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 VIII. Texas Racing Commission CHAPTER 303. General Provisions SUBCHAPTER D. Texas Bred Incentive Programs Programs for Horses 16 TAC sec.303.96 The Texas Racing Commission adopts new sec.303. 96, concerning the rules for the Texas Bred Incentive Program for paint horses without changes to the proposed text as published in the October 11, 1996, issue of the type-name="italic">Texas Register (21 TexReg 9752). The new section is adopted to ensure the Texas Bred Incentive Program for paint horses will be administered fairly, efficiently, and effectively. The new section adopts by reference the rules of the Texas Paint Horse Breeders Association, the official horse breed registry in Texas for paint horses. No comments were received regarding adoption of the new section. The new section is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.6.08, which authorizes the commission to adopt rules relating to the accounting, audit, and distribution of all amounts set aside for the Texas-bred program. 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. Issued in Austin, Texas, on January 14, 1997. TRD-9700522 Paula C. Flowerday General Counsel Texas Racing Commission Effective date: February 4, 1997 Proposal publication date: October 11, 1996 For further information, please call: (512) 833-6699 CHAPTER 313. Officials and Rules of Horse Racing SUBCHAPTER B. Entries, Declarations, and Allowances Entries 16 TAC sec.313.103 The Texas Racing Commission adopts an amendment to sec.313.103, concerning eligibility requirements without changes to the proposed text as published in the November 15, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 11152). The amendment is adopted to increase the number of horses eligible to compete in pari-mutuel races, thereby encouraging full fields. The amendment modifies the requirements relating to official workouts for horses for eligibility to participate in a race. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks. 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. Issued in Austin, Texas, on January 14, 1997. TRD-9700521 Paula C. Flowerday General Counsel Texas Racing Commission Effective date: February 4, 1997 Proposal publication date: November 15, 1996 For further information, please call: (512) 833-6699 CHAPTER 321. Pari-mutual Wagering SUBCHAPTER C. Simulcast Wagering General Provisions 16 TAC sec.321.204 The Texas Racing Commission adopts an amendment to sec.321.204, concerning the approval of simulcasting without changes to the proposed text published in the November 15, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 11154). The amendment is adopted to ensure the Commission's regulatory approval procedures will be efficient and effective. The amendment eliminates the procedure for approving single simulcasts of national or historic races. The Commission has determined that this procedure is unnecessary as all racetracks that offer simulcast races do so as full cards, or programs of simulcasts, rather than as single races. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.11.01, which authorizes the commission to adopt rules regulating pari-mutuel wagering; and sec.11.011, which authorizes the commission to adopt rules regulating wagering on simulcast races. 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. Issued in Austin, Texas, on January 14, 1997. TRD-9700520 Paula C. Flowerday General Counsel Texas Racing Commission Effective date: February 4, 1997 Proposal publication date: November 15, 1996 For further information, please call: (512) 833-6699 Simulcasting at Horse Racetracks 16 TAC sec.sec.321.232-321.234 The Texas Racing Commission adopts amendments to sec.sec.321.232- 321.234, concerning simulcasting at horse racetracks without changes to the proposed text as published in the November 15, 1996, issue of the type- name="italic"> Texas Register (21 TexReg 11154). The amendments are adopted to ensure that simulcasting will serve as an appropriate supplement to the pari-mutuel wagering program offered at Texas horse racetracks, thereby encouraging live racing with all its ancillary benefits to agribusiness in this state. The amendments simplify the process of verifying the allocation of revenue from simulcasting by eliminating the need for numerous complex formulae. Oral comments were received from the Texas Thoroughbred Horsemen's Benevolent and Protective Association, two pari-mutuel horse racetracks, and the Texas Quarter Horse Association. The commenters from the pari-mutuel horse racetracks suggested that the allocations to purses be reduced to a three-year schedule, rather than a five-year schedule. The commenter from the Texas Thoroughbred Horsemen's Benevolent and Protective Association suggested that the formula included in the amendments was unnecessary and that the percentages to be allocated to purses from simulcasting revenue is better left to be negotiated between the various racetracks and the officially recognized horsemen's organization. The Commission disagrees with the comments to the extent that the formula affects the method of calculating the allocations to purses, not just the percentages allocated. Although the Commission believes that the administrative efficiency that will be gained from the new calculation method warrants adoption of the amendments as proposed, the Commission will consider amending the rules in the future to adjust the formula itself. The commenter from the Texas Quarter Horse Association opposed the amendments on the grounds that in the initial years the amendments are in effect, the percentage of revenue allocated to purses is reduced from current levels. The Commission disagrees with the comments on the grounds that if implemented as written the five-year plan results in an overall increase of money allocated to purses. The amendments are adopted under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.11.01, which authorizes the commission to adopt rules regulating pari-mutuel wagering; and sec.11.011, which authorizes the commission to adopt rules regulating wagering on simulcast races. 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. Issued in Austin, Texas, on January 14, 1997. TRD-9700519 Paula C. Flowerday General Counsel Texas Racing Commission Effective date: February 4, 1997 Proposal publication date: November 15, 1996 For further information, please call: (512) 833-6699 PART IX. Texas Lottery Commission CHAPTER 401. Administration of State Lottery Act 16 TAC sec.401.307 The Texas Lottery Commission adopts amendment sec.401.307, concerning "Pick 3" On-Line Game Rule, without changes to the proposed text as published in the October 29, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 10649). The amendment ensures consistency with current agency practice in that it clarifies that the executive director conducts "Pick 3" and announces each incentive or bonus program prior to its commencement. The Texas Lottery Commission received no comments concerning this rule. This amendment is adopted under Texas Government Code, sec.466.015 and sec.467.102 which provide the Texas Lottery Commission with the authority to adopt rules necessary to administer and enforce the State Lottery Act. The amended section affects Texas Government Code Chapter 466. 