TITLE 16.ECONOMIC REGULATION

Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

Subchapter D. RECORDS, REPORTS, AND OTHER REQUIRED INFORMATION

16 TAC §25.100

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Public Utility Commission of Texas (commission) proposes the repeal of §25.100 relating to Other Records, Reports, and Information that May be Required. The information will be provided as an appendix to each chapter that will allow for more frequent updates without the restrictions of a rulemaking proceeding. The appendix will be made available through the commission's Central Records and on the commission's web site. Project Number 22047 has been assigned to the proposed repeal of §25.100.

Rhonda Dempsey, Rules Coordinator, Office of Regulatory Affairs has determined that for each year of 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 enforcing or administering the repeal.

Ms. Dempsey has determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the convenience of having the list of reporting requirements maintained as an appendix which can be updated more frequently and therefore provide more current information. There will be no effect on small businesses or micro businesses as a result of repealing the section. There is no anticipated economic cost to persons as a result of repealing the section.

Ms. Dempsey has also determined that for each year of the first five years the repeal is in effect there will be no impact on employment in the geographical area affected by the repeal of the section, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed repeal (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. All comments should refer to Project Number 22047.

The repeal is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (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.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002.

§25.100. Other Records, Reports, and Information that May be Required.

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 March 3, 2000.

TRD-200001683

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: April 16, 2000

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


Subchapter E. CERTIFICATE, LICENSING AND REGISTRATION

16 TAC §§25.105, 25.109, 25.111

The Public Utility Commission of Texas (commission) proposes an amendment to §25.105 relating to Registration and Reporting by Power Marketers, Exempt Wholesale Generators, and Qualifying Facilities, new §25.109 relating to Registration of Power Generation Companies and Self-Generators, and new §25.111 relating to Registration of Aggregators. The proposed amendment and new rules will implement provisions of the Public Utility Regulatory Act (PURA) §§39.351, 39.353, 39.354, 39.3545, 39.356 and 39.357. The §25.105 amendment retains existing requirements for power marketers but eliminates requirements for exempt wholesale generators and qualifying facilities in order to eliminate duplication with the proposed new requirements for power generation companies. Section 25.109 establishes registration requirements and procedures for power generation companies, including exempt wholesale generators and qualifying facilities, that generate more than one megawatt of electricity and intend to sell electricity at wholesale. It also establishes registration requirements and procedures for self-generators that generate more than one megawatt of electricity but do not intend to sell electricity at wholesale. Section 25.111 establishes registration requirements and procedures for persons and public entities seeking to aggregate the loads of electricity customers. Project Number 21082 has been assigned to this proceeding.

Project Number 21082, Certification of Retail Electric Providers and Registration of Power Generation Companies and Aggregators; Forms, was established in July 1999 as part of the plan for implementing Senate Bill 7, Act of May 21, 1999, 76th Legislature, Regular Session, chapter 405, 1999 Texas Session Law Service 2543, 2591 (Vernon) (codified as an amendment to the Public Utility Regulatory Act, Texas Utilities Code Annotated §§39.351, 39.353, 39.354, 39.3545, 39.356, and 39.357). Senate Bill 7, the Electric Restructuring Act, amends several sections of the Public Utility Regulatory Act (Vernon 1999) (PURA) and became effective September 1, 1999. The commission staff posted questions for comment on its Internet site on October 20, 1999 and published an invitation to comment in the Texas Register on October 22, 1999 (24 TexReg 9434). The staff prepared drafts of §25.109 and §25.111 in December 1999, which were discussed at a workshop held on December 15, 1999. A second draft of §25.111 was prepared in January 2000 with an invitation for comments from interested persons. Written comments were received and used to prepare a third draft of §25.111, which was discussed at a workshop held on January 20, 2000. Written comments were received on the first draft of §25.109 in early January. The comments were used to develop a second draft of §25.109, which also was discussed at the workshop held on January 20, 2000.

Revision of §25.105 relating to Registration and Reporting by Power Marketers, Exempt Wholesale Generators, and Qualifying Facilities was added to Project Number 21082 to eliminate duplication of requirements with proposed §25.109 and with rules being drafted in Project Number 21081, Market Power Mitigation Plans and Generating Capacity Reports. Specifically, all existing registration and reporting requirements in §25.105 pertaining to exempt wholesale generators (EWGs) and qualifying facilities (QFs) are proposed for deletion from §25.105. Proposed §25.109 addresses the registration of EWGs and QFs. Rules being drafted in Project Number 21081 will address reporting requirements for EWGs and QFs. Proposed §25.109 provides for the registration of self generators because implementation of PURA §39.154, relating to Limitation and Ownership of Installed Capacity, will require the commission to make an assessment of the capacity of generating facilities used to generate electricity for the consumption of the person owning or controlling the facility.

The commission seeks comments on the proposed rules from interested persons. Parties should organize their comments in a manner that parallels the organization of the proposed rules.

When commenting on specific subsections of the proposed rules, parties are encouraged to describe "best practice" examples of regulatory policies, and their rationale, that have been proposed or implemented successfully in other states already undergoing electric industry restructuring, if the parties believe that Texas would benefit from application of the same policies. The commission is only interested in receiving "leading edge" examples which are specifically related and directly applicable to the Texas statute, rather than broad citations to other state restructuring efforts.

In addition, the commission requests that interested parties specifically address the issues set out below pertaining to §25.111, Registration of Aggregators:

1. The proposed rule is drafted from the perspective that aggregators negotiate with retail electric providers (REPs) on behalf of a group of electricity customers. However, similar services could be provided to customers by a consultant without direct negotiation with a REP on behalf of the customers. The commission invites comments on whether the rule draws an appropriate distinction between consultation and aggregation services.

2. The workshop transcripts reveal that views vary widely on whether, and under what conditions, aggregators should accept monies from electricity customers. The proposed rule attempts to establish customer protection strategies without substantially constraining possibilities for compensation to aggregators for aggregation services. First, the rule prohibits private aggregators from accepting payments or prepayments for electric service, but the rule is silent on this topic with respect to public aggregators. Second, the rule imposes financial requirements only on the aggregators who are persons, and who accept payments for aggregation services. The rule does not impose financial requirements on public entities. The rule does not dictate whether or not the aggregator is, functionally speaking, a buyer's agent, a seller's agent, or both. Instead, for customer information, the rule requires disclosure to the customers of the basis on which the aggregator will be compensated for services, such as fees from the REP, pre-paid fees from the customer, payments from the customer upon delivery of service, a combination of the above, or other methods. This requirement is applicable only to aggregators who are persons. The commission requests comment on whether the rule strikes the proper balance in allowing market forces to operate while protecting customers.

3. In certain instances, statutory conditions that appear applicable to all aggregators are stated in PURA §39.353, relating to Registration of Aggregators, but are not restated in PURA §39.354 and §39.3545, which concern the registration of public aggregators. Because a person can seek registration as both a private and a public aggregator, a person could be subject to different operating constraints for public customers than private customers. The commission requests comment on the extent to which the following matters apply to all aggregators:

(a) First, PURA §39.353 states, "A retail electric provider is not an aggregator." The commission interprets this sentence to mean that certificated REPs cannot also be registered as aggregators that register pursuant to that PURA provision. How should the absence of the sentence in §39.354 and §39.3545 be construed? If REPs were allowed to register as public aggregators, what would be the practical result?

(b) Second, PURA §39.353 states, "Aggregators may not take title to electricity." The commission interprets this sentence to mean that aggregators registering pursuant to this provision may not accept payment for electricity services from customers. How should the absence of this sentence in PURA §39.354 and §39.3545 be construed? If the prohibition does not apply to all aggregators, then persons who are registered as both a private and a public aggregator could be in the position of taking title to electricity for some customers, and accepting their payments, while not doing so for others. What are the implications of such a result?

4. From a customer perspective, what are the differences between aggregators and REPs? How will a customer be able to distinguish a REP from an aggregator? The commission invites comment on ways, if any, this rule should further differentiate the role of the aggregator in the market place from that of the REP.

Ms. Jan Bargen, Senior Policy Analyst, Office of Policy Development, 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. Bargen 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 protection of the public interest and a uniform process of registering power generation companies and aggregators in Texas. There will be no effect on small businesses or micro-businesses as a result of enforcing these sections. There is no anticipated economic cost to persons who are required to comply with the sections as proposed.

Ms. Bargen 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.

The commission staff will conduct a public hearing on this rulemaking under Government Code §2001.029 at the commission's offices, located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701, on Tuesday, April 18, 2000, at 9:30 a.m.

Comments on the proposed amendment and new rules (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, PO Box 13326, Austin, Texas 78711-3326, within 21 days after publication. Reply comments may be submitted within 28 days after publication. Parties are also requested to e-mail an electronic copy of comments to jan.bargen@puc.state.tx.us, if possible.

The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed sections. The commission will consider the costs and benefits in deciding whether to adopt the sections. All comments should refer to Project Number 21082.

The amendment and new rules are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998 and Supp. 1999) (PURA), which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA §39.154, which requires the commission to make a calculation of installed generation capacity that depends in part on the capacity of generating facilities used to generate electricity for consumption by the person controlling the facility; §39.157, which grants the commission authority to address market power and requires it to review reports of installed generation capacity; §39.351, which grants the commission authority to require registration of power generation companies; §39.353, which grants the commission authority to establish terms and conditions necessary for the regulation of the reliability and integrity of aggregators; §39.354 and §39.3545, which require the commission to develop registration procedures for municipal and political subdivision aggregators; §39.356, which grants the commission authority to establish terms under which the commission may suspend or revoke a power generation company's or an aggregator's registration; and §39.357, which grants the commission authority to impose an administrative penalty for violations of §39.356.

Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 15.023, 15.024, 39.351, 39.353, 39.354, 39.3545, 39.356, and 39.357.

§25.105. Registration and Reporting by Power Marketers[ , Exempt Wholesale Generators, and Qualifying Facilities ].

(a)

Purpose. This section contains the registration and reporting requirements for a person intending to do business in Texas as a power marketer [ (PM), exempt wholesale generator (EWG), or qualifying facility (QF) ].

(b)

Applicability.

(1)

A power marketer [ PM, EWG, or QF ] becomes subject to this section on the date that it first buys or sells electric energy at wholesale in Texas.

(2)

No later than 30 days after the date it becomes subject to this section, a power marketer [ PM, EWG, or QF ] shall register with the commission or provide proof that it has registered with the Federal Energy Regulatory Commission (FERC) or been authorized by the FERC to sell electric energy at market- based rates.

(c)

Initial information. Regardless of whether it has registered with the FERC, a power marketer [ PM, EWG, or QF ] shall:

(1)

Provide its address and [ State: whether it is a PM, EWG, or QF; its address; ] the name, address, telephone number, facsimile transmission number, and e-mail address of the person to whom communications should be addressed; and the names and types of businesses of the owners (with percentages of ownership).

(2)

Identify each affiliate that buys or sells electricity at wholesale in Texas; sells electricity at retail in Texas; or is an electric or municipally owned utility in Texas.

