Volume 42 Number 44 November 3, 2017 Pages

Transcription

1 Volume 42 Number 44 November 3, 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 Appointments Proclamation ATTORNEY GENERAL Opinions PROPOSED RULES FINANCE COMMISSION OF TEXAS RESIDENTIAL MORTGAGE LOAN ORIGINATORS APPLYING FOR LICENSURE WITH THE OFFICE OF CONSUMER CREDIT COMMISSIONER UNDER THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT 7 TAC TEXAS DEPARTMENT OF BANKING CORPORATE ACTIVITIES 7 TAC MONEY SERVICES BUSINESSES 7 TAC 33.3, 33.13, 33.15, 33.27, 33.51, DEPARTMENT OF SAVINGS AND MORTGAGE LENDING TEXAS RESIDENTIAL MORTGAGE LOAN COMPANIES 7 TAC TAC , MORTGAGE BANKERS AND RESIDENTIAL MORTGAGE LOAN ORIGINATORS 7 TAC TAC TAC OFFICE OF CONSUMER CREDIT COMMISSIONER REGULATED LENDERS AND CREDIT ACCESS BUSINESSES 7 TAC CHAPTER 342, PLAIN LANGUAGE CONTRACT PROVISIONS 7 TAC STATE BOARD FOR EDUCATOR CERTIFICATION CLASSROOM TEACHER CERTIFICATION STANDARDS 19 TAC TAC , TAC , TAC , CERTIFICATION OF EDUCATORS FROM OTHER COUNTRIES 19 TAC 245.1, 245.5, DISCIPLINARY PROCEEDINGS, SANCTIONS, AND CONTESTED CASES 19 TAC TAC , , , TAC STATE BOARD OF DENTAL EXAMINERS GENERAL PROVISIONS 22 TAC TEXAS MEDICAL BOARD MEDICAL PHYSICISTS 22 TAC 160.7, USE OF EXPERTS 22 TAC PERFUSIONISTS 22 TAC 188.5, COMPLIANCE 22 TAC STANDING DELEGATION ORDERS 22 TAC MEDICAL RADIOLOGIC TECHNOLOGY 22 TAC PAIN MANAGEMENT CLINICS 22 TAC TEXAS BOARD OF VETERINARY MEDICAL EXAMINERS GENERAL ADMINISTRATIVE DUTIES 22 TAC TEXAS WATER DEVELOPMENT BOARD STATE WATER PLANNING GUIDELINES 31 TAC TAC TEXAS LOW-LEVEL RADIOACTIVE WASTE DISPOSAL COMPACT COMMISSION OPERATIONAL RULES 31 TAC TEXAS DEPARTMENT OF CRIMINAL JUSTICE TABLE OF CONTENTS 42 TexReg 6059

4 GENERAL PROVISIONS 37 TAC WITHDRAWN RULES TEXAS ALCOHOLIC BEVERAGE COMMISSION MARKETING PRACTICES 16 TAC STATE BOARD FOR EDUCATOR CERTIFICATION GENERAL CERTIFICATION PROVISIONS 19 TAC ADOPTED RULES OFFICE OF THE SECRETARY OF STATE ELECTIONS 1 TAC FINANCE COMMISSION OF TEXAS CREDIT CARD SURCHARGE APPEAL PROCEDURES 7 TAC OFFICE OF CONSUMER CREDIT COMMISSIONER PROPERTY TAX LENDERS 7 TAC TAC , TAC , , TAC TAC TAC , TAC , , TAC TAC PUBLIC UTILITY COMMISSION OF TEXAS SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS 16 TAC TEXAS EDUCATION AGENCY ASSESSMENT 19 TAC TAC TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR ENGLISH LANGUAGE ARTS AND READING 19 TAC TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR SPANISH LANGUAGE ARTS AND READING AND ENGLISH AS A SECOND LANGUAGE 19 TAC STUDENT ATTENDANCE 19 TAC TEXAS BOARD OF VETERINARY MEDICAL EXAMINERS RULES OF PROFESSIONAL CONDUCT 22 TAC PRACTICE AND PROCEDURE 22 TAC TAC TAC TAC GENERAL ADMINISTRATIVE DUTIES 22 TAC TAC TEXAS BOARD OF PARDONS AND PAROLES PAROLE 37 TAC DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES INVESTIGATIONS OF INDIVIDUALS RECEIVING SERVICES FROM CERTAIN PROVIDERS 40 TAC 711.3, 711.5, , , TAC TAC , , , , , TEXAS WORKFORCE COMMISSION DIVISION FOR BLIND SERVICES 40 TAC TAC TAC TAC TAC TAC TAC VOCATIONAL REHABILITATION SERVICES 40 TAC 856.1, 856.3, TAC TAC TABLE OF CONTENTS 42 TexReg 6060

5 40 TAC TAC , TAC TAC TAC TAC TRANSFERRED RULES Department of Family and Protective Services Rule Transfer Texas Health and Human Services Commission Rule Transfer Department of State Health Services Rule Transfer Texas Department of Licensing and Regulation Rule Transfer RULE REVIEW Proposed Rule Reviews Office of Consumer Credit Commissioner Texas Department of Criminal Justice Adopted Rule Reviews State Board for Educator Certification TABLES AND GRAPHICS IN ADDITION Texas State Affordable Housing Corporation Draft Bond Program Policies and Request for Proposals Available for Public Comment Draft Homes for Texas Heroes Home Loan Program Rules Available for Public Comment Office of Consumer Credit Commissioner Notice of Rate Ceilings Credit Union Department Application for a Merger or Consolidation Application to Expand Field of Membership Notice of Final Action Taken Texas Commission on Environmental Quality Agreed Orders Combined Notice of Public Meeting and Notice of Application and Preliminary Decision for TPDES Permit for Industrial Wastewater New Permit No. WQ Enforcement Orders Notice of Opportunity to Comment on a Default Order of Administrative Enforcement Actions Notice of Opportunity to Comment on Agreed Orders of Administrative Enforcement Actions Notice of Opportunity to Comment on Shutdown/Default Orders of Administrative Enforcement Actions Notice of Public Meeting Air Quality Standard Permit for Concrete Batch Plants Proposed Registration No 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 Public Notice - Waiver Renewal to the Youth Empowerment Services Program University of Houston System Evaluation of Institutional Culture Project Texas Lottery Commission Scratch Ticket Game Number 2013 "Lucky 7's" Scratch Ticket Game Number 2014 "Mega 7's" North Central Texas Council of Governments Request for Proposals for Alternative Fuel Vehicles Texas Board of Nursing Request for Proposals # Public Utility Commission of Texas Notice of Application for a Name Change Amendment to a Certificate of Convenience and Necessity Notice of Application for Sale, Transfer, or Merger Notice of Application for Service Area Exception Notice of Application for Service Area Exception Notice of Application for Service Area Exception Notice of Application to Amend a Service Provider Certificate of Operating Authority Notice of Application to Amend a Service Provider Certificate of Operating Authority Notice of Application to Amend a Water Certificate of Convenience and Necessity Notice of Application to Amend Certificated Service Area Boundaries Notice of Filing to Withdraw Services Notice of Petition for Amendment to Certificate of Convenience and Necessity by Expedited Release Notice of Petition for Amendment to Certificate of Convenience and Necessity by Expedited Release Texas Department of Transportation TABLE OF CONTENTS 42 TexReg 6061

6 Public Notice - Aviation Texas Water Development Board Notice of Public Hearings and Intent to Adopt Amendment to the 2017 State Water Plan TABLE OF CONTENTS 42 TexReg 6062

7 Appointments Appointments for October 16, 2017 Appointed to the Correctional Managed Health Care Committee, for a term to expire February 1, 2021, Frank P. Hudson, III, M.D. of Austin (replacing Steffanie R. Campbell, M.D. of Manvel whose term expired). Appointed to the Correctional Managed Health Care Committee, for a term to expire February 1, 2021, John G. Mills, D.O. of Corsicana (replacing Edward John Sherwood, M.D. of Lago Vista whose term expired). Appointments for October 17, 2017 Appointed to the Alamo Regional Mobility Authority for a term to expire February 1, 2018, Michael J. Lynd, Jr. of San Antonio (replacing James Conrad Weaver of San Antonio who resigned). Appointed to the Child Fatality Review Team Committee for a term to expire at the pleasure of the Governor, Allison Billodeau of Austin. Greg Abbott, Governor TRD Proclamation TO ALL TO WHOM THESE PRESENTS SHALL COME: WHEREAS, I, GREG ABBOTT, Governor of the State of Texas, issued a disaster proclamation on August 23, 2017, certifying that Hurricane Harvey posed a threat of imminent disaster for Aransas, Austin, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Harris, Jackson, Jefferson, Jim Wells, Karnes, Kleberg, Lavaca, Liberty, Live Oak, Matagorda, Nueces, Refugio, San Patricio, Victoria, Waller, Wharton and Wilson counties; and WHEREAS, the disaster proclamation of August 23, 2017, was subsequently amended on August 26, August 27, August 28, and September 14 to add the following counties to the disaster proclamation: Angelina, Atascosa, Bastrop, Burleson, Bexar, Brazos, Caldwell, Cameron, Comal, Grimes, Guadalupe, Hardin, Jasper, Kerr, Lee, Leon, Madison, Milam, Montgomery, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Washington and Willacy; and WHEREAS, on September 20, 2017, I issued a proclamation renewing the disaster declaration for all counties listed above; and WHEREAS, due to the catastrophic damage caused by Hurricane Harvey, a state of disaster continues to exist in those same counties; NOW, THEREFORE, in accordance with the authority vested in me by Section of the Texas Government Code, I do hereby renew the disaster proclamation for the 60 counties listed above. 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 20th day of October, Greg Abbott, Governor TRD GOVERNOR November 3, TexReg 6063

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9 Opinions Opinion No. KP-0170 The Honorable Lyle Larson Chair, Committee on Natural Resources Texas House of Representatives Post Office Box 2910 Austin, Texas Re: Whether the term "direct recording electronic voting machine" as used in subsection (12) of the Election Code includes voting machines that produce paper ballots (RQ-0169-KP) S U M M A R Y Subsection (12) of the Election Code defines "direct recording electronic voting machine" as "a voting machine that is designed to allow a direct vote on the machine by the manual touch of a screen, monitor, or other device and that records the individual votes and vote totals electronically." Voting machines that produce marked paper ballots will qualify as direct recording electronic voting machines as long as they meet all statutory requirements. The Legislature authorized direct recording electronic voting machines as a type of voting system established under Title 8 of the Election Code. It defined "voting system" as "a method of casting and processing votes that is designed to function wholly or partly by use of mechanical, electromechanical, or electronic apparatus," thereby acknowledging that voting systems may encompass more than a single piece of equipment. Furthermore, the Legislature defined "voting machine" in Election Code subsection (3) as "an apparatus on which voters cast their votes, that records each vote, and that furnishes a total of the number of votes cast for the candidates and for and against the measures." A common meaning of the term apparatus is "a set of materials or equipment designed for a particular use." Thus, a court would likely conclude that the Legislature did not intend to limit direct recording electronic voting machines to only those machines that operate using a single piece of equipment. To participate in the countywide polling place program, a county must, among other requirements, use direct recording electronic voting machines. That a voting machine produces a marked paper ballot or includes multiple pieces of equipment that operate together to effectuate direct voting does not disqualify the machine from use in a countywide polling place program as long as the voting machines meet the other requirements of a direct recording electronic voting machine. 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: October 25, 2017 ATTORNEY GENERAL November 3, TexReg 6065

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11 TITLE 7. BANKING AND SECURITIES PART 1. TEXAS FINANCE COMMISSION OF CHAPTER 2. RESIDENTIAL MORTGAGE LOAN ORIGINATORS APPLYING FOR LICENSURE WITH THE OFFICE OF CONSUMER CREDIT COMMISSIONER UNDER THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT SUBCHAPTER A. APPLICATION PROCEDURES FOR OFFICE OF CONSUMER CREDIT COMMISSIONER APPLICANTS 7 TAC The Finance Commission of Texas (commission) proposes new 2.107, concerning Prelicensing Education, in 7 TAC, Chapter 2, concerning Residential Mortgage Loan Originators Applying for Licensure with the Office of Consumer Credit Commissioner Under the Secure and Fair Enforcement for Mortgage Licensing Act. In general, the purpose of the new rule is to implement HB 3342, which the Texas Legislature passed in the 2017 legislative session. HB 3342 authorizes the commission to set the expiration period for prelicensing education of residential mortgage loan originators. Specifically, HB 3342 amends Texas Finance Code, (h), which currently states: "An individual who fails to maintain a residential mortgage loan originator license for at least five consecutive years must retake the prelicensing education requirements prescribed by the S.A.F.E. Mortgage Licensing Act." HB 3342 amends this provision by replacing "at least five consecutive years" with "the period of time established by rule of the rulemaking authority." In this provision, "rulemaking authority" refers to the commission, as provided by Texas Finance Code, (21). HB 3342 will go into effect on January 1, The agency circulated an early draft of the proposed rule to interested stakeholders. The agency did not receive any informal written precomments on the draft. Proposed new provides a five-year expiration period for prelicensing education. This is the same period described by current Texas Finance Code, (h). The five-year period is currently used by the Nationwide Multistate Licensing System (NMLS), the system for licensing residential mortgage loan originators. Proposed 2.107(a) states that if an individual completes the 20 hours of prelicensing education required by the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. 5104(c)(1), and fails to obtain a valid license or federal registration within five years from the date of completion, then the individual must retake the 20 hours of prelicensing education in order to be eligible for licensure. Proposed 2.107(b) states that if an individual obtains a license or federal registration and fails to maintain the license or registration for at least five consecutive years, then the individual must retake the 20 hours of prelicensing education required by the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. 5104(c)(1), in order to be eligible for licensure. The State Regulatory Registry (SRR) has proposed reducing the five-year expiration period to three years, as explained in SRR's "Response to Comments Received During the SRR Comment Period on the Proposed Pre-Licensure Education Expiration Policy," dated July 21, However, this change has not yet taken effect in the NMLS system. The agency anticipates that the change will occur as part of an NMLS update currently scheduled for fall The agency intends to revisit the rule in Because the change to a three-year period will take some time to be effective, the commission is currently proposing a five-year period consistent with current requirements. Leslie L. Pettijohn, Consumer Credit Commissioner, has determined that for the first five-year period the new rule is in effect there will be no fiscal implications for state or local government as a result of administering the rule. Commissioner Pettijohn also has determined that for each year of the first five years the new rule is in effect, the public benefit anticipated as a result of the new rule will be that the prelicensing education requirements for residential mortgage loan originators will be more easily understood by applicants and licensees, will be more easily enforced, will be consistent with legislation recently passed by the legislature, and will provide guidance and clarity to applicants and licensees. There is no anticipated cost to persons who are required to comply with the new rule. There will be no adverse economic effect on rural communities or small or micro-businesses. There will be no effect on individuals required to comply with the new rule as proposed. Comments on the proposal may be submitted in writing to Laurie Hobbs, Assistant General Counsel, Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas or by to laurie.hobbs@occc.texas.gov. To be considered, a written comment must be received on or before 5:00 p.m. central time on the 31st day after the date the proposal is published in the Texas Register. At the conclusion of business on the 31st day after the proposal is published in the PROPOSED RULES November 3, TexReg 6067

12 Texas Register, no further written comments will be considered or accepted by the commission. The new rule is proposed under Texas Finance Code, (b), which grants the commission the authority to implement rules to comply with Texas Finance Code, Chapter 180. Additionally, Texas Finance Code, (h), as amended by HB 3342, authorizes the commission to adopt a rule establishing the period of time after which an individual must retake prelicensing education requirements. Texas Finance Code, (a) authorizes the commission to adopt rules providing additional requirements for prelicensing education. Texas Finance Code, (4) authorizes the commission to adopt rules establishing requirements for any activity the agency considers necessary for participation in NMLS. The statutory provisions affected by the proposed new rule are contained in Texas Finance Code, Prelicensing Education. (a) Failing to obtain license. If an individual completes the 20 hours of prelicensing education required by the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. 5104(c)(1), and fails to obtain a valid RMLO license or federal registration within five years from the date of completion, then the individual must retake the 20 hours of prelicensing education in order to be eligible for licensure. (b) Failing to maintain license. If an individual obtains an RMLO license or federal registration and fails to maintain the license or registration for at least five consecutive years, then the individual must retake the 20 hours of prelicensing education required by the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. 5104(c)(1), in order to be eligible for licensure. 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 October 20, TRD Leslie L. Pettijohn Consumer Credit Commissioner Finance Commission of Texas Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 2. TEXAS DEPARTMENT OF BANKING CHAPTER 15. CORPORATE ACTIVITIES SUBCHAPTER E. CHANGE OF CONTROL APPLICATIONS 7 TAC The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), proposes to amend 15.81, concerning application for acquisition or change of control of a state bank. The amended rule is proposed to implement recent statutory changes. Finance Code was amended effective September 1, 2017, by 1 of SB 1400 (Acts 2017, 85th Leg., R.S., Ch. 915, 1), to require the banking commissioner to promptly notify an applicant for acquisition or change of control of a state bank of the date the banking commissioner determines the application to be informationally complete and accepted for filing. This rule amendment is proposed to conform to the statutory change, and to establish a deadline within which the applicant must publish notice of the application that is based upon the date that the commissioner notifies the applicant of acceptance of the filing. Mr. Daniel Frasier, Director of Corporate Activities, Texas Department of Banking, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the rule. Mr. Frasier also has determined that, for each year of the first five years the rule as proposed is in effect, the public benefit anticipated as a result of enforcing the rule is that the time for publication of notices of application for acquisition or change of control will follow the date that the application is accepted for filing, as required by the statutory change. This will provide greater clarity for all stakeholders. For each year of the first five years that the rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed. For each year of the first five years that the rule will be in effect, the rule will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; create a new regulation; expand, limit or repeal an existing regulation; increase or decrease the number of individuals subject to the rule's applicability; and positively or adversely affect this state's economy. There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for these entities. To be considered, comments on the proposed amended section must be submitted no later than 5:00 p.m. on December 4, Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas Comments may also be submitted by to legal@dob.texas.gov. The amendment is proposed under Finance Code, , which provides that the commission may adopt rules to accomplish the purposes of Subchapter A. Finance Code, , is affected by the proposed amended section Application for Acquisition or Change of Control of State Bank. (a) - (c) (No change.) (d) Public notice. Not later than 21 days from the date the banking commissioner notifies the applicant of acceptance [Within TexReg 6068 November 3, 2017 Texas Register

13 days prior to or 14 days after submission] of the initial application, the applicant must publish notice as required by the Finance Code, (d), and 15.5 of this title (relating to Public Notice) in the county where the state bank's or bank holding company's home office is located. One publication under this subsection is adequate unless the banking commissioner expressly requires additional notice. (e) - (h) (No change.) (i) Approval. Automatic approval; conditional approval. If an application filed under this section is not approved by the banking commissioner or is not set for hearing on or before the 60th day after the [later of the] date notice is published [or the application is accepted for filing], the transaction may be consummated. Before the expiration of the initial 60-day period, the banking commissioner may give the applicant written notice that the application is approved; upon receipt of the notice, the applicant may immediately consummate the transaction. Before the expiration of the initial 60-day period, the banking commissioner may also give an applicant written notice that the application is conditionally approved subject to certain conditions. The applicant must enter into a written agreement with the banking commissioner concerning these conditions on or before the 30th day after the date the applicant receives notification of conditional approval. An agreement entered into by the applicant and the banking commissioner concerning conditional approval is enforceable against the applicant and the bank and is considered for all purposes an agreement under the provisions of the Finance Code. If an applicant receives conditional approval, but does not enter into an agreement with the banking commissioner as required by this subsection, the banking commissioner will set the matter for hearing. (j) - (m) (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 October 20, TRD Catherine Reyer General Counsel Texas Department of Banking Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 33. MONEY SERVICES BUSINESSES 7 TAC 33.3, 33.13, 33.15, 33.27, 33.51, The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), proposes to amend 33.3, concerning the exclusion from licensing for bank agents; 33.13, concerning new license applications; 33.15, concerning violation of new license application processing times; 33.27, concerning fees, assessments and reimbursements; and 33.51, concerning providing information to customers about how to file a complaint. The commission also proposes to adopt new 33.71, concerning security required for depository agents; 33.72, concerning net worth required for depository agents; 33.73, concerning depository agent recordkeeping; 33.74, concerning depository agent receipts; and 33.75, concerning exemptions. The new and amended rules are proposed to implement and administer Subchapter J of the Money Services Act, which creates a new type of money services license for depository agents. During the 84th legislative session, the Texas Legislature created the Texas Bullion Depository (the depository) within the Office of the Comptroller of Public Accounts (the comptroller) (Act of June 19, 2015, 84th Leg., R.S., H.B. 483). The depository will hold certain bullion and specie acquired by the state or a political subdivision of the state, as well as receive and hold such deposits for private entities. The bill also created a new license and corresponding regulatory structure for depository agents, which are private, independently managed firms and institutions authorized to act as intermediaries to conduct retail transactions on behalf of the depository with current and prospective depository account holders. The bill placed responsibility for regulating depository agents under the purview of the department by amending several existing sections of Chapter 151 of the Texas Finance Code, the Money Services Act, and adding new Subchapter J. The depository is scheduled to begin accepting deposits of bullion and specie on January 1, The proposed amendments to make conforming changes and set out the requirements for what must be included in an application for a new depository agent license. Conforming changes are made in subsections (a) and (b). Subsection (d)(1)(f) establishes the specific application requirements. The proposed amendments to add references to depository agent licenses and set out the fees that an applicant must pay to obtain a new or temporary depository agent license. Subsection (a) is amended to add references to depository agents. Subsection (c) is amended to add statutory references to the list of statutes that authorize fees, assessments and reimbursements. Subsection (d)(1) is amended to set the fee for obtaining a new depository agent license. Subsection (d)(3) is added to set the fee for obtaining a temporary depository agent license. Subsection (f) is added to set the fee for maintaining a depository agent license. Subsection (g) is amended to add references to depository agent business. Subsection (j) is amended to add a reference to subsection (d)(3). Proposed new specifies the requirements for the security that a depository agent must provide. Subsection (a) establishes the acceptable forms of security. Subsection (b) sets the amount of required security. Subsection (c) sets out specific requirements for the security. Subsection (d) specifies who may bring a suit on the security. Subsection (e) establishes that the commissioner may collect delinquent costs from the security. Subsection (f) specifies that the security must remain in effect until cancelled and that cancellation does not affect previous liability. Subsection (g) requires that the security cover claims for at least one year after the license holder surrenders its license, but gives the commissioner authority to permit the amount of security to be reduced or eliminated as obligations are reduced or eliminated. Subsection (h) allows the commissioner to require new or additional security as reasonably required. Subsection (i) sets out specific requirements for a license holder or applicant that provides a deposit of cash in lieu of a bond. Subsection (j) sets out the specific requirements for a license holder or applicant that provides a deposit of bullion or specie in lieu of a bond. Subsection (k) establishes that the security is held in trust and is not considered an asset of the license holder. Proposed new specifies the net worth required for depository agents. Subsection (a) requires a license holder or applicant to maintain a minimum net worth and sets out what that PROPOSED RULES November 3, TexReg 6069

14 minimum net worth is, based on the locations where business is conducted. Subsection (b) authorizes the commissioner to increase the amount of net worth required and sets out the criteria to be considered. Subsection (c) requires that 50 percent of net worth be in tangible net worth. Proposed new specifies the records a license holder must maintain related to depository agent services transactions. Subsection (a) clarifies to whom the proposed new section applies and subsection (b) sets out general recordkeeping requirements. Subsection (b) permits a depository agent license holder to retain the information in a log or by any other means that allows the information to be readily retrieved. Subsection (c) sets out the specific recordkeeping requirements that apply to depository agent services transactions. Subsection (d) authorizes the banking commissioner to waive a requirement of in appropriate circumstances. Proposed new requires that a receipt be issued in connection with all depository agent services transactions. Subsection (a) clarifies to whom the section applies and subsection (b) explains and establishes the specific receipt requirements. Paragraph (1) of subsection (b) defines "receipt" in a manner that applies to electronic or online transactions, in addition to in person transactions. Paragraph (2) identifies the information the receipt must include and also requires that the receipt be linked to the depository agent transaction records required under proposed new Finally, paragraph (3) provides that a license holder may use one receipt to satisfy the requirements of both proposed new and Finance Code, Chapter 278. Proposed new creates two exemptions from licensing. Subsection (a) affirms that the depository, as an agency of this state in the office of the comptroller, is exempt from all money services licensing. Subsection (b) creates a new exemption from depository agent licensing for the individual, partnership or corporation that operates the depository pursuant to a contract with the comptroller. The remaining sections ( 33.3, and 33.51) are modified with conforming changes. Stephanie Newberg, Deputy Commissioner, Texas Department of Banking, has determined that for the first five-year period the proposed rules are in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the proposed rules. Ms. Newberg has also determined that, for each year of the first five years the rules as proposed are in effect, the public benefit anticipated as a result of enforcing the rules is clear, consistent regulation of depository agents through administrative rules that implement and conform to current law, as well as the preservation and protection of the safety and soundness of depository agents, protection of the interests of purchasers of depository agent services, and protection against money laundering and similar financial crimes. For each year of the first five years that the new and amended rules will be in effect, there will be economic costs to persons required to comply with the rules as proposed. Persons required to comply with these rules will incur costs of $5,000 as an initial application fee, approximately $3,000 as an annual examination fee (based on the expectation of one examiner for 40 hours at $75 per hour), and approximately $5,000 to $25,000 as an annual cost to maintain a surety bond (based on a fee of 1-5% of the amount of the bond, which must be at least $500,000). There may be some additional expense for creating compliant receipts and drafting and printing consumer complaint notices. For each year of the first five years that the rule will be in effect, the rule will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; or positively or adversely affect this state s economy. For the first five years the rules will be in effect, they will: create new regulations for entities seeking to become licensed as depository agents; expand existing regulations of money services businesses to include depository agents as a new category of licensees of the department; increase the number of individuals subject to the rule s applicability; and increase fees paid to the department. There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for small businesses as compared to large businesses. To be considered, comments on the proposed amendments and new rules must be submitted no later than 5:00 p.m. on December 4, Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas Comments may also be submitted by to legal@dob.texas.gov. The amendments and new rules are proposed under Finance Code, , which provides that the commission may adopt rules to administer and enforce Texas Finance Code, Chapter 151. The amendments and new rules are also proposed under Finance Code, , which authorizes the commission to establish the amount of the application fee, the minimum net worth required for applicants, and the requirements for the security that applicants must file with the department, and Finance Code, , which authorizes the commission to establish the amount of the temporary license fee. Finance Code, Chapter 151, Subchapter J, is affected by the proposed amended and new sections How Do I Claim an Exclusion from Licensing because I Am an Agent for a Federally Insured Financial Institution or a Foreign Bank Branch or Agency? (a) This section applies if you: (1) provide marketing, sales or other services related to money transmission or depository agent services either directly or through your own agents or subagents; (2) provide these services only as agent for a federally insured financial institution described in Finance Code, (3), or a foreign bank branch or agency described in Finance Code, (4); and (3) want to be excluded from licensing under Finance Code, (5), the agent exclusion. 42 TexReg 6070 November 3, 2017 Texas Register

15 (b) To provide services related to money transmission or depository agent services under the agent exclusion, you must first obtain the Department's written determination that the statutory conditions for the exclusion are satisfied. You must submit to the Department: (1) a general description of your business plan; (2) an executed agreement or other signed documents between you and the federally insured financial institution or foreign bank branch or agency in which the financial institution: (A) assumes all legal responsibility [in the State of Texas] for satisfying the money services obligations owed to [Texas] purchasers of the money transmission or depository agent services upon receipt of the purchaser's money, [or] monetary value, bullion or specie by you or your agents or subagents; (B) assumes all risk of loss that a purchaser may suffer as a result of the failure of you or one of your agents or subagents to transmit the purchaser's funds, bullion or specie to the entity; and (C) appoints you as its agent for purposes of money transmission, depository agent services, or both, sets out the limits of your authority, and includes your agreement to act only within the scope of that authority; and (3) any other information the Department reasonably requests to determine if you qualify for the exclusion. (c) (No change.) How Do I Obtain a New License and What are the Deadlines Associated with Applications? (a) Does this section apply to me? This section applies if you seek a new money transmission, [or ]currency exchange or depository agent license under Finance Code, Chapter 151. The time tables and deadlines established in this section also apply to a request for approval of a proposed change of control of a money services business licensed under Finance Code, Chapter 151. (b) What must I do to apply for a license? To apply for a new money transmission, [or] currency exchange or depository agent license, you must: (1) submit an application on the form prescribed by the department; and (2) fully complete the application form and provide the information and documentation as specified in the application and the department's instructions. (c) What does the application process generally involve? The banking commissioner will review your application and, as authorized by Finance Code, Chapter 151, investigate you, your principals including officers, directors and shareholders of a publicly [publically] traded parent if the principal has 25% or more ownership of the applicant, and all related facts to determine if you possess the qualifications and satisfy the requirements for the license for which you apply. At any time during the review and investigation process, the commissioner may require such information as the commissioner considers necessary to evaluate your application, including an opinion of counsel or an opinion, review or compilation prepared by a certified public accountant. It is your responsibility to provide or cause to be provided all the information the commissioner requires. (d) What is required for the department to begin processing my application? (1) Your application must provide and be accompanied by the following at the time you submit the application to the department: (A) your signature or the signature of your duly authorized officer, as applicable, sworn to before a notary, affirming that the information in the application and accompanying documentation is true; (B) an application fee, in the amount established by commission rule, in the form of a check payable to the Texas Department of Banking; if you are applying for a money transmission license: (C) all required search firm reports; and (D) (i) security in the amount of at least $300,000 that complies with Finance Code, , and an undertaking to increase the amount of the security if additional security is required under that section; and (ii) an audited financial statement demonstrating that you satisfy the minimum net worth requirement established by Finance Code, (a), and that, if the license is issued, you are likely to maintain the required minimum; or (E) if you are applying for a currency exchange license: (i) security in the amount of $2,500 that complies with Finance Code, ; and a financial statement demonstrating your solvency or;[.] (F) (ii) if you are applying for a depository agent license: (i) security in the amount of $500,000 that complies with of this title (relating to Security Required for Depository Agents) and an undertaking to increase the amount of the security if additional security is required under that section; and (ii) audited financial statements demonstrating that you satisfy the minimum net worth requirement established by of this title (relating to Net Worth Required for Depository Agents), and that, if the license is issued, you are likely to maintain the required minimum. (2) The department may refuse to process and may return to you an application submitted without all the items identified in paragraph (1) of this subsection. If you submit your application fee, but fail to include one or more of the other items identified in paragraph (1) of this subsection, the department will return or refund the fee or, if you promptly submit an application that includes the missing items, apply the fee to your subsequent application. (e) - (j) (No change.) What May I Do If the Department Does Not Comply with the New License Application Processing Times? (a) Does this section apply to me? This section applies if you applied for a new money transmission, [or] currency exchange or depository agent license under Finance Code, Chapter 151, and you believe that the department failed to comply with the application processing times specified in 33.13(e) or (h) of this title (relating to Application for New License). (b) May I file a complaint? Yes. If the department does not process your application for a new money transmission, [or] currency exchange or depository agent license within the time periods specified in 33.13(e) or (h) of this title (relating to Application for New License), you may file a written complaint with the banking commissioner. The complaint must set out the facts regarding the delay and the specific relief you seek. The department must receive your complaint PROPOSED RULES November 3, TexReg 6071

16 on or before the 30th day after the date the commissioner approves or denies your license application. (c) - (f) (No change.) What Fees Must I Pay to Get and Maintain a License? (a) Does this section apply to me? This section applies if you hold a money transmission, [or] currency exchange or depository agent license issued under Finance Code, Chapter 151, or are an applicant for a new money transmission, [or] currency exchange or depository agent license, as applicable. This section also applies if you are a person other than a license holder or applicant and are investigated under the authority of Finance Code, (b) (No change.) (c) What provisions of Finance Code, Chapter 151, authorize the fees, assessments, and reimbursements required under this section? The fees, assessments, and reimbursements established by or required under this section are authorized by one or more of the following provisions of Finance Code, Chapter 151: (a)(5), (e), (b)(1), (b)(1), (a)(5), (b)(1), (c)(3), [and] (i), (b)(1), and (a)(5). (d) What fees must I pay to obtain a new license? (1) You must pay a non-refundable $10,000 application fee to obtain a new money transmission license, [or] a non-refundable $5,000 application fee to obtain a currency exchange license or a nonrefundable $5,000 application fee to obtain a depository agent license. You may also be required to pay the following additional fees: (A) If the commissioner determines that it is necessary to conduct an on-site investigation of your business, you must pay a non-refundable investigation fee at a rate of $75 per hour for each department examiner required to conduct the investigation and all associated travel expenses; (B) If the commissioner determines that it is necessary to employ a third-party screening service to assist with the investigation of your license application, you must pay the department for the reasonable costs for the third-party investigation; and (C) If the commissioner determines it is necessary to perform background checks using fingerprint identification records, you must either submit payment for the costs of this service at the time you file your application or pay the department upon request. (2) To apply for a temporary money transmission license authorized under Finance Code, , you must pay a non-refundable $2,500 temporary license application fee in addition to the fees required under paragraph (1) of this subsection. (3) To apply for a temporary depository agent license authorized under Finance Code, , you must pay a non-refundable $2,500 temporary license application fee in addition to the fees required under paragraph (1) of this subsection. (4) [(3)] The commissioner may reduce the fees required under paragraphs (1), [or] (2) or (3) of this subsection, if the commissioner determines that a lesser amount than would otherwise be collected is necessary to administer and enforce Finance Code, Chapter 151, and this chapter. (e) What fees must I pay to maintain my money transmission or currency exchange license? You must pay your annual assessment. Subject to paragraph (3) of this subsection, the amount of your annual assessment is determined based on the total annual dollar amount of your Texas money transmission and or currency exchange transactions, as applicable, as reflected on your most recent annual report filed with the department under Finance Code, (b)(2). (1) If you hold a currency exchange license, you must pay the annual assessment specified in the following table: Figure: 7 TAC 33.27(e)(1) (No change.) (2) If you hold a money transmission license, you must pay the annual assessment specified in the following table: Figure: 7 TAC 33.27(e)(2) (No change.) (3) If you are a new license holder and have not yet filed your first annual report under Finance Code, (b)(2), you must pay the minimum annual assessment specified by paragraph (1) or (2) of this subsection, as applicable, prorated for the number of quarters remaining in the department's fiscal year after the date your license is issued. (f) What fees must I pay to maintain my depository agent license? You must pay your annual license fee. The amount of your annual license fee is the cost of your annual examination, which is calculated at a rate of $75 per hour for each examiner and all associated travel expenses for an examination. The annual license fee will be calculated in this manner for all license fees owed from September 1, 2017 to August 31, (g) [(f)] What fees must I pay in connection with a proposed change of control of my money transmission, [or] currency exchange or depository agent business? (1) You must pay a non-refundable $1,000 fee at the time you file an application requesting approval of your proposed change of control. (2) You must pay a non-refundable $500 fee to obtain the department's prior determination of whether a person would be considered a person in control and whether a change of control application must be filed. If the department determines that a change of control application is required, the prior determination fee will be applied to the fee required under paragraph (1) of this subsection. (3) If the department's review of your change of control application or prior determination request requires more than eight employee hours, you must pay an additional review fee of $75.00 per employee hour for every hour in excess of eight hours. (4) The commissioner may reduce the filing fees described in paragraph (1) or (2) of this subsection, if the commissioner determines that a lesser amount than would otherwise be collected is necessary to administer and enforce Finance Code, Chapter 151, and this chapter. (h) [(g)] What fees must I pay in connection with a department investigation? (1) If the commissioner considers it necessary or appropriate to investigate you or another person in order to administer and enforce Finance Code, Chapter 151, as authorized under , you or the investigated person must pay the department an investigation fee calculated at a rate of $75.00 per employee hour for the investigation and all associated travel expenses. (2) If the commissioner determines that it is necessary to employ a third-party screening service to assist with an investigation, you must pay the department for the costs incurred for the third-party investigation. (3) If the commissioner determines it is necessary to perform background checks using fingerprint identification records in an investigation, you must pay the department the costs incurred for this service. 42 TexReg 6072 November 3, 2017 Texas Register

17 (i) [(h)] What other fees must I pay? (1) If the department does not receive your completed annual report on or before the due date prescribed by the commissioner under Finance Code, , you must pay a late fee of $100 per day for each business day after the due date that the department does not receive your completed annual report. (2) If more than one examination is required in the same fiscal year because of your failure to comply with Finance Code, Chapter 151, this chapter, or a department directive, you must pay for the additional examination at a rate of $75 per hour for each examiner required to conduct the additional examination and all associated travel expenses. A fiscal year is the 12-month period from September 1st of one year to August 31st of the following year. (3) If you are a new license holder and have not yet filed your first annual report required under Finance Code, (b)(2), you must pay an examination fee of $75 per hour for each examiner and all associated travel expenses for an examination. The portion of this fee attributable to hourly charges shall be reduced by an amount equal to 50% of the annual assessment you paid pursuant to subsection (e)(3) of this section, but not below zero. (4) If the department travels out-of-state to conduct your examination, you must pay for all associated travel expenses. (5) If the commissioner determines it is necessary to conduct an on-site examination of your authorized delegate to ensure your compliance with Finance Code, Chapter 151, you must pay an examination fee of $75 per hour for each examiner and any associated travel expenses. (j) [(i)] How and when do I need to pay for the fees required by this section? (1) You must pay the license application fees required under subsection (d)(1)-(3) [subsections (d)(1) and (d)(2)] of this section at the time you file your application for a license. (2) The department will bill you by written invoice for any investigation and third-party screening service fees under subsection (d)(1)(a), (B), or (C) [subsections (d)(1)(a), (B), or (C)] of this section. You must pay the fees within 10 days of receipt of the department's written invoice. (3) Your annual assessment required under subsection (e) of this section may be billed in quarterly or fewer installments in such periodically adjusted amounts as reasonably necessary to pay for the costs of examination and to administer Finance Code, Chapter 151. You must pay the annual assessment fee by ACH debit, or by another method if directed to do so by the department. At least 15 days prior to the scheduled ACH transfer, the department will send you a notice specifying the amount of the payment due and the date the department will initiate payment by ACH debit. The commissioner may decrease your annual assessment if it is determined that a lesser amount than would otherwise be collected is necessary to administer the Act. (4) You must pay the filing fees required by subsection (g) [(f)] of this section at the time you file your proposed change of control or prior determination request. You must pay any required additional fees within 10 days of receipt of the department's written invoice. (5) You or another person must pay the investigation fee required under subsection (h) [(g)] of this section within 10 days of receipt of the department's written invoice. (6) If you owe a late fee as provided by subsection (i)(1) [(h)(1)] of this section, you must pay this fee immediately upon receipt of the department's written invoice. (7) The department will bill you for any additional examination fees required under subsection (i)(2), (3), (4), or (5) [subsections (h)(2), (3), (4), or (5)] of this section by written invoice. You must pay this additional examination fee within 10 days of receipt of the department's written invoice. (8) A fee is considered paid as of the date the department receives payment. (k) [(j)] What if I cannot afford the annual assessment? (1) This subsection applies only if you hold a currency exchange license. If you are experiencing financial difficulties, you may be able to obtain a temporary reduction in the amount of your annual assessment for one year by meeting the requirements of this subsection. (2) To request a reduction in your annual assessment, you must file a written application as described in paragraph (2)(A) of this subsection and the commissioner must find that your application satisfies the requirements described in paragraph (2)(B) of this subsection. If the commissioner decides to reduce your annual assessment, the commissioner has discretion to determine the amount of the reduction. you must: (A) To request a reduction in your annual assessment, (i) file a written application with the department not later than 10 days before the date the current annual assessment is due, accompanied by a written business recovery plan and other supporting documentation sufficient to demonstrate that you satisfy each factor described in paragraph (2)(B) of this subsection; and (ii) file any additional documentation the department requests not later than the seventh day after the date you receive the written request. (B) The commissioner will not reduce your annual assessment unless the commissioner finds, based on your application and supporting documentation, that: (i) Your payment of the full assessment will cause you to become financially insolvent, and your current or impending financial condition is temporary and you reasonably expect to have the ability to pay your annual assessment in full by at least the third year after the year in which your request is made, based on a written business recovery plan that is reasonable and attainable; or (ii) your business is temporarily closed during the annual assessment period and you have conducted no currency exchange activities during that period How do I Provide Information to My Customers about How to File a Complaint? (a) Does this section apply to me? This section applies if you hold a money transmission, [or] currency exchange or depository agent license issued by the department under Finance Code, Chapter 151. (b) Definitions. Words used in this section that are defined in Finance Code, Chapter 151, have the same meaning as defined in the Finance Code. The following words and terms, when used in this section, shall have the following meanings unless the text clearly indicates otherwise. (1) Conspicuously posted--displayed so that a customer with 20/20 vision can read it from the place where he or she would typically conduct business with you or, alternatively, on a bulletin board, in plain view, on which you post notices to the general public (such as equal housing posters, licenses, Community Reinvestment Act notices, etc.). PROPOSED RULES November 3, TexReg 6073

18 (2) Customer--As to money transmission or currency exchange, "customer" means any Texas resident [Any person] to whom, either directly or through an authorized delegate, you provide or have provided money transmission or currency exchange products or services or for whom you conduct or have conducted a money transmission or currency exchange transaction. As to depository agent services, "customer" means any person to whom you provide or have provided depository agent services or for whom you conduct or have conducted a depository agent services transaction. (3) Privacy notice--any notice regarding a person's right to privacy that you are required to give under a specific state or federal law. (4) Required notice--the notice described in subsection (d) of this section. (c) Must I provide notice to customers about how to file complaints? Yes. You must tell each of your [Texas] customers how to file a complaint concerning the money transmission, [or] currency exchange or depository agent business you conduct under Finance Code, Chapter 151, in accordance with this section. (d) What must the notice say? (1) You must use: (A) a notice that conforms to the complaint notice requirements of the Remittance Transfer Rule of Regulation E (12 C.F.R. Part 1005, Subpart B), such as described by 12 C.F.R (b)(2)(vi), if the Remittance Transfer Rule applies to you; or (B) a notice that substantially conforms to the language and form of the following notice: If you have a complaint, first contact the consumer assistance division of (Name of License Holder) at (License Holder consumer assistance telephone number), if you still have an unresolved complaint regarding the company's (money transmission, currency exchange or depository agent) [money transmission or currency exchange] activity, please direct your complaint to: Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705, (toll free), (2) You must provide the required notice in the language in which the transaction is conducted. (e) How and where must I provide the required notice? (1) If a state or federal law requires you to send a privacy notice to your customers, you must include the required notice with each privacy notice. (2) If you maintain a website by which a customer may remit money for transmission, complete a depository agent services transaction or obtain information about you or the customer's transaction or an existing account, you must include the required notice on your website. The notice must be prominently displayed on the initial page the customer uses to initiate the remittance, transaction or access the information, or on a page available no more than one link from the initial page. The link must clearly describe the information available by clicking the link, e.g., "Texas customers click here for information about filing complaints about our money transmission or currency exchange product or service" or "Customers click here for information about filing complaints about our depository agent services." (3) In addition to including the required notice in a privacy notice in accordance with paragraph (1) of this subsection and on your website in accordance with paragraph (2) of this subsection, you must tell customers how to file complaints by one or more of the following methods: (A) You may include the required notice in at least 8 point type, on each payment instrument or other access device or receipt used in connection with your money transmission, [or] currency exchange or depository agent business, provided that: (i) the payment instrument or other access device constitutes the only means of accessing the money, bullion or specie received for transmission; or (ii) you issue a receipt for every money transmission, [or] currency exchange or depository agent service transaction you conduct. (B) If you personally receive all the funds, bullion or specie paid by your customers, you may conspicuously post the required notice where you conduct money transmission, [or] currency exchange or depository agent activities with customers on a face to face basis. (C) You may provide each customer with the required notice separately, provided that: (i) not later than the time the transaction is conducted, you deliver the required notice in a form that your customer can retain; or (ii) if you use an access device, such as a stored value card, in your money services business and mail the device to your customer, you include the required notice in the mailing; and (iii) if the same access device may be used continuously, such as a reloadable stored value card, you also deliver the required notice to your customer at least once every twelve months. You may include the required notice with a privacy statement, with or on another statement, or by another means so long as the customer actually receives the notice within each twelve-month period. (4) If your business is entirely internet based, so that account relationships and transactions are initiated solely by means of the internet, the additional disclosures described in paragraph (3) of this subsection are not required. (f) - (h) (No change.) Security Required for Depository Agents. (a) An applicant for a depository agent license must provide, and a depository agent license holder must maintain at all times, security consisting of a surety bond, an irrevocable letter of credit, or a deposit in cash, bullion or specie instead of a bond in accordance with this section. (b) The amount of the required security is equal to the greater of $500,000 or one percent of the license holder's total yearly dollar volume of depository agent services business or the applicant's projected total volume of depository agent services business for the first year of licensure, up to a maximum of $2 million. When the amount of the required security exceeds $1 million, the applicant or license holder may, in the alternative, provide security in the amount of $1 million, plus a dollar for dollar increase in the net worth of the applicant or license holder over the amount required under (b)(3). (c) The security must: (1) be in a form satisfactory to the commissioner; (2) be payable to any claimant or to the commissioner, on behalf of a claimant or this state, for any liability arising out of the license holder's depository agent services business, incurred under, subject to, or by virtue of this chapter; and (3) if the security is a bond, be issued by a qualified surety company authorized to engage in business in this state and acceptable 42 TexReg 6074 November 3, 2017 Texas Register

19 to the commissioner or, if the security is an irrevocable letter of credit, be issued by a financial institution acceptable to the commissioner. (d) A claimant may bring suit directly on the security, or the commissioner may bring suit on behalf of the claimant or the state, either in one action or in successive actions. (e) The commissioner may collect from the security or proceeds of the security any delinquent fee, assessment, cost, penalty, or other amount imposed on and owed by a license holder. If the security is a surety bond, the commissioner shall give the surety reasonable prior notice of a hearing to impose an administrative penalty against the license holder, provided that a surety may not be considered an interested, aggrieved, or affected person for purposes of an administrative proceeding under or Chapter 2001, Government Code. (f) The security remains in effect until canceled, which may occur only after providing 30 days' written notice to the commissioner. Cancellation does not affect any liability incurred or accrued during the period covered by the security. (g) The security shall cover claims for at least one year after the license holder surrenders its license or otherwise ceases to engage in activities for which a license is required under this subchapter. However, the commissioner may permit the amount of the security to be reduced or eliminated before that time to the extent that the amount of the license holder's obligations to the department and to purchasers is reduced. The commissioner may permit a license holder to substitute another form of security when the license holder ceases to provide depository agent services. (h) If the commissioner at any time reasonably determines that the required security is insecure, deficient in amount, or exhausted in whole or in part, the commissioner by written order shall require the license holder to file or make new or additional security to comply with this section. (i) Instead of providing all or part of the amount of the security required by this section, an applicant or license holder may deposit, with a financial institution possessing trust powers that is authorized to conduct a trust business in this state and is acceptable to the commissioner, an aggregate amount of United States currency, certificates of deposit, or other cash equivalents that equals the total amount of the required security or the remaining part of the security. The deposit: (1) must be held in trust in the name of and be pledged to the commissioner; (2) must secure the same obligations as the security; and (3) is subject to other conditions and terms the commissioner may reasonably require. (j) Instead of providing all or part of the amount of the security required by this section, an applicant or license holder may deposit, with an independent vault or depository that is acceptable to the commissioner, an aggregate amount of bullion or specie that equals the total amount of the required security or the remaining part of the security, plus an additional 15 percent to account for fluctuations in the value of the bullion or specie. The deposit of bullion or specie: (1) must be held in trust in the name of and be pledged to the commissioner; (2) must secure the same obligations as the security; and (3) is subject to other conditions and terms the commissioner may reasonably require. (k) The security is considered by operation of law to be held in trust for the benefit of this state and any individual to whom an obligation arising under this chapter is owed, and may not be considered an asset or property of the license holder in the event of bankruptcy, receivership, or a claim against the license holder unrelated to the license holder's obligations under this chapter Net Worth Required for Depository Agents. (a) An applicant for a depository agent license must possess, and a depository agent license holder must maintain at all times, a minimum net worth computed in accordance with generally accepted accounting principles of: (1) $100,000, if business is proposed to be or is conducted at four or fewer locations; or (2) $500,000, if business is proposed to be or is conducted at five or more locations or over the internet. (b) The commissioner may increase the amount of net worth required of an applicant or license holder, up to a maximum of $1 million, if the commissioner determines, with respect to the applicant or license holder, that a higher net worth is necessary to achieve the purposes of this chapter based on: (1) the nature and volume of the projected or established business; (2) the number of locations at or through which depository agent services is or will be conducted; (3) the amount, nature, quality, and liquidity of its assets; (4) the amount and nature of its liabilities; (5) the history of its operations and prospects for earning and retaining income; control; (6) the quality of its operations; (7) the quality of its management; (8) the nature and quality of its principals and persons in (9) the history of its compliance with applicable state and federal law; and (10) any other factor the commissioner considers relevant. (c) At least 50 percent of the applicant s or license holder s total net worth under this section must be tangible net worth What Records Must I Keep Related to Depository Agent Services Transactions? (a) Does this section apply to me? This section applies to you if you hold a depository agent license issued by the department under Finance Code, Chapter 151. (b) What are the general recordkeeping requirements? (1) As a general matter, you must maintain: (A) records of all filings made, and that contain all information required, under applicable federal laws and regulations, including the Bank Secrecy Act and 31 CFR Chapter X (collectively BSA); (B) in addition to the records required under Finance Code, Chapter 151, the records required under this section related specifically to depository agent services transactions; (C) records sufficient to enable you to file accurate and complete reports with the commissioner or department in accordance PROPOSED RULES November 3, TexReg 6075

20 with Finance Code, Chapter 151 and Chapter 33 of this title (relating to Money Services Businesses); and (D) records sufficient to enable you to file accurate and complete reports with the comptroller in accordance with Government Code, Chapter (2) You must obtain and retain the information required under this section in a log or by another means of retention that allows the information to be readily retrieved. In addition, you must: (A) maintain your records in such a manner that you can identify and make available to the department the records related to your depository agent services activity; and (B) make your records available to the department within the time period reasonably requested. (c) What specific records must I keep related to depository agent services transactions? (1) For purposes of paragraph (2) of this subsection, "identifying number" means the taxpayer identification number (e.g., social security, employee identification number) or passport number of your customer or the person on whose behalf your customer conducts the transaction, as applicable, or, if your customer or other person has no such number and is an alien, then the number of an alien identification card or other official document evidencing foreign nationality or residence, such as a foreign driver's license or foreign voter registration card. (2) You must keep a record for each transaction that contains: customer; (A) the name, address and telephone number of your (B) an identifying number for your customer and, if applicable, the person on whose behalf your customer is conducting the transaction; (C) the type of photograph identification presented by your customer; (D) the identity of the issuer of the photograph identification; (E) your customer's date of birth; (F) your customer s account number at the depository or, if applicable, the account number of the person on whose behalf your customer is conducting the transaction; (G) the amount of the transaction, recorded in the amount of precious metals bullion or specie and/or United States dollars, as applicable; conducted; card); (H) the date of the transaction; (I) the time of day the transaction is conducted; (J) the location of the office where the transaction is (K) the exchange rate used for pricing the transaction; (L) the amount of any fee charged for the transaction; (M) the method of payment (e.g., cash, check, credit (N) any payment instructions received from the customer with the transaction order; (O) any form relating to the transaction that is completed or signed by the person placing the transaction; and (P) the unique number of the receipt required under of this title (relating to What Receipts Must I Issue Related to Depository Agent Transactions?). (d) May I obtain a waiver of the recordkeeping requirements? The commissioner may waive any requirement of this section upon a showing of good cause if the commissioner determines that: (1) you maintain records sufficient for the department to examine your depository agent business; and (2) the imposition of the requirement would cause an undue burden on you and conformity with the requirement would not significantly advance the state's interest under Finance Code, Chapter What Receipts Must I Issue Related to Depository Agent Services Transactions? (a) Does this section apply to me? This section applies if you hold a depository agent license issued under Finance Code, Chapter 151. (b) Must I issue a receipt in connection with the depository agent services transactions I conduct? (1) For purposes of this section "receipt" means a receipt, electronic record or other written confirmation. If the customer conducts the transaction online or electronically, the term includes a means by which the customer can save or print a receipt or other record of the transaction that contains the information required under this section. (2) You must issue a receipt for each transaction that: (A) can be linked to the transaction records required under 33.73(c)(3) of this title (relating to What Records Must I Keep Related to Depository Agent Services Transactions?); and (B) contains: (i) the name of your licensed business and the business address and telephone number; (ii) the unique transaction or identification number; (iii) the date of the transaction; (iv) the amount of the transaction in precious metals bullion or specie and/or United States dollars, as applicable; the exchange rate used for pricing the transaction; (v) (vi) the estimated date that the precious metals bullion or specie will be delivered to the depository, as applicable; and (vii) the amount of any fee charged for the transaction. (3) With respect to a currency transmission transaction subject to Finance Code, Chapter 278, you must provide the receipt required under Finance Code, and , as applicable. The information required under those sections may be included on the receipt required under paragraph (2) of this subsection Exemptions for the Texas Bullion Depository and an individual, partnership or corporation that operates the Texas Bullion Depository pursuant to a contract with the Comptroller. (a) The depository, as defined by , Government Code, to the extent that it conducts money services as defined by Finance Code , need not obtain a license under Finance Code, Chapter TexReg 6076 November 3, 2017 Texas Register

21 (b) An individual, partnership or corporation who conducts depository agent services as defined by Finance Code , need not obtain a license under Finance Code, Chapter 151, so long as that individual, partnership or corporation: (1) is under written contract with the comptroller to operate the depository; and contract. (2) acts only within the scope of authority conferred by that (c) Any individual, partnership or corporation exempted from licensing under subsection (b) of this section must immediately contact the Department of Banking in the event that any of the conditions listed in subsection (b) of this section 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 October 20, TRD Catherine Reyer General Counsel Texas Department of Banking Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 4. DEPARTMENT OF SAVINGS AND MORTGAGE LENDING CHAPTER 80. TEXAS RESIDENTIAL MORTGAGE LOAN COMPANIES SUBCHAPTER A. GENERAL PROVISIONS 7 TAC 80.2 The Finance Commission of Texas (the "Finance Commission") on behalf of the Department of Savings and Mortgage Lending (the "Department"), proposes to amend 7 TAC 80.2, relating to definitions. In general, the purpose of the proposal is to clarify and better organize the requirements regarding physical offices. 7 TAC 80.2 is amended to simplify the definition of a physical office to mean an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications are conducted. Caroline C. Jones, the Savings and Mortgage Lending Commissioner, has determined that for the first five-year period the proposed rules would be in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering this rule. Commissioner Jones also has determined that for each year of the first five years the proposal would be in effect, the public benefits anticipated as a result of the proposal would be an increase in the readability and clarity of the regulations that pertain to physical offices. There will be no effect on the individuals who are required to comply with the proposal. There will be no adverse economic effect on small or micro businesses and no difference in the cost of compliance for small businesses as compared to large businesses. Government Growth Impact Statement. Commissioner Jones has determined that during the first five years the rule as proposed would be in effect: (1) the proposed rule does not create or eliminate a government program; (2) implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions; (3) implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency; (4) the proposed rule does not require an increase or decrease in fees paid to the agency; (5) the proposed rule does not create a new regulation; (6) the proposed rule does not expand, limit, or repeal an existing regulation; (7) the proposed rule does not increase or decrease the number of individuals subject to the rule's applicability; and (8) the proposed rule does not positively or adversely affect this state's economy. Comments on the proposed amendments may be submitted in writing to Devyn F. Wills, Associate General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas or by to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register. The proposal is made under the authority granted by the Texas Legislature to the Finance Commission pursuant to Tex. Fin. Code The statutory provisions affected by the proposal are contained in Tex. Fin. Code, chapter Definitions. As used in this chapter, the following terms have the meanings indicated: (1) - (9) (No change.) (10) "Physical Office" means an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications are conducted. [It must have a street address. A post office box or other similar designation will not suffice. It must be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. During the hours in which the physical office is open, at least one staff member must be present to assist customers. The physical office of a licensee need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for inspection during normal business hours.] PROPOSED RULES November 3, TexReg 6077

22 (11) - (12) (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 October 20, TRD Devyn F. Wills Associate General Counsel Department of Savings and Mortgage Lending Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER C. DUTIES AND RESPONSIBILITIES 7 TAC , The Finance Commission of Texas (the "Finance Commission") on behalf of the Department of Savings and Mortgage Lending (the "Department"), proposes to amend 7 TAC , relating to required disclosures, and proposes new , relating to physical offices. In general, the purpose of the proposal is to reduce regulatory burden and create parity between the Texas Mortgage Company and Mortgage Banker Disclosures, as found in 7 TAC and , respectively, and to clarify and better organize the requirements regarding physical offices. Section is amended to simplify the information contained in the Texas Mortgage Company Disclosure, thus creating parity with the Texas Mortgage Banker Disclosure. In addition, the Texas Mortgage Company Disclosure is amended to add clarifying language, including that residential mortgage loan originators will be paid in compliance with Regulation Z. The proposed new outlines the requirements a physical office must meet and that the physical office of a licensee need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for inspection during normal business hours. Caroline C. Jones, the Savings and Mortgage Lending Commissioner, has determined that for the first five-year period the proposed rules would be in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering this rule. Commissioner Jones also has determined that for each year of the first five years the proposal would be in effect, the public benefits anticipated as a result of the proposal will be a reduction of regulatory burden by reducing the contents of the notice and clarifying that residential mortgage loan originator will be paid in compliance with Regulation Z. There will be no effect on the individuals who would be required to comply with the proposal. There will be no adverse economic effect on small or micro businesses and no difference in the cost of compliance for small businesses as compared to large businesses. Government Growth Impact Statement. Commissioner Jones has determined that during the first five years the new rule as proposed would be in effect: (1) the proposed rule does not create or eliminate a government program; (2) implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions; (3) implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency; (4) the proposed rule does not require an increase or decrease in fees paid to the agency; (5) the proposed rule does not creates a new regulation; (6) the proposed rule does not expand, limit, or repeal an existing regulation; (7) the proposed rule does not increase or decrease the number of individuals subject to the rule's applicability; and (8) the proposed rule does not positively or adversely affects this state's economy. Comments on the proposal may be submitted in writing to Devyn F. Wills, Associate General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas or by to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register. The proposal is made under the authority granted by the Texas Legislature to the Finance Commission pursuant to Tex. Fin. Code The statutory provisions affected by the proposal are contained in Tex. Fin. Code, chapter Required Disclosure. (a) An originator sponsored under Finance Code, Chapter 156 shall include the following notice, Figure: 7 TAC (a), to a residential mortgage loan applicant with an initial application for a residential mortgage loan: Figure: 7 TAC (a) [Figure: 7 TAC (a)] (b) - (c) (No change.) Physical Office. (a) A Physical Office must: (1) have a physical or street address. A post office box or other similar designation will not suffice. (2) be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. (3) have at least one (1) staff member present to assist customers during the hours in which the Physical Office is open. (b) The Physical Office of a licensee need not be the location at which such person's required records are maintained, but the location at 42 TexReg 6078 November 3, 2017 Texas Register

23 which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for inspection during normal business hours. 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 October 20, TRD Devyn F. Wills Associate General Counsel Department of Savings and Mortgage Lending Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 81. MORTGAGE BANKERS AND RESIDENTIAL MORTGAGE LOAN ORIGINATORS SUBCHAPTER A. GENERAL PROVISIONS 7 TAC 81.2 The Finance Commission of Texas (the "Finance Commission") on behalf of the Department of Savings and Mortgage Lending (the "Department"), proposes to amend 7 TAC 81.2, relating to definitions. In general, the purpose of this proposal is to clarify and better organize the requirements regarding physical offices. Proposed 7 TAC 81.2 is amended to simplify the definition of a physical office to mean an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications are conducted. Caroline C. Jones, the Savings and Mortgage Lending Commissioner, has determined that for the first five-year period the proposed rules would be in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering this rule. Commissioner Jones also has determined that for each year of the first five years this proposal would be in effect, the public benefits anticipated as a result of this proposal would be an increase in the readability and clarity of the regulations that pertain to physical offices. There will be no effect on the individuals who are required to comply with this proposal. There will be no adverse economic effect on small or micro businesses and no difference in the cost of compliance for small businesses as compared to large businesses. Government Growth Impact Statement. Commissioner Jones has determined that during the first five years the new rule as proposed would be in effect: (1) the proposed rule does not create or eliminate a government program; (2) implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions; (3) implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency; (4) the proposed rule does not require an increase or decrease in fees paid to the agency; (5) the proposed rule does not create a new regulation; (6) the proposed rule does not expand, limit, or repeal an existing regulation; (7) the proposed rule does not increase or decrease the number of individuals subject to the rule's applicability; and (8) the proposed rule does not positively or adversely affect this state's economy. Comments on the proposal may be submitted in writing to Devyn F. Wills, Associate General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas or by to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register. This proposal is made under the authority granted by the Texas Legislature to the Finance Commission pursuant to Tex. Fin. Code The statutory provisions affected by this proposal are contained in Tex. Fin. Code, chapter Definitions. As used in this chapter, the following terms have the meanings indicated: (1) - (5) (No change.) (6) "Physical Office" means an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications are conducted. [It must have a street address. A post office box or other similar designation will not suffice. It must be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. During the hours in which the physical office is open, at least one staff member must be present to assist customers. The physical office of a licensee need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for inspection during normal business hours.] (7) - (8) (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 October 20, TRD Devyn F. Wills Associate General Counsel Department of Savings and Mortgage Lending Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PROPOSED RULES November 3, TexReg 6079

24 SUBCHAPTER B. LICENSING 7 TAC The Finance Commission of Texas (the "Finance Commission") on behalf of the Department of Savings and Mortgage Lending (the "Department"), proposes new 7 TAC , relating to pre-licensing education. In general, the purpose of creating this rule is to implement H.B. 3342, which the Texas Legislature passed in the 85th regular legislative session. H.B amended Tex. Fin. Code (h) and changed the period during which an individual who fails to maintain a residential mortgage loan originator license is required to retake the pre-licensing education requirements prescribed by the S.A.F.E. Mortgage Licensing Act, from at least five consecutive years, to a period established by rule of the Finance Commission. H.B further requires the Finance Commission to adopt the rules required by the newly amended Tex. Fin. Code (h) not later than December 1, The change in the law applies only to an application for a license filed on or after December 1, An application for a license filed before December 1, 2017,is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose. The proposed provides the circumstance under which an individual must retake the pre-licensing education requirements prescribed by the S.A.F.E. Mortgage Licensing Act. Caroline C. Jones, the Savings and Mortgage Lending Commissioner, has determined that for the first five-year period this proposal would be in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering this rule. Commissioner Jones has also determined that, for each year of the first five years the new rule as proposed would be in effect, the public benefit anticipated as a result will be that the Finance Commission may modify the applicable pre-licensing education requirements, as required by the S.A.F.E. Mortgage Licensing Act, without having to wait for the next legislative session to convene. There will be no effect on individuals required to comply with this proposal. There will be no adverse economic effect on small or micro businesses and no difference in the cost of compliance for small businesses as compared to large businesses. Government Growth Impact Statement. Commissioner Jones has determined that during the first five years the new rule as proposed is in effect: (1) the proposed rule does not create or eliminate a government program; (2) implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions; (3) implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency; (4) the proposed rule does not require an increase or decrease in fees paid to the agency; (5) the proposed rule does not creates a new regulation; (6) the proposed rule does not expand, limit, or repeal an existing regulation; (7) the proposed rule does not increase or decrease the number of individuals subject to the rule's applicability; and (8) the proposed rule does not positively or adversely affects this state's economy. Comments on the proposal may be submitted in writing to Devyn F. Wills, Associate General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas or by to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register. This proposal is made under the authority granted by the Texas Legislature to the Finance Commission pursuant to H.B The statutory provisions affected by this proposal are contained in Tex. Fin. Code, chapter Pre-licensing Education. An individual must retake the pre-licensing education requirements prescribed by the S.A.F.E. Mortgage Licensing Act if the individual: (1) fails to acquire a valid residential mortgage loan originator license or federal registration within five years from the date of completing the pre-licensing education requirements prescribed by the S.A.F.E. Mortgage Licensing Act; or (2) has obtained a residential mortgage loan originator license or federal registration but did not maintain an active license or federal registration for five consecutive years. 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 October 20, TRD Devyn F. Wills Associate General Counsel Department of Savings and Mortgage Lending Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER C. DUTIES AND RESPONSIBILITIES 7 TAC The Finance Commission of Texas (the "Finance Commission") on behalf of the Department of Savings and Mortgage Lending (the "Department"), proposes new , relating to physical offices. In general, the purpose of this proposal is to clarify and better organize the requirements regarding physical offices. The proposed new 7 TAC outlines the requirements a physical office must meet and that the physical office of a licensee need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner 42 TexReg 6080 November 3, 2017 Texas Register

25 or the Commissioner's designee for inspection during normal business hours. Caroline C. Jones, the Savings and Mortgage Lending Commissioner, has determined that for the first five-year period the proposed rules would be in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering this rule. Commissioner Jones also has determined that for each year of the first five years this proposal would be in effect, the public benefits anticipated as a result of this proposal would be an increase in the readability and clarity of the regulations that pertain to physical offices. There will be no effect on the individuals who are required to comply with this proposal. There will be no adverse economic effect on small or micro businesses and no difference in the cost of compliance for small businesses as compared to large businesses. Government Growth Impact Statement. Commissioner Jones has determined that during the first five years the new rule as proposed would be in effect: (1) the proposed rule does not create or eliminate a government program; (2) implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions; (3) implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency; (4) the proposed rule does not require an increase or decrease in fees paid to the agency; (5) the proposed rule does not create a new regulation; (6) the proposed rule does not expand, limit, or repeal an existing regulation; (7) the proposed rule does not increase or decrease the number of individuals subject to the rule's applicability; and (8) the proposed rule does not positively or adversely affect this state's economy. Comments on the proposal may be submitted in writing to Devyn F. Wills, Associate General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas or by to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register. This proposal is made under the authority granted by the Texas Legislature to the Finance Commission pursuant to Tex. Fin. Code The statutory provisions affected by this proposal are contained in Tex. Fin. Code, chapter Physical Office. (a) A Physical Office must: (1) have a physical or street address. A post office box or other similar designation will not suffice. (2) be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. (3) have at least one (1) staff member present to assist customers during the hours in which the Physical Office is open. (b) The Physical Office of a licensee need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for inspection during normal business hours. 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 October 20, TRD Devyn F. Wills Associate General Counsel Department of Savings and Mortgage Lending Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 5. OFFICE OF CONSUMER CREDIT COMMISSIONER CHAPTER 83. REGULATED LENDERS AND CREDIT ACCESS BUSINESSES SUBCHAPTER A. RULES FOR REGULATED LENDERS DIVISION 5. INTEREST CHARGES ON LOANS 7 TAC The Finance Commission of Texas (commission) proposes amendments to in Chapter 83, concerning Regulated Lenders and Credit Access Businesses. In general, the purpose of the rule amendments is to specify that in a consumer loan under Texas Finance Code, Chapter 342, Subchapter E, the administrative fee may be included in the cash advance or principal balance on which interest is computed. In 2013, the Texas Legislature passed SB 1251, which amended Texas Finance Code, to provide that the Subchapter E administrative fee is not considered interest, and authorized the commission to set the maximum amount of the administrative fee. The administrative fee is a flat, nonrefundable charge paid to the lender. The commission adopted a rule at current 7 TAC (1), specifying that the maximum amount of the administrative fee is $100. Since 2013, the agency has received questions from stakeholders about whether the administrative fee can be included in the cash advance or principal balance on which interest is computed. This issue is not addressed in the current rules. PROPOSED RULES November 3, TexReg 6081

26 The agency circulated an early draft of the rule changes to interested stakeholders. The agency received two informal written precomments, both supporting the draft as written. Proposed (5) explains that the administrative fee may be included in the cash advance or principal balance on which interest is computed. This amendment is consistent with Texas Finance Code, (f), which specifies that the administrative fee is not interest. The amendment is also consistent with the definition of "cash advance" in Texas Finance Code, (3), which includes an "amount that is paid at the borrower's direction or request, on the borrower's behalf, or for the borrower's benefit." In addition, the amendment is consistent with Texas case law governing the calculation of the principal balance for a loan. See Tanner Dev. Co. v. Ferguson, 561 S.W.2d 777, 782 (Tex. 1977) (holding that the true principal of a loan is calculated by subtracting interest from the amount advanced to the borrower). Leslie L. Pettijohn, Consumer Credit Commissioner, 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 administering the amendments. Commissioner Pettijohn also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of the changes will be that the commission's rules will provide clearer guidance and will be more easily understood. Another public benefit of these rule amendments will be increased uniformity and consistency in loan contracts. There is no anticipated cost to persons who are required to comply with the proposed amendments. There will be no adverse economic effect on rural communities or small or micro businesses. There will be no effect on individuals required to comply with the amendments as proposed. Comments on the proposal may be submitted in writing to Laurie Hobbs, Assistant General Counsel, Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas or by to laurie.hobbs@occc.texas.gov. To be considered, a written comment must be received on or before 5:00 p.m. central time on the 31st day after the date the proposal is published in the Texas Register. At the conclusion of business on the 31st day after the proposal is published in the Texas Register, no further written comments will be considered or accepted by the commission. The amendments are proposed under Texas Finance Code, , which authorizes the commission to adopt rules to enforce Title 4 of the Texas Finance Code. Additionally, the amendment to is proposed under Texas Finance Code, , which authorizes the commission to adopt rules to enforce Chapter 342. The statutory provisions affected by the proposed amendments are contained in Texas Finance Code, and Administrative Fee. An authorized lender may collect an administrative fee pursuant to Texas Finance Code, (f), on interest-bearing and precomputed loans. (1) - (4) (No change.) (5) The administrative fee may be included in the cash advance on which interest is computed under Texas Finance Code, (a) or (e). The administrative fee may be included in the principal balance on which interest is computed under Texas Finance Code, (d). 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 October 20, TRD Leslie L. Pettijohn Commissioner Office of Consumer Credit Commissioner Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 90. CHAPTER 342, PLAIN LANGUAGE CONTRACT PROVISIONS SUBCHAPTER B. SECURED CONSUMER INSTALLMENT LOANS (SUBCHAPTER E) 7 TAC The Finance Commission of Texas (commission) proposes amendments to in Chapter 90, concerning Chapter 342, Plain Language Contract Provisions. In general, the purpose of the rule amendments is to specify that in a consumer loan under Texas Finance Code, Chapter 342, Subchapter E, the administrative fee may be included in the cash advance or principal balance on which interest is computed. In 2013, the Texas Legislature passed SB 1251, which amended Texas Finance Code, to provide that the Subchapter E administrative fee is not considered interest, and authorized the commission to set the maximum amount of the administrative fee. The administrative fee is a flat, nonrefundable charge paid to the lender. The commission adopted a rule at current 7 TAC (1), specifying that the maximum amount of the administrative fee is $100. Since 2013, the agency has received questions from stakeholders about whether the administrative fee can be included in the cash advance or principal balance on which interest is computed. This issue is not addressed in the current rules. The agency circulated an early draft of the rule changes to interested stakeholders. The agency received two informal written precomments, both supporting the draft as written. Proposed amendments to (b)(7) add model plain language clauses to be used in transactions where the lender finances the administrative fee. Lenders that do not finance the administrative fee will be able to continue using the current model clauses in (b)(7). The amendments specify that the current model clauses should be used when the administrative fee is paid in cash or is not included in the cash advance on which interest is computed. The current model clauses are amended to include updated rate bracket amounts under Texas Finance Code, The amendments also add new clauses to be used when the administrative fee is financed. Each of the new clauses includes a statement of the amount of the cash advance, in order to ensure that the contract discloses the specific amount on which interest will be computed. 42 TexReg 6082 November 3, 2017 Texas Register

