PART 8. TEXAS RACING COMMISSION
CHAPTER 309. RACETRACK LICENSES AND OPERATIONS
SUBCHAPTER A. RACETRACK LICENSES
The Texas Racing Commission (Commission) proposes amendments to 16 TAC §309.8, Racetrack License Fees, relating to the fees charged to pari-mutuel racetrack licensees. The changes to §309.8 increase the annual license fee for licensed but inactive pari-mutuel racetracks by $25,000 annually. For Fiscal Year 2009, the inactive racetracks are credited for the amounts already paid on September 1, 2008, and the additional $25,000 is due on March 15, 2009. For the fiscal years beginning on September 1, 2009, and beyond, the total inactive license fee will be due on September 1 of each year.
Charla Ann King, Executive Director for the Texas Racing Commission, has determined that for the first five year period the amendment is in effect the fiscal implication for state government is that the Texas Racing Commission will collect an additional $25,000 annually from each racetrack license that is not conducting live or simulcast racing. There are six licenses that currently meet these criteria, and four of these licenses are scheduled to begin racing during the next year. As a result, the five year fiscal impact to the state is estimated at $350,000. There will be no fiscal implications to local government as a result of enforcing the amendment.
Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit will be to provide additional revenue to the Commission to administer the Texas Racing Act and support the regulation of live and simulcast racing.
The rule will have no adverse economic effect on small or micro-businesses, and therefore preparation of an economic impact statement and a regulatory flexibility analysis is not required. Five of the six affected racetrack licensees are not operating businesses and report no profits or losses. The sixth, Corpus Christi Greyhound Race Track, reported losses for 2007 but is not currently operating. However, the Commission considered several alternative methods of raising additional revenue. These included raising annual fees on all racetracks, including active tracks, and increasing simulcasting and live racing fees. The Commission rejected these methods because the active racetracks already pay substantially more in total fees than the inactive tracks. The Commission also rejected the alternative of increasing fees on simulcasting and live racing because of the adverse impact these fees would have on the active racetracks' operations, including the possibility that some tracks would cancel some simulcasting dates. The Commission also considered increasing fees for occupational licenses, adding fees for administering trainers' tests, and adding new fees on requests to approve transfers of pecuniary interests in a racetrack license and on requests to change the location of a racetrack license. The Commission approved each of these proposals for publication in this issue of the Texas Register for public comment.
There are no negative impacts upon employment conditions in this state as a result of the proposed amendment.
All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Carolyn Weiss, Assistant to the Executive Director for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.
The amendment is proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing, and §5.01, which requires the Commission to set fees by rule in amounts reasonable and necessary to cover the Commission's costs of regulating, overseeing, and licensing live and simulcast racing at racetracks.
The amendment implements Texas Civil Statutes, Article 179e.
§309.8.Racetrack License Fees.
(a) - (b) (No change.)
(c) Annual License Fee.
[(1) Active License Fee
for State Fiscal Year Ending August 31, 2007. An association that
is licensed and that is conducting live racing or simulcasting shall
pay an annual active license fee. The fee is due to the Commission
on April 16, 2007, for the State fiscal year ending August 31, 2007.
The active license fee for a greyhound racing association is $80,000.
The active license fee for a horse racing association is:]
[(A) for a Class 1 racetrack, $27,500;]
[(B) for a Class 2 racetrack, $15,000; and]
[(C) for a Class 3 or 4 racetrack, $5,000.]
(1) [(2)] Active License Fee
for State Fiscal Years Beginning September 1, 2007, and thereafter.
An association that is licensed and that is conducting live racing
or simulcasting shall pay an annual active license fee. The fee is
due to the Commission on January 31 of each State fiscal year. The
active license fee for a greyhound racing association is $175,000.
The active license fee for a horse racing association is:
(A) for a Class 1 racetrack, $45,000;
(B) for a Class 2 racetrack, $15,000; and
(C) for a Class 3 or 4 racetrack, $5,000.
(2) [(3)] Inactive License Fee
for State Fiscal Year Ending August 31, 2009 [2007].
An association that is licensed but is not conducting live racing
or simulcasting shall pay an inactive license fee in two separate
payments. The fee is due to the Commission on September
1, 2008 and March 15, 2009 [April 16, 2007], for
the State fiscal year ending August 31, 2009 [2007].