(3)

Describe the location of any facility in Texas [ each existing facility ] used to provide service . [ A power marketer should describe the location of each office from which it carries on its business in Texas. An EWG or QF should describe each of its existing generating units in Texas, by providing the following information: ]

[ (A)

Name;]

[ (B)

Net dependable capacity in megawatts (MW);]

[ (C)

Primary and secondary fuels;]

[ (D)

Technology (e.g., combined cycle, wind turbines, air pump storage);]

[ (E)

If the unit is a cogenerator, maximum amount of capacity in MW reserved to serve its steam host by year;]

[ (F)

Location, by county, utility service area, and control area;]

[ (G)

Reliability council; and]

[ (H)

Commercial operation date.]

(4)

Provide a description of the type of service provided. [ the following information for each generating unit planned or under construction: ]

[ (A)

A copy of pages 1 and 2 of Texas Natural Resource Conservation Commission Form PI-1, General Application, Air Quality Permit;]

[ (B)

Gross and net capacity design ratings in MW; and]

[ (C)

Copies of press releases announcing the major construction milestones.]

(5)

Submit copies of all of its FERC registration information, filed with FERC subsequent to the effective date of this section.

[ (6)

Submit the information required in subsection (d) of this section for the previous year. If a person files under this subsection between January 1 and February 28, the information required in subsection (d) of this section can be provided in a separate filing by February 28.]

(6)

[ (7) ] Submit an affidavit by an authorized person that the registrant is a power marketer [ PM, EWG, or QF ].

[ (d)

Annual information for existing generating units. An EWG or QF shall provide the following information by February 28 of each year:]

[ (1)

Total company megawatt-hour (MWH) generation at the busbar in Texas, by reliability council, for the immediately preceding year;]

[ (2)

Total company MWH wholesale sales in Texas, by reliability council, for the immediately preceding year; and.]

[ (3)

Total company firm capacity commitments in MW for generating units in Texas, by reliability council, for the current calendar year and the following four calendar years.]

(d)

[ (e) ] Material change in information. Each power marketer [ PM, EWG, or QF ] shall report any material change in the information provided pursuant to this section within 30 days of the change.

(e)

[ (f) ] Commission list of power marketers[ , exempt wholesale generators, and qualifying facilities ]. The commission will maintain a list of power marketers [ PMs, EWGs, and QFs ] registered in Texas.

§25.109. Registration of Power Generation Companies and Self-Generators.

(a)

Application.

(1)

A person that owns an electric generating facility in Texas and is either a power generation company (PGC), as defined in §25.5 of this title (relating to Definitions), or a qualifying facility (QF) as defined in §25.5 of this title, and generates electricity intended to be sold at wholesale, must register as a PGC.

(2)

A person that owns an electric generating facility rated at one megawatt (MW) or more, but is not a PGC, must register as a self-generator. A QF that does not sell electricity or provides electricity only to the purchaser of the facility's thermal output must register as a self-generator.

(3)

A person that owned such generating facility prior to September 1, 2000 may register any time between September 1, 2000 and January 1, 2001. A person that becomes subject to this section after September 1, 2000 must register on or before the first date of generating electricity.

(b)

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

(1)

Nameplate rating - The full-load continuous rating of a generator under specified conditions as designated by the manufacturer.

(2)

Net dependable capability - The maximum load in megawatts, net of station use, which a generating unit or generating station can carry under specified conditions for a given period of time, without exceeding approved limits of temperature and stress.

(c)

Capacity ratings. For purposes of this section, the capacity of generating units shall be reported as follows:

(1)

Renewable resource generating units shall be rated at the nameplate rating;

(2)

All other generating units having a nameplate capacity rating of ten MW or less shall be rated at the nameplate capacity; and

(3)

All other generating units having a nameplate capacity rating greater than ten MW shall be rated at the summer net dependable capability.

(d)

Registration requirements for self-generators. To register as a self-generator, a person shall provide the following information:

(1)

The legal name of the registering party.

(2)

The Texas business address and principal place of business of the registering party.

(3)

The name, title, address, telephone number, facsimile transmission number, and e-mail address of the person to whom communications relating to the self-generator should be addressed.

(4)

For each generating facility that is located in the state, the following information:

(A)

Name;

(B)

Location by county, utility service area, control area, power region, and reliability council; and

(C)

Capacity rating in megawatts.

(e)

Registration requirements for power generation companies. To register as a PGC, a person shall provide the following information:

(1)

The legal name of the registering party as well as any trade or commercial name(s) under which the registering party intends to operate.

(2)

The registering party's Texas business address and principal place of business.

(3)

The name, title, address, telephone number, facsimile transmission number, and e-mail address of the person to whom communications should be addressed.

(4)

The names and types of business of the registering party's corporate parent companies, along with percentages of ownership.

(5)

A description of the types of services provided by the registering party that pertain to the generation of electricity.

(6)

The name and corporate relationship of each affiliate that buys and sells electricity at wholesale in Texas, sells electricity at retail in Texas, or is an electric or municipally owned utility in Texas.

(7)

For each generating facility that is located in the state, the following information:

(A)

Name;

(B)

Location by county, utility service area, control area, power region, and reliability council; and

(C)

Capacity rating in megawatts.

(8)

For any such application that was filed after the effective date of this section, copies of any information, excluding responses to interrogatories, that was filed with the Federal Energy Regulatory Commission (FERC) in connection with registration with the FERC, and any order issued by the FERC pursuant thereto. Such registrations shall include, for example, determination of exempt wholesale generator (EWG) or QF status.

(9)

An affidavit by an authorized person attesting that the registering party:

(A)

Generates electricity that is intended to be sold at wholesale;

(B)

Does not own a transmission or distribution facility in this state other than an essential interconnecting facility, a facility not dedicated to public use, or a facility otherwise excluded from the definition of "electric utility" under §25.5 of this title; and

(C)

Does not have a certificated service area.

(f)

Registration procedures. The following procedures apply to the registration of PGCs and self-generators.

(1)

Registration shall be made by completing the form approved by the commission, which shall be verified by oath or affirmation and signed by an owner, partner, or officer of the registering party. Registration forms may be obtained from the Central Records division of the Public Utility Commission of Texas during normal business hours, or from the commission's Internet site. Each registering party shall file its registration form with the commission's Filing Clerk in accordance with the commission's procedural rules, Chapter 22 of this title, Subchapter E (relating to Pleadings and Other Documents).

(2)

The commission staff shall review the submitted form for completeness. Within 15 business days of receipt of an incomplete request, the commission staff shall notify the registering party in writing of the deficiencies in the request. The registering party shall have ten business days from the issuance of the notification to cure the deficiencies. If the deficiencies are not cured within ten business days, the staff will notify the registering party that the registration request is rejected without prejudice.

(3)

The registering party may designate answers or documents that it believes to contain proprietary or confidential information. Information designated as proprietary or confidential will be treated in accordance with the standard protective order issued by the commission applicable to registration information for PGCs and self-generators.

(g)

Post-registration requirements for self-generators. Self-generators shall report any material change in the information provided on the registration form by February 28 of each year.

(h)

Post-registration requirements for power generation companies. PGCs shall report any material change in the information provided on the registration form within 45 days of the change. A material change would include, for example, a merger or consolidation with another owner of electric generation facilities that offers electricity for sale in this state. PGCs shall comply with the reporting requirements of the commission's rules implementing the Public Utility Regulatory Act (PURA) §39.155(a)

(i)

Suspension and revocation of power generation company registration and administrative penalty. Pursuant to PURA §39.356, registrations granted pursuant to this section are subject to suspension and revocation for significant violations of PURA or rules adopted by the commission. The commission may also impose an administrative penalty for a significant violation at its discretion. Significant violations may include the following:

(1)

Failure to comply with the reliability standards and operational criteria duly established by the independent organization that is certified by the commission;

(2)

For a PGC operating in the Electric Reliability Council of Texas (ERCOT), failure to observe all scheduling, operating, planning, reliability, and settlement policies, rules, guidelines, and procedures established by the independent system operator in ERCOT;

(3)

Providing false or misleading information to the commission;

(4)

Engaging in fraudulent, unfair, misleading, deceptive or anti-competitive practices;

(5)

A pattern of failure to meet the conditions of this section, other commission rules, regulations or orders;

(6)

Suspension or revocation of a registration, certification, or license by any state or federal authority;

(7)

Failure to operate within the applicable legal parameters established by PURA §39.351; and

(8)

Failure to respond to commission inquiries or customer complaints in a timely fashion.

§25.111. Registration of Aggregators.

(a)

Application. Any person, municipality, political subdivision, or political subdivision corporation that aggregates the loads of two or more electric service customers for purposes of purchasing electricity services shall register with the Public Utility Commission of Texas (commission) pursuant to this section. An electric cooperative aggregating electric service customers outside of its certificated service area shall register with the commission. A single electricity customer, including a municipality or political subdivision, negotiating loads for its own use in multiple locations, does not need to register with the commission.

(b)

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

(1)

Aggregation - to join two or more electricity customers into a purchasing unit to negotiate the purchase of electricity by the electricity customer as part of a voluntary association of electricity customers, provided that an electricity customer may not avoid any non-bypassable charges or fees as a result of aggregating its load.

(2)

Aggregator - one of the following:

(A)

Private aggregator - a person joining two or more customers, other than municipalities and political subdivision corporations, into a single purchasing unit to negotiate the purchase of electricity from retail electric providers (REPs). Private aggregators may not sell or take title to electricity. REPs are not private aggregators.

(B)

Public aggregator - a public aggregator is one of the following:

(i)

Municipal aggregator - a person authorized by two or more municipal governing bodies to join the bodies into a single purchasing unit to negotiate the purchase of electricity from REPs or a municipality aggregating under Local Government Code, Chapter 303.

(ii)

Political subdivision aggregator - a person or political subdivision corporation authorized by two or more political subdivision governing bodies to join the bodies into a single purchasing unit or multiple purchasing units to negotiate the purchase of electricity from REPs for the facilities of the aggregated political subdivisions or a person or political subdivision aggregating under Local Government Code, Chapter 303.

(3)

Person - an individual, a partnership of two or more persons having a joint or common interest, a mutual or cooperative association, or a corporation, but not including a municipal corporation. For purposes of this section, an electric cooperative is considered a person only when it aggregates electricity customers located outside its certificated service area. For purposes of this section, a political subdivision or political subdivision corporation is not a person.

(4)

Political subdivision - a county, municipality, hospital district, or any other political subdivision receiving electric service from an entity that has implemented customer choice.

(5)

Political subdivision corporation - an entity consisting of two or more political subdivisions created to act as an agent, or otherwise, to negotiate the purchase of electricity for the use of the respective public facilities in accordance with Local Government Code §303.001.

(6)

Proprietary customer information - any information compiled by an aggregator on a customer in the normal course of aggregating electric service that makes possible the identification of any individual customer by matching such information with the customer's name, address, account number, type or classification of service, historical electricity usage, expected patterns of use, types of facilities used in providing service, individual contract terms and conditions, price, current charges, billing records, or any other information that the customer has expressly requested not be disclosed. Information that is redacted or organized in such a way as to make it impossible to identify the customer to whom the information relates does not constitute propriety customer information.

(7)

Revocation - the cessation of all aggregation business operations in the state of Texas, pursuant to commission order.

(8)

Suspension - the cessation of all aggregation business operations in the state of Texas associated with obtaining new customers, pursuant to commission order.

