ADOPTED RULES
An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice.
If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes.

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 9.Liquefied Petroleum Gas Division
The Railroad Commission of Texas adopts amendments to sec.sec.9.651, 9.1751, and 
9.1752, relating to applicability; applicability; MC-330 or MC-331 Department of 
Transportation specification requirements and exemption in 49 Code of Federal 
Regulations sec.173.315(k); and new sec.9.1351, relating to requirements for 
movable fuel storage tenders, such as farm carts, without changes to the text as 
published in the December 19, 1997, issue of the Texas Register (22 TexReg 
12374). The sections describe requirements for nonspecification units, which are 
transports that do not meet the requirements of the United States Department of 
Transportation (DOT) specifications MC-330 or MC-331; for specification units; 
and for farm carts, most of which are also nonspecification units. 
The Commission adopts the amendments and new section in order to adopt by 
reference 49 Code of Federal Regulations, Parts 171 - 180. In particular, the 
Commission adopts the new requirements found in DOT's rulemaking HM-200, which 
will become effective October 1, 1998, concerning the transportation of 
hazardous materials. The main effect of HM-200, specifically 49 CFR 
sec.171.1(a)(1), is that intrastate transportation of hazardous materials 
(including LP-gas) will also fall under DOT's jurisdiction. All LP-gas 
transportation vehicles for an entity which operates interstate must comply with 
MC-330 or MC-331 even if some of the vehicles are used only intrastate. Entities 
which operate interstate are not eligible for the 49 CFR sec.173.315(k) 
exemption. 
In Texas, this impact will be greater than in most other states because of the 
number of nonspecification nonexempt units which will no longer be allowed to be 
used in LP-gas transportation service. DOT published its final rule HM-200 in 
the January 8, 1997, issue of the Federal Register, with an effective date of 
October 1, 1997. Subsequently, DOT extended the effective date to October 1, 
1998. However, the final rule allows for an exemption and an extension of time 
until July 1, 2000, for compliance. DOT's regulations require all units operated 
in interstate or intrastate service to comply with the MC-330 or MC-331 
specifications; however, certain nonspecification units that meet the exemption 
set forth in 49 CFR sec.173.315(k) may remain in intrastate service. To do so, 
the container and vehicle must: 
1. have a minimum working pressure of 250 psig; 
2. have a water capacity of 3,500 gallons or less;
3. have been manufactured to the ASME Code prior to January 1, 1981; 
4. comply with NFPA 58; 
5. have been inspected and tested in accordance with subpart E of Part 180, 
Title 49; 
6. be operated exclusively in intrastate operation in a state where its 
operation was permitted by that state prior to January 1, 1981; 
7. have been used to transport LP-gas prior to January 1, 1981; and 
8. be operated in conformance with all other requirements of this subchapter. 
The Commission's LP-gas safety rules require all LP-gas transport units, both 
transport and bobtail vehicles, to be registered with the LP-Gas Section. 
Current Commission rules allow for specification, nonspecification, exempt, and 
nonspecification nonexempt units to be registered. Nonspecification and 
nonspecification nonexempt units that were not registered prior to June 1, 1989, 
may not be registered after that date, pursuant to sec.9.1752. Nonspecification 
units which qualify for the sec.173.315(k) exemption may remain in LP-gas 
transportation service. 
The main impact of HM-200 in Texas relates to nonspecification nonexempt units 
currently registered by the Commission and used in the intrastate transportation 
of LP-gas. According to LP-Gas Section records, there are approximately 108 
nonspecification nonexempt units (excluding an estimated seven 200-psig 
containers) that would have to be removed from LP-gas transportation service by 
October 1, 1998, or under the extension of time allowed by DOT, by July 1, 2000. 
The majority of the currently-registered nonspecification nonexempt units in 
Texas have a pressure rating of 200 psig and therefore do not meet the 
requirements of the exemption; most of these would not be allowed to remain in 
LP-gas transportation service after July 1, 2000. However, some of the 200-pound 
containers which were constructed to the U-69 ASME Code in effect until about 
1948 could possibly remain in service. The Commission estimates about seven 
currently registered units could apply to DOT for an exemption; one entity 
operating one of these seven units could apply for the exemption, with the other 
entities joining the application. There is no guarantee that DOT will grant an 
exemption. The U-69 code required a safety factor of 5:1, and vessels 
constructed to the codes after U-69 were built to a safety factor of 4:1. A 200-
pound tank built to the U-69 Code with a safety factor of 5:1 would have a 
safety rating of 1,000 pounds (200 pounds multiplied by five). A 250-pound tank 
built with a safety factor of 4:1 also has a safety rating of 1,000 pounds. The 
older 200-pound tanks would have the same safety factor, so DOT might grant an 
exemption for these tanks, provided the vessels also meet the other conditions 
of sec.173.315(k). HM-200 also addresses other modes of transporting LP-gas such 
as farm carts. The carts in existence, which typically have a water capacity of 
250 to 500 gallons, generally are not constructed to MC-330 or MC-331 
specifications, but some of the carts may meet the exemption of sec.173.315(k). 
Any such carts which do not would be required to be removed from LP-gas 
transportation service by July 1, 2000. Commission rules do not require farm 
carts to be registered, so the dollar impact of this effect of HM-200 could not 
be estimated. HM-200 references the National Fire Protection Association 
pamphlet 58, Standard for the Storage and Handling of Liquefied Petroleum Gases 
(known as "NFPA 58"). The Commission has not adopted NFPA 58, but is currently 
drafting a separate rulemaking to adopt this adoption by reference in the 
future. The Commission does not sell any NFPA publications; these may be 
obtained from the National Fire Protection Association at (800) 344-3555 or 
through the Texas Propane Gas Association at (512) 836-8620. The Code of Federal 
Regulations is a United States Department of Transportation publication; these 
are federal statutes and may be obtained through DOT or through most public 
libraries. 
With regard to NFPA 58, there is one requirement in Chapter 6 of NFPA 58 which 
may have specific impact on some of the nonspecification units in Texas 
(although licensees should review all applicable sections of NFPA 58). Section 
6-3.2.1 requires liquid hose of 1 1/2 inch and larger size or vapor hose of 1 
1/4 inch and larger size to have emergency shutoff valves, unless one of the two 
listed exceptions is met. Most hose commonly used today is smaller than these 
sizes and so would not be affected; however, this could apply to some units 
which then would be required to have the required valves installed.
Adopted amendments to sec.sec.9.651, 9.1751, and 9.1752, and adopted new 
sec.9.1351 add language to adopt 49 CFR Parts 171 - 180, and the exemption found 
in sec.173.315(k). Sections 9.1751 and 9.1752 have new titles which more 
accurately reflect the content of those sections. 
The Commission received one comment on the proposal. The commenter objected to 
the proposal because the United States Constitution "clearly reserves the 
regulation of intra-state commerce to the individual states." In response, the 
Commission points out that federal law (49 U.S.C. sec.5103(b)) states, in 
pertinent part: "The Secretary [of the United States Department of 
Transportation] shall prescribe regulations for the safe transportation of 
hazardous material in intrastate, interstate, and foreign commerce. [Emphasis 
added.] The regulations . . . shall govern safety aspects of the transportation 
of hazardous material the Secretary considers appropriate." The federal statute 
gives the Secretary the discretion to determine appropriate safety regulations 
for the transportation of hazardous material, and in promulgating HM-200, the 
Secretary has fulfilled the statutory mandate to prescribe such rules. 
Therefore, the Commission makes no changes to the adopted rule.

SUBCHAPTER H.Nonspecification Transport Containers; Trucks Transporting LP-Gas 
in Portable Containers
16 TAC sec.9.651
The amendment is adopted under the Texas Natural Resources Code, sec.113.051, 
which authorizes the commission to adopt rules relating to any and all aspects 
or phases of the LP-gas industry that will protect or tend to protect the 
health, welfare, and safety of the general public, and pursuant to 49 U.S.C. 
sec.sec.5101 - 5127 and 49 C.F.R. sec.1.53. The Texas Natural Resources Code, 
sec.113.051, is affected by the adopted amendment. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802706
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: March 16, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 463-7008

SUBCHAPTER P.Farm Carts
16 TAC sec.9.1351
The new section is adopted under the Texas Natural Resources Code, sec.113.051, 
which authorizes the commission to adopt rules relating to any and all aspects 
or phases of the LP-gas industry that will protect or tend to protect the 
health, welfare, and safety of the general public, and pursuant to 49 U.S.C. 
sec.sec.5101 - 5127 and 49 C.F.R. sec.1.53. The Texas Natural Resources Code, 
sec.113.051, is affected by the adopted new section.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802707
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: March 16, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 463-7008

SUBCHAPTER T.DOT MC-330 and MC-331 Transport Containers
16 TAC sec.9.1751, sec.9.1752
The amendments are adopted under the Texas Natural Resources Code, sec.113.051, 
which authorizes the commission to adopt rules relating to any and all aspects 
or phases of the LP-gas industry that will protect or tend to protect the 
health, welfare, and safety of the general public, and pursuant to 49 U.S.C. 
sec.sec.5101 - 5127 and 49 C.F.R. sec.1.53. The Texas Natural Resources Code, 
sec.113.051, is affected by the adopted amendments.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802708
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: March 16, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 463-7008

