Part 1.
RAILROAD COMMISSION OF TEXAS
Chapter 3.
OIL AND GAS DIVISION
16 TAC §3.58
The Railroad Commission of Texas proposes to amend §3.58,
relating to Oil, Gas, or Geothermal Resource Operator's Reports to conform §3.58
to revisions in Commission form P-4 (certificate of compliance and transportation
authority) and to provisions of Texas Natural Resources Code, §89.002(a)(2)
and §89.011(b). The proposed amendments will clarify current Commission
requirements and procedures.
Proposed amendments to §3.58(a)(1) clarify that a transporter may
not transport oil, gas or geothermal resources from property on which wells
related to crude oil, natural gas or geothermal resources are located until
the Commission has approved a certificate of compliance and transportation
authority (form P-4).
Proposed amendments to §3.58(a)(2) provide that an approved certificate
of compliance and transportation authority (form P-4) binds the operator until
another operator files a subsequent certificate, and the Commission has approved
the subsequent certificate and transferred the property on Commission records
to the subsequent operator.
Proposed amendments to §3.58(a)(3) clarify that the Commission's district
offices or Austin office may grant temporary authority for an operator to
use a transporter not authorized for a particular property for transportation
of condensate as well as oil.
Proposed amendments to §3.58(a)(4) specify that an applicant wishing
to assume operator status for a property, but unable to obtain the signature
of the previous operator on the certificate of compliance and transportation
authority, must file a completed form P-4 signed by a designated officer or
agent of the applicant, together with an explanatory letter and legal documentation
of the applicant's right to operate the property.
Proposed amendments to §3.58(b) make clear that each operator who
is a producer of natural gas must file, for each calendar month, for each
producing property, Commission form P-2 (producer's monthly report of gas
wells).
Proposed amendments to §3.58(c) clarify the requirements and procedure
for filing form P-3, authority to transport recovered load or frac oil.
The proposed amendments would add a new subsection (d) to clarify requirements
for filing Commission form P-6 (request for permission to subdivide or consolidate
oil leases(s)), which must be made by operators seeking to subdivide or consolidate
oil leases, and the circumstances under which such filings may be approved
administratively. Under the proposed amendments, a request to subdivide an
existing oil lease may be approved administratively if Commission staff determines
that approval will not cause waste, harm correlative rights, or result in
the circumvention of Commission rules. Also under the proposed amendments,
a request to consolidate two or more existing oil leases may be approved administratively
if Commission staff determines that approval will not cause waste, harm correlative
rights, or result in the circumvention of Commission rules and (1) the mineral
and royalty ownership of the leases proposed for consolidation is identical
in all respects; (2) the operator has obtained a surface commingling exception
permit pursuant to §3.26 (relating to separating devices, tanks, and
surface commingling of oil) that authorizes commingling of production from
all of the leases proposed for consolidation; or (3) the operator has filed
and obtained approval of a valid Commission form P-12 (certificate of pooling
authority) authorizing pooling of all of the leases proposed for consolidation.
The proposed amendments to §3.58 also provide the names and numbers
of Commission forms on which reports required by the rule must be made and
the purposes for which they are filed.
Leslie Savage, Planning and Administration, Oil and Gas Division, has determined
that for each year of the first five years the rule as amended will be in
effect, there will be no substantial fiscal implications for state government
as a result of enforcing or administering the amended rule. All of the proposed
amendments clarify existing Commission requirements. There are no fiscal implications
for local government.
James M. Doherty, Hearings Examiner, Oil and Gas Section, Office of General
Counsel, has determined that for each year of the first five years that the
amended section will be in effect the public benefit will be clarification
for operators and other members of the public regarding the Commission forms
to be used in making filings required by the rule and the purposes and effect
of the filings. The public will benefit in that the proposed amendments will
eliminate confusion about Commission filing requirements and serve to minimize
incomplete or erroneous filings. Additionally, the proposed amendments will
promote administrative efficiency by curtailing incomplete or erroneous filings
and by providing standards for administrative approval of applications to
subdivide or consolidate oil leases.
There will be no additional cost of compliance for individual operators
or for small business or micro-business operators, because the proposed amendments
do not substantively change current Commission requirements or procedures.