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. Issued in Austin, Texas, on January 15, 1997. TRD-9700567 Diane W. Morris Staff Attorney Texas Lottery Commission Effective date: February 5, 1997 Proposal publication date: October 29, 1996 For further information, please call: (512) 323-3791 16 TAC sec.401.362 The Texas Lottery Commission repeals existing rule sec.401.362, concerning Security Procedures, and adopts new rule sec.401.362, concerning Retailer's Financial Responsibility for Lottery Tickets Received, for Winning Lottery Tickets Paid and for Lottery-Related Property, without changes to the proposed text as published in the October 29, 1996, issue of the type-name="italic">Texas Register (21 TexReg 10649). The new rule clarifies each lottery retailer's fiduciary duty to properly handle, safeguard and account for lottery tickets received and winning tickets paid, and clarifies the retailer's financial responsibility for lottery-related property. The new rule places on each retailer the risk of loss for all tickets received, expressly limits the applicability of an administrative fee to circumstances of theft, loss and damage of unactivated tickets where the theft, loss or damage is reported within twenty-four hours of discovery and no winning ticket from the stolen, lost or damaged pack has been validated, authorizes an administrative fee where an activated pack of tickets has been lost or damaged by an Act of God and no winning ticket from such pack has been validated, makes each retailer financially responsible for lottery-related property placed at the retailer's location, requires each retailer who pays a winning ticket to physically render the ticket incapable of further use and makes such retailer liable to the Texas Lottery for all prizes subsequently paid on an inadequately defaced winning ticket. No comments were received regarding repeal of the existing rule. The existing rule is repealed and the new rule is adopted under authority of Texas Government Code, sec.466.015 and sec.467.102, which empowers the Lottery Commission to adopt all rules governing the establishment and operation of the lottery, sec.466.353(a), which holds a retailer as the purchaser of lottery tickets received, sec.466.352(b), which requires each retailer to maintain records adequate to establish the disposition of lottery tickets and sec.466.353(b) which settles upon each retailer the fiduciary obligation to preserve and account for all unsold tickets. 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. Issued in Austin, Texas, on January 15, 1997. TRD-9700569 Diane W. Morris Staff Attorney Texas Lottery Commission Effective date: February 5, 1997 Proposal publication date: October 29, 1996 For further information, please call: (512) 323-3791 The existing rule is repealed and the new rule is adopted under authority of Texas Government Code, sec.sec.466.015 and 467.102, which empowers the Lottery Commission to adopt all rules governing the establishment and operation of the lottery, sec.466.353(a), which holds a retailer as the purchaser of lottery tickets received, sec.466.352(b), which requires each retailer to maintain records adequate to establish the disposition of lottery tickets and sec.466.353(b) which settles upon each retailer the fiduciary obligation to preserve and account for all unsold tickets. sec.401.362. Retailer's Financial Responsibility for Lottery Tickets Received, for Winning Lottery Tickets Paid and for Lottery- Related Property. (a) Responsibility for Lottery Tickets Received. (1) Except as otherwise expressly provided by this subsection, each retailer shall bear the risk of loss for all lottery tickets received. Receipt of tickets by a retailer shall constitute a purchase of such tickets, and each retailer shall be liable to the Texas Lottery for the retail sales price of such tickets, less any applicable commission or credit. (2) Notwithstanding paragraph (1) of this subsection, a retailer may return, and receive credit for, full and complete packs of unactivated tickets in original condition. Nothing in this subsection waives the requirements of sec.401.365 of this title (relating to Merchandising) and sec.401.367 of this title (relating to Minimum Ticket Sales Criteria). (3) Notwithstanding paragraph (1) of this subsection, and where no winning ticket from such pack has been validated, the director may charge a retailer an administrative fee of $25.00 for each pack of unactivated tickets if: (A) the pack has been stolen and the retailer has within 24 hours of the discovery of the theft made a formal report of such theft to both: (i) appropriate local law enforcement authorities, and (ii) the Texas Lottery security division through the retailer hotline; (B) the pack has been lost and cannot be located by the retailer and the retailer has made a formal report of the loss to the Texas Lottery security division through the retailer hotline within 24 hours of discovery of the loss; or (C) damage to the pack has rendered the tickets unsaleable and the retailer has made a formal report of such damage to the Texas Lottery security division through the retailer hotline within 24 hours of discovery of the damage. (4) Notwithstanding paragraph (1) of this subsection, the director may charge a retailer an administrative fee of $25.00 for each activated pack of tickets that are lost or rendered unsaleable by an Act of God where the retailer has made a formal report of such loss or damage to the Texas Lottery security division through the retailer hotline within 24 hours of discovery of the damage. (b) Responsibility for Winning Lottery Tickets Paid. After a retailer has paid a prize on a winning ticket, that retailer shall completely deface such ticket and render it physically incapable of being subsequently presented as a winning ticket. A retailer who has failed to deface such a winning ticket and render it physically incapable of being subsequently presented as a winning ticket shall pay to the Texas Lottery the full amount of each subsequent prize that is paid on such ticket. (c) Responsibility for Lottery-Related Property. Each retailer shall be financially responsible to the Texas Lottery for all lottery-related property placed at the retailer's location. 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. Issued in Austin, Texas, on January 15, 1997. TRD-9700568 Diane W. Morris Staff Attorney Texas Lottery Commission Effective date: February 5, 1997 Proposal publication date: October 29, 1996 For further information, please call: (512) 323-3791 TITLE 31. NATURAL RESOURCES AND CONSERVATION PART II. Texas Parks and Wildlife Department CHAPTER 57. Fisheries Dredge Spoils 31 TAC sec.57.1, sec.57.2 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.57.1 and sec.57.2, concerning Dredge Spoils, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic">Texas Register (21 TexReg 7214). These sections represent a restatement of existing Parks and Wildlife Commission policy and are repealed as part of the Commission's regulations sunset process. The repeals remove redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeals. The repeals are adopted under Parks and Wildlife Code sec.sec.11.011 and 11.033. 