CHAPTER 15.Alternative Fuels Research and Education Division
SUBCHAPTER A.General Rules
The Railroad Commission of Texas adopts the repeal of sec.sec.15.1, 15.2, and 
15.21-15.27, relating to definitions; loading rack registration; fee on delivery 
of odorized liquefied petroleum gas (LPG); report and remittance of fees; 
exemptions; loading rack refunds; commission refund; penalty for failure to 
report as required; and civil penalties, without changes to text published in 
the November 21, 1997, issue of the Texas Register (22 TexReg 11200). The 
commission simultaneously adopts new sec.sec.15.1, 15.3, 15.5, 15.41, 15.45, 
15.50, 15.55, 15.60, 15.65, 15.70, 15.75, 15.80, 15.85, 15.90, 15.95, and 
15.100, relating to purpose; general provisions; AFRED forms; definitions; 
registration of odorizers, odorizer agents, and importers; fee on delivery of 
odorized LPG; report and remittance of fees; exemptions; odorizer or importer 
refunds; commission refund; penalty for failure to report as required; civil 
penalties; records; power of entry; audits and investigations; procedure for 
compliance with or challenge to audit results; and interpretation and 
application, with changes to the text published in the November 21, 1997, issue 
of the Texas Register (22 TexReg 11200). The commission adopts simultaneously 
the repeal of existing rules and new rules to permit renumbering and insertion 
of new rules in a logical sequence and to implement the provisions of Senate 
Bill 925 (S.B. 925) enacted by the 75th legislature and effective September 1, 
1997. The new rules delete and amend some current definitions, and add new ones; 
provide for new collection mechanisms; and add rules relating to exemptions, 
refunds, and penalties.
New sec.15.1 states the purpose of the rules, new sec.15.3 states general 
provisions governing the calculation of deadlines, and new sec.15.5 lists the 
forms used for odorizer, odorizer agent, and importer registration, fee 
reporting and remitting, and exemption and refund requests.
New sec.15.41, relating to definitions, has been renumbered from repealed 
sec.15.1; the text has been altered to delete definitions for terms no longer 
used in the statute, e.g., "cargo container," "first sale," "loading rack," and 
"loading rack operator"; and to add definitions for "AFRED," "continuous 
movement," "delivery," "director," "importer," "marketer," "means of 
conveyance," "odorizer," "owner of LPG at time of import," "owner of LPG at time 
of odorization," "person," "sold and placed into commerce," "supplier," "time of 
import," and "time of odorization." 
New sec.15.45, relating to registration of odorizers, odorizer agents, and 
importers, replaces repealed sec.15.2, relating to loading rack registration. 
The new rule declares persons odorizing LPG within the State of Texas or 
importing odorized LPG into the State of Texas to be subject to this section on 
September 1, 1997, or on the date that the person first odorizes LPG within the 
State of Texas or imports odorized LPG into the State of Texas, and requires 
these persons to register within prescribed deadlines using AFRED forms. The new 
rule also sets out conditions under which odorizers may delegate duties to 
suppliers. 
New sec.15.50, fee on delivery of odorized LPG, replaces repealed sec.15.21, 
with amendments to implement the requirements of S.B. 925 assigning collecting, 
reporting and remitting responsibilities to persons odorizing LPG in Texas or 
importing odorized LPG into Texas. 
New sec.15.55, report and remittance of fees, replaces repealed sec.15.22; makes 
the wording consistent with S.B. 925 requirements; and provides persons who are 
required to report and remit fees an opportunity to submit amended reports for 
the months of September 1997 through March 1998, without penalty, provided the 
amended reports are postmarked by April 27, 1998. 
New sec.15.60, exemptions (an amended version of repealed sec.15.23), conforms 
wording to S.B. 925 language and requirements. 
New sec.15.65, odorizer or importer refunds, replaces repealed sec.15.24; the 
new language conforms to S.B. 925. 
New sec.15.70, commission refund, is only slightly changed from repealed 
sec.15.25, again to make the wording consistent with that in S.B. 925.
New sec.15.75, penalty for failure to report as required, replaces repealed 
sec.15.26 and changes only the term "loading rack operator" to "persons." New 
sec.15.80, civil penalties, is identical to repealed sec.15.27. New sec.15.85, 
records, requires odorizers and importers to maintain, for a minimum of four 
years, documentation regarding their operations to enable the commission to 
determine whether odorizers and importers have remitted the proper AFRED fees 
due under new sec.15.50. 
New sec.15.90, power of entry; audits and investigations, clarifies the 
commission's authority to enter an office, premises, or place of business of an 
odorizer or importer to inspect and obtain copies of papers, books, accounts, 
documents, or other business records, for the purpose of conducting an audit or 
investigation or enforcing or administering the LPG delivery fees or commission 
rules. 
New sec.15.95, procedure for compliance with or challenge to audit results, 
spells out procedures following a commission audit of an odorizer or importer.
Finally, new sec.15.100, interpretation and application, explains the 
commission's interpretation and application of the fee rules in several fact 
situations, and demonstrates how the commission will determine which entities 
are responsible for paying and collecting and remitting the fee. 
Significant changes made by S.B. 925 include (1) the application of delivery 
fees to imported LPG; (2) imposition of the fee upon delivery into any means of 
conveyance to be sold and placed into commerce rather than upon the first sale 
of odorized LPG delivered into a cargo container at a loading rack located in 
Texas; and (3) assignment of collecting, reporting and remitting duties to 
odorizers and importers rather than to loading rack operators. 
S.B. 925's express application of delivery fees to imported LPG will require 
some companies that receive LPG from a source of supply located outside Texas to 
report and remit fees to the commission. Nevertheless, the commission does not 
anticipate burdensome changes in the current fee administration system to result 
either from S.B. 925's imposition of the fee at the time of odorization or 
import (rather than upon delivery of odorized LPG into a cargo container at a 
loading rack located in Texas) or from S.B. 925's assignment of collecting, 
reporting and remitting duties to odorizers and importers (rather than to 
loading rack operators), because, in the majority of cases under the repealed 
rules, deliveries of LPG that are subject to the delivery fee appear to occur at 
the time of odorization, and, in the majority of cases under the repealed rules, 
the loading rack operator appears to be the person who odorizes the LPG. 
Furthermore, the fees themselves are not changing. The commission believes that 
the new rules specify the least onerous way to ensure equitable administration 
of delivery fees and comply fully with S.B. 925. 
New sec.15.41 also defines "continuous movement," to clarify eligibility for the 
statutory exemption of exported LPG from delivery fees. The new rules do not 
include significant changes in the existing system for documenting export 
exemption claims. 
To illustrate the intended application and outcome of the new rules, the 
commission offers the following eight hypothetical situations involving the 
odorization of LPG or the import of odorized LPG. These examples are not 
exhaustive, however, and the commission will apply the statute and the rules in 
particular cases to achieve the intended statutory purpose of assessing the fee 
on LPG that is not otherwise exempt and is either odorized in Texas or imported 
in odorized form into Texas.
Treatment of Imports. Wholesale quantities of odorized LPG are imported into 
Texas under different business circumstances and contractual conditions. In each 
case, the statute requires the fee to be assessed on the total volume of LPG 
imported in the transport vehicle, regardless whether the entire load is 
delivered in Texas. The following examples are intended to illustrate how the 
new method of administering LPG delivery fees applies to five import situations. 
Example 1. Import by Texas marketer. In this example, odorized LPG is sold and 
delivered at an out-of-state loading facility into a transport vehicle owned by 
a Texas LPG marketer. The LPG is hauled back into Texas and delivered into a 
bulk storage facility.
Under the rules, the marketer is considered the importer by virtue of being the 
owner of odorized LPG at the time of import. The time of import is defined by 
statute as the time of entry into Texas (Texas Natural Resources Code, 
sec.113.244(c)). The marketer is responsible for registering as an importer on 
AFRED Form 6. The marketer is also responsible for reporting each month on AFRED 
Form 1 and remitting to the commission the appropriate delivery fee on the total 
number of loads imported. These reports and remittances are due on the 25th day 
of the following month, e.g., October 25 for loads imported during September. 
The statute assesses a mandatory late penalty of 5 percent on remittances that 
are 30 days late or less and a mandatory late penalty of 10 percent on 
remittances that are more than 30 days late.
Example 2. Import by licensee based outside Texas. In this example, odorized LPG 
is loaded into a bobtail or other transport vehicle at an out-of-state bulk 
storage plant or other loading facility and delivered to customers in Texas by a 
marketer whose principal place of business and outlets are all outside Texas. 
Under the rules, the marketer is considered an importer by virtue of being the 
owner of odorized LPG at the time of import. The time of import is defined by 
statute as the time of entry into Texas (Texas Natural Resources Code, 
sec.113.244(c)). The marketer is responsible for registering as an importer on 
AFRED Form 6. The marketer is also responsible for reporting each month on AFRED 
Form 1 and remitting to the commission the appropriate delivery fee on all 
volumes of odorized LPG imported.
Example 3. Import by supplier. In this example, a supplier delivers odorized LPG 
at an out-of-state loading facility into the supplier's own transport vehicle, 
hauls the LPG into Texas, and delivers it to a bulk storage facility located in 
this state.
Under the rules, the supplier is considered the importer by virtue of owning the 
LPG at the time of import. The supplier is responsible for registering as an 
importer on AFRED Form 6 and for reporting and remitting monthly as described in 
example 1 above.
Example 4. Import by common carrier. In this example, a supplier delivers 
odorized LPG at an out-of-state loading facility into a transport vehicle owned 
by a common carrier, who hauls the LPG into Texas and delivers it to an LPG 
marketer. 
Under the rules, the owner of the LPG at the time of import is responsible for 
registering as an importer and for reporting and remitting the fee to the 
commission. The owner would not normally be the common carrier, who does not 
take title to the LPG. If the marketer holds title to the LPG at the time of 
import, the fee is administered as in example 1 above. If the supplier holds 
title to the LPG at the time of import, the fee is administered as in example 3 
above. 
Example 5. Import by marketer's transportation subsidiary. In this example, 
odorized LPG is delivered at an out-of-state loading facility into a transport 
vehicle owned by a subsidiary of an LPG marketer, hauled into Texas, and 
delivered into a bulk storage tank located in this state. 
Under the rules, the marketer or the marketer's transportation subsidiary is 
considered the importer, depending on which entity owned the LPG at the time of 
import. The marketer or the transportation subsidiary is responsible for 
registering as an importer on AFRED Form 6 and for reporting and remitting 
monthly as shown in example 1 above. 
LPG Odorized in Texas. LPG that is odorized in Texas is also bought, sold, 
transferred, stored, and distributed under many different business arrangements 
and conditions. In each case, the fee is assessed on the total net volume of LPG 
odorized and delivered into any means of conveyance and not in continuous 
movement to a destination outside Texas, regardless whether the entire load is 
ultimately consumed in Texas. The examples that follow are intended to 
illustrate how the new method of administering LPG delivery fees applies in 
three typical situations. 
Example 6. Odorizer owns the LPG. In this example, an LPG supplier that holds 
title to unodorized LPG adds odorant to each load of LPG delivered at the 
supplier's refinery, natural gas processing plant, underground storage cavern, 
or other LPG loading facility. 
Under the rules, this supplier's operations related to delivery-fee 
administration continue virtually unchanged, since the duties and 
responsibilities of odorizers are the same as the duties and responsibilities of 
loading rack operators prior to the effective date of S.B. 925. The supplier 
continues to be responsible for registering with the commission, as an odorizer, 
and continues to collect, report, and remit fees by virtue of being the person 
who odorizes the LPG (Texas Natural Resources Code, sec.113.244(b)).
Example 7. Storage or terminal operator odorizes supplier's LPG. In this 
example, unodorized LPG owned by one or more LPG suppliers is stored underground 
in a cavern owned by an unaffiliated operator or shipped through a pipeline to a 
terminal owned by an unaffiliated operator. The storage or terminal operator 
odorizes the LPG load by load upon delivery into transport vehicles or other 
means of conveyance that may be owned by suppliers, common carriers, marketers, 
or other persons. Under previous law that assigned collecting, reporting and 
remitting duties to loading rack operators, LPG handled in this manner was 
normally invoiced, and delivery fees were collected and remitted, by the 
supplier who owned the LPG, not by the storage or terminal operator who added 
the odorant. Suppliers were assigned collecting and remitting responsibilities 
by the "first invoicer" provision of the commission's March 1992 rule, which 
defined "loading rack operator" as the person or entity invoicing the first sale 
of odorized LPG dispensed into a cargo container at a loading rack, if the 
person or entity controlling the day-to-day operations of the loading rack was 
not the person or entity invoicing the first sale of the LPG. 
S.B. 925 expressly requires the person who odorizes the LPG to collect the fee 
and remit it to the commission. To avoid unnecessary disruption and minimize 
administrative cost to the industry, the commission's rules permit a supplier to 
continue to collect and remit fees as agent for an odorizer at a storage or 
terminal facility if (1) the odorizer never held title to the LPG; and (2) the 
odorizer and supplier execute and file with the commission AFRED Form 6A, to 
make the supplier legally responsible for performing the odorizer's duties 
related to administration of delivery fees under Texas Natural Resources Code, 
sec.sec.113.241-113.250, inclusive. If no AFRED Form 6A is on file with the 
commission, any person who odorizes LPG is responsible for registering as an 
odorizer and for collecting and remitting fees to the commission on all 
nonexempt loads the person odorizes. 
This choice is intended to minimize disruption and administrative costs by 
allowing suppliers and operators of storage or terminal facilities to continue 
their existing delivery-fee arrangements or enter into new arrangements, where 
these are cost-effective and appropriate, while fully implementing all 
requirements of S.B. 925.
Example 8. Storage operator odorizes marketer's LPG; delivery in the absence of 
a sale. In this example, a marketer either contracts with a supplier for later 
delivery from the supplier's storage or purchases unodorized LPG and places it 
in a storage facility owned by a supplier or other operator. At a later date, 
the LPG is retrieved from storage, odorized by the storage facility operator, 
and either transported to the marketer or picked up by the marketer in the 
absence of a sale at the time of odorization. S.B. 925 expressly requires the 
owner of LPG at the time of odorization to pay the fee and requires the person 
who odorizes the LPG to collect the fee and remit it to the commission. Under 
the rules, the marketer is responsible for paying the fee to the person who 
odorized the marketer's LPG on each load odorized and delivered upon retrieval 
from storage, by virtue of the marketer's being the owner of LPG at the time of 
odorization, whether or not a sale took place simultaneously. The commission 
views S.B. 925 as applying to deliveries of all nonexempt loads of LPG that are 
sold and placed into commerce in Texas, without limitation as to the timing of 
the sale. In this example, the fee is collected, reported, and remitted to the 
commission by the storage facility operator, by virtue of the storage facility 
operator's being the person who odorized the LPG. Further, in this example, the 
storage facility operator may not designate the marketer as an odorizer agent on 
AFRED Form 6A because no supplier is involved. 
The commission received no comments on the proposed repeals and new rules from 
any groups or associations. The commission received two comments on the proposed 
repeals and new rules from companies engaged in the sale or distribution of LPG. 
TE Products Pipeline Company, Limited Partnership ("Teppco") commented that S.B. 
925 unfairly places hydrocarbon storage operators that do not own the LPG they 
store into the regulatory framework for collection and administration of LPG 
delivery fees. The commission reminds Teppco that the commission took no 
position on S.B. 925 during the legislative session; nevertheless, the 
commission acknowledges that the legislature's assignment of collecting and 
remitting duties to odorizers in S.B. 925 clearly imposes a new administrative 
responsibility on operators of storage facilities that do not own the stored 
product. The commission's goal is to minimize the burden on these operators and 
other affected persons by administering S.B. 925 as efficiently as possible 
consistent with the legislature's clear intent. The commission believes this 
goal is achieved by the framework set out in the rules, under which owners of 
stored LPG may assume odorizers' administrative responsibilities when such an 
arrangement is in the parties' mutual interest. 
Teppco commented that in Examples 7 and 8 in the preamble to the proposed rule 
and in proposed sec.sec.15.100(c)(2) and (3) the commission makes an unnecessary 
distinction between a supplier and a marketer to reach the conclusion that a 
marketer cannot be designated as the collection agent. The commission responds 
that the terms "supplier" and "marketer" are used merely to clarify the 
distinction commonly made in the LPG industry between companies whose primary 
business is producing and/or wholesaling (i.e., supplying) LPG to resellers and 
companies whose primary business is reselling (i.e., marketing) LPG to end 
users. The commission is aware that some companies do both; however, whether a 
company functions primarily as a supplier or as a marketer may be considered in 
determining that company's role in administering the fee.
Teppco further urged the commission to allow remitters to remit only those fees 
actually collected during the preceding month, while reporting total fees 
accrued during that month. The commission responds that the provision to which 
Teppco objects has been in effect since 1991 and has occasioned no complaints 
from persons subject to the fee since that time. Persons who are required to 
collect and remit LPG delivery fees but whose customers who do not pay within 
the 25- to 56-day period between the date a delivery is made and the 25th day of 
the month following the delivery, when the fee is due and payable to the 
commission, have a number of remedies immediately available, include refusing to 
do business with such customers or doing business on a cash-only basis. The 
commission does not need to specify such private remedies in the rules. 
In addition, Teppco commented that the commission should adopt specific 
regulations to avoid duplicate payments of fees for the period September 1997 
through January 1998 and to permit refunds of any such duplicate payments. The 
commission is aware that double collections may occur during the implementation 
of S.B. 925, but disagrees that additional regulations are required to address 
this possibility. Since 1991 the commission's regulations have included specific 
procedures for requesting, documenting and receiving refunds for duplicate and 
erroneous payments of LPG delivery fees. These procedures have been tested in 
several cases and have proved effective in remedying problems arising from 
duplicate or erroneous payments. The new rules continue these procedures in 
effect, and the commission finds no need to alter them at this time. 
Teppco also urged the commission to require load exemptions to be filed with an 
odorizer not less than 14 days prior to a delivery of LPG, to simplify 
administration by reducing the number of variables for which odorizers' 
collection systems must provide. The commission responds that, while imposing 
such a requirement upon adoption of the rule is beyond the scope of the notice 
given in this rulemaking, nothing in the statute or regulations prohibits 
odorizers or odorizer agents from adopting an advance-notice requirement on load 
exemptions as a matter of company policy. The commission believes such a 
requirement would be a reasonable business practice and consistent with both 
S.B. 925 and commission regulations. In addition, if the commission finds it 
necessary to include such a provision in the rules, notice of the proposal to do 
so would be given in advance. 
Teppco further urged the commission to amend sec.15.90 to provide safeguards for 
confidential and proprietary information. The commission's audit procedures 
rarely, if ever, result in the commission having possession of the audited 
entity's documents; rather, audit reports typically comprise aggregated data 
regarding the number and sizes of loads for each month audited. Customer names, 
prices, or other specific information about the audited entity's operations are 
not pertinent to an audit under the fee rules. Finally, the audited entity may 
request that, in the event the commission receives a request for information 
that the audited entity considers confidential and/or proprietary, the 
commission notify the audited entity so that it may assert its claims pursuant 
to the Public Information Act. 
WelchGas/Cass County Butane asked the commission to exempt LPG that is delivered 
from the company's bobtail trucks to customers in Arkansas and to devise a 
system of prorated cash refunds or credits to persons making out-of-state retail 
deliveries. 
The distribution chain described in WelchGas/Cass County Butane's comment is as 
follows. LPG is odorized in Texas by Warren Gas Liquids, Inc., sold by Warren to 
Welch Energy, and delivered by Warren into a transport vehicle owned and 
operated by Welch Energy. Welch Energy hauls the odorized LPG to Atlanta, Texas, 
where it is sold to WelchGas/Cass County Butane and delivered into WelchGas/Cass 
County Butane's bulk storage facility, where it is commingled with other LPG. 
WelchGas/Cass County Butane loads LPG from the Atlanta bulk storage facility 
into bobtails and delivers it to retail customers, some of whom are located in 
Texas and some of whom are located in Arkansas. 
Enactment of S.B. 925 did not affect administration of LPG delivery fees on 
these loads. Under both old and new systems, Warren Gas Liquids, Inc., collects 
the fee due on each load from Welch Energy and remits the fee to the commission 
by the 25th day of the following month. Welch Energy and WelchGas/Cass County 
Butane may pass the fee through to their customers or not, as they see fit. The 
comment states that Welch Energy's invoices to WelchGas/Cass County Butane 
include the LPG delivery fee. 
WelchGas/Cass County Butane commented that the commission's rules should allow 
persons who deliver partial bobtail loads outside Texas to receive refunds based 
on an accumulation of net gallons exported. The comment proposed that companies 
selling partial loads out of state apply monthly to the commission for cash 
refunds or, alternatively, that the commission create a system of credits that 
such companies could pass up through the chain of distribution to the person who 
paid the fee and the person who collected the fee and remitted it to the 
commission. 
The commission has made no change to the rule in response to this comment. The 
commission understands the export exemption in Texas Natural Resources Code, 
sec.113.244, to apply only at the time of odorization or import, and only to a 
discrete quantity (net gallon amount; load) of LPG that at the time of 
odorization or import is identified as destined for export and that is in 
continuous movement in its entirety to a destination outside Texas. The 
commission does not understand the export exemption to apply to other deliveries 
of LPG, including a delivery of LPG that is hauled from the point of odorization 
or import to a storage facility or other destination located in Texas, 
offloaded, stored and commingled there with other LPG, and subsequently exported 
in whole or in part. In the commission's judgment, LPG exported under these 
conditions has lost its identity as an assessable or exempt delivery, and the 
continuous movement of the LPG to a destination outside Texas is considered to 
have been interrupted, when all or part of the LPG is removed from the transport 
vehicle or other means of conveyance in which it was originally loaded at the 
time of odorization or in which it was originally imported, placed into a 
stationary storage facility and there commingled with other LPG. 
The commission responds further that even if the statutory exemption could be 
understood as applying to partial loads retailed outside Texas by a reseller of 
previously assessed, nonexempt LPG, any resulting system for receiving, 
evaluating, paying and verifying the accuracy of refunds would be 
administratively burdensome, inefficient, and not an effective use of the 
division's resources on behalf of the state's propane industry and consumers. 
The commission makes several clarifying changes in the adopted rules. The 
wording in sec.15.45(a) has been modified to make it clear that odorizers and 
importers are subject to the commission's rules on September 1, 1997 (the date 
S.B. 925 became effective), or the date that the person first odorizes LPG 
within the State of Texas or imports odorized LPG into the State of Texas. 
Another change concerns sec.15.45(b). As it was proposed, this subsection 
requires persons who are subject to the rule to register with the commission 
within 30 days of the action that brings them within the ambit of the rules and 
on May 1 of each succeeding year. This wording might have permitted some persons 
to go longer than one year before re-registering. The commission intends, 
however, for one year to be the longest interval between registrations of 
odorizers, importers, and odorizer agents; therefore, the commission has 
clarified the text of sec.15.45(b)(2) to require registration on each succeeding 
May 1 following initial registration. 
In sec.15.45(c)(2), the commission has added language clarifying that the 
delegation of odorizer duties to a supplier is based on the voluntary agreement 
of the supplier. The commission does not intend that an odorizer would be able 
to impose this duty on a supplier as a condition of the supplier's being able to 
continue transacting business with the odorizer, since the statute clearly 
places this duty on the odorizer. The commission's rule permitting delegation is 
intended only to accommodate existing or future mutually beneficial business 
arrangements, not to permit odorizers to avoid an obligation imposed by law. 
In sec.15.45(d), the commission has added language clarifying that it must be 
notified if an agency relationship between an odorizer and a supplier has 
terminated. 
As proposed, sec.15.55 would have permitted the filing of amended reports for 
the months September 1997 through January 1998, without penalty. As adopted, the 
rule extends permission for filing amended reports to include reports for March 
1998. 
Finally, the commission has made clarifying changes to sec.15.1, and to 
sec.15.100 to provide more detail to the examples of how the fee rules are 
intended to operate. 

16 TAC sec.sec.15.1, 15.2, 15.21-15.27
The commission adopts the repeals under the Texas Natural Resources Code, 
sec.113.246, which requires the commission to adopt rules necessary for the 
administration, collection, reporting and payment of the fees payable or 
collected under Texas Natural Resources Code sec.sec.113.241-113.250, inclusive. 
Texas Natural Resources Code, sec.sec.113.241-113.250, are affected by the 
repeals. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802713
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: March 16, 1998
Proposal publication date: November 21, 1997
For further information, please call: (512) 463-7008

16 TAC sec.sec.15.1, 15.3, 15.5, 15.41, 15.45, 15.50, 15.55, 15.60, 15.65, 
15.70, 15.75, 15.80, 15.85, 15.90, 15.95, 15.100,
The commission adopts the new sections under Texas Natural Resources Code, 
sec.113.246, which requires the commission to adopt rules necessary for the 
administration, collection, reporting and payment of the fees payable or 
collected under Texas Natural Resources Code sec.sec.113.241-113.250, inclusive. 
Texas Natural Resources Code, sec.sec.113.241-113.250 are affected by the new 
rules.

sec.15.1.Purpose.
The commission through the employees of the Alternative Fuels Research and 
Education Division and other divisions as from time to time may be appropriate 
or necessary administers the Alternative Fuels Research and Education program 
pursuant to Texas Natural Resources Code, sec.sec.113.241, et seq., and the 
rules adopted pursuant thereto, 16 Texas Administrative Code, sec.sec.15.1, et 
seq. These rules are promulgated to establish clearly:
(1) when the obligation to pay a delivery fee is imposed, by defining "means of 
conveyance," "delivery," "sold and placed into commerce," and other terms used 
in Texas Natural Resources Code, sec.sec.113.241, et seq., but not defined by 
statute; 
(2) which persons are responsible for paying the fee, by defining "owner of LPG 
at the time of import," "owner of LPG at the time of odorization," "time of 
import," "time of odorization" and other terms used in Texas Natural Resources 
Code, sec.sec.113.241, et seq., but not defined by statute; 
(3) which persons are responsible for reporting, collecting and remitting fees 
to the commission by defining "importer," "odorizer," "marketer," "supplier" and 
other terms used in Texas Natural Resources Code, sec.sec.113.241, et seq., but 
not defined by statute; and 
(4) the amount of fees due, based on net volume of odorized LPG imported or 
delivered into any means of conveyance to be sold and placed into commerce. 

sec.15.3.General Provisions.
(a) Unless otherwise specifically stated, all days are calendar days. 
(b) In computing any period of time prescribed in sec.sec.15.1-15.100 of this 
title (relating to general rules), the last day of the period being computed 
shall be included, unless it is a Saturday, Sunday, or an official state 
holiday, in which event the period shall continue to run until 5:00 p.m. on the 
next day that is not a Saturday, Sunday, or an official state holiday.

sec.15.5.AFRED Forms.
(a) Under the provisions of the Texas Natural Resources Code, sec.sec.113.241-
113.250, inclusive, the Railroad Commission of Texas adopts the following forms 
for use by the Alternative Fuels Research and Education Division. 
(1) AFRED Form 1. Odorizer's or Importer's Report of Fees Collected. 
(2) AFRED Form 1A. Schedule A: Schedule of Refund Amounts.
(3) AFRED Form 2. Load Exemption: Certificate of LPG Destined for Export. 
(4) AFRED Form 3. Fee on Delivery of Odorized LPG: Refund Request to Commission. 
(5) AFRED Form 4. Blanket Exemption. 
(6) AFRED Form 5. Refund Request to Odorizer or Importer.
(7) AFRED Form 6. Odorizer or Importer Registration.
(8) AFRED Form 6A. Odorizer Designation of Agent. 
(b) The commission delegates to the director the authority to amend the AFRED 
forms listed in subsection (a) of this section as necessary to enable the 
commission to fulfill its duties under Texas Natural Resources Code, 
sec.sec.113.241-113.250, inclusive. 

