Volume 42 Number 39 September 29, 2017 Pages

Transcription

1 Volume 42 Number 39 September 29, 2017 Pages

2 School children's artwork is used to decorate the front cover and blank filler pages of the Texas Register. Teachers throughout the state submit the drawings for students in grades K-12. The drawings dress up the otherwise gray pages of the Texas Register and introduce students to this obscure but important facet of state government. The artwork featured on the front cover is chosen at random. Inside each issue, the artwork is published on what would otherwise be blank pages in the Texas Register. These blank pages are caused by the production process used to print the Texas Register. Texas Register, (ISSN , USPS ), is published weekly (52 times per year) for $ ($ for first class mail delivery) by Matthew Bender & Co., Inc., 3 Lear Jet Lane Suite 104, P O Box 1710, Latham, NY Material in the Texas Register is the property of the State of Texas. However, it may be copied, reproduced, or republished by any person without permission of the Texas Register director, provided no such republication shall bear the legend Texas Register or "Official" without the written permission of the director. The Texas Register is published under the Government Code, Title 10, Chapter Periodicals Postage Paid at Albany, N.Y. and at additional mailing offices. POSTMASTER: Send address changes to the Texas Register, 136 Carlin Rd., Conklin, N.Y Secretary of State - Rolando B. Pablos Director - Robert Sumners a section of the Office of the Secretary of State P.O. Box Austin, TX (512) FAX (512) register@sos.texas.gov Staff Leti Benavides Belinda Kirk Deana Lackey Jill S. Ledbetter Cecilia Mena Joy L. Morgan Breanna Mutschler Barbara Strickland Tami Washburn

3 GOVERNOR Executive Order GA Proclamation Proclamation ATTORNEY GENERAL Requests for Opinions EMERGENCY RULES SCHOOL LAND BOARD LAND RESOURCES 31 TAC PROPOSED RULES DEPARTMENT OF INFORMATION RESOURCES STATE WEBSITES 1 TAC TAC , TAC , TEXAS DEPARTMENT OF LICENSING AND REGULATION WARRANTORS OF VEHICLE PROTECTION PRODUCTS 16 TAC 71.1, 71.10, 71.20, 71.22, 71.70, 71.80, TEXAS EDUCATION AGENCY SCHOOL DISTRICTS 19 TAC PLANNING AND ACCOUNTABILITY 19 TAC , , , , , TEXAS BOARD OF CHIROPRACTIC EXAMINERS APPLICATIONS AND APPLICANTS 22 TAC CHIROPRACTIC FACILITIES 22 TAC LICENSES AND RENEWALS 22 TAC TAC TEXAS STATE BOARD OF EXAMINERS OF PSYCHOLOGISTS APPLICATIONS AND EXAMINATIONS 22 TAC TAC TAC TAC TAC TAC TAC COMPLAINTS AND ENFORCEMENT 22 TAC FEES 22 TAC TAC TEXAS PARKS AND WILDLIFE DEPARTMENT EXECUTIVE 31 TAC FISHERIES 31 TAC , COMPTROLLER OF PUBLIC ACCOUNTS TAX ADMINISTRATION 34 TAC TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM GENERAL PROVISIONS RELATING TO THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC TAC TAC BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC ADOPTED RULES TEXAS FUNERAL SERVICE COMMISSION LICENSING AND ENFORCEMENT--SPECIFIC SUBSTANTIVE RULES 22 TAC RULE REVIEW Adopted Rule Reviews Texas Commission on Fire Protection IN ADDITION Comptroller of Public Accounts TABLE OF CONTENTS 42 TexReg 5187

4 Local Sales Tax Rate Changes Effective October 1, Office of Consumer Credit Commissioner Notice of Rate Ceilings Credit Union Department Application to Expand Field of Membership Notice of Final Action Taken Texas Education Agency Notice of Correction: Request for Applications Concerning the Transformation Zone Planning Grant Texas Commission on Environmental Quality Agreed Orders Enforcement Orders Notice of Water Rights Application Texas Ethics Commission List of Late Filers General Land Office Notice and Opportunity to Comment on Requests for Consistency Agreement/Concurrence Under the Texas Coastal Management Program Texas Health and Human Services Commission Notice of Public Hearing on Proposed Medicaid Payment Rates for Hospice Services Public Notice - Renewal of the Deaf Blind with Multiple Disabilities Waiver Program Department of State Health Services Order Placing Acetyl Fentanyl into Schedule I Texas Department of Housing and Community Affairs Notice of Public Hearing on the Section 8 Program 2018 Streamlined Annual Public Housing Agency Plan for the Housing Choice Voucher Program University of Houston System Business and Service Review of Bookstore Contract Texas Department of Licensing and Regulation Correction of Error Texas Lottery Commission Scratch Ticket Game Number 2005 "Reindeer Riches" Scratch Ticket Game Number 2085 "Feliz Navidad" Texas Parks and Wildlife Department Notice of Hearing and Opportunity for Public Comment Notice of Proposed Real Estate Transactions Public Utility Commission of Texas Notice of Application for Sale, Transfer, or Merger Notice of Application to Relinquish a Service Provider Certificate of Operating Authority Request for Proposal - Technical Consulting Services Teacher Retirement System of Texas Notice of Contract Award Texas Department of Transportation Aviation Division - Request for Qualifications for Professional Engineering Services TABLE OF CONTENTS 42 TexReg 5188

5 Executive Order GA 02 Relating to the suspension of the seven-day waiting period for certain state unemployment insurance claimants who have become unemployed as a direct result of the disaster created by Hurricane Harvey. WHEREAS, a disaster proclamation was issued on Wednesday, August 23, 2017, certifying that Tropical Depression Harvey posed a threat of imminent disaster in certain counties in Texas; and WHEREAS, Tropical Depression Harvey was upgraded to a hurricane that struck the Texas coast on Friday, August 25, 2017, causing a natural catastrophe that destroyed crucial infrastructure, threatened physical harm, and endangered the public welfare; and WHEREAS, the disaster caused by Hurricane Harvey has resulted in loss of life and widespread human suffering, loss of income, and property loss and damage including the interruption in the operation and delivery of essential services and supplies; and WHEREAS, many places of employment have sustained extensive damage or been completely destroyed or are physically inaccessible creating a lack of work and loss of salaries and revenues; and WHEREAS, workers and employees totally or partially unemployed by the disaster have found the current seven-day waiting period for certain state unemployment insurance claims a hardship to receiving benefits; and WHEREAS, the President of the United States issued a major disaster declaration (FEMA 4332-DR) on August 25, 2017, under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. Section 5121 et seq.; NOW, THEREFORE, I, GREG ABBOTT, Governor of Texas, by virtue of the power and authority vested in me by Section of the Texas Labor Code, do hereby order the suspension of the seven-day waiting period requirement imposed under Section (a)(8) of the Texas Labor Code to authorize an individual to receive benefits for that waiting period if the individual is: 1. Unemployed as a direct result of a natural disaster that resulted in the major disaster declaration issued by the President of the United States (FEMA 4332-DR) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. Section 5121 et seq.; and 2. Otherwise eligible for unemployment compensation benefits under the Texas Unemployment Compensation Act; and 3. Not receiving disaster unemployment assistance benefits for the period included in that waiting period. This executive order supersedes all previous orders in conflict or inconsistent with its terms and shall remain in effect and in full force until modified, amended, rescinded, or superseded by me or by a succeeding governor. IN TESTIMONY WHEREOF, I have hereunto signed my name and have officially caused the Seal of State to be affixed at my office in the City of Austin, Texas, this the 7th day of September, Greg Abbott, Governor TRD Proclamation TO ALL TO WHOM THESE PRESENTS SHALL COME: WHEREAS, I, GREG ABBOTT, Governor of the State of Texas, did issue a series of proclamations declaring a state of disaster in multiple counties in South and Southeast Texas as a result of the catastrophic damage caused by Hurricane Harvey; and WHEREAS, voters and taxpayers in the area impacted by the storm may still be unable to participate in and provide input on important matters of local government business; and WHEREAS, political subdivisions in parts of the disaster area may face logistical and practical difficulties holding open meetings and deliberating on matters of public concern as they focus on assisting Texans coping with the immediate aftermath of the storm; and WHEREAS, Section of the Texas Tax Code requires the governing body of each local taxing unit to adopt an ad valorem tax rate before the later of September 30 or the 60th day after the date the certified appraisal roll is received, and a budget must be adopted before the tax may be levied; and WHEREAS, certain political subdivisions that remain focused on disaster response are unable to meet the September 30, 2017, deadline in a way that provides the public a sufficient opportunity to participate in the decision; and WHEREAS, Section (e) of the Texas Government Code authorizes the Governor, on the request of a political subdivision, to "waive or suspend a deadline imposed by a statute... including a deadline relating to a budget or ad valorem tax, if the waiver or suspension is reasonably necessary to cope with a disaster;" and WHEREAS, the City of Corpus Christi has requested an extension of the September 30, 2017, statutory deadline to adopt its ad valorem tax rate and budget; NOW, THEREFORE, in accordance with the authority vested in me by Section (e) of the Texas Government Code, I do hereby grant the City of Corpus Christi s request to suspend the deadline prescribed by Texas law for the City of Corpus Christi to adopt its ad valorem tax rate and budget until October 27, In accordance with the statutory requirements, copies of this proclamation shall be filed with the applicable authorities. IN TESTIMONY WHEREOF, I have hereunto signed my name and have officially caused the Seal of State to be affixed at my office in the City of Austin, Texas, this the 14th day of September, Greg Abbott, Governor TRD GOVERNOR September 29, TexReg 5189

6 Proclamation TO ALL TO WHOM THESE PRESENTS SHALL COME: I, GREG ABBOTT, Governor of Texas, issued a disaster proclamation on August 23, 2017, certifying that Hurricane Harvey posed a threat of imminent disaster, including severe flooding, storm surge and damaging winds, for Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bexar, Brazoria, Brazos, Burleson, Caldwell, Calhoun, Cameron, Chambers, Colorado, Comal, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kerr, Kleberg, Lavaca, Lee, Leon, Liberty, Live Oak, Madison, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Trinity, Tyler, Victoria, Walker, Waller, Washington, Wharton, Willacy and Wilson counties. Those same conditions continue to exist in these and other counties in Texas. THEREFORE, in accordance with the authority vested in me by Section of the Texas Government Code, I do hereby amend the aforementioned proclamation and declare a disaster in Milam and San Augustine counties in Texas. Pursuant to Section of the code, I authorize the use of all available resources of state government and of political subdivisions that are reasonably necessary to cope with this disaster. Pursuant to Section of the code, any regulatory statute prescribing the procedures for conduct of state business or any order or rule of a state agency that would in any way prevent, hinder or delay necessary action in coping with this disaster shall be suspended upon written approval of the Office of the Governor. However, to the extent that the enforcement of any state statute or administrative rule regarding contracting or procurement would impede any state agency s emergency response that is necessary to protect life or property threatened by this declared disaster, I hereby authorize the suspension of such statutes and rules for the duration of this declared disaster. In accordance with the statutory requirements, copies of this proclamation shall be filed with the applicable authorities. IN TESTIMONY WHEREOF, I have hereunto signed my name and have officially caused the Seal of State to be affixed at my office in the City of Austin, Texas, this the 14th day of September, Greg Abbott, Governor TRD TexReg 5190 September 29, 2017 Texas Register

7 Requests for Opinions RQ-0179-KP Requestor: The Honorable Lisa L. Peterson Nolan County Attorney 100 East 3rd Street, Suite 106A Sweetwater, Texas Re: The establishment and funding of salaries for a court administrator and court reporter in a multicounty court at law (RQ-0179-KP) Briefs requested by October 18, 2017 RQ-0180-KP Requestor: The Honorable Eddie Lucio, Jr. Chair, Committee on Intergovernmental Relations Texas State Senate Post Office Box Austin, Texas Re: Whether and when a municipal law enforcement agency is authorized or required to release audio or video recordings from a body worn camera to members of the public, members of the governing body of the municipality, and civilian employees of the municipality (RQ-0174-KP) Briefs requested by October 18, 2017 RQ-0181-KP Requestor: Sherif Zaafran, M.D., President Texas Medical Board Post Office Box 2018 Austin, Texas Re: Whether section of the Health and Safety Code authorizes an eligible prescriber to directly or by standing order prescribe an opioid antagonist to law enforcement agencies (RQ-0181-KP) Briefs requested by October 3, 2017 For further information, please access the website at or call the Opinion Committee at (512) TRD Amanda Crawford General Counsel Office of the Attorney General Filed: September 20, 2017 ATTORNEY GENERAL September 29, TexReg 5191

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9 TITLE 31. NATURAL RESOURCES AND CONSERVATION PART 4. SCHOOL LAND BOARD CHAPTER 155. LAND RESOURCES SUBCHAPTER A. COASTAL PUBLIC LANDS 31 TAC Pursuant to of the Texas Government Code, the School Land Board (Board) adopts on an emergency basis new , concerning Emergency Provisions for Rebuilding Authorized Structures Damaged by Hurricane Harvey. This rule is adopted on an emergency basis due to the imminent peril to the public health, safety and welfare caused by Hurricane Harvey. Hurricane Harvey made landfall near Corpus Christi, Texas, on August 25, 2017, as a Category 4 hurricane, and proceeded to move northeast, devastating coastal and inland areas with storm surge, extreme winds, unprecedented rainfall, and major/record flooding. Many structures on coastal public lands within bays, estuaries, and tidal rivers have been damaged or destroyed. Coastal lease and easement holders, concerned littoral property owners, and citizens with interests in coastal public lands have begun contacting the General Land Office (GLO) for information and assistance regarding their ability to rebuild or repair structures on coastal public lands, or to take actions to address shoreline impacts. GLO staff anticipate receiving and responding to many more requests in coming days and weeks. The Board has determined that it is necessary to adopt an emergency rule allowing immediate repair or rebuilding of structures currently under a coastal lease or easement, authorizing certain measures to restore and stabilize shorelines, and allowing GLO staff to waiver certain fees. By facilitating rebuilding and restoration of these structures and areas, the rule will provide protection from further injury, damage, or destruction from subsequent storm events. The Board has determined that a takings impact assessment (TIA), pursuant to of the Texas Government Code, is not required for the adoption of this rule because the rule is adopted in response to a real and substantial threat to public health, safety, and welfare. The new section is adopted on an emergency basis under Texas Government Code, The section is also adopted under Texas Natural Resources Code, , which provides the Board with the authority to adopt procedural and substantive rules that it considers necessary to administer, implement, and enforce Chapter 33 of the Texas Natural Resources Code Emergency Provisions Authorizing Actions Necessary to Respond to the Effects of Hurricane Harvey. (a) Purpose. This section is intended to: (1) allow littoral owners who have School Land Board authorization to place and maintain certain structures on coastal public lands to repair and rebuild certain structures damaged or destroyed by Hurricane Harvey; (2) authorize littoral owners to take certain actions to address shoreline impacts of Hurricane Harvey; and (3) allow for the General Land Office (GLO) to waive certain fees for coastal lease or easement holders with structures impacted by Hurricane Harvey. (b) Applicability. (1) This section applies only to the following counties: Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris, Jackson, Jefferson, Kenedy, Kleberg, Liberty, Matagorda, Nueces, Orange, Refugio, San Patricio, Victoria, Willacy. (2) This section shall be in effect for 120 days from the date of filing with the Office of the Secretary of State and may be extended once by the Board for not longer than 60 days as necessary to protect public health, safety, and welfare. (3) This section does not apply to any beaches bordering on the Gulf of Mexico or other areas fronting on or in the Gulf of Mexico. (4) This section does not apply to any cabins or associated structures subject to permits issued under Texas Natural Resources Code, (c) Definitions. For the purposes of this section only, the following terms and words shall have the following meaning. (1) Contract--Any easement, lease, or registration issued by the School Land Board authorizing a project on coastal public land. This term does not include a permit issued under of this title and Texas Natural Resources Code, (2) GISWEB--An interactive mapping application that give the user access to the collection of spatial data and aerial photography available at the GLO at (3) Grantee--Any person, company or entity that is currently under a contract authorizing a project on coastal public land. (d) Structures authorized under current contracts. (1) Rebuilding certain structures on coastal public lands to pre-hurricane Harvey dimensions. (A) Grantees shall adhere to any specific contractual provisions regarding repair and rebuilding structures as provided in the current contract unless permitted otherwise as provided in paragraph (2) of this subsection. EMERGENCY RULES September 29, TexReg 5193

10 (B) Grantees must rebuild or repair the structures to the original specifications and conditions as provided in the current contract in the absence of specific provisions regarding repair and rebuilding as described in the previous paragraph unless permitted otherwise as provided in paragraph (2) of this subsection. (2) Increasing or decreasing the size of structure. (A) If grantee desires to rebuild the same type of structure but smaller than provided in the current contract, grantee may rebuild under the current contract, and the GLO will amend the current contract and waive the amendment fee. If GLO field office staff deems it appropriate, the GLO may convert the contract to a Structure Registration as authorized in of this title (relating to Registration of Structures) and waive the one-time registration fee. (B) If GLO field office staff determine that a grantee must rebuild a longer structure than provided in current contract and the need for a longer structure is due to bay, tidal river, or estuary shoreline change caused by Hurricane Harvey, grantee may rebuild under the current contract. The GLO will amend the contract to reflect the new dimensions, waive the amendment fee, and adjust the fees accordingly. (C) If grantee, in consultation with the GLO, determines that an authorized structure is substantially destroyed due to damage caused by Hurricane Harvey and grantee determines that it is necessary to rebuild to a different configuration than previously authorized, grantee must obtain approval for the modification from the GLO. GLO field office staff will evaluate the proposal and may approve an enlargement or other modification of the authorized structure; provided, however, there are minimal impacts to critical habitat, the modified project will not impact safety or navigation, and the modified project complies with existing statutes, rules and guidelines. The GLO will amend the contract to reflect the new dimensions, waive the amendment fee, and adjust the rental fees accordingly. (e) Shoreline of bays, tidal rivers, and estuaries. (1) Grantees may rebuild previously permitted bulkheads on coastal public lands to the pre-hurricane Harvey location as indicated on the most recent pre-storm aerial photographs available on GISWEB, and may fill to the same location as existed immediately prior to the storm and as specified in the current contract. (2) Littoral owners with bulkheads previously constructed on private property may rebuild the bulkhead and may fill to the same location as existed immediately prior to Hurricane Harvey as indicated on the most recent pre-storm aerial photographs available on GISWEB. (3) Littoral owners with bay, tidal river, or estuary shoreline that did not have a bulkhead may fill to the same location as existed immediately prior to Hurricane Harvey as indicated on the most recent pre-storm aerial photographs available on GISWEB; provided, however, this Section does not authorize placement of a new bulkhead on coastal public land. Any bay, tidal river, or estuary shoreline restored to the pre-hurricane Harvey location must be stabilized by riprap, vegetative planting or other GLO-approved means of shoreline stabilization. (4) Under no circumstance does this Section authorize any person to construct any bulkhead or place fill that extends the bay, tidal river, or estuary shoreline into the adjacent water body beyond the prestorm location as indicated on the most recent pre-hurricane Harvey aerial photographs available on GISWEB at the GLO, unless the littoral owner presents evidence satisfactory to the GLO that the location of the pre-hurricane Harvey shoreline was in a different location. (f) NOTICE. This Section is promulgated to assist littoral owners responding to the catastrophic impacts of Hurricane Harvey. Under no circumstance shall this Section be construed as the School Land Board or General Land Office's acquiescence or agreement to the location of any shoreline depicted on the most recent pre-hurricane Harvey aerial photography available on GISWEB as the boundary between state-owned and private land (particularly if state-owned submerged land was previously filled without appropriate and legal authorization). This Section will not operate to waive claims that have been or may be asserted by the State for title to illegal filled state-owned submerged lands. Any person who places fill or any other structure on state-owned submerged land beyond the shoreline depicted on the most recent pre-hurricane Harvey aerial photography available on GISWEB without a proper easement or lease under Chapter 33 or Chapter 51 of the Texas Natural Resources Code is liable for a penalty of not less than $50 or more than $1000 per day for each day that a violation occurs as provided in Texas Natural Resources Code, The agency certifies that legal counsel has reviewed the emergency adoption and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Anne L. Idsal Chief Clerk, Deputy Land Commissioner School Land Board Effective date: September 12, 2017 Expiration date: January 9, 2018 For further information, please call: (512) TexReg 5194 September 29, 2017 Texas Register

11 TITLE 1. ADMINISTRATION PART 10. DEPARTMENT OF INFORMATION RESOURCES CHAPTER 206. STATE WEBSITES The Texas Department of Information Resources (the Department) proposes amendments to 1 TAC Chapter 206, 206.1, , , , and , concerning the State Websites, to clarify the processes and policies of current practices and correct typographical errors. The Department published a formal notice of rule review in the March 11, 2016, issue of the Texas Register (41 TexReg 1980). Review of the sections implements Government Code, In 1 TAC 206.1, the Department proposes adding the definition for assistive technologies. The definition is consistent with 1 TAC 213 and provides clarification to the rule. The Department clarifies the definition of Section 508. The Department revised the definition of Electronic and information resources to be consistent with 1 TAC 213. The Department adds a definition for Worldwide Web Consortium Web Content Accessibility Guidelines 2.0. Finally, the Department proposes renumbering the definitions to reflect the changes. In 1 TAC (a), the Department clarifies the effective date of complying with the standards referenced in US Section 508 Appendix A Chapter (WCAG 2.0 Level AA excluding Guideline 1.2 Time Based Media). In 1 TAC (b), the Department in consultation with Accessibility coordinators, determined each state agency must consider captioning and alternative forms of accommodation for videos posted on state websites. In 1 TAC (c), the Department staff proposes language changes to clarify the rule. In 1 TAC (d), the Department staff proposes a language change to clarify the rule and allow increased flexibility for state agencies. In 1 TAC (e), the Department staff proposes removing unnecessary language. In 1 TAC (f), the Department staff proposes adding new language to ensure state agencies remain up to date on emerging technologies and content delivery platforms. In 1 TAC (g), the Department staff proposes adding a requirement for the Department to assist in setting statewide goals and track agencies progress towards those goals. In 1 TAC , the Department staff proposes correction of an incorrect Texas Penal Code legal citation. In 1 TAC (a), the Department clarifies the effective date of complying with the standards referenced in US Section 508 Appendix A Chapter (WCAG 2.0 Level AA excluding 1.2 Time Based Media). In 1 TAC (b), the Department in consultation with Accessibility coordinators, determined each institute of higher education must consider captioning and alternative forms of accommodation for videos posted on state websites. In 1 TAC (c), the Department staff proposes language changes to clarify the rule. In 1 TAC (d), the Department staff proposes a language change to clarify the rule and allow increased flexibility for institutions of higher education. In 1 TAC (e), the Department staff proposes removing unnecessary language. In 1 TAC (f), the Department staff proposes adding new language to ensure institutions of higher education remain up to date on emerging technologies and content delivery platforms. In 1 TAC (g), the Department staff proposes adding a requirement for the Department to assist in setting institution of higher education goals and track institutions of higher education progress towards those goals. In 1 TAC , the Department staff proposes correction of an incorrect Texas Penal Code legal citation. The changes to the chapter apply to state agencies and institutions of higher education. The assessment of the impact of the adopted changes on institutions of higher education was prepared in consultation with the Information Technology Council for Higher Education (ITCHE) in compliance with (c), Texas Government Code. John Hoffman, Chief Technology Officer, has determined during the first five-year period following the amendments to 1 TAC Chapter 206 there will be no fiscal impact on state agencies, institutions of higher education and local governments. Mr. Hoffman has further determined for each year of the first five years following the adoption of the amendments to 1 TAC Chapter 206 there are no anticipated additional economic costs to persons or small businesses required to comply with the amended rule. Mr. Hoffman has further determined that for the first five years the sections are in effect, the public benefit anticipated as a result of the amended rules will result in better accessibility to state websites for citizens with disabilities. Written comments on the proposed rules may be submitted to Martin Zelinsky, General Counsel, 300 West 15th Street, Suite 1300, Austin, Texas 78701, or to martin.zelinsky@dir.texas.gov. PROPOSED RULES September 29, TexReg 5195

12 Comments will be accepted for 30 days after publication in the Texas Register. SUBCHAPTER A. DEFINITIONS 1 TAC The amendments are proposed under (a), Texas Government Code, which authorizes the department to adopt rules as necessary to implement its responsibilities under Chapter 2054, and , , , , and , Texas Government Code, which reference rules created by the department regarding the development of State Websites. No other code, article or statute is affected by this proposal Applicable Terms and Technologies for State Websites. The following words and terms, when used in this chapter, must have the following meanings, unless the context clearly indicates otherwise. (1) Section 508--The technical standards issued by the US Access Board implementing Section 508 of the Rehabilitation Act of 1973 as amended, 29 U.S.C. 794(d). In particular, the standards related to web accessibility (WCAG 2.0 AA) contained in 36 CFR Part (2) Accessible--A web page that can be used in a variety of ways and [that] does not depend on a single sense or ability. (3) Agency head--the top-most senior executive with operational accountability for an agency, department, commission, board, office, council, authority, or other agency in the executive or judicial branch of state government, that is created by the constitution or a statute of the state; or institutions of higher education, as defined in , Education Code. (4) Alternate formats--alternate formats usable by people with disabilities may include, but are not limited to, Braille, ASCII text, large print, recorded audio, and electronic formats that comply with this chapter. (5) Alternate methods--different means of providing information, including product documentation, to people with disabilities. Alternate methods may include, but are not limited to, voice, fax, relay service, TTY, Internet posting, captioning, text-to-speech synthesis, and audio description. (6) Assistive Technologies--Any item, piece of equipment, or system, whether acquired commercially, modified, or customized, that is commonly used to increase, maintain, or improve functional capabilities of individuals with disabilities. (7) [(6)] Contact information--a list of key personnel, positions, or program names, with corresponding phone numbers and/or addresses for each; and other information deemed necessary by the agency or institution of higher education for facilitating public access. (8) [(7)] Compact With Texans--Customer service standards and performance measures required of state agencies, including institutions of higher education, by and , Texas Government Code. (9) [(8)] Electronic and information resources--includes information technology and any equipment or interconnected system or subsystem of equipment [that is] used to create, convert, duplicate, or deliver [in the creation, conversion, duplication, storage, or delivery of] data or information. EIR [The term] includes [but is not limited to,] telecommunications products [(such as telephones)], information kiosks and transaction machines, web sites, multimedia, and office equipment such as copiers and fax machines. The term does not include any equipment that contains embedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, [HVAC (heating, ventilation and air conditioning)] equipment such as thermostats or temperature control devices, and medical equipment that contain [where] information technology that is integral to its operation, are not information technology [electronic and] [resources]. If the embedded information technology has an externally available web or computer interface, that interface is considered EIR. Other terms such as, but not limited to, Information and Communications Technology (ICT), Electronic Information Technology (EIT), etc. can be considered interchangeable terms with EIR for purposes of applicability or compliance with this chapter. (10) [(9)] Exception--A justified, documented non-conformance with one or more standards or specifications of Chapter 206 and/or Chapter 213 of this title, which has been approved by the agency head. (11) [(10)] Exemption--A justified, documented non-conformance with one or more standards or specifications of Chapter 206 and/or Chapter 213 of this title, which has been approved by the Department and which is applicable statewide. (12) [(11)] High-value data set--information that can be used to increase state agency accountability and responsiveness, improve public knowledge of the agency and its operations, further the core mission of the agency, create economic opportunity, or respond to need and demand as identified through public consultation. The term does not include information that is confidential or protected from disclosure under state or federal law. (13) [(12)] Home page--the initial page that serves as the front door or entry point to a state website. (14) [(13)] Internet--An electronic communications network that connects computer networks and computer facilities around the world. (15) [(14)] Intranet--A computer network operating like the Internet but having access restricted to a limited group of authorized users such as employees of an agency or an institution of higher education. (16) [(15)] Key public entry point--a web page on a state website that is frequently accessed directly by members of the public, which a state agency or institution of higher education has specifically designed to enable direct access to official agency or institution of higher education information. (17) [(16)] Open standard format--stable, published formats for data that are nonproprietary, free from licensing restrictions, independent of any individual vendor, and free to use, reuse, and redistribute. (18) [(17)] Personal identifying information -- Information that could serve to identify an individual as defined by , Texas Business and Commerce Code. (19) [(18)] Site policies page--a web page containing the website policies of the state agency or institution of higher education, or a link to each policy. (20) [(19)] State website--a website that is connected to the Internet and is owned, funded, or operated by or for a state agency [or institution of higher education], including key public entry points. 42 TexReg 5196 September 29, 2017 Texas Register

13 (21) [(20)] TRAIL--Texas Records and Information Locator or its successor, providing a method to do a statewide search. (22) [(21)] Transaction Risk Assessment--An evaluation of the security and privacy required for an interactive web session providing public access to government information and services. Additional information and guidelines are included in Part 2: Risks Pertaining to Electronic Transactions and Signed Records in "The Guidelines for the Management of Electronic Transactions and Signed Records" available on the Department's website. (23) Worldwide Web Consortium Web Content Accessibility Guidelines 2.0--a referenceable, international technical standard containing 12 guidelines that are organized under 4 principles: perceivable, operable, understandable, and robust. For each guideline, there are testable success criteria, which are at three levels: A, AA, and AAA. Also known as ISO/IEC International Standard ISO/IEC 40500:2012. (24) [(22)] Web page--presentation of state website content, including documents and files containing text, graphics, sounds, video, or other content, that is accessed through a web browser. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 14, TRD Martin Zelinsky General Counsel Department of Information Resources Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) SUBCHAPTER B. STATE AGENCY WEBSITES 1 TAC , The amendments are proposed under (a), Texas Government Code, which authorizes the department to adopt rules as necessary to implement its responsibilities under Chapter 2054, and , , , and , Texas Government Code, which reference rules created by the department regarding the development of State Websites. No other code, article or statute is affected by this proposal Accessibility. (a) Effective April 18, 2020, [September 1, 2006,] unless an exception is approved by the agency head or an exemption has been made for specific technologies pursuant to of this title, all new or changed web pages must comply with: (1) the standards referenced [described] in US Section 508 Appendix A Chapter (WCAG 2.0 Level AA excluding Guideline 1.2 Time Based Media): [Subpart B , paragraphs (a) through (p), excluding paragraphs (b) and (k);] (A) Agencies shall consider the use of these standards for new websites or web applications prior to the effective date; or (B) may continue to use US Section 508 standards published in the Federal Register on December 21, 2000, subpart B , paragraphs (a) through (p), excluding paragraphs (b) and (k) prior to the effective date; (2) the standards and specifications described in this section; and (3) the standards and specifications applicable to a state agency's accessibility policy described in of this title. (b) Based on a request for accommodation of a webcast of a live/real time open meeting (Open Meetings Act, Texas Government Code, Chapter 551) or training and informational video productions which support the agency's mission, each state agency must consider captioning and alternative forms of accommodation for videos posted on state websites. Refer to of this chapter for definitions for Alternate Formats and Alternate Methods. (c) When compliance cannot be accomplished for an EIR, an alternative version of the page, form, application, document, or other EIR with equivalent information or functionality, must be provided to make a website comply with the provisions of this section. The alternative version must remain synchronized to the primary EIR and updated whenever the primary EIR changes. [ An alternative version page, with equivalent information or functionality, must be provided to make a website comply with the provisions of this section, when compliance cannot be accomplished in any other way. The content of the alternative page must be updated whenever the primary page changes.] (d) Effective September 1, 2006, unless an exception is approved by the agency head or an exemption has been made for specific technologies pursuant to of this title, all new or changed web page/site designs must be tested by the state agency using one or more EIR accessibility validation tools, including but not limited to the use of automated methods, manual methods or assistive technologies to validate compliance with this chapter. [Section 508 compliance tools in conjunction with manual procedures to validate compliance with this chapter.] (e) A state agency must establish an accessibility policy as described in of this title which must include criteria for monitoring its website for compliance with the standards and specifications of this chapter. [Additional information about testing tools and resources are available on the Department's website.] (f) State websites and web applications should be designed to support: [Each state website should be designed with consideration for current and emerging Internet connection technologies available to the general public.] (1) variations in internet connection speeds and emerging communications protocols and technologies; and (2) the ability to adapt content to end user devices such as mobile phone, tablets, or other devices which are available to the general public. (g) The department shall assist with establishing statewide agency website accessibility compliance goals, and track agency progress towards achieving those goals Privacy. (a) Each state agency must protect the privacy and personal identifying information of members of the public who provide or receive information from or through the state agency website. (b) Each state agency must publish a privacy notice that describes applicable provisions of its privacy policy on its home page and all key public entry points or its site policies page. (c) The privacy notice: (1) Must describe the practices employed by the state agency to protect personal identifying information. PROPOSED RULES September 29, TexReg 5197

14 (2) Must conform to requirements of Chapters 552 and 559, Texas Government Code. (3) Must be consistent with the State Website Linking and Privacy Policy published on the Department's website. (d) Prior to providing access to information or services on a state website that requires personal identifying information, each state agency must conduct a transaction risk assessment, and implement appropriate privacy and security safeguards that conform to requirements of Chapter 202 of this title. (e) Any web based form on a state agency's website that requests information from the public must have a link to the state agency's website privacy notice. (f) Web pages designed for children must comply with all applicable federal and state laws, including provisions of the Children's Online Privacy Protection Act of 1998 and Texas Penal Code Chapter 33 [Texas Government Code, Chapter 420], intended to protect minors. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 14, TRD Martin Zelinsky General Counsel Department of Information Resources Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) SUBCHAPTER C. INSTITUTION OF HIGHER EDUCATION WEBSITES 1 TAC , The amendments are proposed under (a), Texas Government Code, which authorizes the department to adopt rules as necessary to implement its responsibilities under Chapter 2054, and , , , and , Texas Government Code, which reference rules created by the department regarding the development of State Websites. No other code, article or statute is affected by this proposal Accessibility. (a) Effective April 18, 2020, [September 1, 2006,] unless an exception is approved by the agency head or an exemption has been made for specific technologies pursuant to of this title, all new or changed web pages must comply with: (1) the standards referenced in US Section 508 Appendix A Chapter (WCAG 2.0 Level AA excluding Guideline 1.2 Time Based Media): [described in Section 508 Subpart B , paragraphs (a) through (p), excluding paragraphs (b) and (k);] (A) Agencies shall consider the use of these standards for new websites or web applications prior to the effective date; or (B) may continue to use US Section 508 standards published in the Federal Register on December 21, 2000, subpart B , paragraphs (a) through (p), excluding paragraphs (b) and (k) prior to the effective date; (2) the standards and specifications described in this section; and (3) the standards and specifications applicable to a state agency's accessibility policy described in of this title. (b) Based on a request for accommodation of a webcast of a live/real time open meeting (Open Meetings Act, Texas Government Code, Chapter 551) or training and informational video productions which support the institute of higher education's mission, each institute of higher education must consider captioning and alternative forms of accommodation for videos posted on state websites. Refer to of this chapter for definitions for Alternate Formats and Alternate Methods. (c) When compliance cannot be accomplished for an EIR, an alternative version of the page, form, application, document, or other EIR with equivalent information or functionality, must be provided to make a website comply with the provisions of this section. The alternative version must remain synchronized to the primary EIR and updated whenever the primary EIR changes. [An alternative version page, with equivalent information or functionality, must be provided to make a website comply with the provisions of this section, when compliance cannot be accomplished in any other way. The content of the alternative page must be updated whenever the primary page changes.] (d) Effective September 1, 2006, unless an exception is approved by the agency head or an exemption has been made for specific technologies pursuant to of this title, all new or changed web page/site designs must be tested by the institution of higher education using one or more EIR accessibility validation tools, including but not limited to the use of automated methods, manual methods or assistive technologies to validate compliance with this chapter. [Section 508 compliance tools in conjunction with manual procedures to validate compliance with this chapter.] (e) An institution of higher education must establish an accessibility policy as described in of this title which must include criteria for monitoring its website for compliance with the standards and specifications of this chapter. [Additional information about testing tools and resources are available on the Department's website. ] (f) Institutions of higher education websites and web applica- tions should be designed to support: [Each state website should be designed with consideration for current and emerging Internet connection technologies available to the general public.] (1) variations in internet connection speeds and emerging communications protocols and technologies; (2) the ability to adapt content to end user devices such as mobile phone, tablets, or other devices which are available to the general public. (g) The Department shall assist in consultation with ITCHE with establishing statewide agency website accessibility compliance goals for institutions of higher education, and track progress towards achieving those goals Privacy. (a) Each institution of higher education must protect the privacy and personal identifying information of members of the public who provide or receive information from or through the institution of higher education website. (b) Each institution of higher education must publish a privacy notice that describes applicable provisions of its privacy policy on its home page and all key public entry points or its site policies page. (c) The privacy notice: 42 TexReg 5198 September 29, 2017 Texas Register

15 (1) Must describe the practices employed by the institution of higher education to protect personal identifying information. (2) Must conform to requirements of Chapters 552 and 559, Texas Government Code. (3) Must be consistent with the State Website Linking and Privacy Policy published on the Department's website. (d) Prior to providing access to information or services on a state website that requires personal identifying information, each institution of higher education must conduct a transaction risk assessment, and implement appropriate privacy and security safeguards that conform to requirements of Chapter 202 of this title. (e) Any web based form on an institution of higher education's website that requests information from the public must have a link to the institution of higher education's website privacy notice. (f) Web pages designed for children must comply with all applicable federal and state laws, including provisions of the Children's Online Privacy Protection Act of 1998 and Texas Penal Code Chapter 33, [Texas Government Code, Chapter 420,] intended to protect minors. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 14, TRD Martin Zelinsky General Counsel Department of Information Resources Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TITLE 16. ECONOMIC REGULATION PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION CHAPTER 71. WARRANTORS OF VEHICLE PROTECTION PRODUCTS 16 TAC 71.1, 71.10, 71.20, 71.22, 71.70, 71.80, The Texas Department of Licensing and Regulation (Department) proposes the repeal of existing rules at 16 Texas Administrative Code (TAC), Chapter 71, 71.1, 71.10, 71.20, 71.22, 71.70, 71.80, and 71.90, regarding the Vehicle Protection Product Warrantors Program. JUSTIFICATION AND EXPLANATION OF THE RULES This proposal repeals the existing rules of the Texas Commission of Licensing and Regulation (Commission), the Department s governing body, regarding the licensing and regulation of Vehicle Protection Product Warrantors by the Department. The existing rules under 16 TAC Chapter 71 implemented the former Texas Occupations Code, Chapter The repeal of the existing rules is necessary to implement Senate Bill (S.B.) 2065, 85th Legislature, Regular Session, This bill, in part, repealed Texas Occupations Code, Chapter 2306, Vehicle Protection Product Warrantors, and relocated the regulation of vehicle protection products and warrantors to Texas Business and Commerce Code, Chapter 17, Subchapter E, the Deceptive Trade Practices-Consumer Protection Act. These statutory changes were effective September 1, This proposal repeals the existing rules for the Vehicle Protection Product Warrantors Program under 16 TAC Chapter 71, 71.1, 71.10, 71.20, 71.22, 71.70, 71.80, and As of September 1, 2017, the Department no longer regulates or licenses vehicle protection products or warrantors. FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT Brian E. Francis, Executive Director, has determined that for each year of the first five years the proposed repeal of the rules is in effect, there will be a reduction in costs to the State. While S.B repealed the Vehicle Protection Product Warrantors statute, the rules under 16 TAC Chapter 71 implemented the program. There will be a reduction in costs to the State in the amount of $7,460 each year for the first five years due to the Department no longer needing to pay full time employees (FTEs) to collect application and renewal fees, to enforce the statutes and rules, and to provide compliance assistant and information. No FTEs worked on this program on a full-time basis, so there is no loss of FTEs. In addition, Mr. Francis has determined that for each year of the first five years the proposed repeal of the rules is in effect, there will be a loss of revenue to the State. While S.B repealed the Vehicle Protection Product Warrantors statute, the rules under 16 TAC Chapter 71 set out the specific fee amounts that were paid to the Department. Vehicle Protection Product Warrantors paid $250 in application fees and $250 - $1,000 in annual renewal fees depending on the number of warranties sold each year. Elimination of the application and annual renewal fees will result in a loss of revenue to the State in the amount of $36,300 each year for the first five years. Mr. Francis has determined that enforcing or administering the proposed repeal of the rules under 16 TAC Chapter 71 does not have foreseeable implications relating to costs or revenues of local governments for the first five years the proposed repeal is in effect. Local governments were not involved in the regulation of the Vehicle Protection Product Warrantors Program, and S.B did not transfer any responsibilities to local governments. LOCAL EMPLOYMENT IMPACT STATEMENT Mr. Francis has determined that the proposed rules will not affect the local economy, so the agency is not required to prepare a local employment impact statement under Government Code PUBLIC BENEFITS Mr. Francis also has determined that for each year of the first five-year period the proposed repeal of the rules is in effect, the public benefit will be elimination of obsolete rules. The rules under 16 TAC Chapter 71 implemented Texas Occupations Code Chapter 2306, which was repealed by S.B In addition, the repeal of the Vehicle Protection Product Warrantors statute and rules eliminate the cost of a regulatory program with a small license population, zero to little enforcement activity, and minimal risk of consumer harm. There will be less of a tax burden on taxpayers. Companies will no longer be required to submit initial or renewal applications and fees, so there is less of a regulatory burden on the businesses in this industry, potentially enabling a reduction of the prices of vehicle protection products PROPOSED RULES September 29, TexReg 5199

