Subchapter B. OPERATION OF RACETRACKS

Subchapter B. SPECIFIC LICENSES

Subchapter B. ENTRIES AND PRE-RACE PROCEDURES

Subchapter A. GENERAL PROVISIONS

The Texas Racing Commission adopts the repeal of Chapter 321 relating to pari-mutuel wagering without changes to the proposed text as published in the January issue of the Texas Register (26 TexReg 19) in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and Government Code §2001.039. The Commission's review included an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist.

As a result of the Commission's review and meetings with the licensed associations and industry related organizations, it was determined that a complete replacement was necessary to reflect the new technology in the pari-mutuel wagering industry. Consequently, the Commission adopted the repeal of Chapter and new Chapter 321. Further details of the new Chapter 321 can be found in the "Adoptions" section of this issue.

As part of the replacement of the Commission rules, the agency is complying with the Government Code §2001.039 requirements, repealing rules that are redundant with other statutes or rules, and updating existing rules to ensure that they are consistent with current agency application and interpretation.

No comments were received regarding the repeal and replacement of Chapter 321.

Subchapter A. REGULATION AND TOTALISATOR OPERATIONS

Subchapter A. MUTUEL OPERATIONS

The Texas Racing Commission adopts new §§321.1, 321.3, 321.5, 321.7, 321.9, 321.11, 321.13, 321.15, 321.17, 321.19, and 321.21 relating to mutuel operations; §§321.23, 321.25, and 321.27 relating to wagering explanations; and §§321.29, 321.31, 321.33-321.35, 321.37, 321.39, 321.41, 321.43, and 321.45 relating to mutuel tickets and vouchers, without changes to the proposed text as published in the January 5, 2001 issue of the Texas Register (26 TexReg 23) and will not be republished. The new rules define new terminology, delineate reporting requirements, describe the duties of licensees and clarify the procedures and requirements for issuing, canceling, and cashing mutual tickets or vouchers.

The Texas Racing Commission adopts these new sections in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and the Government Code §2001.039. After review by the Commission and meetings with the licensed associations, totalisator companies and industry related organizations, the agency determined that there was a significant need to adopt a new Chapter 321. It was determined that a complete replacement of Chapter 321 would be beneficial to both the agency and the public. The repeal of the old Chapter 321 is also adopted elsewhere in this issue of the Texas Register . The new rules will ensure strict enforcement of pari-mutuel wagering, protect patrons and provide rules which are consistent with current terminology.

No comments where received regarding the adoption of these new sections.

The Texas Racing Commission adopts new §§321.101, 321.103, 321.105, and 321.107 relating to facilities and equipment; §§321.121, 321.123, 321.125, and 321.127, relating to general management requirements; and §§321.131, 321.133, 321.135, 321.137, 321.139, 321.141, and 321.143, relating to reporting and log requirements. Section 321.131 is adopted with changes to the proposed text published in the January 5, 2001 issue of the Texas Register (26 TexReg 27). Sections 321.101, 321.103, 321.105, 321.107, 321.121, 321.123, 321.125, 321.127, 321.133, 321.135, 321.137, 321.139, 321.141, and 321.143, are adopted without changes and will not be republished.

The new rules require the totalisator companies to maintain certain hardware and software capabilities for the protection of the pari-mutuel wagering system. The rules also delineate the duties of totalisator company employees, specify network requirements, and require the totalisator companies to maintain certain reports and logs to ensure the proper operation of the totalisator system.

The Texas Racing Commission adopted these new sections in accordance with the requirements of Chapter 1275, Acts of the 75th Legislature, 1997, Section 55 and the Government Code §2001.039.

As a result of the Commission's review and meetings with the licensed associations, totalisator companies and industry related organizations, it was determined that a complete replacement of Chapter 321 would be beneficial to both the agency and the public. The repeal of the old Chapter 321 is also adopted elsewhere in this Texas Register issue.

No comments were received regarding the adoption of these new sections.

The Texas Racing Commission adopts new §§321.201, 321.203, 321.205, 321.207, 321.209, 321.211, 321.213, 321.215, and 321.217, relating to the regulation of live wagering; and §§321.301-321.318, relating to distribution of pari-mutuel pools without changes to the proposed text published in the January 5, 2001 issue of the Texas Register (26 TexReg 35) and the sections will not be republished.

The new rules authorize the stewards and racing judges to correct posting errors, determine betting interests, and issue "stop betting" commands. The rules also establish the types of wagering pools permitted and the rules for distributing those pools under various scenarios. The new rules are necessary to ensure that pari-mutuel wagering will be strictly regulated, the patrons will be protected, and the rules will be consistent with current technology.

No comments were received regarding the adoption of these new rules.

The Texas Racing Commission adopts new §§321.401, 321.403, 321.405, 321.407, 321.409, 321.411, 321.413, 321.415, 321.417, 321.419, and 321.421, relating to general provisions for simulcast wagering; §§321.451, 321.453, 321.455, 321.457, 321.459, and 321.461, relating to common pool wagering; and §§321.501, 321.503, 321.505, and §321.509 relating to simulcasting at horse racetracks with and without changes to the proposed text published in the January 5, 2001 issue of the Texas Register (26 TexReg 47) and the sections will not be republished. The Commission also adopts § 321.507 with changes. The changes from the proposed text are described below.

The new rules set forth the association requirements for receiving and sending simulcast signals, specify the duties and responsibilities of the association's mutuel and totalisator employees, and clarify the procedures for emergencies and for establishing and distributing common pools. The new rules also require the associations to negotiate with horsemen in all simulcasting matters and establish procedures for the allocation of purses and Texas-bred funds.

The adoption also incorporates a policy change to permit a non-profit county fair racetrack to offer simulcast races for wagering at times other than when the track is offering live racing. This change, in §321.507, was necessary in order to delete language previously proposed which permitted other racetracks to approve or disapprove a Class 3 track's simulcasting request to ensure the constitutionality of the rule. In another change to the rule as proposed, the Commission incorporated ad additional restriction that requires a history of at least 25 years of live racing as a prerequisite to Class 3 and 4 simulcasting. Because Gillespie County Fair is the state's only Class 3 racetrack, this new restriction effectively limits the expanded simulcasting authority to that track alone.

These new rules will ensure that pari-mutuel wagering will be strictly regulated, the patrons will be protected, the rules will be consistent with the current technology, non-profit fair racetracks will have increased viability, wagering opportunities for Texas patrons will increase, purse payouts to the owners and trainers of horses racing at the affected Class 3 or 4 racetracks will increase, revenue for the Texas-bred incentive programs will increase, the distribution of the simulcast races conducted at other Texas racetracks will increase, and funds generated from wagering for the use of the owners, trainers, and breeders of race animals will be distributed fairly and accurately.

No comments were received regarding the adoption of some of these rules with the exception of §321.507. Written comments were received from state officials in support of the new rule. Oral testimony was received by the Commission at its February 27, 2001 meeting. This testimony included a representative from Retama Park who suggested a modification to the rule which would reduce the required management experience from five years to three years. This change was accepted by the Commission and incorporated into the rule as adopted. Oral testimony also included a representative from the Gillespie County Fairgrounds who reiterated its desire for an expeditious enactment of this rule.