sec.15.41.Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) AFRED--The Alternative Fuels Research and Education Division of the Railroad 
Commission of Texas. 
(2) Cargo tank--Any receptacle mounted on a transport vehicle, including but not 
limited to a rail car, bobtail or semi-trailer, designed and used for the 
transportation or storage of liquefied petroleum gas. 
(3) Commission--The Railroad Commission of Texas. 
(4) Continuous movement--Movement of odorized LPG in the same transport vehicle 
from the time of odorization or import to a destination outside Texas. The term 
does not apply to odorized LPG that is offloaded in Texas from the transport 
vehicle into a storage facility, to LPG that is commingled in Texas with other 
LPG, or to partial loads.
(5) Delivery--The first introduction of odorized LPG into a means of conveyance 
or the first import of odorized LPG into Texas, regardless whether a sale occurs 
simultaneously. 
(6) Director--The executive head of AFRED appointed by the commission to 
administer the AFRED program pursuant to Texas Natural Resources Code, 
sec.sec.113.241, et seq., and the rules adopted pursuant thereto, 16 Texas 
Administrative Code, sec.sec.15.1, et seq., or the director's delegate.
(7) Division--The Alternative Fuels Research and Education Division (AFRED) of 
the Railroad Commission of Texas. 
(8) Importer--A person who causes odorized LPG to be moved into Texas from a 
location outside Texas. 
(9) Liquefied petroleum gas or LPG--Any material that is composed predominantly 
of any of the following hydrocarbons or mixtures of hydrocarbons: propane, 
propylene, normal butane, isobutane, or butylenes.
(10) Marketer or LPG marketer--A person engaged in the business of buying and 
selling odorized LPG to wholesale or retail customers.
(11) Means of conveyance--Any transport vehicle, including but not limited to a 
rail car, bobtail or semitrailer, designed and used for the transportation of 
LPG. 
(12) Odorizer--A person who adds odorant to LPG within Texas, including but not 
limited to an LPG supplier, terminal operator, loading rack operator, or a 
person subject to filing odorization reports with thecommission and complying 
with the commission's odorization rule, sec.9.152 of this title (relating to 
report of odorization), or a supplier who has been designated as the agent of 
such person on AFRED Form 6A. 
(13) Owner of LPG at the time of import--The person holding legal title to 
odorized LPG at the time of its import into Texas, including but not limited to 
an LPG marketer or supplier. 
(14) Owner of LPG at the time of odorization--The person holding legal title to 
odorized LPG immediately after odorant has been added to the LPG, including but 
not limited to an LPG marketer. 
(15) Person--An individual, partnership, firm, corporation, joint venture, 
association, or any other business entity, a state agency or institution, 
county, municipality, school district, or other governmental subdivision, 
including but not limited to an LPG supplier or LPG marketer.
(16) Sold and placed into commerce--Sold or otherwise transferred to a reseller 
or end user for eventual resale or consumption, including but not limited to a 
sale or other transfer to a marketer; to an industrial, commercial, agricultural 
or other business; to a federal or state agency; to a political subdivision; or 
to a nonprofit organization. 
(17) Supplier--A person engaged in the business of selling or otherwise 
transferring bulk quantities of LPG to an LPG marketer or other customer to be 
sold and placed into commerce. 
(18) Time of import--The time of first entry of odorized LPG into Texas from 
another state or from outside the United States. 
(19) Time of odorization--The time of the first delivery of odorized LPG into a 
means of conveyance located in Texas. 

sec.15.45.Registration of Odorizers, Odorizer Agents, and Importers.
(a) All odorizers and importers are subject to this section on September 1, 
1997, or the date that the odorizer first odorizes LPG within Texas or the 
importer first imports odorized LPG into Texas. Odorizer agents are subject to 
this section on the date the odorizer and the odorizer's agent sign AFRED Form 
6A. 
(b) Each person subject to this section shall register with the commission by 
filing AFRED Form 6 or AFRED Form 6A as follows: 
(1) no later than the 30th day after the date the person becomes subject to this 
section; and 
(2) on or before each succeeding May 1. 
(c) Odorizers may delegate the duties related to administration of delivery fees 
under Texas Natural Resources Code, sec.sec.113.241-113.250, inclusive, and 
sec.15.50 and sec.15.55 of this title (relating to fee on delivery of odorized 
LPG and report and remittance of fees), to one or more suppliers if: 
(1) the odorizer never holds title to the supplier's LPG; and 
(2) the odorizer and supplier execute and file with the commission AFRED Form 
6A, which makes the supplier legally responsible for performing the odorizer's 
duties related to administration of delivery fees under Texas Natural Resources 
Code, sec.sec.113.241-113.250, inclusive, and sec.15.50 and sec.15.55 of this 
title (relating to fee on delivery of odorized LPG and report and remittance of 
fees) at a specific facility where LPG is odorized. The odorizer and supplier 
shall execute and file with the commission a separate AFRED Form 6A for each 
facility at which the supplier acts as agent for the odorizer. The execution of 
an AFRED Form 6A shall be voluntary on the part of the supplier and shall not be 
a condition of the supplier doing business with an odorizer. The execution of an 
AFRED Form 6A makes the supplier subject to all obligations of an odorizer under 
16 Texas Administrative Code, sec.sec.15.1-15.100, inclusive, which include, 
among other things, retaining documents and permitting audit by the commission. 
(3) Odorizers filing AFRED Form 6A shall also file AFRED Form 6. 
(d) Each person subject to this section shall file a new AFRED Form 6 or AFRED 
Form 6A within 30 days after any change in any of the information reported on 
either form, and shall report in writing the termination of an agent designation 
within 30 days of the termination. 
(e) Failure to file AFRED Form 6 and AFRED Form 6A as required by this section 
may subject the person to civil penalties under sec.15.80 of this title 
(relating to civil penalties). 
(f) Filing AFRED Form 6 or AFRED Form 6A does not satisfy an odorizer's 
obligation to file LPG Form 17 under sec.9.152 of this title (relating to report 
of odorization). 

sec.15.50.Fee on Delivery of Odorized LPG.
(a) The odorizer or importer shall be responsible for collecting the fee and 
remitting the fee to the commission. 
(b) The amount of the fee shall be computed on the net amount of odorized LPG 
delivered into any means of conveyance to be sold and placed into commerce in 
accordance with the following fee schedule:
(1) $7.50 for each delivery of less than 1,500 gallons; 
(2) $9.00 for each delivery of 1,500 gallons or more but less than 1,800 
gallons; 
(3) $10 for each delivery of 1,800 gallons or more but less than 2,000 gallons; 
(4) $12.50 for each delivery of 2,000 gallons or more but less than 2,500 
gallons; 
(5) $13.50 for each delivery of 2,500 gallons or more but less than 2,700 
gallons; 
(6) $25 for each delivery of 2,700 gallons or more but less than 5,000 gallons; 
(7) $37.50 for each delivery of 5,000 gallons or more but less than 8,000 
gallons; 
(8) $50 for each delivery of 8,000 gallons or more but less than 12,000 gallons; 
(9) for each delivery of 12,000 gallons or more, $25 for each increment of 5,000 
gallons, and $25 for any remainder of less than 5,000 gallons. 

sec.15.55.Report and Remittance of Fees.
(a) On or before the 25th day of each month, or the first business day after the 
25th day of each month in which the 25th falls on a Saturday, Sunday, or a legal 
holiday, each odorizer and importer shall file a report and remit to the 
commission all fees due on odorized LPG delivered into a means of conveyance in 
the previous month. Fees are due to the commission on all LPG delivered into a 
means of conveyance in the previous month, regardless of whether the fees were 
actually collected from persons responsible for paying the fees in that month. 
The report shall be prepared on AFRED Form 1, Odorizer's or Importer's Report of 
Fees Collected, shall be filed by mailing the completed form and fees to AFRED, 
and shall be postmarked on or before the deadline for filing. Late filings or 
failure to file as required will subject the odorizer or importer to additional 
fees or penalties under sec.15.75 and sec.15.80 of this title (relating to 
penalty for failure to report as required and civil penalties). 
(b) Odorizers and importers may file amended reports for the months of September 
1997 through March 1998 without penalty, provided such reports are postmarked on 
or before April 27, 1998.

sec.15.60.Exemptions.
(a) No fee shall be collected on any deliveries of odorized LPG destined for 
export out of Texas if the LPG is in continuous movement to a destination 
outside the state, unless such a fee is required to be levied and collected 
under the federal Propane Education and Research Act of 1996 (15 U.S.C. 
sec.6401, et seq.). 
(b) Persons or their representatives claiming an exemption under this section 
must complete the appropriate form as specified in subsections (c) or (d) of 
this section and return it to the person making the exempt delivery.
(c) AFRED Form 2, Load Exemption Certificate of LPG Destined for Export, or 
another form specifically approved in advance in writing as equivalent by the 
division, shall be completed by any person certifying that a particular load of 
LPG is exempt from the fee. 
(d) AFRED Form 4, Blanket Exemption, or another form specifically approved in 
advance in writing as equivalent by the division, shall be completed by any 
person obtaining an exemption for all LPG purchased and filed annually with the 
odorizer or importer and a copy filed with AFRED. Each odorizer or importer 
shall keep all exemption forms on file for a minimum of four years and readily 
available in a convenient and organized manner for commission inspection. 

sec.15.65.Odorizer or Importer Refunds.
Any person who pays a fee to an odorizer or importer on a load of LPG that is 
exempt under sec.15.60 of this title (relating to exemptions) may apply to the 
odorizer or importer for a refund of the amount paid. To apply for the refund, 
the person shall complete AFRED Form 5, Refund Request to Odorizer or Importer, 
and return it to the odorizer or importer that collected the fee. Any odorizer 
or importer that refunds a fee based on receipt of AFRED Form 5 shall report the 
amount of the refund on Schedule A of AFRED Form 1. All amounts refunded and 
reported in this manner may be deducted from the total amount of fees collected 
to arrive at the total amount of fees to be remitted to the commission. An 
odorizer or importer shall maintain on file for a minimum of four years the 
refund request forms for all refunds reported to the commission, and shall make 
these forms readily available for commission inspection. 

sec.15.70.Commission Refund.
An odorizer or importer may petition the commission for refund of fees remitted 
to the commission in error. An odorizer or importer seeking a refund shall 
complete AFRED Form 3, Fee on Delivery of Odorized LPG: Refund Request to 
Commission; shall include a statement of the reason for the refund and all 
supporting export and fee-payment documents; and shall file the request with the 
commission by mailing the completed form and all supporting documents to AFRED. 
Supporting export documents include, but are not limited to, bills of lading, 
shipping manifests and load tickets. Supporting fee-payment documents include, 
but are not limited to, invoices, ledgers and journal entries tied to export 
documents. 

sec.15.75.Penalty for Failure To Report as Required.
(a) Odorizers and importers filing a report or remitting fees later than the 
25th day of the month in which fees are due, or later than the first business 
day after the 25th day of a month in which the 25th falls on a Saturday, Sunday, 
or a legal holiday, but within 30 days of the deadline, shall remit a penalty in 
the amount of 5.0% of the amount of fees originally due and payable. 
(b) Odorizers and importers filing a report or remitting fees more than 30 days 
after the deadline shall remit a penalty in the amount of 10% of the amount of 
fees originally due and payable. 
(c) The director may impose an additional penalty of 75% of the amount of the 
fees and penalties due and payable if the director determines that the failure 
to file a report or to remit the fees collected is the result of fraud or an 
intent to evade the provisions of the Texas Natural Resources Code, 
sec.sec.113.241- 113.245, or commission rules.

sec.15.80.Civil Penalties.
(a) Any person who violates the provisions of the Texas Natural Resources Code, 
sec.sec.113.241-113.245, or the rules of the commission implementing those 
provisions forfeits to the state a civil penalty in an amount not less than $25 
and not more than $200. 
(b) At the request of the commission, the attorney general is empowered to sue 
in a court of competent jurisdiction to collect any fee or penalty due under the 
provisions of the Texas Natural Resources Code, sec.sec.113.241-113.250, 
inclusive. 

sec.15.85.Records.
Odorizers and importers shall maintain sufficient papers, books, accounts, 
documents, and other business records regarding their operations, including 
copies of all forms filed at the commission and their supporting documentation, 
if any, to enable the commission to determine whether the odorizers and 
importers have remitted all fees due under sec.15.50 of this title (relating to 
fee on delivery of odorized LPG). Odorizers and importers shall make available 
all such papers, books, accounts, documents, and other business records to the 
commission for inspection under sec.15.90 of this title (relating to power of 
entry; audits and investigations), and shall maintain all such records for a 
minimum of four years. 

sec.15.90.Power of Entry; Audits and Investigations.
(a) A member or employee of the commission, the director, or another person 
authorized or designated by any such person, at reasonable times and for 
reasonable purposes, may enter an office, premises, or place of business of an 
odorizer or importer to test equipment and to inspect, examine, and obtain 
copies of the papers, books, accounts, documents, business records, and other 
materials maintained under sec.15.85 of this title (relating to records) for the 
purpose of conducting an audit or investigation or enforcing or administering 
the AFRED program or commission rules. 
(b) Odorizers and importers and their officers, employees, or agents may not 
refuse or deny entry under this section to a member or employee of the 
commission, the director, or another person authorized or designated by any such 
person and may not hinder a person who is conducting an audit or investigation 
or attempting to enforce or administer the AFRED program or commission rules. 
The odorizer or importer is entitled to be represented when a member or employee 
of the commission, the director, or another person authorized or designated by 
any such person enters to make inspections, examinations, and tests on the 
premises of the odorizer or importer. A member or employee of the commission, 
the director, or another person authorized or designated by any such person 
shall allow reasonable time of not more than 24 hours for the odorizer or 
importer to secure a representative before entering. 

sec.15.95.Procedure for Compliance With or Challenge to Audit Results.
(a) Upon completion of an audit or investigation, the auditor or investigator 
shall deliver a written copy of the findings to the director and shall mail by 
certified mail a copy to the odorizer or importer that is the subject of the 
audit or investigation. The odorizer or importer may file a written response, 
and shall have 20 days from the date the findings are postmarked to file the 
response with the director. 
(b) Upon receipt of the audit or investigation findings and any written 
response, the director may gather any additional information necessary or 
appropriate to making a full and complete analysis of the findings and response. 
(c) If the director determines that an odorizer or importer has not remitted the 
fee required by sec.15.50 of this title (relating to fee on delivery of odorized 
LPG) for the audit period, the director may prepare a report that states the 
facts on which the determination is based and the director's recommendation as 
to the amount of the fees or additional fees to be remitted by the odorizer or 
importer, or the penalty, if any, to be paid by the odorizer or importer or the 
amount of the refund of fees due to the odorizer or importer. 
(d) The director shall give the odorizer or importer written notice of the 
report by mailing it to the odorizer or importer by certified mail. The notice 
shall include a statement that the odorizer or importer has a right to a hearing 
on the director's determination contained in the report.
(e) Within 20 days after the date the notice is postmarked, the odorizer or 
importer shall file a written response either accepting the director's 
determination, and recommended penalty, if any, or requesting a hearing on the 
director's determination. 
(f) If the odorizer or importer accepts the director's determination that fees 
and/or a penalty are due, the odorizer or importer shall remit payment of the 
full amount to the director within 30 days of the postmark of the odorizer's or 
importer's acceptance under subsection (c) of this section. The director may 
permit payment of the fees and/or penalty over a reasonable period not to exceed 
six months, provided that the odorizer or importer agrees in writing to the 
terms of the payment. 
(g) If an odorizer or importer requests a hearing or fails to respond timely to 
the notice given under subsection (b) of this section, the director shall refer 
the matter to the Office of General Counsel for the setting of a hearing. The 
Office of General Counsel shall assign an examiner to conduct a hearing, which 
shall be conducted under the Commission's General Rules of Practice and 
Procedure, 16 Texas Administrative Code, Chapter 1.
(h) Following hearing, the commission may find that the odorizer or importer has 
violated commission rules; may determine the amount of the fee due or to be 
refunded; may impose a penalty, may find that no violation has occurred; and may 
make any other finding based on the evidence in the record. 
(i) If the odorizer or importer does not remit the fee and pay the penalty, if 
any, determined or imposed by the commission, and if the enforcement of the 
commission's order is not stayed, then the Office of General Counsel may refer 
the matter to the attorney general for collection of the fee and the penalty, if 
any, determined or imposed by the commission. 

