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

TITLE 1. ADMINISTRATION
PART XV. Health and Human Services Commission
CHAPTER 355.Medicaid Managed Care
SUBCHAPTER G.Telemedicine Services
1 TAC sec.355.7001
The Health and Human Services Commission proposes new sec.355.7001, concerning 
the reimbursement for telemedicine services for the Medicaid Program. House Bill 
2386 and House Bill 2017 directed the Health and Human Services Commission to 
establish a system for reimbursing providers of services performed using 
telemedicine. The new Subchapter G, which contains the new section sec.355.7001, 
sets forth definitions related to telemedicine in sec.355.7001(a). The new 
sec.355.7001(b) establishes reimbursement for the attending provider for 
evaluation and management services and for the consulting provider for 
consultation services in accordance with existing Medicaid reimbursement 
methodology. It also stipulates that providers seeking reimbursement for 
telemedicine services must adhere to reimbursement and medical policies adopted 
by the Texas Department of Health for telemedicine services. This new section 
provides definitions, a description of services approved for reimbursement, and 
requirements of providers claiming reimbursement for services performed using 
telemedicine.
Mr. Steve Svadlenak, Director of Medicaid Reimbursement, has determined that for 
the first five-year period the section is in effect, there will be no net fiscal 
implications as a result of administering the new section. The use of 
telemedicine will result in an increase in expenditures due to the reimbursement 
for attending providers but will also result in a decrease in expenditures for 
medical transportation costs. Savings may also result because of earlier 
interventions that telemedicine may effectively provide by allowing clients in 
rural and medically underserved areas to access services more quickly and 
conveniently. The anticipated use of telemedicine is unknown; telemedicine 
networks are only beginning to be developed in the state. Providers must also 
cover hardware, software, and transmission costs. There will be no fiscal impact 
for local governments. 
Mr. Svadlenak has also determined that for the first five-year period the 
section is in effect, the public benefit anticipated as a result of enforcing 
the section will be improved access to health care services for eligible 
recipients. There will be no costs to small businesses or persons complying with 
the section as proposed. There will be no impact on local employment. 
Comments may be submitted to Linda K. Wertz at the Texas Health and Human 
Services Commission, 4900 North Lamar Boulevard, Austin, Texas 78751, (512) 424-
6517. Comments will be accepted for 30 days following publication of this 
proposal in the Texas Register. In addition, a public hearing on the proposed 
sections will be held at 9:00 A.M. on February 19, 1998, in the HHSC Public 
Hearing Room located in the Brown Heatley Building at 4900 North Lamar 
Boulevard, Austin, Texas. Parking will be available at the Texas Department of 
Human Services complex, 701 West 51st Street.
The new rule is proposed under the Texas Government Code, Chapter 531, 
sec.531.033, which authorizes the Commissioner of Health and Human Services to 
adopt rules necessary to carry out the Health and Human Services Commissioner's 
duties under Chapter 531; and under Texas Government Code, sec.531.021, which 
provides the commission with the authority to administer federal medical 
assistance funds.
The new rule implements Government Code, sec.531.021 and Human Resources Code, 
sec.sec.32.001-32.047.

sec.355.7001.Telemedicine Services.
(a) Definitions. The following words and terms, when used in this chapter, will 
have the following meanings, unless the context clearly indicates otherwise. 
(1) Telemedicine - A method of health care service delivery used to facilitate 
medical consultations by physicians to health care providers in rural or 
underserved areas for purposes of patient diagnosis or treatment that require 
advanced telecommunications technologies, including interactive video 
consultation, teleradiology, and telepathology. 
(2) Rural - Area defined as a county with a population of less than 50,000. 
(3) Underserved - Area that meets the definition of Medically Underserved Area 
(MUA) or Medically Underserved Population (MUP) by the U.S. Department of Health 
and Human Services. 
(4) Hub Site Provider - A physician at an accredited medical school, or a 
physician at one of the following entities affiliated with an accredited medical 
school: hospitals, teaching hospitals, tertiary centers, or health clinics. The 
hub site physician will provide consultation and diagnosis, and may develop the 
patient's plan of care and treatment.
(5) Remote Site Provider - A health professional, such as a physician or 
advanced nurse practitioner, that is able to independently bill the Medicaid 
Program, or a Federally Qualified Health Center or Rural Health Clinic. Remote 
site providers must be located in rural or underserved areas. The remote site 
provider is responsible for carrying out or coordinating the plan of care and 
treatment after consulting with the hub site provider.
(b) Reimbursement for Services Performed Using Telemedicine
(1) Hub site providers can bill for consultation services provided using 
telemedicine. Remote site providers can bill for evaluation and management 
services provided using telemedicine. 
(2) Telemedicine services are reimbursed in accordance with the existing 
Medicaid reimbursement methodology. 
(3) Providers seeking reimbursement for telemedicine services must provide and 
bill for the service in the manner prescribed by the Texas Department of Health. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 26, 1998.
TRD-9801122
Marina Henderson
Executive Deputy Commissioner
Health and Human Services Commission
Earliest possible date of adoption: March 9, 1998
For further information, please call: (512) 424-6576

TITLE 16. ECONOMIC REGULATION
PART II. Public Utility Commission of Texas
CHAPTER 22.Practice and Procedure
SUBCHAPTER O.Rulemaking
16 TAC sec.sec.22.281, 22.282, 22.284
The Public Utility Commission of Texas proposes amendments to sec.22.281, 
relating to Initiation of Rulemaking; sec.22.282, relating to Notice and Public 
Participation in Rulemaking Procedures; and sec.22.284, relating to Informal 
Information Gathering. The proposed amendments to sec.22.281, will remove the 
reference to the position of secretary of the commission in subsection (a)(2), 
as this function is no longer performed by the secretary, and correct references 
to Texas Register procedures. The amendment to subsection (b) will clarify 
commission procedures. The proposed amendments to sec.22.282, will provide the 
commission with more flexibility in rulemaking procedures; ensure that public 
hearings are requested in a timely manner in order to allow the commission to 
fully review and consider all public comment; and conform subsection (e) with 
sec.22.71(h)(1) of this title (relating to Filing of Pleadings and Other 
Materials). The proposed amendment to sec.22.284 is to clarify commission 
policy. Project Number 18484 has been assigned to these proposed amendments.
Paula Mueller, deputy chief, Office of Regulatory Affairs, has determined that 
for each year of the first five-year period the proposed sections are in effect 
there will be no fiscal implications for state or local government as a result 
of enforcing or administering the sections. 
Ms. Mueller also has determined that for each year of the first five years the 
proposed sections are in effect the public benefits anticipated as a result of 
enforcing the sections will be more clearly stated commission procedural 
requirements and ensuring that the commission receives all public comment in 
time to fully consider it in the rulemaking process. There will be no effect on 
small businesses as result of enforcing these sections. There is no anticipated 
economic cost to persons who are required to comply with the sections as 
proposed. Ms. Mueller also has determined that for each year of the first five 
years the proposed sections are in effect there will be no impact on employment 
in the geographical area affected by implementing the requirements of the 
section. 
Comments on the proposed amendments (16 copies) may be submitted to the Filing 
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 
13326, Austin, Texas 78711-3326, within 30 days after publication. The 
Appropriations Act of 1997, HB 1, Article IX, Section 167 requires that each 
state agency review and consider for readoption each rule adopted by that agency 
pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). 
Such reviews shall include, at a minimum, an assessment by the agency as to 
whether the reason for adopting or readopting the rule continues to exist. The 
commission invites specific comments regarding whether the reason for adopting 
these rules continues to exist in considering these proposed amendments. All 
comments should refer to Project Number 18484. 
These amendments are proposed under the Public Utility Regulatory Act, Texas 
Utilities Code Annotated sec.14.002 and sec.14.052 (Vernon 1998) (PURA), 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 sec.14.002 and 
sec.14.052. 

sec.22.281. Initiation of Rulemaking. 
(a) Petition for Rulemaking. Any interested person may petition the commission 
requesting the adoption of a new rule or the amendment of an existing rule. 
(1) (No change.) 
(2) Upon receipt of a petition for rulemaking, the [secretary of the] commission 
shall submit a notice for publication in the <nl>"In Addition"<ol> 
[miscellaneous documents] section of the Texas Register. The notice shall 
include a summary of the petition, the name of the individual, organization or 
entity that submitted the petition, and notification that a copy of the petition 
will be available for review and copying in the commission's central records. 
Comments on the petition shall be due three weeks from the date of publication 
of the notice. Failure to publish a notice of a petition for rulemaking in the 
Texas Register shall not invalidate any commission action on the petition for 
rulemaking. 
(3) (No change.) 
(b) Commission Initiated Rulemaking. The commission may initiate rulemaking 
proceedings on its own motion [or on the motion of the commission general 
counsel]. Nothing in this section shall preclude the [commission general counsel 
or] commission staff from consideration or development of new rules or 
amendments to existing rules without express direction from the commission. 

sec.22.282.Notice and Public Participation in Rulemaking Procedures. 
(a)-(b) (No change.) 
(c) Public Comments. Prior to the adoption of any rule, the commission shall 
afford all interested persons reasonable opportunity to submit data, views, or 
arguments in writing. Written comments must be filed within 30 days of the date 
the proposed rule is published in the Texas Register unless the commission 
establishes a <nl>different<ol> [later] date for submission of comments. The 
commission may also establish a schedule for reply comments if it determines 
that additional comments would be appropriate or helpful in reaching a decision 
on the proposed rule.
(d) Public Hearing. The commission may schedule workshops or public hearings on 
the proposed rule. <nl>An<ol> [In the case of substantive rules,] opportunity 
for public hearing shall be granted if requested by at least 25 persons, by a 
governmental subdivision or agency, or by an association having at least 25 
members. <nl>The request for public hearing must be made no later than 30 days 
after the date the proposed rule is published in the Texas Register, unless the 
commission establishes a different date for requesting a public hearing.<ol> 
(e) Staff Recommendation. Staff's final recommendation shall be submitted to the 
commission and filed in central records at least <nl> six<ol> [seven] days prior 
to the date on which the commission is scheduled to consider the matter, unless 
some other date is specified by the commission. Staff will notify all persons 
who have filed comments concerning the proposed rule of the filing of staff's 
final recommendation. 
(f) Final Adoption. [During the Open Meeting at which the commission considers 
the proposed rule for final action, the commission may allow interested persons 
to present oral comments in response to the staff's final recommendation.] 
Following consideration of comments, the commission will issue an order 
adopting, adopting as amended, or withdrawing the rule within six months after 
the date of publication of the proposed rule or the rule is automatically 
withdrawn. 

sec.22.284.Informal Information Gathering. 
(a) The commission, <nl>or<ol> [the general counsel, and] the commission staff 
may use informal conferences and consultations as a means of obtaining the 
viewpoints and advice of interested persons concerning a contemplated 
rulemaking. 
(b) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 20, 1998.
TRD-9800862
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 936-7308

TITLE 22. EXAMINING BOARDS
PART XVII. Plumbing Examiners
CHAPTER 365.Renewals
22 TAC sec.365.5
The Texas State Board of Plumbing Examiners proposes an amendment to sec.365.5. 
This section specifies that a medical gas license holder must take at least two 
additional hours of medical gas continuing education to renew their medical gas 
endorsement. The amendment states that individuals with a medical gas 
endorsement must take Board approved continuing education within the three-year 
period of their medical gas endorsement and that the license holder may not 
count the same continuing education class twice towards meeting the requirements 
for renewal of the medical gas endorsement. 
Jim Fowler, Chief Fiscal Officer, Texas State Board of Plumbing Examiners, has 
determined that for the first five-year period the rule is in effect there will 
be no effect to state or local government as a result of enforcing the rule. 
Mr. Fowler also has determined that each year of the first five years the rule 
is in effect the change in public benefit will be a higher quality of plumbers 
performing medical gas work. There will be no effect on small businesses. There 
is no anticipated economic cost to persons who are required to comply with the 
rule. 
Comments may be submitted to Gilbert Kissling, Administrator, Texas State Board 
of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin 78765-4200. 
The amendment to sec.365.5 is proposed under and effect Texas Revised Civil 
Statutes Annotated Article 6243-101, sec.5(a) and sec.12B (Vernon Supp. 1998). 
No other statute, article, or code is affected by this proposed amendment. The 
proposed amendment has been reviewed by legal counsel and found to be within the 
state agency's authority to adopt.

sec.365.5.Renewals.
(a)-(e) (No change.)
(f) Any license holder with a medical gas endorsement must <nl> complete a Board 
approved medical gas continuing education class within the three-year period<ol> 
[take at least two additional classroom hours of continuing education within the 
third year] of the endorsement [period]. The [additional] classroom hours shall 
consist of instruction of the most current edition of the <nl>National Fire 
Protection Association (NFPA) 99C, Standard on Gas and Vacuum Systems, and the 
changes therein. No license holder with a medical gas endorsement may count the 
same medical gas continuing education class twice towards meeting the continuing 
education requirements for renewal of the medical gas endorsement on a plumbing 
license<ol> [NFPA99C and the changes therein]. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 23, 1998.
TRD-9801063
Robert L. Maxwell
Chief of Field Services/Investigations
Plumbing Examiners
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 458-2145, Ext. 233