(c)

Types of aggregator registrations required.

(1)

Entities seeking to aggregate electricity customers may not provide aggregation services in the state unless they have registered with the commission. Such registration may be sought after September 1, 2000.

(2)

There are two types of registration available to aggregators. An entity seeking to aggregate under the terms and conditions set forth in the Public Utility Regulatory Act (PURA) §39.353 shall register as a "private aggregator." An entity seeking to aggregate under the terms and conditions set forth in PURA §39.354 or §39.3545, or both, shall register as a "public aggregator." The terms of eligibility and operational requirements for each type of aggregator are specified in paragraphs (3) and (4) of this subsection. If a person is eligible and wishes to perform aggregation for both private and public electricity customers, it shall obtain both registrations.

(3)

Private aggregator registration. A private aggregator may join at least two voluntary customers into a single purchasing unit to negotiate the purchase of electricity from REPs. A private aggregator shall:

(A)

be a person and not a REP;

(B)

not include municipalities, political subdivisions, or political subdivision corporations among the customers of an aggregation;

(C)

not take title to electricity, and shall not collect any money associated with payment or prepayment for electric service, as distinguished from aggregation services;

(D)

comply with the customer protection provisions, disclosure requirements, and marketing guidelines of PURA and this title;

(E)

comply with terms and conditions established by the commission to regulate reliability and integrity of aggregators.

(4)

Public aggregator registration. Public aggregators shall meet at least one of the following sets of eligibility and operational requirements:

(A)

Person that aggregates municipalities. A person registered as a public aggregator pursuant to this paragraph may join two or more authorizing municipal governing bodies into a single purchasing unit to negotiate the purchase of electricity from REPs.

(B)

Person or political subdivision corporation aggregating political subdivisions. A person or a political subdivision corporation registered as a public aggregator pursuant to this paragraph may join two or more authorizing political subdivision governing bodies, including municipal governing bodies, into single or multiple purchasing units to negotiate the purchase of electricity from REPs for the facilities of the aggregated political subdivisions.

(C)

Governing body that aggregates its citizens. A municipality or other political subdivision registered as a public aggregator pursuant to this paragraph may negotiate for the purchase of electricity and energy services on behalf of the affirmatively requesting citizens of the municipality in accordance with Local Government Code §303.002, with the option to contract with a third party for the administration of the aggregation of the purchased services.

(D)

Administrator of citizen aggregation. A person registered as a public aggregator pursuant to this paragraph may administer the aggregation of electricity and energy services purchased for requesting citizens of a municipality or other political subdivision pursuant to a contract with the municipality or political subdivision.

(d)

Requirements for public bodies seeking to register as a public aggregator. A municipality, other political subdivision, or political subdivision corporation seeking to register and operate in accordance with this section shall provide the following information on a registration form approved by the commission.

(1)

The legal name of the registering party as well as any trade or commercial name(s) under which the registering party intends to operate;

(2)

The registering party's Texas business address and principal place of business;

(3)

The names and business addresses of the registering party's principal officers;

(4)

The names of the registering party's affiliates and subsidiaries, if applicable;

(5)

Telephone number of the customer service department or the name, title and telephone number of the customer service contact person;

(6)

Name, physical business address, telephone number, fax number, and e-mail address for a regulatory contact person and for an agent for service of process, if a different person;

(7)

The types of electricity customers that the registering party intends to aggregate; and

(8)

Any other information required of public bodies on a registration form approved by the commission.

(e)

Requirements for persons seeking to register as a private aggregator, a public aggregator, or both. A person seeking to register under this section shall provide evidence of competency and experience in providing the scope and nature of its proposed services by providing the information listed in either paragraph (1) or (2) of this subsection on a registration form approved by the commission.

(1)

Standard registration.

(A)

The legal name(s) of the registering party. A registering party may operate under a maximum of five trade or commercial names, and shall provide all names to the commission;

(B)

The Texas business address and principal place of business of the registering party;

(C)

The name, title, business address, and phone number of each of the registering party's directors, officers, or partners;

(D)

Address and telephone number for the customer or member service department or the name, title and telephone number of the customer service contact person;

(E)

Name, physical business address, telephone number, fax number, and e-mail address for a Texas regulatory contact person and for an agent for service of process, if a different person;

(F)

The types of electricity customers that the registering party intends to aggregate;

(G)

Applicable information on file with the Texas Secretary of State, including, but not limited to, the registering party's endorsed certificate of incorporation certified by the Texas Secretary of State, a copy of the registering party's certificate of good standing, or other business registration on file with the Texas Secretary of State;

(H)

Disclosure of delinquency with taxing authorities in the state of Texas;

(I)

A description of prior experience of the registering party or one or more of the registering party's principals or employees in the retail electric industry or a related industry;

(J)

The names of the affiliates and subsidiaries of the registering party that provide utility-related services, such as telecommunications, electric, gas, water or cable service;

(K)

Disclosure of any affiliate relationships and the nature of any affiliate agreements with REPs or transmission and distribution utilities;

(L)

A list of other states in which the registering party and registering party's affiliates and subsidiaries that provide utility-related services, such as telecommunications, electric, gas, water, or cable service, currently conduct or previously conducted business;

(M)

Discussion of the registering party's sources of compensation for aggregation services, and an explanation of plans for disclosure to its customers of the sources of compensation for aggregation services;

(N)

Disclosure of the history of bankruptcy or liquidation proceedings of the registering party or any predecessors in interest in the three calendar years immediately preceding the registration request;

(O)

Disclosure of whether the registering party, a predecessor, an officer, director or principal has been convicted or found liable for fraud, theft or larceny, deceit, or violations of any customer protection or deceptive trade laws in any state;

(P)

A statement indicating whether the registering party is currently under investigation, either in this state or in another state or jurisdiction for violation of any customer protection law or regulation;

(Q)

The following information regarding the registering party's complaint history during the three years preceding the application:

(i)

Any complaint history regarding the registering party, registering party's affiliates or subsidiaries that provide utility-related services, such as telecommunications, electric, gas, water, or cable service, the registering party's predecessors in interest, and principals with public utility commissions or public service commissions in other states where the registering party is doing business or has done business in the past. Relevant information shall include, but not be limited to, the number of complaints, the type of complaint, status of complaint, resolution of complaint and the number of customers in each state where complaints occurred. The Office of Customer Protection shall provide similar complaint information on file at the commission for review.

(ii)

Any complaint history regarding the registering party, registering party's affiliates or subsidiaries that provide utility-related services, such as telecommunications, electric, gas, water or cable service, the registering party's predecessors in interest, and principals on file with the Texas Secretary of State, Texas Comptroller's Office, Office of the Texas Attorney General, and the Attorney General in other states where the registering party is doing business.

(R)

Any other information required of persons on a registration form approved by the commission.

(2)

Alternative limited registration. A person registering pursuant to this paragraph may aggregate only customers who seek to contract for 250 kilowatts or more, per customer, of peak demand electricity. Requirements for registration under this paragraph are as follows:

(A)

The person shall provide the commission a signed, notarized affidavit stating that it possesses a written consent from each customer it wishes to serve, authorizing the person to provide aggregation services for that customer;

(B)

The person shall complete applicable portions of the registration form other than the information prescribed in paragraph (1)(J), (K), (L), (M) and (Q) of this subsection;

(C)

The person shall meet financial requirements of this section, if applicable;

(D)

A person registering on the basis of this paragraph is subject to the applicable post-registration requirements of subsection (h) of this section.

(f)

Financial requirements for certain persons. A person seeking to register under this section who intends to take any payments from electricity customers for aggregation services, as distinguished from electric services, shall demonstrate financial resources necessary to protect customers from the loss of payments through fraud, business failure or other causes. Aggregation services are distinct from retail electric services. A person registered initially on the basis of not accepting customer payments for aggregation services shall amend its registration with a showing to the commission that it is able to comply with the requirements of this subsection in advance of accepting payments for aggregation services.

(1)

Standard financial qualifications. The amount of required financial resources shall equal the registering person's cumulative obligations to customers arising from payments for aggregation services made by customers prior to the delivery of aggregation services. A person registering under this paragraph shall disclose its methodology for calculating required financial resources on the registration form. Evidence of financial resources shall be met by:

(A)

a cash deposit or its equivalent in a separate account in a financial institution with a registered agent or a principal place of business in Texas or a financial institution acceptable to the commission;

(B)

a line of credit or a commitment letter from such an institution; or

(C)

any other financial instrument satisfactory to the commission, including, but not limited to, insurance, bonds, or guarantees from a company or an institution rated investment grade by two credit rating agencies, one of which shall be either Standard & Poors or Moody's Investor's Service (or the best rating service for insurance companies).

(D)

A person registering under this paragraph shall provide evidence that a copy of this rule has been provided to any party providing, either directly or indirectly, financial resources necessary to protect customers pursuant to this paragraph.

(E)

A person registering under this paragraph is subject to the ongoing financial requirements and other applicable post-registration requirements of subsection (h) of this section.

(2)

Alternative financial qualifications for limited registration. A person aggregating pursuant to this paragraph is limited to aggregating only customers who seek to contract for 250 kilowatts or more, per customer, of peak demand electricity. Requirements for registration on this limited basis are as follows:

(A)

The person shall provide the commission a signed, notarized affidavit indicating that it has a written consent from each customer it wishes to serve, stating that the customer is satisfied that the aggregator can provide aggregation services without establishing the cash and credit resources prescribed in paragraph (1) of this subsection.

(B)

The person shall complete portions of the registration request form other than the information prescribed in paragraph (1) of this subsection;

(C)

A person registering on the basis of this paragraph is subject to the applicable post-registration requirements of subsection (h) of this section.

(g)

Registration procedures. The following procedures apply to all entities seeking to register pursuant to this section:

(1)

A registration request shall be made on the form approved by the commission, verified by oath or affirmation, and signed by a registering party owner or partner, or an officer of the registering party. The form may be obtained from the Central Records division of the Public Utility Commission of Texas or from the commission's Internet site. Each registering party shall file its form to request registration with the commission's Filing Clerk in accordance with the commission's procedural rules, Chapter 22 of this title, Subchapter E (relating to Pleadings and Other Documents).

(2)

The registering party may identify certain information or documents submitted that it believes to contain proprietary or confidential information. Registering parties may not designate the entire registration request as confidential. Information designated as proprietary or confidential will be treated in accordance with the standard protective order issued by the commission applicable to requests to register as an aggregator.

(3)

An application shall be processed as follows:

(A)

The registering party shall immediately inform the commission of any material change in the information provided in the registration request while the request is pending.

(B)

The commission staff shall review the submitted form for completeness. Within 15 business days of receipt of an incomplete request, the commission staff shall notify the registering party in writing of the deficiencies in the request. The registering party shall have ten business days from the issuance of the notification to cure the deficiencies. If the deficiencies are not cured within ten business days, the staff will notify the registering party that the registration request is rejected without prejudice.

(C)

Based upon the information provided pursuant to subsections (d), (e), and (f) of this section, the commission shall determine whether a registering party is capable of fulfilling customer protection provisions, disclosure requirements, and marketing guidelines of PURA.

(D)

The commission shall determine whether to accept or reject the registration request within 60 days of the receipt of a complete application.