sec.15.100.Interpretation and Application.
(a) The fact situations in subsections (b) and (c) of this section illustrate 
the commission's interpretation and application of Texas Natural Resources Code, 
sec.sec.113.241, et seq., and the rules adopted pursuant thereto, 16 Texas 
Administrative Code, sec.sec.15.1, et seq., and demonstrate how the commission 
will determine which entities are responsible for paying and for collecting and 
remitting the fee.
(b) Treatment of imports. Wholesale quantities of odorized LPG are imported into 
Texas under different business circumstances and contractual conditions. In each 
case, the statute requires the fee to be assessed on the total volume of LPG 
imported in the transport vehicle, regardless whether the entire load is 
delivered in Texas. The following examples are intended to illustrate how the 
commission's rules for administering LPG delivery fees apply to five import 
situations. 
(1) Import by Texas marketer. In this example, odorized LPG is sold and 
delivered at an out-of-state loading facility into a transport vehicle owned by 
a Texas LPG marketer. The LPG is hauled back into Texas and delivered into a 
bulk storage facility. Under the commission's rules, the marketer is considered 
the importer by virtue of being the owner of odorized LPG at the time of import. 
The time of import is defined by statute as the time of entry into Texas (Texas 
Natural Resources Code, sec.113.244(c)). The marketer is responsible for 
registering as an importer on AFRED Form 6. The marketer is also responsible for 
reporting each month on AFRED Form 1 and remitting to the commission the 
appropriate delivery fee on the total number of loads imported. These reports 
and remittances are due on the 25th day of the following month, e.g., October 25 
for loads imported during September. The statute assesses a mandatory late 
penalty of 5 percent on remittances that are 30 days late or less and a 
mandatory late penalty of 10 percent on remittances that are more than 30 days 
late.
(2) Import by licensee based outside Texas. In this example, odorized LPG is 
loaded into a bobtail or other transport vehicle at an out-of-state bulk storage 
plant or other loading facility and delivered to customers in Texas by a 
marketer whose principal place of business and outlets are all outside Texas. 
Under the commission's rules, the marketer is considered an importer by virtue 
of being the owner of odorized LPG at the time of import. The time of import is 
defined by statute as the time of entry into Texas (Texas Natural Resources 
Code, sec.113.244(c)). The marketer is responsible for registering as an 
importer on AFRED Form 6. The marketer is also responsible for reporting each 
month on AFRED Form 1 and remitting to the commission the appropriate delivery 
fee on all volumes of odorized LPG imported. 
(3) Import by supplier. In this example, a supplier delivers odorized LPG at an 
out-of-state loading facility into the supplier's own transport vehicle, hauls 
the LPG into Texas, and delivers it to a bulk storage facility located in this 
state. Under the commission's rules, the supplier is considered the importer by 
virtue of owning the LPG at the time of import. The supplier is responsible for 
registering as an importer on AFRED Form 6 and for reporting and remitting 
monthly as described in paragraph (1) of this subsection. 
(4) Import by common carrier. In this example, a supplier delivers odorized LPG 
at an out-of-state loading facility into a transport vehicle owned by a common 
carrier, who hauls the LPG into Texas and delivers it to an LPG marketer. Under 
the commission's rules, the owner of the LPG at the time of import is 
responsible for registering as an importer and for reporting and remitting the 
fee to the commission. The owner would not normally be the common carrier, who 
does not take title to the LPG. If the marketer holds title to the LPG at the 
time of import, the fee is administered as in the example in paragraph (1) of 
this subsection. If the supplier holds title to the LPG at the time of import, 
the fee is administered as in the example in paragraph (3) of this subsection. 
(5) Import by marketer's transportation subsidiary. In this example, odorized 
LPG is delivered at an out-of-state loading facility into a transport vehicle 
owned by a subsidiary of an LPG marketer, hauled into Texas, and delivered into 
a bulk storage tank located in this state. Under the commission's rules, the 
marketer or the marketer's transportation subsidiary is considered the importer, 
depending on which entity owned the LPG at the time of import. The marketer or 
the transportation subsidiary is responsible for registering as an importer on 
AFRED Form 6 and for reporting and remitting monthly as shown in the example in 
paragraph (1) of this subsection.
(c) LPG Odorized in Texas. LPG that is odorized in Texas is also bought, sold, 
transferred, stored, and distributed under many different business arrangements 
and conditions. In each case, the fee is assessed on the total net volume of LPG 
odorized and delivered into any means of conveyance and not in continuous 
movement to a destination outside Texas, regardless whether the entire load is 
ultimately consumed in Texas. The examples that follow are intended to 
illustrate how the commission's rules for administering LPG delivery fees apply 
in three typical situations. 
(1) Odorizer owns the LPG. In this example, an LPG supplier that holds title to 
unodorized LPG adds odorant to each load of LPG delivered at the supplier's 
refinery, natural gas processing plant, underground storage cavern, or other LPG 
loading facility. Under the commission's rules, this supplier's operations 
related to delivery-fee administration continue virtually unchanged, since the 
duties and responsibilities of odorizers are the same as the duties and 
responsibilities of loading rack operators prior to the effective date of Senate 
Bill 925, 75th Legislature, Regular Session. The supplier continues to be 
responsible for registering with the commission as an odorizer, and continues to 
collect, report, and remit fees by virtue of being the person who odorizes the 
LPG, under Texas Natural Resources Code, sec.113.244(b). 
(2) Storage or terminal operator odorizes supplier's LPG. In this example, 
unodorized LPG owned by one or more LPG suppliers is stored underground in a 
cavern owned by an unaffiliated operator or shipped through a pipeline to a 
terminal owned by an unaffiliated operator. The storage or terminal operator 
odorizes the LPG load by load upon delivery into transport vehicles or other 
means of conveyance that may be owned by suppliers, common carriers, marketers, 
or other persons. Under previous law that assigned collecting, reporting and 
remitting duties to loading rack operators, LPG handled in this manner was 
normally invoiced, and delivery fees were collected and remitted, by the 
supplier who owned the LPG, not by the storage or terminal operator who added 
the odorant. Suppliers were assigned collecting and remitting responsibilities 
by the "first invoicer" provision of the commission's March 1992 rule, which 
defined "loading rack operator" as the person or entity invoicing the first sale 
of odorized LPG dispensed into a cargo container at a loading rack, if the 
person or entity controlling the day-to-day operations of the loading rack was 
not the person or entity invoicing the first sale of the LPG. As amended by S.B. 
925, 75th Legislature, Texas Natural Resources Code, sec.113.244(b), expressly 
requires the person who odorizes the LPG to collect the fee and remit it to the 
commission. To avoid unnecessary disruption and minimize administrative cost to 
the industry, the commission's rules permit a supplier to continue to collect 
and remit fees as agent for an odorizer at a storage or terminal facility if the 
odorizer never held title to the LPG and the odorizer and supplier execute and 
file with the commission AFRED Form 6A, to make the supplier legally responsible 
for performing the odorizer's duties related to administration of delivery fees 
under Texas Natural Resources Code, sec.sec.113.241-113.250, inclusive. If no 
AFRED Form 6A is on file with the commission, any person who odorizes LPG is 
responsible for registering as an odorizer and for collecting and remitting fees 
to the commission on all nonexempt loads the person odorizes. This choice is 
intended to minimize disruption and administrative costs by allowing suppliers 
and operators of storage or terminal facilities to continue their existing 
delivery-fee arrangements or enter into new arrangements, where these are cost-
effective and appropriate, while fully implementing all requirements of Texas 
Natural Resources Code, sec.113.244. 
(3) Storage operator odorizes marketer's LPG; delivery in the absence of a sale. 
In this example, a marketer either contracts with a supplier for later delivery 
from the supplier's storage or purchases unodorized LPG and places it in a 
storage facility owned by a supplier or other operator. At a later date, the LPG 
is retrieved from storage, odorized by the storage facility operator, and either 
transported to the marketer or picked up by the marketer in the absence of a 
sale at the time of odorization. Texas Natural Resources Code, sec.113.244(b) 
expressly requires the owner of LPG at the time of odorization to pay the fee 
and requires the person who odorizes the LPG to collect the fee and remit it to 
the commission. Under the commission's rules, the marketer is responsible for 
paying the fee to the person who odorized the marketer's LPG on each load of the 
marketer's LPG odorized and delivered upon retrieval from storage, by virtue of 
the marketer's being the owner of LPG at the time of odorization, whether or not 
a sale took place simultaneously. The commission views Texas Natural Resources 
Code, sec.113.244, as applying to deliveries of all nonexempt loads of LPG that 
are sold and placed into commerce in Texas, without limitation as to the timing 
of the sale. In this example, the fee is collected, reported, and remitted to 
the commission by the storage facility operator, by virtue of the storage 
facility operator's being the person who odorized the LPG. Further, in this 
example, the storage facility operator may not designate the marketer as an 
odorizer agent on AFRED Form 6A because no supplier is involved. 
(d) The fact situations in subsections (b) and (c) of this section are 
illustrative only. In all situations, the commission will apply the provisions 
of Texas Natural Resources Code, sec.sec.113.241, et seq., and the rules adopted 
pursuant thereto, 16 Texas Administrative Code, sec.sec.15.1, et seq., to 
achieve the intended statutory purpose of assessing the fee on LPG, not 
otherwise exempt, that is either odorized in Texas or imported in odorized form 
into Texas. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802714
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: March 16, 1998
Proposal publication date: November 21, 1997
For further information, please call: (512) 463-7008

PART II. Public Utility Commission of Texas
CHAPTER 23.Substantive Rules
Customer Service and Protection
16 TAC sec.23.52, sec.23.56
The Public Utility Commission of Texas adopts the repeal of sec.23.52, relating 
to Tel-Assistance and Lifeline Service and sec.23.56, relating to Statewide 
Dual-Party Relay Service as published in the January 2, 1998, issue of the Texas 
Register (23 TexReg 36). On December 17, 1997, the commission adopted sec.23.142 
relating to Lifeline Service and Link Up Service Programs, sec.23.143 relating 
to Tel-Assistance Service and sec.23.144 relating to Telecommunications Relay 
Service. Upon adoption of these new rules, sec.23.52 and sec.23.56 became 
duplicative and no longer necessary. The repeals of sec.23.52 and sec.23.56 are 
adopted under Project Number 18426. 
No parties filed comments in response to the proposed repeals. 
These repeals are adopted under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated, sec.14.002 (Vernon 1998) (PURA), which provides the 
commission with the authority to make and enforce rules reasonably required in 
the exercise of its powers and jurisdiction. 
Cross Index to Statutes: Public Utility Regulatory Act, sec.14.002. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802858
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Effective date: March 18, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 936-7308

TITLE 22. EXAMINING BOARDS
PART VI. Texas Board of Professional Engineers
CHAPTER 131.Practice and Procedure
SUBCHAPTER A.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 adopts 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, without changes to the proposed text as published in the 
January 9, 1998, issue of the Texas Register (23 TexReg 290). 
The amendments provide consistency with the provisions of Senate Bill 623 and 
clarify the board's bylaws and definitions. 
Comments were received from the Consulting Engineers Council of Texas supporting 
the amendment to sec.131.18(9) defining direct supervision. 
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802906
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER B.Application for License
22 TAC sec.sec.131.52-131.55
The Texas Board of Professional Engineers adopts amendments to sec.sec.131.52-
131.55, concerning application for license, without changes to the proposed text 
as published in the January 9, 1998, issue of the Texas Register (23 TexReg 
293).
The amendments clarify the subdisciplines within electrical engineering and also 
the requirements for submission of an application for a license.
No comments were received regarding adoption of the amendments.
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802905
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER C.References
22 TAC sec.131.71
The Texas Board of Professional Engineers adopts an amendment to sec.131.71, 
concerning references, without changes to the proposed text as published in the 
January 9, 1998, issue of the Texas Register (23 TexReg 293). 
The amendment provides the stipulation that engineers serving as references 
cannot be compensated. 
No comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802904
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER D.Engineering Experience
22 TAC sec.131.81
The Texas Board of Professional Engineers adopts an amendment to sec.131.81, 
concerning engineering experience, without changes to the proposed text as 
published in the January 9, 1998, issue of the Texas Register (23 TexReg 294). 
The amendment provides clarification of the documents that must be submitted for 
applicants requesting a waiver from one or both examinations. 
No comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802903
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER E.Education
22 TAC sec.131.91
The Texas Board of Professional Engineers adopts an amendment to sec.131.91, 
concerning education, without changes to the proposed text as published in the 
January 9, 1998, issue of the Texas Register (23 TexReg 295). 
The amendment provides clarification of the educational requirements necessary 
for licensure. 
No comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802902
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER F.Examinations
22 TAC sec.sec.131.101-131.104
The Texas Board of Professional Engineers adopts amendments to sec.sec.131.101-
131.104, concerning examinations, without changes to the proposed text as 
published in the January 9, 1998, issue of the Texas Register (23 TexReg 295). 
The amendments clarify the examination waiver requirements for applicants with 
Ph.D. degrees, provide clear and concise guidelines pertaining to examinations 
for record purposes, and clarify the eligibility requirements for certification 
as an engineer-in-training. 
No comments were received regarding adoption of the amendments.
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802901
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER G.Board Review of Application
22 TAC sec.131.113
The Texas Board of Professional Engineers adopts an amendment to sec.131.113, 
concerning board review of application, without changes to the proposed text as 
published in the January 9, 1998, issue of the Texas Register (23 TexReg 296). 
The amendment clarifies the conditions under which the board will not reconsider 
applications for licensure. 
No comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802900
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER H.Licensing
22 TAC sec.131.131
The Texas Board of Professional Engineers adopts an amendment to sec.131.131, 
concerning licensing, without changes to the proposed text as published in the 
January 9, 1998, issue of the Texas Register (23 TexReg 297). 
The amendment provides consistency with the terminology contained in Senate Bill 
623 and clarifies language pertaining to regular and temporary licenses. No 
comments were received regarding adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802899
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER H.Licensing
22 TAC sec.sec.131.134-131.136
The Texas Board of Professional Engineers adopts amendments to sec.sec.131.134-
131.136, concerning licensing, without changes to the proposed text as published 
in the January 9, 1998, issue of the Texas Register (23 TexReg 297).
The amendments provide consistency with the terminology contained in Senate Bill 
623 and clarify language pertaining to regular and temporary licenses. No 
comments were received regarding adoption of the amendments. 
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802898
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER I.Professional Conduct and Ethics
22 TAC sec.131.151, sec.131.152
The Texas Board of Professional Engineers adopts amendments to sec.131.151 and 
sec.131.152, concerning professional conduct and ethics, without changes to the 
proposed text as published in the January 9, 1998, issue of the Texas Register 
(23 TexReg 297).
The amendments provide clarification of what constitutes misconduct by an 
engineer and also conflicts of interest. 
No comments were received regarding adoption of the amendments. 
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802897
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER J.Compliance and Enforcement
22 TAC sec.sec.131.162, 131.163, 131.166, 131.167
The Texas Board of Professional Engineers adopts amendments to sec.sec.131.162, 
131.163, 131.166, and 131.167, concerning compliance and enforcement. Section 
131.162 is adopted with changes to the proposed text as published in the January 
9, 1998, issue of the Texas Register (23 TexReg 298.) Sections 131.163, 131.166, 
and 131.167 are adopted without changes and will not be republished. 
Section 131.162 is adopted with a grammatical correction in the last sentence.
Full-time engineer employee is replaced with full-time employee engineer. The 
amendments clarify language pertaining to both a firm and an engineer's 
compliance with the TEPA; provide correct examples of engineers' seals 
consistent with Senate Bill 623; and provide correct cross references to statute 
and rules in sec.131.167. 
Comments were received from the Consulting Engineers Council of Texas supporting 
the amendments to sec.131.162 and sec.131.163, concerning a firm and engineers' 
compliance with the Act.
The amendments are adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.

sec.131.162.Firm Compliance
The board shall not consider any firm, partnership, association, corporation, or 
other business entity as being in compliance with the 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. 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.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802896
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

SUBCHAPTER J.Compliance and Enforcement
22 TAC sec.131.168
The Texas Board of Professional Engineers adopts new sec.131.168, concerning 
compliance and enforcement, without changes to the proposed text as published in 
the January 9, 1998, issue of the Texas Register (23 TexReg 299). 
The new section establishes 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. 
No comments were received regarding adoption of the new section.
The new section is adopted under Texas Civil Statutes, Article 3271a, sec.8(a), 
which provide the Texas Board of Professional Engineers with the authority to 
promulgate rules in accordance with Senate Bill 623.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 26, 1998.
TRD-9802895
John R. Speed, P.E.
Executive Director
Texas Board of Professional Engineers
Effective date: March 18, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 440-7723

PART XV. Texas State Board of Pharmacy
CHAPTER 283. Licensing Requirements for Pharmacists
22 TAC sec.283.2, sec.283.4
The Texas State Board of Pharmacy adopts amendments to sec.283.2 and sec.283.4, 
concerning definitions and Internship Requirements, without changes to the 
proposed text as published in the January 2, 1998, Texas Register (23 TexReg 
46). The amendments establish a definition for the "Texas Pharmacy Jurisprudence 
Exam" and establish an expiration date for pharmacist internship as specified in 
SB 609 passed by the 75th Legislature.
No comments were received on the amendments as proposed. 
The amendments are adopted under the Texas Pharmacy Act (Article 4542a-1, Texas 
Civil Statutes, sec.17(a)(3) which gives the Board the responsibility for the 
specification and enforcement of requirements for practical training including 
internship and sec.20(a) which gives the Board the authority to adopt rules 
regarding the expiration date of internship. 
The statutes affected by this rule: Texas Civil Statutes, Article 4542a-1.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802923
Gay Dodson, R.Ph.
Executive Director/Secretary
Texas State Board of Pharmacy
Effective date: March 19, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 305-8026

CHAPTER 291. Pharmacies
22 TAC sec.sec.291.51-291.54
The Texas State Board of Pharmacy adopts the repeal of sec.sec.291.51 - 291.54 
and simultaneously adopts new sec.sec.291.51 - 291.55, concerning purpose, 
definitions, personnel, operational standards, and records in a Nuclear Pharmacy 
(Class B), without changes to the proposed text as published in the January 9, 
1998, Texas Register (23 TexReg 300).
These rules 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 update the prior rules regarding Nuclear Pharmacies (Class 
B) 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.
No comments were received on the proposed repeal.
The repeals are adopted 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.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802921
Gay Dodson, R.Ph.
Executive Director/Secretary
Texas State Board of Pharmacy
Effective date: March 19, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 305-8026

22 TAC sec.sec.291.51-291.55
The Texas State Board of Pharmacy adopts new sec.sec.291.51 - 291.55 and 
simultaneously adopts the repeal of sec.sec.291.51 - 291.54, concerning purpose, 
definitions, personnel, operational standards, and records in a Nuclear Pharmacy 
(Class B). Sections 291.51-291.54 are adopted without changes to the proposed 
text as published in the January 9, 1998, Texas Register (23 TexReg 300). 
Section 291.55 is adopted with changes to the proposed text to correct a Texas 
Register format requirement.
These rules 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 rules 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 update the prior rules regarding Nuclear Pharmacies (Class 
B) 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. 
No comments were received on the new sections as proposed. 
The new sections are adopted 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.291.55. 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. 
(iii) 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 adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802922
Gay Dodson, R.Ph.
Executive Director/Secretary
Texas State Board of Pharmacy
Effective date: March 19, 1998
Proposal publication date: January 9, 1998
For further information, please call: (512) 305-8026

CHAPTER 305. Education Requirements
22 TAC sec.305.1
The Texas State Board of Pharmacy adopts amendments to sec.305.1, concerning 
Pharmacy Education Requirements, without changes to the proposed text as 
published in the January 2, 1998, Texas Register (23 TexReg 47). These 
amendments will modify the description of a professional practice degree to 
match language in SB 609 passed by the 75th Texas Legislature. 
No comments were received regarding the proposed amendments. 
The amendment is adopted under the Texas Pharmacy Act Article 4542a-1, Texas 
Civil Statutes, sec.17(a)(3) which gives the Board the authority to determine 
and issue standards for recognition and approval of degree requirements of 
colleges of pharmacy whose graduates shall be eligible for licensing in this 
state; and sec.21(a) and (e) which give the Board the authority to require that 
a candidate for licensure must have graduated and received a professional 
practice degree, as defined by the rules adopted by the Board, from an 
accredited pharmacy degree program approved by the Board. 
The statutes affected by this rule: Texas Civil Statutes, Article 4542a-1.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802924
Gay Dodson, R.Ph.
Executive Director/Secretary
Texas State Board of Pharmacy
Effective date: March 19, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 305-8026