The total inactive license fee for a greyhound racing association
is $150,000 to be paid $125,000 on September 1, 2008 and $25,000
on March 15, 2009 [$125,000]. The total inactive
license fee for a horse racing association is:
(A) $150,000 for a Class 1 racetrack, to
be paid $125,000 on September 1, 2008 and $25,000 on March 15, 2009 [
$125,000];
(B) $100,000 for a Class 2 racetrack, to
be paid $75,000 on September 1, 2008 and $25,000 on March 15, 2009 [
$55,000]; and
(C) $50,000 for a Class 3 or 4 racetrack,
to be paid $25,000 on September 1, 2008 and $25,000 on March 15, 2009
[$25,000].
(3) [(4)] Inactive License Fee
for State Fiscal Years Beginning September 1, 2009 [2007],
and thereafter. An association that is licensed but is not conducting
live racing or simulcasting shall pay an inactive license fee. The
fee is due to the Commission on September 1 of each year. The inactive
license fee for a greyhound racing association is $150,000 [
$125,000]. The inactive license fee for a horse racing association is:
(A) for a Class 1 racetrack, $150,000 [$125,000];
(B) for a Class 2 racetrack, $100,000 [$75,000]; and
(C) for a Class 3 or 4 racetrack, $50,000 [$25,000].
(d) - (e) (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 February 27, 2009.
TRD-200900902
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: April 12, 2009
For further information, please call: (512) 833-6699
The Texas Racing Commission (Commission) proposes two new rules, 16 TAC §309.11, Fees for Requests to Approve a Transfer of Pecuniary Interests, and §309.12, Fees for Requests to Approve Change of Location. Section 309.11 relates to the fees that a racing association must pay in order for the Commission to review a request to transfer an ownership interest in the association and for the Commission to reimburse the Department of Public Safety for the required background investigation. Section 309.12 relates to the fees that a racing association must pay in order for the Commission to review a request to change the association's location.
New §309.11 would require that the association pay a processing fee and a background investigation fee when requesting Commission approval to transfer an ownership interest. If the change amounts to a change in the control and/or majority interest in an association, the total fees range from $3,500 to $75,000. If the change is for more than a five percent ownership but less than a majority interest and does not cause a change in control, the total fees range from $175 to $1,500. If the change is for less than five percent ownership and does not cause a change in control, the fees range from $75 to $600. In each case, the fees are based on the class of license involved and are for the actual costs only; any excess amounts will be returned to the association, and any cost overruns will be billed to the association.
New §309.12 would require that the association pay a processing fee when requesting Commission approval to change location. The processing fee ranges from $7,500 to $100,000, depending upon the class of license. The fee is for the actual costs only; any excess amount will be returned to the association, and any cost overruns will be billed to the association.
Charla Ann King, Executive Director for the Texas Racing Commission, has determined that for the first five year period the new rules are in effect there will be no fiscal implications for state or local government as a result of enforcing the new rules.
Ms. King has also determined that for each year of the first five years the new rules are in effect the anticipated public benefit will be that the racing associations making these requests will bear the costs of processing the applications and conducting the background investigations. Previously, these costs had been distributed across all the racetracks through higher annual fees, simulcasting fees, and live racing fees. There will be no additional cost to individuals as a result of the proposal.
The rules will have no adverse economic effect on small or micro-businesses, and therefore preparation of an economic impact statement and a regulatory flexibility analysis is not required.
There are no negative impacts upon employment conditions in this state as a result of the proposed new rules.
All comments or questions regarding the proposed new rules may be submitted in writing within 30 days following publication of this notice in the Texas Register to Carolyn Weiss, Assistant to the Executive Director for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.
The new rules are proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing, and §5.01, which requires the Commission to set fees by rule in amounts reasonable and necessary to cover the Commission's costs of regulating, overseeing, and licensing live and simulcast racing at racetracks.
The new rules implement Texas Civil Statutes, Article 179e.
§309.11.Fees for Requests to Approve a Transfer of Pecuniary Interests.
(a) General Provisions. A license holder who requests Commission approval to transfer a pecuniary interest in a racetrack license must submit with the request a fee in an amount set by the Commission.
(b) Fees.