(h)

Post-registration requirements.

(1)

A registrant may not refuse to provide aggregation services or otherwise discriminate in the provision of aggregation services to any customer because of race, creed, color, national origin, ancestry, sex, marital status, source or level of income, disability, or familial status; or refuse to provide aggregation services to a customer because the customer is located in an economically distressed geographic area or qualifies for low-income affordability or energy efficiency services; or otherwise unreasonably discriminate on the basis of the geographic location of a customer.

(2)

Registrants shall comply with the commission's education, disclosure, and marketing guidelines and rules, including those pertaining to customer protection and the filing of regular reports on customer complaints. Registered aggregators may not release proprietary customer information to any person unless the customer authorizes the release in a manner approved by the commission.

(3)

A registrant shall update any changes to business name, address, or phone number within ten business days from the date of the change.

(4)

A registered aggregator shall notify the commission within 30 days of any material change to its registration request, or if the registrant ceases to meet any commission requirements.

(5)

A registrant may amend its registration by providing only the information relevant to the amendment on the registration form. The amendment shall be submitted pursuant to subsection (g)(1) of this section.

(6)

The registrant shall file an annual report with the commission on September 1 of each year on a form approved by the commission.

(7)

Persons registered pursuant to the standard financial qualifications specified in subsection (f)(1) of this section are subject to the following ongoing conditions:

(A)

The registrant shall maintain records on an on-going basis for any advance payments received from customers. Financial resources required under subsection (f)(1)(A) - (C) of this section, shall be maintained at levels sufficient to demonstrate that the registrant can cover all advanced payments that are outstanding at any given time.

(B)

The registrant shall file a sworn affidavit demonstrating compliance with subsection (f)(1)(A) - (D) of this section within 90 days of receiving the first payment for aggregation services before those services are rendered.

(C)

Financial obligations to customers shall be payable to them within 30 business days from the date the registrant notifies the commission that it intends to withdraw its registration or is deemed by the commission not able to meet its current customer obligations. Customer payment obligations shall be settled before registration is withdrawn.

(D)

Financial resources required pursuant to subsection (f)(1) of this section shall not be reduced by the registrant without the advance approval of the commission.

(E)

The annual update required by paragraph (6) of this subsection shall include a sworn affidavit attesting to compliance with subsection (f)(1) of this section, and an explanation of the methodology for that compliance.

(8)

A person that initially received its registration on the basis of not accepting payments for aggregation services, and was therefore not subject to subsection (f) of this section, shall amend its registration with a showing to the commission that it is able to comply with the requirements of subsection (f) of this section in advance of accepting payments.

(9)

Persons registered pursuant to the alternative requirements for limited registration specified in subsections (e)(2) and (f)(2) of this section shall make available to the commission the written consent of individual customers, if requested.

(10)

A registered aggregator that ceases to provide aggregation services may withdraw its registration by notifying the commission 30 days prior to ceasing operations and providing proof of refund of any monies owed to customers. An aggregator that withdraws its registration is not required to comply with paragraphs (1) - (9) of this subsection, following such a withdrawal.

(11)

A registration shall not be transferred without prior commission approval. The transferee shall submit an application for registration in accordance with this section. The commission shall determine whether to approve the transfer within 60 days of the receipt of a complete application submitted in accordance with subsection (g) of this section.

(i)

Suspension and revocation of registration and administrative penalty. Pursuant to PURA §39.356, registrations granted pursuant to this section are subject to suspension and revocation for significant violations of PURA or other rules adopted by the commission. At its discretion, the commission may also impose an administrative penalty for a significant violation. Significant violations are the following:

(1)

providing false or misleading information to the commission;

(2)

engaging in fraudulent, unfair, misleading, deceptive or anti-competitive practices;

(3)

failing to maintain the minimum level of financial resources required under subsection (f)(1) of this section, if applicable;

(4)

a pattern of failure to meet the conditions of this section, other commission rules, or orders;

(5)

bankruptcy, insolvency, or failure to meet its financial obligations on a timely basis;

(6)

suspension or revocation of a registration, certification, or license by any state or federal authority;

(7)

conviction of a felony by the registrant or a principal or officer employed by the registrant, of any crime involving fraud, theft or deceit related to the registrant's aggregation service;

(8)

failure to operate within the applicable legal parameters established by PURA §§39.353, 39.354, 39.3545, and Local Government Code Chapter 303;

(9)

failure to respond to commission inquiries or customer complaints in a timely fashion;

(10)

switching or causing to be switched the REP of a customer without first obtaining the customer's authorization; or

(11)

billing an unauthorized charge, or causing an unauthorized charge to be billed to a customer's retail electric service bill.

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 March 3, 2000.

TRD-200001689

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: April 16, 2000

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


Chapter 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS

Subchapter D. RECORDS, REPORTS, AND OTHER REQUIRED INFORMATION

16 TAC §26.100

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Public Utility Commission of Texas (commission) proposes the repeal of §26.100 relating to Other Records, Reports, and Information that May be Required. The information will be provided as an appendix to each chapter that will allow for more frequent updates without the restrictions of a rulemaking proceeding. The appendix will be made available through the commission's Central Records and on the commission's web site. Project Number 22047 has been assigned to the proposed repeal of §26.100.

Rhonda Dempsey, Rules Coordinator, Office of Regulatory Affairs, has determined that for each year of 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 enforcing or administering the repeal.

Ms. Dempsey has determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the convenience of having the list of reporting requirements maintained as an appendix which can be updated more frequently and therefore provide more current information. There will be no effect on small businesses or micro businesses as a result of repealing the section. There is no anticipated economic cost to persons as a result of repealing the section.

Ms. Dempsey has also determined that for each year of the first five years the repeal is in effect there will be no impact on employment in the geographical area affected by the repeal of the section, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed repeal (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. All comments should refer to Project Number 22047.

The repeal is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (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.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002.

§26.100. Other Records, Reports, and Information that May be Required.

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 March 3, 2000.

TRD-200001684

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: April 16, 2000

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


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 61. BOXING

As part of the rule review specified by the General Appropriations Act, House Bill (HB) 1, 75th Legislature, Regular Session, 1997, the Texas Department of Licensing and Regulation proposes the repeal of §§61.1, 61.10, 61.20 - 61.27, 61.40, 61.50 - 61.53, 61.60 - 61.63, 61.70 - 61.80, 61.90 - 61.92, 61.100 - 61.115, 61.200 - 61.202, 61.204 - 61.211 concerning boxing and new §§61.1, 61.10, 61.20, 61.21, 61.30, 61.40, 61.41, 61.42, 61.43, 61.44, 61.45, 61.46, 61.80, 61.91, 61.105, 61.106, 61.107, 61.108, 61.109, 61.110, 61.111 concerning combative sports.

Rider 167 (§167) requires state agencies to review and consider for re-adoption rules adopted under the Administrative Procedures Act. As a result of this review process, the rules were reviewed to ensure that the language was clear, that statutory provisions were not being needlessly restated, that reasons exist for the continued existence of all rules, and to address statutory changes. The proposed new rules replace existing rules that are simultaneously proposed for repeal. The new rules rearrange, consolidate and revise existing language for clarification.

Jimmy G. Martin, Director of the Enforcement Division of the Texas Department of Licensing and Regulation, has determined that for the first five-year period these sections are in effect there will be a fiscal implication for the state as a result of enforcing and administering the sections. The effect on state government for the first five years will be an estimated increase in revenue of $35,500 per fiscal year. There will be no fiscal implication on local government.

Mr. Martin has also 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 increased consumer and contestant protection.

The anticipated economic effect on small businesses and persons who are required to comply with the sections as proposed will be an increase in annual licensing fees and the addition of an event fee, visiting ring official fee, and federal identification card fee. The increases are as follows: contestant, second, and timekeeper --$10; matchmaker--$25; manager--$50; judge--$170; referee--$200; new fees per event--$500; visiting ring official--$50; and federal ID card--$20.

Comments on the proposal may be submitted to Jimmy G. Martin, Director, Enforcement Division, Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, facsimile (512) 475-2872, or electronically: jimmy.martin@license.state.tx.us . The deadline for comments is 30 days after publication in the Texas Register .

Subchapter A. PROFESSIONAL AND AMATEUR BOXING

16 TAC §§61.1, 61.10, 61.20 - 61.27, 61.40, 61.50 - 61.53, 61.60 - 61.63, 61.70 - 61.80, 61.90 - 61.92, 61.100 - 61.115

(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 Licensing and Regulation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Occupations Code, §2052 (Vernon 1999) which authorizes the Texas Department of Licensing and Regulation to promulgate and enforce a code of rules and take all action necessary to assure compliance with the intent and purpose of the Code.

The repeals affect Texas Occupations Code, §2052 and §51, (Vernon 1999).

§61.1. Authority.

§61.10. Definitions.

§61.20. Licensing-Promoter.

§61.21. Licensing--Referee.

§61.22. Licensing--Matchmaker.

§61.23. Licensing--Judge.

§61.24. Licensing--Timekeeper.

§61.25. Licensing--Manager.

§61.26. Licensing--Second.

§61.27. Licensing--Boxer.

§61.40. Bond Requirements for Promoters.

§61.50. Reporting Requirements--Promoter.

§61.51. Reporting Requirements--Ringside Physician.

§61.52. Reporting Requirements--Manager.

§61.53. Reporting Requirements--Boxer.

§61.60. Responsibilities of the Department for Timekeepers.

§61.61. Responsibilities of the Department for Medical Consultants.

§61.62. General Prohibitions.

§61.63. Responsibilities of the Department for Officials.

§61.70. Responsibilities of Promoter.

§61.71. Responsibilities--Medical Consultants.

§61.72. Responsibilities--Ringside Physician.

§61.73. Responsibilities--Referee.

§61.74. Responsibilities--Judge.

§61.75. Responsibilities--Matchmakers.

§61.76. Responsibilities--Manager.

§61.77. Responsibilities--Second.

§61.78. Responsibilities--Boxers.

§61.79. Responsibilities of the Licensee--Female Boxer.

§61.80. Fees--Annual Application Fees.

§61.90. Sanctions--Administrative Penalties.

§61.91. Sanctions--Revocation, Suspension, or Denial because of a Criminal Conviction.

§61.92. Sanctions--Indefinite Suspension.

§61.100. Technical Requirements--Conduct of Promotion.

§61.101. Technical Requirements--Ring and Equipment.

§61.102. Technical Requirements--Contract between Promoter and Boxer.

§61.103. Technical Requirements--Tickets.

§61.104. Technical Requirements--Ringside Physician.

§61.105. Technical Requirements--Referee.

§61.106. Technical Requirements--Judge Scoring.

§61.107. Technical Requirements--Timekeeper.

§61.108. Technical Requirements--Between-round Care.

§61.109. Technical Requirements--Boxer.

§61.110. Technical Requirements--Boxer's Weigh-in and Time Requirements.

§61.111. Waiver of Rules.

§61.112. Technical Requirements--Post-Contest Procedures.

§61.113. Technical Requirements--Championship Contests.

§61.114. Technical Requirements--Amateur Contests.

§61.115. Technical Requirements--Kickboxers.

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 28, 2000.