PART XXV. Structural Pest Control Board
CHAPTER 599.Treatment Standards
22 TAC sec.599.5, sec.599.6
The Texas Structural Pest Control Board adopts amendments to sec.599. 5 and 
sec.599.6, with changes to the proposed text published in the issue of the Texas 
Register (23 TexReg 48-49). 
Justification for the rule is that the amendments clarify that a licensed 
technician or certified applicator must perform all inspections for the issuance 
of an Official Texas Wood Destroying Insect Report. The amendments also 
incorporate the use of baits and the new treatment definitions into the official 
wood destroying insect report. 
The rule will function in that Section 599.5 has been amended to state clearly 
that the Official Wood Destroying Insect Report must be completed by a licensed 
technician or certified applicator in the termite category. The form itself 
already required this and the amendment makes this requirement explicit. The 
amendments to 599.6 changed the Texas Official Wood Destroying Insect Report. 
The changes from the existing report are as follows: Added: 1. address of 
structure inspected to top of page 1. 2. Section A-Scope-Changed to; only the 
multi-family structure, primary dwellings or place of business. Add-unless 
specifically noted in section 5 of this report. 3. Section B-Scope-Changed 
Structure to Structure(s). Added visible in or on the structure. 4. Section F-
Scope-Changed to WARRANTY AS TO THE ABSENCE. 5. Section G-Scope-Changed 
structure to structure(s). Added: approval by a certified applicator in the 
termite category. Added (including pesticides, baits or other methods). Change 
graph to diagram. 6. Section I-Scope- Added: (1) there is visible evidence of an 
active infestation in or on the structure. 7. Section I-Scope-ended Section I 
after 1st two sentences. Begin a new section J with "If treatment is recommended 
solely on the..... 8. Created New Section J-Scope-changed different methods to 
strategies and changed professional to licensed pest control operator New 
Section J. 9. Added: If treatment is recommended based solely on the presence of 
conducive conditions, a preventive treatment or correction of conducive 
conditions may be recommended...There may be instances where the inspector will 
recommend correction.... 10. Section 1D-Added-(please print). 11. Section IE-
changed to check boxes Certified Applicator [ ] Technician [ ] 12. Section 4A-
Added boxes for management company and other 13. Section 4B: Added: 
Owner/Seller-Section 4C-delete "and the" add parenthetical statement; (only the 
purchaser of service is required to receive a copy) Section 5 changed to 14. The 
structure(s) listed below were inspected in accordance...... A diagram must be 
attached including..... deleted sentence regarding having a copy of inspection 
procedures 15. Section 7B-changed house to structure(s) Added: 16. Section 8-
Inspection Reveals Visible evidence in or on the structure: Section 8F-change 
phrase to: (including pesticides, baits, existing treatment stickers, or other 
methods) Section 9B changed 17. A preventive treatment and/or correction of 
conducive conditions as identified in 7A and 7B is recommended as follows: 18. 
Changed 10A to read as follows: This company has treated or is treating the 
structure for the following wood destroying insects_________________. Treatment 
method was: conventional [ ] bait [ ] other [ ] If treating for subterranean 
termites, the treatment was partial [ ] spot [ ] If treating for drywood 
termites or related insects, the treatment was full [ ] limited [ ] 19. Added 
10B___________________________________ Name of Pesticide, Bait, or other method. 
20. Changed 10B to read: date of treatment by inspecting company Added: If yes, 
copy(ies) of warranty and treatment diagram must be attached. 21. Changed: 
Diagram of Structure(s) Inspected The inspector must draw a diagram including 
approximate perimeter measurements. The inspector must draw a diagram, including 
approximate perimeter measurements, and.....B-Wood Destroying Insects, H-
Carpenter..... 22. Primary Use: Added box for multi-family 23. Section 11B: 
Added Certified Applicator License Number 24. Section 12A-changed hot water 
heater to water heater closet The new report will go into effect on September 1, 
1998. 
Several individual comments were received, mostly in support of the proposed 
changes to the wood destroying insect report. Some individuals provided 
additional ideas for editorial changes. Many of these were incorporated into the 
adopted document. Comments that were adopted included lettering the conducive 
conditions, splitting section I of the Scope of Inspection into I & J, 
referencing multi-family dwellings, and requiring designation of treatment 
methods as conventional or bait. Other commenters wanted a complete redesign of 
the report. There were no comments received from groups or associations 
The agency agreed with the editorial comments made and adopted most of them. The 
agency chooses not to completely revise the form at this time for reasons of 
efficient use of limited staff resources and the lack of significant industry 
interest in doing so. 
The amendment is adopted under Article 135b-6, which provides the Structural 
Pest Control Board with the authority to regulate persons who perform structural 
pest control services.

sec.599.5. Inspection Procedures.
(a) Inspections for the purpose of issuing a wood destroying insect report or 
for post-construction termite treatment shall be conducted in a manner 
consistent with the procedures described in this section. Inspections for the 
purpose of issuing a Wood Destroying Insect Report must be conducted by a 
licensed certified applicator or technician in the termite category. The purpose 
of the inspection is to provide a report regarding the absence or presence of 
Wood Destroying Insects (W.D.I.). The inspection should provide the basis for 
recommendations of preventive or remedial actions to minimize economic losses. 
For purposes of a Real Estate Transaction Inspection (sec.599.6) only, there 
must be visible evidence of active infestation in the structure or visible 
evidence of a previous infestation in the structure with no evidence of prior 
treatment to recommend a corrective treatment. The inspection must be conducted 
so as to ensure examination of visible accessible areas in accordance with 
accepted procedures. While such an examination may reveal W.D.I., there are 
instances when concealed infestations and/or damage may not be discovered. 
Examinations of inaccessible or obstructed areas are not required. 
(b) Inaccessible or obstructed areas recognized by the Board include, but are 
not limited to: 
(1)-(5) (No change.) 
(c) The inspector shall have knowledge of: 
(1)-(4) (No change.) 
(d) The inspector shall describe structure(s) inspected and include the 
following: 
(1)-(4) (No change.) 
(e) The inspection shall include, but is not limited to, the following areas if 
accessible and unobstructed: 
(1)-(8) (No change.) 
(f) Visible evidence of the following conditions must be reported:
(1)-(6) (No change.) 

sec.599.6. Real Estate Transaction Inspection Reports.
(a)-(b) (No change.) 
(c) The Texas Official Wood Destroying Insect Report Form SPCB\T-3 is adopted by 
reference. The form may be examined in the office of the Texas Register and the 
Structural Pest Control Board. Forms for reproduction may be obtained from the 
Structural Pest Control Board office, 1106 Clayton Lane, Suite 100LW, Austin, 
Texas. 
(d) No change 
(1)-(2) (No change.) a valid exercise of the agency's legal authority. Issued in 
Austin, Texas, February 10, 1998 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 2, 1998.
TRD-9802989
Benny M. Mathis, Jr.
Executive Director
Structure Pest Control Board
Effective date: March 22, 1998
Proposal publication date: February 2, 1998
For further information, please call: (512) 451-7200

PART XXXI. Texas State Board of Examiners of Dietitians
CHAPTER 711.Dietitians
22 TAC sec.sec.711.7, 711.9, 711.17
The Texas State Board of Examiners of Dietitians (board) by majority vote on 
November 8, 1997, enters this order finally adopting amendments to sec.711.7, 
sec.711.9 and sec.711.17, concerning the regulation of licensed dietitians and 
provisional licensed dietitians, without changes to the proposed text as 
published in the October 3, 1997, issue of the Texas Register (22 TexReg 9803).
Specifically, the sections cover references required for the application 
procedure, clarification of supervision during the upgrade process for a 
provisional licensed dietitian, and further definition of continuing education 
requirements for poster sessions and conference exhibits. Section 711.7(d)(4) 
clarifies that upon application, two professional references must be submitted 
by licensed dietitians or registered dietitians who can attest to the 
applicant's dietetic skills and professional standards of practice. Section 
711.9(c)(6) clarifies that supervision requirements must continue until the 
provisional licensed dietitian becomes a licensed dietitian. Section 
711.17(g)(6) further clarifies that participation in poster sessions will be 
credited as one hour of continuing education for six poster sessions with a 
maximum of two clock hours of continuing education for 12 poster sessions. 
Section 711.17(h)(6) provides clarification that participation in conference 
exhibits is not an activity acceptable as continuing education. 
Sections 711.7, 711.9 and 711.17 are amended to clarify rules applicable to the 
licensing of dietitians and thereby improving the regulation of dietitians, 
ensuring continued competency and protecting the public. 
The following comments were received concerning the proposed sections. Following 
the comment is the board's response and any resulting change(s).
Comment: Concerning sec.711.17(g)(6), a commenter requested that the rule be 
changed to allow one hour of continuing education credit for six poster 
sessions, with a maximum of 30 poster sessions. 
Response: The board disagrees. No change was made as a result of the comment. 
The poster sessions were intentionally limited to two hours of continuing 
education credit of the six hours required for license renewal. This assures 
that dietitians participate in a variety of continuing education activities such 
as workshops, seminars, symposiums and self-assessment modules. 
Comment: Concerning sec.711.(h)(6), the same commenter also suggested that 
"participation in conference exhibits" be deleted from the list of unacceptable 
continuing education. 
Response: The board disagrees. No change was made as a result of the comment. 
The board believes that other continuing education activities will ensure 
continued competency. 
The commenter was Lillian Reyes Gates, who had particular concerns and 
objections regarding some of the proposed amendments, but was not against the 
amendments in their entirety. 
The amendments are adopted under the Licensed Dietitian Act, Texas Civil 
Statutes, Article 4512h, sec.6, which provides the Texas State Board of 
Examiners of Dietitians with the authority to adopt rules concerning the 
regulation and licensure of dietitians. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 24, 1998.
TRD-9802717
Susan K. Steeg
General Counsel
Texas State Board of Examiners of Dietitians
Effective date: March 16, 1998
Proposal publication date: October 3, 1997
For further information, please call: (512) 458-7236

PART XXXIII. Texas State Board of Examiners of Perfusionists
CHAPTER 761.Perfusionists
22 TAC sec.761.6
The Texas State Board of Examiners of Perfusionists (board), by majority vote of 
the board on February 4, 1998, enters this order finally adopting an amendment 
to sec.761.6, concerning the practice of perfusion, without changes to the 
proposed text as published in the January 2, 1998, issue of the Texas Register 
(23 TexReg 49). The amendment requires that certain criteria for approval of 
exemption be met and that notification of intended exemption dates be made. The 
exempt person must be authorized to perform the activities and services of 
perfusion under the state law of the person's residence and be currently 
certified as a Certified Clinical Perfusionist. Notification to the board must 
be made at least three working days prior to the requested exemption dates and 
the person must not have exceeded the maximum of ten days in the last 365 days. 
The amendment implements Texas Civil Statutes, Article 4529e, sec.17 which sets 
out exemptions by defining approval criteria, and by establishing a notification 
process and the allowable time period for exemption from licensure in Texas for 
out of state residents. 
No comments were received on the proposed rule during the comment period.
The amendment is adopted under Texas Civil Statutes, Article 4529e, which 
provides the Texas State Board of Examiners of Perfusionists with the authority 
to adopt rules concerning the regulation of perfusionists.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 2, 1998.
TRD-9803025
James O. Fines, III
Chairman
Texas State Board of Examiners of Perfusionists
Effective date: March 22, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 458-7236

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission
CHAPTER 324.Used Oil
The Texas Natural Resource Conservation Commission (commission) adopts 
amendments to sec.sec.324.4 and 324.11-324.14, the repeal of sec.sec.24.17-
324.20, and a new sec.324.22, concerning used oil recycling. Sections 324.12 and 
324.22 are adopted with changes to the proposed text as published in the October 
17, 1997, issue of the Texas Register (22 TexReg 10240). Sections 324.4, 324.11, 
324.13, and 324.14, and the repeal of sec.sec.324.17-324.20 are adopted without 
changes and will not be republished.
EXPLANATION OF ADOPTED RULE The primary purpose of the adopted amendments and 
new section is to incorporate requirements necessary pursuant to Texas Health 
and Safety Code Chapter 371,sec.371.026, concerning Registration and Reporting 
Requirements of Used Oil Handlers Other Than Generators. One minor additional 
amendment is adopted to delete some unnecessary and confusing language. Also, 
the repeal of several sections is adopted to remove unnecessary requirements 
already clearly stated in statute. 
In response to comment, adopted sec.324.12(4) has been revised to eliminate the 
need to send a written request for an extension from December 1 to January 25 of 
the following year if the used oil activities of the processor/rerefiner 
continue through December 31. 
In response to comment, adopted sec.324.22(d)(1)(B) (relating to Financial 
Responsibility Technical Requirements), has been changed from the proposed 
language to delete the requirement that a certifying engineer or other qualified 
professional be "independent." In sec.324.22(d)(3), in the first sentence after 
the phrase "or otherwise handled", the proposed language has been changed to add 
this additional clarification: "including but not limited to loading docks, 
parking areas, storage areas, and any other areas where shipments of used oil 
are held for more than 24 hours." In sec.324.22(d)(3)(B), the proposed language 
has been changed to add the word "either" after the word "plus." In 
sec.324.22(d)(3)(D), the proposed language has been changed to add the words 
"from discovery" after the words "within 24 hours." 
TAKINGS IMPACT ASSESSMENT The commission has prepared a takings impact 
assessment for these rules pursuant Texas Government Code,sec.2007.043. The 
following is a summary of that assessment. The specific adoption of the 
amendments and new section is to bring 30 TAC Chapter 324 on Used Oil into 
compliance with Health and Safety Code Chapter 371, Section 371.026, 
Registration and Reporting Requirements of Used Oil Handlers Other Than 
Generators. The rule amendments and new section will substantially advance this 
specific purpose by eliminating biennial registration and annual reporting 
requirements and implementing in rule the state statutory requirement for 
financial responsibility. Promulgation and enforcement of these rules will not 
burden private real property which is the subject of the rule amendments because 
financial responsibility was already required by state statute but not federal 
rule, and the new state rule financial assurance requirements do not affect 
property values; they just provide funds for cleanup of contamination, if any, 
at site closure. Also, the following exception to the application of Chapter 
2007 of the Texas Government Code listed in Texas Government Code sec.2007.003 
apply to these rules: the rulemaking is reasonably taken to fulfill an 
obligation mandated by federal law in 40 Code of Federal Regulations, Part 279, 
Standards for the Management of Used Oil. 
COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW The executive director has 
reviewed the adopted rulemaking and found that the rule is neither identified in 
Coastal Coordination Act Implementation Rules, 31 TAC sec.505.11, nor will it 
affect any action/authorization identified in Coastal Coordination Act 
Implementation Rules, 31 TAC sec.505.11. Therefore, the adopted rule is not 
subject to the Coastal Management Program. 
HEARINGS AND COMMENTERS A public hearing was not held for this rulemaking. The 
comment period closed November 17, 1997. Safety-Kleen Corporation was the only 
commenter. Some of the comments were in support of the adopted changes and 
others recommended revisions. 
ANALYSIS OF COMMENTS Concerning sec.324.12(4), Safety-Kleen recommended changing 
the biennial reporting date from December 1 to January 25 or March 1 of the 
following year to avoid unnecessary written requests for an extension of the 
filing date. 
The commission agrees with this comment. Section 324.12(4) has been revised to 
eliminate the need to send a written request for an extension from December 1 to 
January 25 of the following year if the used oil activities of the 
processor/rerefiner continue through December 31. 
Concerning sec.324.22(a), Safety-Kleen commented: "Additionally, sec.324.22(a) 
defines used oil handlers' as owners and operators of used oil transfer, 
processing, refining, and off-specification used oil burning facilities, 
however, the active area' in which the financial assurance must be provided 
includes any transportation related area, while sec.324.11 provides requirements 
for Transporters and Transfer Facilities, should be subject only to sec.324.11 
and not sec.324.22." 
The commission does not agree with this comment. Section 324.11 provides the 
registration and federal requirements for used oil transporters and transfer 
facilities; it does not state that these are the only requirements that 
transporters and transfer facilities must meet. Section sec.324.22(a) (relating 
to Financial Responsibility Technical Requirements) clearly states that it 
"applies to owners and operators of used oil transfer, processing, rerefining, 
and off-specification used oil burning facilities, hereinafter referred to as 
used oil handlers'." State law applies the financial responsibility requirement 
to all used oil handlers other than generators (Texas Health and Safety 
Code,sec.371.026 (a)(C)). Therefore, sec.324.22 applies to owners and 
operators of used oil transfer facilities, as it does to other used oil 
handlers; and since this is the intent of state law, no change has been made in 
response to this comment. 
Concerning sec.324.22(c), Safety-Kleen proposed that Used Oil Handlers who 
conduct used oil management in facilities that already provide financial 
assurance for closure under hazardous waste permits should be exempt from this 
rule. 
The commission agrees with this comment. A used oil handler who already provides 
financial assurance for soil remediation of its used oil management facility 
under a separate commission permit would not have to secure financial assurance 
per new Chapter 37, Subchapter L (relating to Financial Responsibility for Used 
Oil Recycling). No change is required to sec.324.22(c) in response to this 
comment. 
Concerning sec.324.22(c), Safety-Kleen commented that the "active area" for 
which financial responsibility is to be provided is poorly defined and proposed 
that the commission provide more definition of the "earthen area." The 
commission does not agree with this comment. The commission offers the following 
clarification. Under sec.324.22(c), the active area is "the earthen area at the 
facility over which any transportation, storage, or processing of used oil 
occurs." A straightforward interpretation of this definition, which is the 
commission's intent, is that the active area is any earthen (e.g., not paved or 
lined with non-earthen material) area, or ground, at the facility where used oil 
is taken, stored, or can contaminate. It includes earthen area over which used 
oil trucks travel. It includes ground where used oil storage, processing, or 
transfer activities take place. It includes land under or around the surface of 
any ponds that contain any used oil, such as could be the case if the pond is 
used as a spill containment unit, or if the pond is contaminated from rainfall 
runoff containing used oil. These are examples of "active areas" because this 
land would be an earthen area over which used oil transportation, storage, or 
processing occurs. It does not include ground such as unused or vacant areas at 
the facility which have no potential to be contaminated with used oil, whether 
by spill or de minimis loss. The intent is to include as active areas all land 
areas that have the potential to become contaminated with used oil. Therefore, 
anywhere used oil is taken, anywhere used oil "goes," or anywhere used oil is 
handled in any way over the land at the facility qualifies as "active area." The 
commission believes that the meaning of the term "active area" is sufficiently 
clear as written in the proposed rule, so no change has been made in response to 
this comment. 
Concerning sec.324.22(d)(1)(B), Safety-Kleen did not feel that the certifying 
engineer had to be an "independent" engineer. 
The commission agrees with this comment. The word "independent" has been 
deleted. 
Concerning sec.324.22(d)(3), Safety-Kleen stated: "Facilities that are managed 
under 40 CFR Subpart E, as Transfer Facilities, should be subject only to 
sec.324.11 and not sec.324.22. The phrase or otherwise handled' is vague and 
should be clarified. Safety-Kleen proposes significant clarification of 
otherwise handled' or deletion of the phrase." 
The commission does not agree with all of these comments. It has already 
responded to the first sentence in its response to Safety-Kleen's comments 
concerning sec.324.22(a). 
In response to the comment that the phrase "or otherwise handled" under the 
optional or alternate requirements of sec.324.22(d)(3) is vague, a revision has 
been incorporated to help clarify the meaning, based upon the federal definition 
of "used oil transfer facility." The revised language now reads: "Used oil 
handler facilities must be provided with secondary containment for all areas 
where used oil is stored, transferred, or otherwise handled, including but not 
limited to loading docks, parking areas, storage areas, and any other areas 
where shipments of used oil are held for more than 24 hours...." 
With regard to sec.324.22(d)(3)(A), Safety-Kleen quoted Texas Health and Safety 
Code sec.371.028 This section states: "Unless otherwise required by federal or 
state law, the rules, standards, and procedures must be consistent with and not 
more stringent than the used oil management standards under the Resource 
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.)." Safety-
Kleen further stated that they believe that the secondary containment 
requirement portions of the proposed rules are more stringent than the federal 
used oil management standards, and are thus precluded. They went on to note that 
40 CFR Part 279 requires secondary containment systems to be "sufficiently 
impervious to used oil" to prevent release to the soil, groundwater, or surface 
water. They stated: "The secondary containment requirements in sec.324.22(d) to 
meet requirements for hazardous waste secondary containment are more stringent 
than the federal 279 requirements and are not consistent with Texas Health and 
Safety Code sec.371.028." They then contended that the secondary containment 
requirements in sec.324.22(d)(3)(A) (i.e. "a synthetic liner with a thickness of 
at least 40 mils") are more stringent than the hazardous waste secondary 
requirements. 
The commission does not agree that these requirements are precluded by state 
statute. The requirements in sec.324.22(a)-(d) implement the state statutory 
requirement for financial responsibility in Texas Health and Safety Code 
sec.371.026(a)(1)(C). Section 324.22(d) provides a "voluntary" alternative to 
provide a smaller amount of financial assurance in exchange for meeting 
requirements that are more protective of the environment. The commission does 
not interpret this voluntary alternative for a smaller amount of financial 
assurance than would otherwise be required to be in conflict with state law.
Concerning sec.324.22(d)(3)(B), Safety-Kleen proposed changing the language to 
add "either" after the word "plus."
The commission agrees with this comment. The proposed change has been made. 
Concerning sec.324.22(d)(3)(D), Safety-Kleen proposed adding the words "from 
discovery" after the words "within 24 hours." 
The commission agrees with this comment. The proposed change has been made.
Concerning sec.324.22(d)(4), Safety-Kleen believes the wording is not clear on 
how the capability is to be met to provide "spill response capability to 
adequately respond to a catastrophic spill" and requests further clarification.
The commission does not agree with this comment. The commission offers the 
following explanation. A catastrophic spill would be one that occurs suddenly, 
as opposed to a slow leak resulting in a relatively small spill. A sudden 
rupture of a tank or container resulting in a significant portion of the 
contents being released rapidly from the unit would be an example of a 
catastrophic spill. To meet the requirement of providing spill response 
capability to adequately respond to a catastrophic spill, the owner or operator 
would need to be able to adequately respond to this sudden release by 
discovering it in a timely manner, containing it, and cleaning it up. 
Catastrophic spills could, in severe cases, breach secondary containment. The 
owner or operator would need to be able to quickly respond, contain, and clean 
up the release. There are so many used oil facility types, designs, and 
configurations that the commission believes it is simply not feasible to craft a 
rule which addresses each type of facility with regard to what types of 
procedures, equipment, and provisions its owner or operator would need to be 
able to provide adequate catastrophic spill response capability. Therefore, no 
change has been made in response to this comment.
Concerning state registration, Safety-Kleen stated: "Since the used oil activity 
has to be notified to the United States Environmental Protection Agency (EPA) 
using Form 8700-12, Safety-Kleen proposes that the TNRCC eliminate the 
requirement for a separate form provided by the commission. 
The commission does not agree with this comment. Health and Safety Code 
sec.371.026(1) (relating to Registration and Reporting Requirements of Used Oil 
Handlers Other Than Generators) mandates registration with the commission and 
makes providing proof of financial responsibility a requirement for 
registration. Because the EPA does not have a used oil handler financial 
responsibility requirement as a condition of registration, satisfaction of this 
state statutory requirement is not included on their registration Form 8700-12. 

