Adopted Rules Title 40

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Subchapter A, consisting of §4.1, concerning Purpose; §4.2, concerning Application; §4.3, concerning Definitions; §4.4, concerning Requirements; §4.5, concerning Regulations and Statutes Governing Confidentiality of Protected Health Information; §4.6, concerning Exhibit; §4.7, concerning References; and §4.8, concerning Distribution.

All sections are adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3441). These rules will not be republished.

During the 84th Legislative Session, the Texas Legislature passed Senate Bill 200, addressing the reorganization of health and human services delivery in Texas. As a result, the Department of Aging and Disability Services was abolished September 1, 2017, after all its functions were transferred to HHSC. The repeals remove rules that are no longer necessary.

The rules reference federal privacy laws, rules, and regulations that are now addressed in the Local Intellectual and Developmental Disability Authority performance contract.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The repeals are adopted under Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of 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.

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Chapter 5, Subchapter A, consisting of §5.1, concerning Purpose; §5.2, concerning Application; 5.3, concerning Definitions; 5.4, concerning Philosophy; 5.5, concerning General Principles; §5.6, concerning Evaluation and Diagnosis; §5.7, concerning Prescribing Parameters; 5.8, concerning Emergency Use of Psychoactive Medication; §5.9, concerning Consent and Patient Education; §5.10, concerning Medication Monitoring; §5.11, concerning Special Populations; §5.12, concerning Quality Improvement; §5.13, concerning References; §5.14, concerning Distribution; and Subchapter I, consisting of §5.401, concerning Purpose; §5.402, concerning Application; §5.403, concerning Definitions; §5.404, concerning General Provisions; §5.405, concerning General Principles for Behavior Therapy Programs; §5.406, concerning Development, Implementation, and Monitoring of Effectiveness of Behavior Therapy Programs; §5.407, concerning Requirement to Obtain Legally Adequate Consent, Consent, or Authorization; §5.408, concerning Use of Restraint; §5.409, concerning Documenting and Reporting Behavior Therapy Programs That Use Highly Restrictive Procedures; §5.411, concerning References; and §5.412, concerning Distribution.

All sections are adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3442). These rules will not be republished.

The topics of these rules are required by standard licensing requirements for medical professionals or by the federal conditions of participation developed by the Centers for Medicare and Medicaid Services for intermediate care facilities for individuals with intellectual disabilities.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Chapter 7, Subchapter A, consisting of §7.1, concerning Purpose; §7.6, concerning Assignment and Use of Pooled Vehicles; §7.9, concerning Material Safety Data Sheets; §7.23, concerning Unauthorized Departures That May Have Unusual Consequences; §7.33, concerning Mail for Staff Residing On Campus; §7.34, concerning Commercial Solicitation on Grounds; Subchapter B, consisting of §7.51, concerning Purpose; §7.52, concerning Application; §7.53, concerning Definitions; §7.54, concerning Procurement; §7.55, concerning Accountability; §7.56, concerning Provisions for All Contracts; §7.57, concerning Additional Requirements for Specific Contracts; §7.58, concerning Contract Extension or Renewal; §7.60, concerning Protest and Appeal Procedures; §7.61, concerning Contract Monitoring; §7.62, concerning Remedies and Sanctions for All Contracts Except Construction Contracts; §7.63, concerning Negotiation and Mediation; §7.64, concerning References; §7.65, concerning Distribution; Subchapter D, consisting of §7.159, concerning References; §7.160, concerning Distribution; Subchapter S, Division 1 consisting of §7.901, concerning Purpose; §7.902, concerning Applicability; §7.903, concerning Definitions; §7.904, concerning Prerequisites to Suit; §7.905, concerning Sovereign Immunity; Division 2 consisting of §7.906, concerning Notice of Claim of Breach of Contract; §7.907, concerning Agency Counterclaim; §7.908, concerning Request for Voluntary Disclosure of Additional Information; §7.909, concerning Duty to Negotiate; §7.910, concerning Timetable; §7.911, concerning Conduct of Negotiation; §7.912, concerning Settlement Approval Procedures; §7.913, concerning Settlement Agreement; §7.914, concerning Costs of Negotiation; §7.915, concerning Request for Contested Case Hearing; Division 3, consisting of §7.916, concerning Mediation Timetable; §7.917, concerning Conduct of Mediation; §7.918, concerning Agreement to Mediate; §7.919, concerning Qualifications and Immunity of the Mediator; §7.920, concerning Confidentiality of Mediation and Final Settlement Agreement; §7.921, concerning Costs of Mediation; §7.922, concerning Settlement Approval Procedures; §7.923, concerning Initial Settlement Agreement; §7.924, concerning Final Settlement Agreement; and §7.925, concerning Referral to the State Office of Administrative Hearings.