27 Current figures in (b)(7)(A), (b)(7)(c), and (b)(7)(e), have been amended and renumbered as (b)(7)(a)(i), (b)(7)(c)(i), and (b)(7)(e)(i). New figures have been added at (b)(7)(A)(ii), (b)(7)(c)(ii), and (b)(7)(e)(ii), for use when the administrative fee is financed. Leslie L. Pettijohn, Consumer Credit Commissioner, 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 administering the amendments. Commissioner Pettijohn also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of the changes will be that the commission's rules will provide clearer guidance and will be more easily understood. Another public benefit of these rule amendments will be increased uniformity and consistency in loan contracts. The new model clauses in will help lenders reduce the current cost of developing new loan contracts and submitting them as non-standard plain language contracts. There is no anticipated cost to persons who are required to comply with the proposed amendments. There will be no adverse economic effect on rural communities or small or micro businesses. There will be no effect on individuals required to comply with the amendments as proposed. Comments on the proposal may be submitted in writing to Laurie Hobbs, Assistant General Counsel, Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas or by to laurie.hobbs@occc.texas.gov. To be considered, a written comment must be received on or before 5:00 p.m. central time on the 31st day after the date the proposal is published in the Texas Register. At the conclusion of business on the 31st day after the proposal is published in the Texas Register, no further written comments will be considered or accepted by the commission. The amendments are proposed under Texas Finance Code, , which authorizes the commission to adopt rules to enforce Title 4 of the Texas Finance Code. The amendments to are proposed under Texas Finance Code, , which authorizes the commission to adopt rules governing the form of plain language contracts for loans under Chapter 342. The statutory provisions affected by the proposed amendments are contained in Texas Finance Code, and Model Clauses. (a) (No change.) (b) Model clauses for a Chapter 342, Subchapter E secured consumer installment loan contract. (1) - (6) (No change.) (7) Finance charge earnings and refund method. The model finance charge earnings and refund method clauses include rate bracket amounts that are updated annually in the Texas Credit Letter. The model finance charge earnings and refund method clause options read: (A) For contracts using the scheduled installment earnings method, Texas Finance Code, (a): [Figure: 7 TAC (b)(7)(A)] (i) For use when the administrative fee is paid in cash or is not included in the cash advance on which interest is computed: Figure: 7 TAC (b)(7)(A)(i) (ii) For use when the administrative fee is financed: Figure: 7 TAC (b)(7)(A)(ii) (B) For contracts using the scheduled installment earnings method, Texas Finance Code, (d): (i) For use when the administrative fee is paid in cash or is not included in the principal balance on which interest is computed: "The annual rate of interest is %. This interest rate may not be the same as the Annual Percentage Rate. You figure the Finance Charge by applying the scheduled installment earnings method as defined by the Texas Finance Code to the unpaid cash advance. The unpaid cash advance does not include the administrative fee, late charges, and returned check charges. If I prepay my loan in full before the final payment is due, I may save a portion of the Finance Charge. I will not get a refund if the refund would be less than $1.00. You base the Finance Charge and Total of Payments as if I will make each payment on the day it is due. My final payment may be larger or smaller than my regular payment." (ii) For use when the administrative fee is financed: "The cash advance is $. The annual rate of interest is %. This interest rate may not be the same as the Annual Percentage Rate. You figure the Finance Charge by applying the scheduled installment earnings method as defined by the Texas Finance Code to the unpaid cash advance. The unpaid cash advance includes the administrative fee, but does not include late charges and returned check charges. If I prepay my loan in full before the final payment is due, I may save a portion of the Finance Charge. I will not get a refund if the refund would be less than $1.00. You base the Finance Charge and Total of Payments as if I will make each payment on the day it is due. My final payment may be larger or smaller than my regular payment." (C) For contracts using the scheduled installment earnings method, Texas Finance Code, (e): [Figure: 7 TAC (b)(7)(C)] (i) For use when the administrative fee is paid in cash or is not included in the cash advance on which interest is computed: Figure: 7 TAC (b)(7)(C)(i) (ii) For use when the administrative fee is financed: Figure: 7 TAC (b)(7)(C)(ii) (D) For contracts using the scheduled installment earnings method, Texas Finance Code, (d): (i) For use when the administrative fee is paid in cash or is not included in the principal balance on which interest is computed: "The annual rate of interest is %. This interest rate may not be the same as the Annual Percentage Rate. You figure the Finance Charge by applying the true daily earnings method as defined by the Texas Finance Code to the unpaid portion of the cash advance. You base the Finance Charge and Total of Payments as if I will make each payment on the day it is due. You will apply payments on the date they are received. This may result in a different Finance Charge or Total of Payments. My final payment may be larger or smaller than my regular payment." (ii) For use when the administrative fee is financed: "The cash advance is $. The annual rate of interest is %. This interest rate may not be the same as the Annual Percentage Rate. You figure the Finance Charge by applying the true daily earnings method as defined by the Texas Finance Code to the unpaid portion of the cash advance. You base the Finance Charge and Total of Payments as if I will make each payment on the day it is due. You will apply payments on the date they are received. This may result in a dif- PROPOSED RULES November 3, TexReg 6083

28 ferent Finance Charge or Total of Payments. My final payment may be larger or smaller than my regular payment." (E) For contracts using the true daily earnings method, Texas Finance Code, (e): [Figure: 7 TAC (b)(7)(E)] (i) For use when the administrative fee is paid in cash or is not included in the cash advance on which interest is computed: Figure: 7 TAC (b)(7)(E)(i) (ii) For use when the administrative fee is financed: Figure: 7 TAC (b)(7)(E)(ii) (8) - (27) (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 October 20, TRD Leslie L. Pettijohn Commissioner Office of Consumer Credit Commissioner Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) TITLE 19. EDUCATION PART 7. STATE BOARD FOR EDUCATOR CERTIFICATION CHAPTER 235. CLASSROOM TEACHER CERTIFICATION STANDARDS The State Board for Educator Certification (SBEC) proposes new 235.1, , , , , , and , concerning classroom teacher certification standards. The proposed new sections would implement recent legislation from the 85th Texas Legislative Session, 2017, specify the pedagogy and professional responsibilities (PPR) educator standards required for classroom teacher certification, and clarify the implementation date for the new standards. The proposed new sections reflect feedback provided by the SBEC-appointed Classroom Teacher Standards Advisory Committee for the early childhood- Grade 3 (EC-3), Grades 4-8 (4-8), and Grades 7-12 (7-12) PPR standards. The SBEC is statutorily authorized to regulate and oversee all aspects of the certification of public school educators. SBEC is also statutorily authorized to ensure that all candidates for certification or renewal of certification demonstrate the knowledge and skills necessary to improve the performance of the diverse population of this state. At the March and June 2017 SBEC meetings, the Board and Texas Education Agency (TEA) staff discussed the desire to establish the educator standards for the classroom teacher into rule and to provide grade-band focused PPR educator standards that are aligned with 19 TAC Chapter 149, Commissioner's Rules Concerning Educator Standards, and the commissioner-recommended appraisal instrument to better prepare beginning teachers. At the June 9, 2017,SBEC meeting, the Board approved the Classroom Teacher Standards Advisory Committee to begin the work of recommending PPR standards for the grade bands: EC-3, 4-8, and The subcommittee for each grade band was convened to prioritize and provide feedback on the current teacher standards in 19 TAC Chapter 149. At the August 4, 2017,SBEC meeting, TEA staff updated the SBEC on the activities completed by the advisory committee and presented the Board with the PPR standards the committee was recommending and the next steps for adopting the standards in rule. The SBEC rules in proposed new 19 TAC Chapter 235, Classroom Teacher Certification Standards, Subchapter A, General Provisions, Subchapter B, Elementary School Certificate Standards, Subchapter C, Middle School Certificate Standards, and Subchapter D, Secondary School Certificate Standards, establish in rule the educator standards for the classroom teacher class of certificates. The educator standards are the basis for educator preparation program (EPP) design to effectively prepare beginning classroom teachers and the foundation for the certification examinations. The proposed standards provide for more rigorous, relevant, and reliable requirements for the preparation, certification, and testing of classroom teachers upon entry into the profession and retention of these qualified professionals. Following is a description of proposed new 19 TAC Chapter 235 that would implement recent legislation, reflect SBEC direction, and incorporate feedback from the SBEC-appointed advisory committee for the PPR educator standards for the classroom teacher by grade bands: EC-3, 4-8, and The numbering of the proposed new sections provides room for future adoption in rule of additional educator standards for the classroom teacher class. Subchapter A. General Provisions General Requirements Proposed new subsection (a) would clarify that the standards identified in this chapter must be used by EPPs in the development of curricula and coursework as well as serve as the basis for the classroom teacher certification examinations. Proposed new subsection (b) would clarify that the standards underlying the content certification examinations are aligned with the Texas Essential Knowledge and Skills curriculum adopted by the State Board of Education to demonstrate the connection between what students are expected to know and the knowledge and skill expectations of the teachers who are instructing the students. Proposed new subsection (c) would clarify that all candidates for standard certification must pass the appropriate examination(s) prior to issuance of a standard certificate. Subchapter B. Elementary School Certificate Standards Proposed new 19 TAC Chapter 235, Subchapter B, would incorporate all elementary school classroom teacher certificate standards under one subchapter. Division 1. Early Childhood-Grade 3 Proposed new 19 TAC Chapter 235, Subchapter B, Division 1, Early Childhood-Grade 3, would comply with TEC, , as added by SB 1839 and HB 2039, 85th Texas Legislature, Regular Session, The proposed new rule would specify the PPR educator standards required of candidates seeking the EC-3 classroom teacher certificate. 42 TexReg 6084 November 3, 2017 Texas Register

29 Pedagogy and Professional Responsibilities Standards, Early Childhood-Grade 3 Proposed new subsection (a) would clarify the PPR standards for EC-3 for classroom teachers of early learners and are aligned with classroom teaching expectations as outlined in 19 TAC Chapter 149, Commissioner's Rules Concerning Educator Standards. Proposed new subsection (b) would specify the standards needed in regards to a teacher's ability to plan and deliver instruction. Proposed new subsection (c) would specify the standards needed in regards to a teacher's ability to ensure high levels of learning, social-emotional development, and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Proposed new subsection (d) would specify the standards needed in regards to a teacher's content knowledge and expertise. Proposed new subsection (e) would specify the standards needed in regards to a teacher's ability to manage a safe and supportive learning environment. Proposed new subsection (f) would specify the standards needed in regards to a teacher's ability to apply data-driven practices. Proposed new subsection (g) would specify the standards needed in regards to a teacher's ability to abide by educator professional practices and responsibilities Implementation Date, Early Childhood-Grade 3 The proposed new section would clarify that the provisions of this subchapter apply to candidates admitted to an EPP on or after September 1, Subchapter C. Middle School Certificate Standards Proposed new 19 TAC Chapter 235, Subchapter C, would incorporate all middle school classroom teacher certificate standards under one subchapter Pedagogy and Professional Responsibilities Standards, Grades 4-8 Proposed new subsection (a) would clarify the PPR standards for classroom teachers of students in Grades 4-8 and are aligned with classroom teaching expectations as outlined in 19 TAC Chapter 149, Commissioner's Rules Concerning Educator Standards. Proposed new subsection (b) would specify the standards needed in regards to a teacher's ability to plan and deliver instruction. Proposed new subsection (c) would specify the standards needed in regards to a teacher's ability to ensure high levels of learning and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Proposed new subsection (d) would specify the standards needed in regards to a teacher's content knowledge and expertise. Proposed new subsection (e) would specify the standards needed in regards to a teacher's ability to manage a safe and supportive learning environment. Proposed new subsection (f) would specify the standards needed in regards to a teacher's ability to apply data-driven practices. Proposed new subsection (g) would specify the standards needed in regards to a teacher's ability to abide by educator professional practices and responsibilities Implementation Date, Grades 4-8 The proposed new section would clarify that the provisions of this subchapter apply to candidates admitted to an EPP on or after September 1, Subchapter D. Secondary School Certificate Standards Proposed new 19 TAC Chapter 235, Subchapter D, would incorporate all secondary school classroom teacher certificate standards under one subchapter Pedagogy and Professional Responsibilities Standards, Grades 7-12 Proposed new subsection (a) would clarify the PPR standards for classroom teachers of students in Grades 7-12 and are aligned with classroom teaching expectations as outlined in 19 TAC Chapter 149, Commissioner's Rules Concerning Educator Standards. Proposed new subsection (b) would specify the standards needed in regards to a teacher's ability to plan and deliver instruction. Proposed new subsection (c) would specify the standards needed in regards to a teacher's ability to ensure high levels of learning and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Proposed new subsection (d) would specify the standards needed in regards to a teacher's content knowledge and expertise. Proposed new subsection (e) would specify the standards needed in regards to a teacher's ability to manage a safe and supportive learning environment. Proposed new subsection (f) would specify the standards needed in regards to a teacher's ability to apply data-driven practices. Proposed new subsection (g) would specify the standards needed in regards to a teacher's ability to abide by educator professional practices and responsibilities Implementation Date, Grades 7-12 The proposed new section would clarify that the provisions of this subchapter apply to candidates admitted to an EPP on or after September 1, The proposed new sections would have no procedural and reporting implications. The proposed new sections would have no locally maintained paperwork requirements. FISCAL NOTE. Ryan Franklin, associate commissioner for educator leadership and quality, has determined that for the first five-year period the new sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the new sections. There is no effect on local economy for the first five years that the proposed new sections are in effect; therefore, no local employment impact statement is required under Texas Government Code, The proposed new sections do not impose a cost on regulated persons, another state agency, a special district, or local government and, therefore, are not subject to Texas Government Code, PUBLIC BENEFIT/COST NOTE. Mr. Franklin has determined that for each year of the first five years the new sections are in effect the public benefit anticipated as a result of enforcing the new sections would be more rigorous, relevant, and reliable requirements for the preparation, certification, and testing of classroom teachers upon entry into the profession and retention of these qualified professionals. There is no anticipated economic cost to persons who are required to comply with the proposed new sections. 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 anal- PROPOSED RULES November 3, TexReg 6085

30 ysis, specified in Texas Government Code, , is required. GOVERNMENT GROWTH IMPACT: The TEA staff has determined that the proposed new sections do not have a government growth impact pursuant to Texas Government Code, REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins November 3, 2017, and ends December 4, The SBEC will take registered oral and written comments on the proposed new sections at the December 8, 2017,meeting in accordance with the SBEC board operating policies and procedures. All requests for a public hearing on the proposed new sections submitted under the Administrative Procedure Act must be received by the Department of Educator Leadership and Quality, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, Attention: Mr. Ryan Franklin, associate commissioner for educator leadership and quality, not more than 14 calendar days after notice of the proposal has been published in the Texas Register on November 3, SUBCHAPTER A. GENERAL PROVISIONS 19 TAC STATUTORY AUTHORITY. The new section is proposed under the Texas Education Code (TEC), (a), which states that a person may not be employed as a teacher, teacher intern or teacher trainee, librarian, educational aide, administrator, educational diagnostician, or school counselor by a school district unless the person holds an appropriate certificate or permit issued as provided by the TEC, Chapter 21, Subchapter B; TEC, , which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators to ensure that all candidates for certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state; TEC, (a), which authorizes the SBEC to adopt rules as necessary to implement its procedures; TEC, (b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; TEC, (b)(2) and (4), which require the SBEC to propose rules that specify the classes of educator certificates to be issued, including emergency certificates, and the requirements for the issuance and renewal of an educator certificate; and TEC, , as added by SB 1839 and HB 2039, 85th Texas Legislature, Regular Session, 2017, which requires the SBEC to create a prekindergarten-grade 3 certificate. CROSS REFERENCE TO STATUTE. The new section implements the Texas Education Code (TEC), (a); ; and (a) and (b)(1), (2), and (4); and , as added by Senate Bill (SB) 1839 and House Bill (HB) 2039, 85th Texas Legislature, Regular Session, General Requirements. (a) The knowledge and skills identified in this section must be used by an educator preparation program in the development of the curricula and coursework as prescribed in of this title (relating to Educator Preparation Curriculum) and serve as the basis for developing the examinations as prescribed in of this title (relating to Development, Approval, Implementation, and Evaluation of Teacher Certification Standards). (b) Unless provided otherwise in this title, the content area and grade level of a certificate category as well as the standards underlying the certification examination for each category are aligned with the Texas Essential Knowledge and Skills curriculum adopted by the State Board of Education, as prescribed in 233.1(c) of this title (relating to General Authority). (c) A person must satisfy all applicable requirements and conditions under this title and other law to be issued a certificate in a category. A person seeking an initial standard certification must pass the appropriate examination(s) as prescribed in of this title (relating to Educator Assessment). 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER B. ELEMENTARY SCHOOL CERTIFICATE STANDARDS DIVISION 1. EARLY CHILDHOOD-GRADE 3 19 TAC , STATUTORY AUTHORITY. The new sections are proposed under the Texas Education Code (TEC), , which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators to ensure that all candidates for certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state; TEC, (4), which states that the SBEC shall, for each class of educator certificate, appoint an advisory committee composed of members of that class to recommend standards for that class to the board; TEC, (b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; and TEC, (b)(2) and (4), which require the SBEC to propose rules that specify the classes of educator certificates to be issued, including emergency certificates, and the requirements for the issuance and renewal of an educator certificate. CROSS REFERENCE TO STATUTE. The new sections implement the Texas Education Code (TEC), , (4), and (b)(1), (2), and (4) Pedagogy and Professional Responsibilities Standards, Early Childhood-Grade 3. (a) Early childhood-grade 3 pedagogy and professional responsibilities (PPR) standards. The PPR standards identified in this section are targeted for classroom teachers of early learners (birth through age eight). The standards address the discipline that deals with the theory and practice of teaching to inform skill-based training and development. The standards inform proper teaching techniques, 42 TexReg 6086 November 3, 2017 Texas Register

31 strategies, teacher actions, teacher judgements, and decisions by taking into consideration theories of learning, understandings of students and their needs, and the backgrounds and interests of individual students. The standards are also aligned with the Commissioner's Teacher Standards in 19 TAC Chapter 149 of this title (relating to Commissioner's Rules Concerning Educator Standards). (b) Instructional Planning and Delivery. Early childhood-grade 3 classroom teachers demonstrate understanding of instructional planning and delivery by providing standards-based, data-driven, differentiated instruction that engages students and makes learning relevant for today's learners. Early childhood-grade 3 classroom teachers must: (1) develop lessons that build coherently toward objectives based on course content, curriculum scope and sequence, and expected student outcomes; (2) effectively communicate goals, expectations, and objectives to help all students reach high levels of achievement; (3) connect students' prior understanding and real-world experiences to new content and contexts, maximizing learning opportunities; (4) plan instruction that is developmentally appropriate, is standards driven, and motivates students to learn; (5) differentiate instruction, aligning methods and techniques to diverse student needs, including acceleration, remediation, and implementation of individual education plans; (6) plan student groupings, including pairings and individualized and small-group instruction, to facilitate student learning; (7) integrate the use of oral, written, graphic, kinesthetic, and/or tactile methods to teach key concepts; (8) ensure that the learning environment features a high degree of student engagement by facilitating discussion and student-centered activities as well as leading direct instruction; (9) encourage all students to overcome obstacles and remain persistent in the face of challenges, providing them with support in achieving their goals; (10) set high expectations and create challenging learning experiences for students, encouraging them to apply disciplinary and cross-disciplinary knowledge to real-world problems; (11) provide opportunities for students to engage in individual and collaborative critical thinking and problem solving; (12) monitor and assess students' progress to ensure that their lessons meet students' needs; (13) provide immediate feedback to students in order to reinforce their learning and ensure that they understand key concepts; and (14) adjust content delivery in response to student progress through the use of developmentally appropriate strategies that maximize student engagement. (c) Knowledge of Student and Student Learning. Early childhood-grade 3 classroom teachers work to ensure high levels of learning, social-emotional development, and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Early childhood-grade 3 classroom teachers must: (1) create a community of learners in an inclusive environment that views differences in learning and background as educational assets; (2) connect learning, content, and expectations to students' prior knowledge, life experiences, and interests in meaningful contexts; (3) understand the unique qualities of students with exceptional needs, including disabilities and giftedness, and know how to effectively address these needs through instructional strategies and resources; (4) understand the role of language and culture in learning and know how to modify their practice to support language acquisition so that language is comprehensible and instruction is fully accessible; (5) understand how learning occurs and how learners develop, construct meaning, and acquire knowledge and skills; and (6) identify readiness for learning and understand how development in one area may affect students' performance in other areas. (d) Content Knowledge and Expertise. Early childhood-grade 3 classroom teachers exhibit an understanding of content, discipline, and related pedagogy as demonstrated through the quality of the design and execution of lessons and the ability to match objectives and activities to relevant state standards. Early childhood-grade 3 classroom teachers must: (1) have expertise in how their content vertically and horizontally aligns with the grade-level/subject area continuum, leading to an integrated curriculum across grade levels and content areas; (2) identify gaps in students' knowledge of subject matter and communicate with their leaders and colleagues to ensure that these gaps are adequately addressed across grade levels and subject areas; (3) keep current with developments, new content, new approaches, and changing methods of instructional delivery within their discipline; (4) organize curriculum to facilitate student understanding of the subject matter; (5) understand, actively anticipate, and adapt instruction to address common misunderstandings and preconceptions; (6) promote literacy and the academic language within the discipline and make discipline-specific language accessible to all learners; (7) teach both the key content knowledge and the key skills of the discipline; and (8) make appropriate and authentic connections across disciplines, subjects, and students' real world experiences. (e) Learning Environment. Early childhood-grade 3 classroom teachers interact with students in respectful ways at all times, maintaining a physically and emotionally safe, supportive learning environment that is characterized by efficient and effective routines, clear expectations for student behavior, and organization that maximizes student learning. Early childhood-grade 3 classroom teachers must: (1) embrace students' backgrounds and experiences as an asset in their learning; (2) maintain and facilitate respectful, supportive, positive, and productive interactions with and among students; (3) establish and sustain learning environments that are developmentally appropriate and respond to students' needs, strengths, and personal experiences; (4) create a physical classroom set-up that is flexible and accommodates the different learning needs of students; PROPOSED RULES November 3, TexReg 6087

32 (5) implement behavior management systems to maintain an environment where all students can learn effectively; (6) maintain a culture that is based on high expectations for student performance and encourages students to be self-motivated, taking responsibility for their own learning; (7) maximize instructional time, including managing transitions; (8) manage and facilitate groupings in order to maximize student collaboration, participation, and achievement; and (9) communicate regularly, clearly, and appropriately with parents and families about student progress, providing detailed and constructive feedback and partnering with families in furthering their students' achievement goals. (f) Data-Driven Practices. Early childhood-grade 3 classroom teachers use formal and informal methods to assess student growth aligned to instructional goals and course objectives and regularly review and analyze multiple sources of data to measure student progress and adjust instructional strategies and content delivery as needed. Early childhood-grade 3 classroom teachers must: (1) gauge student progress and ensure mastery of content knowledge and skills by providing assessments aligned to instructional objectives and outcomes that are accurate measures of student learning; (2) analyze and review data in a timely, thorough, accurate, and appropriate manner, both individually and with colleagues, to monitor student learning; and (3) design instruction, change strategies, and differentiate their teaching practices to improve student learning based on assessment outcomes. (g) Professional Practices and Responsibilities. Early childhood-grade 3 classroom teachers consistently hold themselves to a high standard for individual development, collaborate with other educational professionals, communicate regularly with stakeholders, maintain professional relationships, comply with all campus and school district policies, and conduct themselves ethically and with integrity. Early childhood-grade 3 classroom teachers must: (1) reflect on their own strengths and professional learning needs, using this information to develop action plans for improvement; (2) seek out feedback from supervisor, coaches, and peers and take advantage of opportunities for job-embedded professional development; (3) adhere to the educators' code of ethics in of this title (relating to Code of Ethics and Standard Practices for Texas Educators), including following policies and procedures at their specific school placement(s); (4) communicate consistently, clearly, and respectfully with all members of the campus community, administrators, and staff; and (5) serve as advocates for their students, focusing attention on students' needs and concerns and maintaining thorough and accurate student records Implementation Date, Early Childhood-Grade 3. The provisions of this subchapter apply to an applicant who is admitted to an educator preparation program for the Classroom Teacher Certificate on or after 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER C. MIDDLE SCHOOL CERTIFICATE STANDARDS 19 TAC , STATUTORY AUTHORITY. The new sections are proposed under the Texas Education Code (TEC), , which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators to ensure that all candidates for certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state; TEC, (4), which states that the SBEC shall, for each class of educator certificate, appoint an advisory committee composed of members of that class to recommend standards for that class to the board; TEC, (b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; and TEC, (b)(2) and (4), which require the SBEC to propose rules that specify the classes of educator certificates to be issued, including emergency certificates, and the requirements for the issuance and renewal of an educator certificate. CROSS REFERENCE TO STATUTE. The new sections implement the Texas Education Code (TEC), , (4), and (b)(1), (2), and (4) Pedagogy and Professional Responsibilities Standards, Grades 4-8. (a) Grades 4-8 pedagogy and professional responsibilities (PPR) standards. The PPR standards identified in this section are targeted for classroom teachers of students in Grades 4-8. The standards address the discipline that deals with the theory and practice of teaching to inform skill-based training and development. The standards inform proper teaching techniques, strategies, teacher actions, teacher judgements, and decisions by taking into consideration theories of learning, understandings of students and their needs, and the backgrounds and interests of individual students. The standards are also aligned with the Commissioner's Teacher Standards in 19 TAC Chapter 149 of this title (relating to Commissioner's Rules Concerning Educator Standards). (b) Instructional Planning and Delivery. Grades 4-8 classroom teachers demonstrate understanding of instructional planning and delivery by providing standards-based, data-driven, differentiated instruction that engages students and makes learning relevant for today's learners. Grades 4-8 classroom teachers must: 42 TexReg 6088 November 3, 2017 Texas Register

33 (1) develop lessons that build coherently toward objectives based on course content, curriculum scope and sequence, and expected student outcomes; (2) effectively communicate goals, expectations, and objectives to help all students reach high levels of achievement; (3) connect students' prior understanding and real-world experiences to new content and contexts, maximizing learning opportunities; (4) plan instruction that is developmentally appropriate, is standards driven, and motivates students to learn; (5) use a range of instructional strategies, appropriate to the content area, to make subject matter accessible to all students; (6) differentiate instruction, aligning methods and techniques to diverse student needs, including acceleration, remediation, and implementation of individual education plans; (7) ensure that the learning environment features a high degree of student engagement by facilitating discussion and student-centered activities as well as leading direct instruction; (8) set high expectations and create challenging learning experiences for students, encouraging them to apply disciplinary and cross-disciplinary knowledge to real-world problems; (9) provide opportunities for students to engage in individual and collaborative critical thinking and problem solving; (10) monitor and assess students' progress to ensure that their lessons meet students' needs; (11) provide immediate feedback to students in order to reinforce their learning and ensure that they understand key concepts; and (12) adjust content delivery in response to student progress through the use of developmentally appropriate strategies that maximize student engagement. (c) Knowledge of Student and Student Learning. Grades 4-8 classroom teachers work to ensure high levels of learning and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Grades 4-8 classroom teachers must: (1) create a community of learners in an inclusive environment that views differences in learning and background as educational assets; (2) connect learning, content, and expectations to students' prior knowledge, life experiences, and interests in meaningful contexts; (3) understand the unique qualities of students with exceptional needs, including disabilities and giftedness, and know how to effectively address these needs through instructional strategies and resources; (4) understand the role of language and culture in learning and know how to modify their practice to support language acquisition so that language is comprehensible and instruction is fully accessible; and (5) understand how learning occurs and how learners develop, construct meaning, and acquire knowledge and skills. (d) Content Knowledge and Expertise. Grades 4-8 classroom teachers exhibit an understanding of content and related pedagogy as demonstrated through the quality of the design and execution of lessons and the ability to match objectives and activities to relevant state standards. Grades 4-8 classroom teachers must: (1) keep current with developments, new content, new approaches, and changing methods of instructional delivery within their discipline; (2) organize curriculum to facilitate student understanding of the subject matter; (3) understand, actively anticipate, and adapt instruction to address common misunderstandings and preconceptions; (4) promote literacy and the academic language within the discipline and make discipline-specific language accessible to all learners; and (5) teach both the key content knowledge and the key skills of the discipline. (e) Learning Environment. Grades 4-8 classroom teachers interact with students in respectful ways at all times, maintaining a physically and emotionally safe, supportive learning environment that is characterized by efficient and effective routines, clear expectations for student behavior, and organization that maximizes student learning. Grades 4-8 classroom teachers must: (1) embrace students' backgrounds and experiences as an asset in their learning; (2) maintain and facilitate respectful, supportive, positive, and productive interactions with and among students; (3) implement behavior management systems to maintain an environment where all students can learn effectively; (4) maintain a culture that is based on high expectations for student performance and encourages students to be self-motivated, taking responsibility for their own learning; (5) maximize instructional time, including managing transitions; and (6) communicate regularly, clearly, and appropriately with parents and families about student progress, providing detailed and constructive feedback and partnering with families in furthering their students' achievement goals. (f) Data-Driven Practices. Grades 4-8 classroom teachers use formal and informal methods to assess student growth aligned to instructional goals and course objectives and regularly review and analyze multiple sources of data to measure student progress and adjust instructional strategies and content delivery as needed. Grades 4-8 classroom teachers must: (1) gauge student progress and ensure mastery of content knowledge and skills by providing assessments aligned to instructional objectives and outcomes that are accurate measures of student learning; (2) analyze and review data in a timely, thorough, accurate, and appropriate manner, both individually and with colleagues, to monitor student learning; and (3) design instruction, change strategies, and differentiate their teaching practices to improve student learning based on assessment outcomes. (g) Professional Practices and Responsibilities. Grades 4-8 classroom teachers consistently hold themselves to a high standard for individual development, collaborate with other educational professionals, communicate regularly with stakeholders, maintain professional relationships, comply with all campus and school district policies, and PROPOSED RULES November 3, TexReg 6089

34 conduct themselves ethically and with integrity. Grades 4-8 classroom teachers must: (1) reflect on their own strengths and professional learning needs, using this information to develop action plans for improvement; (2) seek out feedback from supervisor, coaches, and peers and take advantage of opportunities for job-embedded professional development; (3) adhere to the educators' code of ethics in of this title (relating to Code of Ethics and Standard Practices for Texas Educators), including following policies and procedures at their specific school placement(s); and (4) communicate consistently, clearly, and respectfully with all members of the campus community, administrators, and staff Implementation Date, Grades 4-8. The provisions of this subchapter apply to an applicant who is admitted to an educator preparation program for the Classroom Teacher Certificate on or after 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER D. SECONDARY SCHOOL CERTIFICATE STANDARDS 19 TAC , STATUTORY AUTHORITY. The new sections are proposed under the Texas Education Code (TEC), , which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators to ensure that all candidates for certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state; TEC, (4), which states that the SBEC shall, for each class of educator certificate, appoint an advisory committee composed of members of that class to recommend standards for that class to the board; TEC, (b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; and TEC, (b)(2) and (4), which require the SBEC to propose rules that specify the classes of educator certificates to be issued, including emergency certificates, and the requirements for the issuance and renewal of an educator certificate. CROSS REFERENCE TO STATUTE. The new sections implement the Texas Education Code (TEC), , (4), and (b)(1), (2), and (4) Pedagogy and Professional Responsibilities Standards, Grades (a) Grades 7-12 pedagogy and professional responsibilities (PPR) standards. The PPR standards identified in this section are targeted for classroom teachers of students in Grades The standards address the discipline that deals with the theory and practice of teaching to inform skill-based training and development. The standards inform proper teaching techniques, strategies, teacher actions, teacher judgements, and decisions by taking into consideration theories of learning, understandings of students and their needs, and the backgrounds and interests of individual students. The standards are also aligned with the Commissioner's Teacher Standards in 19 TAC Chapter 149 of this title (relating to Commissioner's Rules Concerning Educator Standards). (b) Instructional Planning and Delivery. Grades 7-12 classroom teachers demonstrate understanding of instructional planning and delivery by providing standards-based, data-driven, differentiated instruction that engages students and makes learning relevant for today's learners. Grades 7-12 classroom teachers must: (1) develop lessons that build coherently toward objectives based on course content, curriculum scope and sequence, and expected student outcomes; (2) effectively communicate goals, expectations, and objectives to help all students reach high levels of achievement; (3) connect students' prior understanding and real-world experiences to new content and contexts, maximizing learning opportunities; (4) plan instruction that is developmentally appropriate, is standards driven, and motivates students to learn; (5) use a range of instructional strategies, appropriate to the content area, to make subject matter accessible to all students; (6) differentiate instruction, aligning methods and techniques to diverse student needs, including acceleration, remediation, and implementation of individual education plans; (7) ensure that the learning environment features a high degree of student engagement by facilitating discussion and student-centered activities as well as leading direct instruction; (8) set high expectations and create challenging learning experiences for students, encouraging them to apply disciplinary and cross-disciplinary knowledge to real-world problems; (9) provide opportunities for students to engage in individual and collaborative critical thinking and problem solving; (10) monitor and assess students' progress to ensure that their lessons meet students' needs; (11) provide immediate feedback to students in order to reinforce their learning and ensure that they understand key concepts; and (12) adjust content delivery in response to student progress through the use of developmentally appropriate strategies that maximize student engagement. (c) Knowledge of Student and Student Learning. Grades 7-12 classroom teachers work to ensure high levels of learning and achievement outcomes for all students, taking into consideration each student's educational and developmental backgrounds and focusing on each student's needs. Grades 7-12 classroom teachers must: (1) create a community of learners in an inclusive environment that views differences in learning and background as educational assets; 42 TexReg 6090 November 3, 2017 Texas Register

35 (2) accept responsibility for the growth of all of their students, persisting in their efforts to ensure high levels of growth on the part of each learner; (3) connect learning, content, and expectations to students' prior knowledge, life experiences, and interests in meaningful contexts; (4) understand the unique qualities of students with exceptional needs, including disabilities and giftedness, and know how to effectively address these needs through instructional strategies and resources; (5) understand the role of language and culture in learning and know how to modify their practice to support language acquisition so that language is comprehensible and instruction is fully accessible; and (6) understand how learning occurs and how learners develop, construct meaning, and acquire knowledge and skills. (d) Content Knowledge and Expertise. Grades 7-12 classroom teachers exhibit an understanding of content and related pedagogy as demonstrated through the quality of the design and execution of lessons and the ability to match objectives and activities to relevant state standards. Grades 7-12 classroom teachers must: (1) keep current with developments, new content, new approaches, and changing methods of instructional delivery within their discipline; (2) organize curriculum to facilitate student understanding of the subject matter; (3) understand, actively anticipate, and adapt instruction to address common misunderstandings and preconceptions; (4) promote literacy and the academic language within the discipline and make discipline-specific language accessible to all learners; and (5) teach both the key content knowledge and the key skills of the discipline. (e) Learning Environment. Grades 7-12 classroom teachers interact with students in respectful ways at all times, maintaining a physically and emotionally safe, supportive learning environment that is characterized by efficient and effective routines, clear expectations for student behavior, and organization that maximizes student learning. Grades 7-12 classroom teachers must: (1) embrace students' backgrounds and experiences as an asset in their learning; (2) maintain and facilitate respectful, supportive, positive, and productive interactions with and among students; (3) implement behavior management systems to maintain an environment where all students can learn effectively; (4) maintain a culture that is based on high expectations for student performance and encourages students to be self-motivated, taking responsibility for their own learning; (5) maximize instructional time, including managing transitions; and (6) communicate regularly, clearly, and appropriately with parents and families about student progress, providing detailed and constructive feedback and partnering with families in furthering their students' achievement goals. (f) Data-Driven Practices. Grades 7-12 classroom teachers use formal and informal methods to assess student growth aligned to instructional goals and course objectives and regularly review and analyze multiple sources of data to measure student progress and adjust instructional strategies and content delivery as needed. Grades 7-12 classroom teachers must: (1) gauge student progress and ensure mastery of content knowledge and skills by providing assessments aligned to instructional objectives and outcomes that are accurate measures of student learning; (2) analyze and review data in a timely, thorough, accurate, and appropriate manner, both individually and with colleagues, to monitor student learning; and (3) design instruction, change strategies, and differentiate their teaching practices to improve student learning based on assessment outcomes. (g) Professional Practices and Responsibilities. Grades 7-12 classroom teachers consistently hold themselves to a high standard for individual development, collaborate with other educational professionals, communicate regularly with stakeholders, maintain professional relationships, comply with all campus and school district policies, and conduct themselves ethically and with integrity. Grades 7-12 classroom teachers must: (1) reflect on their own strengths and professional learning needs, using this information to develop action plans for improvement; (2) seek out feedback from supervisor, coaches, and peers and take advantage of opportunities for job-embedded professional development; (3) adhere to the educators' code of ethics in of this title (relating to Code of Ethics and Standard Practices for Texas Educators), including following policies and procedures at their specific school placement(s); (4) communicate consistently, clearly, and respectfully with all members of the campus community, administrators, and staff; and (5) serve as advocates for their students, focusing attention on students' needs and concerns and maintaining thorough and accurate student records Implementation Date, Grades The provisions of this subchapter apply to an applicant who is admitted to an educator preparation program for the Classroom Teacher Certificate on or after 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 245. CERTIFICATION OF EDUCATORS FROM OTHER COUNTRIES 19 TAC 245.1, 245.5, PROPOSED RULES November 3, TexReg 6091

36 The State Board for Educator Certification (SBEC) proposes amendments to 245.1, 245.5, and , concerning certification of educators from other countries. The proposed amendments would update the requirements for certification of educators from other countries following the four-year rule review required by Texas Government Code, The SBEC rules in 19 TAC Chapter 245, Certification of Educators from Other Countries, establish requirements for issuance of Texas certification to educators from other countries. Following is a description of the proposed amendments General Provisions The proposed amendment to subsection (a) would delete the word "appropriate" and add the word "acceptable" to align with wording used to describe the type of certificate that should be submitted to the Texas Education Agency (TEA) for review of credentials issued by the authorized licensing agency in another country. This proposed language matches that used in 19 TAC Chapter 230, Subchapter H, Texas Educator Certificates Based on Certification and College Credentials from Other States or Territories of the United States. Aligning the rule text provides further consistency to the credentials review process for Texas certification. The proposed amendment to subsection (b) would strike the words "at a minimum" and "baccalaureate" and add the phrases "at least a bachelor's," "or higher," and "accredited" to align with wording used to describe degree requirements for individuals issued certification by the authorized licensing agency in another country. This proposed language would match language used in 19 TAC Chapter 230, Subchapter B, General Certification Requirements. Aligning the rule text provides further consistency to the credentials review process for Texas certification. Also in subsection (b), the phrase "or by the U.S. Department of Education" would be added at the end of the last sentence. This proposed change would provide an additional way to verify degrees from other countries if not on the Texas Higher Education Coordinating Board list of recognized accreditors. The proposed amendment to subsection (e) would delete the phrases "and certification areas issued by" and "including all certification areas" and replace with language that aligns with 19 TAC Chapter 230, Subchapter H. Aligning the rule text provides further consistency to the credentials review process for Texas certification. New proposed subsection (f) would add text identical to that referenced in 19 TAC Chapter 230, Subchapter H, (f), General Requirements, to align with the process in place and established deadlines for educators certified in other states that are working to meet certification requirements Requirements for Issuance of a Texas Certificate Based on Certification from Another Country The proposed amendment to subsection (a) would replace the incorrect reference to Chapter 232, Subchapter A, with references to Chapter 230, Subchapter D, to accurately reflect the location of the rule text relevant to the types and classes of certificates issued. The proposed amendment would also add the phrase "an acceptable" to specify the type of certificate an applicant must hold to complete the out-of-country credentials review process and qualify for issuance of a Texas standard certificate. The proposed amendment to subsection (a)(1) would correct the outdated reference to with the correct reference to as it relates to required examinations for certification reflected in SBEC rule. The same amendment would be made to subsection (a)(2) to ensure that the citation is updated to point to the correct information in SBEC rule. Proposed new subsection (c) would add language to confirm an individual is eligible to apply for issuance of the standard certificate upon completion of all certification requirements, including examinations. The additional language would help avoid a delay in issuance of certificates, as it would clarify candidates are eligible to submit the online application and payment for the standard certificate when all required examinations are passed. Former subsection (c) would be relettered to subsection (d), and the incorrect reference to would be corrected to Chapter 230, Subchapter D. At the end of this subsection, the phrase "beyond the control of the educator" would be added to emphasize the types of extenuating circumstances to be considered, and the word "educator" would be changed to "district" to confirm that any requests to extend the one-year certificate must be initiated by the school district, not the individual. New proposed subsection (e) would confirm an individual is only required to pass examinations for those certificate area(s) in which he or she wishes to be issued a standard certificate. The new subsection would also clarify that a supplemental certificate (e.g., bilingual, English as a Second Language, special education, gifted and talented, or visually impaired) cannot be issued as a standard certificate without first establishing a classroom certificate in a content area. This additional clarification provides guidance to individuals on the correct order in which to complete requirements for issuance of a base classroom certificate in advance of being eligible for issuance of a supplemental certificate in one of the areas offered. Former subsection (d), relettered to subsection (f), would be amended to update a cross reference and correct a typographical error Application Procedures The proposed amendment to subsection (a)(4) would add the words "and/or degrees" to allow completion of degrees earned in the United States to also be submitted as acceptable documentation for the out-of-country credentials review process. Proposed new subsection (a)(5) would add copies of any standard certificates issued by another state department of education to the list of items that should be submitted to TEA when applying for a credentials review. This addition to the rules would ensure that individuals completing a credentials review process are reviewed for every eligible certificate area. In addition, adding the clarification to include copies of any standard certificates from other states would ensure the applicants get a complete review of credentials and a full accounting of all certificate areas that they are eligible to pursue in Texas. A standard certificate issued by another state department of education can also be used in lieu of the letter of professional standing referenced in subsection (a)(3). Adding this provision into rule would allow individuals from outside the U.S. to have an option to substitute a certificate issued by another state department of education in lieu of the professional standing letter if either cost-prohibitive or in some cases dangerous to return to the particular country of licensure. The proposed amendment to newly renumbered subsection (a)(6) and subsections (b)(2) and (c)(2) would replace the incorrect references to Chapter 230, Subchapter N, with the correct 42 TexReg 6092 November 3, 2017 Texas Register

37 references to Chapter 230, Subchapter G, as that is the location for all information related to fees for certification services. The proposed amendments would have no additional procedural and reporting implications. The proposed amendments would have no additional locally maintained paperwork requirements. FISCAL NOTE. Ryan Franklin, associate commissioner for educator leadership and quality, 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, another state agency, a special district, or local government and, therefore, are not subject to Texas Government Code, PUBLIC BENEFIT/COST NOTE. Mr. Franklin has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments would be clearly defined rules and requirements for individuals to obtain Texas certification based on already being licensed to teach in other countries. 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. GOVERNMENT GROWTH IMPACT: The TEA staff has determined that the proposed amendments do not have a government growth impact pursuant to Texas Government Code, REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins November 3, 2017, and ends December 4, The SBEC will take registered oral and written comments on the proposed amendments at the December 8, 2017, meeting in accordance with the SBEC board operating policies and procedures. All requests for a public hearing on the proposed amendments submitted under the Administrative Procedure Act must be received by the Department of Educator Leadership and Quality, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, Attention: Mr. Ryan Franklin, associate commissioner for educator leadership and quality, not more than 14 calendar days after notice of the proposal has been published in the Texas Register on November 3, STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), (b)(1), which states the State Board for Educator Certification (SBEC) must propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; TEC, (b)(4), which states the SBEC must propose rules that specify the requirements for the issuance and renewal of an educator certificate; TEC, (b)(5), which states the SBEC must propose rules that provide for the issuance of an educator certificate to a person who holds a similar certificate issued by another state or foreign country, subject to the TEC, ; TEC, (a), which states the SBEC must propose rules prescribing comprehensive examinations for each class of certificate issued by the SBEC; TEC, , which states that a person who applies for a teaching certificate for which SBEC rules require a bachelor's degree must possess a bachelor's degree received with an academic major or interdisciplinary academic major, including reading, other than education, that is related to the curriculum as prescribed under TEC, Chapter 28, Subchapter A; TEC, (a), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017, which states that the SBEC may issue a certificate to an educator who submits an application for certification and holds a degree issued by an institution accredited by a regional accrediting agency or group that is recognized by a nationally recognized accreditation board, or a degree issued by an institution located in a foreign country, if the degree is equivalent to a bachelor's degree issued in the United States, or holds an appropriate certificate issued in another state and has met all certification requirements for issuance of the credential; TEC, (b), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017, which states that for purposes of (a)(2), a person is considered to hold a certificate or other credential if the credential is not valid solely because it has expired; TEC, (c), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017, which states that the SBEC may issue a temporary certificate under this section to an educator who holds a degree required by (a)(1) and a certificate or other credential required by (a)(2) but who has not satisfied the requirements prescribed by (a)(3); TEC, (d), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017, which states that a temporary certificate issued under (c) to an educator employed by a school district that has constructed or expanded at least one instructional facility as a result of increased student enrollment due to actions taken under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687) may not expire before the first anniversary of the date on which the SBEC completes the review of the educator's credentials and informs the educator of the examination or examinations under the TEC, , on which the educator must perform successfully to receive a standard certificate; TEC, (e), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017, which states that an educator who has submitted all documents required by the board for certification and who receives a certificate as provided by subsection (a) must perform satisfactorily on the examination prescribed under Section not later than the first anniversary of the date the board completes the review of the educator's credentials and informs the educator of the examination or examinations under Section on which the educator must perform successfully to receive a standard certificate; and TEC, (f), which states the SBEC is authorized to propose rules to implement the national criminal history record information review of certified educators. CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, (b)(1), (4), and (5); (a); ; (a)-(e), as amended by Senate Bill (SB) 1839, 85th Texas Legislature, 2017; and (f) General Provisions. (a) A Texas educator certificate may be issued to an individual who holds a college degree and an acceptable [appropriate] certificate or other credential issued by the authorized licensing agency in another country and who meets appropriate requirements specified in PROPOSED RULES November 3, TexReg 6093

38 [ ] of this title (relating to General Requirements) and in this chapter. (b) The degree held by an applicant from another country must be[, at a minimum,] equivalent to at least a bachelor's [a baccalaureate] degree or higher issued by an accredited institution of higher education in the United States accredited or otherwise approved by an accrediting organization recognized by the Texas Higher Education Coordinating Board or by the U.S. Department of Education. (c) The certificate(s) or other credential(s) issued by the authorized licensing agency in another country may not be a temporary permit, a credential issued by a city or school district, or a certificate for which academic or other program deficiencies are indicated. Specific examination or renewal requirements shall not be considered academic or program deficiencies. (d) A statement, approval letter, or certification entitlement card issued by the authorized licensing agency in another country specifying eligibility for full certification upon employment or completion of specified examination requirements shall have the same standing as a certificate. (e) The certificate(s) or other credential(s) and areas of certification issued by the authorized licensing agency in another country must be equivalent to a certificate or grade level that is within the early childhood-grade 12 level and approved by [and certification areas issued by] the State Board for Educator Certification (SBEC). Based on the certificate(s) submitted with the application for review of credentials, the [The] Texas Education Agency (TEA) staff shall identify the certification areas for which the applicant qualifies in Texas. The certificate(s) [certificate, including all certification areas] for which the applicant qualifies[,] may be issued by the TEA staff under the authority of the SBEC. (f) If a Texas examination or certification is scheduled to be eliminated, an individual requesting certification and examination comparability must ensure that the application and all review documentation, including examination scores, are received by TEA staff 60 calendar days before the application submission deadline for the examination and/or certification sought Requirements for Issuance of a Texas Certificate Based on Certification from Another Country. (a) The appropriate standard certificate issued under Chapter 230 [232], Subchapter D [A], of this title (relating to Types and Classes of Certificates Issued), may be issued to an applicant holding an acceptable [a] certificate or other credential and college degree as specified in of this title (relating to General Provisions). The applicant must: (1) pass the appropriate examination(s) prescribed in the Texas Education Code (TEC), (a), and [ 230.5] of this title (relating to Educator Assessment); or (2) achieve an acceptable score on an examination(s) similar to and at least as rigorous as the requirements prescribed in the TEC, (a), and [ 230.5] of this title that was administered under the authority of another country. The applicant shall verify in a manner determined by the Texas Education Agency staff the level of performance on acceptable examinations administered under the authority of another country. (b) If all certification requirements are met, except successful completion of the appropriate certification examination(s), the applicant may request issuance of a one-year certificate in one or more of the certification areas authorized by the certificate(s) or other credential(s) from another country. An applicant who holds only a credential that is equivalent to a student services, principal, or superintendent certificate issued in accordance with Chapter 239 of this title (relating to Student Services Certificates), with the exception of Subchapter E (relating to Master Teacher Certificate); Chapter 241 of this title (relating to Principal Certificate); or Chapter 242 of this title (relating to Superintendent Certificate) may be issued the equivalent Texas certificate. The applicant must verify two creditable years of public or private school experience, as defined in Chapter 153, Subchapter CC, of this title (relating to Commissioner's Rules on Creditable Years of Service) and the TEC, 5.001(2), in the specific student services or administrative area sought. (c) After satisfying all certification requirements, including all appropriate examination requirements, the applicant is eligible to apply for issuance of the standard certificate issued under Chapter 230, Subchapter D, of this title (relating to Types and Classes of Certificates Issued). (d) [(c)] An applicant issued a one-year certificate under Chapter 230, Subchapter D, [ 232.1] of this title [(relating to Types of Certificates)] and this chapter who does not satisfy the appropriate examination requirements to establish eligibility for a standard certificate during the validity of the one-year certificate is not eligible for any type of certificate or permit authorizing employment for the same certification level or area until he or she has satisfied the examination requirements. If, due to extenuating circumstances beyond the control of the educator, examination requirements are not met during the validity period of the one-year certificate, the district [educator] may request an extension of the one-year certificate, not to exceed one calendar year in length. (e) An applicant shall not be required to complete the content specialization portion of the certification examination in a certification area for which he or she does not seek standard certification unless the examination is required to establish a base classroom teaching certificate. A supplemental certificate, as described in Chapter 233 of this title (relating to Categories of Classroom Teaching Certificates), may not be issued as a standard certificate unless the educator has established a classroom teaching certificate. (f) [(d)] An applicant issued a one-year certificate under subsection (d) [(c)] of this section who, during or subsequent to the validity of the one-year certificate, satisfies the appropriate examination requirements and establishes eligibility for a standard certificate may apply for: (1) a new one-year certificate in another certification area based on a certificate or other credential issued by [a] another country; or (2) a second one-year certificate in an area previously authorized on a one-year certificate, provided the applicant was not assigned to the area and has not attempted the appropriate examination requirements for that area Application Procedures. (a) An individual who has been issued an appropriate certificate or other credential by the authorized licensing agency in another country as specified in of this title (relating to General Provisions) may apply for a review of credentials by submitting the following items to the Texas Education Agency (TEA) staff: (1) a completed application; (2) the original detailed report or course-by-course evaluation for professional licensing of all college-level credits prepared by a foreign credential evaluation service recognized by the TEA staff. The evaluation must verify that the individual: 42 TexReg 6094 November 3, 2017 Texas Register

39 (A) holds, at a minimum, the equivalent of a baccalaureate degree issued by an accredited institution of higher education in the United States as specified in 245.1(b) of this title, including the date that the degree was conferred; and (B) has completed an educator preparation program, including a teaching practicum; (3) an original written statement, provided by the authorized licensing agency in the issuing country, that the educator certificate(s) or other credential(s) specified in of this title is currently in good standing and has not been revoked, suspended, or sanctioned for misconduct and is not pending disciplinary or adverse action. The statement must be written in the English language or must be accompanied by a translation in the English language from a foreign credential evaluation service recognized by the TEA staff or an accredited translation service; (4) official transcripts of any additional college credits and/or degrees earned in the United States; [and] (5) copies of any standard certificates issued by another state department of education; and (6) [(5)] a nonrefundable review fee as specified in Chapter 230, Subchapter G [N], of this title (relating to Certificate Issuance Procedures). (b) Pursuant to 245.5(b) of this title (relating to Requirements for Issuance of a Texas Certificate Based on Certification from Another Country) an applicant may apply for a one-year certificate by submitting the following items to the TEA staff: (1) a completed application; and (2) the appropriate fee as specified in Chapter 230, Subchapter G [N], of this title. (c) Pursuant to 245.5(a) of this [the] title, an applicant may apply for a standard certificate by submitting the following items to the TEA staff: (1) a completed application; and (2) the appropriate fee as specified in Chapter 230, Subchapter G [N], of this title. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 249. DISCIPLINARY PROCEEDINGS, SANCTIONS, AND CONTESTED CASES The State Board for Educator Certification (SBEC) proposes amendments to 249.3, , , , , and , concerning disciplinary proceedings, sanctions, and contested cases. The proposed amendments would implement the statutory requirements of Senate Bill (SB) 7, 85th Texas Legislature, Regular Session, 2017; set minimum sanctions for administrators who fail to report educator misconduct; clarify the reasons for which the SBEC can deny a certificate to an applicant; require reporting administrators to provide additional factual details in educator misconduct reports; and clarify the law that applies when educators default after failing to answer a petition. SB 7, 85th Texas Legislature, Regular Session, 2017, effective September 1, 2017, makes significant changes to administrator reporting requirements and reporting enforcement regarding educator misconduct, requiring amendments to 19 TAC 249.3, , , , and SB 7 creates a new requirement that principals report to their superintendents or directors within seven business days of an educator's resignation following an incident of certain misconduct or of when the principal knew of the educator's criminal record. SB 7 clarifies that superintendents must report to the SBEC within seven business days after receiving a report from a principal or within seven business days of when the superintendent or director knew about an educator's criminal record or resignation or termination following an alleged incident of misconduct. SB 7 creates new authority for the SBEC to issue administrative penalties between $500-$10,000 for superintendents, directors, and principals that fail to report educator misconduct. The proposed amendments to (d)-(f), (a)(6), and (j) would implement these legislative requirements. As part of implementing SB 7, the proposed amendments include minimum penalties for administrators who fail to report educator misconduct but sign agreed orders without proceeding to a contested case hearing. The proposed amendments create lower minimum penalties for principals who fail to report to superintendents than for superintendents who fail to report to the SBEC. The variation in penalties reflects the difference in reporting obligations under TEC, , as amended by SB 7, which requires superintendents to report only when they know of misconduct but requires principals to report within seven business days regardless of when they discover the misconduct. It also reflects the greater responsibility superintendents have, as a result of their positions of authority over principals and teachers, to ensure a safe educational environment for students where there is no tolerance for educator misconduct. SB 7 also gives the SBEC explicit authority to suspend, revoke, or refuse to issue a certificate of a person who has assisted another person in obtaining employment at a school when the person knew that the other person had previously engaged in sexual misconduct with a minor or student in violation of the law and to revoke the certificate of an administrator who employed an applicant when the administrator knew that the applicant had been adjudicated for or convicted of having an inappropriate relationship with a minor. The proposed amendments to and (b) would implement these legislative requirements. Additionally, the proposed amendment to 19 TAC (b) is necessary to clarify the reasons for which the SBEC can deny certification to an applicant, including when the applicant has committed an act that would make them subject to required revocation under TEC, , and when the applicant has committed an act that would make them subject to mandatory permanent revocation or denial under 19 TAC (i). PROPOSED RULES November 3, TexReg 6095

40 The proposed amendment to 19 TAC (f) would increase the factual details that administrators are required to provide when reporting educators to the SBEC for misconduct to include the current employment status of the subject and any involvement by a law enforcement or other agency. This information would give the Educator Investigations Division at the Texas Education Agency additional information to allow for more efficient investigations. The proposed amendment to 19 TAC (f) would clarify that the SBEC will enter final orders on defaults that occur either under Texas Government Code, , or 1 TAC, Part 7, The use of "and" had led to confusion regarding which code provisions applied to defaults that resulted from an educator failing to answer a petition prior to the contested case being set for hearing before the State Office of Administrative Hearings. The proposed amendments would also remove redundancies and include technical edits to conform with Texas Register style and formatting requirements. The proposed amendments would have procedural and reporting implications. SB 7 creates additional reporting responsibilities for principals, who must report educator misconduct to superintendents. SB 7 does not change the requirements with respect to who reports to the SBEC or when reporting to the SBEC is required. The proposed amendments change the information that a superintendent is required to report to the SBEC when making a report, but this change should not impose a significant additional burden on reporting superintendents. The proposed amendment to 19 TAC would add the following two new categories of information to provide: current employment status and involvement by law enforcement. The proposed amendments would have no additional locally maintained paperwork requirements. FISCAL NOTE. Ryan Franklin, associate commissioner for educator leadership and quality, has determined that for the first five-year period the amendments are in effect, there will be no foreseeable additional cost to state or local government or a foreseeable reduction in cost to local government, but may create a slight reduction in costs to state government from efficiencies that could come as a result of the clearer and more enforceable rules. There will be an extremely small increase in revenue to the state estimated at $7,000 each year for Fiscal Year (FY) 2018 through FY 2022 as a result of implementing the administrative penalties as sanctions on principals and superintendents who fail to report educator misconduct. This estimate is based on the small number of superintendents whom the SBEC currently sanctions for failure to report, which averages to one per year. There will be no increase in revenue to local government. There is no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, TEA staff has determined that the proposed amendments could impose an indirect cost on regulated persons, if a person subject to the law fails to comply. However, the proposed amendments are exempt from Texas Government Code, , as provided under this statute, because the amendments are necessary to implement SB 7, 85th Texas Legislature, Regular Session, PUBLIC BENEFIT/COST NOTE. Mr. Franklin has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments would be fewer educators who go from one school district to another without being reported for having inappropriate relationships with students or minors. An additional benefit is that there are fewer opportunities for individuals to become certified educators if they have been required to register as sex offenders or have committed misconduct that would result in permanent revocation if they were certified educators. There is an anticipated economic cost to persons who are required to comply with the proposed amendments. There will be a cost of $500-$10,000 each to principals, superintendents, and directors who fail to report educator misconduct timely and become subject to administrative penalties under the proposed amendments to 19 TAC (a)(6) and (j). The costs to persons required to comply with the proposed amendments is estimated at $7,000 each year for FY 2018 through FY This estimate is based on the small number of superintendents whom the SBEC currently sanctions for failure to report, which averages to one per year. 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. GOVERNMENT GROWTH IMPACT: In accordance with Texas Government Code, , TEA staff has determined that the proposed amendments do not result in an increase in fees paid to the agency. The proposal would allow the SBEC to levy administrative fines of $500-$10,000 against a certified principal, superintendent, or director who fails to report educator misconduct, in accordance with SB 7. An administrative penalty is not a fee; it is a penalty for failure to comply with the applicable law. The SBEC currently sanctions fewer than 10 administrators per year for failing to report educator misconduct, so only very few individuals would be impacted by this increase. REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins November 3, 2017, and ends December 4, The SBEC will take registered oral and written comments on the proposed amendments at the December 8, 2017,meeting in accordance with the SBEC board operating policies and procedures. All requests for a public hearing on the proposed amendments submitted under the Administrative Procedure Act must be received by the Department of Educator Leadership and Quality, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, Attention: Mr. Ryan Franklin, associate commissioner for educator leadership and quality, not more than 14 calendar days after notice of the proposal has been published in the Texas Register on November 3, SUBCHAPTER A. GENERAL PROVISIONS 19 TAC STATUTORY AUTHORITY. The amendment is proposed under the Texas Education Code (TEC), , as amended by SB 7, 85th Texas Legislature, Regular Session, 2017, which requires superintendents or directors of school districts, districts of innovation, open-enrollment charter schools, regional education service centers, or shared services arrangements to report to the SBEC within seven business days of when the superintendent or director knows that an educator has a criminal record or has been terminated or resigned when there is evidence that the educator has committed certain misconduct; which requires princi- 42 TexReg 6096 November 3, 2017 Texas Register

41 pals to report to superintendents or directors within seven business days of an educator's termination or resignation when there is evidence that the educator has committed certain misconduct or knew about an educator's criminal record; which gives the SBEC authority to sanction certified educators who fail to fulfill the reporting requirements timely, including administrative penalties of $500-$10,000; which gives the SBEC authority to revoke the certificate of an administrator who employs an applicant in a certified position at a school despite knowing the educator has been adjudicated for or convicted of having an inappropriate relationship with a minor; and which requires the SBEC to adopt rules to require the reporting of educator misconduct and to sanction educators who fail to report; TEC, , which requires the SBEC to propose rules that provide for a procedure for placing a public notice of alleged misconduct on an educator's certificate immediately when the educator is alleged to have committed misconduct that presents a risk to the health, safety, or welfare of a student or minor, and allows the SBEC to determine what types of misconduct would present such a risk; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which states that the SBEC may revoke the certificate of an administrator if the board determines it is reasonable to believe that the administrator employed an applicant despite being aware that the applicant had been adjudicated for or convicted of having an inappropriate relationship with a student or minor; TEC, (a), which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators; TEC, , which states that Texas Education Agency (TEA) staff provides administrative functions and services for SBEC and gives SBEC the authority to delegate to either the commissioner of education or to TEA staff the authority to settle or otherwise informally dispose of contested cases involving educator certification; TEC, , which authorizes the SBEC to adopt rules as necessary to regulate educators, administer statutory requirements, and provide for educator disciplinary proceedings; TEC, , which requires the SBEC to propose rules establishing training requirements a person must accomplish to obtain a certificate; TEC, , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which requires SBEC to revoke an educator's certificate if the educator is required to register as a sex offender or is convicted of certain felony offenses and the victim of the offense was under 18 years old; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which allows the SBEC to suspend, revoke, or refuse to issue an educator's certificate if the person has assisted another person in obtaining employment at a school district or charter school when the person knew that the other person had previously engaged in sexual misconduct with a minor or student in violation of the law; TEC, , which sets out crimes that relate to the education profession and authorizes the SBEC to sanction or refuse to issue a certificate to any person who has been convicted of one of these offenses; TEC, (c), (c), and (c), which give SBEC authority to sanction an educator who has a continuing, term, or probationary contract and who resigns without good cause; TEC, , which allows the SBEC to sanction educators who fail to fire or to refuse to hire an applicant when the educator knew or should have known from the background check that the employee had a criminal record reflecting certain offenses and requires a superintendent to certify to the commissioner of education that the school district is in compliance with this section; TEC, , which requires a superintendent to report to SBEC if the superintendent knows of information showing that an educator or an applicant for an educator certificate has criminal history that is not reflected in the criminal history information provided by the Texas Department of Public Safety in response to a background check; TEC, (g), which requires the SBEC to refuse to renew the certificate of any educator who is in default on student loan payments; Texas Government Code, , which sets out the powers and duties of the State Office of Administrative Hearings and other state agencies with regard to contested case proceedings; and Texas Occupations Code, (a), , , and , which give the SBEC the authority to automatically suspend, revoke, or disqualify a person from receiving an educator certificate if the person has been convicted of certain offenses. CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code (TEC), , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017; ; , as added by SB 7; (a); ; ; ; , as amended by SB 7; , as added by SB 7; ; (c); (c); (c); ; ; and (g); Texas Government Code, ; Texas Occupations Code, (a), , , and ; and Texas Penal Code, 21.12(a), as amended by SB Definitions. The following words, terms, and phrases, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Abuse--Includes the following acts or omissions: (A) mental or emotional injury to a student or minor that results in an observable and material impairment in the student's or minor's development, learning, or psychological functioning; (B) causing or permitting a student or minor to be in a situation in which the student or minor sustains a mental or emotional injury that results in an observable and material impairment in the student's or minor's development, learning, or psychological functioning; (C) physical injury that results in substantial harm to a student or minor, or the genuine threat of substantial harm from physical injury to the student or minor, including an injury that is at variance with the history or explanation given and excluding an accident or reasonable discipline; or (D) sexual conduct harmful to a student's or minor's mental, emotional, or physical welfare. (2) Administrative denial--a decision or action by the Texas Education Agency staff, acting on behalf of the State Board for Educator Certification, to deny certification (including certification following revocation, cancellation, or surrender of a previously issued certificate), renewal of certification, or reinstatement of a previously suspended certificate based on the withholding or voiding of certification test scores; the invalidation of a certification test registration; evidence of a lack of good moral character; or evidence of improper conduct. (3) Administrative law judge--a person appointed by the chief judge of the State Office of Administrative Hearings under the Texas Government Code, Chapter (4) Answer--The responsive pleading filed in reply to factual and legal issues raised in a petition. (5) Applicant--A party seeking issuance, renewal, or reinstatement of a certificate from the Texas Education Agency staff or the State Board for Educator Certification. PROPOSED RULES November 3, TexReg 6097

42 (6) Cancellation--The invalidation of an erroneously issued certificate. (7) Certificate--The whole or part of any educator credential, license, or permit issued under the Texas Education Code, Chapter 21, Subchapter B. The official certificate is the record of the certificate as maintained on the Texas Education Agency's website. (8) Certificate holder--a person who holds an educator certificate issued under the Texas Education Code, Chapter 21, Subchapter B. (9) Chair--The presiding officer of the State Board for Educator Certification, elected pursuant to the Texas Education Code, , or other person designated by the chair to act in his or her absence or inability to serve. (10) Chief judge--the chief administrative law judge of the State Office of Administrative Hearings. (11) Code of Ethics--The Educators' Code of Ethics codified in Chapter 247 of this title (relating to the Educators' Code of Ethics). (12) Complaint--A written statement submitted to the Texas Education Agency staff that contains essential facts alleging improper conduct by an educator, applicant, or examinee, the complainant's verifiable contact information, including full name, complete address, and phone number, which provides grounds for sanctions. (13) Contested case--a proceeding under this chapter in which the legal rights, duties, and privileges related to a party's educator certificate are to be determined by the State Board for Educator Certification and/or the State Office of Administrative Hearings commencing when a petition is properly served under this chapter. (14) Conviction--An adjudication of guilt for a criminal offense. The term does not include the imposition of deferred adjudication for which the judge has not proceeded to an adjudication of guilt. (15) Deferred adjudication--the resolution of a criminal charge, based on a defendant's plea to the offense of guilty or nolo contendere, which results in the suspension of adjudication of the defendant's guilt and the imposition of conditions such as community supervision or restitution, and, upon successful completion of those conditions, the dismissal of the criminal case. In a contested case under this chapter, the defendant's acceptance of deferred adjudication in a criminal case may be considered as provided by the Texas Occupations Code, (16) Disciplinary proceedings--any matter arising under this chapter or Chapter 247 of this title (relating to the Educators' Code of Ethics) that results in a final order or finding issued by the Texas Education Agency staff, the State Office of Administrative Hearings, or the State Board for Educator Certification relating to the legal rights, duties, privileges, and status of a party's educator certificate. (17) Educator--A person who is required to hold a certificate issued under the Texas Education Code, Chapter 21, Subchapter B. (18) Effective date--the date the decision or action taken by the State Board for Educator Certification or the Texas Education Agency staff becomes final under the appropriate legal authority. (19) Endanger--Exposure of a student or minor to unjustified risk of injury or to injury that jeopardizes the physical health or safety of the student or minor without regard to whether there has been an actual injury to the student or minor. (20) Examinee--A person who registers to take or who takes any examination required by the State Board for Educator Certification for admission to an educator preparation program or to obtain an educator certificate. (21) Expired--No longer valid because a specific period or term of validity of a certificate has ended; an expired certificate is not subject to renewal or revalidation and a new certificate must be issued. (22) Filing--Any written petition, answer, motion, response, other written instrument, or item appropriately filed under this chapter with the Texas Education Agency staff, the State Board for Educator Certification, or the State Office of Administrative Hearings. (23) Good moral character--the virtues of a person as evidenced by patterns of personal, academic, and occupational behaviors that, in the judgment of the State Board for Educator Certification, indicate honesty, accountability, trustworthiness, reliability, and integrity. Lack of good moral character may be evidenced by the commission of crimes relating directly to the duties and responsibilities of the education profession as described in (b) of this title (relating to Eligibility of Persons with Criminal History [Convictions] for a Certificate under Texas Occupations Code, Chapter 53, and Texas Education Code, Chapter 21), or by the commission of acts involving moral turpitude, but conduct that evidences a lack of good moral character is not necessarily limited to such crimes or acts. (24) Inactive--Lacking current effectiveness. An inactive certificate does not currently entitle the certificate holder to work as a professional educator in Texas public schools. An inactive certificate is distinguished from a certificate that is void or expired by the fact that it can be reactivated by satisfying the condition or conditions that caused it to be placed in inactive status (failure to renew, failure to submit fingerprint information, or payment of fees), subject to any other certification requirements applicable to active certificates. (25) Inappropriate relationship--a violation of Texas Penal Code, 21.12(a); a sexual or romantic relationship with a student or minor; or solicitation of a sexual or romantic relationship with a student or minor. (26) [(25)] Informal conference--an informal meeting between the Texas Education Agency staff and an educator, applicant, or examinee; such a meeting may be used to give the person an opportunity to show compliance with all requirements of law for the granting or retention of a certificate or test score pursuant to Texas Government Code, (c). (27) [(26)] Invalid--Rendered void; lacking legal or administrative efficacy. (28) [(27)] Law--The United States and Texas Constitutions, state and federal statutes, regulations, rules, relevant case law, and decisions and orders of the State Board for Educator Certification and the commissioner of education. (29) [(28)] Mail--Certified United States mail, return receipt requested, unless otherwise provided by this chapter. (30) [(29)] Majority--A majority of the voting members of the State Board for Educator Certification who are present and voting on the issue at the time the vote is recorded. (31) [(30)] Moral turpitude--improper conduct, including, but not limited to, the following: dishonesty; fraud; deceit; theft; misrepresentation; deliberate violence; base, vile, or depraved acts that are intended to arouse or to gratify the sexual desire of the actor; drug or alcohol related offenses as described in (b) of this title (relating to Eligibility of Persons with Criminal History [Convictions] for a Certificate under Texas Occupations Code, Chapter 53, and Texas Ed- 42 TexReg 6098 November 3, 2017 Texas Register

43 ucation Code, Chapter 21); or acts constituting abuse or neglect under the Texas Family Code, (32) [(31)] Neglect--The placing or leaving of a student or minor in a situation where the student or minor would be exposed to a substantial risk of physical or mental harm. (33) [(32)] Party--Each person named or admitted to participate in a contested case under this chapter. (34) [(33)] Permanent revocation--revocation without the opportunity to reapply for a new certificate. (35) [(34)] Person--Any individual, representative, corporation, or other entity, including the following: an educator, applicant, or examinee; the Texas Education Agency staff; or the State Board for Educator Certification, the State Office of Administrative Hearings, or any other agency or instrumentality of federal, state, or local government. (36) [(35)] Petition--The written pleading served by the petitioner in a contested case under this chapter. (37) [(36)] Petitioner--The party seeking relief, requesting a contested case hearing under this chapter, and having the burden of proof by a preponderance of the evidence in any contested case hearing or proceeding under this chapter. (38) [(37)] Physical mistreatment--any act of unreasonable or offensive touching that would be offensive to a reasonable person in a similar circumstance. It is an affirmative defense that any unreasonable or offensive touching was justified under the circumstances, using a reasonable person standard. (39) [(38)] Presiding officer--the chair or acting chair of the State Board for Educator Certification. (40) [(39)] Proposal for decision--a recommended decision issued by an administrative law judge in accordance with the Texas Government Code, (41) [(40)] Quorum--A majority of the 14 members appointed to and serving on the State Board for Educator Certification (SBEC) pursuant to the Texas Education Code, ; eight SBEC members, including both voting and non-voting members, as specified in the SBEC Operating Policies and Procedures. (42) [(41)] Recklessly--An educator acts recklessly, or is reckless, with respect to circumstances surrounding his or her conduct or the results of his or her conduct when he or she is aware of but consciously disregards a substantial and unjustifiable risk that the circumstances exist or the result will occur. (43) [(42)] Reinstatement--The restoration of a suspended certificate to valid status by the State Board for Educator Certification. (44) [(43)] Reported criminal history--information concerning any formal criminal justice system charges and dispositions. The term includes, without limitation, arrests, detentions, indictments, criminal informations, convictions, deferred adjudications, and probations in any state or federal jurisdiction. (45) [(44)] Representative--A person representing an educator, applicant, or examinee in matters arising under this chapter; in a contested case proceeding before the State Office of Administrative Hearings (SOAH), an attorney licensed to practice law in the State of Texas or other person authorized as a party representative under SOAH rules. (46) [(45)] Reprimand--The State Board for Educator Certification's formal censuring of a certificate holder. (A) An "inscribed reprimand" is a formal, published censure appearing on the face of the educator's virtual certificate. (B) A "non-inscribed reprimand" is a formal, unpublished censure that does not appear on the face of the educator's virtual certificate. (47) [(46)] Respondent--The party who contests factual or legal issues or both raised in a petition; the party filing an answer in response to a petition. (48) [(47)] Restricted--The condition of an educator certificate that has had limitations or conditions on its use imposed by State Board for Educator Certification order. (49) [(48)] Revocation--A sanction imposed by the State Board for Educator Certification invalidating an educator's certificate. (50) [(49)] Sanction--A disciplinary action by the State Board for Educator Certification, including a restriction, reprimand, suspension, revocation of a certificate, or a surrender in lieu of disciplinary action. (51) [(50)] Solicitation of a romantic relationship--deliberate or repeated acts that can be reasonably interpreted as the solicitation by an educator of a relationship with a student that is romantic in nature. A romantic relationship is often characterized by a strong emotional or sexual attachment and/or by patterns of exclusivity, but does not include appropriate educator-student relationships that arise out of legitimate contexts such as familial connections or longtime acquaintance. The following acts, considered in context, may constitute prima facie evidence of the solicitation by an educator of a romantic relationship with a student: (A) behavior, gestures, expressions, or communications with a student that are unrelated to the educator's job duties and evidence a romantic intent or interest in the student, including statements of love, affection, or attraction. Factors that may be considered in determining the romantic intent of such communications or behavior, include, without limitation: (i) the nature of the communications; (ii) the timing of the communications; (iii) the extent of the communications; (iv) whether the communications were made openly or secretly; (v) the extent that the educator attempts to conceal the communications; (vi) if the educator claims to be counseling a student, the State Board for Educator Certification may consider whether the educator's job duties included counseling, whether the educator reported the subject of the counseling to the student's guardians or to the appropriate school personnel, or, in the case of alleged abuse or neglect, whether the educator reported the abuse or neglect to the appropriate authorities; and (vii) any other evidence tending to show the context of the communications between educator and student; (B) making inappropriate comments about a student's body, creating or transmitting sexually suggestive photographs or images, or encouraging the student to transmit sexually suggestive photographs or images; (C) making sexually demeaning comments to a student; (D) making comments about a student's potential sexual performance; PROPOSED RULES November 3, TexReg 6099