PART XXII. Texas State Board of Public Accountancy
CHAPTER 501.Professional Conduct
22 TAC sec.501.47
The Texas State Board of Public Accountancy proposes an amendment to sec.501.47, 
concerning Firm Names. The proposed amendment to sec.501.47 lists character or 
grade of service as being misleading if included in a firm's name when not based 
upon verifiable facts; states that if a firm name includes a geographic area or 
a non-owner firm employee's name it may be misleading or deceptive if full 
disclosure of relevant facts is not made; states that a firm name which implies 
special expertise is intended or likely to create false or unjustified 
expectations of favorable results; clarifies that limited liability partnerships 
and companies must include that as part of their firm names; and states that at 
least two licensees must be involved full time in the practice in order to use 
company, group or associates. 
William Treacy, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering this rule. 
Mr. Treacy also has determined that during the first five-year period the rule 
is in effect the anticipated public benefit as a result of enforcing or 
administering the rule will be increased disclosure and more accurate disclosure 
to the public through the firm name. There is no effect on small businesses. 
There is no anticipated economic cost to persons required to comply with the 
section as proposed. 
Comments on the proposal may be submitted to Amanda Birrell, General Counsel, 
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701-3900. 
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6, 
which provides the Texas State Board of Public Accountancy with the authority to 
make such rules as may be necessary or advisable to effectuate the purposes of 
the law. 
The rule implements Texas Civil Statutes, Article 41a-1, sec.6. 

sec.501.47.Firm Names.
(a) No certificate or registration holder shall engage in the practice of public 
accountancy using a [professional or] firm name [or designation] that includes 
descriptive words relating to the quality of services offered or that is 
misleading about the legal form of the firm, or about the persons who are 
partners, officers, or shareholders of the firm, or about any other matter, 
provided, however, that names of one or more former partners or shareholders may 
be included in the name of a firm or its successor. 
(b) A [professional or] firm name [or designation] will be considered to be 
misleading if: 
(1) the name contains a misrepresentation of facts; 
<nl>(2)<ol> <nl>the name indicates character or grade of service which is not 
based upon verifiable facts; <ol>
<nl>(3)<ol> [(2)] the name is likely to mislead or deceive because it fails to 
make full disclosure of relevant facts;<nl> the following are examples, but are 
not inclusive:<ol> 
<nl>(A)<ol> <nl>the name contains a geographic area; and <ol>
<nl>(B)<ol> <nl>the firm name includes a non-owner firm employee. <ol>
<nl>(4)<ol> [(3)] the name is intended or likely to create false or unjustified 
expectations of favorable results;
<nl>(5)<ol> [(4)] the name implies special expertise; 
(6) the name implies educational or professional attainment or licensing 
recognition of the firm and/or of its owners, partners, or shareholders which 
are not supported in fact;
<nl>(7)<ol> [(5)] the name of the firm that is incorporated does not include the 
words "corporation," "incorporated," "professional corporation," or "company," 
or in each case, an abbreviation thereof, as a part of the firm name; [and] the 
words "professional corporation," or "PC" are not included with the firm name 
each time it is used; <nl>and the name of a firm organized under the limited 
liability partnership rules does not include the words "professional limited 
liability company" or " professional limited liability partnership" as 
appropriate, or an abbreviation thereof as part of the firm name; <ol> 
<nl>(8)<ol> [(6)] the name includes the designation "and company," "company," 
[or] <nl>"group,"<ol>[or] "associates" or "and associates" or abbreviations 
thereof <nl> or similar names implying more than one employed member of the 
firm<ol> unless there are at least two licensees involved <nl>full time<ol> in 
the practice; 
<nl>(9)<ol> [(7)] the name of a firm that is a partnership or professional 
corporation fails to contain the personal name or names of one or more 
individuals presently or previously a partner, officer, or shareholder thereof; 
<nl>(10)<ol> [(9)] the name of a firm that is a sole proprietorship fails to 
contain the name of the sole proprietor; or 
<nl>(11)<ol> [(10)] the name contains other representations or implications that 
in reasonable probability will cause a person of ordinary prudence to 
misunderstand or be deceived. 
(c) A partner surviving the death or withdrawal of all other partners may 
continue to practice under a partnership name for up to two years after becoming 
a sole practitioner. 
(d) The name of any former partner or former shareholder may not be used in a 
registered firm name during the period of sanction when the former partner or 
former shareholder has been prohibited from practicing public accountancy or 
prohibited from using the title "CPA" or "PA". 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 23, 1998.
TRD-9801104
William Treacy
Executive Director
Texas State Boad of Public Accountacy
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 305-7845

CHAPTER 511.Certification of CPA
22 TAC sec.511.57
The Texas State Board of Public Accountancy proposes an amendment to sec.511.57, 
concerning Definition of Accounting Courses. 
The proposed amendment to sec.511.57 includes up to six semester hours of 
management information systems as an accounting core course and adds up to 12 
hours of management information systems as another accounting course.
William Treacy, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering this rule. 
Mr. Treacy also has determined that during the first five-year period the rule 
is in effect the anticipated public benefit as a result of enforcing or 
administering the rule will be the recognition that some courses being taken by 
applicants are important enough to be included in required courses. There is no 
effect on small businesses. There is no anticipated economic cost to persons 
required to comply with the section as proposed. 
Comments on the proposal may be submitted to Amanda Birrell, General Counsel, 
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701-3900. 
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6, 
which provides the Texas State Board of Public Accountancy with the authority to 
make such rules as may be necessary or advisable to effectuate the purposes of 
the law. 
The rule implements Texas Civil Statutes, Article 41a-1, sec.6.

sec.511.57.Definition of Accounting Courses.
The board will accept not fewer than 30 passing semester hours of accounting 
courses (without repeat), taken at a recognized educational institution shown on 
official transcripts, or accepted by a recognized educational institution for 
purposes of obtaining a baccalaureate degree or its equivalent, of which 20 
semester hours must be in core accounting courses, in the following subject 
areas: 
(1) accounting core courses: 
(A) intermediate accounting, advanced accounting; 
(B) cost accounting; 
(C) auditing, internal accounting control and evaluation; 
(D) report writing (principally writing financial reports, internal control 
reports, and management letters); 
(E) financial statement analysis; 
(F) accounting theory; 
(G) up to six semester hours of income tax; 
(H) accounting for governmental and/or other nonprofit organizations; and 
(I) <nl>up to six semester hours of<ol> accounting systems<nl>, including 
management information systems<ol>; 
(2) other accounting courses: 
(A) income tax accounting (not to exceed 12 semester hours, including hours in 
paragraph (1)(G) of this section);
<nl>(B)<ol> <nl>accounting systems, including management information systems 
(not to exceed 12 semester hours, including hours in paragraph (1)(I) of this 
section);<ol> 
<nl>(C)<ol> [B] accounting consultation; 
<nl>(D)<ol> [(C)] accounting for specialized businesses or industries (such as 
fiduciaries, banks, etc.); 
<nl>(E)<ol> [(D)] an accounting internship program (not to exceed 3 semester 
hours) which meets the following requirements:
(i) the accounting knowledge gained is equal to or greater than the knowledge 
gained in a traditional accounting classroom setting;
(ii) the employing firm provides the faculty coordinator and the student with 
the objectives to be met during the internship; 
(iii) the internship is approved by the faculty advisor; 
(iv) the employing firm provides a significant accounting work experience with 
adequate training and supervision of the work performed by the student; 
(v) the employing firm provides an evaluation of the student at the conclusion 
of the internship, provides a letter describing the duties performed and the 
supervision to the student, and provides a copy of the documentation to the 
faculty coordinator and the student; 
(vi) the student keeps a diary comprising a chronological list of all work 
experience gained in the internship;
(vii) the student writes a paper demonstrating the knowledge gained in the 
internship; and 
(viii) the student and/or faculty coordinator provides evidence of all items 
upon request by the board; 
<nl>(F)<ol> [(E)] any other course which is principally accounting or auditing 
in nature but which may be designated by some other name (and the verification 
of which is obtained in writing from the particular college or university). 
After the November 1997 examination, elementary accounting may not be considered 
under this title. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 23, 1998.
TRD-9801105
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 305-7845

CHAPTER 527.Quality Review
22 TAC sec.527.3
The Texas State Board of Public Accountancy proposes an amendment to sec.527.3, 
concerning Definitions. 
The proposed amendment to sec. 527.3 adds "Special Reports" to the definitions. 
Special reports is listed under sec. 527.4 of this title (relating to Quality 
Review Program) as a type of practice or activity which would make one subject 
to Quality Review. 
William Treacy, Executive Director, has determined that for the first five-year 
period the rule is in effect there will be no fiscal implications for state or 
local government as a result of enforcing or administering this rule. 
Mr. Treacy also has determined that during the first five-year period the rule 
is in effect the anticipated public benefit as a result of enforcing or 
administering the rule will be an improved understanding of the applicability of 
the Quality Review Program. There is no effect on small businesses. There is no 
anticipated economic cost to persons required to comply with the section as 
proposed.
Comments on the proposal may be submitted to Amanda Birrell, General Counsel, 
333 Guadalupe, Tower III, Suite 900, Austin, Texas, 78701-3900. 
The amendment is proposed under Texas Civil Statutes, Article 41a-1, sec.6, 
which provides the Texas State Board of Public Accountancy with the authority to 
make such rules as may be necessary or advisable to effectuate the purposes of 
the law, and sec.15B, which authorizes the board to enact rules for the Quality 
Review Program.
The rule implements Texas Civil Statutes, Article 41a-1, sec.6 and sec.15B.

sec.527.3. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise.
<nl>Special reports<ol><nl>-Include reports issued in connection with the 
following:<ol>
<nl>(A)<ol> financial statements that are prepared in conformity with a 
comprehensive basis of accounting other than generally accepted accounting 
principles;
<nl>(B)<ol> specified elements, accounts, or items of a financial statement; 
<nl>(C)<ol> compliance with aspects of contractual agreements or regulatory 
requirements related to audited financial statements; 
<nl>(D)<ol> financial presentations to comply with contractual agreements or 
regulatory provisions;
<nl>(E)<ol> financial informationpresented in prescribed forms or schedules that 
require a prescribed form of auditor's reports; and 
<nl>(F)<ol> internal audits by a firm for a client or a governmental entity. 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 23, 1998.
TRD-9801108
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 305-7845

TITLE 25. HEALTH SERVICES
PART I. Texas Department of Health
CHAPTER 13.Health Planning and Resource Development
Data Collection
25 TAC sec.sec.13.11, 13.13, 13.15, 13.17, 13.18, 13.19
The Texas Department of Health proposes amendments to sec.sec.13.11, 13.13, 
13.15, 13.17, 13.18 and 13.19, concerning hospital financial and utilization 
reporting and the reporting of charity care and community benefits data from 
nonprofit hospitals. The amendments will implement Senate Bills 788 and 802, 
75th Legislature, 1997, which amend the Health and Safety Code, Chapter 311, and 
will correct inconsistencies with the enabling legislation. 
Section 13.11 revises the purpose of the rules to accurately reflect statutory 
responsibilities. Section 13.13 includes a reformat of the definition of 
"nonprofit hospitals" for clarity. Section 13.15 establishes an exemption to 
hospital financial and utilization reporting. Section 13.17 establishes 
additional nonprofit hospital reporting requirements for the annual report of 
the community benefits plan, revises the standards for the provision of charity 
care and community benefits, specifies and clarifies revised time lines for 
nonprofit hospital charity care and community benefits reporting, includes 
requirements for nonprofit hospitals to post charity care notices, expands the 
definition of "nonprofit hospital" for purposes of charity care and community 
benefits reporting, deletes a reporting exemption for nonprofit hospitals in a 
specified county, and provides revisions to existing rule language for 
clarification purposes. Section 13.18 revises the time frame for implementing 
compliance activities for hospitals failing to report financial and utilization 
data, incorporates language consistent with the statute for department 
implementation of noncompliance activities for hospitals failing to report, and 
provides revisions to existing rule language for clarification purposes. Section 
13.19 corrects an inconsistency with the enabling legislation regarding 
confidentiality of data. 
Dora McDonald, Chief, Bureau of State Health Data and Policy Analysis, has 
determined that for the first five-year period the sections are in effect, there 
will be implications to state or local government as a result of administering 
or enforcing the sections as proposed. For fiscal years ending on or after 
January 1, 1998, public hospitals that are owned or operated by a political 
subdivision or municipal corporation of the state, including hospital districts 
and authorities, will be required to report charity care and community benefits 
information. Based on a survey of several hospitals, it is estimated that the 
cost of implementing these rules will range from $1,200 to $10,000 for each 
public hospital. This estimate is based on direct costs associated with 
reporting under these sections. Additional indirect costs incurred such as 
computer system adaptations, the scope of a hospital's community benefit 
planning activities undertaken, and the development and implementation of 
revised charity care policies have not been identified and will vary from 
hospital to hospital. There is no measurable cost to the state of implementing 
this new data collection function; however, these activities will modify the 
workload for the department in terms of the collection, processing, and follow-
up required to gather this information. 
Ms. McDonald also has determined that for each year of the first five years the 
sections are in effect, the public benefit anticipated as a result of enforcing 
the sections as proposed will be the availability of information necessary to 
assess the level of charity care and community benefits provided by nonprofit 
and public hospitals. Economic costs to small businesses will occur if the 
"nonprofit hospital" is an investor-owned Medicaid disproportionate share 
hospital with fewer than 100 employees or less than $1 million in annual gross 
receipts. The adverse economic impact to these small businesses will be the cost 
of reporting under these sections since these hospitals have not previously been 
required to report. The cost will be an estimated $1,200 to $10,000 based on a 
survey of hospitals. The department does not expect these rules to cause the 
cost of compliance per employee, per hour of labor or per $100 of sales of 
services to be different between a small business or a large business; however, 
due to the possibility of a higher volume of charity care performed and reported 
by a large hospital, the total costs of compliance for a large hospital may be 
closer to the high end of the range and the total cost for a small hospital may 
be closer to the lower end. The costs to persons who are required to comply with 
the sections as proposed will be an estimated $1,200 to $10,000 for reporting. 
There is no anticipated impact on local employment.
Comments on the proposal may be submitted to Ann Henry, Bureau of State Health 
Data and Policy Analysis, 1100 West 49th Street, Austin, Texas 78756-3199, (512) 
458-7261, Fax (512) 458-7344. Comments will be accepted for 30 days following 
the publication of this proposal in the Texas Register. 
The amendments are authorized under the Health and Safety Code, sec.104.042(a) 
which authorizes the Board of Health to adopt rules relating to the collection 
and dissemination of data from health care facilities necessary to facilitate 
health planning and resource development; sec.311.032(b) which mandates the 
adoption of rules on the collection and reporting of hospital financial and 
utilization data; and sec.12.001 which provides the Board of Health with the 
authority to adopt rules for the performance of every duty imposed by law on the 
Texas Board of Health, the Texas Department of Health and the Commissioner of 
Health. 
These amendments affect the Health and Safety Code, Chapters 104 and 311.

