TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 3. OIL AND GAS DIVISION

16 TAC §3.1, §3.58

The Railroad Commission of Texas (commission) withdraws the proposed amendments to §§3.1, relating to Organization Report; Retention of Records; Notice Requirements, and 3.58, relating to Oil, Gas, or Geothermal Resource Producer's Reports, published in the December 3, 1999, issue of the Texas Register (24 TexReg 10682) and proposes three additional amendments. As proposed, the amendments, in part, implement Senate Bill 639, 75th Regular Session, (Texas Natural Resources Code §91.114), to assist the commission in cross-referencing operators who may be prohibited from conducting operations subject to the jurisdiction of the commission because of outstanding administrative or civil enforcement action. The amendments require individual licensees to submit social security numbers as required by the Family Code to aid in child support enforcement. Safeguards are in place to protect the confidentiality of this information. The amendments also provide for the suspension or revocation of an organization report containing materially false information. Further, the amendments require organizations that file for bankruptcy to notify the commission within 72 hours by sending a notice to the Enforcement Section of the Office of General Counsel. All bankruptcy-related notices shall be sent to that section. The amendments allow permits to be issued in certain prescribed circumstances without an entity having to possess an active organization report. The three changes to the original proposal include: (1) A sentence is added to §3.1(a)(4)(C)(ii)(II) to require organizations which show other business entities as owning or controlling them to identify the individuals in control of those other entities; (2) language is deleted from the originally published §3.1(d)(1) to make clear that permits to organizations without active organization reports are available only as necessary to remedy a violation of law or commission rules; and (3) language is added to §3.1(d)(1) to clarify that organizations reports will not be approved if the organization has not satisfied state registration and taxation requirements.

The commission simultaneously reproposes the review and readoption of these rules. The notice of proposed review was filed with the Texas Register concurrently with this proposal. As stated in the concurrent rule review, the commission proposes to readopt these rules, with the proposed changes, in accordance with Tex. Gov't Code, §2001.039. The agency's reasons for adopting these rules continue to exist.

Rita E. Percival, Oil and Gas Division planner, has determined that for the first five years the proposed amendments will be in effect, the fiscal implications as a result of enforcing or administering them will be a cost to the state of $7,800 in fiscal year 2000 for computer programming to incorporate data on assumed names and non-employee agents. For years two through five, there will be no additional cost or savings to the state as a result of enforcing or administering the rule amendments.

There will be no effect on local government. There is no anticipated cost of compliance with the proposed rule amendments for individuals or small business operators.

Boyd Johnson, Director of the Enforcement Section, Office of General Counsel, has determined that the public benefit as a result of the proposed amendments will be the ability of the commission to more accurately identify and cross-reference operators who are prohibited from conducting operations because of outstanding administrative or civil enforcement action.

The commission has not requested a local employment impact statement pursuant to Tex. Gov't Code §2001.022(h).

Comments on the proposed amendments should be submitted to Boyd Johnson, Director of the Enforcement Section, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967, or via electronic mail to boyd.johnson@rrc.state.tx.us. The commission will accept comments until 5:00 p.m. on the thirtieth day after publication in the Texas Register .

The commission proposes these rules under Texas Natural Resources Code, §81.052, which authorizes the commission to adopt all necessary rules for governing persons and their operations under the jurisdiction of the commission under §81.051; Texas Natural Resources Code, §85.161-7, which authorizes the commission to require, administer, and cancel certificates of compliance; Texas Natural Resources Code, §91.114, which authorizes the commission to accept, reject, or revoke reports filed with the commission; and Texas Natural Resources Code, §91.142 which authorizes the commission to require business entities to file organization reports.

Texas Natural Resources Code §§81.052, 85.041, 85.042, 85.161-7, 85.201, 85.202, 91.114, and 91.142 are affected by the proposal.

Issued in Austin, Texas, on February 24, 2000.

§3.1.Organization Report; Retention of Records; Notice Requirements.

(a)

Filing requirements.