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. Issued in Austin, Texas, on January 14, 1997. TRD-9700540 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Authorized Methods of Removing Sand and Gravel from Public Waters 31 TAC sec.57.11 The Texas Parks and Wildlife Department in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.57.11, concerning Authorized Methods of Removing Sand and Gravel From Public Waters, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic">Texas Register (21 TexReg 7215). This action represents repeal of redundant sections of the Texas Administrative Code. The section represented a restatement of existing Parks and Wildlife Commission policy and was repealed as part of the Commission's regulations sunset process. The department received no comments concerning the proposed repeal. The repeal is adopted under Parks and Wildlife Code sec.sec.86.001-86.019. Issued in Austin, Texas, on January 14, 1997. TRD-9700541 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Shell Dredging on the Texas Gulf Coast 31 TAC sec.sec.57.41-57.51 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.sec.57.41-57.51, concerning Shell Dredging on the Texas Gulf Coast, without change to the proposed text as published in the July 30, 1996, issue of the type- name="italic"> Texas Register (21 TexReg 7215). This action represents a streamlining and recodification of current regulations concerning shell dredging permits as part of the Parks and Wildlife Commission regulations sunset process. The repeals remove redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeals. The repeals are adopted under Parks and Wildlife Code sec.sec.86.001-86.019. Issued in Austin, Texas, on January 14, 1997. TRD-9700539 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Issuance of Marl, Sand, and Gravel Permits 31 TAC sec.sec.57.61-57.77 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.sec.57.61-57.77, concerning Issuance of Marl, Sand and Gravel Permits, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 7216). This action represents a streamlining and recodification of current regulations concerning marl, sand and gravel permits as part of the Parks and Wildlife Commission regulations sunset process. The repeals remove redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeals. The repeals are adopted under Parks and Wildlife Code sec.sec.86.001-86.019. Issued in Austin, Texas, on January 14, 1997. TRD-9700538 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Price of Sand, Shell, Gravel, and Marl 31 TAC sec.57.101 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.57.101, concerning Price of Sand, Shell, Gravel and Marl, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 7216). The repeal of this section was undertaken as part of the Commission Regulations Sunset process. Provisions related to price of sand, shell, gravel and marl have been recodified in new sec.69.121. The repeal removes redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeal. The repeal is adopted under Parks and Wildlife Code sec.86.012. Issued in Austin, Texas, on January 14, 1997. TRD-9700537 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Mitigation of Fish and Wildlife Resources as a Result of Damages Incurred From Water Development and Other Construction Projects 31 TAC sec.57.141 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.57.141, concerning Mitigation of Fish and Wildlife Resources as a Result of Damages Incurred From Water Development and Other Construction Projects, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 7217). The section represents a restatement of existing Parks and Wildlife Commission policy are repealed as part of the Commissions regulations sunset process. The repeal removes redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeal. The repeal is adopted under Parks and Wildlife Code sec.11.011 and 12.001. Issued in Austin, Texas, on January 14, 1997. TRD-9700536 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Department Comments on U.S. Army Corps of Engineers Permit Application Procedures 31 TAC sec.57.291 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.57.291, concerning Department Comments on U.S. Army Corps of Engineers Permit Applications Procedures, without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic">Texas Register (21 TexReg 7217). This section represents a restatement of existing Parks and Wildlife Commission policy and is repealed as part of the Commissions regulations sunset process. The repeal removes redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeal. The repeal is adopted under Parks and Wildlife Code sec.11.011 and 11.033. Issued in Austin, Texas, on January 14, 1997. TRD-9700535 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 CHAPTER 69. Resource Protection Expiration Provision 31 TAC sec.69.81 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts the repeal of sec.69.81, concerning Expiration Provision, without changes to the proposed text as published in the August 30, 1996, issue of the type-name="italic">Texas Register (21 TexReg 8213). Existing sec.69.81 was adopted by the Commission as a statement of intent relative to complete regulations sunset of 31 TAC, Chapter 69, Resource Protection. As a result of actions taken at the November 7 meeting, the regulations sunset of Chapter 69 was completed. These actions rendered sec.69.81 as redundant. The repeal removes redundant sections from the Texas Administrative Code. The department received no comments concerning the proposed repeal. The repeal is adopted under Government Code, sec.sec.2001.021-2001.052. Issued in Austin, Texas, on January 14, 1997. TRD-9700534 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: August 30, 1996 For further information, please call: (512) 389-4642 Issuance of Marl, Sand and Gravel Permits 31 TAC sec.sec.69.101-69.121 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts new sec.sec.69.101-69.121, concerning Issuance of Marl, Sand and Gravel Permits. Sections 69.101-69.114, 69.116-69.119 and 69.121 are adopted without changes to the proposed text as published in the July 30, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 7218) and will not be republished. Sections 69.115(c) and 69.120 are adopted with changes. Amendment to sec.65.115(c) corrected reference to 100 cubic yards to 1,000 cubic yards of material and amendment to sec.69.120(3) revised wording relative to public road projects of the Texas Department of Transportation. These sections will function by replacing the previous marl, sand and gravel permitting regulations formerly found at Chapter 57 of the Administrative Code. The new regulations will do the following: (1) Statutorily defined exemptions from permits will be enabled by the adoption of the findings of fact in section 69.120 of the rules. These exemptions include maintenance activities on public water supplies, maintenance activities by public utilities which do not result in the commercial sale of marl, sand or gravel; and public road projects of the Texas Department of Transportation. (2) Standard permits will be authorized with an expedited and simplified review process for types of projects which disturb marl, sand or gravel but which have been determined to have minimal adverse impact on fish and wildlife resources. Such projects are pipeline construction across state-owned streambeds, pipeline maintenance across state-owned streambeds, and other activities which do not disturb more than 1,000 cubic yards of sedimentary material. (3) Individual permits will be retained for larger