TITLE 16.ECONOMIC REGULATION

Part 8. TEXAS RACING COMMISSION

Chapter 303. GENERAL PROVISIONS

Subchapter D. TEXAS BRED INCENTIVE PROGRAMS

2. PROGRAM FOR HORSES

16 TAC §303.94

The Texas Racing Commission adopts an amendment to §303.94, relating to Texas-bred rules for Arabian horses. The amendment is adopted without changes to the proposed text published in the December 27, 2002, issue of the Texas Register (27 TexReg 12151) and the text will not be republished.

The amendment is adopted to enhance the Texas-bred Incentive Program for Arabian horses, by encouraging the accreditation of Arabian horses.

The amendment was presented as a petition from the Texas Arabian Breeders Association, the official breed registry for Arabian horses. The amendment extends the deadline for "grandfathering" the accreditation of a Texas-bred Arabian horse.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules relating exclusively to horse or greyhound racing; and §6.08, which authorizes the Commission to adopt rules relating to the accounting, audit and distribution of all amounts set aside for the Texas-Bred program for horses.

The amendment implements Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: December 27, 2002

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

Chapter 319. VETERINARY PRACTICES AND DRUG TESTING

Subchapter A. GENERAL PROVISIONS

16 TAC §319.6, §319.16

The Texas Racing Commission adopts new §319.16 and an amendment to §319.6, relating to postmortem examinations and access to the pre-race and test areas. The amendment and new section are adopted without changes to the proposed text published in the November 15, 2002, issue of the Texas Register (27 TexReg 10692) and the text will not be republished.

The amendment and new section are adopted in conjunction with the Commission's review of this chapter. In accordance with Government Code, §2001.039, the Commission has reviewed this chapter and has determined that it should be readopted, with changes to the above-referenced sections. The Commission finds that the reasons for this chapter with the adopted changes continue to exist.

The amendment and new section are adopted to conform the Commission's rules to current practice, make the rules more easily understood by licensees required to comply with the rules, and increase enforceability of the rules.

The substance of new §319.16 was formerly in the Commission's rules at §319.108. The rule is being moved to Subchapter A to make the provisions apply to greyhounds as well as horses. The amendment to §319.6 eliminates the prohibition against entering a stall in the test barn or pre-race holding area, and rewords the prohibition against unauthorized people or animals having access to the pre-race or test areas.

No comments were received regarding the adoption of the amendment or the new section.

The amendment and new section are adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program; and §6.061, which authorizes the Commission to regulate inappropriate or unsafe conditions at pari-mutuel racetracks.

The amendment and new section implement Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

Subchapter B. TREATMENT OF HORSES

The Texas Racing Commission adopts an amendment to §319.102 and the repeal of §319.108, relating to the veterinarian's list for horses and postmortem examinations. The amendment and repeal are adopted without changes to the proposed text published in the November 15, 2002, issue of the Texas Register (27 TexReg 10693) and the text will not be republished.

The amendment and repeal are adopted in conjunction with the Commission's review of this chapter. In accordance with Government Code, §2001.039, the Commission has reviewed this chapter and has determined that it should be readopted, with changes to the above-referenced sections. The Commission finds that the reasons for this chapter with the adopted changes continue to exist.

The amendment and repeal are adopted to conform the Commission's rules to current practice, make the rules more easily understood by licensees required to comply with the rules, and increase enforceability of the rules.

The amendment to §319.102 conforms the rule to current Commission rule style and with current practice regarding the posting of the veterinarian's list. The substance of §319.108 is being moved to Subchapter A of this chapter to make its provisions applicable both to greyhounds and horses. Therefore, §319.108 is repealed.

No comments were received regarding the adoption of the amendment or the repeal.

16 TAC §319.102

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; and §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program.

The amendment implements Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

16 TAC §319.108

The repeal is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; and §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program.

The repeal implements Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

Subchapter C. TREATMENT OF GREYHOUNDS

16 TAC §319.202

The Texas Racing Commission adopts an amendment to §319.202, relating to the veterinarian's list for greyhounds. The amendment is adopted without changes to proposed text published in the November 15, 2002, issue of the Texas Register (27 TexReg 10694) and the text will not be republished.

The amendment is adopted in conjunction with the Commission's review of this chapter. In accordance with Government Code, §2001.039, the Commission has reviewed this chapter and has determined that it should be readopted, with changes to the above-referenced section. The Commission finds that the reasons for this chapter with the adopted changes continue to exist.