Comments on the proposed amendments may be submitted to James M. Doherty,
Hearings Examiner, Oil and Gas Section, Office of General Counsel, Railroad
Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967 or via electronic
mail to jim.doherty@rrc.state.tx.us. Comments will be accepted for 30 days
after publication in the
Texas Register
and
should refer to the docket number of this rulemaking proceeding: OG 20-0230301.
For further information, call Mr. Doherty at (512) 463- 7152.
The Commission proposes the amendments to §3.58 pursuant
to Texas Natural Resources Code, §§81.051, 81.052, 85.042, 85.201,
85.202, 86.041, 86.042, 91.101, 141.011, and 141.012 which provide the Commission
with jurisdiction over all persons owning or engaged in drilling or operating
oil, gas or geothermal resource wells in Texas and the authority to adopt
all necessary rules for governing and regulating persons and their operations
under the jurisdiction of the Commission.
Texas Natural Resources Code §§81.051, 81.052, 85.042, 85.059,
85.060, 85.161-85.163, 85.201, 85.202, 86.041, 86.042, 89.002, 89.011(b),
91.101, 141.011, and 141.012 are affected by the proposed amendment.
Issued in Austin, Texas on January 8, 2002.
§3.58.Oil, Gas, or Geothermal Resource Operator's Reports.
(a)
Certificate of Compliance and
[
(1)
Each operator who
seeks to operate wells related to
[
(2)
An approved certificate of compliance and
[
(3)
The appropriate district office or the Austin office may
grant temporary authority for an operator to use a transporter not authorized
for a particular property in order to take care of production and prevent
waste. The operator shall secure such temporary authority in writing from
the appropriate district office or the Austin office before the oil
or condensate
is moved. In an emergency situation the operator may secure
such temporary authority verbally but shall notify the district office in
writing within 10 days after the oil
or condensate
is moved. An
emergency situation exists when oil
or condensate
must be moved
off a lease because it poses an imminent threat to the public health and safety,
or when the threat of waste is imminent. The operator shall also furnish copies
of such authorization or notification to the regular transporter and to the
temporary transporter.
(4)
If an applicant wishes to assume operator status for a
property, but is unable to obtain the signature of the previous operator on
the
certificate of compliance and
[
(b)
Monthly producer's report (oil
, natural gas
and geothermal resources). For each calendar month, each operator who is a
producer of crude oil
, natural gas
or geothermal resources shall
file with the commission
a report
[
(c)
Recovered load oil.
(1)
The operator of each lease from which load oil is recovered
shall
[
(2)
The provisions of this subsection apply only to oil that
has been obtained from a source other than the lease on which it is used.
"Recovered load oil
or frac oil
," as that term is used herein,
is any oil or liquid hydrocarbons used in any operation in an oil or gas well,
and which has been recovered as a merchantable product.
(d)
Subdivision and consolidation of oil leases.
(1)
An operator seeking to subdivide or consolidate existing
oil leases shall file and obtain approval of a commission form P-4 (certificate
of compliance and transportation authority) and a commission form P-6 (request
for permission to subdivide or consolidate oil lease(s)). Form P-6 identifies
the leases to be subdivided or consolidated as well as the resulting leases.
Two plats shall be filed with form P-6, one showing the boundaries of the
lease(s) before and one showing the boundaries of the lease(s) after the subdivision
or consolidation.
(2)
An operator seeking to subdivide an existing oil lease
that it operates or to assume operatorship of fewer than all of the wells
on an oil lease shall file and obtain approval of a commission form P-4 (certificate
of compliance and transportation authority) and a commission form P-6 (request
for permission to subdivide or consolidate oil lease(s)). A request to subdivide
an oil lease may be approved administratively if the commission staff determines
that approval of the request will not cause waste, harm correlative rights,
or result in the circumvention of commission rules.
(3)
An operator seeking to consolidate two or more existing
oil leases that it operates shall file and obtain approval of a commission
form P-4 (certificate of compliance and transportation authority) and a commission
form P-6 (request for permission to subdivide or consolidate oil lease(s)).
