Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 22. PRACTICE AND PROCEDURE

The Public Utility Commission of Texas (commission) proposes an amendment to §22.33 relating to Tariff Filings and §22.305 relating to Compulsory Arbitration. The proposed amendments will replace references to repealed sections in Chapter 23 with the correct references in Chapter 25 and/or Chapter 26. Project Number 22470 is assigned to this proceeding.

Ms. Rhonda Dempsey, Rules Coordinator, 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. Dempsey has determined that for each year of the first five years the proposed sections are in effect the public benefit anticipated as a result of enforcing the sections will be correct citations to other commission rules. There will be no effect on small businesses or micro-businesses as a result of enforcing the sections. There is no anticipated economic cost to persons who are required to comply with the sections as proposed.

Ms. Dempsey has also determined that for each year of the first five years the proposed sections are in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

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 commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the section. All comments should refer to Project Number 22470.

Subchapter C. CLASSIFICATION OF APPLICATIONS OR OTHER DOCUMENTS INITIATING A PROCEEDING

16 TAC §22.33

This amendment is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §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 Reference to Statutes: Public Utility Regulatory Act §14.002 and §14.052.

§22.33.Tariff Filings.

(a)

Applicability and classification. This section shall apply to undocketed applications by utilities to change their tariffs. Such tariff filings shall be classified as "electric tariff filings," "regular telephone tariff filings," or "special telephone tariff filings." Electric tariff filings shall be those applications filed pursuant to §25.241 of this title (relating to Form and Filing of Tariffs). [ and ] Regular [ regular ] telephone tariff filings shall be those applications filed pursuant to §26.207 [ §23.24 ] of this title (relating to Form and Filing of Tariffs) and §26.208 of this title (relating to General Tariff Provisions). Special telephone tariff filings shall be those applications filed by telecommunications utilities pursuant to §26.212 of this title (relating to Procedures Applicable to Chapter 58-Electing Incumbent Local Exchange Companies (ILECs)) [ §23.25 of this title (relating to Procedures Applicable to PURA Chapter 58 Electing Incumbent Local Exchange Carriers) ], §26.209 [ §23.26 ] of this title (relating to New and Experimental Services), §26.211 [ §23.27 ] of this title (relating to Rate-Setting Flexibility for Services Subject to Significant Competitive Challenges, and §26.210 of this title (relating to Promotional Rates for Local Exchange Company Services) [ §23.28 of this title (relating to Promotional Rates for LEC Services) ] or PURA, §§53.251, 53.252, 53.301 - 53.308 or 55.004. This section shall apply unless it is inconsistent with Chapters[ 23, ] 25 or 26 of this title, or PURA.

(b) - (f)

(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 June 6, 2000.

TRD-200003967

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 936-7308

16 TAC §22.305

§22.305.Compulsory Arbitration.

(a)

Request for arbitration. Any party to negotiations concerning a request for interconnection, services or network elements pursuant to §251 of the FTA96 may request arbitration by the commission by filing with the commission's filing clerk 13 copies of a request for arbitration. The request must be received by the commission during the period from the 135th to the 160th day (inclusive) after the date the LEC received the request for negotiation from the other negotiating party. The request for arbitration shall include:

(1) - (4)

(No change.)

(5)

if the request concerns a request for interconnection under §26.272 [ §23.97 ] of this title (relating to Interconnection), the material required by §26.272(g) [ §23.97(g) ] of this title; and

(6)

(No change.)

(b) - (t)

(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 June 6, 2000.

TRD-200003968

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 936-7308

Chapter 303. GENERAL PROVISIONS

Subchapter D. TEXAS-BRED INCENTIVE PROGRAMS

2. PROGRAMS FOR HORSES

16 TAC §303.92

The Texas Racing Commission proposes an amendment to §303.92 concerning the rules of the Texas Thoroughbred Association regarding the Texas Bred Incentive Programs. The amendment was presented to the Commission as a rulemaking petition under 16 Tex. Admin. Code §307.33 by the Texas Thoroughbred Association, the official breed registry for Thoroughbred horses in Texas. According to the petition, the amendment provides permits the breed registry to use award money generated from multiple two and multiple three wagers under §6.08(f) of the Texas Racing Act to supplement purses for special events or days that are restricted to accredited Texas-bred thoroughbreds.