SUBCHAPTER A.Used Oil Recycling
30 TAC sec.sec.324.4, 324.11-324.14, 324,22
STATUTORY AUTHORITY The amended and new sections are adopted under Texas Health 
and Safety Code, Chapter 371, sec.371.026, which provides the commission with 
the authority to establish rules on Registration and Reporting Requirements of 
Used Oil Handlers Other Than Generators. The amended and new sections are also 
proposed under Texas Water Code, sec.sec.5.103, 5.105, and 26.011, which provide 
the commission the authority to adopt rules necessary to carry out its powers, 
duties, and policies and to protect water quality in the state.

sec.324.12.Processors and Rerefiners.
Standards for used oil processors and rerefiners shall be as in 40 CFR Part 279, 
Subpart F and as specified in this section. 
(1) (No change.) 
(2) Registration. Processors and rerefiners must register with the EPA and the 
commission one time on their used oil activities. Processors and rerefiners must 
register their used oil activities within 90 days of initiation under this rule 
if they have not previously registered their specific used oil activities with 
the commission and the EPA prior to the effective date of this rule. Processors 
and rerefiners must register, through the commission, using the EPA Form 8700-12 
(one time) and a form provided by the commission. Registration forms should be 
mailed to the Texas Natural Resource Conservation Commission, Municipal Solid 
Waste Division, MC 125, P.O. Box 13087, Austin, Texas 78711-3087. 
(3) (No change.) 
(4) Biennial report. The processor/rerefiner biennial report required by 40 CFR 
sec.279.57(b) covering each odd numbered year shall be provided to the 
commission by December 1 of the odd numbered year if all used oil operations 
have been completed for that year; if not, the processor/rerefiner shall submit 
the report by January 25 of the following even numbered year. The information 
shall be entered on a commission-prescribed form and forwarded to the 
commission. Mail the report form to the Texas Natural Resource Conservation 
Commission, Municipal Solid Waste Division, MC 125, P.O. Box 13087, Austin, 
Texas 78711-3087. 

sec.324.22.Financial Responsbility Technical Requirements.
(a) This section applies to transporters of used oil who are seeking 
registration under this chapter. It also applies to owners and operators of used 
oil transfer, processing, rerefining, and off-specification used oil burning 
facilities, hereinafter referred to as "used oil handlers". It does not apply to 
a used oil handler which is owned or otherwise effectively controlled by the 
owners or operators where the used oil is generated. 
(b) Within 90 days after the effective date of this rule, transporters of used 
oil must meet the financial responsibility requirements provided in 30 Texas 
Administrative Code Chapter 37, sec.37.2021 and used oil handlers subject to the 
requirements of either subsection (c) or (d) of this section must meet the 
financial responsibility requirements provided in sec.37.2011 of this title 
(relating to Financial Responsibility Requirements for Used Oil Handlers). 
(c) Used oil handlers meeting the requirements of this subsection must provide 
financial assurance for soil remediation in the amounts specified. A used oil 
handler subject to this subsection must, within 30 days after an increase in the 
active area of the facility which results in a higher financial assurance 
requirement, provide for increased financial assurance. Additionally, a used oil 
handler must, at a minimum, update its financial assurance annually to cover any 
increased cost due to inflation and to account for any other appropriate 
adjustments, including a lower financial assurance amount due to a decrease in 
the active area of the facility. The active area of the facility is the earthen 
area at the facility over which any transportation, storage, or processing of 
used oil occurs. Records demonstrating the size of the active area of the 
facility and related financial assurance are to be maintained in the operating 
record of the facility. (Also, see 30 TAC sec.37.2011(c) of this title (relating 
to Financial Responsibility Requirements for Used Oil Handlers.)) The specified 
amount for which financial assurance must be provided is as follows: 
(1) for a facility with an active area of over 1,000 square feet up to 10,000 
square feet, $410 for each 1,000-square-foot increment;
(2) for a facility with an active area of over 10,000 square feet up to 100,000 
square feet, $4,100 for each 10,000-square-foot increment; 
(3) for a facility with an active area of over 100,000 square feet up to 
1,000,000 square feet, $41,000 for each 100,000 square-foot increment and $4,100 
for each 10,000 square-foot increment; 
(4) for a facility with an active area of over 1,000,000 square feet, $410,000 
for each 1,000,000-square foot increment, $41,000 for each 100,000 square-foot 
increment, and $4,100 for each 10,000 square-foot increment; or 
(d) Used oil handlers may meet the following alternate requirements:
(1) used oil handlers must demonstrate compliance with this chapter, as follows: 
(A) used oil handlers must annually provide a certification statement to the 
executive director that the used oil handler is in compliance with the 
applicable requirements of this chapter; and 
(B) all used oil handlers must obtain certification from a Registered 
Professional Engineer or other qualified independent professional that the used 
oil facility units have been designed and constructed in accordance with 
appropriate design standards, and that the units exhibit mechanical integrity. 
Such a certification must be obtained for each unit added to the facility, and 
for each unit that has undergone repair to restore mechanical integrity, within 
90 days of the addition or completion of repair; 
(2) Used oil handlers must ensure that used oil spills in quantities of 25 
gallons or greater are reported to the agency in accordance with the spill 
reporting requirements of Chapter 327 of this title (relating to Spill 
Prevention and Control); 
(3) Used oil handler facilities must be provided with secondary containment for 
all areas where used oil is stored, transferred, or otherwise handled, including 
but not limited to loading docks, parking areas, storage areas, and any other 
areas where shipments of used oil are held for more than 24 hours; and the 
facility's used oil tanks, containers, and secondary containment must be 
constructed, operated, and maintained to conform to the requirements of Title 40 
Code of Federal Regulations sec.sec.264.174, 264.193(c)-(f), and 264.195(b), as 
if the used oil were hazardous waste, or to conform to the following: 
(A) the secondary containment must be stationary and constructed of non-earthen 
material (e.g., concrete) and which is maintained to be free of cracks, gaps, or 
holes, and which is overlain with a synthetic liner with a thickness of at least 
40 mils; 
(B) the secondary containment must be large enough to contain a catastrophic 
spill of 100% of the capacity of the largest used oil storage, transfer, or 
other handling equipment or device within the containment area, plus either at 
least 12 inches of freeboard or sufficient freeboard to hold the precipitation 
which would be collected within the containment area, including any run-on or 
infiltration of precipitation, which would occur as a result of a 25-year, 24-
hour rainfall event; 
(C) the secondary containment system must prevent the release of used oil or 
other accumulated liquid from the secondary containment system to the soil, 
ground water, or surface water until the collected material is removed; 
(D) used oil or other accumulated liquid must be removed from the secondary 
containment system within 24 hours from discovery, or in as timely manner as 
possible; 
(4) Used oil handlers must provide spill response capability to adequately 
respond to a catastrophic spill of 100% of the capacity of the largest used oil 
storage, transfer, or other handling equipment or device, plus 10% of the 
capacity of the remaining used oil, storage, transfer, and other handling 
equipment and devices; and 
(5) Used oil handlers must meet the requirements of subsection (c) of this 
section, except the specified amount for which financial assurance must be 
provided is 10% of the amount that would otherwise be required under subsection 
(c). 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 25, 1998.
TRD-9802793
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 17, 1998
Proposal publication date: October 17, 1997
For further information, please call: (512) 239-6087

30 TAC sec.sec.324.17-324.20
The repeal are adopted under Texas Health and Safety Code, Chapter 371, 
sec.371.026, which provides the commission with the authority to establish rules 
on Registration and Reporting Requirements of Used Oil Handlers Other Than 
Generators. The repeal is also proposed under Texas Water Code, sec.sec.5.103, 
5.105, and 26.011, which provide the commission the authority to adopt rules 
necessary to carry out its powers, duties, and policies and to protect water 
quality in the state. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Filed with the Office of the Secretary of State on February 25, 1998.
TRD-9802792
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 17, 1998
Proposal publication date: October 17, 1997
For further information, please call: (512) 239-6087

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART I. General Land Office
CHAPTER 13.Land Resources
Land Sales-Preferential Right to Purchase Certain Former Superconducting Super 
Collider Tracts
31 TAC sec.sec.13.60-13.67
The General Land Office (GLO) adopts new sec.sec.13.60-13.67 (relating to 
preference right to purchase certain tracts of land conveyed to the state for 
use by the superconducting super collider research facility in Ellis County, 
Texas), with changes to the proposed text as published in the February 6, 1998, 
issue of the Texas Register (23 TexReg 917). 
The new rules are being adopted to implement administrative procedures related 
to the statutory preference right to purchase certain tracts of land conveyed to 
the state for use by the superconducting super collider research facility in 
Ellis County, Texas, created by legislation which is codified in Texas Natural 
Resources Code, sec.31.309. 
Texas Natural Resources Code, sec.31.309 provides a statutory preference right 
to purchase but does not provide procedural details for implementation of the 
statutory preference right. 
These new rules set forth the procedures to be followed by the GLO for 
notification of the preference right to purchase certain tracts of land conveyed 
to the state for use by the superconducting super collider research facility in 
Ellis County, Texas and the procedures by which the preference right must be 
exercised. 
Adoption of these rules is necessary to provide the agency and affected parties 
with administrative procedures to comply with the Texas Natural Resources Code, 
sec.31.309. 
The only comments that the GLO received regarding the proposed new rules were 
from Stewart Title Guaranty Company (Stewart). The comments were in favor of 
adoption of the rules with requested clarification. 
By general comment, Stewart requested that the rules include a list of specific 
tracts offered for sale under the Texas Natural Resources Code, sec.31.158, if 
the sales price is likely to exceed $1,000,000.00 or if the tract comprises a 
major portion of former Texas National Research Laboratory Commission land, 
including evidence that such tracts were offered for sale.
The GLO disagrees with the request for the reason that the sales price of the 
tracts is irrelevant to the procedures for the notification and exercise of the 
preference right because the statute does not establish a price threshold for 
the statutory preference right. 
By general comment, Stewart also requested a clarification regarding the 
authority of the GLO to offer tracts for sale under the Government Code, 
sec.465.018 without competitive bid. The GLO believes that the law speaks for 
itself and such clarification is not necessary for inclusion in the rules.
The GLO refers Stewart to Government Code, sec.465.008(f) for the authority to 
sell without competitive bid.
By further general comment, Stewart requested that for each of the tracts not 
subject to the preference right to purchase because the tracts had been 
previously offered for sale, the GLO require that the records and files of the 
GLO include substantiation of the offer for sale process. The GLO agrees and has 
clarified sec.13.62(a)(2) to include such a requirement. 
By way of general comment, Stewart requested clarification that a preference 
right may not be transfered to a third party. The GLO agrees and has clarified 
sec.13.62(b) and added sec.13.62(d) to incorporate the clarification.
Stewart suggested specific changes to sec.13.64(a)(1) to make the reference to 
the "files and records of the GLO" to a reference to the files relating to the 
specific property. The GLO agrees and has revised sec.sec. 13.64(a)(1) and 13.65 
to address Stewart's concerns.
Stewart suggested specific changes to sec.13.66 for clarification of the 
enforceability of a preference right against third party purchasers from the 
GLO. In response to Stewart's concerns, sec.13.62(e) has been added.
Stewart suggested a specific change to sec.13.62(c) to clarify that the notice 
relating to the preference right is intended to be given only once. The GLO 
agrees and has made the clarification. 
These new rules are adopted under Texas Natural Resources Code, sec.31.309, 
which authorizes the Commissioner to promulgate rules necessary to implement 
sec.31.309.

sec.13.60.Purpose and Scope. 
The purpose of this subchapter is to provide procedures for notification and for 
exercise of the preference right to purchase certain property conveyed to the 
state for use by the superconducting super collider research facility in Ellis 
County, Texas, as set forth in the Texas Natural Resource Code, sec.31.309. 

sec.13.61.Definitions. 
The following words and terms, when used in this subchapter, mean the following 
unless the context clearly indicates otherwise: 
Conveyed - The transfer of title whether by deed or condemnation for use by the 
superconducting super collider research facility in Ellis County, Texas. 
GLO - General Land Office Heirs - One entitled to inherit the estate of a 
decedent under a lawful will, or under the laws of descent and distribution then 
in effect in the State of Texas.
Person - An individual, a duly organized corporation, business trust, estate, 
trust, partnership, limited liability company, association or other business 
entity, or a government or governmental subdivision or agency.
Preference right - A statutory priority right to purchase property in accordance 
with this subchapter by a person, or combination of persons, whose interests 
constitute joint ownership of the entire property.
Property - A tract of land acquired by the state by deed or condemnation for use 
by the superconducting super collider research facility in Ellis County, Texas, 
or portion thereof, which has not been offered for sale, or sold prior to 
January 1, 1998.
Successor - A subsequent holder of the preference right of another entity which 
was acquired by operation of law. 
TNRLC- The Texas National Research Laboratory Commission, a state agency which 
ceased to exist by act of the legislature, and whose authority to manage, 
control, market and dispose of real property and interests in real property was 
transferred to the GLO under the Government Code sec.465.018(d).

sec.13.62. Preference Right 
(a) There is no preference right as to any property sold, under contract for 
sale, or offered for sale prior to January 1, 1998. For purposes of this 
section, the phrase offered for sales shall include, any of the following 
activities: 
(1) the publication of a list of properties to be sold by sealed bid sale held 
by the GLO under the provisions of the Texas Natural Resource Code sec.31.158; 
or 
(2) any traditional and customary real estate industry actions or practices 
taken to elicit offers for the sale of property, including without limitations, 
the placement of "For Sale" signs, advertisement for sale in newspapers, 
magazines, brochures, flyers, or the internet, evidence of which shall be 
retained in the GLO land files pertaining to the sale of the property; 
(b) As to property not offered for sale prior to January 1, 1998, a preference 
right shall accrue and be limited to a person, or the person's heirs or 
successor who conveyed land to the state for use by the superconducting super 
collider research facility in Ellis County, Texas. 
(c) Before the GLO initiates formal action to sell a particular tract of 
property to any other party, notice shall be given to a person with a preference 
right, in accordance with the provisions of sec.13.63 of this subchapter 
(relating to Notice of Preference Right). 
(d) A preference right may not be sold, transferred or assigned to a third 
party. 
(e) A preference right is not an interest in the property.

sec.13.63. Notice of Preference Right.
The notice of preference right shall contain: 
(1) the date of the notice; 
(2) a legal description of the property subject to the preference right; 
(3) an application to purchase the tract in a form prescribed by the GLO; 
(4) a statement informing the addressee that in order to exercise the preference 
right, the addressee must deliver a signed application to the GLO at the address 
set forth in the application on or before the 30 days after the date of the 
notice, and pay to the GLO a fee in the amount of $300.00, which shall be 
applied to the cost of an appraisal of the property described in the 
application. The required fee shall not be refundable and shall not apply to the 
purchase price of the property from the GLO; and 
(5) a statement that within 15 days after receipt of written notice from the GLO 
of appraised value, the addressee shall, enter into a contract to purchase the 
property described in the application at the appraised value, on the terms and 
conditions contained in a form of purchase contract prescribed by the GLO, or 
the preference right is conclusively deemed to have been waived.

sec.13.64. Method of Service of Notice 
(a) The notice required by sec.13.63 of this subchapter (relating to Notice of 
Preference Right) shall be given only once by each of the following methods: 
(1) certified mail, return receipt requested, to the last known address of the 
person who conveyed the tract or any portion of the tract to the state, as 
reflected in the files and records of the GLO pertaining to the property; and 
(2) publication of a "Notice of Preference Right to Purchase Certain Former 
Superconducting Super Collider Property" in at least three issues of a daily 
newspaper published in Waxahachie, Texas, and in at least three issues of a 
daily newspaper in the Dallas/Ft. Worth Metroplex. The last date of publication 
shall be 30 days prior to the deadline, for application established in sec.13.63 
of this subchapter. The notice shall be addressed to all prior owners (their 
heirs or successor) who conveyed the property subject to the preference right. 
(b) Notice given by certified mail shall be deemed delivered upon deposit in a 
US Postal Service depository, postage prepaid, regardless of whether the notice 
is returned to the GLO as unclaimed, undeliverable or for any other reason noted 
by the US Postal Service. 
(c) Notice given by publication shall be deemed received the last date of 
publication. 

sec.13.65Proof of Notice
(a) The prefix "SU" shall be assigned to all GLO land files pertaining to the 
sale of property; and 
(b) The prefix "PF" shall be assigned to all land files pertaining to the 
acquisition of the property. 
(c) The GLO shall maintain copies of all notices provided pursuant to this 
subchapter in the "SU" file of each tract sold under this subchapter. The 
records of the GLO shall be conclusive proof of the fulfillment of notice 
requirements of this subchapter. 

sec.13.66. Exercise of Preference Right 
A person or a person's heirs or successor entitled to a preferential right shall 
strictly comply with the deadlines and other conditions of sale set forth in 
this subchapter and any contract of sale, or the preference right shall be 
deemed waived without further action of the GLO. 