A request to consolidate two or more oil leases may be approved administratively
if the commission staff determines that approval of the request will not cause
waste, harm correlative rights, or result in the circumvention of commission
rules and:
(A)
the mineral and royalty ownership of the leases proposed
for consolidation is identical in all respects;
(B)
the operator has obtained a surface commingling exception
permit pursuant to §3.26 of this title (relating to separating devices,
tanks, and surface commingling of oil) that authorizes commingling of production
from all of the leases proposed for consolidation ; or
(C)
the operator has filed and obtained approval of a valid
commission form P-12 (certificate of pooling authority) authorizing pooling
of all of the leases proposed for consolidation.
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 January 8, 2002.
TRD-200200077
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: February 24, 2002
For further information, please call: (512) 463-7033
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
16 TAC §26.420
The Public Utility Commission of Texas (commission) proposes
amendments to §26.420, relating to the Administration of the Texas Universal
Service Fund (TUSF). The proposed amendments will implement the provisions
of House Bill 1351, 77th Legislature (HB 1351), later codified as the Public
Utility Regulatory Act, Texas Utilities Code Annotated §56.022 (Vernon
1998 & Supplement 2002) (PURA), relating to the exemption of pay telephone
services from the TUSF assessment. The proposed amendment also removes references
to §26.413, relating to Tel-Assistance Service. House Bill 2156, 77th
Legislative Session (HB 2156) eliminated the Tel-Assistance Program effective
September 1, 2001 and required telecommunications carriers to convert all
Tel-Assistance customers to Lifeline Service; therefore, the references to
Tel- Assistance Service in §26.420 are no longer necessary and have been
deleted. Project Number 24520 is assigned to this proceeding.
Non-substantive changes to rule language
Proposed §26.420 amends internal references and reflects minor non-substantive
changes necessary to ensure consistency with the changes made by the 77th
legislature in HB 2156. Proposed §26.420 also includes revisions to renumber
subparts affected by amendments to the rule.
Substantive changes to rule language
Proposed §26.420(f)(2)(B) is added, consistent with PURA §56.022(c)(2),
to exempt pay telephone service revenues from TUSF assessment.
Proposed §26.420(f)(2)(C) and (f)(5) are added and amended, respectively,
in order to denote that the revenue generated by telecommunications providers
from the provision of telephone service to pay telephone providers is subject
to TUSF assessment, and allowing telecommunications providers, in turn, to
pass-on the assessment to their retail customers, including pay telephone
providers.
On May 8, 2001, a hearing regarding HB 1351 was held before the Senate
Committee on Business and Commerce. HB 1351 was presented as a means to exempt
pay telephone services from TUSF assessment; however, payphone providers would
continue to make indirect contributions via the pass-through fees on their
monthly service bills from local exchange companies (LECs). Scott Pospisil,
Executive Director of the Texas Payphone Association (TPA), testified in support
of HB 1351 (see video of hearing, Part I at 01:07:28, http://www.senate.state.tx.us/75r/senate/commit/c510/c510.htm).
Mr. Pospisil indicated that the impact of HB 1351 upon the TUSF would be minimal,
in that it would affect less than one-half of one percent of the budgeted
fund. Mr. Pospisil reiterated his support of HB 1351 at the workshop held
in this project on November 14, 2001 by emphasizing that members of TPA were
prepared to continue making indirect payments into the TUSF via the surcharges
on the monthly bills paid to LECs. (See transcript of workshop at 41-43, November
14, 2001.)
Accordingly, the commission initiates the present rulemaking, making substantive
changes to §26.420(f) with a twofold purpose: (1) to exempt pay telephone
service revenues from TUSF assessment, and (2) to classify payphone providers
as retail customers, thus allowing telecommunications providers who contribute
directly into the TUSF based upon the revenue they generate from the provision
of telephone services to pay telephone providers, to pass-through TUSF assessment
fees to the payphone providers.
Lori Hartman, Policy Analyst, Policy Development Division, has determined
that for each year of the first five-year period the proposed section is in
effect, there will be no fiscal implications for state or local government
as a result of enforcing or administering this section.