TRD-200001509

Wiliam H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 463-7348


Subchapter B. ELIMINATION TOURNAMENTS

16 TAC §§61.200 - 61.202, 61.204 - 61.211

(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 Licensing and Regulation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Occupations Code §2052 (Vernon 1999) which authorizes the Texas Department of Licensing and Regulation to promulgate and enforce a code of rules and take all action necessary to assure compliance with the intent and purpose of the Code.

The repeals affect Texas Occupations Code, §2052 and §51 (Vernon 1999).

§61.200. General.

§61.201. Definitions.

§61.202. Registration Requirements.

§61.204. Reporting Requirements-Promoter.

§61.205. General Prohibitions.

§61.206. Responsibilities of the Promoter.

§61.207. Responsibilities of the Ringside Physician.

§61.208. Responsibilities of the Registrant-Female Contestant.

§61.209. Fees.

§61.210. Technical Requirements.

§61.211. Technical Requirements-Contestant's Weigh-in and Time Requirements.

Filed with the Office of the Secretary of State, on February 28, 2000.

TRD-200001511

Wiliam H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 463-7348


61. COMBATIVE SPORTS

16 TAC §§61.1, 61.10, 61.20, 61.21, 61.30, 61.40 - 61.46, 61.80, 61.91, 61.105 - 61.111

The new rules are being proposed under the Texas Occupations Code, §2052 (Vernon 1999) which authorizes the Texas Department of Licensing and Regulation to promulgate and enforce a code of rules and take all action necessary to assure compliance with the intent and purpose of the Code.

The new rules effect the Texas Occupations Code, §2052 and §51 (Vernon 1999).

§61.1. Authority.

These rules are promulgated under the authority of the Combative Sports TEX. OCC. CODE §2052 (Vernon 1999) and the TX. Dept. of Lic. & Reg., TEX. OCC. CODE §51 (Vernon 1999).

§61.10. Definitions.

The following words and terms have the following meanings:

(1)

Amateur - A person who engages in a contest or exhibition where no cash prize is awarded to participate and who has never received any purse or other article of value, other than the maximum amount established by an amateur organization recognized by the Department.

(2)

Bout /or contest - A combative sporting event wherein contestants use their best effort to prevail through knockout, technical knockout, judges decision, pinning or any other manner authorized by the Commissioner.

(3)

Chief second - The second designated by the contestant as the primary advisor or assistant to the contestant.

(4)

Code - The Combative Sports Code.

(5)

Combative Sport - Boxing, wrestling, kick boxing, shoot wrestling, pancration fighting/wrestling, shoot fighting/wrestling or any form of competition in which a blow is struck which may reasonably be expected to inflict injury.

(6)

Commission - The Texas Commission of Licensing and Regulation.

(7)

Contestant - A boxer, wrestler, kickboxer, shoot wrestler/fighter, pancration wrestler/fighter or any other participant who competes in a combative sport, contest, bout, exhibition or match for remuneration.

(8)

Deadwood - The numerical difference between tickets printed and tickets used.

(9)

Event - An organized series of individual contests or bouts.

(10)

Executive Director - Chief Executive Officer for the Department whose statutory title is Commissioner.

(11)

License - A document issued by the Commissioner permitting a person to participate at an event or in a particular profession or trade.

(12)

Manager - A person who, under contract, agreement, or other arrangement with a contestant undertakes to directly or indirectly, control, or administer the contestant's professional affairs.

(13)

Matchmaker - One who arranges matches for professional contestants.

(14)

Person - Any natural person, corporation, partnership, association or other similar entity.

(15)

Purse - The financial guarantee or any other remuneration promised to contestants for participating in a contest and includes guarantees for cable pay per view, radio, television or motion picture rights.

(16)

Promoter - Any person or entity that produces, stages, arranges, advertises or conducts a combative sport contest.

(17)

Ring Officials - Referees, judges, physicians and timekeepers.

(18)

Ringside Physician - An individual licensed to practice medicine by the Texas State Board of Medical Examiners.

(19)

Second - A person who provides assistance or advice to a contestant during a contest.

(20)

Shoot (or shooto) wrestling/fighting or Pancration (or Pankraton, Pankration) wrestling/fighting - A form of full contact martial arts in which opponents may, while standing strike with the open hand, kick, wrestle, throw, grapple and submit.

(21)

Timekeeper - A person who is the official timer of the length of rounds/heats and the intervals between rounds/heats and counts when a contestant is down.

§61.20. General Requirements for Ring Officials and Contestants.

(a)

Contestants, promoters, referees, judges, seconds, matchmakers, managers, and timekeepers who officiate or participate in an event authorized by the Combative Sports Code must be licensed by the Commissioner.

(b)

If a licensee changes his/her address of record, the licensee shall inform the Commissioner in writing of the change within 30 days of the change.

(c)

A corporate or non-individual license holder shall notify the Commissioner of any new or additional officers, stockholders, or directors within 30 days of the change.

(d)

Each applicant must submit a completed application or renewal form and the appropriate fees.

(e)

All licensees under the Code and these rules shall behave in a professional manner and at all times pertinent to the event, exhibit the highest degree of sportsmanlike conduct.

(f)

All licensees shall furnish all information required by the Department in a reasonable time period.

(g)

All parties shall carry out the terms and conditions of contracts to which they are parties.

(h)

All contestants, managers, seconds, and referees must attend the referee's rules meeting prior to a bout.

§61.21. General Prohibitions.

(a)

Judges, Timekeepers, Matchmakers, Referees and Physicians may not have a direct or indirect financial interest in any contestant.

(b)

Neither contestant nor ring official licensed under the Code may participate in an unauthorized event, unless such event is exempted from licensing requirements under the Code.

(c)

Contestants under the age of 17 will not be issued a license. Minors age 17 but not yet 18 applying for a boxer's license must submit written consent from parent or guardian.

(d)

A matchmaker may not act as, and cannot be licensed as; a contestant, ring official or second.

(e)

A promoter may not act as, and cannot be licensed as; a referee, timekeeper, or judge. A promoter may be licensed as a manager and act as a second. A promoter may be licensed as a contestant unless prohibited by Federal law.

(f)

No person shall be allowed to participate in a contest, unless the person has proof of identification and a current license to participate in the event. Accepted proof of identification includes driver's license, passport, state issued identification cards, federal identification boxing cards, or any other identification authorized by the Commissioner.

(g)

A contest may not be held in the State of Texas unless it is approved by the Commissioner or exempted from the Code.

§61.30. Responsibilities and Authority of the Department.

(a)

The Commissioner may designate another to act in his/her stead in all matters under these rules and the Combative Sports Code.

(b)

The representative for the Commissioner in charge of a contest has complete authority over all phases of a contest, including, but not limited to the weigh-in, matching of contestants, entrance to the forum, passes to the technical zone, audit of ticket sales, and payment of purses.

(c)

For all contests, the Commissioner will assign the timekeepers, referees, ringside physicians and judges.

(d)

In title and championship fights, the Commissioner will consult with the sponsoring or sanctioning body on the assignment of judges and referees. The Commissioner will make assignments for these fights.

(e)

The Department may request of a contestant, medical tests to prove gender.

(f)

The Commissioner may recognize and enforce disciplinary sanctions, disqualification, or medical suspensions imposed by other combative sport authorities. If licensure is denied based on reciprocity with another jurisdiction, the applicant has a right to a hearing.

(g)

Selection of Ring Officials

(1)

The assignment of timekeepers, judges and referees will be made on a rotational basis from a list of licensees. Assignments are made to ensure the highest degree of safety for combative contestants. The Department will assist license holders in developing an expertise in the combative sport of their choice, to include training and shadow officiating.

(2)

The key determinate factors for assigning ring officials are:

(A)

The ring officials' level of expertise in connection with the level of expertise required for a particular contest and a particular combative sport;

(B)

the location of the fight;

(C)

the location of the licensees residence; and

(D)

any other factors as determined by the Commissioner.

(3)

If a ring official declines to work an event, that official will miss his/her rotation.

(4)

If a ring official declines to work an event five times in succession, he/she will be taken off of the rotational list.

(5)

In order to be reinstated on the rotation list, an official must complete additional training as determined by the Commissioner.

(6)

If a ring official under this subsection substitutes for another who declined to work an event, the substituting official does not lose his/her place on the rotational list.

(h)

The Department shall assign two timekeepers for each event, one to keep time and one to count for knockdowns.

(i)

The Department representative may eject any person from an event who violates Department rules or the Code.

(j)

The Department will not approve matches between contestants in different weight categories.

(k)

The Department will not approve matches between the genders.

(l)

The Commissioner or his/her designee may waive a rule if circumstances justify a waiver. The waiver must be in writing.

(m)

Licensure does not automatically authorize an individual to participate in an event.

(n)

A decision rendered after a contest shall not be changed unless the Department determines that the compilation of the referee and judges' scorecard shows a clerical or mathematical error that caused the decision to be given to the wrong contestant.

(o)

The Department may approve championship or title contests if the Department has recognized the sponsoring sanctioning organization as a legitimate combative sport organization.

(p)

Department representatives may check the number of gate ticket containers. They may also check the containers for seals or padlocks. Tickets shall be accounted for after the event and a Department representative may review that process.

(q)

The Department may require of a contestant, neurological or other medical testing.

(r)

The Department may order a drug screen at any time for good cause. If a drug screen is performed, the contestant is responsible for paying the costs of the drug screen.

§61.40. Responsibilities of the Promoter.

(a)

Bond and Insurance Requirements for Promoters

(1)

A Promoter applicant must submit to the Department proof of financial responsibility and insurance requirements. Financial responsibility may be shown by:

(A)

Submitting a financial statement prepared by a certified public accountant, showing liquid working capital of $10,000 or more; or

(B)

submitting a $10,000 performance bond guaranteeing payment of all obligations relating to the promotional activity; and

(C)

submitting a $15,000 surety bond, written by a bonding company authorized to do business in the State of Texas, which shall remain in effect for four years after the effective cancellation date.

(2)

The promoter shall provide insurance and pay all deductibles for contestants, to cover medical, surgical and hospital care with a minimum limit of $20,000 for injuries sustained while participating in a boxing contest and $50,000 to a contestant's estate if he dies of injuries received while participating in a contest. The insurance premium and deductibles shall not be deducted from the contestant's purse. The promoter shall provide to the Department for each event sponsored, a certificate of insurance showing proper coverage. The promoter shall supply to those participating in the event the proper information for filing a medical claim.

(b)

A Promoter shall:

(1)

Bear all financial responsibility for the event.

(2)

Provide the Department written notice of all proposed event dates, ticket prices, and participants of the main event, at least 21 days before the proposed event date and obtain written approval from the Department to promote the event prior to advertising or selling tickets.

(3)

Obtain written departmental approval for the fight card at least 10 working days before the event date. The request shall contain the full legal name, address, date-of-birth, ring name, Texas contestant license number, Federal Identification number, weight, previous fight record (by supplying current results from the contestant's registry recognized by the Professional Boxing and Safety Act of 1996), name of the manager or the manager agent of each contestant, and number of rounds to be fought for each contestant. In addition, the Department may require submission of certified birth certificates for contestants.

