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
SUBCHAPTER A.General Quarantine Provisions
4 TAC sec.19.7
The Texas Department of Agriculture (the department) adopts an amendment to 
sec.19.7, concerning violations and penalties, without changes to the proposed 
text as published in the January 14, 1997, issue of the Texas Register (22 
TexReg 705). The amendment is adopted without changes and will not be 
republished. 
The amendment to sec.19.7 is adopted to address violations and penalties for to 
comply with the terms of a compliance agreement. 
No comments were received regarding adoption of the amendment. The amendment is 
adopted under the Texas Agriculture Code, sec.12.020, which provides the Texas 
Department of Agriculture with the authority to assess administrative penalties 
for violations of quarantine rules; and sec.71.007, which authorizes the 
department to adopt rules necessary for the protection of agricultural and 
horticultural interests.

sec.19.7. Violations and Penalties.
(a) (No change.) 
(b) (No change.) 
(c) Failure failing to perform according to the terms of a compliance agreement 
is a violation of this subchapter and may result in the rescission of the 
compliance agreement and the assessment of administrative penalties by the 
department. 
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 February 19, 1997.
TRD-9702506
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: March 13, 1997
Proposal publication date: January 14, 1997
For further information, please call: (512) 463-7583

TITLE 16. ECONOMIC REGULATION
PART II. Public Utility Commission
CHAPTER 23. Substantive Rules
Customer Service and Protection
16 TAC sec.sec.23.43, 23.45, 23.46
The Public Utility Commission of Texas adopts amendments to Substantive Rules 
sec.23.43, relating to Applicant and Customer Deposit; sec.23.45, relating to 
Billing; and, sec.23.46, relating to Discontinuance of Service with changes to 
the proposed text as published in the December 6, 1996, issue of the Texas 
Register (21 TexReg 11690). The amendment is necessary to allow for electric 
utilities to bill a guarantor for a defaulted customer account in the same bill 
as the guarantor's own service is billed. 
A public hearing on the amendment was held at commission offices on December 17, 
1996 at 10:00 a.m. Representatives from Central Power and Light Company (CPL) 
attended the hearing, but made no comment for the record. 
The commission received written comments on the proposed amendments from CPL, 
Texas Utilities Electric Company (TUEC), and Houston Lighting and Power (HL&P). 
CPL supports the amendments as published, but stated that if the rule is 
intended to require that CPL immediately implement the requirement for a 
separate line item on the guarantor's bill for the transferred amount, that they 
be granted temporary relief until their automated systems are modified to comply 
with the rule. They ask that they be permitted to continue with their current 
system of sending a separate bill until that time. 
Subsection (c)(1) clearly states in subparagraphs (A) and (B) that the utility 
can either send a separate written notice of the defaulted amount or may 
transfer the amount to the guarantor's own service bill provided the guaranteed 
amount owed is identified separately on the bill. Therefore, no special relief 
is necessary for CPL to continue with their current practice, however they shall 
not transfer the amount to the guarantor's own service bill until such time as 
that amount can be separately identified as set out by sec.23.45(g)(2)(B)(viii), 
of this title, relating to electric utilities. The commission makes no change to 
the rule based on this comment. 
TUEC and HL&P objected to the requirement in sec.23.43(j)(1) and(2) that the 
company return a voided letter of guarantee to the guarantor. HL&P stated that 
they currently receive about 53,000 contracts of guarantee per year and that 
these contracts are microfilmed and then the original document is disposed of. 
In order to comply with the new rule, HL&P stated that the company would incur 
additional administrative burdens and costs for storage, upkeep and return of 
these documents. Therefore, in order to provide the guarantor a meaningful 
record of the transaction without creating additional expense, HL&P suggested 
adding language to paragraphs (1) and (2) of sec.23.43(j) that would provide a 
company with the option of sending "written documentation that the contract has 
been voided." TUEC suggested adding language stating that the letters of 
guarantee would be "released" after the account is paid or the guaranteed amount 
is satisfied. 
The commission agrees with the comments of TUEC and HL&P regarding the voided 
letters of guarantee and adopts the changes to the text of sec.23.43(j)(1) and 
(2) recommended by HL&P 
TUEC commented that the words "individually identify" in the text of 
sec.23.45(g)(2)(B) "is unnecessary since the rule already states that the 
customer's bill shall show all the information" and that it is impossible to 
"show" the information without it being individually identified. 
Section 23.45(g)(2)(B) states that "the customer's bill shall individually 
identify and show all the following information:" The commission disagrees that 
the words "individually identify" are unnecessary. The commission's intent is to 
ensure that the customer is able to determine what information is being 
reported, or "shown," on his bill . In other words, the rule was written to 
ensure that the company identify each piece of information it is reporting as 
opposed to merely reporting (or showing) data without explanation to the 
customer. The commission makes no changes to the rule based on this comment.  
This amendment is adopted under Public Utility Regulatory Act of 1995, 
sec.1.101, Senate Bill 319, 74th Legislature, Regular Session 1995, which 
provides the Public Utility Commission with the authority to make and enforce 
rules reasonably required in the exercise of its powers and jurisdiction, 
including rules of practice and procedure. 
Cross Index to Statutes: Public Utility Regulatory Act of 1995 sec.1.101. 

sec.23.43. Applicant and Customer Deposit. 
(a) (No change.) 
(b) Establishment of credit for permanent residential applicants.
(1)-(2) (No change.) 
(3) Subject to these rules, a residential applicant shall not be required to pay 
a deposit: 
(A)-(B) (No change.) 
(C) if the residential applicant furnishes in writing a satisfactory guarantee 
as set forth in clauses (i) and (ii) of this subparagraph. 
(i) The guarantee shall be for no more than the amount of deposit the utility 
would normally seek on the applicant's account. The amount of the guarantee 
shall be clearly indicated on any documents or letters of guarantee signed by 
the guarantor. 
(ii) The guarantee shall be voided and returned to the guarantor according to 
the provisions of subsection (j) of this section, relating to Refunding of 
Deposits and Voiding Letters of Guarantee. 
(4)-(5) (No change.) 
(c) Guarantees of residential customer accounts. Upon default by a residential 
customer, the guarantor of that customer's account shall be responsible for the 
unpaid balance of the account only up to the amount agreed to as stated in the 
written agreement between the utility and the guarantor. 
(1) The utility shall provide written notification to the guarantor of the 
customer's default, the amount owed by the guarantor, and the due date for the 
amount owed. If the due date falls on a holiday or weekend, the due date for 
payment purposes shall be the next work day after the due date. The postmark, if 
any, on the envelope of the notification, or an issuance date on the 
notification, if there is no postmark on the envelope, shall constitute proof of 
the date of issuance. 
(A) The utility shall allow the guarantor 16 days from the date of notification 
to pay the amount owed on the defaulted account; or,
(B) the utility may transfer the amount owed on the defaulted account to the 
guarantor's own service bill provided the guaranteed amount owed is identified 
separately on the bill as required by sec.23.45(g)(2)(B)(viii), of this title, 
(relating to electric utilities). 
(2) The utility may disconnect service to the guarantor for nonpayment of the 
guaranteed amount only if such disconnection was included in the terms of the 
written agreement, and only after proper notice as described by paragraph (1) of 
this subsection, and section sec.23.46(b) of this title, (relating to 
disconnection for delinquent bills). 
(d) Commercial and industrial service. In the case of commercial or industrial 
service, if the credit of an applicant for service has not been established 
satisfactorily to the utility, the applicant may be required to make a deposit. 
(e) Amount of deposit and interest for permanent residential, commercial, and 
industrial service and exemption from deposit. 
(1) The required deposit shall not exceed an amount equivalent to one-sixth of 
the estimated annual billing. For local exchange telephone carriers the 
estimated annual billings shall include, in addition to the charges of the local 
exchange carrier, the carriage charges of interexchange carriers only where the 
local exchange carrier's tariff provides for billing for the interexchange 
carrier. In the event the appropriate federal authority prohibits inclusion of 
interstate charges in the determination of the deposit amount, or prohibits 
payment of interexchange carriage charges as a condition for local exchange 
service or as a reason for disconnection of local exchange service, intrastate 
carriage charges of an interexchange carrier shall not be included in the 
determination of the deposit amount. 
(A) During the first 12 months of service, an additional deposit may be 
requested prior to the issuance of a bill; 
(i) To require such deposit, the customer's actual usage must be three times 
estimated usage (or three times average usage of most recent three bills), and 
the customer's current usage must exceed $150, and the customer's current usage 
must exceed 150% of the security held; 
(ii) The request for such additional deposit must be issued in writing and must 
indicate that the customer may elect to pay the current usage in lieu of the 
additional deposit; 
(iii) The utility may disconnect service if the additional deposit or the 
current usage payment is not made within ten days of request provided a written 
disconnect notice has been issued to the customer. Such disconnect notice may be 
issued concurrently with the written request for the additional deposit or 
current usage payment. 
(B) If actual billings of a commercial customer are at least twice the amount of 
the estimated billings, and a suspension notice has been issued on a bill within 
the previous 12-month period, a new deposit may be required to be made within 15 
days after issuance of written notice of termination and requested additional 
deposit. If actual billings of a residential customer are at least twice the 
amount of the estimated billings after two billing periods, and a suspension 
notice has been issued on a bill within the previous 12- month period, a new 
deposit may be required to be made within 15 days after issuance of written 
notice of termination and requested additional deposit. In lieu of additional 
deposit, the customer may elect to pay the current bill by the due date of the 
bill, provided the customer has not exercised this option in the previous 12 
months. 
(2) All applicants for permanent residential service who are 65 years of age or 
older will be considered as having established credit if such applicant does not 
have an outstanding account balance within the utility or another utility for 
the same utility service which accrued within the last two years. No cash 
deposit shall be required of such applicant under these conditions. 
(3) Each utility which requires deposits to be made by its customers shall pay a 
minimum interest on such deposits at an annual rate at least equal to 6.0% 
compounded annually. If a refund of deposit is made within 30 days of receipt of 
deposit, no interest payment is required. If the utility retains the deposit 
more than 30 days, payment of interest shall be made retroactive to the date of 
deposit. 
(A) Payment of the interest to the customer shall be annually if requested by 
the customer, or at the time the deposit is returned or credited to the 
customer's account. 
(B) The deposit shall cease to draw interest on the date it is returned or 
credited to the customer's account. 
(4) Determining amount of deposit. In determining the amount of any deposit 
permitted by these rules, no revenue from estimated telephone directory 
advertising may be used. 
(5) In determining the amount of any deposit permitted by this section, charges 
for calls placed from combat or war zones, as designated by the federal 
government, by American military personnel that are billed to a telephone number 
in Texas may not be used. 
(6) An electric utility shall not charge an additional deposit for residential 
electric utility service if the customer, a spouse, or the head of the household 
is serving military duty in a combat or war zone, as designated by the federal 
government, or is a member of the reserve component who is serving military duty 
that is directly related to such hostilities, or if the customer is a party to a 
deferred payment plan with the utility under sec.23.46(m)(2) of this title 
(relating to Discontinuance of Service).
(f) Deposits for temporary or seasonal service and for weekend residences. The 
utility may require a deposit sufficient to reasonably protect it against the 
assumed risk for temporary or seasonal service, provided such policy is applied 
in a uniform and nondiscriminatory manner. The utility may require a deposit for 
weekend residences sufficient to reasonably protect it against the assumed risk, 
provided such policy is applied in a uniform and nondiscriminatory manner. These 
deposits shall be returned according to guidelines set out in subsection (j) of 
this section. 
(g) Complaint by applicant or customer. Each utility shall direct its personnel 
engaged in initial contact with an applicant or customer for service, seeking to 
establish or reestablish credit under the provisions of these sections, to 
inform the customer, if dissatisfaction is expressed with a utility's decision, 
of the customer's right to file a complaint with the commission thereon. 
(h) Re-establishment of credit. Every applicant who previously has been a 
customer of the utility and whose service has been discontinued for nonpayment 
of bills or meter tampering or bypassing of meter shall be required, before 
service is rendered, to pay all amounts due the utility or execute a deferred 
payment agreement, if offered, and reestablished credit as provided in 
subsection (a) of this section. The burden shall be on the utility to prove the 
amount of utility service received but not paid for and the reasonableness of 
any charges for such unpaid service, as well as all other elements of any bill 
required to be paid as a condition of service restoration.  
(i) Records of deposits. 
(1) The utility shall keep records to show: 
(A) the name and address of each depositor; 
(B) the amount and date of the deposit; and 
(C) each transaction concerning the deposit. 
(2) The utility shall issue a receipt of deposit to each applicant from whom a 
deposit is received and shall provide means whereby a depositor may establish 
claim if the receipt is lost. 
(3) A record of each unclaimed deposit must be maintained for at least four 
years, during which time the utility shall make a reasonable effort to return 
the deposit. 
(j) Refunding of deposits and voiding letters of guarantee.
(1) If service is not connected, or after disconnection of service, the utility 
shall promptly and automatically void and return to the guarantor all letters of 
guarantee on the account, or written documentation that the contract has been 
voided, or refund the customer's deposit plus accrued interest or the balance, 
if any, in excess of the unpaid bills for service furnished. A transfer of 
service from one premise to another within the service area of the utility shall 
not be deemed a disconnection within the meaning of these sections, and no 
additional deposit may be demanded unless permitted by these sections. 
(2) When the customer has paid bills for service for 12 consecutive residential 
billings or for 24 consecutive commercial or industrial billings without having 
service disconnected for nonpayment of bill and without having more than two 
occasions in which a bill was delinquent, and when the customer is not 
delinquent in the payment of the current bills, the utility shall promptly and 
automatically refund the deposit plus accrued interest to the customer in the 
form of cash or credit to a customer's bill, or void and return the guarantee, 
or written documentation that the contract has been voided. If the customer does 
not meet these refund criteria, the deposit and interest may be retained in 
accordance with subsection (c) of this section.
(k) Upon sale or transfer of utility or company. Upon the sale or transfer of 
any utility or operating units thereof, the seller shall file with the 
commission, under oath, in addition to other information, a list showing the 
names and addresses of all customers served by such utility or unit who have to 
their credit a deposit, the date such deposit was made, the amount thereof, and 
the unpaid interest thereon.