44 (E) requesting details of a student's sexual history; (F) requesting a date, sexual contact, or any activity intended for the sexual gratification of the educator; (G) engaging in conversations regarding the sexual problems, preferences, or fantasies of either party; (H) inappropriate hugging, kissing, or excessive touching; (I) providing the student with drugs or alcohol; (J) suggestions that a romantic relationship is desired after the student graduates, including post-graduation plans for dating or marriage; and (K) any other acts tending to show that the educator solicited a romantic relationship with a student. (52) [(51)] State assessment testing violation--conduct that violates the security or confidential integrity of any test or assessment required by the Texas Education Code, Chapter 39, Subchapter B, or conduct that is a departure from the test administration procedures established by the commissioner of education in Chapter 101 of this title (relating to Assessment). The term does not include benchmark tests or other locally required assessments. (53) [(52)] State Board for Educator Certification--The State Board for Educator Certification acting through its voting members in a decision-making capacity. (54) [(53)] State Board for Educator Certification member(s)--one or more of the members of the State Board for Educator Certification, appointed and qualified under the Texas Education Code, (55) [(54)] Student--A person enrolled in a primary or secondary school, whether public, private, or charter, regardless of the person's age, or a person 18 years of age or younger who is eligible to be enrolled in a primary or secondary school, whether public, private, or charter. (56) [(55)] Surrender--An educator's voluntary relinquishment of a particular certificate in lieu of disciplinary proceedings under this chapter resulting in an order of revocation of the certificate. (57) [(56)] Suspension--A sanction imposed by the State Board for Educator Certification (SBEC) temporarily invalidating a particular certificate until reinstated by the SBEC. (58) [(57)] Test administration rules or procedures--rules and procedures governing professional examinations administered by the State Board for Educator Certification through the Texas Education Agency staff and a test contractor, including policies, regulations, and procedures set out in a test registration bulletin. (59) [(58)] Texas Education Agency staff--staff of the Texas Education Agency assigned by the commissioner of education to perform the State Board for Educator Certification's administrative functions and services. (60) [(59)] Unworthy to instruct or to supervise the youth of this state--absence of those moral, mental, and psychological qualities that are required to enable an educator to render the service essential to the accomplishment of the goals and mission of the State Board for Educator Certification policy and Chapter 247 of this title (relating to Educators' Code of Ethics). Unworthy to instruct serves as a basis for sanctions under (b)(2) of this title (relating to Disciplinary Action by State Board for Educator Certification) and for administrative denial under (b) of this title (relating to Administrative Denial; Appeal). A determination that a person is unworthy to instruct does not require a criminal conviction. (61) [(60)] Virtual certificate--the official record of a person's certificate status as maintained on the Texas Education Agency's website. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER B. ENFORCEMENT ACTIONS AND GUIDELINES 19 TAC , , , STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), , as amended by SB 7, 85th Texas Legislature, Regular Session, 2017, which requires superintendents or directors of school districts, districts of innovation, open-enrollment charter schools, regional education service centers, or shared services arrangements to report to the SBEC within seven business days of when the superintendent or director knows that an educator has a criminal record or has been terminated or resigned when there is evidence that the educator has committed certain misconduct; which requires principals to report to superintendents or directors within seven business days of an educator's termination or resignation when there is evidence that the educator has committed certain misconduct or knew about an educator's criminal record; which gives the SBEC authority to sanction certified educators who fail to fulfill the reporting requirements timely, including administrative penalties of $500-$10,000; which gives the SBEC authority to revoke the certificate of an administrator who employs an applicant in a certified position at a school despite knowing the educator has been adjudicated for or convicted of having an inappropriate relationship with a minor; and which requires the SBEC to adopt rules to require the reporting of educator misconduct and to sanction educators who fail to report; TEC, , which requires the SBEC to propose rules that provide for a procedure for placing a public notice of alleged misconduct on an educator's certificate immediately when the educator is alleged to have committed misconduct that presents a risk to the health, safety, or welfare of a student or minor, and allows the SBEC to determine what types of misconduct would present such a risk; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which states that the SBEC may revoke the certificate of an administrator if the board determines it is reasonable to believe that the administrator employed an applicant despite being aware that the applicant had been adjudicated for or convicted of having an inappropriate relationship with a student or minor; TEC, (a), which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public 42 TexReg 6100 November 3, 2017 Texas Register

45 school educators; TEC, , which states that Texas Education Agency (TEA) staff provides administrative functions and services for SBEC and gives SBEC the authority to delegate to either the commissioner of education or to TEA staff the authority to settle or otherwise informally dispose of contested cases involving educator certification; TEC, , which authorizes the SBEC to adopt rules as necessary to regulate educators, administer statutory requirements, and provide for educator disciplinary proceedings; TEC, , which requires the SBEC to propose rules establishing training requirements a person must accomplish to obtain a certificate; TEC, , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which requires SBEC to revoke an educator's certificate if the educator is required to register as a sex offender or is convicted of certain felony offenses and the victim of the offense was under 18 years old; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which allows the SBEC to suspend, revoke, or refuse to issue an educator's certificate if the person has assisted another person in obtaining employment at a school district or charter school when the person knew that the other person had previously engaged in sexual misconduct with a minor or student in violation of the law; TEC, , which sets out crimes that relate to the education profession and authorizes the SBEC to sanction or refuse to issue a certificate to any person who has been convicted of one of these offenses; TEC, (c), (c), and (c), which give SBEC authority to sanction an educator who has a continuing, term, or probationary contract and who resigns without good cause; TEC, , which allows the SBEC to sanction educators who fail to fire or to refuse to hire an applicant when the educator knew or should have known from the background check that the employee had a criminal record reflecting certain offenses and requires a superintendent to certify to the commissioner of education that the school district is in compliance with this section; TEC, , which requires a superintendent to report to SBEC if the superintendent knows of information showing that an educator or an applicant for an educator certificate has criminal history that is not reflected in the criminal history information provided by the Texas Department of Public Safety in response to a background check; TEC, (g), which requires the SBEC to refuse to renew the certificate of any educator who is in default on student loan payments; Texas Government Code, , which sets out the powers and duties of the State Office of Administrative Hearings and other state agencies with regard to contested case proceedings; and Texas Occupations Code, (a), , , and , which give the SBEC the authority to automatically suspend, revoke, or disqualify a person from receiving an educator certificate if the person has been convicted of certain offenses. CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code (TEC), , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017; ; , as added by SB 7; (a); ; ; ; , as amended by SB 7; , as added by SB 7; ; (c); (c); (c); ; ; and (g); Texas Government Code, ; Texas Occupations Code, (a), , , and ; and Texas Penal Code, 21.12(a), as amended by SB Administrative Denial; Appeal. (a) This section applies to administrative denials, as that term is defined in of this title (relating to Definitions). This section does not apply to the denial of an application for a certificate that has been permanently revoked, and it does not apply to the failure to issue a certificate because specific certification requirements have not been met. (b) The Texas Education Agency (TEA) staff may administratively deny any of the matters set out in subsection (a) of this section based on satisfactory evidence that: (1) the person filed a fraudulent application; (2) the person assisted another person in obtaining permanent employment at a school district or open-enrollment charter school, other than by the routine transmission of administrative or personnel files when the person knew that the other person had previously engaged in an inappropriate relationship with a minor or student in violation of the law; (3) the person has committed an act that would make them subject to required revocation under the Texas Education Code, ; (4) the person has committed an act that would make them subject to mandatory permanent revocation or denial under (i) of this title (relating to Decision-Making Guidelines); (5) [(2)] the person has engaged in conduct or committed a crime or an offense that: demonstrates that the person lacks good moral character; (A) (B) demonstrates that the person is unworthy to instruct or to supervise the youth of this state; or (C) constitutes the elements of a crime or offense relating directly to the duties and responsibilities of the education profession; or (6) [(3)] the person failed to comply with the terms or conditions of an order issued by or on behalf of the State Board for Educator Certification or the TEA staff. (c) The TEA staff shall provide written notice of the denial and the factual and legal reasons for it to the person whose application or request has been administratively denied. The notice shall be given by registered or certified mail to the address the person has provided in the application or request that is being denied. The person may attempt to show compliance with legal requirements by written submission or by requesting an informal conference, and/or may appeal and request a State Office of Administrative Hearings (SOAH) hearing as hereafter provided. The 30-day deadline to appeal and request a hearing is not tolled during any attempts to show cause. (d) The appeal and request for a SOAH hearing of an administrative denial shall be in the form of a petition that complies in content and form with of this title (relating to Petition) and 1 Texas Administrative Code, Part 7, (relating to Required Form of Pleadings). In order to be referred to the SOAH for a contested case hearing, an appeal petition must be filed with the TEA staff within 30 calendar days after the person received or is deemed to have received written notice of the administrative denial. Unless otherwise proved by the person, the notice shall be deemed to have been received by the examinee no later than five calendar days after mailing to the most recent address provided by the person. The TEA staff may dismiss an appeal that is not timely filed without further action. (e) The TEA staff shall send an answer to the petition to the person appealing an administrative denial and shall refer the petition and answer to the SOAH for a contested case hearing. PROPOSED RULES November 3, TexReg 6101

46 Complaint, Required Reporting, and Investigation; Investigative Notice; Filing of Petition. (a) The Texas Education Agency (TEA) staff may obtain and investigate information concerning alleged improper conduct by an educator, applicant, examinee, or other person subject to this chapter that would warrant the State Board for Educator Certification (SBEC) denying relief to or taking disciplinary action against the person or certificate. (b) Complaints against an educator, applicant, or examinee must be filed in writing. (c) The TEA staff may also obtain and act on other information providing grounds for investigation and possible action under this chapter. (d) A person who serves as the superintendent of a school district or district of innovation or the director of an open-enrollment charter school, private school, regional education service center, or shared services arrangement may notify the SBEC of any educator misconduct that the person believes in good faith may be subject to sanctions under this chapter and/or Chapter 247 of this title (relating to Educators' Code of Ethics). However, under any of the following circumstances, a person who serves in such a position shall promptly notify the SBEC in writing by filing a report with the TEA staff within seven business [calendar] days of the date the person either receives a report from a principal under subsection (e) of this section or knew of those circumstances, and may be subject to sanctions for failure to do so, pursuant to (b)(4) of this title (relating to Disciplinary Action by State Board for Educator Certification): (1) that an applicant for or a holder of a certificate has a reported criminal history, which the superintendent or director obtained information by a means other than the criminal history clearinghouse established under Texas Government Code, ; (2) that a certificate holder was terminated from employment and there is [based on] evidence that he or she committed any of the following acts: (A) sexually or physically abused a student or minor or engaged in any other illegal conduct with a student or minor; [(B) was involved in a romantic relationship with or solicited or engaged in sexual contact with a student or minor;] (B) [(C)] possessed, transferred, sold, or distributed a controlled substance; (C) [(D)] illegally transferred, appropriated, or expended school property or funds; (D) [(E)] attempted by fraudulent or unauthorized means to obtain or to alter any certificate or permit that would entitle the individual to be employed in a position requiring such certificate or permit or to receive additional compensation associated with a position; (E) [(F)] committed a crime, any part of such crime having occurred on school property or at a school-sponsored event; or (F) [(G)] solicited or engaged in sexual conduct or a romantic relationship with a student or minor; (3) that a certificate holder has submitted a notice of resignation and that there exists evidence that he or she committed one of the acts specified in paragraph (2) of this subsection. (A) Before accepting an employee's resignation that, under this paragraph, requires a person to notify the SBEC by filing a report with the TEA staff, the person shall inform the certificate holder in writing that such a report will be filed and that sanctions against his or her certificate may result as a consequence. (B) A person required to comply with this paragraph shall notify the governing body of the employing school district before filing the report with the TEA staff. (C) A superintendent or director of a school district shall complete an investigation of an educator if there is reasonable cause to believe the educator may have engaged in misconduct described in paragraph (2)(A) of this subsection despite the educator's resignation from district employment before completion of the investigation; or (4) any other circumstances requiring a report under the Texas Education Code (TEC), (e) A person who serves as a principal in a school district, a district of innovation, or an open-enrollment charter school must notify the superintendent or director of the school district, district of innovation, or charter school and may be subject to sanctions for failure to do so, pursuant to (b)(4) of this title (relating to Disciplinary Action by State Board for Educator Certification), no later than seven business days after: (1) an educator's termination or resignation following an alleged incident of misconduct involving one of the acts described in subsection (d)(2) of this section; or (2) the principal knew about an educator's reported criminal history. (f) [(e)] Pursuant to the TEC, (b-2), (c), [and] (h), and (i), a report filed under subsections [subsection] (d) and (e) of this section must include: (1) the name or names of any student or minor who is the victim of abuse or unlawful conduct by an educator; and [shall, at a minimum, describe in detail] (2) the factual circumstances requiring the report and [identify] the subject of the report by providing the following available information: (A) name and any aliases; certificate number, if any, or social security number; (B) last known mailing address and home and daytime phone numbers; (C) all available contact information for any alleged victim or victims; [and] (D) name or names and any available contact information of any relevant witnesses to the circumstances requiring the report;[.] (E) current employment status of the subject, including any information about proposed termination, notice of resignation, or pending employment actions; and (F) involvement by a law enforcement or other agency, including the name of the agency. (g) Pursuant to the Family Educational Rights and Privacy Act (FERPA), 20 United States Code, 1232g(a)(4), and the federal regulations interpreting it at 34 Code of Federal Regulations, 99.3, education records that are protected by FERPA must be records that are directly related to a student, and the term "education records" does not include records that relate to a school employee in his or her capacity as a school employee. 42 TexReg 6102 November 3, 2017 Texas Register

47 (h) A person who is required to file a report under subsections [subsection] (d) and (e) of this section but fails to do so timely is subject to sanctions under this chapter. (i) [(f)] If a school district board of trustees learns of a failure by the superintendent of the district or a district principal to provide a notice required under the Texas Code of Criminal Procedure (TCCP), 15.27(a), (a-1), or (b), the board of trustees shall report the failure to the SBEC. If the governing body of a private primary or secondary school learns of a failure by the principal of the school to provide a notice required under the TCCP, 15.27(e), and the principal holds a certificate issued under the TEC, Chapter 21, Subchapter B, the governing body shall report the failure to the SBEC. (j) [(g)] The TEA staff shall not pursue sanctions against an educator who is alleged to have abandoned his or her TEC, Chapter 21, contract in violation of the TEC, (c), (c), or (c), subject to the limitations imposed by the TEC, (g), unless the board of trustees of the employing school district: (1) submits a written complaint to the TEA staff within 30 calendar days after the effective date of the educator's separation from employment from the school district. For purposes of this section, unless the school district and the educator have a written agreement to the contrary, the effective date of separation from employment is the first day that, without district permission, the educator fails to appear for work under the contract; (2) renders a finding that good cause did not exist under the TEC, (c)(2), (c)(2), or (c)(2). This finding constitutes prima facie evidence of the educator's lack of good cause, but is not a conclusive determination; and (3) submits the following required attachments to the written complaint: (A) the educator's resignation letter, if any; (B) the agreement with the educator regarding the effective date of separation from employment, if any; (C) the educator's contract; and (D) school board meeting minutes indicating a finding of "no good cause" (if the board does not meet within 30 calendar days of the educator's separation from employment, the minutes may be submitted within 10 calendar days after the next board meeting). (k) [(h)] To efficiently administer and implement the SBEC's purpose under this chapter and the TEC, the TEA staff may set priorities for the investigation of complaints based on the severity and immediacy of the allegations and the likelihood of harm posed by the subject of the investigation. All cases accepted for investigation shall be assigned one of the following priorities. (1) Priority 1: conduct that may result in the placement of an investigative notice pursuant to the TEC, , and subsection (l) [(i)] of this section because it presents a risk to the health, safety, or welfare of a student or minor, parent of a student, fellow employee, or professional colleague, including, but not limited to, the following: (A) any conduct constituting a felony criminal offense; (B) indecent exposure; (C) public lewdness; (D) child abuse and/or neglect; (E) possession of a weapon on school property; (F) drug offenses occurring on school property; (G) sale to or making alcohol or other drugs available to a student or minor; (H) sale, distribution, or display of harmful material to a student or minor; (I) (J) (K) certificate fraud; state assessment testing violations; deadly conduct; and (L) conduct that involves inappropriate communication with a student as described in 247.2(3)(I) of this title (relating to Code of Ethics and Standard Practices for Texas Educators), inappropriate professional educator-student relationships and boundaries, or otherwise soliciting or engaging in sexual conduct or a romantic relationship with a student or minor. (2) Priority 2: any sanctionable conduct that is not Priority 1 conduct under paragraph (1) of this subsection. An investigative notice will not be placed on an educator's certification records on the basis of an allegation of Priority 2 conduct. The TEA staff may change a case's priority at any time based on information received. Priority 2 conduct includes, but is not limited to, the following: (A) any conduct constituting a misdemeanor criminal offense or testing violation that is not Priority 1 conduct; (B) contract abandonment; and (C) code of ethics violations that do not constitute Priority 1 conduct. (l) [(i)] After accepting a case for investigation, if the alleged conduct indicates a risk to the health, safety, or welfare of a student or minor, as described in subsection (k)[(h)](1) of this section, the TEA staff shall immediately place an investigative notice on the certificate holder's certification records stating that the certificate holder is currently under investigation. The placement of such an investigative notice must follow the procedures set forth in subsection (m)[(j)](1) of this section. After accepting a case for investigation, if the alleged conduct indicates a risk to the health, safety, or welfare of a parent of a student, fellow employee, or professional colleague, as described in subsection (k)[(h)](1) of this section, the TEA staff may place an investigative notice on the certificate holder's certification records stating that the certificate holder is currently under investigation. The placement of an investigative notice must follow the procedures set forth in subsection (m)[(j)](2) of this section. (m) [(j)] The following procedures must be followed for placing an investigative notice on the educator's certification records. (1) At the time of placing an investigative notice on an educator's certification records for alleged conduct that indicates a risk to the health, safety, or welfare of a student or minor, the TEA staff shall serve the certificate holder with a letter informing the educator of the investigation and the basis of the complaint. (A) Within ten calendar days of placing an investigative notice on the educator's certification records, the letter notifying the certificate holder of the investigation shall be mailed to the address provided to the TEA staff pursuant to the requirements set forth in of this title (relating to Procedures in General). (B) The letter notifying the certificate holder of the investigation shall include a statement of the alleged conduct, which forms the basis for the investigative notice, and shall provide the certificate holder the opportunity to show cause within ten calendar days why the notice should be removed from the educator's certification records. PROPOSED RULES November 3, TexReg 6103

48 (2) Prior to placing an investigative notice on an educator's certification records for alleged conduct that indicates a risk to the health, safety, or welfare of a parent of a student, fellow employee, or professional colleague, as described in subsection (k)[(h)](1) of this section, the TEA staff shall serve the certificate holder with a letter informing the educator of the investigation and the basis of the complaint. (A) At least ten calendar days before placing an investigative notice on the educator's certification records, the letter notifying the certificate holder of the investigation shall be mailed to the address provided to the TEA staff pursuant to the requirements set forth in of this title. (B) The letter notifying the certificate holder of the investigation shall include a statement of the alleged conduct, which forms the basis for the investigative notice, and shall provide the certificate holder the opportunity to show cause within ten calendar days why the notice should not be placed on the educator's certification records. (3) The TEA staff shall determine whether or not to remove or place an investigative notice on the educator's certification records, taking into account the educator's response, if any, to the letter notifying the certificate holder of the investigation. (n) [(k)] An investigative notice is subject to the following time limits. (1) An investigative notice may remain on the certification records of a certificate holder for a period not to exceed 240 calendar days. (2) The TEA staff may toll this time limit if information is received indicating that there is a pending criminal or administrative matter related to the alleged act of misconduct that gives rise to the investigative notice. For purposes of this subsection, a criminal or administrative matter includes an audit by a state or federal agency, an arrest, an investigation, related litigation or other enforcement action brought by a state or federal administrative agency, or a prosecution by a criminal law enforcement agency. Upon receiving notice that the criminal or administrative matter has been resolved the tolling period shall end. As part of its procedure, the TEA staff will attempt to make bimonthly (once every two months) contact with the agency where a related matter is pending to determine whether the related matter has been closed or otherwise resolved. (3) The TEA staff may toll this time limit if the matter is referred for a contested case hearing, upon agreement of the parties, or while the matter is pending action by the SBEC on a proposed agreed order. (o) [(l)] The TEA staff shall remove an investigative notice from an educator's certification records: (1) when a case's final disposition occurs within the time limits established in subsection (n) [(k)] of this section; or (2) when the time limits for an investigative notice have been exceeded, if: (A) the certificate holder has made a written demand to the TEA staff that the investigative notice be removed because the time limits have been exceeded; and (B) the TEA staff has failed to refer the matter to the State Office of Administrative Hearings for a contested case hearing within 30 calendar days from the date of receipt of the written demand to remove the investigative notice. (p) [(m)] Only the TEA staff may file a petition seeking sanctions under of this title. Prior to filing a petition, the TEA staff shall mail to the certificate holder affected by written notice of the facts or conduct alleged to warrant the intended action and shall provide the certificate holder an opportunity to show compliance with all requirements of law Disciplinary Action by State Board for Educator Certification. (a) Pursuant to this chapter, the State Board for Educator Certification (SBEC) may take any of the following actions: (1) place restrictions on the issuance, renewal, or holding of a certificate, either indefinitely or for a set term; (2) issue an inscribed or non-inscribed reprimand; (3) suspend a certificate for a set term or issue a probated suspension for a set term; (4) revoke or cancel, which includes accepting the surrender of, a certificate without opportunity for reapplication for a set term or permanently; [or] (5) impose any additional conditions or restrictions upon a certificate that the SBEC deems necessary to facilitate the rehabilitation and professional development of the educator or to protect students, parents of students, school personnel, or school officials; or[.] (6) impose an administrative penalty of $500-$10,000 on a superintendent or director who fails to file timely a report required under (d) of this title (relating to Complaint, Required Reporting, and Investigation; Investigative Notice; Filing of Petition) or on a principal who fails to timely notify a superintendent or director as required under (e) of this title under the circumstances and in the manner required by the Texas Education Code (TEC), (b) The SBEC may take any of the actions listed in subsection (a) of this section based on satisfactory evidence that: (1) the person has conducted school or education activities in violation of law; (2) the person is unworthy to instruct or to supervise the youth of this state; (3) the person has violated a provision of the Educators' Code of Ethics; (4) the person has failed to report or has hindered the reporting of child abuse pursuant to the Texas Family Code, , or has failed to notify the SBEC or the school superintendent or director under the circumstances and in the manner required by the TEC [Texas Education Code (TEC)], , and (d) - (f) [ (d) and (e)] of this title [(relating to Complaint, Required Reporting, and Investigation; Investigative Notice; Filing of Petition)]; (5) the person has abandoned a contract in violation of the TEC, (c), (c), or (c); (6) the person has failed to cooperate with the Texas Education Agency (TEA) in an investigation; (7) the person has failed to provide information required to be provided by of this title (relating to Required Submissions of Information, Surveys, and Other Data); (8) the person has violated the security or integrity of any assessment required by the TEC, Chapter 39, Subchapter B, as described in subsection (g) of this section or has committed an act that is a departure from the test administration procedures established by the commissioner of education in Chapter 101 of this title (relating to Assessment); 42 TexReg 6104 November 3, 2017 Texas Register

49 (9) the person has committed an act described in (h)(1) of this title, which constitutes sanctionable Priority 1 conduct, as follows: (A) any conduct constituting a felony criminal offense; (B) indecent exposure; (C) public lewdness; (D) child abuse and/or neglect; (E) possession of a weapon on school property; (F) drug offenses occurring on school property; (G) sale to or making alcohol or other drugs available to a student or minor; (H) sale, distribution, or display of harmful material to a student or minor; (I) certificate fraud; (J) state assessment testing violations; (K) deadly conduct; or (L) conduct that involves soliciting or engaging in sexual conduct or a romantic relationship with a student or minor; (10) the person has committed an act that would constitute an offense (without regard to whether there has been a criminal conviction) that is considered to relate directly to the duties and responsibilities of the education profession, as described in (c) of this title (relating to Eligibility of Persons with Criminal History for a Certificate under Texas Occupations Code, Chapter 53, and Texas Education Code, Chapter 21). Such offenses indicate a threat to the health, safety, or welfare of a student or minor, parent of a student, fellow employee, or professional colleague; interfere with the orderly, efficient, or safe operation of a school district, campus, or activity; or indicate impaired ability or misrepresentation of qualifications to perform the functions of an educator and include, but are not limited to: (A) offenses involving moral turpitude; (B) offenses involving any form of sexual or physical abuse or neglect of a student or minor or other illegal conduct with a student or minor; (C) offenses involving any felony possession or conspiracy to possess, or any misdemeanor or felony transfer, sale, distribution, or conspiracy to transfer, sell, or distribute any controlled substance defined in the Texas Health and Safety Code, Chapter 481; (D) offenses involving school property or funds; (E) offenses involving any attempt by fraudulent or unauthorized means to obtain or alter any certificate or permit that would entitle any person to hold or obtain a position as an educator; (F) offenses occurring wholly or in part on school property or at a school-sponsored activity; or (G) felony offenses involving driving while intoxicated (DWI); (11) the person has intentionally failed to comply with the reporting, notification, and confidentiality requirements specified in the Texas Code of Criminal Procedure, 15.27(a), relating to student arrests, detentions, and juvenile referrals for certain offenses; (12) the person has failed to discharge an employee or to refuse to hire an applicant when the person knew that the employee or applicant had been adjudicated for or convicted of having an inappropriate relationship with a minor in accordance with the TEC, (e), or knew or should have known through a criminal history record information review that the employee or applicant had been convicted of an offense in accordance with the TEC, ; (13) the person is a superintendent of a school district or the chief operating officer of an open-enrollment charter school who falsely or inaccurately certified to the commissioner of education that the district or charter school had complied with the TEC, ; or (14) the person has failed to comply with an order or decision of the SBEC. (c) The TEA staff may commence a contested case to take any of the actions listed in subsection (a) of this section by serving a petition to the certificate holder in accordance with this chapter describing the SBEC's intent to issue a sanction and specifying the legal and factual reasons for the sanction. The certificate holder shall have 30 calendar days to file an answer as provided in of this title (relating to Answer). (d) Upon the failure of the certificate holder to file a written answer as required by this chapter, the TEA staff may file a request for the issuance of a default judgment from the SBEC imposing the proposed sanction in accordance with of this title (relating to Disposition Prior to Hearing; Default). (e) If the certificate holder files a timely answer as provided in this section, the case will be referred to the State Office of Administrative Hearings (SOAH) for hearing in accordance with the SOAH rules; the Texas Government Code, Chapter 2001; and this chapter. (f) The provisions of this section are not exclusive and do not preclude consideration of other grounds or measures available by law to the SBEC or the TEA staff, including student loan default or child support arrears. The SBEC may request the Office of the Attorney General to pursue available civil, equitable, or other legal remedies to enforce an order or decision of the SBEC under this chapter. (g) The statewide assessment program as defined by the TEC, Chapter 39, Subchapter B, is a secure testing program. (1) Procedures for maintaining security shall be specified in the appropriate test administration materials. (2) Secure test materials must be accounted for before, during, and after each test administration. Only authorized personnel may have access to secure test materials. (3) The contents of each test booklet and answer document are confidential in accordance with the Texas Government Code, Chapter 551, and the Family Educational Rights and Privacy Act of Individual student performance results are confidential as specified under the TEC, (b). (4) Violation of security or confidential integrity of any test required by the TEC, Chapter 39, Subchapter B, shall be prohibited. A person who engages in conduct prohibited by this section may be subject to sanction of credentials, including any of the sanctions provided by subsection (a) of this section. (5) Charter school test administrators are not required to be certified; however, any irregularity in the administration of any test required by the TEC, Chapter 39, Subchapter B, would cause the charter itself to come under review by the commissioner of education for possible sanctions or revocation, as provided under the TEC, (a)(4). (6) Conduct that violates the security and confidential integrity of a test is evidenced by any departure from the test administration procedures established by the commissioner of education. Con- PROPOSED RULES November 3, TexReg 6105

50 duct of this nature may include, but is not limited to, the following acts and omissions: (A) viewing a test before, during, or after an assessment unless specifically authorized to do so; test; (B) duplicating secure examination materials; (C) disclosing the contents of any portion of a secure (D) providing, suggesting, or indicating to an examinee a response or answer to a secure test item or prompt; (E) changing or altering a response or answer of an examinee to a secure test item or prompt; (F) aiding or assisting an examinee with a response or answer to a secure test item or prompt; (G) fraudulently exempting or preventing a student from the administration of a required state assessment; (H) encouraging or assisting an individual to engage in the conduct described in paragraphs (1)-(7) of this subsection; or (I) failing to report to an appropriate authority that an individual has engaged in conduct outlined in paragraphs (1)-(8) of this subsection. (7) Any irregularities in test security or confidential integrity may also result in the invalidation of student results. (8) The superintendent and campus principal of each school district and chief administrative officer of each charter school and any private school administering the tests as allowed under the TEC, , shall develop procedures to ensure the security and confidential integrity of the tests specified in the TEC, Chapter 39, Subchapter B, and shall be responsible for notifying the TEA in writing of conduct that violates the security or confidential integrity of a test administered under the TEC, Chapter 39, Subchapter B. A person who fails to report such conduct as required by this subsection may be subject to any of the sanctions provided by subsection (a) of this section Decision-Making Guidelines. (a) Purpose. The purpose of these guidelines is to achieve the following objectives: (1) to provide a framework of analysis for the Texas Education Agency (TEA) staff, the presiding administrative law judge (ALJ), and the State Board for Educator Certification (SBEC) in considering matters under this chapter; (2) to promote consistency in the exercise of sound discretion by the TEA staff, the presiding ALJ, and the SBEC in seeking, proposing, and making decisions under this chapter; and (3) to provide guidance for the informal resolution of potentially contested matters. (b) Construction and application. This section shall be construed and applied so as to preserve SBEC members' discretion in making final decisions under this chapter. This section shall be further construed and applied so as to be consistent with 249.5(b) of this title (relating to Purpose; Policy Governing Disciplinary Proceedings) and this chapter, the Texas Education Code (TEC), and other applicable law, including SBEC decisions and orders. (c) Consideration. The following factors may be considered in seeking, proposing, or making a decision under this chapter: (1) the seriousness of the violation; (2) whether the misconduct was premeditated or intentional; (3) attempted concealment of misconduct; (4) prior misconduct and SBEC sanctions; (5) the potential danger the conduct poses to the health and welfare of students; conduct; (6) the effect of the prior conduct upon any victims of the (7) whether sufficient time has passed and sufficient evidence is presented to demonstrate that the educator or applicant has been rehabilitated from the prior conduct; (8) the effect of the conduct upon the educator's good moral character and ability to be a proper role model for students; (d) (9) whether the sanction will deter future violations; and (10) any other relevant circumstances or facts. Contract abandonment. (1) Good cause. The following factors may be considered good cause when an educator is reported to have abandoned a contract in violation of the TEC, (c), (c), or (c): (A) serious illness or health condition of the educator or close family member of the educator; (B) relocation to a new city as a result of change in employer of the educator's spouse or partner who resides with the educator; or (C) significant change in the educator's family needs that requires the educator to relocate or to devote more time than allowed by current employment. (2) Mitigating factors. The following factors may be considered in seeking, proposing, or making a decision under this chapter regarding an educator who has abandoned a contract in violation of the TEC, (c), (c), or (c): (A) educator gave written notice to school district 30 days or more in advance of the first day of instruction for which the educator will not be present; (B) educator assisted school district in finding a replacement educator to fill the position; (C) educator continued to work until the school district hired a replacement educator; educator assisted in training the replacement educator; (D) (E) educator showed good faith in communications and negotiations with school district; or (F) educator provided lesson plans for classes following educator's resignation. (3) Mandatory minimum sanction for contract abandonment. An educator subject to sanction, who has abandoned a contract in violation of the TEC, (c), (c), or (c) in a case where the factors listed in paragraph (1) or (2) of this subsection do not apply, may not receive a sanction of less than: (A) suspension for one year from the first day that, without district permission, the educator failed to appear for work under the contract, provided that the educator has not worked as an educator dur- 42 TexReg 6106 November 3, 2017 Texas Register

51 ing that year and the case is resolved within that one year through an agreed final order; or (B) suspension for one year from either the effective date of an agreed final order resolving the case or an agreed future date at the beginning of the following school year, if the educator has worked as an educator after abandoning the contract; or (C) suspension for one year from the date that the SBEC adopts an order that becomes final following a default under of this title (relating to Disposition Prior to Hearing; Default) or a contested case hearing at the State Office of Administrative Hearings (SOAH). (e) Mandatory minimum sanction for felony-level conduct. An educator subject to sanction, who is court-ordered to complete a period of deferred adjudication or community supervision for a felony-level criminal offense under state or federal law, may not receive a sanction of less than: (1) suspension for a period concurrent with the term of deferred adjudication or community supervision, if the case is resolved through an agreed final order prior to the educator completing deferred adjudication or community supervision and the educator has not been employed as an educator during the period of deferred adjudication or community supervision; or (2) suspension beginning on the effective date of an agreed final order for a period extending beyond the end of the educator's deferred adjudication or community supervision but may be less than the initial court-ordered term of deferred adjudication or community supervision, if the case is resolved through an agreed final order prior to the educator completing deferred adjudication or community supervision and the educator has been employed as an educator during the period of deferred adjudication or community supervision; or (3) suspension beginning on the effective date of an agreed final order for a period at least half as long as the initial court-ordered term of deferred adjudication or community supervision, if the case is resolved through an agreed final order after the educator has completed deferred adjudication or community supervision; or (4) suspension for a period equal to the term of deferred adjudication or community supervision that the criminal court initially ordered but beginning from the date of the final board decision, if the case is resolved through a final board decision following a contested case hearing at the SOAH or a default under of this title. (f) Mandatory minimum sanction for misdemeanor-level conduct. If an educator is subject to sanction, and a court has ordered the educator to complete a period of deferred adjudication, community supervision, or pretrial diversion for a misdemeanor-level criminal offense under state or federal law, the educator may not receive a sanction of less than an inscribed reprimand. (g) Mandatory minimum sanction for test security violation. An educator who intentionally manipulates the results or violates the security or confidential integrity of any test required by the TEC, Chapter 39, Subchapter B, may not receive a sanction of less than suspension for one year from the effective date of an agreed final order or a final board decision following a contested case hearing at the SOAH. (h) Mandatory minimum sanction for drugs and alcohol on school campus. An educator who is subject to sanction because the educator has tested positive for drugs or alcohol while on school campus, was under the influence of drugs or alcohol on school campus, or was in possession of drugs or alcohol on school campus may not receive a sanction of less than a one-year suspension and required completion of a drug or alcohol treatment program. (i) Mandatory permanent revocation or denial. Notwithstanding subsection (c) of this section, the SBEC shall permanently revoke the teaching certificate of any educator or permanently deny the application of any applicant if, after a contested case hearing or a default under of this title, it is determined that the educator or applicant: (1) engaged in any sexual contact or romantic relationship with a student or minor; (2) solicited any sexual contact or romantic relationship with a student or minor; (3) possessed or distributed child pornography; (4) was registered as a sex offender; (5) committed criminal homicide; (6) transferred, sold, distributed, or conspired to possess, transfer, sell, or distribute any controlled substance, the possession of which would be at least a Class A misdemeanor under the Texas Health and Safety Code, Chapter 481, on school property; (7) intentionally, knowingly, or recklessly causes bodily injury to a student or minor when the conduct of the educator or applicant is not immune from disciplinary proceedings by TEC, ; or (8) committed any offense described in the TEC, (j) Mandatory minimum for failure to report. An educator subject to sanction, who fails to report educator misconduct under the circumstances and in the manner required by the TEC, , and (d) - (f) of this title (relating to Complaint, Required Reporting, and Investigation; Investigative Notice; Filing of Petition), when the case is resolved through an agreed final order, may not receive a sanction of less than: (1) an inscribed reprimand and a $5,000 administrative penalty for a superintendent or director who fails to file timely a report to the SBEC; or (2) an inscribed reprimand and a $500 administrative penalty for a principal who fails to timely notify a superintendent or director. (k) [(j)] Sanctioned misconduct in another state. The findings of fact contained in final orders from any other state jurisdiction may provide the factual basis for SBEC disciplinary action. If the underlying conduct for the administrative sanction of an educator's certificate or license issued in another state is a violation of SBEC rules, the SBEC may initiate a disciplinary action regarding the educator's Texas educator certificate and impose a sanction as provided under this chapter. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER D. HEARING PROCEDURES PROPOSED RULES November 3, TexReg 6107

52 19 TAC STATUTORY AUTHORITY. The amendment is proposed under the Texas Education Code (TEC), , as amended by SB 7, 85th Texas Legislature, Regular Session, 2017, which requires superintendents or directors of school districts, districts of innovation, open-enrollment charter schools, regional education service centers, or shared services arrangements to report to the SBEC within seven business days of when the superintendent or director knows that an educator has a criminal record or has been terminated or resigned when there is evidence that the educator has committed certain misconduct; which requires principals to report to superintendents or directors within seven business days of an educator's termination or resignation when there is evidence that the educator has committed certain misconduct or knew about an educator's criminal record; which gives the SBEC authority to sanction certified educators who fail to fulfill the reporting requirements timely, including administrative penalties of $500-$10,000; which gives the SBEC authority to revoke the certificate of an administrator who employs an applicant in a certified position at a school despite knowing the educator has been adjudicated for or convicted of having an inappropriate relationship with a minor; and which requires the SBEC to adopt rules to require the reporting of educator misconduct and to sanction educators who fail to report; TEC, , which requires the SBEC to propose rules that provide for a procedure for placing a public notice of alleged misconduct on an educator's certificate immediately when the educator is alleged to have committed misconduct that presents a risk to the health, safety, or welfare of a student or minor, and allows the SBEC to determine what types of misconduct would present such a risk; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which states that the SBEC may revoke the certificate of an administrator if the board determines it is reasonable to believe that the administrator employed an applicant despite being aware that the applicant had been adjudicated for or convicted of having an inappropriate relationship with a student or minor; TEC, (a), which charges the SBEC with regulating and overseeing all aspects of the certification, continuing education, and standards of conduct for public school educators; TEC, , which states that Texas Education Agency (TEA) staff provides administrative functions and services for SBEC and gives SBEC the authority to delegate to either the commissioner of education or to TEA staff the authority to settle or otherwise informally dispose of contested cases involving educator certification; TEC, , which authorizes the SBEC to adopt rules as necessary to regulate educators, administer statutory requirements, and provide for educator disciplinary proceedings; TEC, , which requires the SBEC to propose rules establishing training requirements a person must accomplish to obtain a certificate; TEC, , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which requires SBEC to revoke an educator's certificate if the educator is required to register as a sex offender or is convicted of certain felony offenses and the victim of the offense was under 18 years old; TEC, , as added by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017, which allows the SBEC to suspend, revoke, or refuse to issue an educator's certificate if the person has assisted another person in obtaining employment at a school district or charter school when the person knew that the other person had previously engaged in sexual misconduct with a minor or student in violation of the law; TEC, , which sets out crimes that relate to the education profession and authorizes the SBEC to sanction or refuse to issue a certificate to any person who has been convicted of one of these offenses; TEC, (c), (c), and (c), which give SBEC authority to sanction an educator who has a continuing, term, or probationary contract and who resigns without good cause; TEC, , which allows the SBEC to sanction educators who fail to fire or to refuse to hire an applicant when the educator knew or should have known from the background check that the employee had a criminal record reflecting certain offenses and requires a superintendent to certify to the commissioner of education that the school district is in compliance with this section; TEC, , which requires a superintendent to report to SBEC if the superintendent knows of information showing that an educator or an applicant for an educator certificate has criminal history that is not reflected in the criminal history information provided by the Texas Department of Public Safety in response to a background check; TEC, (g), which requires the SBEC to refuse to renew the certificate of any educator who is in default on student loan payments; Texas Government Code, , which sets out the powers and duties of the State Office of Administrative Hearings and other state agencies with regard to contested case proceedings; and Texas Occupations Code, (a), , , and , which give the SBEC the authority to automatically suspend, revoke, or disqualify a person from receiving an educator certificate if the person has been convicted of certain offenses. CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code (TEC), , as amended by Senate Bill 7, 85th Texas Legislature, Regular Session, 2017; ; , as added by SB 7; (a); ; ; ; , as amended by SB 7; , as added by SB 7; ; (c); (c); (c); ; ; and (g); Texas Government Code, ; Texas Occupations Code, (a), , , and ; and Texas Penal Code, 21.12(a), as amended by SB Disposition Prior to Hearing; Default. (a) This chapter and 1 Texas Administrative Code (TAC), Part 7, Chapter 155 (relating to Rules of Procedure) shall govern disposition prior to hearing, default, and attendant relief. (b) The Texas Education Agency (TEA) staff or the commissioner of education may issue and sign orders on behalf of the State Board for Educator Certification (SBEC) resolving a case, prior to the issuance of a proposal for decision by the presiding administrative law judge (ALJ) at the State Office of Administrative Hearings (SOAH), by waiver, stipulation, compromise, agreed settlement, consent order, agreed statement of facts, or any other informal or alternative resolution agreed to by the parties and not precluded by law. (c) The SBEC or the SOAH may dispose of a case through dismissal, partial or final summary disposition, or any other procedure authorized by SOAH rules of procedure prior to a contested case hearing on the merits on the following grounds: unnecessary duplication of proceedings; res judicata; withdrawal; mootness; lack of jurisdiction; failure of a party requesting relief to timely file or file in proper form a pleading that would support an order or decision in that party's favor; failure to comply with an applicable order, deadline, rule, or other requirement issued by the SBEC, the TEA staff, or the presiding ALJ; failure to state a claim for which relief can be granted; or failure to prosecute. (d) In any contested case hearing conducted pursuant to this chapter, the findings made by a hearing examiner in a proceeding arising under the Texas Education Code, Chapter 21, Subchapter F, shall not be conclusive but, the record of such proceeding, including all testimony and evidence admitted in the hearing, as well as the findings 42 TexReg 6108 November 3, 2017 Texas Register

53 of the hearing examiner, shall be deemed admissible in a proceeding brought pursuant to this chapter and shall be considered by the ALJ and the SBEC in issuing a proposed or final decision. (e) For purposes of this chapter, the following shall constitute a default in a contested case: (1) the failure of the respondent to timely file a written answer in proper form as required by this chapter; (2) the failure of the petitioner in an administrative denial case to timely file a petition in proper form as required by this chapter; or (3) the failure of the certificate holder or applicant to appear in person or by authorized representative on the day and at the time set for hearing in a contested case, regardless of whether a written answer or petition has been filed. (f) Upon the occurrence of an event of default as defined in this section, the SBEC may enter a default judgment, as authorized by the Texas Government Code, , or [and] 1 TAC, Part 7, (relating to Default Proceedings). (1) If a respondent has failed to timely file a written answer or a petitioner in an administrative denial case has failed to timely file a petition, TEA staff will provide the certificate holder or applicant with a notice of default specifying the factual and legal basis for imposing the proposed sanction at least 30 calendar days prior to presenting a motion for default to the SBEC. It is a rebuttable presumption that the notice was served on the certificate holder or applicant no later than five calendar days after mailing. (2) If the case is dismissed and remanded to the SBEC by the SOAH after a certificate holder or applicant failed to appear in person or by authorized representative on the day and at the time set for hearing in a contested case, the TEA staff attorney shall present to the SBEC a motion for default. After consideration of the petition and the motion for default, the SBEC may then issue a default order deeming the allegations in the petition as true. (3) Prior to issuance of a default decision or order, the certificate holder may contest the issuance of a default judgment by written notice filed with TEA staff or by written request to appear before the SBEC at an SBEC meeting to show good cause for failure to file an answer or appear at the contested case proceeding. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) TITLE 22. EXAMINING BOARDS PART 5. STATE BOARD OF DENTAL EXAMINERS CHAPTER 100. GENERAL PROVISIONS 22 TAC The State Board of Dental Examiners (Board) proposes amendments to concerning the Advisory Committee on Dental Anesthesia. The rule amendment provides for staggered terms of the Committee members. Kelly Parker, Executive Director, has determined that for the first five-year period the proposal is in effect, there will not be any fiscal implications for state or local government as a result of enforcing or administering the rule. Ms. Parker has also determined that for the first five-year period the proposed amendment is in effect, the public benefit anticipated as a result of establishing staggered terms is to establish the committee in accordance with the law. Ms. Parker has determined that for the first five-year period the proposed rule is in effect, costs to persons or small businesses will be minimal. There is no foreseeable impact on employment in any regional area where the rules are enforced or administered. Comments on the proposal may be submitted to Tyler Vance, General Counsel, 333 Guadalupe, Suite 3-800, Austin, Texas 78732, Fax (512) , rulecomments@tsbde.texas.gov. The amendments are proposed under Texas Occupations Code (a), which gives the Board authority to adopt rules necessary to perform its duties and ensure compliance with state laws relating to the practice of dentistry to protect the public health and safety. No statutes are affected by these proposal Advisory Committee on Dental Anesthesia. (a) Pursuant to of the Texas Occupations Code, the board establishes an advisory committee: the Advisory Committee on Dental Anesthesia. (b) Purpose. The purpose of the advisory committee is to analyze and report on de-identified data and associated trends concerning anesthesia-related deaths or incidents. The data and information provided by the agency to the advisory committee is confidential. The recommendations and findings reported by the advisory committee to the board are public information and published on the board s Internet website. (c) Compilation of Information by Agency. The agency shall identify investigations and provide confidential, de-identified information regarding the investigations to the advisory committee as described below: (1) By September 30 of each year, the agency shall identify official investigations in which the preliminary investigation was initiated after September 1, 2016, and the official investigation was resolved by the board in the preceding fiscal year, which involve anesthesia-related deaths or incidents. A death shall be considered anesthesia-related if the dental treatment involved the administration of an anesthetic or sedative agent in the dental office, including local anesthesia, and a death occurred. An incident shall be considered anesthesia-related if the dental treatment involved the administration of an anesthetic or sedative agent in a dental office, including local anesthesia, and the Dental Review Panel identified a complication associated with the administration of the anesthetic or sedative agent. (2) By November 30 of each year, the agency shall compile confidential, de-identified information on each investigation identified under paragraph (1) of this subsection, including, but not limited to, the following information: PROPOSED RULES November 3, TexReg 6109

54 level; (A) Information about respondent: (i) Whether respondent is a Medicaid provider; (ii) Respondent s highest sedation/anesthesia permit (iii) Whether respondent reported providing anesthesia services in more than one location on the licensee s application or latest renewal; (iv) Respondent s self-reported practice area; and (v) Whether the investigation was initiated as the result of a complaint submitted by a patient or member of the public, as a self-report to the agency required by Board Rule 108.6, or both. (B) Information about patient: (i) Patient ASA, as identified in respondent's dental records and/or determined by Dental Review Panel; (ii) Patient age -- under the age of 13, 13 and over but under 18, 18 and over but under 75, and 75 and over; (iii) Location of the treatment investigated by the agency -- dental office, hospital, ASC, office of other practitioner; (iv) Level of sedation/anesthesia administered -- Local, Nitrous, I, II, III, IV (determined by Dental Review Panel); (v) Sedation/anesthesia administrator -- respondent, other dentist, MD, CRNA (determined by Dental Review Panel); and (vi) Whether treatment investigated by the agency was paid by Medicaid; and (C) The Dental Review Panel report designated as the final report by the Dental Review Panel. (3) By November 30 of each year, the agency shall provide the information identified under paragraph (2) of this subsection to the members of the advisory committee. (4) On request of the advisory committee, the agency may provide confidential, de-identified investigative files to the advisory committee in addition to the information provided under paragraph (2) of this subsection. Pursuant to of the Texas Occupations Code, the advisory committee may conduct a closed meeting to review confidential investigative files provided to the advisory committee under this paragraph. (d) Analysis of Information by Advisory Committee. The advisory committee shall analyze the information compiled under subsection (c)(2) to identify any trends and submit a report to the board as described below: (1) By June 30 of each year, the advisory committee shall submit a written report to the board of the advisory committee s findings and any recommendations for changes to the board rules or the Dental Practice Act. (2) The advisory committee s annual report shall be posted on the Board s Internet website. (e) Membership and Term Length. The advisory committee consists of six members appointed by the board to serve staggered two-year terms. The Board s presiding officer will draw lots to determine which of the three initial members will serve a one-year term and which three will serve a two-year term, all of which begin on December 1, Thereafter, all appointments will be for two years from the date of appointment. [beginning on December 1 of each odd-numbered year.] Members, including the advisory committee chair, may serve no more than three consecutive two-year terms as members of the advisory committee. An advisory committee chair may serve no more than four consecutive one-year terms as advisory committee chair. The advisory committee must include a licensed Texas physician anesthesiologist and five licensed Texas dentists. The five licensed Texas dentists must include at least one dentist who holds a level 1 sedation/anesthesia permit and no higher permit, at least one dentist who holds a level 2 sedation/anesthesia permit and no higher permit, at least one dentist who holds a level 3 sedation/anesthesia permit and no higher permit, and at least one dentist who holds a level 4 sedation/anesthesia permit. In addition, the five dentist members of the advisory committee shall include one general dentist. The remaining four dentist members shall be dentists who are university-trained in their respective practice areas, with applicants education and experience verified during the application process. These four dentist members shall include one university-trained dentist to represent each of the following practice areas: (1) dental anesthesiology; (2) oral and maxillofacial surgery; (3) pediatric dentistry; and (4) periodontics. (f) Qualification for Membership. A person cannot be appointed as a member unless he or she holds a Texas dental or medical license that he or she has maintained in good standing for at least the five years preceding application for membership on the advisory committee. A license is in good standing if it is not expired, currently subject to a probated suspension, or currently subject to an enforced suspension. (g) Board Member Membership on Advisory Committee. In accordance with (c) of the Texas Occupations Code, a currently serving board member cannot be appointed to the advisory committee. A former board member cannot be appointed to the advisory committee prior to the second anniversary of the expiration or termination of the board member s service on the board. (h) Application, Nomination, and Confirmation Process. Pursuant to of the Texas Occupations Code, the board establishes the following process for the application, nomination, and confirmation of members of the advisory committee. (1) Application for Membership. The application for the initial appointments will be published on the board s internet website by October 1, 2017,and the application period will close on October 15, Thereafter [By October 1 of each odd-numbered year], the agency shall publish an application for advisory committee membership on the board s Internet website three months prior to the expiration of an appointment or as soon as possible following the resignation or removal of a member. The application period shall close two weeks after the application has been published. [on October 15 of each odd-numbered year.] (2) Nomination of Advisory Committee Members. By November 1, 2017, the presiding officer of the board shall review all initial applications and nominate applicants for membership on the advisory committee. Thereafter, nominations will be made within two weeks of the closure of the application period. [By November 1 of each odd-numbered year, the presiding officer of the board shall review all applications and nominate six applicants for membership on the advisory committee.] The applicants nominated by the presiding officer shall represent the same self-reported practice area as the member they may replace. [membership described by subsection (e) of this section.] (3) Confirmation of Advisory Committee Members. By December 1, 2017, [of each odd-numbered year,] the board shall vote 42 TexReg 6110 November 3, 2017 Texas Register

55 by ballot in a public meeting to confirm or reject each of the presiding officer s initial nominees for membership on the advisory committee. Thereafter, the board shall vote for nominees at the first regularly scheduled board meeting that follows the nominations. Confirmation of a nominee requires the affirmative vote of an absolute majority of the entire membership of the board if the board is comprised of more than six, but fewer than eleven members, or if the board is comprised of more than eleven members. Confirmation of a nominee requires the affirmative vote of at least seven members of the board if the board is comprised of eleven members. (4) Rejection of Nomination by Board. If one of the presiding officer s nominations for membership on the advisory committee is rejected by the board, the presiding officer shall nominate another applicant to membership on the advisory committee, subject to confirmation by the board, as described in paragraph (3) of this subsection. The subsequent nominee shall represent the same self-reported practice area as the original nominee. (5) Appointment of Advisory Committee Members. The appointment of an advisory committee member commences on the date the board confirms the presiding officer s appointment of the advisory committee member. (i) Designation of Advisory Committee Chair. Each year the presiding officer of the board shall designate one of the advisory committee members appointed by the board to serve a one-year term as chair of the advisory committee. (1) This paragraph applies if the board is comprised of more than six, but fewer than eleven members, or if the board is comprised of more than eleven members. The board shall confirm the presiding officer s designation by affirmative vote of an absolute majority of the entire membership of the board. If the presiding officer s designation is unconfirmed by such an affirmative vote, the presiding officer shall designate another member of the advisory committee as the chair of the advisory committee, subject to an affirmative vote of an absolute majority of the entire membership of the board. (2) This paragraph applies if the board is comprised of eleven members. The board shall confirm the presiding officer s designation by affirmative vote of at least seven members of the board. If the presiding officer s designation is unconfirmed by such an affirmative vote, the presiding officer shall designate another member of the advisory committee as the chair of the advisory committee, subject to an affirmative vote of at least seven members of the board. (j) Resignation, Removal, and Replacement of Advisory Committee Members. If an advisory committee member resigns or is removed from the advisory committee prior to the expiration of his or her term, the advisory committee member shall be replaced with another member that represents the self-reported practice area of the former advisory committee member. The application period shall re-open for a period of no more than 30 days. The agency shall publish the application for advisory committee membership on the board s Internet website, specifying the self-reported practice area to be replaced by a new member of the advisory committee. The presiding officer shall nominate the replacement member of the advisory committee at the next public meeting of the board, and the board shall confirm or reject the nomination as described in subsection (h) of this section. (k) Confidential Information. The members of the advisory committee shall execute confidentiality agreements related to their membership on the advisory committee. Violation of the confidentiality agreement is grounds for immediate removal from the advisory committee and may subject the member of the advisory committee to investigation and disciplinary proceedings for dishonorable conduct pursuant to Board Rule (l) Communication with Other Parties. Members of the advisory committee shall not engage in private communications with nonadvisory committee members about the subject matter of the advisory committee or its work, except that members of the advisory committee may communicate with agency staff to facilitate the completion of tasks required by this rule. (m) Reimbursement. The advisory committee may be reimbursed for expenses in accordance with of the Texas Government 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 October 19, TRD Kelly Parker Executive Director State Board of Dental Examiners Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 9. TEXAS MEDICAL BOARD CHAPTER 160. MEDICAL PHYSICISTS 22 TAC 160.7, The Texas Medical Board (Board) proposes amendments to 160.7, concerning Qualifications for Licensure and , concerning Training Licensure. The amendments to 160.7, amend the rule by deleting a reference to a foreign educational credentialing service that is no longer in operation and adding language authorizing international credit evaluations from credential evaluation organizations approved by the American Board of Radiology. The amendment also removes language regarding a master or doctorate degree that was unnecessary and covered by another section of the rule. The amendments to , amend the rule by eliminating the term "training license" and substituting the term "temporary license" to be consistent with language in the Medical Physicist Act. The amendments increase the number of temporary license which an applicant may granted from four to twelve, with the proviso that after the seventh renewal the Board shall perform an evaluation to determine if an applicant is making progress in a medical physicist training program. The amendment also eliminates the term "renewal," because that term was inaccurate as temporary license are not renewed, but rather each license requires a new application. The amendment further adds language authorizing the executive director, at the executive director's discretion, to approve a supervisor of temporary licensees to supervise more than two temporary licensees. Finally, the amendment adds language allowing a supervisor at a CAMPEP approved medical physics training program to supervise more than two temporary licensees without requesting executive director approval. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing this proposal will be to provide the public greater access to PROPOSED RULES November 3, TexReg 6111

56 qualified medical physicists with international training by allowing for greater flexibility in obtaining international credit evaluations and to provide greater flexibility to medical physicists who wish to receive certification and training in multiple areas of medical physics. The public will ALSO benefit by having access to medical physicists skilled in different aspects of a medical physics. Mr. Freshour has also determined that for the first five-year period the sections are in effect there will be no fiscal implication to state or local government as a result of enforcing the sections as proposed. There will be no effect to individuals required to comply with the rules as proposed. There will be no effect on small or micro businesses. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendments are proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to recommend rules to establish licensing and other fees and recommend rules necessary to administer and enforce this chapter. No other statutes, articles or codes are affected by this proposal Qualifications for Licensure. (a) - (c) (No change.) (d) International academic credit. Degrees and course work received at international universities shall be acceptable only if such course work could be counted as transfer credit by regionally accredited universities. An applicant having an international degree(s) must furnish at the applicant's own expense [a Foreign Educational Credentials Evaluation from the Office of International Education Services of the American Association of Collegiate Registrars and Admissions Officers (AACRAO) or] an International Credential Evaluation from the Foreign Credential Service of America (FCSA), a credential evaluation from an American Board of Radiology (ABR) approved Credentials Evaluation organization, or another similar entity as approved by the board. The degree evaluation must be sent directly to the board by the evaluation service. An applicant must submit with the application complete certified copies of academic transcripts showing proof of the degree(s) awarded (or equivalent degree [masters or doctorate]) and the date [it was] awarded. Documents written in languages other than English shall be accompanied by a certified English translation. (e) Approved specialty examination. An applicant under this section must successfully pass [complete] one of the following examinations in each specialty for which application is submitted: (1) - (4) (No change.) (f) Jurisprudence Examination. Applicants for licensure must pass a jurisprudence examination ("JP exam"), which shall be conducted on the licensing requirements and other laws, rules, or regulations applicable to the medical physicist profession in this state. The jurisprudence examination shall be developed and administered as follows: (1) Questions for the JP Exam may be prepared by board staff with input from the Advisory Committee and board, or contracted out to a third party vendor. Board staff shall make arrangements for a facility by which applicants can take the examination; (2) Applicants must pass the JP exam with a score of 75 or better within three attempts, unless the Board allows an additional attempt based upon a showing of good cause. An applicant who is unable to pass the JP exam within three attempts must appear before the licensure committee of the board to address the applicant's inability to pass the examination and to re-evaluate the applicant's eligibility for licensure. It is at the discretion of the licensure committee to allow an applicant additional attempts to take the JP exam; (3) An examinee shall not be permitted to bring books, compends, notes, journals, calculators or other help into the examination room, nor be allowed to communicate by word or sign with another examinee while the examination is in progress without permission of the presiding examiner, nor be allowed to leave the examination room except when so permitted by the presiding examiner. (4) Irregularities during an examination such as giving or obtaining unauthorized information or aid as evidenced by observation or subsequent statistical analysis of answer sheets, shall be sufficient cause to terminate an applicant's participation in an examination, invalidate the applicant's examination results, or take other appropriate action; (5) A person who has passed the JP Exam shall not be required to retake the Exam for another or similar license, except as a specific requirement of the board; (g) Alternative License Procedures for Military Service Members, Military Veterans, and Military Spouses. (1) An applicant who is a military service member, military veteran, or military spouse may be eligible for alternative demonstrations of competency for certain licensure requirements. Unless specifically allowed in this subsection, an applicant must meet the requirements for licensure as specified in this chapter. (2) To be eligible, an applicant must be a military service member, military veteran, or military spouse and meet one of the following requirements: (A) holds an active unrestricted medical physicist license issued by another state that has licensing requirements that are substantially equivalent to the requirements for a Texas medical physicist license; or (B) within the five years preceding the application date held a medical physicist license in this state. (3) The executive director may waive any prerequisite to obtaining a license for an applicant described by this subsection, after reviewing the applicant's credentials. (4) Applications for licensure from applicants qualifying under this section shall be expedited by the board's licensure division. Such applicants shall be notified, in writing or by electronic means, as soon as practicable, of the requirements and process for renewal of the license. (5) Alternative Demonstrations of Competency Allowed. Applicants qualifying under this section, notwithstanding: (A) the one year expiration in 160.8(a)(2) of this title (relating to Application Procedures), are allowed an additional six months to complete the application prior to it becoming inactive; and (B) the 20 day deadline in 160.8(a)(6) of this title, may be considered for permanent licensure up to five days prior to the board meeting. (h) Applicants with Military Experience. (1) For applications filed on or after March 1, 2014, the Board shall credit, with respect to an applicant who is a military service member or military veteran as defined in of this title (relating to Definitions), verified military service, training, or education toward 42 TexReg 6112 November 3, 2017 Texas Register

57 the licensing requirements, other than an examination requirement, for a license issued by the Board. (2) This section does not apply to an applicant who: (A) has had a medical physicist license suspended or revoked by another state or a Canadian province; (B) holds a medical physicist license issued by another state or a Canadian province that is subject to a restriction, disciplinary order, or probationary order; or (C) has an unacceptable criminal history Temporary [Training] Licensure. (a) To be eligible for a temporary [training] license, a person must meet the educational requirements set out in of this chapter (relating to Qualifications for Licensure). (b) A temporary [training] license shall be issued for each specialty for a one-year period. (c) The holder of a temporary license may apply for up to twelve temporary licenses. (d) Upon application for the seventh temporary license, the Board shall perform an evaluation of an applicant's progress toward certification in a medical physicist area of specialty. This evaluation will include, but is not limited to: (1) information on the applicant's current participation in any medical physicist training program; (2) identification of the medical physicist specialty/specialties an applicant is working toward; (3) the number of certification examinations taken during the previous six years and the results of said examinations; (4) any medical physicist certification(s) successfully completed during the previous six years. If this evaluation determines that satisfactory progress has not been made toward completion of a medical physicist certification, an application for an additional temporary license may be denied. (e) The board may, in its discretion, allow a holder of a Temporary License to apply for more than twelve licenses. [(c) Each training license may be renewed annually up to four times. The licenses do not have to be for consecutive years.] (f) [(d)] The application for [renewal of] a temporary [training] license shall include information regarding the experience in the medical physics specialty completed by the renewal applicant during the previous one-year period. (g) [(e)] The work experience must be under the supervision of a licensed medical physicist holding a license in the specialty area. The work experience must be completed in accordance with a supervision plan approved by the board, signed by both the supervisor and the temporary [training] license holder. The supervision plan shall describe the duration of personal, direct and general supervision with particular attention to the aspects of the work of the temporary [training] licensee that could have the greatest effect on the safety of patients, personnel or the public. The board may audit supervision plans for compliance with this section. (h) [(f)] A supervisor shall supervise no more than two temporary [training] license holders or their full time equivalents, unless approved by the executive director. Supervisors in a CAMPEP approved medical physics training may supervise more than two temporary license holders without approval by the executive director. [board.] (i) [(g)] A supervisor shall assume responsibility for all of the work conducted under his or her supervision. A supervisor shall approve and sign all formal work product of the temporary [training] license holder, such as reports of machine calibrations, shielding designs, treatment plan reviews, patient specific quality assurance measurements, treatment record reviews, and equipment evaluations. (j) [(h)] The application procedures set out in of this chapter (relating to Application Procedures) shall apply. 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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 182. USE OF EXPERTS 22 TAC The Texas Medical Board (Board) proposes an amendment to 182.8, concerning Expert Physician Reviewers. The amendment removes language from subsection (c) which requires that a report, prepared by an expert reviewer, include the expert's general qualifications; the rule is further amended to add language requiring the expert's specialty areas be included in such reports. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the section, as proposed, is in effect the public benefit anticipated as a result of enforcing this proposal will be to allow licensees who are the subject of an expert review to be apprised of the specialty area of practice of the expert reviewers. Mr. Freshour has also determined that for the first five-year period the section is in effect, there will be no fiscal implication to state or local government as a result of enforcing the section as proposed. There will be no impact or effect on government growth. There will be no effect to individuals required to comply with the rule as proposed. There will be no effect on small or micro businesses, or rural communities. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendment is proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure. No other statutes, articles or codes are affected by this proposal Expert Physician Reviewers. (a) (No change.) PROPOSED RULES November 3, TexReg 6113

58 (b) Procedures for Expert Physician Review. The procedure for the use of Reviewers shall comply with [Section] , Texas Occupations [Tex. Occ.] Code. Reviewers shall be specifically informed that they may communicate with other Reviewers selected to review the case and that they should communicate with other Reviewers to attempt to reach a consensus. (c) Expert Reviewers' Report. A report shall be prepared by the Expert Physician Reviewers to include the following: (1) the specialty area [general qualifications] of each Reviewer; and (2) the opinions agreed to by at least a majority of the Reviewers regarding: dered; facts; (A) relevant facts concerning the medical care ren- (B) applicable standard of care; (C) application of the standard of care to the relevant (D) a determination of whether the standard of care has been violated; (E) the clinical basis for the determinations, including any reliance on peer-reviewed journals, studies, or reports; and (3) Notice to Respondent: "PURSUANT TO [SECTION] OF THE MEDICAL PRACTICE ACT, THIS DOCU- MENT CONSTITUTES INVESTIGATIVE INFORMATION AND IS PRIVILEGED AND CONFIDENTIAL. THIS DOCUMENT IS PROVIDED FOR USE AT THE INFORMAL SETTLEMENT CONFERENCE ONLY AND MAY NOT BE USED FOR ANY OTHER PURPOSE. THIS DOCUMENT IS NOT SUBJECT TO OPEN RECORDS REQUESTS AND IS NOT ADMISSIBLE AS EVIDENCE IN ANY CIVIL JUDICIAL OR ADMINISTRATIVE PROCEEDING. THIS DOCUMENT MAY NOT BE USED BY OR DISSEMINATED BY ANY LICENSEE OR THEIR REPRESENTA- TIVE IN ANY CONTESTED CASE PROCEEDING, INCLUDING, BUT NOT LIMITED TO, A PROCEEDING BEFORE THE STATE OFFICE OF ADMINISTRATIVE HEARINGS. ACCORDINGLY, THIS DOCUMENT SHOULD NOT BE RELEASED TO ANY PER- SON OR ENTITY WITHOUT THE CONSENT OF THE BOARD. PURSUANT TO [SECTIONS] AND OF THE MEDICAL PRACTICE ACT AND CHAPTER [BOARD RULE] 179 OF THIS TITLE (RELATING TO CONFIDENTIALITY), RE- LEASE OF THIS DOCUMENT, OR ANY PORTION THEREOF, TO A LICENSEE OR THEIR REPRESENTATIVE PURSUANT TO [SECTION] OF THE MEDICAL PRACTICE ACT AND CHAPTER [BOARD RULE] 187 OF THIS TITLE (RELATING TO PROCEDURAL RULES [FOR INFORMAL BOARD PROCEED- INGS]), SHALL NOT CONSTITUTE WAIVER OF PRIVILEGE OR CONFIDENTIALITY." (d) (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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 188. PERFUSIONISTS 22 TAC 188.5, The Texas Medical Board (Board) proposes amendments to 188.5, concerning Procedural Rules for Licensure Applicants, and 188.9, concerning License Renewal. The amendment to removes language from subsection (a)(6) requiring a "sworn" application. This change is in accordance with and pursuant to the passage of SB 674 (85th Regular Session), which amended of the Texas Occupations Code. The amendment to removes the reference to "affidavit" which infers that an application for renewal is a "sworn" application. This change is in accordance with and pursuant to the passage of SB 674 (85th Regular Session), which amended of the Texas Occupations Code. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the sections as proposed are in effect, the public benefit anticipated as a result of enforcing the proposal will be to have rules that are consistent with statutes. Mr. Freshour has also determined that for the first five-year period the sections are in effect, there will be no fiscal implication to state or local government as a result of enforcing the sections as proposed. There will be no impact or effect on government growth. There will be no effect to individuals required to comply with the rules as proposed. There will be no effect on small or micro businesses, or rural communities. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendments are proposed under the authority of the Texas Occupations Code Annotated, , and , which provide authority for the Board to adopt rules as necessary to: regulate the practice of perfusion; enforce Chapter 603 of the Texas Occupations Code; and perform its duties under Chapter 603 of the Texas Occupations Code. No other statutes, articles or codes are affected by this proposal Procedural Rules for Licensure Applicants. (a) An applicant for licensure: (1) - (5) (No change.) (6) must complete and submit [an oath swearing that the applicant has submitted] an accurate and complete application. (b) - (c) (No change.) License Renewal. (a) - (f) (No change.) (g) The board may deny renewal of a license, pursuant to of the Act, under the following circumstances: 42 TexReg 6114 November 3, 2017 Texas Register

59 (1) A licensee's falsification of a renewal application [an affidavit] or submission of false information to obtain renewal of a license; (2) - (4) (No change.) (h) - (l) (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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 189. COMPLIANCE 22 TAC The Texas Medical Board (Board) proposes an amendment to , concerning Determination of Successful Completion of an Order. The proposed amendment amends the language in subsection (d) to clarify the provisions related to tolling and extension of an Order's time period resulting from tolling. The amendments also add a new subsection (e) to include a description of "partial tolling" and new subsection (f) to delineate the terms, requirements or conditions that may not be tolled. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the section, as proposed, is in effect, the public benefit anticipated as a result of enforcing the proposal will be to have rules that clearly delineate the effect of tolling on board orders and describe the limits of tolling, as it applies to certain requirements, conditions or terms in an order. Mr. Freshour has also determined that for the first five-year period the section is in effect, there will be no fiscal implication to state or local government, as a result of enforcing the section as proposed. There will be no impact on government growth. There will be no effect to individuals required to comply with the rule as proposed. There will be no effect on small or micro businesses, or rural communities. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendment is proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure. No other statutes, articles or codes are affected by this proposal Determination of Successful Completion of an Order. (a) - (c) (No change.) (d) Tolling. If any provision(s) of the order is [are] tolled, the term of the order shall be extended for the same length of time that the order was tolled. There [there] shall be no determination of Successful Completion until the tolling of the order is lifted and all terms, requirements, provisions or conditions are completed within the extended time period. The [, the term of the order is extended according to the period of time that the order was tolled, the order's terms are timely completed, and the] completion of the tolled provisions shall be [is] verified by a board Compliance Officer. (e) Partial Tolling. While a term or provision of an order is tolled, the compliance monitoring of that particular requirement, term or provision [period] shall be suspended, while compliance monitoring shall continue for remaining requirements, terms or provisions that are not tolled. [and the probationer will not be allowed to complete any provisions required by the order, unless otherwise permitted by other provisions in the order.] (f) Exclusions from tolling. The following terms, requirements or provisions shall not be tolled: (1) completion of continuing education; (2) payment of administrative penalties; (3) passing the jurisprudence or SPEX; or (4) any other term, requirement, provision specifically excluded from the tolling. 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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 193. STANDING DELEGATION ORDERS 22 TAC The Texas Medical Board (Board) proposes an amendment to 193.8, concerning Prescriptive Authority Agreements: Minimum Requirements. The amendment changes the requirements set forth in paragraphs (9) - (11) and adds a new paragraph (12), relating to the frequency physicians must meet with physician assistants to whom they delegate and supervise. These changes are in accordance with, and pursuant to, the passage of SB 1625 (85th Regular Session), which amended of the Texas Occupations Code. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the section, as proposed, is in effect the public benefit anticipated as a result of enforcing this proposal will be to have rules that are consistent with statutes. PROPOSED RULES November 3, TexReg 6115

60 Mr. Freshour has also determined that for the first five-year period the section is in effect there will be no fiscal implication to state or local government as a result of enforcing the section, as proposed. There will be no effect to individuals required to comply with the rule as proposed. There will be no effect on small or micro businesses, or rural communities. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendment is proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure. No other statutes, articles or codes are affected by this proposal Prescriptive Authority Agreements: Minimum Requirements. Prescriptive authority agreement must, at a minimum: (1) - (8) (No change.) (9) describe a prescriptive authority quality assurance and improvement plan and specify methods for documenting the implementation of the plan that includes the following: (A) chart review, with the number of charts to be reviewed determined by the physician and advanced practice registered nurse or physician assistant; [and] (B) periodic face-to-face meetings between the advanced practice registered nurse [or physician assistant] and the physician at a location determined by the physician and the advanced practice registered nurse; and [or physician assistant.] (C) periodic meetings between the physician assistant and the physician. (10) The periodic face-to-face meetings between the physician and advanced practice registered nurse described by paragraph (9)(B) of this section must include: (A) the sharing of information relating to patient treatment and care, needed changes in patient care plans, and issues relating to referrals; (C) documentation of the periodic face-to-face meetings. (B) discussion of patient care improvement; and (11) The periodic face-to-face meetings between the physician and advanced practice registered nurse described by paragraph (9)(B) of this section shall occur as follows: (A) If during the seven years preceding the date the agreement is executed, the advanced practice registered nurse [or physician assistant] was not in a practice that included the exercise of prescriptive authority with required physician supervision for at least five years: (i) at least monthly until the third anniversary of the date the agreement is executed; and (ii) at least quarterly after the third anniversary of the date the agreement is executed, with monthly meetings held between the quarterly meetings by means of a remote electronic communications system, including videoconferencing technology or the Internet; or (B) if during five of the last seven years preceding the date the agreement is executed, the advanced practice registered nurse [or physician assistant] was in a practice that included the exercise of prescriptive authority with required physician supervision, but the agreement is not being entered into with the same supervising physician who delegated and supervised during the five year period: (i) at least monthly until the first anniversary of the date the agreement is executed; and (ii) at least quarterly after the first anniversary of the date the agreement is executed, with monthly meetings held between the quarterly meetings by means of a remote electronic communications system, including videoconferencing technology or the Internet; or (C) if during five of the last seven years preceding the date the agreement is executed, the advanced practice registered nurse [or physician assistant] was in a practice that included the exercise of prescriptive authority with required physician supervision, and the agreement is being entered into with the same supervising physician who delegated and supervised during the five year period: (i) at least quarterly; and (ii) monthly meetings held between the quarterly meetings by means of a remote electronic communications system, including videoconferencing technology or the Internet. 12 The periodic meetings between the physician and physician assistant described by paragraph (9)(C) of this section must: (A) include: (i) the sharing of information relating to patient treatment and care, needed changes in patient care plans, and issues relating to referrals; and (ii) discussion of patient care improvement; (B) be documented; and (C) take place at least once per month in a manner determined by the physician and the physician assistant. (13) [(12)] The prescriptive authority agreement may include other provisions agreed to by the physician and advanced practice registered nurse or physician assistant. (14) [(13)] If the parties to the prescriptive authority agreement practice in a physician group practice, the physician may appoint one or more alternate supervising physicians designated under paragraph (8) of this section, if any, to conduct and document the quality assurance meetings in accordance with the requirements of this chapter. (15) [(14)] The prescriptive authority agreement need not describe the exact steps that an advanced practice registered nurse or physician assistant must take with respect to each specific condition, disease, or symptom. (16) [(15)] A physician, advanced practice registered nurse, or physician assistant who is a party to a prescriptive authority agreement must retain a copy of the agreement until the second anniversary of the date the agreement is terminated. (17) [(16)] A party to a prescriptive authority agreement may not by contract waive, void, or nullify any provision of this section or of the Occupations Code. (18) [(17)] In the event that a party to a prescriptive authority agreement is notified that the individual has become the subject of an investigation by the board, the Texas Board of Nursing, or the Texas 42 TexReg 6116 November 3, 2017 Texas Register