sec.13.11.Purpose.
The purpose of the sections in this chapter is to implement Health and Safety 
Code, Chapter 104, Subchapter D, which requires the department to adopt rules 
covering the collection of data from health care facilities, such as hospitals, 
and the dissemination of data to facilitate health planning and resource 
development; Health and Safety Code, Chapter 311, <nl>Subchapters <ol> 
[Subchapter] C <nl>and D relating to<ol> [which requires the department to adopt 
rules covering] the collection and reporting of hospital financial [,] 
<nl>and<ol> utilization [, and patient discharge] data including data regarding 
the provision of levels of charity care by certain nonprofit hospitals, and the 
submission <nl> of an annual report<ol> of a community benefits plan by certain 
nonprofit hospitals.

sec.13.13.Definitions.
The following words and terms, when used in these sections, shall have the 
following meanings, unless the context clearly indicates otherwise.
Nonprofit hospital--
<nl>(A)<ol> <nl> A hospital that is organized as a nonprofit corporation or a 
charitable trust under the laws of this state or any other state or country and 
is: <ol>
<nl>(i)<ol> <nl> eligible for tax-exempt bond financing; or <ol>
<nl>(ii)<ol> <nl> exempt from state franchise, sales, ad valorem, or other state 
or local taxes. <ol>[A hospital that is eligible for tax-exempt bond financing; 
or exempt from state franchise, sales ad valorem, or other state or local taxes; 
and organized as a nonprofit corporation or a charitable trust under the laws of 
this state or any other state or country. For purposes of these sections, a] 
<nl>(B)<ol> <nl> A <ol>"nonprofit hospital" shall not include a hospital that: 
<nl>(i)<ol> [(A)] is exempt from state franchise, sales, ad valorem, or other 
state or local taxes; 
<nl>(ii)<ol> [(B)] does not receive payment for providing health care services 
to any inpatients or outpatients from any source including, but not limited to, 
the patient or any person legally obligated to support the patient, third-party 
payers, Medicare, Medicaid, or any other federal, state, or local indigent care 
program; payment for providing health care services does not include charitable 
donations, legacies, bequests, or grants or payments for research; and 
<nl>(iii)<ol> [(C)] does not discriminate on the basis of inability to pay, 
race, color, creed, religion, or gender in its provision of services. [; or]
<nl>(C)<ol> [(D)] <nl>A "nonprofit hospital" does not include a hospital 
that<ol> is located in a county with a population under 50,000 where the entire 
county or the population of the entire county has been designated as a health 
professional shortage area.

sec.13.15. Survey Forms.
(a)-(c) (No change.) 
<nl>(d)<ol> <nl> A hospital may, but is not required to, provide the data 
required by subsection (b) of this section if the hospital:<ol>
<nl>(1)<ol> <nl> is exempt from state franchise, sales, ad valorem, or other 
state or local taxes; and <ol>
<nl>(2)<ol> <nl>does not seek or receive reimbursement for providing health care 
services to patients from any source, including:<ol>
<nl>(A)<ol> <nl> the patient or any person legally obligated to support the 
patient; <ol>
<nl>(B)<ol> <nl>a third party payor; or <ol>
<nl>(C)<ol> <nl> Medicaid, Medicare, or any other federal, state, or local 
program for indigent health care.<ol>

sec.13.17.Duties of Nonprofit Hospitals <nl>under Health and Safety Code, 
Chapter 311.<ol>
(a) <nl>Annual report<ol> [Report] of the [annual] community benefits plan. 
(1) [For reports required to be submitted to the Texas Department of Health 
(department) on or after September 1, 1995, the] <nl>The <ol> annual report of 
the community benefits plan may be filed <nl>with the department<ol> on a 
hospital or hospital system basis. 
(2) <nl>For fiscal years ending prior to January 1, 1998, a<ol> [A] nonprofit 
hospital or hospital system shall file an annual report of the community 
benefits plan, as required by Health and Safety Code, sec.311.046 <nl>as it 
existed prior to 1997 legislative amendments made by SB 788,<ol> with the 
department no later than 120 days after the hospital's or hospital system's 
fiscal year ends. <nl>For fiscal years ending on or after January 1, 1998, a 
nonprofit hospital or hospital system shall file an annual report of the 
community benefits plan with the department no later than April 30 of the 
following year.<ol> 
(3) The nonprofit hospital's or hospital system's annual report of the community 
benefits plan must include, at a minimum<nl>:<ol>
<nl>(A)<ol> the hospital's or hospital system's mission statement<nl>;<ol> [,] 
<nl>(B)<ol> a disclosure of the health care needs of the community that were 
considered in developing the community benefits plan<nl>;<ol> [, and] 
<nl>(C)<ol> a disclosure of the amount and types of community benefits, 
including charity care, actually provided. Charity care shall be reported as a 
separate item from other community benefits<nl>;<ol> 
<nl>(D)<ol> <nl> a statement of its total operating expenses computed in 
accordance with generally accepted accounting principles for hospitals from the 
most recent completed and audited prior fiscal year of the hospital; and <ol>
<nl>(E)<ol> <nl> a completed worksheet that computes the ratio of cost to charge 
for the fiscal year referred to in subparagraph (D) of this paragraph and that 
includes the same requirements as Worksheet 1-A adopted by the department in 
August 1994 for the 1994 "Annual Statement of Community Benefits Standard". <ol>
<nl>(4)<ol> <nl> For fiscal years ending prior to January 1, 1998, the nonprofit 
hospital's or hospital system's annual report of the community benefits plan 
must include the items listed in paragraphs (3)(A), (3)(B) and (3)(C) of this 
subsection. For fiscal years ending on orafter January 1, 1998, the nonprofit 
hospital's or hospital system's annual report of the community benefits plan 
must include the items listed in paragraphs (3)(A)-(3)(E) of this subsection. 
<ol>
<nl>(5)<ol> <nl> For fiscal years ending on or after January 1, 1998, in 
addition to the annual report of the community benefits plan, a nonprofit 
hospital or hospital system shall file a completed worksheet as required by 
paragraph (3)(E) of this subsection no later than ten working days after the 
date the hospital or hospital system files its Medicare cost report. <ol>
(b) Annual statement of community benefits standard. 
(1) [For statements required to be submitted to the department on or after 
September 1, 1995, the] <nl>The<ol> annual statement of community benefits 
standard may be filed <nl>with the department<ol> on a hospital or hospital 
system basis. 
(2) <nl>For fiscal years ending prior to January 1, 1998, a<ol> [A] nonprofit 
hospital or hospital system shall file an annual statement with the department 
no later than 120 days after the [end of the] hospital's or hospital system's 
fiscal year <nl>ends<ol> [stating which of the standards for providing community 
benefits have been satisfied].<nl> For fiscal years ending on or after January 
1, 1998, a nonprofit hospital or hospital system is required to file an annual 
statement with the department no later than 120 days after the hospital's or 
hospital system's fiscal year ends; however, the department will accept the 
annual statement as part of the acceptance of the annual report of the community 
benefits plan<ol>. The annual statement filed under this subsection shall be 
based on the most recently completed and audited prior fiscal year <nl> of the 
hospital and shall state which of the standards for providing community benefits 
has been satisfied<ol>. A nonprofit hospital or hospital system may elect to 
provide community benefits according to any of the following standards: 
(A) charity care and government-sponsored indigent health care are provided at a 
level which is reasonable in relation to the community needs, as determined 
through the community needs assessment, the available resources of the hospital 
or hospital system, <nl>and<ol> the tax-exempt benefits received by the hospital 
or hospital system, and other factors that may be unique to the hospital or 
hospital system, such as the hospital's or hospital system's volume of Medicare 
and Medicaid patients; 
[(B) charity care and government sponsored indigent health care are provided in 
an amount equal to at least 4.0% of the hospital's or hospital system's net 
patient revenue;] 
<nl>(B)<ol> [(C)] charity care and government-sponsored indigent health care are 
provided in an amount equal to at least 100% of the hospital's or hospital 
system's tax-exempt benefits, excluding federal income tax; 
[(D) prior to January 1, 1996, charity care and community benefits are provided 
in a combined amount equal to at least 5.0% of the hospital's or hospital 
system's net patient revenue, provided that charity care and government-
sponsored indigent health care are provided in an amount equal to at least 3.0% 
of net patient revenue;] or 
<nl>(C)<ol>[(E)] [ beginning with the hospital's or hospital system's fiscal 
year starting after December 31, 1995,] charity care and community benefits are 
provided in a combined amount equal to at least 5.0% of the hospital's <nl>or 
hospital system's<ol> net patient revenue, provided that charity care and 
government sponsored indigent health care are provided in an amount equal to at 
least 4.0% of net patient revenue.
(3) For purposes of satisfying paragraph <nl>(2)(C) <ol> [(2)(E)] of this 
subsection, a hospital or hospital system may not change its existing fiscal 
year unless the hospital or hospital system changes its ownership or corporate 
structure as a result of a sale or merger.
(4) A nonprofit hospital or hospital system shall use the form developed by the 
department for reporting under this section [and shall submit the form as part 
of the annual report of the community benefits plan]. 
(5) The department will accept written revisions of the annual statement of 
community benefits standard for 30 days after the filing date. 
(6) A nonprofit hospital that has been designated as a disproportionate share 
hospital under the state Medicaid program in the current fiscal year or in 
either of the previous two fiscal years shall be deemed in compliance with these 
standards. 
(7) A hospital that satisfies paragraphs (2)(A) or (6) of this subsection shall 
be excluded in determining a hospital system's compliance with the standards 
provided in paragraphs (2)(B) <nl>and (2)(C)<ol> [- (E)] of this subsection. 
(c) Reporting. 
(1) The department shall notify nonprofit hospitals in writing that the annual 
report of a community benefits plan and the statement of community benefits 
standard must be filed <nl>in accordance with these rules<ol> [within 120 days 
after the end of the hospital's or hospital system's fiscal year. The 
notification will include a form to be used by nonprofit hospitals or hospital 
system to file the annual statement of community benefits standard]. 
(2)-(3) (No change.) 
(4) All hospitals or hospital systems shall report [ to the department] any 
change of ownership [or control] which may effect the nonprofit status of the 
hospital or hospital system <nl>to the Bureau of State Health Data and Policy 
Analysis at the department.<ol>
(d) (No change.) 
<nl>(e)<ol> <nl> Charity care notice. Each hospital shall provide, to each 
person who seeks any health care service at the hospital, notice, in appropriate 
languages, if possible, about the charity care program and how to apply for 
charity care. Such notice shall also be conspicuously posted in the general 
waiting area, the waiting area for emergency services, in the business office, 
and in such other locations as the hospital deems likely to give notice of the 
charity care program. <ol>
<nl>(f)<ol> [(e)] Exemptions. 
[(1) A nonprofit hospital that is located in a county with a population under 
110,000 which has a hospital district created pursuant to Section 5, Article IX, 
Texas Constitution, and Chapter 136, Acts of the 55th Legislature, 1957, shall 
not be required to comply with one or more of the standards set forth in 
subsection (c) of this section. This exemption expires with a hospital's fiscal 
starting on or after September 1, 1996.] 
[(2)] A nonprofit hospital is exempt from the reporting requirement in 
subsection (c) of this section if the hospital is located in a county with a 
population under 50,000 and in which the entire county or the population of the 
entire county has been designated as a "health professional shortage area" 
during the current or any previous fiscal <nl> year<ol> and has continued to 
maintain that designation. 
<nl>(g)<ol> <nl>For purposes of this section only, a nonprofit hospital shall 
include a nonprofit hospital as defined in sec.13.13 of this title (relating to 
Definitions) and: <ol>
<nl>(1)<ol> <nl> a Medicaid disproportionate share hospital; or <ol>
<nl>(2)<ol> <nl> a public hospital that is owned or operated by a political 
subdivision of municipal corporation of the state, including a hospital district 
or authority. <ol>

