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 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 19.Quarantines
The Texas Department of Agriculture (the department) adopts an amendment to 
sec.19.141 and the repeal of sec.sec.19.142 and 19.143, concerning the 
department's Karnal bunt quarantine, without changes to the proposed text as 
published in the December 17, 1996, issue of the Texas Register (21 TexReg 
12041). The amendment and repeal are adopted without changes and will not be 
republished. 
The amendment and repeal are adopted to parallel federal regulations for a 
Karnal bunt quarantine as adopted by the United States Department of 
Agriculture. The department is deleting current language in sec.19.141 relating 
to quarantined areas and replacing it with language to adopt the federal Karnal 
bunt quarantine by reference; repealing sec.19.142 relating to quarantined 
articles; and repealing sec.19.143 relating to restrictions. 
No comments were received regarding adoption of the amendment and repeal.

SUBCHAPTER N.Karnal Bunt Quarantine
4 TAC sec.19.141
The amendment is adopted under the Texas Agriculture Code (the Code), 
sec.71.002, which provides the Texas Department of Agriculture with the 
authority to establish quarantines against diseases and pests; and the Code, 
sec.71.007, which authorizes the department to adopt rules necessary for the 
protection of agricultural and horticultural interests.
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 23, 1997.
TRD-9701058
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: February 13, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 463-7583

4 TAC sec.19.142, sec.19.143
The repeals are adopted under the Texas Agriculture Code (the Code), sec.71.002, 
which provides the Texas Department of Agriculture with the authority to 
establish quarantines against diseases and pests; and the Code, sec.71.007, 
which authorizes the department to adopt rules necessary for the protection of 
agricultural and horticultural interests.
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 23, 1997.
TRD-9701059
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: February 13, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 463-7583

TITLE 7. BANKING AND SECURITIES
PART II. Texas Department of Banking
CHAPTER 15.Corporate Activities
SUBCHAPTER A.Fees and Other Provisions of General Applicability 
7 TAC sec.15.4
The Finance Commission of Texas (the commission) adopts the amendment to 
sec.15.4, concerning required information and abandoned filings, without changes 
to the text as proposed in the November 12, 1996, issue of the Texas Register 
(21 TexReg 11029). 
Only subsection (d) of this section has been amended. The amendment corrects an 
obvious typographical reference by deleting an erroneous reference to subsection 
(b) of this section and substituting the correct reference to subsection (c). 
Until this amendment, subsection (d) provided that the banking commissioner (the 
commissioner) may determine a filing to be abandoned if certain information is 
not filed within time frames specified in "subsection (b)." In fact, it is 
subsection (c) that sets out applicable time limits for providing this 
information; subsection (b) pertains solely to notice given to an applicant 
regarding the completeness or deficiencies of a filing. 
As a result of this amendment, the law pertaining to abandoned filings under The 
Texas Banking Act, Texas Civil Statutes, Articles 342-1.001 et seq (the Act) 
will be accurate and reliable. 
The agency received no comments on the proposal. 
The amendment is adopted pursuant to the Texas Banking Act, sec.1.012(a), which 
provides that the commission may adopt rules "to accomplish the purposes of this 
Act," including rules that "implement and clarify" the Act. 
As required by the Texas Banking Act, sec.1.012(b), the commission considered 
the need to promote a stable banking environment, provide the public with 
convenient, safe, and competitive banking services, preserve and promote the 
competitive parity of state banks with national banks and other depository 
institutions in this state consistent with the safety and soundness of state 
banks and the state bank system, and allow for economic development within this 
state. 
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 24, 1997.
TRD-9701118
Everette D. Jobe
General Counsel
Texas Department of Banking
Effective date: February 14, 1997
Proposal publication date: November 12, 1996
For further information, please call: (512) 475-1300

7 TAC sec.15.8
The Finance Commission (the commission) adopts new sec.15.8, concerning the 
filing of certain corporate forms under the Texas Banking Act (Texas Civil 
Statutes, Article 342-1.001 et seq), the Texas Business Corporation Act, and the 
Texas Miscellaneous Corporation Laws Act (Texas Civil Statutes, Article 1302-
1.01 et seq), with one nonsubstantive change to the text of the proposal 
published in the November 12, 1996, issue of the Texas Register (21 TexReg 
11030). 
New sec.15.8 specifies which corporate forms are to be filed with the banking 
commissioner and with the secretary of state. New sec.15.8 also provides that 
state banks may utilize modified versions of forms promulgated by the secretary 
of state if the banking commissioner has not promulgated forms. Finally, new 
sec.15.8 also specifies which corporate forms, inapplicable to state banks, do 
not need to be filed with either the banking commissioner or the secretary of 
state. 
The agency received one comment from the Office of the Secretary of State of 
Texas. The secretary of state requested that, in accordance with the Texas 
Business Corporation Act, the filing requirements with its office under new 
sec.15.8(c) should be permissive and not mandatory. The agency concurs and has 
changed the word "must" to "may" under new sec.15.8(c). 
Adoption of this section is made pursuant to the Texas Banking Act, sec.3.007, 
which authorizes the commission to adopt rules to limit or refine the 
applicability of subsection (a) to a state bank or to alter or supplement the 
procedures and requirements of the Texas Business Corporation Act applicable to 
an action taken under the Texas Banking Act. Adoption of this section is also 
made under the Texas Banking Act, sec.1.012(a), which authorizes the commission 
to adopt rules to implement and clarify Act. 
As required by the Texas Banking Act, sec.1.012(b), the commission considered 
the need to promote a stable banking environment, provide the public with 
convenient, safe, and competitive banking services, preserve and promote the 
competitive parity of state banks with national banks and other depository 
institutions in this state consistent with the safety and soundness of state 
banks and the state bank system, and allow for economic development within this 
state.

sec.15.8. Corporate Filings.
(a) In accordance with the applicable provisions of Texas Civil Statutes, 
Article 342-1.001 et seq (the Act, sec.sec.1.001 et seq), the following 
corporate forms regarding a state bank, along with the applicable filing fees, 
must be filed with the banking commissioner: 
(1) articles of correction as authorized by Texas Civil Statutes, Article 1302-
7.02; 
(2) articles of amendment under the Act, sec.3.101;
(3) restated articles of association under the Act, sec.3.101;
(4) restated articles of association with amendments under the Act, sec.3.101; 
(5) articles of merger under the Act, sec.3.301 et seq, as supplemented by the 
Texas Business Corporation Act (TBCA), Article 5.04;
(6) articles of share exchange under TBCA, Article 5.02;
(7) statements regarding delayed effective condition under TBCA, Article 10.03; 
(8) establishment of a series of shares by the board of directors under the Act, 
sec.3.102; 
(9) statement regarding a restriction on the transfer of shares under TBCA, 
Article 2.22(E); 
(10) statement of cancellation of redeemable shares under TBCA, Article 4.10(B); 
(11) statement of cancellation of treasury shares under TBCA, Article 4.11; 
(12) statement regarding the reduction of capital and surplus under TBCA, 
Article 4.12; and 
(13) abandonment of a merger or share exchange prior to its effective date under 
TBCA, Article 5.03(I). 
(b) For purposes of corporate filings with the banking commissioner under 
subsection (a) of this section, state banks may utilize a modified version of 
forms promulgated by the secretary of state if the banking commissioner or the 
finance commission has not promulgated an appropriate corporate form; however, 
the banking commissioner may require the submission of additional information. 
The modified corporate forms must: 
(1) specifically reference the applicable provisions of the Act; 
(2) change references from "corporation" to "association;" and 
(3) change the references to "stated capital" and similar terms defined in the 
TBCA to an appropriate reference to terms defined in the Act. 
(c) In accordance with the applicable provisions of the TBCA, a state bank may 
file the following corporate forms with the secretary of state as instructed in 
the TBCA: 
(1) name registrations under TBCA, Article 2.07; and 
(2) assumed name certificates under TBCA, Article 2.05.
(d) The following corporate forms are inapplicable to state banks and are not 
required to be filed by a state bank with either the secretary of state or the 
banking commissioner: 
(1) changes of registered office or agent under TBCA, Article 2.10 or Article 
2.10-1; 
(2) name reservations under TBCA, Article 2.06; 
(3) applications for reinstatement under TBCA, Article 10.01; 
(4) articles of dissolution under TBCA, Article 6.06; and 
(5) revocation of dissolution under TBCA, Article 6.05.
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 24, 1997.
TRD-9701117
Everette D. Jobe
General Counsel
Texas Department of Banking
Effective date: February 14, 1997
Proposal publication date: November 12, 1996
For further information, please call: (512) 475-1300

