(a) A party may file any exceptions to the proposal for decision within 15 calendar days of the date of the proposal for decision. Any replies to the exceptions shall be filed by other parties within 15 calendar days of the filing of exceptions. These time limits may be extended by agreement of the parties and the administrative law judge (ALJ). Exceptions and replies shall be:
  (1) served upon the other party by mail, hand-delivery, facsimile, any method allowed by the State Office of Administrative Hearings rules, or any electronic transmission agreed to by the parties; and
  (2) filed with the ALJ in accordance with 1 Texas Administrative Code, Part 7, Chapter 155 (relating to Rules of Procedure).
(b) Any disagreement with a factual finding or conclusion of law in the proposal for decision not contained in an exception to the proposal shall be waived.
(c) Each exception or reply to a finding of fact or conclusion of law shall be concisely stated and shall summarize the evidence in support of each exception.
  (1) Any evidence or arguments relied upon shall be grouped under the exceptions to which they relate.
  (2) In summarizing evidence, the parties shall include a specific citation to the hearing record where such evidence appears or shall attach the relevant excerpts from the hearing record.
  (3) Arguments shall be logical and coherent and citations to authorities shall be complete.
(d) Exceptions to the proposal for decision may be based on the following:
  (1) the ALJ has made an incorrect conclusion of law;
  (2) the ALJ has failed to make an essential fact finding;
  (3) the ALJ applied the incorrect burden or standard of proof;
  (4) the findings of fact do not support the conclusions of law; or
  (5) the ALJ has made a finding of fact that is not supported by the preponderance of the evidence.

Source Note: The provisions of this §249.37 adopted to be effective March 31, 1999, 24 TexReg 2304; amended to be effective December 16, 2007, 32 TexReg 9112; amended to be effective December 19, 2011, 36 TexReg 8533