or unique projects which do not qualify for exemptions or general permits. These activities include, but are not limited to commercial dredging operations for the sale of marl, sand or gravel. (4) Public notice of application will be required for general and individual permits. (5) Opportunity for hearing will be provided for individual permit applications. (6) Best Management Practices are defined as a condition of General permits. (7) An environmental impact review will be required for all individual permits at sites which have not been permitted for the past five years unless an approved impact review has been completed for that site within the past five years. The department received four comments from members of the potentially affected and regulated community supporting the proposed rules. The department received one comment from the Texas Department of Transportation supporting the rules but commenting on a section of the rules which limited the applicablity of an exemption to less than what appeared to be statutprily allowed. The department agreed with the comment and incorporated the change requested. Parks and Wildlife Code Chapter 86 grants authority to the commission and department to regulate the taking and disturbance of marl, sand and gravel from state-owned streambeds. This authority includes the power to permit the taking or disturbance by rule and by permit; the power to grant administrative hearings to persons protesting such permit actions; the power to sell the marl, sand and gravel taken pursuant to permit; the power to establish, within defined limits; the conditions under which such permits may be issued, and the power to enforce, criminally or civilly, violations of the statute, rules and permits. The Department has evaluated the rules adopted in accordance with the Private Real property Rights Preservation Act, Chapter 2007, of the Government Code, and determined that no private property is directly affected by the adoption or implementation of these rules and that there is no takings impact which fall within the purview of Section 2007.002(5) of that Act. The new rules are adopted under Parks and Wildlife Code sec.sec.86.001-86.019. sec.69.115. General Permits. (a) Under the terms of a general permit, the executive director may authorize the following activities: (1) pipeline construction; (2) pipeline maintenance; and (3) other activities that necessitate the disturbance or removal of less than 1,000 cubic yards of sedimentary material. (b) Activities which do not qualify for a general permit may only be authorized by an individual permit issued pursuant to sec.69.105 of this title (relating to Application Procedure: Individual Permit). (c) If the executive director finds that the disturbance or removal of sedimentary material of less than 1,000 cubic yards is likely to adversely affect any natural resource listed in sec.86.004 of the Parks and Wildlife Code in the manner prohibited by the Code, the director may require an individual permit issued pursuant to sec.69.105 of this title (Application Procedure: Individual Permit). sec.69.120. Exemptions. The commission finds that the state will not be deprived of significant revenue and there will be no significant adverse effects on navigation, the coastal sediment budget, riverine hydrology, erosion, or fish and wildlife resources or their habitat and following activities therefor exempt from any permit requirement of the department or payment to the department for sedimentary material removed from the public waters of this state: (1) projects to restore or maintain the storage capacity of existing public water supplies; (2) maintenance projects carried out by public utilities for noncommercial purposes; and (3) public road projects of the Texas Department of Transportation. Issued in Austin, Texas, on January 14, 1997. TRD-9700533 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 Shell Dredging on the Texas Gulf Coast 31 TAC sec.sec.69.201-69.209 The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, November 7, 1996, adopts new sec.sec.69.201-69.209, concerning Shell Dredging on the Texas Gulf Coast, without changes to the proposed text as published in the July 30, 1996, issue of the type- name="italic"> Texas Register (21 TexReg 7223). The new rules represent a recodification and streamlining of existing rules in accordance with the Parks and Wildlife Commission regulations sunset process. This action represents a recodification with updated internal citations and references of current regulations concerning shell dredging permits. These sections will function by replacing the previous shell dredging permitting regulations formerly found at Chapter 57 of the Administrative Code. The new regulations make no substantive change to existing regulations. The department did not receive comments from the general public or regulated community concerning these rules. Parks and Wildlife Code Chapter 86 grants authority to the commission and department to regulate the taking and disturbance of shell and mudshell within the tidewater limits of the state and on islands within those limits. This authority includes the power to permit the taking or disturbance by rule and by permit; the power to grant administrative hearings to persons protesting such permit actions; the power to sell shell and mudshell taken pursuant to permit; the power to establish, within defined limits; the conditions under which such permits may be issued, and the power to enforce, criminally or civilly, violations of the statute, rules and permits. The Department has evaluated the rules adopted in accordance with the Private Real property Rights Preservation Act,Chapter 2007, of the Government Code, and determined that no private property is directly affected by the adoption or implementation of these rules and that there is no takings impact which fall within the purview of Section 2007.002(5) of that Act. The new rules are adopted under Parks and Wildlife Code sec.sec.86.001-86.019. Issued in Austin, Texas, on January 14, 1997. TRD-9700542 Bill Harvey Regulatory Coordinator Texas Parks and Wildlife Department Effective date: February 4, 1997 Proposal publication date: July 30, 1996 For further information, please call: (512) 389-4642 TITLE 34. PUBLIC FINANCE PART I. Comptroller of Public Accounts CHAPTER 9.Property Tax Admininstration SUBCHAPTER A.Practice and Procedure 34 TAC sec.sec.9.1-9.14 The Comptroller of Public Accounts adopts the repeal of sec.9.1-9.14, concerning intent and scope of property value study protest rules, construction of property value study protest rules, definitions, general provisions, who may protest, filing of a protest, additional general provisions, scheduling a protest hearing, hearing examiner's powers, conduct of hearing, proposed decision, exceptions to proposed decision, final decision, certification of changes to preliminary findings, without changes to the proposed text as published in the November 12, 1996, issue of the type-name="italic"> Texas Register (21 TexReg 11088). The sections are being repealed in order to combine the information in these sections into new section 34 TAC sec.9.109. The new section will make it easier for the persons affected by these sections to read and interpret them. No comments were received regarding adoption of the repeals. The repeals are adopted under the Government Code, sec.403.303(e), which provides the comptroller with the authority to adopt rules governing protests of preliminary findings of taxable value. The repeals implement Government Code, sec.403.302 and sec.403.303, and the Tax Code, sec.5.10. 