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 3. Oil and Gas Division
Conservation Rule and Regulations
16 TAC sec.sec.3.49, 3.52, 3.53
The Railroad Commission of Texas adopts amendments to sec.sec.3.49 and 3.52, 
relating to gas-oil ratio and oil well allowable production, with changes to the 
proposed text as published in the November 12, 1996, issue of the Texas Register 
(21 TexReg 11039), and sec.3.53, relating to well status reports required, 
without changes to the proposed text as published in the November 12, 1996, 
issue of the Texas Register (21 TexReg 11039). The proposed amendments allow the 
commission to exempt certain low volume oil wells from annual well testing 
requirements. 
The adopted amendments to sec.3.49 permit the reporting of gas- oil ratios based 
on production in lieu of an annual well test for reporting gas-oil ratios for 
oil wells capable of producing no more than two barrels of oil per 24-hour 
period, excluding surface-commingled wells, swabbed wells, the East Texas Field, 
and various designated Panhandle fields. The adopted amendments to sec.3.49(f) 
delete the reference to Special Order Number 20- 58,691 allowing well testing at 
calendar day allowable rates. 
The adopted deletion of sec.3.49(g)(1) eliminates the provision allowing for 
well testing at calendar day allowable rates. The adopted deletion of 
sec.3.49(g)(3) eliminates the exception to any certification requirement for 
wells tested at less than the schedule allowable rate. The adopted deletion of 
sec.3.49(i) eliminates the provision requiring retests of wells because of 
variation in the percentage allowable factor. 
The adopted amendment to sec.3.52(f)(4)(A) deletes the requirement that all 
wells be tested annually in order to produce the total allowable on a lease or 
unit production basis, and adds a provision permitting a production allocation 
pursuant to adopted sec.3.53(a)(2) of this title (relating to well status 
reports required), commonly referred to as Statewide Rule 53, for reporting 
production on the Form W-10. The adopted amendments also delete the definition 
of "lease allowable" in sec.3.52(f)(4)(C). 
The adopted amendments to sec.3.53(a)(1) add a requirement for annual oil well 
testing that was previously required and enforced only through the Form W-10. 
Adopted sec.3.53(a)(2) creates an exempt status for oil wells producing two 
barrels of oil per day or less, excluding surface commingled wells, swabbed 
wells, the East Texas Field, and various designated Panhandle Fields. 
The adopted amendments to sec.3.53(a)(3), currently in sec.3.53(a)(1), exclude 
injection and disposal wells from the Form W-10 filing requirement. Adopted 
sec.3.53(a)(4), currently in sec.3.53(a)(2), deletes the reference to gas-oil 
ratio tests and the effective date for new allowables. 
The adopted amendment to sec.3.53(b) deletes the reference to Special Order 
Number 20-63,197 which amended Statewide Rule 53(a) and authorized the initial 
use of the Form W-10. Adoption of sec.3.53 as amended herein will overrule 
Special Order Number 20-63,197. 
The designated Panhandle fields are excluded from the adopted allocation 
provision because the existence of separate oil rights from gas rights requires 
the annual testing of all wells to monitor the gas-oil ratio in order to 
accurately determine the correct well classification necessary to protect vested 
property rights. The East Texas Field is excluded because the field rules set 
specific limits on the amount of water production permitted and therefore, 
annual well testing is necessary to determine accurate water-oil ratios. In 
addition, East Texas Field rules permit specific allowable transfers based on 
daily production rates. 
The commission received comments from three entities regarding the proposed 
amendments to sec.sec.3.49, 3.52, and 3.53: two associations and one major 
operator. 
The Permian Basin Petroleum Association ("PBPA") favors adoption of the proposed 
amendments without changes. The PBPA indicated that it applauds the commission's 
efforts in reducing the regulatory and expense burden for the industry and the 
state. 
ARCO Permian, a unit of Atlantic Richfield Company ("ARCO"), also supports the 
efforts of the commission to streamline well test reporting requirements. 
However, ARCO is concerned with proposed changes to the notice requirements in 
sec.3.52(f)(4)(a), believing that the insertion of the word "any" could increase 
the administrative burden of all operators. 
ARCO suggests that the provision be clarified so that notice is only required 
when the test is to be reported to the commission for allocation purposes, and 
offers the following language for consideration: "Offset operators must be 
notified of any tests [dates] to be reported to the commission for allocation 
purposes 24 hours in advance of test...." 
The commission disagrees with this recommendation as written. It is the intent 
of these amendments to allow operators to report well status information based 
on an allocation of production in lieu of annual well tests for certain low 
volume wells. 
Additionally, sec.3.52(f) applies only to a lease or unit that has been given 
permission to produce on a lease basis in a field. Operators of such leases or 
units are required to notify their offset operators of impending well tests, and 
the use of the word "any" is intended to convey the understanding that now, as a 
result of these amendments, not all wells on such leases or units, "if any", 
will be required to be tested. However, the recommended phrase, "to be reported 
to the Commission" has been adopted to clarify the intent of the rule. 
The North Texas Oil & Gas Association ("NTOGA") filed comments generally 
favoring adoption, but also suggesting that proposed sec.3.53(a)(3) be changed 
to require the reporting of disposal, injection and shut-in well status on the 
oil well status report form (Form W-10). The commission disagrees with this 
recommendation. The amendments as adopted do not change the requirements that 
well status reports on disposal, injection and shut-in wells be filed. Section 
3.53(a)(3) requires that the status of shut-in oil wells be reported on the oil 
well status report in that it provides that, "All wells on a lease... must be 
reported", and it does not exclude shut-in wells. Furthermore, sec.3.46(i)(2) of 
this title (relating to Fluid Injection into Productive Reservoirs) requires the 
status of all disposal/injection wells to be reported annually to the commission 
on the annual disposal/injection well monitoring report (Form H-10). 
Disposal/injection well status is not currently reported on the oil well status 
report form (Form W-10). Therefore, the commission declines to adopt the 
suggested change. 
In addition, the commission adopts some changes to the proposed text regarding 
use of the specific form number (Form W-10) in sec.sec.3.49(f) and 
3.52(f)(4)(A). Instead, the commission adopts the amendments with the title of 
the appropriate form (oil well status report form) in place of the specific form 
number. Said changes to the adopted text are not substantive, and the changed 
rules are still in substantial compliance with the notice requirements for the 
originally published rule. 
The commission adopts the amendments pursuant to Texas Natural Resources Code, 
sec.sec.81.051, 81.052, 85.201, 85.202, 86.041 and 86.042, which authorize the 
commission to prevent waste of oil and gas and to protect correlative rights. 
For more information, call Mickey R. Olmstead at (512) 463-6923. 
The Texas Natural Resources Code, sec.sec.81.051, 81.052, 85.201, 85.202, 
86.041, and 86.042, are affected by the adopted amendments. 

sec.3.49.Gas-Oil Ratio.
(a) Any oil well producing with a gas-oil ratio in excess of 2,000 cubic feet of 
gas per barrel of oil produced shall be allowed to produce daily only that 
volume of gas obtained by multiplying its maximum daily oil allowable, as 
determined by the allocation formula applicable to the well, by 2,000. The gas 
volume thus obtained shall be known as the daily gas limit of the well. The 
daily oil allowable of the well shall then be determined by dividing its daily 
gas limit, obtained as provided in this section, by its producing gas-oil ratio 
in cubic feet per barrel of oil produced. 
(b)-(e) (No change.) 
(f) All gas-oil ratios determined by test or allocation shall be reported on the 
oil well status report form in accordance with instructions thereon and the 
provisions of sec.3.53(a) of this chapter (relating to annual well tests and 
well status reports required. 
(g) Allowables. 
(1) No well shall have its allowable curtailed below the allowable fixed by the 
applicable field rules and the general statewide market demand order, unless 
such well is incapable of producing this allowable on a calendar day basis. 
(2) Any well that has a gas-oil ratio in excess of the prescribed ratio for the 
field in which it is located will have its schedule daily allowable penalized 
due to such ratio. 

sec.3.52.Oil Well Allowable Production.
(a)-(e) (No change.) 
(f) The operator of any lease or unitized area in the State of Texas may be 
permitted to produce the total allowable for any such lease or unitized area 
subject to the following provisions: 
(1)-(3) (No change.) 
(4) Annual well test or allocation: 
(A) An annual well test, or an allocation pursuant to sec.3.53(a)(2) of this 
chapter, relating to well status reports required, shall be made and reported on 
the oil well status report form on each lease or unit property to which a lease 
production basis has been granted showing an individual well test or allocation 
on each oil well on the property made during the prescribed test period 
determined by the commission. Offset operators must be notified of any test to 
be reported to the commission 24 hours in advance of the test and such test may 
be witnessed by offset operators. The commission will use the test or allocation 
data in the preparation of the oil proration schedule. The total schedule daily 
lease allowable shall be the sum of the individual well allowables as determined 
under applicable rules and the lease production basis shall be designated on the 
oil proration schedule by an appropriate symbol. All wells on the lease for 
which an allowable is requested shall have their production volumes reported 
pursuant to sec.3.53(a) of this chapter, relating to well status reports 
required. 
(B) (No change.) 
(5)-(7) (No change.) 
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 23, 1997.
TRD-9701057
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: February 13, 1997
Proposal publication date: November 12, 1996
For further information, please call: (512) 463-7008

TITLE 22. EXAMINING BOARDS
PART VII. Texas Board of Examiners in the Fitting and Dispensing of Hearing 
Instruments
CHAPTER 141.Fitting and Dispensing of Hearing Instruments 
22 TAC sec.sec.141.6, 141.19-141.22
The State Committee of Examiners in the Fitting and Dispensing of Hearing 
Instruments (committee) with the approval of the Texas Board of Health (board) 
adopts an amendment to sec.141.6; and adopts new sec.sec.141.19-141.22, 
concerning the fitting and dispensing of hearing instruments. Sections 141.19 
and 141.20 are adopted with changes to the proposed text as published in the 
September 27, 1996, issue of the Texas Register (21 TexReg 9218). Sections 
141.6. 141.21, and 141.22 are adopted without change and therefore will not be 
republished. 
The amendment to sec.141.6 and new sec.141.21 establish procedures and fees for 
suspension and reinstatement of a license for non-payment of child support. New 
sec.141.19 and sec.141.22 establish administrative penalties and code of ethics. 
New sec.141.20 sets out procedures for informal disposition of complaints. 
The sections will provide protection of the health, safety, and welfare of the 
citizens of Texas from the harmful effects of fitters and dispensers of hearing 
instruments by unskilled or unprincipled practitioners. 
No comments were received during the comment period concerning the sections as 
proposed. However, the committee corrected references to "complaints 
subcommittee and "committee" to clarify the rules. 
The amendment and new sections are adopted under Texas Civil Statutes, Article 
4566-1.01 et seq., (Act) which requires the committee to establish by rule 
administrative penalties and a code of ethics; Family Code, Chapter 232 as added 
by Acts 1995, 74th Legislature Chapter 751, sec.85 (HB 433) which requires the 
committee to establish procedures for suspension and reinstatement of a license 
for non-payment of child support; and the Administrative Procedure Act, Texas 
Government Code, sec.2001.056 which requires the committee to establish by rule 
procedures for informal disposition. 

sec.141.19.Administrative Penalties.
(a) The assessment of an administrative penalty is governed by the State 
Committee of Examiners in the Fitting and Dispensing of Hearing Instruments Act 
(Act), Texas Civil Statutes Article 4566-1.16 et seq. 
(b) References in the Act to the "commissioner of health" or the "department" 
are references to the commissioner of health or his designee. The State 
Committee of Examiners in the Fitting and Dispensing of Hearing Instruments 
(committee) shall request that the commissioner of health appoint the associate 
commissioner of health care quality and standards as his designee.
(c) References in the Act to a "hearing examiner designated by the department" 
are references to an administrative law judge from the department. 
(d) A hearing to assess administrative penalties shall be governed by sec.141.18 
of this title (relating to Formal Hearings). 
(e) The Complaints Subcommittee, with the approval of the committee and the 
Texas Board of Health (board) may impose a fine not to exceed $250 plus costs 
for the first violation and not to exceed $1,000 plus costs for each subsequent 
violation of the Act, and the rules adopted under the Act, on any person or 
entity described in the Act. The fine may be invoked as an alternative to any 
other disciplinary measure, except for probation, as set forth by the committee. 
(f) The amount of an administrative penalty shall be based on the following 
criteria. 
(1) The seriousness of a violation shall be categorized by one of the following 
severity levels: 
(A) Level I - violations that have or had an adverse impact on the health or 
safety of a client (or former client, where applicable);
(B) Level II - violations that have or had the potential to cause an adverse 
impact on the health or safety of a client (or former client, where applicable) 
but did not actually have an adverse impact; or 
(C) Level III - violations that have no or minor health or safety significance. 
(2) The range of administrative penalties by severity levels are as follows: 
(A) Level I - $500 to $1,000; 
(B) Level II - $250 to $500; or 
(C) Level III - no more than $250. 
(3) Subsequent violations in the same severity level for which an administrative 
penalty has previously been imposed shall be categorized at the next higher 
severity level. 
(4) Adjustments to the range of an administrative penalty may be made for: 
(A) prompt reporting; 
(B) corrective action; 
(C) compliance history; or 
(D) multiple violations. 