Ms. Hartman has determined that for each year of the first five years the
proposed section is in effect the public benefit anticipated as a result of
enforcing the section as amended will be a more equitable, revenue-neutral
process of determining the basis for TUSF assessments. Although there may
be some loss of revenue to the TUSF, that loss will be minimal in that it
represents less than one-half of one percent of the fund's total revenue for
2001. Additionally, the fund currently maintains an operating surplus.
There will be no effect on small businesses or micro-businesses as a result
of enforcing this section. There may be some economic cost to the telecommunications
providers who provide telephone service to pay telephone providers and who
are required to comply with this section as proposed because some billing
system modifications may be necessary in order to effectuate §26.420(f)(2)(C)
and (f)(5). However, such costs are expected to be minimal and are outweighed
by the benefits derived from a more equitable basis for TUSF assessment.
Ms. Hartman has also determined that for each year of the first five years
the proposed section is in effect there should be no effect on local economy,
and therefore no local employment impact statement is required under the Administrative
Procedure Act 2001.022.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to Government Code §2001.029, at the commission's
offices, located in the William B. Travis Building, 1701 North Congress Avenue,
Austin, Texas 78701, in Hearing Room Gee, on Tuesday, March 26, 2002 at 1:30
p.m. The request for public hearing must be received within 30 days after
publication.
Comments on the proposed amendments (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
Reply comments may be submitted within 45 days after publication. Comments
should be organized in a manner consistent with the organization of the proposed
rule. The commission will consider the costs and benefits in deciding whether
to adopt the amended section. All comments should refer to Project Number
24520.
In addition to general comments, the commission invites specific comments
regarding the following question:
Should the commission address the issue of the implementation timeframe
for §26.420(f)(2)(C) and (f)(5)? If so,
(a) Should the issue be addressed via a provision in §26.420 even
though the issue only applies to specific amended portions of the rule? or,
(b) Should affected LECs be required to seek a good cause waiver from the
rule, which would allow the timeline of the waivers to be individualized according
to the specific needs of the carrier?
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2002) (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. The commission also proposes this rule pursuant to PURA §56.021
which provides the authority to adopt and enforce rules requiring local exchange
companies to establish a universal service fund; PURA §56.022 regarding
the statewide uniform charge upon which the TUSF is based and which requires
the commission to exempt pay telephone services from the assessment; and HB
2156, 77th Legislature, Regular Session, Chapter 1451, §4, that discontinued
the Tel-Assistance Program.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
17.051- 17.053, 56.021, and 56.022.
§26.420.Administration of Texas Universal Service Fund (TUSF).
(a)
(No change.)
(b)
Programs included in the TUSF.
(1) - (6)
(No change.)
[
(7)
[
(8)
[
(9)
[
(10)
[
(11)
[
(c) - (d)
(No change.)
(e)
Determination of the amount needed to fund the TUSF.
(1)
Amount needed to fund the TUSF. The amount needed to fund
the TUSF shall be composed of the following elements.
(A)
Costs of TUSF programs. The TUSF administrator shall compute
and include the costs of the following TUSF programs:
(i) - (vi)
(No change.)
[
(vii)
[
(viii)
[
(B)
Costs of implementation and administration of the TUSF.
The TUSF implementation and administration costs shall include appropriate
costs associated with the implementation and administration of the TUSF incurred
by the commission (including the costs incurred by the TUSF administrator
on behalf of the commission), any costs incurred by the Texas Department of
Human Services caused by its administration of the
Lifeline Service and
Link up Service programs
[
(C)
(No change.)
(2)
(No change.)
(f)
Assessments for the TUSF.
(1)
Providers subject to assessments. The TUSF assessments
shall be payable by all telecommunications providers having access to the
customer base; including but not limited to wireline and wireless providers
of telecommunications services.
(2)
Basis for assessments.
Assessments will be based upon
the following:
(A)
Assessments shall be made to each telecommunications
provider based upon its monthly taxable telecommunications receipts reported
by that telecommunications provider under Chapter 151
of the
[
(B)
Pay telephone service revenues
received by providers of pay telephone services are exempt from the TUSF assessment
pursuant to the Public Utility Regulatory Act §56.022(c)(2).