61 Physician Assistant Board, the individual shall immediately notify the other party to the prescriptive authority agreement. (19) [(18)] The prescriptive authority agreement and any amendments must be reviewed at least annually, dated, and signed by the parties to the agreement. The prescriptive authority agreement and any amendments must be made available to the board, the Texas Board of Nursing, or the Texas Physician Assistant Board not later than the third business day after the date of receipt of request, if any. (20) [(19)] The prescriptive authority agreement should promote the exercise of professional judgment by the advanced practice registered nurse or physician assistant commensurate with the advanced practice registered nurse's or physician assistant's education and experience and the relationship between the advanced practice registered nurse or physician assistant and the physician. (21) [(20)] This section shall be liberally construed to allow the use of prescriptive authority agreements to safely and effectively utilize the skills and services of advanced practice registered nurses and physician assistants. 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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 194. MEDICAL RADIOLOGIC TECHNOLOGY SUBCHAPTER B. NON-CERTIFIED TECHNICIANS SUPERVISED BY PHYSICIANS 22 TAC The Texas Medical Board (Board) proposes to repeal Chapter 194, Subchapter B, , concerning Medical Radiologic Technology. The repeal of Chapter 194, Subchapter B is proposed in accordance with Senate Bill No. 674, which repealed requirements under of the Texas Occupations Code related to the Medical Board s registration of non-certified technicians (NCT) who are employed by physicians. The Medical Board provides agency resources to support the general registry for NCTs performing radiologic procedures in Texas. The proposed repeal will eliminate inefficiencies related to Medical Board s resources allocated to supporting a second registry for a subset of NCTs working for physicians, which creates inefficiencies and potential duplication across the agency s departments and provides no benefit to the agency, NCT profession or the public. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the repeal as proposed is in effect, the public benefit anticipated as a result of enforcing this proposal will be to have rules that comport with applicable statutes and to increase the Medical Board s ability to more efficiently provide state resources and support for the medical radiologic technology certification and non-certified technician registration programs in Texas. NCTs and the physicians who employ them will also benefit from the elimination of unnecessary regulations. Mr. Freshour has also determined that for the first five-year period that the repeal is in effect, there will be no fiscal implication to state or local government as a result of enforcing the repeal as proposed. There will be no effect to individuals required to comply with the repeal as proposed. The impact on government growth will be to decrease fees to the agency related to the secondary registration for NCTs employed by physicians and to repeal an existing regulation. There will be no effect on small or micro businesses or rural communities. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The repeal is proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure. The amendments are further proposed under the authority of Texas Occupations Code Annotated, Chapter 601, as amended by Senate Bill 674 (85th Legislature Regular Session) (2017) Purpose Definitions Registration Annual Renewal Non-Certified Technician's Scope of Practice Suspension, Revocation or Nonrenewal of Registration Disciplinary Guidelines Procedure Compliance Construction. 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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) CHAPTER 195. PAIN MANAGEMENT CLINICS PROPOSED RULES November 3, TexReg 6117

62 22 TAC The Texas Medical Board (Board) proposes amendments to 195.3, concerning Inspections. The amendment implements the legislature's intent that Chapter of the Medical Practice Act allows inspection of clinics or facilities not certified under Chapter to determine if they are required to be certified. The amendment also clarifies the legislature's intent that subpoenas requiring immediate production, inspection, and copying of medical and billing are authorized in Board inspections and investigations in order to protect the public health and welfare. The amendment also sets forth criteria establishing the grounds on which a clinic or facility may be inspected to determine if it is required to be certified as a pain management clinic under Chapter of the Medical Practice Act. Finally, the rules recognize the new grant of authority for the Board to enforce compliance with Board subpoenas by filing a suit to enforce in district court. Scott Freshour, General Counsel for the Board, has determined that for each year of the first five years the section, as proposed, is in effect the public benefit anticipated as a result of enforcing this proposal will be to protect the public and address the opioid prescribing crisis by providing the Board additional tools to investigate improper and nontherapeutic prescribing practices. Mr. Freshour has also determined that for the first five-year period that the section is in effect there will be no fiscal implication to state or local government as a result of enforcing the section as proposed. There will be no effect to individuals required to comply with the rule as proposed. There will be no effect on small or micro businesses. Comments on the proposal may be submitted to Rita Chapin, P.O. Box 2018, Austin, Texas , or comments to: rules.development@tmb.state.tx.us. A public hearing will be held at a later date. The amendment is proposed under the authority of the Texas Occupations Code Annotated, , which provides authority for the Board to adopt rules and bylaws as necessary to: govern its own proceedings; perform its duties; regulate the practice of medicine in this state; enforce this subtitle; and establish rules related to licensure. No other statutes, articles or codes are affected by this proposal Inspections. (a) The board may conduct inspections to enforce these rules, including inspections of a pain management clinic and of documents of a physician's practice and records of a physician(s) and mid-level practitioner(s) practicing at such a clinic, as set out in subsections (b) and (c) below of this section. [The board may contract with another state agency or qualified person to conduct these inspections.] (b) The board may inspect a pain management clinic certified under this chapter, including the documents of a physician practicing at the clinic, to determine if the clinic is being operated in compliance with applicable laws and rules. If other violations of the Medical Practice Act or board rules are found during an inspection, the board may bring an enforcement action for such violations. The board may utilize the services of another state or local agency, as needed, in carrying out inspections under this section. (c) The board may inspect a clinic or facility that is not certified under this chapter, including the documents of a physician practicing at the clinic or facility, to determine whether the clinic or facility is required to be certified under of the Medical Practice Act. In addition to a registration violation, if other violations of the Medical Practice Act or board rules are found during an inspection, the board may bring an enforcement action for such violations. (d) The following criteria will be reviewed and evaluated in determining whether an inspection of a clinic or facility pursuant to subsection (c) of this section should be conducted. The board must find that at least one of the criteria listed in paragraphs (1) - (8) of this subsection exists before the board conducts an inspection of a clinic or facility pursuant to subsection (c) of this section. If, after evaluation of the criteria described in paragraphs (1) - (8) of this subsection, the board suspects that a clinic or facility is required to be certified under of the Act, the board shall inspect such clinic or facility. (1) the patient population of a clinic or facility includes multiple patients from outside the geographical area of service for which the clinic or facility provides service, based on a review of the Texas Physician Monitoring Program (PMP) reports; (2) the patient population of the clinic or facility includes several patients at the same address who are all being treated for chronic pain; (3) data from the PMP indicating that the volume of prescribing of a physician, or mid-level provider(s) supervised by the physician at a clinic or facility, places them in the top 50 prescribers in the state for opioids, benzodiazepines, barbiturates, or carisoprodol, excluding prescribers at registered pain management clinics, clinics or facilities engaged in treating cancer patients, and certified hospice facilities; (4) information from the PMP that a physician or mid-level provider(s) supervised by the physician is prescribing to multiple patients, opioids in combination with one, or all of the following: benzodiazepines, barbiturates, or carisoprodol in a clinic or facility; (5) complaints and/or information related to inappropriate prescribing practices, including those from law enforcement agencies or health care regulators, regarding a clinic or facility, or a physician or midlevel provider(s) supervised by the physician, working at the clinic or facility; (6) A patient overdose death related to controlled substances prescribed by a specific physician, or a physician's mid-level provider(s); (7) arrest of a physician or a mid-level provider related to improper or fraudulent prescribing of controlled substances; (8) information developed during the course of a board investigation of a physician or a physician's mid-level provider indicating that the physician or mid-level provider is prescribing to a majority of patients opioids, benzodiazepines, barbituates, or carisprodol in a clinic or facility. (e) [(b)] Unless it would jeopardize an ongoing investigation, the board shall provide at least five business days' notice before conducting an on-site inspection of a registered pain management clinic certified under this section. (f) When inspecting clinics or facilities that are not certified, the board may utilize a subpoena instanter requiring immediate production, inspection and copying of medical and billing records. If immediate production is not made in compliance with the subpoena, the board, acting through the attorney general, may file suit to enforce the subpoena in a district court in Travis County. (g) [(c)] This section does not require the board to make an on-site inspection of a physician's office. 42 TexReg 6118 November 3, 2017 Texas Register

63 (h) [(d)] The board shall conduct inspections of pain management clinics certified under this chapter if the board suspects that the ownership or physician supervision is not in compliance with board rules. 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 October 23, TRD Scott Freshour Interim Executive Director Texas Medical Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 24. TEXAS BOARD OF VETERINARY MEDICAL EXAMINERS CHAPTER 577. GENERAL ADMINISTRATIVE DUTIES SUBCHAPTER B. STAFF 22 TAC The Texas Board of Veterinary Medical Examiners (Board) proposes this amendment to , concerning the Fee Schedule. Overview The purpose of the proposed amendment is to increase license renewal fees to cover increased costs for administering Chapter 801, Occupations Code, in fiscal years 2018 and There are three necessary increased costs that the agency must cover. First, increased vendor costs for the Prescription Monitoring Program (PMP) require the agency to contribute an additional $35,402 annually for operation and maintenance of the program. Additionally, the agency's contract with the Board's peer assistance program, Professional Recovery Network (PRN), requires an additional $12,000 annually for fiscal years 2018 and Finally, the agency is required to increase fees to generate $148,910 during the biennium to compensate for an additional staff member approved by the legislature. Fiscal Note John Helenberg, Executive Director, has determined that for each year of the first five years that the rule is in effect, there are no anticipated increases or reductions in costs to the state and local governments as a result of enforcing or administering the rule. Mr. Helenberg has also determined that for each year of the first five years that the rule is in effect, there will be approximately $121,857 additional revenue collected by state government as a result of enforcing or administering the rule. Public Benefit and Cost Note Mr. Helenberg has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be that the agency can cover the cost of administering Chapter 801, Occupations Code, including necessary expenses for the PMP, PRN, and an additional staff member. The anticipated economic costs to persons required to comply with the rule include the increased license renewal fees for licensees. Local Employment Impact Statement Mr. Helenberg has determined that the rule will have no impact on local employment or a local economy. Thus, the board is not required to prepare a local employment impact statement pursuant to , Government Code. Economic Impact Statement and Regulatory Flexibility Analysis Mr. Helenberg has determined that there are no anticipated adverse economic effects on small business, micro-businesses, or rural communities as a result of the rule. Thus, the Board is not required to prepare an economic impact statement or a regulatory flexibility analysis pursuant to , Government Code. Takings Impact Assessment Mr. Helenberg has determined that there are no private real property interests affected by the rule. Thus, the board is not required to prepare a takings impact assessment pursuant to , Government Code. Request for Public Comments The Texas Board of Veterinary Medical Examiners invites comments on the proposed amendment from any interested persons, including any member of the public. A written statement should be mailed or delivered to Michelle Griffin, Interim General Counsel, Texas Board of Veterinary Medical Examiners, 333 Guadalupe, Ste , Austin, Texas , by facsimile (FAX) to (512) , or by to vet.board@tbvme.state.tx.us. Comments will be accepted for 30 days following publication in the Texas Register. Comments must be received within 30 days after publication of this proposal in order to be considered. Statutory Authority The rule is proposed under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and the authority of , Occupations Code, which states that the Board by rule shall set fees in amounts that are reasonable and necessary so that the fees, in the aggregate, cover the costs of administering Chapter 801, Occupations Code. No other statutes, articles, or codes are affected by the proposal Fee Schedule. The Texas Board of Veterinary Medical Examiners has established the following fixed fees as reasonable and necessary for the administration of its functions. Other variable fees exist, including but not limited to costs as described in of this title (relating to Costs of Administrative Hearings), and are not included in this schedule. Figure: 22 TAC [Figure: 22 TAC ] 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 October 23, TRD PROPOSED RULES November 3, TexReg 6119

64 Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) TITLE 31. NATURAL RESOURCES AND CONSERVATION PART 10. TEXAS WATER DEVELOPMENT BOARD CHAPTER 358. GUIDELINES STATE WATER PLANNING The Texas Water Development Board ("TWDB" or "board") proposes amendments to 358.4, relating to state water planning guidelines, and 358.6, relating to water loss audits. BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED AMENDMENT. The purpose of the amendments is to implement legislative changes from Senate Bill (SB) 1511, 85th Legislative Session, and House Bill (HB) 1573, 85th Legislative Session. The specific provisions being amended or added and the reasons for the amendments are addressed in more detail below. SECTION BY SECTION DISCUSSION OF PROPOSED AMENDMENTS. Subchapter A. State Water Plan Development. Section Guidelines. An amendment to 358.4(b)(7) is proposed to include the words "and projects" following "water management strategies" to clarify that water management strategy projects will be evaluated for implementation in the state water plan. A new 358.4(b)(9) is proposed to implement the requirement in SB 1511 that the state water plan include an assessment of the extent to which projects prioritized by the board for providing financial assistance from the State Water Implementation Fund for Texas were implemented and an analysis of any impediments to implementation in the decade in which the projects were needed. Subchapter B. Data Collection. Section Water Loss Audits. A new 358.6(b)(4) is proposed to implement the requirement in HB 1573 that water loss audits be "completed by a person trained to conduct water loss auditing," and the requirement that the board make water loss audit training available without charge on its website. An amendment to 358.6(c) is proposed to include the specification that a water loss audit is considered administratively complete if the audit was completed by a person who has been trained to conduct water loss auditing in addition to having all required responses provided. FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERN- MENTS Rebecca Trevino, Chief Financial Officer, has determined that there will be no significant fiscal implications for state or local governments as a result of the proposed rulemaking. For the first five years these amended rules are in effect, there are not expected to be additional costs to state or local governments resulting from their administration. These rules are not expected to result in reduction in costs to local governments. These rules are not expected to result in reductions in costs to state government. These rules are not expected to have any impact on state or local revenues. The rules do not require any increase in expenditures for state or local governments as a result of administering these rules. Because these amended rules will not impose a cost on regulated persons, the requirement included in , Texas Government Code, to repeal a rule does not apply. Furthermore, the requirement in does not apply because these rules are necessary to implement legislation. The board invites public comment regarding this fiscal note. Written comments on the fiscal note may be submitted to the contact person at the address listed under the Submission of Comments section of this preamble. PUBLIC BENEFITS AND COSTS Ms. Trevino has also determined that for each year of the first five years the proposed rulemaking is in effect there will be no impact to the public. LOCAL EMPLOYMENT IMPACT STATEMENT The board has determined that a local employment impact statement is not required because the proposed amendments do not adversely affect a local economy in a material way for the first five years that the proposed amendments are in effect because they will impose no new requirements on local economies. The board also has determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of enforcing this rulemaking. The board also has determined that there is no anticipated economic cost to persons who are required to comply with the rulemaking as proposed. Therefore, no regulatory flexibility analysis is necessary. These amended rules are designed to implement legislative changes, improve the planning process and increase flexibility in planning, reduce certain unessential reporting requirements, and standardize and clarify language. DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION The board reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code , and determined that the rulemaking is not subject to Texas Government Code, , because it does not meet the definition of a "major environmental rule" as defined in the Administrative Procedure Act. A "major environmental rule" is defined as a rule with the specific intent to protect the environment or reduce risks to human health from environmental exposure, a rule that may adversely affect in a material way the economy or a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The intent of the rulemaking is to implement legislative changes, improve processes, increase flexibility, and provide greater clarity regarding the TWDB's rules related to regional water planning and water loss audits. Even if the proposed rule amendments were a major environmental rule, Texas Government Code, still would not apply to this rulemaking because Texas Government Code, 42 TexReg 6120 November 3, 2017 Texas Register

65 only applies to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law. This rulemaking does not meet any of these four applicability criteria because it: 1) does not exceed federal law; 2) does not exceed an express requirement of state law; 3) does not exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; and 4) is not proposed solely under the general powers of the agency, but rather Texas Water Code and Therefore, this proposed rulemaking does not fall under any of the applicability criteria in Texas Government Code, The board invites public comment regarding this draft regulatory impact analysis determination. Written comments on the draft regulatory impact analysis determination may be submitted to the contact person at the address listed under the Submission of Comments section of this preamble. TAKINGS IMPACT ASSESSMENT The board evaluated these proposed rule amendments and performed an analysis of whether they constitute a taking under Texas Government Code, Chapter The specific purpose of these proposed amendments is to implement legislative changes regarding the TWDB's rules related to state water planning and water loss audits. The proposed rule amendments would substantially advance this stated purpose by adding language related to legislative changes related to state water planning and water loss audits. The board's analysis indicates that Texas Government Code, Chapter 2007 does not apply to this proposed rulemaking because this is an action that is reasonably taken to fulfill an obligation mandated by state law, which is exempt under Texas Government Code, (b)(4). The board is the agency that administers the regional water planning process in order to develop a state water plan. In addition, the board is the agency that administers water loss audits. Nevertheless, the board further evaluated this proposed rulemaking and performed an assessment of whether it constitutes a taking under Texas Government Code, Chapter Promulgation and enforcement of this proposed rulemaking would be neither a statutory nor a constitutional taking of private real property. Specifically, the subject proposed amendments do not affect a landowner's rights in private real property because this rulemaking does not burden nor restrict or limit the owner's right to property and reduce its value by 25% or more beyond that which would otherwise exist in the absence of the regulation. In other words, this rulemaking requires compliance with state law regarding the state water planning process and the water loss audit process. Therefore, the proposed rulemaking does not constitute a taking under Texas Government Code, Chapter SUBMISSION OF COMMENTS Written comments on the proposed rulemaking may be submitted by mail to Mr. Todd Chenoweth, Office of General Counsel, Texas Water Development Board, P.O. Box 13231, Austin, Texas ; by to rulescomments@twdb.texas.gov; or by fax to (512) Comments will be accepted until 5:00 p.m. of the 31st day following publication in the Texas Register. SUBCHAPTER A. STATE WATER PLAN DEVELOPMENT 31 TAC STATUTORY AUTHORITY This rulemaking is proposed under the authority of Texas Water Code and The proposed rulemaking affects Chapter 16 of the Texas Water Code Guidelines. (a) The executive administrator shall prepare, develop, and formulate the state water plan and the Board shall adopt a state water plan pursuant to the schedule in Texas Water Code The executive administrator shall identify the beginning of the 50-year planning period for the state and regional water plans. The executive administrator shall incorporate into the state water plan presented to the Board those regional water plans approved by the Board pursuant to Texas Water Code and Chapter 357 of this title (relating to Regional Water Planning). The Board shall, not less than 30 days before adoption or amendment of the state water plan, publish notice in the Texas Register of its intent to adopt a state water plan and shall mail notice to each regional water planning group. The Board shall hold a hearing, after which it may adopt a water plan or amendments thereto. (b) The state water plan shall include summaries for the state and from approved regional water plans, when available, which shall address, at a minimum, the following topics: (1) Basis for planning, including sections on planning history, Texas water statutes, rules, regulations, and Texas' water supply institutions; (2) Description of methods used for projecting future water demands which shall include methods for projecting future population and water demands for municipal and associated commercial and institutional uses, manufacturing, irrigation, steam electric power generation, mining, and livestock watering; (3) Description of methods to address water quality problems related to water supply, to ensure public health, safety and welfare, to further economic growth, to protect agricultural and natural resources, to determine water supply availability, and to address drought response planning; (4) Description of future conditions which shall, at a minimum, include: (A) Demands for water; (B) Supplies currently available; (C) Comparison of water demand and supply to identify surpluses or needs of water; (D) Social and economic impact of not meeting needs; (E) Recommended solutions to meet needs; (F) Needs for which no feasible water management strategy exists; and (G) descriptions in subparagraphs (A) - (F) of this paragraph shall be presented for each county and basin by the major providers of water for municipal uses and for the following water use categories: municipal and associated commercial and institutional PROPOSED RULES November 3, TexReg 6121

66 uses; manufacturing; irrigation; steam electric power generation; mining; and livestock watering; (5) Consideration of recommendations of river and stream segments of unique ecological value and sites of unique value for construction of reservoirs to the legislature for potential protection; (6) Regulatory, administrative, and legislative recommendations that the Board believes are needed and desirable to facilitate the orderly development, management, and conservation of water resources, to facilitate more voluntary water transfers, and the preparation for and response to drought conditions in order that sufficient water will be available at a reasonable cost to ensure public health, safety and welfare, further economic development, and protect the agricultural and natural resources of the entire state; (7) The progress in meeting future water needs, including an evaluation of implementation of all water management strategies and projects that were recommended in the previous state water plan and projects funded by the Board; [and] (8) Current and planned preparations for, and responses to, drought conditions in the state to be used in the development of the state's drought preparedness plan by the Drought Preparedness Council; and[.] (9) With respect to projects included in the preceding state water plan that were given a high priority by the board for purposes of providing financial assistance under Texas Water Code, Chapter 15, Subchapter G: (A) an assessment of the extent to which the projects were implemented in the decade in which they were needed; and (B) an analysis of any impediments to the implementation of any projects that were not implemented in the decade in which they were needed. 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 October 19, TRD Todd Chenoweth General Counsel Texas Water Development Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) SUBCHAPTER B. DATA COLLECTION 31 TAC STATUTORY AUTHORITY This rulemaking is proposed under the authority of Texas Water Code The proposed rulemaking affects Chapter 16 of the Texas Water Code Water Loss Audits. (a) Definitions. Unless otherwise indicated, in this section the following terms shall have the meanings assigned. (1) Allowed apparent loss--a unique number for allowable apparent loss calculated for each utility. (2) Annual real loss--a unique number calculated for each utility based on the utility's real loss on an annualized basis. (3) Apparent loss--unauthorized consumption, meter inaccuracy, billing adjustments, and waivers. (4) Average system operating pressure--system operating pressure in pounds per square inch calculated using a weighted average approach as identified in the American Water Works Association M36 Manual. (5) Category or Categories--A category of retail public utility as listed in Texas Water Code (c). (6) Executive Administrator--The executive administrator of the Board. (7) Mitigation--An action or actions taken by a retail public utility to reduce the amount of total water loss in a system. Mitigation may include a detailed water loss assessment, pipe or meter replacement, or addition or improvement of monitoring devices to detect water loss. (8) Real loss--loss from main breaks and leaks, storage tank overflows, customer service line breaks, and line leaks. (9) Retail public utility or utility--a retail public utility as defined by Texas Water Code (10) Service connection density--the number of a retail public utility's connections on a per mile basis. (11) Total water loss--the sum of a utility's real loss and apparent loss. (12) Unavoidable annual real loss--a unique number calculated for each utility based on the number of connections, miles of distribution lines, and operating pressure. (b) A retail public utility that provides potable water shall perform a water loss audit and file with the executive administrator a water loss audit computing the utility's system water loss during the preceding calendar year, unless a different 12-month period is allowed by the executive administrator. The water loss audit may be submitted electronically. (1) Audit required annually. The utility must file the water loss audit with the executive administrator annually by May 1st if the utility: (A) has more than 3,300 connections; or (B) is receiving financial assistance from the board, regardless of the number of connections. A retail public utility is receiving financial assistance from the board if it has an outstanding loan, loan forgiveness agreement, or grant agreement from the board. (2) Audit required every five years. The utility must file the water loss audit with the executive administrator by May 1, 2016, and every five years thereafter by May 1st if the utility has 3,300 or fewer connections and is not receiving financial assistance from the board. (3) The water loss audit must be performed in accordance with methodologies developed by the executive administrator based on the population served by the utility and taking into consideration the financial feasibility of performing the water loss audit, population density in the service area, the retail public utility's source of water supply, the mean income of the service population, and any other factors determined by the executive administrator. The executive administrator 42 TexReg 6122 November 3, 2017 Texas Register

67 will provide the necessary forms and methodologies to the retail public utility. (4) Effective January 1, 2019, the water loss audit must be performed by a person who has completed water loss audit training developed by the executive administrator. The executive administrator will make such training available without charge on the agency website, and may also provide such training in person or by video. (c) The executive administrator shall determine if the water loss audit is administratively complete. A water loss audit is administratively complete if all required responses are provided and the audit is completed by a person who has been trained to conduct water loss auditing as described in paragraph (4) of subsection (b). In the event the executive administrator determines that a retail public utility's water loss audit is incomplete, the executive administrator shall notify the utility. (d) A retail public utility that provides potable water that fails to submit a water loss audit or that fails to correct a water loss audit that is not administratively complete within the timeframe provided by the executive administrator is ineligible for financial assistance for water supply projects under Texas Water Code, Chapter 15, Subchapters C, D, E, F, G, H, J, O, Q, and R; Chapter 16, Subchapters E and F; and Chapter 17, Subchapters D, I, K, and L. The retail public utility will remain ineligible for financial assistance until a complete water loss audit has been filed with and accepted by the executive administrator. (e) The following thresholds shall apply to the indicated categories of retail public utility: (1) For a retail public utility with a population of more than 10,000: (A) Apparent loss expressed as gallons per connection per day must be less than the utility's allowed apparent loss. (B) Real loss expressed as gallons per connection per day must be less than three times the utility's unavoidable annual real loss. (2) For a retail public utility with a population of 10,000 or fewer and a service connection density more than or equal to 32 connections per mile: (A) Apparent loss expressed as gallons per connection per day must be less than the utility's allowed apparent loss. (B) Real loss expressed as gallons per connection per day must be less than 50 gallons per connection per day. (3) For a retail public utility with a population of 10,000 or fewer and a service connection density less than 32 connections per mile: (A) Apparent loss expressed as gallons per connection per day must be less than the utility's allowed apparent loss. (B) Real loss expressed as gallons per mile per day must be less than 1,600 gallons per mile per day. (4) For a utility that has a volume of wholesale water sales that flow through the retail water distribution system: (A) Apparent loss expressed as gallons per connection per day, determined using a modified calculation that includes the wholesale volume, must be less than the utility's allowed apparent loss. (B) Real loss, expressed as gallons per connection per day and including a wholesale factor that takes into account the wholesale water volume, must be less than three times the utility's unavoidable annual real loss. (f) If a retail public utility's total water loss meets or exceeds the threshold for that utility, the retail public utility must use a portion of any financial assistance received from the board for a water supply project to mitigate the utility's water loss. Mitigation will be in a manner determined by the retail public utility and the executive administrator in conjunction with the project proposed by the utility and funded by the board. On the request of a retail public utility, the board may waive the requirements of this subsection if the board finds that the utility is satisfactorily mitigating the utility's system water loss. The request for waiver should be addressed to the executive administrator and include information about the utility's current or planned activities to mitigate their water loss and their source of funding for that mitigation. 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 October 19, TRD Todd Chenoweth General Counsel Texas Water Development Board Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) PART 21. TEXAS LOW-LEVEL RADIOACTIVE WASTE DISPOSAL COMPACT COMMISSION CHAPTER 675. OPERATIONAL RULES SUBCHAPTER B. EXPORTATION AND IMPORTATION OF WASTE 31 TAC The Texas Low-Level Radioactive Waste Disposal Compact Commission (TLLRWDCC or Commission) proposes new , relating to Requirement to Report on the Importation of Certain Low-Level Radioactive Waste for Management or Disposal that is not Required to be Disposed of in the Compact Facility. In order to fulfill its responsibilities with respect to 42 United States Code, 2021(b) (j) and 3.04(9) and 3.05(6) of the Compact as set out in Texas Health and Safety Code (THSC), , the Commission has determined that it is in the public interest that it gather information regarding low-level radioactive waste that enters the host state irrespective of whether it requires an agreement for importation for disposal at the Compact Facility. Proposed new seeks to facilitate the gathering of that information by the way of reporting requirements after the entry of the low-level waste into the state rather than requiring approval for the importation of certain categories of low-level radioactive waste into the host state. Fiscal Note Leigh Ing, the Commission's Executive Director, has determined that, for the first five-year period the proposed rule is in effect, no fiscal implications are anticipated for the Compact Commission or for units of state or local government as a result of the administration or enforcement of the proposed rule. PROPOSED RULES November 3, TexReg 6123

68 Public Benefits and Costs Ms. Ing has also determined that, for each year of the first five years the proposed rule would be in effect if adopted, the public benefit anticipated from the changes seen in the proposed rule will be increased knowledge available to the Commission and the public with respect to the presence of low-level radioactive waste in the host state. By requiring a quarterly report of certain information about low-level waste that enters the host state for a purpose other than disposal at the compact facility, the proposed Commission rule benefits the host state and the public by allowing more complete tracking of low-level radioactive waste that enters the host state. It is anticipated that businesses and individuals will have no significant additional economic costs as a result of their compliance with the proposed rule. The new reporting requirements require the reporting of minimal information that is already maintained by the entities required to report under proposed new Economic Impact Statement and Regulatory Flexibility Analysis for Small Businesses, Microbusinesses, 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. Local Employment Impact Statement The Commission has determined that a local employment impact statement is not required because the proposed rule will not adversely affect a local economy for the first five years that the proposed rule will be in effect if adopted. Regulatory Analysis The Commission has determined that the proposed rule is not a "major environmental rule" as defined by Texas Government Code, Small Businesses and Microbusinesses The Commission has determined that the proposed rule will not have an adverse economic impact on either small businesses or microbusinesses. Takings The Commission has concluded that the proposed rule does not restrict or limit an owner's right to his or her real property that would otherwise exist in the absence of this action. Submittal of Comments Written comments may be submitted to Leigh Ing, Executive Director, 505 West 15th Street, Austin, Texas 78701, or, by electronic mail to comments@tllrwdcc.org. All comments should reference "Rules." The Comment period closes on December 8, Copies of the proposed rulemaking can be obtained from the Commission's website at For further information, please contact Leigh Ing, Executive Director, (512) Statutory Authority The rule is proposed under the authority granted in 3.05(4), (6), and (7) of the Compact set out at THSC, and in THSC, The proposed rule implements 3.04(9) and 3.05(6) of the Compact as set out at THSC Requirement to Report on the Importation of Certain Low- Level Radioactive Waste for Management or Disposal that is not Required to be Disposed of in the Compact Facility. (a) This section is applicable only in the host state. (b) This section is designed to gather information on the importation into the host state for disposal or management of certain lowlevel waste that: (1) is required when shipped to be listed on Nuclear Regulatory Commission (NRC) Forms 540 or 541 (Uniform Low-Level Waste Manifest Shipping Forms); (2) is included within the definition of low-level radioactive waste found in 30 TAC 336.2(89) (relating to Definitions) as the definition is in effect on the date this section becomes effective or as 30 TAC 336.2(89) may be amended or renumbered in the future, but is not intended for disposal in the Compact Waste Facility; (3) is not low-level radioactive waste described by 42 United States Code, 2021c(b)(1); and (4) for the purposes of this section, the material described in this subsection will be referred to as Non-Compact-Facility Low- Level Radioactive Waste ("NCFW"). (c) Any entity in the host state that imports NCFW must enter into an agreement with the Commission that contains a requirement that it will report to the Commission on a quarterly basis the following information with respect to each shipment of NCFW that it has received in the previous quarter: (1) the name of the generator; (2) the name of the state and the name of the low-level waste compact (if any) where the waste originated; (3) the activity of the waste in curies; (4) the volume or weight of the waste; the date of receipt; whether the waste is being stored, processed, or otherwise managed; (5) location of management; and (6) the date of and location of disposal of that waste. (d) Quarterly reports must be submitted electronically on forms provided by the Commission and must be submitted before the 31st day after the end of each quarter of the Commission's fiscal year. (e) An entity that imports low-level radioactive waste into the host state as described in subsection (c) of this section shall have entered into an agreement with the Commission within 90 days after the effective date of this section or within such time extensions thereafter as the Commission may allow. To the maximum extent possible, each agreement entered into under this section will contain provisions identical to those in each other agreement entered into under this section. (f) An entity that imports waste into the host state as described in subsection (c) of this section shall submit an application for entry into an agreement with the Commission electronically or on paper on a form provided by the Commission. (g) Failure on the part of an entity that imports waste into the host state as described in subsection (c) of this section to comply with any provision of this section or the agreement entered into pursuant to subsection (d) of this section may result in the Commission reporting such failures to the host state agency that has licensed, permitted, or otherwise authorized the operation of such entities. (h) The Commission may revoke or amend an agreement on its own motion or in response to an application by the agreement holder. When the Commission amends an NCFW agreement on its on motion, 42 TexReg 6124 November 3, 2017 Texas Register

69 it may provide a reasonable time to allow the agreement holder to make the changes necessary to comply with any additional requirements imposed by the Commission. No importation of NCFW shall be allowed under any amended agreement for the importation of NCFW until: (1) the amendment to the NCFW agreement has been executed by both the Commission and the agreement holder; and (2) the agreement holder has made any changes necessary to comply with additional requirements. 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 October 20, TRD Leigh Ing Executive Director Texas Low-Level Radioactive Waste Disposal Compact Commission Earliest possible date of adoption: December 3, 2017 For further information, please call: (512) TITLE 37. PUBLIC SAFETY AND CORREC- TIONS PART 6. TEXAS DEPARTMENT OF CRIMINAL JUSTICE CHAPTER 151. GENERAL PROVISIONS 37 TAC The Texas Board of Criminal Justice proposes amendments to 151.3, concerning operating procedures for the Texas Board of Criminal Justice. The amendments are proposed in conjunction with a proposed rule review of as published in the Review of Agency Rules section of thetexas Register. The proposed amendments conform the rule to legislation from the 85th legislative session, HB 3047, regarding Open Meetings requirements when holding a video conference meeting. Jerry McGinty, Chief Financial Officer for the Texas Department of Criminal Justice, has determined that for each year of the first five years the rule will be in effect, enforcing or administering the rule will not have foreseeable implications related to costs or revenues for state or local government. Mr. McGinty has also determined that for each year of the first five year period, there will not be an economic impact on persons required to comply with the rule. There will not be an adverse economic impact on small or micro businesses or on rural communities. Therefore, no regulatory flexibility analysis is required. The anticipated public benefit, as a result of enforcing the rule, will be to conform the rule to recent legislative changes. No cost will be imposed on regulated persons. The rule will have no impact on government growth; no creation or elimination of employee positions; no increase or decrease in fees paid to the TDCJ; no new regulation and no effect on an existing regulation; no increase or decrease in the number of individuals subject to the rule; and no effect upon the economy. Comments should be directed to Sharon Felfe Howell, General Counsel, Texas Department of Criminal Justice, P.O. Box 4004, Huntsville, Texas 77342, Sharon.Howell@tdcj.texas.gov. Written comments from the general public must be received within 30 days of the publication of this rule in the Texas Register. The amendments are proposed under Texas Government Code , , Cross Reference to Statutes: None Texas Board of Criminal Justice Operating Procedures. (a) General. This section establishes operating procedures for the Texas Board of Criminal Justice (TBCJ) to conduct business. (b) Organization. (1) The TBCJ is a nine member body appointed by the governor to oversee the Texas Department of Criminal Justice (TDCJ). The TBCJ chairman is designated by and serves at the request of the governor pursuant to Texas Government Code (2) The TBCJ shall elect a vice-chairman and a secretary each odd-numbered year. The vice-chairman shall preside over meetings in the chairman s absence, and either the chairman or the secretary shall execute any necessary documents. (3) The chairman, on behalf of the TBCJ, is empowered to appoint members of the TBCJ to be members or chairs of standing or limited-purpose committees, or to serve as liaisons to the TBCJ on particular subject areas or divisions within the TDCJ s jurisdiction, or both. The purpose of a committee, if appointed, is to have certain members become particularly familiar with various issues and to facilitate discussion and recommend potential strategies as appropriate. (4) The TBCJ chairman may appoint non-members to sit on a committee in an advisory capacity; however, advisory members are non-voting members and cannot be reimbursed for expenses incurred in this capacity. (c) Meetings. (1) The TBCJ shall attempt to hold a regular meeting at least every other month of the year, but shall meet at least once each quarter of the calendar year pursuant to Texas Government Code Special called meetings can be held at the discretion of the TBCJ chairman. (2) TBCJ meetings shall be held in Austin or Huntsville, Texas. If the TBCJ uses video conference technology to convene a meeting, at least one conference site must be located in Huntsville or Austin. To convene a video conference meeting, a quorum of the TBCJ must be present at one of the video conference sites. The other members may convene using the technology from remote sites. (A) During a TBCJ meeting convened as a video conference meeting, any member shall be considered absent from any portion of the meeting during which audio or video communication with the member is lost or disconnected. (B) The TBCJ may continue the meeting only if a quorum remains present at the meeting location. (3) The agenda and date for the TBCJ meetings shall be set by the TBCJ chairman in consultation with the TDCJ executive director. (4) The agenda for committee meetings shall be set by the TBCJ chairman in consultation with the committee s chairman and the TDCJ executive director. If the TBCJ committee uses video conference technology to convene a meeting, at least one conference site must be located in Huntsville or Austin. To convene a video conference meet- PROPOSED RULES November 3, TexReg 6125

70 ing, a quorum of the committee must be present at one of the video conference sites. The other member(s) may convene using the technology from remote sites. (5) A majority of the TBCJ, or of a committee of the TBCJ, constitutes a quorum for the convening of and transaction of business at any meeting. A quorum of a committee with two members consists of both members. member. (6) A quorum of a committee does not include its advisory (7) Meetings of the TBCJ and its committees shall be conducted according to standard parliamentary procedures. (8) TBCJ meetings are governed by the Texas Open Meetings Act, Texas Government Code (9) The TDCJ executive director shall ensure members are provided the materials necessary to conduct the business of the TBCJ and its committees well in advance of the meetings. (10) The TDCJ executive director shall ensure the minutes of each meeting are prepared, retained, and filed with the Legislative Reference Library, and made available to the public. The minutes shall state the subject matter of each deliberation and shall indicate each vote, order, decision, or other action taken by the TBCJ. (11) Requests by the public to make presentations or comments to the TBCJ are governed by 37 Texas Administrative Code 151.4, pursuant to Texas Government Code and (12) The TBCJ shall approve meeting minutes for any committees deleted, renamed, or for which their limited-purpose has concluded. (13) Prior to each regularly scheduled meeting, the TBCJ shall offer the opportunity for: (A) The presiding officer of the Board of Pardons and Paroles or a designee of the presiding officer to present any item relating to the operation of the parole system and other matters of mutual interest determined by the presiding officer to require the TBCJ's consideration, pursuant to Texas Government Code ; (B) The chairman of the Judicial Advisory Council (JAC) to the Community Justice Assistance Division and the TBCJ to present any item relating to the operation of the community justice system and other matters of mutual interest determined by the JAC chairman to require the TBCJ's consideration, pursuant to Texas Government Code ; (C) The TDCJ executive director to present any item relating to the TDCJ as determined by the executive director or the TBCJ chairman; (D) The TBCJ chairman to present any item relating to the TBCJ or the TDCJ as determined by the TBCJ chairman in consultation with the TDCJ executive director; (E) The chairman or designee of the Correctional Managed Health Care Committee (CMHCC) to present on the CMHCC's policy decisions, the financial status of the correctional health care system, and corrective actions taken by or required of the TDCJ or the health care providers; and (F) The chairman of the Advisory Committee on Offenders with Medical or Mental Impairments (ACOOMMI) or a designee of the ACOOMMI chairman to present any item related to offenders with medical or mental impairments. 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 October 19, TRD Sharon Howell General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: December 3, 2017 For further information, please call: (936) TexReg 6126 November 3, 2017 Texas Register

71 TITLE 16. ECONOMIC REGULATION PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION CHAPTER 45. MARKETING PRACTICES SUBCHAPTER D. ADVERTISING AND PROMOTION--ALL BEVERAGES 16 TAC Proposed amended , published in the April 14, 2017, issue of the Texas Register (42 TexReg 1992), is automatically withdrawn. The agency failed to adopt the proposal within six months of publication. (See Government Code, , and 1 TAC 91.38(d).) Published by the Office of the Secretary of State on October 17, TRD TITLE 19 EDUCATION PART 7. STATE BOARD FOR EDUCATOR CERTIFICATION CHAPTER 232. GENERAL CERTIFICATION PROVISIONS SUBCHAPTER A. CERTIFICATE RENEWAL AND CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS 19 TAC The Texas Higher Education Coordinating Board withdraws the proposed amended which appeared in the September 1, 2017, issue of the Texas Register (42 TexReg 4425). Filed with the Office of the Secretary of State on October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Effective date: October 23, 2017 For further information, please call: (512) WITHDRAWN RULES November 3, TexReg 6127

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73 TITLE 1. ADMINISTRATION PART 4. OFFICE OF THE SECRETARY OF STATE CHAPTER 81. ELECTIONS SUBCHAPTER D. VOTING SYSTEM CERTIFICATION 1 TAC The Office of the Secretary of State (hereinafter referred to as "Office") adopts amendments to 1 TAC 81.62, which relate to the requirement of a real-time audit log to be included with a central accumulator, and eliminate the requirement that a continuous feed printer dedicated to a real-time audit log be included with a central accumulator. The continuous feed printer requirement is no longer necessary as federal voting system guidelines have been revised to provide additional content and security requirements for internal audit logs. Currently, all central accumulators certified in Texas meet these federal standards. In addition, in 2009, were added to the Texas Election Code, which provide for pre-election security procedures, secure transportation of voting system equipment, secure access to voting equipment, and a prohibition on voting system equipment being connected to the internet. The improvements to the internal audit logs and the additional security provisions eliminate the requirement for the continuous feed printer. The Office adopts with a certain non-substantive change to the proposed text as published in the July 28, 2017, issue of the Texas Register, (42 TexReg 3716). The change from the proposal is to maintain the status quo as to the definition of "significant election events" in existing 81.62(b), instead of effecting the change proposed by the petitioners and then proposed by the Office, which would have removed this definition from the rule, as it is not an all-inclusive definition. On June 27, 2017 the Office received a petition for the adoption of administrative rules. In accordance with Section , the Secretary of State reviewed the petition and initiated rulemaking proceedings that contained the requested changes to Rule of the Texas Administrative Code. The petitioners requested that 81.62(b) which defined "significant election events", be removed from this rule. On July 28, 2017, the Office of the Secretary of State proposed these changes in accordance with the petitioner s request. During the public comment period, the Secretary of State received various written comments requesting that the definition of "significant election events" continue to be part of 81.62, from various individuals, including at least one individual who had signed the petition for rulemaking. Certain individuals included in their signature lines on the comments various organizations, although the individuals did not appear to be representing or acting on behalf of these organizations. The organizations in the signature lines included Texans Uniting for Reform and Freedom (TURF), Mike Sweeney for Congress Campaign, Frisco Tea Party, and Grassroots America- We the People PAC. In addition, the Office received over the requisite amount of requests for a public hearing on the proposed amendments to the rule pursuant to Section (b) of the Texas Government Code. Accordingly, on September 18, 2017, the Office held a public hearing, during which various individuals also suggested that the definition of "significant election events" remain in the amendments to the rule as adopted. Commenters at the hearing also made a number of comments unrelated to the proposed amendments to 81.62, which will not be addressed herein. While the removal of existing subsection (b), relating to "significant election events", in the proposed amendments to 81.62, was done at the request of the Petitioners, the Office is not opposed to maintaining existing subsection (b) in the amendments to the rule as adopted, notwithstanding that it may be duplicative of other existing definitions. Leaving existing subsection (b) in does not change the overall meaning or intention of the amendments to 81.62, and simply maintains the status quo as to the descriptive, but not completely thorough, specific list of "significant election events" the Texas Administrative Code contains. Accordingly, the Office adopts the suggestion that the existing (b) in remain in the amendments as adopted, and the other amended sections are to be re-lettered accordingly. In addition, the Office also received a comment from the Harris County Clerk s office ("Harris County") relating to the proposed amendments to 81.62(g). The proposed amendments to 81.62(g) provide that "a poll watcher may request a printed copy of an audit log produced by a central count accumulator before any votes are tabulated, after early voting results are tabulated and immediately following the completion of the vote tabulation." Harris County agrees that a "printed copy of an audit log produced by a central count accumulator" should be made available to requestors, but contends that "it is difficult to generate this document during the vote tabulation process." It contends that it "would like to have the latitude to provide an electronic or printed version of the audit log within 72 hours of Election Day to any requestor, not just the poll watchers." It also notes that it "plans to continue using the continuous feed printer", and "[a]ny poll watcher may view this document at any time on Election Night." Finally, it notes that "[p]arty representatives, presiding and alternate judges, poll watchers, not to mention the central count manager and technicians, are all determined to maintain the integrity of the election." It proposes the following change to 81.62(g): "[i]f a continuous feed printer is not being used to generate the audit log, anyone may request an electronic or printed copy of an audit log produced by a central accumulator and receive the copy within 72 hours of Election Day." ADOPTED RULES November 3, TexReg 6129

74 The Office declines to adopt this change. The proposed amendments are not limited in application to Harris County, and, accordingly, the fact that Harris County will "plan to continue using the continuous feed printer," might not apply to other counties to which the amendments, as adopted, would apply. Section (a) of the Texas Election Code provides, in relevant part, that "[a] watcher serving at a central counting station may be present at any time the station is open for the purpose of processing or preparing to process election results and until the election officers complete their duties at the station " In addition, Tex. Elec. Code provides, with exceptions not applicable here, that "(a) a watcher is entitled to observe any activity conducted at the location at which the watcher is serving ", and "(c) [a] watcher is entitled to inspect the returns and other records prepared by the election officers at the location at which the watcher is serving." Harris County s proposed change would not permit the poll watchers to review a printed audit log until possibly 72 hours after Election Day. Moreover, there is no way to give a poll watcher access to the voting machine itself to view the internal audit log (nor would such access be practical), as such access would violate security procedures designed to prohibit tampering with the physical equipment, and as Harris County recognizes in its comment, only the "Central Count team" can "generate copies of the audit log ". See, e.g., Tex. Elec. Code ("[t]he general custodian of election records shall secure access control keys or passwords to voting system equipment"). Finally, in Harris County, poll watchers may continue to have access to what is printed from the continuous feed printers Harris County intends to continue using (which notably amended does not forbid, but also does not require), in order to permit them to act in accordance with Sections and of the Texas Election Code, and observe the audit logs generated by the voting system. Accordingly, it appears that fewer poll watchers will request "a printed copy of an audit log " under the amendments to in Harris County, because they will already have access to the continuous feed printer logs. Conversely, in counties that do not intend to continue using continuous feed printers, the amendments provide poll watchers with an opportunity to review printed audit logs at various specifically identified points during the processing of election results, and thus "observe any activity" at the central counting station and "inspect the returns and other records prepared by the election officers at the location at which the watcher is serving", in accordance with Sections and of the Texas Election Code. The Office also received various comments from Hart Intercivic, Inc. ("Hart"), relating to the proposed rules. First, Hart recommended that the reference to "each precinct" in the proposed amendments to 81.62(h) be modified to read "all precincts", such that the full text of amended 81.62(h) would read as follows: "After the automatic counting of ballots for all precincts is completed, the manager of a central counting station shall print a copy of the entire audit log to retain with other election records." Hart contends that the change is necessary because while "[i]n practice, the audit log will be printed after all precincts are completed anyway", as "[e]ach precinct is not completed until that time (including provisionals, etc."), "[t]o print an entire audit log after each precinct is completed is open to broad interpretation, some of which could put an election jurisdiction into a situation where printing could take hours and would be a redundant printing of records; a waste of resources, ", and "searching the audit log for abnormalities would be more difficult if the entire audit log were printed after each individual precinct is completed (simply due to redundancy and the amount of paper that would need to be sorted through.)" The Office declines to adopt this change, as it does not believe it is necessary. The Office intended "each" to in fact mean "every" or "all", particularly given the context of the remainder of the phrase, as there is a reference to "entire audit log." It is not the Office s intention that the audit log be printed after individual precincts have completed counting, unless that is at the same time that every single precinct has completed counting. The remainder of Hart s comments were general comments in support of the amendments to the rule as proposed. STATUTORY AUTHORITY The amendments are adopted pursuant to of the Texas Election Code, which provides the Office of the Secretary of State with the authority to obtain and maintain uniformity in the application, interpretation, and operation of provisions under the Texas Election Code and other election laws. The amendments are also adopted pursuant to and of the Texas Election Code, which provide the Office of the Secretary of State the authority to prescribe additional procedures related to certification and operation of voting systems Audit Logs for an Election Management System's Central Accumulator. (a) For any Election Management System's central accumulator to be certified for use in Texas elections, the central accumulator shall include a real-time audit log. All significant election events and their date and time stamps shall be maintained in the audit log. (b) The definition of "significant election events" in subsection (a) of this rule includes but is not limited to: (1) error and/or warning messages and operator response to those messages; (2) number of ballots read for a given precinct; (3) completion of reading ballots for a given precinct; (4) identity of the input ports used for modem transfers from precincts; (5) users logging in and out from election system; (6) precincts being zeroed; (7) reports being generated; (8) diagnostics of any type being run; and (9) change to printer status. (c) The audit logs for an election shall be retained by the custodian of election records for the appropriate preservation period. (d) The "Election Management System" as used in this rule is defined as a system that consists of any or all of the following elements: functions and databases within a voting system that define, develop and maintain election databases, perform election definition and setup functions, format ballots, count votes, consolidate and report results, and maintain audit trails. (e) The "central accumulator" as used in this rule is the part of an Election Management System that tabulates and/or consolidates the vote totals for multiple precincts/devices. (f) An Election Management System that uses a central accumulator may not be used in an election unless the central accumulator creates in real time an audit log that includes a date and time stamp of each significant election event. 42 TexReg 6130 November 3, 2017 Texas Register

75 (g) An audit log produced by a central accumulator is considered part of the election records. (h) A poll watcher may request a printed copy of an audit log produced by a central accumulator: (3) immediately following the completion of the vote tabulation. (1) before any votes are tabulated; (2) after early voting results are tabulated; and (i) After the automatic counting of ballots for each precinct is completed, the manager of a central counting station shall print a copy of the entire audit log to retain with other election records. 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 October 18, TRD Lindsey Aston General Counsel Office of the Secretary of State Effective date: November 7, 2017 Proposal publication date: July 28, 2017 For further information, please call: (512) TITLE 7. BANKING AND SECURITIES PART 1. FINANCE COMMISSION OF TEXAS CHAPTER 4. CREDIT CARD SURCHARGE APPEAL PROCEDURES SUBCHAPTER A. CONTESTED CASE PROCEDURE FOR VIOLATIONS ON OR BEFORE AUGUST 31, TAC The Finance Commission of Texas (the commission) adopts the repeal of 7 TAC, Part 1, Chapter 4, Credit Card Surcharge Appeal Procedures. Chapter 4 consists of Subchapter A, containing , relating to contested case procedure for credit card surcharge violations occurring on or before August 31, The commission adopts the repeal without changes to the proposed text as published in the September 1, 2017, issue of the Texas Register (42 TexReg 4379). The commission received no written comments on the proposal. The purpose of the adopted repeal is to delete obsolete rules contained in 7 TAC, Chapter 4. The commission has determined that Chapter 4 is no longer necessary, as the enforcement of the credit card surcharge prohibition has been transferred to the Office of the Attorney General (OAG). Through August 31, 2017, Texas Finance Code, (c) stated that the commission had exclusive jurisdiction to enforce and adopt rules relating to As enacted by the 85th Texas Legislature, Senate Bill (SB) 560 amended the credit card surcharge prohibition in by transferring enforcement authority from the Office of Consumer Credit Commissioner (OCCC) to the OAG. Effective September 1, 2017, the bill relocates these provisions to 604A.0021 of the Texas Business and Commerce Code, which will ensure consistent enforcement with the existing debit card surcharge prohibition contained in 604A.002 also enforced by the OAG. Additionally, there are no pending contested cases involving credit card surcharge violations on or before August 31, 2013, which is the time period governed by 7 TAC, Chapter 4. The repeal is adopted under Texas Finance Code, , which authorizes the commission to adopt rules to enforce Chapter 14 and Title 4 of the Texas Finance Code. Effective September 1, 2017, SB 560 amended the credit card surcharge prohibition in by transferring enforcement authority from the OCCC to the OAG and relocating the prohibition to the Texas Business and Commerce Code. The statutory provisions affected by the adopted repeal are contained in Texas Business and Commerce Code, 604A.0021 (formerly Texas Finance Code, ). 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 October 20, TRD Leslie L. Pettijohn Commissioner Finance Commission of Texas Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) PART 5. OFFICE OF CONSUMER CREDIT COMMISSIONER CHAPTER 89. PROPERTY TAX LENDERS The Finance Commission of Texas (commission) adopts amendments to , , , , , , , , , , , , , , , , and ; adopts new and ; and adopts the repeal of , , and , in 7 TAC, Chapter 89, concerning Property Tax Lenders. The commission adopts the amendments to , , , , , , , , , , , , , and ; adopts new and ; and adopts the repeal of , , and without changes to the proposed text as published in the September 1, 2017, issue of the Texas Register (42 TexReg 4379). The commission adopts the amendments to , , and with changes to the proposed text as published in the September 1, 2017, issue of the Texas Register (42 TexReg 4379). The changes are a result of the comments received as ADOPTED RULES November 3, TexReg 6131

76 outlined in the following paragraphs, as well as changes to make these provisions clearer. The commission received three written comments on the proposal from the following parties: Kohm and Associates, PC, Sombrero Capital, and the Texas Property Tax Lienholders Association (TPTLA). Additionally, an oral comment was received from the TPTLA. Two of the written comments express general support for the rule amendments as proposed, but made some recommendations regarding the amended pre-closing disclosure requirements in and The other comments also made recommendations regarding the amended disclosure requirements. Some of the comments included recommendations on the following issues that were not addressed in the proposal: (1) the prohibition on a property tax loan for property financed by a below market rate loan under Texas Tax Code, 32.06(a-8)(1); (2) the limitation on fees for filing a release under current 7 TAC ; and (3) waiver of the right of rescission under Texas Tax Code, 32.06(d-1). The commission's responses to the official comments received are included after the purpose discussions following each respective rule provision receiving comments. The comments on below market rate loans, lien release fees, and the right of rescission are discussed after the purpose discussions for the rules that are part of this action. In general, the purpose of the adoption regarding 7 TAC, Chapter 89 is to implement changes resulting from the commission's review of the chapter under Texas Government Code, The notice of intention to review 7 TAC Chapter 89 was published in the Texas Register on June 16, 2017 (42 TexReg 3167). The commission received four comments in response to that notice. The comments on the notice of intention to review were submitted by the Hunter-Kelsey of Texas, LLC, Propel Financial Services, Sombrero Capital, and the Texas Property Tax Lienholders Association. The responses to the official comments on the rule review notice were included as part of the adopted rule review, as published in the Texas Register on September 1, 2017 (42 TexReg 4481). The adopted rule changes generally relate to the following issues: disclosures provided by property tax lenders (including an updated version of the required pre-closing disclosure), licensing processes, fees charged by property tax lenders, and technical corrections. Additionally, certain sections have been repealed in order to replace them with new, reorganized rules. The agency circulated an early draft of proposed changes to interested stakeholders. The agency then held a stakeholder meeting where attendees provided oral precomments. In addition, the agency received seven informal written precomments. Certain concepts recommended by the precommenters were incorporated into the proposal, and the agency appreciates the thoughtful input provided by stakeholders. The individual purposes of the amendments, new rules, and repeals are provided in the following paragraphs. Adopted amendments to add definitions of the terms "residential property tax loan" and "commercial property tax loan." The definition of "residential property tax loan" states that the term refers to a property tax loan that includes a lien on residential property owned and used for personal, family, or household purposes. Property designated as "Category A (Real Property: Single-Family Residential)" is presumed to be residential property unless the property tax lender obtains an affidavit from the property owner stating that the property is owned and used for a business or investment purpose, not for personal, family, or household purposes. The definition of "commercial property tax loan" states that the term refers to a property tax loan that is not a residential property tax loan. The new definitions of "residential property tax loan" and "commercial property tax loan" are intended to provide consistent terminology in provisions related to disclosures and closing costs. The term "residential property tax loan" is also used to specify the scope of the limitation on closing costs, as discussed later in this adoption in the description of amendments to (a). Adopted amendments to specify records that property tax lenders are required to maintain. These amendments ensure that the Office of Consumer Credit Commissioner (OCCC) can review a licensee's records to verify compliance with applicable law. First, an amendment to (3)(A)(viii) specifies that a property tax lender must maintain any affidavits signed by the borrower applicable to the property tax loan, in addition to signed agreements and disclosures required by the current rule. This would include an affidavit regarding the use of commercial property, as described in the definition of "residential property tax loan" in (10). Second, an amendment to (3)(B) specifies that the current requirement regarding the right of rescission refers to maintaining the notice of the right of rescission, as required by Regulation Z, 12 C.F.R Third, an adopted amendment to (3)(H) provides that if a property tax loan is satisfied through a foreclosure, the property tax lender must maintain the foreclosure deed, instead of the release of lien required by the current rule. This amendment is in response to an official comment on the notice of intention to review, which requests clarification on this issue. In the case of a foreclosure, there might not be a release of lien. Fourth, an adopted amendment to (3)(I)(ii) specifies that a property tax lender must maintain receipts and invoices for attorney's fees charged under Texas Finance Code, (a)(6), which authorizes a reasonable post-closing fee for title examination and preparation of an abstract of title by an attorney, a title company, or a property search company authorized to do business in this state. An adopted amendment to (h) explains that the annual percentage rate (APR) disclosed in a property tax loan advertisement must be calculated in accordance with the adopted amendment to (2). This amendment ensures that the method of calculating APR is consistent throughout the rules governing property tax lenders, as discussed later in this adoption in the description of amendments to It will also ensure that potential borrowers receive information that will enable them to make an informed borrowing decision. An adopted amendment to adds a definition of "parent entity," specifying that this term refers to a direct owner of a licensee or applicant. This definition clarifies the provisions on mergers and license transfers in and , discussed later in this adoption, and is consistent with other OCCC licensing rules. Also in , an amendment to adopted (3)(A) (former (2)(A)) amends the definition of "principal party" for sole proprietorships. The amendment removes the statement that proprietors include spouses with a community property interest. In addition, an amendment to (1)(A)(iv)(I) removes the requirement to disclose community property interests and 42 TexReg 6132 November 3, 2017 Texas Register

77 documentation regarding separate property status, and replaces it with a requirement to disclose the names of the spouses of principal parties if requested. The agency currently spends considerable time requesting information from license applicants to determine the status of spouses' property interests, and explaining these concepts to applicants. These amendments will help streamline the licensing process and reduce regulatory burden. The amendments will also make the application process simpler and more straightforward for applicants. In specific cases where the spouse is a principal party, the OCCC would be able to request additional information about the spouse under current (1)(C)(i)-(ii). Section has been repealed and replaced with a new rule, with the intent to clarify the requirements when a licensee transfers ownership. Previously, described what constitutes a transfer of ownership requiring the filing of a transfer application. The adopted new rule largely maintains the requirements under the former rule, but it provides two different paths the transferee can take for a transfer of ownership: either an application to transfer the license, or a new license application on transfer of ownership. The amendments outline what the application has to include, the timing requirements, and which parties are responsible at different points in the transfer process. Subsection (a) describes the purpose of the new section. Subsection (b) defines terms used throughout the section. In particular, subsection (b)(3) defines the phrase "transfer of ownership," listing different types of changes in acquisition or control of the licensed entity. Subsection (c) specifies that a license may not be sold, transferred, or assigned without the written approval of the OCCC, as provided by Texas Finance Code, Subsection (d) provides a timing requirement, stating that a complete license transfer application or new license application on transfer of ownership must be filed no later than 30 days after the transfer of ownership. Subsection (e) outlines the requirements for the license transfer application or new license application on transfer of ownership. These requirements include complete documentation of the transfer of ownership, as well as a complete license application for transferees that do not hold an existing property tax lender license. Subsection (e)(5) explains that the application may include a request for permission to operate. Subsection (f) provides that the OCCC may issue a permission to operate to the transferee. A permission to operate is a temporary authorization from the OCCC allowing a transferee to operate while final approval is pending for an application. Subsection (g) specifies the transferee's authority to engage in business if the transferee has filed a complete application including a request for permission to operate. It also requires the transferee to immediately cease doing business if the OCCC denies the request for permission to operate or denies the application. Subsection (h) describes the situations where the transferor is responsible for business activity at the licensed location, situations where the transferee is responsible, and situations where both parties are responsible. In , concerning Change in Form or Proportionate Ownership, conforming changes are adopted corresponding to adopted new Throughout subsections (b) and (c), references have been added to the new license application on transfer of ownership. In addition, amendments in subsection (b) clarify situations where a merger is a transfer of ownership. The amendments specify that if a licensee is a party to a merger that results in a new or different surviving entity other than the licensee, then the merger is a transfer of ownership, and the licensee must file a license transfer application or new license application. The amendments to subsection (b) are intended to clarify the current rule text and are consistent with the OCCC's current policy. Adopted amendments to clarify the circumstances in which a licensee must notify the OCCC of changes to information in the original license application. The amendments specify that the requirement to provide updated information within 14 days applies before a license application is approved. Adopted new (b) provides that a licensee must notify the OCCC within 30 days if the information relates to the names of principal parties, criminal history, regulatory actions, or court judgments. Adopted new (c) specifies that each applicant or licensee is responsible for ensuring that all contact information on file with the OCCC is current and correct, and that it is a best practice for licensees to regularly review contact information. An adopted amendment to (c) provides that a license applicant must pay a fee to a party designated by the Texas Department of Public Safety (DPS) for processing fingerprints, replacing a statement that the fee will be paid to the OCCC. This amendment conforms the rule to the method by which applicants currently provide fingerprint information through DPS's Fingerprint Applicant Services of Texas (FAST) program. Adopted amendments to clarify the agency's procedure for providing delinquency notices to licensees that have failed to pay an annual assessment fee. The amendments specify that notice of delinquency is considered to be given when the OCCC sends the notice by mail to the address on file with the OCCC as a master file address, or by to the address on file with the OCCC (if the licensee has provided an address). An adopted amendment to contains a technical correction to ensure that the rule refers to "the prior calendar year's loan activity." Adopted new specifies the criminal history information collected by the OCCC, outlines factors the OCCC will consider when reviewing criminal history information, and describes grounds for denial, suspension, and revocation of a property tax lender license. This section replaces former and , which have been repealed. Subsection (a) describes the OCCC's collection of criminal history record information from law enforcement agencies. Subsection (b) identifies the criminal history information that the applicant must disclose. Subsection (c) describes the OCCC's denial, suspension, and revocation based on crimes that are directly related to the licensed occupation of property tax lender. Subsection (c)(1) lists the types of crimes that the OCCC considers to directly relate to the duties and responsibilities of being a property tax lender, including the reasons the crimes relate to the occupation, as provided by Texas Occupations Code, (a). Subsection (c)(2) contains the factors the OCCC will consider in determining whether a criminal offense directly relates to the duties and responsibilities of a licensee, as provided by Texas Occupations Code, Subsection (c)(3) provides the mitigating factors the OCCC will consider to determine whether a conviction renders an applicant or licensee unfit, as provided by Texas Occupations Code, Subsection (d) describes the OCCC's authority to deny a license application if it does not find that the financial responsibility, experience, character, and general fitness of the applicant are sufficient to command the confidence of the public and warrant the belief that the business will be operated lawfully and fairly, as provided by Texas Finance Code, (a)(1). Subsection (e) explains that the OCCC will revoke a license on the licensee's imprisonment following a felony conviction, felony community supervision revocation, ADOPTED RULES November 3, TexReg 6133

78 revocation of parole, or revocation of mandatory supervision, as provided by Texas Occupations Code, (b). Subsection (f) identifies other grounds for denial, suspension, or revocation, including convictions for specific offenses described by statutory provisions cited in the rule. The adopted amendments to , , , and contain updated disclosure requirements for property tax loans. These amendments include a new version of the pre-closing disclosure required under Texas Tax Code, 32.06(a-4)(1), which provides that the commission will "prescribe the form and content of an appropriate disclosure statement to be provided to a property owner before the execution of a tax lien transfer." The former version of this disclosure, located at (a), is a one-page form with information about what a property tax loan is, the possibility of foreclosure, and OCCC contact information. The new pre-closing disclosure in this adoption adds an itemization of the costs of a property tax loan, and for residential property tax loans, it includes the annual percentage rate (APR). The adopted amendments to describe a standardized method for property tax lenders to calculate the APR. The commission believes that it is appropriate for the pre-closing disclosure to include cost information and APR. When borrowers are aware of the cost of loans, they can make an informed borrowing decision. Borrowers can use cost information to shop among lenders, enhancing competition. In particular, an APR provides residential borrowers with a benchmark for comparing property tax loans to other loan products that may serve their needs. Last year, the Fifth Circuit held that the federal Truth in Lending Act (TILA) does not apply to Texas property tax loans, because a property tax loan is not a "debt" under TILA. Billings v. Propel Fin. Servs. L.L.C., 821 F.3d 608, (5th Cir. 2016). In a closed-end consumer credit transaction TILA and its implementing rule, Regulation Z, require the creditor to make several disclosures, including five key pieces of information: the amount financed, the finance charge, the APR, the total of payments, and the payment schedule. TILA, 15 U.S.C. 1602(v) and 1604(a); Regulation Z, 12 C.F.R After Billings, there is no general requirement for property tax lenders to disclose the APR and cost information before the closing of a property tax loan. In light of Billings, the commission believes that it is an appropriate time to revisit the content of the required pre-closing disclosure, and to add information about costs and APR. The Texas Legislature recognized that much of this information is important to disclose to borrowers when it added Texas Finance Code, in SB 247 (2013). That section requires property tax loan advertisements and solicitations to disclose information such as the terms of repayment and APR. In addition, the agency understands that most property tax lenders are already providing this information to borrowers in some form between application and closing. Another purpose of the adopted amendments is to provide a standardized method for disclosing this information that is already being provided, which further helps borrowers make an informed borrowing decision. Two commenters on the notice of intention to review support reviewing the disclosure rules. One of these commenters recommends reviewing the rules to "[e]nsure that consumers receive adequate notices regarding the cost and terms of the underlying transaction," and to provide "[s]tandardization of the forms and calculation methods for certain terms (e.g., APR) to ensure consumers can make well-informed choices." Adopted amendments to add definitions of the terms "amount financed," "annual percentage rate," "finance charge," and "total of payments." The amount financed, finance charge, and total of payments are all used to calculate the APR. The definitions are intended to provide a standardized, uniform method of calculating the APR for a property tax loan. When this information is disclosed to borrowers through a standardized method, this enables borrowers to shop among lenders, enhancing competition. These terms are used in calculating the amounts on the amended pre-closing disclosure, as described later in the discussion of the adopted amendments to and Under the adopted definition at (2), the APR would be calculated based on the methods described in Regulation Z, 12 C.F.R , which contains a standardized method for calculating APR that is generally used in consumer credit transactions. For this reason, the APR can provide residential borrowers with a benchmark for comparing property tax loans to other loan products that may serve their needs. One of the key components used in calculating the APR is the finance charge. Generally, the finance charge is the cost of credit as a dollar amount. Regulation Z, 12 C.F.R (a). Other things being equal, a higher finance charge will result in a higher APR. The adopted definition in (3) explains that the finance charge includes all interest and closing costs paid to the property tax lender or an affiliated business. The term "affiliated business" is defined in current (1), and includes a business that shares common management with a property tax lender, shares more than 10% common ownership with a property tax lender, or is controlled by a property tax lender through a controlling interest greater than 10%. At the stakeholder meeting, one stakeholder pointed out that certain property tax lenders impose internal costs that they retain, while other property tax lenders pass costs on to affiliated businesses. The stakeholder noted that if a property tax lender can exclude costs paid to the affiliated businesses from the finance charge, this will enable the property tax lenders using affiliated businesses to disclose a lower APR than property tax lenders imposing internal costs, even if the costs are substantially the same for the borrower. In response to this stakeholder statement, the new definition of "finance charge" in (3) specifies that the finance charge includes interest and closing costs paid to an affiliated business. This definition will ensure that a prospective borrower can accurately compare rates between a property tax lender that generally retains fees for services performed at closing, and a property tax lender that passes fees on to an affiliated business. Since the proposal, a change has been made to the definition of "finance charge" in (3) to divide parts of the definition into lettered subparagraphs, and to add a statement that the finance charge excludes an amount to pay off an existing property tax loan in the case of a refinance. This change is intended to make the definition clearer, and to conform to changes in (a)(6)(A) and (a)(8)(d), discussed later in this adoption. The adopted amendments to (b) and (c) add the Calibri font to the list of typefaces considered to be readable, and specify that the text of the disclosure must generally be at least as large as 11 points in the Calibri font. These amendments reflect the updated pre-closing disclosure, which was prepared in the Calibri font for improved readability and design. The adopted amendments to describe the content of the amended pre-closing disclosure. These amendments generally maintain the elements that are required to be in the disclosure 42 TexReg 6134 November 3, 2017 Texas Register

79 under current , while providing additional disclosures. Adopted amendments at (a)(1) - (4) require the pre-closing disclosure to include the parties' contact information, and for a residential property tax loan, require the disclosure to state the name and Nationwide Multistate Licensing System (NMLS) identification number of the residential mortgage loan originator. Under Texas Finance Code, , an individual who acts as a residential mortgage loan originator for a property tax loan must be individually licensed with the OCCC. Disclosing the originator's name and NMLS ID number helps ensure that the property tax lender has complied with this requirement. Adopted (a)(6) requires the pre-closing disclosure to include a section labeled "Loan Terms," including the funds advanced under Texas Tax Code, 32.06(e) (labeled as the "loan amount"), the contract interest rate, the term of the property tax loan in months, the monthly payment amount, the payment schedule, and a provision explaining whether there is a prepayment penalty. Several precommenters requested guidance about whether prepaid interest could be included in the funds advanced listed on the pre-closing disclosure. The funds advanced are expressly limited by Texas Tax Code, 32.06(e), which states: "Funds advanced are limited to the taxes, penalties, interest, and collection costs paid as shown on the tax receipt, expenses paid to record the lien, plus reasonable closing costs." Interest paid to the property tax lender, including prepaid interest, is not part of the funds advanced under this section. Although this provision mentions interest, this refers to interest paid to the taxing unit as shown on the tax receipt. In response to the precommenters' request for guidance, adopted (a)(6)(A) explains that the funds advanced include the amounts described by Texas Tax Code, 32.06(e), and do not include prepaid interest. Prepaid interest is disclosed separately on the pre-closing disclosure, as explained later in the discussion of (a)(9). At the stakeholder meeting, one stakeholder explained that some property tax lenders include prepaid interest (other than discount points) in the principal balance of the loan, but do not charge interest upon the prepaid interest. This adoption does not specifically address this practice, but it would require the lender to exclude any prepaid interest from the loan amount on the pre-closing disclosure. Adopted (a)(7) requires the pre-closing disclosure for a residential property tax loan to include a section labeled "Loan Calculations," containing the APR, amount financed, finance charge, and total of payments. One commenter suggests that this section be titled "Loan Calculations" instead of "Loan APR Calculation." In response to this comment, (a)(7) as adopted uses the title "Loan Calculations." Adopted (a)(8) requires the pre-closing disclosure to include a section labeled "Loan Amount Itemization," containing itemizations of the amounts paid to taxing units, closing costs, and recording costs. At the stakeholder meeting, two stakeholders noted that some amounts may be paid to an entity other than a taxing unit (e.g., collection costs paid to a district clerk). In response to these statements, adopted (a)(8)(A)(i) explains that the itemization includes amounts paid to taxing units or other governmental entities as shown on the tax receipt. Since the proposal, changes have been made to (a)(6)(A) and (a)(8)(d) in response to a comment. The commenter states that the pre-closing disclosure "should be altered to allow for a Refinance of an Existing Loan in the 'Loan Amount Itemization' section." In response to this comment, (a)(6)(A) as adopted explains that the funds advanced include any amount to pay off an existing property tax loan in the case of a refinance. In addition, (a)(8)(D) as amended specifies that these amounts must be listed, along with the name of each property tax lender to which an amount will be paid, in a subsection labeled "Refinance of current property tax loan." Adopted (a)(9) requires the pre-closing disclosure to include a section labeled "Prepaid Interest," containing the total amount of any prepaid interest, itemized into per diem interest and discount points. Adopted (a)(10) requires the following tax office notice in boldface type: "Your tax office may offer delinquent tax installment plans that may be less costly to you. You can request information about the availability of these plans from the tax office." This disclosure is based on Texas Finance Code, (a), which requires this notice to be included on the first page of any solicitation materials in 12-point boldface type. Three precommenters stated that this notice is unnecessary on the pre-closing disclosure, arguing that it should apply only to advertisements and solicitations. The commission disagrees with this argument for two reasons. First, the pre-closing disclosure might be used as a solicitation, which would trigger the requirement in Texas Finance Code, to include the notice. Second, the notice provides potential borrowers with important information that they should consider before entering a property tax loan, as the legislature acknowledged by enacting Texas Finance Code, Adopted (a)(23) contains updates to the OCCC's contact information in the pre-closing disclosure. In accordance with instructions from the Texas Department of Information Resources, the OCCC has updated its website and address with the "texas.gov" extension: occc.texas.gov and consumer.complaints@occc.texas.gov. Other revisions have been made to the text of the OCCC notice to provide more clarity to consumers regarding the role of the OCCC in resolving complaints. Adopted amendments to (b) explain that the pre-closing disclosure must fit on two pages, but a property tax lender may attach additional pages if necessary to disclose additional taxing units, additional third parties receiving closing costs, or additional government units receiving recording expenses. Adopted (c) explains that all information on the disclosure must be accurate, and the APR must be accurate within 1/8 of 1 percentage point. If the property tax lender learns that the information is inaccurate, then it must notify the property owner of the inaccuracy and provide an updated disclosure. Since the proposal, changes have been made to (c) in response to comments. All three written comments address (c), and the provision was also addressed in the oral comment. All of the commenters expressed concern about the requirement in proposed (c) that the property tax lender must "promptly" notify the property owner of any inaccuracy. One commenter "proposes that a pre-closing re-disclosure only be required if the APR increases or if closing costs increase. To the extent the APR is unchanged or decreases and/or non-financial terms are changed, we propose requiring a re-disclosure be provided at closing." In an oral comment, the commenter gave the following example. The property tax lender provides an initial disclosure stating that there are $500 in closing costs, with $200 paid to a third party and $300 paid to the property tax lender. Be- ADOPTED RULES November 3, TexReg 6135