sec.141.20.Informal Disposition.
(a) Informal disposition of any complaint or contested case involving a licensee 
or an applicant for licensure may be made through an informal settlement 
conference held to determine whether an agreed settlement order may be approved. 
(b) If the executive director or the Complaints Subcommittee of the State 
Committee of Examiners in the Fitting and Dispensing of Hearing Instruments 
(committee) determines that the public interest might be served by attempting to 
resolve a complaint or contested case with an agreed order in lieu of a formal 
hearing, the provisions of this chapter shall apply. A licensee or applicant may 
request an informal settlement conference; however, the decision to hold a 
conference shall be made by the executive director or the complaints 
subcommittee. 
(c) An informal settlement conference shall be voluntary and shall not be a 
prerequisite to a formal hearing. 
(d) The executive director shall decide upon the time, date and place of the 
settlement conference, and provide written notice to the licensee or applicant 
of the same. Notice shall be provided no less than 10 days prior to the date of 
the conference by certified mail, return receipt requested, to the last known 
address of the licensee or applicant or by personal delivery. The 10 days shall 
begin on the date of mailing or personal delivery. The licensee or applicant may 
waive the ten-day notice requirement. 
(e) A copy of the committee's rules concerning informal disposition shall be 
enclosed with the notice of the settlement conference. The notice shall inform 
the licensee or applicant of the following: 
(1) the nature of the alleged violation; 
(2) that the licensee or applicant may be represented by legal counsel; 
(3) that the licensee or applicant may offer the testimony of witnesses and 
present other evidence as may be appropriate; 
(4) that committee members may be present; 
(5) that the committee's legal counsel or a representative of the Office of the 
Attorney General will be present; 
(6) that the licensee's or applicant's attendance and participation is 
voluntary; 
(7) that the complainant and any client involved in the alleged violations may 
be present; and 
(8) that the settlement conference will be canceled if the licensee or applicant 
notifies the executive director that he or she or his or her legal counsel will 
not attend. 
(f) The notice of the settlement conference shall be sent by certified mail, 
return receipt requested, to the complainant at his or her last known address or 
personally delivered to the complainant. The complainant shall be informed that 
he or she may appear and testify or may submit a written statement for 
consideration at the settlement conference. The complainant shall be notified if 
the conference is canceled. 
(g) Members of the Complaint Subcommittee may be present at a settlement 
conference. 
(h) The settlement conference shall be informal and shall not follow the 
procedures established in this section for contested cases and formal hearings. 
(i) The licensee or applicant, the licensee's or applicant's attorney, the 
Complaints Committee members, the committee's legal counsel, and the executive 
director, may question witnesses, make relevant statements, present statements 
of persons not in attendance and present such other evidence as may be 
appropriate. 
(j) The committee's legal counsel or an attorney from the Office of the Attorney 
General shall attend each settlement conference. The committee members or 
executive director may call upon the attorney at any time for assistance in the 
settlement conference. 
(k) The licensee shall be afforded the opportunity to make statements that are 
material and relevant. 
(l) Access to the committee's investigative file may be prohibited or limited in 
accordance with the Public Information Act (Open Records Act), Government Code, 
Chapter 552, and the Administrative Procedure Act (APA), Government Code, 
Chapter 2001. 
(m) At the discretion of the executive director or the committee members, a tape 
recording may be made of some or all of the settlement conference.
(n) The committee members or the executive director shall exclude from the 
settlement conference all persons except witnesses during their testimony, the 
licensee or applicant, the licensee's or applicant's attorney, and the committee 
staff. 
(o) The complainant shall not be considered a party in the settlement conference 
but shall be given the opportunity to be heard if the complainant attends. Any 
written statement submitted by the complainant shall be reviewed at the 
conference. 
(p) At the conclusion of the settlement conference, the committee members or 
executive director may make recommendations for informal disposition of the 
complaint or contested case. The recommendations may include any disciplinary 
action authorized by the State Committee of Examiners in the Fitting and 
Dispensing of Hearing Instruments Act (Act). The committee member may also 
conclude that the committee lacks jurisdiction, conclude that a violation of the 
Act or this chapter has not been established, order that the investigation be 
closed, or refer the matter for further investigation. 
(q) The licensee or applicant may either accept or reject the settlement 
recommendations at the conference. If the recommendations are accepted, an 
agreed settlement order shall be prepared by the committee office or the 
committee's legal counsel and forwarded to the licensee or applicant. The order 
shall contain agreed findings of fact and conclusions of law. The licensee or 
applicant shall execute the order and return the signed order to the committee 
office within ten days of his or her receipt of the order. If the licensee or 
applicant fails to return the signed order within the stated time period, the 
inaction shall constitute rejection of the settlement recommendations. 
(r) If the licensee or applicant rejects the proposed settlement, the matter 
shall be referred to the executive director for appropriate action.
(s) If the licensee or applicant signs and accepts the recommendations, the 
agreed order shall be submitted to the entire committee for its approval. 
Placement of the agreed order on the committee agenda shall constitute only a 
recommendation for approval by the committee. 
(t) The identity of the licensee or applicant shall not be made available to the 
committee until after the committee has reviewed and accepted the agreed order 
unless the licensee or applicant chooses to attend the committee meeting. The 
licensee or applicant shall be notified of the date, time, and place of the 
committee meeting at which the proposed agreed order will be considered. 
Attendance by the licensee or applicant shall be voluntary. 
(u) Upon an affirmative majority vote, the committee shall enter an agreed order 
approving the accepted settlement recommendations. The committee may not change 
the terms of a proposed order and shall only approve or disapprove an agreed 
order if the licensee or applicant is present at the committee meeting and 
agrees to other terms proposed by the committee. 
(v) If the committee does not approve a proposed agreed order, the licensee or 
applicant and the complainant shall be so informed. The matter shall be referred 
to the executive director for other appropriate action.
(w) A proposed agreed order is not effective until the full committee and the 
commissioner of health has approved the agreed order. The order shall then be 
effective in accordance with the APA. 
(x) A licensee's opportunity for an informal conference under this section shall 
satisfy the requirement of the APA, Government Code, sec.2001.054(c).
(1) If the executive director and Complaints Subcommittee determines that an 
informal conference shall not be held, the executive director shall give written 
notice to the licensee or applicant of the facts or conduct alleged to warrant 
the intended disciplinary action and the licensee or applicant shall be given 
the opportunity to show, in writing and as described in the notice, compliance 
with all requirements of the Act and this section. 
(2) The complainant shall be sent a copy of the written notice. The complainant 
shall be informed that he or she may also submit a written statement to the 
committee office.
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 21, 1997.
TRD-9701019
Susan K. Steeg
General Counsel
Texas Board of Examiners in the Fitting and Dispensing of Hearing Instruments 
Effective date: February 12, 1997
Proposal publication date: September 27, 1996
For further information, please call: (512) 458-7236