(C)
Revenue received by telecommunications
providers from telephone services supplied to pay telephone providers for
the provision of pay telephone services is subject to TUSF assessment.
(3)
(No change.)
(4)
Reporting requirements. Each telecommunications provider
shall be required to report taxable telecommunications receipts under Chapter
151
of the
[
(5)
Recovery of assessments. A telecommunications provider
may recover the amount of its TUSF assessment only from its retail customers
who are subject to tax under Chapter 151 of the Tax Code, except for Lifeline
and
[
(A)
Retail customers' bills. In the event a telecommunications
provider chooses to recover its TUSF assessment through a surcharge added
to its retail customers' bills;
(i)
(No change.)
(ii)
the surcharge must be assessed as a percentage of every
retail customers' bill, except Lifeline
and
[
(B) - (D)
(No change.)
(6)
(No change.)
(g)
Disbursements from the TUSF to ETPs, ILECs, other entities
and agencies.
(1)
ETPs, ILECs, other entities, and agencies.
(A)
ETPs. The commission shall determine whether an ETP qualifies
to receive funds from the TUSF. An ETP qualifying for the following programs
is eligible to receive funds from the TUSF:
(i)
(No change.)
(ii)
Small and Rural ILEC Universal Service Plan;
and/or
(iii)
Lifeline Service and Link Up Service[
[
(B) - (D)
(No change.)
(2) - (3)
(No change.)
(h) - (j)
(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 January 11, 2002.
TRD-200200136
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: February 24, 2002
For further information, please call: (512) 936-7308
Chapter 401.
ADMINISTRATION OF STATE LOTTERY ACT
Subchapter D. LOTTERY GAME RULES
16 TAC §401.307
The Texas Lottery Commission proposes amendments to 16 TAC §401.307
relating to the "Pick 3" on-line game. The proposed amendments provide for
additional draws to be conducted during the day as "day" draws. These draws
will be in addition to the existing evening draws. The proposed amendments
also clarify that a Pick 3 ticket can not be cancelled if during an on-line
game promotion that Pick 3 ticket purchase generates a free promotional ticket
for any of the commission's on-line games. The proposed amendments also eliminate
language that indicates unclaimed prizes go to the prize reserve fund. Pursuant
to Government Code, §466.4075, unclaimed prize money shall be deposited
to the credit of the Texas Department of Health state-owned multicategorical
teaching hospital account or the tertiary care facility account as prescribed
in §466.4075.
Bart Sanchez, Financial Administration Director, has determined for each
year of the first five years the section is in effect there will be the following
foreseeable additional fiscal implications for state or local government as
a result of enforcing or administering the rule. FY02, $806,061; FY03, $4,641,575;
FY04, $4,641,575; FY05, $4,641,575; and, FY06, $4,641,575. There is no anticipated
impact on small businesses, micro businesses or local or state employment
as a result of implementing the section.
Robert Tirloni, On-line Products Manager, Marketing Division, has determined
that each of the first five years the section as proposed is in effect, the
public benefit anticipated as a result of the proposed amendments is to offer
additional draws to lottery players. An additional public benefit anticipated
is additional sales and revenue. Retailers will benefit because they will
be receiving additional monies from the additional Pick 3 sales. The State
of Texas will receive additional revenue from the additional Pick 3 sales.
Written comments on the proposed amendment may be submitted to Kimberly
L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin,
Texas 78761-6630. The Texas Lottery Commission will also conduct a hearing
to receive comment on the proposed amendments on February 8, 2002 at 9:00
a.m. at the Commission auditorium, 611 East Sixth Street, Austin, Texas.
The amendments are proposed under Government Code, §466.015
which authorizes the Commission to adopt all rules necessary to administer
the State Lottery Act and to adopt rules governing the establishment and operation
of the lottery, and under Government Code, §467.102 which authorizes
the Commission to adopt rules for the enforcement and administration of the
laws under the Commission's jurisdiction.
The amendments implement Government Code, Chapter 466.
§401.307."Pick 3" On-Line Game Rule.
(a)
(No change.)
(b)
Definitions. In addition to the definitions provided in §401.301
of this title (relating to General Definitions), and unless the context in
this section otherwise requires, the following definitions apply.
