PROPOSED RULES
Before an agency may permanently adopt a new or amended section or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before action is taken. The 30-day time period gives 
interested persons an opportunity to review and make oral or written comments on 
the section. Also, in the case of substantive action, a public hearing must be 
granted if requested by at least 25 persons, a governmental subdivision or 
agency, or an association having at least 25 members.
Symbology in proposed amendments. New language added to an existing section is 
indicated by the <nl> code. [Brackets] indicate deletion of existing material 
within a section.

TITLE 7. BANKING AND SECURITIES
PART II. Texas Department of Banking
CHAPTER 15. Corporate Activities
SUBCHAPTER A. Fees and Other Provisions of General Applicability 
7 TAC sec.15.1, sec.15.2
The Finance Commission of Texas (the commission) proposes amendments to sec.15.1 
and sec.15.2, concerning filing and investigation fees applicable to corporate 
applications filed with the Texas Department of Banking (the department).
Pursuant to Finance Code, sec.31.003(a)(4), the commission must recover the cost 
of maintaining and operating the department and the cost of law enforcement by 
imposing and collecting ratable and equitable fees for notices, applications, 
and examinations. Existing sec.15.2, a nonsubstantive recodification of now 
repealed sec.3.37, was originally adopted in 1993 to specify fees applicable to 
the corporate application process. The purpose of a fee charged by the 
department, whether the fee is for applications, annual assessments, 
examinations, recovery of costs, or other purposes, is to enable the department 
to be self-supporting. The predecessor to sec.15.2, and now sec.15.2 itself, 
followed this philosophy. This effort has been undertaken with respect to every 
industry regulated by the department with the objective of having each industry 
pay its proportionate share of the cost of regulation. Experience since 1993 and 
recent changes in similar fees charged to national banks has convinced the 
department that the fees in sec.15.2 need some adjustment. In addition, fees 
related to trust company applications and notices are proposed to be removed 
from sec.15.2 and replaced by a trust company-specific rule (sec.21.2), proposed 
in this issue of the Texas Register. In this connection, the definition of 
"eligible trust company" is proposed to be removed from sec.15.1.
Three fees are added or increased. A fee of $1,500 is added for an application 
for approval of a reverse stock split. A fee of $1,000 is added for an 
application for approval to sell substantially all assets. The fee for an 
application to relocate the home office of a recently acquired charter without 
significant business activities (i.e., relocation of a "naked" charter) will 
increase from $1,500 to $5,000. 
Several fees are proposed to be reduced, generally representing increased use of 
"expedited" applications. Applicants and applications that meet certain minimum 
qualifications can file for expedited treatment. These proposed fees are $2,500 
for a conversion (currently $5,000), $2,500 for a change of control if the 
applicant has previously been approved to control another state bank and no 
material changes in the applicant's circumstances have occurred since the prior 
approval (currently $5,000), $2,500 for a merger (currently $5,000), and $2,000 
for a purchase of assets and assumption of liabilities (currently $4,000). A 
reduced, expedited fee for charter applications will be proposed in 1998 in 
conjunction with a proposed amendment to sec.15.3 to permit expedited 
applications. Finally, bank charter and conversion applications currently bear a 
per hour charge for investigation and that charge is proposed to be replaced 
with a flat $5,000 fee. In many instances, the $5,000 fee will be less than the 
aggregate charge would be under the existing provision.
In two instances, charter and branch applications, the fee otherwise due is 
proposed to be waived entirely if the facility will be located in a low or 
moderate income area. The proposed amendment to sec.15.1 will add a definition 
of "low or moderate income area" for this purpose. 
Lynda A. Drake, Director of the Corporate Activities Division, Texas Department 
of Banking, has determined that for the first five-year period the section as 
proposed will be in effect, there will be no fiscal implications for state or 
local government as a result of enforcing or administering the section because 
the proposal is expected to be revenue neutral. 
Ms. Drake also has determined that for each year of the first five-year period 
the section as proposed will be in effect, the public benefit anticipated as a 
result of the amendment will be better matching of the actual cost of regulation 
with the service provided, for the purpose of achieving economic self-
sufficiency for application processing within the department. The proposal will 
merely rearrange sources of revenue and is not expected to increase or decrease 
the net revenue of the department from the banking industry. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the section as proposed.
Comments on the proposal may be submitted in writing to Everette D. Jobe, 
General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, 
Austin, Texas 78705-4294, or by e-mail to everette.jobe@banking.state.tx.us. The 
amendments are proposed pursuant to the Finance Code, sec.31.003(a)(4), which 
authorizes the commission to adopt rules to "recover the cost of maintaining and 
operating the department and the cost of enforcing this subtitle and Chapters 
11, 12, and 13 by imposing and collecting ratable and equitable fees for 
notices, applications, and examinations...." 
As required by the Finance Code, sec.31.003(b), the commission considered the 
need to promote a stable banking environment, provide the public with 
convenient, safe, and competitive banking services, preserve and promote the 
competitive parity of state banks with national banks and other depository 
institutions in this state consistent with the safety and soundness of state 
banks and the state bank system, and allow for economic development within this 
state. 
Finance Code, sec.sec.31.005, 32.003, 32.101, 32.103, 32.202, 32.203, 32.302, 
32.401, 32.405, 32.502, 33.002, 34.102, 34.103, 38.001, 38.004, 39.103, and 
39.203, and 7 TAC sec.sec.3.41, 3.44, 15.3, 15.41, 15.42, 15.81, 15.121, and 
15.122, are affected by the proposal. 

sec.15.1. Definitions. 
Words and terms used in this chapter that are defined in the Finance Code, Title 
3, Subtitle A, have the same meanings as defined in the Finance Code. The 
following words and terms, when used in this chapter, shall have the following 
meanings, unless the context clearly indicates otherwise.
Eligible bank -A state bank that: 
(A) is well capitalized as defined in 12 Code of Federal Regulations 
<nl>(CFR)<ol>, sec.325.103, or is operating in compliance with a capital plan 
approved in writing by the banking commissioner; 
(B)-(E) (No change.) 
[Eligible trust company --A Texas chartered trust company that:] 
[(A) possesses capital and surplus that equals or exceeds current minimum 
statutory or regulatory requirements;] 
[(B) received a composite rating of either 1 or 2 as defined by the Uniform 
Financial Institution Rating System at the most recent examination by the 
department or federal regulatory agencies;] 
[(C) is not presently operating in violation of a regulatory condition or 
commitment letter; and] 
[(D) is not presently operating under a memorandum of understanding, 
determination letter or other notice of determination, order to cease and 
desist, or other state or federal administrative enforcement order.] 
<nl>Low or moderate income area <ol><nl>--a designated geography for CRA 
purposes, as defined in 12 CFR, sec.228.12(l), (n)(1), and (n)(2), for state 
member banks, or 12 CFR, sec.345.12(l), (n)(1), and (n)(2), for state nonmember 
banks.<ol> 

sec.15.2. Filing Fees and Cost Deposits. 
(a) <nl>Types of fees. Subsection (b) of this section contains filing fees for 
specified applications and notices filed with the department, and subsection (c) 
of this section requires a fee for protesting an application. These fees are due 
at the time of filing the application or protest. Subsection (d) of this section 
requires an investigation fee to be paid in certain cases once an application 
has been accepted by the department for filing, and in other cases may require 
payment of investigative costs upon written request of the department. Pursuant 
to subsection (e) of this section, an applicant may seek waiver or reduction of 
required fees<ol> [Basis of Fees. The filing fees set forth in subsection (b) of 
this section are either set by statute or, when added to required investigative 
cost reimbursement under subsection (e) of this section, approximate the 
department's cost of processing the application, including any associated 
review, investigation and examination
(b) Filing <nl>fees<ol> [Fees]. Simultaneously with <nl>a submitted application 
or notice<ol> [any submitted filing], an applicant shall pay to the department: 
(1) $5,000 for an application for bank charter [or conversion] pursuant to [the] 
Finance Code, sec.32.003<nl>, provided that the department will not require a 
filing fee for an application for a bank charter to be located in a low or 
moderate income area and where no other depository institution operates a branch 
or home office<ol> [or sec.32.502
(2) <nl>$5,000 for an application for conversion to a state bank charter 
pursuant to Finance Code, sec.32.502, and sec.15.108 of this title (relating to 
Conversion of a Financial Institution into a State Bank), or $2,500 for an 
expedited application if permissible pursuant to sec.15.103 of this title 
(relating to Expedited Filing);<ol>
<nl>(3)<ol> [(2)] $4,000 for an application to authorize a merger <nl>or share 
exchange<ol>[, a similar business combination, or a purchase of assets] pursuant 
to [the] Finance Code, <nl>sec.32.302, and sec.15.104 of this title (relating to 
Application for Merger or Share Exchange), or $2,500 for an expedited 
application if permissible pursuant to sec.15.103 of this title<ol> [sec.32.301 
or sec.32.401
<nl>(4)<ol> [(3)] $2,500 for each request to authorize an additional merger if 
more than one affiliated merger is to occur simultaneously; 
<nl>(5)<ol> $4,000 for an application to authorize a purchase of assets pursuant 
to Finance Code, sec.32.401, and sec.15.105 of this title (relating to 
Application for Authority to Purchase Assets of Another Financial Institution), 
or $2,000 for an expedited application if permissible pursuant to sec.15.103 of 
this title; 
<nl>(6)<ol> $1,000 for an application to authorize the sale of substantially all 
assets pursuant to Finance Code, sec.32.405, and sec.15.106 of this title 
(relating to Application for Authority to Sell Assets); 
<nl>(7)<ol> [(4)] $1,500 for <nl>an<ol> [a standard] application to establish a 
branch office pursuant to [the] Finance Code, sec.32.203, and sec.15.42 of this 
title (relating to Establishment and Closing of a Branch Office)<nl>, or $500 
for an expedited application if permissible pursuant to sec.15.3 of this title, 
provided that the department will not require a filing fee for an application 
for a new branch office to be located in a low or moderate income area and where 
no other depository institution operates a branch or home office<ol>;
<nl>(8)<ol> [(5)] $1,500 for <nl>an<ol> [a standard] application to relocate a 
branch office pursuant to sec.15.42(k) of this title; 
<nl>(9)<ol> [(6)] $500 for a subsidiary notice letter pursuant to [the] Finance 
Code, sec.34.103, <nl> plus an amount up to an additional $3,500<ol> [unless 
paragraph (7) of this subsection applies;] 
[(7)] [$4,000 for a subsidiary notice letter pursuant to the Finance Code, 
sec.34.103,] if the banking commissioner notifies the applicant that additional 
information and analysis is required;
<nl>(10)<ol> [(8)] $5,000 for an application regarding acquisition of control 
pursuant to [the] Finance Code, sec.33.002, and sec.15.81 of this title 
(relating to Application for Acquisition or Change of Control of State 
Bank)<nl>, or $2,500 for an expedited application if the applicant has 
previously been approved to control another state bank and no material changes 
in the applicant's circumstances have occurred since the prior approval<ol>; 
<nl>(11)<ol> [(9)] $200 for a notice to change the home office to an existing 
branch office <nl>while retaining the existing home office as a branch 
office<ol> [with no abandonment of community] pursuant to [the] Finance Code, 
sec.32.202, and sec.15.41(a) of this title (relating to Written Notice or 
Application for Change of Home Office); 
<nl>(12)<ol> [(10)] $1,500 for an application to relocate the home office or a 
branch office pursuant to Finance Code, sec.32.202, and sec.15.41(b) of this 
title<nl>, provided that the fee is $5,000 for an application to relocate the 
home office of a to-be-acquired charter without significant business 
activities<ol>; 
<nl>(13)<ol> [(11)] $500 for an application to relocate the home office or a 
branch office a short distance of one mile or less with no abandonment of the 
community pursuant to Finance Code, sec.32.202, and sec.15.41(b) of this title; 
[(12) $500 for a filing for which an expedited application is permissible 
pursuant to sec.15.3 of this title (relating to Expedited Filing);] 
<nl>(14)<ol> [(13)] $3,000 for an application for a foreign bank agency license 
pursuant to [the] Finance Code, sec.39.103, and sec.3.41(a) of this title 
(relating to Applications, Notices, and Reports of a Foreign Bank Corporation); 
<nl>(15)<ol> [(14)] $500 for the statement of registration of a foreign bank 
representative office pursuant to [the] Finance Code, sec.39.203, and 
sec.3.44(b) of this title (relating to Statement of Registration, Notices and 
Filings by a Representative Office);
<nl>(16)<ol> [(15)] $200 for an application to amend a bank charter (articles of 
association) pursuant to [the] Finance Code, sec.32.101; 
<nl>(17)<ol> $1,500 for an application to authorize a reverse stock split 
subject to the substantive provisions of sec.15.122 of this title (relating to 
Amendment of Articles to Effect a Reverse Stock Split); 
<nl>(18)<ol> [(16)] $500 for filing a copy of an application pursuant to [the] 
Finance Code, sec.38.001, to acquire a bank or bank holding company; 
<nl>(19)<ol> [(17)] $500 for filing a copy of an application pursuant to [the] 
Finance Code, sec.38.004, to acquire a nonbank entity; 
<nl>(20)<ol> [(18)] $100 for a request for a "no objection" letter to use a name 
containing a term listed in [the] Finance Code, [sec.31.004 or] sec.31.005 [, by 
an entity other than a depository institution or trust company];
<nl>(21)<ol> [(19)] $500 for an application to authorize acquisition of treasury 
stock pursuant to [the] Finance Code, sec.34.102, and sec.15.121 of this title 
(relating to Acquisition and Retention of Shares as Treasury Stock); <nl>and<ol> 
<nl>(22)<ol> [(20)] $500 for a request to authorize an increase or reduction in 
capital and surplus pursuant to [the] Finance Code, sec.32.103 [; and] 
[(21) $500 for an application for trust company exemption as not doing business 
with the public]. 
(c) <nl>Filing fee for protest<ol> [Fee for Protest Filing]. A person or entity 
filing a protest to the application of another person or entity shall pay a fee 
of $2,500 simultaneously with such protest filing. The purpose of the fee 
required under this subsection is to partially offset the department's increased 
cost of processing and reduce the costs incurred by the applicant resulting 
solely from the protest.
(d) <nl>Investigative fees and costs. An applicant for a bank charter or 
conversion to a state bank or limited banking association shall pay an 
investigation fee of $5,000 once the application has been accepted for filing. 
If required by the banking commissioner, an applicant under another type of 
application or filing listed in subsection (b) of this section shall pay the 
reasonable investigative costs of the department incurred in any investigation, 
review, or examination considered appropriate by the department, calculated as 
provided by sec.3.36(h) of this title (relating to Annual Assessments and 
Specialty Examination Fees). Such investigation fee or costs must be paid by the 
applicant upon written request of the department. Failure to timely pay the 
investigation fee or a bill for investigative costs constitutes grounds for 
denial of the submitted or accepted filing.<ol>
<nl>(e)<ol> [(d)] <nl>Reduction or waiver of fees.<ol> Fees [Nonrefundable. All 
filing fees must be] paid [at the time of filing and] are nonrefundable 
<nl>and<ol> [. Except for fees established by statute,] the banking commissioner 
[in the exercise of discretion may reduce or waive any filing fee and] shall 
charge fees on a consistent and nondiscriminatory basis. <nl> However, in the 
exercise of discretion, the banking commissioner may reduce, waive, or refund 
all or part of a filing fee, investigation fee, or bill for investigative costs 
if the banking commissioner concludes that:<ol> 
<nl>(1)<ol> the application demonstrates that the fee creates an unreasonable 
hardship on the applicant; or 
<nl>(2)<ol> the nature of the application will result in substantially reduced 
processing time compared to normal expectations for an application of that type. 
[(e) Required Reimbursement of Investigative Costs. In addition to the filing 
fees set forth in subsection (b) of this section, an applicant for a bank or 
trust company charter or conversion to a state bank or limited banking 
association, or other application or submitted filing if required by the banking 
commissioner, shall pay reasonable costs incurred in the investigation, review, 
or examination considered appropriate by the department as provided by 
sec.3.36(h) of this title (relating to Annual Assessments and Specialty 
Examination Fees). Such costs must be paid by the applicant upon written request 
of the department. Failure to pay a bill for investigative costs in addition to 
the application fee constitutes grounds for denial of the submitted or accepted 
filing. The banking commissioner may in the exercise of discretion reduce or 
waive payment of any costs and shall charge costs on a consistent and 
nondiscriminatory basis.] 
(f) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9716985
Everette D. Jobe
General Counsel
Texas Department of Banking
Proposed date of adoption: February 20, 1998
For further information, please call: (512) 475-1300

TITLE 22. EXAMINING BOARDS
PART VI. Texas Board of Professional Engineers
CHAPTER 131. Practice and Procedure
Bylaws and Definitions
22 TAC sec.sec.131.1-131.3, 131.7-131.10, 131.12, 131.14, 131.15, 131.17-131.19 
The Texas Board of Professional Engineers proposes amendments to sec.sec.131.1-
131.3, 131.7-131.10, 131.12, 131.14, 131.15, and 131.17-131.19, concerning 
bylaws and definitions. 
The amendments will provide consistency with the provisions of Senate Bill 623 
and clarify the board's bylaws and definitions. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the sections are in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be consistency with Senate Bill 623 and clarity in the board's 
bylaws and definitions. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.sec.2, 7, and 8 is affected by these proposed amendments. 

sec.131.1. Headquarters of the Board. 
<nl>The<ol> [This board being constituted under the provisions of Senate Bill 
74, 45th Legislature, shall be known as the] Texas [State] Board of 
[Registration for] Professional Engineers <nl> (board) <ol> [and shall, 
hereinafter, be referred to as the board. The headquarters of the board] shall 
be <nl>headquartered<ol> in Austin. 

sec.131.2. Organization of the Board.
(a) The board shall elect from its own membership a chairman, vice chairman, and 
secretary [(Texas Civil Statutes, Article 3271a, 7a)]. <nl>These<ol> [The] 
officers shall <nl>serve from September 1 through August 31 and shall<ol> be 
elected <nl>annually<ol> at the [regular July] board meeting <nl>immediately 
prior to<ol> [each year, and they shall take office the following] September
1.
(b) The board as a whole may act as <nl>an<ol> [the] executive committee. 
(c) (No change.) 

sec.131.3. Chairman of the Board. 
The chairman shall be the executive officer of the board. When present, the 
chairman shall preside at all meetings. The chairman shall appoint such 
committees <nl>required by rule and may appoint any additional committees as 
needed. The chairman shall<ol> [as the board may authorize and] perform all 
other duties usually pertaining to the office of chairman and permitted by 
law<nl>,<ol>[.] and shall have the authority to delegate any of those duties 
[The duties of the chairman set out in the Act, 9, may be delegated] to the 
executive director. <nl>The chairman shall have the authority to review the 
performance of the executive director and initiate alterations in the executive 
director's job requirements or employment status. The chairman shall select and 
determine the agenda for meetings of the full board and may delegate that 
authority to the executive director.<ol> 

sec.131.7. Vacancies in the Board. 
If for any reason a vacancy shall occur in the board, the chairman shall 
<nl>prepare<ol> [call a special meeting for the purpose of preparing] a notice 
to the governor asking for the appointment of a new member to fill the unexpired 
term. If the vacancy shall occur in the office of the chairman, the vice 
chairman shall <nl>serve as the board chairman until such time as<ol> [call the 
meeting. In such case,] the board shall elect from its own membership a new 
chairman [to serve for the balance of the unexpired term as chairman]. 

sec.131.8. All Meetings Open to the Public. 
<nl>All<ol> [Regular board meetings, called special board meetings, committee 
meetings, and other] official meetings of the board <nl> and its standing 
committees<ol> shall be <nl>held<ol> [open to the public and notice shall be 
provided] in accordance with the Texas Open Meetings Act (Texas Civil Statutes, 
Article 6252-17).

sec.131.9. Regular Board Meetings. 
Regular board meetings shall be held <nl>at least four times per fiscal year 
(September 1 - August 31) <ol> [each calendar quarter] at <nl> any<ol> [such 
designated] place, date, and time [as may be] determined by the board. The 
meetings will normally be held in <nl> November, February, June, and August.<ol> 
[the months of January, April, July, and October, but may be held later in the 
quarter at the discretion of the board.] Five members of the board shall 
constitute a quorum. [In addition to the notice required by the Texas Open 
Meetings Act, the executive director shall notify the board members of the date, 
time and place of the meeting not less than 72 hours in advance of the meeting.] 

sec.131.10. Special Board Meetings. 
Special meetings may be called at any time by order of the chairman, or shall be 
called on the written request of any other three members of the board. [In 
addition to the notice required by the Texas Open Meetings Act, the executive 
director shall notify the board members of the date, time and place of the 
meeting not less than 72 hours in advance of the time of the meeting, provided, 
however, that such meetings may be held on shorter notice whenever telephonic 
consent is obtained from at least five members of the board.] 

sec.131.12. Order of Business.
(a) <nl>Meetings of the board should include but are not limited to the 
following items of business<ol> [The order of business at all regular and 
special meetings of the board will, when practicable, be as follows]: 
(1)-(4) (No change.) 
(5) <nl>reports and recommendations from committees <ol> [personal appearances]; 
(6) communications <nl>and public comment<ol>; 
(7) <nl>personal interviews and examination of applications <ol> [old business]; 
(8) <nl>old<ol> [new] business; 
(9) <nl>new business<ol> [examination of applications
(10) <nl>issues from board members for future meetings; <ol> [adjournment.] 
(11) adjournment. 
(b) The <nl>chairman or executive director of the<ol> board <nl> may<ol> 
[reserves the right to] delete and/or rearrange the order of business [specified 
in subsection (a) of this section] where required by law or [deemed by the 
board] to be more efficient in the conduct of [its] business. 
(c) The executive director shall prepare <nl>a meeting<ol> [an advance] agenda 
<nl>and distribute it<ol> [to be submitted] to each board member prior to 
<nl>the<ol> [each regular board] meeting<nl>.<ol> [outlining matters to be 
considered by the board. Additional matter that may arise prior to the meeting, 
together with additions requested by board members, will constitute the final 
agenda. Even though members of ] The public may attend board meetings in 
accordance with the Texas Open Meetings Act, <nl>but shall limit any comments 
and involvement permitted by the chairman to<ol> [it does not entitle members of 
the public to discuss] subjects on the agenda <nl>or to agenda items designated 
for general public comment. Time and topical limits may be imposed upon 
individuals by the chairman or executive director. <ol> 

sec.131.14. Seal of the Board. 
The seal of the board shall be an embossed circular seal [2 1/4 inches in 
diameter,] consisting of two concentric circles. The <nl> diameter of the<ol> 
inner circle shall be <nl>approximately 60% of the size of<ol> [1 3/8 inches in 
diameter and shall be] the outer circle <nl>which shall be<ol> [of] the official 
seal of the State of Texas. The area between the two circles shall contain the 
wording <nl> "Texas<ol> [State] Board of [Registration for] Professional 
Engineers." The executive director shall be the custodian of the seal. <nl> The 
seal may be reproduced in other sizes provided the dimensions remain 
proportionate. <ol> 

sec.131.15. Executive Director. 
The executive director shall be employed by the board to be the administrator of 
the board office. <nl>The executive director shall be a licensed professional 
engineer, and shall faithfully execute all directives of the Texas Board of 
Professional Engineers that are within the scope of the board's legal authority. 
The executive director shall have sole authority to employ a staff within the 
budget authorized; perform all supervisory functions including employee 
evaluations, promotions, disciplinary actions and terminations; and develop and 
implement all agency policies and procedures concerning the operation of the 
agency office. The executive director shall be evaluated by the chairman as 
needed. The executive director serves at the pleasure of the board and 
employment may be terminated at any time by a negative vote of confidence from a 
simple majority of the full board.<ol> 

sec.131.17. National Council. 
The board <nl>shall<ol> [may] affiliate with the National Council of Examiners 
for Engineering and Surveying. <nl>Each board member shall become a member of 
the council and the<ol> [The] executive director <nl>and other staff members 
designated by the board shall<ol> [may] be <nl>associate members of<ol> [ex 
officio the delegate of the board to] the council. 

sec.131.18. Definitions. 
In applying the Texas Engineering Practice Act and the board rules, the 
following definitions shall prevail unless the word or phrase is defined in the 
text for a particular usage. <nl>Singular<ol> [The singular shall be construed 
to include the plural and vice versa,] and [the] masculine <nl>terms<ol> shall 
be construed to include <nl> plural and<ol> [the] feminine <nl>terms<ol> [or 
neuter ] and vice versa. 
<nl>(1)<ol> Act-The Texas Engineering Practice Act. 
<nl>(2)<ol> Administrative Act-The Administrative Procedure [and Texas Register] 
Act. 
<nl>(3)<ol> Agency or Board-[The] Texas [State] Board of [Registration for] 
Professional Engineers.
<nl>(4)<ol> Applicant-A person making application for <nl> an engineering 
license<ol> [registration]. 
<nl>(5)<ol> Application-The [process of submitting the necessary] forms, 
information, and fees <nl>necessary<ol> to obtain <nl>a license<ol> 
[registration] as a professional engineer [or engineer-in-training (EIT) 
certification in accordance with the provisions of the Act, the board rules of 
practice and procedure, and by law].
<nl>(6)<ol> Certificate of registration- <nl>An earlier term replaced by the 
term "license"; the term is still valid and may be used interchangeably with 
"license" when necessary. Also a<ol> [A] document <nl>previously<ol> issued by 
the board for the State of Texas granting the holder the right to be licensed to 
practice engineering in Texas by paying the annual license renewal fee 
prescribed by the Act. 
<nl>(7)<ol> Complainant-Any party who has filed a complaint with the board 
against any party subject to the jurisdiction of the board.
<nl>(8)<ol> Contested case-A proceeding, including but not restricted to 
ratemaking and licensing, in which the legal rights, duties, or privileges of a 
party are to be determined by an agency after an opportunity for adjudicative 
hearing. 
<nl>(9)<ol> Direct supervision-<nl>Critical<ol> [The responsibility for the 
critical] watching, <nl>evaluating, <ol> and directing of engineering activities 
with the authority to review, enforce, and control compliance with all 
engineering design criteria, specifications, and procedures as the work 
progresses. <nl>Direct supervision will consist of an acceptable combination of: 
exertion of significant control over the engineering work, regular personal 
presence, reasonable geographic proximity to the location of the performance of 
the work, and an acceptable employment relationship with the supervised persons. 
Engineers providing direct supervision of engineering under the Texas 
Engineering Practice Act, 18(b), shall be personally present during such work. 
<ol> 
<nl>(10)<ol> Engineering-The profession in which a knowledge of the 
mathematical, <nl>physical, engineering,<ol> and natural sciences gained by 
<nl>education<ol> [study], experience, and practice is applied with judgment to 
develop ways to utilize, economically, the materials and forces of nature for 
the benefit of mankind. [Examiner or hearing officer-Any person appointed by the 
executive director or the board to conduct hearings on matters within the 
board's jurisdiction.] 
<nl>(11)<ol> Gross negligence- <nl>Any willful or knowing conduct, or pattern of 
conduct, which includes but is not limited to conduct that demonstrates a 
disregard or indifference to the rights, health, safety, welfare, and property 
of the public or clients. Gross negligence may result in financial loss, injury 
or damage to life or property, but such results need not occur for the 
establishment of such conduct.<ol> [An act or course of action which 
demonstrates a conscious disregard or indifference to the rights, safety, or 
welfare of others and which does or could result in financial loss or in injury 
or damage to life and property.] 
<nl>(12)<ol> <nl>Incompetence<ol> [Incompetency]- <nl>An act or omission of 
malpractice which may include but is not limited to recklessness or excessive 
errors, omissions or failures in the license holder's record of professional 
practice; or an act or omission in connection with a disability which includes 
but is not limited to mental or physical disability or addiction to alcohol or 
drugs as to endanger health, safety and interest of the public by impairing 
skill and care in the provision of professional services.<ol> [A general lack of 
present ability to perform a given duty, or a deficiency of disposition to use 
one's ability or experience properly.] 
<nl>(13)<ol> Intervenor-Any party otherwise not defined.
<nl>(14)<ol> License-<nl>The legal authority granting <ol> [That part of a 
certificate of registration which allows] the holder to actively practice 
engineering upon the payment of the annual renewal fee. <nl>Also, a certificate 
issued by the board showing such authority. <ol> 
<nl>(15)<ol> <nl>License Holder<ol> [Licensee] - Any [registrant] person whose 
license to practice engineering is current [and in force and has not been 
suspended by disciplinary action of the board]. 
<nl>(16)<ol> Licensure - The granting of an original certificate and license to 
an individual. 
<nl>(17)<ol> Misconduct-The [willful] violation of any provision of the Texas 
Engineering Practice Act and board rules. A conviction of a felony or 
misdemeanor that falls under the provisions of Texas Civil Statutes, Article 
6252-13c and Article 6252-13d, will also be misconduct under the Texas 
Engineering Practice Act. 
<nl>(18)<ol> Party-Each person or agency named or admitted as a party to a 
proceeding under the Administrative Procedure [and Texas Register] Act. 
<nl>(19)<ol> Person-Any individual, <nl>firm,<ol> partnership, corporation, 
association, governmental subdivision, or public or private organization of any 
character other than an agency. 
<nl>(20)<ol> Petitioner-Any party requesting the adoption of a rule by the 
board. 
<nl>(21)<ol> Pleading-Written allegations filed by parties concerning their 
respective claims. 
<nl>(22)<ol> Professional engineering--Professional service which may include 
consultation, investigation, evaluation, planning, designing, or direct 
supervision of construction, in connection with any public or private utilities, 
structures, buildings, machines, equipment, processes, works, or projects 
wherein the public welfare, or the safeguarding of life, health, and property is 
concerned or involved, when such professional service requires the application 
of engineering principles and the interpretation of engineering data. 
<nl>(23)<ol> Professional engineering services-Services which must be performed 
by or under the direct supervision of a <nl>licensed <ol> [registered] engineer 
and which<nl> meet the definition of the practice of engineering as defined in 
the Texas Engineering Practice Act, 2. A service shall be conclusively 
considered a professional engineering service if it is delineated in that 
section; other services requiring a professional engineer by contract, or 
services where the adequate performance of that service requires an engineering 
education, training, or experience in the application of special knowledge or 
judgment of the mathematical, physical or engineering sciences to that service 
shall also be conclusively considered a professional engineering service. <ol> 
[require the application of engineering principles, or the interpretation of 
engineering data. These engineering services may be in connection with any 
public or private utilities, structures, buildings, machines, equipment, 
processes, works or projects including: consultation; planning; designing; 
construction; alteration or repair of real property; or other engineering or 
incidental services which engineering professionals (and individuals in their 
employ) may logically or justifiably perform, such as studies, investigations, 
mapping, testing, evaluations, program management, conceptual designs, plans and 
specifications, value engineering, soils engineering, drawing reviews, 
preparation of operating and maintenance manuals, and other related services.] 
<nl>(24)<ol> Protestant-Any party opposing an application or petition filed with 
the board. [Registrant-Any individual holding a certificate of registration 
issued by the board that has not been revoked or expired for two or more years. 
Such registrant will be subject to the administrative and disciplinary powers of 
the board whether or not the license to practice is current.] 
<nl>(25)<ol> Registration- <nl>An earlier term replaced by the term "licensing" 
or "licensure"; the term is still valid and may be used interchangeably with 
"licensing" or "licensure" when necessary. <ol> [The granting of an original 
certificate and license by an agency to an individual.] [Reregistration-The 
subsequent licensing by an agency of a former registrant whose expired 
certificate was not renewable by operation of law.] 
<nl>(26)<ol> Resident- An individual physically residing at a Texas address. 
<nl>(27)<ol> Respondent-Any party against whom any complaint has been filed with 
the board.
<nl>(28)<ol> Responsible charge- <nl>An earlier term synonymous with the term 
"direct supervision"; the term is still valid and may be used interchangeably 
with "direct supervision" when necessary. <ol> [The direction of engineering 
work by an engineer to the extent that successful completion of the work is 
dependent on the decisions made by the engineer without advice or approval by 
others.] 
<nl>(29)<ol> Responsible supervision- <nl>An earlier term synonymous with the 
term "direct supervision"; the term is still valid and may be used 
interchangeably with "direct supervision" when necessary. <ol> [The supervision 
of another person's work by a professional engineer to the extent that the 
engineer assumes the professional responsibility for the work.] 
[Rule-Any agency statement of general applicability that implements, interprets, 
or prescribes law or policy, or describes the procedure or practice requirements 
of an agency. The term includes the amendment or repeal of a prior rule but does 
not include statements concerning only the internal management or organization 
of any agency and not affecting private rights or procedures.] 

sec.131.19. Requests for Information. 
<nl>The executive director shall be the official custodian of all board records 
and shall process and respond to all requests for information in the manner 
prescribed by law. <ol> [Any written reports, statistics, or other information 
requested by the board as a whole or any member thereof shall be made available 
to all members of the board. A copy of any written request and a summary of the 
results there of shall be made a part of the minutes of the appropriate board 
meeting. ] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717190
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Application for License
22 TAC sec.sec.131.52-131.55
The Texas Board of Professional Engineers proposes amendments to sec.sec.131.52-
131.55, concerning application for license. 
The amendments will clarify the subdisciplines within electrical engineering and 
also the requirements for submission of an application for a license. John R. 
Speed, P.E., executive director, Texas Board of Professional Engineers, has 
determined that for the first five-year period the sections are in effect there 
will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be clarity of the subdisciplines within electrical engineering 
and the requirements for submission of an application for a license. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
Texas Civil Statutes, Article 3271a, sec.12 and sec.13 is affected by these 
proposed amendments. 