16 for consumers. Consumers are still protected through certain consumer protection provisions in the Deceptive Trade Practices-Consumer Protection Act, Business and Commerce Code, Chapter 17, Subchapter E. PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL Mr. Francis has determined that for each year of the first fiveyear period the proposed repeal of the rules is in effect, there will be a reduction in costs to persons who are required to comply with the proposed repeal of the rules. Vehicle Protection Product Warrantors will no longer have to pay $250 in application fees or $250 - $1,000 in annual renewal fees, based on the number of warranties sold. The elimination of the application and annual renewal fees will be a reduction in costs in the amount of $36,300 each year for the first five years. ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS- FISCAL IMPACT ON SMALL BUSI- NESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES There will be no adverse effect on small businesses, micro-businesses, or rural communities as a result of the proposed repeal of the rules. Since the agency has determined that the proposed repeal of the rules will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code , are not required. ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT Under Government Code , a state agency may not adopt a proposed rule if the fiscal note states that the rule imposes a cost on regulated persons, including another state agency, a special district, or a local government, unless the state agency: (a) repeals a rule that imposes a total cost on regulated persons that is equal to or greater than the total cost imposed on regulated persons by the proposed rule; or (b) amends a rule to decrease the total cost imposed on regulated persons by an amount that is equal to or greater than the cost imposed on the persons by the proposed rule. There are exceptions for certain types of rules under (c). The proposed repeal of the rules does not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Government Code PUBLIC COMMENTS Comments on the proposal may be submitted to Pauline Easley, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) , or electronically: erule.comments@tdlr.texas.gov. The deadline for comments is 30 days after publication in the Texas Register. STATUTORY AUTHORITY The repeal of the existing rules is proposed under Texas Occupations Code, Chapter 51, which authorizes the Commission, the Department s governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department. The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapter 51 and former Chapter 2306, and Texas Business and Commerce Code, Chapter 17. No other statutes, articles, or codes are affected by the proposal Authority Definitions Registration and Renewal Requirements--General Registration Requirements--Financial Security Requirements Responsibilities of Registrant Fees Administrative Penalties and Sanctions. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Brian E. Francis Executive Director Texas Department of Licensing and Regulation Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TITLE 19. EDUCATION PART 2. TEXAS EDUCATION AGENCY CHAPTER 61. SCHOOL DISTRICTS SUBCHAPTER BB. COMMISSIONER'S RULES ON REPORTING REQUIREMENTS 19 TAC The Texas Education Agency (TEA) proposes the repeal of , concerning community and student engagement. The proposed repeal is necessary because the statutory authority for the rule was repealed. House Bill (HB) 5, 83rd Texas Legislature, 2013, added the Texas Education Code (TEC), , establishing community and student engagement indicators and requiring districts to report to TEA self-assigned district and campus ratings in eight specific categories. The commissioner adopted 19 TAC effective June 26, 2014, to provide instructions for the required reporting. HB 2804, 84th Texas Legislature, 2015, added the TEC, , requiring that community and student engagement ratings be part of the state academic accountability system. The TEA amended 19 TAC effective June 8, 2017, to provide instructions for reporting these ratings. HB 22, 85th Texas Legislature, Regular Session, 2017, repealed the TEC, and The proposed repeal of 19 TAC is necessary because the statutory authority for the rule has been repealed. The proposed repeal would eliminate the use of certain data elements related to community and student engagement in the 42 TexReg 5200 September 29, 2017 Texas Register

17 Texas Student Data System Public Education Information Management System (TSDS PEIMS). The proposed repeal would have no locally maintained paperwork requirements. FISCAL NOTE. Penny Schwinn, deputy commissioner for academics, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal. There is no effect on local economy for the first five years that the proposed repeal is in effect; therefore, no local employment impact statement is required under Texas Government Code, The proposed repeal does not impose a cost on regulated persons and, therefore, is not subject to Texas Government Code, PUBLIC BENEFIT/COST NOTE. Ms. Schwinn has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be reflecting statutory changes and removing obsolete provisions from rule. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. ECONOMIC IMPACT STATEMENT AND REGULATORY FLEX- IBILITY ANALYSIS FOR SMALL BUSINESSES, MICROBUSI- NESSES, AND RURAL COMMUNITIES. There is no direct adverse economic impact for small businesses, microbusinesses, and rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, , is required. REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins September 29, 2017, and ends October 30, Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas Comments may also be submitted electronically to rules@tea.texas.gov. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on September 29, STATUTORY AUTHORITY. The repeal is proposed under the Texas Education Code (TEC), , as repealed by House Bill (HB) 22, 85th Texas Legislature, Regular Session, 2017, which required each school district to annually evaluate its performance and the performance of each of its campuses in the area of community and student engagement using eight specific categories and also required each district to report to the Texas Education Agency (TEA) the rating of Exemplary, Recognized, Acceptable, or Unacceptable that it had assigned to itself and to each of its campuses for overall performance in community and student engagement and for each of the eight categories; and TEC, , as repealed by HB 22, 85th Texas Legislature, Regular Session, 2017, which required each school district and campus to annually select three of the eight categories in community and student engagement on which it would rate itself for the purpose of academic accountability ratings. It also required each district and campus to report to TEA the rating of A, B, C, D, or F that it had assigned to itself for overall performance in community and student engagement and for each of the three categories. CROSS REFERENCE TO STATUTE. The repeal implements the Texas Education Code, and , as repealed by House Bill 22, 85th Texas Legislature, Regular Session, Community and Student Engagement. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 97. PLANNING AND ACCOUNTABILITY SUBCHAPTER EE. ACCREDITATION STATUS, STANDARDS, AND SANCTIONS 19 TAC , , , , , The Texas Education Agency (TEA) proposes amendments to , , , , , and , concerning accreditation status, standards, and sanctions. The proposed amendments would provide additional clarity regarding who may qualify as a professional service provider; outline the standards used by the commissioner to determine the imposition of sanctions and add clarity regarding when conservators, management teams, and boards of managers will be appointed; and update the process for transitioning from a board of managers to the board of trustees. The proposed amendments would also update references to the Texas Education Code (TEC) based on recodification legislation from the 85th Texas Legislature, Regular Session, , Definitions TEC, 39A.902, authorizes the commissioner to require a campus or district to acquire professional services to address certain deficiencies. The statute does not define what type of entity may provide the professional services. The proposed amendment to would expand the current definition of professional service provider to include any partners, not just educators, that satisfy the agency vetting process to provide the services. The proposed amendment would increase the quality and availability of professional services by expanding the type of entities that may provide the services , Interventions and Sanctions; Lowered Rating or Accreditation Status, and , Standards for All Accreditation Sanction Determinations TEC, Chapter 39A, authorizes the commissioner to impose sanctions and interventions on districts and campuses that do not satisfy applicable standards. The proposed amendment to (d) would place into rule the statutory authorization to appoint a board of managers found PROPOSED RULES September 29, TexReg 5201

18 in TEC, 39A.006, when, for two consecutive school years, including the current school year, the district has had a conservator or management team assigned. The proposed amendment would define a school year as starting on the first day of instruction and including any portion of the school year. Since school years can vary between districts, the proposed language would use the first day of instruction as a common starting point between districts. By defining school year as any portion of the school year, the proposed language clarifies that the current school year need not be the entire school year. If the current school year were required to be the full school year, one could never satisfy the standard because once the current school year was completed, it would no longer be the current school year. The proposed amendment would implement past practice by the agency. The proposed amendments to (f) and would establish an additional standard that the commissioner may consider when making determinations to impose sanctions and interventions. Section establishes the primary consideration to be the best interest of the district's students. The proposed amendment to (f) would make clear that an inability to implement effective change to improve student performance at the district or campus is contrary to the best interest of the district's students. Additionally, establishes what constitutes a material deficiency for which sanctions shall be imposed. The proposed amendment to would make explicit that an inability to implement effective change to improve student performance at the district or campus is considered a material deficiency for which sanctions on a district or campus shall be imposed. The statutory framework establishes a system to ensure that public schools improve student performance. The proposed amendments would make clear that an inability to initiate change focused on improving student performance acts against students' best interest and will initiate intervention processes , Commissioner Determinations for Decisions Preceding Alternative Management, Campus Closure, or Board of Managers TEC, 39A.001, requires the commissioner to take actions for districts under TEC, Chapter 39A, Subchapter A, Accountability Interventions and Sanctions, to the extent the commissioner determines necessary. TEC, 39A.002, allows the commissioner to take several actions if a district does not satisfy one of several standards, including the appointment of monitors, conservators, and management teams. TEC, 39A.102, allows the commissioner to appoint a monitor, conservator, management team, or board of managers to the school district to ensure support of low-performing campuses and implementation of the targeted improvement plan. Proposed new (b) would make explicit that actions taken against campuses under TEC, 39A.107, are subject to commissioner rules adopted in 19 TAC Chapter 157, Hearings and Appeals, for challenging interventions. The rules in 19 TAC Chapter 157 comply with the statutory requirements established under TEC, 39A.301. Clarification of the challenge process would ensure uniformity in applying interventions and recourse to interventions. TEC, 39A.112, authorizes the commissioner to establish the time and manner for a parent petition to direct the sanction imposed based on five consecutive years of unacceptable campus performance. The proposed amendment to (d) would update the requirements for a parent petition, making it clear that the superintendent is responsible for certifying a valid petition and that parent signatures collected after the issuance of preliminary ratings for the fourth consecutive year of unacceptable performance are part of the petition. The proposed amendment should facilitate the processing and delivery of a valid petition. The proposed amendment would also make clear that the sanction will be implemented for the current year or, if necessary, for the subsequent school year regardless of performance rating. This change would recognize the difference in timing between the appointment of a board of managers, which can be done relatively quickly, or the closure of the campus, which would displace students if done immediately. The change would ensure that a campus would not be required to close in the middle of a school year , Appointment of Monitor, Conservator, or Board of Managers The proposed amendment to (b) would make explicit that a monitor may be appointed when a district is assigned an accreditation status of warned or probated. This would ensure that the commissioner may be kept apprised of actions of the district to enact change. The proposed amendment implements TEC, 39A.102, which authorizes the assignment of a monitor to ensure support of low-performing campuses and implementation of a targeted improvement plan. The proposed amendment to (c) would make explicit that a conservator or management team may be appointed when a district is assigned an accreditation status of probation. The proposed amendment would also implement TEC, 39A.102, which authorizes the assignment of a conservator or management team when necessary to ensure district-level support of low-performing campuses or implementation of a targeted improvement plan. This change would ensure that actions may be required of the district to initiate necessary changes to improve performance. The proposed amendment to (d) would make clear that the appointment of additional conservators to establish or add to a management team is not an additional sanction subject to additional review. The imposition of a conservator or management team is driven by performance, and the district has a review opportunity at that time. The use of multiple conservators or a single conservator is a decision of efficiency and efficacy of the intervention tool, not a question of whether the district is subject to the intervention. TEC, 39A.111, requires the commissioner to either close a campus or appoint a board of managers if a campus reaches five consecutive years of unacceptable performance. TEC, 39A.115, authorizes the commissioner to adopt rules to implement TEC, Chapter 39A, Subchapter C, Campus Turnaround Plan. The proposed amendment to (e) would make clear that the commissioner may appoint a board of managers if closure of a campus is not ordered when a campus meets the standards under TEC, 39A.111. The proposed amendment would implement TEC, 39A.102, which authorizes the assignment of a board of managers when necessary to ensure district-level support of low-performing campuses or implementation of a targeted improvement plan. The proposed amendment would make clear that a board of managers may be placed based on deficiencies identified in a special accreditation investigation. The proposed changes incorporate the explicit statutory authorizations. TEC, 39A.208, requires that a board of managers transition back to a board of trustees over the last three years of the 42 TexReg 5202 September 29, 2017 Texas Register

19 board of managers appointment, as close to one-third of the members at a time as possible. The statute also requires the board of managers to continue to call for elections of board of trustees although the board of trustees's authority is suspended. The statute further requires that a board of trustees may only be restored if the members were elected under an election called by the board of managers. The proposed amendment to (g) would clarify that the commissioner may determine the order of the trustee positions restored to authority during a board of managers transition. The proposed amendment would also state that in the absence of a designation, the default transition established in would be maintained. As districts have multiple configurations of trustee positions, providing for commissioner determination of transition would allow the commissioner to adjust for unique circumstances and ensure the transition occurs in an orderly fashion. Several sections of the TEC authorize the commissioner to appoint a board of managers. TEC, Chapter 39A, Subchapter E, establishes parameters and requirements of a board of managers. Decisions of number of the board of managers and terms of the board of managers are not statutorily defined. TEC, 39A.207, provides explicit authorization of the commissioner to replace members of the board of managers when placed due to campus-based interventions. The proposed amendment to (g) would make clear that the commissioner may expand or reduce the number of members on a board of managers and may remove a member as needed. This change would ensure that as circumstances change, the board of managers would remain an effective intervention to improve performance of the district , , , , and Senate Bill 1488, 85th Texas Legislature, Regular Session, 2017, recodified TEC, Chapter 39, Subchapter E, into TEC, Chapter 39A. Sections , , , , and would be amended to update cross references affected by the recodification. The proposed amendments would have no procedural or reporting implications. The proposed amendments would have no locally maintained paperwork requirements. FISCAL NOTE. A.J. Crabill, deputy commissioner for governance, has determined that for the first five-year period the amendments are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments. There is no effect on local economy for the first five years that the proposed amendments are in effect; therefore, no local employment impact statement is required under Texas Government Code, The proposed amendments do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, GOVERNMENT GROWTH IMPACT: In accordance with Texas Government Code, , TEA staff has determined that the proposed amendments would expand, limit, or repeal an existing regulation. The proposed amendment to limits an existing regulation by expanding the types of entities that can provide professional services. The proposed amendments to (f) and expand an existing regulation by adding the district inability to implement effective change to improve student performance as a reason that a sanction or intervention may be ordered. PUBLIC BENEFIT/COST NOTE. Mr. Crabill has determined that for each year of the first five years the proposed amendments are in effect the public benefit anticipated as a result of enforcing the proposed amendments will be providing clarity in the administration of interventions and sanctions. There is no anticipated economic cost to persons who are required to comply with the proposed amendments. ECONOMIC IMPACT STATEMENT AND REGULATORY FLEX- IBILITY ANALYSIS FOR SMALL BUSINESSES, MICROBUSI- NESSES, AND RURAL COMMUNITIES. There is no direct adverse economic impact for small businesses, microbusinesses, and rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, , is required. REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins September 29, 2017, and ends October 30, Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas Comments may also be submitted electronically to rules@tea.texas.gov. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on September 29, STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), , which requires the commissioner to determine accreditation statuses; TEC, , as amended by Senate Bill (SB) 7 and SB 1488, 85th Texas Legislature, Regular Session, 2017, which authorizes the commissioner to take intervention actions based on a special accreditation action, which includes the appointment of a board of managers under TEC, 39A.004, lowering the accreditation, or both; TEC, (a)(9), as amended by House Bill (HB) 1553 and SB 1566, 85th Texas Legislature, Regular Session, 2017, which expands the commissioner intervention tools when districts fail to meet accreditation, academic accountability, or financial accountability standards to include authorizing a district to enter into a memorandum of understanding with an institution of higher education to improve the district's performance; TEC, (a)(12), which expands the commissioner intervention tools when districts fail to meet accreditation, academic accountability, or financial accountability standards to include requiring the use of a board improvement and evaluation tool as provided by TEC, ; TEC, 39A.001, which requires the commissioner to take actions for districts under the TEC, Chapter 39A, Subchapter A, Interventions and Sanctions for School Districts, to the extent the commissioner determines necessary, including any action the commissioner determines is appropriate on the bases of a special accreditation investigation; TEC, 39A.002, which allows the commissioner to take several actions if a district does not satisfy one of several standards, including the appointment of monitors, conservators, and management teams; TEC, 39A.003, which establishes the powers, duties, and limitations on the authority of a conservator or management team; TEC, 39A.004, which allows the commissioner to appoint a board of managers upon the satisfaction of certain conditions; TEC, 39A.005, which allows the commissioner to revoke the accreditation of a district upon the satisfaction of certain conditions; TEC, 39A.006, which allows the commissioner to appoint a board of managers after the assignment of a conservator or management team for two consecutive years; TEC, 39A.007, which allows the commis- PROPOSED RULES September 29, TexReg 5203

20 sioner to impose additional sanctions designed to improve high school completion rates if the district fails any standard because of a district's dropout rate; TEC, 39A.051, which allows the commissioner to take actions as provided by TEC, Chapter 39A, as the commissioner determines necessary when a campus fails to meet the standard on any accountability indicator; TEC, 39A.052, which allows the commissioner to include certain educational personnel on a campus intervention team; TEC, 39A.053, which establishes the requirements for onsite needs assessments performed by a campus intervention team; TEC, 39A.054, which establishes the parameters for the recommendations that a campus intervention team provides; TEC, 39A.055, which requires a campus intervention team to assist in developing a targeted improvement plan; TEC, 39A.056, which establishes public notice requirements for a targeted improvement plan; TEC, 39A.057, which establishes hearing requirements for a targeted improvement plan; TEC, 39A.058, which requires submission of a targeted improvement plan to the commissioner for approval; TEC, 39A.059, which allows a campus intervention team, if appropriate, to take certain actions in executing a targeted improvement plan; TEC, 39A.060, recodified from TEC, , as amended by HB 2263, 85th Texas Legislature, Regular Session, 2017, which establishes continuing duty requirements for a campus intervention team; TEC, 39A.061, allows the commissioner to authorize certain intervention mechanisms to substitute for certain committees and planning requirements at a campus; TEC, 39A.062, which authorizes the commissioner to require campus- and district-level committees to revise campus improvement plans in certain circumstances; TEC, 39A.063, which authorizes the commissioner to accept a substantially similar federal intervention in place of imposing a state intervention; TEC, 39A.101, which requires the commissioner to order a campus to develop a campus turnaround plan after two consecutive years of unacceptable performance, requires the campus intervention team to assist in developing the plans, and requires the plan to include all necessary details to implement without further action by the board of trustees; TEC, 39A.102, which allows the commissioner to appoint a monitor, conservator, management team, or board of managers to the school district to ensure support of low-performing campuses and implementation of the targeted improvement plan; TEC, 39A.103, which requires public notices and requests for assistance in developing the campus turnaround plan prior to submitting the plan to the board of trustees; TEC, 39A.104, which requires the school district to prepare the campus turnaround plan and allow review prior to submitting to the board of trustees and requires that the plan assist in satisfying all accountability standards; TEC, 39A.105, which establishes the requirements of a campus turnaround plan; TEC, 39A.106, which requires the campus turnaround plan to take effect no later than the school year after the third consecutive school year of unacceptable performance; TEC, 39A.107, which allows the commissioner to approve a turnaround plan only if the commissioner determines implementing the plan will result in satisfaction of performance standards by the conclusion of the second year after implementation. In the absence of approving a turnaround plan, the commissioner must order alternative management of the campus or closure of the campus or appoint of a board of managers for the district; TEC, 39A.108, which authorizes the school district to take actions to implement the turnaround plan once approved by the commissioner; TEC, 39A.109, which authorizes a school district to receive assistance from a regional education service center or an institution of higher education in developing and implementing a campus turnaround plan; TEC, 39A.110, which provides options regarding the use of a campus turnaround plan if the campus receives an acceptable rating for the school year following the school year that required the development of the plan; TEC, 39A.111, which requires the commissioner to either close a campus or appoint a board of managers if a campus reaches five consecutive years of unacceptable performance; TEC, 39A.112, which authorizes the commissioner to establish the time and manner for a parent petition to direct the sanction imposed based on five consecutive years of unacceptable campus performance and allows the commissioner to order the sanction requested by a board of trustees submitted in rebuttal to a parent-submitted sanction directive; TEC, 39A.113, which establishes parameters around repurposing a campus site when the campus was ordered closed; TEC, 39A.114, which allows the commissioner to require a district to contract for targeted technical assistance at a campus under certain circumstances; TEC, 39A.115, which authorizes the commissioner to adopt rules to implement TEC, Chapter 39A, Subchapter C, Campus Turnaround Plan; TEC, 39A.151, which establishes process and eligible entities for alternative management; TEC, 39A.152, which establishes qualifications for a managing entity for alternative management; TEC, 39A.153, which establishes terms of the contract with the managing entity for alternative management; TEC, 39A.154, which authorizes the commissioner to extend an alternative management contract and to approve terms of the contract; TEC, 39A.155, which establishes the evaluation of a managing entity for alternative management; TEC, 39A.156, which establishes when an alternative management contract must be cancelled; TEC, 39A.157, which establishes when management of a campus returns to the school district; TEC, 39A.158, which requires accountability to apply to a campus managed under alternative management; TEC, 39A.159, which requires certain minimum funding for a campus under alternative management; TEC, 39A.160, which applies open meeting and public record requirements to a managing entity; TEC, 39A.161, which authorizes commissioner to adopt rules to implement TEC, Chapter 39A, Subchapter D, Alternative Management; TEC, 39A.201, which authorizes a board of managers to exercise all duties of a board of trustees; TEC, 39A.202, which suspends the powers of a board of trustees when a board of managers is appointed by the commissioner, authorizes the commissioner to appoint a superintendent, makes explicit that a board of managers may amend the budget, and applies TEC, Chapter 39A, to a district governed by a board of managers; TEC, 39A.203, which suspends the powers of a board of trustees regarding a campus when a board of managers for the campus is appointed by the commissioner, authorizes the commissioner to appoint a principal, and authorizes the commissioner to approve a campus board of managers's request for budget amendments; TEC, 39A.204, which requires, if possible, for a board of managers to include community leaders, business representatives, and experts in the field of education; TEC, 39A.205, which requires the commissioner to provide training for a board of managers; TEC, 39A.206, which authorizes compensation for a board of managers in certain circumstances; TEC, 39A.207, which authorizes the commissioner to replace a member of the board of managers when appointed under TEC, Chapter 39, Subchapter C, Accreditation; TEC, 39A.208, which requires that a board of managers transition back to a board of trustees over the last three years of the board of managers appointment, as close to one-third of the members at a time as possible; requires the board of managers to continue 42 TexReg 5204 September 29, 2017 Texas Register

21 to call for elections of board of trustees although the board of trustees's authority is suspended; and requires that a board of trustees may only be restored if the members were elected under an election called by the board of managers; TEC, 39A.209, which allows a board of managers to be removed only after the campus has two consecutive years of acceptable performance; authorizes replacement of an appointed board of managers; and authorizes a conservator or monitor once the board of managers is removed; TEC, 39A.251, which imposes interventions and sanctions on open-enrollment charter schools the same as on school districts; TEC, 39A.252, which requires the commissioner to adopt rules for imposing interventions and sanctions on open-enrollment charter schools; TEC, 39A.253, which grants charter school hearings only under TEC, Chapter 39 or Chapter 12, not both; TEC, 39A.254, which authorizes the commissioner to require the development of a campus improvement plan in certain circumstances; TEC, 39A.255, which authorizes the commissioner to develop rules regarding the application of turnaround plans to open-enrollment charter schools; TEC, 39A.256, which authorizes the appointment of a board of managers for an open-enrollment charter school; TEC, 39A.257, which authorizes the appointment of a superintendent for an open-enrollment charter school; TEC, 39A.258, which authorizes the commissioner to remove a person from a charter board of managers at any time; TEC, 39A.259, which authorizes the commissioner to provide compensation to a charter board of managers or appointed superintendent; TEC, 39A.260, which establishes immunity for charter boards of managers and appointed superintendents; TEC, 39A.301, which establishes the exclusive challenge process for a decision by the commissioner to order closure of a district or campus or alternative management of a campus; TEC, 39A.901, which requires annual review of performance by the commissioner and increasing severity of intervention for lack of progress; TEC, 39A.902, which allows the commissioner to require a campus or district to acquire professional services to address certain deficiencies, including requiring board of trustees members to participate in professional services to address governance deficiencies; TEC, 39A.903, which requires districts to pay for the costs of certain interventions; TEC, 39A.904, which establishes immunity for those acting on behalf of the commissioner in implementing interventions and sanctions; TEC, 39A.905, which prohibits the commissioner from requiring a campus name change during certain interventions; TEC, 39A.906, which is a transitional provision that establishes which years to count for imposing certain interventions; and TEC, 39A.907, which establishes a special student recovery program that may be required of certain districts. CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code (TEC), , as amended by Senate Bill (SB) 7 and SB 1488, 85th Texas Legislature, Regular Session, 2017; , as amended by House Bill (HB) 1553 and SB 1566, 85th Texas Legislature, Regular Session, 2017; 39A A.007; 39A A.059; 39A.060, recodified from TEC, , as amended by HB 2263, 85th Texas Legislature, Regular Session, 2017; 39A A.063; 39A A.115; 39A A.161; 39A A.209; 39A A.260; 39A.301; and 39A A Definitions. For purposes under Texas Education Code (TEC), Chapters [Chapter] 39 and 39A, and this subchapter, the following words and terms shall have the following meaning, unless the context clearly indicates otherwise: (1) Board of managers--a board appointed by the commissioner of education to serve as a governing body that must, if possible, include: (A) community leaders; (B) business representatives who have expertise in leadership; and (C) individuals who have knowledge or expertise in the field of education. (2) Board of trustees--the definition of this term includes a governing body of a charter holder as defined by TEC, (3) Campus--An organizational unit operated by the school district that is eligible to receive a campus performance rating in the state accountability rating system under of this title (relating to Accountability Rating System), including a rating of Not Rated or Not Rated: Data Integrity Issues. The definition of this term includes a charter school campus as defined by (3)(C) of this title (relating to Definitions). (4) Campus turnaround--a comprehensive change in an academically unacceptable campus that produces significant and sustainable gains in achievement within two years. For the purposes of this chapter, the term "academically unacceptable" performance means a rating of Academically Unacceptable, AEA: Academically Unacceptable, Improvement Required, or Unacceptable Performance or as otherwise indicated in the applicable year's academic accountability manual. (5) Charter school--this term has the meaning assigned by (3) of this title. References to a charter school in TEC, Chapters [Chapter] 39 and 39A, and rules adopted under it, shall mean either the board of trustees or the school district, as appropriate. (6) Charter school site--this term has the meaning assigned by (3)(D) of this title. (7) District coordinator of school improvement (DCSI)- -An employee of a school district in a leadership position in school improvement, in curriculum and instruction, or in another position with responsibility for student performance. (8) Newspaper of general circulation--a newspaper, as defined in Texas Government Code, , that has more than a minimum number of subscribers among a particular geographic region, that has a diverse subscribership, and that publishes some news items of general interest to the community. (9) Person--This term has the meaning assigned by the Code Construction Act, Government Code, (2), and includes a school district. (10) Professional service provider (PSP)--A partner [An educator] who has been vetted to provide on-site technical assistance for underperforming schools and districts either by the Texas Education Agency (TEA) or the TEA's technical assistance provider. (11) Root cause--the education-related factors resulting in a campus's low performance and lack of progress. (12) School district and district--the definition of these terms includes a charter operator, which is the same as a charter holder as defined by TEC, Purpose. (a) The provisions of Texas Education Code (TEC), Chapters [Chapter] 39 and 39A, and this subchapter shall be construed and applied to achieve the purposes of accreditation statuses assigned under PROPOSED RULES September 29, TexReg 5205

22 TEC, and , and the purposes of accreditation sanctions, which are to: (1) inform the parents of students enrolled in the district, property owners in the district, general public, and policymakers of the academic, fiscal, and compliance performance of each district or campus on the standards adopted by the commissioner of education under TEC, (b) and (c), and/or listed in of this title (relating to Standards for All Accreditation Sanction Determinations); (2) encourage the district or campus to improve its academic, fiscal, and/or compliance performance by addressing each area of deficiency identified by the commissioner of education; (3) enable the parents of students enrolled in the district, property owners in the district, general public, and policymakers to assist the district or campus in improving the district or campus performance by addressing each area of deficiency identified by the commissioner; (4) encourage other districts or campuses to improve their performance so as to avoid similar action and to retain their accreditation; and (5) improve the Texas public school system by eliminating poor academic, fiscal, and compliance performance by districts and campuses on the standards listed in of this title. (b) The accreditation status assigned a district under of this title (relating to Accreditation Status) generally reflects performance under the state academic accountability rating system and financial accountability rating system beginning with the district's 2006 ratings. However, performance under these systems for earlier years shall be considered for purposes of accreditation statuses and sanctions under this subchapter. Accordingly: (1) consideration of or failure to consider any rating of the district under of this title does not preclude consideration of that rating when determining accreditation sanctions under this subchapter; and (2) when determining accreditation sanctions under this subchapter, the commissioner shall consider the entire ratings history of the district and its campuses to the extent it is material. (c) The provisions of TEC, Chapters [Chapter] 39 and 39A, and this subchapter apply in the same manner to an open-enrollment charter school as to a district Interventions and Sanctions; Lowered Rating or Accreditation Status. (a) The provisions of Texas Education Code (TEC), Chapters [Chapter] 39 and 39A, and this subchapter shall be construed and applied to achieve the purposes of accreditation sanctions, which are specified in of this title (relating to Purpose). (b) If the commissioner of education finds that a district or campus does not satisfy the accreditation criteria under TEC, and , the academic performance standards under TEC, , or any financial accountability standard as determined by the commissioner, the commissioner may lower the district's accreditation status, academic accountability rating, or financial accountability rating, as applicable, and take appropriate action under this subchapter. (c) Regardless of whether the commissioner lowers a district's status or rating under subsection (b) of this section, the commissioner may take action under TEC, Chapters [Chapter] 39 and 39A, or this section if the commissioner determines that the action is necessary to improve any area of performance by the district or campus. (d) Regardless of whether a district has satisfied the accreditation criteria, if for two consecutive school years, including the current school year, a district has had a conservator or management team assigned, the commissioner may appoint a board of managers, a majority of whom must be residents of the district, to exercise the powers and duties of the board of trustees. For purposes of this subsection, a school year begins on the first day of instruction and includes any portion of the school year. (e) [(d)] Subject to subsections (h)-(k) [(g)-(j)] of this section, once the commissioner takes action under this subchapter, the commissioner may impose on the district or campus any other sanction under TEC, Chapter 39 or 39A, or this subchapter, singly or in combination, to the extent the commissioner determines is reasonably required to achieve the purposes specified in of this title. (f) [(e)] In determining whether to impose a particular sanction under TEC, Chapters [Chapter] 39 and 39A, or this subchapter, the commissioner may consider the costs and logistical concerns of the district, but shall give primary consideration to the best interest of the district's students. The sanction selected shall be reasonably calculated to address the district's or campus' deficiencies immediately or within a reasonable time, in the best interest of its present and future students. The following shall be considered as being contrary to the best interests of the district's students: (1) inefficient or ineffectual use of district funds or property; (2) failure to adequately account for funds; [and] (3) receipt of a substantial over-allocation of funds for which the district has failed to plan prudently in light of its obligation to repay the funds under TEC, ; and[.] (4) inability to implement effective change to improve the performance of students in the district or at the campus. (g) [(f)] In determining whether to impose a particular sanction under TEC, Chapters [Chapter] 39 and 39A, or this subchapter based on resource allocation practices as authorized by TEC, and (a)(12), (d), and (e), the commissioner shall consider the factors specified in of this title. (h) [(g)] The commissioner shall notify the school district or open-enrollment charter school in writing of a sanction imposed under this subchapter or of this title (relating to Intervention Based on Charter Violations). The notice must state the basis for finding that the district or open-enrollment charter school does not satisfy the applicable criteria as indicated in this subchapter or of this title. The finding(s) may be made in the notice or in a final investigative report or based on a final investigative report. (i) [(h)] If a finding is made for the first time in the notice required by subsection (h) [(g)] of this section, the Texas Education Agency shall comply with Chapter 157, Subchapter EE, Division 1, of this title (relating to Informal Review) with respect to the new finding. (j) [(i)] A determination under this section must be made in writing and may be included in a written notice under subsection (h) [(g)] of this section. The determination may be made in the notice or in a final investigative report or based on a final investigative report. A determination under this section may be based on a report on the progress of a prior action under this subchapter. (k) [(j)] The commissioner shall annually review a sanction imposed under subsection (h) [(g)] of this section and shall increase the sanction, as required by TEC, 39A.901 [ ]. The commissioner shall quarterly review the need for a conservator or a management team imposed under this subchapter, as required by 42 TexReg 5206 September 29, 2017 Texas Register

23 TEC, 39A.003 [ ]. If reviews are required under both TEC, 39A.901 [ ] and 39A.003 [ ], a quarterly review under TEC, 39A.003 [ ], may satisfy the annual review under TEC, 39A.901 [ ]. An annual or quarterly review is not subject to the requirements of this section Standards for All Accreditation Sanction Determinations. (a) The commissioner of education shall impose district and campus accreditation sanctions under this subchapter individually or in combination as the commissioner determines necessary to achieve the purposes identified in of this title (relating to Purpose). (b) In making a determination under subsection (a) of this section, the commissioner shall consider the seriousness, number, extent, and duration of deficiencies identified by the Texas Education Agency (TEA) [,] and shall impose one or more accreditation sanctions on a district and its campuses as needed to address: (1) each material deficiency identified by the TEA through its systems for district and campus accountability, including: (A) an accreditation status under of this title (relating to Accreditation Status); (B) an academic accountability rating under of this title (relating to Accountability Rating System); (C) a financial accountability rating under of this title (relating to Financial Accountability Ratings) or a financial audit or investigation; (D) program effectiveness under of this title (relating to Special Program Performance; Intervention Stages) or other law; (E) the results of a special accreditation investigation under Texas Education Code, ; (F) the results of an investigative report under Chapter 157, Subchapter EE, of this title (relating to Informal Review, Formal Review, and Review by State Office of Administrative Hearings); complaint investigation; special education due process hearing; or data integrity investigation, including an investigation of assessment or financial data; [or] (G) an inability to implement effective change to improve the performance of students in the district or at the campus; or (H) [(G)] other information related to subparagraphs (A)-(G) [(A)-(F)] of this paragraph. (2) any ongoing failures to address deficiencies previously identified or patterns of recurring deficiencies; (3) any lack of district responsiveness to, or compliance with, current or prior interventions or sanctions; and (4) any substantial or imminent harm presented by the deficiencies of the district or campus to the welfare of its students or to the public interest. (c) If the commissioner identifies a district and one or more of its campuses for accreditation sanction under subsection (a) of this section, the commissioner may elect to combine activities to be undertaken at the district and campus levels as needed to achieve the purposes of each sanction. (d) When making any campus-level determination under this subchapter, the commissioner shall also consider the district-level performance of the district on applicable academic, fiscal, and compliance standards. (e) The commissioner must review at least annually the performance of a district for which the accreditation status or academic accountability rating has been lowered due to insufficient student performance and may not raise the accreditation status or rating until the district has demonstrated improved student performance. If the review reveals a lack of improvement, the commissioner shall increase the level of state intervention and sanction unless the commissioner finds good cause for maintaining the current status Commissioner Determinations for Decisions Preceding Alternative Management, Campus Closure, or Board of Managers. Action required. The commissioner of education shall order: (a) (1) alternative management or closure of a campus or appoint a board of managers to govern the district if the campus turnaround plan is not approved as outlined in of this title (relating to Campus Turnaround Plan); and (2) closure of a campus or appoint a board of managers to govern the district if the campus is assigned an unacceptable performance rating under the state academic accountability system for three consecutive school years after the campus is ordered to submit a campus turnaround plan as outlined in of this title. (b) Review. An action ordered under subsection (a) of this section is subject to the applicable review procedures provided in Chapter 157 of this title (relating to Hearings and Appeals). (c) [(b)] Other actions permitted. In combination with action under this section, the commissioner may impose on the district or campus any other sanction under Texas Education Code (TEC), Chapter 39 or 39A, or this subchapter, singly or in combination, to the extent the commissioner determines is reasonably required to achieve the purposes specified in of this title (relating to Purpose). In particular, the commissioner may assign a monitor, conservator, management team, or board of managers in order to ensure and oversee district-level support to low-performing campuses and the implementation of the updated targeted improvement plan and the campus turnaround plan. (d) [(c)] Petition allowed. In accordance with TEC, 39A.112 [ (e-2)], for a campus subject to an order of closure or appointment of a board of managers to govern the district under subsection (a) of this section, if a written petition, signed by the parents of a majority of the students enrolled at the campus and specifying the action requested under subsection (a) of this section, is presented to the commissioner in accordance with this section and related procedures adopted by the Texas Education Agency (TEA), the commissioner shall, except as otherwise authorized by this section, order the specific action requested. If the board of trustees of the school district in which the campus is located presents to the commissioner, in accordance with this section and related procedures adopted by the TEA, a written request that the commissioner order a specific action under subsection (a) of this section other than the action requested by the parents in a valid petition, along with a written explanation of the basis for the board's request, the commissioner may order the action requested by the board of trustees. (1) A written petition under this subsection must be: (A) finalized and submitted to the district superintendent no later than October 15 for purposes of validation; (B) certified by the superintendent [district] as a valid petition in accordance with paragraph (2) of this subsection; and [(C) adopted as a valid petition by the board of trustees in an action taken in a public meeting conducted in compliance with the Texas Open Meetings Act; and] PROPOSED RULES September 29, TexReg 5207

24 (C) [(D)] if determined to be a valid petition, submitted by the district superintendent to the commissioner no later than December 1. (2) Only a written petition determined to be valid in accordance with this section and TEA procedures may be submitted to the commissioner. At a minimum, the following criteria must be met for a petition to be determined valid. (A) The petition must include all information required by the TEA as reflected in TEA model forms and related procedures and must be submitted to the district superintendent in accordance with the deadline established in paragraph (1)(A) of this subsection. (B) The petition must clearly state the sanction action under subsection (a) of this section being requested by the parents. (C) In accordance with this subparagraph, the parent(s) of more than 50% of the students enrolled at the campus must provide the handwritten or typed name and an original signature on the petition. (i) For the purposes of the petition, a parent means the parent who is indicated on the student registration form at the campus. (ii) A student will be considered enrolled at the campus for the purposes of the petition if the student is enrolled and in membership at the campus on a TEA-determined enrollment snapshot date, as reflected in TEA procedures. (iii) For the purposes of determining whether parents of more than 50% of the students enrolled at the campus have signed the petition, only one parent signature per enrolled student can be counted by the district in its calculation assuring validity of the petition. (iv) A signature is valid if the person signed the petition on or after the date on which a preliminary rating indicating four or more consecutive years of unacceptable performance at the campus was issued. (3) If the board of trustees of the school district requests that the TEA consider a specific action under subsection (a) of this section other than the action requested by the parents in a valid petition and submitted to the TEA in accordance with this subsection, the board must submit a written request to the commissioner and include a written explanation of the basis for the board's request for an action other than the one reflected in a valid parent petition. Any written request must be: (A) approved by a majority of the board members in an action taken in a public meeting conducted in compliance with the Texas Open Meetings Act; and (B) submitted to the commissioner no later than December 15 in accordance with procedures established by the TEA. (4) If a valid parent petition under paragraph (1) of this subsection or board of trustees submission under paragraph (3) of this subsection requests that the commissioner order campus closure, the district must submit, no later than January 30, a comprehensive plan for campus closure that meets the requirements of the TEC, 39A.113 [ ], and of this title (relating to Campus Closure). (5) Following the submission to the TEA of a valid petition and any subsequent board request under this section, the commissioner will order, no later than February 15, a sanction in compliance with the TEC, 39A.111 [ ], and this section. The sanction shall be implemented for the current year or, if necessary, for the subsequent school year regardless of the state academic accountability rating assigned to the campus in that school year. [For example: A campus is assigned an unacceptable performance rating for the fifth consecutive year on or around August 8, In February 2017, the commissioner orders a sanction under this paragraph. The sanction must be implemented for the school year.] (6) Notwithstanding this subsection, in the case of a charter school granted under the TEC, Chapter 12, Subchapter D or E, the commissioner shall retain authority under the TEC and Chapter 100, Subchapter AA, Division 2, of this title (relating to Commissioner Action and Intervention) to take any adverse action allowed by statute and rule and to approve or disapprove any proposed change in campus or charter structure resulting from a petition or board request under this subsection. (e) [(d)] Targeted technical assistance. In addition to the grounds specified in TEC, 39A.114 [ ], if the commissioner determines that the basis for the unsatisfactory performance of a campus for more than two consecutive school years is limited to a specific condition that may be remedied with targeted technical assistance, the commissioner may require the district to contract for the appropriate technical assistance, including, but not limited to, the district's regional education service center and/or an institution of higher education Appointment of Monitor, Conservator, or Board of Managers. (a) The commissioner of education shall appoint a monitor, conservator, management team, or board of managers whenever such action is required, as determined by this section. Action under any other section of this subchapter is not a prerequisite to acting under this section. (b) The commissioner may [shall] appoint a monitor under Texas Education Code (TEC), 39A.002 [ (a)(6), when: (1) the district has an accreditation rating of Accredited- Warned or Accredited-Probation; (2) a monitor is needed to ensure district-level support to low-performing campuses and the implementation of the updated targeted improvement plan; or (3) all of the following exist: (A) [(1)] the deficiencies identified under of this title (relating to Standards for All Accreditation Sanction Determinations) require a monitor to participate in and report to the commissioner on the activities of the district's board of trustees and superintendent; (B) [(2)] the deficiencies identified under of this title are not of such severity or duration as to require direct Texas Education Agency (TEA) oversight of district operations; (C) [(3)] the district has been responsive to and generally compliant with previous commissioner sanctions and TEA interventions; and (D) [(4)] stronger intervention is not required to prevent substantial or imminent harm to the welfare of the district's students or to the public interest. (c) The commissioner may [shall] appoint a conservator or management team under TEC, 39A.002, 39A.003, 39A.006, and 39A.102 [ (a)(7) and , or a management team under TEC, (a)(8) and ], when: (1) the district has an accreditation rating of Accredited- Probation; 42 TexReg 5208 September 29, 2017 Texas Register