sec.13.67.Permitted Exceptions.
The property sold under this subchapter shall be conveyed subject to any 
easements, covenants, restrictions, rights-of-way and any other encumbrances or 
other matters of record in the official records of the GLO or Ellis County, 
Texas, and any other matters contained in the contract of sale. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 2, 1998.
TRD-9803030
Garry Mauro
Commissioner
General Land Office
Effective date: March 22, 1998
Proposal publication date: February 6, 1997
For further information, please call: (512) 305-9129

PART II. Texas Parks and Wildlife Department
CHAPTER 51.Executive
SUBCHAPTER G.Nonprofit Organizations
31 TAC sec.51.164
The Texas Parks and Wildlife Commission in a regularly scheduled public hearing 
on January 22, 1998 adopted an amendment to sec.51.164, concerning Gifts to the 
Department without changes to the proposed text as published in the December 19, 
1997, issue of the Texas Register (22 TexReg 12424). 
Senate Bill 145 passed by the 75th Legislature provides specific direction to 
state agencies regarding the acceptance of gifts. The Act provides that all 
gifts of money or property with a value of $500 or more must be accepted by the 
Commission in an open meeting. The Act further states that the name of the 
donor, a description of the gift and a statement of the purpose of the gift must 
be recorded in the minutes of the meeting. 
The Department received no public comments concerning the proposed amendments. 
The amendment is adopted under Parks and Wildlife Code, sec.11.026 which 
provides authority for the department to accept gifts of property or money in 
support of any department purpose authorized by the Parks and Wildlife Code. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 25, 1998.
TRD-9802756
Bill Harvey.
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: March 17, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 389-4642

CHAPTER 57.Fisheries
SUBCHAPTER I.Mandatory Boater Education Program
31 TAC sec.sec.57.701, 57.703, 57.705, 57.707
The Texas Parks and Wildlife Commission in a regularly scheduled public hearing 
on January 22, 1998 adopted new sec.sec.57.701, 57.703, 57.705, and 57.707, 
concerning Mandatory Boater Education Program. Sections 57.703, 57.705, and 
57.707 were adopted without changes to the proposed text as published in the 
December 19, 1997, issue of the Texas Register (22 TexReg 12425). Section 57.701 
was adopted with changes in sec.57.701(a)-(b) include the inclusion of the term 
"and equivalency exam proceses" for clarification of the scope of the new rules. 
To comply with new Parks and Wildlife Code sec.sec.31.108-31.110 enacted by the 
75th legislature, Education and Law Enforcement Division staff reviewed revised 
sections regarding Personal Watercraft (sec.31.106) and Operation of Motorboat 
(sec.31.107), and new sections regarding a Mandatory Boater Education Program. 
Similar to the evolution of mandatory hunter education is Texas, the department 
currently has in place a voluntary boater education program which began in 1977. 
The new emphasis on boater education and water safety awareness will give staff 
the opportunity to reach thousands of new boaters. Staff plans to use many 
diverse teaching methods such as home study, challenge exams and a course 
available on the world wide web to make it as convenient as possible for boaters 
to comply with the new provisions. Future generations will experience safer, 
more enjoyable boating despite more crowded conditions as a result of this 
comprehensive effort to reach more boaters and other users of the public 
waterways of Texas. 
The Department received public comment from the Texas Boating Trades 
Association. The comments suggest changes in sec.57.701(a)-(b) to clarify the 
scope of the new rules. 
Staff agrees with these suggestions and changes in the rules as adopted to 
reflect the suggestion are included. 
Because the subject of the proposed amendments is in all cases public property 
and no restrictions are imposed by the regulations on the use of private 
property, there is no takings impact within the purview of the private Real 
Property Rights Preservation Act, (the Act) Chapter 2007 of the Government Code. 
Furthermore, there are no governmental actions allowed by the proposed 
regulations which fall under the purview of the definition of a "taking" in 
sec.2007.002(5) of the Act. Rules relating to regulation of activities: Takings 
Impact Assessment. Because the subject of the proposed amendments relates to 
activities only on public property and no restrictions are imposed by the 
regulations on the use of private property, there is no takings impact within 
the purview of the private Real Property Rights Preservation Act, (the Act) 
Chapter 2007 of the Government Code. Furthermore, there are no governmental 
actions allowed by the proposed regulations which fall under the purview of the 
definition of a "taking" in sec.2007.002(5) of the Act.
The new rules are adopted under authority of Parks and Wildlife Code 
sec.sec.31.108-31.110.

sec.55.701.Boater Education Program.
(a) All courses approved for certification and equivalency exam processes must 
be approved by the department using minimum national standards as means of 
approval. 
(b) Courses and equivalency exams shall consist of the following subjects: 
(1) Boats - boat uses, capacities, trailers, equipment, numbering, titling; 
(2) Boating safety - accident causes, prevention and emergency procedures; 
(3) Boating operation- preparation, float plans, navigation rules, navigation 
aids, local hazards and weather; and 
(4) State laws - Texas Water Safety Act, Boating While Intoxicated (BWI) Laws, 
violation prevention and basic boating responsibilities.
(c) The course is successfully completed when the student:
(1) attends at least six hours of training; 
(2) is evaluated by the instructor as acceptable in attitude, knowledge and 
skill; and 
(3) scores a minimum of 70% on a course exam prescribed by the department. 
(d) In lieu of a course, a person may complete an equivalency exam process 
consisting of a multiple-choice exam proctored by an agent appointed by the 
department or accessed through a department-sponsored web site. 
(1) Home study and equivalency exam passage shall be set at a minimum 80 percent 
passing score. 
(2) A person who fails the exam may retake it one time at least 24 hours after 
the time of first completion. 
(e) The department shall: 
(1) train and certify boater education instructors upon completion of an 
application, game warden interview and proof of student and instructor course 
completion; 
(2) administer all records of certifications; and 
(3) approve the standard form for a boater education identification to be issued 
to a person who successfully completes a boater education course or equivalency 
exam. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 25, 1998.
TRD-9802753
Bill Harvey
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: March 17, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 389-4642

TITLE 37. PUBLIC SAFETY AND CORRECTIONS
PART V. Texas Board of Pardons and Paroles
CHAPTER 143. Executive Clemency
Full Pardon and Restoration of Rights of Citizenship
37 TAC sec.143.2
The Policy Board of the Texas Board of Pardons and Paroles adopts an amendment 
to sec.143.2, concerning pardons for innocence, without changes to the proposed 
text as published in the December 19, 1997, Texas Register (22 TexReg 12440). 
The adopted text will not be republished. 
The justification for the amendment to sec.143.2 is that the requirements for 
consideration of an application for full pardon based upon innocence will be 
clarified. Specifically, in order for the Board to consider the application, if 
the recommendation from current trial officials is based on evidence not 
previously available, the application must contain a certified order or judgment 
from a court having jurisdiction accompanied by a certified copy of the findings 
of fact. 
No comments were received regarding adoption of the amendment. 
The amendment is adopted under Article 42.18, sec.6A (c)(1), Code of Criminal 
Procedure, which provides the Policy Board with power to adopt rules relating to 
the decision-making processes used by the Board of Pardons and Paroles, and 
under the Texas Constitution, Article IV, Section 11, and the Texas Code of 
Criminal Procedure, Article 48.01, which provide the Board with authority to 
recommend reprieves, commutations of punishments and pardons. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 2, 1998.
TRD-9803038
Laura McElroy
General Counsel
Texas Board of Pardons and Paroles
Effective date: March 22, 1998
Proposal publication date: December 19, 1997
For further information, please call: (512) 463-1883

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART XX. Texas Workforce Commission
CHAPTER 800.General Administration
SUBCHAPTER F.Interagency Matters
40 TAC sec.sec.800.201-800.204
The Texas Workforce Commission (Commission) adopts new sec.sec.800.201-800.204, 
concerning Interagency Matters without changes to the proposed text as published 
in the January 2, 1998, issue of the Texas Register (23 TexReg 100). The adopted 
text will not be republished herein. These rules are being added to relocate the 
rules concurrently repealed into the first chapter of 40 TAC Part XX concerning 
the Texas Workforce Commission rules and to incorporate technical and clarity 
changes. The new rules will include much of the language from the existing 
sec.sec.819.1-819.3 pertaining to memorandums of understanding of the agency, 
but will also include additional language which the Commission deems appropriate 
in order to implement the purpose under its enabling legislation. 
New Subchapter F. Interagency Matters will be the location of the new rules.
New sec.800.201, relating to Title and Purpose, sets out the title and purpose 
of the subchapter. 
New sec.800.202, relating to Memorandum of Understanding with the Texas 
Commission for the Deaf and Hard of Hearing, sets out the memorandum text by 
reference. 
New sec.800.203, relating to Memorandum of Understanding with Texas Education 
Agency, sets out the memorandum text by reference. 
New sec.800.204, relating to Memorandum of Understanding with Texas Department 
of Economic Development, sets out the memorandum text by reference. 
No comments were received regarding the adoption of the new rules. 
The new sections are adopted under Texas Labor Code, sec.301.061, which provides 
that the Commission has the authority to adopt, amend, or rescind such rules as 
it deems necessary for the effective administration of the Act.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802945
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: March 19, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

CHAPTER 819.Interagency Matters
40 TAC sec.sec.819.1-819.3
The Texas Workforce Commission (Commission) adopts the repeals of sec.sec.819.1-
819.3, concerning Interagency Matters as published in the January 2, 1998, issue 
of the Texas Register (23 TexReg 109). 
The adoption of the repeal will be concurrent with the adoption of new 
sec.sec.800.201-800.204 concerning Interagency Matters. 
These rules are being repealed to relocate the rules into the first chapter of 
40 TAC Part XX concerning the Texas Workforce Commission rules and incorporate 
technical and clarity changes. The new rules will include much of the language 
from the existing sec.sec. 819.1-819.3 pertaining to memorandums of 
understanding of the agency, but will also include additional language which the 
Commission deems appropriate in order to implement the purpose under its 
enabling legislation. No comments were received regarding the adoption of the 
repeals. 
The rules are repealed under Texas Labor Code, sec.301.061, which provides that 
the Commission has the authority to adopt, amend, or rescind such rules as it 
deems necessary for the effective administration of the Act.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802944
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: March 19, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 25. Traffic Operations
SUBCHAPTER G. Specific Information Logo Sign Program
43 TAC sec.sec.25.401, 25.407, 25.409
The Texas Department of Transportation adopts amendments to sec.25.401, 
concerning definitions, and sec.25.407 and sec.25.409, concerning the specific 
information logo sign program. Section 25.401 is adopted with changes to the 
proposed text as published in the November 14, 1997, issue of the Texas Register 
(22 TexReg 11065). Sections 25.407 and 25.409 are adopted without changes and 
will not be republished. 
EXPLANATION OF ADOPTED AMENDMENTS. These amendments are adopted under 
Transportation Code, sec.sec.391.091-391.098, which authorizes the department to 
erect and maintain specific information logo signs, major shopping area guide 
signs, and major agricultural interest signs along eligible highways. Senate 
Bill 370, sec.2.04, 75th Texas Legislature, 1997, added sec.391.098 requiring 
the Texas Transportation Commission to authorize the executive director to grant 
variances on a case-by-case basis to the eligibility, location, or placement of 
specific information logo signs, major shopping area guide signs, and major 
agricultural interest signs. This statute allows the executive director to grant 
a variance if the director determines that a variance would promote traffic 
safety or promote traffic flow, if an existing commercial sign is obstructed by 
a highway structure, or for any other condition or guideline prescribed by rule. 
The three types of sign programs include: specific information logo signs 
displaying the names of commercial establishments that provides gas, food, 
lodging, or camping; major shopping area guide signs displaying the names of 
major shopping areas; and major agricultural interest signs displaying the name 
of a farm, ranch, winery, nursery, greenhouse, or other facility.
Section 25.401 clarifies various definitions to indicate that the signs in these 
programs are supplemental signs as defined by the Texas Manual on Uniform 
Traffic Control Devices. This change is to ensure that logo signs are of an 
appropriate size. This section has been changed to number the definitions in 
accordance with the Texas Register style. 
Section 25.407 describes the conditions under which a major shopping area guide 
sign may be covered to improve traffic safety, traffic flow, and mitigate 
potentially adverse operational impacts to the state highway system. The 
department may cover a sign if the participating retail shopping area 
temporarily closes or if the department determines that the retail shopping 
mall's parking is so insufficient that it caused undo congestion of the state 
highway system. In order to ensure that traffic congestion problems at a retail 
shopping mall are corrected, this section also allows the contractor, at the 
request of the department, to remove a major shopping area guide sign if the 
participating retail mall does not correct items or conditions that the 
department has identified as causing undue congestion within 90 days. 
The department recognizes that there are malls that merit signage because of 
traffic flow and safety considerations, but which are not eligible for 
participation in the program because they do meet each criteria requirement. In 
order to allow these malls to participate in the major shopping areas sign 
program and to comply with the requirements of Transportation Code, sec.391.098, 
the amendments to sec.24.409 establishes procedures and policies for variances 
from the requirements of the program. The section allows a person to request a 
variance for the major shopping area guide sign program for waiver of the 
requirements concerning building area, land acreage, or that the buildings of 
the retail shopping establishment be connected by a common continuous roof, and 
outlines the procedure. In order to ensure that the executive director has 
sufficient data to make an informed variance decision, the section authorizes 
the department to require additional documentation including, but not limited 
to, traffic studies, maps, traffic flow analysis, crash data and analysis, and a 
detailed site plan of the major shopping area. This section also describes the 
conditions under which the executive director may grant or deny the variance. In 
order to ensure that an entity requesting a variance is informed of the reasons 
for the executive director's decision, the section requires that the executive 
director issue the reason for granting or denying the requested variance in 
writing. 
RESPONSE TO COMMENTS. On December 2, 1997 a public hearing was held for the 
purpose of receiving comments relating to the proposed adoption of amendments to 
sec.sec.25.401, 25.407, and 25.409. Three oral comments were received at the 
hearing from the Texas Hotel and Motel Association, Tanger Outlet Center in San 
Marcos, and City of Waller. The department received written comments from 
Representative Mike Jackson from the Texas House of Representatives, the Texas 
Hotel and Motel Association, and the Waller civic and business community. The 
commenters did not indicate whether they were for or against the amendments.
Comment: Tanger Outlet Center in San Marcos (Tanger) commented on the 
amendments. Tanger summarized the economic benefits and number of visitors 
generated by outlet centers in Texas. Tanger requested that the proposed 
revision to sec.25.409 be modified to allow consideration of variances for major 
shopping areas located on highways which have fewer than one million square feet 
and are in metropolitan areas of fewer than 200,000 population. 
Response: Although, the amendments allow Tanger to request a variance as to 
building area square footage, the amendments did not address a waiver for 
population size. The department will research the necessity and criteria that 
should be used for waiving population and consider amending the rules at a 
future date. 
Comment: Representative Mike Jackson stated that Senate Bill 370, sec.2.04 
should apply to all sign programs, and not just be limited to major shopping 
area guide signs. 
The Texas Hotel and Motel Association (THMA) expressed its concern that the 
proposed revisions did not meet the legislative intent of Senate Bill 370, 
sec.2.04. In particular, THMA stated that the intention of the amendment to 
Senate Bill 370 was to allow variances for all commercial signing programs 
operated by the department, not just the major shopping area guide sign program. 
THMA stated that there are circumstances where the granting of a variance for a 
sign would be reasonable and justified. THMA used as an example a hotel in the 
Hillsboro area which does not have driveway access to an eligible urban highway 
frontage road, ramp, intersecting cross street, or city street and is therefore 
not currently eligible for a sign. The department received similar written 
comments from THMA which reiterated its concern that the proposed revisions to 
sec.sec.25.401, 25.407 and 25.409 did not meet the legislative intent of Senate 
Bill 370, sec.2.04. 
Response: The specific information logo sign is not the topic of these 
amendments. In considering these amendments, the department determined that the 
vast majority of the variances would be requested for major shopping area guide 
signs. The purpose of the amendments was to fully inform the traveling public of 
the location and availability of major shopping areas of interest. Thus, the 
amendments only address those signs. The department will consider proposing 
variances to the other two programs at a later date. The department still has 
information to gather concerning the specific information logo sign program 
before it can determine what variances are needed. The department will take the 
comments received concerning the specific information logo sign program into 
consideration in that decision. Since the major agricultural interest guide sign 
is a fairly new program, it is not clear whether variances will be needed and if 
they are, what type of variances these should be. Once the type of and criteria 
for necessary variances are determined, the department will consider 
promulgating appropriate rules. 
Comment: The City of Waller requested a specific information logo sign on the US 
290 bypass in order to display available restaurants, gas locations, and other 
attractions that are available in Waller. A document was submitted consisting of 
one letter from the Mayor of the City of Waller, one letter on behalf of a local 
restaurant, and six letters from various retail shops noting economic problems 
experienced by the City of Waller as a result of the recently completed Highway 
290 bypass of Waller. Three graphs depicting changes in income for several local 
merchants were also submitted. 
Response: The enabling legislation for the specific information logo sign 
program does not authorize the Texas Transportation Commission to add another 
primary motorist service as requested. "GAS", "FOOD", "LODGING", AND "CAMPING" 
are the only motorist services that were included in the legislation. Variances 
concerning the retail establishments that fall into these motorist services will 
be considered in future rulemaking. 
STATUTORY AUTHORITY. The amendments are adopted under Transportation Code, 
sec.201.101, which authorizes the Texas Transportation Commission to promulgate 
rules for the conduct of the work of the Texas Department of Transportation, and 
more specifically Transportation Code, sec.sec.391.091-391.098, which authorizes 
the department to erect and maintain specific information logo signs, major 
shopping area guide signs, and major agricultural interest signs along eligible 
highways, and to grant variances on a case-by-case basis to the eligibility, 
location, or placement of specific information logo signs, major shopping area 
guide signs and major agricultural interest signs. 