Paula C. Flowerday for the Texas Racing Commission, has determined, based on the petition, that for the first five-year period the amendment is in effect there is no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Flowerday has also determined, based on the petition, that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the proposal will be that the funds dedicated to the Texas Bred Incentive Programs may be used in a variety of ways to enhance the Texas breeding programs. There will be no fiscal implications for small or micro businesses. There is no anticipated economic cost to an individual required to comply with the amendment as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before July 29, 2000, to Paula C. Flowerday, Executive Secretary for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; §6.08(g), which authorizes the Commission to adopt rules relating to the accounting, audit, and distribution of all amounts set aside for the Texas-bred program; and §9.01, which authorizes the state breed registries to adopt reasonable rules to establish the qualifications of accredited Texas-bred horses to promote, develop, and improve the breeding of horses in Texas, subject to the approval of the Commission.

The proposed amendment implements Texas Civil Statutes, Article 179e.

§303.92.Thoroughbred Rules.

(a)

Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1)

Horse Owner--A person who is owner of record of an accredited Texas-bred horse at the time of a race.

(2)

Breeder--The owner of the dam at the time of foaling as stated on the foal's Jockey Club certificate of registration.

(3)

Stallion Owner--A person who is the owner of record, at the time of conception, of the stallion that sired the accredited Texas-bred horse.

(4)

Accredited Texas-bred Thoroughbred - a horse registered with the Jockey Club, accredited with the breed registry and conceived and foaled in Texas, out of a mare accredited with the breed registry that is permanently domiciled in Texas, and sired by a stallion accredited with the breed registry and standing in Texas at the time of conception of said foal. Also, any horse foaled in Texas may be eligible to be accredited if the mare becomes an accredited mare permanently domiciled in Texas and is next bred, within two seasons, to any Thoroughbred stallion accredited with the breed registry and standing in Texas at the time said mare is covered. If this breed-back is not accomplished the year said foal is born, it must then take place during the breeding season of the foal's yearling year if the foal in question is to be eligible for accreditation.

(5)

Accredited Texas-bred Thoroughbred Mare--A mare registered with the Jockey Club, accredited with the breed registry, and permanently domiciled in Texas except for racing and breeding privileges. Annual reproductive activity of the mare may be required to be reported to the breed registry in writing via photocopy of the Live Foal Report/No Foal Report submitted annually to the Jockey Club.

(6)

Accredited Texas Thoroughbred Stallion - A stallion registered with the Jockey Club, accredited with the breed registry, and standing in Texas. If an Accredited Texas Thoroughbred Stallion services any mare outside the State of Texas within that breeding season, those foals conceived outside the state of Texas will be subject to the Breed- Back Rule. The breed registry must be notified in writing within 10 calendar days each time the stallion leaves or enters the State of Texas. A photocopy of the annual Report of Mares Bred may be required to be submitted to the breed registry office on or before the date required by the Jockey Club (August 1). Stallion owners are eligible to receive stallion awards only from offspring sired in Texas after the stallion has become accredited with the breed registry and applicable administrative fees have been paid.

(7)

Breed Registry--The Texas Thoroughbred Association, the official breed registry for thoroughbred horses as designated in the Act.

(b)

Organizational Structure. The breed registry shall comply with the provisions of the Act and Rules and shall further maintain substantially the following:

(1)

Records of the breed registry shall be kept so as to identify separately the activities of the accredited Texas-bred program.

(2)

Management of the accredited Texas-bred program shall be under the control of the board of directors of the breed registry and may be exercised through a committee or other governing body appointed by and accountable to the board of directors. The committee shall keep records or minutes of its proceedings and shall establish its operational procedures. The committee's records must be available for inspection at any time by the commission at the office of the breed registry. The committee is authorized to reasonably interpret the definitions and standards of this section, subject to approval by the board of directors, whose decision in such matters shall be final.