The amendment is adopted to ensure the Commission's veterinary regulatory program will function efficiently and effectively. The amendment to §319.202 conforms the rule to current Commission rule style which authorizes the executive secretary, rather than the Commission, to prescribe various forms.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; and §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program.

The amendment implements Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

Subchapter D. DRUG TESTING

1. GENERAL PROVISIONS

16 TAC §319.303

The Texas Racing Commission adopts an amendment to §319.303, relating to tampering with specimens. The amendment is adopted without changes to the proposed text published in the November 15, 2002, issue of the Texas Register (27 TexReg 10694) and the amendment will not be republished.

The amendment is adopted in conjunction with the Commission's review of this chapter. In accordance with Government Code, §2001.039, the Commission has reviewed this chapter and has determined that it should be readopted, with changes to the above-referenced section. The Commission finds that the reasons for this chapter with the adopted changes continue to exist.

The amendment is adopted to ensure the Commission's race animal drug testing program will function efficiently and effectively. The amendment authorizes the executive secretary, rather than the Commission, to approve the addition of a substance to a specimen for the purpose of preserving the specimen.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; and §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program.

The amendment implements Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

2. TESTING PROCEDURES

16 TAC §§319.332 - 319.334, 319.338

The Texas Racing Commission adopts amendments to §§319.332 - 319.334 and §319.338, relating to testing procedures. The amendments are adopted without changes to the proposed text published in the November 15, 2002, issue of the Texas Register (27 TexReg 10695) and the text will not be republished.

The amendments are adopted in conjunction with the Commission's review of this chapter. In accordance with Government Code, §2001.039, the Commission has reviewed this chapter and has determined that it should be readopted, with changes to the above-referenced sections. The Commission finds that the reasons for this chapter with the adopted changes continue to exist.

The amendments are adopted to ensure the Commission's race animal drug testing program will function efficiently and effectively. The amendments conform the rules to the Commission's current capitalization style. The amendments also conform the rules to current practice, regarding the authority of the test barn supervisor at horse racetracks to oversee the collection, sealing, and storage of specimens. The amendment to §319.332 also clarifies the right of the owner, trainer, or kennel owner to witness the taking of a specimen.

No comments were received regarding the adoption of the amendments.

The amendments are adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to make rules regulating horse or greyhound racing; §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; and §3.16, which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race and to implement a postrace testing program.

The amendments implement Texas Civil Statutes, Article 179e.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 7, 2003.

Paula C. Flowerday

Executive Secretary

Texas Racing Commission

Effective date: March 1, 2003

Proposal publication date: November 15, 2002

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

Part 9. TEXAS LOTTERY COMMISSION

Chapter 402. BINGO REGULATION AND TAX

16 TAC §402.567

The Texas Lottery Commission adopts amendments to rule 16 TAC §402.567 relating to Bingo Advisory Committee with changes to the proposed text as published in the September 27, 2002 issue of the Texas Register (27 TexReg 9079). The change to the language is to reflect a date by which the Commission must affirmatively vote to continue the Committee or the Committee will be abolished. Another change is to insert a word that was inadvertently left out of the proposed rule in subsection (f). The word is "than" and is inserted between the words "other" and "Austin". Another change is to provide discretion for meetings held outside Austin. The proposed rule provided that at least one quarterly meeting be conducted outside Austin. However, in light of current state government budget concerns, the Bingo Director must have the discretion to determine whether funds are available to pay costs incurred in connection with the Committee conducting a meeting outside Austin. The amendments clarify the purpose and duties of the Bingo Advisory Committee. The amendments also clarify the nomination and appointment of persons to the Bingo Advisory Committee, including the requirements for nomination, as well as clarifies the at-will service to the commission and the ability of the commission to remove a member. The amendments also set out the responsibilities of the Bingo Advisory Committee. Language is also proposed to help ensure that persons truly represent the category for which they were nominated. The amendments also clarify that members can only be reimbursed for expenses if funds have been appropriated by the legislature for that purpose. Also, the amendments implement Government Code, Chapter 2110 relating to advisory committees. The amendments clarify the duties and purpose of the Bingo Advisory Committee, nomination and appointment process, and eligibility requirements.

No comments were received regarding adoption of the amendments.

The amendments are adopted under the Government Code, §467.102 and the Occupations Code, §2001.054 which provide the Commission with the authority to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

The amendments implement Occupations Code, Chapter 2001.

§402.567.Bingo Advisory Committee.

