EMERGENCY RULESAn agency may adopt a new or amended section or repeal an 
existing section on an emergency basis if it determines that such action is 
necessary for the public health, safety, or welfare of this state. The section 
may become effective immediately upon filing with the Texas Register, or on a 
stated date less than 20 days after filing and remaining in effect no more than 
120 days. The emergency action is renewable once for no more than 60 additional 
days.
Symbology in amended emergency sections. New language added to an existing 
section is indicated by the use of bold text. [Brackets] indicate deletion of 
existing material within a section.

TITLE 16. ECONOMIC REGULATION
PART I. Railroad Commission of Texas
CHAPTER 7.Gas Utilities Division
Substantive Rules
16 TAC sec.7.74
The Railroad Commission of Texas amends sec.7.74, relating to school piping 
testing, on an emergency basis. This rule was adopted on an emergency basis on 
June 24, 1997; the amended rule is effective immediately upon filing with the 
secretary of state. 
Amended sec.7.74 is necessary to properly implement the requirements of House 
Bill 1611 (H.B. 1611), enacted by the 75th Legislature and effective June 20, 
1997. H.B. 1611 mandates biennial testing of piping in schools that operate year 
round, and requires the testing to be completed by July 1. Without this 
emergency amendment rule which establishes the proper scope of the procedures by 
which such inspections are to be conducted, there is an imminent peril to the 
public safety of students and personnel in such schools. The emergency amendment 
requires operators that supply natural gas to school districts to receive 
notification regarding pressure testing performed by these schools and take 
action as further specified. 
The Commission does not simultaneously propose this new rule for adoption 
through regular rulemaking procedures. Rather, the Commission wishes to develop 
a permanent rule for adoption by working with operators and schools and giving 
them opportunity to comment. Drafting a proposal for permanent adoption will 
begin soon. 
The amended section is adopted on an emergency basis under the Texas Civil 
Statutes, Article 6053-2a, which authorizes the Commission to adopt rules 
relating to pressure testing of school piping. 

sec.7.74.School Piping Testing.
All operators that supply natural gas to [public] school districts[, private 
schools, or parochial schools] are required to receive notifications regarding 
pressure testing performed by these schools and take action as necessary. 
(1) Testing. The testing shall be a pressure test or shut-in test to determine 
if the school piping in each school building where students may be present will 
hold at least normal operating pressure over a time interval of no less than two 
hours. If a municipal code is in effect regarding pressure testing, the testing 
performed under the municipal code will be accepted.
(2) Frequency. Operators are required to receive notice from the schools of 
their testing at two-year intervals. For year-round schools, notice is to be 
given by July 1 of the year the testing is performed. 
(3) Procedures. Operators are required to develop procedures for: 
(A) receiving notification from the school districts regarding location of 
facilities supplied with natural gas; 
(B) terminating service in the event that: 
(i) testing is not completed in the two-year time interval;
(ii) a hazardous leak is reported by the person conducting the testing; or 
(iii) a hazardous leak is reported by the school board of trustees.
(C) providing for special circumstances for: 
(i) receiving written notification from the school or school district that the 
school or school district is not able to perform tests before the beginning of 
the designated school year; and 
(ii) receiving notification from the Commission regarding noninterruption of 
service. 
(4) Records. All operators are required to maintain a listing of the schools 
that are supplied natural gas and the results of each test for at least two 
years. 
Issued in Austin, Texas, on July 1, 1997.
TRD-9708525
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Effective date: July 1, 1997
Expiration date: October 29, 1997
For further information, please call: (512) 463-7008