(1) The request fee is composed of a variable processing charge and investigation charge. The processing charge is the amount needed by the Commission to cover the administrative costs of processing the request. The investigation charge is the amount needed by the Commission to cover the costs incurred by the Department of Public Safety and Commission staff for conducting the background investigation on the proposed transferee. A license holder must pay all charges contemporaneously with filing the request. The Commission will take no action on a request under this section unless the requestor submits the total amount of the request fee with the request. The Commission shall hold the request fee in the state treasury in a suspense account. The Commission may transfer the processing funds due to the Commission to the Texas Racing Commission Fund as costs are incurred. If the actual costs to the Commission of processing the request or conducting the investigation exceed the amount deposited for the applicable charge, the requestor shall pay the remaining amount not later than 10 business days after receipt of a bill from the Commission. If the costs of processing the request or conducting the investigation are less than the amount of the charge, the Commission shall refund the excess not later than 10 business days after the Commission's decision on the request becomes final.
(2) The fees for a request for Commission approval to approve a transfer of pecuniary interests in a racetrack license that effects a change in the controlling interest of that license are as follows:
(A) The amount to be deposited for the processing charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $50,000;
(ii) for a Class 2 racetrack, $25,000;
(iii) for a Class 3 racetrack, $10,000; and
(iv) for a Class 4 racetrack, $2,500.
(B) The amount to be deposited for the investigation charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $25,000;
(ii) for a Class 2 racetrack, $10,000;
(iii) for a Class 3 racetrack, $1,500; and
(iv) for a Class 4 racetrack, $1,000.
(C) The amount to be deposited for the processing charge for a greyhound racetrack request is $50,000.
(D) The amount to be deposited for the investigation charge for a greyhound racetrack request is $25,000.
(3) The fees for a request for Commission approval to approve a transfer of pecuniary interests of 5.0% or more in a racetrack license, but that does not effect a change in the controlling interest of that license, are as follows:
(A) The amount to be deposited for the processing charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $500;
(ii) for a Class 2 racetrack, $250;
(iii) for a Class 3 racetrack, $100; and
(iv) for a Class 4 racetrack, $50.
(B) The amount to be deposited for the investigation charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $1,000;
(ii) for a Class 2 racetrack, $500;
(iii) for a Class 3 racetrack, $250; and
(iv) for a Class 4 racetrack, $125.
(C) The amount to be deposited for the processing charge for a greyhound racetrack request is $500.
(D) The amount to be deposited for the investigation charge for a greyhound racetrack license request is $1,000.
(4) The fees for a request for Commission approval to approve a transfer of pecuniary interests of less than 5.0% in a racetrack license and that does not effect a change in the controlling interest of that license are as follows:
(A) The amount to be deposited for the processing charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $100;
(ii) for a Class 2 racetrack, $100;
(iii) for a Class 3 racetrack, $50; and
(iv) for a Class 4 racetrack, $25.
(B) The amount to be deposited for the investigation charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $500;
(ii) for a Class 2 racetrack, $250;
(iii) for a Class 3 racetrack, $125; and
(iv) for a Class 4 racetrack, $50.
(C) The amount to be deposited for the processing charge for a greyhound racetrack request is $100.
(D) The amount to be deposited for the investigation charge for a greyhound racetrack request is $500.
§309.12.Fees for Requests to Approve Change of Location.
(a) General Provisions. A license holder who requests Commission approval to change the location of a racetrack license must submit with the request a fee in an amount set by the Commission.
(b) Fees.
(1) The request fee is composed of a variable processing charge. The processing charge is the amount needed by the Commission to cover the administrative costs of processing the request. A license holder must pay all charges contemporaneously with filing the request. The Commission will take no action on a request under this section unless the requestor submits the total amount of the request fee with the request. The Commission shall hold the request fee in the state treasury in a suspense account. The Commission may transfer the processing funds due to the Commission to the Texas Racing Commission Fund as costs are incurred. If the actual cost to the Commission of processing the request exceeds the amount deposited for the applicable charge, the requestor shall pay the remaining amount not later than 10 business days after receipt of a bill from the Commission. If the costs of processing the request are less than the amount of the charge, the Commission shall refund the excess not later than 10 business days after the Commission's decision on the request becomes final.