sec.13.18.Noncompliance with Reporting Requirements.
(a) Data reporting. 
[(1) A hospital that does not time submit requested data to the Texas Department 
of Health (department) according to the requirements and procedures established 
in these sections is subject to a civil penalty of not more than $500 for each 
day of noncompliance, under the provisions of Health and Safety Code, Chapter 
104.] 
<nl>(1)<ol> [(2)] If a hospital does not submit a completed survey form to the 
<nl>Texas Department of Health (department) <ol> [department] within the 60-day 
reporting period established in sec.13.15 of this title (relating to Survey 
Forms), the department may institute the following procedures. 
(A) The department will notify the entity in writing by certified mail, return 
receipt requested, that the entity is in noncompliance with department reporting 
requirements and may be in violation of the Health and Safety Code, Chapter 104. 
The written notification will also state that the commissioner of health 
<nl>may<ol> [will] request that the attorney general institute and conduct a 
suit in the name of the state to recover civil penalties if the hospital fails 
to submit the requested data to the department within 30 days of the <nl>date 
the entity received<ol> [postmark of] the notification letter. 
(B) If the department does not received the requested data from the non-
responding hospital within the specified time frame, the commissioner of health 
<nl>may<ol> [will] notify the attorney general in writing of the entity's 
noncompliance. The department will send a copy of the written notification to 
the hospital. 
<nl>(2)<ol> <nl> A hospital that does not timely submit requested data to the 
department according to the requirements and procedures established in these 
sections is subject to a civil penalty of not more than $500 for each day of 
noncompliance, under the provisions of Health and Safety Code, Chapter 104. <ol>
(b) Community benefits plans. 
(1) (No change.) 
(2) If a nonprofit hospital or hospital system does not submit a report of the 
community benefits plan to the department within the [120-day] reporting period 
established in sec.13.17 of this title (relating to Duties of Nonprofit 
Hospitals <nl>under Health and Safety Code, Chapter 311<ol>), the department may 
institute the following procedures.
(A) The department will notify the entity in writing by certified mail, return 
receipt requested, that the entity is in noncompliance with department reporting 
requirements and may be in violation of the Health and Safety Code, Chapter 311. 
The written notification will also state that the commissioner of health 
<nl>may<ol> [will] request that the attorney general institute and conduct a 
suit in the name of the state to recover civil penalties if the hospital or 
hospital system fails to submit the report to the department within ten days 
after receipt of the written notification letter. 
(B) If the department does not receive the report of the community benefits plan 
from the non-responding hospital or hospital system within the specified time 
frame, the commissioner of health <nl>may<ol> [will] notify the attorney general 
in writing of the entity's noncompliance. The department will send a copy of the 
written notification to the hospital or hospital system. 

sec.13.19. Confidential Data. 
(a) The following data received by the Texas Department of Health (department) 
from a [public or private] hospital is confidential under authority of the 
Health and Safety Code, Chapters 104 and 311: 
(1)-(2) (No change.) 
(b)-(c) (No change.) 
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 21, 1998.
TRD-9800978
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 458-7236

CHAPTER 39.Primary Health Care Services Program
Medically Underserved Community-State Matching Incentive Program
25 TAC sec.sec.39.61-39.75
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Health or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Health (department) proposes the repeal of 
sec.sec.39.61-39.75, concerning the Medically Underserved Community-State 
Matching Incentive Program (MIP), through which the department allocates funds 
to qualified community groups in medically underserved areas to cover certain 
costs of establishing physicians' primary care practices. Specifically, the 
sections cover purpose and scope; define terms used in the rules; define 
eligibility criteria for contributing communities, participating physicians, and 
state designation as a medically underserved area; describe the procedures for 
applying for funds, prioritization of need among applicant communities and 
funding allocation; and provide specifications for related contracts, including 
requirements for community contribution of funds. 
The repeal is required by Senate Bill 913, 75th Legislature, 1997, which directs 
the Texas Board of Health (board) to transfer its obligations, property, and 
rights as administrator of the MIP under Health and Safety Code, Chapter 46, to 
the Center for Rural Health Initiatives (Center) not later than September 1, 
1998. The Center's executive board will adopt new rules to administer the MIP in 
compliance with Health and Safety Code, Chapter 106, as amended by Senate Bill 
913. 
Dora McDonald, Chief, Bureau of State Health Data and Policy Analysis, has 
determined that for the first five-year period the repeal is in effect, there 
will be no fiscal implications for state or local government as a result of the 
repeal. 
Mrs. McDonald also has determined that for each of the first five years the 
repeal is in effect, the public benefits anticipated are compliance with Senate 
Bill 913, 75th Legislature, 1997, and continuation of assistance to communities 
in medically underserved areas when the Center for Rural Health Initiatives 
begins to administer the MIP. There are no anticipated economic costs to small 
or large businesses or to persons who will be affected by the repeal. No effect 
on local employment is anticipated. 
Comments on the proposed repeal may be submitted to Dora McDonald, Chief, Bureau 
of State Health Data and Policy Analysis, Texas Department of Health, 1100 West 
49th Street, Austin, Texas 78756-3199, (512) 458-7261. Comments will be accepted 
for 30 days following the date of publication of the proposed repeal in the 
Texas Register.
The repeal is required by Senate Bill 913, 75th Legislature, 1997, and proposed 
under Health and Safety Code sec.12.001(b), which provides the Texas Board of 
Health (board) with authority to adopt rules for the performance of every duty 
imposed by law upon the board, the department, and the commissioner of health. 
The repeal of sec.sec.39.61-39.75 will affect Health and Safety Code, Chapter 
106.
sec.39.61.Introduction.
sec.39.62.Definitions.
sec.39.63. Eligibility Criteria for a Contributing Community.
sec.39.64.Physician Eligibility Criteria.
sec.39.65.Eligibility Criteria for State Designation as a Medically Underserved 
Area or Community.
sec.39.66.Procedures To Apply for Funds. 
sec.39.67.Application Requirements. 
sec.39.68.Evaluation of Application.
sec.39.69.Contract Award.
sec.39.70.Methodology for Prioritizing Neediest Communities.
sec.39.71.Contribution Procedures.
sec.39.72.Contract. 
sec.39.73.Funding Allocation Procedure.
sec.39.74.Breach of Contract. 
sec.39.75.Reporting and Monitoring.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 21, 1998.
TRD-9800977
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 458-7236

CHAPTER 241.Shellfish Sanitation
Molluscan Shellfish
25 TAC sec.sec.241.50-241.100
(Editor's note: The text of the following sections proposed for repeal will not 
be published. The sections may be examined in the offices of the Texas 
Department of Health or in the Texas Register office, Room 245, James Earl 
Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Health (department) proposes the repeal of existing 
sec.sec.241.50 - 241.100, and new sec.sec.241.50-241.67, concerning Texas 
molluscan shellfish. Specifically, these sections cover definitions; grounds and 
arrangements; sanitary controls; water supplies; storage areas; processing of 
molluscan shellfish; maintenance and cleaning; records and supervision 
guidelines which are provided by the new federal Shellfish Sanitation Model 
Ordinance; and they also include requirements established by the U.S. Food and 
Drug Administration's Fish and Fishery Products Hazard Analysis and Critical 
Control Point (HACCP) regulations (Code of Federal Regulations, Title 21, Part 
123). This action is necessary because of new federal requirements and 
recommendations. These rules are essential for the proper regulation of the 
molluscan shellfish industry.
Richard E. Thompson, Director, Seafood Safety Division, has determined that for 
each year of the first five-year-period the sections are in effect there will be 
no fiscal implications for state government as a result of implementing the 
sections. The current level of inspection will be reduced slightly to allow for 
the increased time and in-depth coverage of the HACCP inspections. All involved 
department staff have already participated in training. The effect on state 
government would be an increase in general revenue if administrative penalties 
are assessed. There will be no fiscal implications to local governments. Mr. 
Thompson also has determined that for each year of the first five years the 
sections are in effect, the public benefit anticipated as a result of enforcing 
the sections will be better assurance that molluscan shellfish processed in or 
imported into Texas will be free of disease or other health hazards 
transmissible by these products. There is no anticipated economic cost to 
individuals or small businesses because the industry involved was already 
regulated very stringently under the National Shellfish Sanitation Program. 
These requirements reflect primarily changes in form rather than new 
requirements. All currently licensed shellfish dealers have already participated 
in training. There is no impact on local employment. 
Comments on the proposal may be submitted to Richard E. Thompson, R.S., 
Director, Seafood Safety Division, Texas Department of Health, 1100 West 49th 
Street, Austin, Texas 78756, (512) 719-0215. Comments will be accepted for 30 
days following publication of this proposal in the Texas Register. Public 
hearings to receive comments on the proposed rules will be held on Monday, 
February 23, 1998, at 7:00 p.m. in the Galveston County Agriculture Extension 
Service Building, Dickinson, Texas, and on Tuesday, February 24, 1998, at 7:00 
p.m. in the Calhoun County Agriculture Building at the fairgrounds on County 
Road 101, Port Lavaca, Texas.
The repeal is proposed under Health and Safety Code, sec.sec.436.112 and 12.001, 
which provides the 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. 
The repeal will affect Health and Safety Code, Chapter 436.
sec.241.50.Definitions. 
sec.241.51.Growing Area Classification.
sec.241.52.Transplanting and Gathering for Depuration.
sec.241.53.Certification and Enforcement Procedures.
sec.241.54.Sources of Shellfish.
sec.241.55.Harvesting and Handling Shellstock. 
sec.241.56.Shellstock Shipping. 
sec.241.57.Plant Location, Grounds, and Arrangements.
sec.241.58.Dry Storage and Protection of Shellstock.
sec.241.59.Floors, Walls, and Ceilings. 
sec.241.60.Insect and Vermin Control Measures. 
sec.241.61.Lighting. 
sec.241.62.Heating, Cooling, and Ventilation.
sec.241.63.Water Supply. 
sec.241.64.Plumbing, Sewage, and Related Facilities.
sec.241.65.Poisonous or Toxic Materials.
sec.241.66.Construction of Shucking Benches, Stools, Runs, and Tables. 
sec.241.67.Construction of Utensils and Equipment.
sec.241.68.General Maintenance and Cleanliness. 
sec.241.69.Cleaning and Sanitizing Equipment and Utensils. 
sec.241.70.Shucking of Shellfish.
sec.241.71.Shell and Waste Disposal.
sec.241.72.Single Service Containers.
sec.241.73.Packing of Shucked Shellfish.
sec.241.74.Labeling Shucked Shellfish.
sec.241.75. Refrigeration and Shipping of Shucked Shellfish.
sec.241.76.Ice.
sec.241.77.Records.
sec.241.78.Employee Health.
sec.241.79.Supervision.
sec.241.80.Personal Cleanliness.
sec.241.81.Education and Training.
sec.241.82.Repacking Shucking Shellfish. 
sec.241.83.Wet Storage.
sec.241.84.Heat Shock.
sec.241.85.Depuration Certificate Requirements. 
sec.241.86.Depuration Gathering Permit. 
sec.241.87.Depuration Tank Design and Construction.
sec.241.88.Depuration Plant Sanitation. 
sec.241.89.Depuration Plumbing, Water Supply, and Related Facilities. 
sec.241.90.Depuration Construction Requirements.
sec.241.91.Depuration Laboratory Procedures. 
sec.241.92.Depuration Plant Operation. 
sec.241.93.Depuration Shellfish Sampling Procedures.
sec.241.94.Depuration Process Water Control - Sampling.
sec.241.95.Depuration Treatment Water - Standards.
sec.241.96.Depuration Shellfish Meat Standards. 
sec.241.97.Depuration Ultraviolet (UV) Unit. 
sec.241.98.Depuration Shellstock Storage. 
sec.241.99.Tagging and Release of Depurated Shellfish.
sec.241.100.Depuration Records.
This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on January 21, 1998.
TRD-9801019
Susan K. Steeg
General Counsel
Texas Department of Health
Earliest possible date of adoption: March 8, 1998
For further information, please call: (512) 458-7236

25 TAC sec.sec.241.50-241.67
The new sections are proposed under Health and Safety Code, sec.sec.436.112 and 
12.001, which provides the 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. 
The new sections will affect Health and Safety Code, Chapter 436.