25 (2) a conservator or management team is needed to ensure and oversee district-level support to low-performing campuses and the implementation of the updated targeted improvement plan; (3) [(1)] the nature or duration of the deficiencies require that the TEA directly oversee the operations of the district in the area(s) of deficiency; (4) [(2)] the district has not been responsive to or compliant with TEA intervention requirements; or (5) [(3)] such intervention is needed to prevent substantial or imminent harm to the welfare of the district's students or to the public interest. (d) The decision whether to appoint a conservator or management team under subsection (c) of this section may [shall] be based [solely] on logistical concerns, including the competencies required and the volume of work involved. The addition of a conservator to form a management team or the addition of additional members to the management team is not a new sanction and does not entitle the district to an additional review. [Selecting a management team rather than a conservator does not reflect on the severity of the deficiencies to be addressed.] (e) The commissioner may appoint a board of managers under TEC, 39A.004, 39A.006, 39A.102, 39A.107, 39A.111, 39A.256 [ , (a)(9) or (b)], or [ ]12.116(d)(1), as applicable, when: (1) sanctions under subsection (b) or (c) of this section have been ineffective to achieve the purposes identified in of this title (relating to Interventions and Sanctions; Lowered Rating or Accreditation Status); (2) the commissioner has initiated proceedings to close or annex the district; (3) the commissioner has initiated proceedings to close a campus, and such intervention is needed to cease operations of the campus; [or] (4) such intervention is needed to prevent substantial or imminent harm to the welfare of the district's students or to the public interest;[.] (5) a board of managers is needed to ensure and oversee district-level support to low-performing campuses and the implementation of the updated targeted improvement plan; (6) the district has a campus that is subject to TEC, 39A.111, and the commissioner does not order the closure of the campus; (7) deficiencies identified in a special accreditation investigation warrant the appointment of a board of managers; or (8) a failure in governance results in an inability to carry out the powers and duties of the board of trustees as outlined in TEC, and (f) Not later than the second anniversary date of the appointment of the board of managers, the commissioner shall notify the board of managers and the board of trustees of the date on which the appointment of the board of managers will expire. (g) A board of managers shall, during the period of the appointment, order the election of members of the board of trustees of the district in accordance with applicable provisions of law. Except as provided by this subsection, the members of the board of trustees do not assume any powers or duties after the election until the appointment of the board of managers expires. (1) An individual elected to the board of trustees at an election ordered under this subsection assumes and may exercise all powers and duties of that office at the first official board meeting where the replacement of the member of the board of managers with the elected board of trustee member occurs and after satisfying all legal and procedural prerequisites to take office. (2) Any member of the board of trustees elected during the appointment of the board of managers who has not yet assumed the powers and duties of a member of the board of trustees will not be considered for purposes of constitution of a quorum. (3) A board of managers shall order elections for trustees with three-year terms to be held annually in accordance with TEC, (b). Following each of the last three years of the period of appointment, one-third of the members of the board of managers shall be replaced by the number of members of the school district board of trustees who were elected at an election ordered under this paragraph that constitutes, as closely as possible, one-third of the membership of the board of trustees. (4) A board of managers shall order elections for trustees with four-year terms to be held biennially in accordance with TEC, (c). Following each of the last three years of the period of appointment, one-third of the members of the board of managers shall be replaced by the number of members of the school district board of trustees who were elected at an election ordered under this paragraph that constitutes, as closely as possible, one-third of the membership of the board of trustees. [(A) In the event that the number of trustees elected in the first election exceeds one-third of the total board of trustee membership, the board of managers shall determine, by lot, which of those trustees shall be selected to initially replace members of the board of managers and assume positions on the board.] [(B) Any remaining trustees elected at the first election ordered under this paragraph shall replace an equivalent number of members of the board of managers and assume positions on the board in the following year, together with any trustees elected in the second election ordered by the board of managers under this paragraph.] [(C) In the event that the total number of previously elected trustees who have not yet assumed positions on the board exceeds one-third of the total board of trustee membership, the trustees elected at the first election ordered under this paragraph shall receive priority in the order of placement on the board, followed by trustees elected at the second election who shall be selected by lot by the board of managers.] [(D) Any trustees elected in the third election ordered by the board of managers under this paragraph shall replace an equivalent number of members of the board of managers and assume positions on the board following the last year of the period of the board of managers' appointment.] (5) Upon the appointment of a board of managers to a school district, the commissioner will designate the sequence in which the board of managers' member groups and eligible board of trustees' member groups, the number of which constitutes, as closely as possible, one-third of the membership of the board of trustees, will be replaced by an equal number of elected board of trustee members. The commissioner may modify the composition or number of members constituting those groups at any time during the period of the appointment. (6) The commissioner may at any time remove and/or replace a member of the board of managers and may expand or reduce the number of the board of manager members [commensurate with the PROPOSED RULES September 29, TexReg 5209

26 number of the board of trustee members of the school district] at any time during the appointment of the board of managers. (7) On the expiration of the appointment of the board of managers, the board of trustees assumes all of the powers and duties assigned to a board of trustees of the school district. (8) The commissioner may designate the sequence in which an eligible trustee of the board of trustees will replace a member of the board of managers. If the commissioner makes such designation, a trustee replacing a manager would complete the remainder of his or her elected term upon placement to the transitioning board. In the absence of a designation by the commissioner, the trustees elected in an election following each of the last three years of the board of managers' appointment, as determined by the commissioner, shall replace the designated members of the board of managers, except as follows. (A) In the event that the number of trustees elected in the first election exceeds one-third of the total board of trustee membership, the board of managers shall determine by lot which of those trustees shall be selected to initially replace members of the board of managers and assume positions on the board. (B) Any remaining trustees elected at the first election ordered under this paragraph shall replace an equivalent number of members of the board of managers and assume positions on the board in the following year, together with any trustees elected in the second election ordered by the board of managers under this paragraph. (C) In the event that the total number of previously elected trustees who have not yet assumed positions on the board exceeds one-third of the total board of trustee membership, the trustees elected at the first election ordered under this paragraph shall receive priority in the order of placement on the board, followed by trustees elected at the second election, who shall be selected by lot by the board of managers. (D) Any trustees elected in the third election ordered by the board of managers under this paragraph shall replace an equivalent number of members of the board of managers and assume positions on the board following the last year of the period of the board of managers' appointment. (h) The training in effective leadership strategies required under TEC, 39A.205 [ ], shall be provided by TEA-approved registered providers of school board training to each individual appointed by the commissioner to a board of managers and, following the expiration of the appointment of the board of managers, to the board of trustees of the school district. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TITLE 22. EXAMINING BOARDS PART 3. TEXAS BOARD OF CHIROPRACTIC EXAMINERS CHAPTER 72. APPLICATIONS AND APPLICANTS 22 TAC 72.9 The Texas Board of Chiropractic Examiners (Board) proposes amending Chapter 72, 72.9, concerning "Reexaminations." The proposed amended rule is necessary to comply with the 2017 Sunset Commission recommendation to allow applicants an unlimited number of times to take the jurisprudence exam in order to achieve a passing score. The Board's Executive Director, Patricia Gilbert, has determined that for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amendment to the rule. Ms. Gilbert has determined that for the first five-year period the proposed amended rule is in effect, the public benefit expected will be added flexibility in the initial licensing application process, resulting in clearer guidance for the public and stakeholders. Ms. Gilbert has also determined that the proposed amended rule will not have an adverse economic effect on small businesses or individuals because it does not impose any duties or obligations upon small businesses or individuals. The purpose of the amendment is to comply with the recommendation of the 2017 Sunset Commission, to allow for an unlimited number of times an applicant can take the jurisprudence exam to achieve a passing score. Previously, applicants were allowed no more than three attempts in one calendar year to pass the exam. Applicants were also required to submit a new application and pay the requisite fee to the Board to take the exam a third time. This amendment lifts the restriction on the number of examinations in a calendar year and eliminates the additional fee requirement. Comments on the proposed amended rule and/or a request for a public hearing may be submitted to Courtney L. Ebeier, General Counsel, Texas Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, Texas 78701, via rules@tbce.state.tx.us; or fax: (512) , no later than 30 days from the date that this proposed amended rule is published in the Texas Register. The amendment is proposed under Texas Occupations Code , which authorizes the Board to adopt rules necessary to regulate the practice of chiropractic to protect the public health and safety. The Board is further authorized to adopt rules based upon the relevant portions of the Administrative Procedure Act, Government Code No other statutes, articles or codes are affected by the amendment Reexaminations. (a) An examinee who fails to pass the examination shall be permitted to take a subsequent examination, provided the examinee applies for reexamination and pays a reexamination fee as provided in 78.6 of this title (relating to Fees). An examinee shall be required to make a grade of 75% or better on any subsequent examination. (b) An applicant is not limited in the number of times he or she may take the jurisprudence examination [no more than twice] in one 42 TexReg 5210 September 29, 2017 Texas Register

27 calendar year in order [. If an applicant fails] to achieve a passing score [after the second attempt, the applicant must reapply by submitting a new application and required materials and fees, as provided in 72.2 of this title (relating to Application for License)]. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Courtney L. Ebeier General Counsel Texas Board of Chiropractic Examiners Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 73. CHIROPRACTIC FACILITIES 22 TAC The Texas Board of Chiropractic Examiners (Board) proposes the repeal of Chapter 73, The repeal is necessary in order to implement the 2017 Sunset legislation, SB 304, which ceases the Board's statutory authority over registering chiropractic facilities, as of September 1, Patricia Gilbert, Executive Director, has determined that for the first five-year period the proposed repeal is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal of the rules. Ms. Gilbert has determined that for the first five-year period the proposed repeal is in effect, the public benefit expected as a result of the proposed repeal will result in clarification of the statute and rules for the public and stakeholders. Ms. Gilbert has also determined that the proposed repeal will not have an adverse economic effect on small businesses or individuals because the repeal does not impose any duties or obligations upon small businesses or individuals. This repeal was proposed after a recommendation by the Rule Committee to the Board and approved by the Board for publication. Comments were received at a stakeholder meeting held on June 28, 2017, to discuss the statutory change and its effects, including how the Board could assist stakeholders in educating the effects of the statutory change. Comments on the proposed repeal and/or a request for a public hearing may be submitted to Courtney L. Ebeier, General Counsel, Texas Board of Chiropractic Examiners, 333 Guadalupe St., Tower III, Suite 825, Austin, Texas 78701; via rules@tbce.state.tx.us; or fax: (512) , no later than 30 days from the date that this proposal is published in the Texas Register. The repeal is proposed under Texas Occupations Code , which authorizes the Board to adopt rules necessary to regulate the practice of chiropractic to protect the public health and safety. The Board is further authorized to adopt rules based upon the relevant portions of the Administrative Procedure Act, Government Code No other statutes, articles, or codes are affected by the repeal Definitions Facility Registration Requirements Annual Renewal of Facility Registrations Rules of Conduct for Facility Owners Disciplinary Action for Facility Owners. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Courtney L. Ebeier General Counsel Texas Board of Chiropractic Examiners Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 75. LICENSES AND RENEWALS 22 TAC 75.2 The Texas Board of Chiropractic Examiners (Board) proposes amending Chapter 75, 75.2, concerning "Renewal of Chiropractic License." The proposed amended rule is necessary to comply with the 2017 Sunset Commission recommendation to extend the licensing period from one year to two years. The Board's Executive Director, Patricia Gilbert, has determined that for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amendment of the rule. Ms. Gilbert has determined that for the first five-year period the proposed amended rule is in effect, the public benefit expected will be clarification of the present rule, resulting in clearer guidance for the public and stakeholders. Ms. Gilbert has also determined that the proposed amended rule will not have an adverse economic effect on small businesses or individuals because it does not impose any duties or obligations upon small businesses or individuals. The purpose of the amendment is to comply with the recommendation of the 2017 Sunset Commission to change the current annual license renewal period to a two-year cycle, which reflects the licensing procedure of other similar health professional licensing agencies. Comments on the proposed amended rule and/or a request for a public hearing may be submitted to Courtney L. Ebeier, General Counsel, Texas Board of Chiropractic Examiners, 333 Guadalupe St, Tower III, Suite 825, Austin, TX 78701, via rules@tbce.state.tx.us; or fax: (512) , no later than 30 days from the date that this proposed amended rule is published in the Texas Register. The amendment is proposed under Texas Occupations Code , which authorizes the Board to adopt rules necessary to regulate the practice of chiropractic to protect the public health and safety. The Board is further authorized to adopt rules based upon the relevant portions of the Administrative Procedure Act, Government Code PROPOSED RULES September 29, TexReg 5211

28 No other statutes, articles or codes are affected by the amendment Renewal of Chiropractic License. (a) Biennial [Annual] renewal. (1) Biennial [Annual] renewal of a licensee's license shall be accomplished on or before the first day of the licensee's birth month (first day of the birth month) every two years by submitting: (A) the license renewal form provided by the board; (B) the renewal fee for an active license as provided in 78.6 of this title (relating to Required Fees and Charges); (C) any late fees, if applicable, as provided in subsection (h) of this section; and (D) verification of continuing education attendance as required by 75.5 of this title (relating to Continuing Education). (2) Except as provided in 75.6 of this title (relating to Failure to Meet Continuing Education Requirements), incomplete submission of any of the information required for renewal shall not constitute a completed [annual] renewal and a [an annual] renewal certificate shall not be issued. (3) Prior to the due date for [an annual] renewal, a licensee may instead apply for inactive status in accordance with 75.4 of this title (relating to Inactive Chiropractic License Status). (4) A military service member who holds a license is entitled to two (2) years of additional time to complete: (A) any continuing education requirements; and (B) any other requirement related to the renewal of the military service member's license. (b) Locum tenens information. (1) A licensee who substitutes as the treating doctor for another licensee in the facility of the absent licensee shall, along with the information required for annual renewal, provide a list of facilities in which they served as a locum tenens doctor during the past twelve month period. (2) A licensee serving as a locum tenens doctor shall have proof of licensure readily available when requested. Proof of licensure may include: (A) a copy of the current license renewal certificate; or (B) a copy of the wallet size license. (3) The locum tenens list shall include the following for each facility: (A) licensee's name; and (B) facility physical address.[; and] [(C) facility registration number displayed on the current facility registration card.] [(4) If a facility registration number is not provided, a locum tenens doctor shall report the facility registration number as "not available." Licensees for whom facility numbers are reported as "not available" may be subject to investigation for the operation of an unregistered facility.] (c) Licensees in default of TGSLC student loan or repayment agreement. (1) The board shall not renew a license of a licensee who is in default of a loan guaranteed by the Texas Guaranteed Student Loan Corporation (TGSLC) or a repayment agreement with the corporation except as provided in paragraphs (2) and (3) of this subsection. (2) For a licensee in default of a loan, the board shall renew the license if: (A) the renewal is the first renewal following notice to the board that the licensee is in default; or (B) the licensee presents to the board a certificate issued by the corporation certifying that: (i) the licensee has entered into a repayment agreement on the defaulted loan; or (ii) the licensee is not in default on a loan guaranteed by the corporation. (3) For a licensee who is in default of a repayment agreement, the board shall renew the license if the licensee presents to the board a certificate issued by the corporation certifying that: (A) the [The] licensee has entered into another repayment agreement on the defaulted loan; or (B) the licensee is not in default on a loan guaranteed by the corporation or on a repayment agreement. (4) This subsection does not prohibit the board from issuing an initial license to a person who is in default of a loan or repayment agreement but is otherwise qualified for licensure. However, the board shall not renew the license of such a licensee, if at the time of renewal, the licensee is in default of a loan or repayment agreement except as provided in paragraph (2)(B) or (3) of this subsection. (d) Licensees in default of other student loans or scholarship obligations. (1) This subsection applies to a licensee in default of a student loan other than a loan guaranteed by the TGSLC, in breach of a loan repayment agreement other than one related to a TGSLC loan, or in breach of any scholarship contract. (2) The board may refuse to renew a chiropractic license if it receives information from an administering entity that the licensee has defaulted on a student loan or has breached a student loan repayment contract, or a scholarship contract by failing to perform his or her service obligation under the contract. The board may rescind a denial of renewal under this subsection upon receipt of information from an administering entity that the licensee whose renewal was denied is now in good standing, as provided in 72.3(b) of this title (relating to Qualifications of Applicants). (e) Upon notice that a licensee is again in default or breach of any loan or agreement relating to a student loan or scholarship agreement under subsections (c) or (d) of this section, the board may suspend the license or take other disciplinary action as provided in 77.6 of this title (relating to Default on Student Loans and Scholarship Agreements). (f) Opportunity for hearing. (1) The board shall notify a licensee, in writing, of the nonrenewal of a license under subsection (c) or (d) of this section and of the opportunity for a hearing under paragraph (2) of this subsection prior to or at the time the annual renewal application is sent. (2) Upon written request for a hearing by a licensee, the board shall set the matter for hearing before the State Office of Administrative Hearings in accordance with 78.8(d) of this title (relating to Complaint Procedures). A licensee shall file a request for a hearing 42 TexReg 5212 September 29, 2017 Texas Register

29 with the board within 30 days from the date of receipt of the notice provided in paragraph (1) of this subsection. (g) A license which is not renewed under subsection (c) or (d) of this section is considered expired. Subsections (h) and (i) of this section apply to a license not renewed under subsection (c) or (d) of this section. (h) Expired license. (1) If an active or inactive license is not renewed on or before the first day of the licensee's birth month of the renewal deadline [each year], it expires. (2) If a person's license has expired for 90 days or less, the person may renew the license by paying to the board the required renewal fee and a late fee, as provided in 78.6 of this title (relating to Required Fees and Charges). (3) If a person's license has expired for longer than 90 days, but less than one year, the person may renew the license by paying to the board the required renewal fee and a late fee, as provided in 78.6 of this title. (4) Except as provided by paragraphs (5) and (6) of this subsection, if a person's license has expired for one year or longer, the person may not renew the license but may obtain a new license by submitting to reexamination and complying with the current requirements and procedures for obtaining an initial license. (5) At the board's discretion, a person whose license has expired for one year or longer may renew without complying with paragraph (4) of this subsection if the person moved to another state or foreign country and is currently licensed in good standing and has been in practice in the other state or foreign country for two years preceding application for renewal. The person must also pay the board a fee equal to the examination fee, as provided in 78.6 of this title. A person is considered "currently licensed" if such person is licensed by another licensing board recognized by the Board. The Board shall recognize another licensing board that: (A) has licensing requirements substantially equivalent to the requirements of the Chiropractic Act; and (B) maintains professional standards considered by the Board to be equivalent to the standards under the Chiropractic Act. (6) At the board's discretion, a person whose license has expired for one year but not more than three years may renew without complying with paragraph (4) of this subsection, if the board determines that the person has shown good cause for the failure to renew the license and pays to the board: (A) the required renewal fee for each [year] renewal period in which the licensee was expired; and (B) an additional fee in an amount equal to the sum of: (i) the jurisprudence examination fee, multiplied by the number of years the license was expired, prorated for fractional years; and (ii) two times the jurisprudence examination fee. (7) Good cause for the purposes of paragraph (6) of this subsection means extenuating circumstances beyond the control of the applicant which prevented the person from complying timely with subsection (a) of this section, such as extended personal illness or injury, extended illness of the immediate family, or military duty outside the United States where communication for an extended period is impossible. Good cause is not shown if the applicant was practicing chiropractic during the period of time that the applicant's license was expired. With the renewal application, an applicant must submit a notarized sworn affidavit and supporting documents that demonstrate good cause, in the opinion of the board. (8) The Board shall exempt a person who holds a license issued by the Board from any increased fee or penalty imposed by the Board for failing to renew the license in a timely manner if the person establishes to the satisfaction of the Board that the failure to renew the license in a timely manner is because the person was serving as a military service member. For purposes of this section, "military service member" means a person who is on active duty. (i) Practicing with an expired license. Practicing chiropractic with an expired license constitutes practicing chiropractic without a license. A licensee whose license expires shall not practice chiropractic until the license is renewed or a new license is obtained as provided by subsection (h) of this section, except for a license which is not renewed under subsection (c) or (d) of this section if the licensee has timely requested a hearing under subsection (f) of this section. (j) Renewal of licenses. A licensee shall furnish a written explanation of his or her answer to any question asked on the application for license renewal, if requested by the board. This explanation shall include all details as the board may request and shall be furnished within two weeks of the date of the board's request. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Courtney L. Ebeier General Counsel Texas Board of Chiropractic Examiners Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC 75.4 The Texas Board of Chiropractic Examiners (Board) proposes amending Chapter 75, 75.4, concerning "Inactive Chiropractic License Status." The proposed amended rule is necessary to comply with the 2017 Sunset Commission recommendation to extend the licensing period from one year to two years. The Board's Executive Director, Patricia Gilbert, has determined that for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amendment of the rule. Ms. Gilbert has determined that for the first five-year period the proposed amended rule is in effect, the public benefit expected will be clarification of the present rule, resulting in clearer guidance for the public and stakeholders. Ms. Gilbert has also determined that the proposed amended rule will not have an adverse economic effect on small businesses or individuals because it does not impose any duties or obligations upon small businesses or individuals. The purpose of the amendment is to comply with the recommendation of the 2017 Sunset Commission to change the current annual license renewal period to a two-year period, which reflects PROPOSED RULES September 29, TexReg 5213

30 the licensing procedures of other similar health professional licensing agencies. Comments on the proposed amended rule and/or a request for a public hearing may be submitted to Courtney L. Ebeier, General Counsel, Texas Board of Chiropractic Examiners, 333 Guadalupe St, Tower III, Suite 825, Austin, TX 78701, via rules@tbce.state.tx.us; or fax: (512) , no later than 30 days from the date that this proposed amended rule is published in the Texas Register. The amendment is proposed under Texas Occupations Code , which authorizes the Board to adopt rules necessary to regulate the practice of chiropractic to protect the public health and safety. The Board is further authorized to adopt rules based upon the relevant portions of the Administrative Procedure Act, Government Code No other statutes, articles or codes are affected by the amendment Inactive Chiropractic License Status. (a) On [Each year, on] or before a licensee's renewal date, a licensee who is not currently practicing chiropractic in Texas may renew his or her license as provided by 75.2 of this title (relating to Renewal of Chiropractic License) and request, on a form prescribed by the board, that it be placed on inactive status. In order to continue on inactive status and to maintain a valid license, an inactive licensee must renew his or her license and make a new request for inactive status each renewal period [year]. (b) If the application is late, the licensee shall be subject to 75.2(h) of this title. A licensee on inactive status is not required to complete continuing education as provided in 75.5 of this title (relating to Continuing Education). (c) To place a license on inactive status at a time other than the time of license renewal, a licensee shall: (1) return the current renewal certificate to the board office; and (2) submit a signed, sworn declaration made under penalty of perjury [notarized statement] stating that the licensee shall not practice chiropractic in Texas while the license is inactive, and the date the license is to be placed on inactive status. (d) To reactivate a license which has been on inactive status for six [five] years or less, a licensee shall, prior to beginning practice in this state: (1) apply for active status on a form prescribed by the board; (2) submit written verification of attendance at and completion of continuing education courses as required by 75.5 of this title for the number of hours that would otherwise have been required for renewal of a license. Approved continuing education earned within the calendar year prior to the licensee applying for reactivation may be applied toward the continuing education requirement; and (3) pay the Active License Renewal Fee. (e) A license which has been on inactive status for a period of more than six [five] years may be reactivated only upon successfully passing Part IV of the National Board of Examination and the board's Jurisprudence Examination prior to reactivation. A licensee who has maintained an inactive status with the Board for a period greater than six (6) [five (5)] years may be exempt from compliance with the requirement of this subsection to retake Part IV of the National Board of Examination if they have held an active, unrestricted license in another state or foreign jurisdiction that is held in good standing. In no event shall an inactive status be maintained before this Board in excess of twenty (20) years. (f) Prohibition against Practicing Chiropractic in Texas. A licensee while on inactive status shall not practice chiropractic in this state. The practice of chiropractic by a licensee while on inactive status constitutes the practice of chiropractic without a license. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Courtney L. Ebeier General Counsel Texas Board of Chiropractic Examiners Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) PART 21. TEXAS STATE BOARD OF EXAMINERS OF PSYCHOLOGISTS CHAPTER 463. APPLICATIONS AND EXAMINATIONS 22 TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule , Types of Licensure. The proposed amendment is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applications otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. The proposed change is also necessary to ensure that those applicants whose post-doctoral supervised experience occurred both prior to and after September 1, 2016, are able to utilize the experience acquired prior to September 1, 2016, to satisfy the requirements for full licensure. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. 42 TexReg 5214 September 29, 2017 Texas Register

31 SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Licensed Psychologist. (a) Application Requirements. [Application for licensure as a psychologist may be made upon passage of, or exemption from the Oral Examination.] An application for licensure as a psychologist includes, in addition to the requirements set forth in Board rule 463.5(1) of this title (relating to Application File Requirements): (1) Documentation of current licensure as a provisionally licensed psychologist in good standing. [(2) Documentation indicating passage of or exemption from the Board's Oral Examination.] (2) [(3)] Documentation of supervised experience from a licensed psychologist which satisfies the requirements of the Board. The formal internship must be documented by the Director of Internship Training. (3) [(4)] Documentation of licensure in other jurisdictions, including information on disciplinary action and pending complaints, sent directly to the Board. (b) Degree Requirements. The degree requirements for licensure as a psychologist are the same as for provisional licensure as stated in Board rule of this title (relating to Provisionally Licensed Psychologist). (c) Supervised Experience. In order to qualify for licensure, a psychologist must submit proof of two years of supervised experience, at least one year of which must have been received after the doctoral degree was officially conferred or completed, whichever is earliest, as shown on the official transcript, and at least one year of which must have been a formal internship. The formal internship year may be met either before or after the doctoral degree is conferred or completed. Supervised experience must be obtained in a minimum of two, and no more than three, calendar years. (1) General. All supervised experience for licensure as a psychologist, including the formal internship, must meet the following requirements: (A) Experience may be obtained only in either a fulltime or half-time setting. (B) A year of full-time supervised experience is defined as a minimum of 35 hours per week employment/experience in not less than 12 consecutive calendar months in not more than two placements. (C) A year of half-time supervised experience is defined as a minimum of 20 hours per week employment/experience in not less than 24 consecutive calendar months in not more than two placements. (D) A year of full-time experience may be acquired through a combination of half-time and full-time employment/experience provided that the equivalent of a full-time year of supervision experience is satisfied. (E) One calendar year from the beginning of ten consecutive months of employment/experience in an academic setting constitutes one year of experience. (F) When supervised experience is interrupted, the Board may waive upon a showing of good cause by the supervisee, the requirement that the supervised experience be completed in consecutive months. Any consecutive experience obtained before or after the gap must be at least six months unless the supervisor remains the same. Waivers for such gaps are rarely approved and must be requested in writing and include sufficient documentation to permit verification of the circumstances supporting the request. No waiver will be granted unless the Board finds that the supervised experience for which the waiver is sought was adequate and appropriate. Good cause is defined as: (i) unanticipated discontinuance of the supervision setting, (ii) maternity or paternity leave of supervisee, (iii) relocation of spouse or spousal equivalent, (iv) serious illness of the supervisee, or serious illness in supervisee's immediate family. (G) A rotating internship organized within a doctoral program is considered to be one placement. (H) The experience requirement must be obtained after official enrollment in a doctoral program. (I) All supervised experience must be received from a psychologist licensed at the time supervision is received. (J) The supervising psychologist must be trained in the area of supervision provided to the supervisee. (K) No experience which is obtained from a psychologist who is related within the second degree of affinity or within the second degree by consanguinity to the person may be considered. (L) All supervised experience obtained for the purpose of licensure must be conducted in accordance with all applicable Board rules. PROPOSED RULES September 29, TexReg 5215

32 (M) Experience received from a psychologist while the psychologist is practicing subject to an Agreed Board Order or Board Order shall not, under any circumstances, qualify as supervised experience for licensure purposes regardless of the setting in which it was received. Psychologists who become subject to an Agreed Board Order or Board Order shall inform all supervisees of the Agreed Board Order or Board Order and assist all supervisees in finding appropriate alternate supervision. (N) The supervisee shall be designated by a title that clearly indicates a supervisory licensing status such as "intern," "resident," "trainee," or "fellow." An individual who is a provisionally licensed psychologist or a licensed psychological associate may use his or her title so long as those receiving psychological services are clearly informed that the individual is under the supervision of a licensed psychologist. An individual who is a licensed specialist in school psychology may use his or her title so long as the supervised experience takes place within the public schools, and those receiving psychological services are clearly informed that the individual is under the supervision of an individual who is licensed as a psychologists and specialist in school psychology. Use of a different job title is permitted only if the supervisee is providing services for a government facility or other facility exempted under of the Act (Applicability) and the supervisee is using a title assigned by that facility. (O) The supervisee and supervisor must inform those receiving psychological services as to the supervisory status of the individual and how the patient or client may contact the supervising licensed psychologist directly. (2) Formal Internship. At least one year of experience must be satisfied by one of the following types of formal internship: (A) The successful completion of an internship program accredited by the American Psychological Association (APA); or (B) The successful completion of an organized internship meeting all of the following criteria: (i) It must constitute an organized training program which is designed to provide the intern with a planned, programmed sequence of training experiences. The primary focus and purpose of the program must be to assure breadth and quality of training. (ii) The internship agency must have a clearly designated staff psychologist who is responsible for the integrity and quality of the training program and who is actively licensed/certified by the licensing board of the jurisdiction in which the internship takes place and who is present at the training facility for a minimum of 20 hours a week. (iii) The internship agency must have two or more full-time licensed psychologists on the staff as primary supervisors. (iv) Internship supervision must be provided by a staff member of the internship agency or by an affiliate of that agency who carries clinical responsibility for the cases being supervised. (v) The internship must provide training in a range of assessment and intervention activities conducted directly with patients/clients. (vi) At least 25% of trainee's time must be in direct patient/client contact (minimum 375 hours). (vii) The internship must include a minimum of two hours per week (regardless of whether the internship was completed in one year or two) of regularly scheduled formal, face-to-face individual supervision. There must also be at least two additional hours per week in learning activities such as: case conferences involving a case in which the intern was actively involved; seminars dealing with psychology issues; co-therapy with a staff person including discussion; group supervision; additional individual supervision. (viii) Training must be post-clerkship, postpracticum and post-externship level. (ix) The internship agency must have a minimum of two full-time equivalent interns at the internship level of training during applicant's training period. (x) The internship agency must inform prospective interns about the goals and content of the internship, as well as the expectations for quantity and quality of trainee's work; or (C) The successful completion of an organized internship program in a school district meeting the following criteria: (i) The internship experience must be provided at or near the end of the formal training period. (ii) The internship experience must occur on a fulltime basis over a period of one academic year, or on a half-time basis over a period of two consecutive academic years. (iii) The internship experience must be consistent with a written plan and must meet the specific training objectives of the program. (iv) The internship experience must occur in a setting appropriate to the specific training objectives of the program. (v) At least 600 clock hours of the internship experience must occur in a school setting and must provide a balanced exposure to regular and special educational programs. (vi) The internship experience must occur under conditions of appropriate supervision. Field-based internship supervisors, for the purpose of the internship that takes place in a school setting, must be licensed as a psychologist and, if a separate credential is required to practice school psychology, must have a valid credential to provide psychology in the public schools. The portion of the internship which appropriately may take place in a non-school setting must be supervised by a psychologist. (vii) Field-based internship supervisors must be responsible for no more than two interns at any given time. University internship supervisors shall be responsible for no more than twelve interns at any given time. (viii) Field-based internship supervisors must provide at least two hours per week of direct supervision for each intern. University internship supervisors must maintain an ongoing relationship with field-based internship supervisors and shall provide at least one field-based contact per semester with each intern. (ix) The internship site shall inform interns concerning the period of the internship and the training objectives of the program. (x) The internship experience must be systematically evaluated in a manner consistent with the specific training objectives of the program. (xi) The internship experience must be conducted in a manner consistent with the current legal-ethical standards of the profession. (xii) The internship agency must have a minimum of two full-time equivalent interns at the internship level during the applicant's training period. 42 TexReg 5216 September 29, 2017 Texas Register

33 (xiii) The internship agency must have the availability of at least two full-time equivalent psychologists as primary supervisors, at least one of whom is employed full time at the agency and is a school psychologist. (3) Industrial/Organizational Requirements. Individuals enrolled in an Industrial/Organizational doctoral degree program are exempt from the formal internship requirement and must complete two full years of supervised experience, at least one of which must be received after the doctoral degree is conferred and both of which must meet the requirements of paragraph (1) of this subsection. Individuals who do not undergo a formal internship pursuant to this paragraph should note that Board rules prohibit a psychologist from practicing in an area in which he or she does not have sufficient training and experience, of which a formal internship year is considered to be an integral requirement. (d) Supervised Experience. In order to qualify for licensure, an applicant must submit proof of a minimum of 3,500 hours of supervised experience, at least 1,750 of which must have been received after obtaining either provisional trainee status or provisional licensure, and at least 1,750 of which must have been obtained through a formal internship that occurred prior to conferral of the doctoral degree. Following the conferral of a doctoral degree, 1,750 hours obtained or completed while employed in the delivery of psychological services in an exempt setting; while licensed or authorized to practice in another jurisdiction; or while practicing as a psychological associate or specialist in school psychology in this state[; or prior to September 1, 2016,] may be substituted for the minimum of 1,750 hours of supervised experience required as a provisional trainee or provisionally licensed psychologist if the experience was obtained or completed under the supervision of a licensed psychologist. Post-doctoral supervised experience obtained prior to September 1, 2016 may also be used to satisfy, either in whole or in part, the post-doctoral supervised experience required by this subsection if the experience was obtained under the supervision of a licensed psychologist. (1) General. All supervised experience for licensure as a psychologist, including the formal internship, must meet the following requirements: (A) Each period of supervised experience must be obtained in not more than two placements, and in not more than 24 consecutive months. (B) Gaps Related to Supervised Experience. (i) Unless a waiver is granted by the Board, an application for a psychologist's license will be denied if a gap of more than 2 years exists between: (I) the date an applicant's doctoral degree was officially conferred and the date the applicant began obtaining their hours of supervised experience under provisional trainee status or provisional licensure; or (II) the completion date of an applicant's hours of supervised experience acquired as a provisional trainee or provisionally licensed psychologist, and the date of application. (ii) The Board shall grant a waiver upon a showing of good cause by the applicant. Good cause shall include, but is not limited to: (I) proof of continued employment in the delivery of psychological services in an exempt setting as described in of the Act, during any gap period; (II) proof of annual professional development, which at a minimum meets the Board's professional development requirements, during any gap period; (III) proof of enrollment in a course of study in a regionally accredited institution or training facility designed to prepare the individual for the profession of psychology during any gap period; or (IV) proof of licensure as a psychologist and continued employment in the delivery of psychological services in another jurisdiction. (C) A formal internship with rotations, or one that is part of a consortium within a doctoral program, is considered to be one placement. A consortium is composed of multiple placements that have entered into a written agreement setting forth the responsibilities and financial commitments of each participating member, for the purpose of offering a well-rounded, unified psychology training program whereby trainees work at multiple sites, but obtain training from one primary site with some experience at or exposure to aspects of the other sites that the primary site does not offer. (D) The supervised experience required by this rule must be obtained after official enrollment in a doctoral program. (E) All supervised experience must be received from a psychologist licensed at the time supervision is received. (F) The supervising psychologist must be trained in the area of supervision provided to the supervisee. (G) Experience obtained from a psychologist who is related within the second degree of affinity or consanguinity to the supervisee may not be utilized to satisfy the requirements of this rule. (H) All supervised experience obtained for the purpose of licensure must be conducted in accordance with all applicable Board rules. (I) Unless authorized by the Board, supervised experience received from a psychologist practicing with a restricted license may not be utilized to satisfy the requirements of this rule. (J) The supervisee shall be designated by a title that clearly indicates a supervisory licensing status such as "intern," "resident," "trainee," or "fellow." An individual who is a Provisionally Licensed Psychologist or a Licensed Psychological Associate may use his or her title so long as those receiving psychological services are clearly informed that the individual is under the supervision of a licensed psychologist. An individual who is a Licensed Specialist in School Psychology may use his or her title so long as the supervised experience takes place within the public schools, and those receiving psychological services are clearly informed that the individual is under the supervision of an individual who is licensed as a psychologist and specialist in school psychology. Use of a different job title is permitted only if authorized under of the Psychologists' Licensing Act, or another Board rule. (2) Formal Internship. The formal internship hours must be satisfied by one of the following types of formal internships: (A) The successful completion of an internship program accredited by the American Psychological Association (APA) or Canadian Psychological Association (CPA), or which is a member of the Association of Psychology Postdoctoral and Internship Centers (APPIC); or (B) The successful completion of an organized internship meeting all of the following criteria: PROPOSED RULES September 29, TexReg 5217

34 (i) It must constitute an organized training program which is designed to provide the intern with a planned, programmed sequence of training experiences. The primary focus and purpose of the program must be to assure breadth and quality of training. (ii) The internship agency must have a clearly designated staff psychologist who is responsible for the integrity and quality of the training program and who is actively licensed/certified by the licensing board of the jurisdiction in which the internship takes place and who is present at the training facility for a minimum of 20 hours a week. (iii) The internship agency must have two or more full-time licensed psychologists on the staff as primary supervisors. (iv) Internship supervision must be provided by a staff member of the internship agency or by an affiliate of that agency who carries clinical responsibility for the cases being supervised. (v) The internship must provide training in a range of assessment and intervention activities conducted directly with patients/clients. (vi) At least 25% of trainee's time must be in direct patient/client contact. (vii) The internship must include a minimum of two hours per week of regularly scheduled formal, face-to-face individual supervision. There must also be at least four additional hours per week in learning activities such as: case conferences involving a case in which the intern was actively involved; seminars dealing with psychology issues; co-therapy with a staff person including discussion; group supervision; additional individual supervision. (viii) Training must be post-clerkship, postpracticum and post-externship level. (ix) The internship agency must have a minimum of two full-time equivalent interns at the internship level of training during applicant's training period. (x) The internship agency must inform prospective interns about the goals and content of the internship, as well as the expectations for quantity and quality of trainee's work, including expected competencies; or (C) The successful completion of an organized internship program in a school district meeting the following criteria: (i) The internship experience must be provided at or near the end of the formal training period. (ii) The internship experience must require a minimum of 35 hours per week over a period of one academic year, or a minimum of 20 hours per week over a period of two consecutive academic years. (iii) The internship experience must be consistent with a written plan and must meet the specific training objectives of the program. (iv) The internship experience must occur in a setting appropriate to the specific training objectives of the program. (v) At least 600 clock hours of the internship experience must occur in a school setting and must provide a balanced exposure to regular and special educational programs. (vi) The internship experience must occur under conditions of appropriate supervision. Field-based internship supervisors, for the purpose of the internship that takes place in a school setting, must be licensed as a psychologist and, if a separate credential is required to practice school psychology, must have a valid credential to provide psychology in the public schools. The portion of the internship which appropriately may take place in a non-school setting must be supervised by a psychologist. (vii) Field-based internship supervisors must be responsible for no more than two interns at any given time. University internship supervisors shall be responsible for no more than twelve interns at any given time. (viii) Field-based internship supervisors must provide at least two hours per week of direct supervision for each intern. University internship supervisors must maintain an ongoing relationship with field-based internship supervisors and shall provide at least one field-based contact per semester with each intern. (ix) The internship site shall inform interns concerning the period of the internship and the training objectives of the program. (x) The internship experience must be systematically evaluated in a manner consistent with the specific training objectives of the program. (xi) The internship experience must be conducted in a manner consistent with the current legal-ethical standards of the profession. (xii) The internship agency must have a minimum of two full-time equivalent interns at the internship level during the applicant's training period. (xiii) The internship agency must have the availability of at least two full-time equivalent psychologists as primary supervisors, at least one of whom is employed full time at the agency and is a school psychologist. (3) Industrial/Organizational Requirements. Individuals enrolled in an Industrial/Organizational doctoral degree program are exempt from the formal internship requirement but must complete 3,500 hours of supervised experience meeting the requirements of paragraph (1) of this subsection, at least 1,750 of which must have been received as a provisional trainee or provisionally licensed psychologist. Individuals who do not undergo a formal internship pursuant to this paragraph should note that Board rules prohibit a psychologist from practicing in an area in which they do not have sufficient training and experience, of which a formal internship is considered to be an integral requirement. (4) Licensure Following Retraining. (A) In order to qualify for licensure after undergoing retraining, an applicant must demonstrate the following: (i) conferral of a doctoral degree in psychology from a regionally accredited institution of higher education prior to undergoing retraining; (ii) completion of a formal, accredited post-doctoral retraining program in psychology which included at least 1,750 hours in a formal internship; (iii) retraining within the two year period preceding the date of application for licensure under this rule, or continuous employment in the delivery of psychological services in an exempt setting as described in of the Psychologists' Licensing Act since receiving their doctoral degree; and (iv) upon completion of the retraining program, at least 1,750 hours of supervised experience after obtaining either provisional trainee status or provisional licensure. 42 TexReg 5218 September 29, 2017 Texas Register

35 (B) An applicant meeting the requirements of this subsection is considered to have met the requirements for supervised experience under this rule. (e) Effective Date of Change Regarding Supervised Experience. Subsection (d), along with all of its subparts, shall take effect, supersede, and take the place of subsection (c) on September 1, The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule , Requirements for Licensed Outof-State Applicants. The proposed amendment is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. The proposed change also serves to clarify some language in the rule. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Requirements for Licensed Out-of-State Applicants. (a) An applicant for licensure as a psychologist who provides documentation that the applicant is actively licensed and in good standing as a psychologist in another jurisdiction must meet the following requirements: (1) The applicant must be actively licensed as a provisionally licensed psychologist and [have already obtained provisional licensure and must document that the applicant is a provisionally licensed psychologist] in good standing. (2) [Supervised experience.] The applicant must affirm that the applicant has received 3,000 hours of experience supervised by a psychologist licensed in the state where the supervision took place. At least half of these hours (a minimum of 1,500 hours) must have been completed after the doctoral degree was conferred or completed. The formal internship year may be met either before or after the doctoral degree was conferred or completed, as indicated on the official transcript. (3) The applicant must document that the applicant has not received any disciplinary action (apart from disciplinary action related to Continuing Education) by any other jurisdiction and that there is no pending action or complaint against the applicant in any other jurisdiction. [(4) The applicant must take and pass the Board's Oral Examination, unless the applicant qualifies for a waiver from the examination.] (b) An applicant meeting the requirements of subsection (a) of this section is considered to have met the requirements for licensure in Board rule of this title (relating to Licensed Psychologist). The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, PROPOSED RULES September 29, TexReg 5219