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. Issued in Austin, Texas, on January 10, 1997. TRD-9700446 Martin Cherry Chief, General Law Comptroller of Public Accounts Effective date: January 31, 1997 Proposal publication date: November 12, 1996 For further information, please call: (512) 463-3699 34 TAC sec.9.109 The Comptroller of Public Accounts adopts new sec.9.109 concerning procedures for protesting preliminary findings of taxable value, with changes to the proposed text as published in the November 12, 1996, issue of the type-name="italic">Texas Register (21 TexReg 11089). This new section replaces 34 TAC sec.9.1 through sec.9.14, concerning the same subject matters, which are being repealed in order that they can be adopted under Title 34, Part I, Chapter 9, Subchapter A. The new section is being adopted to make the rules easier to use, to conform to current agency practice, and to make changes in appeal procedures. The new section sets forth how the Comptroller of Public Accounts shall provide procedures for protesting preliminary findings of taxable value as provided by the Government Code, sec.403.302(f) or (g) and sec.403.303, and the Tax Code, sec.5.10, in the manner required by law. Comments were received from an attorney suggesting the deletion of the five-day advance submission requirement for requesting an extension of time to file a petition in subsection (d)(2) of this section and for requesting the postponement of a hearing in subsection (h)(4) of this section. The comptroller is adding language to both subsections to allow a waiver of the five-day requirement on a case by case basis for good cause, such as serious illness or other circumstances not within the petitioner's control. This attorney also commented that the rule should not make admissions, proposals, and offers made in the compromise of disputed issues, inadmissible in a protest hearing. The comptroller did not make this change because this provision is commonly used in administrative hearings to promote the settlement process. The attorney and two school districts commented that the comptroller should establish a discovery process for use in its property value study protest hearings. The comptroller did not make the requested change because the property value study protest process takes place within a very short time frame. The protest period starts February 1 of each year and must end before July 1 of the same year. This time frame is too short to provide for a discovery process. The comptroller routinely provides summary evidence supporting the study to the independent school districts (ISDs) and county appraisal districts (CADs) on or before February 1. In addition, the comptroller routinely makes evidence available for inspection at a preliminary resolution conference. The attorney also commented that the proposed rule should not require the protest petition to specify requested changes and state how the changes would improve the property value study's accuracy because the statute does not require this degree of specificity. The law governing property value study protest hearings charges the comptroller with the responsibility to adopt procedural rules governing the conduct of protest hearings, "the rules shall provide the requirements for submitting a petition initiating a protest" (Government Code, sec.403.303(c)). Because the law gives the comptroller the authority to specify the contents of a protest petition and the comptroller has the burden to prove the accuracy of the findings (Government Code, sec.403.303(b)), it is reasonable to require the petitioner to state specifically how the requested changes will make the study findings more accurate. The comptroller did not make the suggested changes. An attorney and two independent school districts commented that changes to the number of days to file an exception from working days to calendar days in subsection (k)(1) of this section would be adverse to the school districts and suggested changing the rule to provide more time. To accommodate the independent school districts and county appraisal districts and still certify the changes to the preliminary findings to the commissioner of education in a timely manner, the comptroller is changing subsection (j)(2) of this section to provide that the comptroller will either fax the decision to the petitioner's agent or have it delivered to the agent by overnight mail. This change will insure that the petitioner's time to respond to the decision is not shortened by postal service delays, while also insuring that the comptroller is able to certify its final findings to the commissioner of education in a timely manner. Two independent school districts commented that the comptroller should permit a school district to protest the denial of an audit request. The comptroller declines to make the suggested change because the law gives the comptroller discretion to accept or deny an audit request. The section as proposed retains the discretion allowed the comptroller by law. The new section is adopted under the Government Code, sec.403.303(e), which provides the comptroller the authority to adopt rules governing protests of preliminary findings of taxable value. The new section implements the Government Code, sec.403.302 and sec.403.303, and the Tax Code, sec.5.10. sec.9.109. Procedures for Protesting Preliminary Findings of Taxable Value. (a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Agent - The individual that the petitioner is required to designate in the petition to perform the following activities on behalf of the petitioner: (A) receive and act on all notices, orders, decisions, exceptions, replies to exceptions, and any other communications regarding the petitioner's protest; (B) resolve any matter raised in petitioner's petition; (C) argue and present evidence timely submitted with the petition at petitioner's protest hearing, unless agent designates in writing another individual to argue and present timely submitted evidence; and (D) any other action required of petitioner. (2) Appraisal district measures - The comptroller's measures of the degree of uniformity and median level of appraisal of an appraisal district made under the Tax Code, sec.5.10. (3) Decision. (A) Proposed decision - An official finding made by the hearing examiner concerning a protest of preliminary findings of taxable value, subject to filing of exceptions by any party. (B) Final decision - An official finding made by the hearing examiner and signed by the Deputy Comptroller if a written exception is filed by the petitioner. A proposed decision may also become final without the Deputy Comptroller's signature, if no exceptions to that proposed decision are timely filed. (4) District - A school district. District does not include an appraisal district. (5) Person - Any individual, partnership, corporation, association, governmental subdivision, or public or private organization. (6) Petition - The document and supporting evidence filed by petitioner indicating disagreement with the comptroller's preliminary findings or appraisal district measures. (7) Petitioner - A school superintendent, chief appraiser or eligible property owner who submits a petition seeking redetermination of the comptroller's preliminary findings or appraisal district measures. (8) Preliminary findings - The comptroller's findings of district property value delivered to a district and certified to the commissioner of education under the Government Code, sec.403.302(f) or (g). (9) Protest - A disagreement by a district, property owner, or appraisal district with the comptroller's preliminary findings or appraisal district measures initiated by timely filing the petition required by subsection (f) of this section. (10) Ratio study - A study designed to evaluate appraisal performance through a comparison of appraised values made for tax purposes with independent estimates of market value based either on sales prices or independent appraisals. (b) Intent and scope of protest rule. The protest rule is intended to provide a petitioner with a clear process for resolving a disagreement with the Comptroller of Public Account's preliminary findings of property value certified to the commissioner of education pursuant to the Government Code, sec.403.302(f) or (g), and the measures of degree of uniformity and the median level of appraisal made pursuant to the Tax Code, sec.5.10. This rule governs all aspects of a preliminary findings or appraisal district measures protest. (c) Construction of protest rule. Rules concerning protests of the preliminary findings of property value certified to the commissioner of education pursuant to the Government Code, sec.403.302(f) or (g) and the measures of degree of uniformity and the median level of appraisals made pursuant to the Tax Code, sec.5.10, will be reasonably construed in the rule's total context and in a manner providing a fair decision for every protest. Unless the context clearly indicates otherwise, in this rule, the term "petitioner" includes petitioner's agent. (d) General provisions. (1) All petitions and other documents related to a protest of the comptroller's preliminary findings or appraisal district measures shall be filed with the Comptroller of Public Accounts of the State of Texas, Property Tax Division manager. No document or petition is filed until actually received. However, any petition including supporting evidence is timely filed if it is sent to the Property Tax Division manager by: (A) first-class United States mail in a properly addressed and stamped envelope or wrapper, and the envelope or wrapper exhibits a legible postmark affixed by the United States Postal Service showing that the petition including supporting evidence was mailed on or before the last day for filing; or (B) an express mail corporation in a properly addressed envelope or wrapper, and the envelope or wrapper exhibits a legible date showing that the petition including supporting evidence was delivered to the express mail corporation for delivery on or before the last day for filing; or (C) fax received on or before the last day for filing if the petition including supporting evidence, is under 10 pages in content, the original is mailed within 3 days of the fax and all procedures for submitting a protest have been followed. (2) An extension of time shall be requested in writing five days in advance of the original deadline for which the extension is requested. No more than one extension during an appeals period may be granted for each petitioner. An extension may not extend the deadline for more than ten days. An extension shall be granted only by the hearing examiner for good cause shown, and if the reason for the extension is not the petitioner's neglect, indifference, or lack of diligence. Good cause does not include a claim that the time periods established in this rule are too short to meet the deadline. If requested in writing by the petitioner and for good cause shown, the hearing examiner may waive the requirement that the request for the extension be made five days in advance of the deadline. (3) In computing a period of time, the period begins on the day after the act or event in question and ends on the last day of the time period. If the last day of the time period is a Saturday, Sunday, or state or federal legal holiday, the period of time runs until the end of the first day which is neither a Saturday, Sunday, or state or federal legal holiday. (4) The protest hearing will be conducted by a hearing examiner. (5) Before a scheduled protest hearing the comptroller or a petitioner may request a preliminary conference to clarify the issues or resolve the protest. If the request is accepted, the conference shall be scheduled during business hours at the offices of the comptroller or at a time mutually agreeable to the comptroller and the petitioner. Admissions, proposals, or offers made in the compromise of disputed issues in a preliminary conference may not be admitted in a hearing. A hearing examiner may not attend a preliminary conference. (6) An error in the comptroller's preliminary findings caused by an error in a district's annual report of property value or by a change in a district's certified tax roll may be corrected by timely filing a petition and otherwise complying with the requirements of this section. (7) A district shall send notice of its protest to each appraisal district that appraises property for the district. An appraisal district shall send notice of its protest to each district that participates in the appraisal district. The district's or appraisal district's petition shall contain a certification that a copy of its petition was delivered as required by this subsection. (8) A property owner may contact the Property Tax Division manager for information concerning the districts or appraisal districts that have filed a petition as required by this section. A district or appraisal district may contact the Property Tax Division manager for information concerning property owners that have filed a petition as required by this section. (9) During the conduct of a protest hearing, a petitioner or a comptroller employee may present evidence not submitted prior to the deadline for filing the protest petition if the evidence is requested and obtained by a comptroller employee pursuant to subsection (i)(5) of this section, after the deadline to file a petition has passed and before the date set for the petitioner's protest hearing. (10) A comptroller employee may present evidence, gathered during the conduct of the property value study or during the comptroller's review of the petitioner's protest, during a hearing on the petitioner's protest. (11) At any time before the date final changes in the preliminary findings are certified to the commissioner of education, the comptroller may certify to the commissioner of education amended preliminary findings. If the comptroller certifies amended preliminary findings that are adverse to the district, the appraisal district's, property owner's, and district's time to protest begins to run on the date the amended preliminary findings are certified. An amended preliminary finding is made when the comptroller's finding of property value for a district is delivered to a district and certified to the commissioner of education between the date preliminary findings for the district are originally certified and final certification of changes in preliminary findings. (12) A