TITLE 16.ECONOMIC REGULATION

Part 8. TEXAS RACING COMMISSION

Chapter 301. DEFINITIONS

16 TAC §301.1

The Texas Racing Commission proposes an amendment to §301.1, relating to definitions. The amendment deletes the definition of the term "declaration". The deletion is necessary because the term has become obsolete in the racing industry. The amendment also capitalizes the word "commission" and change the phrase "rules of the commission" to "the Rules" to conform to current rule style.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the rule is in effect there are 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 rule is in effect the public benefit anticipated will be increased accuracy and therefore, increased reliance, in terminology within the Rules. There will be no fiscal implications for small or micro-businesses. There is no anticipated economic cost to an individual required to comply with the rule 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 April 20, 2001, to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules relating exclusively to horse or greyhound racing;§6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of racetracks; §11.01, which authorizes the Commission to adopt rules to regulate pari-mutuel wagering on greyhound and horse races; and §11.011, which authorizes the Commission to adopt rules to implement pari-mutuel wagering on simulcasting races.

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

§301.1.Definitions.

(a)

(No change.)

(b)

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

(1)-(4)

(No change.)

(5)

Application period--a period designated by the Commission [ commission ] for the submission of application documents for a racetrack license.

(6)

Association grounds--all real property approved by the Commission [ commission ] for use by an association in the conduct of a race meeting.

(7)-(13)

(No change.)

(14)

Chief veterinarian--the chief veterinarian employed by the Commission [ commission ].

(15)-(19)

(No change.)

[(20)

Declaration--the withdrawal of an entered horse or greyhound from a race.]

(20)

[ (21) ] Double entry--an entry of two or more greyhounds in the same race that have either common ownership or the same trainer and are separate wagering interests.

(21)

[ (22) ] Encrypted--scrambled or otherwise manipulated audio-visual signals to mask the original video content of the signal to cause the signals to be indecipherable and unrecognizable to any person receiving the signal.

(22)

[ (23) ] Entry--a horse, or horses in the case of a coupled entry, made eligible to run in a race.

(23)

[ (24) ] Established weight--the racing weight for a greyhound established in accordance with the Rules [ rules of the commission ].

(24)

[ (25) ] Exempt institutional investor--an investor who is:

(A)

an insurance company as defined by the Securities Act of 1933, §2(13), a bank as defined by that Act, §3(a)(2), a savings and loan association or other institution referenced in that Act, §3(a)(5)(A), or a foreign bank or savings and loan association or equivalent institution;

(B)

an investment company as defined by the Investment Company Act of 1940, §3(a), an issuer that would have been deemed an investment company under that Act except for the exclusion in that Act, §3(c)(1), or a business development company as defined by that Act, §2(c)(48);

(C)

a small business investment company licensed by the United States Small Business Administration under the Small Business Investment Act of 1958, §301(c) or (d);

(D)

a plan established and maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political subdivisions for the benefit of its employees;

(E)

an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974;

(F)

a trust fund whose trustee is a bank or trust company and whose participants are exclusively plans of the types identified in subparagraph (D) or (E) of this definition, except trust funds that include as participants individual retirement accounts or H.R. 10 plans;

(G)

a business development company as defined by the Investment Advisers Act of 1940, §202(a)(22), or an investment adviser registered under that Act;

(H)

an organization described in the Internal Revenue Code, §501(c)(3);

(I)

a dealer registered under the Securities Exchange Act of 1934, §15;

(J)

a legal entity with a market value of at least $50 million whose securities are traded on a nationally recognized or foreign securities exchange or interdealer quotation system, such as NASDAQ; and

(K)

a legal entity, acting for its own account or the account of other exempt institutional investors, that in the aggregate owns and invests on a discretionary basis at least $25 million in securities of issuers that are not affiliated with the entity, with the aggregate value of the securities being the cost of the securities, except if the entity reports its securities holdings in its financial statements based on their market value and no current information regarding the cost of the securities has been published, in which case the securities may be valued at market.

(25)

[ (26) ] Exotic pool--a mutuel pool that involves wagers on more than one entered horse or greyhound or on entries in more than one race.

(26)

[ (27) ] False start--failure of the starting gate or box doors to open simultaneously.

(27)

[ (28) ] Foul--an action by a horse or jockey that hinders or interferes with another horse or jockey during the running of a race.