sec.25.401. Definitions. 
The following words and terms, when used in the sections under this subchapter, 
shall have the following meanings, unless the context clearly indicates 
otherwise. 
(1) Business logo - A separate sign panel of specified dimensions attached to a 
specific information logo sign and containing the commercial establishment name, 
symbol, brand, trademark, or combination. 
(2) Close proximity interchanges - Sequential interchanges in a direction of 
travel where exit ramp spacing or existing regulatory, guide, or warning signs 
preclude placement of a minimum of two specific information logo signs between 
exits. 
(3) Commercial establishment - A privately owned business or corporation 
offering one or more of the primary motorist services. 
(4) Commission - The Texas Transportation Commission.
(5) Contractor - A person, firm, group, or association in the State of Texas 
that acts as the authorized agent of the department in the operation of the 
specific information logo sign program. 
(6) Department - The Texas Department of Transportation.
(7) Driveway access - A vehicle entrance, built in compliance with state and 
local standards and regulations, for use by the public providing access from a 
public street or highway to a commercial establishment or major shopping area. 
(8) Eligible highway - A highway that is located outside an urbanized area with 
a population of 50,000 or more; and qualifies for a maximum speed limit of 65 
miles per hour under 23 U.S.C. sec.154, or if that law is repealed, qualified 
for a maximum speed limit of 65 miles per hour on the day before the effective 
date of the repeal. 
(9) Eligible urban highway - An interstate highway located inside an urbanized 
area with a population of 200,000 or more. 
(10) Gross building area - Square footage of usable area within a building, or 
series of buildings under one roof, that is considered usable by the retail 
businesses and the public; if a building is multi-level, this includes the 
square footage available on each level. 
(11) Information logo sign - A specific information logo sign or a major 
shopping area guide sign. 
(12) Interchange - The intersection of the centerlines of an eligible highway or 
eligible urban highway and a crossroad. 
(13) Interstate highway - Any highway which is part of the national system of 
interstate and defense highways designed to be a multi-lane and divided full 
control access roadway. 
(14) Major shopping area - An enclosed retail shopping mall offering goods and 
services for sale to the public located on a minimum 30 acres of land that 
contains 1,000,000 square feet or more of gross building area. 
(15) Major shopping area guide sign - A rectangular supplemental sign panel 
imprinted with the name of the retail shopping area as it is commonly
known to the public and containing directional information. 
(16) Major shopping area ramp sign - A supplemental sign with the common name of 
the retail shopping mall, directional arrows, and/or distances placed near an 
eligible urban highway exit ramp or access road.
(17) Multiple crossroad interchange - An interchange in which one exit in a 
direction of travel from an eligible highway provides the only point of access 
for two or more crossroads; the center of a multiple crossroad interchange is 
the mid-point of the intersection of the centerline of the eligible highway and 
centerlines of the affected crossroads. 
(18) Primary motorist service - Gas, food, lodging, or camping available to the 
traveling public. 
(19) Ramp business logo - A reduced size separate sign panel of specified 
dimensions attached to a ramp and containing the commercial establishment name, 
symbol, brand, trademark, or combination. 
(20) Ramp sign - A supplemental sign with ramp business logos or the name of the 
major shopping area, directional arrows, and distances placed near an eligible 
highway or eligible urban highway exit ramp. 
(21) Retail shopping mall - Retail businesses located within a building, or a 
series of buildings, connected by a common continuous roof and walls, and 
enclosing and covering all inner pedestrian walkways and common areas. 
(22) Specific information logo sign - A rectangular supplemental sign panel 
imprinted with the words "GAS," "FOOD," "LODGING," or "CAMPING," or with a 
combination of those words, and the names (or business logos) of commercial 
establishments offering those services. 
(23) State - The State of Texas. 
(24) Texas MUTCD - Texas Manual on Uniform Traffic Control Devices for Streets 
and Highways, latest edition, issued by the Texas Department of Transportation. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802963
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: March 19, 1998
Proposal publication date: November 14, 1997
For further information, please call: (512) 463-8630

CHAPTER 27. Toll Projects
SUBCHAPTER D. Regional Tollway Authorities
43 TAC sec.sec.27.40-27.43
The Texas Department of Transportation adopts new sec.sec.27.40-27.43, 
concerning regional tollway authorities, with changes to the proposed text as 
published in the December 5, 1997, issue of the Texas Register (22 TexReg 
12027). 
EXPLANATION OF RULE. Transportation Code, Chapter 366, Subchapter B, authorizes 
the creation of a regional tollway authority when certain conditions are met 
subject to the approval of the Texas Transportation Commission (the 
"commission") unless one of the counties has a population of more than 1.5 
million. This new subchapter also authorizes the commission to approve the 
transfer of a segment of the free state highway system to a regional tollway 
authority when the commission determines that it is the most feasible and 
economical means to accomplish necessary expansion, improvements, or extensions 
to the state highway system. 
New sec.27.40 summarizes the relevant provisions of Senate Bill 370 enacted by 
the 75th Legislature, 1997, to describe that the purpose of new Subchapter D is 
to: set forth the conditions under which two or more counties may petition the 
commission for the creation of a regional tollway authority; describe the 
criteria and procedures by which the commission may consider and approve the 
creation of a regional tollway authority; and describe the conditions under 
which an existing segment of the free state highway system may be transferred to 
a regional tollway authority. 
New sec.27.41 provides the meaning of words and terms specific to this 
subchapter. 
New sec.27.42 describes the conditions under which a regional tollway authority 
may be created and the procedures used to apply for commission approval when 
required. 
To provide the information to the commission necessary for the commission to 
approve or disapprove the creation of the regional tollway authority, this 
section stipulates that the following information must be included in an 
application for creation: a resolution of support from each member county and 
each incorporated city and metropolitan planning organization within the 
jurisdiction of those counties; a description of how the existence of a regional 
tollway authority would expand the availability of funding for transportation 
projects; a description of how the first turnpike project proposed would be 
consistent with the Texas Transportation Plan and the Metropolitan 
Transportation Plan and State Implementation Plan, if applicable; and a study of 
the potential social, economic and environmental impacts of the project. This 
section provides that the executive director will submit the application to the 
commission for consideration once it has been determined that the required 
information has been provided. 
To ensure coordinated development of statewide transportation systems, to reduce 
the burdens and demands on the limited funds available to the commission, to 
improve the effectiveness and efficiency of the department, to ensure the 
support of all impacted local governments, and ensure the best interest of the 
state and the traveling public are sustained, this section provides that the 
commission may approve the creation of a regional tollway authority if it finds 
that such creation; will result in a project consistent with the Texas 
Transportation Plan that will reduce severe traffic congestion, improve air 
quality or address a safety issue, being completed at an earlier date than the 
department would otherwise attain these goals; will result in direct benefit to 
the state, local governments and the traveling public; will improve the 
efficiency of the state's transportation systems; will expand the availability 
of funding for transportation projects; is supported by each local government 
and metropolitan planning organization in the affected counties; and is in the 
best interest of the state. 
To ensure the best interests of the state and the traveling public are preserved 
and that the commission does not approve the creation of a regional tollway 
authority without fully considering the social, economic or environmental 
impacts of the first project proposed, this section allows the commission to 
consider these potential impacts when deciding whether to approve creation of 
the regional tollway authority. 
To provide for the health and safety of the traveling public, this section 
allows the commission to make its approval contingent upon the regional tollway 
authority complying with specific conditions as determined necessary by the 
commission. 
To ensure that the commission and the department are not held accountable for 
the actions of a regional tollway authority, this section stipulates that the 
department will not assume any liability for projects under the jurisdiction of 
a regional tollway authority. 
Section 27.42(b)(3)(A). The proposed rules stated that the application would 
include "an explanation of how the project will be consistent with the Statewide 
Transportation Plan and, if appropriate, with the metropolitan transportation 
plan developed by the appropriate metropolitan planning organization." To 
correct the name of the document and to clarify what the submission should 
include, the text now reads "an explanation of how the project will be 
consistent with the appropriate policies, strategies, and actions of the Texas 
Transportation Plan and, if appropriate, with the metropolitan transportation 
plan developed by the metropolitan planning organization." 
Section 27.42(b)(3)(B). The proposed rules stated that if the project is in a 
Clean Air Act nonattainment area the application would include "an explanation 
of how the project will be consistent with the Statewide Transportation 
Improvement Plan, with the conforming plan and the Transportation Improvement 
Program (TIP) for the metropolitan planning organization in which the project is 
located (if necessary), and with the State Implementation Plan." To avoid 
confusing applicants with the inclusion of several document names, the wording 
has been changed to "an explanation of how the project will be consistent with 
the transportation air quality goals outlined in the State Implementation Plan." 
Section 27.42(c)(2)(A). The proposed rules stated that the commission may grant 
approval for creation of a regional tollway authority if it finds that creation 
"will result in construction of a project included in the Texas Transportation 
Plan...." Since projects are not specifically included in this policy document 
and to clarify that the project must be consistent with this document, the 
wording has been revised to read "will result in construction of a project 
consistent with the appropriate policies, strategies, and actions of the Texas 
Transportation Plan...." 
New sec.27.43 summarizes the provisions of Transportation Code sec.366.035 
allowing the commission to transfer a segment of the free state highway system 
to a regional tollway authority upon approval of the governor and the affected 
regional tollway authority, if the commission finds that conversion to a 
turnpike project is the most feasible and economic means to accomplish necessary 
improvements. To provide the general public with information on the possibility 
that an existing free facility may be converted to a turnpike project and to 
provide an opportunity for the public to comment on the proposal, this section 
requires a public hearing to be conducted and notice of the hearing to be 
published in the Texas Register and appropriate newspapers in accordance with 43 
TAC sec.2.43 prior to any transfer. 
To recover the public investment in the existing free facility proposed for 
transfer to a regional tollway authority, this section: provides for 
reimbursement to the commission by the regional tollway authority for the costs 
expended on the highway segment to be transferred; provides that costs 
anticipated to be expended by the department in the current three year Statewide 
Transportation Improvement Program will be deducted from the cost to be 
reimbursed to the state; and allows the commission to waive this reimbursement 
if it finds that the transfer will result in substantial net benefits to the 
state, the department and the traveling public that exceed that cost. 
To ensure coordinated development of statewide transportation systems, to reduce 
the burdens and demands on the limited funds available to the commission, to 
improve the effectiveness and efficiency of the department, to ensure 
preservation of the public's investment in existing facilities, and ensure the 
best interests of the state and the traveling public are sustained, this section 
provides that the commission may transfer an existing free highway to a regional 
tollway authority provided that: the regional tollway authority agrees to accept 
the highway for maintenance and operation, the transfer will not adversely 
affect regional mobility, construction of necessary improvements can be 
accomplished efficiently, expeditiously and with minimum public investment, the 
department will review and approve the design of all proposed improvements, the 
regional tollway authority agrees to meet Federal and department requirements 
regarding environmental studies, and the regional tollway authority agrees that 
the department will not accept the facility back unless it is found to be in an 
acceptable state of repair and in compliance with current design standards used 
by the department. 
To comply with the provisions of Senate Bill 370, this section requires the 
commission to obtain approval from the governor prior to executing the transfer 
of the facility. 
To ensure that the commission and the department are not held accountable for 
the actions of a regional tollway authority, this section provides that 
coincident with the transfer, the department will remove the segment from the 
designated state highway system, and that the department will not assume any 
liability for projects under the jurisdiction of a regional tollway authority.
Section 27.43(d) is adopted with changes to clarify that the commission will 
review the traffic and revenue projections and may use its judgment in 
determining project transferability. 
RESPONSE TO COMMENTS. A public hearing was held on December 16, 1997 and no 
comments were received. 
STATUTORY AUTHORITY. The new sections are adopted under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation, and more specifically, Transportation Code, Chapter 366 which 
authorizes the department to carry out the provisions of the those laws 
governing the creation of regional tollway authorities. 

sec.27.40. Purpose. 
Transportation Code, Chapter 366, authorizes two or more counties, if one of the 
counties has a population of not less than 300,000 and the counties form a 
contiguous territory, to create a regional tollway authority for the purpose of 
the expansion and improvement of transportation facilities and systems in this 
state. Unless one of the counties has a population of 1.5 million or more, the 
creation of a regional tollway authority requires that the counties gain the 
approval of the Texas Transportation Commission. Chapter 366 also authorizes the 
Texas Transportation Commission to transfer a segment of the free state highway 
system to a regional tollway authority, to be owned, operated, and maintained as 
a turnpike project. This subchapter prescribes the policies and procedures 
governing commission approval of the creation of a regional tollway authority 
and the transfer of a segment of the free state highway system to a regional 
tollway authority. 

sec.27.41. Definitions. 
The following words and terms, when used in this subchapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
(1) Commission - The Texas Transportation Commission. 
(2) Commissioners Court - A county commissioners court.
(3) Department - The Texas Department of Transportation.
(4) Executive director - The chief administrative officer of the department. 
(5) Metropolitan Planning Organization - An organization designated by the 
governor to carry out the transportation process in prescribed urbanized areas 
as required by Title 23, United States Code, sec.134. 
(6) Turnpike project - A highway of any number of lanes, with or without grade 
separations, owned, operated or proposed by an existing or proposed regional 
tollway authority and any improvement, extension, or expansion to that highway. 

sec.27.42. Creation. 
(a) Purpose. Transportation Code, sec.366.031 authorizes two or more counties to 
create a regional tollway authority if: one of the counties has a population of 
not less than 300,000; the counties form a contiguous territory; and each 
county, acting through its respective commissioners court, passes an order to 
propose creation of a regional tollway authority. Unless one of the counties has 
a population of more than 1.5 million, sec.366.031 requires the approval of the 
commission for the creation of a regional tollway authority. This section 
prescribes the policies and procedures governing commission approval of the 
creation of a regional tollway authority. 
(b) Application. To secure commission approval under this section for the 
creation of a regional tollway authority, the commissioners courts shall jointly 
submit to the executive director, in a form prescribed by the department, a 
written request for approval. The request shall be accompanied by: 
(1) from each member county, each incorporated city within those counties, and 
each metropolitan planning organization with jurisdiction in those counties, a 
resolution of the entity's governing body indicating its support; 
(2) a description of how the existence of a regional tollway authority would 
expand the availability of funding for transportation projects or reduce direct 
state costs; 
(3) a description of the first turnpike project the regional tollway authority 
intends to undertake including, but not limited to: 
(A) an explanation of how the project will be consistent with the appropriate 
policies, strategies and actions of the Texas Transportation Plan and, if 
appropriate, with the metropolitan transportation plan developed by the 
metropolitan planning organization; 
(B) if the project is in a Clean Air Act nonattainment area, an explanation of 
how the project will be consistent with the transportation air quality goals 
outlined in the State Implementation Plan; and 
(C) a study of the potential social, economic, and environmental impacts of the 
initial project. 
(c) Approval. 
(1) The executive director will determine the sufficiency of the information 
provided, and if determined to be in compliance with subsection (b) of this 
section, will submit the application to the commission for approval.
(2) The commission may grant approval for creation of a regional tollway 
authority if it finds that creation: 
(A) will result in construction of a project consistent with the appropriate 
policies, strategies, and actions of the Texas Transportation Plan at an earlier 
date than the department would otherwise construct the project, and that project 
is needed to address a severe safety issue, substantially reduce severe traffic 
congestion, or substantially improve air quality in a nonattainment area more 
quickly than the department would otherwise attain these goals; 
(B) will result in direct benefit to the state, local governments, and the 
traveling public; 
(C) will improve the efficiency of the state's transportation systems and would 
neither duplicate nor conflict with the operations of the department, including 
the Texas Turnpike Authority Division of the department;
(D) will expand the availability of funding for transportation projects or 
reduce direct state costs; 
(E) is supported by each member county, each incorporated city within those 
counties, and each metropolitan planning organization with jurisdiction within 
those counties; and 
(F) is in the best interest of the state. 
(d) Social, environmental, and economic impact. In evaluating the proposed 
creation of a regional tollway authority, the commission will consider the 
potential social, environmental, and economic impacts of the initial project. 
(e) Contingencies. The commission may make its approval contingent upon the 
proposed regional tollway authority applicant complying with identified 
revisions to the proposed project or complying with other conditions determined 
by the commission as necessary to provide for the health or safety of the 
traveling public. 
(f) Order of approval or disapproval. Approval or disapproval of the creation of 
a regional tollway authority shall be by written order of the commission, and 
shall include the rationale, findings, and conclusions on which approval or 
disapproval is based. 
(g) Department responsibility. Approval of the creation of a regional tollway 
authority shall in no way constitute nor be construed as department assumption 
of any liability, responsibility, or duty for financing, design, construction, 
maintenance, or operation of any project under the jurisdiction of the regional 
tollway authority. 

sec.27.43. Transfer of Existing Public Highways.
(a) Purpose. Transportation Code, sec.366.035, provides that if the commission 
finds that the conversion of an existing segment of the free state highway 
system to a turnpike project is the most feasible and economic means to 
accomplish necessary expansion, improvements, or extensions to the state highway 
system, that segment may, on approval of the governor and the affected regional 
tollway authority, be transferred by order of the commission to the regional 
tollway authority. 
(b) Public involvement. Prior to transferring an existing segment of the state 
highway system to the regional tollway authority, the commission will conduct a 
public hearing for the purpose of receiving comments from interested persons 
concerning the proposed transfer. The notice of the public hearing will be 
published in the Texas Register at least two weeks prior to the hearing date 
and, in accordance with sec.2.43 of this title (relating to Highway Construction 
Projects - State Funds), one or more newspapers of general circulation in the 
counties in which the segment is located, and a newspaper, if any, published in 
the counties of the applicable regional tollway authority. The department will 
prepare a summary of the public hearing and all comments received in response to 
the hearing. 
(c) Reimbursement. The regional tollway authority will reimburse the commission 
for the cost of the transferred highway, unless the commission finds that the 
transfer will result in substantial net benefits to the state, the department, 
and the traveling public that exceed that cost. The cost shall include the total 
dollar amount expended by the department for the original construction of the 
transferred highway, including all costs associated with the preliminary 
engineering and design engineering for plans, specifications, and estimates, 
acquisition of necessary right of way, and actual construction of the highway 
and all necessary appurtenant facilities. Costs anticipated to be expended by 
the department, as evidenced by inclusion in the current three year Statewide 
Transportation Improvement Program, to expand, improve, or extend the highway 
shall be deducted from the costs to be reimbursed to the commission. 
(d) Criteria. The commission may, after a review of the regional tollway 
authority's traffic and revenue forecasts, transfer an existing highway to the 
regional tollway authority, provided that: 
(1) the regional tollway authority agrees, through binding written commitment, 
to accept the highway for maintenance and operation in a safe and efficient 
manner while protecting and preserving the state's investment in the facility; 
(2) the transfer will not adversely affect regional mobility;
(3) construction of the necessary expansion, improvement or extension can be 
accomplished efficiently, expeditiously, and with a minimum public investment; 
(4) the department will have design review and approval for all projects 
undertaken on the facility; 
(5) the regional tollway authority agrees to complete a study of the social, 
economic, and environmental impacts of all projects, consistent with the spirit 
and intent of the National Environmental Policy Act, Title 42, United States 
Code, sec.sec.4321 et seq., Title 23, United States Code, sec.109(h), and shall 
provide for public involvement and meet all other requirements of sec.sec.2.40-
2.51 of this title (relating to Environmental Review and Public Involvement for 
Transportation Projects); and 
(6) the regional tollway authority agrees that the department will not accept 
the facility back into the state highway system unless it is found to be in an 
acceptable state of repair and maintenance and meets all current design 
standards used by the department. 
(e) Transfer. Provided the commission finds that the conversion of a segment of 
the existing state highway system to a toll facility is the most feasible and 
economic means to accomplish necessary expansion, improvements, or extensions to 
the state highway system and that such conversion is in the best interest of the 
State of Texas, the commission will request approval from the governor to 
execute such a transfer. Coincident with the transfer, the commission will 
remove the segment of highway from the designated state highway system, and the 
regional tollway authority shall assume all liability, responsibility, and duty 
for financing, design, construction, maintenance and operation of the facility. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Filed with the Office of the Secretary of State on February 27, 1998.
TRD-9802964
Bob Jackson
Acting General Counsel
Texas Department of Transportation
Effective date: March 19, 1998
Proposal publication date: December 5, 1997
For further information, please call: (512) 463-8630