80 fore closing, the property tax lender learns that $300 will have to be paid to the third party, but the property tax lender determines that only $200 will be paid to it, resulting in the same $500 total closing costs and a slightly reduced APR compared to the initial disclosure. The commenter argued that the property tax lender should not be required to promptly provide an amended disclosure in this situation, because there is no increase in costs being paid by the property owner. Along the same lines, another commenter recommends: "Allow PTL to overstate APR initially, without having to re-disclose prior to closing, as long as the APR provided at closing is accurate." Finally, another commenter recommends that the commission allow the APR to be considered accurate if it is based on a finance charge that is either understated by $100 or less or overstated by any amount, based on the accuracy tolerances for mortgage loans under Regulation Z, 12 C.F.R (a)(4). In response to these comments, (c)(2) as adopted provides that a dollar amount on the disclosure will be considered accurate if it is not more than $10 above or below the actual amount charged under the terms of the property tax loan. The commission believes that this $10 amount is appropriate given the size of property tax loans and the amount of closing costs, which are generally limited to $900 under for residential property tax loans. The $10 accuracy threshold strikes a balance between ensuring that property owners receive accurate information and allowing minor variances for changes that property tax lenders cannot predict. The commission disagrees with the recommendation that the finance charge be considered accurate if it is understated by $100 or overstated by any amount. This recommendation would not provide property owners with sufficiently accurate information about the cost of loans to enable them to make an informed borrowing decision. Also in response to these comments, (c)(3) as adopted provides a general timing requirement, stating that the amended disclosure must be provided before the property owner executes a property tax loan contract. However, if the inaccuracy results in an increase of more than $10 to certain amounts paid by the property owner, or an increase of more than 1/8 of 1 percentage point to the APR, then the property tax lender must promptly provide the amended disclosure after learning of the inaccuracy. The commission believes that this timing requirement strikes an appropriate balance by ensuring that property owners have accurate disclosures at the time of closing, and that they promptly receive updated disclosures if they will have to pay more than originally disclosed. Adopted amendments at (d) - (g) contain technical corrections and updated citations. This adoption maintains the current requirements for delivering the pre-closing disclosure. In particular, the adoption does not amend the timing requirement currently in (c)(2)(B), which provides that the disclosure must be delivered "within three business days from receipt of the property owner's application for a property tax loan, or within three business days from the date that the property tax lender first has knowledge of the property owner's agreement to enter into a property tax loan with the property tax lender." One precommenter stated that this requirement should be maintained for the pre-closing disclosure, while another suggests that the disclosure should be provided at least three days before closing. The commission believes that the current requirement of providing the disclosure within three days of the application provides the borrower with an appropriate amount of time to review the cost information, consider alternatives, and reach an informed borrowing decision. If any information on the disclosure changes and renders the disclosure inaccurate, the property tax lender would be required to notify the property owner and provide an updated disclosure under (c)(3). As adopted, (e)(2)(F) maintains the previous provision on verification of delivery by , stating that delivery may be verified by a dated reply or affirmative consent under the E-Sign Act, 15 U.S.C. 7001(c). Regarding this provision, one commenter states: "Do not burden consumers with regulation. Technology allows senders to receive a confirmation receipt. The proposed rules require a response from customer by and it is inappropriate to place a regulatory burden on customers." The commission disagrees with the suggestion that (e)(2)(F) places a regulatory burden on property owners. This provision describes methods by which the property tax lender can verify compliance with its legal responsibility to provide the disclosure statement to the property owner. This provision does not impose a requirement on property owners. The commission believes that it is appropriate to maintain this requirement, so that property tax lenders can verify delivery of electronic disclosures. In addition, the E-Sign Act provides a widely accepted method for electronic delivery of disclosures. The commenter's concern about providing disclosures is partially addressed by the changes in adopted (c)(3), which allow certain amended disclosures to be provided at closing. The adopted amendments to contain the updated figures for the pre-closing disclosure, with one version for residential property tax loans and another for commercial property tax loans. Adopted amendments to describe the permissible changes to the pre-closing disclosure. As mentioned previously, at the stakeholder meeting, two stakeholders noted that some amounts may be paid to an entity other than a taxing unit (e.g., collection costs paid to a district clerk). In response to these statements, adopted (a)(5) allows the property tax lender to replace "Amounts paid to taxing units" with "Amounts paid to taxing units and governmental entities" if the property tax lender pays amounts to other governmental entities and these amounts are shown on the tax receipt. Since the proposal, a change has been made to (a)(6) to allow the property tax lender to add or omit lines in the "Loan Amount Itemization" section as necessary to disclose any amounts to refinance an existing property tax loan. This change is intended to conform to changes in (a)(6)(A) and (a)(8)(d), discussed earlier in this adoption. In addition, at the stakeholder meeting, one stakeholder suggested adding language to the pre-closing disclosure stating that the APR is not the same as the interest rate, while another stakeholder suggested that this disclosure should be optional. In response to these recommendations, adopted (a)(7) allows the property tax lender to add the following sentence to the APR line: "This is not your interest rate." Other permissible changes adopted in include omitting the loan identification number, adding or omitting lines in the loan amount itemization to disclose all amounts paid to third parties, omitting the prepaid interest section if there is no prepaid interest charged, and adding any required disclosure of affiliated businesses under (g). One commenter requests "a January 1, 2017 implementation date for the new forms and disclosures." The agency understands the commenter to be requesting a delayed implementa- 42 TexReg 6136 November 3, 2017 Texas Register

81 tion date of January 1, In response to this comment, the agency will allow a delayed implementation date of January 1, 2018, for property tax lenders to provide the amended version of the pre-closing disclosure under and From the rule's effective date until January 1, 2018, property tax lenders may provide property owners with either the previous version of the disclosure or the amended version. Starting on January 1, 2018, property tax lenders must provide the amended version. An adopted amendment to (a) specifies that the limitations in the rule governing closing costs for property tax loans apply to residential property tax loans, as defined by (10), discussed earlier in this adoption. This amends the former requirement, which stated that the limitations applied to property tax loans secured by property designated as "Category A (Real Property: Single-Family Residential)," and homesteads designated as "Category E (Real Property: Farm and Ranch Improvements)" by the Property Classification Guide published by the Texas Comptroller of Public Accounts. In two of the comments on the notice of intention to review, the commenters recommend limiting the scope of the closing cost rule's limitations to homestead property. Several stakeholders reiterated this recommendation at the stakeholder meeting and in written precomments on the proposal. In response to these comments and precomments, the adopted amendment to (a), read together with the new definition of "residential property tax loan" in (10), specifies that the closing cost limitations apply to all property tax loans including a lien on residential property, including all homestead property, as well as any property with a Category A designation, unless the property tax lender obtains an affidavit stating that the property is used for a business or investment purpose. Effectively, this means that the closing cost limitations in would no longer apply to Category A property that is owned and used for a business purpose (e.g., rental property), as long as the property tax lender obtains and maintains the appropriate affidavit. All property tax loan closing costs are still required to be reasonable under Texas Tax Code, 32.06(e). The limitations for residential property tax loans in are intended to strike an appropriate balance between consumer protection and industry cost recovery. The commission believes that these amendments help strike that balance. The commission disagrees with the suggestion that the rule should only apply to homestead property. Certain non-homestead property, such as a second home, is used as residential property for personal, family, or household use, and it is appropriate to ensure that these property owners can benefit from the consumer protections in Adopted amendments to (c)(4) deal with closing costs authorized for additional parcels of land. Previously, the rule provided that the property tax lender may charge up to $100, in addition to the general $900 maximum, for each additional parcel of residential property described by (a). In two of the comments on the notice of intention to review, the commenters recommended allowing the additional $100 in closing costs for each additional parcel of commercial property, for property tax loans that cover both residential and commercial property. Similarly, in one of the comments on the proposal, the commenter recommends clarifying that the property tax lender may charge up to $100 for each additional property, regardless of property category. Property tax loans that cover both residential and commercial property are subject to the limitations of , but the former rule authorized the additional $100 only for residential parcels. In response to these comments, the adopted amendments to (c)(4) remove language limiting the additional $100 authorization to residential parcels, effectively allowing $100 for each additional parcel regardless of whether it is residential or commercial. This is intended to reflect actual costs incurred by the property tax lender through closing for a property tax loan that includes both residential and commercial property. Some precommenters recommended increasing the $100 per parcel amount in (c)(4). Two precommenters suggested a general $150 amount, while another suggested a $300 amount for commercial property. The commission recently adopted the $100 amount in 2015, following an extensive review of closing costs charged in connection with property tax loans. The commission believes that it is unnecessary to amend the $100 amount at this time. Adopted (d)(3) allows a permissible change to the certified statement signed by the taxing unit. In a comment on the notice of intention to review, one commenter explained that Texas Tax Code, authorizes tax lien transfers when a taxing unit files suit to foreclose a tax lien and joins a tax lien transferee. The commenter recommended allowing the certified statement's citation to to be amended in this situation. In response to this comment, adopted (d)(3) allows a taxing unit to replace "Texas Tax Code, 32.06" with "Texas Tax Code, " if the transfer occurs in connection with the joinder of a tax lien transferee under Texas Tax Code, (a). Some of the comments make additional recommendations on the following issues that were not addressed in the proposal: (1) the prohibition on a property tax loan for property financed by a below market rate loan under Texas Tax Code, 32.06(a-8)(1); (2) the limitation on fees for filing a release under current 7 TAC ; and (3) waiver of the right of rescission under Texas Tax Code, 32.06(d-1). Because these issues are outside the subject matter included in the proposal, adopting this change would require a separate rulemaking action with a new publication for comment. See State Bd. of Ins. v. Deffebach, 631 S.W.2d 794, 801 (Tex. App.--Austin 1982, writ ref'd n.r.e.). However, the agency invites responses from stakeholders as discussed in the following paragraphs. Regarding below market rate loans, two comments request guidance on what constitutes a below market rate loan for purposes of Texas Tax Code, 32.06(a-8)(1). In order to determine whether a future rule action on this issue is appropriate, the agency invites responses from stakeholders on the following questions: What types of real property financed by governmental or nonprofit loans have stakeholders encountered? What rates have stakeholders encountered in connection with these loans? Is it unclear whether these rates are below market rate? What would be the benefits and drawbacks of adopting a rule on this issue? Regarding lien release fees, one commenter provided a list of real property record filing fees charged by a county, and requested an increase in the lien release fee under In order to determine whether a future rule action on this issue is appropriate, the agency invites responses from stakeholders on the following questions: What costs have stakeholders encountered in filing a lien release? What are the actual costs charged by county clerks? What would be the benefits and drawbacks of amending the $110 maximum in (c)? Regarding waiver of the right of rescission under Texas Tax Code, 32.06(d-1), one commenter recommends that the commission "clarify scenarios where a PTL may waive the 3 Day ADOPTED RULES November 3, TexReg 6137

82 Right to Rescind," including "foreclosure due to tax sale" or a "significant financial penalty." The commission disagrees with this recommendation. Texas Tax Code, 32.06(d-1), provides: "A right of rescission described by 12 C.F.R. Section applies to a transfer under this section of a tax lien on residential property owned and used by the property owner for personal, family, or household purposes." The situations where a borrower may waive the right of rescission are described in Regulation Z, 12 C.F.R (e)(1) and (e), which provide: "The consumer may modify or waive the right to rescind if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the right to rescind, and bears the signature of all the consumers entitled to rescind. Printed forms for this purpose are prohibited...." Because Regulation Z and its official commentary specify the situations where a right of rescission may be waived, the commission believes that additional rules on this issue are unnecessary at this time. SUBCHAPTER A. GENERAL PROVISIONS 7 TAC The amendments are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The rule change in is adopted under Texas Finance Code, (f), which authorizes the commission to adopt rules to implement requirements on advertising. The rule changes in , , , and are adopted under Texas Tax Code, 32.06(a-4)(1), which authorizes the commission to adopt the form and content of the pre-closing disclosure statement. The rule changes in are adopted under Texas Tax Code, 32.06(a-4)(2), which authorizes the commission to adopt rules relating to the reasonableness of closing costs, fees, and other permitted charges. The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER B. AUTHORIZED ACTIVITIES 7 TAC , The amendments are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The rule change in is adopted under Texas Finance Code, (f), which authorizes the commission to adopt rules to implement requirements on advertising. The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER C. APPLICATION PROCEDURES 7 TAC , , The amendments and new rule are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) TAC TexReg 6138 November 3, 2017 Texas Register

83 The repeal is adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The statutory provisions affected by the adopted repeal are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER D. LICENSE 7 TAC The amendments and new rule are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) TAC , The repeals are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The statutory provisions affected by the adopted repeals are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER E. DISCLOSURES 7 TAC , , The amendments are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The rule changes in , , , and are adopted under Texas Tax Code, 32.06(a-4)(1), which authorizes the commission to adopt the form and content of the preclosing disclosure statement. The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter Definitions. The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise: (1) Amount financed--the total of payments minus the finance charge. (2) Annual percentage rate--has the meaning described by Regulation Z, 12 C.F.R , using a finance charge and amount financed described by this section. (3) Finance charge--the cost of a property tax loan expressed as a dollar amount. The finance charge includes all interest scheduled to be paid to the property tax lender, including prepaid interest, and includes all closing costs to be retained by the property tax lender or an affiliated business. (A) The finance charge does not include amounts actually paid to a taxing unit for taxes, penalties, interest, and collection costs. (B) In the case of a refinance of an existing property tax loan, the finance charge does not include the amount paid to the existing property tax lender to pay off the existing loan. (C) A property tax lender may exclude recording expenses actually paid to a governmental unit from the finance charge. (D) A property tax lender may exclude closing costs actually paid to third parties from the finance charge only if the costs are ADOPTED RULES November 3, TexReg 6139

84 bona fide, reasonable in amount, and paid to a person that is not an affiliated business. (4) Property tax lender--has the meaning assigned by Texas Finance Code, (1). Another name for a "property tax lender" is a "transferee" as defined by Texas Tax Code, 32.06(a)(2), and these terms may be used synonymously. (5) Property tax loan--has the meaning assigned by Texas Finance Code, (2). Another name for a "property tax loan" is a "tax lien transfer," and these terms may be used synonymously. (6) Tax lien transfer--has the meaning assigned by Texas Finance Code, (2). Another name for a "tax lien transfer" is a "property tax loan," and these terms may be used synonymously. (7) Total of payments--the total amount the borrower will have paid after making all scheduled payments, including payments made at or before closing. (8) Transferee--Has the meaning assigned by Texas Finance Code, (1), and Texas Tax Code, 32.06(a)(2). Another name for a "transferee" is a "property tax lender," and these terms may be used synonymously Requirements for Disclosure Statement to Property Owner. (a) Required elements. A disclosure statement under Texas Tax Code, 32.06(a-4)(1) to be provided to a property owner before the execution of a tax lien transfer must contain the following required elements: (1) the title "Property Tax Loan Pre-Closing Disclosure" at the top of each page; (2) the property owner's name and the address of the property; (3) the property tax lender's name, principal business address, and OCCC license number; (4) for a residential property loan, the name and NMLS unique identifier of the individual residential mortgage loan originator; (6) a section labeled "Loan Terms" containing the following: (5) the closing date; (A) the funds advanced under Texas Tax Code, 32.06(e), which are limited to the taxes, penalties, interest, and collection costs paid as shown on the tax receipt, expenses paid to record the lien, reasonable closing costs, and any amount to pay off an existing property tax loan in the case of a refinance, and may not include any prepaid interest, labeled "Loan Amount (funds advanced on your behalf)"; (B) the contract interest rate described on the promissory note or loan agreement, labeled "Interest Rate (loan contract rate)"; (C) the term of the property tax loan in months, labeled "Loan Term"; Payment"; (D) the monthly payment amount, labeled "Monthly (E) the number, amounts, and timing of payments scheduled to repay the property tax loan, labeled "Payment Schedule"; and (F) one of the following statements, labeled "Prepayment": (i) for any residential property tax loan, or for a commercial property tax loan that does not have a prepayment penalty, the following statement: "You can pay off the loan at any time without a penalty." (ii) for a commercial property tax loan that has a prepayment penalty, an explanation of the amount of the prepayment penalty such as: "If you prepay the loan within two years, you will pay a prepayment penalty as high as $."; (7) for a residential property tax loan, a section labeled "Loan Calculations" containing the following: (A) the annual percentage rate, labeled "APR (cost of loan as a yearly rate)"; (B) the amount financed, labeled "Amount Financed (amount of loan used for APR)"; (C) the finance charge, labeled "Finance Charge (loan cost used for APR)"; and (D) the total of payments, labeled "Total of Payments"; (8) a section labeled "Loan Amount Itemization" containing the following: listing: (A) a subsection labeled "Amounts paid to taxing units" (i) the total amount that the property tax lender will pay to taxing units or governmental entities for unpaid taxes, penalties, interest, and collection costs as shown on the tax receipt; (ii) the name of each taxing unit or governmental entity to which the property tax lender will disburse an amount shown on the tax receipt; and (iii) the amount to be disbursed to each taxing unit or governmental entity; (B) a subsection labeled "Closing costs" listing: (i) the total amount of closing costs; (ii) the total amount of closing costs paid to or retained by the property tax lender, labeled "Costs to lender"; and (iii) for each portion of the closing costs paid to a third party, a description of the cost, the name of the third party, and the amount of the cost; liens; (C) a subsection labeled "Recording costs" listing: (i) the total amount of expenses to record the lien or (ii) the name of each governmental unit to which the property tax lender will pay an expense to record a lien; and (iii) the amount to be paid to each governmental unit for recording expenses; (D) in the case of a refinance of an existing property tax loan, a subsection labeled "Refinance of current property tax loan" listing: (i) the total of amounts to pay off any existing property tax loan or loans; (ii) the name of each property tax lender to which an amount will be paid to pay off an existing property tax loan; and (iii) the amount to be paid to each property tax lender to pay off an existing property tax loan; 42 TexReg 6140 November 3, 2017 Texas Register

85 (9) for any property tax loan in which the lender will charge prepaid interest, including per diem interest or discount points, a section labeled "Prepaid Interest" containing the following: (A) the total amount of prepaid interest that the property tax lender will charge, expressed as a dollar amount, labeled "Total prepaid interest (not included in loan amount)"; (B) if the property tax lender will charge per diem interest, the total amount of per diem interest expressed as a dollar amount, with a statement of the per diem interest rate and number of days, labeled "Per diem interest ( % per day, days)"; (C) if the property tax lender will charge discount points, the total amount of discount points expressed as a dollar amount, labeled "Discount points"; (10) the following notice in boldface type, labeled "Tax Office Notice": "Your tax office may offer delinquent tax installment plans that may be less costly to you. You can request information about the availability of these plans from the tax office." (11) a statement that the property owner currently has a lien against the owner's property for unpaid property taxes; (12) a statement that the property owner can pay the taxing unit(s) directly; (13) a statement that the property owner may authorize that the lien of the taxing unit(s) be transferred to the property tax lender; (14) a statement that unless the property owner agrees in writing, the property tax lender may not make the property tax loan; (15) a statement that the property tax loan may include unpaid property taxes, penalties, interest, and collection costs paid as shown on the tax receipt; (16) a statement that the property tax lender may also assess closing costs and interest not to exceed 18% per year; (17) a statement that the property tax loan is superior to any other preexisting lien on the property; (18) a statement that if the property is a homestead, disabled persons are entitled to tax deferral under Texas Tax Code, 33.06; (19) a statement that there may be alternatives available to the property owner instead of the property tax loan, (e.g., entering into a payment installment agreement with the taxing unit(s), financing options through an existing mortgage lender or other private lenders, borrowing from savings or family members); (20) a statement that if the property owner does not pay, the property owner may lose the property; (21) a statement that the tax lien may be considered a default by any mortgage holder with a lien on the same property, and the only way to correct the default is to pay off the taxes and have the lien released; (22) a statement that any secured loan may be foreclosed if the loan is in default, and the cost of a foreclosure, either tax lien or mortgage, may be added to the amount owed by the property owner; (23) the following statement: "For questions or complaints about this loan, contact (insert name of lender) at (insert lender's phone number and, at lender's option, one or more of the following: mailing address, fax number, website, address). If this does not resolve your question or complaint, you can contact the OCCC:" and the OCCC's address, consumer helpline, website, and consumer complaint address as follows: 2601 N. Lamar Blvd., Austin, TX 78705, (800) , occc.texas.gov, consumer.complaints@occc.texas.gov; (24) a statement that the property owner may seek the advice of an attorney or another third party before signing a property tax loan; and (25) a statement that the property owner should ask about the terms of any loan and should read any document before signing it. (b) Page requirement. The disclosure statement must fit on one standard-size sheet of paper (8 1/2 by 11 inches) printed on both sides, or on two standard sheets of paper printed only on the front sides of each page. A property tax lender may attach additional pages if necessary to disclose additional taxing units, additional third parties receiving closing costs, additional governmental units receiving recording expenses, or additional information regarding amounts to pay off one or more existing property tax loans. The disclosure statement must be delivered in a manner that does not minimize its significance. (c) Accuracy. All information and amounts on the disclosure statement must be accurate and must correctly reflect the terms of the property tax loan at closing. (1) Annual percentage rate. For a residential property tax loan, the annual percentage rate will be considered accurate if it is not more than 1/8 of 1 percentage point above or below the annual percentage rate determined in accordance with (2) of this title (relating to Definitions). (2) Dollar amounts. For purposes of this subsection, a dollar amount on the disclosure will be considered accurate if it is not more than $10 above or below the actual amount charged under the terms of the property tax loan. (3) Amended disclosure statement. At any time after delivering the disclosure statement, if the property tax lender learns that any information on the disclosure statement was inaccurate or did not correctly reflect the terms of the loan at closing, then the property tax lender must notify the property owner of the inaccuracy, and must send an amended, accurate disclosure statement to the property owner in a manner described by subsection (d) of this section. The amended disclosure statement must list the date on which it was revised. (A) General timing requirement. The property tax lender must provide any amended disclosure statement to the property owner before the property owner executes any promissory note, loan agreement, deed of trust, contract, security deed, or other security instrument. (B) Prompt disclosure for certain increased amounts. In addition to complying with subparagraph (A) of this paragraph, the property tax lender must provide the amended disclosure to the property owner promptly after discovering the inaccuracy if the inaccuracy results in: (i) an increase of more than $10 to the total of payments, the closing costs, or the amount of any periodic payment, compared to the amount originally disclosed to the property owner; or (ii) an increase of more than 1/8 of 1 percentage point to the annual percentage rate, compared to the amount originally disclosed to the property owner for a residential property tax loan. (d) Delivery. (1) Face-to-face interview before closing. In the case of a face-to-face interview, a property tax lender must provide a disclosure statement containing all of the elements outlined by subsection (a) of this section to the property owner at the time of the interview. A ADOPTED RULES November 3, TexReg 6141

86 property owner present at the interview may sign an acknowledgment verifying receipt of the disclosure statement at that time. (2) No face-to-face interview. If there is no face-to-face interview, a licensee must deliver a disclosure statement containing all of the elements outlined by subsection (a) of this section to the owner of the property. (A) Method of delivery. The disclosure statement may be delivered by U.S. mail, with prepaid first-class postage, or via facsimile or if the property owner consents. Alternatively, licensees may deliver the disclosure statement by certified mail with return receipt requested, by using a commercial delivery service with tracking abilities, or by using a courier service. (B) Timing of delivery. The disclosure statement must be delivered within three business days from receipt of the property owner's application for a property tax loan, or within three business days from the date that the property tax lender first has knowledge of the property owner's agreement to enter into a property tax loan with the property tax lender. (C) Co-applicants. If property owners who are co-applicants provide the same mailing address, one copy delivered to that address is sufficient. If different addresses are shown by co-applicants, a copy must be delivered to each of the co-applicants. (e) Verification of delivery. (1) At time of face-to-face interview before closing. At the time of a face-to-face interview, verification that a disclosure was provided under this section is not required, but may be established by a signed and dated acknowledgment of the property owner obtained at the time of the interview. (2) No face-to-face interview. If there is no face-to-face interview, the property tax lender must deliver the disclosure statement to the property owner as prescribed in subsection (d)(2) of this section. (A) Verification of delivery by mail. The property tax lender must allow a reasonable period of time for delivery by mail. A period of three calendar days, not including Sundays and federal legal public holidays, constitutes a rebuttable presumption for sufficient mailing and delivery. (B) Verification of delivery via facsimile. For disclosures delivered via facsimile, a dated facsimile confirmation page indicating that the disclosure statement was successfully transmitted to the fax number provided by the property owner will constitute a rebuttable presumption for sufficient delivery. (C) Verification of delivery by certified mail with return receipt requested. For disclosures delivered by certified mail with return receipt requested, a dated return receipt indicating that the disclosure statement was successfully delivered to the property owner's address will constitute verification of delivery. (D) Verification of delivery by commercial delivery service with tracking abilities. For disclosures delivered by commercial delivery service, a dated receipt indicating that the disclosure statement was successfully delivered to the property owner's address will constitute verification of delivery. (E) Verification of delivery by courier service. For disclosures delivered by courier service, a dated receipt indicating that the disclosure statement was successfully delivered to the property owner will constitute verification of delivery. (F) Verification of delivery by . For disclosures delivered via , a dated reply indicating that the disclosure statement was successfully delivered to the property owner will constitute verification of delivery. Alternatively, a property owner's affirmative consent to electronic delivery of the disclosure in accordance with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001(c), will constitute a rebuttable presumption for sufficient delivery. (f) Acknowledgment at time of closing. At the time of closing, a property tax lender may deliver an additional copy of the disclosure statement, but is not required to do so. The property tax lender must obtain a dated acknowledgment signed by the property owner stating that the property owner received the disclosure statement prior to closing. The acknowledgment of receipt may be included on the disclosure form as provided in (a)(11) of this title (relating to Permissible Changes). (1) Married property owners. If the property is designated as a homestead, the signatures of both spouses must be obtained by the property tax lender in order to acknowledge delivery of a disclosure under this section. (2) Property owned by a legal entity. If the property is owned by a legal entity (e.g., a living trust), the signature of a person with authority to sign on behalf of the legal entity must be obtained by the property tax lender in order to acknowledge delivery of a disclosure under this section. (g) Disclosure of affiliated businesses. If a property tax lender regularly contracts with one or more affiliated businesses for services under Texas Finance Code, (a)(4), (a)(5), (a)(6), (a)(7), (a)(8), or (a)(10) that are not performed by an employee of the property tax lender, then the disclosure statement must include a statement substantially similar to the following: "The property tax lender can impose certain additional charges after closing. Some of these charges may be paid to (INSERT NAME OF AFFILIATED BUSINESS OR BUSINESSES), which is affiliated with the property tax lender. The costs paid to the affiliated business cannot be for services performed by employees of the property tax lender." Permissible Changes. (a) A property tax lender must use the required disclosure statement under Texas Tax Code, 32.06(a-4)(1) as prescribed by Figure: 7 TAC (a)(1) or Figure: 7 TAC (a)(2) of this title, but may consider making only limited technical changes, as provided by the following exclusive list: (1) Substituting "transferee" for "property tax lender," or using pronouns such as "we" and "us"; (2) Substituting "borrower" for "property owner," or using pronouns such as "you" and "your"; (3) Substituting "tax lien transfer" for "property tax loan"; (4) Omitting the loan identification number; (5) Replacing "Amounts paid to taxing units" with "Amounts paid to taxing units and governmental entities" if the property tax lender pays amounts to governmental entities other than taxing units and these amounts are shown on the tax receipt; (6) Adding or omitting lines in the "Loan Amount Itemization" section as necessary to disclose all amounts paid to third parties and any amounts to refinance an existing property tax loan; (7) Adding the following statement to the "APR" line of the "Loan Calculations" section: "This is not your interest rate."; (8) Omitting the "Prepaid Interest" section if there is no prepaid interest charged, omitting the "per diem interest" line if there is no per diem interest charged, and omitting the "discount points" line if there are no discount points charged; 42 TexReg 6142 November 3, 2017 Texas Register

87 (9) Adding any required disclosure of affiliated businesses under (g) of this title (relating to Requirements for Disclosure Statement to Property Owner); (10) Attaching additional pages described by (b) of this title; or (11) Adding an optional, dated signature block at the very bottom of the second page of the disclosure form, which must include the following statement directly above the signature line of the property owner(s): "ACKNOWLEDGMENT OF RECEIPT: By signing below, I acknowledge only that I have received a copy of this disclosure prior to closing, this day of, 20." (A) Adding an optional affirmation statement to the optional signature block for married property owners: "I affirm that I am married to (insert name of spouse)." (B) Adding an optional affirmation statement to the optional signature block for persons signing on behalf of a legal entity: "I affirm that I am authorized to sign this document on behalf of (insert name of legal entity property owner)." (C) Adding the property owner's address to the optional signature block. (b) A mortgage servicer or the holder of a first lien may consider making the following types of changes to the model notice of delinquency under Texas Tax Code, 32.06(f-1) as provided by Figure: 7 TAC (b) of this title: (1) Adding information related to information set forth in the model disclosures that is not otherwise prohibited by law; (2) Substituting "property tax lender" for "transferee," or using pronouns such as "you" and "your"; (3) Substituting "borrower" for "property owner"; (4) Presenting the model clauses in any order, and combining or further segregating the model clauses, if the revised format does not significantly adversely affect the substance, clarity, or meaningful sequence of the disclosures; (5) Inserting descriptive titles, headings, subheadings, numbering, captions, and illustrative or explanatory tables or sidebars may be used to distinguish between different levels of information or to provide emphasis; or (6) Making other changes which do not affect the substance of the disclosures. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER F. COSTS AND FEES 7 TAC The amendments are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The rule changes in are adopted under Texas Tax Code, 32.06(a-4)(2), which authorizes the commission to adopt rules relating to the reasonableness of closing costs, fees, and other permitted charges. The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) SUBCHAPTER G. TRANSFER OF TAX LIEN 7 TAC The amendments are adopted under Texas Finance Code, , which authorizes the commission to adopt rules to ensure compliance with Title 4 of the Texas Finance Code. Additionally, Texas Finance Code, grants the commission the authority to adopt rules to enforce Texas Finance Code, Chapter 351 and Texas Tax Code, and The statutory provisions affected by the adopted rule changes are contained in Texas Finance Code, Chapter 351 and Texas Tax Code, Chapter 32. 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 October 20, TRD Leslie L. Pettijohn Commissioner Officer of Consumer Credit Commissioner Effective date: November 9, 2017 Proposal publication date: September 1, 2017 For further information, please call: (512) TITLE 16. ECONOMIC REGULATION ADOPTED RULES November 3, TexReg 6143

88 PART 2. PUBLIC UTILITY COMMISSION OF TEXAS CHAPTER 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS SUBCHAPTER P. TEXAS UNIVERSAL SERVICE FUND 16 TAC The Public Utility Commission of Texas (commission) adopts an amendment to , relating to administration of the Texas Universal Service Fund (TUSF) without changes to the proposed text as published in the July 14, 2017, issue of the Texas Register (42 TexReg 3533). The amendment will improve the administration of the TUSF by clarifying which providers have to pay TUSF assessments. This amendment is adopted under Project Number The commission did not receive a request for a public hearing, therefore none was held. The commission did not receive any comments on the proposed amendment. This amendment is adopted under the Public Utility Regulatory Act, Tex. Util. Code Ann (PURA), which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA which requires the commission to adopt procedures to fund the TUSF. Cross reference to statutes: PURA and 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 October 18, TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Effective date: November 7, 2017 Proposal publication date: July 14, 2017 For further information, please call: (512) TITLE 19. EDUCATION PART 2. TEXAS EDUCATION AGENCY CHAPTER 101. ASSESSMENT The Texas Education Agency (TEA) adopts amendments to and , concerning student assessment. The amendments are adopted with changes to the proposed text as published in the August 18, 2017, issue of the Texas Register (42 TexReg 4086). The adopted amendments implement the requirements of Senate Bill (SB) 463 and SB 1005, 85th Texas Legislature, Regular Session, 2017, by providing former students whose assessment graduation requirement was the Texas Assessment of Knowledge and Skills (TAKS) additional paths toward meeting graduation requirements and earning a high school diploma. REASONED JUSTIFICATION. Section , Assessment Requirements for Students First Enrolled in Grade 9 Prior to School Year or First Enrolled in Grade 10 or Above in School Year, indicates the assessment requirements for different cohorts of former students. The rule states that TAKS replaces the former students' original assessment graduation requirements. This includes former students whose assessment graduation requirements were the Texas Educational Assessment of Minimal Skills (TEAMS) or the Texas Assessment of Academic Skills (TAAS). SB 463 added Texas Education Code (TEC), , to establish provisions that may allow certain former students who have completed the curriculum requirements for graduation but have not performed satisfactorily on TAKS to qualify for a high school diploma. To implement SB 463, the adopted amendment to adds language to allow former students, who are currently required to pass all or certain parts of the TAKS exit-level tests for graduation, to earn a high school diploma through alternative options. Specifically, adopted new subsection (g) allows a former student to receive a Texas high school diploma if the former student has qualified to graduate in accordance with TEC, New subsection (g) expires on September 1, 2019, in accordance with SB 463. Based on public comment, subsection (g) was modified at adoption to remove references to the phrase "individual graduation committee" as this phrase is not used in SB 463 and add a reference to the TEC, Adopted subsection (h) includes additional alternate assessments to fulfill graduation testing requirements, including Texas Success Initiative (TSI) assessments and State of Texas Assessments of Academic Readiness (STAAR ) end-of-course assessments. Section , Texas Assessment of Knowledge and Skills Exit-Level Alternative Assessments, specifies the assessments and corresponding passing scores allowed as alternate assessments for certain former students whose assessment graduation requirement was TAKS. The alternate assessments in rule prior to this adoption included SAT and ACT mathematics and English language arts tests. SB 1005 amended TEC, , to increase the alternate assessments that may be used to fulfill TAKS graduation requirements. The bill requires the commissioner to establish satisfactory performance levels for these new TAKS alternate assessments. The satisfactory performance levels, or passing scores, on the alternate assessments must be equivalent in rigor to the performance levels the students were previously required to meet. To implement SB 1005, the adopted amendment to moves the information regarding SAT and ACT from subsection (b) into a new chart, Figure: 19 TAC (a), in subsection (a). This new chart includes the previously approved TAKS alternate assessments and corresponding passing scores (SAT administered January 2016 and before and ACT administered June 2015 and before) and passing scores for revised versions of SAT and ACT mathematics and English language arts tests as well as ACT science tests. Additional alternate assessments that can be used for TAKS, as well as their corresponding passing scores, are also listed in the chart, including TSI assessments 42 TexReg 6144 November 3, 2017 Texas Register

89 for mathematics and English language arts and STAAR Algebra I, English II, Biology, and U.S. History end-of-course assessments. Based on public comment, Figure: 19 TAC (a) was modified at adoption to update the information listed for the STAAR English II end-of-course assessment. Passing scores for each of the two components (reading and writing) of the current STAAR English II test have been established specifically for those former students who need to pass only the reading component or only the writing component. Also, passing scores for the separate STAAR English II reading test and STAAR English II writing test have been removed since those tests are no longer offered, and there are very few former TAKS students who would have taken these separate tests. Finally, the last two footnotes in the chart have been modified to reflect these changes. Adopted subsection (c) updates the eligibility language to include all former students who are required to pass all or certain parts of the TAKS exit-level tests to earn a high school diploma. SUMMARY OF COMMENTS AND AGENCY RESPONSES. The public comment period on the proposal began August 18, 2017, and ended September 18, Following is a summary of the public comments received and corresponding agency responses. Comment: A school district employee questioned how districts will receive scores from the alternate assessments allowed by SB 1005 and 19 TAC and also asked about formal state communication announcing the new information in the rules. Agency Response: The agency provides the following clarification. According to 19 TAC , a student who is eligible to substitute an approved assessment under 19 TAC is responsible for providing to the school district an official copy of his or her scores from the assessment. Concerning communication of the amended rules, the proposal and adoption of the amendments are filed with the Secretary of State for publication in the Texas Register in accordance with Texas Government Code, and In addition, the proposal and adoption are published on the TEA website, and announcements have been made by the TEA Student Assessment Division. Comment: A school district employee questioned how a district will know if a student has attempted the previous assessment required for high school graduation at least three times as required by SB 463 and 19 TAC (g)(1). Agency Response: The agency provides the following clarification. The former student is responsible for providing to the school district proof (e.g., a testing record) that he or she has been administered the previous assessment required for high school graduation at least three times. Comment: An individual and an education service center (ESC) employee questioned the requirement to have taken the previous assessment required for high school graduation at least three times. Agency Response: The agency provides the following clarification. For former students to qualify to graduate and receive a high school diploma under TEC, , they are required to have been administered the previous assessment required for graduation at least three times as required by SB 463. If they have not taken the previous assessment three times, the former student may still earn a high school diploma through the alternate assessments authorized by SB 1005 and described in 19 TAC (h). Comment: Cameron Independent School District (ISD), one school district administrator, and employees from nine other school districts asked which district would make the decision regarding whether an eligible person is qualified to graduate and receive a high school diploma under 19 TAC Agency Response: The agency provides the following clarification. As described in SB 463, the school district in which a student is enrolled or a former student was last enrolled makes the decision regarding whether the student or former student qualifies to graduate and receive a high school diploma. Comment: A school district employee questioned the suitability of STAAR as an alternate assessment for former students. Another school district employee noted the limited alternate assessment options for social studies and recommended an SAT subject test. The Intercultural Development Research Association (IDRA) indicated that the proposed alternate assessments were not designed to be used for graduation purposes. Agency Response: The agency disagrees that the alternate assessments are not suitable and provides the following clarification. The alternate assessments included in 19 TAC are those specifically listed in SB 1005: the SAT, the ACT, the TSI, and the current assessment administered for graduation purposes (i.e., STAAR ). Comment: A member of the State Board of Education (SBOE) asked whether the alternate assessments referenced in 19 TAC would be prescribed. Agency Response: The agency provides the following clarification. The prescribed alternate assessments for TAKS are those specifically listed in SB 1005: the SAT, the ACT, the TSI assessment, and the current assessment administered for graduation purposes (i.e., STAAR end-of-course (EOC) assessments). These alternate assessments, along with their passing scores, are included in the chart in Figure: 19 TAC (a). Comment: Goodwill Central Texas Excel Center Adult High School questioned the cut scores for the alternate assessments and suggested the cut scores be reconsidered for former TAAS and TEAMS examinees. IDRA also questioned the cut scores and suggested the scores be reevaluated based on the average scores for underserved groups. Agency Response: The agency disagrees and provides the following clarification. The passing scores for the TAKS alternate assessments were established so that the performance required on the alternate assessments is not more rigorous than the performance that was required on assessments required for graduation prior to TAKS. Additionally, the passing scores were established to benefit former students by providing additional paths toward meeting graduation requirements and earning a high school diploma. Comment: An individual questioned whether the proposed amendments apply to former TAAS students. Agency Response: The agency provides the following clarification. Former students who had TAAS as a graduation assessment requirement are indicated in 19 TAC (c). Amended 19 TAC (g) and (h), referencing graduation under TEC, and (f)(2), respectively, apply to subsection (c) and, therefore, apply to former TAAS students. ADOPTED RULES November 3, TexReg 6145

90 Comment: Cameron ISD, one school district administrator, employees from nine school districts, and an individual requested clarification regarding whether the requirements of 19 TAC (g) and (h) must both be satisfied to fulfill assessment graduation requirements. Agency Response: The agency provides the following clarification. Former students who have TAKS (including TAAS and TEAMS) as their assessment graduation requirement may fulfill this requirement under 19 TAC (g) or (h). Meeting the requirements under either one of these subsections fulfills a former student's testing requirement for graduation. Comment: A school district employee raised concerns about former students who live out of state testing in a subject for which there is only a Texas alternate assessment. Agency Response: The agency provides the following clarification. Regarding the concern for former students who live out of state, these individuals have the same alternate assessment options as former students who live in Texas. Former students who live out of state and take a Texas alternate assessment by choice or because a Texas alternate assessment is the only available option will likely need to return to the state for testing. Former students can register as out-of-school students to take a STAAR EOC assessment. Comment: A school district employee asked for clarification regarding the expiration date of September 1, Agency Response: The agency provides the following clarification. The optional path to meeting assessment graduation requirements indicated in 19 TAC (g) expires on September 1, 2019, in accordance with SB 463. Please note that the expiration date of September 1, 2019, only applies to subsection (g). It does not apply to subsection (h) regarding alternate assessments. Comment: IDRA and a school district employee asked whether there are options to fulfill assessment graduation requirements other than the alternate assessments indicated. Agency Response: The agency provides the following clarification. In addition to the alternate assessments referenced in 19 TAC and (h) (i.e., SAT, ACT, TSI, and STAAR ), a former student may fulfill assessment graduation requirements under TEC, , as indicated in 19 TAC (g). Comment: The Mexican American Legal Defense and Educational Fund (MALDEF) and a school district employee suggested that 19 TAC be amended to include former TAKS students. Agency Response: This comment is outside the scope of the current rule proposal. Comment: Senator José R. Rodríguez, a member of the SBOE, MALDEF, Cameron ISD, one school district administrator, and employees from 11 other school districts asked for clarification regarding the options listed for students to qualify to graduate and receive a high school diploma under TEC, , as added by SB 463. The commenters requested that information about "an alternative assessment instrument," "work experience," and "military or other relevant life experience" be added to 19 TAC Agency Response: The agency provides the following clarification. The proposed amendment to only addresses the TEC, , as it relates to graduation assessment requirements for TAKS (including TAAS and TEAMS). Rules that address high school graduation and earning a diploma can be found in 19 TAC Chapter 74, Subchapter BB. Any rule changes in response to TEC, , relating to "an alternative assessment instrument," "work experience," and "military or other relevant life experience" would be addressed in future rulemaking in that subchapter. Comment: MALDEF, employees from two school districts, and an individual provided suggestions for the commissioner to consider when adopting rules to implement the specific graduation requirements under TEC, , as added by SB 463. Agency Response: This comment is outside the scope of the current rule proposal, which addresses assessment requirements. Comment: An ESC employee suggested that if a STAAR EOC assessment is given to a former student in place of an exit-level TAKS test, then the former student may qualify to graduate under the current individual graduation committee allowed under TEC, The commenter also asked that the rule process be expedited. Agency Response: The agency disagrees. Assessment requirements for students who have STAAR as their graduation requirement are listed in 19 TAC , which includes graduation under an individual graduation committee as allowed by TEC, Assessment requirements for students who have TAKS (including TAAS and TEAMS) as their graduation requirement are listed in 19 TAC , which now includes TEC, Concerning the request to expedite the rulemaking process, the agency must comply with the processes and timelines for the adoption of rules established by Texas Government Code, Chapter 2001, and the Secretary of State. Comment: Cameron ISD, one school district administrator, and employees from eight school districts raised concerns regarding the use of the phrase "individual graduation committee" in the proposed amendment to 19 TAC (g), stating that the phrase is not included in SB 463. Agency Response: The agency agrees. SB 463 references the "school district" and does not include the phrase "individual graduation committee." Therefore, (g) has been modified at adoption to eliminate the phrase. Comment: A school district employee raised concerns about references to the separate STAAR English II Reading and STAAR English II Writing EOC assessments, which are no longer administered. The commenter noted that passing scores for each component (reading and writing) of the current combined STAAR English II EOC assessment are needed for former students who may need to take only part of that test to fulfill their assessment requirements for graduation. Agency Response: The agency agrees. Because the separate STAAR English II Reading and STAAR English II Writing EOC assessments are no longer administered, passing scores for these separate tests have been removed at adoption from the chart in Figure: 19 TAC (a). Additionally, passing scores for each of the two components (reading and writing) of the current combined STAAR English II EOC assessment have been established specifically for those former students who may need to take and pass only the reading component or only the writing component of this test to fulfill their assessment requirement for graduation. 42 TexReg 6146 November 3, 2017 Texas Register

91 Comment: An individual expressed support for the proposed amendments, noting that the amendments would allow former students to graduate and qualify for more jobs. A school district employee also expressed support for the proposed amendments, commenting that the adoption of the amendments would provide the commenter's child with the opportunity to obtain the high school diploma needed to pursue life goals. Agency Response: The agency agrees. SB 463 and SB 1005 provide former students whose assessment graduation requirement is TAKS (including former TAAS and TEAMS students) additional paths toward meeting graduation requirements and earning a high school diploma. SUBCHAPTER CC. COMMISSIONER'S RULES CONCERNING IMPLEMENTATION OF THE ACADEMIC CONTENT AREAS TESTING PROGRAM DIVISION 2. PARTICIPATION AND ASSESSMENT REQUIREMENT FOR GRADUATION 19 TAC STATUTORY AUTHORITY. The amendment is adopted under the Texas Education Code (TEC), , as added by Senate Bill (SB) 463, 85th Texas Legislature, Regular Session, 2017, which requires the commissioner by rule to establish a procedure to determine whether certain former students, who have met curriculum requirements for graduation but have not performed satisfactorily on an assessment instrument, may qualify to graduate and receive a high school diploma; and TEC, , as amended by SB 463 and SB 1005, 85th Texas Legislature, Regular Session, 2017, which establishes the secondary-level performance required to receive a Texas high school diploma, establishes alternate assessment options for students who entered Grade 9 prior to the school year or Grade 10 or above in the school year, and requires the commissioner to establish satisfactory performance levels on the alternate assessments. CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code, and Assessment Requirements for Students First Enrolled in Grade 9 Prior to School Year or First Enrolled in Grade 10 or Above in School Year. (a) Students who were first enrolled in Grade 9 prior to the school year or enrolled in Grade 10 or above in the school year must fulfill testing requirements for graduation with the assessments required by the Texas Education Code (TEC), (c), as that section existed before amendment by Senate Bill (SB) 1031, 80th Texas Legislature, For purposes of this section, coursework necessary to graduate means all the coursework required under the student's graduation plan. (b) For a student who is receiving special education services under the TEC, Chapter 29, Subchapter A, who is enrolled above Grade 9 in the school year and for whom an IEP specifies that the student shall take a modified version of an assessment, the modified assessments as required by the TEC, , as that section existed before amendment by SB 1031, 80th Texas Legislature, 2007, will continue to be the student's assessment requirement. (c) With the exception of students who meet the criteria described in subsection (d) of this section, students who were enrolled as follows shall fulfill testing requirements for graduation with the assessments as required by the TEC, (c), as that section existed before amendment by SB 1031, 80th Texas Legislature, 2007, with the applicable performance standards established by the commissioner of education and published on the Texas Education Agency (TEA) website: (1) in Grade 9 or higher on January 1, 2001, regardless of when they are scheduled to graduate; or (2) in Grade 8 or lower on January 1, 2001, if they were on an accelerated track and fulfilled all coursework necessary to graduate by September 1, (d) A student who entered Grade 11 in the school year or an earlier school year shall fulfill testing requirements for graduation with assessments as required by the TEC, (c), as that section existed before amendment by SB 1031, 80th Texas Legislature, 2007, under an applicable performance standard established by the commissioner of education that corresponds to the performance standard in effect for the exit-level Texas Educational Assessment of Minimum Skills (TEAMS) when the student was first eligible to take the exit-level TEAMS. Performance standards that apply to TEAMS students will be published on the TEA website. (e) A student fulfilling testing requirements under subsection (c) of this section will be required to take only those sections of the exit-level Texas Assessment of Knowledge and Skills (TAKS) that correspond to the subject areas formerly assessed by the exit-level Texas Assessment of Academic Skills (TAAS) (reading, writing, and mathematics) for which the student has not yet met the passing standard. (1) If a student has not yet met the passing standard on TAAS reading, the student will be administered only the reading multiple-choice items from the TAKS English language arts (ELA) test. (2) If a student has not yet met the passing standard on TAAS writing, the student will be administered only the writing prompt and the revising and editing multiple-choice items from the TAKS ELA test. (f) A student fulfilling testing requirements under subsection (d) of this section will be required to take only those sections of the exitlevel TAKS that correspond to the subject areas formerly assessed by the exit-level TEAMS (reading and mathematics) for which the student has not yet met the passing standard. If a student has not yet met the passing standard on TAAS reading, the student will be administered only the reading multiple-choice items from the TAKS ELA test. (g) Effective beginning with the school year, a student who has taken but failed to meet assessment graduation requirements under this section may receive a Texas high school diploma if the student has qualified to graduate in accordance with the TEC, (1) A student may not graduate under TEC, if the student did not take each assessment instrument or the part of the assessment instrument for which the student has not performed satisfactorily at least three times. (2) This subsection expires September 1, (h) Notwithstanding any of the requirements in subsections (a)-(g) of this section, students who pass all of the required exit-level TAKS tests or meet the alternate assessment requirements of Chapter 101, Subchapter DD, of this title (relating to Commissioner's Rules Concerning Substitute Assessments for Graduation) have fulfilled their testing requirements for graduation. ADOPTED RULES November 3, TexReg 6147

92 (i) Beginning with the school year, students first enrolled in Grade 9 or lower must fulfill testing requirements for graduation with the end-of-course assessment instruments, as specified in the TEC, (c), as amended by SB 1031, 80th Texas Legislature, 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 October 16, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Effective date: November 5, 2017 Proposal publication date: August 18, 2017 For further information, please call: (512) SUBCHAPTER DD. COMMISSIONER'S RULES CONCERNING SUBSTITUTE ASSESSMENTS FOR GRADUATION 19 TAC STATUTORY AUTHORITY. The amendment is adopted under the Texas Education Code, , as amended by Senate Bill (SB) 463 and SB 1005, 85th Texas Legislature, Regular Session, 2017, which establishes the secondary-level performance required to receive a Texas high school diploma, establishes alternate assessment options for students who entered Grade 9 prior to the school year or Grade 10 or above in the school year, and requires the commissioner to establish satisfactory performance levels on the alternate assessments. CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code, Texas Assessment of Knowledge and Skills Exit-Level Alternate Assessments. (a) In accordance with the Texas Education Code (TEC), Chapter 39, Subchapter B, the commissioner of education adopts certain assessments as provided in the figure in this subsection as alternate assessments that a person may use in place of corresponding Texas Assessment of Knowledge and Skills (TAKS) exit-level assessments beginning in the fall of Figure: 19 TAC (a) (b) An eligible person who has met the passing standard on a state-approved alternate exit-level assessment as set by the commissioner and provided in the figure in subsection (a) of this section in a particular subject area has satisfied the exit-level testing requirement in that subject area. (c) A person is eligible to substitute an alternate exit-level assessment for a TAKS exit-level assessment for purposes of this subchapter if the person was first enrolled in Grade 9 prior to the school year or first enrolled in Grade 10 or above in the school year. 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 October 16, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Effective date: November 5, 2017 Proposal publication date: August 18, 2017 For further information, please call: (512) CHAPTER 110. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR ENGLISH LANGUAGE ARTS AND READING SUBCHAPTER C. HIGH SCHOOL 19 TAC The State Board of Education (SBOE) adopts new , concerning Texas Essential Knowledge and Skills (TEKS) for English language arts and reading. New is adopted without changes to the proposed text as published in the May 19, 2017, issue of the Texas Register (42 TexReg 2620) and will not be republished. New are adopted with changes to the proposed text as published in the May 19, 2017 issue of the Texas Register (42 TexReg 2620). The adopted new sections add new English language arts and reading TEKS for high school for implementation in the school year. REASONED JUSTIFICATION. Applications for appointment to English and Spanish language arts and reading TEKS review committees were accepted by the Texas Education Agency (TEA) from March 5, 2015, through April 6, The applications received were provided to SBOE members at the April 2015 meeting, and nominations for English and Spanish language arts and reading TEKS review committees and appointments of expert reviewers were made in spring Committee members were notified of the appointment in July The expert reviewers completed their review of the current TEKS and submitted initial reports to the SBOE in July Committee members participated in a training webinar in August 2015 in preparation for the first face-to-face meeting. The English and Spanish language arts and reading TEKS review committees convened in Austin in September 2015 to begin work on draft recommendations for the TEKS. The committees convened again in November 2015 to complete their initial draft recommendations. In December 2015, the first draft recommendations were provided to the board and to the board-appointed expert reviewers and posted to the TEA website for informal public feedback. In accordance with the board's review process, each of the expert reviewers and one member of each TEKS review committee presented invited testimony at the January 2016 meeting. The English and Spanish language arts and reading TEKS review committees convened for a third time in February 2016 in order to review feedback and work on the vertical alignment of 42 TexReg 6148 November 3, 2017 Texas Register

93 the TEKS across grade levels and subjects. At the request of the board chair, representatives from each of the vertical alignment committees were asked to attend the April 2016 meeting to answer questions from board members. At that time, the board provided additional direction for the English and Spanish language arts and reading TEKS committee members to address at their next meeting. The committees met for a fourth time in April 2016 to address the board's direction and finalize their recommendations for revisions to the English and Spanish language arts and reading TEKS. The English and Spanish language arts and reading TEKS committees' final recommendations were provided to the board-appointed expert reviewers and posted to the TEA website in June Representatives from the TEKS review committees convened in Austin in June 2016 to review the drafts and provide feedback regarding whether the recommended TEKS for each grade level or course can reasonably be taught within the amount of time typically allotted for the subject or course prior to the end of the school year or a state end-of-course assessment required by TEC, , as applicable. At the July 2016 meeting, the committee heard invited testimony from board-appointed expert reviewers regarding their feedback on the English and Spanish language arts and reading TEKS review committees' final recommendations. At that meeting, the board discussed next steps, reviewed timeline considerations for issuance of a proclamation for instructional materials for English and Spanish language arts and reading, and requested that staff make technical edits to the proposed revisions. The board also requested that the SBOE-appointed experts review the edited final recommendations and make suggestions to ensure the appropriate vertical alignment of the proposed TEKS. Additionally, the board requested feedback on the proposed revisions to the English language arts and reading TEKS from the Texas Higher Education Coordinating Board. The expert reviewers met in August 2016 and again in November 2016 to work on their recommendations for revisions to the English and Spanish language arts and reading TEKS. The expert reviewers also met virtually with representatives from the Texas Higher Education Coordinating Board panel to discuss higher education recommendations. Drafts resulting from that work were provided at the November 2016 meeting. At that time, the SBOE requested that the expert reviewers finalize their recommendations. The expert reviewers conducted virtual meetings in November 2016 and December 2016 to complete their recommendations. The proposed new sections for the Kindergarten-Grade 12 English and Spanish language arts and reading TEKS were presented for first reading and filing authorization at the January/February 2017 meeting, and a public hearing on the proposed new sections was held at that time. At the meeting, the SBOE approved for first reading and filing authorization proposed new English and Spanish language arts and reading TEKS for Kindergarten-Grade 8. However, the board postponed action on proposed new English and Spanish language arts and reading TEKS for high school until the April 2017 meeting. The new sections were approved by the SBOE for first reading and filing authorization at its April 21, 2017 meeting and for second reading and final adoption at its June 23, 2017 meeting. In accordance with the TEC, 7.102(f), the SBOE approved the new sections for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the school year. The earlier effective date will enable districts to begin preparing for implementation of the revised English and Spanish language arts and reading TEKS. The following changes were made to adopted new 19 TAC Chapter 110, Subchapters C, since published as proposed English Language Arts and Reading, English I (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The student expectation in subsection (c)(1)(a) was amended to read, "engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes." The student expectation in subsection (c)(1)(c) was amended to replace the word "presentations" with "a presentation." The student expectation in subsection (c)(2)(c) was amended to add the phrase "bona fide," delete the word "emptor" from the phrase "caveat emptor," and delete the phrase "pas de deux." The student expectation in subsection (c)(4)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(4)(h) was amended to add the phrase "from two texts" after the phrase "synthesize information." The student expectation in subsection (c)(5)(c) was amended to add the phrase "and original commentary" after "text evidence" and to replace the phrase "an appropriate" with the phrase "a comprehensive." The student expectation in subsection (c)(5)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(6)(a) was amended to replace "analyze how different authors present similar themes across texts using text evidence" with "analyze how themes are developed through characterization and plot in a variety of literary texts." The student expectation in subsection (c)(7)(a) was amended to specify that students must read and respond to American, British, and world literature. The student expectation in subsection (c)(7)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of types of different counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectation in subsection (c)(8)(e) was amended to delete the phrase "point of view." The student expectation in subsection (c)(9)(b)(i) was amended to replace "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across ADOPTED RULES November 3, TexReg 6149

94 paragraphs, and a conclusion" with "using an organizing structure appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(9)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "fluency, including parallel structure" with the phrase "effectiveness, including use of parallel constructions and placement of phrases and dependent clauses." The student expectation in subsection (c)(10)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. The student expectation in subsection (c)(11)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(11)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(11)(g) was deleted and reinserted as new subsection (c)(11)(f). The student expectation in subsection (c)(11)(h) was amended to add the phrase "including for paraphrased and quoted text" after the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." Technical corrections were also made English Language Arts and Reading, English II (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The student expectation in subsection (c)(1)(a) was amended to read, "engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes." The student expectation in subsection (c)(1)(c) was amended to replace the phrase "advance a coherent argument" with the phrase "give a formal presentation." The student expectation in subsection (c)(2)(b) was amended to replace the word "between" with the word "among" and add the word "connotative" between denotative and figurative. The student expectation in subsection (c)(2)(c) was amended to add the phrase "pas de deux" to the list of foreign words or phrases frequently used in English. The student expectation in subsection (c)(4)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(4)(h) was amended to add the phrase "from multiple texts" after the phrase "synthesize information." The student expectation in subsection (c)(5)(c) was amended to add the phrase "and original commentary" after "text evidence" and to replace the word "appropriate" with the word "interpretive." The student expectation in subsection (c)(5)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(6)(a) was amended to replace "compare and contrast differences in similar themes expressed across a variety of works" with "analyze how themes are developed through characterization and plot, including comparing similar themes in a variety of literary texts representing different cultures." The student expectation in subsection (c)(6)(b) was amended to read, "analyze how authors develop complex yet believable characters, including archetypes, though historical and cultural settings and events." The student expectation in subsection (c)(6)(d) was amended to read, "analyze how historical and cultural settings influence characterization, plot, and theme across texts." The student expectation in subsection (c)(7)(a) was amended to specify that students must read and analyze world literature. The student expectation in subsection (c)(7)(b) was amended to add "types of rhymes" after "rhyme schemes." The student expectation in subsection (c)(7)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of types of different counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectation in subsection (c)(8)(e) was amended to delete the phrase "point of view." The student expectation in subsection (c)(8)(g) was amended to add the phrase "and the effects of logical fallacies." The student expectation in subsection (c)(9)(b)(i) was amended to replace "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across paragraphs, and a conclusion" with "using an organizing structure appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(9)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "fluency, including parallel structure" with the phrase "effectiveness, including use of parallel constructions and placement of phrases and dependent clauses." The student expectation in subsection (c)(9)(d)(v) was amended to replace brackets and ellipses with parentheses in the list of standard English conventions students are expected to use. The student expectation in subsection (c)(10)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. The student expectation in subsection (c)(11)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(11)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(11)(g) was deleted and reinserted as new subsection (c)(11)(f). The student expectation in subsection (c)(11)(h) was amended to add the phrase "including for paraphrased and quoted text" af- 42 TexReg 6150 November 3, 2017 Texas Register

95 ter the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." Technical corrections were also made , English Language Arts and Reading, English III (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The student expectation in subsection (c)(1)(a) was amended to read, "engage in meaningful and respectful discourse when evaluating the clarity and coherence of a speaker's message and critiquing the impact of a speaker's use of diction and syntax." The student expectation in subsection (c)(4)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(4)(g) was amended to replace the word "determine" with the word "understand." The student expectation in subsection (c)(4)(h) was amended to add the phrase "from a variety of text types" after the phrase "synthesize information." The student expectation in subsection (c)(4)(i) was amended to add the phrase "using outside sources" to the list of adjustments students can make when understanding breaks down. The student expectation in subsection (c)(5)(b) was amended to replace the word "understanding" with the word "analysis." The student expectation in subsection (c)(5)(c) was amended to add the phrase "and original commentary" after the phrase "use text evidence" and replace the word "appropriate" with the word "analytic." The student expectation in subsection (c)(5)(g) was amended to replace the word "or" with the word "and." The student expectation in subsection (c)(5)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(6)(a) was amended to replace "analyze themes representing different cultures across texts using text evidence" with "analyze relationships among thematic development, characterization, point of view, significance of setting, and plot in a variety of literary texts." The student expectation in subsection (c)(6)(b) was amended to replace "analyze differences in characters' moral dilemmas in works of fiction across different countries or cultures" with "analyze how characters' behaviors and underlying motivations contribute to moral dilemmas that influence the plot and theme." The student expectation in subsection (c)(6)(d) was amended to read, "analyze how the historical, social, and economic context of setting(s) influences the plot, characterization, and theme." The student expectation in subsection (c)(7)(a) was amended to specify that students must read and analyze American literature. The student expectation in subsection (c)(7)(b) was amended to add the phrase "characteristics of poetry, including" and to delete "open/closed poetic forms." The student expectation in subsection (c)(7)(c) was amended to replace "analyze the function of archetypes and motifs" with "analyze how the relationships among dramatic elements advance the plot." The student expectation in subsection (c)(7)(d)(i) was amended to replace the word "relevant" with the word "strong." The student expectation in subsection (c)(7)(e)(i) was amended to add the phrase "call to action." The student expectation in subsection (c)(7)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of different types of counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectation in subsection (c)(7)(f) was amended to add the phrase "the effectiveness of" after the word "analyze." The student expectation in subsection (c)(8)(g) was amended to replace the word "effect" with the word "effects" and to add the phrase "and logical fallacies" after the phrase "rhetorical devices." The student expectation in subsection (c)(9)(b)(i) was amended to replace the phrase "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across paragraphs, and a conclusion" with the phrase "using strategic organizational structures appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(9)(b)(ii) was amended to replace the word "reasons" with the phrase "effective use of rhetorical devices." The student expectation in subsection (c)(9)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "including parallel structure" with the phrase "both within and between sentences." The student expectation in subsection (c)(10)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. A new student expectation in subsection (c)(10)(e) was added to read, "compose literary analysis using genre characteristics and craft." The student expectation in subsection (c)(11)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(11)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(11)(g) was deleted and reinserted as new subsection (c)(11)(f). The student expectation in subsection (c)(11)(h) was amended to add the phrase "including for paraphrased and quoted text" after the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." Technical corrections were also made. ADOPTED RULES November 3, TexReg 6151

96 110.39, English Language Arts and Reading, English IV (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The student expectation in subsection (c)(1)(a) was amended to replace "assess the persuasiveness of a presentation based on content, diction, rhetorical strategies, and delivery" with "engage in meaningful and respectful discourse when evaluating the clarity and coherence of a speaker's message and critiquing the impact of a speaker's use of diction, syntax, and rhetorical strategies." The student expectation in subsection (c)(1)(c) was amended to replace the word "by" with the phrase "and present" and add the word "employing" before the phrase "eye contact." The student expectation in subsection (c)(2)(c) was amended to delete the phrase "bona fide" and add the phrase "caveat emptor." The student expectation in subsection (c)(4)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(4)(g) was amended to replace the word "determine" with the word "analyze." The student expectation in subsection (c)(4)(h) was amended to add the phrase "from a variety of text types" after the phrase "synthesize information." The student expectation in subsection (c)(4)(i) was amended to add the phrase "and using outside sources" to the list of adjustments students can make when understanding breaks down. The student expectation in subsection (c)(5)(b) was amended to replace the word "understanding" with the word "analysis." The student expectation in subsection (c)(5)(c) was amended to add the phrase "original commentary" after the phrase "text evidence" and replace the word "appropriate" with the word "evaluative." The student expectation in subsection (c)(5)(g) was amended to replace the word "or" with the word "and." The student expectation in subsection (c)(5)(h) was amended to add the phrase "and purposeful" before the word "vocabulary." The student expectation in subsection (c)(5)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(6)(b) was amended to read, "analyze how characters' behaviors and underlying motivations contribute to moral dilemmas that influence the plot and theme." The student expectation in subsection (c)(6)(c) was amended to specify that students should critique and evaluate how complex plot structures contribute to and advance the action. The student expectation in subsection (c)(6)(d) was amended to read, "evaluate how the historical, social, and economic context of setting(s) influences the plot, characterization, and theme." The student expectation in subsection (c)(7)(a) was amended to specify that students must read and analyze British literature. The student expectation in subsection (c)(7)(b) was amended to replace the phrase "changes in" with the phrase "effects of." The student expectation in subsection (c)(7)(d)(i) was amended to replace the word "relevant" with the word "effective." The student expectation in subsection (c)(7)(e)(i) was amended to add the phrase "and call to action." The student expectation in subsection (c)(7)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of different types of counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectation in subsection (c)(7)(f) was amended to add the phrase "the effectiveness of." The student expectation in subsection (c)(8)(a) was amended to replace the word "analyze" with the word "evaluate." The student expectation in subsection (c)(8)(f) was amended to replace the phrase "mood, voice, and tone" with the word "effectiveness." The student expectation in subsection (c)(8)(g) was amended to replace the word "effect" with "effects" and to add the phrase "and logical fallacies" after "rhetorical devices." The student expectation in subsection (c)(9)(b)(i) was amended to replace the phrase "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across paragraphs, and a conclusion" with the phrase "using strategic organizational structures appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(9)(b)(ii) was amended to replace the word "reasons" with the phrase "effective use of rhetorical devices." The student expectation in subsection (c)(9)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "including parallel structure" with the phrase "both within and between sentences." The student expectation in subsection (c)(10)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. A new student expectation in subsection (c)(10)(f) was added to read, "compose rhetorical analysis using genre characteristics and craft." The student expectation in subsection (c)(11)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(11)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(11)(g) was deleted and reinserted as new subsection (c)(11)(f). The student expectation in subsection (c)(11)(h) was amended to add the phrase "including for paraphrased and quoted text" after the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." 42 TexReg 6152 November 3, 2017 Texas Register

97 Technical corrections were also made. SUMMARY OF COMMENTS AND RESPONSES. Following is a summary of the public comments received and the corresponding responses regarding proposed new 19 TAC Chapter 110, Subchapter C. Comment. One teacher expressed concern that the proposed student expectation in (c)(8)(G) is challenging for a 14-year-old and may be better suited in English II. Response. The SBOE disagrees and has determined that skills in the student expectation in (c)(8)(G) are appropriately included in English I. Comment. One teacher expressed concern that it would be difficult to adapt the Springboard curriculum, which is used by many districts, to address the proposed student expectation in (c)(7)(B). Response. This comment is outside the scope of the proposed rulemaking. Comment. One teacher questioned whether "post hoc-ad hoc" is the correct terminology to include as a type of faulty reasoning in the proposed student expectation in (c)(11)(F)(ii). Response. The SBOE disagrees and has determined that "post hoc-ad hoc" is appropriately used in (c)(11)(F)(ii). Comment. One teacher requested that the SBOE delay final adoption of the high school TEKS until the September 2017 SBOE meeting. The commenter stated that because the revised Kindergarten-Grade 8 TEKS have not yet been published, a thorough review of the vertical alignment between Kindergarten-Grade 8 and high school cannot be completed. Response. The SBOE disagrees and has determined that the high school TEKS are appropriately vertically aligned with the Kindergarten-Grade 8 TEKS. The SBOE also took action to approve additional changes to the proposed TEKS to respond to other comments. Comment. One teacher commented in support of the inclusion of proposed student expectations for independent reading in English I and II. Response. The SBOE agrees. The SBOE also took action to approve additional changes to the proposed TEKS to respond to other comments. Comment. Six teachers, two administrators, fifteen community members, and four university/college staff members recommended removing the phrase "grade appropriate texts" from the proposed knowledge and skills statement (3) for English I-IV. Response. The SBOE disagrees and has determined that the phrase "grade-appropriate texts" is appropriately included in English I-IV as proposed. Comment. Six teachers, two administrators, fifteen community members, and four university/college staff members recommended moving the phrase "self-select text and read independently for a sustained period of time" from the proposed knowledge and skills statement (3) and creating a new student expectation with the phrase for English I-IV. Response. The SBOE disagrees and has determined that the knowledge and skills statement is appropriate as proposed. Comment. Six teachers, two administrators, fifteen community members, and four university/college staff members recommended adding a new student expectation to the proposed knowledge and skills statement (3) to read, "read for a variety of purposes" for English I-IV. Response. The SBOE disagrees that the suggested addition is necessary and has determined that the knowledge and skills statement and student expectation are appropriate as proposed. Comment. One teacher expressed concern that it would be very difficult to teach all of the proposed standards for middle school in one school year to students who are learning a second language. Response. This comment is outside the scope of the proposed rulemaking. Comment. One teacher stated that an objective takes an average of two weeks to teach; therefore, it is impossible to cover all of the proposed standards in one school year. The commenter requested that the idea of "essential" be revisited when writing and approving proposed new standards and asked for guidance regarding which student expectations must be taught. Response. The SBOE disagrees and has determined that the scope of the proposed TEKS for high school is appropriate as proposed. Based on feedback on the amount of instructional time received, the SBOE determined that no additional adjustments to the proposed TEKS for high school were necessary. Comment. One teacher stated that the proposed TEKS would require teachers to teach a combination of American, British, and world literature across English I-IV. The commenter added that, while teachers reference texts from various literature that students have read previously, high schools commonly teach American literature in 11th grade and British literature in 12th grade and students do not read a variety of texts at those grade levels. Response. The SBOE agrees that additional clarification was needed. In response to this and other comments, the SBOE took action to require that students read and analyze world literature in English II, American literature in English III, and British literature in English IV. Comment. One teacher commented in support of the inclusion of the requirement that students study American, British, and world literature across literary periods in all four English courses. The commenter stated that it is imperative that diverse students learn about valuable readings and writings from various countries. Response. The SBOE disagrees that American, British, and world literature should be required in each course. In response to other comments the SBOE took action to require that students read and analyze world literature in English II, American literature in English III, and British literature in English IV. Comment. One teacher expressed concern that the proposed student expectations on composition are very open-ended, while State of Texas Assessments of Academic Readiness (STAAR ) end-of-course (EOC) essays have a specific, pre-determined genre. The commenter stated that the specificity of STAAR EOC essays guides instruction and asked why the proposed new TEKS and the test do not align. Response. This comment is outside the scope of the proposed rulemaking. Comment. One teacher stated that covering all of the proposed student expectations for grammar could be difficult. Response. The SBOE disagrees and has determined that the scope of the student expectations related to grammar is appropriate. The SBOE took action to approve additional changes to ADOPTED RULES November 3, TexReg 6153

98 student expectations related to grammar in response to other comments. Comment. One teacher stated that the introductions for the proposed new TEKS state that there are seven strands, but when examining the knowledge and skills statements, the standards appear to be grouped as thirteen different strands, which makes it difficult to determine the organization of the strands and how to connect the strands to lessons. Response. The SBOE disagrees that it is difficult to determine the organization of the strands and provides the following clarification. There are seven strands and seven substrands in the proposed new TEKS. STATUTORY AUTHORITY. The new sections are adopted under the Texas Education Code (TEC), 7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, , which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, , which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, CROSS REFERENCE TO STATUTE. The new sections implement the Texas Education Code, 7.102(c)(4), , and English Language Arts and Reading, English I (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. (b) Introduction. (1) The English language arts and reading Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. The strands are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in order to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of the essential knowledge and skills for English language arts and reading are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) English language learners (ELLs) are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. The student is expected to: (A) engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes; (B) follow and give complex oral instructions to perform specific tasks, answer questions, or solve problems and complex processes; (C) give a presentation using informal, formal, and technical language effectively to meet the needs of audience, purpose, and occasion, employing eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and conventions of language to communicate ideas effectively; and 42 TexReg 6154 November 3, 2017 Texas Register

99 (D) participate collaboratively, building on the ideas of others, contributing relevant information, developing a plan for consensus building, and setting ground rules for decision making. (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. The student is expected to: (A) use print or digital resources such as glossaries or technical dictionaries to clarify and validate understanding of the precise and appropriate meaning of technical or discipline-based vocabulary; (B) analyze context to distinguish between the denotative and connotative meanings of words; and (C) determine the meaning of foreign words or phrases used frequently in English such as bona fide, caveat, carte blanche, tête-à-tête, bon appétit, and quid pro quo. (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade-appropriate texts independently. The student is expected to self-select text and read independently for a sustained period of time. (4) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and deepen comprehension of increasingly complex texts. The student is expected to: (A) establish purpose for reading assigned and self-selected texts; (B) generate questions about text before, during, and after reading to deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; (F) make inferences and use evidence to support understanding; (G) evaluate details read to determine key ideas; (H) synthesize information from two texts to create new understanding; and (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, and annotating when understanding breaks down. (5) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. The student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate understanding of texts, including comparing texts within and across genres; (C) use text evidence and original commentary to support a comprehensive response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit or implicit meanings of text; (H) respond orally or in writing with appropriate register, vocabulary, tone, and voice; (I) warrants; and reflect on and adjust responses when valid evidence (J) defend or challenge the authors' claims using relevant text evidence. (6) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. The student is expected to: (A) analyze how themes are developed through characterization and plot in a variety of literary texts; (B) analyze how authors develop complex yet believable characters in works of fiction through a range of literary devices, including character foils; (C) analyze non-linear plot development such as flashbacks, foreshadowing, subplots, and parallel plot structures and compare it to linear plot development; and (D) analyze how the setting influences the theme. (7) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. The student is expected to: literature; (A) read and respond to American, British, and world (B) analyze the structure, prosody, and graphic elements such as line length and word position in poems across a variety of poetic forms; (C) analyze the function of dramatic conventions such as asides, soliloquies, dramatic irony, and satire; (D) analyze characteristics and structural elements of informational texts such as: (i) clear thesis, relevant supporting evidence, pertinent examples, and conclusion; and (ii) develop the thesis; multiple organizational patterns within a text to (E) analyze characteristics and structural elements of argumentative texts such as: conclusion; (i) clear arguable claim, appeals, and convincing (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and texts. (F) (iii) identifiable audience or reader; and analyze characteristics of multimodal and digital ADOPTED RULES November 3, TexReg 6155

100 (8) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. The student is expected to: (A) analyze the author's purpose, audience, and message within a text; purpose; (B) analyze use of text structure to achieve the author's (C) evaluate the author's use of print and graphic features to achieve specific purposes; (D) analyze how the author's use of language achieves specific purposes; (E) analyze the use of literary devices such as irony and oxymoron to achieve specific purposes; (F) analyze how the author's diction and syntax contribute to the mood, voice, and tone of a text; and (G) explain the purpose of rhetorical devices such as understatement and overstatement and the effect of logical fallacies such as straw man and red herring arguments. (9) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. The student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using an organizing structure appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with specific details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence effectiveness, including use of parallel constructions and placement of phrases and dependent clauses; (D) edit drafts using standard English conventions, including: (i) a variety of complete, controlled sentences and avoidance of unintentional splices, run-ons, and fragments; (ii) consistent, appropriate use of verb tense and active and passive voice; (iii) pronoun-antecedent agreement; (iv) correct capitalization; (v) punctuation, including commas, semicolons, colons, and dashes to set off phrases and clauses as appropriate; and (vi) correct spelling; and (E) publish written work for appropriate audiences. (10) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. The student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; and (D) compose correspondence in a professional or friendly structure. (11) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. The student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) (F) (G) (i) locate relevant sources; synthesize information from a variety of sources; examine sources for: credibility and bias, including omission; and (ii) faulty reasoning such as ad hominem, loaded language, and slippery slope; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) use an appropriate mode of delivery, whether written, oral, or multimodal, to present results English Language Arts and Reading, English II (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. (b) Introduction. (1) The English language arts and reading Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. The strands are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in order to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of the essential knowledge and skills for English language arts and reading are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, 42 TexReg 6156 November 3, 2017 Texas Register