(1)

Except as provided under subsection (d) of this section, no [ No ] organization, including any person, firm, partnership, joint stock association, corporation, or other organization, domestic or foreign, operating wholly or partially within this state, acting as principal or agent for another, for the purpose of performing operations within the jurisdiction of the commission shall perform such operations without having on file with the commission an approved [ prior to acceptance and approval by the commission of an ] organization report and financial security as required by Texas Natural Resources Code §§91.103-91.1091 . Operations within the jurisdiction of the commission include, but are not limited to, the following:

(A)-(K)

(No change.)

(2)-(3)

(No change.)

(4)

The organization report shall [ must ] contain the following information:

(A)

the name, street address, [ and ] mailing address , telephone number, and emergency after-hours telephone number of the organization;

(B)

(No change.)

(C)

for each officer, director, general partner, owner of more than 25% ownership interest, or trustee (hereinafter controlling entity) of the organization:

(i)

that entity's or individual's full legal name, the name(s) under which such entity or individual conducts business in the State of Texas, and all assumed names [ name ];

(ii)

the following:

(I)

if the entity is an individual, his or her social security number [ driver's license number ];

(II)

if the entity is not an individual, [ either ] the name and valid driver's license number of each officer, director, or other person, who, under Texas Natural Resources Code, §91.114, holds a position of ownership or control of the organization [ of the primary individual in control of the entity, ] or an active P-5 number for that entity. All controlling entities connected to an organization which are not individuals shall provide the identification of the individuals in ownership or control of those entities.

(III)

if any individual subject to this subparagraph has no valid driver's license or social security number, the individual shall submit a valid Texas State Identification Card number issued by the Texas Department of Public Safety.

[ (III)

if any individual subject to this clause has a driver's license, he or she may, at such individual's option, submit his or her social security number instead of his or her driver's license number. If any individual subject to this subparagraph has no driver's license and does not wish to submit a social security number, he or she shall submit an official state identification number, such a Texas state identification card number issued by the Texas Department of Public Safety. If such individual has no driver's license or official state identification number, and does not wish to submit his or her social security number, then such individual shall submit his or her full legal name; ]

(iii)

a street address different than that of the organization; and

(iv)

if different from the mailing address of the organization, a mailing address;

(D)

(No change.)

(E)

the name of any non-employee agent that the organization authorizes to act for the organization in signing Oil and Gas Division certificates of compliance which initially designate the operator or change the designation of the operator. Organizations may designate non-employee agents to execute subsequent organization reports. That designation shall be authorized by the organization and not by a non-employee agent.

(5)-(6)

(No change.)

(7)

An organization shall refile an organization report annually according to the schedule assigned by the commission. Prior to the filing date, the commission shall mail notification and information to each organization for update of the organization report file. An organization shall file an amended organization report within 15 days after a change in any information required to be reported in the organization report. Only address changes may be made by letter.

(8)

The commission shall meet any requirement under statute or commission rule for an order to be sent or notice to be given by the commission to an organization by mailing the item to the organization's mailing address shown on the most recently filed organization report or the most recently filed letter notification of change of address. Notices sent by regular first-class mail shall be presumed to have been received if, upon arrival of the deadline for any response to the notice, the wrapper containing the notice has not been returned to the commission. Any commission action or proceeding for which notice is required shall go forward on the basis of the notice provided under this subsection, whether or not actual notice has been received. Service of notices and orders sent by certified mail is effective upon:

(A)

acceptance of the item by any person at the address;

(B)

initial failure to claim or refusal to accept the item by any person at the address prior to its eventual return to the commission by the United States Postal Service; or

(C)

return of the item to the commission by the United States Postal Service bearing a notation such as "addressee unknown," "no forwarding address," "forwarding order expired," or any similar notation indicating that the organization's mailing address shown on the most recently filed organization report or address change notification letter is incorrect.

(9)

An organization may also designate to the commission in writing a specified address for all commission correspondence relating to a particular district. If designated by an operator, this specified address shall be used in lieu of the organization address for any notices, other than hearing notices, pertaining to that district.