sec.23.45. Billing. 
(a)-(c) (No change.) 
(d) Deferred payment plan. A deferred payment plan is any arrangement or 
agreement between the utility and a customer in which an outstanding bill will 
be paid in installments that extend beyond the due date of the next bill. The 
utility shall offer a deferred payment plan to any residential customer, 
including a guarantor of any residential customer, who has expressed an 
inability to pay all of his or her bill, if that customer has not been issued 
more than two disconnection notices at any time during the preceding 12 months. 
In all other cases, the utility is encouraged to offer a deferred payment plan 
to residential customers. 
(1)-(9) (No change.) 
(e)-(f) (No change.) 
(g) Rendering and form of bills. 
(1) (No change.) 
(2) Electrical utilities. 
(A) (No change.) 
(B) The customer's bill shall individually identify and show all the following 
information: 
(i) if the meter is read by the utility, the date and reading of the meter at 
the beginning and at the end of the period for which the bill is rendered; 
(ii) the number and kind of units metered; 
(iii) the applicable rate schedule and title or code; 
(iv) the total amount due for services provided, including outstanding amounts 
in the same customer class the utility has chosen to transfer from a customer's 
prior delinquent account(s). Such transferred accounts shall not include 
continuation of service from one address to another within the same utility 
serving area; 
(v) the total amount due after addition of any penalty for nonpayment within a 
designated period. The terms "gross bill" and "net bill" or other similar terms 
implying the granting of a discount for prompt payment shall be used only when 
an actual discount for prompt payment is granted. The terms shall not be used 
when a penalty is added for nonpayment within a designated period; 
(vi) a distinct marking to identify an estimated bill; 
(vii) any conversions from meter reading units to billing units, or any other 
calculations to determine billing units from recording or other devices, or any 
other factors used in determining the bill; 
(viii) any amount owed under a written guarantee contract provided the guarantor 
was previously notified in writing by the utility as required by sec.23.43(c) of 
this title, (relating to guarantees of residential customer accounts); and, 
(ix) the information required in clauses (ii)-(v), and (vii) of this 
subparagraph shall be arranged so as to allow the customer to readily compute 
his bill with the applicable rate schedule which shall be mailed on request to 
the customer. Customer charges are to be identified separately on the 
residential customer's bill. 
(3) Past due balance. All rules pertaining to billing and disconnection of 
service shall apply to backbilling, with the exception of sec.23.45(b). 
(h)-(o) (No change.)

sec.23.46. Discontinuance of Service. 
(a)-(d) (No change.) 
(e) Disconnection prohibited. Utility service may not be disconnected for any of 
the following reasons: 
(1)-(3) (No change.) 
(4) failure to pay the account of another customer as guarantor thereof, unless 
the utility has a written agreement, signed by the guarantor, that allows for 
disconnection of the guarantor's service for nonpayment of the guaranteed 
amount. 
(5)-(7) (No change.) 
(f)-(n) (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 February 21, 1997.
TRD-9702552
Paula Mueller
Secretary of the Commission
Public Utility Commission
Effective date: March 14, 1997
Proposal publication date: December 6, 1996
For further information, please call: (512) 936-7152