sec.131.52. Applications for a Professional Engineer License. 
(a)-(f) (No change.) 
(g) Applicants shall indicate a primary branch of engineering under which 
experience has been gained. Applicants seeking permission to take the Principles 
and Practice of Engineering examination shall indicate a primary branch for 
which there is an available National Council of Examiners for Engineering and 
Surveying (NCEES) examination. The available branches and their corresponding 
alphabetical code are: 
(1)-(4) (No change.) 
(5) (E) electrical, <nl>electronic, computer, communications; <ol> 
(6)-(15) (No change.) 
(h)-(i) (No change.) 

sec.131.53. Applications - General.
(a)-(c) (No change.) 
<nl>(d)<ol> Any transcripts, reference statements, evaluations, experience 
records or other similar materials submitted to the board in previous 
applications may be included in a current application provided the applicant 
requests its use in writing at the time the application is filed and the 
executive director authorizes its use. 
<nl>(e)<ol> [(d)] Upon completion of all processes, including passage or waiver 
of examinations, applicants whose applications have been approved shall be 
issued a license and applicants whose applications have been non-approved shall 
be denied a license. 

sec.131.54. Applications from Former Texas License Holders. 
(a)-(b) (No change.) 
(c) <nl>Any transcripts, reference statements, evaluations, experience records 
or other similar materials submitted to the board in previous applications may 
be included in a current application provided the applicant requests its use in 
writing at the time the application is filed and the executive director 
authorizes its use. <ol> [The board may waive the submission of materials 
required in 131.52 of this title (relating to Applications for a Professional 
Engineer License) provided those materials are already available in the board 
records. Applicants must submit a written waiver request to the executive 
director. The board shall process the application and issue a new license and 
serial number if the application is approved.] 
(d) (No change.) 

sec.131.55. Certification of Qualifications. 
The National Council of Examiners for Engineering and Surveying <nl> 
certifications may be<ol> [certification shall not] accepted <nl> as 
verification of an original transcript from a U.S. school, or to verify licenses 
held, or to verify examinations taken. Other uses of the certification may be 
granted by the executive director on a case-by-case basis<ol> [in lieu of the 
board's application and other required information].
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717189
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

References
22 TAC sec.131.71
The Texas Board of Professional Engineers proposes an amendment to sec.131.71, 
concerning references. 
The amendment will provide the stipulation that engineers serving as references 
cannot be compensated. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the section is in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the stipulation that engineers serving as references cannot be 
compensated. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendment is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.13 is affected by the proposed amendment. 

sec.131.71. References.
(a) (No change.) 
(b) Applicants for a license shall provide at least five references to the 
board, unless more references are required to meet the requirements of 
sec.131.81(a)(3) of this title (relating to Experience Evaluation) or 
sec.131.101(g) of this title (relating to Engineering Examinations Required for 
a License to Practice as a Professional Engineer). At least three of these 
references shall be currently licensed professional engineers who have personal 
knowledge of the applicant's engineering experience. References on file with the 
board from previous applications may be used with the approval of the executive 
director. Professional engineers who have not worked with an applicant may 
review and judge the applicant's experience and may serve as a licensed engineer 
reference; such review shall be noted on the reference statement. <nl> 
Professional engineers serving as references shall not be compensated. <ol>
(c)-(e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717188
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Engineering Experience
22 TAC sec.131.81
The Texas Board of Professional Engineers proposes an amendment to sec.131.81, 
concerning engineering experience. 
The amendment will provide clarification of the documents that must be submitted 
for applicants requesting a waiver from one or both examinations. John R. Speed, 
P.E., executive director, Texas Board of Professional Engineers, has determined 
that for the first five-year period the section is in effect there will no 
effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the clarification of documents that must submitted for 
applicants requesting a waiver from one or both examinations. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendment is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineerswith the authority to 
promulgate rules in accordance with Senate Bill 623. 
Texas Civil Statutes, Article 3271a, sec.12 and sec.13 is affected by the 
proposed amendment. 

sec.131.81. Experience Evaluation. 
(a) Applicants shall submit a supplementary experience record to the board as a 
part of the application. The supplementary experience record is a written 
narrative documenting all of the applicant's engineering experience acquired 
after completion of the first degree used to meet the requirements of sec.131.91 
of this title (relating to Educational Requirements for Applicants).
(1)-(2) (No change.) 
(3) References must be provided to verify enough of the supplementary experience 
record to cover at least the minimum amount of time needed by the applicant for 
issuance of a license. Applicants applying under the Texas Engineering Practice 
Act (Act), sec.12(a)(1) shall provide references for at least four years of 
engineering experience; applicants applying under the Act, sec.12(a)(2) shall 
provide references for at least eight years of engineering experience. 
Applicants seeking a waiver from <nl>the Fundamentals of Engineering examination 
or the Principles and Practice of Engineering<ol> [any] examination requirement 
shall provide <nl>supplementary experience records and<ol> references for an 
additional eight years <nl> of experience<ol> beyond that listed in this 
subsection <nl>and shall conform to sec.131.71(b) of this title (relating to 
References) and sec.131.101(g) of this title (relating to Engineering 
Examinations Required for a License to Practice as a Professional Engineer). 
<ol> 
(4) (No change.) 
(b)-(c) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717187
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Education
22 TAC sec.131.91
The Texas Board of Professional Engineers proposes an amendment to sec.131.91, 
concerning education.
The amendment will provide clarification of the educational requirements 
necessary for licensure. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the section is in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be clarification of the educational requirements necessary for 
licensure. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendment is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
Texas Civil Statutes, Article 3271a, sec.12(a)(1) and (2) is affected by the 
proposed amendment. 

sec.131.91. Educational Requirements for Applicants.
Applicants for a license shall have earned one of the following degrees or 
degree combinations listed in this section: 
(1) Accredited degrees, under the Texas Engineering Practice Act (the Act), 
sec.12(a)(1), as described in subparagraphs (A) and (B) of this paragraph: 
(A) (No change.) 
(B) a bachelor's degree in one of the mathematical, physical, or engineering 
sciences, plus a graduate degree in engineering, provided that:
(i) the graduate degree is obtained from a college having an EAC/ABET accredited 
bachelor's degree in the same discipline; <nl>and <ol> [or] 
(ii) (No change.) 
(2) (No change.) 
(3) Other degree programs submitted to the board by the conferring institutions 
and approved by the board as meeting the requirements of paragraphs (1) or (2) 
of this section.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717186
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Examinations
22 TAC sec.sec.131.101-131.104
The Texas Board of Professional Engineers proposes amendments to 
sec.sec.131.101-131.104, concerning examinations. 
The amendments will provide clarification of the examination waiver requirements 
for applicants with Ph.D. degrees, clear and concise guidelines pertaining to 
examinations for record purposes, and the eligibility requirements for 
certification as an engineer-in-training. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the sections are in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be clarification of the examination waiver requirements for 
applicants with Ph.D. degrees, clear and concise guidelines pertaining to 
examinations for record purposes, and the eligibility requirements for 
certification as an engineer-in-training. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.12 and sec.12.1 is affected by these proposed amendments. 

sec.131.101. Engineering Examinations Required for a License to Practice as a 
Professional Engineer. 
(a)-(e) (No change.) 
(f) It is the intent of the board to utilize the examination as an integral part 
of the licensing process; all applicants are expected to have passed the 
examinations or to offer sufficient evidence of their qualifications in the 
absence of passage of the examinations. The board may waive one or both of the 
experience and knowledge examinations for applicants who do not pose a threat to 
the public health, safety, or welfare; request a waiver in writing <nl>at the 
time the application is filed;<ol> and meet one of the following requirements 
listed in paragraphs (1)-(3) of this subsection: 
(1)-(2) (No change.) 
(3) persons who have: 
(A) a Ph.D. degree in engineering from a recognized college or university that 
offers an EAC/ABET-approved undergraduate or master's degree program in a 
related branch of engineering <nl>or a Ph.D. degree in engineering or other 
related field of science or mathematics that is individually assessed and 
approved by the board during the evaluation process<ol>; and 
(B) <nl>taught in an EAC/ABET program for at least six years, or have at least 
six years of experience consisting of an acceptable combination of other 
creditable engineering experience or EAC/ABET teaching experience. <ol> [applied 
under the Act, 12(a)(1); and] 
[(C) taught in an EAC/ABET program for at least six years.] 
(g)-(i) (No change.) 

sec.131.102. Examination for Record Purposes. 
<nl>The board may administer examinations for record purposes. The Principles 
and Practice of Engineering examination may not be taken for record purposes 
unless an individual is licensed as a professional engineer or has been given 
permission by the board to take the examination. <ol> 
[(a) The board may administer examinations for record purposes as a convenience 
to the public. The examinations will only be administered when, in the opinion 
of the board, sufficient funds, adequate space, and suitable proctors are 
available. 
[(b) Examination sites, persons eligible to take the examinations, and any other 
criteria under which the examinations will be given will be determined for each 
examination date and may vary from one examination date to another. 
[(c) The board will determine the conditions for giving each examination as soon 
as the available funds, examination sites, and acceptable proctors are 
available. In event the requirements in this section cannot be established 120 
days prior to the examination date, the examination will not be given. 
[(d) The Principles and Practice of Engineering examination may not be taken for 
record purposes unless an individual is registered as a professional engineer or 
has been given permission by the board to take the examination for registration 
purposes.] 

sec.131.103. Engineer-in-Training. 
Individuals who <nl>meet the requirements of the Texas Engineering Practice Act, 
12.1, including successful passage of<ol> [have an EAC/ABET-accredited 
engineering degree or a four-year degree in engineering or engineer-related 
science approved by the board and have successfully passed] the Fundamentals of 
Engineering examination are eligible to apply for engineer-in-training 
certification. 

sec.131.104. Engineer-in-Training Certificates. 
A certificate as an engineer-in-training expires eight years from the date 
<nl>of issuance<ol> [appearing thereon]. This certification does not entitle an 
individual to practice as a professional engineer. The fee for engineer-in-
training certification will be established by the board. To become enrolled as 
an engineer-in-training, a certificate may be issued to an eligible individual 
who <nl>requests<ol> [is eligible, as described in 131.103 of this title 
(relating to Engineer-in-Training), shall apply to the board for] the 
certificate and <nl>pays<ol> [pay] the established fee. Although the certificate 
has an expiration date, the records of the board will indicate that an 
individual has passed the Fundamentals of Engineering examination and these 
records will be maintained in the file indefinitely and will be made available 
as requested by the individual or another licensing jurisdiction. The 
certificate may be renewed [one time at the request of the individual provided 
the request is accompanied by an explanation for the reason of the renewal and 
such request is approved by the board]. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 22, 1997.
TRD-9717185
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Board Review of Application
22 TAC sec.131.113
The Texas Board of Professional Engineers proposes an amendment to sec.131.113, 
concerning board review of application. 
The amendment will provide clarification of the conditions under which the board 
will not reconsider applications for licensure. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the section is in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be clarification of the conditions under which the board will not 
reconsider applications for licensure. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendment is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.12(a)(1) and (2) is affected by the proposed amendment.

sec.131.113.Reconsideration of Non-Approved Applications or Examination Waivers.
(a) Reconsideration is not available to persons whose application is non-
approved because of the failure to pass the Principles and Practice of 
Engineering examination, <nl>the failure to possess an acceptable education, the 
failure to claim the required creditable experience, or the failure of the 
applicant who is not licensed in another jurisdiction to establish Texas 
residency. <ol> 
(b)-(c) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717184
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Licensing
22 TAC sec.131.131
The Texas Board of Professional Engineers proposes an amendment to sec.131.131, 
concerning licensing. 
The amendment will provide consistency with the terminology contained in Senate 
Bill 623 and will clarify language pertaining to regular and temporary licenses. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the section is in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be consistency with the terminology contained in Senate Bill 623 
and clarification in the language pertaining to regular and temporary licenses. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendment is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.15 is affected by the proposed amendment.

sec.131.131.Regular and Temporary Licenses.
<nl>Unless requested by the applicant or license holder, all<ol> [All] licenses 
issued by the board shall be considered regular licenses. <nl>Regular 
licenses<ol> [and] are fully renewable annually until such time as the board 
takes specific action to prevent [such, a] <nl>renewal or <ol> provision of the 
Texas Engineering Practice Act prevents <nl>renewal. If<ol> [such, or] the 
license holder requests that the license be temporary[. When the license holder 
so requests], the holder's regular license shall be converted to temporary 
status and may only be renewed twice. A temporary license holder shall be 
subject to all other rules and legal requirements to which a holder of a regular 
license is subject. The executive director shall [also] be authorized to convert 
a regular license to a temporary license at the time the regular license is 
issued provided a request for such has been received. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717183
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Registration
22 TAC sec.sec.131.134-131.136
The Texas Board of Professional Engineers proposes amendments to 
sec.sec.131.134-131.136, concerning registration. 
The amendments will provide consistency with the terminology contained in Senate 
Bill 623 and will clarify language pertaining to regular and temporary licenses. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the sections are in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be consistency with the terminology contained in Senate Bill 
623 and clarification in the language pertaining to regular and temporary 
licenses. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.15 is affected by the proposed amendments. 

sec.131.134.Expirations and Renewals.
The [certificate of registration is a] license to practice engineering under the 
provisions of the Texas Engineering Practice Act (the Act) [and] must be renewed 
by the <nl>license holder<ol> [registrant] annually; otherwise, <nl>the<ol> 
[such] license shall become invalid until the date the board receives the 
<nl>license holder's <ol> [registrant's] renewal and penalty fee. Each 
<nl>license holder<ol> [registrant] shall advise the board in writing of each 
change of mailing address as it occurs. The board will mail a renewal notice to 
the last recorded address of each <nl>license holder<ol> [registrant] in 
compliance with the Act, sec.16(a). It is the sole responsibility of the 
<nl>license holder<ol> [registrant] to pay the required renewal fee together 
with any applicable penalty at the time of payment, regardless of whether the 
renewal notice is received. Stipulations with reference to expirations and 
renewals of <nl>licenses<ol> [certificates of registration] are set out in the 
Act, sec.16 and sec.16.1. The following will apply to renewals.
(1)-(5) (No change.) 
(6) A license which has been expired for two years may not be renewed, but the 
former <nl>license holder<ol> [registrant] may apply for a new <nl>license<ol> 
[certificate of registration] as provided in the Act and applicable board rules. 
(7) In strict accordance with the provisions of the Texas Education Code, 
sec.57.491, pertaining to the loan default proceedings of the Texas Guaranteed 
Student Loan Corporation (TGSLC), if a <nl>license holder's<ol> [licensee's] 
name has been provided by<nl> the <ol>TGSLC as being in default of a loan, the 
board shall not renew the license of the <nl>license holder<ol> [licensee] on 
the second renewal date following such notification, unless <nl>the<ol> TGSLC 
certifies that the individual has entered into a repayment agreement with TGSLC, 
or is not in default on a loan. Such <nl>license holder<ol> [licensee] shall be 
provided an opportunity for a hearing, similar to that provided by <nl> 
sec.131.167<ol> [sec.131.137] of this title (relating to Disciplinary Actions), 
before any action concerning the nonrenewal of a license is taken under this 
paragraph. A defaulted loan shall not bar the board's issuance of an initial 
license if the applicant is otherwise qualified for licensure; however, the 
board shall not renew said license unless the TGSLC certifies the individual has 
satisfied the requirements of the Texas Education Code, sec.57.491. 

sec.131.135.Replacement Certificates.
Only one <nl>license<ol> [certificate of registration] will be issued to each 
<nl>license holder<ol> [registrant]. A new <nl>license<ol> [certificate of 
registration] to replace any <nl>license<ol> [certificate] lost, destroyed, or 
mutilated, may be issued, subject to the rules of the board, on payment of the 
established fee[, unless otherwise provided by law] <nl>and verification of the 
status of the original license.<ol> A <nl>license holder<ol> [registrant] 
requesting a replacement <nl>license<ol> [certificate] under this section will, 
if possible, surrender to the board any remaining portions of his original 
<nl>license<ol> [certificate] and shall file with his request a sworn affidavit 
setting out the reasons for his request so that the board records will reflect 
the reason for issuance of a new <nl> license<ol> [certificate]. Replacement 
<nl>licenses<ol> [certificates] will reflect the assigned serial number of the 
<nl>license holder<ol> [registrant]. 

sec.131.136.New Design Certificates.
In the event the board [by its own initiative or the requirements of law] 
redesigns the <nl>license<ol> [certificate of registration] for professional 
engineers, a <nl>license holder<ol> [registrant holding a valid certificate of 
the design existing prior to the date the new design is approved] may obtain a 
<nl>license<ol> [certificate ] of the new design upon payment of a fee to be 
established by the board. [The registrant will not be required to surrender his 
original certificate to obtain a certificate of the new design.] 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717182
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Professional Conduct and Ethics
22 TAC sec.131.151, sec.131.152
The Texas Board of Professional Engineers proposes amendments to sec.131.151 and 
sec.131.152, concerning professional conduct and ethics. The amendments will 
provide clarification of what constitutes misconduct by an engineer and also 
conflicts of interest. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the sections are in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be clarification of what constitutes misconduct by an engineer 
and also conflicts of interest. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.8 is affected by the proposed amendments. 

sec.131.151.Engineers Shall Protect the Public.
(a) (No change.) 
(b) Engineers shall not perform any engineering function which, when measured by 
generally accepted engineering standards or procedures, is reasonably likely to 
result in the endangerment of lives, health, safety, property, or welfare of the 
public. <nl>Any act or conduct which constitutes incompetence or gross 
negligence, or a criminal violation of law, constitutes misconduct and shall be 
censurable by the board. <ol> 
(c)-(d) (No change.)

sec.131.152.Engineers Shall Be Objective and Truthful.
(a)-(c) (No change.) 
(d) <nl>A conflict of interest exists when an engineer accepts <ol> [An engineer 
commits misconduct by accepting] employment when a reasonable probability exists 
that the engineer's own financial, business, property, or personal interests may 
affect any professional judgment, decisions, or practices exercised on behalf of 
the client or employer. <nl>An engineer may accept such an employment only if 
all parties involved in the potential conflict of interest are fully informed in 
writing and the client or employer confirms the knowledge of the potential 
conflict in writing. An engineer in a conflict of interest employment shall 
maintain the interests of the client and other parties as provided by 
sec.131.154 of this title (relating to Engineers Shall Maintain Confidentiality 
of Clients) and other rules and statutes. <ol> 
(e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717181
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Compliance and Enforcement
22 TAC sec.sec.131.162, 131.163, 131.166, 131.167 
The Texas Board of Professional Engineers proposes amendments to 
sec.sec.131.162, 131.163, 131.166, and 131.167, concerning compliance and 
enforcement. 
The amendments will clarify language pertaining to a firm's compliance with the 
TEPA, an engineer's compliance with the Act, and will provide correct examples 
of engineers' seals consistent with Senate Bill 623. The amendment to 
sec.131.167 provides clarification and corrects cross references to statute and 
rules. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the sections are in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be clarified language pertaining to a firm's compliance with 
the TEPA, an engineer's compliance with the Act and correct examples of 
engineers' seals consistent with Senate Bill 623. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The amendments are proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.sec.15, 17, 18, 22, 22C, and 23 is affected by the proposed 
amendments.

sec.131.162.Firm Compliance.
The board shall not consider any firm, partnership, association, corporation, or 
other business entity as being in compliance with <nl>the<ol> Texas Engineering 
Practice Act (Act), sec.17 and sec.18, unless a licensed professional engineer 
is a regular full-time employee of the firm, partnership, association, 
corporation or other business entity. The engineer shall provide to the board 
evidence of such employment upon its request. <nl>This section does not prohibit 
a licensed professional engineer from performing consulting engineering services 
on a part-time basis as an individual. An engineering firm shall provide that at 
least one full-time employee engineer directly supervises all engineering work 
performed in branch, remote, or project offices. <ol> [Although this rule does 
not prohibit a licensed professional engineer from performing engineering 
services on a part-time basis, such part-time work for a firm does not allow 
that firm to offer engineering services or otherwise act in a manner not in 
conformance with the Act. Branch or remote offices shall have a full-time 
employee engineer directly supervising all engineering performed in that 
office.] 

sec.131.163.Engineer Compliance.
Any engineer who directly or indirectly enters into any contract, arrangement, 
plan, or scheme with any person, firm, partnership, association, or corporation 
or other business entity which in any manner results in a violation of 
sec.131.162 of this title (relating to Firm Compliance) shall be subject to 
legal and disciplinary actions available to the board. <nl>Engineers shall 
perform or directly supervise the engineering work of any subordinates as 
provided by sec.131.18 of this title (relating to Definitions). Under no 
circumstances shall engineers work in a part-time arrangement with a firm not 
otherwise in full compliance with sec.131.162 of this title in a manner that 
could enable such firm to offer or perform professional engineering services. 
<ol> [Engineers who operate a part-time engineering business shall actively 
supervise the engineering work of any subordinates as that work occurs.]

sec.131.166.Engineers' Seals.
(a) The purpose of the engineer's seal is to assure the user of the engineering 
product that the work has been performed by the professional engineer named and 
to delineate the scope of the engineer's work. The engineer shall utilize the 
designation "P.E." or the titles set forth in the Texas Engineering Practice Act 
(Act), sec.1.3. Physical seals of two different sizes will be acceptable: a 
pocket seal (the size commercially designated as 1-5/8-inch seal) or desk seal 
(commercially designated as a two-inch seal) to be of the design shown in this 
subsection. Computer-generated seals may be of a reduced size provided that the 
engineer's name and number are clearly legible. 
Figure: 22 TAC sec.131.166(a) 
(b)-(n) (No change.) 

sec.131.167.Disciplinary Actions.
(a)-(g) (No change.) 
(h) The following is a table of suggested sanctions the board may levy against 
license holders for specific infractions of the Act or rules; the minimum 
administrative penalty will be $100 per violation: 
Figure: 22 TAC sec.131.167(h) 
(i) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717180
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

Compliance and Enforcement
22 TAC sec.131.168
The Texas Board of Professional Engineers proposes new sec.131.168, concerning 
compliance and enforcement. 
The new section will establish the investigative process and resulting action 
the board will follow to ensure due process when non-license holders or firms 
are found to have violated the Texas Engineering Practice Act, sec.8 and 
sec.22C. 
John R. Speed, P.E., executive director, Texas Board of Professional Engineers, 
has determined that for the first five-year period the section is in effect 
there will no effect for state or local government. 
Mr. Speed also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the establishment of the investigative process and resulting 
action the board will follow to ensure due process when non-license holders or 
firms are found to have violated the Texas Engineering Practice Act, sec.8 and 
sec.22C. 
Comments on the proposal may be submitted to John R. Speed, P.E., Executive 
Director, Texas Board of Professional Engineers, P.O. Drawer 18329, Austin, 
Texas 78760-8329. 
The new section is proposed under Texas Civil Statutes, Article 3271, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623. Texas Civil Statutes, 
Article 3271a, sec.8 and sec.22C is affected by the proposed new section. 

sec.131.168.Actions Against Non-License Holders.
Under the authority and provisions of the Texas Engineering Practice Act, sec.8 
and sec.22C, the board shall investigate complaints and take action against non-
license holders or firms who are found to be censurable for a violation of the 
law. The following investigative process and resulting action listed in 
paragraphs (1)-(3) of this section will be followed by the board to ensure 
affected individuals and/or firms are afforded due process of law. 
(1) Upon receipt of a formal or staff initiated complaint, the information will 
be evaluated to determine if the evidence provides sufficient probable cause 
that a violation may have occurred. 
(2) If sufficient probable cause does not exist, an investigation will not be 
initiated. 
(3) If sufficient probable cause is found, then an investigation will be 
initiated by the board staff to determine if a violation of law has occurred. 
The board's investigative process will be as follows. 
(A) The individual or firm will be advised of the complaint and the specific 
section of the Act which appears to be violated. If the initial evidence is 
sufficiently strong, the executive director may offer the respondent a consent 
order that, if accepted, will be presented to the board for acceptance or 
rejection. The consent order shall include an administrative penalty not 
inconsistent with sec.131.167(i) of this title (relating to Disciplinary 
Actions) and a compliance requirement. The respondent shall be fully informed of 
the range of penalties allowed under criminal, civil and administrative 
proceedings. 
(B) The respondent will be afforded the opportunity to respond to the complaint 
to show that the actions which precipitated the complaint are not in violation 
of the Act, or to accept the consent order. 
(C) If, after evaluation of the respondent's response a violation appears 
evident, the respondent will be afforded the opportunity to resolve the 
allegations informally in the same manner prescribed for license holders in 
sec.131.167(e) of this title (relating to Disciplinary Actions). 
(D) Any board action under this paragraph which is not informally disposed by 
agreed or consent order, will be considered a contested case and will be handled 
in accordance with applicable law and board rules. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717179
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 440-7723

PART XV. Texas State Board of Pharmacy
CHAPTER 291. Pharmacies
Nuclear Pharmacy (Class B)
22 TAC sec.sec.291.51-291.54
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Pharmacy or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The Texas State Board of of Pharmacy proposes repeal of sec.sec.291.51 - 291.54 
and simultaneously proposes new sec.sec.291.51 - 291.55, concerning purpose, 
definitions, personnel, operational standards, and records in a Nuclear Pharmacy 
(Class B). 
These rules, if adopted, will replace the current Nuclear Pharmacy (Class B) 
rules and specify the purpose, definitions, personnel, operational standards, 
and records for operation of a Nuclear Pharmacy (Class B). The rule are the 
result of recommendations to the Board of Pharmacy by a Task Force on Nuclear 
Pharmacy. This Task Force was established by the Board to review the current 
Class B (Nuclear) Pharmacy rules to identify and make recommendations for areas 
that need to be updated; make recommendations to incorporate appropriate 
requirements for the compounding of sterile pharmaceuticals; and make 
recommendations concerning areas of regulatory overlap between agencies, such as 
the Texas Department of Health - Bureau of Radiation Control and the Texas State 
Board of Pharmacy. The rules propose to update the rules to include appropriate 
requirements for the preparation of sterile radiopharmaceuticals; clarify the 
duties of a pharmacist and the responsibilities of the pharmacist-in-charge; 
specify training requirements for pharmacists and pharmacy technicians; 
establish education, training, and evaluation requirements for pharmacy 
personnel who compound or directly supervise the compounding of sterile 
radiopharmaceuticals; establish and/or update the requirements for licensing, 
environment, prescription dispensing and delivery, pharmaceutical care services, 
equipment, radiopharmaceutical and/or radioactive materials, loading bulk drugs 
into automated compounding devices, and sterile radiopharmaceuticals; and bring 
many of the recordkeeping provisions for a Community (Class A) Pharmacy 
Compounding Sterile Pharmaceuticals to the Nuclear Pharmacy (Class B) practice 
setting, such as permitting electronic radioactive prescription drug orders, 
radioactive prescription drug orders for certain drugs from practitioners not 
licensed in the state of Texas, contents of the various radioactive prescription 
drug orders, and other records required to be maintained by the pharmacy. 
Gay Dodson, R.Ph., Executive Director, has determined that for the first five-
year period the rule is in effect there will be no fiscal implications for state 
or local government as a result of enforcing or administering the rule. 
Ms. Dodson also has determined that for each year of the first five-year period 
the rule will be in effect the public benefit anticipated as a result of 
enforcing the rule will be the establishment of standards for the operation of a 
Class B (Nuclear Pharmacy. 
An estimated $50.00 per year to meet the additional quality control and pharmacy 
technician training requirements. A one time $100.00 - $500.00 cost per 
pharmacist for sterile products training if not previously trained. The cost 
depends on whether the training course is an on-the-job program or an off-site 
program accredited by an ACPE approved provider including travel and lodging.
Comments on the proposal may be submitted to Steve Morse, R.Ph., Director of 
Compliance, 333 Guadalupe Street, Suite 3-600, Box 21, Austin, Texas, 78701-
3942.
The repeal is proposed under the Texas Pharmacy Act (Article 4542a-1, Texas 
Civil Statutes): Section 4 which specifies that the purpose of the Act is to 
protect the public through the effective control and regulation of the practice 
of pharmacy; Section 16(a) which gives the Board the authority to adopt rules 
for the proper administration and enforcement of the Act; Section 17(b)(3) which 
gives the Board the authority to specify minimum standards for drug storage, 
maintenance of prescription drug records and procedures for the delivery, 
dispensing in a suitable container appropriately labeled, providing of 
prescription drugs or devices within the practice of pharmacy. The statutes 
affected by this rule: Texas Civil Statutes, Article 4542a-1.
sec.291.51. Definitions. 
sec.291.52. Personnel. 
sec.291.53. Operational Standards. 
sec.291.54. Records.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717052
Gay Dodson, R.Ph
Executive Director
Texas State Board of Pharmacy
Proposed date of adoption: February 10, 1998
For further information, please call: (512) 305-8026

22 TAC sec.sec.291.51-291.55
The new rule is proposed under the Texas Pharmacy Act (Article 4542a-1, Texas 
Civil Statutes): Section 4 which specifies that the purpose of the Act is to 
protect the public through the effective control and regulation of the practice 
of pharmacy; Section 16(a) which gives the Board the authority to adopt rules 
for the proper administration and enforcement of the Act; Section 17(b)(3) which 
gives the Board the authority to specify minimum standards for drug storage, 
maintenance of prescription drug records and procedures for the delivery, 
dispensing in a suitable container appropriately labeled, providing of 
prescription drugs or devices within the practice of pharmacy. The statutes 
affected by this rule: Texas Civil Statutes, Article 4542a-1.

sec.291.51. Purpose. 
The purpose of these sections is to provide standards for the preparation, 
labeling, and distribution of compounded radiopharmaceuticals by licensed 
nuclear pharmacies, pursuant to a radioactive prescription drug order. 