(4)

Provide written notice to the Department of any change in the card before the scheduled weigh-in. Notices announcing changes or substitutions in the card must also be conspicuously posted at the box office and announced from the ring before the opening contest.

(5)

Provide to the Department, written notice of any change in the announced or advertised location, time or card cancellations before the scheduled weigh-in.

(6)

Provide two ringside physicians for each event.

(7)

Provide at least one physician to conduct pre-fight physicals. The Department may require additional physicians depending on the event size. Provide a private area for the ringside physician to perform pre-fight examinations.

(8)

Assure that no beverages in glassware, cans, or bottles (plastic or glass) are allowed in the event.

(9)

Immediately after the event, compensate the ringside physicians, timekeepers, judges, referees and contestants. Payment of percentage contracts shall be made when the amount can be determined. Payments that do not require additional accounting or auditing, shall be made in the presence of an authorized Department representative.

(10)

Provide a private room for ring officials, no less than two private dressing rooms of adequate size for the contestants and their managers, trainers and seconds, and separate dressing rooms for male and female contestants.

(11)

Assure that no alcoholic beverages or illegal drugs are in the dressing room.

(12)

Assure that the officiating physicians perform the following duties:

(A)

perform medical examinations on contestants at the weigh-in to include a review of a contestant's answers to medical questions on the application. Only the contestant, his manager, the ringside physician, and Department representatives are allowed in the examination room during the physical;

(B)

remain at ringside at all times during the scheduled bouts;

(C)

immediately examine a contestant who suffers a knockout, concussion, or other head injury; and

(D)

conduct a post contest examination that includes the physician's recommendations for rest periods, medical disqualification, and any other exam results. Results of the post contest examination shall be reported to the Department within 24 hours after an event. A contestant shall automatically receive medical suspensions/rest periods for the following:

(i)

cut - Medical suspension time based on physician's recommendation.

(ii)

technical knockout - Minimum of 30-day medical suspension.

(iii)

knockout - 60-day minimum medical suspension for the first knockout. If a contestant has had two knockouts within 12 months, he shall be medically suspended for a minimum of 120-days. If he has had three knockouts within 12 months, or three consecutive knockouts, he will be medically disqualified from further competition;

(iv)

mandatory rest - All contestants shall receive a mandatory rest period as recommended by the ringside physician.

(13)

Ensure the safety of the contestants, officials, and spectators.

(A)

There shall be a pre-fight plan and route to remove an injured contestant from the ring and arena. Upon request, the promoter shall inform the Department of these plans. The plan shall include the name and location of a local hospital emergency room.

(B)

A sufficient number of security personnel shall be retained to maintain order.

(14)

Schedule no less than 24 or more than 60 rounds for each event. Contests between men shall have no more than three-minute rounds with one-minute rest periods between rounds. Contests between females shall have no more than two-minute rounds with one-minute rest periods between rounds. No event shall exceed 10 rounds, except a championship or title contest, which shall not exceed 12 rounds. A sparring or exhibition event shall not exceed three rounds.

(15)

Prior to advertising a championship or title contest, file with the Department the contestants' contracts.

(16)

Require contestants opposing one another to wear the same weight class of gloves.

(17)

Ensure that each event has the appropriate equipment to include:

(A)

The ring shall be a square with sides not less than 16 feet or more than 24 feet inside the ropes. The ring floor shall extend at least 24 inches beyond the ropes on all sides. The ring floor shall be of at least 3/4-inch material, adequately supported, and padded with ensolite or similar closed-cell foam that is at least 1-inch thick. The padding shall extend over the edge of the ring platform and have a top covering of canvas, duck, or similar material approved by the Department. The covering shall be clean and be tightly stretched and laced to the ring platform and may not have tears, holes or overlapping seams. The ring platform shall have at least three sets of steps into the ring during a contest: one set for each contestant's corner and one set in the neutral corner to be used for the ringside physician and the Department. The ring corners shall be protected inside the ring with a urethane pad at least six inches wide. It shall be covered with material similar to the ring floor covering, and the covering must be long enough to cover all the rope joints. Ring posts shall be made of a strong material, preferably steel, and shall be at least three inches in diameter. The posts shall be secured under the ring to prevent spreading. The ring shall be set up at least two hours before the contest is scheduled to begin.

(B)

There shall be four ring ropes at least one inch in diameter that is evenly spaced, one foot apart. The lower rope shall be 18 inches above the ring floor. The ropes shall be attached to the ring posts with turnbuckles and shall be stretched taut during all contests. The bottom rope shall be padded with at least 2 inch of soft material.

(C)

A bell that makes a sound loud enough to be heard by the contestants, referee, and other officials.

(D)

An appropriate receptacle for spitting for each contestant's corner, clean water buckets for the contestants' use, and at least three chairs or stools in each contestant's corner. The chairs shall be labeled "seconds" and shall be used only by the contestant's official seconds.

(E)

New gloves for all main events. If gloves used in preliminary contests have been used before, they shall be whole, clean, in sanitary condition, and subject to inspection by the referee and Department representatives. Any gloves found unfit shall not be used and must be replaced with acceptable gloves. There shall be extra sets of gloves on hand to be used in case gloves are broken or in any way damaged during a contest.

(F)

Contestants in all weight categories up to, and including welterweights, shall use eight-ounce gloves. In heavier classes, they may wear ten-ounce gloves. Female contestants may wear 10-ounce gloves.

(G)

Gloves shall be kept in the possession of the boxing promoter and shall be made available for inspection by the Department for a minimum of seven days after a contest.

(H)

The ring apron shall be kept clear at all times of objects including, but not limited to: cameras, microphones, and advertisements. A separate camera platform at a neutral corner of the ring for use by cameramen may be provided. Cameramen may be allowed on the ring apron during rest periods, between bouts, or at the discretion of the Commissioner. No seats may be sold at the ring apron.

(I)

There shall be a barrier and free area between the ringside and the first row of seats. There must be at least eight feet between the edge of the ringside table farthest from the ring and the first row of seats.

(J)

All emergency medical personnel and portable medical equipment shall be located within the ring barrier during the event. There must be is a resuscitator, oxygen, stretcher, a certified ambulance, and an emergency medical technician on site for all contests. The Commissioner may require additional medical personnel and equipment depending on the number of bouts scheduled.

(K)

The judges' chairs shall be high enough that their shoulders shall be no lower than the ring floor. Physician ringside seats shall be in the neutral corner(s).

(L)

There shall be at least one, but no more than three, authorized promoter representative(s) at ringside at all times. Only the promoter's representative(s), Department officials, the press, physicians, representatives of sanctioning bodies, and judges shall sit at the ringside tables.

(M)

Physician's scales to be used for weighing-in contestants. The Department may require that the scales be certified.

(18)

Assure that the weigh-in takes place at a specific time set by the promoter and approved by the Department, generally between the hours of 2 p.m. of the day before the contest and 12 noon the day of the contest.

(c)

Contract requirements between Promoter and Contestant.

(1)

The promoter for an event shall have contracts with contestants executed in triplicate on Department forms showing the amount of guarantee or percentage promised, the number and time limit of rounds, when and where the contestants are scheduled to appear, weight category, and other pertinent details governing the event. If applicable, the compensation section must include the specifics of television, radio and cable rights. The contract must define and provide for agreement on compensation if the opponent fails to appear at the weigh-in or bout. All contracts must state the dollar amount or percentage withheld for expenses, taxes, advances, sanctions or any other items the promoter seeks to subtract from a contestant's purse.

(2)

The promoter shall furnish one executed copy of the contract to the contestants or their managers, retain one, and submit one to the Department.

(3)

All required information must be typed or legibly printed, and the contestant and promoter shall initial any changes or addenda.

(d)

Tickets

(1)

All tickets shall have printed on each half, the price including any service surcharge or handling fee the promoter's license number, and event date.

(2)

Roll tickets with consecutive numbers shall be sold only at the box office on the day of the show.

(3)

Tickets of different prices shall be printed on different colored ticket stock.

(4)

The promoter shall submit a sworn inventory to the Department of tickets delivered to any outlet or event sponsor. The inventory shall account for any known overprints, changes, or extras.

(5)

Tickets shall not be sold for more than the actual capacity of the location where the event is held.

(6)

All tickets shall be torn in half and one half returned to the ticket holder at the entrance gate. The other half shall be immediately deposited in a sealed container, where it is to remain until the Department's representative witnesses the opening of the container. No one shall pass through the gate without having their ticket torn or shall occupy a seat unless holding a ticket half or have a working pass or credential with a specific seat assignment indicated on them. Passes and or credentials may not be sold or bartered.

(7)

If a main event or special added attraction is postponed or cancelled for any reason, the promoter shall promptly refund ticket sales. A special added attraction is the appearance of any person or persons at any boxing event whose reputation or ability is calculated to increase attendance. Tickets in the hands of ticket services shall be returned to the promoter not later than when the box office at the boxing event site has closed.

(8)

Promoters shall hold tickets of every description used for any event for at least 30 days after the event. The tickets shall be kept in separate packages for each event for audit purposes.

(9)

When computing gross receipts, the face value of tickets, except deadwood, shall be included whether the tickets were sold for cash, given away, or bartered for services provided.

(e)

A promoter shall submit to the Department a tax report and a 3% gross receipts tax payment within 72 hours after an event.

§61.41. Responsibilities of the Referee.

(a)

Referees are responsible for enforcing the rules of the contest and shall exercise immediate authority, direction and control over contests. The referee shall conduct a rules meeting before the first bout of the event.

(b)

The referee may eject from an event any person who violates the Code or Department rules. If a second violates these rules or the Code, the referee may disqualify the seconds' contestant.

(c)

If an assigned referee is unable to officiate, he shall notify the Department at least five hours before the contest.

(d)

The referee may stop any contest:

(1)

where there is reason to believe that continuing may result in serious injury to either contestant;

(2)

if a contestant cannot defend himself;

(3)

because of an injury or a contestant's poor physical condition; or

(4)

if the referee feels the contestants are not fighting in earnest.

(e)

If a contestant is accidentally head butted in a contest but can continue, the referee may stop the contest, for a reasonable time, and inform the judges and the contestant's second of the head butt.

(f)

If the contestant who is knocked down does not rise before the count of ten, the referee shall declare him the loser by a knockout. If the contestant appears to be seriously injured, the referee may summon the ringside physician into the ring, and declare the bout terminated by knockout.

(g)

If a mouthpiece is knocked out, the referee shall call time during a break in the action, the contestant's second will clean and reinsert the mouthpiece. If the mouthpiece is spit out the same procedure will be followed and the referee can charge the contestant with a foul.

(h)

The referee or Commissioner may disqualify a contestant and declare the opponent the winner after one warning by the referee or Department representative for the use of profanity, obscene or threatening gestures by a contestant, his manager, or his second.

(i)

When a foul occurs, the referee shall call time and advise the judges of the foul and the number of points they should deduct.

(j)

Before each bout, the referee shall call the contestants and their chief seconds together for final instructions. The referee shall hold the chief second responsible for his contestant's conduct during the contest.

(k)

When a low blow incapacitates a contestant, the referee shall give him reasonable time to recover. The referee may confer with the ringside physician. If a contestant shows an unwillingness to continue because of a low-blow claim, and the referee has resumed the fight, that contestant shall be declared the loser by a technical knockout.