16 TAC sec.23.49
The Public Utility Commission of Texas adopts an amendment to Substantive Rule 
sec.23.49, relating to Telephone Extended Area Service (EAS) and Expanded Toll-
free Local Calling Areas without changes to the proposed text as published in 
the November 22, 1996, issue of the Texas Register (21 TexReg 11342). The 
amendment is necessary to clarify that in considering whether a request for 
exemption from the requirements of the subsection under sec.23.49(c)(4) should 
be granted, the commission will look to the facts or circumstances existing on 
the date a petition for expanded local calling (ELC petition) is filed, rather 
than the date the exemption was filed. 
A public hearing on the amendment was held at commission offices on December 18, 
1996 at 10:00 a.m., however no comments were received. 
The commission received written comments on the proposed amendments from Texas 
Statewide Telephone Cooperative, Inc. (TSTCI). TSTCI opposed the amendment 
because of what it termed the "potential and harmful financial impact such an 
amendment could have on any future acquisition of property" by small, rural 
companies. TSTCI claimed that small, rural companies would be most affected by 
the amendment to the rule. TSTCI stated that they are particularly concerned 
with respect to the recent acquisitions of GTE Southwest, Inc. (GTE) exchanges 
by small telephone companies and cooperatives. 
GTE is not eligible for an exemption from ELC requirements under subsection 
(c)(4)(A)(i) and (ii) of the rule, but the rule does allow for a waiver request 
by small companies and cooperatives. This is a crucial consideration when 
estimating the value of an exchange because when the small companies entered 
into negotiations with GTE for purchase of the GTE exchanges, they expected that 
the opportunity to request an exemption from ELC would still be available to 
them. It is because the small company had counted on seeking a waiver from ELC 
that they included in the estimated value of the exchange an estimate for the 
revenue generated by intraLATA toll traffic. 
TSTCI stated that precedent was established in recent commission dockets that 
set out a "bright line" test for consideration of the facts of a case and that 
precedent established the relevant date as the date an exemption request was 
requested by the company. Therefore, TSTCI asserted, the companies were aware 
that petitions could be filed in the exchanges before the sales negotiations 
were completed (which TSTCI claimed could take up to a year), but the companies 
believed that they would then own the exchanges and that, in light of these 
recent orders by the commission, they could still request and be eligible for 
exemption from ELC. If the bright line is changed to the date that a petition is 
filed, then the exchanges would be considered GTE exchanges and, as such, not 
eligible for exemption. 
TSTCI stated that a further problem for the companies is that even though the 
value of the exchanges would be significantly reduced if ELC were implemented, 
the company may already be locked into the purchase. They explained that a 
company intending to purchase an exchange will issue a "Letter of Intent to 
Purchase" to a selling company and outline the details of the acquisition in an 
"Asset Purchase Agreement," which both parties sign. The buyer is then committed 
to the purchase pending FCC waiver approvals, which can take up to 12 months to 
obtain. Under this amendment, if a petition is filed in the exchange prior to 
FCC action, and ELC is implemented, the purchasing company may be left with an 
obligation to purchase an exchange now valued far less than originally expected. 
TSTCI went on to explain that the legislature requires a company to recover all 
of its costs incurred and all the lost revenue from the provision of expanded 
local calling and that smaller companies have a small customer base from which 
to recover the lost revenue. Therefore, they claimed that all the customers of 
the small companies, including those not receiving ELC, would have to bear a 
significant and unfair burden as a result of a mandatory ELC granted to the 
newly acquired exchanges. TSTCI stated that for this reason, and because the 
commission to date has not offered any other alternative for the financial 
recovery which is mandated by the Public Utility Regulatory Act of 1995 (PURA 
95) sec.3.304(a)(3)(A), they object to amending the rule to establish the date a 
petition is filed in an exchange as the date for commission consideration of ELC 
petitions; in fact, they propose that no bright line test be used at all. 
Further, TSTCI proposed that all ELC petitions filed which include exchanges 
involved in an acquisition where an Asset Purchase Agreement has been signed, be 
abated until such time as the purchase is finalized and closed. 
PURA 95 sec.3.304 was established by the legislature to address the needs of 
Texans who live in communities that are perhaps small and not entirely self-
contained such that various critical community services (schools, hospitals, 
local governments, business centers etc.) are geographically dispersed amongst 
surrounding towns and cities. These citizens may be disadvantaged as telephone 
consumers because they are required to make toll calls in order to contact their 
child's school or to make an appointment with their doctor whereas those 
customers living in larger communities take for granted that such calls are part 
of their basic local service. The legislature sought to correct this disparity 
by setting out a means by which all Texans could have local access to essential 
community services without unduly burdening either the customers or the local 
telephone company. 
The commission finds that the legislative intent evidenced by sec.3.304 must 
serve as guidance to any policy decision implementing the law, and therefore the 
expectations of the telecommunications customers shall inform the commission's 
decision in this matter. The law sets out a number of criteria for considering 
ELC petitions in sec.3.304(a)(2) of PURA95 and the commission is to utilize 
these criteria in determining a need for granting the petition. These enumerated 
conditions exist for the customers at the time a petition is filed and do not 
change irrespective of a change in ownership of the exchange. In other words, 
whatever hardships the customers experience from paying toll rates for calls to 
"local" community services remain no matter who owns the exchange. It is in 
consideration of the circumstances faced by the customer, circumstances that 
practically speaking do not change when the exchange is transferred to a new 
owner, that the commission adopts the bright line test date as the date the 
petition is filed. The commission recognizes that the law does not require 
cooperatives or incumbent local exchange companies with less than 10,000 lines 
to comply with sec.3.304. However, the customers in the exchange have a 
reasonable expectation of getting ELC if they have filed a complete petition and 
they should not lose that opportunity because of a sale that may or may not 
happen and may or may not happen outside of their knowledge and/or control.  
Since a company is required by law to recover revenue lost through ELC 
implementation, the financial burden on the customer base should be thoroughly 
assessed prior to entering into sales negotiations for an exchange where a 
petition may be filed. The commission strongly recommends that cooperatives and 
small incumbent local exchange companies apprise their members and customers of 
any impending purchase of an exchange that may receive ELC, including 
information regarding what financial impact such a purchase would have on both 
the company and the customers if ELC is implemented. 
As for the legal considerations involved when an agreement or contract to 
purchase has been signed, the commission suggests that companies involved in the 
purchase of an exchange where a petition may be filed prior to finalization of 
the sale, ensure that their contracts with the seller clearly consider the 
financial implications of ELC implementation should it be ordered. In this way, 
the company would have a more accurate representation of the value of the 
exchange no matter what happens with a proposed ELC application. 
The commission makes no changes to the rule based on TSTCI's comments.
This amendment is adopted under PURA 95 sec.1.101, which provides the commission 
with the authority to make and enforce rules reasonably required in the exercise 
of its powers and jurisdiction; and specifically, sec.3.304, which authorizes 
the commission to approve rules relating to expanded toll-free calling areas.
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 February 21, 1997.
TRD-9702551
Paula Mueller
Secretary of the Commission
Public Utility Commission
Effective date: March 14, 1997
Proposal publication date: November 22, 1996
For further information, please call: (512) 936-7152

TITLE 22. EXAMINING BOARDS
PART XXIII. Texas Real Estate Commission
CHAPTER 535. Provisions of the Real Estate License Act
Requirements for Licensure
22 TAC sec.535.51
The Texas Real Estate Commission adopts an amendment to sec.535.51, concerning 
general requirements for licensure, without changes to the proposed text as 
published in the January 3, 1997, issue of the Texas Register (22 TexReg 24). 
The amendment adopts by reference application forms used by persons applying for 
a real estate salesman or broker license or by prior licensees seeking another 
license. The forms have been revised to require the applicants to promise that 
they will not reveal the contents of the licensing examinations to other 
applicants. Adoption of the amendment helps to ensure the integrity of the 
examination process by maintaining the confidentiality of the contents of the 
examinations. 
No comments were received regarding the proposed amendment.
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties.
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 February 21, 1997.
TRD-9702559
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: March 14, 1997
Proposal publication date: January 3, 1997
For further information, please call: (512) 465-3900

22 TAC sec.535.63
The Texas Real Estate Commission adopts an amendment to sec.535.63, concerning 
education and experience requirements for real estate broker license applicants, 
without changes to the proposed text as published in the December 27, 1996, 
issue of the Texas Register (21 TexReg 12525). The amendment permits a person 
previously licensed as a real estate salesman to qualify for a broker license if 
the applicant can establish two years of experience in the seven year period 
prior to the filing of the application. Those applicants not previously licensed 
as brokers would continue to be subject to core real estate education 
requirements and a qualifying examination. Adoption of the amendment enables 
previously licensed salesmen to apply for a broker license without regard to the 
interruption of license status due to the economy or other reasons, satisfying 
the statutory two year experience requirement over a seven-year period. 
Two comments were received urging the commission to increase education 
requirements for former licensees returning to business after periods of 
inactivity. The commission determined that the existing education requirements, 
along with the examination required for applicants not previously licensed as 
brokers, are sufficient to measure competency, and declined to make the changes. 
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.24(g), 
which authorize the Texas Real Estate Commission to by rule provide for a waiver 
of some or all of the requirements for a license if the applicant was previously 
licensed within the five-year period prior to the filing of the application. 
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 February 19, 1997.
TRD-9702448
Mark A. Moseley
General Counsel
Texas Real Estate Commission 
Effective date: March 12, 1997
Proposal publication date: December 27, 1996
For further information, please call: (512) 465-3900

Licensed Real Estate Inspectors
22 TAC sec.535.208
The Texas Real Estate Commission adopts an amendment to sec.535.208, concerning 
application for an inspector license, without changes to the proposed text as 
published in the January 10, 1997, issue of the Texas Register (22 TexReg 590). 
The amendment adopts by reference three forms used by persons applying for a 
license as an apprentice inspector, real estate inspector or professional 
inspector. The application forms have been revised to require the applicant to 
provide a recent photograph and to promise not to reveal the contents of the 
commission's licensing examinations.
Language has also been added advising the applicant that if the applicant has 
defaulted on a student loan guaranteed by the Guaranteed Student Loan 
Corporation, state law prohibits the renewal of the license until the licensee 
has entered into a repayment agreement with the Texas Guaranteed Student Loan 
Corporation. On final adoption, the forms used by persons applying for an 
apprentice inspector license or for a real estate inspector license were further 
revised to provide space for the applicant to include a business address, since 
the applicant may work from a location different from the sponsoring 
professional inspector. These changes standardize the application forms used by 
the commission and ensure the integrity of the examination process. 
No comments were received regarding the proposed amendment.
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties.
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 February 21, 1997.
TRD-9702558
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: March 14, 1997
Proposal publication date: January 10, 1997
For further information, please call: (512) 465-3900

22 TAC sec.535.221
The Texas Real Estate Commission adopts an amendment to sec.535.221, concerning 
advertisements by inspectors licensed by the commission, without changes to the 
proposed text as published in the December 27, 1996, issue of the Texas Register 
(21 TexReg 12525). The amendment requires an apprentice inspector to include the 
apprentice's license number in the licensee's advertisements. Adoption of the 
amendment makes the advertising requirements consistent for all licensed 
inspectors and ensures that the consumers responding to the advertisements know 
the licensed status of an apprentice inspector. 
No comments were received regarding the adoption of the amendment.
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
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 February 19, 1997.
TRD-9702447
Mark A. Moseley
General Counsel
Texas Real Estate Commission 
Effective date: March 12, 1997
Proposal publication date: December 27, 1996
For further information, please call: (512) 465-3900

22 TAC sec.535.222
The Texas Real Estate Commission adopts an amendment to sec.535.222, concerning 
standards of practice for licensed inspectors, without changes to the proposed 
text as published in the December 27, 1996, issue of the Texas Register (21 
TexReg 12526). The amendment clarifies inspection requirements for water heater 
temperature and pressure relief valves and electric water heaters in garage 
locations. 
The amendment to sec.535.222(f)(2)(A)(xi)(IV) provides examples of conditions 
under which the inspector may reasonably determine that a water heater 
temperature and pressure relief valve should not be operated as part of an 
inspection, such as improper or undetermined termination of the drain pipe, 
corroded or damaged valve, improper installation of valve or drain pipe, drain 
pipe is of inappropriate material or lack of water supply cut-off valve at the 
unit. 
The amendment to sec.535.222(f)(2)(A)(xi)(X)(-b-) clarifies that both electric 
and gas water heaters are to be reported as in need of repair if either is not a 
minimum of 18 inches above the lowest garage floor elevation, as measured from 
the burners, burner ignition devices or heating elements, switches or 
thermostats. Adoption of the amendment clarifies the obligation of the inspector 
and provides greater protection for the public. 
Three comments were received from real estate licensees opposing the requirement 
contained in the section for inspectors to report specific conditions relating 
to water heaters as in need of repair. The commission determined that 
standardization of the inspection of these potentially dangerous conditions was 
appropriate, rather than permitting inspectors to express different opinions on 
the same condition which might be found in the home. 
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
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 February 19, 1997.
TRD-9702445
Mark A. Moseley
General Counsel
Texas Real Estate Commission 
Effective date: March 12, 1997
Proposal publication date: December 27, 1996
For further information, please call: (512) 465-3900