petition shall show the petitioner's name and address, designate the petitioner's agent, and list for each category of property the grounds for objection to the preliminary findings for that category. The grounds for objection shall list by category specific changes that the petitioner alleges would improve the accuracy of the taxable value finding or appraisal district measures, and shall provide the reason that each change will make the findings more accurate. A petition that does not clearly specify by category of property the specific changes that petitioner alleges would improve the accuracy of the taxable finding or appraisal district measures does not adequately specify the grounds for objection as required by Government Code, sec.403.303(a). The petition shall include the following information: (A) all documentary evidence, placed in order by category, necessary to support the factual and legal contentions made in the petition; and (B) the value petitioner claims is correct. (13) A petition must be signed by: (A) the superintendent of the district if it is a petition filed by a school district; or (B) the property owner or the property owner's agent if it is a petition filed by a property owner; or (C) the chief appraiser of the appraisal district, if it is a petition filed by an appraisal district. (14) The petition must contain a statement by the person signing the petition that, to the best of the person's knowledge, the evidence contained in the petition is true and correct. (15) In a protest of the comptroller's preliminary findings, the comptroller has the burden of proving by a preponderance of the evidence that the comptroller used appraisal, statistical compilation, and analysis techniques, generally accepted as an appropriate method for the conduct of a ratio study by organizations setting recognized standards for the conduct of a ratio study, to reach a correct value for a district included in the property value study. (16) The comptroller may, on the comptroller's own motion, grant an extension of time for the limited purpose of correcting technical errors or omissions in a timely filed protest petition. Petitioner's failure to submit grounds for objection or all documentary evidence necessary to support the factual and legal contentions made in the petition is not a technical error or omission. (e) Who may protest. (1) A district may protest the preliminary findings of its taxable value. (2) A district may protest the preliminary findings of taxable value of an audit within the district. (3) An owner of property included in a sample used by the comptroller to determine the taxable value of a category of property in a district may protest the comptroller's preliminary findings of value if the total ad valorem tax liability on the owner's properties included in the category sample for the district is $100,000 or more. (4) An appraisal district may protest the comptroller's measures, made under the Tax Code, sec.5.10, of the level and uniformity of property appraisals within the district. (5) A protest filed by a property owner or an appraisal district will not be considered for any purposes to be a protest filed by a district. (f) Filing of a protest. A petition for a protest of the preliminary findings of taxable value or measures of degree of uniformity or median level of appraisal must be filed within 40 days after the date the comptroller certifies preliminary findings of district taxable value to the commissioner of education. A petition for a protest of the preliminary findings of taxable value of an audit must be filed within 40 days of the date the district received the preliminary findings of taxable value. Except as provided by subsection (d)(10) or (i)(5) of this section, no additional evidence may be submitted after the deadline for filing the petition. (g) Scheduling a protest hearing. The comptroller shall deliver notice of the date, time, and place fixed for a hearing to each petitioner. The notice must be delivered not later than ten days before the date of the hearing. (h) Hearing examiner's powers. (1) The hearing examiner shall conduct a protest hearing in a manner insuring fairness, the reliability of evidence, and the timely completion of the hearing. The hearing examiner shall have the authority necessary to receive and consider all evidence, propose decisions, consider exceptions and replies to exceptions, and amend a proposed decision. The hearing examiner's authority includes, but is not limited to, the following: (A) establish the comptroller's jurisdiction concerning the protest, including whether a timely protest has been filed or whether an extension of time should be granted; (B) set hearing dates; (C) rule on motions and the admissibility of evidence; (D) designate parties and establish the order of presentation of evidence; (E) consolidate related protests; (F) conduct a single hearing that provides for: (i) participation by the affected district(s), appraisal district, and any property owner that has filed a valid and timely petition, if the hearing concerns preliminary findings of taxable value or the degree of uniformity and median level of appraisal; or (ii) participation by the affected district(s) and the commissioner of education, if the hearing concerns the preliminary findings of an audit of a district's taxable property value; (G) conduct hearings in an orderly manner; (H) provide for hearings by written submission; (I) administer oaths to all persons presenting testimony; (J) examine witnesses and comment on the evidence; (K) insure that evidence, argument, and testimony are introduced and presented expeditiously; (L) refuse to hear arguments that are repetitious, not confined to matters raised in the petition, not related to the evidence or that constitute mere personal criticism; (M) accept and note any petitioner's waiver of any right granted by this rule; (N) limit each hearing to one hour for presentation of evidence and argument or extend the one-hour time limit in the interest of a full and fair hearing; and (O) exercise any other powers necessary or convenient to carry out the hearing examiner's responsibilities and to insure timely certification of changes in preliminary findings to the commissioner of education. (2) The hearing examiner may take official notice of any matter that trial judges may judicially notice and of facts within the hearing examiner's personal knowledge or specialized experience. Petitioners in a protest in which official notice is taken shall have an opportunity to contest the matter. (3) The hearing examiner may entertain motions for dismissal at any time for any of the following reasons: (A) failure to prosecute; (B) unnecessary duplication of proceedings or res judicata; (C) withdrawal of protest; (D) moot questions or obsolete petition; (E) failure to certify that notice of protest was filed as required by subsection (d)(1) of this section or failure to actually file notice as required by subsection (d)(1) of this section; or (F) the result of an appraisal district protest is adverse to a district. (4) The hearing examiner may grant a request to postpone a protest hearing if good cause is shown and doing so would not prevent timely certification of changes in the preliminary findings to the commissioner of education. A request to postpone must be in writing, show good cause