TITLE 28. INSURANCE
PART II. Texas Workers' Compensation Commission
CHAPTER 134.Guidelines for Medical Services, Charges, and Payments
SUBCHAPTER G.Treatments and Services Requiring Pre-Authorization 
28 TAC sec.134.600
The Texas Workers' Compensation Commission (the commission) adopts an amendment 
to sec.134.600, concerning the Procedure for Requesting Pre-Authorization of 
Specific Treatments and Services with changes to the proposed text published in 
the December 17, 1996, issue of the Texas Register (21 TexReg 12052). 
As required by the Government Code, sec.2001.033(1), the Commission's reasoned 
justification for this amendment is set out in this order, which includes the 
preamble, which in turn includes the rule. The reasoned justification is 
contained in this preamble and throughout this preamble, including how and why 
the Commission reached the conclusions it did, why the amendment is appropriate, 
the factual, policy, and legal bases for the amendment, a restatement of the 
factual basis for the amendment, a summary of comments received from interested 
parties, names of those who commented and whether the commenters were for or 
against adoption of the amendment, and the reasons why the agency disagrees with 
some of the comments. 
Changes made to the proposed rule are in response to public comment received in 
writing and at a public hearing held on January 16, 1997, and are described in 
the summary of comments and responses section of this preamble. 
The rule regarding preauthorization was adopted to comply with a statutory 
mandate in Texas Labor Code, sec.413.014 that the Commission specify by rule 
which health care treatments and services require express preauthorization by 
the insurance carrier in the absence of a medical emergency. The statute also 
states the insurance carrier is not liable for the specified treatments and 
services unless preauthorization is sought by the claimant or health care 
provider and either obtained or ordered by the Commission. As explained in the 
following paragraphs of this preamble, the preauthorization rule balances the 
statutory mandate and Commission policy to ensure injured workers receive the 
quality health care reasonably required by the nature of their injury as and 
when needed, with the statutory mandates to establish preauthorization 
requirements, ensure quality medical care, and achieve effective medical cost 
control. The rule also balances the needs of the injured workers, the health 
care providers, the carriers, and the system as a whole. 
The rule sets out the circumstances in which a carrier is liable for treatments 
and services for which the rule requires preauthorization; establishes access 
requirements for carriers; sets requirements for a health care provider's 
request for preauthorization; establishes deadlines for certain carrier actions; 
establishes record keeping requirements for the carrier; provides for dispute 
resolution; and lists the treatments and services that require preauthorization 
in the absence of a medical emergency. The amendment to the rule affects only a 
single listing of treatments and services in subsection (h) of the rule, and 
does not revise the preauthorization process or any other portion of the rule. 
Previously, all repeat baseline diagnostic studies and laboratory testing 
required preauthorization. Under the amended rule, only some repeat baseline 
diagnostic studies and laboratory testing require preauthorization. The 
remainder are subject to retrospective review by the carrier for reasonableness 
and medical necessity, as are all medical treatments and services for which 
preauthorization is not required. 
Health care providers and claimants are concerned with which treatments and 
services are listed in the rule because all those listed must (in non-emergency 
situations) be preauthorized by the carrier prior to the actual treatment or 
service being provided, or the carrier is not liable for that treatment or 
service, unless preauthorization is ordered by the Commission. Unless the 
preauthorization process itself is strictly controlled, reasonable and necessary 
medical treatments and services required by the claimant may be unnecessarily 
delayed. Carriers are concerned with the list of treatments and services 
required to be preauthorized because a carrier is afforded an opportunity for 
prospective review of only those medical treatments and services listed. 
It was appropriate to amend the rule because it did not contain a definition of 
"repeat baseline diagnostic studies" or of "laboratory testing" and there was 
reported confusion among health care providers and carriers about the types of 
studies and testing that require preauthorization pursuant to subsection (h)(6) 
of the rule, especially with regard to diagnostic studies used to monitor the 
treatment of a work related injury. This allegedly may have led to medically 
necessary services being performed by health care providers without the required 
preauthorization and therefore without reimbursement for the service. 
In addition, the Medical Review Division ("the division") of the Commission 
received correspondence from providers, associations and carriers regarding the 
interpretation of this language in the preauthorization process. The previous 
language allegedly caused disputes over the quality and timeliness of care 
delivered to injured workers and over reimbursement. 
The division used its expertise to evaluate this input and the advisability of a 
rule amendment, and to draft the language of the amendment. The Division then 
coordinated a review of this rule language through a discussion group of the 
Medical Advisory Committee (MAC). In addition, direct input from the Commission- 
appointed Medical Advisory Committee was considered. The MAC by statute (Texas 
Labor Code, sec.413.005) is to advise the Medical Review Division in developing 
and administering the medical policies, fee guidelines, and utilization 
guidelines established under the Texas Labor Code, sec.413.011.
The MAC advises the Division in the review and revision of medical policies and 
fee guidelines required under Texas Labor Code, sec.413.012. The MAC is composed 
of representative members appointed by the Commission as follows: a 
representative of a public health care facility, a representative of a private 
health care facility, a doctor of medicine, a doctor of osteopathic medicine, a 
chiropractor, a dentist, a physical therapist, a pharmacist, a podiatrist, an 
occupational therapist, a medical equipment supplier, a registered nurse, a 
representative of employers, a representative of employees, and two 
representatives of the general public. 
Many diagnostic studies which previously required preauthorization are of 
relatively low per procedure cost. For example, some repeat x-rays, performed to 
check the healing of a simple fracture, cost less than $50. Prior to this 
amendment, under sec.134.600 if an x-ray was performed at the beginning 
(baseline) of the treatment, subsequent x-rays were considered a repeat of the 
baseline diagnostic study and required preauthorization. In addition, requiring 
preauthorization of all baseline diagnostic studies and laboratory testing 
allegedly may interrupt medically necessary services, due to the carrier's 
three-day time frame for responding. 
The amendment to sec.134.600 revises subsection (h)(6) of the rule, to require 
preauthorization only for a "repeat individual diagnostic study with a fee 
established in the current Medical Fee Guideline of greater than $350 or 
Documentation of Procedure (DOP)". A definition of "diagnostic study" has also 
been added to subsection (h)(6) of the rule. 
The monetary limit of $350 was chosen for several reasons: this limit will 
eliminate the requirement for preauthorization of the majority of individual 
pathology CPT codes, as they are reimbursed below $350 and are not a high volume 
cost driver in the workers' compensation system; with this limit, health care 
providers will be able to perform repeat diagnostic testing that is routine, 
inexpensive, and necessary to the formulation of a prognosis, without having to 
preauthorize the tests; 
carriers and health care providers will save time and expense by not having to 
preauthorize tests that are reimbursed at $350 or less; 
for the treatments and services not covered by the amended rule, retrospective 
review for reasonableness and medical necessity is still available to the 
carrier; 
most of the individual radiology CPT codes eliminated from the list requiring 
preauthorization are plain film radiology procedures; and 
CAT scans and MRIs radiology CPT procedures, which are a high volume and cost 
component in the workers' compensation system, still require preauthorization 
for repeat testing. 
These facts and policies support the use of $350 as a reasonable monetary 
threshold for requiring preauthorization of repeat diagnostic studies. 
The amendment should cause fewer preauthorization requests to be filed by health 
care providers and processed by carriers. This should lead to fewer disputes 
between health care providers and carriers, and therefore fewer disputes which 
must be resolved by the Medical Review Division. Injured workers should benefit 
from the language change; eliminating the requirement of preauthorization will 
eliminate any delay in treatment which may have allegedly occurred due to the 
preauthorization process. 
The costs of the preauthorization process to the system could be reduced because 
health care providers and carriers should experience a decrease in their 
administrative costs for performing services that require preauthorization. 
There is currently no data to indicate whether there will be a change in the 
number of payments for diagnostic studies and laboratory testing as a result of 
the amendment. These services will still be subject to retrospective review and 
denial of payment by the carrier for lack of reasonableness and medical 
necessity. 
The proposed amendment consisted solely of a revision to subsection (h)(6). 
Changes to the proposed text consist of: the use of the term "disease/injury" 
throughout the definition of "diagnostic study"; and the addition of "Unless 
otherwise specified" to (h)(6). Other subparagraphs of subsection (h) require 
preauthorization for studies and tests that could be considered diagnostic 
studies. The Commission has added this text to (h)(6) as adopted to clarify that 
(h)(6) does not affect requirements for preauthorization that are in existing 
(h)(1) through (h)(16). 
Comments supporting the proposed amendment to sec.134.600 were received from the 
following: Patient Advocates of Texas; Texas Workers' Compensation Insurance 
Fund; the Work Assessment Center; South Texas Spinal Clinic; and Healthwatch, 
Inc. 
The Commission held a public hearing on the proposed amendment on January 16, 
1997 at the Commission's central office in Austin. South Texas Spinal Clinic 
gave testimony. 
Summaries of the comments and commission responses are as follows: 
COMMENT: Commenter supported the process used to develop the rule amendment.
RESPONSE: The commission agrees. 
COMMENT: Commenter supported the amendment but suggested that the words "and/or 
existing injury" be added to the definition of diagnostic study in subsection 
(h)(6). 
RESPONSE: The commission agrees in part. The term "disease/injury" is cited 
throughout the definition of "diagnostic study" except in the part of the 
definition noted by the commenter. For consistency and clarity, the definition 
of "diagnostic study" has been changed to read as follows: 
"Diagnostic study is defined as any test used to help establish or exclude the 
presence of disease/injury in symptomatic persons; the test can help determine a 
diagnosis, screen for specific diseases/injury, guide the management of an 
established disease/injury and help formulate a prognosis." 
COMMENT: Commenters expressed concern regarding eight weeks of therapy 
(134.600(h)(10)) and requests a language change for this part of the rule.
RESPONSE: The commission disagrees. This concern does not address the proposed 
language change to 134.600(h)(6). Therapy is addressed in (h)(10) of the current 
rule and proposed rule amendment included only (h)(6) of the rule, so 
preauthorization of therapy will not be addressed at this time. 
COMMENT: Commenter supported in part the proposed language. Commenter felt that 
low cost radiology tests, typically plain x- rays, should be shared between 
doctors rather than repeated, and that low cost pathology tests are not 
routinely seen in preauthorization and therefore not significantly impacted by 
the proposed change. 
RESPONSE: The commission agrees that sharing medical records between health care 
providers should be practiced according to Commission Rules to prevent 
unnecessary duplication of tests. The commission also agrees that no significant 
impact should occur with the elimination of low cost pathology tests from the 
preauthorization process as proposed and as adopted. 
COMMENT: Commenter recommended that initial and repeat nerve tests should be 
subject to preauthorization. Another commenter recommended preauthorization of 
all surface baseline electro- diagnostic studies, such as CPTs, DSEPs, SSEPs, 
etc., stating that these tests are currently being performed and are 
unnecessary. Commenter also felt that it was unclear what is included in 
"surface electromyograms" and requested that this be clarified, although 
Commenter acknowledged that this is not up for adoption at this time. 
RESPONSE: The Commission disagrees that it is necessary to include these studies 
in preauthorization because there is adequate guidance available about the use 
of these studies in existing treatment guidelines sec.134.1001 and sec.134.1002 
of this title (relating to Spine Treatment Guideline and Upper Extremities 
Treatment Guideline, respectively). In addition, the Medical Fee Guideline gives 
further instructions on utilization of nerve conduction studies in the ground 
rules. The retrospective review process is available for carriers to evaluate 
the medical necessity of these studies. To determine the impact of exempting 
these studies from preauthorization the Commission intends to benchmark the 
billing frequency of the following CPT codes to evaluate the effect of this 
amendment: radiology, pathology, and select diagnostic CPT codes to include 
electro-diagnostic studies. 
The phrase "unless otherwise specified" has been added to the beginning of 
subsection (h)(6). This will avoid confusion with other procedures specifically 
listed in subsection (h) of the rule, which may be considered diagnostic 
studies. When specifically listed in subsection (h) the diagnostic study 
requires preauthorization. 
COMMENT: Commenter expressed concern that the shift from prospective to 
retrospective review could result in possible increased costs associated with 
reviewing and approving bills due to differences in how the reviews are 
conducted. Commenter also felt that this shift could result in more 
reimbursement denials and an increased number of medical disputes. 
RESPONSE: The Commission disagrees. The Commission lacks the evidence to 
indicate that there is a difference in the cost between prospective and 
retrospective review. The amendment should cause fewer preauthorization requests 
to be filed by health care providers and processed by carriers. This should lead 
to fewer disputes between health care providers and carriers, and therefore 
fewer disputes which must be resolved by the Medical Review Division. The 
Commission will monitor the frequency of this issue in medical dispute 
resolution. 
COMMENT: Commenter contended that the current rule 134.600(h)(6) has a negative 
impact on patient care because some necessary diagnostic studies may be denied, 
resulting in delayed or denied treatment. 
RESPONSE: The Commission agrees that the amendment to subsection (h)(6) 
simplifies the process for obtaining some diagnostic tests. With the proposed 
language amendment to rule 134.600(h)(6), the Commission has eliminated the 
necessity to preauthorize low cost diagnostic tests that cost under $350 and 
make up the majority of the radiology tests performed. Injured workers should 
benefit from the language change; eliminating the requirement of 
preauthorization will eliminate any delay in treatment which may have allegedly 
occurred due to the preauthorization process. 
COMMENT: Commenter stated that comparative and confirmatory x-rays are not 
included in the determination of relative value units developed for and licensed 
through the American Medical Association. If these x-rays continue to require 
preauthorization the Maximum Allowable Reimbursement (MAR) would need to be 
properly adjusted to reflect the higher cost associated with the 
preauthorization process. 
RESPONSE: The Commission disagrees. The maximum allowable reimbursements in the 
1996 Medical Fee Guideline were derived in part from the 1995 edition of McGraw 
Hill Relative Value for Physicians. Analysis conducted by TWCC staff confirmed 
that the vast majority of confirmatory and comparative x-rays will fall below 
the $350 value and will not require preauthorization under this revision. 
Because of this it is not necessary to consider whether additional reimbursement 
for preauthorization is warranted. Prior to this proposed amendment all repeat 
x-rays would have required preauthorization. 
COMMENT: Commenter encouraged the Commission to rescind or modify this rule so 
that it is more practical to implement and follow. 
RESPONSE: The Commission agrees in part. The Commission received numerous 
complaints related to the previous language associated with rule 134.600(h)(6). 
Because of these concerns the Commission initiated the rule making process in 
order to amend the language associated with 134.600(h)(6). With the help of a 
work group composed of health care providers, business, and regulatory 
representatives, sec.134.600(h)(6) has been amended to be less burdensome to the 
health care providers and insure that medically necessary repeat diagnostics 
below $350 can be performed without delay. 
COMMENT: Commenter recommended that a period of time be specified in the rule 
which would determine when a baseline test can be considered expired, so that 
tests after that time period would not be repeat tests. Commenter also felt that 
confirmatory x-rays used to assess the progress of treatment are not baseline 
diagnostic studies, and encouraged the Commission to rescind or modify the 
current rule. 
RESPONSE: The Commission disagrees. Evoking an arbitrary time period that would 
pertain to all diagnostic studies, would not be valid. The word "baseline" has 
been removed from the rule language. This amendment now requires only repeat 
studies reimbursed greater than $350 or DOP to be preauthorized. 
COMMENT: Commenter generally supported the proposed language and does not feel 
there will be a significant fiscal impact on the system due to the changes.
RESPONSE: The Commission agrees. 
The amendment is adopted pursuant to the Texas Labor Code, sec.402.061, which 
authorizes the commission to adopt rules necessary to administer the Act; Texas 
Labor Code, sec.408.021 which states that an employee who sustains a compensable 
injury is entitled to all health care reasonably required by the nature of the 
injury, as and when needed; the Texas Labor Code, sec.413.002 that requires the 
commission to monitor health care providers and insurance carriers to ensure 
compliance with commission rules relating to health care, including medical 
policies, and fee guidelines; the Texas Labor Code, sec.413.011 which requires 
the commission by rule to establish medical policies relating to necessary 
treatments for injuries and designed to ensure the quality of medical care and 
to achieve effective medical cost control; the Texas Labor Code, sec.413.013 
which requires the commission by rule to establish: a program for prospective, 
concurrent, and retrospective review and resolution of a dispute regarding 
health care treatments and services; a program for the systematic monitoring of 
the necessity of treatments administered and fees charged and paid for medical 
treatments or services, including the authorization of prospective, concurrent, 
or retrospective review under the medical policies of the commission to ensure 
that the medical policies and guidelines are not exceeded; and a program to 
detect practices and patterns by insurance carriers in unreasonably denying 
authorization of payment for medical services requested or performed if 
authorization is required by the medical policies of the commission; and the 
Texas Labor Code, sec.413.014, which requires the commission to specify by rule 
those health care treatments and services requiring express preauthorization by 
the insurance carrier, except for medical emergency and states that the 
insurance carrier is not liable for specified treatments and services that they 
have not preauthorized, unless ordered by the commission. 
These statutes clearly authorize the Commission to establish procedures for 
prospective review and to specify by rule health care treatments and services 
requiring express preauthorization by the insurance carrier. 