101 and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) English language learners (ELLs) are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. The student is expected to: (A) engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes; (B) follow and give complex oral instructions to perform specific tasks, answer questions, or solve problems and complex processes; (C) give a formal presentation that incorporates a clear thesis and a logical progression of valid evidence from reliable sources and that employs eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and conventions of language to communicate ideas effectively; and (D) participate collaboratively, building on the ideas of others, contributing relevant information, developing a plan for consensus building, and setting ground rules for decision making. (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. The student is expected to: (A) use print or digital resources such as glossaries or technical dictionaries to clarify and validate understanding of the precise and appropriate meaning of technical or discipline-based vocabulary; (B) analyze context to distinguish among denotative, connotative, and figurative meanings of words; and (C) determine the meaning of foreign words or phrases used frequently in English such as pas de deux, status quo, déjà vu, avant-garde, and coup d'état. (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade-appropriate texts independently. The student is expected to self-select text and read independently for a sustained period of time. (4) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and deepen comprehension of increasingly complex texts. The student is expected to: establish purpose for reading assigned and self-se- (A) lected texts; (B) generate questions about text before, during, and after reading to deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; make inferences and use evidence to support understanding; (F) (G) evaluate details read to determine key ideas; (H) synthesize information from multiple texts to create new understanding; and (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, and annotating when understanding breaks down. (5) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. The student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate understanding of texts, including comparing texts within and across genres; ADOPTED RULES November 3, TexReg 6157

102 (C) use text evidence and original commentary to support an interpretive response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit or implicit meanings of text; (H) respond orally or in writing with appropriate register, vocabulary, tone, and voice; (I) reflect on and adjust responses when valid evidence warrants; and (J) defend or challenge the authors' claims using relevant text evidence. (6) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. The student is expected to: (A) analyze how themes are developed through characterization and plot, including comparing similar themes in a variety of literary texts representing different cultures; (B) analyze how authors develop complex yet believable characters, including archetypes, through historical and cultural settings and events; (C) analyze isolated scenes and their contribution to the success of the plot as a whole; and (D) analyze how historical and cultural settings influence characterization, plot, and theme across texts. (7) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. The student is expected to: (A) read and analyze world literature across literary periods; (B) analyze the effects of metrics; rhyme schemes; types of rhymes such as end, internal, slant, and eye; and other conventions in poems across a variety of poetic forms; (C) analyze the function of dramatic conventions such as asides, soliloquies, dramatic irony, and satire; (D) analyze characteristics and structural elements of informational texts such as: (i) clear thesis, relevant supporting evidence, pertinent examples, and conclusion; and (ii) the relationship between organizational design and thesis; (E) analyze characteristics and structural elements of argumentative texts such as: (i) clear arguable claim, appeals, and convincing conclusion; (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and (iii) identifiable audience or reader; and (F) analyze characteristics of multimodal and digital texts. (8) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. The student is expected to: (A) analyze the author's purpose, audience, and message within a text; (B) analyze use of text structure to achieve the author's purpose; (C) evaluate the author's use of print and graphic features to achieve specific purposes; (D) analyze how the author's use of language informs and shapes the perception of readers; (E) analyze the use of literary devices such as irony, sarcasm, and motif to achieve specific purposes; (F) analyze how the author's diction and syntax contribute to the mood, voice, and tone of a text; and (G) analyze the purpose of rhetorical devices such as appeals, antithesis, parallelism, and shifts and the effects of logical fallacies. (9) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. The student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using an organizing structure appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with specific details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence effectiveness, including use of parallel constructions and placement of phrases and dependent clauses; (D) edit drafts using standard English conventions, including: (i) a variety of complete, controlled sentences and avoidance of unintentional splices, run-ons, and fragments; (ii) consistent, appropriate use of verb tense and active and passive voice; (iii) pronoun-antecedent agreement; (iv) correct capitalization; (v) punctuation, including commas, semicolons, colons, dashes, and parentheses to set off phrases and clauses as appropriate; and 42 TexReg 6158 November 3, 2017 Texas Register

103 (vi) correct spelling; and (E) publish written work for appropriate audiences. (10) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. The student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; and (D) compose correspondence in a professional or friendly structure. (11) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. The student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) locate relevant sources; (F) synthesize information from a variety of sources; (G) examine sources for: (i) credibility and bias, including omission; and (ii) faulty reasoning such as incorrect premise, hasty generalizations, and either-or; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) use an appropriate mode of delivery, whether written, oral, or multimodal, to present results English Language Arts and Reading, English III (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. (b) Introduction. (1) The English language arts and reading Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. The strands are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in order to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of the essential knowledge and skills for English language arts and reading are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) English language learners (ELLs) are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. The student is expected to: ADOPTED RULES November 3, TexReg 6159

104 (A) engage in meaningful and respectful discourse when evaluating the clarity and coherence of a speaker's message and critiquing the impact of a speaker's use of diction and syntax; (B) follow and give complex instructions, clarify meaning by asking pertinent questions, and respond appropriately; (C) give a formal presentation that exhibits a logical structure, smooth transitions, accurate evidence, well-chosen details, and rhetorical devices and that employs eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and conventions of language to communicate ideas effectively; and (D) participate collaboratively, offering ideas or judgments that are purposeful in moving the team toward goals, asking relevant and insightful questions, tolerating a range of positions and ambiguity in decision making, and evaluating the work of the group based on agreed-upon criteria. (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. The student is expected to: (A) use print or digital resources to clarify and validate understanding of multiple meanings of advanced vocabulary; (B) analyze context to draw conclusions about nuanced meanings such as in imagery; and (C) determine the meaning of foreign words or phrases used frequently in English such as ad hoc, faux pas, non sequitur, and modus operandi. (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade-appropriate texts independently. The student is expected to self-select text and read independently for a sustained period of time. (4) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and deepen comprehension of increasingly complex texts. The student is expected to: (A) establish purpose for reading assigned and self-selected texts; (B) generate questions about text before, during, and after reading to deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; (F) make inferences and use evidence to support understanding; (G) evaluate details read to understand key ideas; (H) synthesize information from a variety of text types to create new understanding; and (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, annotating, and using outside sources when understanding breaks down. (5) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. The student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate analysis of texts, including comparing texts within and across genres; (C) use text evidence and original commentary to support an analytic response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit and implicit meanings of text; (H) respond orally or in writing with appropriate register and effective vocabulary, tone, and voice; (I) warrants; and reflect on and adjust responses when valid evidence (J) defend or challenge the authors' claims using relevant text evidence. (6) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. The student is expected to: (A) analyze relationships among thematic development, characterization, point of view, significance of setting, and plot in a variety of literary texts; (B) analyze how characters' behaviors and underlying motivations contribute to moral dilemmas that influence the plot and theme; (C) evaluate how different literary elements shape the author's portrayal of the plot; and (D) analyze how the historical, social, and economic context of setting(s) influences the plot, characterization, and theme. (7) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. The student is expected to: periods; (A) read and analyze American literature across literary (B) analyze relationships among characteristics of poetry, including stanzas, line breaks, speaker, and sound devices in poems across a variety of poetic forms; (C) analyze how the relationships among dramatic elements advance the plot; (D) analyze characteristics and structural elements of informational texts such as: (i) clear thesis, strong supporting evidence, pertinent examples, commentary, summary, and conclusion; and 42 TexReg 6160 November 3, 2017 Texas Register

105 (ii) the relationship between organizational design and author's purpose; (E) analyze characteristics and structural elements of argumentative texts such as: (i) clear arguable thesis, appeals, structure of the argument, convincing conclusion, and call to action; (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and (iii) identifiable audience or reader; and (F) analyze the effectiveness of characteristics of multimodal and digital texts. (8) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. The student is expected to: (A) analyze the author's purpose, audience, and message within a text; purpose; (B) evaluate use of text structure to achieve the author's (C) evaluate the author's use of print and graphic features to achieve specific purposes; (D) evaluate how the author's use of language informs and shapes the perception of readers; (E) evaluate the use of literary devices such as paradox, satire, and allegory to achieve specific purposes; (F) evaluate how the author's diction and syntax contribute to the mood, voice, and tone of a text; and (G) analyze the effects of rhetorical devices and logical fallacies on the way the text is read and understood. (9) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. The student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using strategic organizational structures appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with effective use of rhetorical devices, details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence fluency, both within and between sentences; (D) edit drafts to demonstrate a command of standard English conventions using a style guide as appropriate; and (E) publish written work for appropriate audiences. (10) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. The student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, resumes, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; (D) compose correspondence in a professional or friendly structure; (E) compose literary analysis using genre characteristics and craft; and compose rhetorical analysis using genre character- (F) istics and craft. (11) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. The student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) (F) (G) (i) locate relevant sources; synthesize information from a variety of sources; examine sources for: credibility, bias, and accuracy; and (ii) faulty reasoning such as post hoc-ad hoc, circular reasoning, red herring, and assumptions; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) use an appropriate mode of delivery, whether written, oral, or multimodal, to present results English Language Arts and Reading, English IV (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. (b) Introduction. (1) The English language arts and reading Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. The strands are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in ADOPTED RULES November 3, TexReg 6161

106 order to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of the essential knowledge and skills for English language arts and reading are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) English language learners (ELLs) are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. The student is expected to: (A) engage in meaningful and respectful discourse when evaluating the clarity and coherence of a speaker's message and critiquing the impact of a speaker's use of diction, syntax, and rhetorical strategies; (B) follow and give complex instructions, clarify meaning by asking pertinent questions, and respond appropriately; (C) formulate sound arguments and present using elements of classical speeches such as introduction, first and second transitions, body, conclusion, the art of persuasion, rhetorical devices, employing eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and conventions of language to communicate ideas effectively; and (D) participate collaboratively, offering ideas or judgments that are purposeful in moving the team toward goals, asking relevant and insightful questions, tolerating a range of positions and ambiguity in decision making, and evaluating the work of the group based on agreed-upon criteria. (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. The student is expected to: (A) use print or digital resources to clarify and validate understanding of multiple meanings of advanced vocabulary; (B) analyze context to draw conclusions about nuanced meanings such as in imagery; and (C) determine the meaning of foreign words or phrases used frequently in English such as ad nauseum, in loco parentis, laissezfaire, and caveat emptor. (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade-appropriate texts independently. The student is expected to self-select text and read independently for a sustained period of time. (4) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and deepen comprehension of increasingly complex texts. The student is expected to: (A) establish purpose for reading assigned and self-selected texts; (B) generate questions about text before, during, and after reading to deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; (F) make inferences and use evidence to support understanding; (G) evaluate details read to analyze key ideas; (H) synthesize information from a variety of text types to create new understanding; and 42 TexReg 6162 November 3, 2017 Texas Register

107 (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, annotating, and using outside sources when understanding breaks down. (5) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. The student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate analysis of texts, including comparing texts within and across genres; (C) use text evidence and original commentary to support an evaluative response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit and implicit meanings of text; (H) respond orally or in writing with appropriate register and purposeful vocabulary, tone, and voice; (I) reflect on and adjust responses when valid evidence warrants; and (J) defend or challenge the authors' claims using relevant text evidence. (6) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. The student is expected to: (A) analyze relationships among thematic development, characterization, point of view, significance of setting, and plot in a variety of literary texts; (B) analyze how characters' behaviors and underlying motivations contribute to moral dilemmas that influence the plot and theme; (C) critique and evaluate how complex plot structures such as subplots contribute to and advance the action; and (D) evaluate how the historical, social, and economic context of setting(s) influences the plot, characterization, and theme. (7) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. The student is expected to: periods; (A) read and analyze British literature across literary (B) analyze the effects of sound, form, figurative language, graphics, and dramatic structure in poetry across literary time periods and cultures; (C) analyze and evaluate how the relationships among the dramatic elements advance the plot; (D) critique and evaluate characteristics and structural elements of informational texts such as: (i) clear thesis, effective supporting evidence, pertinent examples, commentary, summary, and conclusion; and (ii) the relationship between organizational design and author's purpose; (E) critique and evaluate characteristics and structural elements of argumentative texts such as: (i) clear arguable thesis, appeals, structure of the argument, convincing conclusion, and call to action; (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and (iii) identifiable audience or reader; and (F) critique and evaluate the effectiveness of characteristics of multimodal and digital texts. (8) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. The student is expected to: (A) evaluate the author's purpose, audience, and message within a text; purpose; (B) evaluate use of text structure to achieve the author's (C) evaluate the author's use of print and graphic features to achieve specific purposes; (D) critique and evaluate how the author's use of language informs and shapes the perception of readers; (E) evaluate the use of literary devices such as paradox, satire, and allegory to achieve specific purposes; (F) evaluate how the author's diction and syntax contribute to the effectiveness of a text; and (G) analyze the effects of rhetorical devices and logical fallacies on the way the text is read and understood. (9) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. The student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using strategic organizational structures appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with effective use of rhetorical devices, details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence fluency, both within and between sentences; ADOPTED RULES November 3, TexReg 6163

108 (D) edit drafts to demonstrate a command of standard English conventions using a style guide as appropriate; and (E) publish written work for appropriate audiences. (10) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. The student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, resumes, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; (D) compose correspondence in a professional or friendly structure; (E) compose literary analysis using genre characteristics and craft; and (F) compose rhetorical analysis using genre characteristics and craft. (11) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. The student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) locate relevant sources; (F) synthesize information from a variety of sources; (G) examine sources for: (i) credibility, bias, and accuracy; and (ii) faulty reasoning such as straw man, false dilemma, faulty analogies, and non-sequitur; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) use an appropriate mode of delivery, whether written, oral, or multimodal, to present results. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Effective date: November 12, 2017 Proposal publication date: May 19, 2017 For further information, please call: (512) CHAPTER 128. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR SPANISH LANGUAGE ARTS AND READING AND ENGLISH AS A SECOND LANGUAGE SUBCHAPTER C. HIGH SCHOOL 19 TAC The State Board of Education (SBOE) adopts new , concerning Texas Essential Knowledge and Skills (TEKS) for Spanish language arts and reading and English as a second language. New is adopted without changes to the proposed text as published in the May 19, 2017, issue of the Texas Register (42 TexReg 2634) and will not be republished. New are adopted with changes to the proposed text as published in the May 19, 2017,issue of the Texas Register (42 TexReg 2634). The adopted new sections add new English as a second language TEKS for high school for implementation in the school year. REASONED JUSTIFICATION. Applications for appointment to English and Spanish language arts and reading TEKS review committees were accepted by the Texas Education Agency (TEA) from March 5, 2015, through April 6, The applications received were provided to SBOE members at the April 2015 meeting, and nominations for English and Spanish language arts and reading TEKS review committees and appointments of expert reviewers were made in spring Committee members were notified of the appointment in July The expert reviewers completed their review of the current TEKS and submitted initial reports to the SBOE in July Committee members participated in a training webinar in August 2015 in preparation for the first face-to-face meeting. The English and Spanish language arts and reading TEKS review committees convened in Austin in September 2015 to begin work on draft recommendations for the TEKS. The committees convened again in November 2015 to complete their initial draft recommendations. In December 2015, the first draft recommendations were provided to the board and to the board-appointed expert reviewers and posted to the TEA website for informal public feedback. In accordance with the board's review process, each of the expert reviewers and one member of each TEKS review committee presented invited testimony at the January 2016 meeting. The English and Spanish language arts and reading TEKS review committees convened for a third time in February 2016 in order to review feedback and work on the vertical alignment of the TEKS across grade levels and subjects. At the request of the board chair, representatives from each of the vertical alignment committees were asked to attend the April 2016 meeting to answer questions from board members. At that time, the board provided additional direction for the English and Spanish language arts and reading TEKS committee members to address at their next meeting. 42 TexReg 6164 November 3, 2017 Texas Register

109 The committees met for a fourth time in April 2016 to address the board's direction and finalize their recommendations for revisions to the English and Spanish language arts and reading TEKS. The English and Spanish language arts and reading TEKS committees' final recommendations were provided to the board-appointed expert reviewers and posted to the TEA website in June Representatives from the TEKS review committees convened in Austin in June 2016 to review the drafts and provide feedback regarding whether the recommended TEKS for each grade level or course can reasonably be taught within the amount of time typically allotted for the subject or course prior to the end of the school year or a state end-of-course assessment required by TEC, , as applicable. At the July 2016 meeting, the committee heard invited testimony from board-appointed expert reviewers regarding their feedback on the English and Spanish language arts and reading TEKS review committees' final recommendations. At that meeting, the board discussed next steps, reviewed timeline considerations for issuance of a proclamation for instructional materials for English and Spanish language arts and reading, and requested that staff make technical edits to the proposed revisions. The board also requested that the SBOE-appointed experts review the edited final recommendations and make suggestions to ensure the appropriate vertical alignment of the proposed TEKS. Additionally, the board requested feedback on the proposed revisions to the English language arts and reading TEKS from the Texas Higher Education Coordinating Board. The expert reviewers met in August 2016 and again in November 2016 to work on their recommendations for revisions to the English and Spanish language arts and reading TEKS. The expert reviewers also met virtually with representatives from the Texas Higher Education Coordinating Board panel to discuss higher education recommendations. Drafts resulting from that work were provided at the November 2016 meeting. At that time, the SBOE requested that the expert reviewers finalize their recommendations. The expert reviewers conducted virtual meetings in November 2016 and December 2016 to complete their recommendations. The proposed new sections for the Kindergarten-Grade 12 English and Spanish language arts and reading TEKS were presented for first reading and filing authorization at the January/February 2017 meeting, and a public hearing on the proposed new sections was held at that time. At the meeting, the SBOE approved for first reading and filing authorization proposed new English and Spanish language arts and reading TEKS for Kindergarten-Grade 8. However, the board postponed action on proposed new English and Spanish language arts and reading TEKS for high school until the April 2017 meeting. The new sections were approved by the SBOE for first reading and filing authorization at its April 21, 2017, meeting and for second reading and final adoption at its June 23, 2017, meeting. In accordance with the TEC, 7.102(f), the SBOE approved the new sections for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the school year. The earlier effective date will enable districts to begin preparing for implementation of the revised English and Spanish language arts and reading TEKS. The following changes were made to adopted new 19 TAC Chapter 128, Subchapters C, since published as proposed English I for Speakers of Other Languages (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The knowledge and skills statements in subsection (c)(1) - (3) and (c)(7) - (13) were amended to add the phrase "and with appropriately provided English language development scaffolding" after the phrase "Based on the student's language proficiency level." The student expectation in subsection (c)(1)(a) was amended to read, "engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes." The student expectation in proposed subsection (c)(1)(f) was relettered as subsection (c)(1)(d) and amended to replace the word "presentations" with "a presentation" and to add the phrase "with increasing accuracy of" before the phrase "conventions of language." The student expectation in proposed subsection (c)(1)(g) was deleted. The student expectation in proposed subsection (c)(1)(e) was relettered as subsection (c)(1)(g) and amended to remove literary interviews from the list of types of interviews students must conduct. The student expectation in subsection (c)(2)(a) was amended to add the word "acquire." The student expectation in subsection (c)(3)(b) was amended to read, "discuss and analyze context and use cognates to distinguish between the denotative and connotative meanings of words and phrases." The student expectation in proposed subsection (c)(3)(d) was relettered as subsection (c)(3)(c) and amended to add the phrase "bona fide," delete the word "emptor" from the phrase "caveat emptor," and delete the phrase "pas de deux." The student expectation in subsection (c)(3)(e) was amended to specify that students must identify, understand, and use multiple-meaning words, homographs, homophones, and commonly confused terms correctly. The knowledge and skills statement in subsection (c)(4) was amended to read, "The student reads grade-level text with fluency and comprehension. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to adjust fluency when reading grade-level and language proficiency-level text based on the reading purpose." The knowledge and skills statement in subsection (c)(5) was amended to replace the phrase "grade-appropriate texts independently" with the phrase "grade- and language proficiency-appropriate texts with increasing independence." The knowledge and skills statement in subsection (c)(6) was amended to replace the phrase "deepen comprehension of" with the word "comprehend" and to add the phrase "and with appropriately provided English language development scaffolding" after the phrase "Based on the student's language proficiency level." ADOPTED RULES November 3, TexReg 6165

110 The student expectation in subsection (c)(6)(b) was amended to add the phrases "answer and" and "acquire and." The student expectation in subsection (c)(6)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(6)(g) was amended to add the phrase "actively participate in discussions to identify, understand, and" before the phrase "evaluate details." The student expectation in subsection (c)(6)(h) was amended to add the phrase "from two texts" after the phrase "synthesize information." The student expectation in subsection (c)(7)(c) was amended to add the phrase "and original commentary" after the phrase "text evidence" and to replace the phrase "an appropriate" with the phrase "a comprehensive." The student expectation in subsection (c)(7)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(8)(a) was amended to replace "analyze how different authors present similar themes across texts using text evidence" with "identify and analyze how themes are developed through characterization and plot in a variety of literary texts." The student expectations in subsection (c)(8)(b) - (D) were amended to add the phrase "identify and" before the word "analyze." The student expectation in subsection (c)(9)(a) was amended to specify that students must read and respond to American, British, and world literature. The student expectations in subsection (c)(9)(b) - (F) were amended to add the phrase "identify and" before the word "analyze." The student expectation in subsection (c)(9)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of types of different counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectations in subsection (c)(10)(a) - (F) and (H) were amended to add the phrase "identify and" before the word "analyze." The student expectation in subsection (c)(10)(e) was amended to delete the phrase "point of view." The student expectation in subsection (c)(11)(b)(i) was amended to replace "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across paragraphs, and a conclusion" with "using an organizing structure appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(11)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "fluency, including parallel structure" with the phrase "effectiveness, including use of parallel constructions and placement of phrases and dependent clauses." The student expectation in subsection (c)(12)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. The student expectation in subsection (c)(13)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(13)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(13)(g) was deleted and reinserted as new subsection (c)(13)(f). The student expectation in subsection (c)(13)(h) was amended to add the phrase "including for paraphrased and quoted text" after the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." The student expectation in subsection (c)(13)(j) was amended to add "pictorial" to the list of modes of delivery students use. Technical corrections were also made English II for Speakers of Other Languages (One Credit), Adopted 2017 Subsection (b)(1) of the introduction was revised to add the phrase "and thinking" after the four domains of language: listening, speaking, reading, and writing. Subsection (b)(2) of the introduction was amended to delete "It is important to note that encoding (spelling) and decoding (reading) are reciprocal skills. Decoding is internalized when tactile and kinesthetic opportunities (encoding) are provided." The knowledge and skills statements in subsection (c)(1) - (3) and (c)(6) - (13) were amended to add the phrase "and with appropriately provided English language development scaffolding" after the phrase "Based on the student's language proficiency level." The student expectation in subsection (c)(1)(a) was amended to read, "engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes." The student expectation in proposed subsection (c)(1)(e) was deleted. The student expectation in proposed subsection (c)(1)(f) was relettered as subsection (c)(1)(d) and amended to replace the phrase "advance a coherent argument" with the phrase "give a formal presentation" and to add the phrase "increasing mastery of" before the phrase "conventions of language." The student expectation in subsection (c)(3)(b) was amended to replace the word "between" with the word "among" and to add the word "connotative." The student expectation in proposed subsection (c)(3)(d) was relettered as subsection (c)(3)(c) and amended to add the phrase "pas de deux." The knowledge and skills statement in subsection (c)(4) was amended to read, "The student reads grade-level text with fluency and comprehension. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to adjust fluency when reading grade-level and language proficiency-level text based on the reading purpose." The student expectation in subsection (c)(6)(b) was amended to add the phrase "acquire and." 42 TexReg 6166 November 3, 2017 Texas Register

111 The student expectation in subsection (c)(6)(c) was amended to replace the phrase "make, correct, or confirm" with the phrase "make and correct or confirm." The student expectation in subsection (c)(6)(h) was amended to add the phrase "from multiple texts" after the phrase "synthesize information." The student expectation in subsection (c)(7)(c) was amended to add the phrase "and original commentary" after the phrase "text evidence" and to replace the word "appropriate" with the word "interpretive." The student expectation in subsection (c)(7)(i) was amended to replace the phrase "as new evidence is presented" with the phrase "when valid evidence warrants." The student expectation in subsection (c)(7)(k) was amended to replace the phrase "complete sentences" with the phrase "single words and short phrases" and to add the phrase "participating in" before the phrase "extended discussions." The student expectation in subsection (c)(8)(a) was amended to replace "compare and contrast differences in similar themes expressed across a variety of works" with "analyze how themes are developed through characterization and plot, including comparing similar themes in a variety of literary texts representing different cultures." The student expectation in subsection (c)(8)(b) was amended to read, "analyze how authors develop complex yet believable characters, including archetypes, through historical and cultural settings and events." The student expectation in subsection (c)(8)(c) was amended to specify that students are expected to analyze isolated scenes and their contribution to the success of the plot as a whole. The student expectation in subsection (c)(8)(d) was amended to read, "analyze how historical and cultural settings influence characterization, plot, and theme across texts." The student expectation in subsection (c)(9)(a) was amended to specify that students must read and analyze world literature. The student expectation in subsection (c)(9)(b) was amended to add the phrase "types of rhymes" after the phrase "rhyme schemes." The student expectation in subsection (c)(9)(e)(ii) was amended to add the phrase "various types of evidence and treatment of counterarguments, including" before "concessions" and to replace "call to action" with "rebuttals" in the list of types of different counterarguments for which students are expected to analyze the characteristics and structural elements. The student expectation in subsection (c)(10)(e) was amended to delete the phrase "point of view." The student expectation in subsection (c)(10)(g) was amended to add the phrase "and the effects of logical fallacies." The student expectation in subsection (c)(11)(b)(i) was amended to replace "organizing with purposeful structure, including a strategic introduction, transitions, coherence within and across paragraphs, and a conclusion" with "using an organizing structure appropriate to purpose, audience, topic, and context." The student expectation in subsection (c)(11)(c) was amended to replace the word "for" with the phrase "to improve" and to replace the phrase "fluency, including parallel structure" with the phrase "effectiveness, including use of parallel constructions and placement of phrases and dependent clauses." The student expectation in subsection (c)(11)(d)(viii) was amended to replace brackets and ellipses with parentheses in the list of standard English conventions students are expected to use. The student expectation in subsection (c)(11)(e) was amended to replace the word "a" with the phrase "an increasingly complex." The student expectation in subsection (c)(12)(b) was amended to add explanatory essays and reports to and remove informative essays from the list of examples of informational texts that students may compose. The student expectation in subsection (c)(13)(a) was amended to delete the phrase "student-selected." The student expectation in subsection (c)(13)(b) was amended to replace the phrase "the need occurs" with the phrase "needs occur." The student expectation in proposed subsection (c)(13)(g) was deleted and reinserted as new subsection (c)(13)(f). The student expectation in subsection (c)(13)(h) was amended to add the phrase "including for paraphrased and quoted text" after the phrase "display academic citations" and to add the phrase "to avoid plagiarism" after the phrase "use source materials ethically." Technical corrections were also made English Language Development and Acquisition (ELDA) (One Credit), Adopted 2017 The knowledge and skills statements in subsection (c)(1) - (7) were amended to add the phrase "and with appropriately provided English language development scaffolding" after the phrase "Based on the student's language proficiency level." The student expectation in subsection (c)(1)(e) was amended to add the word "universally" before the phrase "familiar." The student expectation in subsection (c)(2)(c) was amended to delete the phrase "increasingly complex." The student expectation in subsection (c)(3)(b) was amended to add the phrase "increasingly complex" before the phrase "grammatical structures." The student expectation in subsection (c)(3)(f) was amended to replace the word "extended" with the word "short." The student expectation in subsection (c)(6)(a) was amended to replace the word "accurate" with the phrase "increasing accuracy in the." The student expectation in subsection (c)(6)(c) was amended to add the word "increasing" before the word "control." The student expectation in subsection (c)(6)(h) was amended to add the phrase "complete sentences and" after the phrase "to form." The student expectation in subsection (c)(6)(l) was amended to add writing, labeling, and sketching to the list of study tools students must use to clarify and remember information. The student expectation in subsection (c)(6)(n) was amended to replace the word "appropriately" with the phrase "with increasing accuracy." ADOPTED RULES November 3, TexReg 6167

112 Technical corrections were also made. SUMMARY OF COMMENTS AND RESPONSES. Following is a summary of the public comments received and the corresponding responses regarding proposed new 19 TAC Chapter 128, Subchapter C. Comment. One teacher expressed support for the proposed new ELDA course as a corequisite for English for Speakers of Other Languages (ESOL) I and II. Response. The SBOE agrees and took action to approve the proposed new ELDA course as a corequisite course for ESOL I and II. The SBOE also took action to approve additional changes to the proposed ELDA course to respond to other comments. Comment. One teacher requested that the ELDA course serve as a corequisite for Grades 7 and 8, especially for students who are beginning learners of English and as recommended by the TEKS review committee. Response. The SBOE provides the following clarification. Under 19 TAC 74.26(b), students at grades lower than Grade 9 may complete and earn credit for high school courses. A course must be considered completed and credit must be awarded if the student has demonstrated achievement by meeting the standard requirements of the course, regardless of the grade level at which proficiency was attained. Comment. One teacher stated that a minimum of two hours of instruction in English as a second language (ESL) each day is necessary. Response. The SBOE requested feedback regarding the amount of time needed to provide instruction in the student expectations as proposed. The SBOE determined that no additional adjustments to student expectations in 19 TAC Chapter 128, Texas Essential Knowledge and Skills for Spanish Language Arts and Reading and English as a Second Language, were necessary as a result of this feedback. However, the SBOE also took action to approve additional changes to the TEKS for ESL to respond to other comments. STATUTORY AUTHORITY. The new sections are adopted under the Texas Education Code (TEC), 7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, , which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, , which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, CROSS REFERENCE TO STATUTE. The new sections implement the Texas Education Code, 7.102(c)(4), , and English I for Speakers of Other Languages (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. Recommended corequisite: English Language Development and Acquisition (ELDA). (1) The essential knowledge and skills for English I for Speakers of Other Languages (ESOL I) are described in 74.4 of this title (relating to English Language Proficiency Standards) as well as subsection (b) of this section and are aligned to the knowledge and skills and student expectations in Chapter 110 of this title (relating to Texas Essential Knowledge and Skills for English Language Arts and Reading) with additional expectations for English language learners (ELLs). (2) ESOL I may be substituted for English I as provided by Chapter 74, Subchapter B, of this title (relating to Graduation Requirements). All expectations apply to ESOL I students; however, it is imperative to recognize critical processes and features of second language acquisition and to provide appropriate instruction to enable students to meet these standards. (b) Introduction. (1) The ESOL Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. They are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in order to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of this course mirror the essential knowledge and skills for English language arts and reading, which are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) ELLs are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach 42 TexReg 6168 November 3, 2017 Texas Register

113 their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes; (B) share prior knowledge with peers and others to facilitate communication; (C) follow, restate, and give complex oral instructions to perform specific tasks, answer questions, or solve problems and complex processes; (D) give a presentation using informal, formal, and technical language effectively to meet the needs of audience, purpose, and occasion, employing eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and increasing mastery of conventions of language to communicate ideas effectively; (E) participate collaboratively, building on the ideas of others, contributing relevant information, developing a plan for consensus building, and setting ground rules for decision making; (F) develop social communication and produce oral language in contextualized and purposeful ways; and (G) conduct an interview, including social and informative. (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--beginning reading and writing. The student develops word structure knowledge through phonological awareness, print concepts, phonics, and morphology to communicate, decode, and spell. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) acquire, demonstrate, and apply phonetic knowledge; and (B) write complete words, thoughts, and answers legibly. (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) use print or digital resources such as glossaries or technical dictionaries to clarify and validate understanding of the precise and appropriate meaning of technical or discipline-based vocabulary; (B) discuss and analyze context and use cognates to distinguish between the denotative and connotative meanings of words and phrases; (C) determine the meaning of foreign words or phrases used frequently in English such as bona fide, caveat, carte blanche, tête-à-tête, bon appétit, and quid pro quo; (D) identify and use words that name actions, directions, positions, sequences, and locations; (E) identify, understand, and use multiple-meaning words, homographs, homophones, and commonly confused terms correctly; and (F) investigate expressions such as idioms and word relationships such as antonyms, synonyms, and analogies. (4) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--fluency. The student reads grade-level text with fluency and comprehension. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to adjust fluency when reading grade-level and language proficiency-level text based on the reading purpose. (5) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade- and language proficiency-appropriate texts with increasing independence. The student is expected to self-select text and read independently for a sustained period of time. (6) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and comprehend increasingly complex texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: establish purpose for reading assigned and self-se- (A) lected texts; (B) answer and generate questions about text before, during, and after reading to acquire and deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; make inferences and use evidence to support understanding; (F) (G) actively participate in discussions to identify, understand, and evaluate details read to determine key ideas; ADOPTED RULES November 3, TexReg 6169

114 (H) synthesize information from two texts to create new understanding; and (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, and annotating when understanding breaks down. (7) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate understanding of texts, including comparing texts within and across genres; (C) use text evidence and original commentary to support a comprehensive response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as labeling, notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit or implicit meanings of text; (H) respond orally or in writing with appropriate register, vocabulary, tone, and voice; warrants; (I) reflect on and adjust responses when valid evidence (J) defend or challenge the authors' claims using relevant text evidence; and (K) express opinions, ideas, and feelings ranging from communicating single words and short phrases to participating in extended discussions. (8) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) identify and analyze how themes are developed through characterization and plot in a variety of literary texts; (B) identify and analyze how authors develop complex yet believable characters in works of fiction through a range of literary devices, including character foils; (C) identify and analyze non-linear plot development such as flashbacks, foreshadowing, subplots, and parallel plot structures and compare it to linear plot development; and theme. (D) identify and analyze how the setting influences the (9) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: literature; (A) read and respond to American, British, and world (B) identify and analyze the structure, prosody, and graphic elements such as line length and word position in poems across a variety of poetic forms; (C) identify and analyze the function of dramatic conventions such as asides, soliloquies, dramatic irony, and satire; (D) identify and analyze characteristics and structural elements of informational texts such as: (i) controlling idea and clear thesis, relevant supporting evidence, pertinent examples, and conclusion; (ii) chapters, sections, subsections, bibliography, tables, graphs, captions, bullets, and numbers; and (iii) develop the thesis; multiple organizational patterns within a text to (E) identify and analyze characteristics and structural elements of argumentative texts such as: conclusion; (i) clear arguable claim, appeals, and convincing (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and (F) and digital texts. (iii) identifiable audience or reader; and identify and analyze characteristics of multimodal (10) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) identify and analyze the author's purpose, audience, and message within a text; (B) identify and analyze use of text structure to achieve the author's purpose; (C) identify and evaluate the author's use of print and graphic features to achieve specific purposes; (D) identify and analyze how the author's use of language achieves specific purposes; (E) identify and analyze the use of literary devices such as irony and oxymoron to achieve specific purposes; (F) identify and analyze how the author's diction and syntax contribute to the mood, voice, and tone of a text; (G) identify and analyze the use of rhetorical devices, including allusion, repetition, appeals, and rhetorical questions; and (H) identify and explain the purpose of rhetorical devices such as understatement and overstatement and the effect of logical fallacies such as straw man and red herring arguments. 42 TexReg 6170 November 3, 2017 Texas Register

115 (11) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using an organizing structure appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with specific details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence effectiveness, including use of parallel constructions and placement of phrases and dependent clauses; (D) edit drafts using standard English conventions, including: (i) a variety of complete, controlled sentences and avoidance of unintentional splices, run-ons, and fragments; (ii) consistent, appropriate use of verb tense and active and passive voice; (iii) (iv) subject-verb agreement; pronoun-antecedent agreement; (v) apostrophes to show possession; (vi) accurate usage of homonyms; (vii) correct capitalization; (viii) punctuation, including commas, semicolons, colons, and dashes to set off phrases and clauses as appropriate; and (ix) correct spelling, including abbreviations; (E) use sentence-combining techniques to create a variety of sentence structures and lengths; (F) develop voice; and (G) publish written work for appropriate audiences. (12) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; and (D) compose correspondence in a professional or friendly structure. (13) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) (F) (G) (i) locate relevant sources; synthesize information from a variety of sources; examine sources for: credibility and bias, including omission; and (ii) faulty reasoning such as ad hominem, loaded language, and slippery slope; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) incorporate digital technology when appropriate; (J) use an appropriate mode of delivery, whether written, oral, pictorial, or multimodal, to present results English II for Speakers of Other Languages (One Credit), Adopted (a) General requirements. Students shall be awarded one credit for successful completion of this course. Recommended corequisite: English Language Development and Acquisition (ELDA). (1) The essential knowledge and skills for English II for Speakers of Other Languages (ESOL II) are described in 74.4 of this title (relating to English Language Proficiency Standards) as well as subsection (b) of this section and are aligned to the knowledge and skills and student expectations in Chapter 110 of this title (relating to Texas Essential Knowledge and Skills for English Language Arts and Reading) with additional expectations for English language learners (ELLs). (2) ESOL II may be substituted for English II as provided by Chapter 74, Subchapter B, of this title (relating to Graduation Requirements). All expectations apply to ESOL II students; however, it is imperative to recognize critical processes and features of second language acquisition and to provide appropriate instruction to enable students to meet these standards. (b) Introduction. (1) The ESOL Texas Essential Knowledge and Skills (TEKS) embody the interconnected nature of listening, speaking, reading, writing, and thinking through the seven integrated strands of developing and sustaining foundational language skills; comprehension; response; multiple genres; author's purpose and craft; composition; and inquiry and research. The strands focus on academic oracy (proficiency in oral expression and comprehension), authentic reading, and reflective writing to ensure a literate Texas. The strands are integrated and progressive with students continuing to develop knowledge and skills with increased complexity and nuance in order ADOPTED RULES November 3, TexReg 6171

116 to think critically and adapt to the ever-evolving nature of language and literacy. (2) The seven strands of this course mirror the essential knowledge and skills for English language arts and reading, which are intended to be integrated for instructional purposes and are recursive in nature. Strands include the four domains of language (listening, speaking, reading, and writing) and their application in order to accelerate the acquisition of language skills so that students develop high levels of social and academic language proficiency. Although some strands may require more instructional time, each strand is of equal value, may be presented in any order, and should be integrated throughout the year. Additionally, students should engage in academic conversations, write, read, and be read to on a daily basis with opportunities for cross-curricular content and student choice. (3) Text complexity increases with challenging vocabulary, sophisticated sentence structures, nuanced text features, cognitively demanding content, and subtle relationships among ideas (Texas Education Agency, STAAR Performance Level Descriptors, 2013). As skills and knowledge are obtained in each of the seven strands, students will continue to apply earlier standards with greater depth to increasingly complex texts in multiple genres as they become self-directed, critical learners who work collaboratively while continuously using metacognitive skills. (4) ELLs are expected to meet standards in a second language; however, their proficiency in English influences the ability to meet these standards. To demonstrate this knowledge throughout the stages of English language acquisition, comprehension of text requires additional scaffolds such as adapted text, translations, native language support, cognates, summaries, pictures, realia, glossaries, bilingual dictionaries, thesauri, and other modes of comprehensible input. ELLs can and should be encouraged to use knowledge of their first language to enhance vocabulary development; vocabulary needs to be in the context of connected discourse so that it is meaningful. Strategic use of the student's first language is important to ensure linguistic, affective, cognitive, and academic development in English. (5) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that ELLs acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (6) Oral language proficiency holds a pivotal role in school success; verbal engagement must be maximized across grade levels (Kinsella, 2010). In order for students to become thinkers and proficient speakers in science, social studies, mathematics, fine arts, language arts and reading, and career and technical education, they must have multiple opportunities to practice and apply the academic language of each discipline (Fisher, Frey, & Rothenberg, 2008). (7) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. The student develops oral language through listening, speaking, and discussion. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) engage in meaningful and respectful discourse by listening actively, responding appropriately, and adjusting communication to audiences and purposes; (B) share prior knowledge with peers and others to facilitate communication; (C) follow, restate, and give complex oral instructions to perform specific tasks, answer questions, or solve problems and complex processes; (D) give a formal presentation that incorporates a clear thesis and a logical progression of valid evidence from reliable sources and that employs eye contact, speaking rate such as pauses for effect, volume, enunciation, purposeful gestures, and increasing mastery of conventions of language to communicate ideas effectively; (E) participate collaboratively, building on the ideas of others, contributing relevant information, developing a plan for consensus building, and setting ground rules for decision making; (F) develop social communication and produce oral language in contextualized and purposeful ways; and (G) oral presentation. listen and respond to critique from peers after an (2) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--beginning reading and writing. The student develops word structure knowledge through phonological awareness, print concepts, phonics, and morphology to communicate, decode, and spell. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (B) write complete words, thoughts, and answers legibly. (A) demonstrate and apply phonetic knowledge; and (3) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--vocabulary. The student uses newly acquired vocabulary expressively. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) use print or digital resources such as glossaries or technical dictionaries to clarify and validate understanding of the precise and appropriate meaning of technical or discipline-based vocabulary; (B) analyze context to distinguish among denotative, connotative, and figurative meanings of words; (C) determine the meaning of foreign words or phrases used frequently in English such as pas de deux, status quo, déjà vu, avant-garde, and coup d'état; (D) identify and use words that name actions, directions, positions, sequences, and locations; (E) use multiple-meaning words, homographs, homophones, and commonly confused terms correctly; and (F) investigate expressions such as idioms and word relationships such as antonyms, synonyms, and analogies. 42 TexReg 6172 November 3, 2017 Texas Register

117 (4) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--fluency. The student reads grade-level text with fluency and comprehension. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to adjust fluency when reading grade-level and language proficiency-level text based on the reading purpose. (5) Developing and sustaining foundational language skills: listening, speaking, reading, writing, and thinking--self-sustained reading. The student reads grade-appropriate texts independently. The student is expected to self-select text and read independently for a sustained period of time. (6) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. The student uses metacognitive skills to both develop and deepen comprehension of increasingly complex texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) establish purpose for reading assigned and self-selected texts; (B) generate questions about text before, during, and after reading to acquire and deepen understanding and gain information; (C) make and correct or confirm predictions using text features, characteristics of genre, and structures; (D) create mental images to deepen understanding; (E) make connections to personal experiences, ideas in other texts, and society; (F) make inferences and use evidence to support understanding; (G) evaluate details read to determine key ideas; (H) synthesize information from multiple texts to create new understanding; and (I) monitor comprehension and make adjustments such as re-reading, using background knowledge, asking questions, and annotating when understanding breaks down. (7) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. The student responds to an increasingly challenging variety of sources that are read, heard, or viewed. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) describe personal connections to a variety of sources, including self-selected texts; (B) write responses that demonstrate understanding of texts, including comparing texts within and across genres; (C) use text evidence and original commentary to support an interpretive response; (D) paraphrase and summarize texts in ways that maintain meaning and logical order; (E) interact with sources in meaningful ways such as notetaking, annotating, freewriting, or illustrating; (F) respond using acquired content and academic vocabulary as appropriate; (G) discuss and write about the explicit or implicit meanings of text; (H) respond orally or in writing with appropriate register, vocabulary, tone, and voice; warrants; (I) reflect on and adjust responses when valid evidence (J) defend or challenge the authors' claims using relevant text evidence; and (K) express opinions, ideas, and feelings ranging from communicating in single words and short phrases to participating in extended discussions. (8) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--literary elements. The student recognizes and analyzes literary elements within and across increasingly complex traditional, contemporary, classical, and diverse literary texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) analyze how themes are developed through characterization and plot, including comparing similar themes in a variety of literary texts representing different cultures; (B) analyze how authors develop complex yet believable characters, including archetypes, through historical and cultural settings and events; (C) analyze isolated scenes and their contribution to the success of the plot as a whole; and (D) analyze how historical and cultural settings influence characterization, plot, and theme across texts. (9) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student recognizes and analyzes genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) read and analyze world literature across literary periods; (B) analyze the effects of metrics; rhyme schemes; types of rhymes such as end, internal, slant, and eye; and other conventions in poems across a variety of poetic forms; (C) analyze the function of dramatic conventions such as asides, soliloquies, dramatic irony, and satire; (D) analyze characteristics and structural elements of informational texts such as: (i) clear thesis, relevant supporting evidence, pertinent examples, and conclusion; (ii) chapters, sections, subsections, bibliography, tables, graphs, captions, bullets, and numbers to locate, explain, or use information and gain understanding of text; (iii) organizational patterns such as description, temporal sequence, cause and effect, compare and contrast, and problem and solution; and (iv) the relationship between organizational design and thesis; (E) analyze characteristics and structural elements of argumentative texts such as: ADOPTED RULES November 3, TexReg 6173

118 (i) controlling idea and clear arguable claim, appeals, and convincing conclusion; (ii) various types of evidence and treatment of counterarguments, including concessions and rebuttals; and texts. (iii) identifiable audience or reader; and (F) analyze characteristics of multimodal and digital (10) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. The student uses critical inquiry to analyze the authors' choices and how they influence and communicate meaning within a variety of texts. The student analyzes and applies author's craft purposefully in order to develop his or her own products and performances. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) analyze the author's purpose, audience, and message within a text; purpose; (B) analyze use of text structure to achieve the author's (C) evaluate the author's use of print and graphic features to achieve specific purposes; (D) analyze how the author's use of language informs and shapes the perception of readers; (E) analyze the use of literary devices such as irony, sarcasm, and motif to achieve specific purposes; (F) analyze how the author's diction and syntax contribute to the mood, voice, and tone of a text; and (G) analyze the purpose of rhetorical devices such as appeals, antithesis, parallelism, and shifts and the effects of logical fallacies. (11) Composition: listening, speaking, reading, writing, and thinking using multiple texts--writing process. The student uses the writing process recursively to compose multiple texts that are legible and use appropriate conventions. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) plan a piece of writing appropriate for various purposes and audiences by generating ideas through a range of strategies such as brainstorming, journaling, reading, or discussing; (B) develop drafts into a focused, structured, and coherent piece of writing in timed and open-ended situations by: (i) using an organizing structure appropriate to purpose, audience, topic, and context; and (ii) developing an engaging idea reflecting depth of thought with specific details, examples, and commentary; (C) revise drafts to improve clarity, development, organization, style, diction, and sentence effectiveness, including use of parallel constructions and placement of phrases and dependent clauses; (D) edit drafts using standard English conventions, including: (i) a variety of complete, controlled sentences and avoidance of unintentional splices, run-ons, and fragments; (ii) consistent, appropriate use of verb tense and active and passive voice; (iii) (iv) (v) subject-verb agreement; pronoun-antecedent agreement; apostrophes to show possession; (vi) accurate usage of homonyms; (vii) correct capitalization; (viii) punctuation, including commas, semicolons, colons, dashes, and parentheses, to set off phrases and clauses as appropriate; and (ix) correct spelling, including abbreviations; (E) use sentence-combining techniques to create an increasingly complex variety of sentence structures and lengths; (F) (G) develop voice; and publish written work for appropriate audiences. (12) Composition: listening, speaking, reading, writing, and thinking using multiple texts--genres. The student uses genre characteristics and craft to compose multiple texts that are meaningful. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) compose literary texts such as fiction and poetry using genre characteristics and craft; (B) compose informational texts such as explanatory essays, reports, and personal essays using genre characteristics and craft; (C) compose argumentative texts using genre characteristics and craft; and (D) compose correspondence in a professional or friendly structure. (13) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. The student engages in both short-term and sustained recursive inquiry processes for a variety of purposes. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) develop questions for formal and informal inquiry; (B) critique the research process at each step to implement changes as needs occur and are identified; (C) develop and revise a plan; (D) modify the major research question as necessary to refocus the research plan; (E) (F) (G) (i) locate relevant sources; synthesize information from a variety of sources; examine sources for: credibility and bias, including omission; and (ii) faulty reasoning such as incorrect premise, hasty generalizations, and either-or; (H) display academic citations, including for paraphrased and quoted text, and use source materials ethically to avoid plagiarism; and (I) incorporate digital technology when appropriate; 42 TexReg 6174 November 3, 2017 Texas Register

119 (J) use an appropriate mode of delivery, whether written, oral, or multimodal, to present results English Language Development and Acquisition (ELDA) (One Credit), Adopted (a) General requirements. (1) Students shall be awarded one credit for successful completion of this course. This course must be taken concurrently with a corequisite language arts course as outlined in Chapter 110 of this title (relating to Texas Essential Knowledge and Skills for English Language Arts and Reading) or this chapter. Recommended corequisites: English I for Speakers of Other Languages (ESOL I) and English II for Speakers of Other Languages (ESOL II). (2) Students may take this course with a different corequisite for a maximum of two credits. (b) Introduction. (1) English Language Development and Acquisition (ELDA) is designed to provide instructional opportunities for secondary recent immigrant students with little or no English proficiency. These students have scored at the negligible/very limited academic language level of the state-approved English oral language proficiency tests. This course enables students to become increasingly more proficient in English in all four language domains. It addresses cognitive, linguistic, and affective needs in compliance with federal requirements and the provisions of Chapter 89, Subchapter BB, of this title (relating to Commissioner's Rules Concerning State Plan for Educating English Language Learners) under the Texas Education Code, (2) The English Language Development and Acquisition (ELDA) course will validate a student's native language and culture as a valuable resource and as a foundation to attain the English language. It will develop social language, survival vocabulary, and the basic building blocks of literacy for newly arrived and preliterate students. (3) Through comprehensible input, students have access to curriculum that accelerates second language acquisition. Students are challenged to apply higher-order thinking skills in all four language domains. (4) Current research stresses the importance of effectively integrating second language acquisition with quality content area education in order to ensure that English language learners acquire social and academic language proficiency in English, learn the knowledge and skills, and reach their full academic potential. Instruction must be linguistically accommodated in accordance with the English Language Proficiency Standards (ELPS) and the student's English language proficiency levels to ensure the mastery of knowledge and skills in the required curriculum is accessible. For a further understanding of second language acquisition needs, refer to the ELPS and proficiency-level descriptors adopted in Chapter 74, Subchapter A, of this title (relating to Required Curriculum). (5) The development of communicative competence occurs through targeted lessons based on students' needs, although academic language proficiency is the focus of instruction. (6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples. (c) Knowledge and skills. (1) Developing and sustaining foundational language skills: listening, speaking, discussion, and thinking--oral language. Students develop oral language and word structure knowledge through phonological awareness, print concepts, phonics, and morphology to communicate, decode, and encode. Students apply knowledge and relationships found in the structures, origins, and contextual meanings of words. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) distinguish and produce sounds and intonation patterns of English; (B) recognize print directionality of the English language such as reading left to right or top to bottom; (C) develop knowledge of relationships between sounds and letters of the English language to represent sounds when writing in English; (D) process and use basic academic English language interdisciplinary vocabulary; (E) understand the general meaning, main points, and important details of spoken language ranging from universally familiar to unfamiliar topics; (F) identify people, places, objects, events, and basic concepts such as numbers, days of the week, food, occupations, clothing, colors, and time; (G) learn relationships between sounds and letters of the English language and decode (sound out) words using a combination of skills such as recognizing sound-letter relationships and identifying cognates, affixes, roots, and base words; (H) identify and use words that name actions, directions, positions, sequences, and locations; (I) develop basic sight vocabulary, derive meaning from environmental print, and comprehend English vocabulary and language structures used routinely; (J) use print or digital resources such as glossaries, English dictionaries, bilingual dictionaries, thesauri, and available technology to determine meanings and usage; (K) listen actively and ask relevant questions to clarify understanding; and (L) share prior knowledge with peers and others to facilitate communication and foster respect for others. (2) Comprehension skills: listening, speaking, reading, writing, and thinking using multiple texts. Students use metacognitive skills both develop and deepen comprehension of increasingly complex texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) summarize texts and retell in English or the native language (L1) as needed; (B) self-monitor using pre-reading supports such as graphic organizers, illustrations, and pre-taught topic-related vocabulary to enhance comprehension of input from various sources; (C) demonstrate comprehension of English by participating in shared reading, responding to questions, and taking notes that are commensurate with language acquisition; (D) make connections to personal experiences, ideas in other texts, and the larger community; ADOPTED RULES November 3, TexReg 6175

120 (E) listen to and derive meaning from a variety of media such as video, DVD, CD, or other technology to build and reinforce concepts and language; and (F) make inferences and use evidence to support understanding. (3) Response skills: listening, speaking, reading, writing, and thinking using multiple texts. Students react and respond to a variety of sources that are read, heard, or viewed. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) formulate and provide effective verbal and non-verbal feedback; (B) speak using a variety of increasingly complex grammatical structures, sentence lengths, sentence types, and connecting words with increasing accuracy and ease as more English is acquired; (C) ask for and give information such as directions, address, name, age, and nationality; (D) express ideas and feelings such as gratitude, needs, opinion, and greetings; (E) communicate non-verbally to effectively and appropriately engage in formal and social interactions; (F) express opinions, ideas, and feelings ranging from communicating single words and short phrases to participating in short discussions; (G) respond orally to information presented in a wide variety of print, electronic, audio, and visual media to reinforce concept and language attainment; and (H) organize information in a variety of ways such as graphics, conceptual maps, and learning logs. (4) Multiple genres: listening, speaking, reading, writing, and thinking using multiple texts. Students recognize and analyze genre-specific characteristics, structures, and purposes within and across increasingly complex traditional, contemporary, classical, and diverse multicultural texts. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) compare characteristics of cultures represented in various linguistic and non-linguistic sources; (B) read and listen to adapted or linguistically accommodated modified classical, traditional, contemporary, and multicultural works in English or native language (L1) in alignment with gradelevel student expectations; (C) use text features, including titles, headings, subheadings, paragraphs, fonts, styles, index, glossary, table of contents, and graphics to locate, explain, or use information; and (D) compare and contrast how events are presented and information is communicated by visual images such as graphic art, illustrations, or photographs versus non-visual text. (5) Author's purpose and craft: listening, speaking, reading, writing, and thinking using multiple texts. Students use critical inquiry to analyze the purpose of authors' choices and how they influence and communicate meaning within a text. Students will analyze and apply author's craft purposefully in order to develop their own products and performances. Based on the student's proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: determine and interpret an author's or speaker's in- (A) tended message; (B) determine the target audience; and (C) determine the purpose of the message. (6) Composition: listening, speaking, reading writing, and thinking using multiple texts. Students use the modes of writing/discourse and the writing process recursively to compose multiple texts that are meaningful and legible and use appropriate conventions. Based on the student's proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) produce legible work that demonstrates increasing accuracy in the use of the English alphabet, spelling, and the correct use of the conventions of punctuation and capitalization; (B) spell familiar words with increasing accuracy and employ English spelling patterns and rules with increasing accuracy as more English is acquired; (C) demonstrate increasing control over grammatical elements such as subject-verb agreement, pronoun agreement, and verb forms; (D) voice, and plan; (E) use prewriting strategies to generate ideas, develop write effectively in first person; (F) apply oral and written conventions in English with increasing fluency during classroom presentations, compositions, and dialogue; (G) arrange phrases, clauses, and sentences into correct and meaningful patterns; (H) and paragraphs; compile written ideas to form complete sentences (I) organize and convert information into different forms such as charts, graphs, and drawings; (J) convey intended meaning while recognizing the meanings and uses of the other registers in English that are often expressed through colloquialisms, idioms, and other language forms; (K) create, revise, edit, and publish using various technology applications; (L) use study tools, including writing, labeling, and sketching, to clarify and remember information; and (M) (N) evaluate writing for both mechanics and content; use cohesive devices with increasing accuracy. (7) Inquiry and research: listening, speaking, reading, writing, and thinking using multiple texts. Students engage in both short-term and sustained recursive inquiry processes for a variety of purposes. Based on the student's language proficiency level, and with appropriately provided English language development scaffolding, the student is expected to: (A) locate appropriate print and non-print information using texts and technical resources, periodicals, and the internet; (B) compile information using available technology; 42 TexReg 6176 November 3, 2017 Texas Register

121 (C) discover, organize, and support in writing what is known and what needs to be learned about a topic; and (D) compare and contrast coverage of the same event in various media such as newspapers, television, documentaries, blogs, and the internet. 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Effective date: November 12, 2017 Proposal publication date: May 19, 2017 For further information, please call: (512) CHAPTER 129. STUDENT ATTENDANCE SUBCHAPTER AA. COMMISSIONER'S RULES 19 TAC The Texas Education Agency (TEA) adopts an amendment to , concerning student attendance accounting. The amendment is adopted without changes to the proposed text as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4224) and will not be republished. The amendment adopts by reference the Student Attendance Accounting Handbook. Although the text of did not change since published as proposed, minor changes to the handbook adopted by reference were made in response to public comment. REASONED JUSTIFICATION. The TEA has adopted its student attendance accounting handbook in rule since Attendance accounting evolves from year to year, so the intention is to annually update 19 TAC to refer to the most recently published student attendance accounting handbook. Each annual student attendance accounting handbook provides school districts and charter schools with the Foundation School Program (FSP) eligibility requirements of all students, prescribes the minimum requirements of all student attendance accounting systems, lists the documentation requirements for attendance audit purposes, and details the responsibilities of all district personnel involved in student attendance accounting. The TEA distributes FSP resources under the procedures specified in each current student attendance accounting handbook. The final version of the student attendance accounting handbook is published on the TEA website. A supplement, if necessary, is also published on the TEA website. The amendment to 19 TAC adopts by reference the student attendance accounting handbook for the school year. Some of the changes included in the adopted handbook incorporate legislation resulting from the 85th Texas Legislature, Regular Session, However, some legislative changes are not included in the adopted handbook because they are not effective until the school year. Those changes will be included in the Student Attendance Accounting Handbook. Significant changes to the Student Attendance Accounting Handbook from the Student Attendance Accounting Handbook include the following. Section 3, General Attendance Requirements Texas Education Code (TEC), , and Chapter 42, specifically , establish the general parameters for attendance and school operation in The following changes implement reporting requirements for attendance and funding. Language was added stating that to be eligible for funding for work-based learning opportunities, a student must participate in the work-based learning opportunity for at least two hours (half-day attendance) or at least four hours (full-day attendance). Work-based learning opportunities include internships, externships, apprenticeships, mentorships, etc. (This is not an exhaustive list of work-based learning opportunities.) A chart was added to specify that the following activities are eligible for funding under the 2-through-4 hour rule: instruction, in-class breakfast, recess, work-based learner, and study program for state assessments (if the student has met all graduation requirements). The list of ineligible activities includes study hall, sign ins, and repeated courses (if a student has already received credit for that course). In response to public comment, the term "in-class meal" was changed to "in-class breakfast." A requirement was added that districts can code students who meet all of the criteria listed in Section of the handbook as immigrants and that once a student has been in U.S. schools for more than three full academic years, the immigrant indicator code should be removed. A note was added in the section on compulsory attendance that a child engages in truant conduct if the child is required to attend school under the TEC, , and fails to attend school on 10 or more days or parts of days within a six-month period in the same school year. Language was added specifying that attendance must not be taken by students or classroom aides and clerks who do not meet the requirements of a highly qualified paraprofessional. Language was added to allow a student to be considered present for FSP funding if the student is participating in an off-campus work-based learning opportunity and is not scheduled to be on campus during any part of the school day. The language also states that a student who is participating in an off-campus workbased learning opportunity and is scheduled to be on campus during any part of the school day should have his or her attendance recorded while on campus. Language was added to specify that paraprofessionals who take attendance must meet the requirements of a highly qualified paraprofessional. Language was added to state that the school nurse will not count for FSP funding as a health care professional appointment. Language was added to state that a student who is 17 years of age or older may be considered present for FSP funding if the student is absent to pursue enlistment in a branch of the armed services of the United States or the National Guard. Language states that the district (1) must not excuse for this purpose more than 4 days of school during the period the student is enrolled in high school; and (2) must adopt a policy stating when an ab- ADOPTED RULES November 3, TexReg 6177

122 sence will be excused for this purpose and a policy that verifies the student's activities related to pursuing enlistment in a branch of the armed services or the Texas National Guard. Clarification was added that days of instruction are the number of days that satisfy the instructional time requirements established under the student attendance accounting handbook that are required by a district or charter school to accumulate 75,600 minutes of operation in a school year. Language was added stating that a school district may not provide student instruction on Memorial Day. Language stating that a student who is served through the general education homebound (GEH) program retains the same average daily attendance (ADA) eligibility code he or she had before receiving GEH services, regardless of how many hours the student will be served through the GEH program, was deleted. Section 4, Special Education TEC, Chapter 42, specifically , authorizes funding for special education in certain circumstances. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following changes implement reporting for special education to account for attendance and funding. Language was added stating that upon completion of a full individual and initial evaluation of a student, an Admission, Review, and Dismissal (ARD) committee meets and develops the student's individualized education program (IEP) that includes the appropriate educational placement for implementing the student's IEP. Language was added to state that the ARD committee determines the date that services will begin (the effective date) and the duration of the services and records this information in the IEP. Language was added to specify that when a student moves from one district to another within the state in the same school year and either the parents verify that the student was receiving special education services in the previous district or the previous district verifies in writing or by telephone that the student was receiving special education services, a district must meet the requirements of 34 Code of Federal Regulations (CFR) (a) and (e) regarding the provision of special education services. Language stating that a student aged 6 years or older who is served in the special education homebound instructional setting retains the same ADA eligibility code he or she had before receiving homebound services, regardless of how many hours the student will be served in the homebound instructional setting, was deleted. Additional language was added in the chart for preschool programs for children with disabilities and homebound services. Language was added specifying that, to claim special education contact hours, a student must be employed (paid or unpaid fullor part-time), receiving special education services as required in the IEP, and coded a Vocational Adjustment Class (VAC) (08). Language was added to state that for students currently residing in a hospital, residential facility, or state supported living center, the instructional arrangement coding for an adult student who resides in a residential facility can be interchanged with the word "parent." Language relating to teachers providing instruction in mainstream settings was added to state that if certified special education personnel are only monitoring student progress, mainstream special education funding must not be generated. The adopted new language specifies that in order to report this instructional arrangement, the district should document the details of the specially designed instruction that is being provided in the student's IEP. Language stating that sheltered workshops should be included in the residential care and treatment facility community class and off home campus community class was deleted. Language for indicator code 1 - speech therapy was revised. An example was added to Code 8 - VAC and Codes Off Home Campus. Section 5, Career and Technical Education (CTE) TEC, Chapter 42, including , authorizes funding for career and technical education (CTE) in certain circumstances. TEC, Chapter 29, Subchapter F, establishes general parameters for CTE programs. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following changes implement reporting for CTE to account for attendance and funding. Additional language was added to state that teachers with less than a bachelor's degree are not eligible to teach CTE courses that meet graduation requirements for English language arts and reading, science, mathematics, or fine arts. The language also notes that certain teacher assignments may require an industry license that is regulated outside of the TEA. Language was added stating that with the approval of the local board of trustees, school districts and charter schools may offer any state-approved innovative course for state elective credit. The language specifies that no application is required for a district or charter school to offer an approved innovative course but, if a district wishes to submit a new innovative course, the district must follow the process for applying to the TEA for approval to offer the new innovative course. Language was revised to include Project-Based Research, Principles of Applied Engineering, Principles of Transportation Systems, and Health Science Theory/Health Science Clinical as CTE courses. Language was added to state that an 8th grade student who is not enrolled in a Career and Technical Education for the Disabled (CTED) course but who is enrolled in a Principles of Law, Public Safety, Corrections, and Security course is not eligible to generate contact hour funding. The language specifies that only students in Grades 9-12 are eligible for CTE contact hours, except for students in Grades 7 and 8 who are eligible for and enrolled in CTED courses. Section 6, Bilingual/English as a Second Language (ESL) TEC, , authorizes funding for bilingual or special language programs in certain circumstances. TEC, Chapter 29, Subchapter B, establishes general parameters for bilingual and special language programs. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following change implements reporting for bilingual and special language programs to account for attendance and funding. 42 TexReg 6178 November 3, 2017 Texas Register

123 The chart for the exit criteria for the English language learner was updated. Section 7, Prekindergarten (PK) TEC, Chapter 29, Subchapter E, establishes special general parameters for pre-kindergarten (PK) programs. TEC, Chapter 42, including , establishes average daily attendance (ADA) requirements and authorizes funding for certain circumstances. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following changes implement reporting for PK to account for attendance and funding. Additional language was added stating that a district must verify a student's eligibility for PK in order to receive funding in the PK program. Districts are required to have the verification document on file for their records. Language was revised to state that if a student qualifies for PK on the basis of being limited English proficient (LEP) but is not receiving required services through the bilingual/esl program because of a parental denial, the student remains eligible for PK if the student enrolls in a new district provided that the documentation described in Section of the handbook is made available to the new district. Section 9, Pregnancy-Related Services (PRS) TEC, Chapter 42, including , authorizes funding for students who are pregnant under certain circumstances. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following changes implement reporting for pregnancy-related services (PRS) to account for attendance and funding. Language was revised to state that a district receives 2.41 PRS weighted funding while PRS, consisting of support services and compensatory education home instruction (CEHI), are being provided to the student. Language was added specifying that remote instruction for the PRS program means that CEHI is provided to a student through a technology that allows for real-time, two-way interaction between a student and teacher who are in different physical locations. Language was updated to state that The Life Skills Program for Student Parents (previously called the Pregnancy Education and Parenting (PEP) Program) will not be funded for the school year. Language was added to allow a district to apply for a waiver to provide CEHI on campus in a small group of four or less students when a student in postpartum recovery is transitioning back to school in accordance with the terms of the approved waiver. Language stating that a student who is provided CEHI services retains the same ADA eligibility code she had before receiving CEHI services, regardless of how many hours she will receive CEHI, was deleted. Language stating that a student who is provided special education services and PRS during confinement retains the same ADA eligibility code she had before receiving the services, regardless of how many hours the student will be provided the services, was deleted. Language was added to specify that when a student is enrolled in the PRS program, districts should inform the student of the services that are offered and the options that are available, such as the CEHI break in service option, in order to support quality district and student service planning. Section 12, Virtual, Remote, and Electronic Instruction TEC, Chapter 30A, establishes the general parameters for the Texas Virtual School Network (TxVSN). TEC, 30A.153, authorizes funding for the TxVSN for the FSP under certain circumstances. TEC, , authorizes the commissioner to adopt reports that may be necessary to implement and administer the FSP. The following change implements reporting for the TxVSN to account for attendance and funding. Language was added stating that each TxVSN course is considered to be 55 minutes of daily classroom instruction for purposes of the 2-through-4-hour rule. Section 13, Appendix: Average Daily Attendance (ADA) and Funding In response to public comment, the definition of School Day was clarified in relation to charter schools. Section 14, Glossary Definitions were updated to reflect changes made throughout the handbook. The definition of career cluster was revised to include a new hyperlink to the TEA website. A definition for work-based learner was added. A definition for days of instruction was added. SUMMARY OF COMMENTS AND AGENCY RESPONSES. The public comment period on the proposal began August 25, 2017, and ended September 25, Following is a summary of the public comments received and corresponding agency responses. Comment: Texas Charter Schools Association (TCSA) commented that in the Statutory Authority section of the proposed amendment, the TEA incorrectly stated that the TEC, , which prohibits school districts from scheduling the last day of school for students before May 15, applies to charter schools. Agency Response: The agency agrees and has modified the Statutory Authority section to be consistent with the TEC, Comment: TCSA commented that House Bill (HB) 2442, 85th Texas Legislature, Regular Session, 2017, changed the term "minutes of instruction" to "minutes of operation" but that the Student Attendance Accounting Handbook does not use these two terms consistently when referencing the 75,600 minutes requirement. TCSA recommended that the handbook be amended to consistently reference 75,600 "minutes of operation." Agency Response: The agency disagrees. The terminology change from "minutes of instruction" to "minutes of operation" is not effective until the school year. As TEA plans to fully implement the requirements from the 85th Texas Legislature, the Student Attendance Accounting Handbook will be modified to reflect the legislative changes that take effect in the school year. Comment: TCSA commented that although charter schools are required to provide 75,600 minutes of operation for funding purposes, they are not required to provide 75,600 minutes of operation for calendar purposes. TCSA requested that language be ADOPTED RULES November 3, TexReg 6179

124 added to the definition of School Day in Section 13, Appendix: Average Daily Attendance (ADA) and Funding to clarify that to receive full ADA funding, charter schools are required to have 75,600 minutes in the school year minus the number of minutes that are approved for waivers. Agency Response: The agency agrees that clarification is needed and has modified the definition of School Day in Section 13 at adoption. Comment: TCSA commented that while the handbook indicates that a school operating an alternative education program (AEP) is eligible to receive full ADA if the district or charter school provides at least 43,200 minutes of instruction, it does not address minute requirements or waivers for other unique programs. TCSA stated that the June 27, 2017, To The Administrator Addressed (TAA) letter indicates that schools operating programs such as a dropout recovery campus, a day treatment facility, a residential treatment facility, a psychiatric hospital, a school program offered at a correctional facility, an AEP, a disciplinary alternative education program (DAEP), and a school operating under TEC, , will receive full ADA funding as long as the school complies with the "four-hour instruction rule." TCSA stated that the TAA letter goes on to say schools offering these programs do not need to submit a waiver and a school will automatically receive a waiver from the 75,600 minutes of operation requirement. TCSA requested that for clarity and consistency, the TEA include language in the Student Attendance Accounting Handbook addressing the automatic waiver for school district and charter school programs serving students in all AEPs as well as hospitals, treatment centers, correctional facilities, and adult education programs under the TEC, Agency Response: The agency disagrees. For the school year, waivers for dropout recovery campuses, day treatment facilities, residential treatment facilities, psychiatric hospitals, school programs offered at correctional facilities, AEPs, DAEPs, and schools operating under the TEC, , are one-time, automatic waivers, and since there is not an application or approval process, the information does not need to be included in the Student Attendance Accounting Handbook. The TAA letter dated June 27, 2017, is the official guidance for granting the one-time, automatic waivers. Comment: TCSA commented that the handbook does not address automatic waivers for charter schools operating prior to January 1, TCSA stated that HB 2442, 85th Texas Legislature, Regular Session, 2017, allows charter schools operating prior to January 1, 2015, and campus or site expansions approved by the commissioner after January 1, 2015, to receive full ADA funding as calculated prior to January 1, TCSA recognized that HB 2442 will not be effective until the school year but stated that according to the TAA letter regarding Minutes of Operation-Updates to HB 2442, charter schools will receive full funding if "they report 180 days of attendance and comply with the four-hour instruction rule." TCSA requested that the TEA include the automatic waiver language, as well as the option to provide 180 days with the four-hour instructional rule, in the Student Attendance Accounting Handbook for charter schools operating prior to January 1, 2015, including any expansions approved after January 1, Agency Response: The agency disagrees. The waivers for the school year are one-time, automatic waivers granted to districts and charter schools, and since there is not an application or approval process, the information does not need to be included in the Student Attendance Accounting Handbook. Since the waiver will be applicable in the school year, the Student Attendance Accounting Handbook will reflect that legislative change. Comment: TCSA recognized the efforts of TEA in addressing the disruptive impact that Hurricane Harvey had on over 1.4 million schoolchildren in Texas. TCSA recommended that an additional section specifically dedicated to attendance, bad weather days, and funding as it relates to Hurricane Harvey be added to the handbook. Agency Response: The agency disagrees. Guidance for unforeseen calamities will be addressed as those situations occur and will not be included in the Student Attendance Accounting Handbook. The TAA letters related to Hurricane Harvey are the official guidance for districts and charter schools impacted by the hurricane. Comment: A school district employee requested clarification regarding whether the 2-through-4-hour rule includes "in-class meals" as referenced throughout the Student Attendance Accounting Handbook or "in-class breakfast" as referenced in previously published handbooks. Agency Response: The agency provides the following clarification. The terminology should be "in-class breakfast" as published in previous versions of the handbook. The terminology in Section 3 was modified at adoption to include "in-class breakfast" as part of the 2-through-4-hour rule. STATUTORY AUTHORITY. The amendment is adopted under the Texas Education Code (TEC), 7.055(b)(35), which states that the commissioner shall perform duties in connection with the Foundation School Program (FSP) as prescribed by the TEC, Chapter 42; TEC, , as amended by House Bill (HB) 441 and HB 2442, 85th Texas Legislature, Regular Session, 2017, which states that for each school year, each school district must operate so that the district provides for at least 75,600 minutes, including time allocated for instruction, intermissions, and recesses, for students. TEC, (d), authorizes the commissioner to adopt rules to implement the section. TEC, (f), states that a school district may not provide student instruction on Memorial Day but that if a school district would be required to provide student instruction on Memorial Day to compensate for minutes of instruction lost because of school closures caused by disaster, flood, extreme weather conditions, fuel curtailment, or another calamity, the commissioner shall approve the instruction of students for fewer than the number of minutes required under TEC, (a); TEC, , which states that school districts may not schedule the last day of school for students before May 15; TEC, , as amended by Senate Bill (SB) 1152, 85th Texas Legislature, Regular Session, 2017, which requires that a school district excuse a student who is 17 years of age or older from attending school to pursue enlistment in a branch of the armed services of the United States or the Texas National Guard, provided that (1) the district may not excuse for this purpose more than four days of school during the period the student is enrolled in high school; and (2) the district verifies the student's activities related to pursuing enlistment in a branch of the armed services or the Texas National Guard. The statute requires each school district to adopt procedures to verify a student's activities as described by TEC, (b-5); TEC, 30A.153, which states that, subject to the limitation imposed under the TEC, 30A.153(a-1), a school district or open-enrollment charter school in which a student is enrolled is entitled to funding under the TEC, Chapter 42, or in accordance with 42 TexReg 6180 November 3, 2017 Texas Register

