AUTHORITY These amendments are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812923 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 30 TAC sec.336.217 STATUTORY AUTHORITY The repeal is adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812924 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER D.Standards for Protection Against Radiation 30 TAC sec.sec.336.304, 336.331, 336.332, 336.334, 336.341, 336.348, 336.352, 336.356 STATUTORY AUTHORITY These amendments are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812925 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 30 TAC sec.336.357, sec.336.366 STATUTORY AUTHORITY These repeals are adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812926 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER F.Licensing of Alternative Methods of Disposal of Radioactive Material 30 TAC sec.sec.336.501-336.503, 336.512-336.515, 336.517, 336.519 STATUTORY AUTHORITY These new and amended sections are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. sec.336.519. Expiration and Termination of Licenses. (a) Each license expires at the end of the day on the expiration date stated in the license unless the licensee has filed an application for renewal not less than 30 days before the expiration date stated in the existing license. If an application for renewal in proper form has been filed at least 30 days before the expiration date stated in the existing license, the existing license shall not expire until the application has been finally determined by the commission. For the purposes of this section, "proper form" shall mean that the application includes the information required by sec.336.512 of this title (relating to Technical Requirements for Inactive Disposal Sites) or sec.336.513 of this title (relating to Technical Requirements for Active Disposal Sites). The existing license expires at the end of the day on which the commission makes a final determination to deny the renewal application or, if the determination states an expiration date, the expiration date stated in the determination. (b) Each license revoked by the commission expires at the end of the day on the date of the commission's final determination to revoke the license, or on the expiration date stated in the determination, or as otherwise provided by commission order. (c) Each license continues in effect, beyond the expiration date if necessary, with respect to possession of source material, byproduct material, or other radioactive material until the commission notifies the licensee in writing that the license is terminated. During this time, the licensee shall: (1) limit actions involving source material, byproduct material, or other radioactive material to those related to decommissioning; and (2) continue to control entry to restricted areas until they are suitable for release in accordance with commission requirements. (d) Within 60 days of the occurrence of any of the following, each licensee of an active disposal site shall provide written notification to the executive director: (1) The license has expired under subsection (a) or (b) of this section; or (2) The licensee has decided to permanently cease principal activities at the entire site or in any separate building or outdoor area that contains residual radioactivity such that the building or outdoor area is unsuitable for unrestricted release in accordance with commission requirements; or (3) No principal activities under the license have been conducted for a period of 24 months; or (4) No principal activities have been conducted for a period of 24 months in any separate building or outdoor area that contains residual radioactivity such that the building or outdoor area is unsuitable for release in accordance with commission requirements. (e) The licensee of an active disposal site shall either: (1) within 60 days of the occurrence for which notification is required by subsection (d) of this section, begin decommissioning its site or any separate building or outdoor area that contains residual radioactivity, according to an approved decommissioning plan, so that the building or outdoor area is suitable for release in accordance with commission requirements; or (2) if no decommissioning plan has been submitted, submit a decommissioning plan to the executive director, including a signed statement adjusting the amount of financial assurance based upon the detailed cost estimate included in the decommissioning plan, within 12 months of the notification required by subsection (d) of this section and request an amendment of the license to incorporate the plan into the license; and (3) begin decommissioning within 60 days of the approval of that plan by the commission. (f) The licensee of an inactive disposal site licensed under sec.336.501(c) of this title (relating to Scope and General Provisions), shall provide notice of and begin decommissioning within 90 days of license renewal. The owner or operator of an unlicensed inactive disposal site must apply for a license to decommission the site and begin decommissioning with 90 days of license approval. (g) All licensees shall follow a commission-approved closure plan for decontamination, decommissioning, restoration, and reclamation of buildings and the site. (1) Coincident with the notification required by subsections (d) or (f) of this section, the licensee shall continue to maintain in effect all