sec.134.600.Procedure for Requesting Pre-Authorization of Specific Treatments 
and Services.
(a) - (g) (No change.) 
(h) The health care treatments and services requiring pre-authorization are: 
(1) - (5) (No change.) 
(6) unless otherwise specified, repeat individual diagnostic study, with a fee 
established in the current Medical Fee Guideline of greater than $350 or DOP 
(documentation of procedure) (Diagnostic study is defined as any test used to 
help establish or exclude the presence of disease/injury in symptomatic persons; 
the test can help determine a diagnosis, screen for specific diseases/injury, 
guide the management of an established disease/injury and help formulate a 
prognosis.); 
(7) - (16) (No change.) 
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 24, 1997.
TRD-9701172
Susan Cory
General Counsel
Texas Worker's Compensation
Effective date: April 1, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 440-3700

SUBCHAPTER K.Treatment Guidelines
28 TAC sec.134.1002
The Texas Workers' Compensation Commission (the commission) adopts an amendment 
to sec.134.1002, concerning the Upper Extremities Treatment Guideline with 
changes to the proposed text published in the December 17, 1996 issue of the 
Texas Register (21 TexReg 12054). The text of the Upper Extremities Treatment 
Guideline is available from the Publications Department of the Texas Workers' 
Compensation Commission, 4000 South IH 35, Southfield Building, Austin, Texas 
78704-7491. The sole amendment to sec.134.1002 is a revision of the expiration 
or "Sunset" date in subsection (b)(1) of the rule from February 1, 1997 to 
February 1, 1998. The only change to the proposed amendment was a change in the 
sunset date from July 1, 1998 to February 1, 1998. 
As required by the Government Code, sec.2001.033(1), the Commission's reasoned 
justification for this amendment is set out in its order which includes this 
preamble, which in turn includes the rule. The reasoned justification is 
contained in this preamble, and throughout this preamble, including how and why 
the Commission reached the conclusions it did, why the amendment is appropriate, 
the factual, policy, and legal bases for the amendment, a restatement of the 
factual basis for the amendment, a summary of comments received from interested 
parties, names of those groups and associations who commented and whether they 
were for or against adoption of the amendment, and the reasons why the 
Commission disagrees with some of the comments. 
The Upper Extremities Treatment Guideline clarifies those services that are 
reasonable and necessary for operative and nonoperative care of the upper 
extremities for the injured workers of Texas. The guideline is not to be used as 
a fixed treatment protocol, but rather identifies a normal course of treatment 
and reflects typical courses of intervention, while recognizing that there will 
be injured workers who will require less or more treatment than is outlined. The 
guideline also acknowledges that in atypical cases, treatment falling outside 
the guideline will occasionally be necessary. However, those cases that exceed 
the guideline level of treatment are subject to more careful scrutiny and review 
and require documentation of the special circumstances that justify the 
treatment. The guideline does not prescribe the type and frequency of treatment; 
treatment must be based on patient need and professional judgement. The rule was 
designed to function as a guideline and is not to be used as the sole reason for 
denial of treatments and services. 
The clinical and diagnostic treatment guidelines contained in the rule were 
developed in conjunction with health care providers and other parties in the 
workers' compensation system. The guideline was designed to achieve the 
following goals: (1) to assist all parties with regard to the appropriate 
treatment and management of upper extremities injuries; (2) to establish 
elements against which aspects of care can be compared; (3) to establish a 
guideline to identify clinically acceptable courses of treatment for specific 
disorders; (4) to establish documentation standards which support the 
appropriateness of the level of service; and (5) to provide a mechanism of 
prospective, concurrent, and retrospective review for efficient and effective 
health care utilization. The Commission considered all relevant statutory and 
policy mandates and objectives and designed this rule to achieve those mandates 
and objectives, including the following: 
(1) establish medical policies and guidelines relating to use of medical 
services by employees who suffer compensable injuries; 
(2) establish medical policies relating to necessary treatments for injuries 
which are designed to ensure the quality of medical care and designed to achieve 
effective medical cost control. 
The amendment of sec.134.1002 extending the expiration date to February 1, 1998 
achieves these objectives by extending the applicability of the provisions of 
the rule, including the following: 
(1) identification of clinically acceptable courses of care for specific upper 
extremities injuries; 
(2) identification of services that are reasonable and medically necessary for 
treatment of upper extremity injuries. 
The guideline promotes quality health care, injury specific treatment and 
appropriateness of care, by identifying clinically acceptable courses of care 
for specific upper extremities injuries, and by facilitating communication 
between all parties in order to achieve rapid recovery from the effects of an 
injury. This communication also promotes a timely return to modified or full 
duty work that takes into account the job demands and the functional 
capabilities of the injured worker. The number of disputes regarding upper 
extremities treatments and preauthorization requests should be reduced because 
the guideline clarifies what is a normal course of treatment and reflects 
typical courses of intervention. In addition, fewer disputes should result in a 
reduction of costs to the workers' compensation system and in timely and 
appropriate treatment of an injured worker. 
It was necessary to amend sec.134.1002, because without such amendment the rule 
would expire on February 1, 1997. Subsection (b)(1) has been amended to extend 
the time the rule will remain in effect to February 1, 1998. This will allow the 
Commission to continue to monitor and analyze the effectiveness of the rule and 
to receive input from affected parties with regard to whether any portion of the 
substantive provisions of the rule should be revised. At this time, the 
Commission believes that the rule is functioning as intended and the Commission 
is not aware of any concerns or problems on the part of parties affected by the 
rule. This is therefore the only amendment to the rule. 
Comments were received on the proposed amendment from: the Texas Workers' 
Compensation Insurance Fund; and Healthwatch, Inc. 
One commenter specifically did not register a "for" or "against" position, while 
the other opposed the continuation of the rule in its current format. The 
Commission held a public hearing on the proposed amendment on January 16, 1997 
at the Commission's central office in Austin. No testimony was offered by 
persons attending. 
A summary of the comments and the agency's responses are as follows: 
COMMENT: One commenter encouraged the Commission to continue to review the 
efficacy of treatment algorithms and analyze the impact of the guideline on 
return to work patterns and cost to the system. 
RESPONSE: The Commission agrees. The Commission will continue to monitor the 
guideline over the next 12 months for efficacy and cost to the system. Cost 
impact data is insufficient at this time, due to the short time the guideline 
has been in effect. The Commission does not currently have a mechanism in place 
to correlate guideline efficacy with return-to-work statistics. 
COMMENT: Another commenter stated that reflex sympathetic dystrophy should be 
addressed if the guideline is to continue, however, the commenter refrained from 
making any suggestions regarding the disease at this time. 
RESPONSE: The Commission disagrees. Commission monitoring has shown that not 
enough time has passed to collect sufficient data regarding the efficacy of the 
guideline on specific diagnoses such as reflex sympathetic dystrophy. The 
Commission believes that the sunset date of February 1998 will allow for 
sufficient data collection and analysis to determine what, if any, changes are 
needed to specific diagnoses algorithms. 
COMMENT: The second commenter also stated that the guideline has not made a 
significant impact on the system and therefore should not continue in its 
current format. 
RESPONSE: The Commission disagrees. Commission monitoring has shown that not 
enough time has passed to collect sufficient data from which a conclusion could 
be drawn. The Commission believes that extending the sunset date until February 
of 1998 will allow for sufficient data collection and analysis. The amendment is 
adopted pursuant to the Texas Labor Code, sec.402.061 which requires the 
commission to adopt rules necessary for the implementation and enforcement of 
the Texas Workers Compensation Act; the Texas Labor Code, sec.413.011, which 
authorizes the commission to establish by rule medical policies and guidelines 
relating to necessary treatments for injuries; and the Texas Labor Code, 
sec.413.013, which authorizes the commission to establish by rule a program for 
prospective, concurrent, and retrospective review and resolution of a dispute 
regarding health care treatments and services; and to establish by rule a 
program for the systematic monitoring of the necessity of treatments 
administered and fees charged and paid for medical treatments or services, 
including the authorization of prospective, concurrent, or retrospective review 
under the medical policies of the commission to ensure that the medical policies 
or guidelines are not exceeded. These statutory provisions clearly authorize the 
commission to adopt a rule such as sec.134.1002 which includes guidelines 
relating to necessary treatments for injuries and promotes resolution of 
disputes regarding health care treatments and services. 