36 TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule , Written Examination. The proposed amendment is necessary to ensure conformity in the Board's rules and provide reasonable assurance of competency from licensed psychological associates engaged in independent practice. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined that, for the first five-year period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined that, for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy and thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Written Examinations. (a) Jurisprudence Examination. All applicants for licensure by the Board are required to pass the Jurisprudence Examination prior to licensure. (b) Examination in School Psychology. Applicants for licensure as a specialist in school psychology must take the National School Psychology Examination administered by the Educational Testing Service and obtain at least the current cut-off score for the National Certified School Psychologist before applying for the Licensed Specialist in School Psychology. (c) Examination for Professional Practice in Psychology. All applicants for licensure as a psychological associate, provisional licensure as a psychologist, or licensure as a psychologist are required to pass the Examination for Professional Practice in Psychology (EPPP) prior to the Board granting licenses. (d) Applicants Having Previously Taken the EPPP. [Professional Examination.] An applicant for licensure who has taken the EPPP either in the past or in another jurisdiction will not be required to retake the exam provided that: (1) the applicant's score satisfies [satisfied] the Board's current minimum acceptable score for licensure; and (2) the applicant can demonstrate that he/she has remained professionally involved in psychology; i.e., at least half-time professional employment and/or academic enrollment in a regionally accredited educational institution. [(e) Doctoral Applicants Taking Exam at Master's Level. An applicant for provisional licensure as a psychologist who has taken the EPPP at the master's level will not be required to retake the exam provided that:] [(1) the applicant's score satisfied the Board's current minimum acceptable score for doctoral level applicants; and ] [(2) the applicant can demonstrate that he or she has remained academically and/or professionally involved in psychology. ] (e) [(f)] Cutoff Scores for the EPPP. The minimum acceptable score for the EPPP is seventy percent (70%) of questions scored [for psychologist licensure applicants and fifty-five percent (55%) of questions scored for psychological associate licensure applicants] on the pencil and paper version of the test. For computer-delivered EPPP examinations, the cutoff scaled scores is 500. [are 500 and 350 respectively. Applicants for licensure as a psychological associate must receive a minimum score of eighty percent (80%) of questions scored on the Board's Jurisprudence Examination. All other applications for licensure must receive a minimum score of ninety percent (90%) of questions scored on the Board's Jurisprudence Examination. The exam score of applicants for licensure who have already taken the EPPP must satisfy the requirements of the Board as of the date of application to the Board.] (f) Cutoff Scores for the Jurisprudence Examination. The minimum acceptable score for the jurisprudence examination for all licensure applicants is ninety percent (90%). 42 TexReg 5220 September 29, 2017 Texas Register

37 The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes repeal of Board rule , Oral Examination. The proposed repeal is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed repeal is in effect, there will be no additional estimated cost or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. However, it is estimated there will be a loss of annual revenue in an amount of $15,000 and a corresponding reduction in costs of $15,000 per year. Additionally, Mr. Spinks has determined that enforcing or administering the rule as repealed, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed repeal is in effect, the public benefit anticipated as a result of enforcing the rule will be to help improve the agency's licensure process without imposing unwieldy or impractical regulatory requirements. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed repeal is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed repeal will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed repeal will not affect a local economy and thus a local employment impact statement is not required. Comments on the proposed repeal may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses; if the proposed repeal is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The repeal is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Oral Examination. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule , Temporary License for Persons Licensed in Other States. The proposed amendment is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. PROPOSED RULES September 29, TexReg 5221

38 SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Temporary License for Persons Licensed in Other States. (a) A temporary license may be issued to an applicant seeking to practice in this state for a limited time and purpose, such as serving as an expert witness in court or assisting a patient with transitioning to a mental health practitioner in Texas. To be eligible for temporary licensure, an applicant must: (1) submit a completed application for temporary licensure, setting forth a brief description of the type of psychological services to be provided; (2) pay the application fee; (3) submit proof that the applicant is currently licensed, certified, or registered as a psychologist or psychological associate by another jurisdiction having requirements substantially equal to those prescribed by the Psychologists' Licensing Act; (4) submit documentation directly from the jurisdiction in which the applicant is licensed indicating that the applicant is in good standing with that jurisdiction; (5) be supervised (sponsorship) by a psychologist licensed in this state; and (6) provide documentation that the applicant has passed the Examination for Professional Practice of Psychology at the Texas cutoff for the type of temporary license sought. (b) Substantial equivalency of another jurisdiction's requirements may be documented by the applicant providing a copy of the other jurisdiction's regulations with the pertinent sections highlighted to indicate training and exam requirements for a particular type of license. The material is then reviewed for substantial equivalency by the Board. An applicant need not demonstrate substantial equivalency if the applicant is licensed in a jurisdiction with which the Board has reciprocity.[, nor must an applicant demonstrate the oral examination requirement of substantial equivalency if the applicant can show that he or she would be eligible for a waiver from the Board's oral examination pursuant to Board rule (c) of this title (relating to Oral Examination).] (c) Applicants for temporary licensure who hold a current Certificate of Professional Qualification in Psychology, status as a National Health Service Provider, or designation as a specialist from the American Board of Professional Psychology may have documentation from the credentialing entity sent directly to the Board as compliance with and in lieu of subsection (a)(3) and (6) of this section. (d) For a psychologist practicing under a temporary license issued pursuant to this rule, the supervision required by subsection (a)(5) of this section shall consist of sponsorship by a psychologist licensed in this state. The sponsoring psychologist must be available for consultation with the temporary licensee, but otherwise has no supervisory responsibility for the temporary license holder or the services provided under the temporary license. (e) Applicants meeting the requirements for temporary licensure shall be granted a temporary license authorizing the delivery of psychological services for no more than thirty days. Upon utilization of the full thirty days, or the expiration of one year from the date of licensure, whichever occurs first, the temporary license shall expire. (f) A temporary licensee must submit written notification to the Board of the dates he or she intends to deliver psychological services in this state, at least 24 hours prior to the delivery of those services. Psychological services may not be provided in this state under a temporary license on any date not approved by the Board. (g) Temporary licensees are subject to all applicable laws governing the practice of psychology in this state, including the Psychologists' Licensing Act and Board rules. (h) An applicant for permanent licensure in this state is not eligible for temporary licensure. Upon receipt of an application for permanent licensure by a temporary license holder, any temporary license held by an applicant shall expire without further action or notice by the Board. (i) A temporary license holder may not apply for another temporary license until the expiration of one year from the date of issuance of their last temporary license, regardless of whether that license is active or expired. (j) A temporary license holder delivering psychological services while situated in this state, must display a copy of his or her temporary license, unless otherwise prohibited or it would be impractical to do so. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD TexReg 5222 September 29, 2017 Texas Register

39 Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes the repeal of rule , Reciprocity Agreements with Other Jurisdictions. The proposed repeal is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. The proposed repeal is also necessary to reflect the fact that of the Psychologists Licensing Act does not limit the Board's authority to enter into reciprocity agreements for psychologists licensure only. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed repeal is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule. Additionally, Mr. Spinks has determined that enforcing or administering the rule, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed repeal is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed repeal is in effect, the proposed repeal will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed repeal will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed repeal will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed repeal may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Section (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The repeal is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Reciprocity Agreements with Other Jurisdictions. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes a new Board rule , Reciprocity Agreements with Other Jurisdictions. The proposed new rule is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. The proposed new rule is also necessary to reflect the fact that of the Psychologists Licensing Act does not limit the Board's authority to enter into reciprocity agreements for psychologists licensure only. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed new rule is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule. Additionally, Mr. Spinks has determined that enforcing or administering the rule, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the new rule is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the new rule is in effect, the new rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The new rule will not have an adverse effect on small or micro-businesses. PROPOSED RULES September 29, TexReg 5223

40 LOCAL EMPLOYMENT IMPACT STATEMENT. The new rule will not affect a local economy, thus a local employment impact statement is not required. Comments on the new rule may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the new rule will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The new rule is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Reciprocity Agreements with Other Jurisdictions. The Board may enter into reciprocal licensing agreements with other jurisdictions pursuant to of the Psychologists' Licensing Act (the Act). In determining whether the requirements for licensure, certification, or registration in other jurisdictions are substantially equal to those prescribed by the Act, for the granting of licensure by reciprocity, the Board will consider the following: (1) whether the jurisdiction's qualifications for licensure are substantially equal to the requirements for a comparable license under the Psychologists' Licensing Act; (2) whether a jurisdiction will license an applicant who would be ineligible for licensure in Texas due to a criminal history; (3) whether the jurisdiction's cut-off score on a mutually required examination meets or exceeds the Texas cut-off score; and (4) whether the jurisdiction's supervised experience requirements for a particular license provide a measure of public protection, which at a minimum is substantially equal to the supervised experience requirements for a comparable license under the Psychologists' Licensing Act. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 469. COMPLAINTS AND ENFORCEMENT 22 TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule 469.7, Persons with Criminal Backgrounds. The proposed amendment is necessary due to state and federal laws prohibiting agency access to the criminal history information of individuals not presently licensed or with a pending application before the agency. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, TX 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the 42 TexReg 5224 September 29, 2017 Texas Register

41 state will be impacted by the various proposed methods. See Section (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Persons with Criminal Backgrounds. (a) The Board may revoke or suspend an existing valid license, disqualify a person from receiving or renewing a license, or deny to a person the opportunity to be examined for a license due to a felony or misdemeanor conviction, or a plea of guilty or nolo contendere followed by deferred adjudication, if the offense directly relates to the performance of the activities of a licensee and the conviction directly affects such person's present fitness to perform as a licensee of this Board. (b) Criminal History Evaluation Letters. (1) In compliance with Chapter 53 of the Texas Occupations Code, the Board will provide criminal history evaluation letters. (2) A person may request the Board to provide a criminal history evaluation letter if the person is planning to enroll or is enrolled in an educational program that prepares the person for a license with this Board and the person has reason to believe that the person is ineligible for licensure due to a conviction or deferred adjudication for a felony or misdemeanor offense. (3) The requestor must submit to the Board a completed Board application form requesting an evaluation letter, the required fee, and certified copies of court documentation about all convictions and resolution to the Board. (4) Requestors must obtain a fingerprint criminal history record check after they have submitted an application for a criminal history evaluation letter. [Before submitting the application the requestor must obtain a fingerprint criminal history record check and have it mailed directly to the Board.] (5) The Board has the authority to investigate a request for a criminal history evaluation letter and may require that the requestor provide additional information about the convictions and other dispositions if requested by the Board. (6) The Board will provide a written response to the requestor within 90 days of the Board's receipt of the request, unless a more extensive investigation is required or the requestor fails to comply with a Board investigation. The Board's evaluation letter will state the Board's determination on each ground for potential ineligibility presented by the requestor. (7) In the absence of new evidence known to but not disclosed by the requestor or not reasonably available to the Board at the time the letter is issued, the Board's ruling on the request determines the requestor's eligibility only with respect to the grounds for potential ineligibility set out in the letter. (c) The Board shall revoke an existing valid license, disqualify a person from receiving or renewing a license, or deny to a person the opportunity to be examined for a license due to a felony conviction under Section 35A.02 of the Texas Penal Code, concerning Medicaid fraud. (d) No person currently serving a sentence in a penal institution or correctional facility following a felony conviction is eligible to obtain or renew his/her license. (e) In determining whether a criminal conviction directly relates to the performance of a licensee, the Board shall consider the factors listed in the Texas Occupations Code, Chapter 53. (f) Those crimes which the Board considers as directly related to the performance of a licensee include but are not limited to: (1) a misdemeanor and/or felony offense under the following titles of the Texas Penal Code: (A) Title 5, pertaining to offenses against the person (for example, homicide, kidnapping, sexual offenses, and assaultive offenses); (B) Title 7, pertaining to offenses against property (for example, arson, robbery, burglary, theft, fraud, money laundering, and insurance fraud); (C) Title 8, pertaining to offenses against public administration (for example, bribery, perjury, and obstruction of justice); (D) Title 9, pertaining to offenses against public order and decency (for example, disorderly conduct and public indecency); (E) Title 10, pertaining to offenses against public health and safety (for example, weapons offenses, gambling, and intoxication offenses); and (F) Title 4, pertaining to the offenses of attempting or conspiring to commit the offenses listed in subparagraphs (A) - (F) of this paragraph. (2) any criminal violation of the Psychologists' Licensing Act or other statutes regulating or pertaining to the profession of psychology; (3) any criminal violation of statutes regulating other professions in the healing arts, which includes, but is not limited to medicine and nursing; (4) any crime involving moral turpitude; (5) any offense involving the failure to report abuse; (6) any state or federal drug offense, including violations of the Controlled Substances and Dangerous Drugs Act; and (7) any other misdemeanor or felony that the Board may consider in order to promote the public safety and welfare, as well as the intent of the Act and these rules. (g) In determining whether a criminal conviction directly affects present fitness of the licensee, the Board shall consider the factors listed in Texas Occupations Code, (h) It shall be the responsibility of the licensee to secure and provide to the Board the recommendations of the prosecution, law enforcement, and correctional authorities regarding all criminal offenses. (i) The licensee shall also furnish proof in such form as may be required by the Board that he/she maintained a record of steady employment and has supported his/her dependents and has otherwise maintained a record of good conduct and has paid all outstanding court costs, supervision fees, fines and restitution as may have been ordered in all criminal cases in which he/she has been convicted. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. PROPOSED RULES September 29, TexReg 5225

42 Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 473. FEES 22 TAC The Texas State Board of Examiners of Psychologists proposes an amendment to rule 473.2, Examination Fees (Non-Refundable). The proposed amendment is necessary because the agency no longer has the resources needed to administer the oral examination. Without these changes, doctoral level applicants otherwise qualified for independent practice would be unable to achieve licensure as a psychologist. FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule as amended. Additionally, Mr. Spinks has determined that enforcing or administering the rule as amended does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed amendment is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed amendment will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed amendment will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed amendment may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, Texas 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses, if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Section (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The amendment is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Examination Fees (Non-Refundable). (a) Generally Applicable Examination Fees: (1) Examination for the Professional Practice of Psychology--$600 (2) Jurisprudence Examination--$200. This fee shall increase to $234 following implementation of the online version of the Jurisprudence Examination, with $200 being attributable to the Board and $34 being attributable to the third-party vendor administering the examination. [(3) Oral Examination--$320] (b) The [fee for the Oral Examination, as well as that] portion of the Jurisprudence Examination fee attributable to the Board, shall be waived for the following individuals: (1) military service members and military veterans, as those terms are defined by Chapter 55, Occupations Code, whose military service, training, or education substantially meets all of the requirements for licensure; and (2) military service members, military veterans, and military spouses, as those terms are defined by Chapter 55, Occupations Code, who hold a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements of this state. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The Texas State Board of Examiners of Psychologists proposes the repeal to Board rule 473.7, Penalties. The proposed repeal is necessary following recent changes in how the Board handles complaints involving professional development hours. Additionally, the repeal also serves to eliminate redundant language in the agency's regulations. 42 TexReg 5226 September 29, 2017 Texas Register

43 FISCAL NOTE. Darrel D. Spinks, Executive Director of the Board, has determined that for the first five-year period the proposed repeal is in effect, there will be no additional estimated cost, reduction in costs, or loss or increase in revenue to the state or local governments as a result of enforcing or administering the rule. Additionally, Mr. Spinks has determined that enforcing or administering the rule, does not have foreseeable implications relating to the costs or revenues of state or local government. PUBLIC BENEFIT. Mr. Spinks has determined for the first fiveyear period the proposed repeal is in effect, the public benefit anticipated as a result of enforcing the rule will be to help the Board protect the public. PROBABLE ECONOMIC COSTS. Mr. Spinks has determined for the first five-year period the proposed repeal is in effect, the amended rule will not carry an economic cost to small businesses or local economies. SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALY- SIS. The proposed repeal will not have an adverse effect on small or micro-businesses. LOCAL EMPLOYMENT IMPACT STATEMENT. The proposed repeal will not affect a local economy, thus a local employment impact statement is not required. Comments on the proposed repeal may be submitted to Brenda Skiff, Public Information Officer, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Ste , Austin, Texas 78701, within 30 days of publication of this proposal in the Texas Register. Comments may also be submitted via fax to (512) , or via to Open.Records@tsbep.texas.gov. The Board specifically invites comments from the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small businesses; if the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted, finally describe how the health, safety, environmental and economic welfare of the state will be impacted by the various proposed methods. See Section (c) and (c-1) of the Texas Government Code. STATUTORY AUTHORITY. The repeal is proposed under Texas Occupations Code, Title 3, Subtitle I, Chapter 501, which provides the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. No other code, articles or statutes are affected by this section Penalties. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 15, TRD Darrel D. Spinks Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TITLE 31. NATURAL RESOURCES AND CONSERVATION PART 2. TEXAS PARKS AND WILDLIFE DEPARTMENT CHAPTER 51. EXECUTIVE SUBCHAPTER G. NONPROFIT ORGANIZATIONS 31 TAC The Texas Parks and Wildlife Department proposes amendments to , concerning Nonprofit Organizations. The Parks and Wildlife Code authorizes the department to work with nonprofit organizations to carry out the mission of the department. Parks and Wildlife Code, , requires the Parks and Wildlife Commission (the commission) to adopt rules to "establish the best practices for nonprofit partners." Parks and Wildlife Code, , requires the commission to adopt rules regarding "state standards and safeguards for accounting for state assets held by the nonprofit partner." Parks and Wildlife Code, , authorizes the commission to designate an official nonprofit partner dedicated to meeting department goals. Parks and Wildlife Code, (f), requires the commission to establish by rule guidelines for the official nonprofit partner's solicitation and acceptance of sponsorships and the best practices of the official nonprofit partner. Similarly, Government Code, Chapter 2255, requires a state agency to adopt rules regarding the relationship between donors and the agency, including the agency's employees if the agency is authorized to accept donations or if "a private organization exists that is designed to further the purposes and duties of the agency." Tex. Gov't Code, (a). Nonprofit partners serve an important function for the department. These organizations provide valuable financial and in-kind support to the department. The current rules, promulgated in 2007, categorize each of the department's nonprofit partners as a general nonprofit partner (GNP), a closely related nonprofit partner (CRNP), or the official nonprofit partner (ONP). A general nonprofit partner is a nonprofit partner that is not a closely-related nonprofit partner or the official nonprofit partner and has an agreement of any kind with the department, has a representative serving on a department or commission advisory committee, or otherwise has a relationship with the department. A closely related nonprofit partner is a nonprofit partner whose primary purpose is to benefit a specific department property, facility or program. Closely related nonprofit partners include "friends groups" (e.g., Friends of Cedar Hill, Friends of San Angelo State Park). The official nonprofit partner is the entity designated as the official nonprofit partner of the department by the commission in accordance with Texas PROPOSED RULES September 29, TexReg 5227

44 Parks and Wildlife Code, In 2001, the commission designated the Texas Parks and Wildlife Foundation as the department's official nonprofit partner. Because the ONP and CRNPs enjoy a closer relationship with the department, the rules impose additional requirements on those organizations. The term "nonprofit partner" refers collectively to GNPs, CRNPs and the ONP. The department has determined that in practice, the category of GNP is superfluous and therefore unnecessary. Listing GNP's produces little useful information to the department and is problematic in light of the time and expense incurred by the department with respect to recordkeeping and reporting functions. Accordingly, the proposed amendments would eliminate the category of GNP, all provisions applicable to GNPs, and all references to GNPs. Additionally, in the interest of clarity the proposed amendments would eliminate individual references to the ONP and CRNPs and instead refer to those entities generically as Nonprofit Partners (NPs), where appropriate. The proposed amendment to , concerning Definitions, would eliminate the definition for General nonprofit partner (GNP) and make nonsubstantive conforming changes as necessary. The proposed amendment to , concerning Criteria and General Requirements, would remove provisions relating to the designation and listing of General Nonprofit Partners and make nonsubstantive conforming changes as necessary. The proposed amendment to , concerning Best Practices (General), would eliminate provisions pertaining to GNPs and make nonsubstantive conforming changes as necessary. The proposed amendment to , concerning Best Practices (Officers and Directors), would remove individual references to the ONP and CRNP and replace them with a generic reference to Nonprofit Partners (NPs). The proposed amendment also would make nonsubstantive conforming changes as necessary. The proposed amendment to , concerning Best Practices (Fundraising), would make nonsubstantive edits to clarify existing best practices for nonprofit partner fundraising. The proposed amendment to , concerning Best Practices (Sponsorship), would require NPs to comply with non-regulatory written guidance from the department in addition to the requirements of the rules. The department has determined that the rules cannot address every possible scenario in detail; thus, the department intends to create supporting guidance to do so. The proposed amendment also would allow for written approval of sponsorship recognition to be provided by department employees other than regional directors, which is intended to accommodate organizational differences within the department, since the position of regional director does not exist in every division within the agency. The proposed amendment also would make nonsubstantive conforming edits as necessary. The proposed amendment to , concerning Department Procedures, would eliminate provisions related to General Nonprofit Partners and add a proviso to subsection (b) that the department will not obligate NP funds except by written, signed agreement. The proposed amendment would also remove the word "hold" from subsection (b) because the department can obligate but not hold such funds. Kevin Good, Special Assistant to the Director of State Parks, has determined that for each of the first five years that the rules as proposed are in effect, there will be no fiscal implications to state or local governments as a result of administering or enforcing the proposed amendments. Mr. Good also has determined that for each of the first five years that the rules as proposed are in effect, the public benefit anticipated as a result of enforcing or administering the proposed rules will be the elimination of unnecessary regulations and more clear language governing the processes and entities administered under the provisions of Chapter 51, Subchapter G. There will be no adverse economic impacts to persons required to comply with the rules as proposed. Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect on small businesses, micro-businesses, and rural communities. As required by Government Code, (g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule's potential adverse economic impact. Those guidelines state that an agency need only consider a proposed rule's "direct adverse economic impacts" to determine if any further analysis is required. For that purpose, commission considers "direct economic impact" to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services. The department has determined that because the rules apply only to entities that enter into voluntary agreements to assist the department (nonprofit partners), there will be no adverse economic effects on small businesses, microbusinesses, or rural communities. Accordingly, the department has not prepared a regulatory flexibility analysis under Government Code, Chapter The department has not drafted a local employment impact statement under the Administrative Procedures Act, , as the agency has determined that the rules as proposed will not impact local economies. The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rules. The department has determined that because the rules as proposed do not impose a cost on regulated persons, it is not necessary to repeal or amend any existing rule. In compliance with the requirements of Government Code, , the department has prepared the following Government Growth Impact Statement (GGIS). The rules as proposed, if adopted, will neither create nor eliminate a government program; not result in an increase or decrease in the number of full-time equivalent employee needs; not result in a need for additional General Revenue funding; not affect the amount of any fee; not create any new regulations; not expand, limit, or repeal an existing regulation; neither increase nor decrease the number of individuals subject to regulation; and will have neither a negative nor positive impact on the state's economy. Comments on the proposed rule may be submitted to Kevin Good, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744; (512) ( kevin.good@tpwd.texas.gov) or on the department's website at 42 TexReg 5228 September 29, 2017 Texas Register

45 The rules are proposed under the authority of Parks and Wildlife Code, , , , and Government Code, The proposed rules affect Parks and Wildlife Code, , , , and Government Code, Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) - (5) (No change.) [(6) General nonprofit partner (GNP)--A nonprofit partner that is neither a closely-related nonprofit partner nor the official nonprofit partner.] (6) [(7)] Gift--A donation of money or property other than volunteer time for which there is no consideration or expectation of consideration in return. (7) [(8)] Improvement--A permanent addition to real property which is in the nature of a fixture. (8) [(9)] IRS 990--United States Internal Revenue Service Form 990, Return of Organization Exempt from Tax. (9) [(10)] In-kind donation--a non-cash donation, such as services, personal property or real property. (10) [(11)] Local sponsorship--a campaign to raise funds in support of a department program that is intended to benefit a single department facility. (11) [(12)] Nonprofit entity--an incorporated entity that is exempt from federal taxation under 501(c) of the Internal Revenue Code of 1986 (Title 26, United States Code). (12) [(13)] Nonprofit partner (NP)--A nonprofit entity as defined by Parks and Wildlife Code, (1) that has been designated by the commission as a nonprofit partner of the department pursuant to Texas Parks and Wildlife Code, "Nonprofit partners" include [general nonprofit partners,] closely-related nonprofit partners and the official nonprofit partner. (13) [(14)] Official nonprofit partner (ONP)--An entity designated as the official nonprofit partner of the department by the commission in accordance with Parks and Wildlife Code, (14) [(15)] Program--An activity, event or project undertaken by a nonprofit partner for the benefit of the department. (15) [(16)] Regional director--a department manager who reports directly to a department division director and is responsible for the management of the portion of a division covering a defined geographic area of the state. (16) [(17)] Sponsor--A person, corporation, company, or other organization that provides funds in support of a specific department project, program or event. (17) [(18)] Sponsorship--The payment of money, transfer of property, or performance of services by a person, corporation, company, or other organization with respect to which there is no arrangement or expectation of any substantial return benefit other than recognition or a non-substantial benefit. (18) [(19)] Statewide sponsorship--a sponsorship or campaign to raise funds in support of a department program that is intended to benefit more than a single department facility or is intended to reach the majority of the population of the state Criteria and General Requirements. [(a)] All NPs must meet the requirements and criteria of this section [subsection]. (1) In order to be considered a NP of the department, the nonprofit organization must be designated by the commission voting in a public meeting. The commission will designate an ONP, as necessary. [(2) In order to maintain a current list of all nonprofit entities associated with the department, the commission will seek to designate as a GNP all non-profit partners, other than CRNPs and the ONP, that have an agreement of any kind with the department, have a representative serving on a department or commission advisory committee, or otherwise have a relationship with the department.] (2) [(3)] The commission may remove a nonprofit partner from the NP list. (3) [(4)] All NPs must carry out the fiscal, business, legal, and tax responsibilities of a nonprofit entity as required by state and federal law. (4) [(5)] [All] NPs must have obtained from the Internal Revenue Service a valid determination letter that it is an organization described in 501(c) of the Internal Revenue Code of 1986 (Title 26, United States Code), as amended. Such a letter must be obtained no later than 180 days after being designated by the commission as a NP. (5) [(6)] A [All] NPs' work with the department must be consistent with the department's mission and goals. (6) [(7)] Upon dissolution, a NP may be required to dispose of funds raised for the benefit of the department in a way that will benefit the department, in accordance with applicable law. [(b)] [In addition to the requirements and criteria stated in subsection (a) of this section, CRNPs and the ONP must comply with the requirements and criteria of this subsection.] (7) [(1)] CRNPs and the ONP must be incorporated in accordance with the Texas Nonprofit Corporation Act (Business Organizations Code, Chapter 22). (8) [(2)] Within 60 days of its designation as a nonprofit partner, each NP [CRNP and the ONP] must enter into an agreement with the department detailing the responsibilities and duties of the nonprofit partner and the department. Each NP [CRNP and the ONP] must maintain such an agreement with the department for as long as the entity is designated as a NP [CRNP or the ONP]. The agreement may also address the obligations of a NP [CRNP or the ONP] upon termination of the relationship [with] between the NP [CRNP or the ONP] and the department, including termination resulting from the dissolution of the NP [CRNP or the ONP]. (9) [(3)] NPs [CRNPs and the ONP] must promptly notify the department of any change in its legal or tax-exempt status Best Practices (General). (a) [All] NPs must comply with the general best practices prescribed in this subsection. (1) - (5) (No change.) [(b)] [In addition to subsection (a) of this section, NP must comply with the general best practices prescribed in this subsection.] (6) [(1)] NPs [CRNPs and the ONP] shall conduct business in a way that will ensure public access and transparency. As used in this subsection, "transparency" shall mean that the CRNP's and ONP's business practices and internal processes are conducted in a way that is open, clear, measurable, and verifiable. PROPOSED RULES September 29, TexReg 5229

46 (7) [(2)] NPs [CRNPs and the ONP] shall file with the department and make available to the public an annual report that includes a list of the primary activities undertaken during the previous year, a summary of significant achievements and challenges over the previous year, and other information requested by the department. (8) [(3)] Regardless of whether a NP [CRNP or the ONP] is required to file an IRS 990 with the Internal Revenue Service, each NP [CRNP and the ONP] must complete and file an IRS 990 with the department each year, regardless of income[, and must make the IRS 990 available to the general public, upon request]. (9) [(4)] NPs [CRNPs and the ONP] shall file with the department its articles of incorporation, by-laws, and most recent financial statements, and any updates to these documents[, and shall make these documents available to the public,] upon request of the department. (10) [(5)] NPs [CRNPs and the ONP] shall not engage in activities that would require it or a person acting on its behalf to register as a lobbyist under Texas law, Texas Government Code, Chapter 305. However, this subsection is not intended to restrict NPs [CRNPs and the ONP] from providing information to the legislature or to other elected or appointed officials. (11) [(6)] NPs [CRNPs and the ONP] shall not donate funds to a political campaign or endorse a political candidate. (12) [(7)] NPs [CRNPs and the ONP] shall notify the department of all meetings and allow a department representative to attend all meetings, including, but not limited to, meetings of its general membership, managing board, and committees. Meeting notices must be provided to the department sufficiently in advance of the meeting so that the department representative has ample opportunity to attend. Such notice may be provided by letter, , or telephone. A CRNP should also notify other CRNPs associated with the property, facility, or program of all meetings and allow a representative to attend. (b) [(c)] In addition to subsection (a) [subsections (a) and (b)] of this section, the ONP must comply with the general best practices prescribed in this subsection. (1) The ONP must have an annual audit by an independent accounting firm and shall make the results of that audit available to the department. (2) The ONP must maintain an adequate directors and officers liability insurance policy Best Practices (Officers and Directors). (a) (No change.) (b) In addition to subsection (a) of this section, CRNPs and the ONP must comply with the best practices regarding officers and directors as prescribed in this section. (1) NPs [CRNPs and the ONP] must adopt and maintain a conflict of interest policy, which includes safeguards to prevent board members or their families from benefiting financially from any business decision of the CRNP or the ONP. (2) NPs [CRNPs and the ONP] shall ensure that any compensation paid to executives or managers is reasonable. (3) NPs [CRNPs and the ONP] shall not elect or designate or otherwise select a department employee as an officer or director, other than as a non-voting uncompensated representative of the department. (4) NPs [CRNPs and the ONP] shall hold regular meetings of its Board of Directors. (5) NPs [CRNPs and the ONP] shall ensure that each board member and/or director is fully informed of activities and shall provide the following information to new board members: (A) articles of incorporation and by-laws; (B) most recent financial statements; (C) department rules on NPs and sponsorship; and (D) current agreements with the department Best Practices (Fundraising). (a) All NPs must comply with the requirements of this subsection regarding fundraising. (1) - (3) (No change.) (4) Funds accepted by a NP [on behalf of or] for the benefit of the department are to be managed as a reasonably prudent person would manage funds if acting on his or her own behalf and such funds are to be accounted for according to Generally Accepted Accounting Principles (GAAP). [(b)] [In addition to subsection (a) of this section, CRNPs must comply with the provisions of this subsection.] (5) [(1)] All projects undertaken for the department by a CRNP must be related to and supportive of the facility, property, or program with which a [the] CRNP is associated or must further the CRNP's mission related to the facility, property or program. (6) [(2)] All donations to a [the] CRNP must benefit the facility, property, or program with which the CRNP is associated or must further the CRNPs mission related to the facility, property, or program. (7) [(3)] For purposes of this subsection, a donation for the purpose of defraying the CRNP's operating costs furthers the CRNP's mission related to the facility, property, or program. (8) [(c)] NPs [In addition to subsections (a) and (b) of this section, CRNPs and the ONP] shall adopt [financial] procedures that address [govern] acceptance and granting of [and access to] funds raised to [for the] benefit projects and/or programs of the department. (b) [(d)] Nothing in this subchapter shall limit the ability of a NP to make an unrestricted cash donation to the department. Such a donation may be for a specific purpose or program. (c) [(e)] NPs[, CRNPs and the ONP] may work together towards a common fundraising goal for the benefit of the department, consistent with the requirements of this subchapter Best Practices (Sponsorship). (a) NPs may solicit and accept sponsorships for department programs, so long as the NP complies with the provisions of this subsection and other written guidance that be provided by the department. (1) All sponsorships of department programs and the level of sponsorship recognition provided by the department must have prior written approval of the department as set forth in this paragraph. (A) (No change.) (B) A local sponsorship and the associated sponsorship recognition must have prior written approval by the regional director or equivalent whose area of responsibility includes the facility, property or program to be supported by the local sponsorship. (b) (2) - (6) (No change.) (No change.) Department Procedures. 42 TexReg 5230 September 29, 2017 Texas Register

47 (a) The department will maintain and periodically update [a list of GNPs and] a [separate] list of CRNPs. This list will be made available to the public. (b) The department will not [hold or] obligate NP funds or property except by written agreement signed by the NP. (c) (No change.) (d) The department may develop model policies and procedures for adoption by [CRNPs or other] NPs. Where a NP [CRNP or the ONP] is required by these rules to adopt a policy or procedure, adoption of the model policy or procedure shall be deemed to comply with that requirement. (e) (No change.) The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Robert D. Sweeney, Jr. General Counsel Texas Parks and Wildlife Department Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 57. FISHERIES SUBCHAPTER O. COASTAL MANAGEMENT AREAS 31 TAC , The Texas Parks and Wildlife Department proposes new and , concerning Coastal Management Areas. The proposed new sections would constitute new Subchapter O in Chapter 57. The department has acquired or is in the process of acquiring several tracts of land along the Texas coast. The primary intent of the acquisitions is to conserve and protect open space coastal habitat for ecological benefit, but the department has also determined that these areas can provide public recreational enjoyment consistent with sound ecological management. Therefore, the department is creating a new class of wildlife management area to be called a Coastal Management Area (CMA). At least initially, the CMAs established under the proposed new rules will be limited to unsupervised primitive use activities; thus the proposed new rules create the first two CMAs, establish rules of conduct for public use of CMAs, and provide penalties for violations of the rules. Proposed new , concerning Applicability, would stipulate that the rules of the subchapter apply to all CMAs regardless of the presence or absence of boundary markers. Because at least initially these CMAs will not have full-time, on-site staff, it is necessary to make clear that the designation of a tract of land as a CMA imposes the rules of the subchapter on the tract of land even if the physical boundaries of the tract are not indicated by signage or fencing. The proposed new section would also identify those tracts of lands designated as CMAs. Follets Island CMA is on a barrier island between Christmas Bay and the Gulf of Mexico in Brazoria County. The Matagorda Peninsula CMA is on a barrier island between East Matagorda Bay and the Gulf of Mexico in Matagorda County. Proposed new , concerning Definitions, would set forth the meanings of specialized words and terms used in the subchapter in order to prevent confusion and promote compliance and enforcement. Proposed new paragraph (1) would define "airboat" as "a boat powered by a mechanical propulsion system that drives air, including, but not limited to a fan, propeller, or jet." The definition is necessary because the proposed rules would prohibit the use of an airboat on a CMA. Proposed new paragraph (2) would define "arms and firearms" as "any device from which shot, a projectile, arrow, or bolt is fired by the force of an explosion, compressed air, gas, or mechanical device, including, but not limited to, rifle, shotgun, handgun, air rifle, pellet gun, longbow, cross bow, sling shot, blow gun, or dart gun." The definition is necessary because the rules as proposed would prohibit the display or discharge of arms and firearms except by persons engaged in lawful hunting activities. Proposed new paragraph (3) would define "camping" as "the use of CMA lands for overnight accommodation, which includes sleeping, the storage of unattended personal possessions, or the use of a motor vehicle as a lodging." The definition is necessary inasmuch as the rules as proposed would place limitations on the frequency and duration of camping activities on CMAs. Proposed new paragraph (4) would define "Coastal Management Area (CMA)" as "a type of wildlife management area classified under the provisions of Parks and Wildlife Code, , for purposes of managing coastal habitats and resources." The provision is necessary in order to provide for the promulgation of regulations governing CMAs. Proposed new paragraph (5) would provide a definition of "designated road" as "a constructed roadway indicated as being open to the public by either signs posted to that effect or by current maps and leaflets distributed at the area. Roads closed to the public may additionally be identified by on-site signing, barricades at entrances, or informational literature made available to the public. Designated roads do not include county or state roads or highways." The definition is necessary because the rules as proposed regulate the use of motor vehicles and off-road vehicles on CMAs. Proposed new paragraph (6) would define "motor vehicle" as "as defined by Transportation Code, Chapter 541." The definition is necessary because the rules as proposed regulate the use of motor vehicles on CMAs. Proposed new paragraph (7) would define "off-road vehicle" as "an ATV, a utility vehicle, a vehicle that may not lawfully be operated on a public roadway, or any vehicle that is manufactured or adapted for off-road use." The definition is necessary because the rules as proposed regulate the use of off-road vehicles on CMAs. Proposed new , concerning Rules of Conduct, would prescribe specific provisions governing public behavior on CMAs. PROPOSED RULES September 29, TexReg 5231

48 Proposed new (a) would establish general provisions. Proposed new subsection (a)(1) would provide that the rules of conduct set forth in the proposed new subchapter would apply on all CMAs except by written permission of the department or executive director, which is necessary to provide the legal basis for enforcement of the rules. The department considers that it may be necessary in certain unknown circumstances to provide for exceptions to the rules; thus, the proposed new paragraph also would allow the department or the executive director to address such eventualities by providing exceptions to the rules in writing. Proposed new (a)(2) would provide an exemption from the rules for persons authorized by the department to conduct research on a CMA and department employees in performance of their duties. Proposed new (a)(3) would provide an offense for failing to obey regulations posted at the area or policies established by order of the executive director, failing to comply with instructions on permits or area leaflets, or refusing to follow directives given by departmental personnel in the discharge of official duties, all of which are necessary to ensure that the department is able to effectively manage visitation to CMAs. Proposed new (b) would set forth provisions governing abandoned and unattended property, making it an offense for any person to abandon a vehicle or other personal property, leave a vehicle, boat, barge, or other property unattended in such a manner as to create a hazardous or unsafe condition, or leave property unattended for longer than 24 consecutive hours. The department considers that CMAs are intended to provide both environmental and recreational benefits to the citizens of the state and that the abandonment of personal property at CMAs is inimical to those interests; therefore, the proposed rules would prohibit such abandonment. Proposed new (c) would prohibit the public consumption or display of an alcoholic beverage on CMAs. The department intends to allow the responsible consumption of alcohol on CMAs, provided there is no consumption or display of alcohol in a public place and such consumption does not disrupt the enjoyment of other park visitors. Proposed new (d) would prescribe provisions governing animals and pets on CMAs. The department considers that dogs are human companions and a traditional form of retrieving game birds, but are also capable of being disruptive or dangerous; therefore, the proposed rules make it an offense for any person to possess dogs in camp that are not confined or leashed, or to allow vicious or dangerous dogs to create a disturbance or hazard. Proposed new (e) would set forth provisions relating to arms and firearms. Because CMAs are intended to provide recreational opportunity to many different types of use and the areas will not be managed by on-site staff, the department has determined that it is prudent to stipulate that the display and discharge of arms and firearms be limited to the hunting and fishing activities set forth under the rules and Chapter 65, Subchapter H, which govern public hunting. Proposed new (f) would prescribe measures regarding camping. The department considers that in order to provide for equitable use by the public as well as to prevent the use of department lands as permanent or semi-permanent dwelling places, it is necessary to establish limits on camping on CMAs. Therefore, the proposed rules would make it is an offense for any person to camp for more than 14 consecutive days on a CMA where overnight camping is allowed, or for more than 21 days in any 30-day period, or to establish a camp and leave it unattended for a period of longer than 24 hours. Proposed new (g) would set forth restrictions on fires. The department considers that because CMAs are intended primarily to preserve coastal ecosystem habitats it is axiomatic that the collection or use of living vegetation as fuel is injurious to native vegetative communities and the ecological food webs that depend upon them and therefore should be prohibited. Similarly, unattended fires pose a danger to other CMA users. Therefore, the proposed rules would allow fires to be built, using either firewood brought by users or deadwood or driftwood acquired on-site; however, it would be an offense for any person to fell or cut any living vegetation for firewood or leave a fire unattended. Proposed new (h) would prohibit the use of fireworks on CMAs. As previously mentioned in this preamble, the department intends for CMAs to provide recreational benefits for many different types of users, primarily in the form of enjoyment of open space and natural resources. The department has determined that fireworks are not consistent with any of these uses, or with the overarching management objectives of CMAs. Proposed new (i) would provide for angling opportunity to be allowed under the provisions of Chapter 65, Subchapter N, which is the Statewide Recreational and Commercial Fishing Proclamation. The department believes that CMAs can provide significant high-quality angling opportunity to the public; therefore, the proposed rules would allow the angling opportunity provided for each location by the general fishing regulations of the department. Proposed new (j) would proscribe graffiti and vandalism, making it an offense for any person to write on, scratch, or otherwise deface natural features, signs, buildings, or other structures. Considering that the department's mission is to preserve and conserve the natural and cultural resources under its care, as well as to provide pleasant surroundings for the experience of CMA users, it is obvious that graffiti and vandalism should be prohibited on CMAs. Proposed new (k) would establish provisions governing hunting on CMAs. CMAs will not have on-site permanent staff to conduct hunts and are intended for multiple uses, including hunting, to the extent consistent with public safety. Accordingly, the department has determined that the hunting of migratory game birds (doves, ducks, geese, etc.) under the regulations of the department's public hunting program (which require the purchase of an Annual Public Permit) can be provided. The department considers, however, that the long ranges of centerfire and rimfire firearms present a safety hazard and that allowing the unsupervised use of such firearms presents a danger to other users. Under both federal and state law, the only lawful means of hunting migratory game birds is by shotgun, which are firearms of limited range. Proposed new (l) would prescribe provisions governing the use of motor vehicles and off-road vehicles. Since it is the department's duty and intent to manage CMAs for conservation and responsible public recreational opportunity consistent with that goal, it is necessary to regulate the use of motor vehicles and off-road vehicles. Coastal habitats are remarkably delicate and subject to disruption by motor traffic. The department therefore proposes to make it an offense for any person to operate a motor vehicle anywhere other than designated roads, parking 42 TexReg 5232 September 29, 2017 Texas Register