decommissioning financial assurance until the license is terminated by the commission. (2) The amount of the financial assurance must be increased, or may be decreased, as appropriate, to cover the detailed cost estimate for decommissioning established under sec.336.613(f)(5) of this title (relating to Additional Requirements). (3) Any licensee who has not provided financial assurance to cover the detailed cost estimate submitted with the decommissioning plan shall do so on or before January 1, 1998. (4) Following approval of the decommissioning plan, with the approval of the executive director, a licensee may reduce the amount of the financial assurance as decommissioning proceeds and radiological contamination is reduced at the site. (h) The executive director may grant in writing a request to extend the time periods established in subsections (d), (e) or (f) of this section, or to delay or postpone the decommissioning process, if the executive director determines that this relief is not detrimental to the public health and safety and is otherwise in the public interest. The request must be submitted in writing no later than 30 days before notification under subsection (d) or (f) of this section. The schedule for decommissioning set forth in subsection (e) or (f) of this section may not commence until the executive director has made a determination on the request. (i) Licenses, including expired licenses, will be terminated by the commission by written notice to the licensee when the executive director determines that: (1) Source material, byproduct material, and other radioactive material has been properly disposed; (2) Reasonable effort has been made to eliminate residual radioactive contamination, if present; (3) The site is suitable for release. (A) A radiation survey has been performed which demonstrates that the premises are suitable for release in accordance with commission requirements; or (B) Other information submitted by the licensee is sufficient to demonstrate that the premises are suitable for release in accordance with commission requirements; (4) The licensee has paid any outstanding fees required by Subchapter B of Chapter 336 of this title (relating to Radioactive Substance Fees) and has resolved any outstanding notice(s) of violation issued to the licensee; and (5) The licensee has complied with all other applicable decommissioning criteria required by Subchapter G of this chapter (relating to Decommissioning Standards). (j) A licensee may request that a subsite or a portion of a licensed area be released for unrestricted use before full license termination as long as release of the area of concern will not adversely impact the remaining unaffected areas and will not be recontaminated by ongoing authorized activities. When the licensee is confident that the area of concern will be acceptable to the state for release for unrestricted use, a written request for release for unrestricted use and agency confirmation of close-out work performed must be submitted to the executive director. The request should include a comprehensive report, accompanied by survey and sample results which show contamination is less than the limits specified in sec.336.603 of this title (relating to Radiological Criteria for Unrestricted Use), and an explanation of how ongoing authorized activities will not adversely affect the area proposed to be released. Upon confirmation by the executive director that the area of concern is indeed releasable for unrestricted use, the licensee may apply for a license amendment, if required. 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 August 14, 1998. TRD-9812928 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 30 TAC sec.336.514 STATUTORY AUTHORITY The repeal is adopted under the Texas Radiation Control Act, Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812927 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER G.Licensing Requirements for Source Material (Uranium or Thorium) Recovery and Processing Facilities 30 TAC sec.sec.336.601-336.606, 336.613-336.629, 336.636 STATUTORY AUTHORITY These repeals are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812929 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER G.Decommissioning Standards 30 TAC sec.sec.336.601, 336.603, 336.605, 336.607, 336.609, 336.611, 336.613 STATUTORY AUTHORITY These new sections are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812930 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER H.Licensing Requirements for Near-Surface Land Disposal of Radioactive Waste 30 TAC sec.336.701, sec.336.702 STATUTORY AUTHORITY These amendment are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812931 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 SUBCHAPTER I.Financial Assurance 30 TAC sec.sec.336.802-336.807 STATUTORY AUTHORITY These amendments are adopted under the Texas Radiation Control Act (TRCA), Texas Health and Safety Code sec.sec.401.011, 401.051, and 401.412, and Texas Water Code sec.5.103, which give the commission the authority to adopt rules necessary to carry out its responsibilities to regulate and license the disposal of radioactive substances. 