sec.291.52. Definitions. 
The following words and terms, when used in these sections, shall have the 
following meanings, unless the context clearly indicates otherwise. Any term not 
defined in this section shall have the definition set forth in the Act, sec. 5. 
Act- The Texas Pharmacy Act, Texas Civil Statutes, Article 4542a-1, as amended. 
Accurately as prescribed -Dispensing, delivering, and/or distributing a 
prescription drug order or radioactive prescription drug order: 
(A) to the correct patient (or agent of the patient) for whom the drug or device 
was prescribed; 
(B) with the correct drug in the correct strength, quantity, and dosage form 
ordered by the practitioner; and 
(C) with correct labeling (including directions for use) as ordered by the 
practitioner. Provided, however, that nothing herein shall prohibit pharmacist 
substitution if substitution is conducted in strict accordance with applicable 
laws and rules, including sec.40 of the Texas Pharmacy Act.
Administer -The direct application of a prescription drug and/or 
radiopharmaceutical, by injection, inhalation, ingestion, or any other means to 
the body of a patient by: 
(A) a practitioner, an authorized agent under his supervision, or other person 
authorized by law; or 
(B) the patient at the direction of a practitioner. Airborne particulate 
cleanliness class -The level of cleanliness specified by the maximum allowable 
number of particles per cubic foot of air as specified in Federal Standard 209E, 
et seq. For example: 
(A) Class 100 is an atmospheric environment which contains less than 100 
particles no greater than 0.5 microns in diameter per cubic foot of air; 
(B) Class 10,000 is an atmospheric environment which contains less than 10,000 
particles no greater than 0.5 microns in diameter per cubic foot of air; and 
(C) Class 100,000 is an atmospheric environment which contains less than 100,000 
particles no greater than 0.5 microns in diameter per cubic foot of air. 
Authentication of product history -Identifying the purchasing source, the 
intermediate handling, and the ultimate disposition of any component of a 
radioactive drug. Authorized nuclear pharmacist A pharmacist who has completed 
the specialized training requirements specified by these rules for the 
preparation and distribution of radiopharmaceuticals. Authorized user Any 
individual named on a Texas radioactive material license, issued by the Texas 
Department of Health, Bureau of Radiation Control. Automated compounding or drug 
dispensing device An automated device that compounds, measures, counts, 
packages, and/or labels a specified quantity of dosage units for a designated 
drug product 
Biological Safety Cabinet -Containment unit suitable for the preparation of low 
to moderate risk agents where there is a need for protection of the product, 
personnel, and environment, according to National Sanitation Foundation (NSF) 
Standard 49. 
Board -The Texas State Board of Pharmacy. 
Class B pharmacy license or nuclear pharmacy license -A license issued to a 
pharmacy dispensing or providing radioactive drugs or devices for administration 
to an ultimate user. 
Clean room -A room in which the concentration of airborne particles is 
controlled and there are one or more clean zones according to Federal Standard 
209E, et. Seq. 
Clean zone -A defined space in which the concentration of airborne particles is 
controlled to meet a specified airborne particulate cleanliness class. 
Controlled area -A controlled area is the area designated for preparing sterile 
radiopharmaceuticals. 
Controlled substance -A drug, immediate precursor, or other substance listed in 
Schedules I-V or Penalty Groups 1-4 of the Texas Controlled Substances Act, as 
amended, or a drug, immediate precursor, or other substance included in Schedule 
I, II, III, IV, or V of the Federal Comprehensive Drug Abuse Prevention and 
Control Act of 1970, as amended (Public Law 91-513).
Dangerous drug -A device, drug, or radioactive drug that is unsafe for self 
medication and that is not included in Penalty Groups I through IV of Chapter 
481 (Texas Controlled Substances Act). The term includes a device, drug, or 
radiopharmaceutical that bears or is required to bear the legend:
(A) "Caution: Federal Law Prohibits Dispensing Without a Prescription;" or 
(B) "Caution: Federal Law Restricts This Drug To Be Used By or on the Order of a 
Licensed Veterinarian" 
Data communication device -An electronic device that receives electronic 
information from one source and transmits or routes it to another (e.g., bridge, 
router, switch, or gateway). 
Deliver or delivery -The actual, constructive, or attempted transfer of a 
prescription drug or device, radiopharmaceutical, or controlled substance from 
one person to another, whether or not for a consideration.
Designated agent-
(A) a licensed nurse, physician assistant, pharmacist, or other individual 
designated by a practitioner, and for whom the practitioner assumes legal 
responsibility, who communicates radioactive prescription drug orders to a 
pharmacist; or 
(B) a licensed nurse, physician assistant, or pharmacist employed in a health 
care facility to whom the practitioner communicates a radioactive prescription 
drug order. 
Device -An instrument, apparatus, implement, machine, contrivance, implant, in 
vitro reagent, or other similar or related articles, including any component 
parts or accessory that is required under federal or state law to be ordered or 
prescribed by a practitioner. 
Diagnostic prescription drug order -A radioactive prescription drug order issued 
for a diagnostic purpose. 
Dispense -Preparing, packaging, compounding, or labeling for delivery a 
prescription drug or device, or a radiopharmaceutical in the course of 
professional practice to an ultimate user or his agent by or pursuant to the 
lawful order of a practitioner. 
Dispensing pharmacist -The authorized nuclear pharmacist responsible for the 
final check of the dispensed prescription before delivery to the patient.
Distribute -The delivering of a prescription drug or device, or a 
radiopharmaceutical other than by administering or dispensing. 
Electronic radioactive prescription drug order -A radioactive prescription drug 
order which is transmitted by an electronic device to the receiver (pharmacy). 
Internal test assessment -Validation of tests for quality control necessary to 
insure the integrity of the test. 
Nuclear pharmacy technique -The mechanical ability required to perform the 
nonjudgmental, technical aspects of preparing and dispensing 
radiopharmaceuticals. 
Original prescription -The: 
(A) original written radioactive prescription drug orders, or 
(B) original verbal or electronic radioactive prescription drug orders reduced 
to writing either manually or electronically by the pharmacist.
Pharmacist-in-charge -The pharmacist designated on a pharmacy license as the 
pharmacist who has the authority or responsibility for a pharmacy's compliance 
with laws and rules pertaining to the practice of pharmacy. 
Pharmacy technician/Supportive Personnel -Those individuals utilized in 
pharmacies whose responsibility it shall be to provide technical services that 
do not require professional judgment concerned with the preparation and 
distribution of drugs or radiopharmaceuticals under the direct supervision of 
and responsible to a pharmacist. 
Process validation -Documented evidence providing a high degree of assurance 
that a specific process will consistently produce a product meeting its 
predetermined specifications and quality attributes. 
Radiopharmaceutical -A prescription drug or device that exhibits spontaneous 
disintegration of unstable nuclei with the emission of a nuclear particle(s) or 
photon(s), including any nonradioactive reagent kit or nuclide generator that is 
intended to be used in preparation of any such substance.
Radioactive drug quality control -The set of testing activities used to 
determine that the ingredients, components (e.g., containers), and final 
radiopharmaceutical prepared meets predetermined requirements with respect to 
identity, purity, non-pyrogenicity, and sterility and the interpretation of the 
resulting data in order to determine the feasibility for use in humans and 
animals including internal test assessment, authentication of product history, 
and the keeping of mandatory records. 
Radioactive drug service -The act of distributing radiopharmaceuticals; the 
participation in radiopharmaceutical selection and the performance of 
radiopharmaceutical drug reviews. 
Radioactive prescription drug order -An order from a practitioner or a 
practitioner's designated agent for a radiopharmaceutical to be dispensed.
Sterile radiopharmaceutical -A dosage form of a radiopharmaceutical free from 
living micro-organisms. 
Therapeutic prescription drug order -A radioactive prescription drug order 
issued for a specific patient for a therapeutic purpose. 
Ultimate user -A person who has obtained and possesses a prescription drug or 
radiopharmaceutical for his or her own use or for the use of a member of his or 
her household. 

sec.291.53. Personnel.
(a) Pharmacists-in-Charge. 
(1) General. 
(A) Every nuclear pharmacy shall have an authorized nuclear pharmacist 
designated on the nuclear pharmacy license as the pharmacist-in-charge who shall 
be responsible for a nuclear pharmacy's compliance with laws and regulations, 
both state and federal, pertaining to the practice of nuclear pharmacy. 
(B) The nuclear pharmacy pharmacist-in-charge shall see that directives from the 
board are communicated to the owner(s), management, other pharmacists, and 
interns of the nuclear pharmacy. 
(C) An authorized nuclear pharmacist may be pharmacist-in-charge for no more 
than one nuclear pharmacy at any one given time. 
(2) Responsibilities. The pharmacist-in-charge shall have the responsibility 
for, at a minimum, the following: 
(A) ensuring that radiopharmaceuticals are dispensed and delivered safely and 
accurately as prescribed; 
(B) developing a system to assure that all pharmacy personnel responsible for 
compounding and/or supervising the compounding of radiopharmaceuticals within 
the pharmacy receive appropriate education and training and competency 
evaluation; 
(C) establishing policies for procurement of drugs and devices and storage of 
all pharmaceutical materials including radiopharmaceuticals, components used in 
the compounding of radiopharmaceuticals, and drug delivery devices; 
(D) developing a system for the disposal and distribution of drugs from the 
Class B pharmacy 
(E) developing a system for the compounding, sterility assurance, and quality 
control of sterile radiopharmaceuticals; 
(F) maintaining records of all transactions of the Class B pharmacy necessary to 
maintain accurate control over and accountability for all pharmaceutical 
materials including radiopharmaceuticals, required by applicable state and 
federal laws and rules; 
(G) developing a system to assure the maintenance of effective controls against 
the theft or diversion of prescription drugs, and records for such drugs; 
(H) assuring that the pharmacy has a system to dispose of radioactive and 
cytotoxic waste in a manner so as not to endanger the public health; and 
(I) legal operation of the pharmacy, including meeting all inspection and other 
requirements of all state and federal laws or rules governing the practice of 
pharmacy. 
(b) Authorized nuclear pharmacists. 
(1) General. 
(A) The pharmacist-in-charge shall be assisted by a sufficient number of 
additional authorized nuclear pharmacists as may be required to operate the 
pharmacy competently, safely, and adequately to meet the needs of the patients 
of the pharmacy. 
(B) All personnel performing tasks in the preparation and distribution of 
radiopharmaceuticals shall be under the direct supervision of an authorized 
nuclear pharmacist. General qualifications for an authorized nuclear pharmacist 
are the following. A pharmacist shall: 
(i) meet minimal standards of training and experience in the handling of 
radioactive materials in accordance with the requirements of the Texas 
Regulations for Control of Radiation of the Bureau of Radiation Control, Texas 
Department of Health; 
(ii) be a pharmacist licensed by the board to practice pharmacy in Texas; and 
(iii) submit to the board either: 
(I) written certification that he or she has current board certification as a 
nuclear pharmacist by the Board of Pharmaceutical Specialties; or 
(II) written certification signed by preceptor authorized nuclear pharmacist 
that he or she has achieved a level of competency sufficient to independently 
operate as an authorized nuclear pharmacist and has satisfactorily completed 700 
hours in a structured educational program consisting of both:
(-a-) 200 hours of didactic training in a program accepted by the Bureau of 
Radiation Control, Texas Department of Health in the following areas: 
(-1-) radiation physics and instrumentation; 
(-2-) radiation protection; 
(-3-) mathematics pertaining to the use and measurement of radioactivity; 
(-4-) radiation biology; and 
(-5-) chemistry of radioactive material for medical use; and
(-b-) 500 hours of supervised experience in a nuclear pharmacy involving the 
following: 
(-1-) shipping, receiving, and performing related radiation surveys; 
(-2-) using and performing checks for proper operation of dose calibrators, 
survey meters, and, if appropriate, instruments used to measure alpha- or beta-
emitting radionuclides; 
(-3-) calculating, assaying, and safely preparing dosages for patients or human 
research subjects; 
(-4-) using administrative controls to avoid mistakes in the administration of 
radioactive material; and 
(-5-) using procedures to prevent or minimize contamination and using proper 
decontamination procedures. 
(C) The board may issue a letter of notification that the evidence submitted by 
the pharmacist meets the requirements of subparagraph (B)(i)-(iii) of this 
paragraph and has been accepted by the board and that, based thereon, the 
pharmacist is recognized as an authorized nuclear pharmacist.
(D) Authorized nuclear pharmacists are solely responsible for the direct 
supervision of pharmacy technicians and for delegating nuclear pharmacy 
techniques and additional duties, other than those listed in paragraph (2) of 
this subsection, to pharmacy technicians. Each authorized nuclear pharmacist:
(i) shall verify the accuracy of all acts, tasks, or functions performed by 
pharmacy technicians; and 
(ii) shall be responsible for any delegated act performed by pharmacy 
technicians under his or her supervision. 
(E) All authorized nuclear pharmacists while on duty, shall be responsible for 
complying with all state and federal laws or rules governing the practice of 
pharmacy. 
(F) The dispensing pharmacist shall ensure that the drug is dispensed and 
delivered safely and accurately as prescribed. 
(2) Duties. Duties which may only be performed by an authorized nuclear 
pharmacist are as follows: 
(A) receiving verbal therapeutic prescription drug orders and reducing these 
orders to writing, either manually or electronically; 
(B) receiving verbal, diagnostic prescription drug orders in instances where 
patient specificity is required for patient safety (e.g., radiolabeled blood 
products, radiolabeled antibiodies) and reducing these orders to writing, either 
manually or electronically; 
(C) interpreting and evaluating radioactive prescription drug orders; 
(D) selection of drug products; and 
(E) performing the final check of the dispensed prescription before delivery to 
the patient to ensure that the radioactive prescription drug order has been 
dispensed accurately as prescribed. 
(c) Pharmacy Technicians 
(1) General. 
(A) Pharmacy technicians in a nuclear pharmacy shall possess sufficient 
education and training to qualify such individual to perform assigned tasks 
including nuclear pharmacy techniques. 
(B) The pharmacist-in-charge shall document the training and certify the 
competency of pharmacy technicians completing the training. A written record of 
initial and in-service training of pharmacy technicians shall be maintained and 
contain the following information: 
(i) name of the person receiving the training; 
(ii) date(s) of the training; 
(iii) general description of the topics covered; 
(iv) a statement or statements that certifies that the pharmacy technician is 
competent to perform the duties assigned; 
(v) name of the person supervising the training; and 
(vi) signature of the pharmacy technician and the pharmacist-in-charge or other 
pharmacist employed by the pharmacy and designated by the pharmacist-in-charge 
as responsible for training of supportive personnel. 
(2) Duties. Pharmacy technicians may perform any nuclear pharmacy technique 
delegated by an authorized nuclear pharmacist which is associated with the 
preparation and distribution of radiopharmaceuticals other than those duties 
listed in subsection (b)(2) of this section provided:
(A) an authorized nuclear pharmacist conducts in-process and final checks; and 
(B) pharmacy technicians are under the direct supervision of and responsible to 
an authorized nuclear pharmacist. 
(3) Ratio of authorized nuclear pharmacists to pharmacy technicians. The ratio 
of authorized nuclear pharmacists to pharmacy technicians shall be no greater 
than 1:2, provided that only one pharmacy technician may be engaged in the 
compounding of a sterile radiopharmaceutical. 
(d) Special education, training, and evaluation requirements for pharmacy 
personnel compounding or responsible for the direct supervision of pharmacy 
personnel compounding sterile radiopharmaceuticals. 
(1) General. 
(A) All pharmacy personnel preparing sterile radiopharmaceuticals shall receive 
didactic and experiential training and competency evaluation through 
demonstration, testing (written or practical) as outlined by the pharmacist-in-
charge and described in the policy and procedure or training manual. Such 
training shall include instruction and experience in the following areas: 
(i) aseptic technique; 
(ii) critical area contamination factors; 
(iii) environmental monitoring; 
(iv) facilities; 
(v) equipment and supplies; 
(vi) sterile pharmaceutical and radiopharmaceutical calculations and 
terminology; 
(vii) sterile radiopharmaceutical compounding documentation;
(viii) quality assurance procedures; 
(ix) aseptic preparation procedures including proper gowning and gloving 
technique; 
(x) handling of hazardous drugs, if applicable; and 
(xi) general conduct in the controlled area. 
(B) The aseptic technique of each person compounding or responsible for the 
direct supervision of personnel compounding sterile radiopharmaceuticals shall 
be observed, evaluated, and documented as satisfactory through written or 
practical tests and process validation. 
(C) Although process validation may be incorporated into the experiential 
portion of a training program, process validation must be conducted at each 
pharmacy where an individual compounds sterile radiopharmaceuticals. No product 
intended for patient use shall be compounded by an individual until the on-site 
process validation test indicates that the individual can competently perform 
aseptic procedures, except that an authorized nuclear pharmacist may temporarily 
compound sterile radiopharmaceuticals and supervise pharmacy technicians 
compounding sterile radiopharmaceuticals without process validation provided the 
authorized nuclear pharmacist: 
(i) has completed a recognized course in an accredited college of pharmacy or a 
course sponsored by an American Council on Pharmaceutical Education approved 
provider which provides 20 hours of instruction and experience in the areas 
listed in this paragraph; and 
(ii) completes the on-site process validation within seven days of commencing 
work at the pharmacy. 
(D) Process validation procedures for assessing the preparation of specific 
types of sterile radiopharmaceuticals shall be representative of all types of 
manipulations, products, and batch sizes that personnel preparing that type of 
radioradiopharmaceutical are likely to encounter. 
(E) The pharmacist-in-charge shall assure continuing competency of pharmacy 
personnel through in-service education, training, and process validation to 
supplement initial training. Personnel competency shall be evaluated:
(i) during orientation and training prior to the regular performance of those 
tasks; 
(ii) whenever the quality assurance program yields an unacceptable result; 
(iii) whenever unacceptable techniques are observed; and 
(iv) at least on an annual basis. 
(2) Pharmacists. 
(A) All pharmacists who compound sterile radiopharmaceuticals or supervise 
pharmacy technicians compounding sterile radiopharmaceuticals shall: 
(i) effective January 1, 2000, complete a recognized course in an accredited 
college of pharmacy or a course sponsored by an American Council on 
Pharmaceutical Education approved provider which provides 20 hours of 
instruction and experience in the areas listed in paragraph (1) of this 
subsection; and 
(ii) possess knowledge about: 
(I) aseptic processing; 
(II) quality control as related to environmental, component, and end-product 
testing; 
(III) chemical, pharmaceutical, and clinical properties of drugs; 
(IV) container, equipment, and closure system selection; and
(V) sterilization techniques. 
(B) Pharmacists shall discontinue preparation of sterile radiopharmaceuticals if 
the training specified in subparagraph (A) of this paragraph is not completed by 
January 1, 2000. 
(C) The required experiential portion of the training programs specified in this 
paragraph must be supervised by an individual who has already completed training 
in the compounding of sterile pharmaceuticals. 
(3) Pharmacy technicians. In addition to the qualifications and training 
outlined in subsection (c) of this section, all pharmacy technicians who 
compound sterile radiopharmaceuticals shall: 
(A) have a high school or equivalent education; 
(B) complete through a single course, a structured on-the-job didactic and 
experiential training program at this pharmacy which provides 40 hours of 
instruction and experience in the areas listed in paragraph (1) of this 
subsection. Such training may not be transferred to another pharmacy unless the 
pharmacies are under common ownership and control and use a common training 
program; 
(C) acquire the required experiential portion of the training programs specified 
in this paragraph under the supervision of an individual who has already 
completed training in the compounding of sterile pharmaceuticals.
(4) Documentation of Training. A written record of initial and in-service 
training and the results of written or practical testing and process validation 
of pharmacy personnel shall be maintained and contain the following information: 
(A) name of the person receiving the training or completing the testing or 
process validation; 
(B) date(s) of the training, testing, or process validation;
(C) general description of the topics covered in the training or testing or of 
the process validated; 
(D) name of the person supervising the training, testing, or process validation; 
and 
(E) signature (first initial and last name or full signature) of the person 
receiving the training or completing the testing or process validation and the 
pharmacist-in-charge or other pharmacist employed by the pharmacy and designated 
by the pharmacist-in-charge as responsible for training, testing, or process 
validation of personnel. 

sec.291.54. Operational Standards.
(a) Licensing requirements. 
(1) It is unlawful for a person to provide radioactive drug services unless such 
provision is performed by a person licensed to act as an authorized nuclear 
pharmacist, as defined by the board, or is a person acting under the direct 
supervision of an authorized nuclear pharmacist acting in accordance with the 
Act and its rules, and the regulations of the Texas Department of Health, Bureau 
of Radiation Control. Subsection (a) of this section does not apply to: 
(A) a licensed practitioner or his or her designated agent for administration to 
his or her patient, provided no person may receive, possess, use, transfer, own, 
acquire, or dispose of radiopharmaceuticals except as authorized in a specific 
or a general license as provided in Texas Regulations for Control of Radiation, 
Part 41, Texas Department of Health, or the Act;
(B) institutions and/or facilities with nuclear medicine services operated by 
practitioners and who are licensed by the Texas Department of Health, Bureau of 
Radiation Control, to prescribe, administer, and dispense radioactive materials 
(drugs and/or devices). 
(2) An applicant for a Class B pharmacy shall provide evidence to the board of 
the possession of a Texas Department of Health Radiation Control Number. 
(3) A Class B pharmacy shall register annually with the board on a pharmacy 
license application provided by the board, following the procedures specified in 
sec.291.1 of this title (relating to Pharmacy License Application). 
(4) A Class B pharmacy which changes ownership shall notify the board within ten 
days of the change of ownership and apply for a new and separate license as 
specified in sec.291.4 of this title (relating to Change of Ownership). 
(5) A Class B pharmacy which changes location and/or name shall notify the board 
within ten days of the change and file for an amended license as specified in 
sec.291.2 of this title (relating to Change of Location and/or Name). 
(6) A Class B pharmacy owned by a partnership or corporation which changes 
managing officers shall notify the board in writing of the names of the new 
managing officers within ten days of the change, following the procedures in 
sec.291.3 of this title (relating to Change of Managing Officers).
(7) A Class B pharmacy shall notify the board in writing within ten days of 
closing, following the procedures in sec.291.5 of this title (relating to Closed 
Pharmacies). 
(8) A separate license is required for each principal place of business and only 
one pharmacy license may be issued to a specific location. 
(9) A fee as specified in sec.291.6 of this title (relating to Pharmacy License 
Fees) will be charged for the issuance and renewal of a license and the issuance 
of an amended license. 
(10) A Class B pharmacy, licensed under the provisions of the Act, sec.29(b)(2), 
which also operates another type of pharmacy which would otherwise be required 
to be licensed under the Act, sec.29(b)(1), concerning community pharmacy (Class 
A), is not required to secure a license for such other type of pharmacy; 
provided, however, such licensee is required to comply with the provisions of 
sec.291.31 of this title (relating to Definitions); sec.291.32 of this title 
(relating to Personnel); sec.291.33 of this title (relating to Operational 
Standards); sec.291.34 of this title (relating to Records); sec.291.35 of this 
title (relating to Triplicate Prescription Requirements); and sec.291.36 of this 
title (relating to Class A Pharmacies Dispensing Compounded Sterile Parenteral 
and/or Enteral Products), contained in Community Pharmacy (Class A), to the 
extent such rules are applicable to the operation of the pharmacy. 
(11) A Class B pharmacy engaged in nonsterile compounding of drug products shall 
comply with the provisions of sec.sec.291.31-291.34 of this title (relating to 
Definitions, Personnel, Operational Standards, and Records for Class A 
(Community) Pharmacies) to the extent such rules are applicable to nonsterile 
compounding of drug products. 
(b) Environment. 
(1) General requirements. 
(A) The pharmacy shall be enclosed and lockable. 
(B) The pharmacy shall have a designated controlled area for 
radiopharmaceuticals that is functionally separate from other areas of the 
facility. If non-sterile radiopharmaceuticals are dispensed, the controlled area 
for sterile radiopharmaceuticals shall be functionally separate from the 
controlled area for non- sterile radiopharmaceuticals. 
(C) The pharmacy shall have adequate space necessary for the storage, 
compounding, labeling, dispensing, and sterile preparation of drugs prepared in 
the pharmacy, and additional space, depending on the size and scope of 
pharmaceutical services. 
(D) The pharmacy shall be arranged in an orderly fashion and shall be kept 
clean. All required equipment shall be clean and in good operating condition. 
(E) A sink with hot and cold running water, exclusive of restroom facilities, 
designated primarily for use of admixtures, shall be available within the 
pharmacy area to all pharmacy personnel and shall be maintained in a sanitary 
condition at all times. 
(F) The pharmacy shall be properly lighted and ventilated.
(G) The temperature of the pharmacy shall be maintained within a range 
compatible with the proper storage of drugs; the temperature of the refrigerator 
shall be maintained within a range compatible with the proper storage of drugs 
requiring refrigeration. 
(H) Animals, including birds and reptiles, shall not be kept within the pharmacy 
and in immediately adjacent areas under the control of the pharmacy. This 
provision does not apply to fish in aquariums, guide dogs accompanying disabled 
persons, or animals for sale to the general public in a separate area that is 
inspected by local health jurisdictions. 
(2) Special requirements for the compounding of sterile radiopharmaceuticals. 
When the pharmacy compounds sterile radiopharmaceuticals, the following is 
applicable. 
(A) Aseptic environment control device(s). The pharmacy shall prepare sterile 
radiopharmaceuticals in an appropriate aseptic environmental control device(s) 
or area, such as a laminar air flow hood, biological safety cabinet, or clean 
room which is capable of maintaining at least Class 100 conditions during normal 
activity unless the use of such device will expose pharmacy personnel to 
unacceptable levels of nuclear radiation. The aseptic environmental control 
device(s) shall: 
(i) be certified by an independent contractor according to Federal Standard 
209E, et seq, for operational efficiency at least every year or when it is 
relocated; and 
(ii) have pre-filters inspected periodically and replaced as needed, in 
accordance with written policies and procedures, and the inspection and/or 
replacement date documented. 
(B) Controlled area. The pharmacy shall have a designated controlled area for 
the compounding of sterile radiopharmaceuticals that is functionally separate 
from areas for the preparation of non-sterile pharmaceuticals and is constructed 
to minimize the opportunities for particulate and microbial contamination. 
(C) Automated compounding device(s). If automated compounding device(s) are 
used, the pharmacy shall have a method to calibrate and verify the accuracy of 
automated compounding devices used in aseptic processing and document the 
calibration and verification on a routine basis. 
(3) Security requirements. 
(A) All areas occupied by a pharmacy shall be capable of being locked by key or 
combination, so as to prevent access by unauthorized personnel when a pharmacist 
is not on-site. 
(B) The pharmacy may authorize personnel to gain access to that area of the 
pharmacy containing dispensed sterile radiopharmaceuticals, in the absence of 
the pharmacist, for the purpose of retrieving dispensed prescriptions to deliver 
to patients. If the pharmacy allows such after-hours access, the area containing 
the dispensed sterile radiopharmaceuticals shall be an enclosed and lockable 
area separate from the area containing undispensed prescription drugs. A list of 
the authorized personnel having such access shall be in the pharmacy's policy 
and procedure manual. 
(C) Each pharmacist while on duty shall be responsible for the security of the 
prescription department, including provisions for effective control against 
theft or diversion of prescription drugs, and records for such drugs. 
(c) Prescription dispensing and delivery. 
(1) Prescription containers (immediate inner containers).
(A) A drug dispensed pursuant to a radioactive prescription drug order shall be 
dispensed in an appropriate immediate inner container as follows. 
(i) If a drug is susceptible to light, the drug shall be dispensed in a light-
resistant container. 
(ii) If a drug is susceptible to moisture, the drug shall be dispensed in a 
tight container. 
(iii) The container should not interact physically or chemically with the drug 
product placed in it so as to alter the strength, quality, or purity of the drug 
beyond the official requirements. 
(B) Immediate inner prescription containers or closures shall not be re-used. 
(2) Delivery containers (outer containers). 
(A) Prescription containers may be placed in suitable containers for delivery 
which will transport the radiopharmaceutical safely in compliance with all 
applicable laws and regulations. 
(B) Delivery containers may be re-used provided they are maintained in a manner 
to prevent cross contamination. 
(3) Labeling. 
(A) The immediate inner container of a radiopharmaceutical shall be labeled 
with: 
(i) standard radiation symbol; 
(ii) the words "caution-radioactive material;" 
(iii) the name of the radiopharmaceutical; and 
(iv) the unique identification number of the prescription.
(B) The outer container of a radiopharmaceutical shall be labeled with: 
(i) the name, address, and phone number of the pharmacy; 
(ii) the date dispensed; 
(iii) the directions for use, if applicable; 
(iv) the unique identification number of the prescription;
(v) the name of the patient if known, or the statement, "for physician use" if 
the patient is unknown; 
(vi) the standard radiation symbol; 
(vii) the words "caution-radioactive material;" 
(viii) the name of the radiopharmaceutical; 
(ix) the amount of radioactive material contained in millicuries (mCi), 
microcuries (uCi), or bequerels (Bq) and the corresponding time that applies to 
this activity, if different from the requested calibration date and time; 
(x) the name or initials of the person preparing the product and the authorized 
nuclear pharmacist who checked and released the final product unless documents 
are maintained in the pharmacy identifying these individuals for each 
prescription dispensed; 
(xi) if a liquid, the volume in milliliters; 
(xii) the requested calibration date and time; and 
(xiii) the expiration date and/or time. 
(C) The amount of radioactivity shall be determined by radiometric methods for 
each individual preparation immediately at the time of dispensing and 
calculations shall be made to determine the amount of activity that will be 
present at the requested calibration date and time, due to radioactive decay in 
the intervening period, and this activity and time shall be placed on the label 
per requirements set out in paragraph (2) of this subsection.
(d) Pharmaceutical Care Services. 
(1) The following minimum level of pharmaceutical care services shall be 
provided whenever a therapeutic prescription drug order is dispensed and, when 
in the professional judgement of the pharmacist dispensing a diagnostic 
prescription drug order, the services are necessary to protect the patient's 
health while striving to produce positive patient outcomes. When it is 
determined that the following services are necessary, the dispensing pharmacist 
shall assure that efforts are made to gather the information necessary to 
properly perform the services. 
(A) Drug utilization review. A systematic ongoing process of drug utilization 
review shall be designed, followed, and documented to increase the probability 
of desired patient outcomes and decrease the probability of undesired outcomes 
from drug therapy with radiopharmaceuticals.
(B) Drug regimen review. 
(i) For the purpose of promoting therapeutic appropriateness, an authorized 
nuclear pharmacist shall evaluate therapeutic prescription drug orders and 
patient medication history for: 
(I) known allergies; 
(II) rational therapy contraindications; 
(III) reasonable dose and route of administration; 
(IV) reasonable directions for use; 
(V) duplication of therapy; 
(VI) drug-drug interactions; 
(VII) drug-food interactions; 
(VIII) drug-disease interactions; 
(IX) adverse drug reactions; 
(X) proper utilization, including overutilization or underutilization; and 
(XI) clinical laboratory or clinical monitoring methods to monitor and evaluate 
drug effectiveness, side effects, toxicity, or adverse effects, and 
appropriateness to continued use of the drug in its current regimen.
(ii) Upon identifying any clinically significant conditions, situations, or 
items listed in clause (i) of this subparagraph, the authorized nuclear 
pharmacist shall take appropriate steps to avoid or resolve the problem 
including consultation with the prescribing practitioner. 
(2) Other pharmaceutical care services which may be provided by authorized 
nuclear pharmacists include, but are not limited to, the following: 
(A) managing drug therapy as delegated by a practitioner as allowed under the 
provisions of the Medical Practice Act, sec. 3.061 or sec. 3.06(d); 
(B) managing patient compliance programs; 
(C) providing preventative health care services; and 
(D) providing case management of patients who are being treated with high-risk 
or high-cost drugs, or who are considered "high risk" due to their age, medical 
condition, family history, or related concern. 
(e) Equipment. The following minimum equipment is required in a nuclear 
pharmacy: 
(1) vertical laminar flow hood; 
(2) dose calibrator; 
(3) refrigerator; 
(4) Class A prescription balance, and accurate weights or balance of greater 
sensitivity if compounding occurs in the pharmacy which requires weighing; 
(5) scintillation analyzer; 
(6) microscope and hemocytometer; 
(7) adequate glassware, utensils, gloves, syringe shields and remote handling 
devices, and adequate equipment for product quality control;
(8) adequate shielding material; 
(9) typewriter or comparable equipment; 
(10) radiation dosimeters for visitors and personnel and log entry book; 
(11) exhaust/fume hood with monitor, for storage and handling of all volatile 
radioactive drugs if applicable, to be determined by the Texas Radiation Control 
Bureau; 
(12) calculator; and 
(13) adequate radiation monitor(s). 
(f) Library. A nuclear pharmacy shall maintain a reference library which shall 
include the following in hard copy or electronic format:
(1) United States Pharmacopoeia/National Formulary with supplements;
(2) federal and state laws and regulations relating to Texas pharmacy; 
(3) Texas Regulations for Control of Radiation; 
(4) reference on the safe handling of radioactive materials;
(5) a minimum of three texts dealing with nuclear medicine science; 
(6) reference on sterile product preparation; and 
(7) Code of Federal Regulations, Title 49, Parts 106-199, with recent 
amendments. 
(g) Radiopharmaceuticals and/or radioactive materials. 
(1) General requirements. 
(A) Radiopharmaceuticals may only be dispensed pursuant to a radioactive 
prescription drug order. 
(B) An authorized nuclear pharmacist may distribute radiopharmaceuticals to 
authorized users for patient use. A nuclear pharmacy may also furnish 
radiopharmaceuticals for departmental or physicians' use if such authorized 
users maintain a Texas radioactive materials license, and the 
radiopharmaceutical is labeled "for physician use," provided such distribution 
is documented in the control system.
(C) An authorized nuclear pharmacist may transfer to authorized users 
radioactive materials not intended for drug use in accordance with Part 41 of 
the Texas Regulations for Control of Radiation, Texas Department of Health. 
(D) The transportation of radioactive materials from the nuclear pharmacy must 
be in accordance with current state and federal transportation regulations. 
(2) Procurement and storage. 
(A) The pharmacist-in-charge shall have the responsibility for the procurement 
and storage of drugs, but may receive input from other appropriate staff 
relative to such responsibility. 
(B) Prescription drugs and devices shall be stored within the prescription 
department or a locked storage area. 
(C) All drugs shall be stored at the proper temperature, as defined by the 
following terms. 
(i) Cold--Any temperature not exceeding 8 degrees Centigrade (46 degrees 
Fahrenheit). A refrigerator is a cold place in which the temperature is 
maintained thermostatically between 2 and 8 degrees Centigrade (36 and 46 
degrees Fahrenheit). A freezer is a cold place in which the temperature is 
maintained thermostatically between -20 and -10 degrees Centigrade (-4 and -14 
degrees Fahrenheit). 
(ii) Cool--Any temperature between 8 and 15 degrees Centigrade (46 and 59 
degrees Fahrenheit). An article for which storage in a cool place is directed 
may, alternatively, be stored in a refrigerator unless otherwise specified in 
the labeling. 
(iii) Room temperature--The temperature prevailing in a working area. Controlled 
room temperature is a temperature thermostatically between 15 and 30 degrees 
Centigrade (59 and 86 degrees Fahrenheit). 
(iv) Warm--Any temperature between 30 and 40 degrees Centigrade (86 and 104 
degrees Fahrenheit). 
(v) Excessive heat--Temperature above 40 degrees Centigrade (104 degrees 
Fahrenheit). 
(vi) Protection from freezing where, in addition to the risk of breakage of the 
container, freezing subjects a product to loss of strength or potency, or to 
destructive alteration of the dosage form, the container label bears an 
appropriate instruction to protect the product from freezing.
(3) Out-of-date and other unusable drugs or devices. 
(A) Any drug or device bearing an expiration date shall not be dispensed beyond 
the expiration date of the drug or device. 
(B) Outdated and other unusable drugs or devices shall be removed from 
dispensing stock and shall be quarantined together until such drugs or devices 
are disposed of properly. 
(h) Loading bulk drugs into automated compounding devices.
(1) Automated compounding device may be loaded with bulk drugs only by an 
authorized nuclear pharmacist or by supportive personnel under the direction and 
direct supervision of an authorized pharmacist. 
(2) The label of an automated compounding device container shall indicate the 
brand name and strength of the drug; or if no brand name, then the generic name, 
strength, and name of the manufacturer or distributor.
(3) Records of loading bulk drugs into an automated compounding device shall be 
maintained to show: 
(A) name of the drug, strength, and dosage form; 
(B) manufacturer or distributor; 
(C) manufacturer's lot number; 
(D) expiration date; 
(E) quantity added to the automated compounding device; 
(F) date of loading; 
(G) name, initials, or electronic signature of the person loading the automated 
compounding device; and 
(H) name, initials, or electronic signature of the responsible authorized 
nuclear pharmacist. 
(4) The automated compounding device shall not be used until an authorized 
nuclear pharmacist verifies that the system is properly loaded and affixes his 
or her signature or electronic signature to the record specified in paragraph 3 
of this subsection. 
(i) Sterile radiopharmaceuticals. 
(1) Expiration date. 
(A) The expiration date assigned shall be based on: 
(i) established manufacturer's guidelines; 
(ii) published literature; or 
(iii) in-house or contracted stability studies. 
(B) The method for establishing expiration dates shall be documented. 
(2) Radioactive Drug Quality control. There shall be a documented, ongoing 
quality control program that monitors and evaluates personnel performance, 
equipment and facilities. Procedures shall be in place to assure that the 
pharmacy is capable of consistently preparing radiopharmaceuticals which are 
sterile and stable. Quality control procedures shall include, but are not 
limited to, the following: 
(A) recall procedures; 
(B) storage and dating; 
(C) documentation of appropriate functioning of refrigerator, freezer, and other 
equipment; 
(D) documentation of aseptic environmental control device(s) certification at 
least every year and the regular replacement of pre-filters as necessary; 
(E) a process to evaluate and confirm the quality of the prepared 
radiopharmaceutical; and 
(F) documentation of facility maintenance such as cleaning and environmental 
testing. 