All sections are adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3444). These rules will not be republished.

These rules are duplicative of agency rules located in Title 1 TAC, Chapter 391 and agency policies.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

SUBCHAPTER D. PERMANENT IMPROVEMENTS DONATED BY INDIVIDUALS OR COMMUNITY GROUPS

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

SUBCHAPTER S. NEGOTIATION AND MEDIATION OF CERTAIN CONTRACT CLAIMS AGAINST DADS

DIVISION 1. GENERAL

40 TAC §§7.901 - 7.905

STATUTORY AUTHORITY

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 July 14, 2025.

TRD-202502455

Karen Ray

Chief Counsel

Department of Aging and Disability Services

Effective date: August 3, 2025

Proposal publication date: June 6, 2025

For further information, please call: (512) 221-9021

DIVISION 2. NEGOTIATION

40 TAC §§7.906 - 7.915

STATUTORY AUTHORITY

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 July 14, 2025.

TRD-202502456

Karen Ray

Chief Counsel

Department of Aging and Disability Services

Effective date: August 3, 2025

Proposal publication date: June 6, 2025

For further information, please call: (512) 221-9021

DIVISION 3. MEDIATION

40 TAC §§7.916 - 7.925

STATUTORY AUTHORITY

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 July 14, 2025.

TRD-202502458

Karen Ray

Chief Counsel

Department of Aging and Disability Services

Effective date: August 3, 2025

Proposal publication date: June 6, 2025

For further information, please call: (512) 221-9021

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Chapter 71 consisting of §71.101, concerning Definitions; §71.102, concerning Requests for Information; §71.103, concerning Schedule of Fees; §71.201, concerning Definitions; §71.202, concerning Confidential Nature of Client Information; §71.203, concerning Client Access to Own Information; §71.204, concerning Release for Death Notification; §71.205, concerning Release for Eligibility Verification, Billing, and Service Delivery; §71.206, concerning Release under Client Authorization; §71.301, concerning Definitions; §71.302, concerning Right of Access to Your Individually Identifiable Health Information; §71.303, concerning Designated Record Sets; §71.304, concerning Right to Report of Disclosures; §71.305, concerning Fees for Copies of Information; §71.306, concerning Requests for Further Limits on Uses and Disclosures of Individually Identifiable Health Information; §71.307, concerning Requests for Communication by Different Means or at Different Locations; §71.308, concerning Verification of Identity and Authority; §71.309, concerning Disclosure of Health Information; §71.310, concerning Complaints; §71.401, concerning Right to Correct Incorrect Information; §71.402, concerning Requesting a Correction; §71.403, concerning Where to Send a Request for Correction; §71.404, concerning The Correction Review; and §71.405, concerning Correction of Individually Identifiable Health Information in a Designated Record Set

All sections are adopted without changes to the proposed text as published in the May 23, 2025, issue of the Texas Register (50 TexReg 3109). These rules will not be republished.

The repeals are necessary to remove obsolete rules adopted in 2003 by the Texas Department of Human Services concerning information practices. These rules are outdated, duplicative of current rules, and contain incorrect agency information.

The 21-day comment period ended June 13, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

SUBCHAPTER L. MOU--CAPACITY ASSESSMENT FOR SELF CARE AND FINANCIAL MANAGEMENT

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Subchapter L, consisting of §72.5001, concerning Memorandum of Understanding Concerning Capacity Assessment for Self Care and Financial Management.