(2) The fees for a request for Commission approval to change the location of a racetrack license are as follows:
(A) The amount to be deposited for the processing charge for a horse racetrack request is:
(i) for a Class 1 racetrack, $100,000;
(ii) for a Class 2 racetrack, $50,000;
(iii) for a Class 3 racetrack, $15,000; and
(iv) for a Class 4 racetrack, $7,500.
(B) The amount to be deposited for the processing charge for a greyhound racetrack request is $100,000.
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 February 27, 2009.
TRD-200900903
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: April 12, 2009
For further information, please call: (512) 833-6699
SUBCHAPTER A. LICENSING PROVISIONS
DIVISION 1. OCCUPATIONAL LICENSES
The Texas Racing Commission (Commission) proposes amendments to 16 TAC §311.5, License Fees. Section 311.5 relates to the fees the Commission charges for occupational licenses to participate in pari-mutuel racing.
The changes to §311.5 increase the occupational license fees by an amount varying from $5 to $25. The amendment also creates two new license types, Vendor Totalisator and Vendor/Totalisator Employee, with licensee fees of $500 and $50 respectively.
Charla Ann King, Executive Director for the Texas Racing Commission, has determined that for the first five year period the amendment is in effect the fiscal implication for state government will be an increase in revenue to the Commission of approximately $217,000 per year, or $1,085,000 for the full five years. There will be no fiscal impact to local government as a result of enforcing the amendment. Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit will be to provide additional revenue to the Commission to administer the Texas Racing Act and support the regulation of live and simulcast racing.
The rule will have an adverse economic effect on small and micro-businesses. The Commission currently has approximately 7,100 occupational licensees that may qualify as small or micro-businesses. Of these, 6,500 are owners and/or trainers. The remainder are in occupations such as jockeys, veterinarians, farriers, and exercise riders. All of these licensees would see an increase in their annual fees by an amount ranging from $5 to $25. Before proposing to increase these fees, the Commission considered several alternative methods of increasing revenue. These included raising annual fees on all racetracks, including active tracks, and increasing simulcasting and live racing fees. The Commission rejected these methods because the active racetracks already pay substantial amounts in total fees. The Commission also rejected the alternative of increasing fees on simulcasting and live racing because of the adverse impact these fees would have on the active racetracks' operations, including the possibility that some tracks would cancel some simulcasting dates. The Commission also considered increasing fees for inactive racetrack licenses, adding fees for administering trainers' tests, and adding new fees on requests to approve transfers of pecuniary interests in a racetrack license and requests to change the location of a racetrack license. The Commission approved each of these proposals for publication in this issue of the Texas Register for public comment.
There may be negative impacts upon employment conditions in this state as a result of the proposed amendment. For many employees, the employer pays the occupational licensing fee. Since some of these fees will be applied to entry-level positions with higher levels of turnover, some employers may resist hiring new workers or require new workers to pay for their own licenses.
All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Carolyn Weiss, Assistant to the Executive Director for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.
The amendment is proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing, and §5.01, which requires the Commission to set fees by rule in amounts reasonable and necessary to cover the Commission's costs of regulating, overseeing, and licensing live and simulcast racing at racetracks.
The amendment implements Texas Civil Statutes, Article 179e.
§311.5.License Fees.
(a) - (b) (No change.)
(c) The fee for an occupational license is as follows:
[Figure: 16 TAC §311.5(c)]
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 February 27, 2009.
TRD-200900904
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: April 12, 2009
For further information, please call: (512) 833-6699
The Texas Racing Commission (Commission) proposes amendments to 16 TAC §311.104, Trainers. Section 311.104 relates to the qualifications and responsibilities of trainers.
The changes to §311.104 create a $50 fee for administering the written and practical examination to become a trainer. It also provides that failure to timely reschedule a missed exam will result in loss of the testing fee.
Charla Ann King, Executive Director, has determined that for the first five year period the amendment is in effect there will be an increase in revenue to the Commission of approximately $17,500. There will be no fiscal implications for local government as a result of enforcing the amendment.
Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit is to provide additional revenue to the Commission to administer the Texas Racing Act and support the regulation of live and simulcast racing. It will also reduce unnecessary expenses caused by trainer candidates who have requested examinations before being adequately prepared and who have missed scheduled examinations without adequate notice.