sec.134.1002.Upper Extremities Treatment Guideline. 
(a) (No change.) 
(b) Introduction. 
(1) This guideline shall become effective February 1, 1996, and remain effective 
until February 1, 1998. 
(2) - (5) (No change.) 
(c) - (i) (No change.) 
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 24, 1997.
TRD-9701170
Susan Cory
General Counsel
Texas Worker's Compensation
Effective date: February 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 440-3700

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission
CHAPTER 12. Payment of Fees 
30 TAC sec.sec.12.1, 12.3, 12.5
The commission adopts new sec.sec.12.1, 12.3, and 12.5, concerning Payment of 
Fees, without changes to the proposed text as published in the November 5, 1996, 
issue of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULES. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. The new Chapter 12 incorporates the Tax Code penalty and interest 
provisions. A reference to Chapter 12 is concurrently being placed in all 
applicable fee rules, while at the same time, all existing late payment language 
is deleted. 
The new sec.12.3, concerning Penalty and Interest on Delinquent Fees, 
specifically incorporates the penalty and interest rates found in Tax Code, 
sec.111.060 and sec.111.061.  
The new sec.12.5, concerning Consistency of Penalties and Interest with the Tax 
Code, links the penalty and interest structure of the commission's rules to Tax 
Code, sec.111.060 and sec.111.061, and therefore does not permit the commission 
to charge penalties or interest at rates in excess of the Tax Code. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for these rules in accordance with Texas Government Code, 
sec.2007.043. Promulgation and enforcement of these rules will not affect 
private real property. 
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The new sections are adopted under Texas Water Code, 
sec.sec.5.103, 5.105, 13.041, 26.011, 27.019, 32.009, 33.007, and 34.006 and 
Texas Health and Safety Code, sec.sec.341.002, 341.031, 361.011, 361.017, 
361.024, 366.012, 382.017, 401.011, 401.051, and 401.412, which authorize the 
commission to adopt any rules necessary to carry out its powers and duties under 
the Water Code and other laws of Texas and to establish and approve all general 
policy of the commission.
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 22, 1997.
TRD-9701137
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 101.General Rules
30 TAC sec.101.24, sec.101.27
The commission adopts amendments to sec.101.24, concerning Inspection Fees and 
sec.101.27, concerning Emissions Fees, without changes to the proposed text as 
published in the November 5, 1996, issue of the Texas Register (21 TexReg 
10863). 
EXPLANATION OF ADOPTED RULES. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
These amendments ensure that the penalty and interest provisions required for 
the late payment of fees contained in these sections remain consistent with the 
limits of the Tax Code. The current late payment language contained in 
sec.101.24 and sec.101.27 is replaced with references to the new Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for these rules in accordance with Texas Government Code, 
sec.2007.043. Promulgation and enforcement of these rules will not affect 
private real property.  
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendments are adopted under the Texas Health and 
Safety Code, the Texas Clean Air Act (TCAA), sec.382.017, which provides the 
commission with the authority to adopt rules consistent with the policy and 
purposes of the TCAA.
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 22, 1997.
TRD-9701136
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 290. Water Hygiene 
SUBCHAPTER E. Fees for Public Water Systems 
30 TAC sec.290.51
The commission adopts an amendment to sec.290.51, concerning Fees for Services 
to Drinking Water System, without changes to the proposed text as published in 
the November 5, 1996, issue of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment inserts a reference to the new Chapter 12 to establish for this 
section penalty and interest provisions for the late payment of fees.
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701135
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 291. Water Rates 
SUBCHAPTER D. Records and Reports 
30 TAC sec.291.76 
The commission adopts an amendment to sec.291.76, concerning Regulatory 
Assessment (of water rates), without changes to the proposed text as published 
in the November 5, 1996, issue of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language is replaced with a reference 
to the new Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, 
sec.sec.5.103, 5.105, and 13.041, which provide the commission with rulemaking 
authority relating to the regulation and supervision of retail public utilities' 
rates, fees, operations, and services and submetered and nonsubmetered master 
metered service providers. The amendment establishes the substantive regulations 
which affect the policies of the commission regarding the assurance of water and 
sewer rates, fees, operations, and services which are just and reasonable.
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 22, 1997.
TRD-9701134
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 303. Operation of the Rio Grande 
Financing of the Rio Grande Watermaster Operation 
30 TAC sec.303.73
The commission adopts an amendment to sec.303.73, concerning Assessment of 
Costs, without changes to the proposed text as published in the November 5, 
1996, issue of the Texas Register (21 TexReg 10863). This section pertains to 
financing Rio Grande watermaster operations. 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment inserts a reference to the new Chapter 12 to establish for this 
section penalty and interest provisions for the late payment of fees.
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701133
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 304. Watermaster Operations 
Financing Watermaster Operations 
30 TAC sec.304.63 
The commission adopts an amendment to sec.304.63, concerning Assessment of Cost, 
without changes to the proposed text as published in the November 5, 1996, issue 
of the Texas Register (21 TexReg 10863). This section pertains to financing 
watermaster operations.  
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment inserts a reference to the new Chapter 12 to establish for this 
section penalty and interest provisions for the late payment of fees.
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARING AND COMMENTERS. A public hearing was held on December 3, 1996, in 
Austin. No public testimony was offered at the public hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701132
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 305. Consolidated Permits 
SUBCHAPTER M. Waste Treatment Inspection Fee Program 
30 TAC sec.305.507
The commission adopts an amendment to sec.305.507, concerning Failure to Make 
Payment, without changes to the proposed text as published in the November 5, 
1996, issue of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee requirements. The purpose of the rulemaking 
is to establish uniform and consistent requirements for the assessment of 
penalties and interest for the late payment of fees owed the state under the 
commission's jurisdiction as required by Texas Water Code, sec.5.235. The Water 
Code requires penalty and interest rates to be no greater than those established 
in Texas Tax Code, sec.111.060 and sec.111.061. Those sections of the Tax Code 
provide for the assessment of a penalty of 5.0% of any delinquent tax, and if 
those taxes are not paid within 30 days after the day on which they are due, an 
additional 5.0% penalty will be assessed. Furthermore, an annual interest rate 
of 12.0% will be assessed on delinquent taxes beginning 60 days after the day on 
which taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language has an incorrect interest 
rate of 12.0% compounded monthly. The correct interest rate should be 12.0% 
annually. This late payment language is replaced with a reference to the new 
Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property. 
HEARINGS AND COMMENTERS. A public hearing on the proposal was held December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, 
sec.sec.5.103, 5.105, 13.041, 26.011, 27.019, 32.009, 33.007, and 34.006 and 
Texas Health and Safety Code, sec.sec.341.002, 341.031, 361.011, 361.017, 
361.024, 366.012, 382.017, 401.011, 401.051, and 401.412, which authorize the 
commission to adopt any rules necessary to carry out its powers and duties under 
the Water Code and other laws of Texas and to establish and approve all general 
policy of the commission. 
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 22, 1997.
TRD-9701131
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 312. Sludge Use, Disposal, and Transportation 
SUBCHAPTER A. General Provisions 
30 TAC sec.312.9
The commission adopts an amendment to sec.312.9, concerning Sludge Fee Program, 
without changes to the proposed text as published in the November 5, 1996, issue 
of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
This amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language has an incorrect interest 
rate of 12.0% compounded monthly. The correct interest rate should be 12.0% 
annually. This late payment language is replaced with a reference to the new 
Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARING AND COMMENTERS. A public hearing on the proposal was held on December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701130
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 320. Regional Assessments of Water Quality 
Program for Water Quality Assessment by Watershed 
30 TAC sec.320.21 
The commission adopts an amendment to sec.320.21, concerning Water Quality Fees, 
without changes to the proposed text as published in the November 5, 1996, issue 
of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
The amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language has an incorrect interest 
rate of 12.0% compounded monthly. The correct interest rate should be 12.0% 
annually. This late payment language is replaced with a reference to the new 
Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this proposed rule in accordance with Texas Government Code, 
sec.2007.043. Promulgation and enforcement of this proposed rule will not affect 
private real property. 
HEARING AND COMMENTERS. A public hearing on the proposal was held on December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701129
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 330. Municipal Solid Waste 
SUBCHAPTER P. Fees and Reporting 
30 TAC sec.330.601 
The commission adopts an amendment to sec.330.601, concerning Purpose and 
Applicability (Municipal Solid Waste), without changes to the proposed text as 
published in the November 5, 1996, issue of the Texas Register (21 TexReg 
10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
The amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language has an incorrect interest 
rate of 12.0% compounded monthly. The correct interest rate should be 12.0% 
annually. This late payment language is replaced with a reference to the new 
Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARINGS AND COMMENTERS. A public hearing on the proposal was held December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701128
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 334. Underground and Aboveground Storage Tanks 
The commission adopts amendments to sec.334.22 and sec.334.128, concerning 
Failure to Make Payment and Annual Facility Fees for ASTs (Aboveground Storage 
Tanks), and sec.sec.334.406, 334.423, and 334.467, concerning Fee Assessments 
for Certificate of Registration, Fee Assessments for License A and License B, 
and Fee Assessments for Certificates of Registration, without changes to the 
proposed text as published in the November 5, 1996, issue of the Texas Register 
(21 TexReg 10863).
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
The amendments ensure that the penalty and interest provisions required for the 
late payment of fees contained in these sections remain consistent with the 
limits of the Tax Code. The current late payment language has an incorrect 
interest rate of 12.0% compounded monthly. The correct interest rate should be 
12.0% annually. This late payment language is replaced with references to the 
new Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for these rules in accordance with Texas Government Code, 
sec.2007.043. Promulgation and enforcement of these rules will not affect 
private real property.  
HEARINGS AND COMMENTERS. A public hearing on the proposal was held December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.