(1)
Advance play--A player may purchase a Pick 3 ticket for
any of the
eleven
[
(2)
Multidraw--A player may purchase a Pick 3 ticket for 12
consecutive
day and night drawings beginning with the current draw, 12
consecutive day drawings beginning with the current day drawing or 12 consecutive
night drawings
[
(3) - (6)
(No change.)
(c)
(No change.)
(d)
Play for Pick 3.
(1)
(No change.)
(2)
Method of play. The player may use playslips to make number
selections. The on-line terminal will read the playslip and issue ticket(s)
with corresponding plays. If a playslip is not available, the on-line retailer
may enter the selected numbers, play type,
draw time (day or night)
and play amount via the keyboard. However, the retailer shall not accept telephone
or mail-in requests to manually enter selected numbers through the keyboard.
A player may leave all number selections to a random number generator operated
by the computer, referred to as Quick Pick.
(3)
(No change.)
(e)
Prizes for Pick 3.
(1) - (2)
(No change.)
(3)
Prize pool. The prize pool for Pick 3 prizes shall be 50%
of Pick 3 sales. The prize
payout
[
(4)
Prize reserve fund.
[(A)
The prize reserve fund may be increased
or decreased by amounts paid to winners or prizes not claimed within the 180-day
claim period.]
(A)
[
(B)
[
(f)
(No change.)
(g)
Ticket purchases.
(1)
(No change.)
(2)
Pick 3 tickets shall show the player's selection of numbers,
play type, play amount, play boards played,
draw time(s) (day or night),
drawing date(s), and
serial
[
(3) - (4)
(No change.)
(h)
Cancellations.
(1)
A Pick 3 ticket may be canceled by the selling retailer
only if the following occur:
(A) - (B)
(No change.)
(C)
the ticket is canceled no later than 60 minutes since the
ticket was
purchased
[
(D)
the ticket is canceled before the
next
draw break
on the day the ticket was
purchased
[
(E)
the ticket is canceled before midnight on the day
the ticket was purchased. A Pick 3 ticket can not be canceled if during an
on-line game promotion that Pick 3 ticket purchase generates a free promotional
ticket for any of the commission's on-line games
[
(2)
(No change.)
(i)
Drawings.
(1)
The Pick 3 drawings shall be held each week on Monday,
Tuesday, Wednesday, Thursday, Friday, and Saturday
twice daily, the day
drawing at 12:27 p.m. Central Time and the night drawing
[
(2)
Pick 3 tickets will not be sold during the draw
breaks
[
(3) - (6)
(No change.)
(j)
(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 January 9, 2002.
TRD-200200116
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: February 24, 2002
For further information, please call: (512) 344-5113
16 TAC §401.353
The Texas Lottery Commission proposes amendments to 16 TAC §401.353
relating to retailer sales commissions. The proposed amendments provide for
a 1% cashing bonus to be paid to lottery retailers for cashing mid tier prizes.
Mid-tier prizes are prizes from $25 to $599.
Bart Sanchez, Financial Administration Director, has determined for each
year of the first five years the section is in effect there will be the following
foreseeable additional fiscal implications for state or local government as
a result of enforcing or administering the rule. FY02, -$1,125,000; FY03,
-$4,725,000; FY04, -$4,961,250; FY05, -$5,209,313; and, FY06, -$5,469,778.
There is no anticipated impact on small businesses, micro businesses or local
or state employment as a result of implementing the section.
Mr. Sanchez has determined that each of the first five years the section
as proposed is in effect, the public benefit anticipated as a result of the
proposed amendments is to offer compensation to lottery retailers who are
cashing mid tier prizes. By paying this cashing bonus, the Commission recognizes
the retailer base is an important part of the operation of the lottery and
there is a benefit to the Commission to assist lottery retailers in recovering
costs for the incidental administrative burden on the retailer when the retailer
pays prizes to players. An additional public benefit anticipated will be the
added convenience to lottery players in the cashing of mid-tier prizes at
retail locations. By paying a cashing bonus to retailers for the cashing of
mid-tier prizes, the agency expects a higher number of retail locations to
pay mid-tier prizes, thus offering lottery players more locations where prizes
can be claimed.