Section 72.5001 is adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3446). This rule will not be republished.

The rule in Texas Administrative Code, Title 40, Chapter 72, Subchapter L was authorized by Texas Health and Safety Code §533.044, which was repealed, effective April 1, 2015. During the 84th Legislative Session, the Texas Legislature passed Senate Bill 200, addressing the reorganization of health and human services delivery in Texas. As a result, the Department of Aging and Disability Services was abolished September 1, 2017, after all its functions were transferred to HHSC. The repeal removes a rule that is rule in no longer necessary.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeal.

The repeal is adopted under Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of 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.

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Chapter 77, Subchapter A, consisting of §77.1, concerning What is the purpose of this chapter; §77.2, concerning What do the words and terms in this chapter mean; Subchapter B, consisting of §77.11, concerning What is the training activities program; §77.12, concerning Who is eligible to participate in the training activities program; §77.13, concerning Who should I ask if I want to participate in the training activities program; §77.14, concerning What are my obligations if I participate in the training activities program; §77.15, concerning Can I get a waiver for any of my obligations; §77.16, concerning How do I get a waiver for any of my obligations; §77.17, concerning What happens if I am placed on corrective action while I am participating in the training activities program; Subchapter C, consisting of §77.31, concerning What is the education assistance program; §77.32, concerning Am I eligible to participate in the education assistance program; §77.33, concerning Who do I ask if I want to participate in the education assistance program; §77.34, concerning What am I required to do if I participate in the education assistance program; §77.35, concerning What if I cannot work full time and keep my class schedule; §77.36, concerning What type of institution of higher education must I attend; §77.37, concerning What financial assistance is available; §77.38, concerning How often does DHS review my participation in the education assistance program; §77.39, concerning In what situations would DHS cancel my education assistance agreement and my participation in the program; §77.40, concerning If my participation is cancelled, will I have to repay any money to DHS; §77.41, concerning Can I get a waiver, deferment, or reduction of my repayment obligation; §77.42, concerning How do I ask for a waiver, deferment, or reduction; §77.43, concerning If my participation in the education assistance program is cancelled, can I participate in the program in the future; and §77.44, concerning What happens if I am placed on corrective action while I am participating in the education assistance program.

All sections are adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3447). These rules will not be republished.

These rules are duplicative of agency rules located in Title 1 TAC, Chapter 396 and agency policies regarding employee training and education.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The repeals adopted under Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of 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.

The executive commissioner of the Texas Health and Human Services Commission (HHSC) adopts the repeal of Subchapter A, consisting of §101.101, concerning Purpose; §101.103, concerning Legal Authority; §101.105, concerning Definitions; §101.107, concerning Opportunities for Citizen Participation; §101.109, concerning Complaints; §101.111, concerning Cooperation with Other Public Agencies; §101.113, concerning Criminal History Information on Applicants for Employment; §101.115, concerning Use of Criminal History Information in Contracting; §101.117, concerning Fees for Department Publications; §101.119, concerning Gifts and Donations to DARS; §101.121, concerning Qualified Vocational Rehabilitation Counselor (QVRC); Subchapter B, consisting of §101.201, concerning Purpose; §101.203, concerning Legal Authority; §101.205, concerning Definitions; §101.207, concerning Adoption of Rules; Subchapter D, consisting of §101.805, concerning Definitions; §101.807, concerning Privacy Policies; §101.809, concerning Confidentiality of Consumer Information in Vocational Rehabilitation Program; §101.811, concerning Confidentiality of Consumer Information in the Specialized Telecommunications Assistance Program; §101.813, concerning Use of Consumer Information in the Deaf and Hard of Hearing Driver Identification Program; Subchapter F, consisting of §101.1307, concerning Memorandum of Understanding Regarding Continuity of Care for Physically Disabled Inmates; §101.1309, concerning Memorandum of Understanding Regarding the Exchange and Distribution of Public Awareness Information; and §101.1311, concerning Memorandum of Understanding Concerning Coordination of Services to Disabled Persons.