[ (7)

Organization reports must be refiled annually according to the schedule assigned by the commission. Prior to the filing date, the commission will mail notification and information to each organization for update of the organization report file. An amended organization report must be filed within 15 days after a change in any information required to be reported in the organization report. Address changes only may also be reported by letter. Any requirement under statute or commission rule for an order to be sent or notice to be given by the commission to an organization may be met by mailing the item to the organization's mailing address shown on the most recently filed organization report or the most recently filed letter notification of change of address. Notices sent by regular first-class mail may be presumed to have been received if, upon arrival of the deadline for any response to the notice, the wrapper containing the notice has not been returned to the commission. Service of notices and orders sent by certified mail is effective upon: acceptance of the item by any person at the address; initial failure to claim or refusal to accept the item by any person at the address prior to its eventual return to the commission by the United States Postal Service; or return of the item to the commission by the United States Postal Service bearing a notation such as "addressee unknown," "no forwarding address," "forwarding order expired," or any similar notation indicating that the organization's mailing address shown on the most recently filed organization report or address change notification letter is incorrect. Any commission action or proceeding for which notice is required may go forward on the basis of the notice provided under this subsection, whether or not actual notice has been received. ]

(10)

The commission may return, unapproved, to the organization address an organization report which is submitted to the commission not fully completed according to the report's written instructions and not timely corrected. In the event that the commission returns an organization report, all submitted financial assurances shall remain non-refundable. If an organization report approved by the commission is found to contain information that was materially false at the time it was submitted for approval, the commission may suspend or revoke the organization report after notice and opportunity for hearing.

(b)-(c)

(No change.)

(d)

Issuance of permits to organizations without active organization reports.

(1)

Notwithstanding contrary provisions of this section, the commission or its delegate may issue a permit to an organization or individual that does not have an active organization report or does not ordinarily conduct oil and gas activities when the issuance of such a permit is determined to be necessary to implement a compliance schedule, or to remedy circumstances or a violation of a commission rule, order, license, permit, or certificate of compliance relating to safety or the prevention of pollution. For permits issued under this subsection, the commission may impose special conditions or terms not found in like permits issued pursuant to other commission rules. Any organization or individual who requests such a permit shall file an organization report and any other required forms for record- keeping purposes only. The report or form shall contain all information ordinarily required to be submitted to the commission.

(2)

This section shall not limit the commission's authority to plug or to replug wells or to clean up pollution or unpermitted discharges of oil and gas waste.

(e)

Organizations that file for bankruptcy shall provide written notice to the commission within 72 hours by submitting the notice to the Enforcement Section of the Office of General Counsel. All bankruptcy-related notices sent to the commission shall be submitted in writing to that section.

(f)

Organization reports shall not be approved unless the organization has complied with state registration and taxation requirements and is in good standing with the Secretary of State and the Comptroller of Public Accounts.

§3.58.Oil, Gas, or Geothermal Resource Operator's Reports.

(a)

Producer's transportation authority and certificate of compliance.

(1)

Each operator who is a producer of crude oil, natural gas, or geothermal resources shall [ is required to ] file with the commission's Austin office a producer's transportation authority and certificate of compliance for each of the operator's [ his ] producing properties certifying that the operator has complied with the conservation laws and the oil, gas, and geothermal resources conservation orders, rules, and regulations of the commission in respect to each property. When this report is filed, the oil and gas division shall [ will ] review the report for completeness and accuracy . When [ and, when ] approved, this report shall authorize [ authorizes ] a transporter (whether the operator or someone else) to transport the oil, gas, or geothermal resources from such property. No certificate of compliance designating or changing the designation of an operator will be approved that is signed, either as transferor or transferee, by a non-employee agent of the organization unless the organization has filed with the commission, on its organization report, the name of the non-employee agent it has authorized to sign such certificates of compliance on its behalf.

(2)-(4)

(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 February 25, 2000.

