Subchapter B. OPERATION OF RACETRACKS

Subchapter B. SPECIFIC LICENSES

Subchapter B. ENTRIES AND PRE-RACE PROCEDURES

Subchapter A. GENERAL PROVISIONS

The Texas Racing Commission proposes the repeal and replacement of Chapter 321 relating to pari-mutuel wagering in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and the General Appropriations Act of 1997, Article IX, Acts of the 75th Legislature, 1997, Section 167 (167). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist.

As a result of the Commission's review and meetings with the licensed associations and industry related organizations, it was determined that a complete replacement is necessary to reflect the new technology in the pari-mutuel wagering industry.

As part of the replacement of the Commission rules, the agency is complying with the Section 167 requirements, repealing rules that are redundant with other statutes or rules, updating existing rules to ensure that they are consistent with current agency application and interpretation.

Judith Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the rules are repealed there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Kennison has also determined that for each of the first five years the rules are repealed the public benefit anticipated as a result of enforcing the proposal will be that there will be consistency between the law, agency and industry practice and the rules. There will be no fiscal implications for small businesses and micro-businesses as a result of enforcing this repeal. There is no anticipated economic cost to an individual required to comply with the repeal as proposed. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before February 1, 2001, to Judith Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

Subchapter A. REGULATION AND TOTALISATOR OPERATIONS

Subchapter A. MUTUEL OPERATIONS

The Texas Racing Commission proposes new §§321.1, 321.3, 321.5, 321.7, 321.9, 321.11, 321.13, 321.15, 321.17, 321.19, and 321.21 relating to mutuel operations; §§321.23, 321.25, and 321.27 relating to wagering explanations; and §§321.29, 321.31, 321.33, 321.34, 321.35, 321.37, 321.39, 321.41, 321.43, and 321.45 relating to mutuel tickets and vouchers. The new rules define new terminology, delineate reporting requirements, describe the duties of licensees and clarify the procedures and requirements for issuing, canceling, and cashing mutual tickets or vouchers.

The Texas Racing Commission proposes these new sections in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and the General Appropriations Act of 1997, Article IX, Acts of the 75th Legislature, 1997, Section 167. Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist.

As a result of the Commission's review and meetings with the licensed associations, totalisator companies and industry related organizations, it was determined that a complete replacement of Chapter 321 would be beneficial to both the agency and the public. The repeal of current Chapter 321 is also proposed elsewhere in this issue of the Texas Register .

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the new rules are in effect there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Kennison has also determined that for each of the first five years the new rules are in effect the public benefit anticipated as a result of enforcing the proposal will be that pari-mutuel wagering is strictly regulated, the patrons are protected, and the rules are consistent with current technology. There will be no new fiscal implications for small businesses and micro-businesses as a result of enforcing the proposed new rules. Similarly, there will be no new anticipated economic cost to an individual required to comply with the new rules as proposed. The proposal has no additional effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before February 15, 2001, to Judith Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The Texas Racing Commission proposes new §§321.101, 321.103, 321.105, and 321.107 relating to facilities and equipment; §§321.121, 321.123, 321.125, and 321.127, relating to general management requirements; and §§321.131, 321.133, 321.135, 321.137, 321.139, 321.141, and 321.143, relating to reporting and log requirements.

The new rules require the totalisator companies to maintain certain hardware and software capabilities for the protection of the pari-mutuel wagering system. The new rules also delineate the duties of totalisator company employees, specify network requirements, and require the totalisator companies to maintain certain reports and logs to ensure the proper operation of the totalisator system.

The Texas Racing Commission proposes these new sections in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and the General Appropriations Act of 1997, Article IX, Acts of the 75th Legislature, 1997, Section 167. Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist.

As a result of the Commission's review and meetings with the licensed associations, totalisator companies and industry related organizations, it was determined that a complete replacement of Chapter 321 would be beneficial to both the agency and the public. The repeal of current Chapter 321 is also proposed elsewhere in this issue of the Texas Register .

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the new rules are in effect there will be minor fiscal implications for state government as a result of enforcing the proposal. The agency's computer database will require some additional programming to facilitate download of wagering data from the totalisator companies. The exact cost cannot be determined at this time because it will depend on the number of hours of programming required. The average hourly rate for computer programming at the agency is $31. There will be no fiscal impact on local governments.

Ms. Kennison has also determined that for each of the first five years the new rules are in effect the public benefit anticipated as a result of enforcing the proposal will be that pari-mutuel wagering will be strictly regulated, the patrons will be protected, and the rules will be consistent with current technology. Due to the additional documentation and training requirements, it is anticipated that each of the totalisator companies will incur a one-time cost of approximately $50,000. These companies were consulted and have agreed to these implementation expenses. There will be no new fiscal implications for other small businesses and micro-businesses as a result of enforcing the proposed new rules. Similarly, there will be no new anticipated economic cost to an individual required to comply with the new rules as proposed. The proposal has no additional effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before February 15, 2001, to Judith Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The Texas Racing Commission proposes new §§321.201, 321.203, 321.205, 321.207, 321.209, 321.211, 321.213, 321.215, and 321.217, relating to the regulation of live wagering; and §§321.301-321.318, relating to distribution of pari-mutuel pools. The new rules authorize the stewards and racing judges to correct posting errors, determine betting interests, and issue "stop betting" commands. The rules also establish the types of wagering pools permitted and the rules for distributing those pools under various scenarios.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the new rules are in effect there will be no fiscal implications for state or local government as a result of enforcing the proposal.

Ms. Kennison has also determined that for each of the first five years the new rules are in effect the public benefit anticipated as a result of enforcing the proposal will be that pari-mutuel wagering will be strictly regulated, the patrons will be protected, and the rules will be consistent with current technology. There will be no new fiscal implications for small businesses and micro-businesses as a result of enforcing the proposed new rules. Similarly, there will be no new anticipated economic cost to an individual required to comply with the new rules as proposed. The proposal has no additional effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Comments on the proposal may be submitted on or before February 15, 2001, to Judith Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.