(l)

Knockdowns.

(1)

When a punch knocks a contestant down, the referee shall order the opponent to go to the ring's farthest neutral corner, pointing to the corner, and immediately pick up the timekeeper's count.

(2)

The referee shall audibly announce the passing of the seconds, accompanying the count with upward motions of his arm for each second and indicating the count with visual finger counts after each second.

(3)

The referee shall stop counting if the opponent does not remain in the neutral corner until the count is complete.

(4)

No contestant who is knocked down shall be allowed to resume boxing until the referee has finished counting to eight.

(5)

If a contestant who is down rises before the count of ten and goes down again without being struck, the referee shall resume the count where he stopped.

(6)

When a round ends before a contestant who was knocked down rises, the bell shall not ring, and the count shall continue.

(7)

If a contestant rises before the count of ten, the bell shall ring ending the round.

(8)

The referee's count is the official count.

(9)

When a contestant is knocked down three times in any round, the referee shall stop the contest, and the contestant scoring the knockdowns shall be declared the winner by technical knockout.

(m)

If a contestant does not answer the bell signifying the start of a round, the referee shall give a ten count and declare him the loser by a technical knockout.

(n)

If a contestant who has been knocked out of the ring or has fallen out of the ring during the contest fails to return immediately, the referee shall give the contestant 20 seconds to return to the ring. After a 20 second count, if the contestant has not returned to the ring, the referee shall count the contestant out as if he were down. Seconds may not help contestants back into the ring.

(o)

If during the first four rounds a contestant is pushed, knocked or falls out of the ring, is injured by the fall and unable to return, the referee shall declare the bout a technical draw. If this occurs during later rounds, all completed and partial rounds in which the bout is terminated shall be scored and the contestant ahead on points shall be declared the winner by technical decision.

(p)

A referee applicant must have at least three years active experience as a referee in the combative sport he/she wishes to be licensed. Active experience means officiating in at least ten combative sporting events per year. The Commissioner may approve licensure for persons with comparative experience in any combative sport.

§61.42. Responsibilities of Judges.

(a)

A majority vote of the judging officials decides the outcome of the contest.

(b)

If an assigned judge is unable to officiate, he shall notify the Department at least five hours before the contest.

(c)

If a contest is stopped before the end of the fourth round because of an accidental head butt, the contest shall be declared a technical draw. If after the fourth round an accidental head butt injury occurs or worsens and the contest is stopped, all completed and partial rounds shall be scored. The contestant ahead on points shall be declared the winner by technical decision.

(d)

Scoring shall be recorded only on the Department-approved form. Once the form is completed, checked and signed by the official it must be given directly to the Department supervisor for the event. Scoring forms are the property of the Department and will be maintained in the official records of the event.

(e)

In all contests, the total points the referee and judges give each contestant may be announced.

(f)

A judge applicant must have at least three years active experience as a referee in the combative sport he/she wishes to be licensed. Active experience means officiating in at least ten combative sporting events per year. The Commissioner may approve licensure for persons with comparative experience in any combative sport.

§61.43. Responsibilities of Seconds.

(a)

Each contestant must have two seconds unless the Department permits otherwise. Each contestant shall have one chief second.

(b)

The seconds shall dress neatly.

(c)

Seconds shall keep their corners clean, dry, and free from objects.

(d)

Seconds may surrender for their contestants by standing on the apron and signaling to the referee.

(e)

A second may not:

(1)

excessively coach a contestant during a round and shall remain silent when instructed to do so by a Department representative or the referee;

(2)

throw excessive amounts of water on his contestant;

(3)

toss a towel or any other object into the ring in token surrender of his contestant;

(4)

use any unapproved solution during the contest.

(f)

A second shall remain seated in the chairs provided during the rounds.

(g)

If a second deliberately worsens a cut by spreading or tearing it, the referee may disqualify the contestant.

(h)

Only one second shall be allowed in the ring between rounds, and he shall leave the ring enclosure at the timekeeper's warning. Two seconds will be allowed on the ring apron. All seconds shall leave the ring platform promptly when the bell sounds for the beginning of the next round, removing all obstructions including stools, buckets and equipment.

(i)

A second shall be responsible for a contestant's corner supplies.

(1)

Approved supplies are ice, water, cotton swabs, gauze pads, clean towels, Adrenalin 1:10000, Avitene, Thromblin, petroleum jelly or other surgical lubricant, medical diachylon tape, and Enswel.

(2)

All containers shall be properly labeled with the manufacturers label and not contaminated by any foreign substance.

(3)

The use of an unapproved substance shall result in disciplinary action. No loose ice may be used in the corner and all ice must be in an ice bag or other suitable container.

(4)

Only water shall be permitted for dehydration of a contestant between rounds. Honey, glucose, or sugar, or any other substance may not be mixed with the water. Electrolyte solutions are prohibited.

(5)

Excessive use of any lubricant on the contestant's body, arms or face is prohibited.

(j)

When the ringside physician enters a contestant's corner, the second in the ring shall yield immediately to the physician's examination without interference. The referee will call time out until the physician completes the examination. This will permit the corner the full rest period to administer to their contestant. The Department may disqualify a contestant, manager and/or second for unprofessional conduct in failing to cooperate with the ringside physician.

§61.44. Responsibilities of Managers.

(a)

Managers shall deal fairly with contestants.

(b)

Contracts between a contestant and a manager must be in writing.

(c)

It is the contestant and manager's joint responsibility to comply with all requirements, including rest periods and medical suspensions.

§61.45. Responsibilities of Timekeepers.

(a)

The timekeeper shall give a ten second warning before the end of each rest period. The timekeeper shall sound the bell only at the beginning and end of each round.

(b)

When a contestant is down, the timekeeper shall start his count, continuing until he reaches the count of ten seconds.

(c)

If the referee is absent from the ring or temporarily incapacitated, the timekeeper shall immediately sound the bell to temporarily stop the contest.

(d)

The timekeeper shall use a Department-approved bell.

§61.46. Responsibilities of Contestants.

(a)

A contestant applicant must submit to the Department all information required by the Department's application.

(b)

A contestant may not perform under any name that does not appear in departmental records.

(c)

Contestants shall in good faith perform to the best of their abilities.

(d)

A contestant who commits a foul under these rules is subject to administrative sanctions and or penalties in addition to losing points during a contest.

(e)

Arguing with an official or refusing to obey the orders of an official is prohibited.

(f)

Contestants shall compete in proper ring attire. Male contestants must wear a protection cup, which shall be firmly adjusted before entering the ring. The trunks' waistband shall not extend above the waistline and the hem may not extend more than two inches below the knee. Ring attire may not have sequins, buttons, tassels or any other decorative items that may become detached during a contest. A fitted mouthpiece shall be worn while competing. Shoes shall be of soft material and shall not be fitted with spikes, cleats, or hard heels. Female contestants must wear garments that cover their breast.

(g)

All contestants shall be in the dressing room at least 45 minutes before the event is scheduled to begin. The contestants shall be ready to enter the ring immediately after the preceding contest is finished.

(h)

After receiving final instructions from the referee, contestants may touch gloves or shake hands and then shall retire to their corners.

(i)

After the referee or judge's decision has been announced, both contestants and their seconds shall leave the ring when requested to do so by the referee.

(j)

For female contestants, a pregnancy test shall be obtained and submitted to the Department before the weigh-in, but not earlier than 48 hours prior to the contest.

(k)

Female contestants may wear breast protection plates.

(l)

Every contestant shall undergo a pre-fight physical examination. If a contestant's physical exam shows him unfit for competition, the contestant shall not participate in the contest. The manager or contestant shall make an immediate report of the facts to the promoter and the Department.

(m)

If a contestant becomes ill or injured and cannot take part in a contest for which he is under contract, he or his manager shall immediately report the facts to the promoter and the Department. The contestant must submit to the Department medical proof of the injury or illness.

(n)

A positive pregnancy, Hepatitis B or C, or human immunodeficiency virus (HIV) test will result in disqualification.

(o)

The administration or use of any drugs or alcohol either before or during a contest is prohibited unless a drug is prescribed, administered or authorized by a licensed physician and the Commissioner authorizes the contestant to use the drug. If a contestant is taking prescribed or over the counter medication, he/she must inform the Commissioner of such usage at least 24 hours prior to the contest.

(p)

As a condition of licensure, contestants waive right of confidentiality of medical records relating to treatment or diagnosis of any condition that relates to the contestant's ability to participate in a contest. All medical records submitted to the Department are confidential, and shall be used only by the Commissioner or his/her representative for the purpose of ascertaining the contestant's ability to be licensed or participate in a contest.

(q)

Contestants may not compete with a member of the opposite sex.

(r)

If, in an attempt to make weight, a contestant shows evidence of dehydration, having taken diuretics, or other drugs, or having used any other harsh modality, the Department shall disqualify him on the advice of the examining physician.

(s)

Medical disqualification of a contestant is for his own safety and may be made at the recommendation of the examining physician or the Department. If a contestant disagrees with a medical disqualification, medical suspension or rest period set at the discretion of a ringside physician or a disqualification set by the Department, he may request a hearing to show proof of fitness. The hearing shall be provided at the earliest opportunity after the Department receives a written request from the contestant or his manager.

(t)

Any licensee who competes outside the State of Texas and receives a medical suspension shall report the fight results and medical suspension to the Department within 72 hours after the event.

§61.80. Fees.

(a)

The annual fees shall accompany each license application or renewal as follows.

(1)

Promoter - $1,000

(2)

Contestant - $40

(3)

Manager - $200

(4)

Second - $30

(5)

Matchmaker - $175

(6)

Referee - $250

(7)

Judge - $200

(8)

Timekeeper - $40

(9)

Each additional endorsement for Promoters - $50 (boxing, kickboxing, shoot wrestling, or elimination tournaments).

(b)

Two year Federal Identification card - $20.

(c)

Visiting Ring Officials single event - $50.

(d)

Permit Fee - $500 per live event and the simultaneous telecast of a live contest on a closed circuit telecast in which fees are charged for admission.

§61.91. Sanctions and Penalties.

If a person violates Texas Occupations Code §2052 (Vernon 1999), or a rule, or order of the Commissioner or Commission relating to the Code, proceedings may be instituted to impose administrative sanctions and/or recommend administrative penalties in accordance with the Code or the Texas Occupations Code §51 (Vernon 1999) and 16 Texas Administrative Code, Chapter 60 (1999) of this title (relating to the Texas Department of Licensing and Regulation).

§61.105. Weight Categories and Weigh-in.

(a)

No contestant may engage in a contest where the weigh-in weight difference between contestants exceeds the allowance shown in the following "WEIGHT ALLOWANCE" schedule:

(1)

112 lbs. or under 3 lbs.

(2)

112-118 lbs. 4 lbs.

(3)

119-126 lbs. 5 lbs.

(4)

127-135 lbs. 6 lbs.

(5)

136-147 lbs. 8 lbs.

(6)

148-160 lbs. 10 lbs.

(7)

161-175 lbs. 12 lbs.

(8)

176-190 lbs. 15 lbs.

(9)

190 lbs. or over - No limit.

(b)

If a contestant's body weight at the time of weigh-in is 5% or more over his contracted weight, he shall be disqualified for the contest.