sec.241.50.Definitions.
The following words and terms, when used in this chapter of this title (relating 
to Molluscan Shellfish), shall have the following meaning unless the context 
clearly indicates otherwise.
Air gap - The unobstructed vertical distance through the free atmosphere between 
the lowest opening from any pipe or faucet supplying water to a tank, plumbing 
fixture or other device and the flood level rim of that receptacle. 
Approved area - A classification used to identify a harvest area where harvest 
for direct marketing is allowed. 
Approved source - A source of molluscan shellfish acceptable to the director 
(commissioner of health). 
Aquaculture - The cultivation of seed in natural or artificial growing or 
harvest areas, or the cultivation of molluscan shell stock other than seed in 
harvest areas. 
Assure - To make certain. 
Authorized agent - An employee of the department who is designated by the 
director (commissioner of health) to enforce provisions of this chapter of this 
title (relating to Molluscan Shellfish). 
Backflow - The flow of water or other liquids, mixtures or substances into the 
distribution pipes of a potable water supply from any source or sources other 
than the intended source. 
Back siphonage - The flowing back of used, contaminated or polluted water from a 
plumbing fixture, vessel or other source into potable water supply pipes because 
of negative pressure in the water supply pipes.
Blower - A receptacle for washing shucked molluscan shellfish which uses forced 
air as a means of agitation. 
Certificate (molluscan shellfish certificate of compliance) - A numbered 
document issued by the Seafood Safety Division which authorizes a dealer to 
process molluscan shellfish for sale. 
Certification or certify - The issuance of a numbered certificate to a person 
for a particular activity or group of activities that indicates:
(A) permission from the department to conduct the activity; and 
(B) initial compliance with the requirements of these rules in this chapter of 
this title (relating to Molluscan Shellfish).
Certification number - The unique identification number issued by the department 
to each dealer for each location. Each certification number shall consist of a 
one to five digit Arabic number preceded by the two letter State abbreviation 
and followed by a two letter abbreviation for the type of activity or activities 
the dealer is qualified to perform in accordance with the following terms: 
(A) Shellstock shipper (SS); 
(B) Shucker/packer (SP); 
(C) Repacker (RP); 
(D) Depuration processor (DP). 
Certified location - A plant or place of business which has been inspected by 
the Seafood Safety Division and for which a molluscan shellfish certificate of 
compliance has been issued. 
Coliform group - All of the aerobic and facultative anaerobic, gram negative, 
nonspore forming, rod shaped bacilli which ferment lactose broth with gas 
formation within 48 hours at 95 degrees Fahrenheit (35 degrees + 0.5 degrees 
Centigrade). 
Commingle or commingling - The act of combining different lots of molluscan 
shell stock or shucked molluscan shellfish. 
Commissioner - The commissioner of health for the State of Texas.
Compliance schedule - A written schedule that provides a correction time period 
to eliminate key and other deficiencies. 
Conditionally approved area - A classification used to identify a harvest area 
which meets the criteria for the approved classification except under certain 
conditions described in a management plan established by the SSD. 
Conditionally restricted area - A classification used to identify a harvest area 
which meets the criteria for the restricted classification except under certain 
conditions described in a management plan established by the SSD. 
Container - The physical material in contact with or immediately surrounding 
molluscan shellfish that confines it into a single unit. 
Corrosion resistant materials - Materials that maintain their original surface 
characteristics under normal exposure to the foods being contacted, normal use 
of cleaning compounds and bactericidal solutions, and other conditions of use. 
Critical Control Point (CCP) - A point, step or procedure in a food process at 
which control can be applied, and a food safety hazard can as a result be 
prevented, eliminated or reduced to acceptable levels.
Critical deficiency - A condition or practice which: 
(A) results in the production of a product that is unwholesome; or 
(B) presents a threat to the health or safety of the consumer.
Critical limit - The maximum or minimum value to which a physical, biological, 
or chemical parameter must be controlled at a critical control point to prevent, 
eliminate or reduce to an acceptable level the occurrence of the identified food 
safety hazard. 
Cross connection - An unprotected actual or potential connection between a 
potable water system and any source or system containing unapproved water or a 
substance that is not or cannot be approved as safe and potable. Examples 
include, bypass arrangements, jumper connection, removable sections, swivel or 
change over devices, or other devices through which backflow could occur.
Cull - To remove dead or unsafe molluscan shell stock from a lot of molluscan 
shell stock. 
Dealer - A person to whom certification is issued for the activities of 
molluscan shell stock shipper, shucker-packer, repacker, or depuration 
processor. 
Department - The Texas Department of Health, 1100 West 49th Street, Austin, 
Texas, 78756, or its successor state agency, having the responsibility for the 
enforcement of laws concerning the safety of the food supply including molluscan 
shellfish growing area classification and certification of molluscan shellfish 
dealers. 
Depletion - The removal, under the direct control of the Texas Parks and 
Wildlife Department, of all existing commercial quantities of market-size 
molluscan shellfish from a harvest area classified as prohibited. 
Depuration or depurate - The process of reducing the level of bacteria and 
viruses that may be present in molluscan shellfish by using a controlled aquatic 
environment as the treatment process. 
Depuration plant - A place where depuration of molluscan shellfish occurs.
Depuration Processor (DP) - A person who harvests or receives molluscan shell 
stock from harvest areas in the approved or conditionally approved, restricted, 
or conditionally restricted classification and submits such molluscan shell 
stock to an approved depuration process. 
Direct marketing - The sale for human consumption of molluscan shellfish which: 
(A) does not require depuration or relaying prior to sale; or 
(B) has been subjected to depuration or relaying activities. Director - The 
executive head (commissioner of health) of the Texas Department of Health. 
Dry storage - The storage of molluscan shell stock out of water. 
Durable material - Material with the ability to exist for several years without 
significant deterioration and able to withstand normal daily use associated with 
molluscan shellfish operations. 
Easily cleanable - A surface which is: 
(A) readily accessible; and 
(B) is made of such materials, has a finish, and is so fabricated that residues 
may be effectively removed by normal cleaning methods.
Facility - A structure. 
FDA - The United States Food and Drug Administration or its successor agency, 
the federal agency in which regulation of foods, including the Cooperative 
Shellfish Program, is vested. 
Food contact surface - An equipment surface or utensil which normally comes into 
direct or indirect contact with shucked molluscan shellfish.
Food safety hazard - Any biological, chemical, or physical property that may 
cause a food to be unsafe for human consumption. 
Gatherer - Person who takes molluscan shellfish by any means from a growing area 
designated by the commissioner for delivery to a depuration plant. 
GLO - The Texas General Land Office, 1700 North Congress, Austin, Texas, 78701, 
or its successor agency, the state agency having the responsibility for the 
enforcement of laws concerning all state lands, including leasing of wetland 
bottom for private oyster leases. 
Growing area - Any site which supports or could support the propagation of 
molluscan shell stock by natural or artificial means. 
HACCP - Hazard Analysis Critical Control Point, a systematic, science-based 
approach used in food production as a means to assure food safety. The concept 
is built upon the seven principles identified by the National Advisory Committee 
on Microbiological Criteria for Foods(1992). 
HACCP Plan - A written document that delineates the formal procedures that a 
dealer follows to implement the HACCP requirements as adopted by the Interstate 
Shellfish Sanitation Conference set forth in Code of Federal Regulations, Title 
21, sec.123.6, as amended. 
Harvest - The act of removing molluscan shell stock from growing or harvest 
areas and its placement on or in a manmade conveyance or other means of 
transport. 
Harvest area - An area that contains commercial quantities of molluscan shell 
stock and may include aquaculture sites and facilities.
Harvester - A person who takes molluscan shell stock by any means from a harvest 
area. 
Heat shock - The process of subjecting molluscan shell stock to any form of heat 
treatment prior to shucking, including steam, hot water or dry heat, to 
facilitate removal of the meat from the shell without substantially altering the 
physical or organoleptic characteristics of the molluscan shellfish.
Includes or including - Includes or including by way of illustration and not by 
way of limitation. 
ISSC - The Interstate Shellfish Sanitation Conference. The ISSC consists of 
agencies from molluscan shellfish producing and receiving states, FDA, the 
molluscan shellfish industry, and the National Marine Fisheries Service of the 
U.S. Department of Commerce. 
Key deficiency - A condition or practice which may result in adulterated, 
decomposed, misbranded or unwholesome product. 
Label - Any written, printed or graphic matter affixed to or appearing upon any 
package containing molluscan shellfish. 
License - The document issued by the Texas Parks and Wildlife Department, under 
the Texas Parks and Wildlife Code, Chapter 47 or Chapter 76, which authorizes a 
person to harvest or transport molluscan shell stock for commercial sale. 
Lot of molluscan shell stock - A single type of bulk molluscan shell stock or 
containers of molluscan shell stock of no more than one day's harvest from a 
single defined harvest area gathered by one or more harvesters.
Lot of molluscan shell stock for depuration - Molluscan shell stock harvested 
from a particular area during a single day's harvest and delivered to one 
depuration plant. 
Lot of shucked molluscan shellfish - A collection of containers of no more than 
one day's shucked molluscan shellfish product produced under conditions as 
nearly uniform as possible, and designated by a common container code or 
marking. 
Marina - Any water area with a structure (docks, basin, floating docks, etc.) 
which is: 
(A) used for docking or otherwise mooring vessels; and 
(B) constructed to provide temporary or permanent docking space for more than 
ten boats. 
Marine Biotoxin - Any poisonous compound produced by marine microorganisms and 
accumulated by molluscan shell stock. Examples include Alexandrium spp. (Proto 
gonyaulax species), and Gymnodinium breve Market shellfish - Molluscan shellfish 
which are, may be, or have been harvested and/or prepared for sale for human 
consumption as a fresh or frozen product. 
May - Discretionary and is not mandatory or required. 
Molluscan shellfish - All species of:
(A) oysters, clams or mussels, whether: 
(i) shucked or in the shell;
(ii) fresh or frozen; and
(iii) whole or in part. 
(B) scallops in any form, except when the final product form is the adductor 
muscle only.
Monoculture - The culture of a single molluscan shellfish species. 
MPN - Most probable number.
Open area - A molluscan shellfish growing area where the harvesting for sale, 
harvesting for transplant, or gathering for depuration of molluscan shellfish is 
allowed. An open area status may be placed on any one of the classified area 
designations except for a prohibited area. 
Open water aquaculture - The cultivation of molluscan shellfish in natural 
molluscan shellfish harvest areas. 
Other deficiency - A condition or practice that is not defined as critical or 
key, but is of a public health significance and, if left uncorrected, could 
result in a more serious violation. 
Pack (packing) - All activities involved in placing molluscan shellfish in 
containers. 
Person - Any individual, receiver, trustee, guardian, personal representative, 
fiduciary, or representative of any kind, government or governmental subdivision 
or agency, partnership, association, corporation or other legal entity. 
Poisonous or deleterious substance - A toxic substance occurring naturally or 
added to the environment for which a regulatory tolerance limit or action level 
has been established in molluscan shellfish to protect public health. 
Polyculture - The cultivation of:
(A) two or more species of molluscan shellfish; or 
(B) molluscan shellfish with other species in a common environment. 
Potable water - A water supply which is suitable for human consumption. 
Principal display panel - The part of a label that is most likely to be 
displayed, presented, shown or examined under customary conditions of retail 
sale.
Process batch - A quantity of molluscan shell stock used to fill each separate 
tank or a series of tanks supplied by a single process water system for a 
specified depuration cycle in a depuration activity.
Process water - The water used in the scheduled depuration process.
Prohibited area - A classification used to identify a harvest area where the 
harvest of molluscan shell stock for any purpose, except depletion or gathering 
of seed for aquaculture, is not permitted. 
Repacker (RP) - Any person, other than the original certified shucker-packer, 
who repackages shucked molluscan shellfish into other containers.
Repacking molluscan shell stock - The practice of removing molluscan shell stock 
from containers and placing it into other containers.
Restricted area - A classification used to identify a harvest area where 
harvesting shall be by special license and the molluscan shell stock, following 
harvest, is subjected to a suitable and effective treatment process through 
transplanting or gathering for depuration. 
Safe materials - Articles manufactured from or composed of materials that may 
not reasonably be expected to, directly or indirectly, become a component of or 
otherwise adversely affect the characteristics of any food. 
Sanitation control record - Records that document the monitoring of sanitation 
practices and conditions. 
Sanitize - To adequately treat food contact surfaces by a process that is 
effective in: 
(A) destroying vegetative cells of microorganisms of public health significance; 
(B) substantially reducing the numbers of other undesirable microorganisms; and
(C) not adversely affecting the product or its safety for the consumer.
Seed - Molluscan shell stock which is less than market size.
Sewage - Refuse liquids or waste matter, including hand sink drainage. 
Sewer - An artificial, usually subterranean, conduit to carry off sewage and/or 
surface water. 
Sewerage - The removal and disposal of sewage and surface water by sewers. 
Shell stock - Live molluscan shellfish in the shell. 
Shell stock packing - The process of placing molluscan shell stock into 
containers for introduction into commerce. 
Shellstock Shipper (SS) - A dealer who grows, harvests, buys, or repacks and 
sells molluscan shell stock. They are not authorized to shuck molluscan 
shellfish nor to repack shucked molluscan shellfish. A shell stock shipper may 
also ship shucked molluscan shellfish. 
Shucked shellfish - Molluscan shellfish, whole or in part, from which one or 
both shells have been removed. 
Shucker/Packer (SP) - A person who shucks and packs molluscan shellfish. A 
shucker-packer may act as a shellstock shipper or may repack molluscan shellfish 
originating from other certified dealers. 
SSD - The Seafood Safety Division of the Texas Department of Health to which 
responsibility to classify molluscan shellfish growing areas and to regulate 
harvesting, processing, and/or shipping of molluscan shellfish is delegated. 
Take - Catch, hook, net, snare, trap, kill, or capture by any means, including 
the attempt to take. 
TDA - The Texas Department of Agriculture, 1700 North Congress, Austin, Texas, 
78701, or its successor state agency having responsibility for enforcement of 
laws concerning licensing of aquaculture. 
TNRCC - The Texas Natural Resource Conservation Commission, 12100 Park 35 
Circle, Austin, Texas, 78758, or its successor state agency having the 
responsibility for the enforcement of laws concerning water supplies and 
discharges of water or wastewater in Texas. 
TPWD - The Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, 
Texas, 78744, or its successor state agency having the responsibility for the 
enforcement of laws concerning harvesting and depletion of molluscan shellfish 
resources. 
Transaction record - The form or forms used to document each purchase or sale of 
molluscan shellfish at the wholesale level, and includes molluscan shellfish 
harvest and sales records, ledgers, purchase records, invoices and bills of 
lading. 
Transplant (transplanting) - To transfer molluscan shell stock from a harvest 
area classified as restricted or conditionally restricted or from a 
conditionally approved area in the closed status to a harvest area classified as 
approved or conditionally approved for the purpose of reducing pathogens as 
measured by the coliform indicator group or poisonous or deleterious substances 
that may be present in the molluscan shell stock by using the ambient 
environment as the treatment process. 
Water closet - A toilet bowl and its accessories surrounded by walls or 
partitions. 
Wet storage - The temporary storage, by a dealer, of molluscan shell stock from 
harvest areas in the approved classification or in the open status of the 
conditionally approved classification in containers or floats in natural bodies 
of water or in tanks containing natural or synthetic seawater.