(28)

[ (29) ] Greyhound race--a contest among greyhounds for purse, stakes, premium, or wager for money, run in the presence of the racetrack officials, including the following:

(A)

Hurdle race--a race over a course in which jumps or hurdles are used.

(B)

Match race--a race between two or more greyhounds, each the property of different owners, on terms agreed on by the owners and approved by the Commission [ commission ].

(C)

Overnight race--a race for which entries close 96 hours or less before the time set for the first race of the day on which the race is to be run.

(D)

Purse race--a race for money or other prize to which the owners of the greyhounds engaged in the race do not contribute an entry.

(E)

Race on the flat--a race over a course in which no jumps or other obstacles are placed.

(F)

Stakes race--a race in which all money is to be deposited by the owners of the greyhounds engaged in the race, including a race of the day on which the stakes race is to be run.

(29)

[ (30) ] Groom--an individual employed by an owner or trainer of a race horse to tend to the physical appearance of the horse and to perform chores in and around the stable.

(30)

[ (31) ] Growing medium--the substance immediately below the grass on a turf track.

(31)

[ (32) ] Handle--the total amount of money wagered at a racetrack during a particular period.

(32)

[ (33) ] Horse--an equine of any breed, including a stallion, gelding, mare, colt, filly, or ridgling.

(33)

[ (34) ] Horse Race--a running contest between horses for entry fees, purse, prize, or other reward, including the following:

(A)

Claiming race--a race in which a horse may be claimed in accordance with the Rules [ rules of the commission ].

(B)

Derby race--a race in which the first condition of eligibility is to be three years old.

(C)

Futurity race--a race in which the first condition of eligibility is to be two years old.

(D)

Guaranteed race--a race for which the association guarantees by its conditions a specified purse, which is the limit of its liability.

(E)

Handicap race--a race in which the weights to be carried by the entered horses are adjusted by the racing secretary for the purpose of equalizing their respective chances of winning.

(F)

Match race--a race between only two horses that are owned by different owners.

(G)

Maturity race--a race in which the first condition of eligibility is to be four years of age or older.

(H)

Optional claiming race--a claiming race in which there is an option to have horses entered to be claimed for a stated price or not eligible to be claimed.

(I)

Progeny race--a race restricted to the offspring of a specific stallion or stallions.

(J)

Purse or overnight race--a race for which owners of horses entered are not required by its conditions to contribute money toward its purse.

(K)

Stakes race--a race to which nominators of the entries contribute to a purse.

(L)

Starter race--an overnight race under allowance or handicap conditions, restricted to horses which have previously started for a designated claiming price or less, as stated in the conditions of the race.

(M)

Walkover race--a stakes race in which only one horse starts or all the starters are owned by the same interest.

(N)

Weight for age race--a race in which weights are assigned in keeping with the scale of weights in these rules.

(34)

[ (35) ] In today horse--a horse that is in the body of a race program which is entered into a race on the next consecutive race day.

(35)

[ (36) ] Kennel area--an area on association grounds for the boarding or training of greyhounds.

(36)

[ (37) ] Lead out--an individual who handles a greyhound from the lockout kennel to the starting box.

(37)

[ (38) ] Locked in the gate--a horse or greyhound that is prevented from leaving the starting gate or box due to the failure of the front door of the gate or box to open simultaneously with the other doors.

(38)

[ (39) ] Lure--a mechanical apparatus at a greyhound racetrack consisting of a stationary rail installed around the track, a motorized mechanism that travels on the rail, and a pole that is attached to the mechanism and extends over the track, and to which a decoy is attached.

(39)

[ (40) ] Maiden--a horse or greyhound that has never won a race at a recognized race meeting authorized by the Commission [ commission ] or by another racing jurisdiction.

(40)

[ (41) ] Minus pool--a pool in which there are insufficient net proceeds to pay the minimum price to holders of the winning tickets.

(41)

[ (42) ] Mutuel field--a group of horses joined as a single betting interest in a race due to the limited numbering capacity of the totalisator.

(42)

[ (43) ] No race--a race that is canceled after being run due to a malfunction of the starting gate or box or any other applicable reason as determined by the Rules [ rules of the commission ].

(43)

[ (44) ] Nominator--the person in whose name a horse or greyhound is entered for a race.

(44)

[ (45) ] Occupational licensee--an individual to whom the commission has issued a license to participate in racing with pari-mutuel wagering.