Written comments on the proposed amendment may be submitted to Kimberly
L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin,
Texas 78761-6630.
The amendments are proposed under Government Code, §466.015
which authorizes the Commission to adopt all rules necessary to administer
the State Lottery Act and to adopt rules governing the establishment and operation
of the lottery, and under Government Code, §467.102 which authorizes
the Commission to adopt rules for the enforcement and administration of the
laws under the Commission's jurisdiction.
The amendments implement Government Code, Chapter 466.
§401.353.Retailer Settlements, Financial Obligations, and Commissions.
(a) - (c)
(No change.)
(d)
Each retailer shall receive 5.0% compensation on all sales
from lottery games. A retailer may not accept compensation for the sale of
lottery tickets other than compensation referenced in this section, regardless
of the source.
In addition to the 5% compensation on all sales from lottery
games, each retailer shall receive a 1% cashing bonus for cashing mid-tier
prizes.
At the sole discretion of the executive director, a retailer
may receive additional compensation which may include but is not limited to
incentive or bonus programs.
(e) - (f)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on January 10, 2002.
TRD-200200130
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: February 24, 2002
For further information, please call: (512) 344-5113
Producer's
] transportation authority [
and certificate of compliance
].
is a producer of
] crude oil, natural gas, or geothermal
resources shall file with the commission's Austin office a
commission
form P-4 (certificate of compliance and transportation authority)
[
producer's transportation authority and certificate of compliance
] for
each
property on which the wells are located
[
of the operator's
producing properties
] certifying that the operator has complied with
the conservation laws and the oil, gas, and geothermal resources conservation
orders, rules, and regulations of the commission in respect to
the
[
each
] property.
The Commission form P-4 establishes the operator
of an oil lease, gas well, or other well; certifies responsibility for regulatory
compliance, including plugging wells in accordance with §3.14 of this
title (relating to plugging); and identifies gatherers, purchasers, and purchasers'
commission-assigned system codes authorized for each well or lease. Operators
shall file form P-4 for new oil leases, gas wells, or other wells; recompletions;
reclassifications of wells from oil to gas or gas to oil; consolidation, unitization
or subdivision of oil leases; or change of gatherer, gas purchaser, gas purchaser
system code, operator, field name or lease name.
When
an operator
files a form P-4
[
this report is filed
], the oil and gas
division shall review the
form
[
report
] for completeness
and accuracy.
A
[
When approved, this report shall authorize
a
] transporter (whether the operator or someone else)
shall not
[
to
] transport the oil, gas, or geothermal resources from
such property
until the Commission has approved the certificate of compliance
and transportation authority
. No certificate of compliance designating
or changing the designation of an operator will be approved that is signed,
either as transferor or transferee, by a non-employee agent of the organization
unless the organization has filed with the commission, on its organization
report, the name of the non-employee agent it has authorized to sign such
certificates of compliance on its behalf.
The producer's
] transportation authority [
and certificate of compliance
] shall bind the operator until
another operator files a subsequent
certificate and the Commission has approved the subsequent certificate and
transferred the property
[
transferred
] on commission records
to
the subsequent
[
another
] operator.
producer's
] transportation
authority [
and certificate of compliance
], the applicant
shall
[
must
] file with the oil and gas division in Austin
a completed form P-4 signed by a designated officer or agent of the applicant,
along with
an explanatory letter and legal documentation of the applicant's
right to operate the property. Prior to approval of such an application, the
office of the general counsel will notify the last known operator of record,
if such operator's address is available, affording such operator an opportunity
to protest.
the required form
]
for each of
the operator's
[
his
] producing
properties.
Operators shall file such reports on commission form P-1 (producer's monthly
report of oil wells), commission form P-2 (producer's monthly report of gas
wells), or commission form GT-2 (producer's monthly report of geothermal wells).