125 the terms of a charter granted under the TEC, , for the student's enrollment in an electronic course offered through the state virtual school network in the same manner that the district or school is entitled to funding for the student's enrollment in courses provided in a traditional classroom setting, provided that the student successfully completes the electronic course; TEC, , which states that the commissioner, in accordance with the rules of the State Board of Education, shall take such action and require such reports consistent with the TEC, Chapter 42, as may be necessary to implement and administer the FSP; TEC, , as amended by SB 2084 and HB 2442, 85th Texas Legislature, Regular Session, 2017, which states that average daily attendance is the quotient of the sum of attendance for each day of the minimum number of days of instruction as described under the TEC, (a), divided by the minimum number of days of instruction; TEC, , which states that for each student in average daily attendance in a special education program under the TEC, Chapter 29, Subchapter A, in a mainstream instructional arrangement, a school district is entitled to an annual allotment equal to the adjusted basic allotment multiplied by 1.1. For each full-time equivalent student in average daily attendance in a special education program under the TEC, Chapter 29, Subchapter A, in an instructional arrangement other than a mainstream instructional arrangement, a district is entitled to an annual allotment equal to the adjusted basic allotment multiplied by a weight determined according to its instructional arrangement; TEC, , which states that for each student who is educationally disadvantaged or who is a student who does not have a disability and resides in a residential placement facility in a district in which the student's parent or legal guardian does not reside, a district is entitled to an annual allotment equal to the adjusted basic allotment multiplied by 0.2, and by 2.41 for each full-time equivalent student who is in a remedial and support program under the TEC, , because the student is pregnant; TEC, , which states that for each student in average daily attendance in a bilingual education or special language program under the TEC, Chapter 29, Subchapter B, a district is entitled to an annual allotment equal to the adjusted basic allotment multiplied by 0.1; and TEC, , as amended by SB 22 and HB 3593, 85th Texas Legislature, Regular Session, 2017, which states that for each full-time equivalent student in average daily attendance in an approved career and technology education program in Grades 9-12 or in career and technology education programs for students with disabilities in Grades 7-12, a district is entitled to weighted funding. CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code (TEC), 7.055(b)(35); , as amended by House Bill (HB) 441 and HB 2442, 85th Texas Legislature, Regular Session, 2017; ; , as amended by Senate Bill (SB) 1152, 85th Texas Legislature, Regular Session, 2017; 30A.153; ; , as amended by Senate Bill (SB) 2084 and HB 2442, 85th Texas Legislature, Regular Session, 2017; ; and , as amended by SB 22 and HB 3593, 85th Texas Legislature, Regular Session, 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 October 23, TRD Cristina De La Fuente-Valadez Director, Rulemaking Texas Education Agency Effective date: November 12, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) TITLE 22. EXAMINING BOARDS PART 24. TEXAS BOARD OF VETERINARY MEDICAL EXAMINERS CHAPTER 573. RULES OF PROFESSIONAL CONDUCT SUBCHAPTER G. OTHER PROVISIONS 22 TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this amendment to , concerning Proof of Acceptable Continuing Education. The amendment is adopted without changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3104) and will not be republished. Reasoned Justification and Factual Basis The purpose of the amendment is to ensure consistency with new 577.5, regarding Committees of the Board, which is being published elsewhere in this issue of the Texas Register. The amendment allows the Board's Licensing Committee or an advisory committee of the Board to approve methods of earning acceptable continuing education. Summary of Comments and Agency Response The agency did not receive any public comments that concerned the proposed amendment to this rule. Statutory Authority The amendment is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and under the authority of , Occupations Code, which states that the Board may establish general categories of continuing education that meet the needs of license holders. No other statutes, articles, or codes are affected by the adoption. 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 October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) ADOPTED RULES November 3, TexReg 6181

126 CHAPTER TAC PRACTICE AND PROCEDURE The Texas Board of Veterinary Medical Examiners (Board) adopts this amendment to 575.4, concerning Conduct and Decorum. The amendment is adopted without changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3111) and will not be republished. Reasoned Justification and Factual Basis The purpose of the amendments is to ensure consistency with new 577.5, regarding Committees of the Board, which is being published elsewhere in this issue of the Texas Register. The amendment would remove the statement that all meetings of the Board's committees are open to the public, as certain meetings of the Board's standing committees will not be open to the public. All committee meetings would remain subject to the open meeting requirements of Chapter 551, Government Code. Summary of Comments and Agency Response One commenter questioned why certain meetings of the Board's standing committees would not be open to the public. The agency responds that informal conferences are confidential and have never been open to the public. Members of the Enforcement Committee comprise the panels at informal conferences, thus these amendments were necessary to clarify that such proceedings are not open to the public. The amendments do not alter current Board practice. Statutory Authority The amendments are adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter. No other statutes, articles, or codes are affected by the adoption. 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 October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this amendment to , concerning Informal Conferences. The amendment is adopted with changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3111). Reasoned Justification and Factual Basis The purpose of the amendment is to ensure consistency with new 577.5, regarding Committees of the Board, which is being published elsewhere in this issue of the Texas Register. The amendment clarifies that informal conferences may be attended by three members of the Board's Enforcement Committee, which is established in new The amendment also clarifies current Board practice that public members of the Enforcement Committee attend informal conferences on a rotating basis, and that the Board president may appoint alternate veterinarian members to serve in case of a conflict. Changes to this adopted amendment respond to public comments or otherwise reflect non-substantive variations from the proposed amendment. The changes affect no new persons, entities, or subjects other than those given notice, and compliance will be less burdensome than under the proposed amendment. Accordingly, re-proposal of the amendment is not required. Summary of Comments and Agency Response Multiple commenters questioned why informal conference panels are comprised of two veterinary Board members and one public member. These commenters felt an equal balance would be fairer. Under , Occupations Code, at least two veterinarian Board members and one public Board member must attend informal conferences that require medical expertise. The agency responds that requiring the attendance of additional public Board members at informal conferences would reduce the number of Board members eligible to vote on final disposition of a case. One commenter recommended modifying the amendments to state that the Board may be represented at informal conferences by two veterinary Board members and one of the Board's three public members, to clarify that the licensed veterinary technician member may not attend informal conferences. The agency agrees with this recommendation and adopts the amendment with this change. Multiple commenters recommended a provision barring Board members that previously reviewed a complaint from attending informal conferences. Recent amendments to (d), Occupations Code, statutorily require this practice for complaints filed after September 1, 2017, thus the agency responds that the recommended change is unnecessary. Statutory Authority The amendment is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and under the authority of , Occupations Code, which states that the Board shall by rule adopt procedures governing informal dispositions of contested case under , Government Code. No other statutes, articles, or codes are affected by the adoption Informal Conferences. (a) The informal conference is the last stage in the investigation of a complaint. The licensee has the right to waive his or her attendance at the conference. The licensee may be represented by counsel. (b) The Board may be represented at the informal conference by two veterinarian members and one public member of the Board's Enforcement Committee. Public members of the Enforcement Committee shall attend informal conferences on a rotating basis. The Board president may appoint a veterinarian member of the Board to serve in the place of an Enforcement Committee member with a conflict in a particular case. The complainant and the licensee and the licensee's legal counsel may attend the conference. Any other attendees are allowed at the discretion of the executive director. The executive director, general counsel, or the director of enforcement shall conduct the conference. 42 TexReg 6182 November 3, 2017 Texas Register

127 (c) Procedure. Subject to the discretion of the executive director, the following procedure will be followed at the informal conference. The executive director, general counsel, or director of enforcement shall explain the purpose of the conference and the rights of the participants, lead the discussion of the allegations of the complaint, and explain the possible courses of action at the conclusion of the conference. The licensee will be asked to respond to the allegations. The complainant will be allowed to make comments relevant to the allegations. Comments of the licensee and complainant must be addressed to the person conducting the conference and not to each other. In the interest of maintaining decorum, the licensee or complainant may be asked to leave the room while the other is talking with the committee. Comments by the licensee may be used in furtherance of the current case against the licensee, any other case or investigation, and/or to initiate a new complaint or investigation. The Enforcement Committee members may ask questions of the licensee and complainant in order to fully develop the complaint record. The licensee or complainant may provide evidence to the Enforcement Committee that will be considered by the Enforcement Committee and become part of the investigation file. (d) At the conclusion of the informal conference, the Enforcement Committee shall determine if a violation has occurred. If the Enforcement Committee determines that a violation has not occurred, the Enforcement Committee, or their designee, will dismiss the complaint, and will advise all parties of the decision and the reasons why the complaint was dismissed. (e) If the Enforcement Committee determines that a violation has occurred and that disciplinary action is warranted, the executive director, or their designee, will advise the licensee of the alleged violations and offer the licensee a settlement in the form of an agreed order that specifies the disciplinary action and monetary penalty. With the agreement of the licensee, the Enforcement Committee may recommend that the licensee refund an amount not to exceed the amount the complainant paid to the licensee instead of or in addition to imposing an administrative penalty on the licensee. The executive director, or their designee, must inform the licensee that the licensee has a right to a hearing before an administrative law judge on the finding of the occurrence of the violation, the type of disciplinary action, and/or the amount of the recommended penalty. (f) Within the time period prescribed, the licensee must submit a written response to the Board: (1) accepting the settlement offer and recommended disciplinary action; or judge. (2) requesting a hearing before an administrative law (g) Additional negotiations may be held between Board staff and the licensee or the authorized representative. In consultation with the Board representatives, as available, the recommendations of the Board representatives may be subsequently modified based on new information, a change of circumstances, or to expedite a resolution in the interest of protecting the public. (h) The Board representative(s) shall be consulted and must concur with any subsequent substantive modifications before any recommendations are sent to the full Board for approval. (i) Board staff may communicate directly with the Board representative(s) after the informal conference for the purpose of discussing settlement of the case. (j) If the licensee accepts the settlement offer by signing the agreed order, the agreed order will be docketed for Board action at the next regularly scheduled Board meeting. (k) The recommendations may be adopted, modified, or rejected by the Board. (l) If the Board approves the agreed order with amendments, the executive director, or their designee, shall mail the amended agreed order to the licensee and the licensee shall have fourteen (14) days from receipt to accept the amended agreed order by signing and returning it to the Board. If a licensee does not sign an amended agreed order or does not respond within the fourteen (14) days, the complaint will be scheduled for a hearing before an administrative law judge. If the Board rejects the agreed order, the complaint may be scheduled for a hearing before an administrative law judge, or the Board may direct the executive director to take other appropriate action. 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 October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this amendment to , concerning Temporary License Suspension Proceedings. The amendment is adopted without changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3109) and will not be republished. Reasoned Justification and Factual Basis The purpose of the amendment is to ensure consistency with new 577.5, regarding Committees of the Board, which is being published elsewhere in this issue of the Texas Register. The amendment tasks the Board s Executive Committee, which is established in new 577.5, with conducting temporary license suspension proceedings. Summary of Comments and Agency Response The agency did not receive any public comments that concerned the proposed amendment to this rule. Statutory Authority The amendment is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and under the authority of , Occupations Code, which states that temporary license suspension proceedings may be conducted by an executive committee of the Board, and that the Board shall adopt procedures for temporary license suspensions. No other statutes, articles, or codes are affected by the adoption. The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority. ADOPTED RULES November 3, TexReg 6183

128 Filed with the Office of the Secretary of State on October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this amendment to , concerning Negotiated Rulemaking. The amendment is adopted with changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3110). The changes consist of the capitalization of the word "Board" throughout the text of the rule. Reasoned Justification and Factual Basis The purpose of the amendment is to ensure consistency with new 577.5, regarding Committees of the Board, which is being published elsewhere in this issue of the Texas Register. The amendment allows a standing committee of the Board to direct the Board's negotiated rulemaking coordinator to begin negotiated rulemaking procedures. The previous rule references a "rules committee," which is not included in new Summary of Comments and Agency Response The agency did not receive any public comments that concerned the proposed amendment to this rule. Statutory Authority The amendment is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and the authority of Chapter 2008, Government Code, which states that a state agency may engage in negotiated rulemaking. No other statutes, articles, or codes are affected by the adoption Negotiated Rulemaking. (a) Notice of a proposed new rule or amendment of any existing rule shall be made in accordance with the provisions of and of the Administrative Procedures Act. (b) The Board's policy is to encourage the use of negotiated rulemaking for the adoption of Board rules in appropriate situations. (c) The Board's general counsel or their designee shall be the Board's negotiated rulemaking coordinator (NRC). The NRC shall perform the following functions, as required: (1) coordinate the implementation of the policy set out in subsection (a) of this section, and in accordance with the Negotiated Rulemaking Act, Chapter 2008, Government Code; (2) serve as a resource for any staff training or education needed to implement negotiated rulemaking procedures; and, (3) collect data to evaluate the effectiveness of negotiated rulemaking procedures implemented by the Board. (d) The Board, a standing committee of the Board, or the executive director may direct the NRC to begin negotiated rulemaking procedures on a specified subject. 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 October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) CHAPTER 577. GENERAL ADMINISTRATIVE DUTIES SUBCHAPTER A. BOARD MEMBERS AND MEETINGS--DUTIES 22 TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this repeal of 577.5, concerning Advisory Committees, simultaneously with the new 577.5, which is being published elsewhere in this issue of the Texas Register. The repeal is adopted without changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3111) and will not be republished. Reasoned Justification and Factual Basis This repeal is necessary because the Board is simultaneously adopting a new rule that establishes standing committees, advisory committees, and ad hoc committees of the Board, and complies with the requirements of , Occupations Code, and Chapter 2110, Government Code. Summary of Comments and Agency Response No comments were received regarding the repeal. Statutory Authority The repeal is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and the authority of , Occupations Code, which states that the Board may appoint advisory committees to perform advisory functions as assigned by the Board. No other statutes, articles, or codes are affected by the adoption. 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 October 23, TRD TexReg 6184 November 3, 2017 Texas Register

129 Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) TAC The Texas Board of Veterinary Medical Examiners (Board) adopts this new 577.5, concerning Committees of the Board, simultaneously with the adopted repeal of current 577.5, concerning Advisory Committees. The new rule is adopted with changes to the proposed text published in the June 16, 2017, issue of the Texas Register (42 TexReg 3111). Reasoned Justification and Factual Basis The purpose of the new rule is to conform to the requirements of , Occupations Code, and Chapter 2110, Government Code. Additionally, the new rule differentiates between standing committees, advisory committees, and ad hoc committees of the Board. The new rule establishes standing committees of the Board, including the Executive Committee, which provides general leadership and direction for the Board, and standing committees to oversee essential Board functions, including enforcement, licensing, and finance. The new rule also acknowledges the Equine Dental Provider Advisory Committee, which is established pursuant to Subchapter L, Chapter 801, Occupations Code, and establishes the Licensed Veterinary Technician Advisory Committee, which provides independent expertise regarding Board functions that impact licensed veterinary technicians. Finally, the new rule allows the Board to assign Board members to temporary ad hoc committees to accomplish a particular task or study a particular issue. The text of the adopted new rule differs from the text of the proposed rule to clarify which committees will have public members and which committees will include a licensed veterinary technician (LVT) member. At the time the new rule was proposed, the Board did not have an LVT member. The adopted new rule also removes the Staff Relations Committee, as the Board has now hired a permanent Executive Director. Changes to the adopted new rule respond to public comments or otherwise reflect nonsubstantive variations from the proposed new rule. The changes affect no new persons, entities, or subjects other than those given notice, and compliance will be less burdensome than under the proposed new rule. Accordingly, re-proposing the new rule is not required. Summary of Comments and Agency Response One commenter recommended modifying the amendments to state that the Enforcement Committee shall be comprised of two veterinary members and the Board's three public members, to clarify that the licensed veterinary technician member may not serve on the Enforcement Committee. As noted above, the agency agrees with this recommendation and adopts the new rule with this change. Statutory Authority The new rule is adopted under the authority of (a), Occupations Code, which states that the Board may adopt rules necessary to administer the chapter, and the authority of , Occupations Code, which states that the Board may appoint advisory committees to perform advisory functions as assigned by the Board. No other statutes, articles, or codes are affected by the adoption Committees of the Board. (a) Standing and Permanent Committees. The following are standing and permanent committees of the Board, established pursuant to Occupations Code, Chapter 801. The responsibilities and authority of these committees include those duties and powers set forth below and any other responsibilities delegated by the Board. (1) Executive Committee. (A) Membership. The Executive Committee shall be comprised of the Board president, vice president, and secretary. The Board president shall annually appoint members of the Board to serve as the Board vice president and secretary. The Board president shall serve as the chair of the Executive Committee. (B) Responsibilities and Authority. The Executive Committee shall have the responsibility and authority to: (i) study and make recommendations to the Board regarding future Board goals and objectives and the establishment of priorities; (ii) study and make recommendations to the Board regarding methods to improve the efficiency and effectiveness of the administration of the Board; (iii) review and evaluate Board rules regarding the Board's general administrative duties, or any Board function the committee determines needs consideration, study and recommend changes and additions to such rules; (iv) assist in the preparation and presentation of information concerning the Board to the Legislature and other state officials; (v) take action on matters of urgency that arise between Board meetings; (vi) conduct temporary license suspension proceedings pursuant to Occupations Code and of this title; (vii) study and make recommendations to the Board regarding the division of responsibilities between the Board and Board staff pursuant to Occupations Code ; (viii) conduct an annual performance evaluation of the Executive Director, report findings and make employment recommendations to the Board; and (ix) in the event of a vacancy in the Executive Director position, oversee the hiring process, conduct interviews, and make employment recommendations to the Board. (2) Enforcement Committee. (A) Membership. The Enforcement Committee shall be comprised of two veterinary Board members and the Board's three public members. The Board president shall annually appoint members of the Board to serve on the Enforcement Committee. The Board president shall appoint the chair of the Enforcement Committee. (B) Responsibilities and Authority. The Enforcement Committee shall have the responsibility and authority to: process; (i) oversee the Board's enforcement and disciplinary ADOPTED RULES November 3, TexReg 6185

130 (ii) study and make recommendations to the Board regarding future enforcement goals and objectives and the establishment of enforcement priorities; (iii) study and make recommendations to the Board regarding methods to improve the efficiency and effectiveness of the administration of the Board's enforcement and disciplinary process; (iv) review and evaluate Board rules regarding the enforcement and disciplinary process, study and recommend changes and additions to such rules; (v) conduct informal conferences pursuant to Occupations Code and of this title; (vi) conduct proceedings related to requests for reinstatement of a license pursuant to of this title; (vii) conduct proceedings related to requests for modification and termination of agreed orders and disciplinary orders pursuant to of this title; and (viii) conduct informal conferences in cease and desist proceedings pursuant to of this title. (3) Licensing Committee. (A) Membership. The Licensing Committee shall be comprised of one veterinary Board member, the Board's LVT member, and one public Board member. The Board president shall annually appoint members of the Board to serve on the Licensing Committee. The Board president shall appoint the chair of the Licensing Committee. (B) Responsibilities and Authority. The Licensing Committee shall have the responsibility and authority to: (i) oversee the Board's licensing process; (ii) study and make recommendations to the Board regarding future licensing goals and objectives and the establishment of licensing priorities; (iii) study and make recommendations to the Board regarding methods to improve the efficiency and effectiveness of the administration of the Board's licensing process; (iv) review and evaluate Board rules regarding the licensing process, study and recommend changes and additions to such rules; (v) in coordination with the Finance Committee, review and evaluate Board rules regarding the Board's fee schedule, study and recommend changes and additions to such rules; (vi) approve acceptable methods of earning continuing education hours pursuant to of this title; (vii) conduct proceedings relating to licensure eligibility pursuant to of this title; (viii) review and evaluate examinations administered by the Board and recommend changes to examination questions and administration; and (ix) maintain communication with Texas veterinary schools, Veterinary Technician Programs, and EDP certifications programs. (4) Finance Committee. (A) Membership. The Finance Committee shall be comprised of three Board members, with at least one veterinary Board member and one non-veterinary Board member. The Board president shall annually appoint members of the Board to serve on the Finance Committee. The Board president shall appoint the chair of the Finance Committee. (B) Responsibilities and Authority. The Finance Committee shall have the responsibility and authority to: (i) oversee the Board's budget and finances; (ii) study and make recommendations to the Board regarding future budget and finance goals and objectives and the establishment of budget and finance priorities; (iii) study and make recommendations to the Board regarding methods to improve the efficiency and effectiveness of the administration of the Board's budget and finances; review staff reports regarding the Board's bud- (iv) get and finances; (v) in coordination with the Licensing Committee, review and evaluate Board rules regarding the Board's fee schedule, study and recommend changes and additions to such rules; and (vi) assist in the preparation and presentation of information concerning the Board's budget and finances to the Legislature and other state officials. (b) Advisory Committees. The following are advisory committees of the Board, established pursuant to Chapter 801, Occupations Code. The responsibilities and authority of these committees include those set forth below and any other responsibilities and authority provided by law or delegated by the Board. (1) Equine Dental Provider Advisory Committee. (A) Membership. The Equine Dental Provider (EDP) Advisory Committee shall be comprised of three members. The Board president shall make appointments pursuant to Occupations Code and The Board president shall biennially designate a presiding officer of the EDP Advisory Committee pursuant to Occupations Code (B) Responsibilities and Authority. The EDP Advisory Committee shall have the responsibilities and authority provided by law, including the responsibility and authority to: (i) advise and assist the Board in adopting rules related to licensed equine dental providers; and (ii) consult with the Board regarding matters relating to a disciplinary action that involves a licensed equine dental provider. (2) Licensed Veterinary Technician Advisory Committee. (A) Membership. The Licensed Veterinary Technician (LVT) Advisory Committee shall be comprised of six members, with at least two licensed veterinary technician members, one veterinarian member, and one public member. The Board president shall annually appoint members to the committee. The Board may amend committee membership as needed. The LVT Advisory Committee shall select a chair from among its members. (B) Responsibilities and Authority. The LVT Advisory Committee shall provide independent expertise on Board functions and policies concerning LVTs, but may not be involved in setting Board policy. The LVT Advisory Committee shall have the responsibility and authority to: (i) advise and assist the Board in adopting rules related to licensed veterinary technicians; 42 TexReg 6186 November 3, 2017 Texas Register

131 (ii) consult with the Board regarding matters relating to a disciplinary action that involves a licensed veterinary technician; (iii) solicit public input on issues addressed by the committee through public testimony, facsimile, telephone, mail, electronic mail, online message board, or any other reasonable means; and (iv) through the chair of the committee or by written statement, report the findings and recommendations of the committee to the Board at a Board meeting held pursuant to Chapter 551, Government Code. (C) Meetings. Meetings of the LVT Advisory Committee shall be held pursuant to Chapter 551, Government Code. A meeting may be held by telephone conference call. (D) Annual Evaluation. The Board shall annually evaluate the committee's work and usefulness, and the costs related to the committee's existence. (c) Ad Hoc Committees. (1) The Board may establish ad hoc committees of Board members to address a specific subject or accomplish a specific task. At the time the Board establishes an ad hoc committee, the Board must clearly designate the subject to be addressed or the task to be accomplished. (2) Each ad hoc committee established by the Board shall expire upon the completion of the specific task for which the ad hoc committee was established, or upon the first anniversary of the date the committee was established, whichever occurs earlier. The Board may vote to continue an ad hoc committee beyond its expiration date if necessary to address the specific subject or accomplish the specific task for which it was established. (3) The Board president shall appoint members of the Board to serve on each ad hoc committee and shall designate a chair for each ad hoc committee. Each ad hoc committee established by the Board shall have at least one veterinary Board member and one non-veterinary Board member. 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 October 23, TRD Michelle Griffin Interim General Counsel Texas Board of Veterinary Medical Examiners Effective date: November 12, 2017 Proposal publication date: June 16, 2017 For further information, please call: (512) TITLE 37. PUBLIC SAFETY AND CORREC- TIONS PART 5. TEXAS BOARD OF PARDONS AND PAROLES CHAPTER 145. PAROLE SUBCHAPTER A. PAROLE PROCESS 37 TAC The Texas Board of Pardons and Paroles adopts new rule 37 TAC 145.7, concerning initial review. The new rule is adopted without changes to the proposed text as published in the August 4, 2017, issue of the Texas Register (42 TexReg 3866). The text of the rule will not be republished. New rule is adopted to update the initial review of the offender in which the Board identifies the classes or programs listed in the Individual Treatment Plans and requires the Board to provide the offender with a copy of the plan. No public comments were received regarding adoption of the new rule. The new rule is adopted under Texas Government Code , , , , and Section requires the board to adopt rules relating to the decision-making processes used by the board and parole panels. Section and authorize the Board to adopt reasonable rules as proper or necessary relating to the eligibility of an offender for release to mandatory supervision and to act on matters of release to mandatory supervision. Section provides the board authority to adopt policy establishing the date on which the board may reconsider for release an inmate who has previously been denied release. Section provides authority for the discretionary release of offenders on mandatory supervision. 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 October 23, TRD Bettie Wells General Counsel Texas Board of Pardons and Paroles Effective date: November 12, 2017 Proposal publication date: August 4, 2017 For further information, please call: (512) TITLE 40. SOCIAL SERVICES AND ASSIS- TANCE PART 19. DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES CHAPTER 711. INVESTIGATIONS OF INDIVIDUALS RECEIVING SERVICES FROM CERTAIN PROVIDERS The Executive Commissioner of the Health and Human Services Commission (HHSC), adopts amendments to 711.3, 711.5, , , , , , , and ; repeal of ; and new and in Chapter 711, concerning Investigations of Individuals Receiving Services from Certain Providers. The amendments to and are adopted with changes to the proposed text published in the July 21, 2017, issue of the Texas Register (42 TexReg 3628). The amendments to 711.5, , , ADOPTED RULES November 3, TexReg 6187

132 711.23, , , and ; repeal of ; and new and , are adopted without changes to the proposed text and will not be republished. BACKGROUND AND JUSTIFICATION The adopted amendments, repeal and new rules are intended to address specific challenges created by the expanded scope and jurisdiction of Adult Protective Services (APS) while incorporating stakeholder input. Senate Bills 760 and 1880, 84(R), 2015, expanded the scope and jurisdiction of the APS Provider Investigations (PI) program to resolve gaps, inconsistencies and ambiguities in the investigation of abuse, neglect and exploitation of individuals receiving Medicaid home and community-based services. The expansion ensured Texas was in compliance with revised Centers for Medicare and Medicaid Services requirements to ensure the health and welfare of consumers. SBs 760 and 1880 also brought the APS statutory framework up to date regarding the transition to managed care from the 83rd Legislature. With the expanded scope and jurisdiction, APS received additional funding for staff to manage the increased intakes. However, the increase in intakes has far exceeded projections. APS PI intakes increased 73% from FY 15 to FY 16, but completed investigations increased by only 5%. Despite the initial additional staff, the number of intakes has exceeded staff capacity; cases have backlogged; and cases have taken longer to complete. COMMENTS The 30-day comment period ended August 20, During this period, HHSC received comments regarding the adoption of these rules. Comments were received from Disability Rights Texas (Kathryn Lewis), Linda Logan, and Aaryce Hayes. No comments were received concerning (How are the terms in this chapter defined?); however, HHSC is adopting this rule with changes to paragraph (2), to reflect the general definition of the APS acronym simply as Adult Protective Services, without identifying it as a division of DFPS. This change reflects that the APS functions are no longer wholly assigned to DFPS, since part of APS transferred to HHSC. Comment regarding proposed (What does APS investigate under this chapter?), the commenter requested we expand the proposed rule to include "individuals seeking services." Response: HHSC declines to make the suggested change to 711.5, as such a change would exceed APS PI s statutory authority. Comment regarding proposed (How is physical abuse defined?), the commenter requested a definition for "seclusion." Response: HHSC declines to make the suggested change at this time as seclusion is already defined in HHSC APS PI policy. Comments regarding proposed (How are investigations prioritized?) and (When must the investigator complete the investigation?), the commenter requested HHCS modify the rules to ensure all settings receive the same investigation prioritization process and timeframes for investigation completion. Response: HHSC declines to make the suggested changes regarding and as investigation priorities and timeframes for certain provider settings are the result of the Department of Justice settlement agreement. Multiple commenters expressed concern regarding proposed (What are the requirements for face-to-face contact with the alleged victim?). The commenters concerns are that some individuals would not receive a face-to-face contact when necessary and the language in subsection (b) of the rule is too broad and should only apply to subsection (a)(1) and (2). Response: HHSC declines to make the suggested changes to and intends to address the concerns in policy. Language in subsection (a) requires a face-to-face contact with the alleged victim, unless certain intake criteria are met. Subsection (b) is applicable to an investigation only when a face-to-face contact is not required. This rule change is a direct response to the increase in workload without additional resources. Comments regarding proposed (When must the investigator complete the investigation?) and (What if the investigator cannot complete the investigation on time?), the commenter had concerns regarding the rules in that extended investigation timeframes and extension timeframes would delay the collection of relevant evidence and compromise investigation quality. Response: HHSC declines to make the suggested changes to or and addresses evidence collection in depth in HHSC APS PI policy. No comments were received concerning (When must the investigator complete the investigation?); however, HHSC is adopting this rule with changes to clarify that subsection (b) is still applicable to subsection (a)(2) and (3). The intention of this rule proposal was to add an investigation completion timeframe of 30 days, not change any other aspect of rule requirements. SUBCHAPTER A. INTRODUCTION 40 TAC 711.3, 711.5, , , STATUTORY AUTHORITY These amendments are adopted under Human Resources Code (HRC) Ch. 48, Subchapter F, and Government Code , which provide that the Health and Human Services Executive Commissioner shall adopt rules for the operation of and provision of health and human services by the health and human services system. The amendments implement HRC Ch. 48, Subchapter F, and Texas Family Code How are the terms in this chapter defined? The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise: (1) Adult--An adult is a person: (A) 18 years of age or older; or (B) under 18 years of age who: (i) is or has been married; or (ii) has had the disabilities of minority removed pursuant to the Texas Family Code, Chapter 31. (2) APS--Adult Protective Services. (3) Agent--An individual (e.g., student, volunteer), not employed by but working under the auspices of a service provider. 42 TexReg 6188 November 3, 2017 Texas Register

133 (4) Allegation--A report by an individual that an individual receiving services has been or is in a state of abuse, neglect, or exploitation as defined by this subchapter. (5) Allegation type--the type of allegation investigated under this chapter. APS investigates the following allegation types: (A) physical abuse; (B) sexual abuse; (C) verbal/emotional abuse; (D) neglect; and (E) exploitation. (6) Alleged perpetrator-- A direct provider alleged to have committed an act of abuse, neglect, or exploitation. (7) Child--A person under 18 years of age who: (A) is not and has not been married; or (B) has not had the disabilities of minority removed pursuant to the Texas Family Code, Chapter 31. (8) Clinical practice--relates to the demonstration of professional competence of a licensed professional as described by the appropriate licensing professional board. (9) Community center--a community mental health center; community center for individuals with intellectual or developmental disabilities; or community mental health center and community center for individuals with intellectual or developmental disabilities, established under the Health and Safety Code, Title 7, Chapter 534, Subchapter A. (10) Consumer Directed Services (CDS) employer--a consumer directed services client or their legally authorized representative. (12) DFPS--Department of Family and Protective Services. (11) DADS--Department of Aging and Disability Services. (13) DSHS--Department of State Health Services. (14) Designated Perpetrator--A direct provider who has committed an act of abuse, neglect, or exploitation. (15) Direct Provider--A person, employee, agent, contractor, or subcontractor of a service provider responsible for providing services to an individual receiving services. (16) Emergency order for protective services--a court order for protective services obtained under Human Resources Code, (17) Facility-- (A) DADS and DSHS central offices, state supported living centers, state hospitals, the Rio Grande State Center, the Waco Center for Youth, the El Paso Psychiatric Center, and community services operated by DADS or DSHS; (B) A person contracting with a health and human services agency to provide inpatient mental health services; and (C) Intermediate care facilities for individuals with an intellectual disability or related conditions (ICF-IID) licensed under Chapter 252, Health and Safety Code. (18) HHSC--Health and Human Services Commission. (19) Home and community-based services--have the meaning given to them in Human Resources Code (a)(5) as services provided in the home or community in accordance with 42 U.S.C. 1315, 42 U.S.C. 1315a, 42 U.S.C. 1396a, or 42 U.S.C. 1396n. (20) Home and community-based services (HCS) waiver program--the Medicaid program authorized under 1915(c) of the federal Social Security Act (42 U.S.C. 1396n(c)) for the provision of services to persons with an intellectual or developmental disability described by (11)(B), Government Code. (21) Home and community support services agency (HC- SSA)--An agency licensed under Chapter 142, Health and Safety Code. (22) ICF-IID--A licensed intermediate care facility for individuals with an intellectual disability or related conditions as described in Chapter 252, Health and Safety Code. (23) Incitement--To spur to action or instigate into activity; the term implies responsibility for initiating another's actions. (24) Individual receiving services-- (A) An adult or child who receives services from a provider as that term is defined in (a)(9), Human Resources Code. (B) An adult or child who lives in a residence that is owned, operated, or controlled by an HCS waiver program provider regardless of whether the individual is receiving HCS waiver program services; or (C) A child receiving services from a HCSSA. (25) Investigator--An employee of Adult Protective Services who has: (A) demonstrated competence and expertise in conducting investigations; and (B) received training on techniques for communicating effectively with individuals with a disability. (26) Limited Service Provider--An entity that contracts with a service provider to provide services. (27) Local authority-- Either: (A) a local mental health authority designated by the HHSC executive commissioner in accordance with , Health and Safety Code, and as defined by , Health and Safety Code; or (B) a local intellectual and developmental disability authority designated by the HHSC executive commissioner in accordance with 533A.035, Health and Safety Code, and as defined by , Health and Safety Code. (28) Non-serious physical injury-- (A) In state supported living centers and state hospitals only, any injury requiring minor first aid and determined not to be serious by a registered nurse, advanced practice registered nurse (APRN), or physician. (B) For all other service providers any injury determined not to be serious by the appropriate medical personnel. Examples of non-serious physical injury include: smaller; or (i) (ii) (iii) superficial laceration; contusion two and one-half inches in diameter or abrasion. ADOPTED RULES November 3, TexReg 6189

134 (29) Perpetrator--A direct provider who has committed or alleged to have committed an act of abuse, neglect, or exploitation. (30) Preponderance of evidence--evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. (31) Prevention and management of aggressive behavior (PMAB)--DADS and DSHS' proprietary risk management program that uses the least intrusive, most effective options to reduce the risk of injury for persons served and staff from acts or potential acts of aggression. (32) Provider--A provider is: (A) a facility; (B) a community center, local mental health authority, and local intellectual and developmental disability authority; (C) a person who contracts with a health and human services agency or managed care organization to provide home and community-based services; (D) a person who contracts with a Medicaid managed care organization to provide behavioral health services; (E) a managed care organization; (F) an officer, employee, agent, contractor, or subcontractor of a person or entity listed in subparagraphs (A)-(E) of this paragraph; and (G) an employee, fiscal agent, case manager, or service coordinator of an individual employer participating in the consumerdirected service option, as defined by , Government Code. (33) Reporter--The person, who may be anonymous, making an allegation. (34) Serious physical injury-- (A) In state supported living centers and state hospitals only, any injury requiring medical intervention or hospitalization or any injury determined to be serious by a physician or APRN. Medical intervention is treatment by a licensed medical doctor, osteopath, podiatrist, dentist, physician assistant, or APRN. For the purposes of this subchapter, medical intervention does not include first aid, an examination, diagnostics (e.g., x-ray, blood test), or the prescribing of oral or topical medication; (B) For all other service providers, any injury determined to be serious by the appropriate medical personnel. Examples of serious physical injury include: diameter; (vii) any laceration requiring sutures or wound closure. (i) fracture; (ii) dislocation of any joint; (iii) internal injury; (iv) contusion larger than two and one-half inches in (v) concussion; (vi) second or third degree burn; or (35) Service Provider--A provider, HCSSA, or HCS waiver program provider responsible for employing, contracting with, or supervising the direct provider. (36) Sexually transmitted disease--any infection with or without symptoms or clinical manifestations that can be transmitted from one person to another by sexual contact. (37) Texas Home Living (TxHmL) waiver program--the Medicaid program authorized under 1915(c) of the federal Social Security Act (42 U.S.C. 1396n(c)) for the provision of services to persons with an intellectual or developmental disability described by (11)(D), Government Code. (38) Victim--An individual receiving services who is alleged to have been abused, neglected, or exploited. 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 October 16, TRD Karen Ray Chief Counsel Department of Family and Protective Services Effective date: November 5, 2017 Proposal publication date: July 21, 2017 For further information, please call: (512) SUBCHAPTER E. CONDUCTING THE INVESTIGATION 40 TAC This repeal is adopted under Human Resources Code (HRC) Ch. 48, Subchapter F, and Government Code , which provide that the Health and Human Services Executive Commissioner shall adopt rules for the operation of and provision of health and human services by the health and human services system. 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 October 16, TRD Karen Ray Chief Counsel Department of Family and Protective Services Effective date: November 5, 2017 Proposal publication date: July 21, 2017 For further information, please call: (512) TAC , , , , , These amendments and new rules are adopted under Human Resources Code (HRC) Ch. 48, Subchapter F, and Government Code , which provide that the Health and Human Services Executive Commissioner shall adopt rules for the operation 42 TexReg 6190 November 3, 2017 Texas Register

135 of and provision of health and human services by the health and human services system When must the investigator complete the investigation? (a) Unless an extension is granted in accordance with of this title (relating to What if the investigator cannot complete the investigation on time?), the investigator must complete the investigation within the following time frames: (1) within 10 calendar days of the allegation by DFPS if the investigation is in a state supported living center or the ICF-IID component of the Rio Grande State Center. (2) within 14 calendar days of receipt of the allegation by DFPS if the investigation is in a state hospital and is a Priority I or II. (3) within 21 calendar days of receipt of the allegation by DFPS if the investigation is in a state hospital and is a Priority III. (4) within 30 calendar days of receipt of the allegation by DFPS for all other investigations. (b) For investigations conducted under subsection (a)(2) - (4) of this section, if the deadline for completion of the investigation falls on a weekend or state holiday, then the investigator must complete the investigation by the end of the next business day. 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 October 16, TRD Karen Ray Chief Counsel Department of Family and Protective Services Effective date: November 5, 2017 Proposal publication date: July 21, 2017 For further information, please call: (512) PART 20. TEXAS WORKFORCE COMMISSION CHAPTER 854. DIVISION FOR BLIND SERVICES SUBCHAPTER B. VOCATIONAL REHABILITATION PROGRAM The Texas Workforce Commission (TWC) adopts the repeal of the following sections of Chapter 854, relating to the Division for Blind Services, without changes, as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4252): Subchapter B. Vocational Rehabilitation Program, , , , , , PART I. PURPOSE, BACKGROUND, AND AUTHORITY PART II. EXPLANATION OF INDIVIDUAL PROVISIONS PART I. PURPOSE, BACKGROUND, AND AUTHORITY The purpose of the adopted Chapter 854 rule change is to comply with Texas Labor Code , which requires TWC to integrate the two Vocational Rehabilitation (VR) programs--vr for individuals with visual impairments (Blind Services) and VR for individuals with other disabilities (Rehabilitation Services)--into one program. Section (b)(5) specifically requires TWC to recommend the adoption of any rules necessary to accomplish this integration by October 1, Currently, VR program rules for Blind Services are located in Chapter 854, Subchapter B, and VR program rules for Rehabilitation Services are located in Chapter 856. These chapters must be consolidated to create a unified rule base for TWC's VR program. Many sections in both chapters contain the same or similar language. However, some significant differences exist between the two chapters, and those differences must be resolved to integrate the two rule sets--and programs--into one. TWC adopts the repeal of Chapter 854, Subchapter B. In a separate, but concurrent, rulemaking adoption, TWC adopts revisions to Chapter 856 that contain all rules for the integrated VR program. Existing rule provisions that are unique to VR services for individuals with visual impairments in Chapter 854, Subchapter B, are incorporated into Chapter 856 and expanded to apply to all VR customers or retained to ensure the specialization of blind services, as appropriate. Where there are differences between the two rule chapters, TWC adopts, incorporating into Chapter 856, the version of the language from either chapter that is most representative of best practices in the VR program. PART II. EXPLANATION OF INDIVIDUAL PROVISIONS SUBCHAPTER B. VOCATIONAL REHABILITATION PRO- GRAM TWC adopts the repeal of Subchapter B in its entirety: SUBCHAPTER B. DIVISION 1: PROGRAM AND SUBCHAP- TER PURPOSE Purpose Section is repealed because similar provisions exist in A separate provision stating that the purpose of the VR program is to provide services to individuals with visual impairments is not necessary under the combined VR program, which will provide services to individuals with all types of disabilities Legal Authority Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Definitions Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary. Two definitions in (2) "Blind (person who is)" and (4) "Visual impairment"--are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules. SUBCHAPTER B. DIVISION 2: ELIGIBILITY Application Section is repealed because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Eligibility ADOPTED RULES November 3, TexReg 6191

136 Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Prohibited Factors Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Eligibility Determination Time Frame Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Determination of Ineligibility Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Case Closure Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary. SUBCHAPTER B. DIVISION 3: PROVISION OF VOCATIONAL REHABILITATION SERVICES Provision of Services Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Assessment for Determining Eligibility, Vocational Rehabilitation Needs, and Rehabilitation Technology Needs Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Physical and Mental Restoration Services Section is repealed because similar provisions exist in and and a separate section for Blind Services is no longer necessary Vocational and Other Training Services Section is repealed because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Maintenance Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Transportation Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Services to Family Members Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Interpreter Services and Note-Taking Services for Consumers Who Are Deaf and Tactile Interpreting for Consumers Who Are Deafblind Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Reader Services and Rehabilitation Teaching Services Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Employment Assistance Section is repealed because similar provisions exist in and a separate section for Blind Services is no longer necessary Post-Employment Services Section is repealed because similar provisions exist in and because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Occupational Licenses, Tools, Equipment, and Initial Stocks and Supplies Section is repealed because similar provisions exist in and because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Assistive Technology Devices Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Individualized Plan for Employment (IPE) Section is repealed because similar provisions exist in and because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules. SUBCHAPTER B. DIVISION 4: CONSUMER PARTICIPATION Purpose of Consumer Participation Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Scope of Consumer Participation Section is repealed because similar provisions exist in and because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Refusal to Disclose Economic Resources Section is repealed because similar provisions exist in SUBCHAPTER B. DIVISION 5: COMPARABLE BENEFITS Comparable Services and Benefits 42 TexReg 6192 November 3, 2017 Texas Register

137 Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules. SUBCHAPTER B. DIVISION 6: METHODS OF ADMINISTRA- TION OF VOCATIONAL REHABILITATION Application of an Order of Selection Section is repealed because similar provisions exist in and because applicable contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules. SUBCHAPTER B. DIVISION 7: CERTIFICATE OF BLINDNESS FOR TUITION WAIVER Purpose Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Legal Authority Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Definitions Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Eligibility Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules Certificate of Blindness for Tuition Waiver Section is repealed because the contents of this section are included in adopted amendments to Chapter 856, a separate, but concurrent, rulemaking adoption to integrate VR program rules. No comments were received. DIVISION 1. PURPOSE 40 TAC PROGRAM AND SUBCHAPTER The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION 2. ELIGIBILITY 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION 3. PROVISION OF VOCATIONAL REHABILITATION SERVICES 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD ADOPTED RULES November 3, TexReg 6193

138 Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION TAC CONSUMER PARTICIPATION The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION TAC COMPARABLE BENEFITS The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION 6. METHODS OF ADMINISTRA- TION OF VOCATIONAL REHABILITATION 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) DIVISION 7. CERTIFICATE OF BLINDNESS FOR TUITION WAIVER 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD TexReg 6194 November 3, 2017 Texas Register

139 Patricia Gonzalez Deputy Director, Workforce Development Division Program Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) CHAPTER 856. VOCATIONAL REHABILITA- TION SERVICES The Texas Workforce Commission (TWC) adopts the following new sections to Chapter 856, relating to the Division for Rehabilitation Services, without changes, as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4257): Subchapter B. Eligibility, Subchapter C. Provision of Vocational Rehabilitation Services, Subchapter D. Consumer Participation, New Subchapter G. Certificate of Blindness for Tuition Waiver, TWC adopts amendments to the following sections of Chapter 856, relating to the Division for Rehabilitation Services, without changes, as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4257): Subchapter A. Vocational Rehabilitation Services Program, 856.1, 856.3, and Subchapter B. Eligibility, Subchapter C. Provision of Vocational Rehabilitation Services, Subchapter D. Consumer Participation, Subchapter E. Comparable Benefits, Subchapter F. Methods of Administration of Vocational Rehabilitation, TWC adopts the repeal of the following sections of Chapter 856, relating to the Division for Rehabilitation Services, without changes, as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4257): Subchapter A. Vocational Rehabilitation Services Program, Subchapter E. Comparable Benefits, PART I. PURPOSE, BACKGROUND, AND AUTHORITY PART II. EXPLANATION OF INDIVIDUAL PROVISIONS PART I. PURPOSE, BACKGROUND, AND AUTHORITY Chapter 856 rule is amended to comply with Senate Bill (SB) 208, passed by the 84th Texas Legislature, Regular Session (2015), which transferred vocational rehabilitation (VR) services and related programs from the Texas Department of Assistive and Rehabilitative Services (DARS) to the Texas Workforce Commission (TWC) effective September 1, In addition to transferring VR services, SB 208 required TWC to integrate the two separate VR programs--vr for individuals with visual impairments (Blind Services) and VR for individuals with other disabilities (Rehabilitation Services)--into a single program. Texas Labor Code, (b)(5) specifically requires TWC to recommend the adoption of any rules necessary to accomplish this integration by October 1, Currently, VR program rules for Blind Services are located in Chapter 854, Subchapter B, and VR program rules for Rehabilitation Services are located in Chapter 856. These two sets of rules must be consolidated to create a unified rule base for TWC's VR program. Many sections in both chapters contain the same or similar language. However, some significant differences exist between the two chapters, and those differences must be resolved to integrate the two rule sets - and programs - into one. TWC adopts revisions to Chapter 856 to contain all rules for the integrated VR program. In a separate, but concurrent, rulemaking adoption, TWC adopts the repeal of Chapter 854, Subchapter B. Language that is unique to VR services for individuals with visual impairments in Chapter 854, Subchapter B would be incorporated into Chapter 856 and expanded to apply to all VR customers or retained to ensure the specialization of blind services, as appropriate. Where there are differences between the two rule chapters, TWC adopts incorporating into Chapter 856 the version of the language from either chapter that is most representative of best practices in the VR program. Many of the provisions in Chapter 856 refer to, or derive from, federal regulations under the Workforce Investment Act (WIA). With the 2014 passage of the Workforce Innovation and Opportunity Act (WIOA), WIA references are no longer accurate. As such, the VR program rules must be updated to reflect federal regulations enacted under WIOA. TWC adopts amending Chapter 856 to reflect corrected citation and wording with respect to WIOA and related federal regulations under WIOA. Additionally, with the passage of SB 208, the transfer of VR services from DARS to TWC, and other related changes, Chapter 856 is not consistent with state law. For example, Chapter 856 contains many references to DARS and its organizational structure, and incorporates DARS' terminology, such as referring to individuals receiving services as "consumers." TWC adopts amendments to replace the outdated agency and division names, as well as references to state statutes and rules in Chapter 856. TWC also adopts amendments to replace the word "consumer" with "customer" to be consistent with TWC terminology. PART II. EXPLANATION OF INDIVIDUAL PROVISIONS Note: Minor editorial changes are made that do not change the meaning of the rules and, therefore, are not discussed in the Explanation of Individual Provisions. SUBCHAPTER A. VOCATIONAL REHABILITATION SERVICES PROGRAM TWC adopts the following amendments to Subchapter A, including changing the name of Subchapter A to "Vocational Rehabilitation Services: Program and Purpose." Purpose Section replaces the reference to "the Department of Assistive and Rehabilitative Services (DARS), Division for Rehabilitation Services (DRS)" with "the Texas Workforce Commission (TWC), Vocational Rehabilitation Division (VRD)" to reflect the transfer of VR services from DARS to TWC. The amendment also adds a provision specifying that the new Vocational Rehabilitation Division is the single designated state unit for the combined VR program in accordance with the Rehabilitation Act ADOPTED RULES November 3, TexReg 6195

140 of 1973, as amended (29 USC 701 et seq.) and makes other changes to be consistent with federal regulations Legal Authority Section is repealed because it is not necessary or appropriate to include the agency's legal authority in rule Definitions Section incorporates the definitions for "Blind" and "Visually Impaired" from Texas Human Services Code, to reflect the integration of the two separate VR programs. The amendment also adds a reference to the definitions in state law and federal regulations relating to VR, updates the division name, and replaces the word "consumer" with "customer." Consultation Regarding the Administration of the State Plan Section updates the division name and replaces the word "consumer" with "customer." SUBCHAPTER B. ELIGIBILITY TWC adopts the following amendments to Subchapter B: Application New , relating to vocational rehabilitation service application, incorporates the provisions in of this title, concurrently proposed for repeal, with modifications to: --exclude subsection (b) stating an individual must be available so that VR staff can complete an assessment for eligibility within 60 days of the individual applying for services, as this is not allowable under 34 CFR ; and --update the division name Eligibility Section updates the division name, replaces the term "extended evaluation" with "trial work" to be consistent with changes in WIOA and federal regulations, and adds the requirements from to this section with updated rule references Prohibited Factors Section updates the division name and makes other changes to be consistent with federal regulations Extended Evaluation Section updates the division name and replaces the term "extended evaluation" with "trial work" to be consistent with changes in WIOA and federal regulations Determination of Ineligibility Section updates the division name and the federal law reference, replaces the word "consumer" with "customer", and makes other changes to be consistent with federal regulations Case Closure Section updates the division name, replaces the word "consumer" with "customer, " and adds a requirement to subsection (a)(2) to specify, for consistency with changes in WIOA and federal regulations, that trial work is necessary before deciding to close a case due to the severity of a customer's disability. SUBCHAPTER C. PROVISION OF VOCATIONAL REHABILI- TATION SERVICES TWC adopts the following amendments to Subchapter C: Provision of Services Section updates the division name and rule references, and replaces the word "consumer" with "customer." Assessment Section updates the division name, changes the title of the section to "Comprehensive Assessment" to be consistent with federal regulations and to distinguish the assessment outlined in this section from other types of assessments in the VR process, and replaces the word "consumer" with "customer." Counseling, Guidance, and Referral Section updates the division name and replaces the word "consumer" with "customer." Physical Restoration Services Section updates the division name and replaces the word "consumer" with "customer." Mental Restoration Services Section updates the division name and makes other changes to be consistent with federal regulations Vocational and Other Training Services Section adds the applicable requirements from , with a modification to remove the reference to Gallaudet University in subsection (b)(5)(c) because it is not inclusive of the many colleges and universities that offer specialized services to students with disabilities. The amendment also updates the division name, replaces the word "consumer" with "customer," and deletes subsection (d) because the requirements added from (b) are more comprehensive on the subject of paying for out-of-state tuition Maintenance Section updates the division name and replaces the word "consumer" with "customer." Transportation Section updates the division name and replaces the word "consumer" with "customer." Interpreter Services for the Deaf and Hard of Hearing Section incorporates requirements from to create a section that addresses interpreter services for customers who are deaf, hard of hearing, or deafblind, and changes the title of the section accordingly. The amendment also updates the division and agency names and replaces the word "consumer" with "customer." Job Development, Placement and Retention Section replaces the word "consumer" with "customer." Post-Employment Services Section updates the division name and replaces the word "consumer" with "customer." The amendment also clarifies that post-employment services support the previously planned employment outcome and that post-employment services do not include "complex rehabilitation services or services to address a new disability or impediment to employment," as stated in (a) and (b) Occupational Licenses, Tools, Equipment, and Training Supplies 42 TexReg 6196 November 3, 2017 Texas Register

141 Section updates the division name and replaces the word "consumer" with "customer." The term "nonconsumable supplies"" is added to the list of items in subsection (c) that customers must safeguard. The amendment also updates the title of the section to "Occupational Licenses, Tools, Equipment, Initial Stocks, and Supplies" to be consistent with WIOA and federal regulations Individualized Plan for Employment Section incorporates language from to create a hybrid of the two sections. The amendment also updates the division name, replaces the word "consumer" with "customer," updates rule references, and clearly ties the services a customer receives to what has been agreed to in the individualized plan for employment (IPE) Consumers Determined to Have Achieved Employment Outcome Section updates the division name and replaces the word "consumer" with "customer." Services to Family Members New , relating to vocational rehabilitation services to family members, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to replace the word "consumer" with "customer." Reader Services New , relating to reader services, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to: --update the division name; --replace the word "consumer" with "customer"; and --remove "and Rehabilitation Teaching Services" from the title, as those services are not included in the content of the section. (Rehabilitation teaching services are required under federal regulations at 34 CFR , and will continue to be provided to TWC's VR customers.) Assistive Technology Devices New , relating to assistive technology devices, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to update the division name and replace the word "consumer" with "customer." SUBCHAPTER D. CONSUMER PARTICIPATION TWC adopts the following amendments to Subchapter A, including changing the name of Subchapter D to "Customer Participation." Purpose of Customer Participation New , relating to customer participation, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to update the division name, replace the word "consumer" with "customer", and be consistent with federal regulations. The section also adds the requirement for individuals to participate in the cost of services based on financial need Basic Living Requirements (BLR) Section updates the division name and replaces the word "consumer" with "customer." The section also incorporates provisions of of this title, concurrently proposed for repeal, into the list of services that are not subject to customer participation. SUBCHAPTER E. COMPARABLE BENEFITS TWC adopts the following amendments to Subchapter G: Comparable Services and Benefits Section is repealed because a similar provision is added to so that all provisions related to comparable services and benefits are in one section Availability of Comparable Services and Benefits Section replaces current provisions with applicable provisions from of this title, concurrently proposed for repeal, with modifications to update the division name, replace the word "consumer" with "customer," and be consistent with federal regulations. SUBCHAPTER F. METHODS OF ADMINISTRATION OF VO- CATIONAL REHABILITATION TWC adopts the following amendments to Subchapter F: Statewide Studies and Program Evaluation Section updates the division name Annual Evaluation Section updates the division name and replaces the word "consumer" with "customer." The amendment also replaces the term "evaluation standards and performance indicators" in subsection (a)(2) with "performance accountability measures"" to be consistent with changes in WIOA and federal regulations Order of Selection Section incorporates applicable provisions from of this title, concurrently proposed for repeal, with modifications to update the division name, position title, and contact information and replace the word "consumer" with "customer." SUBCHAPTER G. Certificate of Blindness for Tuition Waiver TWC adopts new Subchapter G, as follows: Purpose New , relating to the purpose of Subchapter G, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to update agency and division names and to add a reference to the statutory authority in the Texas Education Code Definitions New , relating to definitions used in Subchapter G, incorporates relevant definitions from of this title, concurrently proposed for repeal, with modifications to update agency and division names and remove unnecessary statutory references Eligibility New , relating to eligibility, incorporates the provisions of of this title, concurrently proposed for repeal, with modifications to update agency and division names and the rule reference and to remove the unnecessary statutory reference. No comments were received. ADOPTED RULES November 3, TexReg 6197

142 SUBCHAPTER A. VOCATIONAL REHABILITATION SERVICES: PROGRAM AND PURPOSE 40 TAC 856.1, 856.3, The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) TAC The rule is repealed under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted repeal affects Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER B. ELIGIBILITY 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER C. PROVISION OF VOCATIONAL REHABILITATION SERVICES 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER D. CUSTOMER PARTICIPA- TION 40 TAC , The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal 42 TexReg 6198 November 3, 2017 Texas Register

143 such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER E. COMPARABLE BENEFITS 40 TAC The rule is repealed under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted repeal affects Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER F. METHODS OF ADMINISTRATION OF VOCATIONAL REHABILITATION 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. 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 October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) SUBCHAPTER G. CERTIFICATE OF BLINDNESS FOR TUITION WAIVER 40 TAC The rules are adopted under Texas Labor Code , which requires TWC to adopt rules as necessary to integrate the vocational rehabilitation programs, and and (d), which provide TWC with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of TWC services and activities. The adopted rules affect Title 4, Texas Labor Code, Chapters 301, 302, and 352. The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority. ADOPTED RULES November 3, TexReg 6199

144 Filed with the Office of the Secretary of State on October 19, TRD Patricia Gonzalez Deputy Director, Workforce Development Division Programs Texas Workforce Commission Effective date: November 8, 2017 Proposal publication date: August 25, 2017 For further information, please call: (512) TexReg 6200 November 3, 2017 Texas Register

145 Department of Family and Protective Services Rule Transfer During the 85th Legislative Session, the Texas Legislature passed House Bill 5, directing that the Texas Department of Family and Protective Services (DFPS) become a stand-alone agency that is separate from the Texas Health and Human Services System (HHSC), in order to improve DFPS services and increase accountability by the department. As a result, some functions provided by HHSC will be returned to DFPS while other functions will continue to be provided by HHSC through interagency agreements. The HHSC rules in Title 1, Part 15, Chapter 355, Subchapter H, concerning Reimbursement Methodology for 24-Hour Child Care Facilities are being returned to DFPS and will be transferred and reorganized under Title 40, Part 19, Chapter 700, Subchapter Q, new Division 3, concerning Reimbursement Methodology for 24-Hour Child Care Facilities. The rules will be transferred in the Texas Administrative Code effective November 15, The following conversion chart outlines the rule transfer: Figure: 1 TAC Chapter 355 TRD Texas Health and Human Services Commission Rule Transfer During the 85th Legislative Session, the Texas Legislature passed House Bill 5, directing that the Texas Department of Family and Protective Services (DFPS) become a stand-alone agency that is separate from the Texas Health and Human Services System (HHSC), in order to improve DFPS services and increase accountability by the department. As a result, some functions provided by HHSC will be returned to DFPS while other functions will continue to be provided by HHSC through interagency agreements. The HHSC rules in Title 1, Part 15, Chapter 355, Subchapter H, concerning Reimbursement Methodology for 24-Hour Child Care Facilities are being returned to DFPS and will be transferred and reorganized under Title 40, Part 19, Chapter 700, Subchapter Q, new Division 3, concerning Reimbursement Methodology for 24-Hour Child Care Facilities. The rules will be transferred in the Texas Administrative Code effective November 15, The following conversion chart outlines the rule transfer: Figure: 1 TAC Chapter 355 TRANSFERRED RULES November 3, TexReg 6201

146 TRD Department of State Health Services Rule Transfer During the 84th Legislative Session, the Texas State Legislature passed Senate Bill 202, which in part transferred 13 occupational licensing programs in two phases from the Department of State Health Services (DSHS) to the Texas Commission of Licensing and Regulation (Commission) and the Texas Department of Licensing and Regulation (Department). Under Phase 2, the following six programs are being transferred from DSHS to the Commission and the Department: Laser Hair Removal, Texas Health and Safety Code, Chapter 401, ; Massage Therapy, Texas Occupations Code, Chapter 455; Code Enforcement Officers, Texas Occupations Code, Chapter 1952; Sanitarians, Texas Occupations Code, Chapter 1953; Mold Assessors and Remediators, Texas Occupations Code, Chapter 1958; and Offender Education Programs, Alcoholic Beverage Code, Chapter 106, (Alcohol Education Program for Minors); Transportation Code, Chapter 521, (Drug Offender Education Program); Code of Criminal Procedure, Chapter 42A, Articles 42A.403, 42A.405 and 42A.406 (formerly Chapter 42, Article 42.12, 13(h)) (DWI Education Program); and Code of Criminal Procedure, Chapter 42A, Articles 42A.404, 42A.405, and 42A.406 (formerly Chapter 42, Article 42.12, 130)) (DWI Intervention Program). The statutory amendments transferring regulation of these six Phase 2 programs took effect on September 1, To comply with Senate Bill 202, the following DSHS rules will be transferred effective November 17, 2017: Figure: 16 TAC Chapter 145 Figure: 16 TAC Chapter 146 Figure: 16 TAC Chapter 147 Figure: 16 TAC Chapter 148 Figure: 16 TAC Chapter 149 Figure: 16 TAC Chapter 150 TRD Texas Department of Licensing and Regulation Rule Transfer During the 84th Legislative Session, the Texas State Legislature passed Senate Bill 202, which in part transferred 13 occupational licensing programs in two phases from the Department of State Health Services (DSHS) to the Texas Commission of Licensing and Regulation (Commission) and the Texas Department of Licensing and Regulation (Department). Under Phase 2, the following six programs are being transferred from DSHS to the Commission and the Department: Laser Hair Removal, Texas Health and Safety Code, Chapter 401, ; Massage Therapy, Texas Occupations Code, Chapter 455; Code Enforcement Officers, Texas Occupations Code, Chapter 1952; Sanitarians, Texas Occupations Code, Chapter 1953; Mold Assessors and Remediators, Texas Occupations Code, Chapter 1958; and Offender Education Programs, Alcoholic Beverage Code, Chapter 106, (Alcohol Education Program for Minors); Transportation Code, Chapter 521, (Drug Offender Education Program); Code of Criminal Procedure, Chapter 42A, Articles 42 TexReg 6202 November 3, 2017 Texas Register

147 42A.403, 42A.405 and 42A.406 (formerly Chapter 42, Article 42.12, 13(h)) (DWI Education Program); and Code of Criminal Procedure, Chapter 42A, Articles 42A.404, 42A.405, and 42A.406 (formerly Chapter 42, Article 42.12, 130)) (DWI Intervention Program). The statutory amendments transferring regulation of these six Phase 2 programs took effect on September 1, To comply with Senate Bill 202, the following DSHS rules will be transferred effective November 17, 2017: Figure: 16 TAC Chapter 145 Figure: 16 TAC Chapter 146 Figure: 16 TAC Chapter 147 Figure: 16 TAC Chapter 148 Figure: 16 TAC Chapter 149 Figure: 16 TAC Chapter 150 TRANSFERRED RULES November 3, TexReg 6203

148 42 TexReg 6204 November 3, 2017 Texas Register

149 TRANSFERRED RULES November 3, TexReg 6205

150 42 TexReg 6206 November 3, 2017 Texas Register

151 TRANSFERRED RULES November 3, TexReg 6207

152 42 TexReg 6208 November 3, 2017 Texas Register

153 TRANSFERRED RULES November 3, TexReg 6209

154 TRD TexReg 6210 November 3, 2017 Texas Register

155 Proposed Rule Reviews Office of Consumer Credit Commissioner Title 7, Part 5 The Finance Commission of Texas (commission) files this notice of intention to review and consider for readoption, revision, or repeal, Texas Administrative Code, Title 7, Part 5, Chapter 88, concerning Consumer Debt Management Services. Chapter 88 contains Subchapter A, concerning Registration Procedures, Subchapter B, concerning Annual Requirements, and Subchapter C, concerning Operational Requirements. This rule review will be conducted pursuant to Texas Government Code, The commission will accept written comments received on or before 5:00 p.m. central time on the 31st day after the date this notice is published in the Texas Register as to whether the reasons for adopting these rules continue to exist. The Office of Consumer Credit Commissioner, which administers these rules, believes that the reasons for adopting the rules contained in this chapter continue to exist. Any questions or written comments pertaining to this notice of intention to review should be directed to Laurie Hobbs, Assistant General Counsel, Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas , or by to laurie.hobbs@occc.texas.gov. Any proposed changes to the rules as a result of the review will be published in the Proposed Rules Section of the Texas Register and will be open for an additional 31-day public comment period prior to final adoption or repeal by the commission. TRD Laurie B. Hobbs Assistant General Counsel Office of Consumer Credit Commissioner Filed: October 25, 2017 Texas Department of Criminal Justice Title 37, Part 6 The Texas Board of Criminal Justice files this notice of intent to review concerning the operating procedures for the Texas Board of Criminal Justice. This review is being conducted to include legislative changes to the Texas Open Meetings Act during the 85th legislative session. Elsewhere in this issue of the Texas Register, the Texas Board of Criminal Justice contemporaneously proposes amendments to Comments should be directed to Sharon Felfe Howell, General Counsel, Texas Department of Criminal Justice, P.O. Box 4004, Huntsville, Texas 77342, Sharon.Howell@tdcj.texas.gov. Written comments from the general public must be received within 30 days of the publication of this notice in the Texas Register. TRD Sharon Howell General Counsel Texas Department of Criminal Justice Filed: October 19, 2017 Adopted Rule Reviews State Board for Educator Certification Title 19, Part 7 The State Board for Educator Certification (SBEC) adopts the review of Title 19, Texas Administrative Code (TAC), Chapter 227, Provisions for Educator Preparation Candidates, pursuant to the Texas Government Code, The SBEC proposed the review of 19 TAC Chapter 227 in the September 1, 2017, issue of the Texas Register (42 TexReg 4481). Relating to the review of 19 TAC Chapter 227 the SBEC finds that the reasons for the adoption continue to exist and readopts the rules. The SBEC received no comments related to the review of Chapter 227. This concludes the review of 19 TAC Chapter 227. TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Filed: October 23, 2017 The State Board for Educator Certification (SBEC) adopts the review of Title 19, Texas Administrative Code (TAC), Chapter 228, Requirements for Educator Preparation Programs, pursuant to the Texas Government Code, The SBEC proposed the review of 19 TAC Chapter 228 in the September 1, 2017 issue of the Texas Register (42 TexReg 4481). Relating to the review of 19 TAC Chapter 228 the SBEC finds that the reasons for the adoption continue to exist and readopts the rules. The SBEC received comments related to the review of Chapter 228. Following is a summary of the public comment received and the corresponding response. RULE REVIEW November 3, TexReg 6211

156 Comment: iteachtexas commented that the requirement for educator preparation programs (EPPs) to meet or make progress in meeting criteria set for accreditation and/or quality assurance of online coursework and training was too exclusive. iteachtexas offered two suggestions for amending 19 TAC (a)(6) to address this concern. The first suggestion would allow Texas Education Agency (TEA) staff to determine if an EPP's online coursework and training meets standards. The second suggestion would broaden the criteria for the Distance Education Accrediting Commission (DEAC) to include its quality assessment process. Board Response: The SBEC acknowledges the commenter's concern and suggestions. At its December 8, 2017 meeting, the SBEC is scheduled to consider for discussion amendments to 19 TAC Chapter 228, including a change to (a)(6)(A) that would broaden the DEAC criteria to include certification, which includes the quality assessment process offered by the DEAC. The SBEC adopts the review of 19 TAC Chapter 228. This concludes the review of 19 TAC Chapter 228. TRD Cristina De La Fuente-Valadez Director, Rulemaking State Board for Educator Certification Filed: October 23, TexReg 6212 November 3, 2017 Texas Register

157 TABLES AND GRAPHICS November 3, TexReg 6213

158 42 TexReg 6214 November 3, 2017 Texas Register

159 TABLES AND GRAPHICS November 3, TexReg 6215

160 42 TexReg 6216 November 3, 2017 Texas Register

161 TABLES AND GRAPHICS November 3, TexReg 6217

162

163 Texas State Affordable Housing Corporation Draft Bond Program Policies and Request for Proposals Available for Public Comment The Texas State Affordable Housing Corporation ("Corporation") has posted the draft of its 2018 Tax-Exempt Bonds Program Policies and Request for Proposal. The draft will be posted for public comment, which will run until November 15, Comments may be submitted by to: Comments will also be accepted by phone at (512) , or USPS at the offices of the Corporation sent to: Texas State Affordable Housing Corporation Attn: Development Finance Program 2200 East Martin Luther King Jr. Blvd. Austin, Texas A copy of the draft policies and request for proposals is available on the Corporation's website at: TRD David Long President Texas State Affordable Housing Corporation Filed: October 25, 2017 Draft Homes for Texas Heroes Home Loan Program Rules Available for Public Comment The Texas State Affordable Housing Corporation ("Corporation") has posted the draft of its Homes for Texas Heroes Home Loan Program rules for public comment. The public comment period will run until December 4, Comments may be submitted by to jcrim@tsahc.org. Comments will also be accepted by mail at the offices of the Corporation. For more information please contact Joniel Crim, Director of Homeownership Programs, by phone at: (512) or by jcrim@tsahc.org. Comments submitted by mail should be sent to: Texas State Affordable Housing Corporation Attn: Joniel Crim, Director of Homeownership Programs 2200 East Martin Luther King Jr. Blvd. Austin, Texas A copy of the draft rules is available on the Corporation's web site at: TRD David Long President Texas State Affordable Housing Corporation Filed: October 25, 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 10/30/17-11/5/17 is 18% for Consumer 1 /Agricultural/Commercial 2 credit through $250,000. The weekly ceiling as prescribed by and for the period of 10/30/17-11/5/17 is 18% for Commercial over $250, The judgment ceiling as prescribed by for the period of 11/01/17-11/30/17 is 5.00% for Consumer/Agricultural/Commercial credit through $250,000. The judgment ceiling as prescribed by for the period of 11/01/17-11/30/17 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 L. Pettijohn Commissioner Office of Consumer Credit Commissioner Filed: October 24, 2017 Credit Union Department Application for a Merger or Consolidation Notice is given that the following application has been filed with the Credit Union Department (Department) and is under consideration: An application was received from SAFE Credit Union (Beaumont) seeking approval to merge with Education First Federal Credit Union (Beaumont), with Education First Federal Credit Union being the surviving 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. 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 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 IN ADDITION November 3, TexReg 6219

164 Harold E. Feeney Commissioner Credit Union Department Filed: October 20, 2017 Application to Expand Field of Membership Notice is given that the following applications has been filed with the Credit Union Department (Department) and is under consideration: An application was received from Cooperative Teachers Credit Union, Tyler, Texas to expand its field of membership. The proposal would permit members of the CTCU Foundation, 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 persons who live in, worship in, attend school in, or work in Fort Bend County, Texas, to be eligible for membership in the credit union. An Application was received from Texas Dow Employees Credit Union (#1), Lake Jackson, Texas to expand its field of membership. The proposal would permit persons who work, live, worship, or attend school within the geographic boundaries of Galveston County, Texas, to be eligible for membership in the credit union. An Application was received from Texas Dow Employees Credit Union (#2), Lake Jackson, Texas to expand its field of membership. The proposal would permit persons who work, live, worship, or attend school within the geographic boundaries of Fort Bend County, Texas, to be eligible for membership in the credit union. An Application was received from Texas Dow Employees Credit Union (#3), Lake Jackson, Texas to expand its field of membership. The proposal would permit persons who work, live, worship, or attend school within the geographic boundaries of Harris County, Texas, to be eligible for membership in the credit union. An Application was received from Texas Dow Employees Credit Union (#4), Lake Jackson, Texas to expand its field of membership. The proposal would permit persons who work, live, worship, or attend school within the geographic boundaries of Montgomery 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 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: October 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 City Credit Union, Dallas, Texas - See Texas Register issue dated August 25, Application to Amend Articles of Incorporation - Approved Credit Union of Texas, Dallas, Texas - See Texas Register issue dated August 25, TRD Harold E. Feeney Commissioner Credit Union Department Filed: October 20, 2017 Texas Commission on Environmental Quality Agreed Orders The Texas Commission on Environmental Quality (TCEQ 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 December 4, 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 December 4, 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: 150 Sunset, LLC; DOCKET NUMBER: LII-E; IDENTIFIER: RN ; LOCATION: El Paso, El Paso County; TYPE OF FACILITY: landscape irrigation business; RULES VIOLATED: 30 TAC (d)(2), by failing to obtain a permit required to install an irrigation system; 30 TAC (c), by failing to prepare a complete and accurate irrigation plan; 30 TAC (b), by failing to include the required TCEQ statement and license number on all written estimates, proposals, bids, and invoices; 30 TAC 30.5(b) and TWC, , by failing to refrain from advertising or 42 TexReg 6220 November 3, 2017 Texas Register

165 representing to the public that it can perform services for which a license is required unless it holds a current license, or unless it employs an individual who holds a current license; PENALTY: $1,030; EN- FORCEMENT COORDINATOR: Abigail Lindsey, (512) ; REGIONAL OFFICE: 401 East Franklin Avenue, Suite 560, El Paso, Texas , (915) (2) COMPANY: CIRCLE K STORES INCORPORATED dba CIRCLE K ; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Luling, 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: $7,500; ENFORCEMENT COORDINATOR: Ariel Ramirez, (512) ; REGIONAL OFFICE: Park 35 Circle, Building A, Austin, Texas 78753, (512) (3) COMPANY: City of Johnson City; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LOCATION: Johnson City, Blanco County; TYPE OF FACILITY: wastewater treatment facility; RULES VIOLATED: 30 TAC (1), TWC, (a)(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: $6,250; Supplemental Environmental Project offset amount of $5,000; ENFORCEMENT COORDINATOR: Steven Van Landingham, (512) ; REGIONAL OFFICE: Park 35 Circle, Building A, Austin, Texas 78753, (512) (4) COMPANY: City of Kemp; DOCKET NUMBER: WQ-E; IDENTIFIER: RN ; LOCATION: Kemp, Kaufman County; TYPE OF FACILITY: surface water treatment facility; RULES VIOLATED: TWC, (a)(1) and 30 TAC (i), by failing to obtain authorization from the commission prior to the discharge of wastewater into or adjacent to any water in the state; PENALTY: $3,125; ENFORCEMENT COORDINATOR: Alejandro Laje, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (5) COMPANY: City of Lefors; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LOCATION: Lefors, Gray County; TYPE OF FACILITY: wastewater treatment facility; RULES VIOLATED: 30 TAC (1) and (11)(A), 319.4, and 319.5(b), and Texas Pollutant Discharge Elimination System (TPDES) Permit Number WQ , Monitoring and Reporting Requirements Number 1, by failing to collect and analyze effluent samples at the required frequency specified in the permit; and TWC, (a)(1), 30 TAC (1), and TPDES Permit Number WQ , Effluent Limitations and Monitoring Requirements Number 1, by failing to comply with permitted effluent limitations; PENALTY: $64,000; Supplemental Environmental Project offset amount of $64,000; ENFORCEMENT COORDINATOR: James Boyle, (512) ; REGIONAL OFFICE: 3918 Canyon Drive, Amarillo, Texas , (806) (6) COMPANY: City of Quanah; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LOCATION: Quanah, Hardeman 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 Numbers 1 and 2, by failing to comply with permitted effluent limitations; PENALTY: $37,125; Supplemental Environmental Project offset amount of $36,000; ENFORCEMENT COORDINATOR: James Boyle, (512) ; REGIONAL OFFICE: 1977 Industrial Boulevard, Abilene, Texas , (325) (7) COMPANY: City of Winona; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Winona, Smith County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (f)(4), (e), (e), and (e), by failing to report the results of cyanide, metals, minerals, nitrate and nitrite, synthetic organic chemical (SOC) contaminants Method 504, SOC contaminants Method 515.4, SOC contaminants Method 531.1, SOC contaminants Group 5, volatile organic chemical contaminants, and radionuclides sampling to the executive director (ED) for the 2014 monitoring period; and 30 TAC (e)(4)(A) and (f)(3), by failing to submit a Disinfectant Level Quarterly Operating Report to the ED each quarter by the tenth day of the month following the end of each quarter for the fourth quarter of 2015; PENALTY: $825; ENFORCEMENT COORDINATOR: Paige Bond, (512) ; REGIONAL OFFICE: 2916 Teague Drive, Tyler, Texas , (903) (8) COMPANY: COMMERCIAL BANK OF TEXAS, N.A.; DOCKET NUMBER: WQ-E; IDENTIFIER: RN ; LOCATION: Lufkin, Angelina County; TYPE OF FACILITY: on-channel detention pond; RULE VIOLATED: TWC, (a)(2), by failing to prevent the unauthorized discharge of waste into or adjacent to any water in the state; PENALTY: $1,875; ENFORCEMENT COORDINATOR: Larry Butler, (512) ; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas , (409) (9) COMPANY: Corix Utilities (Texas) Incorporated; DOCKET NUMBER: MWD-E; IDENTIFIER: RN ; LO- CATION: Alleyton, Colorado County; TYPE OF FACILITY: wastewater treatment facility; RULES VIOLATED: 30 TAC (1), TWC, (a)(1), and Texas Pollutant Discharge Elimination System Permit Number WQ , Final Effluent Limitations and Monitoring Requirements Number 1, by failing to comply with permitted effluent limitations; PENALTY: $13,500; ENFORCEMENT COORDINATOR: Melissa Castro, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (10) COMPANY: DCP Midstream, LP; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Gruver, Hansford County; TYPE OF FACILITY: natural gas processing plant; RULES VIOLATED: 30 TAC (b)(2)(F) and (c) and (4), New Source Review Permit Number 73394, Special Conditions Number 1, Federal Operating Permit Number O2569, Special Terms and Conditions Number 8, and Texas Health and Safety Code, (b), by failing to prevent unauthorized emissions; PENALTY: $9,000; Supplemental Environmental Project offset amount of $3,600; ENFORCEMENT COORDINATOR: Raime Hayes-Falero, (713) ; REGIONAL OFFICE: 3918 Canyon Drive, Amarillo, Texas , (806) (11) COMPANY: Enterprise Products Operating LLC; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Mont Belvieu, Chambers County; TYPE OF FA- CILITY: Chemical Manufacturing; RULES VIOLATED: 30 TAC (b)(2)(F) and (c) and (4), Texas Health and Safety Code, (b), Federal Operating Permit Number O3369, Special Terms and Conditions Number 10, and New Source Review Permit Number 93973, Special Conditions Number 1, by failing to prevent unauthorized emissions; PENALTY: $36,000; ENFORCEMENT COORDINATOR: Shelby Orme, (512) ; REGIONAL OF- FICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (12) COMPANY: ETC Field Services LLC; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: IN ADDITION November 3, TexReg 6221