sec.291.55. Records. 
(a) Maintenance of records. 
(1) Every inventory or other record required to be kept under this section shall 
be kept by the pharmacy and be available, for at least two years from the date 
of such inventory or record, for inspecting and copying by the board or its 
representative, and other authorized local, state, or federal law enforcement 
agencies. 
(2) Records of controlled substances listed in Schedules I and II shall be 
maintained separately from all other records of the pharmacy.
(3) Records of controlled substances, other than original prescription drug 
orders, listed in Schedules III-V shall be maintained separately or readily 
retrievable from all other records of the pharmacy. For purposes of this 
subsection, "readily retrievable" means that the controlled substances shall be 
asterisked, red-lined, or in some other manner readily identifiable apart from 
all other items appearing on the record. 
(4) Records, except when specifically required to be maintained in original or 
hard-copy form, may be maintained in an alternative data retention system, such 
as a data processing system or direct imaging system provided: 
(A) the records maintained in the alternative system contain all of the 
information required on the manual record; and 
(B) the data processing system is capable of producing a hard copy of the record 
upon the request of the board, its representative, or other authorized local, 
state, or federal law enforcement or regulatory agencies.
(b) Prescriptions. 
(1) Professional responsibility. Pharmacists shall exercise sound professional 
judgment with respect to the accuracy and authenticity of any radioactive 
prescription drug order they dispense. If the pharmacist questions the accuracy 
or authenticity of a radioactive prescription drug order, he/she shall verify 
the order with the practitioner prior to dispensing.
(2) Verbal radioactive prescription drug orders. 
(A) Only an authorized nuclear pharmacist or a pharmacist-intern under the 
direct supervision of an authorized nuclear pharmacist may receive from a 
practitioner or a practitioner's designated agent: 
(i) a verbal therapeutic prescription drug order; or 
(ii) a verbal diagnostic prescription drug order in instances where patient 
specificity is required for patient safety (e.g., radiolabeled blood products, 
radiolabeled antibodies). 
(B) A practitioner shall designate in writing the name of each agent authorized 
by the practitioner to communicate prescriptions verbally for the practitioner. 
The practitioner shall maintain at the practitioner's usual place of business a 
list of the designated agents. The practitioner shall provide a pharmacist with 
a copy of the practitioner's written authorization for a specific agent on the 
pharmacist's request. 
(C) If a radioactive prescription drug order is transmitted to an authorized 
nuclear pharmacist verbally, the pharmacist shall note any substitution 
instructions by the practitioner or practitioner's agent on the file copy of the 
prescription drug order. Such file copy may follow the two-line format indicated 
in paragraph (3)(B) of this subsection, or any other format that clearly 
indicates the substitution instructions. 
(D) A pharmacist may not dispense a verbal radioactive prescription drug order 
for a Schedule III, IV, or V controlled substance issued by a practitioner 
licensed in another state unless the practitioner is also registered under the 
Texas Controlled Substances Act. 
(E) A pharmacist may not dispense a verbal radioactive prescription drug order 
for a dangerous drug or a controlled substance issued by a practitioner licensed 
in the Dominion of Canada or the United Mexican States unless the practitioner 
is also licensed in Texas. 
(3) Written radioactive prescription drug orders.
(A) Practitioner's signature. Written radioactive prescription drug orders shall 
be manually signed by the practitioner (electronically produced or rubber 
stamped signatures may not be used). 
(i) A practitioner may sign a radioactive prescription drug order in the same 
manner as he would sign a check or legal document, e.g., J.H. Smith or John H. 
Smith. 
(ii) The radioactive prescription drug order may not be signed by a 
practitioner's agent but may be prepared by an agent for the signature of a 
practitioner. However, the prescribing practitioner is responsible in case the 
radioactive prescription drug order does not conform in all essential respects 
to the law and regulations. 
(B) Required radioactive prescription drug order format. 
(i) A pharmacist may not dispense a written radioactive prescription drug order 
issued in Texas unless it is ordered on a form containing two signature lines of 
equal prominence, side by side, at the bottom of the form. Under either 
signature line shall be printed clearly the words "product selection permitted," 
and under the other signature line shall be printed clearly the words "dispense 
as written." 
(ii) The two signature line requirement does not apply to the following types of 
radioactive prescriptions drug orders: 
(I) radioactive prescription drug orders issued by a practitioner in a state 
other than Texas; 
(II) radioactive prescription drug orders for dangerous drugs issued by a 
practitioner in the United Mexican States or the Dominion of Canada; and 
(III) radioactive prescription drug orders issued by practitioners practicing in 
a federal facility provided they are acting in the scope of their employment. 
(C) Preprinted radioactive prescription drug order forms. No radioactive 
prescription drug order form furnished to a practitioner shall contain a 
preprinted order for a radiopharmaceutical by brand name, generic name, or 
manufacturer. 
(D) Radioactive prescription drug orders written by practitioners in another 
state. 
(i) Dangerous drug prescription orders. A pharmacist may dispense a radioactive 
prescription drug order for dangerous drugs issued by practitioners in a state 
other than Texas in the same manner as radioactive prescription drug orders for 
dangerous drugs issued by practitioners in Texas are dispensed.
(ii) Controlled substance prescription drug orders. A pharmacist may dispense 
radioactive prescription drug orders for controlled substances in Schedule III, 
IV, or V issued by a practitioner in another state provided:
(I) the radioactive prescription drug order is an original written prescription 
issued by a person practicing in another state and licensed by another state as 
a physician, dentist, veterinarian, or podiatrist, who has a current federal 
Drug Enforcement Administration registration number, and who may legally 
prescribe Schedule III, IV, or V controlled substances in such other state; 
(II) the radioactive prescription drug order is not dispensed or refilled more 
than six months from the initial date of issuance and may not be refilled more 
than five times; and 
(III) if there are no refill instructions on the original written radioactive 
prescription drug order (which shall be interpreted as no refills authorized) or 
if all refills authorized on the original written radioactive prescription drug 
order have been dispensed, a new written radioactive prescription drug order is 
obtained from the prescribing practitioner prior to dispensing any additional 
quantities of controlled substances. 
(E) Radioactive prescription drug orders written by practitioners in the United 
Mexican States or the Dominion of Canada. 
(i) Controlled substance prescription drug orders. A pharmacist may not dispense 
a radioactive prescription drug order for a Schedule II, III, IV, or V 
controlled substance issued by a practitioner licensed in the Dominion of Canada 
or the United Mexican States. 
(ii) Dangerous drug prescription drug orders. A pharmacist may dispense a 
radioactive prescription drug order for a dangerous drug issued by a person 
licensed in the Dominion of Canada or the United Mexican States as a physician, 
dentist, veterinarian, or podiatrist provided: 
(I) the radioactive prescription drug order is an original written prescription; 
and 
(II) if there are no refill instructions on the original written radioactive 
prescription drug order (which shall be interpreted as no refills authorized) or 
if all refills authorized on the original written radioactive prescription drug 
order have been dispensed, a new written radioactive prescription drug order 
shall be obtained from the prescribing practitioner prior to dispensing any 
additional quantities of dangerous drugs. 
(vii) Prescription drug orders for Schedule II controlled substances. No 
Schedule II controlled substance may be dispensed without a written prescription 
drug order of a practitioner on a triplicate prescription form as required by 
the Texas Controlled Substances Act, sec. 481.075. 
(4) Electronic radioactive prescription drug orders. For the purpose of this 
paragraph, electronic radioactive prescription drug orders shall be considered 
the same as verbal radioactive prescription drug orders. 
(A) An electronic radioactive prescription drug order may be transmitted by a 
practitioner or a practitioner's designated agent: 
(i) directly to a pharmacy; or 
(ii) through the use of a data communication device provided:
(I) the prescription information is not altered during transmission; and 
(II) confidential patient information is not accessed or maintained by the 
operator of the data communication device unless the operator is authorized to 
receive the confidential information as specified in subsection (f) of this 
section. 
(B) A practitioner shall designate in writing the name of each agent authorized 
by the practitioner to electronically transmit prescriptions for the 
practitioner. The practitioner shall maintain at the practitioner's usual place 
of business a list of the designated agents. The practitioner shall provide a 
pharmacist with a copy of the practitioner's written authorization for a 
specific agent on the pharmacist's request. 
(C) A pharmacist may not dispense an electronic radioactive prescription drug 
order for a: 
(i) Schedule II controlled substance; 
(ii) Schedule III, IV, or V controlled substance issued by a practitioner 
licensed in another state unless the practitioner is also registered under the 
Texas Controlled Substances Act; or 
(iii) dangerous drug or controlled substance issued by a practitioner licensed 
in the Dominion of Canada or the United Mexican States unless the practitioner 
is also licensed in Texas. 
(D) The practitioner or practitioner's agent shall note any substitution 
instructions on the electronic radioactive prescription drug order. Such 
electronic radioactive prescription drug order may follow the two-line format 
indicated in paragraph (3)(B) of this subsection or any other format that 
clearly indicated the substitution instructions. 
(5) Authorization for generic substitution. 
(A) A pharmacist may dispense a generically equivalent drug product if: 
(i) the generic product cost the patient less than the prescribed drug product; 
(ii) the patient does not refuse the substitution; and 
(iii) the prescribing practitioner authorizes the substitution of a generically 
equivalent product; or 
(iv) the practitioner or practitioner's agent does not clearly indicate that the 
verbal or electronic prescription drug order shall be dispensed as ordered. 
(B) Practitioners shall indicate their dispensing instructions by signing on 
either the "Dispense as Written" or "Product Selection Permitted" line on the 
radioactive prescription drug order. If the practitioner's signature does not 
clearly indicate the radioactive prescription drug order shall be dispensed as 
written, the pharmacist may substitute a generically equivalent drug product. 
(C) A pharmacist may not substitute on radioactive prescription drug orders 
identified in paragraph (3)(D) and (E) of this subsection unless the 
practitioner has authorized substitution on the radioactive prescription drug 
order. 
(D) If the practitioner has not authorized substitution on the written 
radioactive prescription drug order, a pharmacist shall not substitute a 
generically equivalent drug product unless: 
(i) the pharmacist obtains verbal or written authorization from the practitioner 
(such authorization shall be noted on the original radioactive prescription drug 
order); or 
(ii) the pharmacist obtains written documentation regarding substitution 
requirements from the State Board of Pharmacy in the state, other than Texas, in 
which the radioactive prescription drug order was issued. The following is 
applicable concerning this documentation. 
(I) The documentation shall state that a pharmacist may substitute on a 
prescription drug order issued in such other state unless the practitioner 
prohibits substitution on the original prescription drug order. 
(II) The pharmacist shall note on the original radioactive prescription drug 
order the fact that documentation from such other state board of pharmacy is on 
file. 
(III) Such documentation shall be updated yearly. 
(6) Original prescription drug order records.
(A) Original prescriptions shall be maintained by the pharmacy in numerical 
order and remain legible for a period of two years from the date of filling or 
the date of the last refill dispensed. 
(B) If an original prescription drug order is changed, such prescription order 
shall be invalid and of no further force and effect; if additional drugs are to 
be dispensed, a new prescription drug order with a new and separate number is 
required. 
(C) Original prescriptions shall be maintained in one of the following formats: 
(i) in three separate files as follows: 
(I) prescriptions for controlled substances listed in Schedule II; 
(II) prescriptions for controlled substances listed in Schedule III-V; and 
(III) prescriptions for dangerous drugs and nonprescription drugs; or 
(ii) within a patient medication record system provided that original 
prescriptions for controlled substances are maintained separate from original 
prescriptions for noncontrolled substances and triplicate prescriptions for 
Schedule II controlled substances are maintained separate from all other 
original prescriptions. 
(D) Original prescription records other than triplicate prescriptions may be 
stored on microfilm, microfiche, or other system which is capable of producing a 
direct image of the original prescription record, e.g., digitalized imaging 
system. If original prescription records are stored in a direct imaging system, 
the following is applicable. 
(i) The record of refills recorded on the original prescription must also be 
stored in this system. 
(ii) The original prescription records must be maintained in numerical order and 
as specified in subparagraph (C) of this paragraph.
(iii) The pharmacy must provide immediate access to equipment necessary to 
render the records easily readable. 
(7) Prescription drug order information. 
(A) All original radioactive prescription drug orders shall bear: 
(i) name of the patient, if applicable at the time of the order; 
(ii) name of the institution; 
(iii) name, and if for a controlled substance, the address and DEA registration 
number of the practitioner 
(iv) name of the radiopharmaceutical; 
(v) amount of radioactive material contained in millicuries (mCi), microcuries 
(uCi), or bequerels (Bq) and the corresponding time that applies to this 
activity, if different than the requested calibration date and time; 
(vi) date and time of calibration; 
(vii) if a liquid, the volume in milliliters; 
(viii) date of issuance; and 
(ix) if telephoned to the pharmacy by a designated agent, the full name of the 
designated agent. 
(B) All original electronic radioactive prescription drug orders shall bear: 
(i) name of the patient, if applicable at the time of the order; 
(ii) name of the institution; 
(iii) name, and if for a controlled substance, the address and DEA registration 
number of the practitioner 
(iv) name of the radiopharmaceutical; 
(v) amount of radioactive material contained in millicuries (mCi), microcuries 
(uCi), or bequerels (Bq) and the corresponding time that applies to this 
activity, if different than the requested calibration date and time; 
(vi) date and time of calibration; 
(vii) if a liquid, the volume in milliliters; 
(viii) a statement which indicates that the prescription has been electronically 
transmitted (e.g., Faxed to or electronically transmitted to:); 
(ix) name, address, and electronic access number of the pharmacy to which the 
prescription was transmitted; 
(x) telephone number of the prescribing practitioner; 
(xi) date the prescription drug order was electronically transmitted to the 
pharmacy, if different from the date of issuance of the prescription;
(xii) date of issuance; and 
(xiii) if telephoned to the pharmacy by a designated agent, the full name of the 
designated agent. 
(C) At the time of dispensing, a pharmacist is responsible for the addition of 
the following information to the original prescription:
(i) unique identification number of the prescription drug order; 
(ii) initials or identification code of the person who compounded the sterile 
radiopharmaceutical and the pharmacist who checked and released the product; 
(iii) name, quantity, lot number, and expiration date of each product used in 
compounding the sterile radiopharmaceutical; and 
(iv) date of dispensing, if different from the date of issuance.
(8) Refills. A radioactive prescription drug order must be filled from an 
original prescription which may not be refilled.
(c) Policy and procedure manual. 
(1) All nuclear pharmacies shall maintain a policy and procedure manual. The 
nuclear pharmacy policy and procedure manual is a compilation of written policy 
and procedure statements. 
(2) A technical operations manual governing all nuclear pharmacy functions shall 
be prepared. It shall be continually revised to reflect changes in techniques, 
organizations, etc. All pharmacy personnel shall be familiar with the contents 
of the manual. 
(3) The nuclear pharmacy policies and procedures manual shall be prepared by the 
pharmacist-in-charge with input from the affected personnel and from other 
involved staff and committees to govern procurement, preparation, distribution, 
storage, disposal, and control of all drugs used and the need for policies and 
procedures relative to procurement of multisource items, inventory, 
investigational drugs, and new drug applications. 
(d) Other records. Other records to be maintained by a pharmacy:
(1) a permanent log of the initials or identification codes which will identify 
each dispensing pharmacist by name (the initials or identification code shall be 
unique to ensure that each pharmacist can be identified, i.e., identical 
initials or identification codes shall not be used); 
(2) copy 3 of DEA order form (DEA 222) which has been properly dated, initialed, 
and filed, and all copies of each unaccepted or defective order form and any 
attached statements or other documents; 
(3) a hard copy of the power of attorney to sign DEA 222 order forms (if 
applicable); 
(4) suppliers' invoices of dangerous drugs and controlled substances; 
pharmacists or other responsible individuals shall verify that the controlled 
drugs listed on the invoices were actually received by clearly recording their 
initials and the actual date of receipt of the controlled substances; 
(5) suppliers' credit memos for controlled substances and dangerous drugs; 
(6) a hard copy of inventories required by sec.291.17 of this title (relating to 
Inventory Requirements); 
(7) hard-copy reports of surrender or destruction of controlled substances 
and/or dangerous drugs to an appropriate state or federal agency; 
(8) records of distribution of controlled substances and/or dangerous drugs to 
other pharmacies, practitioners, or registrants; and 
(9) a hard copy of any notification required by the Texas Pharmacy Act or these 
sections, including, but not limited to, the following:
(A) reports of theft or significant loss of controlled substances to DEA, DPS, 
and the board; 
(B) notifications of a change in pharmacist-in-charge of a pharmacy; and 
(C) reports of a fire or other disaster which may affect the strength, purity, 
or labeling of drugs, medications, devices, or other materials used in the 
diagnosis or treatment of injury, illness, and disease. 
(e) Permission to maintain central records. Any pharmacy that uses a centralized 
recordkeeping system for invoices and financial data shall comply with the 
following procedures. 
(1) Controlled substance records. Invoices and financial data for controlled 
substances may be maintained at a central location provided the following 
conditions are met. 
(A) Prior to the initiation of central recordkeeping, the pharmacy submits 
written notification by registered or certified mail to the divisional director 
of the Drug Enforcement Administration as required by the Code of Federal 
Regulations, Title 21, sec. 1304.04(a), and submits a copy of this written 
notification to the Texas State Board of Pharmacy. Unless the registrant is 
informed by the divisional director of the Drug Enforcement Administration that 
permission to keep central records is denied, the pharmacy may maintain central 
records commencing 14 days after receipt of notification by the divisional 
director. 
(B) The pharmacy maintains a copy of the notification required in subparagraph 
(A) of this paragraph. 
(C) The records to be maintained at the central record location shall not 
include executed DEA order forms, prescription drug orders, or controlled 
substance inventories, which shall be maintained at the pharmacy. 
(2) Dangerous drug records. Invoices and financial data for dangerous drugs may 
be maintained at a central location. 
(3) Access to records. If the records are kept on microfilm, computer media, or 
in any form requiring special equipment to render the records easily readable, 
the pharmacy shall provide access to such equipment with the records. 
(4) Delivery of records. The pharmacy agrees to deliver all or any part of such 
records to the pharmacy location within two business days of written request of 
a board agent or any other authorized official.
(5) Ownership of pharmacy records. For purposes of these sections, a pharmacy 
licensed under the Act is the only entity which may legally own and maintain 
prescription drug records. 
(f) Confidentiality. 
(1) A pharmacist shall provide adequate security of radioactive prescription 
drug order and patient medication records to prevent indiscriminate or 
unauthorized access to confidential health information. If radioactive 
prescription drug orders, requests for refill authorization, or other 
confidential health information are not transmitted directly between a pharmacy 
and a physician but are transmitted through a data communication device, 
confidential health information may not be accessed or maintained by the 
operator of the data communication device unless specifically authorized to 
obtain the confidential information by this subsection. 
(2) Confidential records are privileged and may be released only to: 
(A) the patient or the patient's agent; 
(B) practitioners and other pharmacists when, in the pharmacist's professional 
judgment, such release is necessary to protect the patient's health and well-
being; 
(C) other persons, the board, or other state or federal agencies authorized by 
law to receive such information; 
(D) a law enforcement agency engaged in investigation of suspected violations of 
the Controlled Substances Act or the Dangerous Drug Act; 
(E) a person employed by any state agency which licenses a practitioner as 
defined in the Act if such person is engaged in the performance of the person's 
official duties; or 
(F) an insurance carrier or other third party payor authorized by a patient to 
receive such information. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717051
Gay Dodson, R.Ph
Executive Director
Texas State Board of Pharmacy
Proposed date of adoption: February 10, 1998
For further information, please call: (512) 305-8026

PART XXI. Texas State Board of Examiners of Psychologists 
CHAPTER 461. General Rulings
22 TAC sec.461.19
The Texas State Board of Examiners of Psychologists proposes an amendment to 
sec.461.19, concerning Standardized Complaint Form. The amendment is being 
proposed in order to clarify and simplify the procedure used by the general 
public to file a complaint, including all necessary information.
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state
or local government as a result of enforcing or administering the rule.
Ms. Lee has also determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to clarify and simplify the procedure used by the general public to file 
a complaint and include all necessary information. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The amendment is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it. 
The proposed amendment does not affect other statutes, articles, or codes.

sec.461.19. Standardized <nl>Complaint<ol> [Grievance] Form. 
(a) All complaints filed against a licensee [and/or certificand] regulated by 
the Board must be submitted to the Board in writing, on the Board approved 
standardized <nl>complaint form<ol> [Grievance Form]. The Board approved 
<nl>complaint form<ol> [Grievance Form] can be obtained free of charge 
<nl>from<ol> [by writing or phoning] the Board's office. 
(b) The Board shall make available to each person who files a complaint: the 
Board approved <nl>complaint form<ol> [Grievance Form], <nl>release of 
information forms<ol>, Rules and Regulations of the Board [and the Board's 
complaint procedures]. 
(c) The <nl>complaint form<ol> [Form] must be physically delivered to the Board 
office to be considered filed. Fax transmittal does not constitute physical 
delivery. 
<nl>(d)<ol> All required release forms must be signed, witnessed and returned to 
the Board, along with the complaint form, before a complaint can be processed. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 19, 1997.
TRD-9717157
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

22 TAC sec.461.20
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas State 
Board of Examiners of Psychologists or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.) 
The Texas State Board of Examiners of Psychologists proposes the repeal of 
sec.461.20, concerning Monitoring of Licensure or Certificate Holder. The rule 
is being repealed in order to make the rules more accessible and easily 
understood by licensees and the public by renumbering this rule as sec.461.30. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the repeal is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule. 
Ms. Lee also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
repeal will be to make the rules more accessible and easily understood by 
licensees and the general public by renumbering this rule as sec.461.30. There 
will be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The repeal is proposed under Texas Civil Statutes, Article 4512c, which provide 
the Texas State Board of Examiners of Psychologists with the authority to make 
all rules, not inconsistent with the Constitution and Laws of this State, which 
are reasonably necessary for the proper performance of its duties and 
regulations of proceedings before it. 
The proposed repeal does not affect other statutes, articles, or codes.
sec.461.20. Monitoring of Licensure or Certificate Holder. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9717158
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

The Texas State Board of Examiners of Psychologists proposes new sec.461.20, 
concerning Complaint Disposition. The new rule is being proposed in order to 
identify the steps taken by the Agency in processing, investigating and 
disposing of complaints in compliance with sec.25B of the Psychologists' 
Licensing Act. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule.
Ms. Lee also has determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to expedite the complaint process, make more efficient use of the 
Board's resources and keep the public and licensees informed of the complaint 
process. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The new rule is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it. 
The proposed new rule does not affect other statutes, articles, or codes.

sec.461.20. Complaint Disposition.
(a) Complaints shall be made in writing on the agency's complaint form. 
(b) A preliminary investigation shall be conducted to determine the identity of 
the person named or described in the complaint and to ensure that the complaint 
is complete. If the staff cannot determine the nature of
the allegations, the complainant will be provided the opportunity to explain the 
allegations made in the complaint. 
(c) A review will be conducted after the preliminary investigation to determine 
if the complaint states an allegation which, if true, would constitute a 
violation of the Board's Act and rules. 
(d) Complaints that do not state a violation of the Board's Act or rules shall 
be returned to the complainant or, if the complaint alleges a violation of 
another agency's Act or rules, shall be referred to the appropriate agency. 
(e) Complaints that state a violation of the Board's Act and rules shall be 
investigated by an investigator assigned by the Manager of the Investigation 
Division. 
(f) Following completion of the investigation, an investigation report shall be 
drafted which includes a recommendation as to whether the investigation has 
produced sufficient evidence to establish probable cause that a violation of the 
Board's Act and rules has occurred. 
(g) The Investigation Division Manager, the Executive Director and counsel for 
the Board shall review the investigation report, evidence and the case file of 
the complaint to determine if there is sufficient evidence to demonstrate a 
violation of the Board's Act, rules, or a Board Order to recommend probable 
cause to the Board. 
(h) A complaint for which the staff determines probable cause shall be referred 
to a Disciplinary Review Panel of the Board for an informal conference. Counsel 
for the Board shall serve the Respondent with a Notice of Violations and 
Informal Settlement Conference which shall serve as notice of the Informal 
Settlement Conference and as notice of the violations for which the staff has 
recommended probable cause. 
(i) A complaint for which the staff determines that probable cause does not 
exist shall be referred to the Board for dismissal. 
(j) A complaint may be returned to the Investigation Division for further 
investigation at any time prior to the setting of a contested case before the 
State Office of Administrative Hearings or final disposition of a complaint by 
the Board. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 19, 1997.
TRD-9717159
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

22 TAC sec.461.21
The Texas State Board of Examiners of Psychologists proposes an amendment to 
sec.461.21, concerning Complaint Investigation. The amendment is being proposed 
in order to ensure that the Board's complaint process is in compliance with the 
statutory mandate of sec.25B of the Psychologists' Licensing Act. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule.
Ms. Lee also has determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to ensure that the Board's complaint process is in compliance with the 
statutory mandate of sec.25B of the Psychologists' Licensing Act. There will be 
no effect on small businesses. There is no anticipated economic cost to persons 
who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The amendment is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it. 
The proposed amendment does not affect other statutes, articles, or codes.

sec.461.21. Complaint Investigation [and Disposition 
(a) The Board has established a priority rating system to distinguish between 
categories of complaints. The priority rating system is as follows: 
(1)-(2) (No change.) 
(3) cases involving current applicants for licensure [as a psychological 
associate, certification as a psychologist, or licensure as a psychologist]; 
(4)-(5) (No change.) 
(b) <nl>The Investigation Division shall dispose of all complaints in a timely 
manner. A schedule shall be established for conducting each phase of a complaint 
that is under the control of the Board not later than the 30th day after the 
date the complaint is received by the Board. The schedule shall be kept in the 
information file of the complaint, and all parties shall be notified of the 
projected time requirements for pursuing the complaint. A change in the schedule 
must be noted in the complaint information file, and all parties to the 
complaint must be notified in writing not later than the seventh day after the 
date the change is made.<ol> [To ensure that complaints are not dismissed 
without appropriate consideration, all complaints will be reviewed by the 
Complaints Review Committee outlined in sec.466.43 of this title (relating to 
Complaints Review Committee)]. 
(c) (No change.) 
[(d) To ensure that a person who files a complaint shall be provided with an 
opportunity to explain the allegations made in the complaint, the complainant 
shall be notified and given an opportunity to appear before a committee of the 
Board. The complainant will be given the opportunity to address either the 
Disciplinary Review Panel or the Complaints Review Committee.] 
<nl>(d)<ol> [(e)] The services of a private investigator shall be retained only 
in the event that staff investigator positions are vacant or inadequate to 
provide essential investigative services. The services of a private 
investigative agency shall be obtained in accordance with the procurement 
procedures of the General Services Commission.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 19, 1997.
TRD-9717160
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

22 TAC sec.461.30
The Texas State Board of Examiners of Psychologists proposes new sec.461.30, 
concerning Monitoring of Licensees. The new rule is being proposed in order to 
make the rules more accessible and easily understood by licensees and the 
public. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule.
Ms. Lee also has determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to clearly identify which division of the Board's office is responsible 
for the monitoring of licensees ordered to perform certain acts by the Board, 
thereby ensuring that those who are required to perform certain acts by the 
Board are providing the best services possible to the general public. There will 
be no effect on small businesses. There is no anticipated economic cost to 
persons who are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The new rule is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it. 
The proposed new section does not affect other statutes, articles, or codes.

sec.461.30. Monitoring of Licensees.
(a) The Compliance Division is responsible for monitoring licensees who are 
ordered by the Board to perform certain acts. The Compliance Division ascertains 
that the licensee performs the required acts within the designated time period. 
(b) The Compliance Division is responsible for implementing the preventative 
approach of the Board to enforcement of the Act and the Rules of the Board by 
identifying and monitoring licensee who represent a risk to the public. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 19, 1997.
TRD-9717161
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

22 TAC sec.461.31
The Texas State Board of Examiners of Psychologists proposes sec.461.31, 
concerning Abolition Date for Psychological Associate Advisory Committee Set for 
September 1, 2005; Board Review of Psychological Associate Advisory Committee. 
The new rule is being proposed in order to ensure compliance with the statutory 
mandate of Texas Government Code, sec.sec.2110.001-2110.008 and the continued 
existence of the Psychological Associate Advisory Committee through the Sunset 
date set for the Agency. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule. 
Ms. Lee also has determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to ensure that the Psychological Associate Advisory Committee is not 
abolished by operation of law pursuant to Texas Government Code, sec.2110.008, 
and ensure for annual review as required by sec.2110.004. There will be no 
effect on small businesses. There is no anticipated economic cost to persons who 
are required to comply with the rule as proposed. 
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
The new rule is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it and Texas Government Code, 
sec.2110.001-2110.008. 
The proposed new section does not affect other statutes, articles, or codes.

sec.461.31. Abolition Date for Psychological Associate Advisory Committee Set 
for September 1, 2005; Board Review of Psychological Associate Advisory 
Committee.
The abolition date for the Psychological Associate Advisory Committee is hereby 
set for September 1, 2005. The Board shall annually review the Committee's work, 
the Committee's usefulness and the costs related to the Committee's existence, 
including the cost of agency staff time spent in support of the Committee's 
activities in conjunction with the Board's budgeting process.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 19, 1997.
TRD-9717162
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

CHAPTER 463. Applications
22 TAC sec.463.5
The Texas State Board of Examiners of Psychologists proposes an amendment to 
sec.463.5, concerning Application File Requirements. The amendment is being 
proposed in order to establish a temporary license for Licensed Specialists in 
School Psychology in compliance with sec.15A of the Psychologists' Licensing Act 
while ensuring that all such licensees meet minimal standards of competency and 
ensuring the protection of the public consumer of psychological services. An 
additional change is being made to bring paragraph (7) in compliance with 
Attorney General Letter Opinion 96-147.
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule.
Ms. Lee also has determined that for each year of the first five years the rule 
is in effect the public benefit anticipated as a result of enforcing the rule 
will be to ensure that the Board is in compliance with the mandate of sec.15A of 
the Psychologists' Licensing Act by creating a mechanism for temporary licensure 
of Licensed Specialist in School Psychology applicants who hold a substantially 
equivalent license in another jurisdiction, as well as ensuring compliance with 
the Psychologists' Licensing Act in general. There will be no effect on small 
businesses. The anticipated economic cost to persons who are required to comply 
with the rule as proposed will be in direct proportion to any cost incurred in 
obtaining required documentation.
Comments on the proposal may be submitted to Janice C. Alvarez, Texas State 
Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 
78701, (512) 305-7700. 
This amendment is proposed under Texas Civil Statutes, Article 4512c, which 
provide the Texas State Board of Examiners of Psychologists with the authority 
to make all rules, not inconsistent with the Constitution and Laws of this 
State, which are reasonably necessary for the proper performance of its duties 
and regulations of proceedings before it. 
The proposed amendment does not affect other statutes, articles or codes.