49 areas, or other areas designated as open for motor vehicle use, or to operate an off-road vehicle anywhere other than in an area designated as open for off-road vehicle use. Proposed new (m) would prohibit the use of airboats on CMAs. Airboats are capable of disturbing sensitive marsh vegetation and wetlands communities; therefore, the department has determined that the recreational use of airboats on CMAs is antithetical to the purpose of CMAs. Proposed new (n) would establish provisions concerning visitor impacts to natural and cultural resources. The proposed rule would make it an offense for any person to willfully mutilate, injure, destroy, pick, cut, remove, or introduce any plant life except by permit issued by the director; to intentionally or negligently take, remove, destroy, deface, tamper with, or disturb any rock, earth, soil, gem, mineral, fossil, or other geological deposit except by permit issued by the director; to take, remove, destroy, deface, tamper with, disturb, or otherwise adversely impact any prehistoric or historic resource, including but not limited to, buildings, structures, cultural features, rock art, or artifacts, except by written order of the director; or to harm, harass, disturb, trap, confine, catch, possess, remove, release, introduce, or feed any wildlife, or portions of wildlife, except as otherwise provided or authorized. The proposed rule is necessary, generally, to prevent injury or harm to natural and cultural resources that it is the department's duty and goal to protect and conserve for the enjoyment of all visitors. The rule also would create an exception for incidental disturbance occurring as part of normal visitation activities. Proposed new (o) would establish standards for treatment of wastewater, sewage, and garbage, making it an offense to deposit waste water, sewage, or effluent from sinks, toilets, or other plumbing fixtures directly on the ground or into the water; or to dispose of garbage except in a receptacle provided for that use or as may otherwise be specifically authorized by department personnel. The proposed provision is necessary to ensure that environmental degradation does not occur as a result of public visitation at CMAs. Proposed new , concerning Penalties, would reference the statutory penalties for violations of regulations adopted under Parks and Wildlife Code, Chapter 81, which is intended for convenience. Robin Riechers, Coastal Fisheries Division Director, has determined that for each of the first five years that the rules as proposed are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the rules. Mr. Riechers has also determined that for each of the first five years the rules as proposed are in effect, the public benefit anticipated as a result of enforcing or administering the rule as proposed will be the preservation and conservation of coastal habitat and open space for the enjoyment of present and future generations. There will be no adverse economic impacts to persons required to comply with the rules as proposed. Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect on small businesses and micro-businesses. As required by Government Code, (g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule's potential adverse economic impact on small businesses. Those guidelines state that an agency need only consider a proposed rule's "direct adverse economic impacts" to small businesses and micro-businesses to determine if any further analysis is required. For that purpose, commission considers "direct economic impact" to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services. The department has determined that because the rules govern public conduct on coastal management areas, there will be no adverse economic effects on small businesses, microbusinesses, or rural communities. Accordingly, the department has not prepared a regulatory flexibility analysis under Government Code, Chapter The department has not drafted a local employment impact statement under the Administrative Procedures Act, , as the agency has determined that the rule as proposed will not impact local economies. The department has determined that Government Code, (Regulatory Analysis of Major Environmental Rules), does not apply to the proposed rule. The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rules. The department has determined that the proposed rule is in compliance with Government Code, (Actions and Rules Subject to the Coastal Management Program) and (Consistency Required for New Rules and Rule Amendments Subject to the Coastal Management Program). The department has determined that because the rules as proposed do not impose a cost on regulated persons, it is not necessary to repeal or amend any existing rule. In compliance with the requirements of Government Code, , the department has prepared the following Government Growth Impact Statement (GGIS). The rules as proposed, if adopted, will neither create nor eliminate a government program; not result in an increase or decrease in the number of full-time equivalent employee needs; not result in a need for additional General Revenue funding; not affect the amount of any fee; create new regulations that govern public conduct on CMAs; not expand, limit, or repeal an existing regulation; neither increase nor decrease the number of individuals subject to regulation; and have an insignificant positive impact on the state's economy. It is possible that the rules will result in increased visitation to coastal areas, with the attendant additive positive economic impacts associated generally with tourism; however, this impact is expected to be slight at both macro and micro levels. Comments on the proposed rule may be submitted to Mark Lingo, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas, 78744; (512) ( mark.lingo@tpwd.texas.gov) or on the department's website at www. tpwd.texas.gov. The new rules are proposed under the authority of Parks and Wildlife Code, , which prohibits the take, attempted take, or possession of any wildlife or fish from a wildlife management area except in the manner and during the times permitted by the department under Chapter 81, Subchapter E, and under Chapter PROPOSED RULES September 29, TexReg 5233

50 81, Subchapter E, which provides the Parks and Wildlife Commission with authority to establish an open season on wildlife management areas and public hunting lands, authorizes the executive director to regulate numbers, means, methods, and conditions for taking wildlife resources on wildlife management areas and public hunting lands, and authorizes the commission to adopt rules governing recreational activities in wildlife management areas. The proposed new rules affect Parks and Wildlife Code, Chapter Applicability. (a) This subchapter applies to all activities subject to department regulation on any tract of land designated by the department as a coastal management area (CMA), regardless of the presence or absence of boundary markers. (b) The following lands are CMAs: (1) Follets Island CMA in Brazoria County; and (2) Matagorda Peninsula CMA in Matagorda County. (c) The CMAs designated in this section are open to hunting, fishing, and other recreational use, subject to the provisions of this subchapter and any applicable provisions of the Parks and Wildlife Code Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Airboat--A boat powered by a mechanical propulsion system that drives air, including, but not limited to a fan, propeller, or jet. (2) Arms and firearms--any device from which shot, a projectile, arrow, or bolt is fired by the force of an explosion, compressed air, gas, or mechanical device, including, but not limited to, rifle, shotgun, handgun, air rifle, pellet gun, longbow, cross bow, sling shot, blow gun, or dart gun. (3) Camping--The use of CMA lands for overnight accommodation, which includes sleeping, the storage of unattended personal possessions, or the use of a motor vehicle as a lodging. (4) Coastal Management Area (CMA)--A type of wildlife management area classified under the provisions of Parks and Wildlife Code, , for purposes of managing coastal habitats and resources. (5) Designated road--a constructed roadway indicated as being open to the public by either signs posted to that effect or by current maps and leaflets distributed at the area. Roads closed to the public may additionally be identified by on-site signing, barricades at entrances, or informational literature made available to the public. Designated roads do not include county or state roads or highways. (6) Motor vehicle--as defined by Transportation Code, Chapter 541. (7) Off-road vehicle--an ATV, a utility vehicle, a vehicle that may not lawfully be operated on a public roadway, or any vehicle that is manufactured or adapted for off-road use Rules of Conduct. (a) General. (1) This section applies to all CMAs unless an exception for a specific area and time period is designated by the executive director or by written permission of the department. (2) The provisions of this section do not apply to persons authorized by the department to conduct research on the area and department employees in performance of their duties. (3) It is an offense for any person to fail to obey regulations posted at the area or policies established by order of the executive director, fail to comply with instructions on permits or area leaflets, or refuse to follow directives given by departmental personnel in the discharge of official duties. (b) Abandoned and unattended property. It is an offense for any person to: (1) abandon a vehicle or other personal property; (2) leave a vehicle, boat, barge, or other property unattended in such a manner as to create a hazardous or unsafe condition; or (3) leave property unattended for longer than 24 consecutive hours. (c) Alcoholic beverages. It is an offense for any person to publicly consume or display an alcoholic beverage. (d) Animals and pets. It is an offense for any person to: (1) possess dogs in camp that are not confined or leashed; or (2) allow vicious or dangerous dogs to create a disturbance or hazard. (e) Arms and Firearms. It is an offense for any person to display or discharge an arm or firearm except: (1) while hunting migratory game birds under the provisions of this subchapter; or (2) while fishing by means of lawful archery equipment. (f) Camping. It is an offense for any person to: (1) camp for more than 14 consecutive days on a CMA where overnight camping is allowed, or for more than 21 days in any 30-day period; or (2) establish a camp and leave it unattended for a period of longer than 24 hours. (g) Fires. Fires are permitted and visitors may bring firewood or collect deadwood or driftwood for fires; however, it is unlawful for any person to: (1) fell or cut any living vegetation for firewood; or (2) leave a fire unattended. (h) Fireworks are prohibited. (i) Fishing. Fishing is allowed under the provisions of Subchapter N of this chapter (relating to Statewide Recreational and Commercial Fishing Proclamation). (j) Graffiti and Vandalism. It is an offense for any person to write on, scratch, or otherwise deface natural features, signs, buildings, or other structures. (k) Hunting. (1) No person may hunt any wildlife resource other than migratory game birds. (2) The hunting, taking, and possession of migratory game birds shall be as provided by Chapter 65, Subchapter N of this title (relating to Migratory Game Bird Proclamation). 42 TexReg 5234 September 29, 2017 Texas Register

51 (3) It is an offense for any person to hunt migratory game birds without possessing a valid Annual Public Permit. (l) Motor Vehicles and Off-Road Vehicles. It is an offense for any person to: (1) operate a motor vehicle anywhere other than designated roads, parking areas, or other areas designated as open for motor vehicle use; or (2) operate an off-road vehicle anywhere other than in an area designated as open for off-road vehicle use. (m) Airboats. The use of airboats is prohibited on CMAs. (n) Natural and Cultural Resources. This paragraph does not apply to incidental or unintentional disturbance occurring as result of normal visitation activities. (1) Plant life. It is an offense for any person to willfully mutilate, injure, destroy, pick, cut, remove, or introduce any plant life except by permit issued by the director. (2) Geological features. It is an offense for any person to intentionally or negligently take, remove, destroy, deface, tamper with, or disturb any rock, earth, soil, gem, mineral, fossil, or other geological deposit except by permit issued by the director. (3) Cultural resources. It is an offense for any person to take, remove, destroy, deface, tamper with, disturb, or otherwise adversely impact any prehistoric or historic resource, including but not limited to, buildings, structures, cultural features, rock art, or artifacts, except by written order of the director. (4) Wildlife. It is an offense for any person to: (A) harm, harass, disturb, trap, confine, catch, possess, or remove any wildlife, or portions of wildlife, except as provided in subsection (k) of this section or authorized in writing by the department; (B) release or introduce any species of animal life (including to waters within or bordering a CMA), except as authorized by the Parks and Wildlife Code and written order of the Executive Director or designee; or (C) feed or offer food to any wildlife, or to leave food unsecured in a manner that makes the food available to wildlife, unless specifically authorized by the department. (o) Wastewater, Sewage, and Garbage. It is an offense for any person to: (1) deposit waste water, sewage, or effluent from sinks, toilets, or other plumbing fixtures directly on the ground or into the water; or (2) dispose of garbage except in a receptacle provided for that use or as may otherwise be specifically authorized by department personnel Penalties. The penalties for violation of this subchapter are prescribed by Parks and Wildlife Code, The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Robert D. Sweeney, Jr. General Counsel Texas Parks and Wildlife Department Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TITLE 34. PUBLIC FINANCE PART 1. COMPTROLLER OF PUBLIC ACCOUNTS CHAPTER 3. TAX ADMINISTRATION SUBCHAPTER V. FRANCHISE TAX 34 TAC The Comptroller of Public Accounts proposes amendments to 3.588, concerning margin: cost of goods sold. The comptroller is amending the section to implement House Bill 500, 83rd Legislature, The changes also add definitions and interpret ambiguous statutory language. The comptroller amends subsection (a) to indicate that specific provisions of this section apply to reports other than those originally due on or after January 1, The comptroller amends subsection (c) to add new paragraph (8) concerning movie theaters. New paragraph (8) implements House Bill 500, Section 10, which enacted Tax Code, (t), effective September 1, The language in this paragraph mirrors the statutory language. Subsequent paragraphs are renumbered accordingly. The comptroller amends renumbered paragraph (9), which implements Tax Code, (i), concerning the ownership of goods, to add a presumption that the legal title holder is the owner of the goods and to define several additional terms that are used in the current paragraph. Paragraph (9) is reorganized to add new subparagraph (A). Existing language for determining when a taxable entity is the owner of goods is located in new subparagraph (A). The comptroller amends the existing language to add a rebuttable presumption that the legal title holder is the owner of the goods. A taxpayer may rebut the presumption by proving an ownership right superior to the legal title holder. The comptroller amends relettered subparagraph (B) to define the terms "labor," "material," and "project" for purposes of paragraph (9) only. The proposed amendment uses the definitions of "labor" and "material" verbatim from Property Code, (3) and (4) (Definitions), except that the proposed amendment replaces the term "work" with the term "project." The definition of "project" tracks the language of Tax Code, (i). Subsection (i) states that a taxable entity "furnishing labor and materials to a project" is considered to be the owner of the labor and materials and may include the costs as allowed by in the computation of cost of goods sold. However, subsection (i) does not define "labor" or "materials." The lack of definitions has created uncertainty and generated numerous controversies. The courts have held that a contractor may claim labor and material costs if they are "an essential and direct" component of a project but not if they are "too far removed" from the project. Combs v. Newpark Resources, Inc., 422 S.W.3d PROPOSED RULES September 29, TexReg 5235

52 46, 57 (Tex. App. - Austin 2013, no pet.); Hegar v. CGG Veritas Services (U.S.), Inc., No CV (Tex. App. - Austin 2016) (mem. op.). The boundaries between "essential and direct" and "too far removed" are uncertain. To reduce the uncertainty, the comptroller proposes to add definitions of "labor" and "materials" based on the definitions used in Texas Property Code, Chapter 53 (Mechanic's, Contractor's, or Materialman's Lien). The Tax Code phrase "furnishing labor and materials" is similar to the Property Code phrase "furnishes labor and materials." Therefore, it is reasonable to assume that the Legislature intended similar definitions. The comptroller will consider caselaw interpreting Property Code, Chapter 53, but may adapt Property Code interpretations to conform to needs of the Tax Code. Because the proposed amendment requires that the labor and materials be used in the "direct prosecution" of a project and the franchise tax caselaw requires that the labor and material be "direct and essential" components of a project, the proposed amendments are generally consistent with the direction given by the courts. However, outcomes could vary depending upon the facts. For example, it is conceivable that a seismic surveyor's work could be performed in the direct prosecution of a particular drilling project so that the surveyor could obtain a lien on the project. In that instance, the tax outcome would be consistent with the outcome of the CGG Veritas court decision. On the other hand, it is also conceivable that a seismic surveyor's work could be performed generically so that the surveyor could not obtain a lien on a particular project. In that instance, the tax outcome might be inconsistent with the outcome of the CGG Veritas court decision. The court decision did not discuss the ability of CGG Veritas to obtain a lien. Finally, these definitions, which require that the labor and materials be used in the "direct prosecution" of the project, are limited to the determination of whether the taxable entity furnishing the labor and materials is considered to be an "owner" under subsection (i), and do not affect the determination of allowable costs under other subsections. For example, these definitions do not apply to direct labor costs described under subsection (d)(1). The comptroller amends subsection (c) to add new paragraph (10) concerning pipeline entities. New paragraph (10) implements House Bill 500, Section 9, which enacted Tax Code, (k-2) and (k-3), concerning pipeline entities. The language in paragraph (10) mirrors the statutory language. Subsequent paragraphs are renumbered accordingly. The comptroller amends renumbered paragraph (11) concerning rentals and leases. To better distinguish this provision from subsection (d)(7) of this section, the phrase "rental or leasing companies" replaces the phrase "rentals and leases." Additional amendments interpret ambiguous statutory language. Tax Code, (k-1) provides that motor vehicle rental or leasing companies, heavy construction equipment rental or leasing companies, and railcar rolling stock rental or leasing companies may subtract as costs of goods sold "the costs otherwise allowed by this section in relation to tangible personal property that the entity rents or leases in the ordinary course of business of the entity." The amendments to renumbered paragraph (11) memorialize the guidance of the Third Court of Appeals in Hegar v. Sunstate Equipment Co., LLC, 2017 WL at *5 (Tex. App.-Austin Jan. 20, 2017, pet. filed) (mem. op.). The court agreed with the comptroller s interpretation of Tax Code, (k-1)(2), "which is that Sunstate may deduct 'all direct costs of acquiring or producing the [heavy construction equipment] ' that forms the basis of Sunstate's business, as well as additional costs 'in relation to the taxable entity's [heavy construction equipment]. " The court held, "This reading of the statute is logical and consistent with the apparent purpose of subsection (k-1) to extend to renters of heavy equipment the same COGS deductions available to a company that sells identical equipment." Id. The amendments provide that certain kinds of motor vehicle rental or leasing companies, a railcar rolling stock rental or leasing company, or a heavy construction equipment rental or leasing company may deduct costs otherwise allowed by Tax Code, in relation to the motor vehicles, railcar rolling stock, or heavy construction equipment that the entity rents or leases in the ordinary course of its rental or leasing business. Tom Currah, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government. Mr. Currah also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be by implementing current statutory provisions and providing additional definitions to clarify existing statutory language. This rule is proposed under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule. Comments on the proposal may be submitted to Teresa G. Bostick, Director, Tax Policy Division, P.O. Box 13528, Austin, Texas Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register. This amendment is proposed under Tax Code, (Comptroller's Rules; Compliance; Forfeiture), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2. This amendment implements Tax Code, Margin: Cost of Goods Sold. (a) Effective Date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Arm's length--the standard of conduct under which entities that are not related parties and that have substantially equal bargaining power, each acting in its own interest, would negotiate or carry out a particular transaction. (2) Computer program--a series of instructions that are coded for acceptance or use by a computer system and that are designed to permit the computer system to process data and provide results and information. The series of instructions may be contained in or on magnetic tapes, printed instructions, or other tangible or electronic media. (3) Goods--Real or tangible personal property sold in the ordinary course of business of a taxable entity. 42 TexReg 5236 September 29, 2017 Texas Register

53 (4) Heavy construction equipment--self-propelled, self-powered, or pull-type equipment that weighs at least 3,000 pounds and is intended to be used for construction. The term does not include a motor vehicle required to be titled and registered. (5) Lending institution--an entity that makes loans and: (A) is regulated by the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Office of Thrift Supervision, the Texas Department of Banking, the Office of Consumer Credit Commissioner, the Credit Union Department, or any comparable regulatory body; (B) is licensed by, registered with, or otherwise regulated by the Department of Savings and Mortgage Lending; (C) is a "broker" or "dealer" as defined by the Securities Exchange Act of 1934 at 15 U.S.C. 78c; or (D) provides financing to unrelated parties solely for agricultural production. (6) Principal business activity--the activity in which a taxable entity derives the largest percentage of its "total revenue". (7) Production--Construction, manufacture, installation occurring during the manufacturing or construction process, development, mining, extraction, improvement, creation, raising, or growth. (8) Related party--a person, corporation, or other entity, including an entity that is treated as a pass-through or disregarded entity for purposes of federal taxation, whether the person, corporation, or entity is subject to the tax under this chapter or not, in which one person, corporation, or entity, or set of related persons, corporations, or entities, directly or indirectly owns or controls a controlling interest in another entity. (9) Service costs--indirect costs and administrative overhead costs that can be identified specifically with a service department or function, or that directly benefit or are incurred by reason of a service department or function. For purposes of this section, a service department includes personnel (including costs of recruiting, hiring, relocating, assigning, and maintaining personnel records or employees); accounting (including accounts payable, disbursements, and payroll functions); data processing; security; legal; general financial planning and management; and other similar departments or functions. (10) Tangible personal property-- (A) includes: (i) personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner; (ii) films, sound recordings, videotapes, live and prerecorded television and radio programs, books, and other similar property embodying words, ideas, concepts, images, or sound, without regard to the means or methods of distribution or the medium in which the property is embodied, for which, as costs are incurred in producing the property, it is intended or is reasonably likely that any medium in which the property is embodied will be mass-distributed by the creator or any one or more third parties in a form that is not substantially altered; and (iii) a computer program, as defined in paragraph (2) of this subsection. (B) does not include: (i) intangible property or (c) (ii) services. General rules for determining cost of goods sold. (1) Affiliated entities. Notwithstanding any other provision of this section, a payment made by one member of an affiliated group to another member of that affiliated group not included in the combined group may be subtracted as a cost of goods sold only if it is a transaction made at arm's length. (2) Capitalization or expensing of certain costs. The election to capitalize or expense allowable costs is made by filing the franchise tax report using one method or the other. The election is for the entire period on which the report is based and may not be changed after the due date or the date the report is filed, whichever is later. A taxable entity that is allowed a subtraction by this section for a cost of goods sold and that is subject to Internal Revenue Code, 263A, 460, or 471 (including a taxable entity subject to 471 that elects to use LIFO under 472), may elect to: (A) Capitalize those costs in the same manner and to the same extent that the taxable entity capitalized those costs on its federal income tax return, except for those costs excluded under subsection (g) of this section, or in accordance with subsections (d), (e), and (f) of this section. A taxable entity that elects to capitalize costs on its first report due on or after January 1, 2008, may include, in beginning inventory, costs allowable for franchise tax purposes that would be in beginning inventory for federal income tax purposes. (i) If the taxable entity elects to capitalize those costs allowed under this section as a cost of goods sold, it must capitalize each cost allowed under this section that it capitalized on its federal income tax return. (ii) If the taxable entity later elects to begin expensing those costs allowed under this section as a cost of goods sold, the entity may not deduct any cost incurred before the first day of the period on which the report is based, including any ending inventory from a previous report. (B) Expense those costs, except for those costs excluded under subsection (g) of this section, or in accordance with subsections (d), (e), and (f) of this section. (i) If the taxable entity elects to expense those costs allowed under this section as a cost of goods sold, costs incurred before the first day of the period on which the report is based may not be subtracted as a cost of goods sold. (ii) If the taxable entity later elects to begin capitalizing those costs allowed under this section as a cost of goods sold, costs incurred prior to the accounting period on which the report is based may not be capitalized. (3) Election to subtract cost of goods sold. A taxable entity, if eligible, must make an annual election to subtract cost of goods sold in computing margin by the due date, or at the time the report is filed, whichever is later. The election to subtract cost of goods sold is made by filing the franchise tax report using the cost of goods sold method. An amended report may be filed within the time allowed by Tax Code, to change the method of computing margin to the cost of goods sold deduction method or from the cost of goods sold deduction method to the compensation deduction method, 70% of total revenue, or, if otherwise qualified, the E-Z computation method. An election may also be changed as part of an audit. See of this title (relating to Margin: Reports and Payments). (4) Exclusions from total revenue. Any expense excluded from total revenue (see of this title (relating to Margin: Total PROPOSED RULES September 29, TexReg 5237

54 Revenue)) may not be included in the determination of cost of goods sold. (5) Film and broadcasting. A taxable entity whose principal business activity is film or television production or broadcasting or the sale of broadcast rights or the distribution of tangible personal property described by subsection (b)(10)(a)(ii) of this section, or any combination of these activities, and who elects to use cost of goods sold to determine margin, may include as cost of goods sold: property; (A) the costs described in this section in relation to the (B) depreciation, amortization, and other expenses directly related to the acquisition, production, or use of the property, including (C) expenses for the right to broadcast or use the property. (6) Lending institutions. Notwithstanding any other provision of this section, if the taxable entity is a lending institution that offers loans to the public and elects to subtract cost of goods sold, the entity may subtract as a cost of goods sold an amount equal to interest expense. (A) This paragraph does not apply to entities primarily engaged in an activity described by category 5932 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget. (B) For purposes of this subsection, an entity engaged in lending to unrelated parties solely for agricultural production offers loans to the public. (7) Mixed transactions. If a transaction contains elements of both a sale of tangible personal property and a service, a taxable entity may only subtract as cost of goods sold the costs otherwise allowed by this section in relation to the tangible personal property sold. (8) Movie theaters. Effective for reports originally due on or after September 1, 2013, if a taxable entity that is a movie theater elects to subtract cost of goods sold, the cost of goods sold for the taxable entity shall be the costs described by this section in relation to the acquisition, production, exhibition, or use of a film or motion picture, including expenses for the right to use the film or motion picture. (9) [(8)] Owner of goods. A taxable entity may make a subtraction under this section in relation to the cost of goods sold only if that entity owns the goods. (A) A taxable entity that holds the legal title to the goods is presumed to be the owner of the goods for purposes of this section. A taxable entity may rebut this presumption by proving an ownership right superior to the legal title holder [The determination of whether a taxable entity is an owner is] based on all of the facts and circumstances, including the various benefits and burdens of ownership vested with the taxable entity. (B) [(A)] A taxable entity furnishing labor or materials to a project [for the construction, improvement, remodeling, repair, or industrial maintenance (as the term "maintenance" is defined in of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance)), of real property] is considered to be an owner of the labor or materials and may include the costs, as allowed by this section, in the computation of the cost of goods sold. For purposes of determining whether a taxable entity is considered an owner of the labor or materials under this paragraph, and eligible to deduct costs related to that labor and materials as described in subsections (d), (e), and (f) of this section, the following terms mean: (i) Labor--Labor used in the direct prosecution of the project. (ii) Material--All or part of: (I) the material, machinery, fixtures, or tools incorporated into the project, consumed in the direct prosecution of the project, or ordered and delivered for incorporation or consumption; (II) rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct prosecution of the project at the site of the project; or (III) power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct prosecution of the project. (iii) Project--The construction, improvement, remodeling, repair, or industrial maintenance (as the term "maintenance" is defined in of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance)) of real property. (C) [(B)] Solely for the purposes of this section, a taxable entity shall be treated as the owner of goods being manufactured or produced by the entity under a contract with the federal government, including any subcontracts that support a contract with the federal government, notwithstanding that the Federal Acquisition Regulations may require that title or risk of loss with respect to those goods be transferred to the federal government before the manufacture or production of those goods is complete. (10) Pipeline entities. Effective for reports originally due on or after January 1, 2014, and notwithstanding paragraph (9) of this subsection and subsection (g)(3) of this section, a pipeline entity that provides services for others related to the product that the pipeline does not own and to which this paragraph applies may subtract as a cost of goods sold its depreciation, operations, and maintenance costs allowed by this section related to the services provided. (A) For purposes of this paragraph, "pipeline entity" means an entity: (i) that owns or leases and operates the pipeline by which the product is transported for others and only to that portion of the product to which the entity does not own title; and (ii) that is primarily engaged in gathering, storing, transporting, or processing crude oil, including finished petroleum products, natural gas, condensate, and natural gas liquids, except for a refinery installation that manufactures finished petroleum products from crude oil. (B) For purposes of this paragraph, "processing" means the physical or mechanical removal, separation, or treatment of crude oil, including finished petroleum products, natural gas, condensate, and natural gas liquids after those materials are produced from the earth. The term does not include the chemical or biological transformation of those materials. (11) [(9)] Rental or leasing companies [Rentals and leases]. Notwithstanding any other provision of this section[, the following taxable entities may subtract as cost of goods sold the costs otherwise allowed by this section in relation to tangible personal property that the entity rents or leases in the ordinary course of business of the entity]: (A) a motor vehicle rental company that remits a tax on gross receipts imposed under Tax Code, , or a motor vehicle leasing company, may subtract as costs of goods sold the costs oth- 42 TexReg 5238 September 29, 2017 Texas Register

55 erwise allowed by this section in relation to motor vehicles that the company rents or leases in the ordinary course of its business; (B) a heavy construction equipment rental or leasing company may subtract as costs of goods sold the costs otherwise allowed by this section in relation to heavy construction equipment that the company rents or leases in the ordinary course of its business; and (C) a railcar rolling stock rental or leasing company may subtract as costs of goods sold the costs otherwise allowed by this section in relation to railcar rolling stock that the company rents or leases in the ordinary course of its business. (12) [(10)] Reporting methods. A taxable entity shall determine its cost of goods sold, except as otherwise provided by this section, in accordance with the methods used on the federal income tax return on which the report under this chapter is based. This subsection does not affect the type or category of cost of goods sold that may be subtracted under this section. (13) [(11)] Restaurants and bars. Entities engaged in activities described in Major Group 58 (Eating and Drinking Places) of the Standard Industrial Classification Manual may deduct for cost of goods sold only those expenses allowed under subsections (d), (e) and (f) of this section, that relate to the acquisition and production of food and beverages. Any costs related to both the production of food and beverages and to other activities must be allocated to production on a reasonable basis. (d) Direct costs. The cost of goods sold includes all direct costs of acquiring or producing the goods. Direct costs include: (1) Labor costs. A taxable entity may include in its cost of goods sold calculation labor costs, other than service costs, that are properly allocable to the acquisition or production of goods and are of the type subject to capitalization or allocation under Treasury Regulation Sections 1.263A-1(e) or as direct labor costs, indirect labor costs, employee benefit expenses, or pension and other related costs, without regard to whether the taxable entity is required to or actually capitalizes such costs for federal income tax purposes. (A) For purposes of this section, labor costs include W-2 wages, IRS Form 1099 payments for labor, temporary labor expenses, payroll taxes, pension contributions, and employee benefits expenses, including, but not limited to, health insurance and per diem reimbursements for travel expenses, to the extent deductible for federal tax purposes. (B) Labor costs under this paragraph shall not include any type of costs includable in subsection (f) or excluded in subsection (g) of this section. Costs for labor that do not meet the requirements set forth in this paragraph may still be subtracted as a cost of goods sold if the cost is allowed under another provision of this section. For example, service costs may be included in a taxable entity's cost of goods sold calculation to the extent provided by subsection (f) of this section. (2) Incorporated materials. A taxable entity may include in its cost of goods sold calculation the cost of materials that are an integral part of specific property produced. (3) Consumable materials. A taxable entity may include in its cost of goods sold calculation the cost of materials that are consumed in the ordinary course of performing production activities. (4) Handling costs. A taxable entity may include in its cost of goods sold calculation handling costs, including costs attributable to processing, assembling, repackaging, and inbound transportation. (5) Storage costs. A taxable entity may include in its cost of goods sold calculation storage costs, including the costs of carrying, storing, or warehousing property, subject to subsection (g) of this section, concerning excluded costs. (6) Depreciation, depletion, and amortization. A taxable entity may include in its cost of goods sold calculation depreciation, depletion, and amortization reported on the federal income tax return on which the report under this chapter is based, to the extent associated with and necessary for the production of goods, including recovery described by Internal Revenue Code, 197, and property described in Internal Revenue Code, 179. (7) Rentals and leases. A taxable entity may include in its cost of goods sold calculation the cost of renting or leasing equipment, facilities, or real property directly used for the production of the goods, including pollution control equipment and intangible drilling and dry hole costs. (8) Repair and maintenance. A taxable entity may include in its cost of goods sold calculation the cost of repairing and maintaining equipment, facilities, or real property directly used for the production of the goods, including pollution control devices. (9) Research and development. A taxable entity may include in its cost of goods sold calculation the costs attributable to research, experimental, engineering, and design activities directly related to the production of the goods, including all research or experimental expenditures described by Internal Revenue Code, 174. (10) Mineral production. A taxable entity may include in its cost of goods sold calculation geological and geophysical costs incurred to identify and locate property that has the potential to produce minerals. (11) Taxes. A taxable entity may include in its cost of goods sold calculation taxes paid in relation to acquiring or producing any material, including property taxes paid on buildings and equipment, and taxes paid in relation to services that are a direct cost of production. (12) Electricity. A taxable entity may include in its cost of goods sold calculation the cost of producing or acquiring electricity sold. (13) A taxable entity may include in its cost of goods sold calculation a contribution to a partnership in which the taxable entity owns an interest that is used to fund activities, the costs of which would otherwise be treated as cost of goods sold of the partnership, but only to the extent that those costs are related to goods distributed to the contributing taxable entity as goods-in-kind in the ordinary course of production activities rather than being sold by the partnership. (e) Additional costs. In addition to the amounts includable under subsection (d) of this section, the cost of goods sold includes the following costs in relation to the taxable entity's goods: (1) deterioration of the goods; (2) obsolescence of the goods; (3) spoilage and abandonment, including the costs of rework, reclamation, and scrap; (4) if the property is held for future production, preproduction direct costs allocable to the property, including storage and handling costs, as provided by subsection (d)(4) and (5) of this section; (5) postproduction direct costs allocable to the property, including storage and handling costs, as provided by subsection (d)(4) and (5) of this section; PROPOSED RULES September 29, TexReg 5239

56 (6) the cost of insurance on a plant or a facility, machinery, equipment, or materials directly used in the production of the goods; (7) the cost of insurance on the produced goods; (8) the cost of utilities, including electricity, gas, and water, directly used in the production of the goods; (9) the costs of quality control, including replacement of defective components pursuant to standard warranty policies, inspection directly allocable to the production of the goods, and repairs and maintenance of goods; and (10) licensing or franchise costs, including fees incurred in securing the contractual right to use a trademark, corporate plan, manufacturing procedure, special recipe, or other similar right directly associated with the goods produced. (f) Indirect or administrative overhead costs. A taxable entity may subtract as a cost of goods sold service costs, as defined in subsection (b)(9) of this section, that it can demonstrate are reasonably allocable to the acquisition or production of goods. The amount subtracted may not exceed 4.0% of total indirect and administrative overhead costs. (1) Any costs already subtracted under subsections (d) or (e) of this section may not be subtracted under this subsection. (2) Any costs excluded under subsection (g) of this section may not be subtracted under this subsection. (g) Costs not included. The cost of goods sold does not include the following costs in relation to the taxable entity's goods: (1) the cost of renting or leasing equipment, facilities, or real property that is not used for the production of the goods; sales; costs; (2) selling costs, including employee expenses related to (3) distribution costs, including outbound transportation (4) advertising costs; (5) idle facility expenses; (6) rehandling costs; (7) bidding costs, which are the costs incurred in the solicitation of contracts ultimately awarded to the taxable entity; (8) unsuccessful bidding costs, which are the costs incurred in the solicitation of contracts not awarded to the taxable entity; (9) interest, including interest on debt incurred or continued during the production period to finance the production of the goods; (10) income taxes, including local, state, federal, and foreign income taxes, and franchise taxes that are assessed on the taxable entity based on income; (11) strike expenses, including costs associated with hiring employees to replace striking personnel, but not including the wages of the replacement personnel, costs of security, and legal fees associated with settling strikes; (A) government; and (12) officers' compensation; (13) costs of operation of a facility that is: located on property owned or leased by the federal (B) managed or operated primarily to house members of the armed forces of the United States; (14) any compensation paid to an undocumented worker used for the production of goods, provided that, as used in this paragraph only, the following terms shall have the following meanings: (A) "undocumented worker" means a person who is not lawfully entitled to be present and employed in the United States; and (B) "goods" includes the husbandry of animals, the growing and harvesting of crops, and the severance of timber from realty; and (15) costs funded by a partnership contribution, to the extent that the contributing taxable entity made the cost of goods sold deduction under subsection (d)(13) of this section. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 18, TRD Lita Gonzalez General Counsel Comptroller of Public Accounts Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) PART 11. TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM CHAPTER 302. GENERAL PROVISIONS RELATING TO THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC The State Board of Trustees (Board) of the Texas Emergency Services Retirement System (System) proposes amendments to 34 TAC 302.5, relating to the correction of errors and contributions that are past due. The objective of the proposed amendment is to protect the System benefits earned by volunteer firefighters and ems personnel. The proposed amendment requires departments to correct errors that have affected the enrollment and qualified service of members, regardless of when the errors occurred. The proposed amendment streamlines the process of correcting errors and eliminates 302.6, a redundant rule, regarding the payment of past due contributions and any applicable interest. Kevin Deiters, Executive Director, has determined that the public benefit in the first five years this amended rule takes effect is the consolidation of agency rules, and increased accuracy of the System's data which includes correct contributions, interest charges, qualified service credit, and membership records. The adoption of the proposed amendments will not affect small businesses or the general public. The adoption of the proposed amendments does not have foreseeable implications to the cost or revenues of the state. Any costs that are placed upon local governments due to the proposed amendment to are a result of past due contributions due to a correction of error that occurred during the enrollment of membership. 42 TexReg 5240 September 29, 2017 Texas Register

57 Comments on the amendment must be submitted in writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, TX , submitted electronically to submitted electronically on the System's website or faxed to (512) no later than October 29, The amendment to is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, , which allows the Board to create System rules to determine the costs of contributions past due and their accrued interest charges. No other statutes, articles, or codes are affected by this proposal Correction of Errors and Contributions Past Due. (a) The [A] local board shall [may] correct an error in enrollment in membership or computation of qualified service at a meeting of the local board. Using [by completing and submitting to the Executive Director] a form provided by the pension system, [for any error that occurred within] the correction of error shall be certified by the local board chair and provided to the Executive Director in the manner prescribed by the [five-year period prior to the date that the form is submitted to the] pension system. [The completed form must be: [(1) signed by the chair and secretary of the local board and the administrative head of the department; and] [(2) accompanied by any applicable past due contributions necessitated by the change, including the applicable interest charge in accordance with Rule ] (b) The Executive Director shall review the correction of error and may require the local board to provide additional documentation with respect to the correction of error. The Executive Director [and] may reject any proposed correction if such additional documentation does not support [is not provided. The Executive Director may also permit] the proposed correction of [an] error or if such additional documentation is not provided. The [that occurred more than five years from the date that the correction form is submitted to the pension system if the] Executive Director shall notify the local board if the proposed correction of error is approved or is denied due to lack of documentation provided by the local board does not support the [determines in his or her sole and absolute discretion that such] correction of error [is equitable and justifiable under the given circumstances]. (c) The Executive Director shall determine the applicable past due contributions required by the correction of error, if any, including applicable interest charges in accordance with of the Texas Government Code. (d) In accordance with (a), Texas Government Code, the governing body of the political subdivision of which the participating department is a part is liable for payment of past due contributions and interest charges, if any, and such payments shall be made in accordance with instructions provided by the pension system. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Kevin Deiters Executive Director Texas Emergency Services Retirement System Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The State Board of Trustees (Board) of the Texas Emergency Services Retirement System (System) proposes the repeal of 302.6, regarding charges for past due contributions. The Board proposes the repeal of to streamline the rules regarding the correction of errors and the subsequent past due contributions, including interest charges. The repeal follows a proposed amendment to that will incorporate the provisions of rule Kevin Deiters, Executive Director, has determined that every year for the first five years this repeal goes into effect the public benefit will be the repeal of a redundant rule and a clarification of the process to correct errors. Mr. Deiters has determined that there will be no effect on small businesses or individuals. The proposed repeal does not have foreseeable implications relating to the costs or revenues of state and local governments. Comments on the proposed repeal of the rule must be submitted in writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, TX , submitted electronically to outreach@tesrs.texas.gov, submitted electronically on the System's website or faxed to (512) no later than October 29th, The repeal of is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, , which allows the Board to create System rules to determine the costs of contributions past due and their accrued interest charges. No other statutes, articles, or codes are affected by this proposal Charge for Certain Contributions Past Due. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Kevin Deiters Executive Director Texas Emergency Services Retirement System Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TAC The State Board of Trustees (Board) of the Texas Emergency Services Retirement System (System) proposes an amendment to concerning Qualified Service. PROPOSED RULES September 29, TexReg 5241

58 The amendment to will correct an error in the reference to statute. The references in the current rule to (10)(B)(i) and (10)(B)(ii) are incorrect, as these sections do not exist in the Texas Government Code. The amendment corrects these errors by referencing (10)(B)(i) and (10)(B)(ii) of the Texas Government Code which define Qualified Service. Kevin Deiters, Executive Director, has determined that for each year of the first five-year period that the amended rule is in effect the public benefit will be that the System corrects an error in its rules. Mr. Deiters has determined that there will be no effect on small businesses or individuals. Administration of the amended does not have foreseeable implications relating to the costs or revenues of state and local governments. Comments on the amendment must be submitted in writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, TX , submitted electronically to submitted electronically on the System's website or faxed to (512) no later than October 29, The amendment is proposed under the statutory authority of Title 8, Subsection H, Texas Emergency Services Retirement System, , which requires the Board to create rules regarding qualified service. No other statutes, articles, or codes are affected by this proposal Qualified Service. The local board shall be responsible for the policy for its participating department relating to the requirements for percentage of attendance of emergencies defined under (10)(B)(i) [ (10)(B)(i)], Texas Government Code, or the percentage of providing support services for emergencies defined under (10)(B)(ii) [ (10)(B)(ii)], Texas Government Code, in connection with the determination of whether a person is performing or has performed qualified service for purposes of the pension system. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Kevin Deiters Executive Director Texas Emergency Services Retirement System Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 308. BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC The State Board of Trustees (Board) of the Texas Emergency Services Retirement System (System) proposes amendments to 34 TAC to conform with Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, (a) regarding Claim and Appeal Procedures. The objective of the proposed amendments is to reduce delay in the payment of retirement checks to retired firefighters and first responders that occur when local boards fail to meet and decide a retirement claim pursuant to the statutory requirement of 16 days. The proposed amendments conform the rule with statute outlined in Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, (a). The language in the current rule does not follow the process provided by the statute which allows the Executive Director to determine the merits of a service retirement claim after the 16th day after a local board receives the claim and fails to hold a hearing to decide the claim. Under the current rule, the determination of a claim remains with a local board after the 16-day period. The proposed amendments to will correct this error and conform to the process provided by the statute. Kevin Deiters, Executive Director, has determined that the public benefit in the first five years this amended rule takes effect is a reduction in the delay of initiating payments to eligible members of the System and that the amended rule conforms to statute. The adoption of the rule will not affect small businesses or the general public. The adoption of the proposed amendments does not have foreseeable implications to the cost or revenues of the state. Comments on the amended rule must be submitted in writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, TX , submitted electronically to outreach@tesrs.texas.gov, submitted electronically on the System's website or faxed to (512) no later than October 29, The proposed amendment to is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, (a), which outlines the Claim and Appeal Procedure. No other statutes, articles, or codes are affected by this proposal. The proposed amendment has been reviewed by legal counsel and is within the System's authority to adopt Service Retirement Annuity. (a) In this section, normal retirement age is the later of the month a member completes 15 years of credited qualified service or attains the age of 55. (b) A member who has terminated service with all participating departments may apply for a service retirement annuity by filing an application for retirement with the Executive Director. The application may not be filed more than one calendar month before the date the member wishes to retire and must designate a desired retirement date, which may not precede the date of filing or the date of first eligibility to retire. The effective date of a member's retirement is the first day of the calendar month after the later of the following: (1) the date on which a member turns 55 years of age; (2) the date of termination of service with the department; or (3) the date on which the pension system receives an application that meets the requirements of this subsection from a member. (c) The local board of trustees shall hold a hearing on an application for service retirement within 15 days of the date of notice by the Executive Director of the filing of the application. If the local board 42 TexReg 5242 September 29, 2017 Texas Register