All sections are adopted without changes to the proposed text as published in the June 6, 2025, issue of the Texas Register (50 TexReg 3449). These rules will not be republished.

During the 84th Legislative Session, the Texas Legislature passed Senate Bill 200, addressing the reorganization of health and human services delivery in Texas. As a result, the Department of Assistive and Rehabilitative Services was abolished September 1, 2017, after all its functions were transferred to HHSC and the Department of Family and Protective Services. The repeals remove rules that are no longer necessary.

These rules are duplicative of agency rules located in Title 1 TAC, Chapters 390 and 391 and agency policies regarding administration and procedures.

The 21-day comment period ended June 27, 2025. During this period, HHSC did not receive any comments regarding the proposed repeals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

The Texas Veterans Land Board (Board) adopts the amendments to Texas Administrative Code, Title 40, Part 5, Chapter 175, Subchapter A, §§175.1, 175.2, 175.4 - 175.15, 175.17 - 175.19, 175.21, and 175.22. The amended rules are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3217). The amended rules will not be republished.

The Board identified the need for the amendments during its review of this subchapter's rules, conducted pursuant to Section 2001.039 of the Texas Government Code. At its May 13, 2025 meeting, the Board unanimously approved the adoption of these amendments.

The adopted rule amendments to §175.2. remove definitions for the Board and Veterans Land Program because they are provided for in Section 161.001 of the Texas Natural Resources Code (Code), specify that a veteran can hold only one loan originated for that veteran, update a reference to the definition of "missing/missing in action," update citations to the definition for "surviving spouse," relocate provisions on the determination of evidence of service in the Armed Forces of Vietnam to improve the rule's readability, and change provision pertaining to discharge status to limit eligibility for the loan benefits of the Veterans Land Program and other Board loan programs to those who received discharge types of honorable, general, or medical.

The adopted rule amendment to §175.5 separates the provisions in a subsection into two subsection to improve the rule's readability.

The adopted rule amendment to §175.11 clarifies provisions on interest rates pertaining to transferred contracts for sale and purchase.

The adopted rule amendments to §175.12 remove a subsection and relocated it to §175.13, which is the more appropriate rule because it contains all provisions on land improvements. The adopted amendments also update a reference to §175.4.

As mentioned, the adopted rule amendment to §175.13 adds a subsection of §175.12 to bring all provisions in the chapter involving land improvements into one subsection and make references to the Chairman consistent with how the term is used throughout this chapter.

The adopted rule amendment to §175.15 updates a reference to the Texas Department of Transportation.

The adopted rule amendments to §175.17 add a fee that the Board may charge for the costs of a credit report for processing a loan.

The adopted rule amendments to §175.18 update a reference to §175.2 of this chapter, update a reference to Chapter 161 of the Texas Natural Resources Code, makes references to the Chairman consistent with how the term is used throughout this chapter.

The adopted rule amendments to §175.22 remove three subsections because their provisions are located in Sections 161.013 and 161.062 of the Texas Natural Resources Code and Section 49-b(b) of the Texas Constitution and is thus superfluous, and update a reference to the chairman.

In addition, the title of this subchapter is changed to "General Rules of Contract for Deed and Financing for Land" to specify the rules' subject matter.

Also, throughout this chapter, references to the Board are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Code, references to this chapter are changed from "title" to "chapter," as the former is generally used throughout the Texas Administrative Code, citations are updated, language is updated, and grammatical and editorial changes to language are made to improve the rule's readability.

Section 161.001 of the Natural Resources Code ("Code"), which allows the Board to change its definition of "veteran" in Chapter 161 to protect the best interests of the Veterans Land Program.

Section 161.063 of the Code, which allows the Board to adopt rules and procedures it considers necessary to ensure the integrity of the Program.

Section 161.232 of the Code, which requires the Board to adopt rules for land sales under the Program.

Section 161.236 of the Code, which allows the Board to set rules to determine the number of tracts of land a veteran may purchase under the Program.

