TITLE 16.ECONOMIC REGULATION

Chapter 321. PARI-MUTUEL WAGERING

The Texas Racing Commission proposes amendments to §§321.29, 321.33, and 321.43. The Commission also proposes new §321.2. These amendments are proposed in conjunction with the recommendations from the Commission's Pari-Mutuel Advisory Committee.

The sections proposed for amendment relate to odds manipulation, mutuel tickets, expiration dates, and cancellation of wagers.

Charla Ann King, Executive Secretary for the Commission, has determined that for each of the first five years that the new and amended rules will be in effect, the following statements regarding the anticipated public benefit will apply:

The addition of new rule §321.2 makes the intentional manipulation of Odds and Will Pays a practice that is inconsistent with the honesty and integrity of racing. The purpose of the rule is to prevent the dissemination of false information to the wagering public.

The change to §321.29 requires an expiration date to be printed on the face of the pari-mutuel ticket, enabling the betting patron to easily discern the expiration date of the ticket. This change will assist the betting patron by showing how long the ticket will be valid.

The change to §321.33 will require an association to print the expiration date on the face of a pari-mutuel ticket. This change will assist the betting patron by showing how long the ticket will be valid.

The change to §321.43 will allow the cancellation of wagers on self-serve machines. In order to allow cancellations, an association must first establish written policies detailing the procedures the association will use in permitting the cancellation of wagers and detecting odds manipulation. The written policies must be approved by the executive secretary prior to implementation. The mutuel manager shall be responsible for controlling all canceled wagers and for ensuring that the association complies with the rules permitting the cancellation of win wagers. This change will allow the associations to reduce costs by permitting self-serve machines to cancel some wagers that were previously handled only at manned teller windows. It will also provide more convenient access to cancellations for patrons.

There are no foreseeable implications relating to costs or revenues for state or local governments as a result of enforcing or administering the proposed amendments.

There are no foreseeable implications relating to costs or revenues for small or micro-businesses as a result of enforcing or administering the proposed amendments.

There are no economic costs to persons required to comply with the proposed amendments.

There are no negative impacts upon employment conditions in this state as a result of the proposed amendments.

All comments or questions regarding these proposed amendments may be submitted in writing within 30 days following publication of this notice in the Texas Register to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.

1. GENERAL PROVISIONS

16 TAC §321.2

The new section is proposed under the Texas Civil Statutes, Article 179e, §3.02 and §3.021, which authorizes the Commission to make rules relating to all aspects of greyhound and horse racing, and §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.

The new section implements §11.01 of Texas Civil Statutes, Article 179e, which requires the Commission to adopt rules regulating wagering on greyhound and horse races.

§321.2.Odds Manipulation.

The commission recognizes that the wagering public uses Odds and Will Pays as a handicapping tool. To maintain the integrity of the pools, the Commission therefore identifies the practice of canceling wagers that were placed for the sole purpose of manipulating the posted Odds or Will Pays as being inconsistent with the honesty and integrity of racing under §307.7, Ejection and Exclusion, and as a detrimental practice under §309.9, Denial, Suspension, and Revocation of Licenses.

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, 2007.

TRD-200700857

Mark Fenner

General Counsel

Texas Racing Commission

Earliest possible date of adoption: April 15, 2007

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

3. MUTUEL TICKETS AND VOUCHERS

16 TAC §§321.29, 321.33, 321.43

The amendments are proposed under the Texas Civil Statutes, Article 179e, §3.02 and §3.021, which authorizes the Commission to make rules relating to all aspects of greyhound and horse racing, and §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.

The rule amendments implement §11.01 of Texas Civil Statutes, Article 179e, which requires the Commission to adopt rules regulating wagering on greyhound and horse races, and implement §11.03 of Texas Civil Statutes, Article 179e, which requires the Commission to prescribe by rule the information to be printed on each pari-mutuel ticket.

§321.29.Mutuel Tickets.

Each mutuel ticket issued must have printed on its face:

(1) the name of the racetrack facility where the wager was placed;

(2) the name of the racetrack where the race was conducted;

(3) the number of the race;

(4) the unique computer-generated ticket number;

(5) the date the ticket was issued;

(6) the date of the race for which the ticket was issued;

(7) the number of the ticket-issuing machine;

(8) the type of pool;

(9) the number of each entry on which the wager was placed; [ ~~and~~ ]

(10) the dollar amount of the wager ; and [ . ]

(11) the expiration date of the ticket.

§321.33.Expiration Date.

(a) Due to the year-round nature of simulcasting and the state's fiscal year, the Commission finds a need to establish a "mutuel year" for purposes of expiration of mutuel tickets and the collection of revenue from outstanding tickets pursuant to the Act, §11.08. The mutuel year begins on August 1 and ends on July 31.

(b) A mutuel ticket:

(1) expires on the 60th day after the last day of the mutuel year in which the ticket was purchased; and

(2) may not be cashed by an association after the expiration date for any reason.

(d) The expiration date of the wager must be printed on the face of a pari-mutuel ticket.

§321.43.Cancellation of Win Wagers.

(a) - (d) (No change.)

(e) The cancellation of wagers on self-serve wagering machines shall not be permitted except in accordance with the written policies established by the association and approved by the executive secretary.

(f) The mutuel manager shall be responsible for controlling all canceled wagers and ensuring that the association complies with the rules of this section.

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, 2007.

TRD-200700858

Mark Fenner

General Counsel

Texas Racing Commission

Earliest possible date of adoption: April 15, 2007

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