PART IX. Texas Lottery Commission
CHAPTER 402. Bingo Regulation and Tax
16 TAC sec.402.568
The Texas Lottery Commission adopts, on an emergency basis, new sec.402.568, 
concerning distribution of proceeds for charitable purposes. The rule requires 
licensed authorized organizations to make charitable distributions, defines 
certain terms, requires licensed distributors to furnish certain information to 
licensed authorized organizations, authorizes the bingo operations director or 
designee to reduce or disallow a particular cost of goods expense item, and 
authorizes the bingo operations director, for good cause, to issue a license to 
an authorized organization which has had an application for a license to conduct 
bingo denied since September 1, 1996 solely for failure to make its required 
charitable distribution. 
The new section is adopted on an emergency basis to comply with state statutes. 
In particular, House Bill 2086, 75th Legislature, Regular Session requires the 
Texas Lottery Commission, not later than July 1, 1997, to adopt rules relating 
to the operation of bingo by bingo license holders and the distribution of 
proceeds for charitable purposes. 
The new section is adopted on an emergency basis under Texas Civil Statutes, 
Article 179d, sec.16(a) and Texas Government Code, sec.467.102 which provide the 
Texas Lottery Commission with the authority to adopt rules for the enforcement 
and administration of the Bingo Enabling Act and the laws under the Commission's 
jurisdiction, and Texas Government Code, sec.2001.034, which provides for the 
adoption of administrative rules on an emergency basis, without notice and 
comment. 

sec.402.568Distribution of Proceeds for Charitable Purposes.
(a) Before the end of each quarter, each licensed authorized organization shall 
disburse for charitable purposes an amount not less than 35% of the 
organization's adjusted gross receipts from the last preceding quarter, less the 
amount of authorized expenses not to exceed six percent of gross percent of 
gross receipts. 
(b) If a licensed authorized organization fails to meet the requirements of this 
rule for a quarter, the commission in applying appropriate sanctions may 
consider whether, taking into account the amount required to be distributed 
during that quarter and the three preceding quarters and the charitable 
distributions for each of those quarters, the organization has distributed a 
total amount sufficient to have met the 35% requirement for that quarter and the 
three preceding quarters combined. 
(c) For purposes of this rule, adjusted gross receipts means gross receipts less 
the amount of cost of goods sold by an organization and the prizes paid in the 
preceding quarter. 
(d) Cost of goods sold by an organization is the actual cost of disposable bingo 
paper, instant bingo tickets, or pull-tab bingo games purchased by the 
organization in the preceding quarter. The cost of goods sold shall accurately 
reflect all discounts and returns realized by the organization. Each licensed 
authorized organization shall maintain, for a period of not less than four 
years, all invoices, credit memos, and all other supporting documentation for 
substantiating the cost of goods sold. 
(e) For all disposable bingo paper, instant bingo tickets, and pull-tab bingo 
game sales made, returns accepted, and all other transactions, each licensed 
distributor shall furnish the licensed authorized organization a detailed 
invoice, credit memo, or other document, which shall include the following 
information: 
(1) The authorized organization's name, address, and Texas taxpayer 
identification number; 
(2) The address to which the shipment was delivered; 
(3) The date of sale or credit; 
(4) The quantity sold or credited; 
(5) The conditions of the sale or credit; and, 
(6) If the transaction involves disposable bingo paper:
(A) The series number; and, 
(B) The cut and collation. 
(7) If the transaction involves instant bingo tickets or pull-tab bingo games: 
(A) The form number; and, 
(B) The serial/series number for each deal. Each distributor shall maintain a 
copy of the documents described in this subsection for a period of not less than 
four years. 
(f) The director of the bingo operations division or his designee may reduce or 
disallow any cost of goods expense item which is not adequately supported. 
(g) Notwithstanding the provisions of sec.402.543(d) of this title (relating to 
Denials; Suspensions; Revocation; Hearings), the director of bingo operations 
may, for good cause, issue a license to conduct bingo to an authorized 
organization which has had an application to conduct bingo denied since 
September 1, 1996, solely for failure to comply with the provisions of Texas 
Civil Statutes, Article 179d, sec.19a(k). 
Issued in Austin, Texas, on July 1, 1997.
TRD-9708507
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: July 1, 1997
Expiration date: October 29, 1997
For further information, please call: (512) 344-5113