TRD-200001423

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: April 9, 2000

For further information, please call: (512) 475-1295


Part 8. TEXAS RACING COMMISSION

Chapter 303. GENERAL PROVISIONS

Subchapter D. TEXAS-BRED INCENTIVE PROGRAMS

2. PROGRAMS FOR HORSES

16 TAC §303.92

The Texas Racing Commission proposes amendments to rule §303.92 concerning the rules for the Texas Bred Incentive Program for thoroughbred horses. The amendment was presented to the commission as a rulemaking petition under 16 Tex. Admin. Code §307.33 by the Texas Thoroughbred Association, the officially designated breed registry for thoroughbred horses in Texas. According to the petition, the first amendment is necessary to provide for the orderly administration of the awards program. The second amendment provides for disciplinary proceedings relating to misconduct by participants in the accreditation program. The proposed proceedings provide for notice and an opportunity to be heard, consistent with the constitutional requirements for due process.

Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined, based on the petition, that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Marcus 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 participants in the program will be ensured that the administration of the program will be conducted in an orderly and constitutional manner. There will be no fiscal implications for small 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 May 1, 2000, to Roselyn Marcus, General Counsel 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, which authorizes the Commission to adopt rules relating to the accounting, audit and distribution of all amount set aside for the Texas-bred program; and §9.01, which authorizes the Commission to approve and adopt rules developed by the breed registries.

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

§303.92.Thoroughbred Rules.

(a) - (b)

(No change.)

(c)

Procedure for Payment of Awards.

(1)

Conditions precedent for payment of awards are:

(A) - (E)

(No change.)

(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)

(No change.)

(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 February 25, 2000.

TRD-200001424

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Proposed date of adoption: May 2, 2000

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


Chapter 309. RACETRACK LICENSES AND OPERATIONS

Subchapter C. HORSE RACETRACKS

1. RACETRACKS

16 TAC §309.202

The Texas Racing Commission proposes an amendment to §309.202, concerning the specifications for a horse racetrack. The amendment was presented to the commission as a rulemaking petition under 16 Tex. Admin. Code §307.33 by the Texas Horsemen’s Partnership, L.L.P., the organization recognized by the Commission pursuant to the Texas Racing Act to represent horse owners, breeders and trainers. According to the petition, the amendment makes changes to the track length requirements and provides for a back chute for all racetracks in order to ensure access to all breeds of horses and accommodate races of the length and distance commonly run by breeds other than quarter horses.

Roselyn Marcus, General Counsel 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. Marcus 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 there is increased racing opportunities for owners and trainers of all breeds. There will be no fiscal implications for small or micro businesses. The Commission recommended that the rule, if adopted, have an effective date of June 1, 2001. This is to limit the fiscal impact on the only licensed racetrack not in compliance with the proposed amendment. There is an anticipated economic cost to any new racetrack that will be built in order to comply with the amendment as proposed. Although the cost of compliance will vary depending on the total size of the track, materials used, and track location’s geographic conditions, the Commission estimates the cost of construction of a new racetrack to these specifications to be $1 million to $1.5 million. The proposal has no effect on the state’s greyhound breeding, or greyhound training industries. The proposal may have a positive effect on the state’s agricultural, horse breeding, and horse training industries in that there may be additional racing opportunities distribution to Texas horsemen as a result of this proposal.

Comments on the proposal may be submitted on or before May 1, 2000, to Roselyn Marcus, General Counsel 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; and §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of racetracks.

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

§309.202.Track Length.

(a)

A racetrack must consist of an oval , [ and ] a chute on the grandstand side of the oval , and a chute on the back side of the oval at the opposite end from the grandstand side chute. [ The racetrack may also have a chute on the back side of the oval at the opposite end of the oval from the grandstand side chute. ]

(b)

The oval must be, measured along a line three feet out from the face of the inside rail:

(1)

for a Class 1 racetrack, at least one mile in circumference;

(2)

for a Class 2 racetrack , at least seven-eighths mile in circumference; and

[ (A)

for a track not yet constructed, at least three-fourths mile in circumference; ]

[(B)

for a track already constructed but for which the association proposed extensive track modification in its license application, at least three-fourths mile in circumference; and ]

[(C)

for at track already constructed and for which the association proposed little or no track modification in its license application, at least five-eighths mile in circumference; and]

(3)

for a Class 3 or 4 racetrack, at least five eighths mile in circumference.