SUBCHAPTER B. Underground Storage Tank Fees 
30 TAC sec.334.22 
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701127
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER F. Aboveground Storage Tanks 
30 TAC sec.334.128
The amendment is adopted under Texas Water Code, sec.5.103, which provides the 
commission with the authority to adopt any rules necessary to carry out the 
Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701126
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER I. Underground Storage Tank Contractor Registration
And Installer Licensing 
30 TAC sec.334.406, sec.334.423 
The amendments are adopted under Texas Water Code, sec.5.103, which provides the 
commission with the authority to adopt any rules necessary to carry out the 
Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701125
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER J. Registration of Corrective Action Specialists And Project Managers 
For Product Storage Tank Remediation Projects 
30 TAC sec.334.467 
The amendments are adopted under Texas Water Code, sec.5.103, which provides the 
commission with the authority to adopt any rules necessary to carry out the 
Texas Water Code and other laws of this 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. 
Issued in Austin, Texas, on January 22, 1997.
TRD-9701124
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

CHAPTER 335. Industrial Solid Waste and Municipal Hazardous Waste 
SUBCHAPTER J. Hazardous Waste Generation, Facility and Disposal Fee System 
30 TAC sec.335.331
The commission adopts an amendment to sec.335.331, concerning Failure to Make 
Payment or Report, without changes to the proposed text as published in the 
November 5, 1996, issue of the Texas Register (21 TexReg 10863). 
EXPLANATION OF ADOPTED RULE. This adoption is concurrent with other rulemaking 
affecting applicable commission fee rules. The purpose of the rulemaking is to 
establish uniform and consistent requirements for the assessment of penalties 
and interest for the late payment of fees owed the state under the commission's 
jurisdiction as required by Texas Water Code, sec.5.235. The Water Code requires 
penalty and interest rates to be no greater than those established in Texas Tax 
Code, sec.111.060 and sec.111.061. Those sections of the Tax Code provide for 
the assessment of a penalty of 5.0% of any delinquent tax, and if those taxes 
are not paid within 30 days after the day on which they are due, an additional 
5.0% penalty will be assessed. Furthermore, an annual interest rate of 12.0% 
will be assessed on delinquent taxes beginning 60 days after the day on which 
taxes are due. A new 30 TAC Chapter 12 contains these penalty and interest 
provisions and will apply to all fees under the commission's jurisdiction. 
The amendment ensures that the penalty and interest provisions required for the 
late payment of fees contained in this section remain consistent with the limits 
of the Tax Code. The current late payment language has an incorrect interest 
rate of 12.0% compounded monthly. The correct interest rate should be 12.0% 
annually. This late payment language is replaced with a reference to the new 
Chapter 12. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for this rule in accordance with Texas Government Code, sec.2007.043. 
Promulgation and enforcement of this rule will not affect private real property.
HEARINGS AND COMMENTERS. A public hearing on the proposal was held December 3, 
1996, in Austin. No public testimony was offered at the hearing. The public 
comment period closed on December 5, 1996, and no written comments were 
received.
STATUTORY AUTHORITY. The amendment is adopted under Texas Water Code, sec.5.103, 
which provides the commission with the authority to adopt any rules necessary to 
carry out the Texas Water Code and other laws of this state, and Texas Health 
and Safety Code, sec.361.024, which provides the commission with the authority 
to regulate solid and hazardous waste.
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 22, 1997.
TRD-9701123
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: February 14, 1997
Proposal publication date: November 5, 1996
For further information, please call: (512) 239-1966

TITLE 34. PUBLIC FINANCE
PART I. Comptroller of Public Accounts
CHAPTER 5.Funds Management (Fiscal Affairs)
The Comptroller of Public Accounts adopts new sec.5.140, concerning replacement 
warrants, without changes to the proposed text as published in the November 12, 
1996, issue of the Texas Register (21 TexReg 11087). 
The new section replaces sec.sec.5.141-5.143 which are being repealed. The new 
section is necessary because of substantial amendments made to Government Code, 
sec.403.054 by the 73rd Legislature, 1993, which render obsolete certain 
portions of existing sec.sec.5.141-5.143. 
No comments were received regarding adoption of the new section. 

Claims Processing-Duplicate Warrants
34 TAC sec.5.140
The new section is adopted under the Government Code, sec.403.054, which 
provides that the comptroller may issue a replacement warrant in place of an 
original warrant, if the state agency on whose behalf the comptroller issued the 
original warrant notifies the comptroller of certain specific events. This 
statute also specifies under what conditions the comptroller may not issue a 
replacement warrant. This statute also authorizes the comptroller to adopt rules 
regarding the issuance of replacement warrants. 
The new section implements Government Code, sec.403.054. 
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 23, 1997.
TRD-9701095
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: February 14, 1997
Proposal publication date: November 12, 1996
For further information, please call: (512) 463-4062

34 TAC sec.sec.5.141-5.143
The Comptroller of Public Accounts adopts the repeal of sec.sec.5.141-5.143, 
concerning definitions; return of stolen for forged warrants to comptroller; 
application of duplicate warrant, without changes to the proposed text as 
published in the November 12, 1996, issue of the Texas Register (21 TexReg 
11088). 
These sections are being repealed to implement statutory changes to Government 
Code, sec.403.054 governing the issuance of replacement warrants. Based on these 
statutory changes a substantially revised section (34 TAC sec.5.140 concerning 
replacement warrants) will be adopted. 
No comments were received regarding adoption of the repeals. 
The repeals are adopted under the Government Code, sec.403.054, which provides 
that the comptroller may issue a replacement warrant in place of an original 
warrant, if the state agency on whose behalf the comptroller issued the original 
warrant notifies the comptroller of certain specific events. This statute also 
specifies under what conditions the comptroller may not issue a replacement 
warrant. This statute also authorizes the comptroller to adopt rules regarding 
the issuance of replacement warrants. 
The repeals implement the Government Code, sec.403.054. 
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 23, 1997.
TRD-9701094
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: February 14, 1997
Proposal publication date: November 12, 1996
For further information, please call: (512) 463-4062

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART XI. Texas Commission on Human Rights
CHAPTER 321.General Provisions
40 TAC sec.sec.321.1, 321.2, 321.6
The Texas Commission on Human Rights adopts amendments to sec.sec.321.1, 321.2, 
and 321.6, concerning Definitions, Purpose, and Availability, without changes to 
the proposed text as published in the December 6, 1996, issue of the Texas 
Register (21 TexReg 11753). 
Formerly, these statutes were found in Texas Revised Civil Statutes Annotated 
Article 5221k, as amended by House Bill 860, Acts 1993, 73rd Legislature, and by 
Senate Bill 959, Acts 1995, 74th Legislature. The applicable statutes are now 
located in Chapter 21 of the Texas Labor Code, and partially codified in Chapter 
461 of the Texas Government Code. 
Due to this adopted action, there will be a clarification of the current 
location of the applicable statutes. 
No comments were received regarding adoption of these amendments.
The amendments are adopted under Texas Government Code, Chapter 2001, Subchapter 
B, sec.sec.2001.021-2001.038, which provides the Texas Commission on Human 
Rights with the authority to amend and rescind these rules in accordance with 
the Administrative Procedure 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. 
Issued in Austin, Texas, on January 24, 1997.
TRD-9701160
Brooks William (Bill) Conover, III
General Counsel
Texas Commission on Human Rights
Effective date: February 14, 1997
Proposal publication date: December 6, 1996
For further information, please call: (512) 437-3457

CHAPTER 323.Commission
40 TAC sec.sec.323.1-323.5
The Texas Commission on Human Rights adopts amendments to sec.sec.323.1-323.5, 
concerning General Description, Term of Office, Meetings, Reimbursements, and 
General Powers, without changes to the proposed text as published in the 
December 6, 1996, issue of the Texas Register (21 TexReg 11753).
Formerly, these statutes were found in Texas Revised Civil Statutes Annotated 
Article 5221k, as amended by House Bill 860, Acts 1993, 73rd Legislature, and by 
Senate Bill 959, Acts 1995, 74th Legislature. The applicable statutes are now 
located in Chapter 21 of the Texas Labor Code, and partially codified in Chapter 
461 of the Texas Government Code. 
Due to this adopted action, there will be a clarification of the current 
location of the applicable statutes. 
No public comments were received regarding adoption of these amendments.  The 
amendments are adopted under Texas Government Code, Chapter 2001, Subchapter B, 
sec.sec.2001.021-2001.038, which provides the Texas Commission on Human Rights 
with the authority to amend and rescind these rules in accordance with the 
Administrative Procedure 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. 
Issued in Austin, Texas, on January 24, 1997.
TRD-9701161
Brooks William (Bill) Conover, III
General Counsel
Texas Commission on Human Rights
Effective date: February 14, 1997
Proposal publication date: December 6, 1996
For further information, please call: (512) 437-3457

CHAPTER 325.Local Commissions
40 TAC sec.sec.325.1-325.3, 325.5
The Texas Commission on Human Rights adopts amendments to sec.sec.325.1-325.3, 
and 325.5, concerning Deferral Authority, Deferral Procedures, and Eligibility, 
with changes to the proposed text as pubished in the December 6, 1996, issue of 
the Texas Register (21 TexReg 11753). 
Formerly, these statutes were found in Texas Revised Civil Statutes Annotated, 
Article 5221k, as amended by House Bill 860, Acts 1993, 73rd Legislature, and by 
Senate Bill 959, Acts 1995, 74th Legislature. The applicable statutes are now 
located in Chapter 21 of the Texas Labor Code, and partially codified in Chapter 
461 of the Texas Government Code. 
Due to this adopted action, there will be a clarification of the current 
location of the applicable statutes. Additionally, this adopted action will 
clarify mailing procedures. 
No comments were received regarding the adoption of these amendments.
The amendments are adopted under Texas Government Code, Chapter 2001, Subchapter 
B, sec.sec.2001.021-2001.038, which provides the Texas Commission on Human 
Rights with the authority to amend and rescind these rules in accordance with 
the Administrative Procedure Act.  

sec.325.1.Deferral Authority.
The commission shall defer a complaint filed with it to a local commission 
within five working days pursuant to the Texas Labor Code, sec.21.155(a) 
(formerly Texas Revised Civil Statutes Annotated Article 5221k, sec.4.04(a)).