Section 161.281 of the Code, which allows the Board to waive land inspection requirements by rule.

Section 161.284 of the Code, which allows the Board to require an on-site meeting between a land appraiser and a veteran purchaser by rule.

Section 161.362 of the Code, which allows the Board to adopt rules related to insurance requirements under the Program.

Section 161.504 of the Code, which allows the Board to set rules to determine the number of loans a veteran purchaser may receive under the Program.

Section 161.508 of the Code, which requires the Board to adopt rules relating to fees, charges, and interest rates that may be charged by Program-participating lending institutions

Section 161.512 of the Code, which allows the Board by rule to increase interest rates and accelerate repayments on loans.

Section 161.513 of the Code, which requires the Board to adopt rules setting land loan foreclosure proceedings.

The code affected by the proposed amendments is Chapter 161 of the Texas Natural Resources 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.

The Texas Veterans Land Board (Board) adopts the amendments to Texas Administrative Code, Title 40, Part 5, Chapter 175, Subchapter B, §§175.51 - 175.56, 175.58, 175.59, 175.61, and 175.62. The amended rules are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3224). The amended rules will not be republished.

The adopted rule amendments to §175.51 remove definitions for "lending institution" and "loan" or "mortgage" loans because these terms are provided for near verbatim in Section 161.502 of the Texas Natural Resources Code and update the name of Subchapter A of this chapter.

The adopted rule amendment to §175.54 removes language from a subsection requiring that certain interests secure approved loans because this requirement is provided for in Section 161.505 of the Code.

The adopted rule amendments to §175.56 remove language from a subsection giving the Board authority to approve third party loan fees and a subsection giving the Board authority to set loan interest rates because they are provided for in Section 161.508 of the Code.

In addition, the title of this subchapter is changed to "Land Mortgage Financing" to specify the type of mortgage financing under this chapter.

Also, throughout this chapter, references to the Board are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Texas Natural Resources Code, and references to this chapter are changed from "title" to "chapter," as the former is generally used throughout the Texas Administrative Code.

Furthermore, editorial changes are made throughout this chapter to correct grammar, update and correct citations, remove superfluous or outdated language, and improve the rules' readability.

Section 161.063 of the Texas Natural Resources Code ("Code"), which gives the Board broad rulemaking authority under Chapter 161 of the Code, i.e., the Board's enabling statute that also provides for the Veterans Land Program (Program);

Section 161.503 of the Code, which requires the Board to adopt rules necessary to implement Chapter 161, Subchapter K, which pertains to loans issued under the Program;

Section 161.504, which allows the Board to determine the number of loans a person may receive under Subchapter K by rule; and

Section 161.508 of the Code, which requires the Board to adopt rules relating to and limiting fees, charges, and interest rates collected or charged by a lending institution in connection with financing land related to the Program.

The code affected by the proposed amendments is Chapter 161 of the Texas Natural Resources 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.

The Texas Veterans Land Board ("Board") adopts the amendments to Texas Administrative Code, Part 5, Chapter 175, Subchapter C, §§175.100 - 175.108, §175.110, and §175.111. The amended rules are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3227). The amended rules will not be republished.

The adopted rule amendments to §175.100 update citations to the Administrative Procedures Act and the Texas Civil Practice and Remedies Code and make references to the Governmental Disputes Resolution Act and Alternative Disputes Resolutions Act consistent with §175.101.

The adopted rule amendments to §175.101 remove unnecessary definitions for the Board, the Commissioner, and the Executive Secretary, as those terms are defined in Chapter 161 of the Texas Natural Resources Code ("Code"); remove a redundant section for the definition of Alternative Dispute Resolution in Section 2009.005 of the Texas Government Code; add a definition for "ADR Coordinator" to account for its frequency in this subchapter; update a definition for the Commissioner to reflect the position's responsibilities; and update citations.

The adopted rule amendment to §175.103 makes qualifications for selection as an ADR Coordinator or Impartial Third Party disjunctive to reflect the rule's meaning.