(c)

The length of the chute on the grandstand side shall be such that the distance [ , measured ] from the starting gate to the finish line must be:

(1)

for a Class 1 or Class 2 racetrack, at least 550 yards; and

(2)

for a Class [ 2, ] 3 or Class 4 racetrack, at least 440 yards.

(d)

The length of a chute on the back side shall be such that the distance [ , measured ] from the starting gate to the finish line, must be:

(1)

for a one mile track, at least seven furlongs long , so as to accommodate a race at a distance of seven furlongs ;

(2)

for a seven-eighths mile track and a three-fourths mile track, at least six furlongs long , so as to accommodate a race at a distance of six furlongs; and

[ (3)

for a five-eighths mile track at a Class 2 racetrack, at least five furlongs long; and ]

(3)

[ (4) ] for a five-eighths mile track at a Class 3 or 4 racetrack, at least four furlongs long.

(e) - (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 February 25, 2000.

TRD-200001425

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Proposed date of adoption: May 2, 2000

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


Subchapter D. GREYHOUND RACETRACKS

1. FACILITIES AND EQUIPMENT

16 TAC §309.309

The Texas Racing Commission proposes an amendment to §309.309, concerning lockout kennels. The amendments to the specifications to the crates located in the lockout kennel are proposed to improve the safety and prevent injury to the greyhounds. The amendments were recommended by the commission veterinarians and supported by the Texas Greyhound Association.

Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Marcus has also determined 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 greyhounds that are racing at Texas racetracks will be in a safe environment. 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 May 1, 2000, to Roselyn Marcus, General Counsel 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 authorize the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of racetracks.

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

§309.309.Lockout Kennel.

(a)

(No change.)

(b)

Each crate located in the lockout kennel must:

(1)

be constructed of a smooth, hard material, such as stainless steel or tile;

(2)

be at least three feet wide, four feet deep, and four feet high;

(3)

be constructed so that the crate floor is not in direct contact with the concrete surface; [ be equipped with casters for rolling; ]

(4)

be located on the floor level to prevent greyhounds from sustaining jumping injuries; and

[ (5)

have a door that leaves a one inch clearance on each side to prevent injury to a greyhound’s tail or feet; and]

(5)

[ (6) ] have a drop latch on the door.

(c) - (d)

(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 February 25, 2000.

TRD-200001426

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Proposed date of adoption: May 2, 2000

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


Chapter 313. OFFICIALS AND RULES OF HORSE RACING

Subchapter D. RUNNING OF THE RACE

1. JOCKEYS

16 TAC §313.409

The Texas Racing Commission proposes an amendment to §313.409, concerning jockey mount fees. The amendment was presented to the commission as a rulemaking petition under 16 Tex. Admin. Code §307.33 by the Jockeys Guild. The amendment increases one minimum payment for third mount fees and eight minimum payments for losing mounts.

Roselyn Marcus, General Counsel 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. Marcus 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 jockeys are paid fairly for their services. There is an increased cost to horse owners whose horses run in the purse categories that have increased fees. The amount of the cost is $5 per race. The proposal has no effect on the state’s greyhound breeding, or greyhound training industries. The proposal may have a positive effect on the state’s agricultural, horse breeding, and horse training industries in that there may be additional racing opportunities and increased purse distribution to Texas horsemen as a result of this proposal.

Comments on the proposal may be submitted on or before May 1, 2000, to Roselyn Marcus, General Counsel 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; and §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of racetracks.

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

§313.409.Jockey Mount Fees.

(a) - (b)

(No change.)

(c)

In the absence of a written agreement, the following jockey mount fees apply:

Figure: 16 TAC §313.409(c)

(d) - (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 February 25, 2000.

TRD-200001427

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Proposed date of adoption: May 2, 2000

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