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 August 14, 1998. TRD-9812932 Kevin McCalla Director, Legal Division Texas Natural Resource Conservation Effective date: September 3, 1998 Proposal publication date: April 24, 1998 For further information, please call: (512) 239-6087 TITLE 34. PUBLIC FINANCE PART III. Teacher Retirement System of Texas CHAPTER 41.Insurance 34 TAC sec.41.8 The Teacher Retirement System adopts amendments to sec.41.8 concerning the bidding process for TRS Insurance. The amendments to sec.41.8 are adopted without changes to the proposed text published in the June 19, 1998 issue of the Texas Register (23 TexReg 6425) and will not be republished. New law passed by the 75th Legislature found at Insurance Code, sec.8, article 3.50-4(i), requires rules with the information outlined in the proposed amendment. It is a requirement that prospective bidders provide information, for areas consisting of a county and adjacent counties, on the number and types of qualified providers willing to participate in the coverage or plan. In addition, the Board of Trustees or its designee will consider relevant factors or criteria in making a decision. The justification for TRS to adopt the amendment is to ensure that TRS complies with the new law and to have notice available for those who might wish to bid on TRS-Care in the future. The amendment to the rule will provide the basis for bidding on insurance needs of TRS. The rule provides notice to bidders of what kinds of information will be required when a bid is submitted for consideration. No comments were received regarding adoption of the amendment. The amendment is proposed under the Government Code, sec.825.102, which provides the Board of Trustees with the authority to adopt rules for the administration of the funds of the retirement system. In addition, the amendment is proposed under the Insurance Code, sec.8, Article 3.50-4(i) authorizing the Board of Trustees to adopt a rule requiring prospective bidders to provide information, for areas consisting of a county and all adjacent counties, on the number and types of qualified providers willing to participate in coverage. 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 August 11, 1998. TRD-9812714 Charles Dunlap Executive Director Teacher Retirement System of Texas Effective date: August 31, 1998 Proposal publication date: June 19, 1998 For further information, please call: (512) 391-2115 TITLE 37. PUBLIC SAFETY AND CORRECTIONS PART VII. Texas Commission on Law Enforcement Officer Standards and Education CHAPTER 211. Administration Division 37 TAC sec.211.22 The Texas Commission on Law Enforcement Officer Standards and Education adopts amendments to sec.211.22 concerning issuance of duplicate or delayed documents, without changes to the proposed text as published in the April 17, 1998 issue of the Texas Register (23 TexReg 3805). This section is amended to require the submission of an application form for duplicate documents, as well as a $20.00 nonrefundable application fee. No comments were received regarding the adoption of these amendments. The amendment is adopted 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. 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 August 12, 1998. TRD-9812789 Edward T. Laine Chief, Professional Standards and Administrative Operations Texas Commission on Law Enforcement Officer Standards and Education Effective date: September 1, 1998 Proposal publication date: April 17, 1998 For further information, please call: (512) 936-7700 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 adopts amendments to sec.221.19 concerning jailer proficiency certificates, without changes to the proposed text as published in the April 17, 1998, issue of the Texas Register (23 TexReg 3807). 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. No comments were received regarding the adoption of the new section. The amendment is adopted 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. 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 August 12, 1998. TRD-9812788 Edward T. Laine Chief, Professional Standards and Administrative Operations Texas Commission on Law Enforcement Officer Standards and Education Effective date: September 1, 1998 Proposal publication date: April 17, 1998 For further information, please call: (512) 936-7700 CHAPTER 225. Contract Jailer Certification Divisions 37 TAC sec.225.3, sec.225.11 The Texas Commission on Law Enforcement Officer Standards and Education adopts amendments to sec.225.3 and sec.225.11 concerning minimum standards and enforcement for contract jailer certificates, without changes to the proposed text as published in the April 17, 1998, issue of the Texas Register (23 TexReg 3808). 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. No comments were received regarding the adoption of this new section. The amendment is authorized 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. 