sec.463.5. Application File Requirements. 
An application file must be complete and contain whatever information or 
examination results the Board requires. An incomplete application remains in the 
active file for 90 days, at the end of which time, if still incomplete, it is 
void. If [certification or] licensure is sought again, a new application and 
filing fee must be submitted. No applicant can have more than one application as 
described in paragraphs (2), (3) and/or (5) of this section pending before the 
Board at one time. For any applicant against whom a complaint is filed with this 
Board, any final decision on the application will be held in abeyance until the 
Board has made a final determination on the complaint filed. If the complaint is 
not resolved within 180 days after an application has been held in abeyance, the 
Board shall review the complaint and make a determination as to whether to issue 
the license notwithstanding the complaint. In making the determination, the 
Board shall consider any relevant factor, including the potential for harm to 
the public if the license is granted, and the nature and severity of the 
allegations. The applicant will be permitted to take all required exams as 
scheduled but will not be [certified or] licensed until approved by the Board. 
(1)-(6) (No change.) 
(7) <nl>Licensure<ol> [License/Certificate] by Reciprocity. A completed 
application for [certification or] licensure by reciprocity with this Board must 
include, in addition to the requirements in paragraph (1) of this section: 
(A) If the applicant is providing psychological services in Texas before 
receiving licensure [or certification] by the Board, proof that the applicant is 
[employed in an] exempt <nl>from the Act pursuant to sec.22<ol> [agency], or 
holds a temporary license [or certificate, or is being supervised by a licensed 
psychologist in an acceptable setting which is appropriate for the 
education/experience background of the applicant]; 
(B)-(G) (No change.) 
(8) Temporary <nl>Licensure<ol> [License/Certificate] <nl>as a Licensed 
Psychologist, Provisionally Licensed Psychologist, Licensed Psychological 
Associate<ol>. 
(A) An application file must be complete and contain whatever information or 
examination results the Board requires. An incomplete application remains in the 
active file for 90 days at the end of which time, if still incomplete, it is 
void. If a temporary license [or certificate] is sought again, a new application 
and filing fee must be submitted. An application for permanent licensure must be 
on file with the Board. 
(B) A completed application for a temporary license [or certificate] must 
include, in addition to the requirements stated in paragraph (1) of this section 
for all applicants: 
(i)-(ii) (No change.) 
[(C) For temporary licensure as a Licensed Specialist in School Psychology, 
proof that the individual has been certified as a National Certified School 
Psychologist, or official transcripts sent directly to the Board from all 
colleges/universities where applicant completed post-baccalaureate course work 
verifying the requirements set forth in Board Rule sec.463.32 of this title 
(relating to Licensed Specialist in School Psychology); and, if the applicant 
did not graduate from either a training program accredited by the National 
Association of School Psychologists or a training program in school psychology 
accredited by the American Psychological Association, proof of the internship.] 
(9) <nl>Temporary Licensure Requirements for an Applicant Seeking Permanent 
Licensure as a Licensed Specialist in School Psychology. <ol> [Applications for 
grandparenting as a licensed specialist in school psychology must include the 
information required in Board Rule sec.463.32 of this title (relating to 
Licensed Specialist in School Psychology).]
<nl>(A)<ol> For purposes of sec.15A, Endorsement, of the Psychologists' 
Licensing Act, an applicant for temporary licensure as a licensed specialist in 
school psychology must establish that the requirements for licensing, 
certification, or registration in the jurisdiction in which the applicant is 
currently licensed "are substantially equal to those prescribed by this Act" by 
demonstrating that: 
<nl>(i)<ol> The jurisdiction requires: 
<nl>(I)<ol> a doctoral degree from a training program accredited in school 
psychology by the American Psychological Association or a graduate degree from a 
training program approved by the National Association of School Psychology 
(NASP) or a graduate degree in psychology from a regionally accredited 
institution and completion of at least sixty graduate credit hours that meet the 
training requirements set forth in sec.463.32(a) of this title (relating to 
Licensed Specialist in School Psychology, Requirements for Licensure); and 
<nl>(II)<ol> the licensee, certificand, or registrant has passed the National 
School Psychology Exam, at the cut-off score required for licensure in Texas, 
and; 
<nl>(ii)<ol> That the license, certificate or registration permits the holder to 
engage in the independent practice of psychology in a public school in that 
jurisdiction. 
<nl>(B)<ol> In addition to establishing that the jurisdiction in which the 
applicant is currently licensed, certified, or registered meets the criteria set 
forth in subparagraph (A) of this paragraph, an applicant for temporary 
licensure must also show: 
<nl>(i)<ol> The applicant holds a current valid National Certification of School 
Psychologists (NCSP) and the applicant is currently licensed, certified, or 
registered in good standing by a jurisdiction's regulatory authority to engage 
in the independent practice of psychology in a public school in that 
jurisdiction; or 
<nl>(ii)<ol> The applicant is licensed in good standing by a jurisdiction's 
psychology board as a school psychologist and that license permits the holder to 
engage in the independent practice of psychology in a public school in that 
jurisdiction. 
<nl>(C)<ol> A completed application for temporary licensure as an LSSP must 
contain, in addition to the requirements set forth for all applications in 
paragraph (1) of this section: 
<nl>(i)<ol> An application on file for permanent licensure as an LSSP; and 
<nl>(ii)<ol> The applicant's NCSP Exam score sent directly from the testing 
service; and 
<nl>(iii)<ol> All relevant transcripts that establish that the applicant has met 
the training requirements set forth in sec.463.32(a) of this title (relating to 
Licensed Specialist in School Psychology, Requirements for Licensure) sent 
directly from the university or college issuing the transcript; and 
<nl>(iv)<ol> Proof of licensure, certification, or registration in good standing 
as required by paragraph (8)(B)(ii) of this section sent directly from the 
jurisdiction that issued the credential; and 
<nl>(v)<ol> If applicable, proof of current NCSP credential in good standing 
sent directly from NASP. 
<nl>(D)<ol> An applicant for temporary licensure is responsible for providing 
the Board with the most current requirements from the jurisdiction in which the 
applicant is currently licensed, certified, or registered for purposes of 
establishing that the jurisdiction's requirements for licensure, certification, 
or registration are substantially equal to those prescribed by this Act as 
defined in this rule. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9717163
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

CHAPTER 466. Procedure
22 TAC sec.466.43
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas State 
Board of Examiners of Psychologists or in the Texas Register office, Room 245, 
James Earl Rudder Building, 1019 Brazos Street, Austin.) 
The Texas State Board of Examiners of Psychologists proposes the repeal of 
sec.466.43, concerning Complaints Review Committee. The rule is being repealed 
in order to identify the steps taken by the Agency in processing, investigating 
and disposing of complaints in complaince with sec.25B of the Psychologists' 
Licensing Act. 
Sherry L. Lee, Executive Director, has determined that for the first five-year 
period the repeal is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering the rule. 
Ms. Lee also has determined that for each year of the first five years the 
repeal is in effect the public benefit anticipated as a result of enforcing the 
repeal will be to expedite the complaint process, make more efficient use of the 
Board's resources and keep the public and licensees informed of the complaint 
process. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the rule as proposed. 
Comments on the repeal may be submitted to Janice C. Alvarez, Texas State Board 
of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 78701, 
(512) 305-7700. 
The repeal is proposed under Texas Civil Statutes, Article 4512c, which provide 
the Texas State Board of Examiners of Psychologists with the authority to make 
all rules, not inconsistent with the Constitution and Laws of this State, which 
are reasonably necessary for the proper performance of its duties and 
regulations of proceedings before it. 
The proposed repeal does not affect other statutes, articles, or codes.
sec.466.43. Complaints Review Committee. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9717164
Sherry L. Lee
Executive Director
Texas State Board of Examiners of Psychologists
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 305-7700

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission 
CHAPTER 50.Action on Applications 
SUBCHAPTER C.Action by Executive Director
30 TAC sec.50.31
The Texas Natural Resource Conservation Commission (commission) proposes an 
amendment to sec.50.31, relating to purpose and applicability of actions by the 
executive director. 
EXPLANATION OF PROPOSED RULE 
The purpose of the proposed amendment is to clarify which matters may be 
delegated to the executive director for action on behalf of the commission. The 
following matters may not be delegated to the executive director: approval of a 
fire department or fire-fighting service plans under Texas Water Code, 
sec.49.351, applications for conversion of a district to a municipal utility 
district under Texas Water Code, sec.54.030, and application for creation of a 
municipal management district under Local Government Code, Chapter 375. Also, 
pursuant to Senate Bill 1865, Acts of the 75th Legislature, 1997, the executive 
director may now be delegated authority to act on applications for creation of a 
district and for approval of standby fees. The executive director may also be 
delegated authority to act on impact fee petitions under Texas Local Government 
Code, Chapter 395; therefore, the proposed amendments delete the reference to 
such petitions in sec.50.31(c), which specifies the matters on which the 
executive director may not act. 
FISCAL NOTE 
Stephen Minick, Strategic Planning and Appropriations Division, has determined 
that for the first five years the section is in effect, there will be no 
significant fiscal implications for state or local government as a result of 
enforcing and administering the section. The effect on state government will be 
a reduction in cost due to delegation to the executive director of routine 
matters. The effect on local government is a reduction in cost due to delegation 
to the executive director of some routine matters. However, the cost reductions 
to state and local governments are not expected to be significant. 
PUBLIC BENEFIT 
Mr. Minick has also determined that for the first five years the section is 
proposed the public benefit anticipated as a result of enforcement of, and 
compliance with, this section will be increased consistency between state 
regulations and statutory authority. The proposed rule does not affect small 
businesses. There are no other anticipated costs to any person required to 
comply with this section as proposed. 
DRAFT REGULATORY IMPACT ANALYSIS
The commission has reviewed the proposed rulemaking in light of the regulatory 
analysis requirements of Texas Government Code, sec.2001.0225 and has determined 
that the rulemaking is not subject to sec.2001.0225 because it does not meet the 
definition of "major environmental rule" as defined in the act. 
TAKINGS IMPACT ASSESSMENT
The Commission has prepared a Takings Impact Assessment for these rules pursuant 
to Texas Government Code Annotated, sec.2007.043. The following is a summary of 
that Assessment. The specific purpose of the rule is to make the rule consistent 
with statutory authority. The rules will substantially advance this specific 
purpose by specifying that certain matters may or may not be delegated to the 
executive director. Promulgation and enforcement of these rules will not burden 
private real property because private real property is not subject to these 
rules. 
CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM (CMP) 
The executive director has reviewed the proposed rulemaking and found that the 
rule is neither identified in Coastal Coordination Act Implementation Rules, 31 
TAC sec.505.11, relating to Actions and Rules Subject to the Coastal Management 
Program, nor will they affect any action/authorization identified in Coastal 
Coordination Act Implementation rules, 31 TAC sec.505.11. Therefore, the 
proposed rule is not subject to the CMP. 
SUBMITTAL OF COMMENTS 
No public hearing is planned for this proposed rule. Written comments on the 
proposal should mention Rule Log No. 97143-293-WT and may be submitted to 
Lutrecia Oshoko, Texas Natural Resource Conservation Commission, Office of 
Policy and Regulatory Development, MC-205, P.O. Box 13087, Austin, Texas 78711-
3087, (512) 239-4640, or faxed to (512) 239-5687. Written comments must be 
received by 5:00 p.m., February 9, 1998. For further information or questions 
concerning this proposal, please contact Sam Jones, Water Utilities Division, at 
239-6167. 
STATUTORY AUTHORITY 
The amended section is proposed under Texas Water Code, sec.5.103, which 
provides the commission the authority to adopt and enforce rules necessary to 
carry out its powers and duties under the laws of this state, and to implement 
Texas Water Code, sec.sec.36.014, 49.011, 49.231, 51.028, 54.018, 55.042, 
58.028, 65.018, and 66.018. 
There are no other statutes implemented by this rule. 

sec.50.31.Purpose and Applicability.
(a) - (b) (No change.) 
(c) This subchapter does not apply to: 
(1)-(4) (No change.)
(5) district matters under Texas Water Code, Chapters 49 - 66, as follows: 
(A)-(D) (No change.)
(E) an application <nl>under Texas Water Code, sec.49.351 for approval of a fire 
department or fire-fighting services plan<ol> [for the creation of a district]; 
or 
(F) an application <nl>under Texas Water Code, sec.54.030 for conversion of a 
district to a municipal utility district<ol> [for approval to impose a standby 
fee]; 
(6)-(10) (No change.)
(11) <nl>an application for creation of a municipal management district under 
Local Government Code, Chapter 375<ol> [impact fee petitions under Local 
Government Code, Chapter 395]; and
(12) (No change.)
(d) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717231
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

CHAPTER 117.Control of Air Pollution from Nitrogen Compounds
The Texas Natural Resource Conservation Commission (TNRCC or commission) 
proposes amendments to sec.117.105, concerning Emission Specifications, 
sec.117.113, concerning Continuous Demonstration of Compliance, sec.117.205, 
concerning Emission Specifications, sec.117.211, concerning Initial 
Demonstration of Compliance, sec.117.213, concerning Continuous Demonstration of 
Compliance, sec.117.451, concerning Applicability, sec.117.510, concerning 
Compliance Schedule for Utility Electric Generation, sec.117.520, concerning 
Compliance Schedule For Commercial, Institutional, and Industrial Combustion 
Sources, sec.117.530, concerning Compliance Schedule For Nitric Acid and Adipic 
Acid Manufacturing Sources, sec.117.540, concerning Phased Reasonably Available 
Control Technology (RACT), and sec.117.601, concerning Gas-Fired Steam 
Generation.
EXPLANATION OF THE PROPOSED RULES. In the Fall of 1997, the TNRCC staff 
completed a major modeling analysis of the airshed of the upper Texas Gulf 
Coast. This study indicated that nitrogen oxides (NO<sub>x) reductions are a 
necessary step toward the area's attaining the federal air quality standard for 
ozone. Because of the modeling and the need to continue steady reductions of the 
pollutants that contribute to ozone smog, on November 24, 1997, the commission 
determined not to seek further federal waivers from the NO<sub>x reduction 
requirements of the 1990 Federal Clean Air Act for the Houston/Galveston (HGA) 
and Beaumont/Port Arthur (BPA) areas. 
The purpose of this rulemaking is to smooth the transition to an ozone control 
strategy for HGA and BPA which includes NO<sub>x reduction. The most important 
proposed revision is to extend the compliance date of the Chapter 117 NO<sub>x 
RACT requirements by six months, to November 30, 1999. The extension would 
provide a two-year period to implement NO<sub>x reductions, from the November 
24, 1997 date that the commission decided to implement a NO<sub>x-based 
strategy. A two-year period is necessary for industry to purchase, install, and 
test the emission control equipment and monitoring systems required by Chapter 
117. 
The other proposed revision to smooth the implementation of the Chapter 117 RACT 
requirements would eliminate the requirement to monitor carbon monoxide (CO) 
continuously for certain units. While CO emissions in some cases may increase as 
a result of NO<sub>x abatement, checking CO emissions periodically will also be 
an effective, but less expensive, means of avoiding problems with excessive CO.
The proposed revision to sec.117.105(j) adjusts the compliance averaging period 
for CO for any electric utility unit which does not use continuous emissions 
monitors (CEMS) or predictive emissions monitors (PEMS) for CO. The proposed 
alternative, an hourly compliance period, is necessary for these units since 
compliance must be determined by manual stack sampling methods. Twenty-four 
hours of continuous manual sampling is impractical. 
The proposed new sec.117.113(k) adds an option to conduct periodic sampling of 
CO instead of using CEMS or PEMS for CO for electric utility units. In addition 
to the initial compliance demonstration for CO, indicator of compliance sampling 
for CO with a hand-held analyzer would be required following manual combustion 
tuning or burner adjustments. This procedure would identify any excessive 
emission that could occur as a result of an effort to minimize NO<sub>x 
emissions. In addition, the acid rain monitoring rules require an annual stack 
test (relative accuracy test audit) for NO<sub>x emissions. A concurrent test of 
CO emissions during this audit will not add to expense and will confirm 
compliance on a periodic basis. 
The proposed revisions to sec.117.205(e) and sec.117.211(f)(3) add the option of 
a 24-hour compliance averaging period for CO for any industrial unit which uses 
a CEMS or PEMS for CO. A 24-hour compliance period, which is practical for units 
which use CEMS or PEMS, is somewhat easier to comply with than an hourly period. 
Adding this option would create a minimal incentive to use CEMS or PEMS for CO. 
The proposed addition of sec.117.213(l) would add an option to conduct periodic 
sampling of CO from industrial units instead of using CEMS or PEMS for CO. In 
addition to the initial compliance demonstration for CO, indicator of compliance 
sampling for CO with a hand-held analyzer would be required following manual 
combustion tuning or burner adjustments. This procedure would identify any 
excessive emission that could occur as a result of an effort to minimize 
NO<sub>x emissions. A concurrent test of CO emissions during the annual relative 
accuracy test audit would confirm compliance on a periodic basis.
The proposed revisions to sec.sec.117.451, 117.510, 117.520, 117.530, 117.540, 
and 117.601 would extend the specified dates of the NO<sub>x RACT rules by six 
months. The compliance date would become November 30, 1999. As previously 
discussed in this preamble, this would create a two-year implementation time 
period, which industry needs. This period is consistent with the original two-
year implementation time frame for the rule and will act to minimize the use of 
the case-specific phased RACT provisions of sec.117.540. The proposed revisions 
to sec.117.510(5) and sec.117.520(4) would consistently extend by six months, to 
January 31, 2000, the submittal date for 30-day rolling average compliance data 
from CEMS or PEMS. Various other dates in sec.117.540 would also be consistently 
extended by six months. 
FISCAL NOTE. Stephen Minick, Strategic Planning and Appropriations, has 
determined that for the first five-year period the revised sections are in 
effect, there will be no significant fiscal implications for state or local 
government as a result of administration or enforcement of the proposed 
compliance extension and monitoring revisions to Chapter 117. 
PUBLIC BENEFIT. Mr. Minick also has determined that for each year of the first 
five years the sections are in effect, the anticipated public benefit will be 
reductions of NO<sub>x, ozone, and other air pollutants. This rulemaking would 
affect existing major stationary sources of NO<sub>x in the HGA and BPA areas. 
Early estimates of the cost of complying with Chapter 117 NO<sub>x RACT 
requirements, which were as high as $900 million, have been substantially 
reduced as the result of rule changes before proposal in 1992 and information 
provided in 1994 in sources' initial control plans. The cost of implementing the 
rule has been revised as a result of information from control plans and is now 
estimated at $280-350 million.
DRAFT REGULATORY IMPACT ANALYSIS. The commission has reviewed the proposed 
rulemaking in light of the regulatory analysis requirements of Texas Government 
Code (the Code), sec.2001.0225, and has determined that the rulemaking is not 
subject to sec.2001.0225 because, while meeting the definition of a "major 
environmental rule" as defined in the Code, it does not meet any of the four 
applicability requirements listed in sec.2001.0225(a). 
This proposal does not exceed a standard set by federal law and is not 
specifically required by state law. This proposal does not exceed an express 
requirement of state law. The purpose of the proposal is to smooth the 
transition to an ozone control strategy that includes NO<sub>x reductions for 
the HGA and BPA areas. 
This proposal 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. There is no delegation 
agreement or contract directly applicable to the proposed rules, and the rules 
do not exceed any requirement of an affected delegated program. 
This proposal does not adopt a rule solely under the general powers of the 
agency instead of under a specific state law. This proposal is adopted under the 
authority of the commission found in Texas Health and Safety Code, sec.382.012 
and sec.382.017. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for the proposed sections under Texas Government Code, sec.2007.043. 
The following is a summary of that assessment. The specific purpose of the 
amendments is to extend the compliance date for NO<sub>x RACT requirements and 
reduce the cost of emission monitoring. If adopted, sources located in the HGA 
and BPA ozone nonattainment areas of the state will have less expensive 
monitoring requirements and additional time to comply with the rules. However, 
there is no restriction or taking of private real property associated with the 
proposed amendments. 
COASTAL MANAGEMENT PLAN. The commission has determined that this rulemaking 
action relates to an action or actions subject to the Texas Coastal Management 
Program (CMP) in accordance with the Coastal Coordination Act of 1991, as 
amended (Texas Natural Resources Code, sec.sec.33.201 et. seq.), and the 
commission's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency 
with the Texas Coastal Management Program. As required by 31 TAC 
sec.505.11(b)(2) and 30 TAC sec.281.45(a)(3) relating to actions and rules 
subject to the CMP, commission rules governing air pollutant emissions must be 
consistent with the applicable goals and policies of the CMP. The commission has 
reviewed this rulemaking action for consistency with the CMP goals and policies 
in accordance with the rules of the Coastal Coordination Council, and has 
determined that this rulemaking action is consistent with the applicable CMP 
goals and policies. Adoption of these proposed amendments should result in 
reductions of ambient NO<sub>x and ozone concentrations.
PUBLIC HEARING. A public hearing on this proposal will be held February 9, 1998, 
at 10:00 a.m. in Room 2210 of Texas Natural Resource Conservation Commission 
(TNRCC) Building F, located at 12100 Park 35 Circle, Austin. The hearing is 
structured for the receipt of oral or written comments by interested persons. 
Individuals may present oral statements when called upon in order of 
registration. Open discussion within the audience will not occur during the 
hearing; however, an agency staff member will be available to discuss the 
proposal 30 minutes prior to each hearing and will answer questions before and 
after the hearing. 
SUBMITTAL OF COMMENTS. Written comments may be mailed to Lisa Martin, TNRCC 
Office of Policy and Regulatory Development, MC 205, P.O. Box 13087, Austin, 
Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule 
Log Number 97181-117-AI. Comments must be received by 5:00 p.m., February 9, 
1998. For further information or questions concerning this proposal, please 
contact Randy Hamilton, Air Policy and Regulations Division, (512) 239-1512. 
Persons with disabilities who have special communication or other accommodation 
needs who are planning to attend the hearings should contact the agency at (512) 
239-4900. Requests should be made as far in advance as possible.

SUBCHAPTER B.Combustion at Existing Major Sources
Utility Electric Generation
30 TAC sec.sec.117.105, 117.113
STATUTORY AUTHORITY. The amendments are proposed under the Texas Health and 
Safety Code, the Texas Clean Air Act (TCAA), sec.382.012, which requires the 
commission to prepare and develop a general, comprehensive plan for the proper 
control of the state's air, and sec.382.017, which authorizes the commission to 
adopt rules consistent with the policy and purposes of the TCAA. 
The proposed amendments implement the Health and Safety Code, sec.382.012.

sec.117.105. Emission Specifications. 
(a)-(i) (No change.) 
(j) No person shall allow the discharge into the atmosphere from any utility 
boiler, steam generator, or auxiliary steam boiler subject to this undesignated 
head (relating to Utility Electric Generation), carbon monoxide (CO) emissions 
in excess of 400 ppmv, based <nl>on a one-hour average for units not equipped 
with continuous emissions monitoring systems (CEMS) or predictive emissions 
monitoring systems (PEMS) for CO, or<ol> on a rolling 24-hour averaging period 
<nl>for units equipped with CEMS or PEMS for CO <ol> . 
(k)-(n) (No change.) 

sec.117.113. Continuous Demonstration of Compliance.
(a)-(j) (No change.) 
<nl>(k)<ol> <nl> Instead of using CEMS for CO, the owner or operator may 
substitute periodic sampling of CO as follows: <ol>
<nl>(1)<ol> <nl> sample CO emissions with a portable analyzer after manual 
combustion tuning or burner adjustments; and <ol>
<nl>(2)<ol> <nl> sample CO emissions using the test procedures of 40 CFR 
Appendix A in conjunction with the annual relative accuracy test audits of the 
NO<sub>x and diluent analyzer.<ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717173
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: April 8, 1998
For further information, please call: (512) 239-1966

Commercial, Institutional, and Industrial Sources
30 TAC sec.sec.117.205, 117.211, 117.213
The amendments are proposed under the Texas Health and Safety Code, the Texas 
Clean Air Act (TCAA), sec.382.012, which requires the commission to prepare and 
develop a general, comprehensive plan for the proper control of the state's air, 
and sec.382.017, which authorizes the commission to adopt rules consistent with 
the policy and purposes of the TCAA.
The proposed amendments implement the Health and Safety Code, sec.382.012.

sec.117.205. Emission Specifications. 
(a)-(d) (No change.) 
(e) No person shall allow the discharge into the atmosphere from any boiler or 
process heater subject to NO<sub>x emission specifications in subsection (a) or 
(b) of this section, CO emissions in excess of the following limitations [, 
based on a block one-hour average (1) for gas or liquid fuel-fired boilers or 
process heaters, 400 ppmv at 3.0% O<sub>2, dry basis; [or]
(2) for wood fuel-fired boilers or process heaters, 775 ppmv at 7.0% O<sub>2, 
dry basis<nl>; and<ol> [
<nl>(3)<ol> <nl> for units equipped with continuous emissions monitoring systems 
(CEMS) or predictive emissions monitoring systems (PEMS) for CO, the limits of 
paragraphs (1) and (2) of this subsection shall apply on a rolling 24-hour 
averaging period. For units not equipped with CEMS or PEMS for CO, the limits 
shall apply on a one-hour average.<ol>

sec.117.211.Initial Demonstration of Compliance.
(a)-(e) (No change.) 
(f) Initial compliance with the emission specifications of sec.117.205 or 
sec.117.207 of this title for units operating with CEMS in accordance with 
sec.117.213(b) of this title, or PEMS in accordance with sec.117.213(c) of this 
title, shall be demonstrated using the CEMS or PEMS as follows. 
(1)-(2) (No change.) 
(3) For units complying with a CO emission limit, <nl> rolling 24-hour 
average<ol>[block one-hour average], any <nl> 24-hour<ol> [one-hour] period 
after CEMS certification testing required in sec.117.213(b) of this title or 
PEMS certification testing required in sec.117.213(c) of this title is used to 
determine compliance with the CO emission limit. 

sec.117.213. Continuous Demonstration of Compliance.
(a)-(k) (No change.) 
<nl>(l)<ol> <nl> Instead of using CEMS or PEMS for CO, the owner or operator may 
substitute periodic sampling of CO as follows:<ol>
<nl>(1)<ol> <nl> sample CO emissions with a portable analyzer after manual 
combustion tuning or burner adjustments; and <ol>
<nl>(2)<ol> <nl> sample CO emissions using the test procedures of 40 CFR 
Appendix A in conjunction with an annual relative accuracy test audits of the 
NO<sub>x and diluent analyzer.<ol> 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717172
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: April 8, 1998
For further information, please call: (512) 239-1966

SUBCHAPTER C.Acid Manufacturing
Nitric Acid Manufacturing-General
30 TAC sec.117.451
The amendment is proposed under the Texas Health and Safety Code, the Texas 
Clean Air Act (TCAA), sec.382.012, which requires the commission to prepare and 
develop a general, comprehensive plan for the proper control of the state's air, 
and sec.382.017, which authorizes the commission to adopt rules consistent with 
the policy and purposes of the TCAA.
The proposed amendment implements the Health and Safety Code, sec.382.012.

sec.117.451. Applicability. 
The emission limitations specified in sec.117.455 of this title (relating to 
Emission Specifications) shall apply to all nitric acid production units in the 
state, with the exception that for nitric acid production units located in 
applicable ozone non-attainment areas, the emission limitations of sec.117.405 
of this title (relating to Emission Specifications) shall apply after <nl> 
November 30<ol> [May 31], 1999. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717171
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: April 8, 1998
For further information, please call: (512) 239-1966

SUBCHAPTER D.Administrative Provisions
30 TAC 117.510, 117.520, 117.530, 117.540
The amendments are proposed under the Texas Health and Safety Code, the Texas 
Clean Air Act (TCAA), sec.382.012, which requires the commission to prepare and 
develop a general, comprehensive plan for the proper control of the state's air, 
and sec.382.017, which authorizes the commission to adopt rules consistent with 
the policy and purposes of the TCAA. 
The proposed amendments implement the Health and Safety Code, sec.382.012.

sec.117.510. Compliance Schedule For Utility Electric Generation. 
All persons affected by the provisions of sec.sec.117.101, 117.103, 117.105, 
117.107, 117.109, 117.111, 117.113, 117.115, 117.117, 117.119, and 117.121 of 
this title (relating to Utility Electric Generation) shall be in compliance as 
soon as practicable, but no later than <nl>November 30<ol> [May 31], 1999 (final 
compliance date). Additionally, all affected persons shall meet the following 
compliance schedules and submit written notification to the Executive Director:
(1) (No change.) 
(2) conduct applicable continuous emissions monitoring system (CEMS) or 
predictive emissions monitoring systems (PEMS) evaluations and quality assurance 
procedures as specified in sec.117.113 of this title (relating to Continuous 
Demonstration of Compliance) according to the following schedules: 
(A) (No change.) 
(B) for equipment and software not required pursuant to 40 CFR 75, no later than 
<nl>November 30<ol> [May 31], 1999. 
[sub]x[sub]x control techniques, and submit the results of the CEMS or PEMS 
performance evaluation and quality assurance procedures to the Texas Natural 
Resource Conservation Commission no later than <nl>November 30<ol> [May 31], 
1999; 
(4) for units operating without CEMS or PEMS, conduct applicable tests for 
initial demonstration of compliance as specified in sec.117.111 of this title 
(relating to Initial Demonstration of Compliance); and submit the results by 
April 1, 1994, or as early as practicable, but in no case later than 
<nl>November 30<ol> [May 31], 1999;
(5) for units operating with CEMS or PEMS and complying with the NO<sub>x 
emission limit on a rolling 30-day average, conduct the applicable tests for the 
initial demonstration of compliance as specified in sec.117.111 of this title 
and submit the results of the applicable CEMS or PEMS performance evaluation and 
quality assurance procedures as specified in sec.117.113 of this title no later 
than <nl>January 31, 2000<ol> [July 31, 1999];
(6) for units operating with CEMS or PEMS and complying with the NO<sub>x 
emission limit in pounds per hour on a block one-hour average, conduct the 
applicable tests for the initial demonstration of compliance as specified in 
sec.117.111 of this title and submit the results of the applicable CEMS or PEMS 
performance evaluation and quality assurance procedures as specified in 
sec.117.113 of this title by <nl> November 30<ol> [May 31], 1999; 
(7) (No change.) 
(8) no later than <nl>November 30<ol> [May 31], 1999, submit a final control 
plan for compliance in accordance with sec.117.115 of this title (relating to 
Final Control Plan Procedures).

sec.117.520. Compliance Schedule For Commercial, Institutional, and Industrial 
Combustion Sources. 
All persons affected by the provisions of sec.sec.117.201, 117.203, 117.205, 
117.207-117.209, 117.211, 117.213, 117.215, 117.217, 117.219, 117.221, and 
117.223 of this title (relating to Commercial, Institutional, and Industrial 
Sources) shall be in compliance as soon as practicable, but no later than <nl> 
November 30<ol> [May 31, 1999] (final compliance date). All affected persons 
shall meet the following compliance schedules and submit written notification to 
the Executive Director: 
(1) (No change.) 
[sub]x abatement equipment and implement all NO<sub>x control techniques no 
later than <nl>November 30<ol> [May 31], 1999;
(3) for units operating without continuous emissions monitoring system (CEMS) or 
predictive emissions monitoring systems (PEMS), conduct applicable tests for 
initial demonstration of compliance as specified in sec.117.211 of this title 
(relating to Initial Demonstration of Compliance); and submit the results by 
April 1, 1994, or as early as practicable, but in no case later than 
<nl>November 30<ol> [May 31], 1999; 
(4) for units operating with CEMS or PEMS and complying with the NO<sub>x 
emission limit on a rolling 30-day average, conduct the applicable tests for the 
initial demonstration of compliance as specified in sec.117.211 of this title 
and submit the results of the applicable CEMS or PEMS performance evaluation and 
quality assurance procedures as specified in sec.117.213 of this title (relating 
to Continuous Demonstration of Compliance) no later than <nl>January 31, 
2000<ol> [July 31, 1999
(5) for units operating with CEMS or PEMS and complying with the NO<sub>x 
emission limit in pounds per hour on a block one-hour average, conduct the 
applicable tests for the initial demonstration of compliance as specified in 
sec.117.211 of this title and submit the results of the applicable CEMS or PEMS 
performance evaluation and quality assurance procedures as specified in 
sec.117.213 of this title by <nl> November 30<ol> [May 31], 1999; and 
(6) no later than <nl>November 30<ol> [May 31], 1999, submit a final control 
plan for compliance in accordance with sec.117.215 of this title (relating to 
Final Control Plan Procedures).

sec.117.530. Compliance Schedule For Nitric Acid and Adipic Acid Manufacturing 
Sources.
All persons affected by the provisions of sec.sec.117.301, 117.305, 117.309, 
117.311, 117.319, and 117.321 of this title (relating to Adipic Acid 
Manufacturing) or the provisions of sec.sec.117.401, 117.405, 117.409, 117.411, 
117.413, 117.419, and 117.421 of this title (relating to Nitric Acid 
Manufacturing - Ozone Nonattainment Areas) shall be in compliance as soon as 
practicable, but no later than <nl>November 30<ol> [May 31], 1999 (final 
compliance date). All affected persons shall meet the following compliance 
schedules and submit written notification to the Executive Director:
(1) (No change.) 
(2) conduct applicable continuous emissions monitoring system (CEMS) or 
predictive emissions monitoring systems (PEMS) performance evaluation and 
quality assurance procedures as specified in sec.117.313 of this title (relating 
to Continuous Demonstration of Compliance) and sec.117.413 of this title 
(relating to Continuous Demonstration of Compliance); provide previous testing 
documentation for any claimed test waiver as allowed by sec.117.311(d) of this 
title (relating to Initial Demonstration of Compliance) or sec.117.411(d) of 
this title (relating to Initial Demonstration of Compliance); and conduct 
applicable initial demonstration of compliance testing as specified in 
sec.117.311 and sec.117.411 of this title, by: 
(A) (No change.) 
(B) no later than <nl>November 30<ol> [May 31, 1999], for affected facilities 
performing process modification or installation of a CEMS or PEMS device as part 
of the control plan specified in sec.117.309 and sec.117.409 of this title; 
(3) (No change.) 