sec.241.51. Growing Area Classification.
The authority conferred on the commissioner by the Health and Safety Code, 
sec.436.101 is delegated to the bureau chief of the Bureau of Food and Drug 
Safety or his/her designee under the provisions of the Health and Safety Code, 
sec.436.003(a). The bureau chief shall: 
(1) designate coastal water (as defined in the rules of the Texas Parks and 
Wildlife Department, 31 Texas Administrative Code, Chapter 51) for the purposes 
of taking molluscan shellfish as: 
(A) an approved area; 
(B) a conditionally approved area; 
(C) a restricted area; 
(D) a conditionally restricted area; or 
(E) a prohibited area. 
(2) designate classified growing areas as open areas or closed areas. 

sec.241.52.Shell Stock Transplanting and Gathering for Depuration. 
(a) Any person who wants to transplant molluscan shell stock from a harvest area 
classified as conditionally approved, restricted, or conditionally restricted 
shall make application to the TPWD for a permit to transplant molluscan shell 
stock. 
(b) No person may transplant molluscan shell stock without a valid transplant 
permit from the TPWD. 
(c) Each person who transplants molluscan shell stock shall provide the 
following information to the department: 
(1) the source of the molluscan shell stock; 
(2) the quantity of molluscan shell stock; 
(3) the destination private oyster lease of the molluscan shell stock; and 
(4) the date the transplant permit expired or was canceled.
(d) No person shall harvest transplanted molluscan shell stock until the 
molluscan shell stock has been in waters meeting the approved area criteria for 
a minimum consecutive period of 14 days. 
(e) Any person, firm, or corporation engaging wholly or part-time in the 
business of gathering molluscan shellfish from areas designated by the 
department for delivery to a controlled depuration plant shall be required to 
hold a current permit issued specifically for this purpose by the TPWD, with a 
copy in the files of the department. 
(f) Permits for gathering for depuration shall be granted only subject to the 
following conditions. 
(1) All gathering and transporting of molluscan shellfish for depuration must be 
accomplished between sunrise and sunset as set by the National Weather Service 
for that locale. 
(2) All boats and vehicles used to gather or transport molluscan shellfish for 
depuration shall be conspicuously marked in a manner established by the TPWD. 
All boats or vehicles so marked shall be thoroughly cleaned and sanitized and 
the marking removed prior to use for harvesting or transporting treated 
molluscan shellfish or other molluscan shellfish approved for harvest or sale. 
(3) Molluscan shellfish gathered for depuration shall not be containerized in 
any manner resembling normal sales of molluscan shell stock from approved 
harvest areas. Containers used for normal sales of molluscan shell stock from 
approved areas shall not be stored on any boat or vehicle used to gather or 
transport molluscan shellfish for depuration. Containers of untreated molluscan 
shell stock shall be tagged or labeled as NOT FOR HUMAN CONSUMPTION. 
(4) A copy of the TPWD permit shall be kept on board the vessel at all times 
during gathering and transporting of molluscan shell stock for depuration. 
(5) All gathering and transporting of molluscan shellfish for depuration shall 
be conducted under the immediate surveillance of a commissioned officer of the 
TPWD, or other commissioned officer as provided by law. The responsibility for 
obtaining this surveillance rests with the depuration plant owner or operator. A 
commissioned officer shall be present for every ten gatherers or gathering boats 
or for any portion of 10 gatherers or boats working for any single depuration 
plant. An officer shall not concurrently serve as surveillance officer for more 
than one depuration plant. Separate surveillance officers shall be present for 
gatherers from the same plant working concurrently in more than one geographic 
area. The surveillance officer shall have all molluscan shell stock under his or 
her control at all times during transport from the gathering area to the 
depuration plant. The surveillance officer shall prepare a report stating the 
gathering area(s), species, and quantity of molluscan shellfish gathered each 
day by each gatherer under his or her surveillance. One copy of the report shall 
accompany the molluscan shell stock to the depuration plant and be maintained in 
the plant files for not less than one year. One copy of the report shall be 
forwarded to the Texas Department of Health, Seafood Safety Division, 1100 West 
49th Street, Austin, Texas 78756. 
(6) All molluscan shellfish gathered under authority of a depuration permit 
shall be delivered only to the depuration plant specified in the permit, on the 
day gathered, and shall be depurated or disposed of as waste. 
(7) Molluscan shellfish gathered for depuration shall be protected at all times 
during gathering and transporting to prevent contamination and undue stress. 
(g) Vessels and all other equipment coming in contact with molluscan shell stock 
during handling or transport for transplant or depuration shall be thoroughly 
cleaned before the vessels or equipment are used to transport or handle 
molluscan shellfish for direct marketing. 

sec.241.53.Molluscan Shellfish Aquaculture.
(a) The following activities are exempted from the requirements in this section: 
(1) hatcheries; 
(2) nursery products which do not exceed 10% of the market weight; and 
(3) nursery products which are 6 months or more growing time from market size. 
(b) Aquaculture encompasses both open water and land based monoculture and 
polyculture. 
(c) Any person who performs open water aquaculture or operates an aquaculture 
facility to raise molluscan shellfish for human consumption shall obtain: 
(1) a permit(s) or authorization from the department, GLO, TPWD, TDA, and/or 
TNRCC for the activity or for construction and functioning of his facility; 
(2) a harvester's license; and 
(3) certification as a dealer, where necessary. 
(d) Molluscan shellfish aquaculture shall be practiced only in strict compliance 
with the provisions of the authorization issued by the department for the 
aquaculture activity. Authorization shall be based on the aquaculturist's 
written operational plan. 
(e) Prior to beginning his activity, an aquaculturist shall obtain the 
permission of the department for use of his site and any construction.
(f) Water quality at any site used for open water or land based aquaculture 
shall meet the criteria for the approved, conditionally approved, restricted or 
conditionally restricted classification. 
(g) Molluscan shellfish cultured in any open water or land based system meeting 
the criteria for the approved classification of a harvest area throughout the 
culture period may be immediately marketed. 
(h) Any molluscan shellfish raised in aquaculture shall be subjected to relaying 
or depuration prior to direct marketing if the culture area or facility is 
located in or using water which is in: 
(1) the closed status of the conditionally approved classification;
(2) the restricted classification; or 
(3) the open status of the conditionally restricted classification.
(i) Only drugs sanctioned by the FDA may be used for molluscan shellfish 
treatment. 
(j) Harvesting, processing, storage, and shipping requirements for molluscan 
shellfish raised in aquaculture shall be the same as the requirements for wild 
molluscan shellfish specified in this chapter of this title (relating to 
Molluscan Shellfish). 
(k) Complete and accurate records shall be maintained for at least two years by 
the aquaculturist and shall include the: 
(1) source of molluscan shellfish, including seed if the seed is from harvest 
areas which are not in the approved classification; 
(2) dates of transplanting and harvest; and 
(3) water source, its treatment method, if necessary, and its quality in land 
based systems. 
(l) Seed may come from any growing area, or from any harvest area in any 
classification, provided that: 
(1) the source of the seed is approved by the department;
(2) seed from growing areas or harvest areas in the restricted or prohibited 
classification has acceptable levels of poisonous or deleterious substances; and 
(3) seed from growing areas or harvest areas in the prohibited classification is 
cultured for a minimum of six months. 

sec.241.54.Land Based Aquaculture.
(a) Operational plan. Each land based aquaculture facility shall have a written 
operational plan. The plan shall be approved by the department prior to its 
implementation and shall include: 
(1) a description of the design and activities of the culture facility; 
(2) the specific site and boundaries in which molluscan shellfish culture 
activities will be conducted; 
(3) the types and locations of any structures, including rafts, pens, cages, 
nets, tanks, ponds, or floats which will be placed in the waters; 
(4) the species of molluscan shellfish to be cultured and harvested; 
(5) if appropriate, the source and species of other organisms to be cultured in 
any polyculture systems; 
(6) procedures to assure that no poisonous or deleterious substances are 
introduced into the activities; 
(7) a program of sanitation, maintenance, and supervision to prevent 
contamination of the final molluscan shellfish products; 
(8) a description of the water source, including the details of any water 
treatment process or method, if necessary; 
(9) a program to maintain water quality, which includes collection of microbial 
water samples and their method of analysis and routine temperature and salinity 
monitoring. The bacterial indicator monitored shall be the same as used for 
monitoring harvest areas; 
(10) collection of information on the microbial and chemical quality of 
molluscan shellfish harvested from the aquaculture site; 
(11) collection of data concerning the quality of food production (algae or 
other) used in the artificial harvest system; 
(12) maintenance of the required records; and 
(13) how molluscan shell stock will be harvested, processed if applicable, and 
sold. 
(b) Water systems. 
(1) If the aquaculture system is of continuous flow through design, water from a 
harvest area classified as approved, or in the open status of the conditionally 
approved classification at all times molluscan shellfish are held, may be used 
without treatment. 
(2) Water used in land based aquaculture incorporating a closed or recirculating 
system shall: 
(A) not contaminate molluscan shellfish with residues that would render the 
product adulterated; 
(B) come from a source meeting the restricted classification criteria at a 
minimum; 
(C) be maintained, at a minimum, at the bacteriological quality of the 
restricted classification; and 
(D) be measured at least five times per year. 
(3) If the water in the closed or recirculating system meets the criteria for 
the conditionally approved classification, the operational plan, prior to 
molluscan shell stock harvest, shall require, at a minimum: 
(A) collection of three water samples from the tank at least three days apart 
over a 14 day period; and 
(B) a fecal coliform density of less than 14 MPN per 100 ml in each water sample 
collected from the holding tank. 
(c) Molluscan shell stock quality. 
(1) Molluscan shell stock cultured in any system meeting the criteria for the 
approved classification throughout the culture period may be used in direct 
marketing. 
(2) If the water in a closed or recirculating system is classified as 
conditionally approved and in the open status, and if the water quality meets a 
fecal coliform level of less than 14 MPN per 100 ml in each sample collected in 
the 14 days prior to harvest, the molluscan shell stock may be used in direct 
marketing. 
(3) Molluscan shell stock cultured in a closed or recirculating system which 
does not meet the requirements of sec.241.5(3)(A) and (B) shall be relayed or 
depurated prior to direct marketing.

sec.241.55. Polyculture Systems.
(a) A polyculture system shall: 
(1) meet all requirements in sec.241.54 of this title (relating to Land Based 
Aquaculture; 
(2) provide information concerning all sources of and species of all organisms 
to be cultivated, cultured, and harvested. 
(b) A polyculture system shall include in its operational plan requirements to: 
(1) monitor for human pathogens, animal drugs, and/or other poisonous or 
deleterious substances that might be associated with polyculture activities; and 
(2) subject all harvested molluscan shell stock to relaying or depuration if 
human pathogens, animal drugs, and/or other poisonous ordeleterious substances 
exist at levels of public health significance. 