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 August 12, 1998. TRD-9812790 Edward T. Laine Chief, Professional Standards and Administrative Operations Texas Commission on Law Enforcement Officer Standards and Education Effective date: September 1, 1998 Proposal publication date: April 17, 1998 For further information, please call: (512) 936-7700 PART IX. Texas Commission on Jail Standards CHAPTER 259.New Construction Rules SUBCHAPTER B.New Maximum Security Design, Construction and Furnishing Requirements 37 TAC sec.259.146 The Texas Commission on Jail Standards adopts amendments to sec.sec.259.146, 259.341, and 259.750 concerning New Construction, Construction and Furnishing Requirements, with changes to the proposed text as published in the Texas Register (23 TexReg 6149). The reasoned justification for this rule is that the Commission determined that it will be more economical and easier to install, thereby, saving the counties money. This rule changes the requirement that ceilings in inmate housing areas shall be constructed of 3/16" thick steel plate to 10 gauge steel. No comments were received regarding adoption of the amendments. The amendment is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails. sec.259.146.Ceilings. Ceilings within inmate housing areas shall be constructed of a minimum 4" thick concrete plank reinforced with #4 bars 8" on center each way or a minimum 10 gauge steel plate. Innovative design concepts are encouraged and comparable materials and methods approved by the Commission may be utilized for ceiling construction. 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 August 12, 1998. TRD-9812732 Jack E. Crump Executive Director Texas Commission on Jail Standards Effective date: September 1, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 463-5505 37 TAC sec.259.341 The amendment is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails. sec.259.341.Ceilings. Ceilings within inmate housing areas shall be constructed of a minimum 4" thick concrete plank reinforced with #4 bars 8" on center each way or a minimum 10 gauge steel plate. Innovative design concepts are encouraged and comparable materials and methods approved by the Commission may be utilized for ceiling construction. 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 August 12, 1998. TRD-9812733 Jack E. Crump Executive Director Texas Commission on Jail Standards Effective date: September 1, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 463-5505 37 TAC sec.259.750 The amendment is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails. sec.259.750.Ceilings. Ceilings within inmate housing areas shall be constructed of a minimum 4" thick concrete plank reinforced with #4 bars 8" on center each way or a minimum 10 gauge steel plate. Innovative design concepts are encouraged and comparable materials and methods approved by the Commission may be utilized for ceiling construction. 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 August 12, 1998. TRD-9812734 Jack E. Crump Executive Director Texas Commission on Jail Standards Effective date: September 1, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 463-5505 CHAPTER 273.Health Services 37 TAC sec.273.4 The Texas Commission on Jail Standards adopts an amendment to sec.273.4, concerning Health Services without changes to the proposed text as published in the June 12, 1998, issue of the Texas Register (23 TexReg 6150). The reasoned justification for this rule is that the Commission determined that there is a need for county jails to maintain more comprehensive health records for inmates. This rule adds the requirement that each jail complete a summary which reflects the status of each inmates' health and care at the time that the inmate is transferred to another criminal justice facility in the State of Texas. The amendment is adopted under Government Code, Chapter 511, which provides the Texas Commission on Jail Standards with the authority to adopt reasonable rules and procedures establishing minimum standards for the custody, care, and treatment of prisoners. 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 August 12, 1998. TRD-9812731 Jack E. Crump Executive Director Texas Commission on Jail Standards Effective date: September 1, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 463-5505 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART IV. Texas Commission for the Blind CHAPTER 165.Facilities Program 40 TAC sec.165.1-165.3 The Texas Commission for the Blind adopts the repeal of Chapter 165, sec.sec.165.1-165.3, pertaining to the facilities program without changes to the proposed text as published in the June 12, 1998, issue of the Texas Register (23 TexReg 6175). The repeal of the chapter is adopted to eliminate rules no longer needed by the Commission in the administration of its programs. The chapter and rules refer to a facilities program and a facilities manual, which are no longer applicable for the purpose of providing vocational rehabilitation services to consumers. No comments were received on the proposal. The repeal is adopted under the authority of Human Resources Code, Title 5, Chapter 91, sec.91.011(g), which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. 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 August 12, 1998. TRD-9812723 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: September 1, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 CHAPTER 169.Blind and Visually Impaired Children's Program The Texas Commission for the Blind adopts the repeal of sec.sec.169.1-169.5; sec.sec.169.10-169.16; sec.sec.169.25-169.34; sec.169.40; sec.sec.169.50-169.52; and sec.sec.169.60-169.63, concerning the Blind and Visually Impaired Children's Program. The repeals are adopted without changes to the proposed text as published in the June 12, 1998, issue of the Texas Register (23 TexReg 6176). The rules are repealed in order for the agency to simultaneously adopt new rules that will function as the policies followed by the Commission in providing services to children with visual impairments. No comments were received concerning the