These commission forms report monthly production and disposition of oil and
casinghead gas (form P-1), gas well gas and condensate (form P-2) and geothermal
resources (form GT-2)
[
leases
]. On or before the last day
of the month subsequent to the period [
or
] of the report,
the
[
such
] operator shall file an original and one copy of
each such form, the original to be filed in the Austin office, and one copy
with the transporter taking the oil
, gas
or geothermal resources
from the
property
[
lease
].
must
] file
the original and one copy of commission
form P-3 (authority to transport recovered load or frac oil)
[
in duplicate the form described as "report of recovered load oil"
] with
the district office, and
another
[
one
] copy with the
transporter prior to running the load oil.
Form P-3 requires a producer
to report the quantity of recovered load or frac oil to be transported from
a particular lease and to identify the transporter.
The
form P-3
(authority to transport recovered load or frac oil)
[
Report of
Recovered Load Oil
] filed by the operator shall be the authority for
the transporter to run the quantity of recovered load
or frac
oil
stated in the form.
Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
(7)
Section 26.413 of this title
(relating to Tel-Assistance Service);]
(8)
] Section 26.414 of this title
(relating to Telecommunications Relay Service (TRS));
(9)
] Section 26.415 of this title
(relating to Specialized Telecommunications Assistance Program (STAP));
(10)
] Section 26.417 of this title
(relating to Designation as Eligible Telecommunications Providers to Receive
Texas Universal Service Funds (TUSF));
(11)
] Section 26.418 of this title
(relating to Designation of Common Carriers as Eligible Telecommunications
Carriers to Receive Federal Universal Service Funds); and
(12)
] Section 26.420 of this title
(relating to Administration of Texas Universal Service Fund (TUSF)).
(vii)
Tel-Assistance Service, §26.413
of this title;]
(viii)
] Telecommunications Relay
Service
(TRS)
, §26.414 of this title; and
(ix)
] Specialized Telecommunications
Assistance Program (STAP), §26.415 of this title.
Tel-Assistance program
], and any
costs incurred by the Texas Commission for the Deaf and Hard of Hearing caused
by its administration of the
STAP
[
Specialized Telecommunications
Assistance Program (STAP)
] and
TRS
[
the Telecommunications
Relay Service
] programs.
,
] Tax Code.
,
] Tax Code as required by the commission
or the TUSF administrator.
,
] Link Up[
, and Tel-Assistance
] services.
For purposes of the recovery of the TUSF assessment, pay telephone providers
are considered retail customers subject to Chapter 151 of the Tax Code.
The commission may order modifications in a telecommunications provider's
method of recovery.
,
] Link
Up[
, and Tel-Assistance
] services.
; and/or
]
(iv)
Tel-Assistance Service].
Part 9.
TEXAS LOTTERY COMMISSION
five
] Pick 3 drawings immediately
following the current drawing. Example: On Monday, before the
day
drawing, a Pick 3 ticket can be purchased for the
Monday night drawing,
the
Tuesday
day or night drawing, the
[
,
] Wednesday
day or night drawing, the
[
,
] Thursday
day or night
drawing, the
[
,
] Friday
day or night drawing
,
or
the
Saturday
day or night drawing
[
drawings
].
draws
] beginning with the current
night
drawing
[
draw
].
pool percentage
]
may vary since all prize amounts are guaranteed.
(B)
] In the event any player who
has a valid winning ticket does not claim the prize within 180 days after
the drawing in which the prize was won, the prize amount shall be
deposited
to the credit of the Texas Department of Health state-owned multicategorical
teaching hospital account or the tertiary care facility account as prescribed
in Government Code, §466.4075
[
added to the prize reserve
fund and all rights to the prize shall terminate
].
(C)
] The prize reserve fund may
be
increased or
decreased by any amounts paid to winners, due to
the guaranteed prize amounts. For example, money may be allocated from the
prize reserve fund to the Pick 3 prize pool if the prize liability is greater
than the 50% prize pool.
validation and reference
] numbers.
issued/purchased
];
issued/purchased
];
no drawing applicable
to the ticket has previously been held
].
evenings
] at 9:59 p.m. Central Time except that the drawing schedule may be
changed by the director, if necessary.
break
] for the Pick 3 game on Monday, Tuesday, Wednesday,
Thursday, Friday, and Saturday [
nights
].
Subchapter E. RETAILER RULES
Chapter 402.
BINGO REGULATION AND TAX