(3)

The committee shall prepare and implement a budget on an annual basis, subject to prior approval of the board of directors. The budget may contain provisions for reserves for contingencies deemed appropriate. The breed registry may develop and implement a fair system for sharing and allocating expenses and operational costs between breed registry activities and accredited Texas-bred program activities, taking into consideration the promotion and improvement of thoroughbred horses in Texas. In no event may funds that are dedicated by law to fund the incentive awards program be used for any other purpose. Any funds or services advanced or provided by the breed registry to the accredited Texas-bred program may be offset or otherwise recouped upon proper accounting. The committee is authorized to set and collect application and administration fees.

(4)

Eligibility for awards under the accredited Texas-bred program may not be conditioned upon membership in an organization.

(c)

Procedure for Payment of Awards.

(1)

Conditions precedent for payment of awards are:

(A)

If a horse is leased, there must be on file with the breed registry a lease agreement specifying which party shall receive award money.

(B)

Breeder's Awards will be paid only on an accredited Texas-bred Thoroughbred whose dam was accredited with the breed registry prior to foaling the subject horse.

(C)

Accreditation fees are non-refundable after a work order has been assigned to an eligible entry. If a horse is ineligible, the fee will be refunded to the applicant.

(D)

When any accredited Texas-bred horse becomes breeding stock, it must be converted, with the breed registry, to an accredited mare or stallion.

(E)

All applicable fees set by the breed registry must have been paid.

(F)

All participants in the accredited Texas-bred program must provide the breed registry in writing the identity of the authorized payee and the address to which awards are to be sent. Any change in ownership, payment entitlement, or address shall not be effective unless and until it is provided to the breed registry in writing. The breed registry may rely on the information so provided to it.

(2)

Any accredited Texas-bred Thoroughbred that finishes first, second, or third in any race in Texas (with the exception of a stakes race restricted to accredited Texas-breds) shall receive an owner's incentive award. All owner's incentive awards shall be noted in each association's condition book and race program so as to identify the availability of the accredited Texas-bred program owner incentive awards.

(3)

Award funds derived by the breed registry pursuant to §6.08(f) of the Act may be allocated and disbursed by the breed registry to purses at Texas associations for races restricted to accredited Texas-bred thoroughbred horses for special event races or days.

(d)

Procedure for hearings. The following provisions shall apply to hearings on matters pertaining to administration of the accredited Texas-bred program.

(1)

Right to hearing. If the breed registry proposes to deny an application for accreditation, revoke an accreditation previously granted, or withhold payment of an award, the person(s) affected shall be entitled to a hearing before the board of directors of the breed registry. The board of directors, in its sole discretion, may grant or conduct a hearing on any other matter or issue raised by the administration of the accredited Texas-bred program.

(2)

Notice of hearing. The board of directors shall send written notice of the hearing to all affected parties. The notice must be mailed at least 30 days prior to the date of hearing, must specify the time and place of hearing, must contain a statement of the matters to be considered and possible action to be taken, and must advise the recipient(s) of the right to appear and present evidence.

(3)

Conduct of hearing. The breed registry shall have the burden of proof in any proceeding for denial or revocation of accreditation. In all other matters, the burden of proof is on the party seeking action by the breed registry. Each party shall be entitled to representation by legal counsel. The board of directors may determine the order and length of the proceeding and shall allow each party the opportunity to submit sworn testimony, documents, and argument as the party may desire, but formal rules of evidence shall not apply. All witnesses are subject to cross- examination and to questions from the members of the board of directors. A record of the proceedings shall be made and kept, and a transcript shall be provided to any party who requests and pays in advance for same.

(4)

Decision. At any time after the closing of the hearing, the board of directors may issue its decision, which shall be in writing and which shall state the findings and reasons for the action taken. In addition to ruling on the issues presented, the decision may require any party to reimburse the breed registry for its expense and attorneys fees incurred in the preparation for and conduct of the hearing and may require repayment with lawful interest to the breed registry of any funds found to have been wrongfully or improperly received. The decision of the board of directors is final and not subject to review. A copy of the decision shall be filed with the Commission and shall be published in the next issue of the Texas Thoroughbred, and thereafter all persons shall have constructive notice of the decision and its contents.

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 June 6, 2000.

TRD-200003984

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 833-6699