sec.117.540. Phased Reasonably Available Control Technology (RACT). 
The owner or operator affected by the provisions of this chapter (relating to 
Control of Air Pollution from Nitrogen Compounds) who determines that compliance 
by <nl>November 30, 1999<ol> [May 31, 1999] is not practicable may submit a 
petition for phased RACT. The process for submitting a petition and receiving 
approval shall be based on the following: 
(1) The petition shall be submitted by <nl>April 1, 1999 <ol> [October 1, 1998], 
or as soon as possible after such date upon a demonstration by the owner or 
operator that the petition was not submitted by <nl>April 1, 1999<ol> [October 
1, 1998] due to unforeseen circumstances. 
(2) The owner or operator of the affected unit or units shall submit information 
in the petition to the Texas Natural Resource Conservation Commission 
(commission) and a copy to the United States Environmental Protection Agency 
(EPA) Regional Office in Dallas which will demonstrate all of the following:
(A) (No change.) 
(B) compliance by <nl>November 30, 1999<ol> [May 31, 1999] is impracticable due 
to the unavailability of nitrogen oxides (NO<sub>x) abatement equipment, 
engineering services, or construction labor; system unreliability; manufacturing 
unreliability; equipment unreliability; or other technological and economic 
factors as the commission determines are appropriate; 
(C) (No change.) 
(D) there is a commitment to implement the portion of the phased RACT petition 
that can be implemented by <nl>November 30, 1999<ol> [May 31, 1999]; and 
(E) the final compliance date specified in the petition shall be as soon as 
practicable, but in no case later than <nl>February 28, 2001 <ol> [August 31, 
2000], except as approved by the executive director.
(3) Each petition for phased RACT shall contain the information required by at 
least one of the following criteria. 
(A) If compliance by <nl>November 30, 1999<ol> [May 31, 1999[sub]x abatement 
equipment, engineering services, or construction labor, the following 
information shall be included in the petition for phased RACT:
(i) a list of the company names, addresses, and telephone numbers of vendors who 
are qualified to provide the services and equipment capable of meeting the 
applicable emission limitation under this chapter and who have been contacted to 
obtain the required services and equipment. A copy of the request for bids along 
with the dates of contact shall also be provided to show a good-faith effort to 
obtain the required services and equipment necessary to meet the requirements of 
this chapter by <nl>November 30, 1999 <ol> [May 31, 1999]; and 
(ii) copies of responses from each of the vendors listed in clause (i) of this 
subparagraph showing that they cannot provide the necessary services and install 
the appropriate equipment in time for the unit to comply by <nl>November 30, 
1999<ol> [May 31, 1999]. Such responses shall include the reasons why the 
services cannot be provided and why the equipment cannot be installed in a 
timely manner. 
(iii) (No change.) 
(B) If compliance by <nl>November 30, 1999<ol> [May 31, 1999] is impracticable 
due to system unreliability for sources in the utility industry, defined as the 
inability or threatened inability of a utility grid system to fulfill 
obligations to supply electric power, the following information shall be 
included in the petition for phased RACT:
(i) standard load forecasts, based on standard forecasting models available 
throughout the utility industry, applied to the period <nl> November 30, 1997-
November 29, 1999<ol> [May 31, 1997- May 30, 1999
(ii) (No change.) 
(iii) specific reasons why an outage for the purpose of installing NO<sub>x 
emission control equipment cannot be scheduled by <nl>November 30, 1999<ol> [May 
31, 1999]. 
(C) If compliance by <nl>November 30, 1999<ol> [May 31, 1999] is impracticable 
due to manufacturing unreliability, defined as the inability or threatened 
inability of a source to fulfill contractual obligations to supply a product or 
products, the following information shall be included in the petition for phased 
RACT: 
(i)-(ii) (No change.) 
(iii) specific reasons why an outage for the purpose of installing NO<sub>x 
emission control equipment cannot be scheduled by <nl>November 30, 1999<ol> [May 
31, 1999]. 
(D) If compliance by <nl>November 30, 1999<ol> [May 31, 1999] is impracticable 
due to equipment unreliability, defined as the reduced availability and 
operating reliability of a unit resulting from the operation of NO<sub>x control 
equipment on that unit, the following information shall be included in the 
petition for phased RACT: 
(i)-(iv) (No change.) 
(E) If compliance by <nl>November 30, 1999<ol> [May 31, 1999] is impracticable 
due to other technical factors, the petition for phased RACT shall contain such 
documentation as the executive director establishes is appropriate for such 
technical factors. 
(F) If compliance by <nl>November 30, 1999<ol> [May 31, 1999] is unreasonable 
due to economic considerations, excluding the time value of money, the petition 
for phased RACT shall contain the following information showing comparisons of 
the cost of compliance by <nl>November 30, 1999<ol> [May 31, 1999] and the cost 
of compliance by the final compliance date specified in the petition: 
(i) the costs of additional outages, if applicable, necessitated by compliance 
with the emission specifications of this chapter by <nl>November 30, 1999<ol> 
[May 31, 1999], as demonstrated by comparison to costs of actual historical and 
planned outages; 
[sub] x abatement equipment, engineering services, or construction labor 
necessary to comply by <nl>November 30, 1999<ol> [May 31, 1999], and the cost of 
obtaining the NO<sub>x abatement equipment, engineering services, or 
construction labor by the final compliance date specified in the petition. 
Copies of legally binding contracts, signed by an authorized official of the 
company, shall be submitted to document these costs. If the required NO<sub>x 
abatement equipment, engineering services, or construction labor will be 
provided by the owner or operator, as provided for in paragraph (4) of this 
subsection, certification by an authorized official of the company may be 
submitted in lieu of contracts to document these costs; or 
(iii) (No change.) 
(4) (No change.) 
(5) All petitions for phased RACT shall include copies of legally binding 
contracts with the primary vendors for each project, signed by an authorized 
official of the company, showing a detailed design or installation schedule for 
the required services or equipment to be provided by that vendor, with a 
completion date no later than <nl>February 28, 2001<ol> [August 31, 2000], 
except as approved by the executive director. Any commercially sensitive 
financial information or trade secrets should be excised from the contracts. 
(6) (No change.) 
(7) The executive director shall approve or deny the petition within 90 days of 
receiving an administratively complete phased RACT petition. The executive 
director shall approve a petition for phased RACT if the executive director 
determines that compliance is not practicable by <nl> November 30, 1999<ol> [May 
31, 1999], because of either the unavailability of nitrogen oxides abatement 
equipment, engineering services, or construction labor; system unreliability; 
manufacturing unreliability; equipment unreliability; or other technological and 
economic factors as the executive director determines are appropriate. 
(8)-(10) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717170
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: April 8, 1998
For further information, please call: (512) 239-1966

SUBCHAPTER E.Gas-Fired Steam Generation
30 TAC sec.117.601
The amendment is proposed under the Texas Health and Safety Code, the Texas 
Clean Air Act (TCAA), sec.382.012, which requires the commission to prepare and 
develop a general, comprehensive plan for the proper control of the state's air, 
and sec.382.017, which authorizes the commission to adopt rules consistent with 
the policy and purposes of the TCAA. 
The proposed amendment implements the Health and Safety Code, sec.382.012.

sec.117.601. Gas-Fired Steam Generation. 
(a) Subsections (b), (c), and (d) of this section shall apply only in the 
Dallas/Fort Worth Air Quality Control Region which consists of Collin, Cooke, 
Dallas, Denton, Ellis, Erath, Fannin, Grayson, Hood, Hunt, Johnson, Kaufman, 
Navarro, Palo Pinto, Parker, Rockwall, Somervell, Tarrant, and Wise counties and 
in the Houston/Galveston Air Quality Control Region which consists of Austin, 
Brazoria, Chambers, Colorado, Fort Bend, Galveston, Harris, Liberty, Matagorda, 
Montgomery, Waller, and Wharton counties. For gas-fired steam generators located 
in applicable ozone nonattainment areas, only the emission limitations of 
sec.117.105 of this title (relating to Emission Specifications), sec.117.107 of 
this title (relating to Alternative System-Wide Emission Specifications), 
sec.117.205 of this title (relating to Emission Specifications), and sec.117.207 
of this title (relating to Alternative Plant-Wide Emission Specifications) shall 
apply after <nl>November 30<ol> [May 31], 1999. 
(b)-(e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717169
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Proposed date of adoption: April 8, 1998
For further information, please call: (512) 239-1966

CHAPTER 293.Water Districts
The Texas Natural Resource Conservation Commission (commission) proposes 
amendments to sec.sec.293.5, 293.11-293.13, 293.15, 293.41, 293.47, 293.48, 
293.51, 293.54, 293.62, 293.64, 293.65, 293.67, 293.69, 293.70, 293.80, 293.81, 
293.83, 293.84, 293.94, 293.96, 293.101, 293.125, 293.131, 293.133, 293.145, 
293.171, 293.173, 293.174, 293.180, 293.361, 293.365, and new sec.293.89 and 
sec.293.112 relating to Water Districts. 
EXPLANATION OF PROPOSED RULE 
The purpose of the proposed amendments and new rules are to incorporate new 
requirements relating to the administration of water districts and the 
commission's supervision over their actions as provided by SB 1865, Acts of the 
75th Legislature, 1997 which related to the administration, management, 
operation, and authority of water districts. The proposed amendments would also 
incorporate new references and requirements related to priority groundwater 
management areas required by SB 1, Acts of the 75th Legislature, 1997. The 
proposed amendments would also make several procedural changes related to the 
agency's oversight of water districts designed to clarify the responsibilities 
of water districts, or to clarify the intent of the rules. Additionally, these 
amendments update definitions to conform to 30 TAC Chapter 3 and make other 
wording changes to generally conform to agency usage. 
The proposed amendment to sec.293.5, will extend the time for the commission to 
hold a hearing on the filing of a request from 10 days to 19 days to give staff 
time to process and review the request prior to the hearing. 
The proposed amendments to sec.293.11(b) would update references to conform to 
SB 1, 75th Legislature, 1997. Proposed amendments to sec.293.11 delete 
subsection (d)(8) because the requirements are duplicated in subsection (d)(7). 
Section 293.11(d)(7) remains in effect. All applicants subject to the Texas 
Water Code, sec.54.016 will have to continue to insure that the municipal 
consent fully complies with that statute. The proposed amendment to 
sec.293.11(h)(9) clarifies the requirements for dissolution of a water supply 
corporation that is converted to a special utility district. 
The proposed amendments to sec.293.12 and sec.293.13 consolidate notice and 
hearing requirements for creation of various types of districts pursuant to the 
statutory changes made by SB 1865. The proposed amendments will create one 
procedure for the creation of most types of water districts and also allow the 
commission to create districts, which are not protested, without having to hold 
a hearing. The proposed amendments to former sec.293.12(f), which is to be 
renumbered as sec.293.12(e), clarify the additional notice requirements for 
creation of a special utility district and approval of an impact fee, if 
requested. 
The proposed amendments to sec.293.15 are to make the rule conform to statutory 
requirements for conversion of a district to a municipal utility district under 
Texas Water Code, sec.54.030. 
The proposed amendments to sec.293.41 would require Drainage Districts and Levee 
Improvement Districts to obtain commission approval before issuance of bonds and 
also add a reference to provide that the bond approval requirements apply to 
proceeds of a contract tax that are used to reimburse a developer. In addition, 
the proposed amendments clarify that the definition of bond applies to the 
entire subchapter and that all of the subchapter related to issuance of bonds 
applies to revenue notes or contract tax revenues used to reimburse developers. 
The proposed amendment to sec.293.41(c) is to clarify that districts meeting the 
test of that subsection are exempt from all the commission rules related to the 
issuance of bonds. 
The proposed amendments to sec.293.47(d)(5) clarify the intent of the commission 
to consider costs associated with constructing lift stations and force mains 
connecting the district's system to regional wastewater trunklines the same as 
connecting to a regional wastewater facility and therefore eligible for 100 
percent reimbursement on a sale of the system to the district by the developer. 
The proposed amendment to sec.293.48(a)(1) deletes the reference to a hearing 
which is no longer required. 
The proposed amendment to sec.293.51(b) clarifies that the basis of 
reimbursement to a developer for land can include the interest on any borrowed 
funds the developer used to acquire the land, at the rate of the lesser of the 
net effective interest rate on the bonds sold, or the interest rate actually 
paid by the developer. If the developer did not use borrowed funds, the net 
effective interest rate on the bonds may be used to calculate eligible interest 
reimbursement expense. The proposed subsection also clarifies that taxes as well 
as interest on the land are eligible reimbursable expenses. 
The proposed amendments to sec.293.67 and sec.293.69 address repairing or 
accounting for damages to project facilities prior to purchase and immediately 
after purchase by the district, during the transfer of the project facilities. 
The proposed amendments to sec.293.80 exempt those districts issuing revenue 
notes to other governmental agencies from having to obtain commission approval. 
The proposed new sec.293.89 would require approval of the executive director for 
obligations to collect taxes for debt that exceed three years, if the district 
is required under the Texas Water Code, sec.49.181 to obtain commission approval 
for bond issuance. The proposed rule also sets out the information requirements 
of the application for this type of approval. 
The proposed amendments to sec.293.94 would exempt those districts which collect 
taxes, if total revenues, including tax revenue, is less than $100,000, from 
having to file audited financial reports, as provided in Texas Water Code 
sec.49.198, as amended. 
The proposed new sec.293.112 would require districts to adopt rules providing 
for notice to the district before starting any construction or improvement on 
property in the district, pre- and post-construction inspection of district 
facilities, and repair of any damages prior to connection for service by the 
district. 
The proposed amendments to sec.293.145 are to establish notice requirements for 
standby fee applications as provided in SB 1865 and will also allow the 
commission to approve standby fees, which are not protested, without having to 
hold a hearing. 
Proposed amendments to sec.293.171 are intended to exempt certain tap fees and 
retail or wholesale service, financed by revenue bonds, to nontaxable entities, 
from the notice and approval process required for impact fees. 
Proposed amendments to sec.293.173 and sec.293.174 are intended to establish 
notice requirements for impact fee applications similar to those as provided for 
standby fees in SB 1865 and will allow the commission to approve impact fees, 
which are not protested, without having to hold a hearing. 
Other proposed amendments would change word usage to conform to the definitions 
in 30 TAC Chapter 3, word usage in this chapter generally, and to correct 
references. 
FISCAL NOTE 
Stephen Minick, Strategic Planning and Appropriations Division, has determined 
that, for the first five years these sections as proposed are in effect, there 
will be no significant fiscal implications for state or local government as a 
result of enforcing and administering the sections. The effects on state 
government will be a reduction in cost due to allowing the commission to create 
certain water districts and approve certain impact fees that are not protested 
without having to hold a hearing. In addition there would be a cost reduction 
due to the elimination of commission approval for water district revenue notes 
issued to other governmental agencies. However, these cost reductions are not 
anticipated to be significant. The general law water districts subject to these 
regulations are local governments. The effect on these units of local government 
is a slight decrease in costs because notice and hearing procedures are proposed 
to be streamlined and commission approval of those water districts issuing 
revenue notes to other governmental agencies is eliminated. 
PUBLIC BENEFIT 
Mr. Minick has also determined that for the first five years these sections as 
proposed are in effect the public benefit anticipated as a result of enforcement 
of and compliance with these sections will be the clarification of existing 
state regulations for districts, increased consistency between state regulations 
and statutory authority, and more consistent management of the financial 
operations of districts. The proposed rules do not affect small businesses. 
There are no other anticipated costs to any person required to comply with these 
sections as proposed. 
DRAFT REGULATORY IMPACT ANALYSIS 
The commission has reviewed the proposed rulemaking in light of the regulatory 
analysis requirements of Texas Government Code, sec.2001.0225 and has determined 
that the rulemaking is not subject to sec.2001.0225 because it does not meet the 
definition of "major environmental rule" as defined in the act. 
TAKINGS IMPACT ASSESSMENT 
The commission has prepared a Takings Impact Assessment for these rules pursuant 
to Texas Government Code Annotated, sec.2007.043. The following is a summary of 
that Assessment. The specific purpose of the rule is to adopt new requirements 
relating to the administration of water districts and the commission's 
supervision over their actions as provided by SB 1865, Acts of the 75th 
Legislature, 1997, and to incorporate new references and requirements related to 
priority groundwater management areas required by SB 1, Acts of the 75th 
Legislature, 1997, to clarify the intent of the rules, to streamline the 
agency's procedures, and to update definitions to conform to 30 TAC Chapter 3 
and make other wording changes to conform to general agency usage. The rules 
will substantially advance this specific purpose by providing a procedure for 
public notice and hearing for applications for creation of water districts, 
delegating routine functions to the executive director, allowing the commission 
to create districts and approve standby fees that are uncontested without a 
hearing, and exempting districts issuing revenue notes to other governmental 
agencies from having to seek agency approval. Promulgation and enforcement of 
these rules will not burden private real property because private real property 
is not subject to these rules. 
CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM (CMP) 
The executive director has reviewed the proposed rulemaking and found that the 
rule is neither identified in Coastal Coordination Act Implementation Rules, 31 
TAC sec.505.11, relating to Actions and rules subject to the Coastal Management 
Program, nor will they affect any action/authorization identified in Coastal 
Coordination Act Implementation rules, 31 TAC sec.505.11. Therefore, the 
proposed rules are not subject to the CMP. 
SUBMITTAL OF COMMENTS 
No public hearing is planned for this proposed rule. Written comments on the 
proposal should mention Rule Log No. 97143-293-WT and may be submitted to 
Lutrecia Oshoko, Texas Natural Resource Conservation Commission, Office of 
Policy and Regulatory Development, MC-205, P.O. Box 13087, Austin, Texas 78711-
3087, (512) 239-4640, or faxed to (512) 239-5687. Written comments must be 
received by 5:00 p.m., February 9, 1998. For further information or questions 
concerning this proposal, please contact Sam Jones, Water Utilities Division, at 
239-6167. 

General Provisions
30 TAC sec.293.5
STATUTORY AUTHORITY
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.5.Petition to Commission.
The provisions of Chapter 281 of this title (relating to Applications 
Processing) [to the contrary] notwithstanding, in the event that the executive 
director has not forwarded to the commission a memorandum recommending
approval or disapproval of any application or request required or permitted
under this chapter within 90 days after receipt thereof, the petitioner may
request that the commission immediately consider such matter on the basis
of the materials and data on file with the commission. Within <nl>19<ol>
[10] days after the filing of the request, the commission shall
hold a hearing on the request. If the commission determines that sufficient
material and data have been provided, the commission shall direct the executive
director to present to the commission a complete memorandum on the application
within 10 days. If the commission determines that sufficient material and
data have not been provided, the commission shall specify the additional 
information
and material to be submitted by petitioner. An order directing the executive
director to prepare the memorandum shall in no way prejudice the action which
the commission may take on the merits of the application. 

This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717234
Kevin McCalla

Director, Legal Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: February 9, 1998

For further information, please call: (512) 239-4640

Creation of Water Districts 
30 TAC sec.sec.293.11-293.13, 293.15 
The sections are proposed under Texas Water Code, sec.5.103,
which provides the Texas Natural Resource Conservation Commission with the
authority to adopt any rules necessary to carry out its powers and duties
under the Texas Water Code and other laws of the State of Texas. Section 293.12
is also proposed under Texas Water Code, sec.49.011, which requires the
commission to establish a procedure by rule for public notice and hearing
for applications for creation of general law water districts. 

There are no other statutes implemented by this rule. 

sec.293.11.Information Required to Accompany Applications
for Creation of Districts.
(a) (No change.) 

(b) Creation applications for Chapter 36, Texas Water Code,
Groundwater Conservation Districts shall contain the items listed in subsection
(a) of this section and the following items: 

(1) a petition containing the <nl>items<ol> [matters
] required by Texas Water Code, sec.36.013, signed by the majority
of the landowners in the proposed district, or if there are more than 50 
landowners,
at least 50 of those landowners. The petition shall include the following:
(A) - (E) (No change.) 

(2) evidence that the boundaries are coterminous
with or inside the boundaries of a delineated groundwater management area, <nl>
priority groundwater management<ol> [critical] area, or <nl>
groundwater<ol> [underground water] reservoir or subdivision
thereof. A groundwater conservation district may include all or part of one
or more counties, cities, districts, or other political subdivision and may
consist of separate bodies of land within a groundwater management area, <nl>
priority groundwater management<ol> [critical] area, or <nl>
groundwater<ol> [underground water] reservoir or subdivision
thereof separated by land not included in the proposed district. Evidence
shall show: 

(A) a rule adopted by the commission designating a groundwater
management area as provided in the Texas Water Code, sec.35.004, and 
sec.sec.293.21-293.25
of this title (relating to Designation of Groundwater Management Areas), <nl>
an order<ol> designating a <nl>priority groundwater management<ol> [
critical] area as provided under the Texas Water Code, <nl>sec.35.008
<ol> [sec.sec.35.007-35.012], or an order designating delineation
of <nl>a <ol>groundwater [an underground water] reservoir or
subdivision thereof; or 

(B) if part of the proposed district is not included within
either a delineated groundwater management area, <nl>priority groundwater
management<ol> [critical] area, or <nl>groundwater<ol> [
underground water] reservoir or a subdivision thereof, the petition
may also contain a request (meeting the requirements of the Texas Water Code,
sec.35.005 and sec.sec.293.21 - 293.25 of this title) to create or alter
the boundaries of a management area. If such a request is made, it may be
acted upon separately by the commission from the petition for the creation
of the proposed district; 

(3) - (4) (No change.) 

(5) a geologic/hydrologic report including as appropriate:
(A) - (D) (No change.) 

(E) if the proposed district is located in a designated <nl>
priority groundwater management<ol> [critical] area, a description
of how the proposed projects will address issues identified within the <nl>
priority groundwater management<ol> [critical] area; 

(F) - (K) (No change.) 

(6) - (8) (No change.) 

(c) (No change.) 

(d) Creation applications for Chapter 54, Texas Water Code,
Municipal Utility Districts, shall contain items listed in subsection (a)
of this section and the following: 

(1)-(7) (No change.)

[(8) if city consent was obtained pursuant
to paragraph (7) of this subsection, then provide the following: ] 

[(A) evidence that the application conforms
substantially to the city consent; provided, however, that nothing herein
shall prevent the commission from creating a district with less land than
included in the city consent; ] 

[(B) evidence that the city consent does not
place any conditions or restrictions on a district other than those permitted
by Texas Water Code, sec.54.016(e); ]

[(C) evidence that the city consent provides
for the notice to buyers of land required by Texas Water Code, sec.49.452(d)
- (n) and (p), and sec.54.016(h)(4)(A), and complies with Texas Water Code,
sec.54.016(h)(4)(B) by including in the required filings with the appropriate
county clerk or clerks the information required by Texas Water Code, 
sec.54.016(h)(4)(A)
and the provisions of Texas Water Code, sec.sec.49.455(c)-(j);]
<nl>(8)<ol> [(9)] the petitioners
for districts proposed to be created within the corporate boundaries of a
municipality should show that the city will rebate to the district an equitable
portion of city taxes to be derived from the residents of the area proposed
to be included in the district if such taxes are used by the city to finance
elsewhere in the city services of the type the district proposes to provide.
If like services are not to be provided, then an agreement regarding a rebate
of city taxes is not necessary. Nothing in this subsection is intended to
restrict the contracting authorization provided in the Local Government Code,
sec.402.014; 

<nl>(9)<ol> [(10)] affidavits by those
persons desiring appointment by the commission as temporary directors, showing
compliance with applicable statutory requirements of qualifications and 
eligibility
for temporary directors, in accordance with Texas Water Code, sec.54.102
and sec.49.052; and 

<nl>(10)<ol> [(11)] other data and information
as the executive director may require. 

(e) - (g) (No change.) 

(h) Creation applications for Chapter 65, Texas Water Code,
Special Utility Districts, shall contain items listed in subsection (a) of
this section and the following: 

(1) a certified copy of the resolution requesting creation,
as required by Texas Water Code, sec.65.014 and sec.65.015, signed by
the president and secretary of the board of directors of the water supply
corporation, and stating that the water supply corporation, acting through
its board of directors, has found that it is necessary and desirable for the
water supply corporation to be converted into a district. The resolution shall
include the following: 

(A) a description of the boundaries of the proposed district
by metes and bounds or by lot and block number, if there is a recorded map
or plat and survey of the area, or by any other commonly recognized means
in a certificate attached to the resolution executed by a <nl>licensed<ol>
[registered professional] engineer; 

(B) - (E) (No change.) 

(2) - (8) (No change.) 

(9) certified copy of resolution and an order canvassing
election results, adopted by the water supply corporation, which shows [
an affirmative vote of its membership to]: 

(A) <nl>an affirmative vote of a majority of the membership
to<ol> authorize conversion to a special utility district operating pursuant
to Texas Water Code, Chapter 65; 

(B) <nl>a vote by the membership in accordance with the requirements
of Texas Water Code, Chapter 65, and the Texas Non-Profit Corporation Act,
Texas Civil Statutes, Articles 1396-1.01 to 1396-11.01, to dissolve<ol>
[approve the dissolution of] the water supply corporation at such
time as creation of the special utility district is approved by the commission 
<nl>
and convey all the assets and debts of the water supply corporation to the
special utility district upon dissolution.<ol> [;] 

[(C) approve the conveyance of all the assets
and debts of the water supply corporation to the special utility district
upon dissolution; and] 

(10) - (12) (No change.) 

(i) - (j) (No change.) 

sec.293.12.Creation [Hearing] Notice Actions
and Requirements.
(a) <nl>On receipt by the executive director of all required
documentation associated with an application for creation of a district by
the commission pursuant to Texas Water Code, Chapter 36, Groundwater 
Conservation
Districts, Chapter 51, multi-county Water Control & Improvement Districts,
Chapter 54, Municipal Utility Districts, Chapter 55, Water Improvement 
Districts,
Chapter 58, multi-county Irrigation Districts, Chapter 59, Regional Districts,
Chapter 65, Special Utility Districts, and Chapter 66, Stormwater Control
Districts, the executive director shall notify the chief clerk that the 
application
is administratively complete.<ol> [The chief clerk shall set the petition
for hearing by the commission and issue notice thereof.] 

(b) <nl> For those applications described in paragraph (a)
of this section, the chief clerk shall send a copy of a notice to the applicant
indicating that an application has been received and notifying interested
persons of the procedures for requesting a public hearing. The applicant shall
cause the notice to be published as follows:<ol> [The hearing notice
actions and requirements for Texas Water Code, Chapter 36, Groundwater 
Conservation
Districts, are as follows:] 

(1) <nl>notice must be published once a week for two consecutive
weeks in a newspaper regularly published or circulated in the county where
the district is proposed to be located with the last publication not later
than the 30th day before the date on which the commission may act on the 
application,
and<ol> [notice must be published not later than the 30th day before
the date of the hearing in at least one newspaper with general circulation
in the county or counties in which the proposed district is to be located;
(2) posted on the bulletin board used for posting legal
notices in each county in which all or part of the proposed district is to
be located<nl>.<ol> [; and] 

[(3) if a petition for the creation of
a groundwater conservation district contains a request to create or alter
the boundaries of a groundwater management area in all or part of the proposed
district, the notice must also be given in accordance with the requirements
of Texas Water Code, sec.35.006 and sec.sec.293.21-293.25 of this title
(relating to Designation of Groundwater Management Areas).] 

(c) <nl>For those applications described in subsection (a)
of this section, the commission may act on an application without holding a 
public hearing if a public hearing is not requested by the commission, the 
executive director, or an affected person in the manner prescribed by commission 
rule during the 30 days following the final publication of notice under this 
section. If the commission determines that a public hearing is necessary, the 
chief clerk shall advise all parties of the time and place of the hearing. The 
commission is not required to provide public notice of a hearing under this 
subsection.<ol> [The hearing notice actions and requirements for Texas Water 
Code, Chapter 51, multi-county Water Control and Improvement Districts, and for 
Chapter 58, multi-county Irrigation Districts are as follows:]
[(1) The chief clerk shall prepare one original and three copies of the notice 
for each county and send to the county clerk of each county in which the 
proposed district may be located. The county clerk shall retain one copy and 
deliver the original and two copies to the county sheriff; ] 
[(2) The sheriff of each county shall post one copy at the courthouse door of 
that county 15 days before the hearing and publish one in a newspaper of general 
circulation in that county once a week for two consecutive weeks. The first 
publication shall be at least 20 days before the hearing.] 
(d) <nl> If a petition for the creation of a groundwater conservation district 
pursuant to Texas Water Code, sec.36.013 contains a request to create or alter 
the boundaries of a groundwater management area in all or part of the proposed 
district, the notice must also be given in accordance with the requirements of 
Texas Water Code, sec.35.006 and sec.sec.293.21-293.25 of this title (relating 
to Designation of Groundwater Management Areas);
<ol>[The hearing notice actions and requirements for Texas Water Code, Chapter 
54, Municipal Utility Districts and Chapter 59, Regional Districts are as 
follows:] 
[(1) The chief clerk shall send a copy of the notice of hearing to all cities 
which have extraterritorial jurisdiction in the county or counties in which the 
proposed district is located and which have formally requested notice of 
creation of all districts in their county or counties. The chief clerk shall 
prepare a certificate indicating that notice was properly mailed to all these 
cities.] 
[(2) The chief clerk shall send a copy of the notice of hearing to the 
petitioners, or their agents, who shall:
[(A) cause the notice to be published in a newspaper with general circulation in 
the county or counties in which the proposed district is located once a week for 
two consecutive weeks with the first publication being at least 30 days prior to 
the date of the commission hearing;] 
[(B) send the notice of the hearing by certified mail, return receipt requested, 
to all fee simple landowners, as reflected on the county tax rolls, whose 
property is located within the proposed district, except those who have signed 
the petition for creation at least 30 days prior to the date of the commission 
hearing. Ownership of the property shall be certified by the tax assessor and 
collector from the tax rolls as of the date of submitting the petition to the 
executive director.
(e) <nl>For a petition for the creation of a Special Utility District pursuant 
to Texas Water Code, Chapter 65, which includes transfer of the certificate of 
convenience and necessity, the applicant shall also, unless waived by executive 
director, mail copies of the notice to customers of the water supply corporation 
and other affected parties at least 120 days prior to approval. Such notice 
shall include the following:<ol> [The hearing actions and notice requirements 
for Texas Water Code, Chapter 55, Water Improvement Districts to be located in 
more than one county are as follows:] 
(1) <nl>name and business address of the district;<ol> [the chief clerk shall 
send a copy of the notice of hearing to the commissioners court of each county 
where land in the proposed district is located.]
(2) <nl>a description of the service area involved; <ol> [ The county clerk of 
each county shall post notice of the time and place of the hearing at the 
courthouse door.] 
<nl>(3)<ol> <nl> the anticipated effect of the conversion on the operation or 
the rates and services provided to customers; and <ol>
<nl>(4)<ol> <nl> a statement that if a hearing is granted, persons may attend 
the hearing and participate in the process.<ol>
(f) <nl>If a petition for the creation of a Special Utility District pursuant to 
Texas Water Code, Chapter 65, contains a request for approval of an impact fee, 
the applicant shall comply with the notice provisions of sec.293.173 of this 
title (relating to Impact Fee Notice Actions and Requirements). <ol> [The 
hearing actions and notice requirements for Texas Water Code, Chapter 65, 
Special Utility Districts notice of the creation and transfer of the certificate 
of convenience and necessity, and for approval of an impact fee, if applicable, 
shall be accomplished as follows:]
[(1) The chief clerk shall send a copy of the notice of hearing to all cities 
which have extraterritorial jurisdiction in the county or counties in which the 
proposed district is located and which have formally requested notice of 
creation of all districts in their county or counties. The chief clerk shall 
prepare a certificate indicating that notice was properly mailed to all these 
cities. ]
[(2) The chief clerk shall send a copy of the notice to the Public Utility 
Commission.] 
[(3) The chief clerk shall send a copy of the notice of hearing to the 
petitioners, or their agents, who shall:]
[(A) cause the notice to be published in a newspaper with general circulation in 
the county or counties in which the proposed district is located once a week for 
two consecutive weeks with the first publication being at least 14 days prior to 
the date of the commission hearing. ]
[(B) unless waived by executive director, mailed to customers of the water 
supply corporation and other affected parties at least 120 days prior to the 
date of the hearing including the following:
[(i) name and business address of the district;]
[(ii) a description of the service area involved;]
[(iii) the anticipated effect of the conversion on the operation or the rates 
and services provided to customers; and]
[(iv) a statement that persons may attend the hearing and participate in the 
process.
[(C) Impact fee notice to be mailed to owners of property within the proposed 
district, except customers of the water supply corporation, at least 30 days 
prior to the date of the commission hearing, if the application for conversion 
concurrently requests approval of an impact fee.] 
[(g) The hearing action and notice requirements for Texas Water Code, Chapter 
66, Stormwater Control Districts, are that the chief clerk shall send a copy of 
the notice of hearing to the petitioners, or their agents, who shall cause the 
same to be published in a newspaper with general circulation in the county or 
counties in which the proposed district is located once a week for two 
consecutive weeks with the first publication being at least 30 days prior to the 
date of the commission hearing.]
<nl>(g)<ol> [(h)] The hearing action and notice requirements for Local 
Government Code, Chapter 375, Municipal Management Districts are as follows: 
(1) The chief clerk shall send a copy of the notice of hearing to all counties 
in which the proposed district is located and all municipalities which have 
extraterritorial jurisdiction in the county or counties in which the proposed 
district is located and which have formally requested notice of creation of all 
districts in their county or counties. The chief clerk shall prepare a 
certificate indicating that notice was properly mailed to any such counties 
and/or municipalities. 
(2) The chief clerk shall send a copy of the notice of hearing to the 
petitioners, or their agents, who shall: 
(A) cause the notice to be published in a newspaper with general circulation in 
the municipality in which the proposed district is located once a week for two 
consecutive weeks with the first publication being at least 31 days prior to the 
date of the commission hearing; 
(B) send the notice of the hearing by certified mail, return receipt requested, 
to all property owners within the district at least 30 days before the hearing. 