The adopted rule amendment to §175.104 corrects a reference to ADR Coordinator training requirements.

The adopted rule amendments to §175.105 revise a citation to Governmental Dispute Resolution Act, Texas Government Code, Chapter 2009, changes references to the Board from "agency" to "board," and remove three responsibilities of the ADR Coordinator that are already provided for in the ADR Coordinator's responsibilities under Section 161.036 of the Texas Natural Resources Code.

The adopted rule amendment to §175.107 revises a citation to the Governmental Dispute Resolution Act, Texas Government Code, Chapter 2009.

The adopted rule amendment to §175.108 removes a reference to a nonexistent form used to request use of the alternative dispute resolution process to replace it with a request to the Board's ADR coordinator.

The adopted rule amendment to §175.111 specifies a reference to the Public Information Act.

In addition, throughout this chapter, references to the General Land Office and Commissioner are changed to the Board and chairman, respectively, as these rules pertain to the Board.

Also, throughout this chapter, references to the Board, the Commissioner, and the Executive Secretary are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Code. Also, editorial changes are made throughout this chapter to correct grammar, remove superfluous or outdated language, and improve the rules' readability.

Section 161.036 of the Texas Natural Resources Code ("Code"), which requires the Board to develop a policy to encourage the use of ADR procedures under Chapter 2009 of the Texas Government Code and in accordance with to any guidelines issued by the State Office of Administrative Hearings;

Section 161.063 of the Code, which gives the Board general rulemaking authority for Chapter 161; and

Section 2009.051 of the Texas Government Code, which allows state agencies subject to Chapter 2001 of the Code to develop ADR procedures by rule.

The codes affected by the adopted amendments are Chapter 161 of the Texas Natural Resources Code and Chapter 2009 of the Texas Government 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.

The Texas Veterans Land Board ("Board") adopts the amendments to Texas Administrative Code, Title 40, Part 5, Chapter 176, Sections - §§176.1, 176.3 - 176.7, and 176.9, and the repeals of §§176.2, 176.8, 176.10, and 176.11. The amended and repealed rules are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3230). The amended and repealed rules will not be republished.

The Board identified the need for the amendments and repeals during its review of this chapter's rules, conducted pursuant to Section 2001.039 of the Texas Government Code. At its May 13, 2025 meeting, the Board unanimously approved the adoption of these amendments and repeals.

The adopted rule amendments to §176.1 remove definitions for the Board and "chairman," as these terms are already defined in the Chapter 161 of the Texas Natural Resources Code, i.e., the Board's enabling statute; remove a definition for "bona fide resident" to facilitate access for out-of-state veterans to Veterans Homes so that they might be closer to in-state relatives; remove a definition for the non-existent Texas Department of Aging and Disability Services; and changes a definition for "surviving spouse" to align with its federal definition pertaining to the U.S. Department of Veterans Affairs. In addition, the adopted amendments revise the definition of State Veterans Home to i) align with that in Section 164.002 of the Code, ii) incorporate licensure requirements in §176.8 to allow for that rule's repeal, and iii) to incorporate the State Veterans Homes Program requirements.

The adopted rule amendments to §176.5 update a reference to the Texas Department of Health and Human Services and add language to account for any State or federal agency that may require access to a Veterans Home's records and related documentation for auditing or review purposes and add language on certification and licensure requirements to account for any future Veterans Homes dedicated exclusively to Alzheimer's/dementia care.

The adopted rule amendments to §176.7 revise the admissions requirements to State Veterans Homes by removing a section outlining requirements that pertain to eligibility for per diem payments under 38 C.F.R. §51.50 - not requirements - and remove unnecessary language provided for in 38 C.F.R. § 51.120. The adopted amendments further remove requirements that spouses and surviving spouses are bona fide residents to align with the removal of the term, as addressed above. In addition they change the requirements for parent eligibility to reflect current Gold Star qualifications

The repeal of §176.2 is adopted because its provisions are provided for in Section 164.004 and 164.005 of the Code.

