(a) Unless otherwise permitted by law, a motion for rehearing is a prerequisite to an appeal. A motion for rehearing must be filed, with the appropriate office, within 20 days after the party or his attorney of record is notified of the agency decision. The motion must state each specific ground upon which the party believes the agency's decision is erroneous. The motion for rehearing will be acted on within 45 days after the date the party or his attorney of record is notified of the agency decision.
(b) Any reply to a motion for rehearing must be filed, with the appropriate office, within 30 days after a party or his attorney is notified of the agency decision.
(c) If the agency has not acted on the motion for rehearing within the 45-day period, the motion for rehearing is overruled by operation of law, 45 days after the date the party or his attorney of record is notified of the agency decision.
(d) By written order, the agency may extend the period of time for filing the motions and replies and for taking agency action, except that an extension may not extend the period for agency action beyond 90 days after the date the party or his attorney is notified of the agency decision.
(e) In the event of an extension, the motion for rehearing is overruled by operation of law on the date fixed by the agency's decision or, in the absence of a fixed date, 90 days after the date the party or his attorney is notified of the agency's decision.

Source Note: The provisions of this §101.60 adopted to be effective April 7, 1986, 11 TexReg 1508; amended to be effective August 30, 1990, 15 TexReg 4691.