The rule may have an adverse economic effect on small or micro-businesses. Approximately 70 trainer candidates take the trainer examination each year, and upon successful completion of the examination, many of these candidates will operate as a small or micro-business. This rule change will impose a small financial barrier to entry into the field. The Commission has considered several alternative methods of raising additional revenue and of reducing costs, including raising annual fees on active racetracks and increasing simulcasting and live racing fees. The Commission rejected these methods because the active racetracks already pay substantial amounts in fees. The Commission also rejected the alternative of increasing fees on simulcasting and live racing because of the adverse impact these fees would have on the active racetracks' operations, including the possibility that some tracks would cancel some simulcasting dates.
The Commission considered increasing fees for inactive racetrack licenses, adding new fees on requests to approve transfers of pecuniary interests in a racetrack license, and adding new fees on requests to change the location of a racetrack license. To reduce costs, the Commission has considered reducing the number of greyhound judges required for each greyhound race from three to two. The Commission approved each of these proposals for publication in this issue of the Texas Register for public comment.
There are no negative impacts upon employment conditions in this state as a result of the proposed amendment.
All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Carolyn Weiss, Assistant to the Executive Director for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.
The amendment is proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing, and §5.01, which requires the Commission to set fees by rule in amounts reasonable and necessary to cover the Commission's costs of regulating, overseeing, and licensing live and simulcast racing at racetracks.
The amendment implements Texas Civil Statutes, Article 179e.
§311.104.Trainers.
(a) Licensing.
(1) (No change.)
(2) The standard for passing the written examination must be printed on the examination. A $50 non-refundable testing fee is assessed for administering the written and practical examinations. The fee is due and payable at the time the first examination appointment is scheduled. A minimum of 48 hours advance notice is required to reschedule an examination appointment without loss of the testing fee. An applicant who fails to timely reschedule an examination appointment must pay a new testing fee to reschedule the appointment. An applicant who fails the written examination may not take the examination again before the 60th day after the date the applicant failed the examination. An applicant who fails the practical examination may not reschedule the practical examination again before the 180th day after the applicant failed the practical examination. An applicant who fails the practical examination for a second time may not reschedule another practical examination for 365 calendar days after the day the applicant failed the first practical examination and the applicant must pay an additional $50 non-refundable testing fee. The Commission may waive the requirement of a written and/or practical examination for a person who has a current license issued by another pari-mutuel racing jurisdiction. If a person for whom the examination requirement was waived demonstrates an inability to adequately perform the duties of a trainer, through excessive injuries, rulings, or other behavior, the stewards or racing judges may require the person to take the written examination. If such a person fails the examination, the stewards or racing judges shall suspend the person's license for 60 days with reinstatement contingent upon passing the written examination.
(3) - (4) (No change.)
(b) - (k) (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 2, 2009.
TRD-200900905
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: April 12, 2009
For further information, please call: (512) 833-6699
SUBCHAPTER A. OFFICIALS
DIVISION 1. APPOINTMENT OF OFFICIALS
The Texas Racing Commission proposes an amendment to 16 TAC §315.1, Required Officials. Section 315.1 relates to the officials that must be present at each pari-mutuel greyhound race.
The change to §315.1 would require that at least two judges be present for each race instead of three.
Charla Ann King, Executive Director for the Texas Racing Commission, has determined that for the first five year period the amendment is in effect there will be a net reduction in costs to state government of up to $170,000. There will be no fiscal implications for local government as a result of enforcing the amendment.
Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit will be to allow the Commission to reduce costs by designating three judges for the meet as a whole, but providing only two judges for specific performances. While three judges would be available to sit on a panel in case of a ruling, the duties of overseeing many race performances can be satisfied with only two judges.
The rule will have no adverse economic effect on small or micro-businesses, and therefore preparation of an economic impact statement and a regulatory flexibility analysis is not required.
There are no negative impacts upon employment conditions in this state as a result of the proposed amendment.
All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Carolyn Weiss, Assistant to the Executive Director for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.
The amendment is proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing.
The amendment implements Texas Civil Statutes, Article 179e.
§315.1.Required Officials.
(a) The following officials must be present at each greyhound race conducted in this state:
(1) at least two [three] racing judges;
(2) - (13) (No change.)
(b) - (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 2, 2009.
TRD-200900906
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: April 12, 2009
For further information, please call: (512) 833-6699