sec.241.56. Molluscan Shell Stock Harvesting and Handling.
(a) Harvesters. Any harvester who engages in molluscan shell stock packing as 
defined in this chapter of this title (relating to Molluscan Shellfish) shall: 
(1) be a dealer; or 
(2) pack molluscan shell stock for a dealer. 
(b) Vessels. 
(1) The dealer shall not accept molluscan shell stock unless all vessels used to 
harvest and transport molluscan shell stock are properly constructed, operated 
and maintained to prevent contamination, deterioration and decomposition of the 
molluscan shell stock. 
(A) Decks and storage bins shall be constructed and located to prevent bilge 
water or polluted overboard water from coming into contact with the molluscan 
shell stock. 
(B) Bilge pump discharges shall be located so that the discharge shall not come 
into contact with the molluscan shell stock. 
(C) Bags or other containers used for storing molluscan shell stock shall be 
clean and fabricated from safe materials. 
(D) Boat decks and storage bins used in the harvest or transport of molluscan 
shell stock for direct marketing shall be: 
(i) kept clean with potable water or water from a harvest area in the approved 
classification or in the open status of the conditionally approved 
classification; and 
(ii) constructed so that water does not stand on the deck or in the storage bin. 
(E) Coverings shall be provided on harvest boats to protect molluscan shell 
stock from exposure to adverse conditions. 
(2) Cats, dogs, and other animals shall not be allowed on vessels. 
(c) Disposal of human sewage from vessels. 
(1) Human sewage shall not be discharged overboard from a vessel used in the 
harvesting of molluscan shell stock or from vessels which buy molluscan shell 
stock, but only into an appropriate sewage disposal system.
(2) An approved marine sanitation device (MSD), portable toilet or other sewage 
disposal receptacle shall be provided on the vessel to contain human sewage. 
(3) Portable toilets shall: 
(A) be used only for the purpose intended; 
(B) be secured while on board and located to prevent contamination of molluscan 
shell stock by spillage or leakage; 
(C) be emptied only into an appropriate sewage disposal system;
(D) be cleaned and sanitized before being returned to the boat; and 
(E) be cleaned only in equipment which is not used for washing or processing 
food. 
(4) Use of other receptacles for sewage disposal may be approved by department 
if the receptacles are: 
(A) constructed of impervious and cleanable materials; and
(B) meet the requirements in subsection (c)(3) of this section.
(d) Molluscan shell stock washing. 
(1) Molluscan shell stock shall be washed reasonably free of bottom sediments as 
soon after harvesting as practicable. 
(2) The harvester shall be primarily responsible for washing the molluscan shell 
stock. 
(3) If molluscan shell stock washing is not feasible at the time of harvest, the 
dealer shall assume this responsibility. 
(4) Water used for molluscan shell stock washing shall be obtained from: 
(A) a potable water source; or 
(B) a harvest area in the: 
(i) approved classification; or 
(ii) in the open status of the conditionally approved classification.
(5) If the harvester or dealer elects to use tanks or a water system to wash 
molluscan shell stock, the molluscan shell stock washing activity shall be 
constructed, operated, and maintained in compliance with an approved HACCP plan 
in accordance with sec.241.60 of this title (relating to General HACCP 
Requirements) and sec.241.61 of this title (relating to General Sanitation 
Requirements). 
(e) Molluscan shell stock identification. 
(1) Each harvester shall affix a tag to each bag or container of molluscan shell 
stock which shall be in place while the molluscan shell stock is being 
transported to a dealer. 
(2) If the molluscan shell stock is harvested at more than one location, each 
container shall be tagged at its harvest area. 
(3) When the harvester is also the dealer, the harvester has the option to tag 
the molluscan shellfish with a harvester's tag or a dealer's tag meeting the 
requirements outlined in sec.241.56(e) of this title (relating to Molluscan 
Shell Stock Identification). 
(4) The harvester's tags shall: 
(A) be durable, waterproof and approved by the department prior to use; and 
(B) be at least 2-5/8 by 5-1/4 inches (6.7 by 13.3 cm) in size. 
(5) The harvester's tag shall contain the following indelible, legible 
information in the order specified: 
(A) the commercial oyster boat captain's license number (issued by TPWD), the 
captain's name, and any one of the following: 
(i) the oyster boat license number; 
(ii) the boat state registration number; or 
(iii) the documented boat name; 
(B) the date of harvest; 
(C) the most precise identification of the harvest location as is practicable 
including the initials of the state of harvest, and any department designation 
of the harvest area by indexing, administrative or geographic designation; 
(D) when the molluscan shell stock has been in wet storage in a dealer's 
operation, the statement: "THIS PRODUCT IS A PRODUCT OF (NAME OF STATE) AND WAS 
WET STORED AT (FACILITY CERTIFICATION NUMBER) FROM (DATE) TO (DATE)"; 
(E) the type and quantity of molluscan shell stock; and 
(F) the following statement in bold capitalized type on each tag "THIS TAG IS 
REQUIRED TO BE ATTACHED UNTIL CONTAINER IS EMPTY OR IS RETAGGED AND THEREAFTER 
KEPT ON FILE FOR 90 DAYS." 
(6) Molluscan shell stock harvested during the period April 1 through October 31 
that will not be refrigerated within the Time-To-Refrigeration guidelines 
required in sec.241.58 of this title (relating to Molluscan Shell Stock 
Temperature Control) shall not be harvested before 6:00 a.m. and shall be placed 
under refrigeration as designated in sec.241.58 of this title by 8:00 p.m. each 
day and shall be identified, stored, and processed separately from molluscan 
shell stock that is refrigerated within these Time-To-Refrigeration guidelines. 
(7) Molluscan shell stock harvested and held exempt from the Time-To-
Refrigeration guidelines in paragraph (6) of this subsection shall:
(A) be tagged with a harvester tag meeting all other requirements that shall 
also be over stamped on both sides with the words "FOR SHUCKING BY A CERTIFIED 
DEALER" in ink that shall be neon green in color in letters at least one-half 
inch in height. This special harvester tag shall be placed on each container of 
molluscan shell stock at the conclusion of harvesting of this exempt molluscan 
shell stock and before harvesting of any other molluscan shell stock. This 
special harvester tag shall remain attached to each container until the 
molluscan shell stock is shucked; 
(B) not be commingled with any other molluscan shellfish and shall be stored 
separately on harvest boats and at any certified location; and 
(C) be shucked and placed in containers bearing the consumer information 
language adopted by the ISSC, or an equivalent approved in writing by the SSD 
prior to use, unless the invoice and bill of lading for shipment of this exempt 
molluscan shell stock to another dealer both contain the following statement: 
"FOR SHUCKING BY A CERTIFIED DEALER". All dealer tags attached to such molluscan 
shell stock shall be over stamped identical to the harvester tag. 
(8) If the molluscan shell stock is removed from the original bag or container, 
the tag on the new bag or container shall meet the requirements in subsection 
(e) of this section. 
(f) Harvester records. 
(1) Each harvester who harvests molluscan shell stock during the period April 1 
- October 31 shall maintain records for each date molluscan shell stock is 
harvested that show the time the first molluscan shell stock is harvested, the 
time harvesting ends, and the time molluscan shell stock is unloaded from the 
boat. 
(2) If molluscan shell stock is harvested and held exempt from the Time-To-
Refrigeration guidelines in subsection (e) of this section, the harvester 
records shall also include the time that harvesting of this exempt molluscan 
shell stock ends and the time that harvesting of other molluscan shell stock 
begins. 
(3) These records shall be provided to the dealer with the molluscan shell stock 
and shall be maintained as part of the dealer's records. 
(g) Any molluscan shellfish in possession of a person holding a valid license 
issued by TPWD under Texas Parks and Wildlife Code, Chapter 47 or Chapter 76, 
shall be considered to be harvested for human consumption and offered for sale 
for food in Texas. 
(h) Harvesters shall: 
(1) be responsible for control of their molluscan shell stock until acceptance 
by a dealer; 
(2) sell their molluscan shell stock only to a currently certified shellfish 
dealer; 
(3) be required to deliver their molluscan shell stock to a dealer within the 
day the molluscan shell stock is harvested. For this purpose, a day shall be 
considered to be a 24 hour period from 12:00 a.m. to 12:00 a.m. the next day. 
Delivery of the molluscan shell stock means packing the molluscan shell stock 
into an approved container, transfer of the molluscan shell stock from the boat 
to a certified location, and acceptance of the molluscan shell stock by the 
dealer; and 
(4) be required to transport molluscan shell stock on ice or at air temperatures 
of 45 degrees Fahrenheit or less if the time from unloading the boat until the 
product is accepted by a dealer and placed under refrigeration at a certified 
location will exceed two hours. 
(i) If the harvester transports molluscan shell stock other than by boat to a 
certified location, the harvest boat captain must accompany the molluscan shell 
stock until acceptance by the dealer. 
(j) It is illegal for harvesters to sell molluscan shell stock directly to the 
public. 