59 of trustees does not hold a hearing on or before the 16th day after the date the local board receives the claim, the executive director may determine the merits of the claim. [If the local board of trustees does not hold a hearing on or before 32 days following the date that the Executive Director provides notice, the application will be deemed approved by the local board and benefit payments may commence.] (d) A monthly service retirement annuity is payable for the period beginning on the effective date of retirement through the month in which the retiree dies but is not payable for any month for which the retiree was eligible to retire but did not. Amounts payable for periods following the effective date of retirement but prior to the commencement of benefit payments will be paid in a lump sum with the first benefit payment. (e) A service retirement annuity is payable in equal monthly installments. (f) Except as otherwise provided by this section, the full service retirement monthly annuity is equal to six times the governing body's average monthly Part One contribution as described in Rule during the retiring member's term of qualified service. (g) For credited qualified service in excess of 15 years, a retiring member is entitled to receive an additional 6.2 percent of the annuity compounded annually and adjusted for months of credited qualified service that constitute less than a year. (h) Notwithstanding subsection (g) of this section, a person who had more than 15 years of qualified service as of December 31, 2006, is entitled to a service retirement annuity computed as the greater of the amount that existed on that date or the amount computed under the formula in effect on the date the person terminates service with all participating departments. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Kevin Deiters Executive Director Texas Emergency Services Retirement System Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) CHAPTER 310. ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM 34 TAC The State Board of Trustees (Board) of the Texas Emergency Services Retirement System (System) proposes new concerning Access to Information about Members, Annuitants, and Beneficiaries. The Board is proposing a new rule that establishes specific requirements that the System and local pension boards must meet before individuals are provided access to confidential information. The rule will require the System to develop a security policy (Policy) that outlines appropriate security management practices and controls, including the assurance that appropriate steps are taken by the System and local pension boards to protect confidential information from unauthorized access. The new rule will require each local pension board to review the Policy each year and to implement processes to protect confidential information. The new rule also establishes a process for local pension boards to follow when designating authorized users and requires each authorized user to submit a confidentiality agreement with the System before the Executive Director may authorize access to confidential information. Kevin Deiters, Executive Director, has determined that for each year of the first five-year period that the rule is in effect the public benefit is enhanced security of confidential information. The adopted rule will not affect small businesses or individuals. Administration of new does not have foreseeable implications related to the cost or revenues of state or local governments. Comments on the new rule must be submitted in writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, Texas , submitted electronically to outreach@tesrs.texas.gov, submitted electronically on the System's website or faxed to (512) no later than October 30th, The new is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, , regarding Confidentiality of Information about Members, Annuitants, and Beneficiaries. No other statutes, articles, or codes are affected by this proposal Access to Information about Members, Annuitants, and Beneficiaries. (a) The Executive Director shall develop a pension system security policy to protect member information, including electronic data. (b) The local board annually shall review the pension system security policy and implement processes which protect member information, including electronic data. (c) At a meeting of the local board, the local board shall designate primary and secondary users who are approved by the local board to have access to the participating department's information in the pension system's online database. Using forms provided by the pension system and certified by signature of the local board chair, the local board shall report to the Executive Director the required information for each of the local board's approved users. At a meeting of the local board no later than January 31st of each calendar year, the local board shall designate and approve the primary and secondary users and report user information to the Executive Director in the manner prescribed by the Executive Director. (d) The Executive Director shall authorize access to the pension system's online database only to users who complete a confidentiality agreement. (e) Authorized users' confidentiality agreements under this section remain in effect until January 31st of each calendar year or until the local board chair provides the Executive Director a written revocation of an authorized user's local board approval to maintain member records through access to the pension system's online database. (f) If an authorized user's local board approval is revoked, the local board shall fill the vacancy for the remainder of the calendar year by the procedure in which the user was originally approved. PROPOSED RULES September 29, TexReg 5243

60 (g) All user access to the pension system's online database is subject to the Executive Director's approval and may be terminated at any time. The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt. Filed with the Office of the Secretary of State on September 12, TRD Kevin Deiters Executive Director Texas Emergency Services Retirement System Earliest possible date of adoption: October 29, 2017 For further information, please call: (512) TexReg 5244 September 29, 2017 Texas Register

61 TITLE 22. EXAMINING BOARDS PART 10. TEXAS FUNERAL SERVICE COMMISSION CHAPTER 203. LICENSING AND ENFORCEMENT--SPECIFIC SUBSTANTIVE RULES SUBCHAPTER C. ENFORCEMENT 22 TAC The Texas Funeral Service Commission (Commission) adopts amendments to Title 22 Texas Administrative Code , concerning Procedures and Criteria for Inspections of Licensed Establishments. The rule currently sets out the procedure and criteria for the inspection of funeral establishments, commercial embalming facilities, and crematories. The amendments would add cemeteries to that procedure and criteria. The amendments to Title 22 Texas Administrative Code , concerning Procedures and Criteria for Inspections of Licensed Establishments are adopted with changes to the proposed text due to spelling corrections as published in the July 7, 2017, issue of the Texas Register (42 TexReg 3458). No comments were received regarding the amendments. Title 22 Texas Administrative Code , concerning Procedures and Criteria for Inspections of Licensed Establishments, is adopted under Texas Occupations Code , which authorizes the Texas Funeral Service Commission to adopt rules considered necessary for carrying out the Commission's work, and Texas Occupations Code , which requires the agency to establish, by rule, procedures for inspection of a cemetery. No other statutes, articles, or codes are affected by this adoption Procedures and Criteria for Inspections of Licensed Entities. (a) Inspection Procedures. (1) All licensed funeral establishments, commercial embalming facilities, crematories, and cemeteries shall be inspected at least once every two years. The Commission shall give lower priority to the inspection of cemeteries. (2) All inspections shall be unannounced. (3) The inspector shall review prior inspection reports before inspecting a licensed entity. If prior reports reveal problems, the inspector shall determine whether the licensed entity has corrected the previously identified problems or whether a pattern of violations or new violations exist. (4) Inspectors shall use reasonable efforts to conduct inspections between the hours of 8:00 a.m. and 5:00 p.m., but a licensed entity is required to be open at all times to inspections for violations of Occupations Code, Chapter 651, and Health and Safety Code, Chapters 193, 361, 711, 714, 715 and 716. (5) If a licensed entity is not open for business during regular business hours and an inspector is unable to contact any employee or owner to open the licensed entity to conduct the inspection, the inspector shall notify the licensed entity by mail of the attempted inspection. If a licensed entity is unavailable for inspection during regular business hours twice during a six month period, the Commission may file a complaint against the licensed entity, making the licensed entity subject to an administrative penalty or other action. (b) Criteria for Risk-Based Inspections. (1) If the Commission previously found violations of Occupations Code, Chapter 651, and Health and Safety Code, Chapters 193, 361, 711, 714, 715 and 716, following a biennial inspection, a licensed entity shall be inspected annually until it is free of all violations. (2) Licensed entities that have received a reprimand or letter of warning, that have been assessed administrative penalties, that have had licenses suspended, or that have received a letter ordering the licensed entity to cease and desist for violations of Occupations Code, Chapter 651, or Rules of the Commission are subject to inspection at anytime within three years following the date that the Commission's action became final. (3) If the Commission is in the process of conducting an investigation of a licensed entity, staff may inspect the licensed entity for the limited purpose of proving or disproving the validity of the complaint. The scope of inspections under this paragraph shall be limited to matters relating to the subject of the complaint. (c) Notwithstanding subsection (a)(1) of this section, a cemetery may not be inspected unless an interment has occurred in the cemetery within the two years preceding the inspection or the Commission has received a complaint about the cemetery. The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on September 15, TRD Janice McCoy Executive Director Texas Funeral Service Commission Effective date: October 5, 2017 Proposal publication date: July 7, 2017 For further information, please call: (512) ADOPTED RULES September 29, TexReg 5245

62

63 Adopted Rule Reviews Texas Commission on Fire Protection Title 37, Part 13 The Texas Commission on Fire Protection (commission) adopts the review of Texas Administrative Code, Title 37, Part 13, Chapter 429, concerning Minimum Standards For Fire Inspector Certification. The review was conducted pursuant to Texas Government Code, Chapter 2001, The commission received no comments on the proposed rule review, which was published in the August 18, 2017, issue of the Texas Register (42 TexReg 4152). The commission has determined that the reasons for initially adopting the rules continue to exist and readopts the chapter without changes. This concludes the review of Texas Administrative Code, Title 37, Part 13, Chapter 429. TRD Tim Rutland Executive Director Texas Commission on Fire Protection Filed: September 19, 2017 The Texas Commission on Fire Protection (commission) adopts the review of Texas Administrative Code, Title 37, Part 13, Chapter 451, concerning Fire Officer. The review was conducted pursuant to Texas Government Code, Chapter 2001, The commission received no comments on the proposed rule review, which was published in the August 18, 2017, issue of the Texas Register (42 TexReg 4153). The commission has determined that the reasons for initially adopting the rules continue to exist and readopts the chapter without changes. This concludes the review of Texas Administrative Code, Title 37, Part 13, Chapter 451. TRD Tim Rutland Executive Director Texas Commission on Fire Protection Filed: September 19, 2017 The Texas Commission on Fire Protection (commission) adopts the review of Texas Administrative Code, Title 37, Part 13, Chapter 455, concerning Minimum Standards for Wildland Fire Protection Certification. The review was conducted pursuant to Texas Government Code, Chapter 2001, The commission received no comments on the proposed rule review, which was published in the August 18, 2017, issue of the Texas Register (42 TexReg 4153). The commission has determined that the reasons for initially adopting the rules continue to exist and readopts the chapter without changes. This concludes the review of Texas Administrative Code, Title 37, Part 13, Chapter 455. TRD Tim Rutland Executive Director Texas Commission on Fire Protection Filed: September 19, 2017 RULE REVIEW September 29, TexReg 5247

64

65 Comptroller of Public Accounts Local Sales Tax Rate Changes Effective October 1, 2017 IN ADDITION September 29, TexReg 5249

66 42 TexReg 5250 September 29, 2017 Texas Register

67 IN ADDITION September 29, TexReg 5251

68 42 TexReg 5252 September 29, 2017 Texas Register

69 IN ADDITION September 29, TexReg 5253

70 42 TexReg 5254 September 29, 2017 Texas Register

71 TRD Lita Gonzalez General Counsel Comptroller of Public Accounts Filed: September 19, 2017 Office of Consumer Credit Commissioner Notice of Rate Ceilings The Consumer Credit Commissioner of Texas has ascertained the following rate ceilings by use of the formulas and methods described in , and , Texas Finance Code. The weekly ceiling as prescribed by and for the period of 09/25/17-10/01/17 is 18% for Consumer 1 /Agricultural/Commercial 2 credit through $250,000. The weekly ceiling as prescribed by and for the period of 09/25/17-10/01/17 is 18% for Commercial over $250,000. The judgment ceiling as prescribed by for the period of 10/01/17-10/31/17 is 5.00% for Consumer/Agricultural/Commercial credit through $250,000. The judgment ceiling as prescribed by for the period of 10/01/17-10/30/17 is 5.00% for commercial over $250, Credit for personal, family or household use. 2 Credit for business, commercial, investment or other similar purpose. TRD Leslie Pettijohn Commissioner Office of Consumer Credit Commissioner Filed: September 19, 2017 Credit Union Department Application to Expand Field of Membership Notice is given that the following applications have been filed with the Credit Union Department (Department) and are under consideration: An application was received from Fort Worth City Credit Union, Fort Worth, Texas to expand its field of membership. The proposal would permit persons who live, work, attend school or worship in Tarrant County or any County in which the corporate boundaries or extraterritorial jurisdictions of the City of Fort Worth are located within to be eligible for membership in the credit union. An Application was received from Employees Credit Union, Dallas, Texas to expand its field of membership. The proposal would permit persons who live, work, attend school, or worship in and businesses located in Dallas County, Texas, to be eligible for membership in the credit union. An Application was received from First Class American Credit Union, Fort Worth, Texas to expand its field of membership. The proposal would permit employees of KPS Global LLC, located at 4201 Beach Street, Fort Worth, Texas 76137, to be eligible for membership in the credit union. An application was received from First Service Credit Union, Houston, Texas to expand its field of membership. The proposal would permit employees of SNC Lavalin Engineers & Constructors Inc. paid and/or supervised from its headquarters office located at 919 Milam Street, Houston, Texas 77002, to be eligible for membership in the credit union. An application was received from Credit Union of Texas, Dallas, Texas to expand its field of membership. The proposal would permit persons who work, live, worship, or attend school within the geographic boundaries of Denton County, Texas, to be eligible for membership in the credit union. An application was received from Gulf Credit Union, Groves, Texas to expand its field of membership. The proposal would permit persons who live, work, worship or attend school in Newton County, Texas, to be eligible for membership in the credit union. An application was received from My Community Credit Union, Midland, Texas to expand its field of membership. The proposal would permit persons who live, work, worship, or attend school in, and businesses and other legal entities in Collin County, Texas, to be eligible for membership in the credit union. Comments or a request for a meeting by any interested party relating to an application must be submitted in writing within 30 days from the date of this publication. Credit unions that wish to comment on any application must also complete a Notice of Protest form. The form may be obtained by contacting the Department at (512) or downloading the form at Any written comments must provide all information that the interested party wishes the Department to consider in evaluating the application. All information received will be weighed during IN ADDITION September 29, TexReg 5255

72 consideration of the merits of an application. Comments or a request for a meeting should be addressed to the Credit Union Department, 914 East Anderson Lane, Austin, Texas TRD Harold E. Feeney Commissioner Credit Union Department Filed: September 20, 2017 Notice of Final Action Taken In accordance with the provisions of 7 TAC , the Credit Union Department provides notice of the final action taken on the following applications: Application to Expand Field of Membership - Approved Texas Bay Credit Union, Houston, Texas - See Texas Register issue dated July 28, Application to Amend Articles of Incorporation - Approved West Texas Educators Credit Union, Odessa, Texas - See Texas Register issue dated July 28, CTECU, Bellaire, Texas - See Texas Register issue dated July 28, Credit Union of Texas, Dallas, Texas - See Texas Register issue dated August 25, Application of Out of State Branch - Approved TruWest Credit Union, Austin, Texas - See Texas Register issue dated July 28, TRD Harold E. Feeney Commissioner Credit Union Department Filed: September 20, 2017 Texas Education Agency Notice of Correction: Request for Applications Concerning the Transformation Zone Planning Grant Filing Authority. The availability of grant funds under Request for Applications (RFA) # is authorized by P.L , Elementary and Secondary Education Act of 1965, as amended by the Every Student Succeeds Act (ESSA), Title I, Part A, Section 1003, School Improvement. The Texas Education Agency (TEA) published Request for Applications Concerning the Transformation Zone Planning Grant in the September 15, 2017, issue of the Texas Register (42 TexReg 4829). TEA is amending the dates of the project, contact information, dates for submitting questions, date of publication for the Frequently Asked Questions (FAQ) document, and deadline for receipt of applications. The new start date of the grant is no earlier than January 15, 2018, and the new ending date is no later than July 13, Any and all questions relating to the RFA must now be submitted in writing to DSSI@tea.texas.gov no later than October 16, The FAQ document will now be published to the TEA Grant Opportunities web page by Monday, October 30, Applications must be received in the TEA Document Control Center by 5:00 p.m. (Central Time), Thursday, November 30, 2017, to be eligible to be considered for funding. TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Filed: September 20, 2017 Texas Commission on Environmental Quality Agreed Orders The Texas Commission on Environmental Quality (TCEQ, agency, or commission) staff is providing an opportunity for written public comment on the listed Agreed Orders (AOs) in accordance with Texas Water Code (TWC), TWC, requires that before the commission may approve the AOs, the commission shall allow the public an opportunity to submit written comments on the proposed AOs. TWC, requires that notice of the proposed orders and the opportunity to comment must be published in the Texas Register no later than the 30th day before the date on which the public comment period closes, which in this case is October 30, TWC, also requires that the commission promptly consider any written comments received and that the commission may withdraw or withhold approval of an AO if a comment discloses facts or considerations that indicate that consent is inappropriate, improper, inadequate, or inconsistent with the requirements of the statutes and rules within the commission's jurisdiction or the commission's orders and permits issued in accordance with the commission's regulatory authority. Additional notice of changes to a proposed AO is not required to be published if those changes are made in response to written comments. A copy of each proposed AO is available for public inspection at both the commission's central office, located at Park 35 Circle, Building C, 1st Floor, Austin, Texas 78753, (512) and at the applicable regional office listed as follows. Written comments about an AO should be sent to the enforcement coordinator designated for each AO at the commission's central office at P.O. Box 13087, Austin, Texas and must be received by 5:00 p.m. on October 30, Written comments may also be sent by facsimile machine to the enforcement coordinator at (512) The commission's enforcement coordinators are available to discuss the AOs and/or the comment procedure at the listed phone numbers; however, TWC, provides that comments on the AOs shall be submitted to the commission in writing. (1) COMPANY: BAHUBALI INVESTMENT INCORPORATED dba Bay City Chevron; DOCKET NUMBER: PST-E; IDEN- TIFIER: RN ; LOCATION: Bay City, Matagorda County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (c)(4) and TWC, (d), by failing to inspect and test the corrosion protection system for operability and adequacy of protection at a frequency of at least once every three years; and 30 TAC (b)(1)(A) and (d)(1)(b)(ii) and TWC, (c)(1), by failing to monitor the underground storage tanks for releases at a frequency of at least once every month, and failing to conduct reconciliation of detailed inventory control records at least once each month, in a manner sufficiently accurate to detect a release as small as the sum of 1.0% of the total substance flow-through for the month plus 130 gallons; PENALTY: $8,263; ENFORCEMENT CO- ORDINATOR: Ken Moller, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (2) COMPANY: BUCHANAN LAKE VILLAGE, INCORPO- RATED; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Llano, Llano County; TYPE OF FACIL- 42 TexReg 5256 September 29, 2017 Texas Register

73 ITY: public water supply; RULES VIOLATED: 30 TAC (b) and (a) and (c), by failing to mail or directly deliver one copy of the Consumer Confidence Report (CCR) to each bill paying customer by July 1st of each year, and failing to submit to the TCEQ by July 1st of each year a copy of the annual CCR and certification that the CCR has been distributed to the customers of the facility and that the information in the CCR is correct and consistent with compliance monitoring data for the year 2014; 30 TAC (c)(2)(B), (h), and (i)(1) and (c)(2)(A) and (f), by failing to collect lead and copper tap samples at the required five sample sites, have the samples analyzed, and report the results to the executive director (ED), and failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to collect lead and copper tap samples; 30 TAC (c)(2)(C), (h), and (i)(1), by failing to collect lead and copper tap samples at the required five sample sites, have the samples analyzed, and report the results to the ED; 30 TAC (c)(2)(A), (h), and (i)(1), by failing to collect lead and copper tap samples at the required five sample sites, have the samples analyzed, and report the results to the ED; 30 TAC (c)(2)(A) and (f), by failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to conduct routine distribution coliform monitoring, and the failure to submit the Disinfectant Level Quarterly Operating Report; and 30 TAC and TWC, , by failing to pay regulatory assessment fees for the TCEQ Public Utility Account regarding Certificate of Convenience and Necessity Number 11119; PENALTY: $2,101; ENFORCEMENT COORDINATOR: James Fisher, (512) ; REGIONAL OF- FICE: Park 35 Circle, Building A, Austin, Texas 78753, (512) (3) COMPANY: BUFFALO CHEVRON FOOD MART, IN- CORPORATED dba Chevron of Buffalo; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Buffalo, Freestone County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (b)(2) and TWC, (a), by failing to provide release detection for the pressurized piping associated with the underground storage tank system; PENALTY: $2,567; ENFORCEMENT COORDINATOR: Jonathan Nguyen, (512) ; REGIONAL OFFICE: 6801 Sanger Avenue, Suite 2500, Waco, Texas , (254) (4) COMPANY: Children's Medical Center of Dallas; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LO- CATION: Dallas, Dallas County; TYPE OF FACILITY: underground storage tank (UST) system and an emergency generator facility; RULES VIOLATED: 30 TAC (b)(2) and TWC, (a) and (b), by failing to provide release detection for the piping associated with the UST system; PENALTY: $2,438; ENFORCEMENT COOR- DINATOR: Melissa Castro, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (5) COMPANY: CHRISTIAN LIFE CENTER OF LUBBOCK; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Lubbock, Lubbock County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (d)(2)(A), (h), and (i)(2), by failing to collect one lead and copper sample from each of the facility's entry points, have the samples analyzed, and report the results to the executive director (ED) no later than 180 days after the end of the January 1, December 31, 2016, monitoring period during which the lead action level was exceeded; 30 TAC (f)(3), by failing to submit a recommendation to the ED for optimal corrosion control treatment within six months after the end of the January 1, December 31, 2016, monitoring period during which the lead action level was exceeded; and 30 TAC (g)(2)(A), by failing to submit a recommendation to the ED for source water treatment within 180 days after the end of the January 1, December 31, 2016, monitoring period during which the lead action level was exceeded; PENALTY: $265; ENFORCEMENT COORDINATOR: Ronica Rodriguez, (512) ; REGIONAL OFFICE: th Street, Suite 100, Lubbock, Texas , (806) (6) COMPANY: City of Blum; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LOCATION: Blum, Hill County; TYPE OF FACILITY: wastewater treatment facility; RULES VIOLATED: TWC, (a)(1), 30 TAC (1), and Texas Pollutant Discharge Elimination System Permit Number WQ , Effluent Limitations and Monitoring Requirements Number 1, by failing to comply with permitted effluent limitations; PENALTY: $2,750; Supplemental Environmental Project offset amount of $2,200; ENFORCEMENT COORDINATOR: Caleb Olson, (512) ; REGIONAL OFFICE: 6801 Sanger Avenue, Suite 2500, Waco, Texas , (254) (7) COMPANY: City of Fort Worth; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LOCATION: Fort Worth, Tarrant County; TYPE OF FACILITY: wastewater treatment facility; RULES VIOLATED: TWC, (a)(1), 30 TAC (1), and Texas Pollutant Discharge Elimination System Permit Number WQ , Permit Conditions Number 2.g, by failing to prevent an unauthorized discharge of wastewater from the collection system into or adjacent to water in the state; PENALTY: $12,750; ENFORCEMENT COORDINATOR: Farhaud Abbaszadeh, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (8) COMPANY: City of Roma; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Roma, Starr County; TYPE OF FACILITY: public water supply; RULES VIO- LATED: 30 TAC (e)(2) and (6) and (h)(2)(B) and (9), by failing to submit a Surface Water Monthly Operating Report with the required turbidity and disinfectant residual data to the executive director (ED) by the tenth day of the month following the end of the reporting period for February 2017; 30 TAC (c)(2)(C), (h), and (i)(1), by failing to collect lead and copper tap samples at the required 20 sample sites, have the samples analyzed, and report the results to the ED for the January 1, December 31, 2015, monitoring period; 30 TAC (c)(2)(B), (h), and (i)(1) and (c)(2)(A) and (f), by failing to collect lead and copper tap samples at the required 20 sample sites, have the samples analyzed, and report the results to the ED for the January 1, December 31, 2016, monitoring period, and failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to collect lead and copper tap samples for the January 1, December 31, 2016, monitoring period; and 30 TAC (c)(2)(A) and (f), by failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to monitor chlorite for the month of September 2015, and regarding the failure to submit a Total Organic Carbon Monthly Operating Report with the required total organic carbon and alkalinity sampling data to the ED each month by the tenth day of the month following the end of the reporting period during the first quarter of 2016; PENALTY: $1,251; ENFORCEMENT COORDINATOR: Ronica Rodriguez, (512) ; REGIONAL OFFICE: 1804 West Jefferson Avenue, Harlingen, Texas , (956) (9) COMPANY: Consolidated Metal Technologies, Incorporated; DOCKET NUMBER: MLM-E; IDENTIFIER: RN ; LOCATION: Round Rock, Williamson County; TYPE OF FACILITY: paint and metal finishing operation; RULES VIOLATED: TWC, (a)(1), by failing to prevent an unauthorized discharge into or adjacent to any water in the state; and 30 IN ADDITION September 29, TexReg 5257

74 TAC 213.4(a)(1), by failing to obtain of an Edwards Aquifer Protection Plan prior to commencing regulated activity over the Edwards Aquifer Transition Zone; PENALTY: $2,288; ENFORCEMENT COORDINATOR: Sandra Douglas, (512) ; REGIONAL OFFICE: Park 35 Circle, Building A, Austin, Texas 78753, (512) (10) COMPANY: DDMRK Management, Incorporated dba Rumpys; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Gainesville, Cooke County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (b)(1)(A) and (2) and TWC, (a) and (c)(1), by failing to monitor the underground storage tanks (USTs) for releases at a frequency of at least once every month, and failing to provide release detection for the pressurized piping associated with the UST system; and 30 TAC (b)(1)(B) and (c)(1), by failing to maintain UST records and make them immediately available for inspection upon request by agency personnel; PENALTY: $10,254; ENFORCEMENT COORDINATOR: Carlos Molina, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (11) COMPANY: HIREN BUSINESS INCORPORATED dba Fast N Go; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Houston, Harris County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (b)(1)(A) and (2) and TWC, (a) and (c)(1), by failing to monitor the underground storage tank (UST) for releases at a frequency of at least once every month, and failing to provide release detection for the pressurized piping associated with the UST system; PENALTY: $3,504; ENFORCEMENT COORDINA- TOR: Jonathan Nguyen, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (12) COMPANY: INVISTA S.a.r.l.; DOCKET NUMBER: WDW-E; IDENTIFIER: RN ; LOCATION: Victoria, Victoria County; TYPE OF FACILITY: industrial chemical manufacturing facility; RULES VIOLATED: 30 TAC (e), 40 Code of Federal Regulations (CFR) (c), and Underground Injection Control (UIC) Permit Number Waste Disposal Well (WDW) 105, Permit Provision (PP) VII.F. Operating Parameters, by failing to maintain an annulus pressure of at least 100 pounds per square inch greater than the injection tubing pressure to prevent leaks from the well into unauthorized zones and to detect well malfunctions; and 30 TAC (1) and (a), 40 CFR (f), and UIC Permit Number WDW 105, PP IX. Record Keeping Requirements, by failing to keep complete and accurate records of all monitoring; PENALTY: $3,151; EN- FORCEMENT COORDINATOR: Danielle Porras, (713) ; REGIONAL OFFICE: 6300 Ocean Drive, Suite 1200, Corpus Christi, Texas , (361) (13) COMPANY: J and S Water Company, L.L.C.; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LO- CATION: Houston, Harris County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (e)(4)(A) and (f)(3) and (c)(2)(A) and (f), by failing to submit a Disinfectant Level Quarterly Operating Report (DLQOR) to the executive director (ED) each quarter by the tenth day of the month following the end of the quarter, and failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to submit a DLQOR; 30 TAC (e)(4)(A) and (f)(3), by failing to timely submit a DLQOR to the ED each quarter by the tenth day of the month following the end of the quarter; 30 TAC (d)(4)(B) (formerly (c)(4)(B)) and (c)(2)(A) and (f), by failing to collect a raw groundwater source Escherichia coli (E.coli) sample from each active source within 24 hours of being notified of a distribution total coliform-positive result, and failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to collect a raw groundwater source E.coli sample; 30 TAC (c)(2)(C), (h), and (i)(1) and (c)(2)(A) and (f), by failing to collect lead and copper tap samples at the required ten sample sites, have the samples analyzed, and report the results to the ED, and failing to provide public notification and submit a copy of the public notification to the ED regarding the failure to collect lead and copper tap sample; and 30 TAC (i)(6) and (j), by failing to provide a consumer notification of lead tap water monitoring results to persons served at the sites that were tested, and failing to mail a copy of the consumer notification of tap results to the ED along with certification that the consumer notification has been distributed; PENALTY: $833; ENFORCEMENT COORDINATOR: Michaelle Garza, (210) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (14) COMPANY: Johnny T. Arroyos dba Johnny Arroyos RV Park; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Lubbock, Lubbock County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (b)(1) and (e)(2), by failing to provide disinfection facilities for the groundwater supply for the purpose of microbiological control and distribution protection; 30 TAC (e)(4)(A), by failing to operate the facility under the direct supervision of a licensed water works operator who holds a Class D or higher license; 30 TAC (c)(3)(O), by failing to provide all well units with intruder-resistant fences with lockable gates or locked and ventilated well houses to exclude possible contamination or damage to the facilities by trespassers; 30 TAC (c)(3)(J), by failing to provide a concrete sealing block that extends a minimum of three feet from the well casing in all directions with a minimum thickness of six inches and sloped to drain away at not less than 0.25 inch per foot at the facility's two wellheads; 30 TAC (c)(3)(N), by failing to provide a flow measuring device for the facility's two wells to measure production yields and provide for the accumulation of water production data; 30 TAC (n)(1), by failing to maintain accurate and up-to-date detailed as-built plans or record drawings and specifications for each treatment plant, pump station, and storage tank at the facility; and 30 TAC (n)(3), by failing to maintain copies of well completion data as defined in 30 TAC (c)(3)(A) for as long as the well remains in service; PENALTY: $2,297; ENFORCEMENT COORDINATOR: Yuliya Dunaway, (210) ; REGIONAL OFFICE: th Street, Suite 100, Lubbock, Texas , (806) (15) COMPANY: Lone Star Growers, L.P.; DOCKET NUMBER: WQ-E; IDENTIFIER: RN ; LOCATION: Troup, Smith County; TYPE OF FACILITY: plant nursery; RULE VIOLATED: TWC, (a)(1), by failing to prevent the unauthorized discharge of process wastewater into or adjacent to water in the state; PENALTY: $2,500; ENFORCEMENT COORDINATOR: Farhaud Abbaszadeh, (512) ; REGIONAL OFFICE: 2916 Teague Drive, Tyler, Texas , (903) (16) COMPANY: RCI HOLDINGS, INCORPORATED dba Ricks Cabaret; DOCKET NUMBER: PWS-E; IDEN- TIFIER: RN ; LOCATION: Odessa, Ector County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (d)(2)(A) (formerly (c)(2)(A)) and (c)(2)(A) and (f) and Texas Health and Safety Code, (d), by failing to collect routine distribution water samples for coliform analysis for the month of March 2016, and failing to issue public notification and submit a copy of the public notification to the executive director (ED) regarding the failure to collect routine distribution water samples for coliform analysis for the month of March 2016; and 30 TAC (c)(2)(A) and (f), by failing to 42 TexReg 5258 September 29, 2017 Texas Register

75 issue public notification and submit a copy of the public notification to the ED regarding the failure to collect routine distribution water samples for coliform analysis for the months of March 2015, April 2015, August 2015, September 2015, November 2015, and December 2015; PENALTY: $543; ENFORCEMENT COORDINATOR: Yuliya Dunaway, (210) ; REGIONAL OFFICE: 9900 West IH-20, Suite 100, Midland, Texas 79706, (432) (17) COMPANY: Strip Property Land and Water, LLC; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LO- CATION: Lubbock, Lubbock County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (f)(2) and Texas Health and Safety Code (THSC), (a), by failing to comply with the acute maximum contaminant level (MCL) of ten milligrams per liter (mg/l) for nitrate; and 30 TAC (f)(3)(C) and THSC, (c), by failing to comply with the MCL of mg/l for arsenic, based on the running annual average; PENALTY: $585; ENFORCEMENT COORDINATOR: Paige Bond, (512) ; REGIONAL OFFICE: th Street, Suite 100, Lubbock, Texas , (806) (18) COMPANY: Sweet Home Independent School District; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LO- CATION: Hallettsville, Lavaca County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (e)(2), (h), and (i)(3) and 40 Code of Federal Regulations and (a), by failing to conduct water quality parameter sampling at the facility's entry point and the required distribution sample site for the first six-month period following the January 1, December 31, 2015, monitoring period during which the lead action level was exceeded, have the samples analyzed, and report the results to the executive director (ED); 30 TAC (f)(3)(A) and (b)(2)(B) and (f), by failing to submit a recommendation to the ED for optimal corrosion control treatment within six months after the end of the January 1, December 31, 2015, monitoring period during which the lead action level was exceeded, and failing to issue public notification and submit a copy of the public notification to the ED regarding the failure to submit a recommendation to the ED for optimal corrosion control treatment; 30 TAC (f)(1)(A)(ii) and (i)(7), by failing to perform and submit a corrosion control study to identify optimal corrosion control treatment for the system within 12 months after the end of the January 1, December 31, 2015, monitoring period in which the system first exceeded the lead action level; and 30 TAC (i)(6) and (j), by failing to timely provide a consumer notification of lead tap water monitoring results to persons served at the sites that were tested, and failing to mail a copy of the consumer notification of tap results to the ED along with certification that the consumer notification has been distributed for the January 1, June 30, 2016, monitoring period; PENALTY: $350; ENFORCEMENT COORDINATOR: Jason Fraley, (512) ; REGIONAL OFFICE: 6300 Ocean Drive, Suite 1200, Corpus Christi, Texas , (361) (19) COMPANY: U.S. Venture, Incorporated; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Houston, Harris County; TYPE OF FACILITY: gasoline and diesel fuel storage terminal; RULES VIOLATED: 30 TAC (4) and (2), Texas Health and Safety Code (THSC), (b), and Federal Operating Permit (FOP) Number O3376, General Terms and Conditions (GTC), by failing to submit a Permit Compliance Certification no later than 30 days after the end of the certification period; and 30 TAC (4) and (2)(B) and (C), THSC, (b), and FOP Number O3376, GTC, by failing to submit a semiannual deviation report within 30 days after the end of each reporting period; PENALTY: $9,000; ENFORCEMENT COORDI- NATOR: Jason Fraley, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (20) COMPANY: Vishva, Incorporated dba Pac N Go 905; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LO- CATION: Martindale, Caldwell County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (b)(1)(A) and TWC, (c)(1), by failing to monitor the underground storage tanks for releases at a frequency of at least once every month; PENALTY: $3,000; ENFORCEMENT CO- ORDINATOR: Farhaud Abbaszadeh, (512) ; REGIONAL OFFICE: Park 35 Circle, Building A, Austin, Texas 78753, (512) TRD Gitanijali Yadav Acting Director, Litigation Division Texas Commission on Environmental Quality Filed: September 19, 2017 Enforcement Orders An agreed order was adopted regarding Aqua Utilities, Inc., Docket No PWS-E on September 19, 2017 assessing $999 in administrative penalties with $199 deferred. Information concerning any aspect of this order may be obtained by contacting Sarah Kim, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Alorica, Docket No PST-E on September 19, 2017 assessing $3,000 in administrative penalties with $600 deferred. Information concerning any aspect of this order may be obtained by contacting James Boyle, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Splendora Independent School District, Docket No MWD-E on September 19, 2017 assessing $5,625 in administrative penalties with $1,125 deferred. Information concerning any aspect of this order may be obtained by contacting Had Darling, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding CIRCLE K STORES INC., Docket No PST-E on September 19, 2017 assessing $5,625 in administrative penalties with $1,125 deferred. Information concerning any aspect of this order may be obtained by contacting Had Darling, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding D.N.D. CORPORATION dba Quick Stop Food Mart, Docket No PST-E on September 19, 2017 assessing $4,500 in administrative penalties with $900 deferred. Information concerning any aspect of this order may be obtained by contacting Had Darling, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Custom Rack LLC, Docket No AIR-E on September 19, 2017 assessing $2,750 in administrative penalties with $550 deferred. Information concerning any aspect of this order may be obtained by contacting Raime Hayes Falero, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Vega, Docket No PWS-E on September 19, 2017 assessing $732 in administrative penalties with $146 deferred. Information concerning any IN ADDITION September 29, TexReg 5259

76 aspect of this order may be obtained by contacting James Fisher, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding KATCHI, INC. dba Jiffy Mart 5, Docket No PST-E on September 19, 2017 assessing $5,567 in administrative penalties with $1,113 deferred. Information concerning any aspect of this order may be obtained by contacting John Paul Fennell, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Raymond W. Blair, Jr. dba Last Resort Properties, Docket No PWS-E on September 19, 2017 assessing $1,380 in administrative penalties with $276 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Pritul Investment Inc. dba Texaco Cedar Hill, Docket No PST-E on September 19, 2017 assessing $6,750 in administrative penalties with $1,350 deferred. Information concerning any aspect of this order may be obtained by contacting Jo Hunsberger, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Comfort Retail, Inc. dba Comfort Food Mart, Docket No PST-E on September 19, 2017 assessing $7,255 in administrative penalties with $1,451 deferred. Information concerning any aspect of this order may be obtained by contacting Rajesh Acharya, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding KASHI, INC. dba Garrison Food Mart, Docket No PST-E on September 19, 2017 assessing $5,001 in administrative penalties with $1,000 deferred. Information concerning any aspect of this order may be obtained by contacting Ken Moller, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding GAFFORD'S CHAPEL WA- TER SUPPLY CORPORATION, Docket No PWS-E on September 19, 2017 assessing $450 in administrative penalties with $90 deferred. Information concerning any aspect of this order may be obtained by contacting James Fisher, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Debbie Block, Docket No PWS-E on September 19, 2017 assessing $680 in administrative penalties with $136 deferred. Information concerning any aspect of this order may be obtained by contacting Epifanio Villarreal, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Gary Calasso dba Jumpin Jack Trash, Docket No MSW-E on September 19, 2017 assessing $5,693 in administrative penalties with $1,138 deferred. Information concerning any aspect of this order may be obtained by contacting Jonathan Nguyen, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Penelope, Docket No MWD-E on September 19, 2017 assessing $5,400 in administrative penalties with $1,080 deferred. Information concerning any aspect of this order may be obtained by contacting Melissa Castro, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding NOBLE BUSINESS INC. dba JS Food & News Store, Docket No PST-E on September 19, 2017 assessing $3,750 in administrative penalties with $750 deferred. Information concerning any aspect of this order may be obtained by contacting Keith Frank, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding 623 PASADENA, INC. dba Ashishs Store, Docket No PST-E on September 19, 2017 assessing $3,563 in administrative penalties with $712 deferred. Information concerning any aspect of this order may be obtained by contacting Ken Moller, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Jose E. Rapalo dba Cardinal Cleaners, Docket No MLM-E on September 19, 2017 assessing $5,677 in administrative penalties with $1,135 deferred. Information concerning any aspect of this order may be obtained by contacting Danielle Porras, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding NEW PROGRESS WATER SUPPLY CORPORATION, Docket No PWS-E on September 19, 2017 assessing $360 in administrative penalties with $72 deferred. Information concerning any aspect of this order may be obtained by contacting Steven Hall, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Forterra Pipe & Precast, LLC dba Forterra Pressure Pipe Grand Prairie, Docket No PST-E on September 19, 2017 assessing $3,750 in administrative penalties with $750 deferred. Information concerning any aspect of this order may be obtained by contacting Ken Moller, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding MHC TT, Inc., Docket No MWD-E on September 19, 2017 assessing $4,875 in administrative penalties with $975 deferred. Information concerning any aspect of this order may be obtained by contacting Ariel Ramirez, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding 4-D Water Company, LLC, Docket No PWS-E on September 19, 2017 assessing $1,802 in administrative penalties with $360 deferred. Information concerning any aspect of this order may be obtained by contacting James Fisher, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding FORT GATES WATER SUP- PLY CORPORATION, Docket No PWS-E on September 19, 2017 assessing $562 in administrative penalties with $112 deferred. Information concerning any aspect of this order may be obtained by contacting Michaelle Garza, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas TexReg 5260 September 29, 2017 Texas Register