proposal. SUBCHAPTER A.General Information 40 TAC sec.sec.169.1-169.5 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812670 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER B.Basic Program Requirements 40 TAC sec.sec.169.10-169.16 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812671 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER C.Scope of Services 40 TAC sec.sec.169.25-169.34 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 12, 1998. TRD-9812672 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER D.Economic Need 40 TAC sec.169.40 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 12, 1998. TRD-9812673 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER E.Order of Selection for Payment of Services 40 TAC sec.sec.169.50-169.52 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 12, 1998. TRD-9812674 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER F.Case Management Reimbursement Charges 40 TAC sec.sec.169.60-169.63 The repeals are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The repeals affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 12, 1998. TRD-9812675 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER A.General Information 40 TAC sec.sec.169.1-169.5 The Texas Commission for the Blind adopts new sec.sec.169.1-169.5; sec.sec.169.10-169.16; sec.sec.169.25-169.35; sec.169.40; sec.sec.169.50-169.52; and sec.sec.169.60-169.63, concerning the Blind and Visually Impaired Children's Program. All sections are adopted without changes to the proposed text as published in the June 12, 1998, issue of the Texas Register(23 TexReg 6178) except sec.169.28, which is adopted with changes. The words "better than" should have preceded the visual acuity of 20/70 in lieu of the phrase "or better" after 20/70 in proposed sec.169.28(a) to conform to current practice. This correction has been made. The rules are the result of the agency's complete review of the program and existing rules over the past year and will function as the policies followed by the Commission in providing services to children with visual impairments. Comments were received from the Texas Respite Resource Network concerning sec.169.33 of the proposal. The organization supported the rule and encouraged the Commission to continue to increase the annual amount of funding available to families for respite and support services. The Commission made no changes to the rules as a result of the comments. The rule provides a limit of $1,000 per child per state fiscal year. The agency periodically reviews all of its procedures for their effectiveness in meeting identified needs of famialies in relation to the agency's overall budget. The amount of resources available for respite support will be considered as a part of this routine process. The rules are adopted under the authority of the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812676 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER B.Basic Program Requirements 40 TAC sec.sec.169.10-169.16 The rules are adopted under the authorioty of Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812678 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER C.Services 40 TAC sec.sec.169.25-169.35 The rules are adopted under the authority of Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. sec.169.28. Restoration Services. (a) Restoration services do not include routine eye exams, treatments such as drops for glaucoma and conjunctivitis, or glasses or contact lenses for children whose only eye problem is a refractive error in which the uncorrected visual acuity is better than 20/70 in both eyes. (b) Restoration services must be recommended in writing by an ophthalmologist, optometrist, ocularist, or orthoptist and jointly agreed to by the caseworker and parent. (c) Only one pair of replacement glasses or contact lenses may be purchased in a 12-month period for a child receiving restoration services unless there is a .5 or greater diopter change in either prescribed lens. (d) Restoration services are subject to application of Subchapter D of this chapter (relating to Economic Resources), Subchapter E of this chapter (relating to Order of Selection for Payment of Services), and Subchapter F of this chapter (relating to Case Management Reimbursement Charges). 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 August 11, 1998. TRD-9812679 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER D.Economic Resources 40 TAC sec.169.40 The rules are adopted under the authority of Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812680 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER E.Order of Selection for Payment of Services 40 TAC sec.sec.169.50-169.52 The rules are adopted under the authority of Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812681 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611 SUBCHAPTER F.Case Management Reimbursement Charges 40 TAC sec.sec.169.60-169.63 The rules are adopted under the authority of Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs. The rules affect Human Resources Code, Title 5, Chapter 91, sec.91.028, Services for Visually Handicapped Children. 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 August 11, 1998. TRD-9812682 Terrell I. Murphy Executive Director Texas Commission for the Blind Effective date: August 31, 1998 Proposal publication date: June 12, 1998 For further information, please call: (512) 459-2611