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 56.Family Planning
SUBCHAPTER A.Program Information
25 TAC sec.56.104
The Texas Department of Health (department) adopts an amendment to sec.56.104, 
concerning the Family Planning Advisory Council, without changes to the proposed 
text as published in the December 6, 1996, issue of the Texas Register (21 
TexReg 11724). 
The section covers members' terms of office and election of officers for the 
council. The amendment to sec.56.104(g) will make the term of office of the 
appointed representative of the Regional Coordinating Committee Chairpersons 
consistent with the two-year term of office of the elected Chairperson of the 
Regional Coordinating Committee. The amendment to sec.56.104(h) will enable 
newly appointed members of the council to participate in the election of 
officers at the council's first meeting each year. 
One comment from department staff was received concerning the proposed 
amendment. 
COMMENT: Concerning the statutory authority cited for the section as proposed 
refers to the board's authority to adopt substantive rules concerning family 
planning services under Health and Safety Code, Chapters 31, 32, and 61. The 
statutory authority for amendments to this section is specifically Texas Civil 
Statutes, Article 6252-33. 
RESPONSE: The department agrees and has amended the Adoption Preamble 
accordingly.
The amendment is adopted under Texas Civil Statutes, Article 6252-33, which sets 
standards for the evaluation of advisory committees by the agencies for which 
they function, and under Health and Safety Code, sec.12.001(b), which authorizes 
the board to adopt rules for the performance of every duty imposed by law upon 
the board, the department, and the commissioner of health.
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 February 18, 1997.
TRD-9702415
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 12, 1997
Proposal publication date: December 6, 1996
For further information, please call: (512) 458-7236

CHAPTER 61.Chronic Diseases
The Texas Department of Health (department) adopts the repeal of existing 
sec.sec.61.1 - 61.15, and new sec.sec.61.1 - 61.15, concerning kidney health 
care benefits. New sec.sec.61.2, 61.3, 61.6, and 61.8 are adopted with changes 
to the proposed text as published in the December 10, 1996, issue of the Texas 
Register (21 TexReg 11795). New sec.sec.61.1, 61.4, 61.5, 61.7, 61.9 - 61.15, 
and the repealed sec.sec.61.1-61.15 are adopted without changes, and therefore 
will not be republished. 
The sections establish general requirements (purpose, delegation of authority, 
and definitions); recipient requirements; residency and residency documentation 
requirements; application requirements; recipient co-pay liability; limitations 
and benefits provided; claims submission procedures and payment rates; claim 
filing deadlines; the criteria for participating facilities, participating 
pharmacies, and providers; procedures for notice of intent to take action and 
reconsideration; procedures for notice and fair hearing; rules governing the 
kidney health care advisory committee; forms to be used; a confidentiality 
statement; and a nondiscrimination statement. 
The rules will improve program accessibility and make eligibility criteria 
easier to comply with and understand. Decreasing the number of documents 
required for residency verification will simplify the application process, e.g., 
using on-line access to Medicaid information in lieu of requiring a copy of the 
applicant's Medicaid card. Extending the claim filing deadlines will increase 
the availability of benefits to recipients. Reimbursing recipients for allowable 
medication purchased at any Medicaid-approved pharmacy in the United States 
(instead of just those located in Texas) will enable recipients to obtain their 
drugs from mail order pharmacies, which in many cases are less expensive. 
Requiring Medicaid-eligible recipients to file Prograf and cyclosporine 
prescriptions with Medicaid will maximize federal funds and save state funds. 
The department is making the following minor changes due to staff comments to 
clarify the intent and improve the accuracy of the section. 
Change: Concerning adopted sec.61.2(a)(1), the term "licensed nephrologist" is 
incorrect. The language was corrected to reflect that a physician certifying a 
diagnosis of end-stage renal disease must be either board eligible or board 
certified in internal medicine, nephrology or pediatric nephrology. 
Change: Concerning adopted sec.61.3(c), two changes were made. Language was 
added to address instances where adult applicants are supported by children who 
live out-of-state. The phrase "is an adult lacking either physical or mental 
capacity to act on their own behalf and" was deleted because it was restrictive. 
The intent of this rule is to facilitate establishment of residency, regardless 
of the applicant's mental or physical capacity. 
Change: Concerning adopted sec.61.6(g)(1) and (2), the department moved (1) and 
(2) into the body of subsection (g) for clarification. 
Change: Concerning adopted sec.61.8(f), the department changed the filing 
deadline for resubmitted claims from 60 days to 180 days to be more consistent 
with Medicaid filing deadlines for resubmitted claims. 
The following comments were received concerning the proposed sections. Following 
each comment is the department's response and any resulting change(s).
Comment: One commenter was in favor of reducing the number and type of documents 
acceptable for proof of residency, but requested that a telephone bill be 
included as one of the acceptable documents. 
Response: The department agrees and appreciates the input. A telephone bill is 
considered a utility bill and would therefore be considered an acceptable 
document. 
Comment: One commenter supported requiring eligible patients to apply for 
Medicaid, but questioned what would serve as adequate proof that a patient was 
ineligible for Medicaid. 
Response: The department agrees and appreciates the input. Kidney Health Care is 
in the process of developing guidelines to assist providers and staff members in 
determining acceptable proof of a patient's ineligibility for Medicaid. 
Comment: One commenter supported Kidney Health Care requiring recipients to 
authorize KHC to pay their Medicare premiums; however it appeared the commenter 
thought KHC would pay Medicare premiums for all KHC recipients. 
Response: The department appreciates the input, but wishes to clarify that the 
proposed rule covers only those patients who are not eligible for premium-free 
Part A coverage. Those patients who are eligible for premium-free Part A, or 
whose premiums are covered by Medicaid, are not eligible for KHC to pay for 
their Part B premiums. 
One individual provided comments in favor of the rules; however, the commenter 
also expressed concerns, asked questions, and made recommendations. 

Kidney Health Care Program
25 TAC sec.sec.61.1-61.15
The repeals are adopted under the Texas Health and Safety Code, Chapter 42, 
which provides the department with the authority to adopt rules to provide 
adequate kidney care and treatment for the citizens of the State of Texas and to 
carry out the purposes and intent of the Texas Kidney Health Care Act; and 
sec.12.001 which provides the Texas Board of Health (board) with the authority 
to adopt rules for the performance of every duty imposed by law on the board, 
the department, and the commissioner of health.
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 February 18, 1997.
TRD-9702608
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 14, 1997
Proposal publication date: December 10, 1996
For further information, please call: (512) 458-7236

The new sections are adopted under the Texas Health and Safety Code, Chapter 42, 
which provides the department with the authority to adopt rules to provide 
adequate kidney care and treatment for the citizens of the State of Texas and to 
carry out the purposes and intent of the Texas Kidney Health Care Act; and 
sec.12.001 which provides the Texas Board of Health (board) with the authority 
to adopt rules for the performance of every duty imposed by law on the board, 
the department, and the commissioner of health.

sec.61.2.Recipient Requirements.
(a) A person shall meet all of the following requirements to be eligible for 
Kidney Health Care (KHC) benefits: 
(1) have a diagnosis of end-stage renal disease (ESRD) certified by a licensed 
physician who is board eligible or board certified in internal medicine, 
nephrology, or pediatric nephrology; 
(2) meet the Medicare criteria for ESRD; 
(3) be a resident of Texas as determined in sec.61.3 of this title (relating to 
Residency and Residency Documentation Requirements);
(4) submit an application for benefits through a participating facility; and 
(5) have, or the person(s) who has a legal obligation to support the applicant 
have, an adjusted gross income (AGI) of less than $60,000. Income reported as 
"joint income" is considered as one income and may not be divided in computing 
the recipient's co-pay liability. The person or persons who have a legal 
obligation to support the recipient will be determined by the applicable state 
law. 
(b) A recipient may have all KHC benefits modified, suspended or terminated for 
any of the following reasons: 
(1) failure to maintain Texas residency or, upon demand, furnish evidence of 
such using the criteria in sec.61.3 of this title (relating to Residency and 
Residency Documentation Requirements); 
(2) failure to provide income data as requested by the department to determine 
continued KHC eligibility and co-pay liability; 
(3) failure to reimburse the department as requested for overpayments made to 
the recipient; 
(4) failure to apply for medical, drug, and transportation benefits under Title 
XIX, Social Security Act (Medicaid), if the applicant meets income and other 
eligibility requirements for Medicaid; 
(5) failure to inform KHC within 30 days of changes in the following: 
(A) permanent home address; 
(B) treatment status; 
(C) insurance coverage; 
(D) location of treatment; 
(E) the round trip mileage from the recipient's permanent home address to the 
location of treatment; or 
(F) changes in income or financial qualifications which would affect either the 
recipient's eligibility or co-pay liability; 
(6) recipient is incarcerated in a city, county, state, or federal jail, or 
prison; 
(7) recipient regains kidney function or voluntarily stops treatment for ESRD; 
(8) recipient becomes a ward of the state; 
(9) KHC determines that the recipient has made a material misstatement or 
misrepresentation on their application or any document required to support their 
application; 
(10) KHC determines that the recipient has submitted false claim(s); or 
(11) KHC has not paid a claim for benefits on behalf of the recipient during any 
period of 12 consecutive months. 
(c) Any action taken under subsection (b) of this section does not release the 
recipient, or the person(s) with legal obligation to support the recipient, of 
any financial obligation owed to KHC. 
(d) A recipient may have a portion of their KHC benefits modified, suspended or 
terminated, or claim(s) denied for any of the following reasons:
(1) failure to receive services through participating facilities, pharmacies, 
and providers; 
(2) failure to submit claims for reimbursement within filing deadlines, as 
specified in sec.61.8 of this title (relating to Claim Filing Deadlines); 
(3) failure to apply for benefits under Title XVIII, Social Security Act 
(Medicare); 
(4) failure to continue premium payments on health insurance plans under 
Medicare, individual or group health insurance plans and prepaid medical plans, 
where eligibility was effective prior to KHC eligibility; or  
(5) failure to provide authorization for Medicare premium payments by KHC as 
specified in sec.61.6 of this title (relating to Limitations and Benefits 
Provided); if not eligible for Medicare premium-free hospitalization.
(e) In order to requalify for KHC, an applicant shall reapply and requalify for 
KHC benefits when eligibility for KHC benefits is terminated.
(f) A recipient who loses eligibility will not be reinstated until all 
outstanding debts owed to KHC by the recipient are paid or arrangements are made 
for payment. 
(g) A recipient whose benefits are modified, suspended or terminated, or whose 
claim(s) are denied, may appeal KHC's decision under the procedure contained in 
sec.61.10 of this title (relating to Notice of Intent to Take Action and 
Reconsideration) and sec.61.11 of this title (relating to Notice and Fair 
Hearing). 
(1) KHC may not terminate KHC participation until a final decision is rendered 
under the department's reconsideration and fair hearings process, if a 
reconsideration or hearing is requested by the recipient. 
(2) KHC may withhold payments on claims pending final decision under the 
department's reconsideration and fair hearings process.
(3) KHC shall release withheld payments and reinstate participation in KHC if 
the final determination is in the recipient's favor. 
sec.61.3.Residency and Residency Documentation Requirements. 