77 An agreed order was adopted regarding ANNA ENTERPRISE, LLC dba Quick Food Mart, Docket No PST-E on September 19, 2017 assessing $4,500 in administrative penalties with $900 deferred. Information concerning any aspect of this order may be obtained by contacting Danielle Porras, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Sheridan Water Supply Corporation, Docket No MWD-E on September 19, 2017 assessing $6,750 in administrative penalties with $1,350 deferred. Information concerning any aspect of this order may be obtained by contacting Ariel Ramirez, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding TEXAS KOHINOOR INVESTMENTS, LLC dba Wildcat Express Sealy, Docket No PST-E on September 19, 2017 assessing $5,754 in administrative penalties with $1,150 deferred. Information concerning any aspect of this order may be obtained by contacting Ken Moller, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding River Recycling, LLC dba ReCommunity San Antonio, LLC, Docket No WQ-E on September 19, 2017 assessing $2,813 in administrative penalties with $562 deferred. Information concerning any aspect of this order may be obtained by contacting Cheryl Thompson, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Karnes City, Docket No PWS-E on September 19, 2017 assessing $740 in administrative penalties with $148 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Perry Hostetler dba Allrounder Dairy, Docket No AGR-E on September 19, 2017 assessing $1,713 in administrative penalties with $342 deferred. Information concerning any aspect of this order may be obtained by contacting Larry Butler, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Zion Rest Missionary Baptist Church, Docket No EAQ-E on September 19, 2017 assessing $1,875 in administrative penalties with $375 deferred. Information concerning any aspect of this order may be obtained by contacting Ronica Rodriguez, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Gorman, Docket No PWS-E on September 19, 2017 assessing $360 in administrative penalties with $72 deferred. Information concerning any aspect of this order may be obtained by contacting Steven Hall, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Marco A. Esquivel-Ojeda, Docket No LII-E on September 19, 2017 assessing $300 in administrative penalties with $60 deferred. Information concerning any aspect of this order may be obtained by contacting Steven Hall, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Llano County Municipal Utility District 1, Docket No PWS-E on September 19, 2017 assessing $215 in administrative penalties with $43 deferred. Information concerning any aspect of this order may be obtained by contacting Sarah Kim, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Bogata, Docket No PWS-E on September 19, 2017 assessing $840 in administrative penalties with $168 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Naples, Docket No PWS-E on September 19, 2017 assessing $385 in administrative penalties with $77 deferred. Information concerning any aspect of this order may be obtained by contacting Epifanio Villarreal, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Sabine River Authority of Texas, Docket No MWD-E on September 19, 2017 assessing $1,400 in administrative penalties with $280 deferred. Information concerning any aspect of this order may be obtained by contacting James Boyle, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Mountain Springs Water Supply Corporation, Docket No PWS-E on September 19, 2017 assessing $690 in administrative penalties with $138 deferred. Information concerning any aspect of this order may be obtained by contacting James Baldwin, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Lorenzo, Docket No PWS-E on September 19, 2017 assessing $600 in administrative penalties with $120 deferred. Information concerning any aspect of this order may be obtained by contacting Yuliya Dunaway, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding PURVI INVESTMENT, LLC dba PJ Mart, Docket No PST-E on September 19, 2017 assessing $2,497 in administrative penalties with $499 deferred. Information concerning any aspect of this order may be obtained by contacting John Paul Fennell, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding CARMAX AUTO SUPER- STORES, INC., Docket No PST-E on September 19, 2017 assessing $2,438 in administrative penalties with $487 deferred. Information concerning any aspect of this order may be obtained by contacting Claudia Corrales, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding FRONTIER TANK LINES, INC., Docket No PST-E on September 19, 2017 assessing $1,605 in administrative penalties with $321 deferred. Information concerning any aspect of this order may be obtained by contacting Benjamin Sakmar, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas IN ADDITION September 29, TexReg 5261

78 An agreed order was adopted regarding City of Edcouch, Docket No PWS-E on September 19, 2017 assessing $504 in administrative penalties with $100 deferred. Information concerning any aspect of this order may be obtained by contacting Epifanio Villarreal, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of La Joya, Docket No PWS-E on September 19, 2017 assessing $1,822 in administrative penalties with $364 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding MATTHEW ROAD WA- TER SUPPLY CORPORATION, Docket No PWS-E on September 19, 2017 assessing $550 in administrative penalties with $110 deferred. Information concerning any aspect of this order may be obtained by contacting Yuliya Dunaway, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding TSMT Properties LLC, Docket No PWS-E on September 19, 2017 assessing $1,400 in administrative penalties with $280 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Lubbock County Water Control and Improvement District No. 1, Docket No PWS-E on September 19, 2017 assessing $810 in administrative penalties with $162 deferred. Information concerning any aspect of this order may be obtained by contacting Jason Fraley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas A field citation was adopted regarding ICON Builders LLC, Docket No WQ-E on September 19, 2017 assessing $875 in administrative penalties. Information concerning any aspect of this citation may be obtained by contacting Cheryl Thompson, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Wolfe City, Docket No PWS-E on September 19, 2017 assessing $52 in administrative penalties with $10 deferred. Information concerning any aspect of this order may be obtained by contacting Sandra Douglas, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas A field citation was adopted regarding Thompson, Matthew, Docket No WOC-E on September 19, 2017 assessing $175 in administrative penalties. Information concerning any aspect of this citation may be obtained by contacting Abigail Lindsey, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Shakil Chowdhury dba Prime Stop 3, Docket No PST-E on September 20, 2017 assessing $21,144 in administrative penalties with $4,228 deferred. Information concerning any aspect of this order may be obtained by contacting Steven Van Landingham, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Charlotte, Docket No MWD-E on September 20, 2017 assessing $42,525 in administrative penalties with $8,505 deferred. Information concerning any aspect of this order may be obtained by contacting Ronica Rodriguez, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Earth, Docket No MWD-E on September 20, 2017 assessing $25,530 in administrative penalties with $5,106 deferred. Information concerning any aspect of this order may be obtained by contacting Had Darling, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Arman Management Corp. dba S&A Food Mart 2, Docket No PST-E on September 20, 2017 assessing $11,058 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Jess Robinson, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Water Necessities, Inc., Docket No PWS-E on September 20, 2017 assessing $1,089 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Sarah Kim, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Aqua Texas, Inc., Docket No MWD-E on September 20, 2017 assessing $10,500 in administrative penalties with $2,100 deferred. Information concerning any aspect of this order may be obtained by contacting Steven Van Landingham, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas A default order was adopted regarding Ramon Villa, Docket No LIC on September 20, Information concerning any aspect of this order may be obtained by contacting Jess Robinson, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Jack Turner dba Cherokee Mobile Home Park, Docket No PWS-E on September 20, 2017 assessing $4,730 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Audrey Liter, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Gulf Marine Fabricators, L.P., Docket No IHW-E on September 20, 2017 assessing $24,300 in administrative penalties with $4,860 deferred. Information concerning any aspect of this order may be obtained by contacting Keith Frank, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Deep Roots Recycling, Inc., Docket No SLG-E on September 20, 2017 assessing $10,125 in administrative penalties with $2,025 deferred. Information concerning any aspect of this order may be obtained by contacting Austin Henck, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas A default order was adopted regarding Randy L. Snapp dba Fredericksburg Kampgrounds of America, Docket No PWS-E on September 20, 2017 assessing $290 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Clayton Smith, Staff Attorney at (512) , Texas Com- 42 TexReg 5262 September 29, 2017 Texas Register

79 mission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Mountain Pure TX, L.L.C., Docket No PWS-E on September 20, 2017 assessing $256 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Lena Roberts, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Waco, Docket No WQ-E on September 20, 2017 assessing $5,775 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Sandra Douglas, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas TRD Bridget C. Bohac Chief Clerk Texas Commission on Environmental Quality Filed: September 20, 2017 Notice of Water Rights Application Notices issued August 25, 2017 APPLICATION NO C; Steve L. Holifield, Sr., P.O. Box 60910, Midland, Texas 79711, Applicant, seeks to amend his portion of Certificate of Adjudication No to add instream use and to change the place of use and diversion point on the San Saba River, Colorado River Basin in Menard County. The application and partial fees were received on January 29, Additional information and fees were received on March 13, May 2, July 7, November 2, November 6, 2014; December 15, 2015; and May 9, May 10, May 11, and December 13, The application was declared administratively complete and filed with the Office of the Chief Clerk on January 13, The Executive Director has completed the technical review of the application and prepared a draft amendment. The draft amendment, if granted, would contain special conditions including, but not limited to, the installation of screens on the diversion structure. The application, technical memoranda, and Executive Director s draft amendment are available for reviewing and copying at the Office of the Chief Clerk, Park 35 Circle, Bldg F., Austin, TX Written public comments and requests for a public meeting should be submitted to the Office of the Chief Clerk, at the address provided in the information section below by September 12, APPLICATION NO B; SRK Ranch, LLC, 1100 Camellia Blvd, Suite 101, Lafayette, Louisiana 70508, Applicant, seeks to amend its portion of Certificate of Adjudication No to add a diversion point on the Colorado River, Colorado River Basin, and change the place of use for agricultural purposes to irrigate land in San Saba County, Texas. The application and fees were received on August 10, Additional information was received on March 7 and October 11, The application was declared administratively complete and filed with the Office of the Chief Clerk on December 7, The Executive Director has completed the technical review of the application and prepared a draft amendment. The draft amendment, if granted, would include special conditions including, but not limited to, installing screens on the new diversion structure. The application, technical memoranda, and Executive Director s draft amendment are available for viewing and copying at the Office of the Chief Clerk, Park 35 Circle, Bldg. F., Austin, TX Written public comments and requests for a public meeting should be submitted to the Office of the Chief Clerk, at the address provided in the information section below by September 12, To view the complete issued notice, view the notice on our web site at or call the Office of the Chief Clerk at (512) to obtain a copy of the complete notice. When searching the web site, type in the issued date range shown at the top of this document to obtain search results. A public meeting is intended for the taking of public comment, and is not a contested case hearing. The Executive Director can consider approval of an application unless a written request for a contested case hearing is filed. To request a contested case hearing, you must submit the following: (1) your name (or for a group or association, an official representative), mailing address, daytime phone number, and fax number, if any; (2) applicant s name and permit number; (3) the statement (I/we) request a contested case hearing; and (4) a brief and specific description of how you would be affected by the application in a way not common to the general public. You may also submit any proposed conditions to the requested application which would satisfy your concerns. Requests for a contested case hearing must be submitted in writing to the TCEQ Office of the Chief Clerk at the address provided in the information section below. If a hearing request is filed, the Executive Director will not issue the requested permit and may forward the application and hearing request to the TCEQ Commissioners for their consideration at a scheduled Commission meeting. Written hearing requests, public comments or requests for a public meeting should be submitted to the Office of the Chief Clerk, MC 105, TCEQ, P.O. Box 13087, Austin, TX For information concerning the hearing process, please contact the Public Interest Counsel, MC 103, at the same address. For additional information, individual members of the general public may contact the Public Education Program at (800) General information regarding the TCEQ can be found at our web site at Si desea información en español, puede llamar al (800) TRD Bridget C. Bohac Chief Clerk Texas Commission on Environmental Quality Filed: September 20, 2017 Texas Ethics Commission List of Late Filers Below is a list from the Texas Ethics Commission naming the filers who failed to pay the penalty fine for failure to file the report, or filing a late report, in reference to the specified filing deadline. If you have any questions, you may contact Michelle Gonzales at (512) Deadline: 8-Day Pre-election Report due February 22, 2016, for Candidates and Officeholders Robert Cody Garrett, 901 E. 40th St., Apt. 104, Austin, Texas Deadline: Runoff Report due May 15, 2016, for Candidates and Officeholders Robert Cody Garrett, 901 E. 40th St., Apt. 104, Austin, Texas Deadline: Semiannual Report due July 15, 2016, for Candidates and Officeholders IN ADDITION September 29, TexReg 5263

80 Ricardo L. Ramos, 7706 Brykerwoods Dr., Houston, Texas Deadline: Semiannual Report due July 17, 2017, for Candidates and Officeholders Anthony Alcoser, 234 Ravenhill Dr., San Antonio, Texas Velma A. Arellano, P.O. Box 5025, McAllen, Texas Sandra Blankenship, P.O. Box 2717, Harker Heights, Texas Steven M. Cantu, 514 Emmett Ave., San Antonio, Texas Andy M. Chatham, 9804 Spirehaven Ln., Dallas, Texas Nicole D. Collier, P.O. Box 24241, Fort Worth, Texas Sandra Crenshaw, 2018 Lanark Ave., Dallas, Texas Lee Crisp, 6920 Fall Creek Hwy., Granbury, Texas LaTronda T. Darnell, 5641 Copper Creek, New Braunfels, Texas Francisco X. Dominguez, 500 E. San Antonio Ave., Rm. 1002, El Paso, Texas Kevin Story Downing, 7301 Fall Creek Hwy, Granbury, Texas Dawnna Dukes, 1103 Rutgers Dr., Pflugerville, Texas Gabriel D. Farias, 1122 Par Four, San Antonio, Texas John T. Floyd III, 2218 North Blvd., Houston, Texas Michael A. Franks, 1795 N. Fry Rd. #131, Katy, Texas Jose David Garza, 503 Miller Ave., Mission, Texas Michael D. Gibson, 911 Millpond Drive, Sugar Land, Texas Amber N. Givens-Davis, 3824 Cedar Springs Rd. #253, Dallas, Texas Ronald C. Green, P.O. Box 2726, Houston, Texas Ursula A. Hall, P.O. Box 2103, Houston, Texas Peter M. Kelly, 1005 Heights Blvd., Houston, Texas Kevin P. Ludlow, 1235 Broadmoor Dr., Austin, Texas Heather N. Marcus, 6115 Greenmere Pl., Dallas, Texas David M. Medina, 5300 Memorial Dr., Ste. 890, Houston, Texas Leif A. Olson, 4830 Wilson Rd., Ste. 300, PMB 188, Humble, Texas George L. Powell, 801 Congress, Ste. 350, Houston, Texas Ronald E. Reynolds, 6140 Hwy. 6 South, Ste. 233, Missouri City, Texas Osbert G. Rodriguez III, 1020 Dennet Rd., Brownsville, Texas Deborah B. Shafto, 7260 Santa Fe Dr., Houston, Texas Elizabeth R. Tarrant, 756 N. Barton St., Stephenville, Texas Emily G. Tobolowsky, George L. Allen, Sr. Courthouse, 600 Commerce St., Ste. 810, Dallas, Texas Nathan Webb, /2 Victor St., Dallas, Texas Lewis M. White, Cinco Ranch Blvd., Ste. H120 #144, Katy, Texas David Wylie, P.O. Box , Arlington, Texas Deadline: 30 Day Pre-election Report due February 1, 2016 for Committees Robert Cody Garrett, 427 PAC (Cody Garrett for RRC), FM 812, Del Valle, Texas Deadline: 8 Day Pre-election Report due February 22, 2016 for Committees Robert Cody Garrett, 427 PAC (Cody Garrett for RRC), FM 812, Del Valle, Texas Deadline: Runoff Report due May 16, 2016 for Committees Robert Cody Garrett, 427 PAC (Cody Garrett for RRC), FM 812, Del Valle, Texas ($500) Deadline: Semiannual Report due January 17, 2017 for Committees Kathy C. Flores, Lubbock Tejano Democrats, 2606 Purdue, Lubbock, Texas Deadline: 8 Day Pre-election Report due April 28, 2017 for Committees Lindsey G. Stringer, Texas Masonry Council PAC, P.O. Box 4278, Waco, Texas Deadline: Monthly Report due July 5, 2017 for Committees Rick Cloutier, Ardurra Group PAC, 2032 Buffalo Terrace, Houston, Texas Eloy A. Cortez, Houston ILA Dock & Marine Council PAC, 7524 Avenue N., Houston, Texas David E. Locke, Abilene Fire Fighters Association PAC, 604 Adams Rd., Stamford, Texas Bonita C. Ocampo, Tarrant County Tejano Democrats, 3803 S. Jones St., Fort Worth, Texas Douglas L. Varner, CDM Smith PAC, Westheimer Rd, Ste. 700, Houston, Texas Deadline: Semiannual Report due July 17, 2017 for Committees Rafael Alcoser, San Antonio Young Democrats, 3000 IH 10 West, San Antonio, Texas William Elliot Jr., Texas Card Players Assn. PAC, P.O. Box 26176, Austin, Texas Kathy C. Flores, Lubbock Tejano Democrats, 2606 Purdue, Lubbock, Texas Meghan E. Galvez, Duncanville CARE, 203 Timothy Trl., Duncanville, Texas Ralph B. Garcia, Our Astrodome, 115 Dresden St., Houston, Texas Emmanuel Loo, American Mexico Public Affairs, 600 Congress Ave., Floor 14th, Austin, Texas Dustin C. Mitchell, LIBERTY AND JUSTICE PAC, 8385 Canal St., Frisco, Texas Kimberly Pettit, Uptown PAC, 1600 Post Oak Blvd., Ste. 700, Houston, Texas Ryan Rowley, Southeast Republicans, Glen Bay Ct., Houston, Texas Bradley Sheppard, VOTE YES! PAC, P.O. Box 1359, Belton, Texas TexReg 5264 September 29, 2017 Texas Register

81 Michael Lee Steenbergen, Generationist Political Action Committee, 2208 Belaire Dr., Granite Shoals, Texas Michael Lee Steenbergen, Texas Democrats, 2208 Belaire Dr., Granite Shoals, Texas Lindsey G. Stringer, Texas Masonry Council PAC, P.O. Box 4278, Waco, Texas Veronica F. Thibideaux, Alief Federation of Teachers Committee on Political Education, 1269 Beechnut St., Ste. A600, Houston, Texas Skylor R. Williams, Conventional Wisdom, Inc. PAC, P.O. Box 9675, Austin, Texas TRD Seana Willing Executive Director Texas Ethics Commission Filed: September 14, 2017 General Land Office Notice and Opportunity to Comment on Requests for Consistency Agreement/Concurrence Under the Texas Coastal Management Program On January 10, 1997, the State of Texas received federal approval of the Coastal Management Program (CMP) (62 Federal Register pp Under federal law, federal agency activities and actions affecting the Texas coastal zone must be consistent with the CMP goals and policies identified in 31 TAC Chapter 501. Requests for federal consistency review were deemed administratively complete for the following project(s) during the period of August 25, 2017, through September 15, As required by federal law, the public is given an opportunity to comment on the consistency of proposed activities in the coastal zone undertaken or authorized by federal agencies. Pursuant to 31 TAC , , and , the public comment period extends 30 days from the date published on the Texas General Land Office website. The notice was published on the website on Friday, September 22, The public comment period for this project will close at 5:00 p.m. on Sunday, October 22, FEDERAL AGENCY ACTIONS: Applicant: Texas Department of Transportation-Beaumont District Location: Sabine River and Little Cypress Bayou, Orange, Orange County, Texas LATITUDE & LONGITUDE (NAD 83): Sabine River Crossing: North West; Little Cypress Bayou Crossing: North West Project Description: The applicant proposes to decommission two pipelines in place underneath two waters. There will be 288 linear feet of pipe remaining underneath the Sabine River and Little Cypress Bayou during the utility decommissioning in place a sewer line and water line. The estimated depth of the pipeline below the mud bottom is 5 feet. CMP Project No: F1 Type of Application: U.S. Army Corps of Engineers (USACE) permit application #SWG This application will be reviewed pursuant to Section 10 of the Rivers and Harbors Act of Applicant: Dale Corkran Location: Cow Bayou, Orange, Orange County, Texas LATITUDE & LONGITUDE (NAD 83): North West Project Description: The applicant proposes to construct a 4-foot wide by 14-foot long walkway, a 12-foot wide by 30-foot long deck above a 10-foot wide by 24-foot long boat slip, with an 8-foot wide by 16- foot long L-head pier with an 11-foot wide covered boat slip with a second 2-foot wide by 24-foot long walkway. The total dimensions for the structure is 44-feet long by 28-feet wide. CMP Project No: F1 Type of Application: U.S. Army Corps of Engineers (USACE) permit application #SWG This application will be reviewed pursuant to Section 10 of the Rivers and Harbors Act of Further information on the applications listed above, including a copy of the consistency certifications or consistency determinations for inspection, may be obtained from Mr. Jesse Solis, P.O. Box 12873, Austin, Texas , or via at federal.consistency@glo.texas.gov. Comments should be sent to Mr. Solis at the above address or by . TRD Anne L. Idsal Chief Clerk/Deputy Land Commissioner General Land Office Filed: September 20, 2017 Texas Health and Human Services Commission Notice of Public Hearing on Proposed Medicaid Payment Rates for Hospice Services Hearing. The Texas Health and Human Services Commission (HHSC) will conduct a public hearing on October 9, 2017, at 9:00 a.m., to receive public comment on proposed Medicaid payment rates for hospice dual routine home care, service intensity add-on, continuous home care, inpatient respite care, and general inpatient care services. The public hearing will be held in Room 5155 of the Brown-Heatly Building located at 4900 N. Lamar Boulevard, Austin, Texas. Entry is through Security at the main entrance of the building facing Lamar Boulevard. The hearing will be held in compliance with Texas Human Resources Code , which requires public notice of and hearings on proposed Medicaid reimbursements. Proposal. HHSC proposes to increase the payment rates for hospice dual routine home care, service intensity add-on, continuous home care, inpatient respite care, and general inpatient care services to be effective October 1, Methodology and Justification. The proposed payment rates were calculated in accordance with the hospice reimbursement methodology located at the Code of Federal Regulations, Title 42, Part 418, Subpart G. Briefing Package. A briefing package describing the proposed payment rates will be available at on or after September 29, Interested parties may obtain a copy of the briefing package before the hearing by contacting the HHSC Rate Analysis Department by telephone at (512) ; by fax at (512) ; or by at RAD-LTSS@hhsc.state.tx.us. The briefing package will also will be available at the public hearing. Written Comments. Written comments regarding the proposed payment rates may be submitted in lieu of, or in addition to, oral testimony until 5:00 p.m. the day of the hearing. Written comments may be sent by U.S. mail to the Texas Health and Human Services Commis- IN ADDITION September 29, TexReg 5265

82 sion, Rate Analysis Department, Mail Code H-400, P.O. Box , Austin, Texas ; by fax to Rate Analysis at (512) ; or by to In addition, written comments may be sent by overnight mail or hand delivered to the Texas Health and Human Services Commission, Rate Analysis Department, Mail Code H-400, Brown-Heatly Building, 4900 North Lamar Boulevard, Austin, Texas Persons with disabilities who wish to attend the hearing and require auxiliary aids or services should contact Rate Analysis by calling (512) at least 72 hours prior to the hearing so appropriate arrangements can be made. TRD Karen Ray Chief Counsel Texas Health and Human Services Commission Filed: September 19, 2017 Public Notice - Renewal of the Deaf Blind with Multiple Disabilities Waiver Program The Texas Health and Human Services Commission (HHSC) is submitting to the Centers for Medicare & Medicaid Services (CMS) a request for a renewal of the Deaf Blind with Multiple Disabilities (DBMD) waiver program, a waiver implemented under the authority of section 1915(c) of the Social Security Act. CMS has approved this waiver through February 28, The proposed effective date for the renewal is March 1, 2018, with no changes to cost neutrality. This renewal request proposes to make the following changes: HHSC is completing an overhaul to performance measures in all appendices in accordance with CMS assurance updates concerning participant health and welfare and other updates intended to enhance service delivery and provider accountability. Data collection methods are also enhanced for improved data quality. Making editorial corrections to acronyms, and terminology to ensure accurate terms are used. Appendix A Updating HHSC waiver contact information. Replacing references to the Department of Aging and Disability Services (DADS) with "HHSC" and removing language about Administrative Oversight due to the changes resulting from the transformation of the Texas Health and Human Services System. As part of the transformation, all of DADS's functions are the responsibility of HHSC as of September 1, Performance Measures in Appendix A, regarding HHSC administrative authority over DADS, is removed and reevaluated for placement in a different appendix. Additionally, the specific names of units and their responsibilities are revised to reflect changes resulting from transformation. Appendix B Amending the requirement to offer choice between institutional services and community-based waiver services to state that this activity occurs at enrollment and annually thereafter using the Verification of Freedom of Choice form. Updating waiver Medicaid eligibility group information to include the most accurate groups, types and regulations. Updating the Access to Services by Limited English Proficient Persons response to reference operational policy and changes resulting from the transformation. Adding "Promoting Independence" to the purpose of reserved capacity and amending the specifications to reflect that the reserved capacity is for individuals in any institution. Also revising the process and staff involved in transitioning an individual from an institution to the community. Updating interest list procedures for individuals who are in the military or military family members consistent with 40 TAC Clarifying the roles of parties in the level of care determination process to be consistent with current process. Unduplicated number of participants and point in time numbers for all waiver years were updated. Appendix C Updating the applicable limits on the amount, frequency or duration of services to include services that must be accessed through the State Plan or, for individuals under the age of 21, through the Early Periodic Screening, Diagnosis and Treatment. Updating the applicable limits on the amount, frequency or duration of services to include services that cannot be provided at the same time as Community First Choice Personal Assistance Services/Habilitation. Updating the Dental service definition to include administration of routine local anesthesia necessary for dental treatment. Non-routine sedation is already included in the Dental Sedation portion of the service. Updating the Adaptive Aids service description to include the following, "Temporary Lease/Rental of Medically Necessary Durable Medical Equipment is allowable during repair, purchase, or replacement of essential support system or while non-waiver resources review the medical necessity and shall not exceed 90 days." This change is consistent with 40 TAC Clarifying the responses regarding the Entity Responsible for Verification of Provider Qualifications in Appendix C. Indicating that Adaptive Aids may not be provided by a relative to be consistent with 40 TAC and policy of other 1915(c) waivers operated by HHSC. Updating the status of the HCB Settings Waiver Transition Plan response. Clarifying monitoring procedures, corrective action, frequency and scope for all DBMD provider types (assisted living facilities (ALF), Home and Community Support Services Agencies (HCSSA), intermediate care facility for individuals with an intellectual disability or related condition (ICF/IID), DBMD Provider agencies) Appendix D Clarifying language to reflect, where appropriate, that the individual, legally authorized representative, or both are included in service planning decisions. Amending language that the service plan is reviewed quarterly to state that the service plan is reviewed approximately every 90 days in accordance with the schedule in the DBMD Provider Manual, to be consistent with current policy. Clarifying person-centered language in Appendix D, Person-Centered Service Plan. Appendix E Making minor editorial changes to Appendix E, Participant Direction of Services, to be consistent with current policy. 42 TexReg 5266 September 29, 2017 Texas Register

83 Clarifying monitoring procedures, corrective action, frequency and scope for all DBMD provider types (ALF, HCSSA, ICF/IID, DBMD Provider agencies) Appendix F Revising fair hearing language to be consistent with current process. Appendix G Clarifying the accreditation for HCSSAs, the Accreditation Commission for Health Care, which surpasses licensure standards and removes the need for licensure monitoring. This change is consistent with 40 TAC, Part 1 Chapter 97. Providing additional information regarding safeguards around service plan development when a service provider who monitors and assists in the development of the service plan also provides other direct services, as is the case in the DBMD Program. Clarifying monitoring procedures, corrective action, frequency and scope for all DBMD provider types (ALF, HCSSA, ICF/IID, DBMD Provider agencies) Updating complaint reporting procedures due to transformation to reflect the ombudsman as the primary intake point. Updating the Department of Family and Protective Services (DFPS) to "HHSC Provider Investigations" and updating the investigation procedures consistent with Human Resources Code, Chapter 48, Subchapter F, including clarification of the process for individuals who are using the Consumer Directed Services option. Making revisions necessary to satisfy CMS recommendations in the final approved Interim Procedural Guidance report. Requiring DBMD program providers to have policies, procedures and a tracking system in place in order to ensure timely submission of the level of care to HHSC. Requiring providers to report critical incidents using an HHSC form which will be reviewed by HHSC staff to ensure appropriate action is taken. Requiring providers to submit an HHSC form after receiving a recommendation/report from DFPS regarding a confirmed instance of abuse, neglect or exploitation. The form details how the provider addressed the recommendations/report and is reviewed by HHSC staff to determine if appropriate remediation occurred. If not, HHSC will follow up to ensure appropriate action is taken. Improving performance measures and quality oversight. Appendix H Adding detailed information about the Quality Oversight Plan to Appendix H. Appendix I Clarifying monitoring procedures, corrective action, frequency and scope for all DBMD provider types (ALF, HSCSSA, ICF/IID, DBMD Provider agencies) Modifying the response to Appropriation of State Tax Revenues to a State Agency other than the Medicaid Agency in Appendix I to be consistent with language in other 1915(c) waivers. Appendix J Updating the unduplicated number of participants and cost projections for all five waiver years of the renewal. The Deaf Blind with Multiple Disabilities program serves individuals with legal blindness, deafness, or a condition that leads to deaf-blindness, and at least one additional disability that limits functional abilities. The program serves individuals in the community who would otherwise require care in an ICF/IID. An individual may obtain free copies of the proposed waiver renewal, including the DBMD settings transition plan, or if you have questions, need additional information, or wish to submit comments regarding this amendment or the DBMD settings transition plan, interested parties may contact Jacqueline Pernell by U.S. mail, telephone, fax, or . The addresses are as follows: U.S. Mail Texas Health and Human Services Commission Attention: Jacqueline Pernell, Waiver Coordinator, Policy Development Support P.O. Box Mail Code H-600 Austin, Texas Telephone (512) Fax Attention: Jacqueline Pernell, Waiver Coordinator, at (512) TX_Medicaid_Waivers@hhsc.state.tx.us. In addition, the HHSC local offices will post this notice for 30 days. The complete waiver renewal request can be found online on the HHSC website at TRD Karen Ray Chief Counsel Texas Health and Human Services Commission Filed: September 19, 2017 Department of State Health Services Order Placing Acetyl Fentanyl into Schedule I The Administrator of the Drug Enforcement Administration issued a final order maintaining the placement of acetyl fentanyl (N-(1-phenethylpiperidin-4-yl)-N-phenylacetamide) including its isomers, esters, ethers, salts and salts of isomers, esters, and ethers in schedule I of the Controlled Substances Act effective June 7, This final order was published in the June 7, 2017 Federal Register, Volume 82, Number 108, pages The Administrator has taken action based on the following. 1. Acetyl fentanyl has a high potential for abuse. 2. Acetyl fentanyl has no current accepted medical use in treatment in the United States. 3. There is a lack of accepted safety for use under medical supervision for acetyl fentanyl. Pursuant to Health and Safety Code, (g), as amended by the 75th legislature, of the Texas Controlled Substances Act, Health and Safety Code, Chapter 481, at least thirty-one days have expired since notice of the above referenced actions were published in the Federal Register; and, in the capacity as Commissioner of the Texas Depart- IN ADDITION September 29, TexReg 5267

84 ment of State Health Services, John Hellerstedt, M.D., does hereby order that the substance acetyl fentanyl be moved from Schedule I temporarily listed substances to Schedule I opiates. -SCHEDULE I Schedule I consists of: Schedule I opiates The following opiates, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, unless specifically accepted, if the existence of these isomers, esters, ethers, and salts is possible within the specific chemical designation: (1) Acetyl alpha methylfentanyl (N [1 (1 methyl 2 phenethyl) 4 piperidinyl] N phenylacetamide); (2) AH-7921 (3,4-dichloro-N-[(dimethylamino)cyclohexymethyl]benzamide)); *(3) Acetyl fentanyl (N-(1-phenethylpiperindin-4-yl)-N-phenylacetamide); (4) Allylprodine; (5) Alphacetylmethadol (except levo-alphacetylmethadol, also known as levo-alpha-acetylmethadol, levomethadyl acetate, or LAAM); (6) Alpha methylfentanyl or any other derivative of Fentanyl; (7) Alpha methylthiofentanyl (N [1 methyl 2 (2 thienyl) ethyl 4 piperidinyl] N- phenyl-propanamide); (8) Benzethidine; (9) Beta hydroxyfentanyl (N [1 (2 hydroxy 2 phenethyl) 4 piperidinyl] N phenyl-propanamide); (10) Beta hydroxy 3 methylfentanyl (N [1 (2 hydroxy 2 phenethyl) 3 methyl 4 piperidinyl] N phenylpropanamide); (11) Betaprodine; (12) Clonitazene; (13) Diampromide; (14) Diethylthiambutene; (15) Difenoxin; (16) Dimenoxadol; (17) Dimethylthiambutene; (18) Dioxaphetyl butyrate; (19) Dipipanone; (20) Ethylmethylthiambutene; (21) Etonitazene; (22) Etoxeridine; (23) Furethidine; (24) Hydroxypethidine; (25) Ketobemidone; (26) Levophenacylmorphan; (27) Meprodine; (28) Methadol; (29) 3 methylfentanyl (N [3 methyl 1 (2 phenylethyl) 4 piperidyl] N phenylpropanamide), its optical and geometric isomers; (30) 3 methylthiofentanyl (N [3 methyl 1 (2 thienyl)ethyl 4 piperidinyl] N phenylpropanamide); (31) Moramide; (32) Morpheridine; (33) MPPP (1 methyl 4 phenyl 4 propionoxypiperidine); (34) Noracymethadol; (35) Norlevorphanol; (36) Normethadone; (37) Norpipanone; (38) Para fluorofentanyl (N (4 fluorophenyl) N [1 (2 phenethyl)-4 piperidinyl]- propanamide); (39) PEPAP (1 (2 phenethyl) 4 phenyl 4 acetoxypiperidine); (40) Phenadoxone; (41) Phenampromide; (42) Phencyclidine; (43) Phenomorphan; (44) Phenoperidine; (45) Piritramide; (46) Proheptazine; (47) Properidine; (48) Propiram; (49) Thiofentanyl (N phenyl N [1 (2 thienyl)ethyl 4 piperidinyl] propanamide); (50) Tilidine; and (51) Trimeperidine. -Schedule I opium derivatives No amendment -Schedule I hallucinogenic substances No amendment -Schedule I stimulants No amendment -Schedule I depressants No amendment -Schedule I Cannabimimetic agents No amendment -Schedule I temporarily listed substances subject to emergency scheduling by the United States Drug Enforcement Administration. No amendment Changes to the schedules are marked with an asterisk (*). TRD Barbara L. Klein Interim General Counsel Department of State Health Services Filed: September 20, TexReg 5268 September 29, 2017 Texas Register

85 Texas Department of Housing and Community Affairs Notice of Public Hearing on the Section 8 Program 2018 Streamlined Annual Public Housing Agency Plan for the Housing Choice Voucher Program Section 511 of Title V of the Quality Housing and Work Responsibility Act of 1998 (P. L ) requires the Texas Department of Housing and Community Affairs (the Department) to prepare a 2018 Streamlined Annual Public Housing Agency ("PHA") Plan for the Housing Choice Voucher Program. Title 24, of the Code of Federal Regulations requires that the Department conduct a public hearing regarding that plan. The Department will hold a public hearing to receive oral and written comments for the development of the Department's 2018 Streamlined Annual Public Housing Agency ("PHA") Plan for the Housing Choice Voucher Program. The hearing will take place at the following time and location: Monday, October 23, 2017 Texas Department of Housing and Community Affairs 221 East 11th Street, Room 116 Austin, Texas :00 p.m. - 4:00 p.m. The proposed 2018 Streamlined Annual Public Housing Agency ("PHA") Plan for the Housing Choice Voucher Program and all supporting documentation are available to the public for viewing at the Department's main office, 221 East 11th Street, Attn: Section 8 Program, Austin, Texas from September 10, October 23, 2017, on weekdays during the hours of 8:00 a.m. until 4:30 p.m. The proposed plan will also be available for viewing on the Department's website at: Any interested persons unable to attend the hearing may submit written comments by to Andre Adams, Section 8 Program Manager, and Community Affairs Division at andre.adams@tdhca.state.tx.us or by mail to P.O. Box 13941, Austin, Texas Comments must be received by 5:00 p.m. Monday, October 23, Questions or requests for additional information may be directed to Andre Adams by calling (512) or the listed above. Individuals who require a language interpreter for the hearing should contact Ms. Nicole Kruger, ADA responsible employee at (512) or Relay Texas at (800) at least two days prior to the hearing date. Personas que hablan español y requieren un intérprete, favor de llamar a Elena Peinado al siguiente número (512) por lo menos tres días antes de la junta para hacer los preparativos apropiados. Individuals who require auxiliary aids or services for this hearing should contact Nicole Kruger at (512) or Relay Texas at (800) at least 2 days before the scheduled hearing so that appropriate arrangements can be made. TRD Timothy K. Irvine Executive Director Texas Department of Housing and Community Affairs Filed: September 14, 2017 University of Houston System Business and Service Review of Bookstore Contract Notice of Procurement The University of Houston System announces a Request for Proposal (RFP) for consultant services pursuant to Government Code, Chapter 2254, Subchapter B. RFP , Business and Service Review of Bookstore Contract Purpose: The University of Houston System (UHS) Campus Services Department is seeking competitive responses to a Request for Proposal ("RFP") for a Consultant to provide an independent analysis of its bookstore contract, including course material adoption practices, contract management practices, and review and recommendation of performance indicators. Eligible Applicants: Consulting firms with related knowledge and experience in: Firms that have expertise with evaluating university bookstore management agreements. Services to be performed: an independent, comprehensive evaluation of the System bookstore contract guidance and assistance in any potential service and technology enhancements related to the bookstore contract guidance to the university regarding the business operations of its bookstore contract, including a review of contract oversight, such as commission reconciliations, accounting practices, and contract management relative to current terms in the agreement development of a comprehensive five year business plan and pro forma for the business operation of the bookstore contract development of performance indicators that can be used to monitor contract performance from a university perspective and be easily incorporated into our contract management software guidance for management policies, procedures, and systems, including support in the event of a potential re-bidding of the System bookstore contract recommendations to the university including advice for future contract length and terms, as well as financial and operational advice related to this agreement and its oversight. Finding by Chief Executive Officer, Renu Khator: After reviewing the current status and discussing this matter with the staff, the evaluation of these services can only be conducted by a firm considered expert in university bookstore management contracts. The university believes that using a third-party consultant, who has conducted similar evaluations of bookstore management agreements on national campuses similar in context and size to the University, will provide the institution with best practices that can be used to improve the service to our customers. Similarly, in this era of financial accountability, it is important for the University to understand if this service is providing best value to its customers and constituents. The expertise needed for this evaluation is complex and requires a comprehensive knowledge of national industry trends related to bookstore management agreements. Currently, the staff do not have the breadth of experience needed for this evaluation. Thus, it is necessary for the University to engage a consultant to advise and review its existing bookstore management agreement, and make recommendations, as appropriate for the improvement of these services. Review and Award Criteria: IN ADDITION September 29, TexReg 5269

86 All proposals will be evaluated by appointed representatives of the University in accordance with the following procedures: 1. Purchasing will receive and review each RFP proposal to ensure it meets the requirements of the RFP. Qualified proposals will be given to the selection committee. 2. Each member of the selection committee will independently evaluate the qualified proposals according to the criteria in section IX of the RFP, except for price, and send their evaluations to Purchasing. Price will be evaluated by Project Manager. 3. Purchasing will combine the committee's scores to determine which proposal received the highest combined score. 4. Purchasing will notify the respondent with the highest score that the University intends to contract with them. Deadlines: UH must receive proposals according to instructions in the RFP package on or before Tuesday, October 31, 2017, at 11:00 a.m. CDT and the HUB Subcontracting Plan (HSP) on or before Wednesday, November 1, 2017, at 11:00 a.m. CDT. Obtaining a copy of the RFP: Copies will be available on the Electronic State Business Daily (ESBD) at The sole point of contact for inquiries concerning RFP is: Jack Tenner UH Purchasing 5000 Gulf Freeway, ERP 1, Rm. 204 Houston, Texas Phone: (713) jdtenner@central.uh.edu TRD Jackie D. Tenner Director of Purchasing University of Houston System Filed: September 15, 2017 Texas Department of Licensing and Regulation Correction of Error The Texas Department of Licensing and Regulation proposed new 16 TAC in the September 15, 2017, issue of the Texas Register (42 TexReg 4744). Due to a Texas Register editing error, the text of was published incorrectly. The section should read as follows: Reporting Requirements. (a) For purposes of this paragraph "Market" means the legal boundaries of a municipality as defined in Section of the Local Government Code or the metropolitan statistical area as defined by the Office of Management and Budget. (b) A permit holder must electronically file the following reports with the department: (1) Disability Compliance Report. A report under this paragraph must include: (A) Criteria for determining the four largest markets that the transportation company operates in this state; (i) Identify the market(s) the transportation network company implemented the Accessibility Pilot Program; and (ii) Explain the reason(s) for selecting the market(s) that the transportation network company used to implement the Accessibility Pilot Program. (B) The services offered to disabled persons, including disabled persons using a fixed-frame wheelchair. (C) A step-by-step explanation demonstrating the process for an individual to join and utilize the accessibility functions of their transportation network service Accessibility Pilot Program. (D) A detailed plan that ensures referrals to alternate providers of fixedframe wheelchair-accessible service are made in a manner that does not unreasonably delay the provision of service. The detailed plan must at a minimum: (i) explain why the alternate provider of fixed-frame wheelchair-accessible service will not cause unreasonable delay in service; (ii) include the initial number of alternate providers; (iii) provide the average number of vehicles equipped to provide fixed-frame wheelchair-accessible service and available to each alternate provider; (iv) state the hours each alternate provider of fixed frame wheelchairaccessible service is available for service; and (v) describe the procedures to monitor and ensure alternate providers meet and maintain service levels that do not unreasonably delay fixedframe wheelchair-accessible service. (E) A report submitted under this subsection that fails to demonstrate compliance will be considered incomplete and subject to correction and resubmission. (F) The report must contain a table of contents with each section of the report marked to identify the content cross referenced to each paragraph and subparagraph of this section. (2) Accessibility Pilot Program Report. (A) The report required by this paragraph must be aggregated in ninety (90) day increments. The report must include final values for the entire period of the Accessibility Pilot Program and at a minimum include: (i) The number of vehicles equipped to accommodate a passenger with a fixed-frame wheelchair that were available through the company's digital network in the pilot program market. (ii) The number of fixed-frame wheelchair requests. (iii) The number of rides provided to fixed-frame wheelchair-bound passengers. (iv) The number of rides not provided to fixed-frame wheelchair-bound passengers by the permit holder or its alternate provider. (v) Percentage of total fixed-frame wheelchair requests provided by the zip code for the passengers requested pick-up location. (vi) Percentage of total fixed-frame wheelchair requests provided by the zip code for the passengers requested drop-off location. (vii) Percentage of fixed-frame wheelchair requests provided by the time of day, delineated by hour. (B) The number of instances in which the company referred a fixedframe wheelchair-bound passenger to an alternate provider because the passenger could not be accommodated by the company. (C) Average wait times for Accessibility Pilot Program market area. The permit holder must track and report by zip code the average time elapsed between the time a passenger initially requested a ride and the time the ride began for each: 42 TexReg 5270 September 29, 2017 Texas Register