(45)

[ (46) ] Odds--a number indicating the amount of profit per dollar wagered to be paid to holders of winning pari-mutuel tickets.

(46)

[ (47) ] Odds board--a facility at a racetrack that is easily visible to the public on which odds, payoffs, advertising, or other pertinent information is posted.

(47)

[ (48) ] Off time--the moment when, on signal from the starter, the horses or greyhounds break from the starting gate or box and run the race.

(48)

[ (49) ] Paddock--the area in which horses or greyhounds gather immediately before a race.

(49)

[ (50) ] Patron--an individual present on association grounds during a race meeting who is eligible to wager on the racing.

(50)

[ (51) ] Pecuniary interest-- includes [ Includes ] a beneficial ownership interest in an association, but does not include bona fide indebtedness or a debt instrument of an association.

(51)

[ (52) ] Performance--the schedule of horse or greyhound races run consecutively as one program.

(52)

[ (53) ] Photofinish--the system of recording pictures or images of the finish of a race to assist in determining the order of finish.

(53)

[ (54) ] Place--to finish second in a race.

(54)

[ (55) ] Post position--the position assigned to a horse or greyhound in the starting gate or box.

(55)

[ (56) ] Post time--the time set for the arrival at the starting gate or boxes by the horses or greyhounds in a race.

(56)

[ (57) ] Purse--the cash portion of the prize for a race.

(57)

[ (58) ] Race date--a date on which an association is authorized by the Commission [ commission ] to conduct races.

(58)

[ (59) ] Race day--a day in which a numerical majority of scheduled races is conducted and is a part of the association's allocated race days.

(59)

[ (60) ] Race meeting--a group of days on which horse or greyhound racing is conducted at a racetrack.

(60)

[ (61) ] Racetrack facility--the buildings, structures and fixtures located on association grounds used by an association to conduct horse or greyhound racing.

(61)

[ (62) ] Racetrack official--an individual appointed or approved by the Commission [ commission ] to officiate at a race meeting.

(62)

[ (63) ] Racing judge--the executive racing official at a greyhound track.

(63)

[ (64) ] Reasonable belief--a belief that would be held by an ordinary and prudent person in the same circumstances as the actor.

(64)

[ (65) ] Recognized race meeting--a race meeting held under the sanction of a turf authority.

(65)

[ (66) ] Refunded ticket--a pari-mutuel ticket that has been refunded for the value of a wager that is no longer valid.

(66)

[ (67) ] Rule off--to bar an individual from the enclosure of an association and to deny all racing privileges to the individual.

(67)

[ (68) ] Rules--the rules adopted by the Texas Racing Commission found in Title 16, Part VIII of the Texas Administrative Code.

(68)

[ (69) ] Schooling race--a practice race conducted under actual racing conditions but for which wagering is not permitted.

(69)

[ (70) ] Scratch--to withdraw an entered horse or greyhound from a race after the closing of entries.

(70)

[ (71) ] Scratch time--the closing time set by an association for written requests to withdraw from a race.

(71)

[ (72) ] Show--to finish third in a race.

(72)

[ (73) ] Specimen--a bodily substance, such as blood, urine, or saliva, taken for analysis from a horse, greyhound, or individual in a manner prescribed by the Commission [ commission ].

(73)

[ (74) ] Stakes payments--the fees paid by subscribers in the form of nomination, entry, or starting fees to be eligible to participate.

(74)

[ (75) ] Stallion owner--a person who is owner of record, at the time of conception, of the stallion that sired the accredited Texas-bred horse.

(75)

[ (76) ] Starter--a horse or greyhound entered in a race when the doors of the starting gate or box open in front of the horse or greyhound at the time the official starter dispatches the horses or greyhounds.

(76)

[ (77) ] Straight pool--a mutuel pool that involves wagers on a horse or greyhound to win, place, or show.

(77)

[ (78) ] Subscription--money paid to nominate, enter, or start a horse or greyhound in a stakes race.

(78)

[ (79) ] Tack room--a room in the stable area of a horse racetrack in which equipment for training and racing the horses is stored.

(79)

[ (80) ] Totalisator--a machine or system for registering and computing the wagering and payoffs in pari-mutuel wagering.

(80)

[ (81) ] Tote room--the room in which the totalisator equipment is maintained.

(81)

[ (82) ] Tout--an individual licensed to furnish selections on a race in return for a set fee.