(a) The following conditions shall be met by an applicant and maintained by a 
recipient to satisfy the residency requirements in this section:
(1) physically reside within the State; 
(2) intend to remain in the State for an indefinite period of time; 
(3) maintain a home or dwelling within the State; and
(4) not claim residency in any other state or country.
(b) If the applicant is a minor child; a legal dependent of, and residing with, 
a resident (such as an adult child or spouse); or a person under a legal 
guardianship, then the parent or parent(s), resident providing support, or legal 
guardian of the applicant shall meet all of the requirements of subsection (a) 
of this section. 
(c) If the applicant is a parent residing with their adult child who is a 
resident of Texas, residency may be determined through the adult child. If the 
applicant is a parent being supported by their adult child, whether or not the 
child is a resident of Texas, the residency may be determined by the adult child 
providing the required documents supporting the Texas residency of the parent. 
These provisions apply even if no legal guardianship has been established. 
(d) All documents submitted to establish the residency of an applicant shall be 
in English or, if required by KHC, accompanied by an accurate English 
translation. 
(1) An applicant who is currently a Texas resident and has been currently 
approved to receive Texas Medicaid benefits is not required to provide 
additional residency verification. 
(2) An applicant, or person establishing residency for the applicant under 
subsections (b) and (c) of this section, may submit copies of any two of the 
following documents as evidence of residency. All documents shall be in the 
applicant's name, or in the name of the person establishing residency for the 
applicant, and provide some verification of a Texas address or domicile. Each of 
the following documents listed may only be counted once:
(A) a valid Texas driver's license, or an identification card issued by the 
Texas Department of Public Safety; 
(B) a valid Texas voter's registration card, or a copy of a validated (at the 
county clerk's office) application for a voter's registration card; 
(C) a current Texas motor vehicle registration or automobile license plate 
registration renewal form; 
(D) a mortgage payment receipt from any of the three months immediately 
preceding the date of the application; 
(E) a rent payment receipt from any of the three months immediately preceding 
the date of the application; 
(F) a notarized statement reflecting that the applicant is currently receiving 
rent-free housing. The statement must be signed by the individual providing the 
rent-free housing and must include the address and phone number of the 
individual providing the rent-free housing; 
(G) a utility payment receipt from any of the three months immediately preceding 
the date of the application; 
(H) a Texas property tax receipt for the most recently completed tax year; 
(I) a payroll or retirement check dated within the three months immediately 
preceding the date of the application; 
(J) employment/unemployment records prepared within the three months immediately 
preceding the date of the application; 
(K) a statement from a financial institution issued within the three months 
immediately preceding the date of the application; or 
(L) social security supplemental income or disability income records or social 
security retirement benefit records issued within the three months immediately 
preceding the date of application. 
(e) Applications submitted under subsections (b) and (c) of this section shall 
also include evidence of the legal relationship between the applicant and the 
resident, such as: 
(1) a marriage license or declaration of non-ceremonial marriage to document the 
marriage of the applicant and spouse; 
(2) a birth certificate establishing the parent/child relationship between the 
applicant and the resident; 
(3) a final order showing the appointment of the resident as guardian for the 
minor or adult ward; 
(4) a final order naming the applicant's managing conservator; or 
(5) an income tax return showing name and relationship of the applicant to the 
resident. 
(f) Any difference between the name of the applicant and the name on any 
document must be explained by additional documentation (Example: marriage 
license, divorce decree, or adoption decree). 

sec.61.6.Limitations and Benefits Provided.
(a) Benefits payable by Kidney Health Care (KHC) are as follows:
(1) out-patient drugs and drug products included on the KHC Reimbursable Drug 
List (available upon request from KHC, Texas Department of Health, 1100 West 
49th Street, Austin, Texas 78756); 
(2) covered transportation; 
(3) immunosuppressive drugs included on the KHC Reimbursable Drug List, except 
for cyclosporine and tacrolimus (Prograf) for Medicaid-eligible recipients; 
(4) access surgery (hospitalization, surgeon's fees, assistant surgeon's fees, 
anesthesiologist' fees, Certified Registered Nurse Anesthetist fees); 
(5) transplant surgery (hospitalization, surgeon's fees, assistant surgeon's 
fees, anesthesiologist' fees, Certified Registered Nurse Anesthetist fees, 
kidney acquisition charges); 
(6) out-patient chronic maintenance dialysis treatments;
(7) in-patient chronic maintenance dialysis treatments (excluding treatment for 
emergency/acute dialysis); and 
(8) Medicare Part A and B premiums, if qualified. To qualify for this benefit, 
recipients: 
(A) cannot be eligible for: 
(i) "premium free" Part A coverage; or 
(ii) Medicaid to pay their Medicare premiums; 
(B) shall apply and be accepted for Medicare hospital and medical insurance; 
(C) shall sign a Medicare agreement which allows KHC to make Medicare premium 
payments in their behalf; and 
(D) shall promptly submit all Medicare premium due notice statements to KHC for 
payment. 
(b) All KHC benefits are limited to services received in Texas except for: 
(1) covered services received from a participating out-of-state facility; and 
(2) drugs listed on the KHC reimbursable drug list and purchased from any 
pharmacy licensed to operate within the United States and its territories. 
(c) Depending on the recipient's eligibility status, KHC will pay for covered 
services up to a maximum allowable amount per recipient based upon: 
(1) available funds; 
(2) established limits for covered services by type or category; 
(3) any contract between the department and the recipient's participating 
facility; 
(4) a contract between the department and the recipient's participating 
provider; 
(5) the reimbursement rates established by the department;
(6) the co-pay liability rates as established by the department; and 
(7) any third-party liability. 
(d) Access surgery benefits are payable only if the services were performed not 
more than 365 days prior to KHC receipt of a completed application or the date 
Texas residency was established, whichever is later.
(e) KHC medical benefits are payable during the Medicare three-month qualifying 
period to recipients who do not have Medicare coverage. The three-month 
qualifying period shall be calculated from the first day of the month the 
recipient begins chronic maintenance dialysis. If a recipient becomes eligible 
for Medicare during the three-month period, KHC medical benefits shall not be 
payable from the date of Medicare eligibility. Recipients who apply for and are 
denied Medicare coverage or who receive a transplant during the three-month pre-
Medicare qualifying period are not subject to KHC's pre-Medicare benefit 
maximum.
(f) Limited medical benefits are available beyond the qualifying period for non-
Medicaid eligible recipients who have applied for and have been denied Medicare 
coverage based on ESRD. Recipients shall submit a copy of an official Social 
Security Administration Medicare denial notification (based on chronic renal 
disease) to the department. Transplant patients who have been successfully 
transplanted for three years or more are not eligible for limited medical 
benefits. 
(g) KHC is payor of last resort. Benefits are payable only after all third 
parties or government entities (e.g., private/group insurance, Medicare, 
Medicaid, or the Veterans Administration) have met their liability. All third 
parties must be billed prior to KHC. If the recipient's third party coverage has 
a liability equal to or greater than the KHC allowable rates, KHC will not be 
liable for payment. Recipients eligible for hospital and medical benefits from 
Medicare, Medicaid, the Veterans Administration, the military, or other 
government programs are not eligible to receive KHC medical benefits. The Texas 
Board of Health (Board) has delegated to the Commissioner of Health 
(Commissioner) the authority to waive this requirement in individually 
considered cases where its enforcement will deny services to a class of end-
stage renal disease (ESRD) patients because of conflicting state or federal laws 
or regulations, under the Texas Health and Safety Code, Chapter 42, sec.42.009.
(h) The department may restrict or categorize covered services to meet budgetary 
limitations. Categories will be prioritized based upon medical necessity, other 
third party eligibility and projected third party payments for the different 
treatment modalities, caseloads, and demands for services. Caseloads and demands 
for services may be based on current and/or projected data. In the event covered 
services must be reduced, they will be reduced in a manner that takes into 
consideration medical necessity and other third party coverage. The department 
may change covered services by adding or deleting specific services, entire 
categories or by making changes proportionally across a category or categories, 
or by a combination of these methods.

sec.61.8.Claim Filing Deadlines.
(a) Claims shall be received by Kidney Health Care (KHC) within the claim filing 
deadlines established in this section. Claims which are not received by KHC 
within the deadlines established in this section shall not be considered for 
payment. 
(b) Hospital claims for in-patient services shall be received by KHC the later 
of: 
(1) 95 days from the date of discharge; 
(2) 60 days from the date on the third party explanation of benefits (EOB); or 
(3) 60 days from the date on the KHC notice of eligibility.
(c) Claims for services from newly contracted facilities shall be received by 
KHC the later of : 
(1) 95 days from the last day of the month in which services were provided; 
(2) 60 days from the date on the third party EOB; 
(3) 60 days from the date on the KHC notice of eligibility; or 
(4) 60 days from the date on the contract approval letter.
(d) All other claims shall be received by KHC the later of:
(1) 95 days from the last day of the month in which services were provided; 
(2) 60 days from the date on the third party EOB; or 
(3) 60 days from the date on the KHC notice of eligibility.
(e) Claims submitted under subsections (b), (c), and (d) of this section shall 
be received by KHC no later than 180 days from the date of discharge or the date 
of service. Claims which are incomplete or incorrect will not be paid until they 
are completed or corrected. 
(f) Resubmitted claims shall be received by KHC within the deadlines established 
under subsections (b), (c), (d), and (e) of this section, or within 180 days 
from the date of the KHC return letter or third party EOB, whichever is later, 
not to exceed 365 days from the date of service.
Resubmitted claims shall: 
(1) be resubmitted with a copy of the KHC return letter or EOB; 
(2) be resubmitted on the original claim form; and 
(3) contain no new or additional charges for service.
(g) Claims which have been denied or reduced in error may be resubmitted to KHC 
for reconsideration. All resubmitted claims shall be received by KHC within 365 
days from the date services were rendered. A copy of the KHC EOB, or other 
supporting documents, shall be included with the resubmitted claim. 
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 February 18, 1997.
TRD-9702609
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 14, 1997
Proposal publication date: December 10, 1996
For further information, please call: (512) 458-7236