sec.241.57.Certification Requirements.
(a) No person shall engage in any activity requiring a certificate in 
sec.sec.241.50-241.67 of this title (relating to Molluscan Shellfish) without 
having applied for and obtained an annual numbered certificate of compliance 
pertaining to the particular activity from the department. No certificate will 
be issued without a HACCP plan in accordance with sec.241.60 of this title 
(relating to General HACCP Requirements) which is acceptable to the SSD. 
(b) Dealer certification. 
(1) Shucker/packer. Any person who shucks molluscan shellfish shall be certified 
as a shucker/packer. 
(2) Repacker. 
(A) Any person who repacks shucked molluscan shellfish shall be certified as a 
shucker/packer or repacker. 
(B) Any person who repacks molluscan shell stock shall be certified as a 
shellstock shipper, shucker/packer, or repacker. 
(C) A repacker shall not shuck molluscan shellfish. 
(3) Shellstock shipper. Any person who ships and receives molluscan shell stock 
in interstate commerce shall be certified as a shellstock shipper, repacker, or 
shucker/packer. 
(c) Each dealer shall have a Texas business address at which inspections of 
facilities, activities, equipment, or records can be made.
(d) Each dealer shall accept molluscan shellfish only if they are taken from 
areas approved by the department, or obtained from sources outside the State of 
Texas which are approved by the department. If obtained from sources outside of 
the State of Texas, the molluscan shellfish must be from areas approved by the 
appropriate state or other government authorities having jurisdiction and must 
be obtained from dealers currently certified by the appropriate state or other 
government authority. Molluscan shellfish obtained from sources other than those 
outlined in this section shall not be sold, offered for sale, or held for sale. 
(e) Each dealer shall pay the oyster sales fee as assessed by the Texas Health 
and Safety Code, sec.436.103. The fee is established at $1.00 per barrel of 
oyster shell stock. One barrel shall be equal to three containers (sacks, 
bushels, boxes, etc.) of oyster shell stock. Each container of oyster shell 
stock shall not weigh more than 100 pounds. Any container weighing more than 100 
pounds shall be counted as two containers for purposes of computing the oyster 
sales fee owed. 
(f) Prior to beginning construction of a new molluscan shellfish processing 
plant, or major remodeling of an existing molluscan shellfish processing plant 
(which includes, but is not limited to: any process new to that particular 
plant; any change of product flow; or any enlarging of the plant structure) 
complete, legible plans showing the floor plan of the building, with dimensions 
drawn to scale, location of equipment, doors, floor drains, etc., and written, 
complete operational procedures for all phases of the activity, including flow 
of the product, shall be submitted to the SSD for review and approval. 
Additional plans of the entire premises may be required showing all structures, 
as well as, all water wells and septic systems with related distances and a 
statement of specifications as to type, sizes, design, date installed, etc. 
Plans shall be submitted no less than 30 days prior to initiating a new process 
or beginning construction. No operations shall be conducted while any inside 
plant construction or any other construction which has the potential to 
contaminate the product is occurring. A legibly written or typed application for 
certification on forms provided by the department must be filed with the SSD 
each year.
(g) The application for a shucker/packer or repacker certificate must be 
accompanied by a written statement of the procedure the applicant will use to 
determine the SELL BY date for molluscan shellfish packed and shipped from the 
location listed in the application. 
(h) A certificate and unique number shall be issued by the department only after 
an inspection of the plant by an authorized agent hasrevealed that the plant and 
practices are in compliance with these sections. A certificate and unique number 
shall be issued to a dealer for each location at which molluscan shellfish 
operations are to be conducted and a certificate is required. 
(i) The inspection of a previously certified plant which has exhibited 
operational problems or violations of operational requirements of these sections 
or had a certificate of compliance revoked shall not be conducted until written, 
complete operational procedures for all phases of the activity, including flow 
of the product, are submitted to the SSD for review and approval. An application 
may be rejected and a certificate of compliance denied based on a history of 
failure to comply with the requirements of these sections.
(j) Molluscan shellfish operations by the dealer shall not begin until the 
department has issued the certificate for that location. Each certificate shall 
expire automatically at 11:59 p.m. on August 31st following the date of issue. 
Certificates shall not be transferable. 
(k) After a certificate is issued, unannounced inspections may be conducted at 
any time the SSD has reason to believe the business may be in operation or that 
molluscan shellfish may be stored on the premises and at such frequency as may 
be necessary to assure that adequate operational and sanitary conditions are 
maintained. All molluscan shellfish at a certified location shall be the 
responsibility of the dealer at that location, for the purposes of these 
sections. A copy of the completed inspection form listing written descriptions 
of the violations observed along with any necessary explanation shall be 
provided by an authorized agent of department to the most responsible individual 
present at the firm at the conclusion of the inspection. Any violations of the 
same requirement found on a consecutive inspection may result in certificate 
suspension in accordance with subsection (l) of this section. Molluscan 
shellfish inspections and the SSD forms shall comply with the requirements 
established in the current National Shellfish Sanitation Program. 
(1) When an inspection detects a critical deficiency the violation shall be 
corrected during that inspection or the plant must cease production affected by 
the violation. If production affected by the violation does not voluntarily 
cease, all molluscan shellfish handled or processed while the violation exists 
or existed shall be detained pursuant to Health and Safety Code, sec.436.028. 
(2) When an inspection detects four or more key deficiencies, the dealer shall 
establish a correction schedule acceptable to the SSD. Follow-up inspection 
shall determine if the violations have been corrected or are being corrected in 
accordance with the scheduled correction dates noted on the previous inspection 
report. 
(3) When an inspection detects other deficiencies or three or less key 
deficiencies, the deficiencies shall be corrected prior to the next routine 
inspection. 
(l) The SSD may initiate procedures to suspend or revoke a certificate of 
compliance as follows. 
(1) The procedures shall be in accordance with the Texas Health and Safety Code, 
sec.436.114 and the provisions of the Government Code, Chapter 2001, 
Administrative Procedure Act, and department formal hearing procedures in 
Chapter 1 of this title (relating to the Texas Board of Health).
(2) The grounds for suspension or revocation or assessment of administrative 
penalties may be any one or more of the following: 
(A) inspection results indicate unsatisfactory conditions in the plant or the 
existence of a public health hazard; 
(B) the certificate holder or representative refuses to allow an inspection or 
otherwise interferes with the authorized department agent in the performance of 
his or her duties; or 
(C) the certificate holder does not have a HACCP plan, has a HACCP plan 
unacceptable to the SSD, or fails to comply with a HACCP plan which is 
acceptable to the SSD. 
(m) A dealer whose certificate has been suspended may not process any molluscan 
shellfish for a period determined by the commissioner.
(n) A dealer whose certificate has been suspended may not process any molluscan 
shellfish until the SSD is satisfied that all necessary corrections have been 
made. A suspension will not be rescinded until an inspection establishes that 
the firm has corrected all violations which resulted in the suspension and is in 
full compliance with all applicable criteria of these sections. 
(o) A certificate may be revoked for any of the reasons outlined in subsection 
(l) of this section or for either of the following: if the violations initiating 
a suspension fail to be corrected within the time frame established, or if a 
history of repeated suspensions exists. A dealer whose certificate has been 
revoked may not be issued a new certificate for 180 days or before the next 
certification period, whichever is longer, after the date of signing of the 
final order of revocation. When the department contemplates suspension or 
revocation, the certificate holder shall be afforded the opportunity for a 
hearing. Notice of the contemplated action shall be given to the certificate 
holder by personal service or certified mail, return receipt requested. If no 
request for a hearing is received by the director of the SSD, within 14 days of 
personal service or the date of receipt of the notice by the dealer, the 
allegations contained in the notice are admitted as true, and the department may 
proceed to take the action set out in the notice. 
(p) When the department determines that administrative penalties are 
appropriate, proposals for assessment of and hearings on administrative 
penalties shall be made in accordance with the Texas Health and Safety Code, 
sec.436.034; the Government Code, Chapter 2001, Administrative Procedure Act; 
and the department formal hearing procedures in Chapter 1 of this title. When 
the department contemplates administrative penalties, the certificate holder or 
harvester shall be afforded the opportunity for a hearing. Notice of the 
contemplated action shall be given to the certificate holder or harvester by 
personal service or certified mail, return receipt requested. If no request for 
a hearing is received by the director of the SSD, within 14 days of personal 
service or the date of receipt of the notice by the dealer, the allegations 
contained in the notice are admitted as true, and the department may proceed to 
take the action set out in the notice. 
(q) The seriousness of violations shall be categorized by one of the following 
severity levels. The examples following the severity levels are neither 
exhaustive nor controlling. They reflect only the seriousness of the violation 
and not the intent of the violator, the history of the violator, the amount 
necessary to deter future violations, or efforts to correct the violation. 
(1) Severity Level I - Violations that are of minor public health significance. 
The following are examples of severity level I violations (other deficiency): 
(A) failure to keep premises clean and have adequate drainage;
(B) failure to clean and maintain floors, walls, or ceilings;
(C) failure to provide adequate and properly shielded lighting;
(D) failure to post hand washing signs at hand washing stations;
(E) failure to provide blower air intake with approved filter;
(F) failure to prohibit use of "dip" buckets to rinse hands or knifes; 
(G) failure to use returnable containers only within the plant; and 
(H) failure to restrict shuckers from the packing room and all unauthorized 
persons from processing areas when operating. 
(2) Severity Level II - Violations that are of more than minor significance, or 
if left uncorrected, could result in more serious violations. The following are 
examples of severity level II violations (other deficiency): 
(A) failure to provide or use storage for employee clothing or personal 
articles; 
(B) failure to have clean, maintained, adequately drained floor; 
(C) failure to provide adequate heating/cooling/ventilation;
(D) failure to provide adequate quantity of water to facility;
(E) failure to provide hand washing stations with soap, sanitary towels, and/or 
waste receptacles with proper lids; 
(F) failure to properly construct, locate, maintain, and/or keep clean all non-
food contact surfaces; 
(G) failure to provide detergents, approved sanitizers, brushes, and/or a 
sanitizer test kit to properly clean and sanitize the facility; 
(H) failure to properly store and/or keep clean single service containers; 
(I) failure to maintain frozen molluscan shellfish at 0 degrees Fahrenheit or 
less; 
(J) failure to require employees to wear clean outer garments, impermeable 
gloves/finger cots; to store these items properly; and/or to wear proper hair 
restraints; 
(K) failure to promptly remove empty molluscan shells or other accumulation; and 
(L) failure to meet plumbing code and/or install water disposal correctly or 
have adequate drainage where operations discharge water. 
(3) Severity Level III - Violations that are significant and which, if not 
corrected, could threaten public health. The following are examples of severity 
level III violations (key deficiency): 
(A) failure to exclude insects, rodents, vermin, and any other animals; 
(B) failure to provide hot and cold water at each sink and lavatory; 
(C) failure to protect plumbing from backflow, backsiphonage, and/or cross 
contamination; 
(D) failure to have toilets clean, repaired, and/or have self-closing doors; 
(E) failure to properly use, store, separate, and/or label poisonous/toxic 
materials; 
(F) failure to properly construct, locate, clean, and/or maintain food contact 
surfaces; 
(G) failure to provide a temperature measuring device in each refrigeration 
unit; 
(H) failure to wash molluscan shell stock reasonably free of bottom sediments 
and detritus as soon after harvesting as feasible; 
(I) failure of employees to wash/sanitize hands and/or exhibit good hygienic 
practices; 
(J) failure to restrict any personnel with infections that may be transmitted 
through the molluscan shellfish from participating in molluscan shellfish 
operations; and 
(K) failure to maintain complete and accurate records. 
(4) Severity Level IV - Violations that have a significant adverse impact on 
public health. The following are examples of severity level IV violations (key 
deficiency):
(A) failure to separate operations by partition, space, or time; 
(B) failure to provide adequate refrigeration units; 
(C) failure to clean and sanitize food contact surfaces effectively and within 
required time frame; 
(D) failure to label molluscan shell stock or properly complete label; 
(E) failure to protect molluscan shell stock from contamination;
(F) failure to pack into containers with a valid certificate number for that 
location; comply with label requirements; and/or to use proper date; 
(G) failure to promptly shuck, pack, and protect molluscan shellfish; and 
(H) failure to have responsible, effective, designated person as supervisor. 
(5) Severity Level V - Violations that are most significant and create an 
imminent hazard to public health. The following are examples of severity level V 
violations (critical deficiency): 
(A) failure to cease operations when location/plant is flooded;
(B) failure to protect the water supply from contamination;
(C) failure to install and/or maintain adequate sewage disposal system; 
(D) failure to process molluscan shellfish from only an approved source; 
(E) failure to maintain molluscan shell stock at the proper temperature; 
(F) failure to obtain approval for wet storage operation;
(G) failure to keep molluscan shellfish from becoming contaminated;
(H) failure to cool packed molluscan shellfish to 45 degrees Fahrenheit within 
two hours of delivery to the packing room; 
(I) failure to maintain packed molluscan shellfish at 45 degrees Fahrenheit or 
less during storage, repacking, and to cover in ice; and 
(J) failure to provide sanitary ice and/or properly protect it. 
(r) The department may impose differing levels of penalties for different 
severity level violations. 
(1) Administrative penalties shall be imposed for Severity Level III, IV and V 
violations. Administrative penalties may be assessed for Severity Level I and II 
violations when they are combined with those of higher severity level(s) or for 
repeated violations which could have been prevented by corrective action and for 
which the dealer or harvester did not take effective corrective action. 
(2) Tables IA and IB show the base administrative penalties and the percentage 
of base amounts to be proposed based on severity level of violation. 
Figure 1: 25 TAC sec.241.57(r)(2) 
Figure 2: 25 TAC sec.241.57(r)(2) 
(3) Adjustments to the values in Tables IA and IB in paragraph (2) of this 
subsection may be made for the presence or absence of the following factors: 
(A) prompt identification and reporting; 
(B) corrective action to prevent recurrence; 
(C) compliance history; 
(D) prior notice of similar event; and 
(E) multiple occurrences. 
(4) The penalty may be in an amount not to exceed $25,000 a day for each 
violation for a person who violates the Health and Safety Code Chapter 436, or a 
rule in this chapter of this title (relating to Molluscan Shellfish), or an 
order of the department. Each day a violation continues may be considered a 
separate violation for purposes of penalty assessment.
(s) The department may offer a certificate holder or harvester the opportunity 
to attend a settlement conference to discuss with the SSD, methods and schedules 
for correcting the violation(s) or to show compliance with applicable provisions 
of the Health and Safety Code Chapter 436, the rules in this chapter of this 
title (relating to Molluscan Shellfish), certificate conditions, and any orders 
of the department issued thereunder, or discuss all such topics. The Office of 
General Counsel may conduct settlement negotiations.
(t) Notices of any settlement conference shall be sent by personal service or 
certified mail, return receipt requested. A settlement conference is not a 
prerequisite for the action to be taken under subsections (l), (m), (n), (o), or 
(p) of this section. 
(u) By acceptance of a certificate, the holder agrees to save, hold harmless, 
and indemnify the State of Texas, the department, and its employees against any 
and all liability, claims or losses for property damage or personal injury which 
result in whole or in part from the certificate holder's activities. The State 
of Texas shall not be held liable for financial losses incurred by the molluscan 
shellfish transplanters, gatherers, harvesters, plant supervisors, or plant 
owners due to failure of molluscan shellfish activity, condemnation of molluscan 
shellfish, loss of molluscan shellfish, or other reasons. 

sec.241.58. Molluscan Shell Stock Temperature Control.
(a) Molluscan shell stock intended for consumption as raw product shall be 
placed under ambient refrigeration at 45 degrees Fahrenheit (7.2 degrees 
Centigrade) or less within the hours specified below: 
(1) 20 hours for the months of November, December, January, February, and March; 
(2) 14 hours for the month of April; and 
(3) for the months of May through October, as established by the department 
based on the current Time-To-Refrigeration guidelines adopted by the ISSC. 
(b) The Time-To-Refrigeration guidelines shall be based upon the first molluscan 
shell stock harvested each day. 
(c) The Time-To-Refrigeration guidelines established for each month shall be in 
effect from 12:01 a.m. of the first day of the month until 11:59 p.m. of the 
last day of the month.
(d) The department may approve other measures proposed by the industry to 
provide controls equivalent to the Time-To-Refrigeration guidelines matrix. 

sec.241.59.Trucks or Other Vehicles Used to Transport Molluscan Shell Stock to 
the Original Dealer.
(a) The harvester or dealer who transports molluscan shell stock from the 
harvester to the first dealer to handle the product, shall assure that all 
trucks used to transport molluscan shell stock are properly constructed, 
operated, and maintained to prevent contamination, deterioration, and 
decomposition. 
(b) Storage bins on trucks or other vehicles used in the transport of molluscan 
shell stock for direct marketing shall be: 
(1) kept clean with potable water or water from an approved area or 
conditionally approved area in the open status; and 
(2) constructed so that water does not stand on the deck or in the storage bin. 
(c) Molluscan shell stock shall be transported in air temperatures inside the 
truck or other vehicle of 45 degrees Fahrenheit (7.2 degrees Centigrade) or 
less. 
(d) Mechanical refrigeration units shall be: 
(1) equipped with automatic controls; and 
(2) capable of maintaining the ambient air temperature in the storage area at 
temperatures of 45 degrees Fahrenheit (7.2 degrees Centigrade) or less. 
(e) Any ice used to cool molluscan shell stock during transport shall be 
produced and handled in compliance with the sanitation standard operating 
procedures in accordance with sec.241.61 of this title (relating to General 
Sanitation Requirements). 
(f) Cats, dogs, and other animals shall not be allowed in any part of the truck 
or other vehicle where molluscan shell stock is stored.

sec.241.60. General HACCP Requirements.
(a) Every dealer shall conduct a hazard analysis to determine the food safety 
hazards that are reasonably likely to occur for each kind of molluscan shellfish 
product processed by that dealer and to identify the preventive measures that 
the dealer can apply to control those hazards. Such food safety hazards can be 
introduced both within and outside the processing plant environment, including 
food safety hazards that can occur before, during, and after harvest. A food 
safety hazard that is reasonably likely to occur is one