(82)

[ (83) ] Trial--a race designed primarily to determine qualifiers for finals of a stakes race.

(83)

[ (84) ] Uplink--an earth station broadcasting facility, whether mobile or fixed, which is used to transmit audio-visual signals and/or data emanating from a sending racetrack, and includes the electronic transfer of received signals from the receiving antenna to TV monitors within the receiving location.

(84)

[ (85) ] Weigh in--the process by which a jockey is weighed after a race or by which a greyhound is weighed before being placed in the lockout kennel.

(85)

[ (86) ] Weighing in weight--the weight of a greyhound on weighing in to the lockout kennel.

(86)

[ (87) ] Weigh out--the process by which a jockey or greyhound is weighed before a race.

(87)

[ (88) ] Weighing out weight--the weight of a greyhound on weighing out of the lockout kennel immediately before post time for the race in which the greyhound is entered.

(88)

[ (89) ] Win--to finish first in a race.

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 5, 2001.

TRD-200101272

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: April 15, 2001

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


Chapter 309. RACETRACK LICENSES AND OPERATIONS

Subchapter C. HORSE RACETRACKS

1. RACETRACKS

16 TAC §309.214

The Texas Racing Commission proposes an amendment to §309.214 relating to distance markers around horse racetracks. The amendment clarifies the demarcation of distances around a horse racetrack. These distances are to be measured in either miles, fractions of miles, or yards, not poles.

Judith L. Kennison, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the rule is in effect there are 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 rule is in effect the anticipated public benefit is increased reliability in the accuracy of the rule. Because the amendment modifies language only and not the requirements for the racetracks, there will be no fiscal implications for small or micro-businesses. There is no anticipated economic cost to an individual required to comply with the rule 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 April 20, 2001, to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to regulate every race meeting in this state involving wagering on the result of greyhound or horse racing; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in the State; and §6.06 which authorizes the Commission to adopt rules relating to all aspects of pari-mutuel tracks.

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

§309.214.Distance Markers.

(a)-(b)

(No change.)

(c)

The starting point markers and distance poles must be marked as follows:

(1)

1/16 mile [ poles ]--Black and white stripes

(2)

1/8 mile [ poles ]--Green and white stripes

(3)

1/4 mile [ poles ]--Red and white stripes

(4)-(13)

(No change.)

(14)

870 [ 880 ] yards--Blue and white stripes

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 5, 2001.

TRD-200101273

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: April 15, 2001

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


Chapter 311. OTHER LICENSES

Subchapter A. LICENSING PROVISIONS

1. OCCUPATIONAL LICENSES

16 TAC §311.5

The Texas Racing Commission proposes an amendment to §311.5, relating to license fees. The proposed amendment permits licensees to pay fees and fines by use of a credit card. This change would provide more convenience to the licensees and better productivity to the agency.

Judith L. Kennison, General Counsel for the Texas Racing Commission, determined that for the first five-year period the rule is in effect will be minimal fiscal implications for state government due to the initial purchase of necessary processing machines and transaction fees. Each machine will cost approximately $695 and each transaction fee will cost approximately 68 cents. At the present time, the Commission anticipates these costs will be paid through the current fee structure without an increase in fees. There will be no fiscal implication, however, on local government as a result of enforcing the proposals. The proposal has no effect on the state's agricultural, horse breeding, horse training, greyhound breeding, or greyhound training industries.

Ms. Kennison has also determined that the anticipated public benefit for each of the first five years the rule is in effect will be increase convenience for the licensees and increased productivity to the agency. There is no anticipated economic cost to an individual required to comply with the rule as proposed.

Comments on the proposal may be submitted on or before April 20, 2001, to Judith L. Kennison, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and §7.02, which authorizes the Commission to establish categories of occupational licenses and the qualifications and experience required for licensing in each category.

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

§311.5.License Fees.

(a)

(No change.)

(b)

A license fee must be paid by [ in the form of ] a money order, a certified check, a cashier's check, a credit card , or a personal check. The executive secretary may approve payment in cash at a racetrack if the association submits a plan that is approved by the executive secretary. The plan shall provide for the safety and security of the licensing office where the cash will be received and stored and licensing employees who will be responsible for handling and depositing the cash received.

(c)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 2001.

TRD-200101274

Judith L. Kennison

General Counsel

Texas Racing Commission

Earliest possible date of adoption: April 15, 2001

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