87 (i) fixed-frame wheelchair-bound passenger serviced by the permit holder; (ii) fixed-frame wheelchair-bound passenger referred to an alternate provider; and (iii) non-wheelchair accessible requested ride. TRD Texas Lottery Commission Scratch Ticket Game Number 2005 "Reindeer Riches" 1.0 Name and Style of Scratch Ticket Game. A. The name of Scratch Ticket Game No is "REINDEER RICHES". The play style is "key symbol match". 1.1 Price of Scratch Ticket Game. A. The price for Scratch Ticket Game No shall be $1.00 per Scratch Ticket. 1.2 Definitions in Scratch Ticket Game No A. Display Printing - That area of the Scratch Ticket outside of the area where the overprint and Play Symbols appear. B. Latex Overprint - The removable scratch-off covering over the Play Symbols on the front of the Scratch Ticket. C. Play Symbol - The printed data under the latex on the front of the Scratch Ticket that is used to determine eligibility for a prize. Each Play Symbol is printed in Symbol font in black ink in positive except for dual-image games. The possible black Play Symbols are: BELLS SYMBOL, CANDLE SYMBOL, CANDY CANE SYMBOL, COOKIE SYMBOL, SNOWFLAKE SYMBOL, GIFT SYMBOL, LIGHTS SYMBOL, SNOWMAN SYMBOL, STOCKING SYM- BOL, SUN SYMBOL, TREE SYMBOL, WREATH SYMBOL, REINDEER SYMBOL, SLEIGH SYMBOL, $1.00, $2.00, $5.00, $10.00, $20.00, $50.00, $100 and $500. D. Play Symbol Caption - The printed material appearing below each Play Symbol which explains the Play Symbol. One caption appears under each Play Symbol and is printed in caption font in black ink in positive. The Play Symbol Caption which corresponds with and verifies each Play Symbol is as follows: IN ADDITION September 29, TexReg 5271

88 E. Serial Number - A unique 13 (thirteen) digit number appearing under the latex scratch-off covering on the front of the Scratch Ticket. The Serial Number is for validation purposes and cannot be used to play the game. The format will be: F. Bar Code - A 24 (twenty-four) character interleaved two (2) of five (5) Bar Code which will include a four (4) digit game ID, the seven (7) digit Pack number, the three (3) digit Scratch Ticket number and the ten (10) digit Validation Number. The Bar Code appears on the back of the Scratch Ticket. G. Pack-Scratch Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (2005), a seven (7) digit Pack number, and a three (3) digit Scratch Ticket number. Scratch Ticket numbers start with 001 and end with 150 within each Pack. The format will be: H. Pack - A Pack of the "REINDEER RICHES" Scratch Ticket Game contains 150 Tickets, packed in plastic shrink-wrapping and fanfolded in pages of one (1). Ticket 001 will be shown on the front of the Pack; the back of Ticket 150 will be revealed on the back of the Pack. All Packs will be tightly shrink-wrapped. There will be no breaks between the Tickets in a Pack. Every other Pack will reverse i.e., reverse order will be: the back of Ticket 001 will be shown on the front of the Pack and the front of Ticket 150 will be shown on the back of the Pack. I. Non-Winning Scratch Ticket - A Scratch Ticket which is not programmed to be a winning Scratch Ticket or a Scratch Ticket that does not meet all of the requirements of these Game Procedures, the State Lottery Act (Texas Government Code, Chapter 466), and applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC, Chapter 401. J. Scratch Ticket Game, Scratch Ticket or Ticket - Texas Lottery "REINDEER RICHES" Scratch Ticket Game No Determination of Prize Winners. The determination of prize winners is subject to the general Scratch Ticket validation requirements set forth in Texas Lottery Rule , Instant Game Rules, these Game Procedures, and the requirements set out on the back of each Scratch Ticket. A prize winner in the "REINDEER RICHES" Scratch Ticket Game is determined once the latex on the Scratch Ticket is scratched off to expose 13 (thirteen) Play Symbols. If a player reveals eight (8) "REINDEER" Play Symbols, the player wins the PRIZE. If a player re- 42 TexReg 5272 September 29, 2017 Texas Register

89 veals a "SLEIGH" Play Symbol, the player wins DOUBLE the PRIZE instantly! No portion of the Display Printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Scratch Ticket. 2.1 Scratch Ticket Validation Requirements. A. To be a valid Scratch Ticket, all of the following requirements must be met: 1. Exactly 13 (thirteen) Play Symbols must appear under the Latex Overprint on the front portion of the Scratch Ticket; 2. Each of the Play Symbols must have a Play Symbol Caption underneath, unless specified, and each Play Symbol must agree with its Play Symbol Caption; 3. Each of the Play Symbols must be present in its entirety and be fully legible; 4. Each of the Play Symbols must be printed in black ink except for dual image games; 5. The Scratch Ticket shall be intact; 6. The Serial Number, Retailer Validation Code and Pack-Scratch Ticket Number must be present in their entirety and be fully legible; 7. The Serial Number must correspond, using the Texas Lottery's codes, to the Play Symbols on the Scratch Ticket; 8. The Scratch Ticket must not have a hole punched through it, be mutilated, altered, unreadable, reconstituted or tampered with in any manner; 9. The Scratch Ticket must not be counterfeit in whole or in part; 10. The Scratch Ticket must have been issued by the Texas Lottery in an authorized manner; 11. The Scratch Ticket must not have been stolen, nor appear on any list of omitted Scratch Tickets or non-activated Scratch Tickets on file at the Texas Lottery; 12. The Play Symbols, Serial Number, Retailer Validation Code and Pack-Scratch Ticket Number must be right side up and not reversed in any manner; 13. The Scratch Ticket must be complete and not miscut, and have exactly 13 (thirteen) Play Symbols under the Latex Overprint on the front portion of the Scratch Ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Scratch Ticket Number on the Scratch Ticket; 14. The Serial Number of an apparent winning Scratch Ticket shall correspond with the Texas Lottery's Serial Numbers for winning Scratch Tickets, and a Scratch Ticket with that Serial Number shall not have been paid previously; 15. The Scratch Ticket must not be blank or partially blank, misregistered, defective or printed or produced in error; 16. Each of the 13 (thirteen) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures; 17. Each of the 13 (thirteen) Play Symbols on the Scratch Ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the Scratch Ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Scratch Ticket Number must be printed in the Pack-Scratch Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery; 18. The Display Printing on the Scratch Ticket must be regular in every respect and correspond precisely to the artwork on file at the Texas Lottery; and 19. The Scratch Ticket must have been received by the Texas Lottery by applicable deadlines. B. The Scratch Ticket must pass all additional validation tests provided for in these Game Procedures, the Texas Lottery's Rules governing the award of prizes of the amount to be validated, and any confidential validation and security tests of the Texas Lottery. C. Any Scratch Ticket not passing all of the validation requirements is void and ineligible for any prize and shall not be paid. However, the Executive Director may, solely at the Executive Director's discretion, refund the retail sales price of the Scratch Ticket. In the event a defective Scratch Ticket is purchased, the only responsibility or liability of the Texas Lottery shall be to replace the defective Scratch Ticket with another unplayed Scratch Ticket in that Scratch Ticket Game (or a Scratch Ticket of equivalent sales price from any other current Texas Lottery Scratch Ticket Game) or refund the retail sales price of the Scratch Ticket, solely at the Executive Director's discretion. Programmed Game Parameters. A. Consecutive Non-Winning Tickets in a Pack will not have matching play data, spot for spot. B. There will always be at least two (2) "REINDEER" (RNDEER) Play Symbols in the first row. C. There will always be a "REINDEER" (RNDEER) Play Symbol in the last spot in the third row on all Tickets. D. The "SLEIGH" (DOUBLE) Play Symbol will only appear once on intended winning tickets as dictated by the prize structure. E. Winning Tickets with the "SLEIGH" (DOUBLE) Play Symbol will never have more than six (6) "REINDEER" (RNDEER) Play Symbols. F. There will not be any matching non-winning Play Symbols, with the exception of the "REINDEER" (RNDEER) Play Symbol, on a Ticket. G. There will never be more than eight (8) "REINDEER" (RNDEER) Play Symbols on a Ticket. H. A Ticket can only win one (1) time. 2.3 Procedure for Claiming Prizes. A. To claim a "REINDEER RICHES" Scratch Ticket Game prize of $1.00, $2.00, $4.00, $5.00, $10.00, $20.00, $40.00, $50.00, $100 or $500, a claimant shall sign the back of the Scratch Ticket in the space designated on the Scratch Ticket and present the winning Scratch Ticket to any Texas Lottery Retailer. The Texas Lottery Retailer shall verify the claim and, if valid, and upon presentation of proper identification, if appropriate, make payment of the amount due the claimant and physically void the Scratch Ticket; provided that the Texas Lottery Retailer may, but is not required, to pay a $40.00, $50.00, $100 or $500 Scratch Ticket Game. In the event the Texas Lottery Retailer cannot verify the claim, the Texas Lottery Retailer shall provide the claimant with a claim form and instruct the claimant on how to file a claim with the Texas Lottery. If the claim is validated by the Texas Lottery, a check shall be forwarded to the claimant in the amount due. In the event the claim is not validated, the claim shall be denied and the claimant shall be notified promptly. A claimant may also claim any of the above prizes under the procedure described in Section 2.3.B and Section 2.3.C of these Game Procedures. B. As an alternative method of claiming a "REINDEER RICHES" Scratch Ticket Game prize, the claimant must sign the winning Scratch Ticket, thoroughly complete a claim form, and mail both to: Texas Lot- IN ADDITION September 29, TexReg 5273

90 tery Commission, P.O. Box 16600, Austin, Texas The Texas Lottery is not responsible for Scratch Tickets lost in the mail. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly. C. Prior to payment by the Texas Lottery of any prize, the Texas Lottery shall deduct: 1. A sufficient amount from the winnings of a prize winner who has been finally determined to be: a. delinquent in the payment of a tax or other money to a state agency and that delinquency is reported to the Comptroller under Government Code ; b. in default on a loan made under Chapter 52, Education Code; or c. in default on a loan guaranteed under Chapter 57, Education Code; and 2. delinquent child support payments from the winnings of a prize winner in the amount of the delinquency as determined by a court or a Title IV-D agency under Chapter 231, Family Code. D. If a person is indebted or owes delinquent taxes to the State, other than those specified in the preceding paragraph, the winnings of a person shall be withheld until the debt or taxes are paid. 2.4 Allowance for Delay of Payment. The Texas Lottery may delay payment of the prize pending a final determination by the Executive Director, under any of the following circumstances: A. if a dispute occurs, or it appears likely that a dispute may occur, regarding the prize; B. if there is any question regarding the identity of the claimant; C. if there is any question regarding the validity of the Scratch Ticket presented for payment; or D. if the claim is subject to any deduction from the payment otherwise due, as described in Section 2.3.D of these Game Procedures. No liability for interest for any delay shall accrue to the benefit of the claimant pending payment of the claim. 2.5 Payment of Prizes to Persons Under 18. If a person under the age of 18 years is entitled to a cash prize under $600 from the "REINDEER RICHES" Scratch Ticket Game, the Texas Lottery shall deliver to an adult member of the minor's family or the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor. 2.6 If a person under the age of 18 years is entitled to a cash prize of $600 or more from the "REINDEER RICHES" Scratch Ticket Game, the Texas Lottery shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor. 2.7 Scratch Ticket Claim Period. All Scratch Ticket prizes must be claimed within 180 days following the end of the Scratch Ticket Game or within the applicable time period for certain eligible military personnel as set forth in Texas Government Code Any rights to a prize that is not claimed within that period, and in the manner specified in these Game Procedures and on the back of each Scratch Ticket, shall be forfeited. 2.8 Disclaimer. The number of prizes in a game is approximate based on the number of Scratch Tickets ordered. The number of actual prizes available in a game may vary based on number of Scratch Tickets manufactured, testing, distribution, sales and number of prizes claimed. A Scratch Ticket Game may continue to be sold even when all the top prizes have been claimed. 3.0 Scratch Ticket Ownership. A. Until such time as a signature is placed upon the back portion of a Scratch Ticket in the space designated, a Scratch Ticket shall be owned by the physical possessor of said Scratch Ticket. When a signature is placed on the back of the Scratch Ticket in the space designated, the player whose signature appears in that area shall be the owner of the Scratch Ticket and shall be entitled to any prize attributable thereto. Notwithstanding any name or names submitted on a claim form, the Executive Director shall make payment to the player whose signature appears on the back of the Scratch Ticket in the space designated. If more than one name appears on the back of the Scratch Ticket, the Executive Director will require that one of those players whose name appears thereon be designated by such players to receive payment. B. The Texas Lottery shall not be responsible for lost or stolen Scratch Tickets and shall not be required to pay on a lost or stolen Scratch Ticket. 4.0 Number and Value of Scratch Ticket Prizes. There will be approximately 9,000,000 Scratch Tickets in Scratch Ticket Game No The approximate number and value of prizes in the game are as follows: 42 TexReg 5274 September 29, 2017 Texas Register

91 A. The actual number of Scratch Tickets in the game may be increased or decreased at the sole discretion of the Texas Lottery Commission. 5.0 End of the Scratch Ticket Game. The Executive Director may, at any time, announce a closing date (end date) for the Scratch Ticket Game No without advance notice, at which point no further Scratch Tickets in that game may be sold. The determination of the closing date and reasons for closing will be made in accordance with the Scratch Ticket closing procedures and the Instant Game Rules. See 16 TAC (j). 6.0 Governing Law. In purchasing a Scratch Ticket, the player agrees to comply with, and abide by, these Game Procedures for Scratch Ticket Game No. 2005, the State Lottery Act (Texas Government Code, Chapter 466), applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC, Chapter 401, and all final decisions of the Executive Director. TRD Bob Biard General Counsel Texas Lottery Commission Filed: September 19, 2017 Scratch Ticket Game Number 2085 "Feliz Navidad" 1.0 Name and Style of Scratch Ticket Game. A. The name of Scratch Ticket Game No is "FELIZ NAVIDAD". The play style is "key number match". 1.1 Price of Scratch Ticket Game. A. The price for Scratch Ticket Game No shall be $2.00 per Scratch Ticket. 1.2 Definitions in Scratch Ticket Game No A. Display Printing - That area of the Scratch Ticket outside of the area where the overprint and Play Symbols appear. B. Latex Overprint - The removable scratch-off covering over the Play Symbols on the front of the Scratch Ticket. C. Play Symbol - The printed data under the latex on the front of the Scratch Ticket that is used to determine eligibility for a prize. Each Play Symbol is printed in Symbol font in black ink in positive except for dual-image games. The possible black Play Symbols are: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, ARBOL SYMBOL, REGALO SYMBOL, $2.00, $4.00, $5.00, $10.00, $20.00, $50.00, $100, $1,000 and $30,000. D. Play Symbol Caption - The printed material appearing below each Play Symbol which explains the Play Symbol. One caption appears under each Play Symbol and is printed in caption font in black ink in positive. The Play Symbol Caption which corresponds with and verifies each Play Symbol is as follows: IN ADDITION September 29, TexReg 5275

92 E. Serial Number - A unique 13 (thirteen) digit number appearing under the latex scratch-off covering on the front of the Scratch Ticket. The Serial Number is for validation purposes and cannot be used to play the game. The format will be: F. Bar Code - A 24 (twenty-four) character interleaved two (2) of five (5) Bar Code which will include a four (4) digit game ID, the seven (7) digit Pack number, the three (3) digit Scratch Ticket number and the ten (10) digit Validation Number. The Bar Code appears on the back of the Scratch Ticket. 42 TexReg 5276 September 29, 2017 Texas Register

93 G. Pack-Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (2085), a seven (7) digit Pack number, and a three (3) digit Scratch Ticket number. Scratch Ticket numbers start with 001 and end with 125 within each Pack. The format will be: H. Pack - A Pack of the "FELIZ NAVIDAD" Scratch Ticket Game contains 125 Scratch Tickets, packed in plastic shrink-wrapping and fanfolded in pages of two (2). One Ticket will be folded over to expose a front and back of one Ticket on each Pack. Please note the books will be in an A, B, C and D configuration. I. Non-Winning Scratch Ticket - A Scratch Ticket which is not programmed to be a winning Scratch Ticket or a Scratch Ticket that does not meet all of the requirements of these Game Procedures, the State Lottery Act (Texas Government Code, Chapter 466), and applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC, Chapter 401. J. Scratch Ticket Game, Scratch Ticket or Ticket - Texas Lottery "FE- LIZ NAVIDAD" Scratch Ticket Game No Determination of Prize Winners. The determination of prize winners is subject to the general Scratch Ticket validation requirements set forth in Texas Lottery Rule , Instant Game Rules, these Game Procedures, and the requirements set out on the back of each Scratch Ticket. A prize winner in the "FELIZ NAVIDAD" Scratch Ticket Game is determined once the latex on the Scratch Ticket is scratched off to expose 22 (twenty-two) Play Symbols. El jugador raspa el área de juego. Si el jugador iguala cualquier Símbolo de Juego de TUS NÚMEROS con cualquier Símbolo de Juego de NÚMEROS GANADORES, el jugador gana el PREMIO para ese número. Si el jugador revela un Símbolo de Juego de "ARBOL", el jugador gana el PREMIO para ese símbolo al instante. Si el jugador revela un Símbolo de Juego de "REGALO", el jugador gana DOBLE el PREMIO para ese símbolo. No portion of the Display Printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Scratch Ticket. 2.1 Scratch Ticket Validation Requirements. A. To be a valid Scratch Ticket, all of the following requirements must be met: 1. Exactly 22 (twenty-two) Play Symbols must appear under the Latex Overprint on the front portion of the Scratch Ticket; 2. Each of the Play Symbols must have a Play Symbol Caption underneath, unless specified, and each Play Symbol must agree with its Play Symbol Caption; 3. Each of the Play Symbols must be present in its entirety and be fully legible; 4. Each of the Play Symbols must be printed in black ink except for dual image games; 5. The Scratch Ticket shall be intact; 6. The Serial Number, Retailer Validation Code and Pack-Scratch Ticket Number must be present in their entirety and be fully legible; 7. The Serial Number must correspond, using the Texas Lottery's codes, to the Play Symbols on the Scratch Ticket; 8. The Scratch Ticket must not have a hole punched through it, be mutilated, altered, unreadable, reconstituted or tampered with in any manner; 9. The Scratch Ticket must not be counterfeit in whole or in part; 10. The Scratch Ticket must have been issued by the Texas Lottery in an authorized manner; 11. The Scratch Ticket must not have been stolen, nor appear on any list of omitted Scratch Tickets or non-activated Scratch Tickets on file at the Texas Lottery; 12. The Play Symbols, Serial Number, Retailer Validation Code and Pack-Scratch Ticket Number must be right side up and not reversed in any manner; 13. The Scratch Ticket must be complete and not miscut, and have exactly 22 (twenty-two) Play Symbols under the Latex Overprint on the front portion of the Scratch Ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Scratch Ticket Number on the Scratch Ticket; 14. The Serial Number of an apparent winning Scratch Ticket shall correspond with the Texas Lottery's Serial Numbers for winning Scratch Tickets, and a Scratch Ticket with that Serial Number shall not have been paid previously; 15. The Scratch Ticket must not be blank or partially blank, misregistered, defective or printed or produced in error; 16. Each of the 22 (twenty-two) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures; 17. Each of the 22 (twenty-two) Play Symbols on the Scratch Ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the Scratch Ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Scratch Ticket Number must be printed in the Pack-Scratch Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery; 18. The Display Printing on the Scratch Ticket must be regular in every respect and correspond precisely to the artwork on file at the Texas Lottery; and 19. The Scratch Ticket must have been received by the Texas Lottery by applicable deadlines. B. The Scratch Ticket must pass all additional validation tests provided for in these Game Procedures, the Texas Lottery's Rules governing the award of prizes of the amount to be validated, and any confidential validation and security tests of the Texas Lottery. C. Any Scratch Ticket not passing all of the validation requirements is void and ineligible for any prize and shall not be paid. However, the Executive Director may, solely at the Executive Director's discretion, refund the retail sales price of the Scratch Ticket. In the event a defective Scratch Ticket is purchased, the only responsibility or liability of the Texas Lottery shall be to replace the defective Scratch Ticket with another unplayed Scratch Ticket in that Scratch Ticket Game (or a Scratch Ticket of equivalent sales price from any other current Texas Lottery Scratch Ticket Game) or refund the retail sales price of the Scratch Ticket, solely at the Executive Director's discretion. 2.2 Programmed Game Parameters. A. Consecutive Non-Winning Tickets in a Pack will not have matching play data, spot for spot. B. The top Prize Symbol will appear on every Ticket, unless restricted by other parameters, play action or prize structure. C. No prize amount in a non-winning spot will correspond with the TUS NÚMEROS Play Symbol (i.e., 2 and $2). D. No matching non-winning TUS NÚMEROS Play Symbols on a Ticket. E. No matching NÚMEROS GANADORES Play Symbols on a Ticket. IN ADDITION September 29, TexReg 5277

94 F. A non-winning Prize Symbol will never match a winning Prize Symbol. G. A Ticket may have up to three (3) matching non-winning Prize Symbols unless restricted by other parameters, play action or prize structure. H. The "ARBOL" (GNR) Play Symbol may appear more than once on a winning Ticket. I. The "REGALO" (DBL) Play Symbol will only appear on intended winning Tickets as dictated by the prize structure. 2.3 Procedure for Claiming Prizes. A. To claim a "FELIZ NAVIDAD" Scratch Ticket Game prize of $2.00, $4.00, $5.00, $10.00, $20.00, $50.00 or $100, a claimant shall sign the back of the Scratch Ticket in the space designated on the Scratch Ticket and present the winning Scratch Ticket to any Texas Lottery Retailer. The Texas Lottery Retailer shall verify the claim and, if valid, and upon presentation of proper identification, if appropriate, make payment of the amount due the claimant and physically void the Scratch Ticket; provided that the Texas Lottery Retailer may, but is not required, to pay a $50.00 or $100 Scratch Ticket Game. In the event the Texas Lottery Retailer cannot verify the claim, the Texas Lottery Retailer shall provide the claimant with a claim form and instruct the claimant on how to file a claim with the Texas Lottery. If the claim is validated by the Texas Lottery, a check shall be forwarded to the claimant in the amount due. In the event the claim is not validated, the claim shall be denied and the claimant shall be notified promptly. A claimant may also claim any of the above prizes under the procedure described in Section 2.3.B and Section 2.3.C of these Game Procedures. B. To claim a "FELIZ NAVIDAD" Scratch Ticket Game prize of $1,000 or $30,000, the claimant must sign the winning Scratch Ticket and present it at one of the Texas Lottery's Claim Centers. If the claim is validated by the Texas Lottery, payment will be made to the bearer of the validated winning Scratch Ticket for that prize upon presentation of proper identification. When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service (IRS) and shall withhold federal income tax at a rate set by the IRS if required. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly. C. As an alternative method of claiming a "FELIZ NAVIDAD" Scratch Ticket Game prize, the claimant must sign the winning Scratch Ticket, thoroughly complete a claim form, and mail both to: Texas Lottery Commission, P.O. Box 16600, Austin, Texas The Texas Lottery is not responsible for Scratch Tickets lost in the mail. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly. D. Prior to payment by the Texas Lottery of any prize, the Texas Lottery shall deduct: 1. A sufficient amount from the winnings of a prize winner who has been finally determined to be: a. delinquent in the payment of a tax or other money to a state agency and that delinquency is reported to the Comptroller under Government Code ; b. in default on a loan made under Chapter 52, Education Code; or c. in default on a loan guaranteed under Chapter 57, Education Code; and 2. delinquent child support payments from the winnings of a prize winner in the amount of the delinquency as determined by a court or a Title IV-D agency under Chapter 231, Family Code. E. If a person is indebted or owes delinquent taxes to the State, other than those specified in the preceding paragraph, the winnings of a person shall be withheld until the debt or taxes are paid. 2.4 Allowance for Delay of Payment. The Texas Lottery may delay payment of the prize pending a final determination by the Executive Director, under any of the following circumstances: A. if a dispute occurs, or it appears likely that a dispute may occur, regarding the prize; B. if there is any question regarding the identity of the claimant; C. if there is any question regarding the validity of the Scratch Ticket presented for payment; or D. if the claim is subject to any deduction from the payment otherwise due, as described in Section 2.3.D of these Game Procedures. No liability for interest for any delay shall accrue to the benefit of the claimant pending payment of the claim. 2.5 Payment of Prizes to Persons Under 18. If a person under the age of 18 years is entitled to a cash prize under $600 from the "FELIZ NAVIDAD" Scratch Ticket Game, the Texas Lottery shall deliver to an adult member of the minor's family or the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor. 2.6 If a person under the age of 18 years is entitled to a cash prize of $600 or more from the "FELIZ NAVIDAD" Scratch Ticket Game, the Texas Lottery shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor. 2.7 Scratch Ticket Claim Period. All Scratch Ticket prizes must be claimed within 180 days following the end of the Scratch Ticket Game or within the applicable time period for certain eligible military personnel as set forth in Texas Government Code Any rights to a prize that is not claimed within that period, and in the manner specified in these Game Procedures and on the back of each Scratch Ticket, shall be forfeited. 2.8 Disclaimer. The number of prizes in a game is approximate based on the number of Scratch Tickets ordered. The number of actual prizes available in a game may vary based on number of Scratch Tickets manufactured, testing, distribution, sales and number of prizes claimed. A Scratch Ticket Game may continue to be sold even when all the top prizes have been claimed. 3.0 Scratch Ticket Ownership. A. Until such time as a signature is placed upon the back portion of a Scratch Ticket in the space designated, a Scratch Ticket shall be owned by the physical possessor of said Scratch Ticket. When a signature is placed on the back of the Scratch Ticket in the space designated, the player whose signature appears in that area shall be the owner of the Scratch Ticket and shall be entitled to any prize attributable thereto. Notwithstanding any name or names submitted on a claim form, the Executive Director shall make payment to the player whose signature appears on the back of the Scratch Ticket in the space designated. If more than one name appears on the back of the Scratch Ticket, the Executive Director will require that one of those players whose name appears thereon be designated by such players to receive payment. B. The Texas Lottery shall not be responsible for lost or stolen Scratch Tickets and shall not be required to pay on a lost or stolen Scratch Ticket. 4.0 Number and Value of Scratch Ticket Prizes. There will be approximately 5,040,000 Scratch Tickets in Scratch Ticket Game No The approximate number and value of prizes in the game are as follows: 42 TexReg 5278 September 29, 2017 Texas Register

95 A. The actual number of Scratch Tickets in the game may be increased or decreased at the sole discretion of the Texas Lottery Commission. 5.0 End of the Scratch Ticket Game. The Executive Director may, at any time, announce a closing date (end date) for the Scratch Ticket Game No without advance notice, at which point no further Scratch Tickets in that game may be sold. The determination of the closing date and reasons for closing will be made in accordance with the Scratch Ticket closing procedures and the Instant Game Rules. See 16 TAC (j). 6.0 Governing Law. In purchasing a Scratch Ticket, the player agrees to comply with, and abide by, these Game Procedures for Scratch Ticket Game No. 2085, the State Lottery Act (Texas Government Code, Chapter 466), applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC, Chapter 401, and all final decisions of the Executive Director. TRD Bob Biard General Counsel Texas Lottery Commission Filed: September 19, 2017 Texas Parks and Wildlife Department Notice of Hearing and Opportunity for Public Comment This is a notice of an opportunity for public comment and a public hearing on an application by Grant Hanford -- ExxonMobil Environmental Services Company for a Texas Parks and Wildlife Department (TPWD) permit to excavate 13,200 cubic yards of soils impacted by naturally occurring radioactive material from an unnamed lagoon adjacent to Laguna Salada, approximately 5 miles downstream of the U.S. Highway 77 crossing in Kenedy County. The hearing will be held at 11:00 a.m. on October 23, 2017, at TPWD headquarters, located at 4200 Smith School Road, Austin, Texas The hearing is not a contested case hearing under the Administrative Procedure Act. Written comments must be submitted within 30 days of the publication of this notice in the Texas Register or the newspaper, whichever is later, or at the public hearing. Submit written comments, questions, or requests to review the application to: Tom Heger, TPWD, by mail: 4200 Smith School Road, Austin, Texas 78744; fax (512) ; tom.heger@tpwd.texas.gov; or phone (512) TRD Robert D. Sweeney, Jr. General Counsel Texas Parks and Wildlife Department Filed: September 18, 2017 Notice of Proposed Real Estate Transactions Grant of Water Line Easement - Walker County Approximately.1 Acres at Huntsville State Park In a meeting on November 2, 2017, the Texas Parks and Wildlife Commission (the Commission) will consider granting a water line easement covering approximately.1 acres at Huntsville State Park in Walker County. At this meeting, the public will have an opportunity to comment on the proposed transaction before the Commission takes action. The meeting will start at 9:00 a.m. at the Pitser Garrison Convention Center, 601 N. Second Street, Lufkin, Texas Prior to the meet- IN ADDITION September 29, TexReg 5279

96 ing, public comment may be submitted to Trey Vick, Land Conservation, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas ( or via the department's web site at Grant of Conservation Easement - Blanco County Approximately 164 Acres at Pedernales Falls State Park In a meeting on November 2, 2017, the Texas Parks and Wildlife Commission (the Commission) will consider authorizing a conservation easement restricting development of an approximately 164-acre tract of land at Pedernales Falls State Park in Blanco County. At this meeting, the public will have an opportunity to comment on the proposed transaction before the Commission takes action. The meeting will start at 9:00 a.m. at the Pitser Garrison Convention Center, 601 N. Second Street, Lufkin, Texas Prior to the meeting, public comment may be submitted to Ted Hollingsworth, Land Conservation, Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas ( ted.hollingsworth@tpwd.texas.gov); or via the department's web site at TRD Robert D. Sweeney, Jr. General Counsel Texas Parks and Wildlife Department Filed: September 20, 2017 Public Utility Commission of Texas Notice of Application for Sale, Transfer, or Merger Notice is given to the public of an application filed with the Public Utility Commission of Texas (commission) on September 15, 2017, pursuant to the Public Utility Regulatory Act, Tex. Util. Code Ann and Docket Style and Number: Application of ECP ControlCo, LLC under Public Utility Regulatory Act , Docket Number The Application: On September 15, 2017, ECP ControlCo, LLC filed an application for approval of the proposed merger of its wholly-controlled subsidiary, Volt Merger Sub, Inc. with Calpine Corporation, an owner of generation facilities in Texas. Following the proposed transaction, the combined generation owned and controlled by ECP, Calpine, and their affiliates and investors will equal approximately either 11,826 MW or 12,039 MW, which is approximately 12.7 or 12.9 percent of the total installed generation capacity located in, or capable of delivery into the Electric Reliability Council of Texas. Persons wishing to intervene or comment on the action sought should contact the commission as soon as possible as an intervention deadline will be imposed. A comment or request to intervene should be mailed to P.O. Box 13326, Austin, Texas , or by phone at (512) or toll-free at (888) Hearing and speech-impaired individuals with text telephone (TTY) may contact the commission through Relay Texas by dialing All comments should reference Docket Number TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: September 19, 2017 Notice of Application to Relinquish a Service Provider Certificate of Operating Authority Notice is given to the public of the filing with the Public Utility Commission of Texas of an application on September 11, 2017, to relinquish a service provider certificate of operating authority. Style and Docket Number: Application of Central Texas Communications, Inc. to Relinquish a Service Provider Certificate of Operating Authority, Docket Number Application: Central Texas Communications, Inc. seeks to relinquish its service provider certificate of operating authority number Persons wishing to comment on the action sought should contact the Public Utility Commission of Texas by mail at P.O. Box 13326, Austin, Texas , or by phone at (512) or toll free at no later than October 6, Hearing and speech impaired individuals with text telephone (TTY) may contact the commission through Relay Texas by dialing All comments should reference Docket Number TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: September 15, 2017 Request for Proposal - Technical Consulting Services RFP Number Project No The Public Utility Commission of Texas is issuing a Request for Proposals (RFP) for a financial audit of the Texas Universal Service Fund (TUSF) and an audit of the internal controls of the fund administrator. Scope of Work: The audit objectives are outlined below. In addition, the contractor shall compile a balance sheet, a statement of revenues, a statement of expenditures and changes in fund balance, and a statement of cash flows for the TUSF. The contractor shall perform the audit in accordance with generally accepted accounting principles consistent with the Government Accounting Standards Board and the Financial Accounting Standards Board. The audit shall be in compliance with Service Organization Control (SOC-1) Statement on Standards for Attestation Engagements (SSAE) No. 18. RFP documentation may be obtained by contacting: Jay Stone Public Utility Commission of Texas RFPCorrespondence@puc.texas.gov RFP documentation is also located on the PUCT website at Deadline for proposal submission is Monday, October 30, 2017, 2:00 p.m., CT TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: September 19, TexReg 5280 September 29, 2017 Texas Register

97 Teacher Retirement System of Texas Notice of Contract Award Per Texas Government Code , the Teacher Retirement System of Texas (TRS) announces this notice of award for Health Care Consulting and Actuarial Services to Gabriel, Roeder, Smith & Company Health and Welfare Consulting LLC, One Towne Square, Suite 800, Southfield, Michigan The initial term of the contract is September 1, 2017, through August 31, The contract total for the initial term is estimated to be $4,000,000.00, for both actuarial and consulting services. There are four (4) one year renewal options associated with this contract. TRD Brian Guthrie Executive Director Teacher Retirement System of Texas Filed: September 14, 2017 Texas Department of Transportation Aviation Division - Request for Qualifications for Professional Engineering Services The City of Hearne, through its agent, the Texas Department of Transportation (TxDOT), intends to engage a professional engineering firm for services pursuant to Chapter 2254, Subchapter A, of the Government Code. TxDOT Aviation Division will solicit and receive qualification statements for the current aviation project as described below. Current Project: City of Hearne; TxDOT CSJ No.: 1817HEARN. The TxDOT Project Manager is Ed Mayle. Scope: Provide engineering and design services, including construction administration, to: 1. Install runway hold and exit signs; 2. Rehabilitate parallel taxiway and Taxiway B; 3. Construct Taxiways A and C; 4. Rehabilitate apron; 5. Rehabilitate Runway 18-36; and 6. Install airfield pavement markings on runway and taxiways. The Agent, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. 2000d to 2000d-4) and the Regulations, hereby notifies all respondents that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit in response to this solicitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award. The proposed contract is subject to 49 CFR Part 26 concerning the participation of Disadvantaged Business Enterprises (DBE). The DBE goal for the design phase of the current project is 12%. The goal will be re-set for the construction phase. Utilizing multiple engineering, design and construction grants over the course of the next five years, future scope of work items at the Hearne Municipal Airport may include the following: extend runway; construct t-hangars; construct t-hangar pavement; rehabilitate aircraft parking area; and install pavement markings. The City of Hearne reserves the right to determine which of the services listed above may or may not be awarded to the successful firm and to initiate additional procurement action for any of the services listed above. To assist in your qualification statement preparation, the criteria, 5010 drawing, project diagram, and most recent Airport Layout Plan are available online at by selecting "Hearne Municipal Airport." The qualification statement should address a technical approach for the current scope only. Firms shall use page 4, Recent Airport Experience, to list relevant past projects for both current scope and future scope items. AVN-550 Preparation Instructions: Interested firms shall utilize the latest version of Form AVN-550, titled "Qualifications for Aviation Architectural/Engineering Services." The form may be requested from TxDOT, Aviation Division, 125 E. 11th Street, Austin, Texas , phone number, (800) 68-PILOT (74568). The form may be ed by request or downloaded from the TxDOT website at form may not be altered in any way. Firms must carefully follow the instructions provided on each page of the form. Qualifications shall not exceed the number of pages in the AVN-550 template. The AVN-550 consists of eight pages of data plus one optional illustration page. A prime provider may only submit one AVN If a prime provider submits more than one AVN-550, or submits a cover page with the AVN-550, that provider will be disqualified. Responses to this solicitation WILL NOT BE ACCEPTED IN ANY OTHER FORMAT. ATTENTION: To ensure utilization of the latest version of Form AVN- 550, firms are encouraged to download Form AVN-550 from the Tx- DOT website as addressed above. Utilization of Form AVN-550 from a previous download may not be the exact same format. Form AVN-550 is a PDF Template. The completed Form AVN-550 must be received in the TxDOT Aviation egrants system no later than October 31, 2017, 11:59 p.m. (CDST). Electronic facsimiles or forms sent by or regular/overnight mail will not be accepted. Firms that wish to submit a response to this solicitation must be a user in the TxDOT Aviation egrants system no later than one business day before the solicitation due date. To request access to egrants, please complete the Contact Us web form located at An instructional video on how to respond to a solicitation in egrants is available at Step by step instructions on how to respond to a solicitation in egrants will also be posted in the RFQ packet at The consultant selection committee will be composed of local government representatives. The final selection by the committee will generally be made following the completion of review of AVN-550s. The committee will review all AVN-550s and rate and rank each. The Evaluation Criteria for Engineering Qualifications can be found at under Information for Consultants. All firms will be notified and the top rated firm will be contacted to begin fee negotiations for the design and bidding phases. The selection committee does, however, reserve the right to conduct interviews for the top rated firms if the committee deems it necessary. If interviews are conducted, selection will be made following interviews. IN ADDITION September 29, TexReg 5281

98 Please contact TxDOT Aviation for any technical or procedural questions at (800) 68-PILOT (74568). For procedural questions, please contact Beverly Longfellow. For technical questions, please contact Ed Mayle, Project Manager. For questions regarding responding to this solicitation in egrants, please contact the TxDOT Aviation help desk at (800) or TRD Joanne Wright Deputy General Counsel Texas Department of Transportation Filed: September 20, TexReg 5282 September 29, 2017 Texas Register

99 How to Use the Texas Register Information Available: The sections of the Texas Register represent various facets of state government. Documents contained within them include: Governor - Appointments, executive orders, and proclamations. Attorney General - summaries of requests for opinions, opinions, and open records decisions. Texas Ethics Commission - summaries of requests for opinions and opinions. Emergency Rules - sections adopted by state agencies on an emergency basis. Proposed Rules - sections proposed for adoption. Withdrawn Rules - sections withdrawn by state agencies from consideration for adoption, or automatically withdrawn by the Texas Register six months after the proposal publication date. Adopted Rules - sections adopted following public comment period. Texas Department of Insurance Exempt Filings - notices of actions taken by the Texas Department of Insurance pursuant to Chapter 5, Subchapter L of the Insurance Code. Review of Agency Rules - notices of state agency rules review. Tables and Graphics - graphic material from the proposed, emergency and adopted sections. Transferred Rules - notice that the Legislature has transferred rules within the Texas Administrative Code from one state agency to another, or directed the Secretary of State to remove the rules of an abolished agency. In Addition - miscellaneous information required to be published by statute or provided as a public service. Specific explanation on the contents of each section can be found on the beginning page of the section. The division also publishes cumulative quarterly and annual indexes to aid in researching material published. How to Cite: Material published in the Texas Register is referenced by citing the volume in which the document appears, the words TexReg and the beginning page number on which that document was published. For example, a document published on page 2402 of Volume 40 (2015) is cited as follows: 40 TexReg In order that readers may cite material more easily, page numbers are now written as citations. Example: on page 2 in the lower-left hand corner of the page, would be written 40 TexReg 2 issue date, while on the opposite page, page 3, in the lower right-hand corner, would be written issue date 40 TexReg 3. How to Research: The public is invited to research rules and information of interest between 8 a.m. and 5 p.m. weekdays at the Texas Register office, James Earl Rudder Building, 1019 Brazos, Austin. Material can be found using Texas Register indexes, the Texas Administrative Code section numbers, or TRD number. Both the Texas Register and the Texas Administrative Code are available online at: The Texas Register is available in an.html version as well as a.pdf version through the internet. For website information, call the Texas Register at (512) Texas Administrative Code The Texas Administrative Code (TAC) is the compilation of all final state agency rules published in the Texas Register. Following its effective date, a rule is entered into the Texas Administrative Code. Emergency rules, which may be adopted by an agency on an interim basis, are not codified within the TAC. The TAC volumes are arranged into Titles and Parts (using Arabic numerals). The Titles are broad subject categories into which the agencies are grouped as a matter of convenience. Each Part represents an individual state agency. The complete TAC is available through the Secretary of State s website at The Titles of the TAC, and their respective Title numbers are: 1. Administration 4. Agriculture 7. Banking and Securities 10. Community Development 13. Cultural Resources 16. Economic Regulation 19. Education 22. Examining Boards 25. Health Services 28. Insurance 30. Environmental Quality 31. Natural Resources and Conservation 34. Public Finance 37. Public Safety and Corrections 40. Social Services and Assistance 43. Transportation How to Cite: Under the TAC scheme, each section is designated by a TAC number. For example in the citation 1 TAC 27.15: 1 indicates the title under which the agency appears in the Texas Administrative Code; TAC stands for the Texas Administrative Code; is the section number of the rule (27 indicates that the section is under Chapter 27 of Title 1; 15 represents the individual section within the chapter). How to Update: To find out if a rule has changed since the publication of the current supplement to the Texas Administrative Code, please look at the Index of Rules. The Index of Rules is published cumulatively in the blue-cover quarterly indexes to the Texas Register. If a rule has changed during the time period covered by the table, the rule s TAC number will be printed with the Texas Register page number and a notation indicating the type of filing (emergency, proposed, withdrawn, or adopted) as shown in the following example. TITLE 1. ADMINISTRATION Part 4. Office of the Secretary of State Chapter 91. Texas Register 1 TAC (P)

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