sec.293.13.Commission Actions Following <nl>Consideration of <ol>Creation<nl> 
Application<ol> [Hearing].
(a)-(c) (No change.)

sec.293.15.Addition of Wastewater and/or Drainage Powers and Conversion of 
Districts into Municipal Utility Districts.
(a) (No change.) 
(b) The application shall be accompanied by the following:
(1) (No change.) 
(2) a $700 application fee [plus the cost of required notice, if any]; 
(3) - (5) (No change.) 
(c) Prior to the hearing, the following requirements shall be met with evidence 
of such compliance filed with the chief clerk at or prior to the hearing: 
(1) Notice of the hearing in a form issued by the chief clerk shall be given by 
publishing notice in a newspaper with general circulation in the county or 
counties in which the district is located. The notice shall be published once a 
week for two consecutive weeks with the first publication to be made not less 
than <nl>14 <ol> [30] days before the time set for the hearing. The notice 
shall: 
(A)-(C) (No change.) 
[(2) at least 30 days before the date of the hearing, notice of the hearing 
shall be sent by certified mail, return receipt requested, to all fee simple 
landowners, as reflected on the county tax rolls, whose property is located 
within the proposed district unless good cause is shown why such notice by mail 
should not be given. ]
[(3) ownership of the property shall be certified by the tax assessor and 
collector from tax rolls or as reflected by the records of the appraisal 
district, whichever is more current, as of the date of the submitting the 
resolution to the commission.] 
<nl>(2)<ol> [(4)] the district shall file its resolution requesting conversion 
or additional powers with the city secretary or clerk of each city, in whose 
corporate limits or extraterritorial jurisdiction any part of the district is 
located, concurrently with submitting its application for conversion to the 
commission. 
(d) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717233
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Issuance of Bonds
30 TAC sec.sec.293.41, 293.47, 293.48, 293.51, 293.54
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.41.Approval of Projects and Issuance of Bonds.
(a) Bonds, as referred to in this <nl>subchapter<ol> [section] include any bonds 
authorized to be issued by the Texas Water Code or special statute, and are 
represented by an instrument issued in bearer or registered form. This section 
does not apply to refunding bonds, and bonds issued to and approved by the 
Farmers Home Administration of the United States Department of Agriculture or 
the Texas Water Development Board, or successor agencies. This<nl>subchapter<ol> 
[section] does apply to revenue notes as stated in sec.293.80(d) of this title 
(relating to Revenue Notes) <nl> and contract tax obligations as stated in 
sec.293.89(d) of this title (relating to Contract Tax Obligations)<ol> . 
(b) (No change.) 
(c) This <nl>subchapter<ol> [section] does not apply to a district if: 
(1) - (3) (No change.) 
(4) the district is governed by a board of directors appointed in whole or part 
by the governor, a state agency, or the governing body or chief elected official 
of a municipality or county and does not provide<nl>, or propose to provide,<ol> 
water<nl>,<ol> [and] wastewater<nl>, drainage, reclamation, or flood control<ol> 
services to residential retail <nl> or commercial<ol> customers as its principal 
function. 

sec.293.47.Thirty Percent of District Construction Costs To Be Paid by 
Developer.
(a) It has been determined by experience that some portion of the cost of 
district water, wastewater and drainage facilities in certain districts should 
be paid by a developer to insure the feasibility of the construction projects of 
such districts. Accordingly, this section applies to districts which have a 
ratio of debt (including proposed debt) to certified assessed valuation of more 
than 10%. This section does not apply to: 
(1) - (2) (No change.) 
(3) a district which obtains a credit enhanced rating on its proposed bond issue 
and which the <nl>executive director<ol> [commission], in <nl>his<ol> [its] 
discretion, finds to be feasible and justified, based upon satisfactory evidence 
submitted by the district, without such developer contribution. 
(b) - (c) (No change.) 
(d) Except as provided in subsection (a) of this section or in the remaining 
provisions of this subsection, the developer shall contribute to the district's 
construction program an amount not less than 30% of the construction costs for 
all water, wastewater and drainage facilities, including attendant engineering 
fees and other related expenses, with the following exemptions: 
(1) - (4) (No change.) 
(5) pump stations and force mains located within the boundaries of the district 
which directly connect the district's wastewater system to a <nl>regional 
trunkline or a<ol> regional plant, regardless of whether such <nl>line or<ol> 
plant is located within or without the boundaries of the district; 
(6) - (11) (No change.) 
(e) A developer will also be required to contribute toward construction costs in 
districts which are within the limits of a city, except for: 
(1) (No change.) 
(2) districts previously created or in the process of creation which, prior to 
December 1, 1986, have <nl>submitted<ol> [filed] petitions <nl>to<ol> [with] the 
<nl>executive director<ol> [commission] requesting creation; or 
(3) (No change.) 
(f) - (k) (No change.) 

sec.293.48.Street and Water, Wastewater and Drainage Utility (street and 
utility) Construction by Developer.
Except as otherwise provided, unless street and utility construction is 
completed within the area to be developed by the proposed bond issue, the 
developer must provide assurance to the satisfaction of the executive director, 
prior to advertisement for sale of the district's bonds, that such street and 
utility construction will be completed as hereinafter provided. 
(1) The developer must enter into an agreement with the district, secured by a 
letter of credit, specifying that if street and utility construction is not 
completed within a reasonable and specified period of time after the district 
sells its bonds, the district may award a contract for completion of the streets 
and utilities with financing to be accomplished by utilizing the letter of 
credit; provided, however, the district shall not proceed in such a manner until 
the executive director, after having given at least ten days written notice to 
both the district and the developer, has reviewed the matter, either on the 
petition of the district or on his own motion and has approved the district's 
awarding of the contract and utilization of the letter of credit; and provided 
further, the executive director may extend the time for the developer to 
complete the streets and utilities if the developer renews the letter of credit 
and adequately compensates the district for lost revenues and taxes resulting 
from failure to complete the streets and utilities within the specified time. In 
the event that the letter of credit has not been renewed or replaced 45 days 
prior to its expiration date, or in the event that the developer commences any 
proceeding, voluntary or involuntary, or any proceeding, voluntary or 
involuntary, is commenced against the developer involving the bankruptcy, 
insolvency, reorganization, liquidation, or dissolution of the developer, or any 
receiver is appointed for the developer, or the developer makes a general 
assignment for the benefit of creditors, the district shall have the immediate 
right to draw down the lesser of the current cost, as estimated by the 
district's engineer, to construct the streets and utilities, or the entire 
remaining balance of the letter of credit. The current estimated costs to 
construct the streets and utilities shall include construction contract amounts, 
engineering, surveying and testing fees, and a 10% contingency. The district 
shall deposit such funds in a separate account and shall not commit or expend 
such funds until the executive director has [held the hearing and] authorized 
use of the funds as provided in this subsection. Within 30 days after final 
completion of the streets and utilities, the district shall provide an 
accounting of the use of funds drawn pursuant to the provisions hereof and shall 
refund any remaining funds, including accrued interest, if any, to the developer 
or his designee. A district shall not allow any letter of credit to expire, 
except upon completion of the paving in substantial compliance with the 
agreement or written approval of the executive director. A copy of the street 
and utility construction agreement meeting the criteria specified in sec.293.57 
of this title (relating to Form of Street and Utility Construction Agreement), 
the letter of credit and any amendments or renewals thereof shall be submitted 
to the executive director within ten days after their execution or receipt by 
the district. The letter of credit must be from a financial institution meeting 
the qualifications as specified in sec.293.56 of this title (relating to 
Requirements for Letters of Credit). 
(2) - (4) (No change.) 

sec.293.51.Land and Easement Acquisition.
(a) (No change.) 
(b) Plants, Lift or Pump Stations, Detention Ponds and Levee Sites. All land 
needed by a district for plants, lift or pump stations, detention/retention 
ponds, or levees may be acquired in fee simple or by easement from any person, 
including the developer, in accordance with this section, and sec.293.47 of this 
title (relating to Thirty Percent of District Construction Costs To be Paid by 
Developer) shall not apply to such acquisition. If a district acquires such a 
site from a developer within the district or subsequent owner of developer 
reimbursables, the price shall be determined by adding to the price paid by the 
developer for such land or easement in a bona fide transaction between unrelated 
parties the developer's actual [carrying charges (] taxes and interest paid to 
the date of acquisition by the district<nl>.<ol> [);] <nl>The interest rate 
shall not exceed the net effective interest rate on the bonds sold, or the 
interest rate actually paid by the developer for loans obtained for this 
purpose, whichever is less. If a developer uses its own funds rather than 
borrowed funds, the net effective interest rate on the bonds sold shall be 
applied. Provided <ol>[provided], however, if the executive director determines 
that such price appears to exceed the fair market value of such land or 
easement, he may require an appraisal to be obtained by the district from a 
qualified independent appraiser and payment to the seller may be limited to the 
fair market value of such land as shown by the appraisal; if the seller acquired 
the land after the improvements to be financed by the district were constructed, 
the price shall be limited to the fair market value of such land or easement 
established without the improvements being constructed; or if the seller 
acquired the land more than five years before the creation of the district and 
the records relating to the actual price paid and the <nl>taxes and interest 
costs<ol> [actual carrying charges] are impossible or difficult to obtain, the 
district, upon executive director approval, may purchase such site at fair 
market value based on an appraisal prepared by a qualified, independent 
appraiser. If the land or easement needed by the district is being acquired 
based on the appraised value, the application to the commission for approval to 
purchase such site must contain a request by the district to acquire the site in 
such manner and must explain the reason the seller is unable to provide price 
and carrying cost records. If the land or easement needed by the district is 
being acquired from an entity other than a developer or subsequent owner of 
developer reimbursables in the district, the district may pay the fair market 
value established by a qualified, independent appraiser, and may also pay legal, 
engineering, surveying or court fees and expenses incurred in acquiring such 
land or easement.
(c) - (g) (No change.) 

sec.293.54.Bond Anticipation Notes (BAN).
A district may issue bond anticipation notes for any purpose for which bonds of 
the district have previously been voted or may be issued for the purpose of 
refunding previously issued bond anticipation notes. All bond anticipation notes 
issued by a district shall conform to the following requirements: 
(1) - (8) (No change.) 
(9) Except as hereinafter otherwise provided, BAN shall not be used to finance 
facilities unless the plans and specifications therefor have been approved by 
all regulatory authorities having jurisdiction thereof and such plans and 
specifications have been <nl>submitted to the executive director<ol> [filed with 
the commission] in connection with the district's pending bond application. 
(10) - (13) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717018
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

District Actions Related to Construction Projects and Purchase of Facilities
30 TAC sec.sec.293.62, 293.64, 293.65, 293.67, 293.69, 293.70 
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.62.Construction Related Documents To Be Submitted to the <nl>Agency<ol> 
[Commission].
Every district required to obtain commission approval of its projects relating 
to the issuance and sale of bonds as indicated in sec.293.41 of this title 
(relating to Approval of Projects and Issuance of Bonds), is required to submit 
the following construction related reports and/or documents: 
(1) Within 10 days after construction contract execution, the district shall 
furnish to the appropriate <nl>agency<ol> [commission] field office true copies 
of the following documents. 
(A) - (F) (No change.) 
(2) - (3) (No change.) 

sec.293.64.Control of Work.
The governing board shall have control of contracts for construction work being 
done for the district, and shall direct the district's engineer to provide a 
qualified project representative to perform periodic or continuous on-site 
observation of the progress and quality of the executed work to determine if 
construction is in substantial accordance with and includes all items in plans 
and specifications approved by the <nl>executive director<ol> [commission]. The 
scope of work and construction schedules shall govern the amount of on-site 
observation that is necessary to effectively monitor construction activities. 
The governing board shall authorize the services of a resident project 
representative if necessary to further protect the district against defects and 
deficiencies in construction. The responsibility for determining the optimum 
amount of on-site observation should remain with the consulting engineer who is 
required during the progress of the construction work to submit to the governing 
board and the executive director detailed written reports showing whether or not 
the contractor is complying with the contract.

sec.293.65.Commission Inspection.
The executive director or his designated representative may inspect a district 
construction project at any time. When individual contracts for construction are 
substantially complete, the engineer for the district will notify the executive 
director of date and time of final inspection. The engineer will conduct, in 
company with the owner or his representative, a final inspection of the work for 
conformance with the design concept and compliance with the contract documents. 
The district shall not accept the project or release the statutory retainage on 
partial payments until work is determined to be in substantial compliance with 
plans and specifications as approved by the <nl> executive director<ol> 
[commission]. 

sec.293.67.Project Completion<nl> and Prior to Purchase<ol>.
<nl>(a)<ol> Upon completion of the project, the district's engineer shall submit 
to the governing board a final detailed report including revised contract "as 
built" drawings showing the work as actually constructed, and the engineer shall 
certify to the executive director that the work was substantially completed in 
accordance with and includes all items in plans and specifications <nl>submitted 
to, or<ol> [filed with or] approved by the <nl>executive director<ol> 
[commission]. 
<nl>(b)<ol> <nl>Prior to accepting facilities for operation and maintenance, the 
district shall adopt rules as required by sec.293.112 of this title (relating to 
Water, Wastewater and Drainage Facilities). <ol>

sec.293.69.Purchase of Facilities.
(a) A district shall not purchase facilities financed or constructed by a 
developer, investor owned utility or water supply corporation in contemplation 
of sale to the district or assume facility contracts from the developer or 
reimburse the developer, investor owned utility or water supply corporation for 
funds advanced to finance construction of facilities until the executive 
director has [inspected the project, reviewed contract administration, and] 
given written authorization to finalize the purchase or reimbursement. <nl> 
Prior to requesting authorization to purchase, the district shall require its 
engineer to inspect the facilities and provide a written report of the condition 
of the facilities as they relate to the plans and specifications and note any 
deficiencies. A copy of the report must be submitted to the executive director 
along with the request for authorization to purchase.<ol> The executive director 
<nl>may<ol> [shall] inspect the facilities<nl>.<ol> [and,] <nl>Subject<ol> 
[subject] to the requirements contained in this subsection, <nl>the executive 
director shall<ol> issue his written approval or disapproval of such proposed 
purchase within 30 days after receipt of written request from a district or a 
district's authorized representative. <nl>If substantial deficiencies are found, 
the executive director may require the district to obtain an appraisal 
reflecting the adjusted value of the deficient facilities or deny purchase until 
repairs are made. <ol> The written approval shall be valid for 120 days. 
(b) - (g) (No change.) 

sec.293.70.Audit of Payments to Developer.
(a) - (b) (No change.) 
(c) Upon completion, the auditor shall prepare a reimbursement report to the 
district. Such report shall include sufficient details and disclosures to serve 
the needs of the district and the commission. Within 10 days after approval by 
the governing board of the district, a copy of this report shall be 
<nl>submitted to<ol> [filed with] the executive director. The contents of the 
report shall include the following: 
(1) - (3) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717019
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Other Actions Requiring Commission Consideration for Approval 
30 TAC sec.sec.293.80, 293.81, 293.83, 293.84, 293.89
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.80.Revenue Notes.
(a) A district, as defined by Water Code, sec.49.001 may not execute a revenue 
note as described by Water Code, sec.49.153 for a term longer than three years 
unless approved by the commission. <nl>This section does not apply to a note 
issued to and approved by the Farmers Home Administration of the United States 
Department of Agriculture or the Texas Water Development Board, or successor 
agencies.<ol> 
(b) This <nl>section<ol> [rule] does not apply to special water authorities, as 
defined by Water Code, sec.49.001 <nl> or a district described by Water Code, 
sec.49.181(h)<ol> . 
(c) - (d) (No change.)

sec.293.81.Change Orders.
A change order is a change in plans and specifications for construction work 
that is under contract. For purposes of this section, a variation between 
estimated quantities and actual quantities or use of supplemental items included 
in the bid where no change in plans and specifications has occurred is not a 
change order. 
(1) - (2) (No change.) 
(3) If the change order is $25,000 or less, a copy of the change order signed by 
the contractor and an authorized representative of the district shall be 
<nl>submitted to<ol> [filed with] the executive director within 10 days of the 
execution date of the change order, together with any revised construction plans 
and specifications approved by all agencies and entities having jurisdictional 
responsibilities, i.e. city, county, state, other, if required. 
(4) - (6) (No change.)

sec.293.83.District Use of Surplus Funds For Any Purpose And Use of Maintenance 
Tax Revenue for Certain Purposes.
(a) Except as provided in subsection (c) (3) <nl>and<ol> [,] (4) [and (5)] of 
this section, <nl>and as provided in subsection (d) of this section,<ol> a 
district contemplating use of surplus bond funds, interest earned on invested 
bond proceeds, grants, contributions by others for costs sharing of facilities 
constructed with bond funds and litigation settlements related to projects 
financed by bond proceeds must receive approval from the executive director 
prior to obligation of these funds for any purpose. 
(b) (No change.) 
(c) Application requirements are: 
(1) - (3) (No change.) 
(4) Districts contemplating the use of surplus funds as provided in paragraph 
(3) of this subsection must: 
(A) receive all required approvals of associated plans and specifications from 
other governmental agencies, including the <nl>agency <ol> [commission], prior 
to construction; 
(B) submit to the executive director and the appropriate field office those 
documents required by sec.293.62 of this title (relating to <nl> Construction 
Related Documents To Be Submitted to the Agency<ol> [Transmittal of Reports]). 
(C) report expenditures of all surplus funds in their annual audit report in the 
notes to the financial statements disclosing any amounts transferred among the 
funds including the use of surplus funds and the authority for such transfers. 
(d) (No change.) 

sec.293.84.District Use of Escrowed Funds.
(a) A district contemplating the use of <nl>agency<ol> [commission]-directed 
escrowed funds for a purpose approved in the bond application must <nl>submit 
<ol> [file] the following documents <nl>to<ol> [with] the executive director: 
(1) - (2) (No change.)
(3) other information as the executive director [or the commission] may require 
and requested within 10 days of receipt of application; and 
(4) (No change.) 
(b) A district contemplating use of <nl>agency<ol> [commission]-directed 
escrowed funds for purposes other than as approved by the commission in the bond 
application must receive approval of the executive director. To secure such 
approval, the following documents must be <nl>submitted <ol> [filed]: 
(1) - (4) (No change.) 

sec.293.89.Contract Tax Obligations.
(a) A district that is required under Water Code, sec.49.181 to obtain approval 
by the commission of the issuance of bonds may not enter into an obligation 
under Water Code sec.49.108 to collect taxes for debt that exceeds three years 
unless approved by the executive director. This section does not apply to 
contract taxes that are levied to pay for a district's share of bonds that have 
been issued by another district and approved by the commission.
(b) Applications for commission approval of contract tax obligations shall 
include the following: 
(1) a resolution by the governing board requesting approval of the contract; 
(2) a copy of the proposed contract; 
(3) a detailed explanation of the intended use and project to be financed, and 
complete justification for the proposed project to be financed; 
(4) a proposed cash flow over the life of the obligation which includes all debt 
obligations of the district; 
(5) unless waived by the executive director, if growth is used to support the 
projected tax rates, an independent market study;
(6) If the contract tax proceeds are proposed to reimburse a developer as 
defined in the Water Code, sec.49.052(d), a complete Bond Application Report as 
described in sec.293.43(5) of this title (relating to Application Requirements) 
for the issuance of bonds; 
(7) an application fee in the amount of $100; and 
(8) other information as the executive director may require.
(c) Contract tax obligations, the proceeds of which are used to provide 
reimbursement to a developer as defined in the Water Code, sec.49.052(d) are 
subject to sec.sec.293.41-293.61 of this title (relating to the Issuance of 
Bonds). 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717020
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Reports
30 TAC sec.293.94, sec.293.96 
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.94.Annual Financial Reporting Requirements.
(a) - (d) (No change.) 
(e) Audit report exemption. 
(1) A district [that is not collecting taxes] may elect to submit annual 
financial reports to the executive director in lieu of the district's compliance 
with Water Code, sec.49.191 provided: 
(A) (No change.) 
(B) the district did not have gross receipts from operations, loans, 
<nl>taxes,<ol> or contributions in excess of $100,000 during the fiscal period; 
and 
(C) (No change.)
(2) - (3) (No change.) 
(f) - (g) (No change.) 
(h) Submitting of audits, financial reports, and affidavits.
(1) Submittal dates. 
(A) - (B) (No change.) 
(C) Financial dormancy affidavits. Financial dormancy affidavits shall be 
<nl>submitted<ol> [filed] as prescribed by paragraph (2) of this subsection by 
January 31 of each year. The calendar year affidavit affirms that the district 
met the financial dormancy requirements stated in subsection (f) of this section 
during part or all of the calendar year immediately preceding the January 31 
filing date. 
(2) Submittal locations. Copies of the audit, financial report, or financial 
dormancy affidavit described in subsections (c), (e) and (f) of this section 
shall be <nl>submitted<ol> [submittal] annually to the executive director, and 
within the district's office. 
(i) - (j) (No change.) 

sec.293.96.Miscellaneous Reports To Be Submitted to the Executive Director.
(a) Certified copy of order canvassing results of any maintenance tax elections 
shall be <nl>submitted<ol> [filed] within 30 days after adoption. 
(b) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717021
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

District Name Changes and Posting Signs 
30 TAC sec.293.101
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.101.Posting<nl> Signs<ol> [Notice] in the District.
(a) - (b) (No change.) 
(c) Within 10 days following the installation of the signs, the district shall 
<nl>submit <ol> [file] a statement <nl> to<ol> [with] the <nl>executive 
director<ol> [commission] indicating the location of the signs. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717022
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Water and Wastewater Systems Rules and Regulations
30 TAC sec.293.112
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.112.Water, Wastewater and Drainage Facilities.
All water districts that provide or propose to provide water, wastewater or 
drainage service to residential retail or commercial customers shall adopt rules 
that require inspection and repair of all damages to facilities the district is 
responsible for maintaining prior to initiation of service. The rules must, at a 
minimum: 
(1) require that the district's operator be notified prior to starting any 
construction or improvement on property within the district;
(2) require that an inspection be completed by the district's operator to verify 
district facilities prior to starting construction; 
(3) require that an inspection be completed by the district's operator to verify 
district facilities after completion of construction; and
(4) require that any damages found be repaired before service is initiated. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717232
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Fire Departments Projects 
30 TAC sec.293.125
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.125.Additional Data and Information.
Additional data and information may be required by the <nl>executive 
director<ol> [commission] when deemed pertinent to the bond application under 
consideration. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717023
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Dissolution of Districts 
30 TAC sec.293.131, sec.293.133 
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.131.Authorization for Dissolution of Water District by the Commission.
(a) (No change.) 
(b) Proceedings for the dissolution of a district may be initiated by the 
executive director upon his own initiative or upon the receipt of an application 
<nl>submitted to<ol> [filed with] the executive director by the owners of land 
or interests in land within the district which is sought to be dissolved, a 
member or members of the board of directors of the district, or any other party 
who can demonstrate an interest in having the district dissolved. 
(c) - (g) (No change.)

sec.293.133.Investigation by the Staff of the Commission.
The executive director will examine the application and the facts and 
circumstances contained therein and prepare a written report which will be filed 
with the <nl>chief clerk<ol> [commission] two weeks prior to the hearing as 
prepared testimony. A copy of the written report will be mailed to any 
landowner, director or other interested party who has filed an application for 
dissolution of the district or has requested notice of the hearing or otherwise 
indicated an interest in the proceeding. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717024
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Application for Approval of Standby Fees
30 TAC sec.293.145
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.145.Public [Hearing and] Notice Requirements.
(a) <nl>On receipt by the executive director of all required documentation 
associated with an application for standby fees as required by sec.sec.293.141- 
293.144 of this title (relating Standby Fees, Application Requirements for 
Imposition of Standby Fees To Be Used to Supplement the Debt Service Account, 
Application Requirements for Standby Fees to Be Used To Supplement the Operation 
and Maintenance Fund, Application Requirements For Imposition of Standby Fees To 
Supplement the Debt Service Account and the Operator), the executive director 
shall notify the chief clerk that the application is administratively 
complete.<ol> [The chief clerk shall schedule a hearing date on its uncontested 
agenda and advise the district of the scheduled time and date of the hearing. If 
the item is contested, the commission may remand the item for an evidentiary 
hearing.] 
(b) <nl> The chief clerk shall send a copy of a notice to the applicant 
indicating that an application has been received and notifying interested 
persons of the procedures for requesting a public hearing. The applicant shall 
cause the notice to be published and mailed as follows: <ol> [ The district 
shall publish notice of the hearing in a form provided by the chief clerk of the 
commission. Notice of the hearing shall be published in a newspaper of general 
circulation in the county or counties in which the district is located once a 
week for two consecutive weeks. The first publication must occur not later than 
the 30th day before the date of the hearing.]
<nl>(1)<ol> <nl>notice must be published once a week for two consecutive weeks 
in a newspaper regularly published or circulated in the county or counties where 
the district is proposed to be located with the last publication not later than 
the 30th day before the date on which the commission may consider the 
application.<ol>
<nl>(2)<ol> [(c)] The district shall send, not later than the 30th day before 
the date of <nl>consideration by the commission, copies of the<ol> [hearing,] 
notice [of the hearing] by certified mail, return receipt requested, to each 
owner of undeveloped property in the district identified on the district's tax 
rolls. Notice [of the hearing] must be provided by certified mail, return 
receipt requested, to each mortgagee of record that has submitted a written 
request to be informed of any <nl>application<ol> [hearings. To be effective, 
the written request must be received by the district not later than the 60th day 
before the date of the hearing]. The written request for notice must include the 
name and address of the mortgagee, the name of the property owner in the 
district, and a brief property description. 
<nl>(c)<ol> [(d)] The district shall submit an affidavit certifying compliance 
with the requirements of <nl>subsection <ol>[subsections] (b) [and (c)] of this 
title (relating to Public Notice Requirements) to the Commission at least one 
week prior to [the] commission <nl>consideration<ol> [hearing].
<nl>(d)<ol> <nl>The commission may act on an application without holding a 
public hearing if a public hearing is not requested by the commission, the 
executive director, or an affected person in the manner prescribed by commission 
rule during the 30 days following the final publication of notice under this 
section. If the commission determines that a public hearing is necessary, the 
chief clerk shall advise all parties of the time and place of the hearing. The 
commission is not required to provide public notice of a hearing under this 
subsection. <ol>
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717025
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Petition for Approval of Impact Fees 
30 TAC sec.sec.293.171, 293.173, 293.174 
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.171.Definitions of Terms.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise. 
<nl>(1)<ol> Impact fee - A charge or assessment imposed by a district against 
new development in order to generate revenue for funding or recouping the costs 
of capital improvements or facility expansions necessitated by and attributable 
to such new development. A charge or fee by a district for construction, 
installation, or inspection of a tap or connection to <nl> district<ol> 
[district's] water, wastewater, or drainage facilities, including all necessary 
service lines and meters, <nl>or for wholesale facilities that serve such water, 
sanitary sewer, or drainage facilities,<ol> that:
(A) does not exceed three times the actual and reasonable costs to the district 
for such <nl>tap or connection <ol> [work] or 
(B) if made to a nontaxable entity <nl>for retail or wholesale service<ol> , 
does not exceed the actual costs to the district for such work and for all 
facilities that are necessary to provide district services to such entity and 
that are financed or are to be financed in whole or in part by tax-supported 
<nl>or revenue <ol> bonds of the district, shall not be deemed [or considered] 
to be an impact fee. 
<nl>(2)<ol> Capital improvement plan - A plan which identifies capital 
improvements or facility expansions pursuant to which impact fees may be 
assessed. 
<nl>(3)<ol> Capital improvements - Water supply, treatment, and distribution 
facilities, wastewater collection and treatment facilities, stormwater, and 
drainage, and flood control facilities, including facility expansions, whether 
or not located within the service area, with a life expectancy of three or more 
years, owned and operated by or on behalf of a district with authorization to 
finance and construct such facilities, but such term does not include materials 
and devices for making connections to or measuring services provided by such 
facilities to district customers. 
<nl>(4)<ol> Connection - A standardized measure of consumption, use, generation, 
or discharge attributable to an individual unit of development calculated in 
accordance with generally accepted engineering or planning standards. 
Connections shall be described in terms of single family equivalent connections, 
living unit equivalents, or other generally accepted unit typically attributable 
to a single family household. The assumed population equivalent per service unit 
shall be indicated. 
<nl>(5)<ol> Service area - An area within or without the boundaries of a 
district to be served by the capital improvements specified in the capital 
improvements plan. The service area may include all or part of the land within a 
district or land outside a district served by the facilities identified in the 
capital improvements plan. 

sec.293.173.Impact Fee Notice Actions and Requirements.
(a) <nl>On receipt by the executive director of all required documentation 
associated with an application for impact fees as required by sec.sec.293.171-
293.172 of this title (relating to Definitions of Terms and Information Required 
To Accompany Applications for Approval of Impact Fees), the executive director 
shall notify the chief clerk that the application is administratively 
complete<ol>. [The chief clerk shall set the petition for hearing, and issue 
notice thereof.] 
(b) <nl>The chief clerk shall send to the applicant a copy of a notice 
indicating that an application has been received and notifying interested 
persons of the procedures for requesting a public hearing. The notice shall 
also:<ol> [The notice of the hearing must be published by the district once in a 
newspaper with general circulation in each county in which the district intends 
to levy an impact fee. The notice shall be of sufficient size to be easily 
legible and appear at least 30 days before the scheduled date of the hearing. An 
affidavit verifying publication of the notice must be filed with the chief clerk 
prior to the date of the hearing.]
<nl>(1)<ol> <nl> be of sufficient size to be easily legible;<ol>
<nl>(2)<ol> <nl>include an easily understandable map showing the location of the 
district in relation to roads and other major landmarks and designating the 
areas upon which impact fees will be imposed; <ol> 
<nl>(3)<ol> <nl>state the amount of the impact fee; and <ol>
<nl>(4)<ol> <nl> state that the impact fee application and supporting 
information are available for inspection and copying in the commission's offices 
during regular business hours and that the capital improvements plan is 
available for inspection and copying at the district's office during regular 
business hours. <ol>
<nl>(c)<ol> <nl>The applicant shall cause the notice to be published and mailed 
as follows: <ol>
<nl>(1)<ol> <nl>Notice must be published once a week for two consecutive weeks 
in a newspaper regularly published or circulated in the county or counties where 
the district intends to levy an impact fee with the last publication not later 
than the 30th day before the date on which the commission may consider the 
application; <ol>
<nl>(2)<ol> <nl>The district shall send not later than the 30th day before the 
date of consideration by the commission, notice of the application to each owner 
of property within the service area, as of the date of submitting the 
application to the executive director, unless good cause is shown why such 
notice should not be given. Ownership of the property shall be certified by the 
county tax assessor/collector from the county tax rolls or by the appraisal 
district for the county, as applicable, as of the date of submitting of the 
application to the commission; and <ol>
<nl>(3)<ol> <nl> The district shall file an affidavit certifying compliance with 
the requirements of this subsection with the chief clerk at least one week prior 
to the date of consideration by the commission.<ol>
[(c) The notice shall: ]
[(1) state the time, date and location of the hearing; ] 
[(2) contain a statement of the purpose of the hearing; ]
[(3) include an easily understandable map showing the location of the district 
in relation to roads and other major landmarks and designating the areas upon 
which impact fees will be imposed;
[(4) state the amount of the impact fee;
[(5) inform all persons of their right to appear and present evidence for or 
against the impact fee or to propose higher or lower impact fees; and] 
[(6) state that the impact fee application and supporting information are 
available for inspection and copying in the commission's offices during regular 
business hours and that the capital improvements plan is available for 
inspection and copying at the district's office during regular business hours.] 
(d) <nl>The commission may act on an application without holding a public 
hearing, if a public hearing is not requested by the commission, the executive 
director, or an affected person in the manner prescribed by commission rule 
during the 30 days following the final publication of notice under this section. 
If the commission determines that a public hearing is necessary, the chief clerk 
shall advise all parties of the time and place of the hearing. The commission is 
not required to provide public notice of a hearing under this subsection.<ol> 
[The district shall send, not later than the 30th day before the date of the 
hearing, notice of the hearing to each owner of property within the service 
area, as of the date of submitting the application to the executive director, 
unless good cause is shown why such notice should not be given. Property 
ownership shall be as reflected by the county tax rolls or the records of the 
appraisal district for the county, whichever is more current. The district shall 
file an affidavit certifying compliance with the requirements of this subsection 
to the chief clerk at least one week prior to the commission hearing. Ownership 
of the property shall be certified by the county tax assessor/collector from the 
county tax rolls or by the appraisal district for the county, as applicable, as 
of the date of submitting of the application to the commission.]