The repeal of §176.8 is adopted because its provisions are unnecessary. Chapter 164 of the Code and related federal regulations for the construction and acquisition of SVHs under 38 C.F.R. Part 59 indicate any would-be State Veterans Homes would be newly constructed or located in an existing structure. Also, that State Veterans Homes must adhere to any applicable laws, regulations, and requirements is evident. In addition, the Board's authority to adopt requirements related to State Veterans Homes is provided for in Section 164.005 of the Code. As stated above, provisions related to licensure requirements are relocated to the definition of State Veterans Home in §176.001.

The repeal of §176.10 is adopted because its provision is unnecessary: the Board sets its rules; it is the final authority on their interpretation and application.

The repeal of §176.11 is adopted because its provisions are obsolete. They were proposed in 1997 as a framework for procedures for awarding contracts related to SVHs. Current procurement and contracting laws in the Texas Government Code- to include, but not limited to those in Chapters 2155, 2156, and 2269- more adequately provide for these procedures; the Board follows these laws in its State Veterans Home-related procurements.

In addition, the title of this chapter is changed to "State Veterans Homes" to more accurately reflect its subject matter.

Also, throughout the chapter, references to the Board are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Code, citations are updated, and editorial and grammatical changes are made to improve the rules' readability.

The amendments are adopted pursuant to Section 164.004 of the Texas Natural Resources Code, which allows the Board to adopt rules concerning the construction, acquisition, ownership, operation, maintenance, enlargement, improvement, furnishing, and equipping of State Veterans Homes.

The code affected by the adopted amendments is Chapter 164 of the Texas Natural Resources 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.

The repeals are adopted pursuant to Section 164.004 of the Texas Natural Resources Code, which allows the Board to adopt rules concerning the construction, acquisition, ownership, operation, maintenance, enlargement, improvement, furnishing, and equipping of State Veterans Homes.

The code affected by the adopted repeals is Chapter 164 of the Texas Natural Resources 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.

The Texas Veterans Land Board ("Board") adopts the amendments to Texas Administrative Code, Title 40, Part 5, Chapter 177, §§177.1, 177.3 - 177.5, 177.7, 177.8, 177.10, 177.12 and 177.13, and the repeal of §177.14. The amended rules and repeal are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3234). The rules will not be republished.

The Board identified the need for the amendments and repeal during its review of this chapter's rules, conducted pursuant to Section 2001.039 of the Texas Government Code. At its May 13, 2025 meeting, the Board unanimously approved the adoption of these amendments and repeal.

The adopted rule amendments to §177.1 remove definitions for the Board, the veterans housing assistance fund, and the Veterans Housing Assistance Program ("Program") as these terms are already defined in Section 162.001 of the Texas Natural Resources Code, ("Code"); remove definitions for "bona fide resident" and "missing/missing in action" as the terms are not used in this chapter; and update the definition for "VA guaranty" to reflect the current entity guaranteeing mortgage loans for the U.S. Department of Veterans Affairs.

The adopted rule amendments to §177.3 change a reference to the State to align with how it is referred to in those chapters of the Code pertaining directly to the Board, i.e., Chapters 161, 162, and 164, and update a reference to the Texas Constitution.

The adopted rule amendment to §177.4 updates a reference to the Texas State Auditor's Office.

The adopted rule amendments to §177.5 update references to 40 Texas Administrative Code §175.2 and change a reference to the Veterans Land Program to reflect its usage in Chapter 161 of the Code.

The adopted rule amendments to §177.8 update references to Section 1201.003 of the Texas Occupations Code and relocate a provision requiring the Board to set loan amounts for home improvement loans from §177.14.

The repeal of §177.14 is adopted because its provisions on home loans are accounted for in Section 162.011 of the Texas Natural Resources Code.

In addition, the title of the chapter is changed to "Veterans Housing Assistance Program and Veterans Home Improvement Program" to reflect the types of loans to which the chapter pertains.

Also, throughout this chapter, references to Chapter 162 of the Code are updated, references to the Board are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Code, and references to this chapter are changed from "title" to "chapter," as the former is generally used throughout the Texas Administrative Code. Furthermore, editorial changes are made throughout this chapter to correct grammar, remove superfluous or outdated language, and improve the rules' readability.