(a) Purpose. The purpose of the bingo advisory committee BAC is to advise the commission on the needs and problems of the state's bingo industry; report to the Commission on the committee's activities; and perform other duties as determined by the Commission. The BAC's sole duty is to advise the commission. The BAC has no executive or administrative powers or duties with respect to the operations of the Charitable Bingo Division; all such powers and duties rest solely with the commission.

(b) Composition. The following appointments shall be made representing a balance of interests: General Public--one; Charities that operate bingo games--three; Lessor, Charity--one; Lessor, Commercial--two; Distributor/Manufacturer--one; System Service Provider--one.

(c) Nomination and Appointment.

(1) The nomination period will be specified by the commission. Nominations must be submitted on a form prescribed by the commission prior to the close of the nomination period. All information requested on the nomination form must be correct and complete.

(2) With the exception of a nominee to the "Lessor, Charity" position, a nominee may not be listed in the licensing information that is required to be filed with the commission in any other category than the one for which the person is nominated.

(3) A nominee to the "General Public" category may not be listed in the licensing information that is required to be filed with the commission.

(4) A total of nine members will be appointed by the commission. Each member will be appointed for a three-year term or until his/her successor has been appointed and will serve at the pleasure of the Commission. Members hold office for staggered terms of three years so that three members' terms expire February 1 of each year.

(5) A person is ineligible to serve as a member of the BAC if he/she represents an organization licensed by the commission that is delinquent in any liability to the state or if he/she represents an organization licensed by the commission that has a license denied, revoked or suspended by the commission.

(d) Officers. Annually, the BAC shall select from among its members a presiding officer. The presiding officer will conduct meetings and general business. The presiding officer will designate a member of the BAC to conduct meetings and general business in the absence of the presiding officer.

(e) Reports. The Committee will report, at a minimum, quarterly to the Commission on the BAC's activities, and more frequently as deemed appropriate and necessary by the BAC presiding officer. Annually, the BAC will report to the commission with specific recommendations for improvement, the status of the following areas relating to charitable bingo in Texas:

(1) gross receipts;

(2) charitable distributions;

(4) attendance; and,

(5) any other area requested by the commission.

(f) Meetings. The BAC shall meet quarterly or at the call of the Commission. BAC meetings may be held at a location in Texas other than Austin, subject to the discretion of the Charitable Operations Bingo Director. The meetings shall be open meetings in accordance with the Open Meetings Act, Texas Government Code, Chapter 551. The committee shall keep minutes of each meeting. The minutes shall be approved at the next following meeting, shall reflect all formal action taken by the committee, and shall be filed, upon approval, with the Charitable Bingo Operations Director. The BAC may consider a transcript prepared by a court reporter to be the minutes of the meeting.

(g) Attendance. The failure by any BAC member to attend two consecutive regular quarterly meetings, for any reason, may be cause for removal by the Commission. No proxy voting shall be allowed. A member may not substitute another person in his/her absence.

(h) Criminal History Review. All BAC members must meet the criminal history standards set out in Occupations Code, §§2001.105(b), 2001.154(a)(5), 2001.202(1), 2001.207(1), and 2001.252(1) (Bingo Enabling Act). A member who fails to meet such criminal history standards will be disqualified from serving on the BAC and will be removed from the BAC. The decision by the commission to remove a member of the BAC is final.

(i) Compensation and Travel Expenses. A member of the BAC is entitled to reimbursement for reasonable expenses. Reasonable expenses shall be limited to those expenses set out in the current Appropriations Act , shall be reimbursed in accordance with the current Appropriations Act , and shall not exceed the maximum allowed amount as set out in the Comptroller of Public Accounts Travel Guidelines. BAC members shall submit expenses on a form provided by the commission and shall be accompanied by appropriate receipts. Expenses can be reimbursed to members only if the legislature has specifically appropriated funds for that purpose.

(j) Duration. The BAC will automatically be abolished and cease to exist on March 6, 2004. The BAC shall only remain in existence beyond March 6, 2004, if the Commission affirmatively votes to continue the Bingo Advisory Committee in existence.

(k) Removal. A member of the BAC may be removed if he/she represents an organization licensed by the commission that is delinquent in any liability to the state or if he/she represents an organization licensed by the commission that has a license denied, revoked or suspended by the commission. The decision by the commission to remove a member of the BAC is final.

(l) Evaluation of BAC Costs and Effectiveness. The commission shall evaluate annually:

(1) BAC's work;

(2) BAC's usefulness; and,

(3) the costs related to BAC's existence, including the cost of commission staff time in support of BAC's activities.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 4, 2003.

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Effective date: February 24, 2003

Proposal publication date: September 27, 2002

For further information, please call: (512) 344-5113