§61.106. Amateur Contests.

(a)

Any club seeking amateur status under this law shall complete a Department information form concerning ownership, affiliation, and other relevant information.

(b)

All amateur contests where an admission fee is charged shall be conducted under the conditions contained in the Code.

(c)

All amateur contests shall be conducted under the rules of the sponsoring amateur association, as approved by the Department.

§61.107. Boxing.

(a)

All rules stated herein apply to the combative sport of boxing, with the exception of §§61.108 - 61.111, unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(b)

All boxing contestants applying for a license shall pass an annual comprehensive medical examination before they can be licensed. The exam must include an eye examination, Hepatitis B & C, and Human Immunodeficiency Virus (HIV) tests. A physician shall report the examination results on a Department-approved form.

(c)

Judges shall score a contest by the elements of offense, defense, clean hitting, ring generalship, and sportsmanship shall be carefully considered. Scoring shall be by the ten-point must system. The winner of any round is marked ten and the loser is marked nine or less. When a round is even, each contestant shall receive ten points. A clean knockdown shall be scored heavily. Judges shall deduct points for fouls when advised to do so by the referee. Referees and judges shall clearly write their decision and sign them individually. A draw shall be called if each official votes differently or any two vote a draw.

(d)

A contestant shall be deemed down when:

(1)

any part of his body other than his feet is on the ring floor; or

(2)

he is hanging over the ropes in a defenseless manner.

(e)

The following tactics are fouls and are forbidden. Using these tactics may result in a warning, loss of points as determined by the referee, disqualification, forfeiture, and an administrative penalty and/or sanction.

(1)

Hitting below the belt.

(2)

Holding an opponent with one hand and hitting him with the other.

(3)

Hitting an opponent who is down or is getting up after being down.

(4)

Holding an opponent or deliberately maintaining a clinch.

(5)

Butting with the head or shoulder or using the knee.

(6)

Hitting with the inside or butt of the hand, the wrist or the elbow.

(7)

Hitting or "flicking" with open gloves.

(8)

Wrestling, kicking or roughing at the ropes.

(9)

Purposely going down without being hit.

(10)

Striking deliberately at the area of the body around the kidneys.

(11)

Jabbing an opponent's eyes with the thumb of a glove.

(12)

Using abusive or profane language.

(13)

Hitting at the back of the head or neck (rabbit punches).

(14)

Failing to obey the referee.

(15)

Engaging in any physical action or contact other than sportsmanlike boxing, which may injure another contestant.

(16)

Spitting out a mouthpiece.

(17)

Hitting an opponent after the bell has sounded ending a round.

§61.108. Kickboxing.

(a)

All rules stated herein apply to the combative sport of kickboxing, with the exception of §§61.107 and 61.09 - 61.111 unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(b)

Kickboxing matches shall not exceed nine two-minute rounds with a one-minute rest period between rounds. The Department may, however, permit an additional two rounds for championship events.

(c)

Kickboxers shall not wear shoes of any type, except for protective padded footgear.

(d)

Male contestants must wear a foul-proof groin protector. A plastic cup with an athletic supporter is adequate, but an abdominal guard is preferable. Female contestants must wear foul-proof breast protectors. Plastic breast covers are adequate. Female contestants must also wear a pelvic guard to protect their hips. Foot and shin pads are required.

(e)

Each Kickboxing contestant must execute a minimum of six kicks during each round. If either fighter does not do so, he will automatically lose the round. If both contestants fail to execute the minimum number of kicks by the end of a round, the round is declared a draw. In any match of nine or more rounds, if either fighter fails to execute the minimum number of kicks in any three rounds, he automatically loses the fight. In a non-title fight, if either fighter fails to execute the minimum number of kicks in any two rounds, he loses the fight.

(f)

A contestant intentionally avoiding any physical contact with his or her opponent will receive a warning. If a contestant continues avoiding contact, he or she will be declared the loser of that round. If a contestant avoids contact after losing a round for that reason, he or she may be subject to the same penalties and procedures as a contestant guilty of foul tactics.

(g)

In any case where the referee decides that the contestants are not honestly competing, that the knockout is a "dive", or the foul is a prearranged termination of the bout, he or she will not finish the knockout count, disqualify the contestant for fouling, or render a decision, but shall stop the bout and declare it ended not later than before the end of the last round. He shall also order purses of both fighters held pending investigation and disposition of the funds by the Department.

(h)

No contestant shall leave the ring during the one-minute rest period between rounds. If any contestant fails or refuses to resume fighting when the bell sounds for starting the next round, the referee will award a knockout victory to his or her opponent as of the round that has just been finished. If the circumstances indicate to the referee the need for an investigation or disciplinary action, the referee will not make a decision and will order the purse or purses of either or both contestants withheld.

(i)

Before a fallen contestant resumes fighting after having been knocked to, slipped to, or fallen to the floor, the referee shall wipe the contestant's gloves free of any foreign substance.

(j)

The following tactics are fouls and are forbidden. Using these tactics may result in a warning, loss of points as determined by the referee, disqualification, forfeiture, and an administrative penalty and/or sanction.

(1)

Head butts, elbow strikes or clubbing, kicks, punches or any other strikes at the groin.

(2)

Attacking with the knees.

(3)

Open-hand attacks to the eyes or throat.

(4)

Striking at that part of the body over the kidneys or spine.

(5)

Spitting, slapping or biting.

(6)

Palm heel strikes (using the heel of the palm of the hand to deliver a blow to the face).

(7)

Arm bars (grabbing one arm with the other and pressing the grabbed arm against the opponent's throat).

(8)

Grabbing or holding onto an opponent's leg or foot and grabbing or holding onto any other part of the body except for the purpose of attempting to throw the opponent to the floor.

(9)

Leg checking (extending the leg to check an opponent's leg or prevent him or her from kicking).

(10)

Purposely going down without being hit.

(11)

Any un-sportsmanlike trick or action causing any injury to an opponent.

(12)

Attacking on the break.

(13)

Attacking after the bell or gong has sounded ending the round or when the opponent is out of the ring.

(14)

Intentionally pushing, shoving or wrestling an opponent out of the ring with any part of the body.

§61.109. Elimination Tournaments/Toughman Competitions.

(a)

All rules stated herein apply to Elimination Tournaments or Toughman competitions with the exception of §§61.107, 61.108 and 61.110 - 61.111 unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(b)

Elimination tournament promoters who charge admission to an event, or offer an award to contestants must provide to the Department for each event:

(1)

a $50,000 surety bond conditioned on the applicant's payment of the 3% tax under;

(2)

a claim against the applicant as described by §2052.109(a)(3)(a) of the Code; and

(3)

insurance coverage for contestants, to cover medical, surgical and hospital care with a minimum limit of $20,000 for injuries sustained while participating in a contest and $50,000 to a contestant's estate if he dies of injuries received while participating in a contest. The insurance premium and deductibles shall not be deducted from the contestant's purse. The promoter shall provide to the Department for each event sponsored, a certificate of insurance showing proper coverage. The promoter shall supply to those participating in the event with the proper information for filing a medical claim.

(c)

The Commissioner and promoter will jointly hold a drawing for all matches in each weight category.

(d)

The promoter must notify the Department in writing before the commencement of the event of their decision to not use headgear.

(e)

Elimination tournaments consist of a minimum of 24 and a maximum of 60 scheduled rounds on each night.

(f)

Elimination Tournament contestant's shall wear 16 ounce gloves.

(g)

If a contestant is disqualified during a pre-tournament physical examination, the promoter shall immediately notify the Department.

(h)

If otherwise still qualified, contestants who do not win the first evening may compete on the second evening.

(i)

Fouls are as stated in §61.107 of this chapter.

§61.110. Martial Arts.

(a)

All full-contact martial arts are forms of a combative sport.

(b)

All rules stated herein apply to martial art competitions with the exception of §§61.107 - 61.109 and 61.111, unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(c)

A contest or exhibition of a martial art must be conducted pursuant to the official rules for the particular art. The sponsoring organization or promoter must file with and obtain permission of the Commissioner prior to holding the contest.

§61.111. Shoot wrestling/fighting or Pancrase wrestling/fighting.

(a)

All rules stated herein apply to the combative sport of shoot wrestling/fighting with the exception of §§61.107 - 61.110, unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(b)

Contestants shall not wear gloves.

(c)

Contestants may prevail by technical knockout, knock out, submission or judges decision.

(d)

Contestants may wear shorts, trunks, wrestling singlet, or traditional martial arts Gy. Knee braces without metal are permissible.

(e)

Wrists may be taped, but not the hands.

(f)

Tournaments shall not exceed a total of 15 minutes per bout/heat with no overtime allowed. Championship matches are allowed a five-minute overtime with a one-minute rest period.

(g)

A fitted mouthpiece shall be worn while competing.

(h)

Male contestants must wear a plastic foul-proof groin protector (abdominal guard). Female contestants must wear a plastic pelvic guard and may wear a breast protector.

(i)

Contestants may use the ropes twice during a round. The third time a contestant grabs the ropes will be considered a submission.

(j)

Intentionally escaping from the ring will result in a rope call.

(k)

If both contestants wrestle into or under the ropes and the referee believes that the ropes are causing interference with the match, the referee may stop the action, put both contestants in a standing position in the middle of the ring and continue the match.

(l)

If both contestants are wrestling on the ground and the referee believes neither contestant will gain an advantage, the referee may stop the contest, put both contestants in a standing position in the middle of the ring and continue the match.

(m)

If a laceration occurs, the referee shall stop the contest and the ring physician will examine the laceration. Either the physician or referee can stop the contest.

(n)

The following tactics are fouls and are forbidden. Using these tactics may result in a warning, loss of points as determined by the referee, disqualification, forfeiture, and an administrative penalty and/or sanction.

(1)

Head butts, side hand strikes, backhand slaps, elbow strikes or clubbing.

(2)

Palm/heel strikes to the head while grappling on the mat.

(3)

Kicks, punches or any strikes to the groin.

(4)

Spitting or biting.

(5)

Striking or grabbing the throat area.

(6)

Kicking while the opponent is down on the mat.

(7)

Kneeing to the head, or while grappling on the mat.

(8)

Kicking while both contestants are on the mat.

(9)

Hair pulling.

(10)

Any un-sportsmanlike conduct.

(11)

Attacking on the break.

(12)

Attacking after the bell has sounded.

(13)

Intentionally pushing, shoving, wrestling, or throwing an opponent out of the ring.

(14)

The use of oily substances such as petroleum jelly or baby oil on any contestant's hair, body or equipment.

(o)

The determination of the winner shall be as follows:

(1)

by submission, either verbally or by tapping two or more times on the mat, ropes, ring corner or the opponents body;

(2)

by knockout;

(3)

by being down on the map for a ten count;

(4)

by the referee disqualifying a contestant through a technical knockout;

(5)

by the referee stopping a match based upon a ring physician's advice;

(6)

by a contestant's corner stopping the bout;

(7)

by the referee disqualifying a contestant for a violation of these rules; or

(8)

by the judges decision based upon technique and aggressiveness minus the number of penalties.

Filed with the Office of the Secretary of State, on February 28, 2000.

TRD-200001510

Wiliam H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 463-7348