sec.293.174.Commission Actions Following <nl>Consideration of <ol>the Impact Fee 
<nl>Application <ol>[Hearing].
(a) (No change.)
(b) The commission shall issue an order defining the impact fee to be imposed 
based on evidence presented [at the hearing].
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717026
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Appeal of Decision Regarding Facilities Constructed for A Municipal Utility 
District
30 TAC sec.293.180 
The section is proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.180.Appeal of a Decision of the Board of Municipal Utility District 
Regarding Facilities Constructed for the District.
(a) A person aggrieved by a decision of a board of directors of a Municipal 
Utility District operating under the Water Code, Chapter 54 may appeal a 
decision that involves the cost, purchase, or use of improvements constructed by 
a developer for the district to the commission. Before such an appeal will be 
considered the following must be submitted: 
(1) A petition signed by the present or former property owners affected by the 
decision of the district board of directors must be filed with the <nl>chief 
clerk<ol> [commission] seeking appropriate relief within 30 days after the date 
of the decision. The petition shall contain:
(A) - (B) (No change.) 
(2) - (9) (No change.) 
(b) (No change.) 
(c) Commission Actions. 
(1) - (2) (No change.) 
(3) A record of actual cost for the commission to conduct <nl> preparations for 
and <ol> the hearing shall be maintained by the executive director and 
<nl>SOAH<ol> [the Office of Hearings Examiners]. An amount for indirect costs 
shall also be included. The commission may deduct its cost from the deposit. If 
the commission's cost exceeds the amount of the deposit, it may require payment 
of the additional amount from the petitioner prior to rendering its decision. If 
the commission's cost is less than the amount of the deposit, the surplus amount 
shall be returned to the petitioner.
(4) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717027
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

Special Actions Relating to the Harris-Galveston Coastal Subsidence District
30 TAC sec.293.361, sec.293.365 
The sections are proposed under Texas Water Code, sec.5.103, which provides the 
Texas Natural Resource Conservation Commission with the authority to adopt any 
rules necessary to carry out its powers and duties under the Texas Water Code 
and other laws of the State of Texas. 
There are no other statutes implemented by this rule. 

sec.293.361.Definitions.
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise:
<nl>(1)<ol> Board - Board of directors of the Harris-Galveston Coastal 
Subsidence District. 
<nl>(2)<ol> Monitoring - Water samples taken and analyzed, continuous water 
quality measurements, and/or physical measurements of water flow and pressure in 
certain water collection and distribution lines as deemed appropriate by the 
<nl>executive director<ol> [commission] to determine the groundwater and surface 
water percentages of alternative water supply. 
<nl>(3)<ol> Permit year - A 365-day period of time during which a person is 
authorized by the Harris-Galveston Coastal Subsidence District to use 
groundwater. 
<nl>(4)<ol> Samples - Water samples taken to determine groundwater and surface 
water percentages in the alternative water supply.
<nl>(5)<ol> Water chemist - A person or persons with expertise in water 
chemistry designated by the executive director to be the principal investigator 

sec.293.365.Appeal of Final Decision of Board.
(a) (No change.) 
(b) If the person appealing the final decision of the board to the commission 
has requested written findings and conclusions from the board, such findings and 
conclusions shall be <nl>submitted to<ol> [filed with] the executive director 
either with the request for commission review if the findings and conclusions 
are then available or as soon thereafter as they become available. 
(c) - (e) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 22, 1997.
TRD-9717028
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 239-4640

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART II. Texas Rehabilitation Commission
CHAPTER 110.Legal Services
40 TAC sec.110.2
The Texas Rehabilitation Commission proposes new sec.110.2, concerning 
subrogation. The section is being proposed to ensure the commission recovers 
funds expended that are owed under the commission's right of subrogation. 
Charles Schiesser, Chief of Staff, has determined that for the first five-year 
period the section is in effect, there will be no fiscal implications for state 
or local government. 
Mr. Schiesser also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be the recovery of funds expended by the commission. There will be 
no effect on small businesses. There is no anticipated economic cost to persons 
who are required to comply with the section as proposed.
For further information, please contact Roger Darley, Deputy General Counsel, 
Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, 
Texas 78751. 
Comments on the proposal may be submitted to Simon Y. Rodriguez, General 
Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 
7300, Austin, Texas 78751. 
The new section is proposed under the Texas Human Resources Code, Title 7, 
Chapter 111, sec.111.018 and sec.111.023, which provides the Texas 
Rehabilitation Commission with the authority to promulgate rules consistent with 
Title 7, Texas Human Resources Code. 
The Human Resources Code, sec.111.059 is affected by this proposal.

sec.110.2. Subrogation. 
(a) Definitions. The following words and terms, when used in this section, shall 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Attorney general--The Office of the Attorney General of Texas, acting 
through the Bankruptcy and Collections Division of the agency.
(2) Commission--The Texas Rehabilitation Commission.
(3) Client--Any person who has applied for or received rehabilitation services 
from the commission. 
(4) Subrogation--The commission's right, established by statute, to recover the 
cost of rehabilitation services for a client from personal insurance, from 
another person for personal injury caused by the other person's negligence or 
wrongdoing, or from any other source. 
(5) Private attorney--An attorney retained individually by a client to pursue a 
private claim or cause of action. 
(b) Legal basis for subrogation. Human Resources Code, sec.111.059, provides 
that in furnishing a person rehabilitation services, including medical care 
services, the Texas Rehabilitation Commission is subrogated to the person's 
right of recovery from personal insurance, from another person for personal 
injury caused by the other person's negligence or wrongdoing, or from any other 
source. The commission's right of subrogation is limited to the cost of services 
provided, and the commissioner may totally or partially waive the commission's 
right of subrogation when the commissioner finds that enforcement would tend to 
defeat the purpose of rehabilitation. 
(c) Collection of subrogated claims. If the client's private attorney elects to 
acknowledge and pursue the commission's subrogated interest in a claim, then the 
Office of the General Counsel will work with the attorney to collect the 
commission's portion of the claim. If the commission's subrogated interest 
cannot be adequately protected by the private attorney, the Office of the 
General Counsel will refer the claim to the attorney general for collection.
(d) Cooperation with clients and private attorneys. The commission will 
cooperate with clients and private attorneys in matters relating to client 
claims. 
(e) Requests for waiver. Requests by clients or private attorneys that the 
commissioner totally or partially waive the commission's right of subrogation, 
on the basis that enforcement would tend to defeat the purpose of 
rehabilitation, should be submitted to the Office of the General Counsel.
(f) The commission may use subrogation receipts as authorized by law.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717194
Charles Schiesser
Chief of Staff
Texas Rehabilitation Commission
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 424-4050

PART IV. Texas Commission for the Blind
CHAPTER 161. Scope of Services and General Clientele
40 TAC sec.161.5
(Editor's note: The text of the following section proposed for repeal will not 
be published. The section may be examined in the offices of the Texas Commission 
for the Blind or in the Texas Register office, Room 245, James Earl Rudder 
Building, 1019 Brazos Street, Austin.)
The Texas Commission for the Blind proposes the repeal of sec.161.5, concerning 
Confidentiality of Records). The section has been rewritten and is being 
simultaneously proposed as new sections in Chapter 163 of this title (pertaining 
to the Vocational Rehabilitation Program), which is the more appropriate 
placement for the rules. The repeal is necessary because of recent changes to 
federal regulations governing the State Vocational Rehabilitation Services 
Program. The Commission's enabling statutes require the agency to cooperate with 
the federal government in providing vocational rehabilitation services, to 
comply with federal conditions required to secure the full benefits of the 
federal laws, and to provide services to individuals eligible under federal law. 
Ernest Pereyra, Deputy Director of Administration and Finance, has determined 
that for the first five years the repeal is in effect there will be no fiscal 
implications for state or local government. 
Mr. Pereyra also has determined that for each year of the first five years the 
repeal as proposed is in effect the public benefits anticipated as a result of 
the repeal will be a clearer public understanding of the vocational 
rehabilitation program in Texas and a rulebase that conforms to federal 
regulations to assure full federal funding of the program. There will be no 
effect on small businesses. There is no anticipated economic cost to individuals 
as a result of the repeal.
Questions about the content of this proposal may be directed to Jean Crecelius 
at (512) 459-2611 and written comments on the proposal may be submitted to 
Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 
days from the date of this publication. 
The repeal is proposed under Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The repeal affects Human Resources Code, Title 5, sec.91.052, concerning the 
vocational rehabilitation program for the blind. 
sec.161.5. Confidentiality of Records. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9717155
Terrell I. Murphy
Interim Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 459-2611

CHAPTER 163. Vocational Rehabilitation Program
SUBCHAPTER H. Confidentiality of Records
40 TAC sec.sec.163.85-163.87
The Texas Commission for the Blind proposes new sec.sec.163.85, 163.86, and 
163.87 for administering the agency's vocational rehabilitation program. The 
sections will be contained in a new Subchapter H, Confidentiality of Records. 
The proposed sections set forth the conditions under which consumer and 
application personal information maintained by the Commission may be provided 
outside the agency and to applicants and consumers.
The Commission's enabling statutes require the agency to cooperate with the 
federal government in providing vocational rehabilitation services, to comply 
with federal conditions required to secure the full benefits of the federal 
laws, and to provide services to individuals eligible under federal law. Federal 
regulations state that all personal information gathered by the Commission about 
applicants and consumers in the administration of the Vocational Rehabilitation 
Program is confidential. The Commission has written its rules for releasing 
personal information in conformance with recent changes to federal regulations 
governing the State Vocational Rehabilitation Services Program to implement 
changes to the Rehabilitation Act of 1973. 
Ernest Pereyra, Deputy Director of Administration and Finance, has determined 
that for the first five years the rules are in effect there will be no fiscal 
implications for state or local government as a result of enforcing or 
administering the sections. 
Mr. Pereyra also has determined that for each year of the first five years the 
rule as proposed is in effect the public benefits anticipated as a result of 
enforcing the rules will be a rulebase that protects the records of applicants 
and consumers in accordance with applicable laws. There will be no effect on 
small businesses. There is no anticipated economic cost to individuals who are 
required to comply with the rule. 
Questions about the content of this proposal may be directed to Jean Crecelius 
at (512) 459-2611 and written comments on the proposal may be submitted to 
Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 
days from the date of this publication.
The new sections are proposed under Human Resources Code, Title 5, Chapter 91, 
sec.91.011(g), which authorizes the commission to adopt rules prescribing the 
policies and procedures followed by the commission in the administration of its 
programs. 
The new sections affect Human Resources Code, Title 5, sec.91.052, concerning 
the vocational rehabilitation program for the blind. 

sec.163.85. Confidentiality of Personal Information. 
All applicant and consumer personal information furnished to and gathered by the 
Commission in the administration of this chapter, including names, addresses, 
records of agency evaluations, reports of medical examinations and treatments, 
financial information, and photographs, shall be held confidential in accordance 
with these rules, 34 Code of Federal Regulations sec.361.38 (relating to the 
protection, use, and release of personal information), Texas Human Resources 
Code, Title 5, sec.91.059 (relating to the misuse of information, and state laws 
concerning the abuse or neglect of children, elderly persons, and disabled 
persons. 

sec.163.86. Conditions for the Release of Personal Information. 
(a) Personal information shall not be disclosed directly or indirectly outside 
the Commission unless the applicant or consumer's consent has been obtained in 
writing, or unless the disclosure or release of personal information: 
(1) is required by federal law; 
(2) is required in response to investigations in connection with law 
enforcement, fraud or abuse, and in response to judicial order; or
(3) is required in order to protect the individual or others when the individual 
poses a threat to his or her own safety or the safety of others. 
(b) Information containing identifiable personal information shall not be shared 
with advisory or other bodies that do not have official responsibility for 
administration of the program. 
(c) Personal information may be released to an organization, agency, or 
individual engaged in audit, evaluation, or research only for purposes directly 
connected with the administration of the vocational rehabilitation program; or 
for purposes that would significantly improve the quality of life for applicants 
and eligible individuals and only if the organization, agency, or individual 
assures that: 
(1) the information will be used only for the purposes for which it is being 
provided; 
(2) the information will be released only to persons officially connected with 
the audit, evaluation, or research; 
(3) the information will not be released to the involved individual; 
(4) the information will be managed in a manner to safeguard confidentiality; 
and 
(5) the final product will not reveal any personal identifying information 
without the informed written consent of the involved individual or the 
individual's representative. 

sec.163.87. Access to Records by Applicants and Consumers. 
(a) Subject to the exceptions contained in subsection (b) of this section, upon 
receiving a signed request from an applicant or consumer, the Commission shall, 
in a timely manner, provide a copy of all requested information maintained by 
the Commission relating to the applicant or consumer to the individual or the 
individual's representative. 
(b) The following are exceptions to subsection (a) of this section: 
(1) Medical, psychological, or other information that the Commission determines 
may be harmful to an applicant may not be released directly to the individual, 
but must be provided to the individual through a third party chosen by the 
individual, which may include, among others, an advocate, a family member, or a 
qualified medical or mental health professional, unless a representative has 
been appointed by a court to represent the individual, in which case the 
information must be released to the court-appointed representative.
(2) If personal information has been obtained from another agency or 
organization, it may be released only by, or under the conditions established 
by, the other agency or organization. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 19, 1997.
TRD-9717154
Terrell I. Murphy
Interim Executive Director
Texas Commission for the Blind
Earliest possible date of adoption: February 9, 1998
For further information, please call: (512) 459-2611

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART XX. Texas Workforce Commission
CHAPTER 800.General Administration
The Texas Workforce Commission (Commission) proposes new sec.sec.800.101, 
800.102, 800.112-800.115, 800.118-800.119, 800.151-800.152, 800.161, 800.171-
800.177, 800.181-800.182, and 800.191, concerning the Incentive Award and 
Sanctions Rules. 
The Texas Government Code sec.302.021 gave the Commission the authority and 
responsibility for administering twenty eight workforce programs in Texas. In 
order to meet that responsibility, the Commission proposes Incentive Award and 
Sanctions Rules to assist local programs in meeting performance requirements and 
encouraging a high level of performance. 
The rules provide for an adjustment model to be used to adjust the incentive 
measures for local conditions. The methodology proposed is based on the 
experience and logic of a model used by the federal government in a workforce 
training program. The methodology is based on a statistical technique called 
multiple regression analysis which addresses the relationship between the 
outcome and several explanatory factors. The relationship with each explanatory 
factor is determined while taking into account its relationship with all the 
other factors. Each adjustment weight represents how much the outcome can be 
expected to change with a one-unit change in an explanatory factor, while 
holding the other explanatory factors constant. The influence of a set of 
explanatory factors can be determined by summing the influence of each 
explanatory factor. Economic factors in the local areas which may be considered 
in the adjustment model include unemployment rate, three-year growth of earnings 
in retail and wholesale trade, annual earnings in retail and wholesale trade, 
employment in manufacturing, agriculture and wholesale trade, population 
density, percentage of families below the federally established poverty level, 
and employer/resident worker ratio. The data sources for the local economic 
factors are calculated from Bureau of Labor Statistics and Bureau of Census 
reports. Client characteristics which may be considered include the percentage 
of two-parent Temporary Assistance to Needy Families (TANF) families, education 
level, length of time on the welfare roll, gender, age, and ethnic groups. 
The proposed rules describe procedures used by the Commission to provide 
incentive awards. Section 800.101 states that the purpose of the incentive award 
rules is to recognize Local Workforce Development Boards (boards) which have 
achieved a high level of performance. Section 800.102 defines terms used in the 
incentive award rules. Section 800.112 lists the criteria used by the Commission 
in making incentive awards. Section 800.113 describes the non-monetary awards 
which may be made by the Commission. Section 800.114 describes the possible 
monetary awards. Section 800.115 lists the factors considered by the Commission 
and a method of calculation used by the Commission to adjust incentive measures 
to ensure that the local conditions of each board are taken into consideration 
in the granting of incentive awards. Section 800.118 describes the distribution 
of incentive awards. Section 800.119 describes the requirements in the use of 
incentive award funds. 
The proposed rules also describe the sanctions which may be imposed by the 
Commission in the case of violations. Section 800.151 states that the purpose of 
the rules is to increase the accountability of the boards and to ensure that 
performance requirements are met. Section 800.152 defines terms used in the 
sanctions rules. Section 800.161 describes the preventive maintenance provided 
by the Commission in the form of technical assistance, program and fiscal 
monitoring as well as quality assurance reviews. Section 800.171 lists some 
possible level one sanctions which may be imposed by the Commission. Section 
800.172 lists some possible level two sanctions. Section 800.173 lists some 
possible level three sanctions. Section 800.174 lists some violations which 
might subject a board to level one sanctions. Section 800.175 lists some 
violations which might subject a board to level two sanctions. Section 800.176 
lists some violations which might subject a board to level three sanctions. 
Section 800.177 describes program specific sanctions. Section 800.181 describes 
the procedures used by the Commission to enforce sanctions. Section 800.182 
describes notice requirements. Section 800.191 describes appeal procedures.
Randy Townsend, Director of Finance, has determined that for the first five-year 
period the rules are in effect, there will be no fiscal implications for state 
or local government as a result of enforcing or administering the proposed 
incentive awards and sanctions rules. Mr. Townsend has certified that there will 
be no foreseeable impact on local economies or overall employment as a result of 
enforcing or administering the proposed incentive awards and sanctions rules. 
Alan Miller, Director of Workforce Development, also has determined that for 
each of the first five years the rules are in effect, the public benefit 
anticipated as a result of enforcing the rules will be increased accountability 
and successful performance by the local programs. There is no anticipated 
adverse impact on small business as a result of enforcing or administering the 
proposed incentive awards and sanctions rules. There are no anticipated economic 
costs to persons who are required to comply with the rules as proposed. All 
official comments submitted to Barbara Cigainero will be considered before the 
final rules are adopted. Comments on the proposed rules may be submitted to 
Barbara Cigainero, Deputy Director of Operational Services, Texas Workforce 
Commission Building, 101 East 15th Street, Room 130BT, Austin, Texas 78778, 
(512) 936-3395. Comments may also be submitted via fax to Ms. Cigainero at (512) 
463-3424 or e-mailed to: bcigaine@twc.state.tx.us. Comments must be received by 
the Commission by 5:00 p.m. on February 10, 1998, for consideration.

SUBCHAPTER D.Incentive Award Rules
40 TAC sec.sec.800.101-800.102, 800.112-800.115, 800.118-800.119
The new sections are proposed under Texas Labor Code sec.301.061, which provides 
the Texas Workforce Commission with the authority to adopt, amend, or rescind 
such rules as it deems necessary for the effective administration of Texas 
Workforce Commission programs. 
The proposed rules affect Texas Labor Code Chapter 302. 

sec.800.101.Scope and Purpose.
(a) The purpose of the incentive is to reward Local Workforce Development Boards 
(boards) that meet the stated goals of the Commission to increase the local 
control of workforce development programs and to put Texans to work. The board 
is responsible for providing strategic planning for the local area for all 
workforce development programs consolidated into the Texas Workforce Commission 
(Commission). The development of an integrated and coherent workforce 
development system at the local level is the primary focus of boards. Thus, this 
policy seeks to recognize boards for achieving high performance as a system, as 
well as high performance on behalf of the populations annually targeted by the 
Commission during the budget process. Incentives will emphasize accountability, 
high performance, continuous improvement and support the state in achieving 
workforce development goals. 
(b) This rule incorporates the existing rule for performance standards for the 
Job Training Partnership Act Program cited in 40 TAC 805.160. State variation of 
performance standards established by the U. S. Department of Labor and/or state 
standards shall be published in the Texas Register on an annual basis in a 
numbered TWC Letter.

sec.800.102.Definitions.
The following words and terms when used in this chapter shall have the following 
meanings, unless the context clearly indicates otherwise.
Core Outcome Measures--Workforce Development Program performance measures 
adopted by the Governor and developed and recommended through the Texas Council 
on Workforce and Economic Competitiveness (TCWEC). TCWEC Core Outcome Measures 
have been adjusted to allow for a follow-up period of six months in lieu of the 
one year period established by TCWEC.
Earnings Gains Measure--The average earnings of persons employed during the 
post-placement follow-up periods (six months) compared to the average earnings 
of the same persons six months prior to program entry.
Employment Measure--The annual percentage of individuals who entered 
unsubsidized employment subsequent to participation in job preparation services, 
who remained employed (by the same or another employer) six months after 
entering employment.
Employment Security Offices--The state agencies established under the U. S. 
Employment Service which was created by the Wagner-Peyser Act, 29 U.S.C.A. 49 et 
seq.
Skill Attainment-Target--The annual target specified by the Commission based 
upon the percentage of individuals who completed skill attainment activities and 
acquired a skill as recognized by the state or an industry in the form of an 
achievement as specified below:
(1) board certification of youth/adult competency levels as specified by Job 
Training Partnership Act sec.106a(5); 
(2) a high school diploma; 
(3) GED certificate; 
(4) post secondary education degree; 
(5) occupational license; 
(6) occupational certification; or 
(7) other certifications recognized by the state. 
TANF Earnings Gains Measure--The average earnings of Temporary Assistance for 
Needy Families (TANF) Participants employed during the post-placement follow-up 
periods (six months) compared to the average earnings of the same persons six 
months prior to program entry.
TANF Employment Measure--The annual percentage of TANF individuals served who 
entered unsubsidized employment subsequent to participating in job preparation 
services, who remained employed (by the same or another employer) six months 
after entering employment.
TANF Skill Attainment Target--The annual target specified by the Commission 
based upon the percentage of TANF individuals who completed skill attainment 
activities and acquired a skill as recognized by the state or an industry in the 
form of an achievement as specified below:
(1) board certification of youth/adult competency levels as specified by Job 
Training Partnership Act sec.106a(5); 
(2) a high school diploma; 
(3) GED certificate; 
(4) post secondary education degree; 
(5) occupational license; 
(6) occupational certification; or 
(7) other certifications recognized by the state. 
Workforce Development Programs--job-training, employment and employment-related 
educational programs and functions as listed in Texas Labor Code sec.302.021.
High Performance Achievement--The top five boards as ranked by performance 
outcomes, adjusted for regional economic conditions according to the model cited 
in sec.800.114 of this title.
Caseload Reduction--The number of percentage points by which the annual average 
monthly number of families receiving TANF cash assistance has declined in a 
Local Workforce Development Area (LWDA) during the performance period as 
specified in TWC Letter ID/NO WD 88-97, "Incentive Policy Adjustment Model."
Local Workforce Development Boards--A board that is certified by the Governor of 
the State of Texas, has a plan approved by the Governor of the State of Texas, 
and is operating multiple workforce development programs through an executed 
contract with the Commission.
Incentive Award Pool--Funding that the Commission shall reserve during the 
annual budget process in sufficient amount to use to reward boards for high 
performance achievement.

sec.800.112.Criteria for Award.
(a) To encourage system building and accountability in meeting the needs of 
employers and jobseekers, the state will apply four outcome measures to 
establish a high performance recognition. The four outcome measures are:
(1) Employment Measures -- retention in employment for six months following 
placement; 
(2) Earnings Gains Measures -- earnings over the same period; 
(3) Skill Attainment Measures -- work-related skills attained and documented by 
credentials accepted by states or industries; and 
(4) Caseload Reduction -- percentage decrease in TANF households. (3) (3) Each 
board will be evaluated on these core outcome measures for high performance 
recognition. 
(b) In order to be eligible to receive an incentive, a board must be within 90% 
of the variance range established for each contract performance measure. 

sec.800.113.Non-Monetary Incentive Awards.
(a) Non-monetary awards for high performance achievement and continuous 
improvement in meeting performance measures may include, but are not limited to, 
plaques, certificates of achievement, or other formalized recognition accolades. 
(b) To be eligible for a non-monetary incentive award, a certified board must be 
one of the five outstanding performers for any one of the four specified core 
outcome measures. 
(c) Non-monetary incentive awards will be awarded annually based on performance 
beginning in Fiscal Year 1998, which commenced September 1, 1997. 
(d) A board or center may be recognized as an outstanding performer under more 
than one measure. 

sec.800.114.Monetary Incentive Awards.
(a) Monetary incentives will be distributed to boards based on high performance 
achievement to a targeted population, and may be used to carry out innovative 
workforce investment activities consistent with state and federal requirements 
as determined by the Commission. 
(b) In awarding monetary incentives, the Commission shall give priority to 
boards which are high performance achievers in serving targeted populations. 
Monetary incentives will reward up to five top performing boards based on high 
performance in meeting a goal to be annually adopted by the Commission in the 
budget process. 
(c) Monetary incentive awards will be awarded annually based on performance 
beginning in Fiscal Year 1999, commencing September 1, 1998.

sec.800.115.Incentive Policy Adjustment Model.
(a) Incentive measures will be adjusted to assure that they are neutral with 
respect to local conditions. 
(b) Adjustment factors considered shall be limited to economic factors, labor 
market conditions, geographic factors, and client characteristics.
(c) The adjustment rates shall be calculated for each of the LWDAs. The 
calculated rates shall be used to produce adjusted performance standard rates 
for each of the LWDAs. 
(d) The adjusted outcome measures specified in sec.800.112 of this title will be 
published in the Texas Register prior to the award of incentive grants. 

sec.800.118.Distribution of Incentive Awards.
The monetary Incentive Award Pool will be awarded to the top five boards meeting 
or exceeding their targeted performance measures for the targeted populations.

sec.800.119.Use of Funds.
Boards that receive an incentive award shall use the incentive award to carry 
out innovative workforce investment activities as approved by the Commission.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Issued in Austin, Texas, on December 29, 1997.
TRD-9717176
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: February 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER E.Sanctions Rules
40 TAC sec.sec.800.151-800.152, 800.161, 800.171-800.177, 800.181-800.182, 
800.191
The new rules are proposed under Texas Labor Code, sec.301.061, which provides 
the Texas Workforce Commission with the authority to adopt, amend, or rescind 
such rules as it deems necessary for the effective administration of Texas 
Workforce Commission programs. 
The proposed rules affect Texas Labor Code Chapter 302.

sec.800.151.Scope and Purpose.
The purpose of this subchapter is to ensure accountability of Local Workforce 
Development Boards (boards) in meeting the needs of employers and jobseekers, 
ensure performance in reaching outcome measures, ensure adequate returns on 
state investments and support the state in achieving its goals.

sec.800.152.Definitions.
The following words and terms when used in this chapter shall have the following 
meanings, unless the context clearly indicates otherwise.
Performance Standard--A numerical value setting the minimum acceptable result to 
be achieved for a performance measure.
Level One Sanction--The sanction that the Texas Workforce Commission 
(Commission) may impose as a response to a contractual breach and/or failure to 
comply with specific state and federal requirements and Commission policies.
Level Two Sanction--The sanction that either the Commission or the Texas Council 
on Workforce and Economic Competitiveness may impose as a response to a severe 
problem and the potential negative impact such a problem may have on the local 
workforce development area or the state.
Level Three Sanction--The sanction that the Commission may impose where a severe 
and/or continued failure to comply with state and/or federal laws, regulations 
or Commission policies has gone uncorrected.

sec.800.161.Preventive Maintenance.
Preventive maintenance measures, developed to ensure program outcome and provide 
fiscal accountability, include technical assistance, timely and effective 
program and fiscal monitoring, and quality assurance reviews.
(1) Technical assistance is performance-driven and outcome-based, stressing the 
sharing of information and best practice models. The focus is on providing 
assistance to front-line staff as they deliver basic services. Assistance is 
provided for both fiscal and program issues. 
(2) Program and Fiscal Monitoring assistance may include site visits, desk 
reviews, and analysis of both financial and program outcomes to help identify 
potential weaknesses before such weaknesses result in sub-standard performance 
or questioned costs. Monitoring may result in recommendations that provide 
practical solutions that can be used to take immediate corrective action. 
(3) Quality Assurance assistance includes routine evaluation of essential 
quality indicators and certification systems and will be enhanced with timely 
and relevant professional training to help develop and maintain the knowledge, 
skills, and abilities required across program lines. 

sec.800.171.Level One Sanctions.
Level one sanctions may result in, but are not limited to, one or more of the 
following actions:
(1) the requirement that the board participate in technical training and quality 
assurance workshops designated by the Commission; 
(2) development and implementation of a formal corrective action plan to address 
the weaknesses identified; 
(3) submission of additional and/or more detailed financial and/or performance 
reports; 
(4) designation as a high-risk board requiring additional monitoring visits; and 
(5) repayment of disallowed costs. 

sec.800.172.Level Two Sanctions.
Level two sanctions may result in, but are not limited to, one or more of the 
following actions:
(1) imposition of one or more level one sanctions; 
(2) restrictions on ability to draw down funds; 
(3) possible delay, suspension, or denial of contract payments; 
(4) prohibition on the use of contracted service providers;
(5) advance approval of actions required by the Commission;
(6) formal Commission representation at all board meetings; and 
(7) reduction of grant or contract allocations in future periods. 

sec.800.173.Level Three Sanctions.
Level three sanctions may result in, but are not limited to, one or more of the 
following actions:
(1) imposition of one or more level one sanctions; 
(2) imposition of one or more level two sanctions; 
(3) deobligation of current year funds; 
(4) contract cancellation or termination; and 
(5) submission and Commission approval of a corrective action plan. 

sec.800.174.Violations Subject to Level One Sanctions.
Violations which may result in the imposition of level one sanctions include, 
but are not limited to, the following:
(1) failure to attain and/or maintain annual performance within 90% of 
established contracted standards; 
(2) failure to attain and/or maintain annual participation rates within 90% of 
established contracted standards; 
(3) failure to submit required financial and/or performance reports; 
(4) failure to take corrective action to resolve findings identified during 
monitoring, investigative or program reviews; 
(5) failure to rectify and/or resolve all independent audit findings and/or 
questioned costs within required timeframes; 
(6) failure to submit the annual audit required by OMB Circular A-133, as may be 
amended; 
(7) breach of administrative and service contract requirements; and 
(8) failure to retain required service delivery and financial records. 

sec.800.175.Violations Subject to Level Two Sanctions.
Violations which may result in the imposition of level two sanctions include, 
but are not limited to, the following:
(1) failure to rectify a level one sanction within 180 days of notice; 
(2) committing a second violation within the same fiscal year; 
(3) failure to rectify reported threats to health and safety of program 
participants within 30 days of notice; 
(4) failure to attain and/or maintain annual performance within 75% of 
established contracted standards; and 
(5) failure to attain and/or maintain annual participation rates within 75% of 
established contracted standards. 

sec.800.176.Violations Subject to Level Three Sanctions.
Violations which may result in the imposition of level three sanctions include, 
but are not limited to, the following:
(1) failure to rectify a level one sanction within 360 days of notice; 
(2) failure to rectify a level two sanction within 180 days of notice; 
(3) committing three or more level one violations or two or more level two 
violations within the same fiscal year; 
(4) failure to rectify reported threats to health and safety of program 
participants within 90 days of notice; 
(5) failure to return annual performance to 75% of established contracted 
standards within two program years; and 
(6) failure to return annual participation rates to 75% of established 
contracted standards within two program years. 

sec.800.177.Program Specific Sanctions.
Failure of a board to meet its targeted Temporary Assistance to Needy Families 
(TANF) participation rate for two consecutive quarters may result in a reduction 
in the TANF allocation in an amount not to exceed 25% of the funding allocated 
to the Local Workforce Development Area. Funds retained by the Commission as a 
result of such a reduction in allocation shall be used to provide technical 
assistance to the sanctioned board.

sec.800.181.Enforcement. 
(a) The specific sanction(s) to be imposed by this policy shall be determined by 
Commission staff. 
(b) The Commission shall work in concert with the Texas Council on Workforce and 
Economic Competitiveness, whenever necessary, to impose sanctions as required by 
the Texas Government Code, sec.2308.268 and sec.2308.269.
(c) The Commission shall send a written notice of pending sanctions indicating 
the violation, the corrective action, and the impending sanction.
(d) The written notice shall be sent to the board chair and the chief elected 
official of the Local Workforce Development Area. 
(e) The Commission shall send the written notice at least five working days in 
advance of the effective date of the sanction. 

sec.800.182.Notice.
(a) The date of notice shall be the date the facsimile transmission (fax) notice 
is sent to the board. If transmitted or recorded as delivered after 5:00 p.m., 
the next business day will be considered the date of notice.
(b) All administrative violations and enforcement fee notices will be sent by 
the following methods: 
(1) facsimile (fax) transmission for all notices; 
(2) letter by regular mail for violations subject to a level one violation; and 
(3) letter by certified mail, return receipt requested, for level two or level 
three violations. 

sec.800.191.Appeal.
(a) Boards or subrecipients may appeal the decision of the Commission. 
(b) Requests for appeal must be submitted within ten days of the date of notice 
to the General Counsel, Texas Workforce Commission, 101 East 15th Street, Room 
674, Austin, Texas 78778. 
(c) Requests for appeal will be referred to a hearing officer. The hearing 
officer will receive oral and written evidence from both parties and prepare a 
written proposal for decision. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt. 
Issued in Austin, Texas, on December 29, 1997.
TRD-9717177
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Earliest possible date of adoption: February 2, 1998
For further information, please call: (512) 463-8812