CHAPTER 229.Food and Drug Licensure of Manufacturers of Food and Wholesale 
Distributors of Food Including Good Manufacturing Practices
25 TAC sec.229.181, sec.229.182
The Texas Department of Health (department) adopts amendments to sec.229.181 and 
sec.229.182, concerning licensure of manufacturers of food and wholesale 
distributors of food - including good manufacturing practices. Sections 229.181 
and 229.182 are being adopted without changes to text proposed in the November 
22, 1996, issue of the Texas Register (21 Tex Reg 11354); however, a correction 
of error was published in the December 20, 1996 issue of the Texas Register (21 
Tex Reg 12330) to correct minor errors. The sections will not be republished. 
These amended sections consolidate and establish new license fees for wholesale 
food distributors that also distribute drugs or devices (multiple product 
distributors) regulated under Health and Safety Code, Chapter 431. The 
amendments also expand the license fee schedule for firms that only distribute 
food (food wholesalers) from three to five categories, and adjust the fees to 
redistribute the cost of the inspection program. 
The amendments create more efficient licensing procedures and less confusion for 
multiple product distributors and reduce licensure fees for small business by 
consolidating the license requirements for multiple product distributors. No 
comments were received regarding adoption of the amendments
The amendments are adopted under the Health and Safety Code, sec.431.241, which 
provides the department with the authority to adopt necessary regulations 
pursuant to the enforcement of this Chapter; and sec.12.001, which provides the 
Texas Board of Health (board) with the authority to adopt rules for the 
performance of every duty imposed by law on the board, the department, and the 
commissioner of health.  
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 February 18, 1997.
TRD-9702413
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 12, 1997
Proposal publication date: November 22, 1996
For further information, please call: (512) 458-7236

Licensing of Wholesale Distributors of Drugs-Including Good Manufacturing 
Practices
25 TAC sec.sec.229.251-229.253
The Texas Department of Health (department) adopts amendments to sec.sec.229.251 
- 229.253, concerning licensing of wholesale distributors of drugs - including 
good manufacturing practices. Sections 229.252 and 229.253 are adopted with 
changes to the proposed text as published in the November 15, 1996, issue of the 
type-name="italic">Texas Register (21 TexReg 11159). Section 229.251 is adopted 
without changes and therefore will not be republished. 
Specifically, the sections cover definitions; licensing fee and procedures; and 
minimum standards for licensure. The amendments define the term "manufacturer" 
to clarify and conform the rules to Title 21, Code of Federal Regulations 
(CFRs), Part 205, 210, and 211; establish a new license fee category for 
distributors of more than one product regulated under Health and Safety Code, 
Chapter 431; replace the term "volume" with the term "drug sales"; and update 
the referenced CFRs to the current issue. 
The amendments create more efficient licensing procedures and less confusion for 
multiple product distributors and reduce licensure fees for small business by 
consolidating the license requirements for multiple product distributors. No 
comments were received regarding the proposal of these rules; however, minor 
editorial changes have been made to clarify the rules. 
The amendments are adopted under Health and Safety Code, sec.431.241, which 
provides the department with the authority to adopt necessary regulations 
pursuant to the enforcement of this Chapter; and sec.12.001, which provides the 
Texas Board of Health (board) with the authority to adopt rules for the 
performance of every duty imposed by law on the board, the department, and the 
commissioner of health. 

sec.229.252.Licensing Fee and Procedures.
(a) License fee. 
(1) All wholesale distributors of drugs who are not manufacturers of drugs in 
Texas shall obtain a license annually with the Texas Department of Health 
(department). Except as provided for in paragraph (2) of this subsection, 
wholesale distributors of drugs who are not manufacturers of drugs in Texas 
shall pay a licensing fee for each place of business operated as follows:
(A) $250 per distributor engaged in distribution only of compressed medical 
gases (no transfilling operations) having gross annual drug sales of $0 - 
$20,000; 
(B) $400 per wholesale distributor having gross annual drug sales of $0 - 
$199,999.99; 
(C) $650 per wholesale distributor having gross annual drug sales of $200,000 - 
$19,999,999.99; 
(D) $850 per wholesale distributor having gross annual drug sales greater than 
or equal to $20 million; and 
(E) $750 per out-of-state wholesale distributor, unless an audited statement is 
provided which demonstrates gross annual drug sales of less than $20 million 
which would require a licensing fee of $500. 
(2) A wholesale distributor of drugs who is not a manufacturer of drugs, who is 
required to be licensed under this section and who is also required to be 
licensed as a device distributor under sec.229.439(a)(1) of this title (relating 
to Licensure Fees) or as a wholesale food distributor under sec.229.182(a)(3) of 
this title (relating to Licensing Fee and Procedures) shall pay a combined 
licensure fee for each place of business. The licensure fee shall be based on 
the combined gross annual sales of these regulated products (foods, drugs, 
and/or devices) as follows: 
(A) $200 for each place of business having combined gross annual sales of $0-
$199,999.99; 
(B) $300 for each place of business having combined gross annual sales of 
$200,000 - $499,999.99; 
(C) $400 for each place of business having combined gross annual sales of 
$500,000 - $999,999.99; 
(D) $500 for each place of business having combined gross annual sales of $1 
million - $9,999,999.99; and 
(E) $750 for each place of business having combined gross annual sales greater 
than or equal to $10 million. 
(3) All wholesale distributors of drugs who are manufacturers of drugs in Texas 
shall obtain a license annually with the department and shall pay a licensing 
fee for each place of business operated as follows:
(A) $400 per wholesale distributor having gross annual drug sales of $0 - 
$199,999.99 (includes a compressed and/or liquid medical gas transfiller); 
(B) $650 per wholesale distributor having gross annual drug sales of $200,000 - 
$19,999,999.99; and 
(C) $850 per wholesale distributor having gross annual drug sales greater than 
or equal to $20 million. 
(b) License forms. Licensing forms may be obtained from the Texas Department of 
Health, Drugs and Medical Devices Division, 1100 West 49th Street, Austin, Texas 
78756. 
(c)-(h) (No change.) 
(i) Sale of food, drugs, or devices. The provisions of this section regarding 
the sale of food, drugs, or devices shall be considered to include the 
manufacture, production, processing, packaging, exposure, offer, possession, and 
holding of any such article for sale; and the sale, dispensing, and giving of 
any such article, and the supplying or applying of any such articles in the 
conduct of any food, drug or device place of business.  