for the postponement, and be delivered five days before the date the protest hearing is scheduled to begin. Good cause does not include a claim that the time periods established in this rule are too short to meet the deadline. If requested in writing by the petitioner and for good cause shown, the hearing examiner may waive the requirement that the request for postponement be made five days in advance of the deadline. (5) The hearing examiner shall determine the admissibility of the evidence. Any party may object to the admission of evidence and the objection will be ruled on and noted on the record. The hearing examiner may exclude irrelevant, immaterial, or unduly repetitious evidence. The hearing examiner may receive any part of the evidence in writing. (6) The hearing examiner in a protest may not communicate outside a protest hearing, directly or indirectly, with any agency, person, petitioner or petitioner's agent regarding any issue of fact or law relating to the protest unless all petitioners in the protest have notice and opportunity to participate, except that the hearing examiner may communicate ex parte with comptroller employees to use the comptroller's special skills to evaluate the evidence if the employee will not participate in the protest hearing, has not been involved in preparing for the hearing, and has not been involved in conducting the particular property value study under protest. (i) Conduct of hearing. (1) The hearing examiner shall convene a hearing for a protest. (2) All protests heard by the hearing examiner shall be recorded on audio tape. A petitioner will be provided a copy of the recording after a written request and payment of a cost-based fee. A petitioner may at any time make arrangements for and bear the cost of having a hearing recorded and transcribed by a court reporter, provided the comptroller's staff timely receives a copy of the transcript. (3) All proceedings are open to the public and are held in Austin, unless the hearing examiner designates another place for the hearing. The hearing examiner may close a hearing, on the hearing examiner's own motion or on the motion of any party, if confidential information may be disclosed during the hearing. (4) A petitioner may designate in writing one or more individuals to present argument and evidence timely submitted with the petition. (5) If a comptroller employee has requested in writing information, materials, sales, or documentary evidence of any type from the appraisal district, property owner, or district and any of these materials are not provided to the comptroller's employee within ten working days of the request, the materials that were not provided shall be inadmissible during the conduct of a protest hearing for a petitioner who failed to provide the materials. The comptroller may require that information requests be supplemented. (6) Each petitioner may present argument on any matter raised by the petition. Each petitioner may offer oral argument at the hearing. Argument shall be confined to the evidence and to arguments of other parties. Admissions, proposals, or offers made in the compromise of disputed issues in a preliminary conference may not be admitted in a hearing. (7) No more than one representative for each petitioner or aligned group of petitioners shall be heard in the protest hearing on any petition except on leave of the hearing examiner. An agent may designate, and the hearing examiner may approve, a reasonable number of individuals to present argument and timely submitted evidence. Nothing in this subsection limits the presentation of evidence through witness testimony. (8) The hearing examiner shall establish the order of proceeding, and is responsible for closing the record. (j) Proposed decision. (1) The hearing examiner, hearing examiner's designee, or a comptroller employee who has read the record shall prepare a proposed decision, which shall include a statement of the reasons for the proposed decision. (2) The hearing examiner shall serve the proposed decision on the petitioner by facsimile machine, if available, or by using an overnight mail delivery service. (k) Exceptions to proposed decision. (1) Unless the petitioner has waived the right of review of the proposed decision, any party adversely affected by the proposal may, within ten days after the date the proposed decision is sent by facsimile machine or delivered to an overnight delivery service, file exceptions by delivering the original documents to the hearing examiner. Replies to exceptions shall be filed in the same manner within 20 days after the proposal for decision is sent by facsimile machine or delivered to an overnight delivery service. Copies of all exceptions and replies shall be served promptly on the examiner and on all other parties in the protest with certification of service furnished to the hearing examiner. Failure to provide copies to all other parties in the protest and to the hearing examiner with certification of service is grounds for withholding consideration of the written exceptions. (2) After consideration of the exceptions and replies, the hearing examiner may issue an amended decision without again serving the decision on the petitioner. (l) Final decision. (1) A proposed decision is final ten days after it is delivered to the parties to the protest, unless exceptions to the proposed decision are filed, in which case the decision becomes final, in either its original or amended form, on the date signed by the Deputy Comptroller. (2) A final decision ordering changes to preliminary findings made as a result of a school district's protest will change the preliminary findings for the appraisal district in which the school district is located. (3) A final decision ordering changes to preliminary findings made as a result of an appraisal district's protest will change the preliminary findings for the school districts participating in the appraisal district. (4) A final decision ordering changes to preliminary values made as a result of a property owner's or district's protest will change the measures for an appraisal district. (5) A final decision ordering changes to preliminary findings made as a result of a property owner's protest will change the preliminary findings for the school district where the property which is the subject of the protest is located. A property owner's preliminary value may be changed by a protest brought by a school district or appraisal district. (6) A decision concerning a protest of preliminary findings of taxable value of an audit must be decided by written order within 120 days of the date the school district received the preliminary findings. (7) The hearing examiner shall deliver written notice of the final decision to each protesting petitioner. (m) Certification of changes to preliminary findings. Unless the comptroller determines that circumstances require otherwise, the comptroller shall certify to the commissioner of education all changes to the preliminary findings on or before July 1 of the year following the year of the study. 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. Issued in Austin, Texas, on January 10, 1997. TRD-9700447 Martin Cherry Chief, General Law Comptroller of Public Accounts Effective date: January 31, 1997 Proposal publication date: November 12, 1996 For further information, please call: (512) 463-3699