Section 162.003 of the Texas Natural Resources Code ("Code"), which requires the Board to adopt rules governing the administration of the veterans housing assistance fund and the Veterans' Housing Assistance Program, the creation of Program-related loans, the criteria for approving lending institutions, the use of insurance on these loans and homes financed under the Program, the verification of occupancy of such homes, and the terms and conditions of any contracts made with lending institutions related to such loans;

Section 162.011 of the Code, which allows the Board to determine the number of loans a veteran may receive through the Program;

Section 162.013 of the Code, which requires the Board to set interest rates for Program loans and to adopt rules regarding fees, charges, and interest rates charged by lending institutions on financing homes through the Program with money other than from the fund;

Section 162.016 of the Code, which allows the Board to create rules for the escalation of interest rates on loans and the acceleration of principal and interest on loans, or other appropriate remedies if a home secured by lien under the Program is transferred, leased, sold, or conveyed within three years of purchase; and

Section 162.017 of the Code requires the Board to adopt rules related to the foreclosure and resale of homes financed with a loan under the Program.

The Code affected by the adopted amendments is Chapter 162 of the Texas Natural Resources 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.

The repeal is adopted pursuant to Section 162.003 of the Texas Natural Resources Code, which requires the Board to adopt rules governing the administration of the veterans housing assistance fund and the Veterans' Housing Assistance Program ("Program"), the creation of Program-related loans, the criteria for approving lending institutions, the use of insurance on these loans and homes financed under the Program, the verification of occupancy of such homes, and the terms and conditions of any contracts made with lending institutions related to such loans.

The Code affected by the adopted repeal is Chapter 162 of the Texas Natural Resources 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.

The Texas Veterans Land Board ("Board") adopts the amendments to Texas Administrative Code, Title 40, Part 5, Chapter 178, §178.1., §178.5, and §178.6, and the repeals of §§178.2 - 178.4. The amended rules and repeals are adopted without change to the proposed text as published in the May 30, 2025, issue of the Texas Register (50 TexReg 3238). The amended rules and repeals will not be republished.

The adopted rule amendments to §178.1 remove a definition for the Board because it is already defined in Section 164.002 of the Texas Natural Resources Code (Code), revise a definition for Veterans Cemeteries to align with Section 164.002 of the Code and to incorporate the Veterans Cemetery Grants Program ("Program") requirements, remove definitions for Chairman of the Board and the Veterans Cemetery Committee because the terms are not used in this chapter, update citations to rules for the Program in Title 38, Chapter 39 of the Code of Federal Regulations outlining eligible relatives for interment related to the Program, and update the definition of veteran to include members of the Space Force, as provided for in 38 U.S.C. §101(2).

The adopted rule amendment to §178.6 limits those interred in Texas State Veterans Cemeteries ("TSVCs") for whom the Board will seek plot allowance reimbursements to those meeting United States Department of Veteran Affairs ("USDVA") eligibility requirements.

The repeal of §178.2 is adopted because it outlines the Board's authorities related to TSVCs provided for in Chapter 164 of the Code.

The repeal of §178.3 is adopted because its provisions are similar to Section 164.004 of the Texas Natural Resources Code ("Code").

The repeal of §178.4 is adopted because its provisions are unnecessary. Chapter 164 of the Code and related federal regulations for TSVCs under 38 C.F.R. Part 39 indicate that any would-be TSVCs must be newly constructed. Also, that TSVCs must adhere to any applicable laws, regulations, and requirements pertaining to their establishment, operations, and funding is evident.

In addition, throughout the chapter, references to the Board are made lower-case to align with their occurrences throughout Chapters 161, 162, and 164 of the Code and editorial and grammatical changes are made to improve the rules' readability.

The code affected by the proposed amendments is Chapter 164 of the Texas Natural Resources 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.

The code affected by the adopted repeals is Chapter 164 of the Texas Natural Resources 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.