sec.229.253.Minimum Standards for Licensure.
(a) (No change.) 
(b) Current good manufacturing practices in manufacturing, processing, packing, 
or holding of drugs. 
(1) The department adopts by reference Title 21, Code of Federal Regulations, 
Part 210, sec.sec.210.1 - 210.3, titled "Current Good Manufacturing Practices in 
Manufacturing, Processing, Packing, or Holding of Drugs"; and Part 211, 
sec.sec.211.1 - 211.208, titled "Current Good Manufacturing Practice for 
Finished Pharmaceuticals". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(c) Guidelines for licensing of wholesale drug distributors.
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations, Part 205, sec.sec.205.1 - 205.50, titled "Guidelines for 
State Licensing of Wholesale Prescription Drug Distributors".
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(3)-(4) (No change.) 
(d) Buildings and facilities. All manufacturing, processing, packing, or holding 
of drugs shall take place in buildings and facilities described in Title 21, 
Code of Federal Regulations, Part 211, Subpart C. No manufacturing, processing, 
packing, or holding of drugs shall be conducted in any personal residence. 
(e) Drug labeling. 
(1) (No change.) 
(2) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations, Part 201, sec.sec.201.1 - 201.317, titled "Labeling". 
(3) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(f) Drugs general, drug advertising, specific requirements for special drugs, 
official names and established names, and labeling and packaging requirements 
for controlled substances. 
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations: 
(A) Part 200, sec.sec.200.5 - 200.200, titled "General";
(B) Part 202, sec.202.1, titled "Prescription Drug Advertising";
(C) Part 250, sec.sec.250.10 - 250.250, titled "Special Requirements For 
Specific Human Drugs"; 
(D) Part 299, sec.sec.299.3 - 299.5, titled "Drugs; Official Names and 
Established Names"; and 
(E) Part 1302, sec.sec.1302.01 - 1302.08, titled "Labeling and Packaging 
Requirements For Controlled Substances". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th, Austin, Texas 78756 and 
are available for inspection during normal working hours. 
(g) Current good manufacturing practices in manufacturing, processing, packing, 
or holding of blood and blood components. 
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations, Part 606, sec.sec.606.3 - 606.170, titled "Current Good 
Manufacturing Practice For Blood and Blood Components". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(h) General biological products standards, standards for bacterial products, 
standards for viral vaccines, standards for human blood and blood products, 
standards for diagnostic substances for dermal test, standards for diagnostic 
substances for laboratory test, and standards for miscellaneous biological 
products. 
(1) The department adopts by reference Title 21, Code of Federal Regulations: 
(A) Part 600, sec.sec.600.3 - 600.15, titled "Biological Products: General"; 
(B) Part 610, sec.sec.610.1 - 610.65, titled "General Biological Products 
Standards"; 
(C) Part 620, sec.sec.620.1 - 620.48, titled "Additional Standards For Bacterial 
Products"; 
(D) Part 630, sec.sec.630.1 - 630.75, titled "Additional Standards For Viral 
Vaccines"; 
(E) Part 640, sec.sec.640.1 - 640.114, titled "Additional Standards for Human 
Blood and Blood Products"; 
(F) Part 650, sec.sec.650.1 - 650.15, titled "Additional Standards for 
Diagnostic Substances for Dermal Test"; 
(G) Part 660, sec.sec.660.1 - 660.105, titled "Additional Standards for 
Diagnostic Substances for Laboratory test"; and 
(H) Part 680, sec.sec.680.1 - 680.26, titled "Additional Standards for 
Miscellaneous Products". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(i) Labeling and standard requirements for the manufacturing or processing of 
animal biological products. 
(1) The department adopts by reference and will enforce Title 9, Code of Federal 
Regulations, Part 113, sec.sec.113.1 - 113.455, titled "Standard Requirements". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(j) Cosmetic labeling for a person, firm, or corporation that labels a cosmetic. 
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations, Part 701, sec.sec.701.1 - 701.30, titled "Cosmetic 
Labeling". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(k) Cosmetics general and cosmetic product warning statement.
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations, Part 700, sec.sec.700.3 - 700.25, titled "General"; and 
Part 740, sec.sec.740.1-740.18, titled "Cosmetic Product Warning Statements". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(l) Current good manufacturing practices in manufacturing, processing, packing, 
or holding of medicated feeds and Type A medicated articles.
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations: 
(A) Part 225, sec.225.1 - sec.225.202, titled "Current Good Manufacturing 
Practice For Medicated Feeds"; and 
(B) Part 226, sec.sec.226.1 - 226.115, titled "Current Good Manufacturing 
Practices For Type A medicated articles". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(m) Over-the-Counter (OTC) for human use. 
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations: 
(A) Part 300, titled "General"; 
(B) Part 310, titled "New Drugs"; 
(C) Part 312, titled "Investigational New Drug Application";
(D) Part 314, titled "Applications for FDA Approval to Market a New Drug or an 
Antibiotic Drug"; 
(E) Part 316, titled "Orphan Drugs"; 
(F) Part 320, titled "Bioavailability and Bioequivalence Requirements";
(G) Part 329, titled "Habit-forming Drugs"; 
(H) Part 330, titled "Over-the-Counter (OTC) Human Drugs Which are Generally 
Recognized as Safe and Effective and Not Misbranded"; 
(I) Part 331, titled "Antacid Products for Over-the-Counter (OTC) Human Use"; 
(J) Part 332, titled "Antiflatulent Products for Over-the-Counter (OTC) Human 
Use"; 
(K) Part 333, titled "Topical Antimicrobial Drug Products for Over-the-Counter 
(OTC) Human Use"; 
(L) Part 336, titled "Antiemetic Drug Products for Over-the-Counter (OTC) Human 
Use"; 
(M) Part 338, titled "Nighttime Sleep-aid Drug Products for Over-the-Counter 
(OTC) Human Use"; 
(N) Part 340, titled "Stimulant Drug Products for Over-the-Counter (OTC) Human 
Use"; 
(O) Part 341, titled "Cold, Cough, Allergy, Bronchodilator, and Anti-asthmatic 
Drug Products for Over-the-Counter (OTC) Human Use"; 
(P) Part 344, titled "Topical OTIC Drug Products for Over-the-Counter (OTC) 
Human Use"; 
(Q) Part 346, titled "Anorectal Drug Products for Over-the-Counter (OTC) Human 
Use"; 
(R) Part 348, titled "External Analgesic Drug Products for Over-the-Counter 
(OTC) Human Use"; 
(S) Part 349, titled "Ophthalmic Drug Products for Over-the-Counter (OTC) Human 
Use"; 
(T) Part 357, titled "Miscellaneous Internal Drug Products for Over-the-Counter 
(OTC) Human Use"; 
(U) Part 358, titled "Miscellaneous External Drug Products for Over-the-Counter 
(OTC) Human Use"; 
(V) Part 361, titled "Prescription Drugs for Human Use Generally Recognized as 
Safe and Effective and Not Misbranded: Drugs Used In Research"; and 
(W) Part 369, titled "Interpretative Statements Re: Warnings on Drugs and 
Devices for Over-the-Counter Sales". 
(2) (No change.) 
(3) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
(n) Packaging, labeling, tests and methods of assays for human antibiotic drugs. 
(1) The department adopts by reference and will enforce Title 21, Code of 
Federal Regulations: 
(A) Part 429, titled "Drugs Composed Wholly or Partly of Insulin";
(B) Part 430, titled "Antibiotic Drugs; General"; 
(C) Part 431, titled "Certification of Antibiotic Drugs";
(D) Part 432, titled "Packaging and Labeling of Antibiotic Drugs"; 
(E) Part 433, titled "Exemptions from Antibiotic Certification and Labeling 
Requirements"; 
(F) Part 436, titled "Tests and Methods of Assay of Antibiotic and Antibiotic-
containing Drugs"; 
(G) Part 440, titled "Penicillin Antibiotic Drugs"; 
(H) Part 441, titled "Penem Antibiotic Drugs"; 
(I) Part 442, titled "Cepha Antibiotic Drugs"; 
(J) Part 444, titled "Oligosaccharide Antibiotic Drugs"; 
(K) Part 446, titled "Tetracycline Antibiotic Drugs"; 
(L) Part 448, titled "Peptide Antibiotic Drugs"; 
(M) Part 449, titled "Antifungal Antibiotic Drugs"; 
(N) Part 450, titled "Antitumor Antibiotic Drugs"; 
(O) Part 452, titled "Macrolide Antibiotic Drugs"; 
(P) Part 453, titled "Lincomycin Antibiotic Drugs"; 
(Q) Part 455, titled "Certain Other Antibiotic Drugs"; and
(R) Part 460, titled "Antibiotic Drugs Intended for Use in Laboratory Diagnosis 
of Disease". 
(2) Copies are indexed and filed in the office of the Drugs and Medical Devices 
Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756 
and are available for inspection during normal working hours. 
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 February 18, 1997.
TRD-9702412
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 12, 1997
Proposal publication date: November 15, 1996
For further information, please call: (512) 458-7236

Licensure of Device Distributors and Manufacturers
25 TAC sec.229.439
The Texas Department of Health (department) adopts an amendment to sec.229.439, 
concerning the licensure of device distributors and manufacturers. Section 
229.439 is being adopted without changes to the proposed text as published in 
the November 22, 1996, issue of the Texas Register (21 TexReg 11357); however, a 
correction of error was published in the December 20, 1996, issue of the Texas 
Register (21 TexReg 12330) to correct minor errors. The section will not be 
republished. 
The section covers license fees. The amendment revises and updates licensure fee 
schedules for device distributors and manufacturers to allow the department to 
recover the costs of inspection and administration of the program. 
The amendment establishes a new fee schedule for distributors of more than one 
product regulated under Health and Safety Code, Chapter 431, and creates more 
efficient licensing procedures and less confusion for multiple product 
distributors. 
No comments were received regarding adoption of the amendment.
The amendment is adopted under Health and Safety Code, sec.431.241, which 
provides the department with the authority to adopt necessary regulations 
pursuant to the enforcement of this Chapter; and sec.12.001, which provides the 
Texas Board of Health (board) with the authority to adopt rules for the 
performance of every duty imposed by law on the board, the department, and the 
commissioner of health. 
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 February 18, 1997.
TRD-9702414
Susan K. Steeg
General Counsel
Texas Department of Health
Effective date: March 12, 1997
Proposal publication date: November 22, 1996
For further information, please call: (512) 458-7236

TITLE 30. ENVIRONMENTAL QUALITY
PART I. Texas Natural Resource Conservation Commission 
CHAPTER 106.Exemptions from Permitting
The commission adopts new sec.106.5, concerning Public Notice and Comment 
Procedures; sec.106.101 and sec.106.103, concerning Domestic and Comfort Heating 
and Cooling; sec.sec.106.121-106.124, concerning Analysis and Testing; 
sec.sec.106.141-106.150, concerning Aggregate and Pavement; sec.sec.106.161-
106.163, concerning Animal Confinement; sec.106.182, concerning Ceramic Kilns; 
sec.sec.106.201-106.203, concerning Concrete Batch Plants; sec.sec.106.221-
106.229, concerning Manufacturing; sec.sec.106.241-106.245, concerning Food 
Preparation and Processing; sec.sec.106.261-106.266, concerning General; 
sec.sec.106.281-106.283, concerning Feed, Fiber, and Fertilizer (Feed); 
sec.106.291, concerning Feed, Fiber, and Fertilizer (Cotton Gin Stands); 
sec.106.301 and sec.106.302, concerning Feed, Fiber, and Fertilizer  
(Fertilizer); sec.sec.106.311-106.322, concerning Metallurgy; sec.sec.106.331-
106.333, concerning Mixers, Blenders, and Packaging; sec.sec.106.351-106.355, 
concerning Oil and Gas; sec.sec.106.371-106.375, concerning Plant Operations; 
sec.sec.106.391-106.396, concerning Plastics and Rubber; sec.sec.106.411-
106.419, concerning Service Industries; sec.sec.106.431-106.436, concerning 
Surface Coating; sec.sec.106.451-106.454, concerning Surface Preparation; 
sec.sec.106.471-106.478, concerning Tanks, Storage, and Loading; 
sec.sec.106.491-106.496, concerning Thermal Control Devices; sec.106.511 and 
sec.106.512, concerning Turbines and Engines; and sec.sec.106.531-106.534, 
concerning Waste Processes and Remediation.  
Section 106.532 is adopted with changes to the proposed text as published in the 
December 17, 1996, issue of the Texas Register (21 TexReg 12055). The remaining 
sections are adopted without changes and will not be republished.  
EXPLANATION OF ADOPTED RULES. In concurrent rulemaking, the commission is 
adopting the repeal of sec.116.211, concerning Standard Exemption List, and 
sec.116.212, concerning Public Notice and Comment Procedures. 
The standard exemptions are placed in Chapter 106 and organized under facility 
type with no substantial change to the content of the exemptions. Minor 
corrections have been made to the language of some exemptions for clarity. 
Under the previous organization of standard exemptions, revisions to the list 
could only be initiated when sec.116.211 was not already open for changes. This 
means the section had to go through an entire rulemaking cycle before it could 
be re-opened, delaying timely amendment of the standard exemptions. The purpose 
of this adoption is to provide greater flexibility in amending the exemptions by 
placing each exemption in a separate section which can be opened and amended as 
necessary. 
TAKINGS IMPACT ASSESSMENT. The commission has prepared a Takings Impact 
Assessment for these new sections under Texas Government Code, sec.2007.043. The 
following is a summary of that assessment. The specific purpose of the new 
sections is to provide greater flexibility and responsiveness in amending the 
exemptions. The new sections advance this purpose by placing the exemptions in 
Chapter 106 with each exemption corresponding to a section. This will allow each 
section to be amended without being restricted by the rulemaking schedule of 
another exemption. Promulgation and enforcement of the new sections will not 
affect private real property that is the subject of the new sections.
PUBLIC HEARING. A public hearing on the proposal was held January 15, 1997, in 
Austin. There were no oral comments presented during the hearing. The United 
States Environmental Protection Agency (EPA) and CITGO Petroleum Corporation 
(CITGO) submitted written comments during the comment period, which closed on 
January 16, 1997. Both supported the proposal with modifications. 
The EPA views the standard exemptions as a form of general permit and recommends 
that Chapter 106 be submitted as a revision to the State Implementation Plan 
(SIP). 
This adoption is an administrative modification to the standard exemptions and 
no substantive changes are being made. For this reason, the repeal of 
sec.116.211 and sec.116.212 and the new sections of Chapter 106 will not be 
submitted as a SIP change during this rulemaking. The commission will examine 
the issues associated with submitting sec.116.211 and sec.116.212 and the new 
sections of Chapter 106 as a SIP revision for later actions involving exemptions 
from permitting. 
CITGO states that a reference in sec.106.532(1)(N) is incomplete and should 
contain paragraph references to eliminate possible confusion. 
The commission agrees with the comments and has made the appropriate changes.