sec. 325.2.Deferral Procedures. 
(a) For a complaint filed with the commission over which the federal government 
has deferred jurisdiction, timeliness of the complaint shall be measured by the 
date on which the complaint is received by the commission for the purpose of 
satisfying the filing requirements of the Texas Labor Code, sec.21.201 (formerly 
Texas Revised Civil Statutes Annotated Article 5221k, sec.6.01(a)). 
(b) For a complaint deferred to the commission by the federal government, 
timeliness of the complaint shall be measured by the date on which the complaint 
is received by the federal government for the purpose of satisfying the filing 
requirements of the Texas Labor Code, sec.21.201 (formerly Texas Revised Civil 
Statutes Annotated Article 5221k, sec.6.01(a)).
(c) For a complaint deferred to the commission by a local commission, timeliness 
of the complaint shall be measured by the date on which the complaint is 
received by the local commission for the purpose of satisfying the filing 
requirements of the Texas Labor Code, sec.21.201 (formerly Texas Revised Civil 
Statutes Annotated Article 5221k, sec.6.01(a)). 
(d) To encourage the maximum degree of effectiveness by local commissions, the 
commission shall endeavor to maintain close communication with respect to all 
matters forwarded to them and shall provide such assistance to local commissions 
as permitted by law and as is practicable. 
(e) The Act grants a local commission the exclusive right to take appropriate 
action within the scope of its powers and jurisdiction to process a complaint 
deferred by the commission pursuant to the requirements of the Texas Labor Code, 
sec.21.155 (formerly Texas Revised Civil Statutes Annotated Article 5221k, 
sec.4.04), and this chapter. 
(f) A local commission may waive its right to the period of exclusive processing 
of a complaint provided by the Act with respect to any complaint or category of 
complaints by deferring a matter under its jurisdiction to the commission 
pursuant to the Texas Labor Code, sec.21.156 (formerly Texas Revised Civil 
Statutes Annotated Article 5221k, sec.4.04(c)). 
(g) All complaints received by the commission subject to deferral to a local 
commission shall be dated and time stamped upon receipt. 
(h) The original complaint shall be retained in a suspense file by the 
commission until the local commission has submitted a copy of its final 
determination to the commission; the commission has reassumed responsibility for 
the complaint after affording the local commission a reasonable time, but not 
less than 60 days, to remedy the practice alleged to be discriminatory in the 
deferred complaint; or the local commission has deferred the matter under its 
jurisdiction to the commission. 
(i) A copy of a complaint received by the commission subject to deferral to a 
local commission shall be transmitted by registered or certified mail, return 
receipt requested, to the appropriate local commission. Proceedings by the local 
commission are deemed to have commenced on the date such complaint is mailed. 
(j) A copy of a complaint deferred to a local commission by the federal 
government over which the commission has deferral jurisdiction shall be 
transmitted by registered or certified mail, return receipt requested, to the 
commission by the local commission. 
(k) The complainant and respondent shall be notified in writing that the 
complaint received by the commission has been forwarded to the local commission. 
(l) For purposes of satisfying the requirements of the Texas Labor Code, 
sec.21.155 (formerly Texas Revised Civil Statutes Annotated Article 5221k, 
sec.4.04), the commission shall not assume jurisdiction over a complaint 
deferred to a local commission, except as follows: 
(1) where the local commission may defer a complaint under its jurisdiction to 
the commission; 
(2) where the complaint is received by the commission within 180 days of the 
alleged violation but beyond the period of limitation of the appropriate local 
commission; 
(3) where the local commission has not acted on the complaint pursuant to the 
requirements of the Texas Labor Code, sec.21.155(c) (formerly Texas Revised 
Civil Statutes Annotated Article 5221k, sec.4.04(b)), and this chapter. 

sec.325.3.Final Determination of a Local Commission.
(a) A local commission shall submit to the commission by registered or certified 
mail, return receipt requested, a copy of the document stating the final finding 
of the local commission as to the merits of a deferred complaint or a copy of 
the document stating the appropriate action taken by the local commission to 
resolve the practice alleged as discriminatory in a deferred complaint. 
(b) For purposes of satisfying the Texas Labor Code, sec.sec.21.208 and 21.251-
21.256 (formerly Texas Revised Civil Statutes Annotated Article 5221k, 
sec.7.01(a)), a local commission shall submit to the commission by registered or 
certified mail, return receipt requested, notification if a deferred complaint 
is dismissed, or shall submit, within 120 days of the date the complaint is 
deferred by the commission, written notification if the local commission has not 
filed a civil action or not successfully negotiated a conciliation agreement 
between the complainant and respondent. A local commission shall notify the 
commission within five working days if the local commission does not intend to 
act on a complaint deferred by the commission or if it receives a complaint over 
which the commission has deferral jurisdiction. 

sec.325.5.Eligibility. 
(a) Notwithstanding any other rules of the commission, the commission shall 
defer complaints pursuant to the Texas Labor Code, sec.21.155 (formerly Texas 
Revised Civil Statutes Annotated Article 5221k, sec.4.04), to local commissions 
which are in compliance with the following requirements:
(1) a political subdivision adopts and enforces an ordinance pursuant to the 
Texas Labor Code, sec.21.151 (formerly Texas Revised Civil Statutes Annotated 
Article 5221k, sec.4.01); 
(2) a political subdivision or two or more political subdivisions acting jointly 
creates a local commission pursuant to the Texas Labor Code, sec.21.152 
(formerly Texas Revised Civil Statutes Annotated Article 5221k, sec.4.02); 
(3) the local commission can exercise the powers pursuant to the Texas Labor, 
sec.sec.21.153-21.154 (formerly Texas Revised Civil Statutes Annotated Article 
5221k, sec.4.03); and 
(4) the local commission is designated as a 706 deferral agency by the United 
States Equal Employment Opportunity Commission and maintains 706 designation by 
complying with the performance standards established by the United States Equal 
Employment Opportunity Commission for 706 deferral agencies. 
(b) To be certified by the commission as a local commission pursuant to this 
chapter and the Texas Labor Code, Subchapter D, sec.sec.21.151-21.156 (formerly 
Texas Revised Civil Statutes Annotated Article 5221k, sec.sec.4.01-4.04), the 
following materials and information shall be submitted to the commission:
(1) a letter of intent showing approval by the local commission and the 
governing authority of the political subdivision or subdivisions;
(2) a copy of the local ordinance that prohibits practices designated as 
unlawful under the Texas Labor Code 
(3) a copy of rules, policies, and procedures governing the operations of the 
local commission; 
(4) a copy of an organizational chart of the internal structure of the local 
commission and its relationship to the governing authorities of the political 
subdivision or subdivisions of which it is a part; 
(5) a copy of the local commission budget and resources;
(6) a letter from the United States Equal Employment Opportunity Commission 
verifying designation as a 706 agency. 
(c) Upon examination of the materials and information provided by a local 
commission, the executive director shall on behalf of the commission notify in 
writing the local commission as to determination of its eligibility.
(d) If the commission does not certify the local commission as subject to this 
chapter and the Texas Labor Code, Subchapter D, sec.sec.21.151-21.156 (formerly 
Texas Revised Civil Statutes Annotated Article 5221k, sec.sec.4.01-4.04), it 
shall identify in writing the reasons for noncertification and endeavor to 
provide the local commission the necessary assistance to comply with the 
requirements established by this chapter and the Texas Labor Code, Subchapter D, 
sec.sec.21.151-21.156 (formerly Texas Revised Civil Statutes Annotated Article 
5221k, sec.sec.4.01-4.04). 
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 24, 1997.
TRD-9701162
Brooks William (Bill) Conover, III
General Counsel
Texas Commission on Human Rights
Effective date: February 14, 1997
Proposal publication date: December 6, 1996
For further information, please call: (512) 437-3457

CHAPTER 327.Administrative Review
SUBCHAPTER A.Administrative Investigation and Review
40 TAC sec.sec.327.1-327.10, 327.12
The Texas Commission on Human Rights adopts amendments to sec.sec.327.1-327.10, 
and 327.12, concerning Filing a Complaint, Investigation of a Complaint, 
Subpoena, Dismissal of a Complaint, Reasonable Cause Determination, 
Conciliation, Notice to Complainant, Failure to Issue Notice, Access to 
Commission Records, Confidentiality, and Temporary Injunctive Relief, with 
changes to the proposed text as published in the December 6, 1996, issue of the 
Texas Register (21 TexReg 11753). 
Formerly, these statutes were found in Texas Revised Civil Statutes Annotated, 
Article 5221k, as amended by House Bill 860, Acts 1993, 73rd Legislature, and by 
Senate Bill 959, Acts 1995, 74th Legislature. The applicable statutes are now 
located in Chapter 21 of the Texas Labor Code, and partially codified in Chapter 
461 of the Texas Government Code. 
Due to this adopted action, there will be a clarification of the current 
location of the applicable statutes. Additionally, this adopted action will 
clarify mailing procedures. 
No comments were received regarding the adoption of these amendments.
The amendments are adopted under Texas Government Code, Chapter 2001, Subchapter 
B, sec.sec.2001.021-2001.038, which provides the Texas Commission on Human 
Rights with the authority to amend and rescind these rules in accordance with 
the Administrative Procedure Act. 

sec.327.1.Filing a Complaint. 
(a) A complainant may telephone, write, or visit the commission office or a 
local commission office to obtain information about filing a complaint with the 
commission. 
(b) The executive director or his or her designee may counsel with the 
complainant about the facts and circumstances which constitute the alleged 
unlawful employment practice. If the facts and circumstances do not constitute 
an unlawful employment practice, the executive director or his or her designee 
shall so advise the complainant. If the facts and circumstances constitute an 
alleged unlawful employment practice, the executive director or his or her 
designee shall assist the complainant in perfecting the complaint.
(c) The complaint shall be filed at the commission office in writing or in 
person with the executive director or his or her designee on a form provided by 
the commission, or filed in writing at an office of a local commission, or at an 
office of the federal government. 
(d) Notwithstanding any other rule of the commission, the complaint shall 
identify personal harm, respondent's reasons for the actions taken, and a 
discrimination statement. 
(e) A complaint shall be filed within 180 days after the date the alleged 
unlawful employment practice occurred. 
(f) A complaint may be withdrawn by a complainant only with the consent of the 
commission. The commission hereby delegates authority to the executive director 
or his or her designee to grant consent to a request to withdraw a complaint 
where the withdrawal of the complaint shall not defeat the purposes of the Texas 
Labor Code. 
(g) A complaint may be amended to cure technical defects or omissions, including 
failure to verify the complaint and to clarify and amplify allegations made 
therein. Such amendment or amendments alleging additional acts which constitute 
unlawful employment practices related to or growing out of the subject matter of 
the original complaint shall relate back to the date the complaint was first 
received. The respondent shall receive a copy of the amended complaint. An 
amended complaint shall be subject to the procedures set forth in these rules. 
(h) Upon receipt of a complaint to be processed by the commission, the complaint 
shall be docketed to include all pertinent information, assigned a complaint 
number, and assigned for processing to a commission employee.
(i) Within ten days after the receipt of the perfected complaint, the executive 
director or his or her designee shall serve the respondent with a copy of the 
complaint by registered or certified mail, return receipt requested. If a 
perfected complaint is not received by the commission within 180 days of the 
alleged unlawful employment practice, the commission shall notify the respondent 
that a complaint has been filed and that the process of perfecting the complaint 
is in progress. 
(j) On behalf of the commission, the executive director or his or her designee 
shall notify the parties to a complaint of the status of the complaint at least 
quarterly and until the final disposition of the complaint, unless the notice 
would jeopardize an undercover investigation by another state, federal, or local 
government. 
(k) If a complaint as referenced in the subsection (c) of this section is filed 
within 180 days after the date the alleged unlawful employment practice 
occurred, it may be amended in accordance with subsection (g) of this section to 
comply with the definition of a complaint as referenced in sec.321.1 of this 
title (relating to Definitions). If the complaint is not amended within 180 days 
after the date the alleged unlawful employment practice occurred, the amended 
complaint shall relate back to the date the original complaint was filed as 
required by subsection (e) of this section.

sec.327.2.Investigation of a Complaint. 
(a) After attempting alternative dispute resolution pursuant to sec.sec.327.21-
327.31 of this title (relating to Alternative Dispute Resolutio