166 Hamlin, Fisher County; TYPE OF FACILITY: gas processing plant; RULES VIOLATED: 30 TAC (4) and (2), Texas Health and Safety Code, (b), and Federal Operating Permit Number O958/Oil and Gas General Operating Permit Number 514, Site-wide Requirements (b)(3), by failing to submit a Permit Compliance Certification no later than 30 days after the end of the certification period; PENALTY: $3,000; ENFORCEMENT COORDINATOR: Melissa Castro, (512) ; REGIONAL OFFICE: 1977 Industrial Boulevard, Abilene, Texas , (325) (13) COMPANY: Exxon Mobil Corporation; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Kingsville, Kleberg County; TYPE OF FACILITY: gas plant; RULES VIOLATED: 30 TAC (a), Special Exemption Number 7, and Texas Health and Safety Code, (a) and (b), by failing to prevent unauthorized emissions; PENALTY: $50,000; Supplemental Environmental Project offset amount of $25,000; ENFORCEMENT COORDINATOR: Shelby Orme, (512) ; REGIONAL OFFICE: 6300 Ocean Drive, Suite 1200, Corpus Christi, Texas , (361) (14) COMPANY: ExxonMobil Oil Corporation; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Beaumont, Jefferson County; TYPE OF FACILITY: petroleum refinery; RULES VIOLATED: 30 TAC (a)(1)(B) and (4), Federal Operating Permit (FOP) Number O2000, Special Terms and Conditions (STC) Number 2.F, and Texas Health and Safety Code (THSC), (b), by failing to submit an initial notification within 24 hours of discovery of an emissions event; and 30 TAC (3), (a), and (4), FOP Number O2000, STC Number 18, Flexible Permit Numbers 49138, PSDTX768M1, PSDTX799, PSDTX802, PSDTX932, and PSDTX992M1, Special Conditions Number 1, and THSC, (b), by failing to prevent unauthorized emissions; PENALTY: $14,725; Supplemental Environmental Project offset amount of $5,890; ENFORCEMENT COORDINATOR: David Carney, (512) ; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas , (409) (15) COMPANY: Jay Jay Ambe II, Incorporated; DOCKET NUM- BER: PWS-E; IDENTIFIER: RN ; LOCA- TION: Fort Worth, Tarrant County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (c)(1)(F), by failing to obtain a sanitary control easement covering land within 150 feet of the well; 30 TAC (d)(2)(A) and (b)(4) and Texas Health and Safety Code (THSC), (c), by failing to operate the disinfection equipment to maintain a minimum disinfectant residual of 0.2 milligrams per liter free chlorine throughout the distribution system at all times; 30 TAC (c)(3)(K), by failing to ensure that the wellheads and pump bases are sealed by a gasket or sealing compound and properly vented to prevent the possibility of contaminating the well water; 30 TAC (c)(3)(J), by failing to provide a concrete sealing block that extends at least three feet from the well casing in all directions, is at least six inches thick and is sloped to drain away from the wellhead at not less than 0.25 inch per foot; 30 TAC (m), by failing to initiate maintenance and housekeeping practices to ensure the good working condition and general appearance of the facility and its equipment; 30 TAC (b)(1) and (e)(3), by failing to provide disinfection facilities for the groundwater supply for the purpose of microbiological control and distribution protection; 30 TAC (e)(5), by failing to properly cover the hypochlorination solution container to protect it from dust, insects, and other contaminants; 30 TAC (h)(1)(A), by failing to install backflow prevention assemblies at all residences or establishments where an actual or potential contamination hazard exists, as identified in 30 TAC (f); 30 TAC (f)(2) and (3)(D)(i), by failing to properly maintain water works operation and maintenance records, and make them available for review to the executive director (ED) during the investigation; and 30 TAC (d)(2)(B)(v) and THSC, (c), by failing to provide a minimum pressure tank capacity of 220 gallons with additional capacity, if necessary, based on a sanitary survey conducted by the ED; PENALTY: $1,556; ENFORCEMENT COORDINATOR: Ryan Byer, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (16) COMPANY: JOEL DURAN HOMES INCORPORATED; DOCKET NUMBER: WQ-E; IDENTIFIER: RN ; LOCATION: Salado, Bell County; TYPE OF FACILITY: residential construction site; RULES VIOLATED: 30 TAC (a)(4) and 40 Code of Federal Regulations (c), by failing to obtain authorization to discharge stormwater associated with construction activities under Texas Pollutant Discharge Elimination System General Permit Number TXR150000; PENALTY: $3,075; ENFORCEMENT COORDINATOR: Caleb Olson, (512) ; REGIONAL OFFICE: 6801 Sanger Avenue, Suite 2500, Waco, Texas , (254) (17) COMPANY: Mr. Sams Food Mart, LLC; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Austin, Travis County; TYPE OF FACILITY: retail convenience store; RULES VIOLATED: 30 TAC (a)(1) and TWC, (d), by failing to provide corrosion protection for the underground storage tank system; PENALTY: $3,375; ENFORCEMENT COORDINA- TOR: Alejandro Laje, (512) ; REGIONAL OFFICE: Park 35 Circle, Building A, Austin, Texas 78753; (512) (18) COMPANY: Owens Corning Composite Materials, LLC; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Amarillo, Randall County; TYPE OF FACILITY: fiberglass manufacturing plant; RULES VIOLATED: 30 TAC (4) and (2), Texas Health and Safety Code, (b), and Federal Operating Permit Number O1019, General Terms and Conditions, by failing to submit a permit compliance certification within 30 days after the end of the certification period; PENALTY: $2,513; ENFORCEMENT COORDINATOR: Robyn Babyak, (512) ; REGIONAL OFFICE: 3918 Canyon Drive, Amarillo, Texas , (806) (19) COMPANY: RAHIL INVESTMENTS INCORPORATED dba West End Grocery; DOCKET NUMBER: PST-E; IDEN- TIFIER: RN ; LOCATION: Navasota, Grimes 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: $3,375; ENFORCEMENT COORDINATOR: Caleb Olson, (512) ; REGIONAL OFFICE: 6801 Sanger Avenue, Suite 2500, Waco, Texas , (254) (20) COMPANY: Reliable Feeders, LLC and Eltje Brand; DOCKET NUMBER: AGR-E; IDENTIFIER: RN ; LOCATION: Muleshoe, Bailey County; TYPE OF FACILITY: concentrated animal feeding operation; RULES VIOLATED: 30 TAC (b)(5) and Texas Pollutant Discharge Elimination System General Permit Number TXG921479, Part III. A.10(f)(1), by failing to ensure any mechanical or structural damage to the liner or the embankment of the retention control structure is evaluated by a licensed Texas professional engineer within 30 days following the discovery of the damage; PENALTY: $2,625; ENFORCEMENT COORDINATOR: Claudia Corrales, (432) ; REGIONAL OFFICE: th Street, Suite 100, Lubbock, Texas , (806) TexReg 6222 November 3, 2017 Texas Register

167 (21) COMPANY: Saakshi Incorporated; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Ector, Fannin 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: $4,500; ENFORCEMENT COORDINATOR: Alejandro Laje, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (22) COMPANY: SPEEDY BEER AND WINE INCORPORATED dba Speedy Food Mart; DOCKET NUMBER: PST-E; IDENTIFIER: RN ; LOCATION: Dallas, Dallas 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 (USTs) for releases at a frequency of at least once every month; 30 TAC (c)(3)(A), by failing to securely anchor emergency shutoff valves at the base of all dispensers; 30 TAC (a)(2) and TWC, (d), by failing to ensure that the corrosion protection system is operated and maintained in a manner that will provide continuous corrosion protection to all underground metal components of the UST system; and 30 TAC (3) and Texas Health and Safety Code, (b), by failing to ensure no avoidable gasoline leaks, as detected by sight, sound, or smell exist anywhere in the liquid transfer or vapor balance system; PENALTY: $9,000; ENFORCEMENT COORDINATOR: Stephanie McCurley, (512) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (23) COMPANY: Targa Midstream Services LLC; DOCKET NUM- BER: AIR-E; IDENTIFIER: RN ; LOCATION: Chico, Wise County; TYPE OF FACILITY: natural gas compression and processing plant; RULES VIOLATED: 30 TAC (1), (4), and (1)(C), 40 Code of Federal Regulations (CFR) (a), Federal Operating Permit (FOP) Number O3181, General Terms and Conditions (GTC), and Texas Health and Safety Code (THSC), (b), by failing to submit a 40 CFR Part 60, Subpart KKK monitoring report no later than 30 days after the end of the reporting period; 30 TAC (4) and (2)(C), FOP Number O3181, GTC, and THSC, (b), by failing to submit a deviation report no later than 30 days after the end of the reporting period; and 30 TAC (4) and (2)(A), FOP Number O3181, GTC, and THSC, (b), by failing to report all instances of deviations; PENALTY: $14,163; Supplement Environmental Project offset amount of $5,665; ENFORCEMENT COORDINATOR: Trina Grieco, (210) ; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas , (817) (24) COMPANY: Troy L. Williams dba Bell and Ford Marina Campground; DOCKET NUMBER: PWS-E; IDENTIFIER: RN ; LOCATION: Huntsville, Walker County; TYPE OF FACILITY: public water supply; RULES VIOLATED: 30 TAC (f)(4) and (e), by failing to provide the results of Stage 2 disinfection byproducts sampling to the executive director (ED) for the January 1, December 31, 2016, monitoring period; 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 for the January 1, December 31, 2015, monitoring period; 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 the compliance monitoring data for calendar years 2014 and 2015; 30 TAC , , and (a) and (c), by failing to meet the adequacy requirements of the CCR distributed to the customers of the facility for calendar year 2013; 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 submit a Disinfectant Level Quarterly Operating Report to the ED for the third quarter of 2016, the failure to collect lead and copper tap samples for the January 1, December 31, 2014, and January 1, December 31, 2016, monitoring periods, and the failure to report the results of nitrate and volatile organic chemical contaminants sampling for the January 1, December 31, 2015, monitoring period; and 30 TAC (a)(6) and TWC, 5.702, by failing to pay annual Public Health Service fees and any associated late fees for TCEQ Financial Administration Account Number for Fiscal Years 2015 and 2016; PENALTY: $690; ENFORCEMENT COORDINATOR: Steven Hall, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (25) COMPANY: Valero Refining-Texas, L.P.; DOCKET NUMBER: AIR-E; IDENTIFIER: RN ; LOCATION: Houston, Harris County; TYPE OF FACILITY: petroleum refinery; RULES VIOLATED: 30 TAC (a)(1)(B) and (4), Federal Operating Permit (FOP) Number O1381, General Terms and Conditions (GTC), and Texas Health and Safety Code (THSC), (b), by failing to submit an initial notification for a reportable emissions event no later than 24 hours after the discovery; 30 TAC (b)(2)(F) and (c) and (4), THSC, (b), FOP Number O1381, Special Terms and Conditions (STC) Number 24, and New Source Review (NSR) Permit Number 2501A, Special Conditions (SC) Number 1, by failing to prevent unauthorized emissions; 30 TAC (1), (c), and (4), 40 Code of Federal Regulations 60.18(c)(2), THSC, (b), FOP Number O1381, STC Number 24, and NSR Permit Number 2501A, SC Number 10.B, by failing to operate a flare with a flame present at all times; 30 TAC (4) and (2)(A), THSC, (b), and FOP Number O1381, GTC, by failing to report all instances of deviations; and 30 TAC (3), (b)(2)(F) and (c), and (4), THSC, (b), FOP Number O1381, STC Number 24, and NSR Permit Numbers 2501A and PSDTX767M2, SC Number 1, by failing to prevent unauthorized emissions; PENALTY: $47,813; ENFORCEMENT COORDINATOR: Shelby Orme, (512) ; REGIONAL OFFICE: 5425 Polk Street, Suite H, Houston, Texas , (713) (26) COMPANY: William Luke Everett; DOCKET NUMBER: MSW-E; IDENTIFIER: RN ; LOCATION: San Angelo, Tom Green County; TYPE OF FACILITY: unauthorized municipal solid waste (MSW) site; RULES VIOLATED: 30 TAC (a) and (c), by failing to cause, suffer, allow, or permit the unauthorized disposal of MSW; PENALTY: $5,904; ENFORCEMENT COORDI- NATOR: Stephanie McCurley, (512) ; REGIONAL OFFICE: 622 South Oakes, Suite K, San Angelo, Texas , (325) TRD Charmine Backens Director, Litigation Division Texas Commission on Environmental Quality Filed: October 24, 2017 IN ADDITION November 3, TexReg 6223

168 Combined Notice of Public Meeting and Notice of Application and Preliminary Decision for TPDES Permit for Industrial Wastewater New Permit No. WQ APPLICATION AND PRELIMINARY DECISION. GCGV Asset Holding LLC, Springwoods Village Parkway, Spring, Texas 77389, which proposes to operate a chemical manufacturing facility that will produce ethylene, monoethylene glycol, and polyethylene, has applied to the Texas Commission on Environmental Quality (TCEQ) for a new permit, Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ , to authorize the discharge of treated process wastewater, cooling tower blowdown, maintenance wastewater, water treatment wastewater, railcar wash water, miscellaneous wastewater, wastewater from commissioning activities, and stormwater at a daily average flow not to exceed 9,030,000 gallons per day via Outfall 001 and stormwater and allowable non-stormwater on an intermittent and flow-variable basis via Outfalls 002, 003, 004, and 005. The TCEQ received this application on April 19, The facility will be located on the south side of State Highway 181 and on the west side of Farm-to-Market Road 2986, approximately one mile west of the City of Gregory, in San Patricio County, Texas This electronic map of the site or facility's general location is provided as a public courtesy and is not part of the application or notice. For the exact location, refer to the application &lng= &zoom=13&type=r The effluent will be discharged from the plant site via pipe to Corpus Christi Bay via Outfall 001, in Segment No of the Bays and Estuaries; via Outfalls 002 and 003 to drainage ditches, thence to mud flats, thence to Copano Bay/Port Bay/Mission Bay in Segment No of the Bays and Estuaries; and via Outfalls 004 and 005 to drainage ditches, thence to Green Lake Ditch, thence to Green Lake, thence to a tidal channel, thence to Corpus Christi Bay in Segment No of the Bays and Estuaries. The unclassified receiving water uses are minimal aquatic life use for the drainage ditches, limited aquatic life use for Green Lake Ditch, high aquatic life use for Green Lake, and exceptional aquatic life use for the tidal channel. The designated uses for Segment No and Segment No are primary contact recreation, oyster waters, and exceptional aquatic life use. In accordance with Title 30 TAC and TCEQ's Procedures to Implement the Texas Surface Water Quality Standards (June 2010), an antidegradation review of the receiving waters was performed. A Tier 1 antidegradation review has preliminarily determined that existing water quality uses will not be impaired by this permit action. Numerical and narrative criteria to protect existing uses will be maintained. A Tier 2 review has preliminarily determined that no significant degradation of water quality is expected in Green Lake, which has been identified as having high aquatic life use. Also, no significant degradation of water quality is expected in the tidal channel or Corpus Christi Bay, which have been identified as having exceptional aquatic life use. Existing uses will be maintained and protected. The preliminary determination can be reexamined and may be modified if new information is received. The TCEQ executive director reviewed this action for consistency with the Texas Coastal Management Program (CMP) goals and policies in accordance with the regulations of the General Land Office and has determined that the action is consistent with the applicable CMP goals and policies. The TCEQ executive director has completed the technical review of the application and prepared a draft permit. The draft permit, if approved, would establish the conditions under which the facility must operate. The executive director has made a preliminary decision that this permit, if issued, meets all statutory and regulatory requirements. The permit application, executive director's preliminary decision, and draft permit are available for viewing and copying at Bell Whittington Public Library, 2400 Memorial Parkway, Portland, in San Patricio County, Texas and at La Retama Central Library, 805 Comanche Street, Corpus Christi, in Nueces County, Texas. PUBLIC COMMENT / PUBLIC MEETING. You may submit public comments about this application. The TCEQ will hold a public meeting on this application because of significant public interest. The purpose of a public meeting is to provide the opportunity to submit comments or to ask questions about the application. The public meeting will consist of two parts, an Informal Discussion Period and a Formal Comment Period. A public meeting is not a contested case hearing under the Administrative Procedure Act. During the Informal Discussion Period, the public will be encouraged to ask questions of the applicant and TCEQ staff concerning the permit application. The comments and questions submitted orally during the Informal Discussion Period will not be considered before a decision is reached on the permit application, and no formal response will be made. Responses will be provided orally during the Informal Discussion Period. During the Formal Comment Period on the permit application, members of the public may state their formal comments orally into the official record. A written response to all timely, relevant and material, or significant comments will be prepared by the Executive Director. All formal comments will be considered before a decision is reached on the permit application. A copy of the written response will be sent to each person who submits a formal comment or who requests to be on the mailing list for this permit application and provides a mailing address. Only relevant and material issues raised during the Formal Comment Period can be considered if a contested case hearing is granted on this permit application. The Public Meeting is to be held: Monday, December 4, 2017, at 7:00 p.m. Stephen F. Austin Elementary School 308 N. Gregory Gregory, Texas OPPORTUNITY FOR A CONTESTED CASE HEARING. After the deadline for public comments, the executive director will consider the comments and prepare a response to all relevant and material, or significant public comments. The response to comments, along with the executive director's decision on the application, will be mailed to everyone who submitted public comments or who requested to be on a mailing list for this application. If comments are received, the mailing will also provide instructions for requesting a contested case hearing or reconsideration of the executive director's decision. A contested case hearing is a legal proceeding similar to a civil trial in a state district court. TO REQUEST A CONTESTED CASE HEARING, YOU MUST INCLUDE THE FOLLOWING ITEMS IN YOUR REQUEST: your name, address, phone number; applicant's name and proposed permit number; the location and distance of your property/activities relative to the proposed facility; a specific description of how you would be adversely affected by the facility in a way not common to the general public; a list of all disputed issues of fact that you submit during the comment period; and the statement "[I/We] request a contested case hearing." If the request for contested case hearing is filed on behalf of a group or association, the request must designate the group's representative for receiving future correspondence; identify by name and physical address an individual member of the group who would 42 TexReg 6224 November 3, 2017 Texas Register

169 be adversely affected by the proposed facility or activity; provide the information discussed above regarding the affected member's location and distance from the facility or activity; explain how and why the member would be affected; and explain how the interests the group seeks to protect are relevant to the group's purpose. Following the close of all applicable comment and request periods, the executive director will forward the application and any requests for reconsideration or for a contested case hearing to the TCEQ Commissioners for their consideration at a scheduled Commission meeting. The Commission may only grant a request for a contested case hearing on issues the requestor submitted in their timely comments that were not subsequently withdrawn. If a hearing is granted, the subject of a hearing will be limited to disputed issues of fact or mixed questions of fact and law relating to relevant and material water quality concerns submitted during the comment period. EXECUTIVE DIRECTOR ACTION. The executive director may issue final approval of the application unless a timely contested case hearing request or a timely request for reconsideration is filed. If a timely hearing request or request for reconsideration is filed, the executive director will not issue final approval of the permit and will forward the application and requests to the TCEQ Commissioners for their consideration at a scheduled Commission meeting. MAILING LIST. If you submit public comments, a request for a contested case hearing or a reconsideration of the executive director's decision, you will be added to the mailing list for this specific application to receive future public notices mailed by the Office of the Chief Clerk. In addition, you may request to be added to: (1) the permanent list for a specific applicant name and permit number; and (2) the mailing list for a specific county. If you wish to be placed on the permanent and the county mailing list, clearly specify which list(s) and send your request to TCEQ Office of the Chief Clerk at the address below. All written public comments and public meeting requests must be submitted to the Office of the Chief Clerk, MC 105, TCEQ, P.O. Box 13087, Austin, Texas or electronically at within 30 days from the date of newspaper publication of this notice. INFORMATION AVAILABLE ONLINE. For details about the status of the application, visit the Commissioners' Integrated Database at Search the database using the permit number for this application, which is provided at the top of this notice. AGENCY CONTACTS AND INFORMATION. Public comments and requests must be submitted either electronically at or in writing to the Texas Commission on Environmental Quality, Office of the Chief Clerk, MC 105, P.O. Box 13087, Austin, Texas Any personal information you submit to the TCEQ will become part of the agency's record; this includes addresses. For more information about this permit application or the permitting process, please call the TCEQ Public Education Program, Toll Free, at (800) or visit their website at Si desea información en español, puede llamar al (800) Further information may also be obtained from GCGV Asset Holding LLC at the address stated above or by calling Mr. John E. Groneck at (832) Persons with disabilities who need special accommodations at the meeting should call the Office of the Chief Clerk at (512) or (800) RELAY-TX (TDD) at least one week prior to the meeting. Issued: October 20, 2017 TRD Bridget C. Bohac Chief Clerk Texas Commission on Environmental Quality Filed: October 25, 2017 Enforcement Orders An agreed order was adopted regarding Via Bayou Inc., Docket No MWD-E on October 24, 2017 assessing $2,550 in administrative penalties with $510 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 Marie E. Brown dba Urbinas Drive Thru, Docket No PST-E on October 24, 2017 assessing $7,188 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Clayton Smith, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Adolfo Alvarez Jr., Docket No MSW-E on October 24, 2017 assessing $2,500 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 NIROJ CORPORATION dba Cigarette Mart, Docket No PST-E on October 24, 2017 assessing $4,629 in administrative penalties. Information concerning any aspect of this order may be obtained by contacting Ian Groetsch, Staff Attorney at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Brian Dlugosch dba Double D RV Park 1 and Pete A. Dlugosch dba Double D RV Park 1, Docket No PWS-E on October 24, 2017 assessing $7,401 in administrative penalties with $1,480 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 REHOBETH WATER SUP- PLY CORPORATION, Docket No PWS-E on October 24, 2017 assessing $799 in administrative penalties with $159 deferred. Information concerning any aspect of this order may be obtained by contacting Ryan Byer, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Prewett Enterprises Inc. dba B&P Environmental, Docket No MLM-E on October 24, 2017 assessing $7,425 in administrative penalties with $1,485 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 TXGE Meadowcrest MHP, LLC, Docket No PWS-E on October 24, 2017 assessing $2,974 in administrative penalties with $594 deferred. Information concerning any aspect of this order may be obtained by contacting Ryan Byer, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas IN ADDITION November 3, TexReg 6225

170 An agreed order was adopted regarding Ethyl Corporation, Docket No AIR-E on October 24, 2017 assessing $7,351 in administrative penalties with $1,470 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 Union Carbide Corporation, Docket No AIR-E on October 24, 2017 assessing $4,200 in administrative penalties with $840 deferred. Information concerning any aspect of this order may be obtained by contacting Robyn Babyak, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding HNA 359, LLC dba Pecan Grove Car Wash, Docket No PST-E on October 24, 2017 assessing $4,612 in administrative penalties with $922 deferred. Information concerning any aspect of this order may be obtained by contacting Stephanie McCurley, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Bridgeport, Docket No PWS-E on October 24, 2017 assessing $413 in administrative penalties with $82 deferred. Information concerning any aspect of this order may be obtained by contacting Ryan Byer, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding Farmers Transport Inc. dba Enchanted Harbor Utility, Docket No PWS-E on October 24, 2017 assessing $187 in administrative penalties with $37 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 Texline, Docket No PWS-E on October 24, 2017 assessing $427 in administrative penalties with $378 deferred. Information concerning any aspect of this order may be obtained by contacting Paige Bond, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding City of Richland Springs, Docket No PWS-E on October 24, 2017 assessing $150 in administrative penalties with $30 deferred. Information concerning any aspect of this order may be obtained by contacting Paige Bond, Enforcement Coordinator at (512) , Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas An agreed order was adopted regarding AMON CARTER LAKE WATER SUPPLY CORPORATION, Docket No PWS-E on October 24, 2017 assessing $385 in administrative penalties with $77 deferred. Information concerning any aspect of this order may be obtained by contacting Ryan Byer, 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: October 25, 2017 Notice of Opportunity to Comment on a Default Order of Administrative Enforcement Actions The Texas Commission on Environmental Quality (TCEQ or commission) staff is providing an opportunity for written public comment on the listed Default Order (DO). The commission staff proposes a DO when the staff has sent the executive director's preliminary report and petition (EDPRP) to an entity outlining the alleged violations; the proposed penalty; the proposed technical requirements necessary to bring the entity back into compliance; and the entity fails to request a hearing on the matter within 20 days of its receipt of the EDPRP or requests a hearing and fails to participate at the hearing. Similar to the procedure followed with respect to Agreed Orders entered into by the executive director of the commission, in accordance with Texas Water Code (TWC), 7.075, this notice of the proposed order and the opportunity to comment is 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 December 4, The commission will consider any written comments received, and the commission may withdraw or withhold approval of a DO if a comment discloses facts or considerations that indicate that consent to the proposed DO 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 DO is not required to be published if those changes are made in response to written comments. A copy of the proposed DO is available for public inspection at both the commission's central office, located at Park 35 Circle, Building A, 3rd Floor, Austin, Texas 78753, (512) and at the applicable regional office listed as follows. Written comments about the DO should be sent to the attorney designated for the DO at the commission's central office at P.O. Box 13087, MC 175, Austin, Texas and must be received by 5:00 p.m. on December 4, Comments may also be sent by facsimile machine to the attorney at (512) The commission's attorney is available to discuss the DO and/or the comment procedure at the listed phone number; however, TWC, provides that comments on the DO shall be submitted to the commission in writing. (1) COMPANY: Rick Dhanani; DOCKET NUMBER: PST-E; TCEQ ID NUMBER: RN ; LOCATION: 3820 Franklin Avenue, Waco, McLennan County; TYPE OF FACILITY: common carrier; RULES VIOLATED: TWC, (d) and 30 TAC 334.5(b)(1)(A), by depositing a regulated substance into a regulated underground storage tank system located at 3130 North 18th Street in Waco, McLennan County, Texas, which was not covered by a valid, current TCEQ delivery certificate; PENALTY: $5,107; STAFF ATTORNEY: Ryan Rutledge, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Waco Regional Office, 6801 Sanger Avenue, Suite 2500, Waco, Texas , (254) TRD Charmaine Backens Director, Litigation Division Texas Commission on Environmental Quality Filed: October 24, 2017 Notice of Opportunity to Comment on Agreed Orders of Administrative Enforcement Actions 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. 42 TexReg 6226 November 3, 2017 Texas Register

171 TWC, requires that notice of 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 December 4, 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 A, 3rd Floor, Austin, Texas 78753, (512) and at the applicable regional office listed as follows. Written comments about an AO should be sent to the attorney designated for the AO at the commission's central office at P.O. Box 13087, MC 175, Austin, Texas and must be received by 5:00 p.m. on December 4, Comments may also be sent by facsimile machine to the attorney at (512) The designated attorneys are available to discuss the AOs and/or the comment procedure at the listed phone numbers; however, TWC, provides that comments on an AO shall be submitted to the commission in writing. (1) COMPANY: BHARWANI INVESTMENT GROUP, INC. dba Exxon Food Mart; DOCKET NUMBER: PST-E; TCEQ ID NUMBER: RN ; LOCATION: 3100 West Euless Boulevard, Euless, Tarrant County; TYPE OF FACILITY: underground storage tank (UST) system and a convenience store with retail sales of gasoline; RULES VIOLATED: TWC, (d) and 30 TAC (a)(1), by failing to provide corrosion protection for the UST system; TWC, (d) and 30 TAC (c)(4)(C), 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 TWC, (c)(1) and 30 TAC (b)(1)(A), by failing to monitor the USTs for releases at a frequency of at least once every month (not to exceed 35 days between each monitoring); PENALTY: $9,750; STAFF ATTORNEY: Jake Marx, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Dallas-Fort Worth Regional Office, 2309 Gravel Drive, Fort Worth, Texas , (817) (2) COMPANY: ISP Technologies Inc.; DOCKET NUMBER: IWD-E; TCEQ ID NUMBER: RN ; LOCA- TION: 4501 Attwater Avenue, south of Attwater Avenue and west of State Highway 146, across from Galveston County Industrial Water Reservoir and extending south to Moses Bayou, Texas City, Galveston County; TYPE OF FACILITY: industrial organic chemical manufacturing 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, Outfall Number 003, by failing to comply with permitted effluent limitations; PENALTY: $3,700; STAFF ATTORNEY: Isaac Ta, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Houston Regional Office, 5425 Polk Street, Suite H, Houston, Texas , (713) (3) COMPANY: Juan Carlos Portillo; DOCKET NUMBER: PWS-E; TCEQ ID NUMBER: RN ; LOCA- TION: Highway 90 West, Del Rio, Val Verde County; TYPE OF FACILITY: public water system; RULES VIOLATED: 30 TAC (f)(4), (c)(6) and (e), and (c)(2)(A) and (f), by failing to collect and provide the results of the annual nitrate samples to the executive director (ED) for the 2014 monitoring period, failing to collect the annual nitrate samples for the 2015 monitoring period, and failing to issue public notification and submit a copy of the public notification to the ED regarding the failure to provide results of the annual nitrate sampling for the 2014 monitoring period to the ED; 30 TAC (c)(1) and (e), by failing to collect and provide the results of the triennial secondary constituent samples to the ED for the January 1, 2012 to December 31, 2014 monitoring period; and TWC, and 30 TAC (a)(6), by failing to pay Public Health Service fees and associated late fees for TCEQ Financial Administration Account Number for Fiscal Years ; PENALTY: $667; STAFF ATTORNEY: Audrey Liter, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Laredo Regional Office, 707 East Calton Road, Suite 304, Laredo, Texas , (956) (4) COMPANY: MERITOCRACY GROUP INC. dba Tex Mex Food Mart 4; DOCKET NUMBER: PST-E; TCEQ ID NUM- BER: RN ; LOCATION: 1908 North Sugar Road, Suite A in Edinburg, Hidalgo County; TYPE OF FACILITY: underground storage tank (UST) system and a convenience store with retail sales of gasoline; RULES VIOLATED: TWC, (c)(1) and 30 TAC (b)(1)(A), by failing to monitor the UST for releases at a frequency of at least once every month (not to exceed 35 days between each monitoring); TWC, (a) and 30 TAC (b)(2), by failing to provide release detection for the pressurized piping associated with the UST system; and 30 TAC (b)(1)(B), by failing to maintain UST records and make them immediately available for inspection upon request by agency personnel; PENALTY: $4,624; STAFF ATTORNEY: Clayton Smith, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Harlingen Regional Office, 1804 West Jefferson Avenue, Harlingen, Texas , (956) (5) COMPANY: Michael Rodriguez dba Oak Acres Mobile Home Park; DOCKET NUMBER: PWS-E; TCEQ ID NUM- BER: RN ; LOCATION: 1225 Osteen Street near Vidor, Orange County; TYPE OF FACILITY: public water system; RULES VIOLATED: Texas Health and Safety Code, (c) and 30 TAC (d)(2)(A) and (b)(4), by failing to maintain a disinfectant residual of at least 0.2 milligrams per liter of free chlorine throughout the distribution system at all times; and 30 TAC (f)(2) and (3)(B)(iii), by failing to maintain water works operation and maintenance records and make them readily available for review by the executive director upon request; PENALTY: $391; STAFF ATTORNEY: Elizabeth Carroll Harkrider, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Beaumont Regional Office, 3870 Eastex Freeway, Beaumont, Texas , (409) (6) COMPANY: Nortex RediMix, LLC; DOCKET NUMBER: AIR-E; TCEQ ID NUMBER: RN ; LOCA- TION: 4523 Farm-to-Market Road 2931 near Aubrey, Denton County; TYPE OF FACILITY: rock crusher; RULES VIOLATED: Texas Health and Safety Code, (a) and (b) and 30 TAC (a), by failing to obtain authorization prior to operating a source of air contaminants; PENALTY: $938; STAFF ATTORNEY: Clayton Smith, Litigation Division, MC 175, (512) ; RE- GIONAL OFFICE: Dallas-Fort Worth Regional Office, 2309 Gravel Drive, Fort Worth, Texas , (817) (7) COMPANY: SOHNA Investments, Inc.; DOCKET NUMBER: PWS-E; TCEQ ID NUMBER: RN ; LOCA- TION: 1206 Spring Cypress Road, Spring, Harris County; TYPE OF FACILITY: public water system; RULES VIOLATED: 30 TAC (f)(4), (e), and (c)(2)(A) and (f), by failing to IN ADDITION November 3, TexReg 6227

172 provide the results of annual nitrate sampling to the executive director (ED) for the 2014 and 2015 monitoring periods, and failing to issue public notification and submit a copy of the public notification to the ED regarding the failure to provide the results of nitrate sampling for the 2014 monitoring period; 30 TAC (c)(4)(B) and (c)(2)(A) and (f), by failing to collect a raw groundwater source Escherichia coli sample from the facility's active source within 24 hours of notification of a distribution total coliform-positive result for a routine sample during the month of September 2014, and failing to issue public notification and submit a copy of the notification to the ED regarding the failure to collect the raw groundwater source sample following notification of a coliform-positive result on a routine sample during the month of September 2014; 30 TAC (c)(2)(A) and (f), by failing to issue public notification and submit a copy of the public notification to the ED regarding the failure to conduct routine coliform monitoring for the month of December 2014; and TWC, and 30 TAC (a)(6), by failing to pay Public Health Service fees and associated late fees for TCEQ Financial Administration Division Account Number for Fiscal Year 2016; PENALTY: $366; STAFF ATTORNEY: Audrey Liter, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Houston Regional Office, 5425 Polk Street, Suite H, Houston, Texas , (713) TRD Charmaine Backens Director, Litigation Division Texas Commission on Environmental Quality Filed: October 24, 2017 Notice of Opportunity to Comment on Shutdown/Default Orders of Administrative Enforcement Actions The Texas Commission on Environmental Quality (TCEQ, agency, or commission) staff is providing an opportunity for written public comment on the listed Shutdown/Default Orders (S/DOs). Texas Water Code (TWC), authorizes the commission to order the shutdown of any underground storage tank (UST) system found to be noncompliant with release detection, spill and overfill prevention, and/or, after December 22, 1998, cathodic protection regulations of the commission, until such time as the owner/operator brings the UST system into compliance with those regulations. The commission proposes a Shutdown Order after the owner or operator of a UST facility fails to perform required corrective actions within 30 days after receiving notice of the release detection, spill and overfill prevention, and/or after December 22, 1998, cathodic protection violations documented at the facility. The commission proposes a Default Order when the staff has sent an executive director's preliminary report and petition (EDPRP) to an entity outlining the alleged violations, the proposed penalty, the proposed technical requirements necessary to bring the entity back into compliance, and the entity fails to request a hearing on the matter within 20 days of its receipt of the EDPRP or requests a hearing and fails to participate at the hearing. In accordance with TWC, 7.075, this notice of the proposed order and the opportunity to comment is 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 December 4, The commission will consider any written comments received and the commission may withdraw or withhold approval of an S/DO if a comment discloses facts or considerations that indicate that consent to the proposed S/DO 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 S/DO is not required to be published if those changes are made in response to written comments. A copy of each proposed S/DO is available for public inspection at both the commission's central office, located at Park 35 Circle, Building A, 3rd Floor, Austin, Texas 78753, (512) and at the applicable regional office listed as follows. Written comments about the S/DO shall be sent to the attorney designated for the S/DO at the commission's central office at P.O. Box 13087, MC 175, Austin, Texas and must be received by 5:00 p.m. on December 4, Written comments may also be sent by facsimile machine to the attorney at (512) The commission's attorneys are available to discuss the S/DOs and/or the comment procedure at the listed phone numbers; however, comments on the S/DOs shall be submitted to the commission in writing. (1) COMPANY: BASTROP FOOD MART, LLC; DOCKET NUM- BER: PST-E; TCEQ ID NUMBER: RN ; LO- CATION: 1317 Highway 71 East, Bastrop, Bastrop County; TYPE OF FACILITY: UST system and a convenience store with retail sales of gasoline; RULES VIOLATED: 30 TAC (a) and (b), by failing to demonstrate acceptable financial assurance for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum USTs; TWC, (d) and 30 TAC (a)(1), by failing to provide corrosion protection for the UST system; TWC, (c)(1) and 30 TAC (b)(1)(A), by failing to monitor the USTs for releases at a frequency of at least once every month (not to exceed 35 days between each monitoring); TWC, (a) and 30 TAC (b)(2), by failing to provide release detection for the pressurized piping associated with the UST system; 30 TAC (a), by failing to identify and designate for the UST facility at least one named individual for each class of operator - Class A, B, and C; and 30 TAC (b)(1)(B), by failing to maintain UST records and make them immediately available for inspection upon request by agency personnel; PENALTY: $13,457; STAFF ATTORNEY: Eric Grady, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Austin Regional Office, Park 35 Circle, Building A, Room 179, Austin, Texas 78753, (512) (2) COMPANY: IDRIS INVESTMENTS, INC. dba AFG Food Mart; DOCKET NUMBER: PST-E; TCEQ ID NUM- BER: RN ; LOCATION: 1500 Everman Parkway, Fort Worth, Tarrant County; TYPE OF FACILITY: UST system and a convenience store with retail sales of gasoline; RULES VIOLATED: TWC, (c)(1) and 30 TAC (b)(1)(A), by failing to monitor the USTs for releases at a frequency of at least once per month (not to exceed 35 days between each monitoring); and 30 TAC (a), by failing to identify and designate for the UST station at least one named individual for each class of operator - Class A, B, and C; PENALTY: $5,000; STAFF ATTORNEY: Ryan Rutledge, Litigation Division, MC 175, (512) ; REGIONAL OFFICE: Dallas-Fort Worth Regional Office, 2309 Gravel Drive, Fort Worth, Texas , (817) TRD Charmaine Backens Director, Litigation Division Texas Commission on Environmental Quality Filed: October 24, 2017 Notice of Public Meeting Air Quality Standard Permit for Concrete Batch Plants Proposed Registration No TexReg 6228 November 3, 2017 Texas Register

173 Application. Locke Investments, LLC, has applied to the Texas Commission on Environmental Quality (TCEQ) for an Air Quality Standard Permit, Registration No , which would authorize construction of a specialty concrete batch plant located at 700 Almeda-Genoa, Houston, Harris County, Texas This electronic map of the site or facility's general location is provided as a public courtesy and not part of the application or notice. For exact location, refer to application. The proposed facility will emit the following air contaminants: particulate matter including (but not limited to) aggregate, cement, road dust, and particulate matter with diameters of 10 microns or less and 2.5 microns or less. The executive director has completed the administrative and technical reviews of the application and determined that the application meets all of the requirements of a standard permit authorized by 30 TAC , which would establish the conditions under which the plant must operate. The executive director has made a preliminary decision to issue the registration because it meets all applicable rules. PUBLIC COMMENT/PUBLIC MEETING. You may submit public comments to the Office of the Chief Clerk at the address below. The TCEQ will consider all public comments in developing a final decision on the application. A public meeting will be held and will consist of two parts, an Informal Discussion Period and a Formal Comment Period. A public meeting is not a contested case hearing under the Administrative Procedure Act. During the Informal Discussion Period, the public will be encouraged to ask questions of the applicant and TCEQ staff concerning the permit application. The comments and questions submitted orally during the Informal Discussion Period will not be considered before a decision is reached on the permit application and no formal response will be made. Responses will be provided orally during the Informal Discussion Period. During the Formal Comment Period on the permit application, members of the public may state their formal comments orally into the official record. At the conclusion of the comment period, all formal comments will be considered before a decision is reached on the permit application. A written response to all formal comments will be prepared by the Executive Director and will be sent to each person who submits a formal comment or who requested to be on the mailing list for this permit application and provides a mailing address. The Public Meeting is to be held: Monday, November 13, 2017, at 7:00 p.m. Hiram Clarke Multi-Service Center 3810 West Fuqua Street Houston, Texas INFORMATION. Citizens are encouraged to submit written comments anytime during the public meeting or by mail before the close of the public comment period to the Office of the Chief Clerk, TCEQ, Mail Code MC-105, P.O. Box 13087, Austin, Texas or electronically at If you need more information about the permit application or the permitting process, please call the TCEQ Public Education Program, toll free, at (800) General information can be found at our website at Si desea información en español, puede llamar al (800) The application, executive director's preliminary decision, and standard permit will be available for viewing and copying at the TCEQ central office, the TCEQ Houston regional office, and the Johnson Neighborhood Library, 3517 Reed Road, Houston, Harris County, Texas. The facility's compliance file, if any exists, is available for public review at the TCEQ Houston Regional Office, 5425 Polk Street Suite H, Houston, Texas. Visit to review the standard permit. Further information may also be obtained from Locke Investments, LLC, 7600 South Santa Fe Drive, Building I, Houston, Texas or by calling Mr. Jay Lindholm, Project Manager, Sage ATC Environmental Consulting LLC at (512) Persons with disabilities who need special accommodations at the meeting should call the Office of the Chief Clerk at (512) or (800) RELAY-TX (TDD) at least one week prior to the meeting. Notice Issuance Date: October 19, 2017 TRD Bridget C. Bohac Chief Clerk Texas Commission on Environmental Quality Filed: October 25, 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 October 16, 2017, to October 23, 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, October 27, The public comment period for this project will close at 5:00 p.m. on Sunday, December 8, FEDERAL AGENCY ACTIVITIES: Applicant: Texas Department of Transportation Houston District acting as Federal Highways Administration Location: Wetlands and waterbodies adjacent to the Gulf of Mexico, near the cities of Gilchrist and High Island, Galveston County, Texas LATITUDE & LONGITUDE (NAD 83): Start: ; End: Project Description: The applicant proposes to permanently discharge 25,419 cubic yards of fill material into acres of wetlands and 18 linear feet of Waterbody 1 which are adjacent to the Gulf of Mexico during the raising, rehabilitation, overlay, and hardening of the two-lane undivided existing State Highway (SH) 87 starting east of Rollover Pass, continuing for 7.5 miles, and terminating 300 feet east of the intersection of SH 87 and SH 124. The existing roadway will be elevated 3 feet and the transition between the roadway and existing ground would be graded to a 4:1 slope. The roadside ditches and culverts will be modified to accommodate the improved roadway. The eastern end of the project will have the south side of SH 87 hardened using armor stone. The existing box culvert within Waterbody 1 will be extended 18 linear feet. The existing transition from eastbound SH 87 to northbound SH 124 would be removed and a new transition would be constructed adjacent to the existing southbound SH 124 IN ADDITION November 3, TexReg 6229

174 and the westbound SH 87. The beach access from SH 87 would be maintained. The project will be constructed entirely within existing right-of-way which is typically between 120 and 398 feet wide. Associated Application: U.S. Army Corps of Engineers (USACE) permit application #SWG , which will be reviewed pursuant to Section 10 of the Rivers and Harbors Act of 1899 and Section 404 of the Clean Water Act (CWA). CMP Project No: F1 Applicant: Texas Department of Transportation Beaumont District acting as Federal Highways Administration Location: The project site is in the Port Arthur Ship Canal parallel to State Highway (SH) 87 that starts near the City of West Port Arthur continuing for 3.1 miles and ending near the City of Sabine Pass, Jefferson County, Texas LATITUDE & LONGITUDE (NAD 83): Start: ; End Project Description: The applicant proposes to discharge an estimated total of 891 cubic yards of fill material below the mean high tide (MHT) line of the Port Arthur Ship Canal during installation of extended culverts, bedding, riprap, and sheet pile as bank stabilization and erosion prevention along a 3.1-mile distance of SH 87. The discharge of fill material is comprised of a total of 13,937 linear feet (9,738 linear feet below MHT) of bedding and riprap and a total of 8,740 linear feet (8,589 linear feet below MHT) of sheet pile placed in specific locations along the 3.1-mile distance. In locations where shoreline failure is currently undermining the pavement of SH 87, super sack (sandbags) placement has occurred to stabilize the shoreline until sheet pile, bedding, and riprap can be placed. The super sack (sandbags) will be retained during construction and removed upon completion. Associated Application: U.S. Army Corps of Engineers (USACE) permit application #SWG , which will be reviewed pursuant to Section 10 of the Rivers and Harbors Act of 1899 and Section 404 of the Clean Water Act (CWA). CMP Project No: F1 Further information on the applications listed above, including a copy of the consistency certifications or consistency determinations for inspection, may be obtained from Ms. Allison Buchtien, P.O. Box 12873, Austin, Texas , or via at federal.consistency@glo.texas.gov. Comments should be sent to Ms. Buchtien at the above address or by . TRD Anne L. Idsal Chief Clerk/Deputy Land Commissioner General Land Office Filed: October 25, 2017 Texas Health and Human Services Commission Public Notice - Waiver Renewal to the Youth Empowerment Services Program The Texas Health and Human Services Commission (HHSC) is submitting to the Centers for Medicare & Medicaid Services (CMS) on December 22, 2017, a request for a renewal to the Youth Empowerment Services (YES) waiver program, a waiver implemented under the authority of section 1915(c) of the Social Security Act. CMS has approved this waiver through March 31, The proposed effective date for the renewal is April 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 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. Updating HHSC waiver contact information. Making corrections to acronyms and terminology to ensure accurate terms are used. Updating the status of the Home and Community-based Settings Waiver Transition Plan response. Amending terminology to define and distinguish local mental health authority, local behavioral health authority, and entity providing targeted case management. Appendix A Replacing references to the Department of State Health Services (DSHS) with HHSC and removing language about Administrative Oversight due to the changes resulting from transformation of DSHS and HHSC into one agency. As part of the transformation, DSHS functions are the responsibility of HHSC as of September 1, Performance Measures in Appendix A, regarding HHSC administrative authority over DSHS, are removed and reevaluated for placement in a different appendix. Appendix B Updating waiver Medicaid eligibility group information to include the most accurate groups, types and regulations. Updating the unduplicated number of participants. Appendix C Incorporating responses to new Home and Community-based Settings (HCBS) Taxonomy tables in Appendix C to more clearly categorize the various services offered by the YES Program. 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 benefit. Appendix G Updating complaint reporting procedures due to transformation to reflect the HHSC Ombudsman as the primary intake point. Making the following revisions necessary to satisfy CMS recommendations in the final approved Interim Procedural Guidance report: Development of Clinical Management for Behavioral Health Services (CMBHS) report to track when level of care is first reviewed by HHSC. Development of CMBHS report to capture 90-day review of Individual Plans of Care by entity providing targeted case management. Staff developed YES Waiver Reports and modified the system to allow access to the reports by the entities providing targeted case management. Development of new Provider Qualifications Review Tool to improve the tracking and monitoring of required trainings and other waiver requirements. Appendix H Adding detailed information about the Quality Oversight Plan. Appendix I 42 TexReg 6230 November 3, 2017 Texas Register

175 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 YES waiver program is designed to provide home and community-based services to children with serious emotional disturbances and their families, with a goal of reducing or preventing children's inpatient psychiatric treatment and the consequent removal from their families. The waiver currently serves eligible children who are at least age 3 but under age 19. An individual may obtain a free copy of the proposed waiver renewal, including the YES settings transition plan, or ask questions, obtain additional information, or submit comments regarding this renewal or the YES settings transition plan, by contacting 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 Health and Human Services website at: TRD Karen Ray Chief Counsel Texas Health and Human Services Commission Filed: October 24, 2017 University of Houston System Evaluation of Institutional Culture Project 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 Evaluation of Institutional Culture Project 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 institutional culture and recommendations for changes in the form of policies, practices, training, traditions, new departments and/or services that will be focused on the continual improvement and shaping of the culture in a way that is focused on the core mission of the university. Eligible Applicants: Consulting firms with related knowledge and experience in: University organizational culture and assessment. Services to be performed: 1) Attendance at on-going meetings with steering committee to report on project progress 2) A complete strategic plan that includes: a) Assessment of current culture b) Recommendations derived from this assessment and key findings c) Presentation of key findings to steering committee and institutional leadership d) Timeline and order for completing recommendations e) Plan for future, on-going assessments of institutional culture, including instrument development 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 organizational culture and assessment. The university believes that using a third-party consultant, who has conducted similar evaluations of institutional culture at other like universities, will provide the institution with best practices that can be used to implement changes. The expertise needed for this evaluation is complex and requires a comprehensive knowledge of national industry trends related to university organizational culture. 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 culture, and make recommendations, as appropriate for the improvement of its programs and services. Review and Award Criteria: 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, December 5, 2017, at 2:00 p.m. CDT and the HUB Subcontracting Plan (HSP) on or before Wednesday, December 6, 2017, at 2:00 p.m. CDT. Obtaining a copy of the RFP: Copies will be available on the Electronic State Business Daily (ESBD) at IN ADDITION November 3, TexReg 6231

176 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) TRD Jackie Tenner Purchasing Director University of Houston System Filed: October 23, 2017 Texas Lottery Commission Scratch Ticket Game Number 2013 "Lucky 7's" 1.0 Name and Style of Scratch Ticket Game. A. The name of Scratch Ticket Game No is "LUCKY 7'S". The play style is "key number match". 1.1 Price of Scratch Ticket Game. A. The price for Scratch Ticket Game No shall be $5.00 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: 01, 02, 03, 04, 05, 06, 08, 09, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, 38, 39, 40, 7 SYM- BOL, 77 SYMBOL, BANK SYMBOL, COINS SYMBOL, GOLD SYMBOL, SAFE SYMBOL, $5.00, $10.00, $15.00, $20.00, $40.00, $50.00, $100, $500, $2,000 and $177,000. 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: 42 TexReg 6232 November 3, 2017 Texas Register

177 IN ADDITION November 3, TexReg 6233

178 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-Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (2013), a seven (7) digit Pack number, and a three (3) digit Scratch Ticket number. Scratch Ticket numbers start with 001 and end with 075 within each Pack. The format will be: H. Pack - A Pack of the "LUCKY 7'S" Scratch Ticket Game contains 075 Tickets, packed in plastic shrink-wrapping and fanfolded in pages of one (1). The Packs will alternate. One will show the front of Ticket 001 and back of 075 while the other fold will show the back of Ticket 001 and front of 075. 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 "LUCKY 7'S" 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 "LUCKY 7'S" Scratch Ticket Game is determined once the latex on the Scratch Ticket is scratched off to expose 45 (forty-five) Play Symbols. If a player matches any of the YOUR NUMBERS Play Symbols to any of the WINNING NUMBERS Play Symbols, the player wins the prize for that number. If the player reveals a "7" Play Symbol, the player wins TRIPLE the prize for that symbol. If the player reveals a "77" Play Symbol, the player wins ALL 20 PRIZES instantly! BONUS PLAY AREA: If a player reveals a prize amount, the player wins that amount 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 45 (forty-five) 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; 42 TexReg 6234 November 3, 2017 Texas Register

179 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 45 (forty-five) 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 45 (forty-five) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures; 17. Each of the 45 (forty-five) 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. A Ticket can win up to twenty-one (21) times in accordance with the approved prize structure. B. Adjacent Non-Winning Tickets within a Pack will not have matching Play Symbol and Prize Symbol patterns. Two (2) Tickets have matching Play Symbol and Prize Symbol patterns if they have the same Play Symbols and Prize Symbols in the same spots. C. The top Prize Symbol will appear on every Ticket unless restricted by other parameters, play action or prize structure. D. Each Ticket will have four (4) different WINNING NUMBERS Play Symbols. E. Non-winning YOUR NUMBERS Play Symbols will all be different. F. Non-winning Prize Symbols will never appear more than three (3) times. G. The "7" (TRP) and "77" (WINALL) Play Symbols will never appear in the WINNING NUMBERS Play Symbol spots. H. The "7" (TRP) and "77" (WINALL) Play Symbols will appear as dictated by the prize structure. I. On Tickets that contain the "77" (WINALL) Play Symbol, none of the WINNING NUMBERS Play Symbols will match any of the YOUR NUMBERS Play Symbols and the "7" (TRP) Play Symbol will not appear. J. Non-winning Prize Symbols will never be the same as the winning Prize Symbol(s). K. No prize amount in a non-winning spot will correspond with the YOUR NUMBERS Play Symbol (i.e., 20 and $20). 2.3 Procedure for Claiming Prizes. A. To claim a "LUCKY 7'S" Scratch Ticket Game prize of $5.00, $10.00, $15.00, $20.00, $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 $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. To claim a "LUCKY 7'S" Scratch Ticket Game prize of $2,000 or $177,000, 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 "LUCKY 7'S" 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: IN ADDITION November 3, TexReg 6235

180 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 "LUCKY 7'S" 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 "LUCKY 7'S" 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 21,000,000 Scratch Tickets in Scratch Ticket Game No The approximate number and value of prizes in the game are as follows: 42 TexReg 6236 November 3, 2017 Texas Register

181 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. 2013, 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: October 20, 2017 Scratch Ticket Game Number 2014 "Mega 7's" 1.0 Name and Style of Scratch Ticket Game. A. The name of Scratch Ticket Game No is "MEGA 7'S"" The play style is "key number match". 1.1 Price of Scratch Ticket Game. A. The price for Scratch Ticket Game No shall be $20.00 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: 01, 02, 03, 04, 05, 06, 08, 09, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, 38, 39, 40, 41, 42, 43, 44, 45, 46, 48, 49, 50, 7 SYMBOL, 77 SYMBOL, BANK SYM- BOL, COINS SYMBOL, GOLD SYMBOL, SAFE SYMBOL, $10.00, $20.00, $25.00, $50.00, $100, $300, $500, $1,000, $10,000, $100,000 and $977,000. 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 November 3, TexReg 6237

182 42 TexReg 6238 November 3, 2017 Texas Register

183 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-Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (2014), a seven (7) digit Pack number, and a three (3) digit Scratch Ticket number. Scratch Ticket numbers start with 001 and end with 025 within each Pack. The format will be: H. Pack - A Pack of the "MEGA 7'S" Scratch Ticket Game contains 025 Scratch Tickets, packed in plastic shrink-wrapping and fanfolded in pages of one (1). The Packs will alternate. One will show the front of Ticket 001 and back of 025 while the other fold will show the back of Ticket 001 and front of 025. 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 "MEGA 7'S" 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 "MEGA 7'S" Scratch Ticket Game is determined once the latex on the Scratch Ticket is scratched off to expose 67 (sixty-seven) Play Symbols. If a player matches any of the YOUR NUMBERS Play Symbols to any of the WINNING NUMBERS Play Symbols, the player wins the prize for that number. If the player reveals a "7" Play Symbol, the player wins 10 TIMES the prize for that symbol. If the player reveals a "77" Play Symbol, the player wins ALL IN ADDITION November 3, TexReg 6239

184 30 PRIZES instantly! BONUS PLAY AREA: If the player reveals a prize amount, the player wins that amount 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 67 (sixty-seven) 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 67 (sixty-seven) 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 67 (sixty-seven) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures; 17. Each of the 67 (sixty-seven) 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. A Ticket can win up to thirty-one (31) times in accordance with the approved prize structure. B. Adjacent Non-Winning Tickets within a Pack will not have matching Play Symbol and Prize Symbol patterns. Two (2) Tickets have matching Play Symbol and Prize Symbol patterns if they have the same Play Symbols and Prize Symbols in the same spots. C. The top Prize Symbol will appear on every Ticket, unless restricted by other parameters, play action or prize structure. D. Each Ticket will have six (6) different WINNING NUMBERS Play Symbols. E. Non-winning YOUR NUMBERS Play Symbols will all be different. F. Non-winning Prize Symbols will never appear more than four (4) times. G. The "7" (WIN10X) and "77" (WINALL) Play Symbols will never appear in the WINNING NUMBERS Play Symbol spots. H. The "7" (WIN10X) and "77" (WINALL) Play Symbols will only appear as dictated by the prize structure. I. On Tickets that contain the "77" (WINALL) Play Symbol, none of the WINNING NUMBERS Play Symbols will match any of the YOUR NUMBERS Play Symbols and the "7" (WIN10X) Play Symbol will not appear. J. Non-winning Prize Symbols will never be the same as the winning Prize Symbol(s). K. No prize amount in a non-winning spot will correspond with the YOUR NUMBERS Play Symbol (i.e., 20 and $20). 2.3 Procedure for Claiming Prizes. A. To claim a "MEGA 7'S" Scratch Ticket Game prize of $20.00, $25.00, $40.00, $50.00, $100, $300 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 $100, $300 or $500 Scratch Ticket Game. In the event the Texas Lottery Retailer cannot verify the claim, the Texas 42 TexReg 6240 November 3, 2017 Texas Register

185 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 "MEGA 7'S" Scratch Ticket Game prize of $1,000, $10,000, $100,000 or $977,000, 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 "MEGA 7'S" 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 "MEGA 7'S" 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 "MEGA 7'S" 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: IN ADDITION November 3, TexReg 6241

186 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. 2014, 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: October 20, 2017 North Central Texas Council of Governments Request for Proposals for Alternative Fuel Vehicles The North Central Texas Council of Governments (NCTCOG) is coordinating a bulk purchase procurement on behalf of several local governments for four alternative fuel vehicle platforms including propane, compressed natural gas, and electric or plug-in hybrid electric technologies. Responses from authorized vehicle dealers in Texas are being sought through a Request for Proposals (RFP). Respondents should work with alternative fuel industry upfitters or other vendors as needed to be able to deliver vehicles in the desired alternative fuel configuration to participating fleets. Proposals must be received no later than 5:00 p.m. Central Time, on Friday, December 22, 2017, to Bailey Muller, Air Quality Planner II, North Central Texas Council of Governments, 616 Six Flags Drive, Arlington, Texas The full RFP, including selection criteria, vehicle platforms, and other desired elements, will be available at by the close of business on Friday, November 3, This procurement is being administered as part of NCTCOG's work in the Fleets for the Future project. Fleets for the Future is a national partnership organizing regional and national cooperative procurement initiatives of alternative fuel vehicles, in partnership with the National Association of Regional Councils. NCTCOG encourages participation by disadvantaged business enterprises and does not discriminate on the basis of age, race, color, religion, sex, national origin, or disability. TRD Mike Eastland Executive Director North Central Texas Council of Governments Filed: October 25, 2017 Texas Board of Nursing Request for Proposals # The Texas Board of Nursing announces the issuance of Request for Proposals # The Board is seeking a proposer to develop, manage, and/or participate in a variety of special projects for the Texas Board of Nursing. The deadline for questions is 10/27/17, and the dead- 42 TexReg 6242 November 3, 2017 Texas Register

187 line for proposals is 11/24/17. The award date is 12/15/17. The Board reserves the right to accept or reject any or all proposals submitted. Parties interested in submitting a proposal may obtain information by contacting Keith LaSalle, (512) , Keith.LaSalle@bon.texas.gov. A copy of the RFP may be downloaded from the Electronic State Business Daily at TRD Jena Abel Deputy General Counsel Texas Board of Nursing Filed: October 19, 2017 Public Utility Commission of Texas Notice of Application for a Name Change Amendment to a Certificate of Convenience and Necessity Notice is given to the public of an application filed on September 22, 2017, and a supplement to the application filed on October 16, 2017, with the Public Utility Commission of Texas (commission) for a name change amendment to sewer certificates of convenience and necessity. Docket Style and Number: Request for Name Change from EMCAD Water and Wastewater, LLC to Undine Texas Environmental, LLC, Docket Number The Application: EMCAD filed an application to change its corporate or assumed name on its three sewer certificates of convenience and necessity 21019, 20816, and to Undine Texas Environmental, LLC. Persons wishing to intervene or comment on the action sought should contact the commission by mail at P.O. Box 13326, Austin, Texas , or by phone at (512) or toll-free at (888) The deadline to intervene in this proceeding is November 15, 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: October 20, 2017 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 October 12, 2017, in accordance with the Texas Water Code. Docket Style and Number: Application of BHP Water Supply Corporation and the City Of Caddo Mills for Sale, Transfer, or Merger of Certificate Rights in Hunt County, Docket Number The Application: BHP Water Supply Corporation and the City of Caddo Mills filed an application for the sale, transfer, or merger of facilities and certificate rights in Hunt County. Specifically, Caddo Mills seeks approval to acquire a portion of BHP's water facilities and certificated service area. BHP's water certificate of convenience and necessity (CCN) number will be amended to reflect the transfer of approximately 1,111 acres of service area with no current customers, and any associated facilities, to Caddo Mills. Caddo Mills' water CCN No will also be amended. Persons who wish to intervene in the proceeding or comment upon 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 Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas Further information may also be obtained by calling the commission's Office of Customer Protection at (512) or (888) Hearing and speech-impaired individuals with text telephones (TTY) may contact the commission through Relay Texas by dialing All correspondence should refer to Docket Number TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: October 19, 2017 Notice of Application for Service Area Exception Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) of an application on October 17, 2017, to amend a certificate of convenience and necessity for a service area exception within Williamson County, Texas. Docket Style and Number: Application of the City of Georgetown to Amend a Certificate of Convenience and Necessity for a Service Area Exception in Williamson County. Docket Number The Application: The City of Georgetown filed an application for a service area boundary exception to allow Georgetown to provide service to a specific customer located within the certificated service area of Pedernales Electric Cooperative, Inc. PEC has provided an affidavit of relinquishment for the proposed change. Persons wishing to comment on the action sought or intervene should contact the commission no later than November 10, 2017, by mail at 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: October 19, 2017 Notice of Application for Service Area Exception Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) of an application on October 17, 2017, to amend a certificate of convenience and necessity for a service area exception within Montague County, Texas. Docket Style and Number: Application of Cooke County Electric Cooperative, Inc. to amend a Certificate of Convenience and Necessity for a Service Area Exception in Montague County. Docket Number The Application: Cooke County Electric Cooperative, Inc. filed an application for a service area boundary exception to be able to provide service to a specific customer located within the certificated service area of Wise County Electric Cooperative, Inc. (WCEC). WCEC has provided an affidavit of relinquishment for the proposed change. IN ADDITION November 3, TexReg 6243

188 Persons wishing to comment on the action sought or intervene should contact the commission no later than November 10, 2017 by mail at 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: October 19, 2017 Notice of Application for Service Area Exception Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) of an application on October 17, 2017, to amend a certificate of convenience and necessity for a service area exception within Montague County, Texas. Docket Style and Number: Application of Cooke County Electric Cooperative, Inc. to amend a Certificate of Convenience and Necessity for a Service Area Exception in Montague County. Docket Number The Application: Cooke County Electric Cooperative, Inc., filed an application for a service area boundary exception to be able to provide service to a specific customer located within the certificated service area of Wise County Electric Cooperative, Inc., (WCEC). WCEC has provided an affidavit of relinquishment for the proposed change. Persons wishing to comment on the action sought or intervene should contact the commission no later than November 10, 2017, by mail at 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: October 19, 2017 Notice of Application to Amend a Service Provider Certificate of Operating Authority On October 18, 2017, Cincinnati Bell Any Distance Inc., filed an application with the Public Utility Commission of Texas (commission) to amend service provider certificate of operating authority No to reflect a change in name. Docket Style and Number: Application of Cincinnati Bell Any Distance Inc., to Amend its Service Provider Certificate of Operating Authority, Docket No Persons wishing to comment on the action sought should contact the commission by mail at P.O. Box 13326, Austin, Texas, , or by phone at (512) or toll free at (888) no later than November 10, Hearing and speech-impaired individuals with text telephones (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: October 20, 2017 Notice of Application to Amend a Service Provider Certificate of Operating Authority On October 20, 2017, an application was filed with the Public Utility Commission of Texas (commission) to amend a service provider certificate of operating authority. Docket Style and Number: Application of TeleQuality Communications, Inc. and Education Networks of America, Inc. to Amend a Service Provider Certificate of Operating Authority, Docket No Application: TeleQuality Communications, Inc. (TeleQuality) and Education Networks of America, Inc. (ENA) filed an application to amend service provider certificate of operating authority number to reflect a corporate restructuring and a change in ownership and control. TeleQuality will be re-domiciled and converted from a Texas corporation to a Delaware limited liability company, then TeleQuality will be acquire by ENA. 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 (888) no later than November 10, Hearing and speech-impaired individuals with text telephones (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: October 23, 2017 Notice of Application to Amend a Water Certificate of Convenience and Necessity Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) on October 16, 2017, of an application to amend a water certificate of convenience and necessity (CCN) in Archer County. Docket Style and Number: Application of Windthorst Water Supply Corporation to Amend a Water Certificate of Convenience and Necessity in Archer County, Docket Number The Application: Windthorst Water Supply Corporation filed an application to amend its water CCN No in Archer County. The service area being requested includes three separate areas totaling approximately 425 acres, with a total of three current customers. Persons wishing to intervene or comment on the action sought should contact the commission by mail at P.O. Box 13326, Austin, Texas , or by phone at (512) or toll-free at (888) A deadline for intervention in this proceeding will be established. 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 TexReg 6244 November 3, 2017 Texas Register

189 Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: October 19, 2017 Notice of Application to Amend Certificated Service Area Boundaries Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) of an application on October 17, 2017, for an amendment to certificated service area boundaries within Williamson County, Texas. Docket Style and Number: Application of the City of Georgetown for a Minor Boundary Change in Williamson County, Docket Number The Application: The City of Georgetown filed an application for a service area boundary exception to allow Georgetown to provide service to existing city-owned facilities located within the certificated service area of Pedernales Electric Cooperative, Inc. Persons wishing to comment on the action sought or intervene should contact the commission no later than November 10, 2017 by mail at 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: October 19, 2017 Notice of Filing to Withdraw Services Notice is given to the public of an application filed with the Public Utility Commission of Texas (commission) to withdraw services under 16 Texas Administrative Code (h). Docket Title and Number: Application of CenturyTel of Lake Dallas, Inc. d/b/a CenturyLink to Withdraw Prepaid Local Telephone Service, Under 16 Texas Administrative Code (h) - Docket Number The Application: On October 3, 2017, CenturyTel of Lake Dallas, Inc. d/b/a CenturyLink filed an application with the commission to withdraw its Prepaid Local Telephone Service package. CenturyLink seeks to withdraw the services because it no longer markets or sells these prepaid services. CenturyLink explained that the deletion of these old services will avoid confusion about the availability of offers if/when new prepaid offers are introduced. The proceedings were docketed and suspended on October 4, 2017, to allow adequate time for review and intervention. Information on the application may be obtained by contacting the commission by mail at 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 The deadline to intervene is November 27, All inquiries should reference Docket Number TRD Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: October 24, 2017 Notice of Petition for Amendment to Certificate of Convenience and Necessity by Expedited Release Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) on October 16, 2017, a petition to amend a certificate of convenience and necessity by expedited release in Kaufman County, Texas. Docket Style and Number: Petition of Wynne/Jackson, Inc. to Amend Markout Water Supply Corporation's Certificate of Convenience and Necessity in Kaufman County by Expedited Release, Docket Number The Petition: Wynne/Jackson, Inc. seeks the expedited release of acres from Markout Water Supply Corporation's water CCN No in Kaufman County under Texas Water Code (a-5) and 16 Texas Administrative Code (l). Persons wishing to comment on the action sought should contact the commission no later than November 15, 2017, by mail at 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: October 19, 2017 Notice of Petition for Amendment to Certificate of Convenience and Necessity by Expedited Release Notice is given to the public of the filing with the Public Utility Commission of Texas (commission) on October 18, 2017, a petition to amend a certificate of convenience and necessity (CCN) by expedited release in Liberty County. Docket Style and Number: Petition of River Ranch Holdings, LLC to Amend Woodland Hills Water Company, LLC's Certificate of Convenience and Necessity in Liberty County by Expedited Release, Docket Number The Petition: River Ranch seeks the expedited release of 6, acres from Woodland Hills' water CCN No in Liberty County under Texas Water Code (a-5) and 16 Texas Administrative Code (l). Persons wishing to comment on the action sought should contact the commission no later than November 17, 2017, by mail at 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 IN ADDITION November 3, TexReg 6245

190 Adriana Gonzales Rules Coordinator Public Utility Commission of Texas Filed: October 20, 2017 Texas Department of Transportation Public Notice - Aviation Pursuant to Transportation Code, , and Title 43, Texas Administrative Code, , the Texas Department of Transportation conducts public hearings to receive comments from interested parties concerning proposed approval of various aviation projects. For information regarding actions and times for aviation public hearings, please go to the following website: Or visit and under How Do I, choose Find Hearings and Meetings, then choose Hearings and Meetings, and then choose Schedule. Or contact Texas Department of Transportation, Aviation Division, 150 East Riverside, Austin, Texas 78704, (512) or (800) 68-PI- LOT. TRD Joanne Wright Deputy General Counsel Texas Department of Transportation Filed: October 18, 2017 Texas Water Development Board Notice of Public Hearings and Intent to Adopt Amendment to the 2017 State Water Plan The Texas Water Development Board (TWDB) will conduct two public hearings in accordance with Texas Water Code (r) and 31 Texas Administrative Code (g) and 358.4(a) to receive public comment on a proposed amendment to the 2017 State Water Plan, Water for Texas The proposed amendment incorporates the designation of the Cross Timbers Aquifer as a minor aquifer and three regional water plan amendments. The hearings will seek comments on specific items, as noted below. The first hearing will be held on November 8, The hearing will begin at 1:00 p.m. in the East Hall of the Bowie Community Center, 413 Pelham Street, Bowie, Texas, At this hearing, the Board seeks to receive public comments related to considering an amendment to the 2017 State Water Plan to name four Paleozoic-age geologic formations in north central Texas as the Cross Timbers Aquifer and to designate the Cross Timbers Aquifer as a minor aquifer. The Board authorized this public hearing during a Board Meeting on September 7, The second hearing will be held on December 4, The hearing will begin at 2:00 p.m. in Room 1-100, William B. Travis Building, 1701 North Congress Avenue, Austin, Texas At this hearing, the Board seeks to receive public comments related to the portion of the state water plan amendment incorporating changes by the Regions G, K, and L regional water planning groups to their adopted 2016 regional water plans. The Region G Regional Water Planning Group adopted changes to its regional water plan on August 16, Region G added a new recommended water management strategy and three associated water management strategy projects to the 2016 Brazos G Regional Water Plan for the City of Waco to provide treated surface water from Lake Waco to the City of Riesel and nine entities within McLennan County-Other. On September 19, 2017, the TWDB received the 2016 Region G Regional Water Plan amendment materials and request for approval. These materials were reviewed by Board staff and the amendment to the regional water plan was approved by the Board on October 17, The Region K Regional Water Planning Group adopted changes to its regional water plan on April 26, Region K added a new recommended water management strategy and project for Creedmoor-Maha Water Supply Corporation to replace and upsize water supply transmission lines. On May 4, 2017, the TWDB received the 2016 Region K Regional Water Plan amendment materials and request for approval. These materials were reviewed by Board staff and the amendment to the regional water plan was approved by the Board on July 20, The Region L Regional Water Planning Group adopted changes to its regional water plan on August 3, Region L substituted the Guadalupe Blanco River Authority (GBRA) Mid-Basin Water Supply Project-Conjunctive Use with Aquifer Storage and Recovery alternative water management strategy for the previously recommend GBRA Mid-Basin Water Supply Project-Surface Water with Aquifer Storage and Recovery and the Texas Water Alliance Regional Carrizo Aquifer Development project. The Executive Administrator approved the water management strategy substitution on June 13, Interested persons are encouraged to attend the hearings to present comments concerning the proposed amendment. Those who cannot attend the hearings may provide written comments on or before December 4, 2017, to Mr. Todd Chenoweth, General Counsel, Texas Water Development Board, P.O. Box 13231, Capitol Station, Austin, Texas or by to PUBLIC-COMMENT@twdb.texas.gov. The TWDB will receive public comment on the proposed amendment until close of business at 5:00 p.m. on December 4, Copies of the proposed amendment are available for inspection during regular business hours at the Stephen F. Austin Building from the Water Use, Projections, and Planning Division, Texas Water Development Board, 1700 North Congress Avenue, Austin, Texas If you want to review these documents, please call (512) for arrangements to view them. A copy of the proposed amendment will also be available on the Board's web site at The Board will consider adopting the amendment to the 2017 State Water Plan at the regularly scheduled Board meeting to be noticed separately. TRD Todd Chenoweth General Counsel Texas Water Development Board Filed: October 23, TexReg 6246 November 3, 2017 Texas Register

191 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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