SUBCHAPTER A.General Requirements
30 TAC sec.106.5
STATUTORY AUTHORITY. The new sections 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, and sec.382.057, which gives the commission authority to 
create exemptions from permitting. 
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 19, 1997.
TRD-9702602
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER C. Domestic And Comfort Heating And Cooling 
30 TAC sec.106.101, sec.106.103 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702600
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER D. Analysis And Testing 
30 TAC sec.sec.106.121-106.124 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702599
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER E. Aggregate And Pavement 
30 TAC sec.sec.106.141-106.150 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.  
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 19, 1997.
TRD-9702598
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER F.Animal Confinement
30 TAC sec.sec.106.161-106.163 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.
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 19, 1997.
TRD-9702597
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER G.Combustion
30 TAC sec.106.182 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702596
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER H. Concrete Batch Plants 
30 TAC sec.sec.106.201-106.203 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702595
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER I. Manufacturing 
30 TAC sec.sec.106.221-106.229 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702594
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER J. Food Preparation and Processing 
30 TAC sec.sec.106.241-106.245 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702593
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER K.General
30 TAC sec.sec.106.261-106.266
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702603
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER L. Feed, Fiber, and Fertilizer
Feed
30 TAC sec.sec.106.281-106.283
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702592
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

Fiber
30 TAC sec.106.291
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.
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 19, 1997.
TRD-9702591
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

Fertilizer 
30 TAC sec.106.301, sec.106.302 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702590
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER M. Metallurgy 
30 TAC sec.sec.106.311-106.322 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.
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 19, 1997.
TRD-9702589
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER N. Mixers, Blenders, and Packaging 
30 TAC sec.sec.106.331-106.333 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702588
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER O. Oil and Gas 
30 TAC sec.sec.106.351-106.355 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702587
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER P. Plant Operations 
30 TAC sec.sec.106.371-106.375 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.
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 19, 1997.
TRD-9702586
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER Q. Plastics and Rubber 
30 TAC sec.sec.106.391-106.396 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702585
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER R. Service Industries 
30 TAC sec.sec.106.411-106.419 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702584
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER S. Surface Coating 
30 TAC sec.sec.106.431-106.436 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702583
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER T. Surface Preparation 
30 TAC 30 TAC sec.sec.106.451-106.454 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.
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 19, 1997.
TRD-9702582
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER U. Tanks, Storage, and Loading 
30 TAC sec.sec.106.471-106.478 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702581
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER V. Thermal Control Devices 
30 TAC sec.sec.106.491-106.496 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting.  
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 19, 1997.
TRD-9702580
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER W. Turbines and Engines 
30 TAC sec.106.511, sec.106.512 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 
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 19, 1997.
TRD-9702579
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

SUBCHAPTER X. Waste Processes and Remediation 
30 TAC sec.sec.106.531-106.534 
The new sections 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, 
and sec.382.057, which gives the commission authority to create exemptions from 
permitting. 

sec.106.532. Water and Wastewater Treatment (Previously SE 61).
Water and wastewater treatment units are exempt, provided the following 
conditions of this section are met. 
(1) The facility performs only the following functions: 
(A) disinfection; 
(B) softening; 
(C) filtration; 
(D) flocculation; 
(E) stabilization; 
(F) taste and odor control; 
(G) clarification; 
(H) carbonation; 
(I) sedimentation; 
(J) neutralization; 
(K) chlorine removal; 
(L) activated sludge treatment, anaerobic treatment, and associated control of 
gases from these treatments; 
(M) aerobic oxidation/biodegration using oxygen or peroxide in the absence of 
nitrogen or other gas that would cause stripping of volaltile organic compounds 
(VOC) from the water; 
(N) stripping VOC, ammonia, or other air contaminants from the water with air or 
other gas, provided the stripped gases are controlled with an abatement system 
that meets the requirements of sec.106.533(5) of this title (relating to Water 
and Soil Remediation (Previously SE 68(e)). For ammonia or hydrogen chloride 
(HCl) or other acid gas emissions, abatement may include a water or caustic 
scrubbing system as a means of complying with this section. Final emissions of 
HCl resulting from combustion of chlorine or chlorine-containing compounds shall 
not exceed 0.1 pounds per hour; 
(O) liquid phase separation of VOC and water in which: 
(i) the sum of the partial pressures of all species of VOC in any sample is less 
than 1.5 psia; or 
(ii) the separator is enclosed and emissions are vented through an emission 
abatement system meeting the requirements specified previously for stripped VOC 
and ammonia; 
(2) Chlorine or sulfur dioxide (SO2) shall be used only in containers approved 
by the United States Department of Transportation and emissions of chlorine or 
SO2 from treatment of water or decontamination of equipment at any water 
treatment plant shall not exceed ten tons per year.
(3) The following shall not be exempted by this section:
(A) gas stripping or aeration facilities where VOC or other air contaminants are 
stripped from water directly to the atmosphere; 
(B) disposal facilities using land surface treatment; 
(C) surface facilities associated with injection wells;  
(D) cooling towers in which VOC or other air contaminants may be stripped to the 
atmosphere.
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 19, 1997.
TRD-9702578
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

CHAPTER 116. Control of Air Pollution by Permits for New Construction or 
Modification 
SUBCHAPTER C. Permit Exemptions 
30 TAC sec.116.211, sec.116.212 
The commission adopts the repeal of sec.116.211, concerning Standard Exemption 
List and sec.116.212, concerning Public Notice and Comment Procedures, without 
changes to the proposed text as published in the December 17, 1996, issue of the 
Texas Register (21 TexReg 12055). 
EXPLANATION OF ADOPTED RULES. In concurrent rulemaking, the commission is 
adopting the requirements of the repealed sections into Chapter 106 with no 
substantial changes. 
TAKINGS IMPACT STATEMENT. The commission has prepared a Takings Impact 
Assessment for this adoption under Texas Government Code, sec.2007.043. The 
following is a summary of that assessment. The specific purpose of the repeals 
and the concurrent amendments to Chapter 106 is to provide greater flexibility 
and responsiveness in amending the exemptions. This action advances this purpose 
by placing the exemptions into Chapter 106 with each exemption corresponding to 
a section. This will allow each section to be amended without being restricted 
by the rulemaking schedule of another section. Promulgation and enforcement of 
these repeals will not affect private real property. 
PUBLIC HEARING AND COMMENTERS. A public hearing on the proposal was held January 
15, 1997, in Austin. There were no oral comments presented during the hearing. 
The United States Environmental Protection Agency and CITGO Petroleum 
Corporation submitted written comments during the comment period, which closed 
on January 16, 1997. Both supported the proposal. 
STATUTORY AUTHORITY. The repeals 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 19, 1997.
TRD-9702601
Kevin McCalla
Director, Legal Division
Texas Natural Resource Conservation Commission
Effective date: March 14, 1997
Proposal publication date: December 17, 1996
For further information, please call: (512) 239-1966

TITLE 31. NATURAL RESOURCES AND CONSERVATION
PART II. Texas Parks and Wildlife Department
CHAPTER 57.Fisheries
Expiration Provision
31 TAC sec.57.901
The Texas Parks and Wildlife Commission in a regularly scheduled public hearing, 
January 23, 1997, adopted repeal of sec.57.901 concerning expiration provision 
for regulations in 31 TAC Chapter 57, (concerning Fisheries) without changes to 
proposed text as published in the December 20, 1996 issue of the Texas Register 
(21 TexReg 12291).
Existing sec.57.901 was adopted by the Commission as a statement of intent 
relative to complete regulations sunset of 31 TAC, Chapter 57, Fisheries. As a 
result of actions taken at the November 7, 1996 Commission meeting, the 
regulations sunset of Chapter 57 was completed. These actions rendered 
sec.57.901 as redundant.
The repeal removes redundant sections from the Texas Administrative Code. 
No comments were received regarding the adopted repeal.
The repeal is adopted under Government Code, sec.sec.2001.021-2001.052.
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 February 19, 1997.
TRD-9702479
William D. Harvey, Ph.D.
Regulatory Coordinator
Texas Parks and Wildlife Department
Effective date: March 12, 1997
Proposal publication date: December 20, 1996
For further information, please call: 1-800-792-1112, Extension 4642 or (512) 
389-4642

TITLE 34. PUBLIC FINANCE
PART II. Texas State Treasury
CHAPTER 16.Electronic Transfer of Payments to the Texas State Treasury 
Department
34 TAC sec.16.1, sec.16.3
The Comptroller of Public Accounts adopts an amendment to sec.16.1 and new 
sec.16.3, concerning the electronic transfer of payments, with changes to the 
proposed text as published in the August 20, 1996, issue of the Texas Register 
(21 TexReg 7787). 
The rules are consistent with changes to Texas Government Code, sec.404.095 and 
are needed to clarify the requirements for the electronic transfer of payments 
(EFT) for cigarette tax stamps to the Comptroller of Public Accounts.
A change was made to sec.16.1 to add the word "former" when referencing the 
Texas State Treasury Department due to implementation of Senate Bill 20, 74th 
Legislature, 1995, which transferred the duties of the former state treasurer to 
the office of the comptroller.  
No comments were received regarding adoption of the sections.  
The amendment and new section are adopted pursuant to Texas Government Code, 
sec.404.095 which provides the Comptroller the authority to adopt rules 
regarding electronic funds transfer.  
The Tax Code, Chapter 154, is affected by this amendment and new rule.

sec.16.1.Adoption by Reference.
These rules shall adopt and incorporate by reference all of the provisions of 
the former Texas State Treasury Department, sec.sec.15.1 et seq., Chapter 15 of 
this title (relating to Electronic Transfer of Certain Payments to State 
Agencies) which were adopted pursuant to the Texas Government Code, sec.404.095 
(Vernon Supplement 1996).

sec.16.3.Cigarette Tax Stamp Payments 
(a) All persons purchasing cigarette tax stamps from the Texas State Treasury or 
its successors shall transfer payments by electronic funds transfer. 
(b) Electronic funds transfer of payments for cigarette tax stamps shall not be 
subject to the payment thresholds described in sec.16.2, of this title (relating 
to Applicability). 
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 February 19, 1997.
TRD-9702513
Martin Cherry
Chief, General Law Section
Comptroller of Public Accounts 
Effective date: March 13, 1997
Proposal publication date: August 20, 1996
For further information, please call: (512) 463-3699