TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 7. GAS UTILITIES DIVISION

Subchapter B. SUBSTANTIVE RULES

16 TAC §7.70, §7.81

The Railroad Commission of Texas adopts amendments to §7.70, relating to general and definitions, and §7.81, relating to safety regulations adopted, without changes to the versions published in the April 5, 2002, issue of the Texas Register (27 TexReg 2668). The amendments adopt by reference some recent amendments issued by the United States Department of Transportation (USDOT) in 49 Code of Federal Regulations (CFR) Part 195 concerning controlling corrosion on hazardous liquid and carbon dioxide pipelines; pipeline integrity management in high consequence areas (repair criteria); hazardous liquids accident reporting; and pipeline integrity management in high consequence areas (hazardous liquid operators with less than 500 miles of pipeline).

The date stated in §7.70 and §7.81 is changed to the new date of March 21, 2002, the date on which the Commission adopts by reference the federal regulations in 49 CFR Part 195.

USDOT's Amendment No. 195-73, published at 66 Federal Register (FR) 66994, changed some of the corrosion control standards for hazardous liquid and carbon dioxide pipelines. The changes were based on a review of the adequacy of the prior standards compared to similar standards for gas pipelines and acceptable safety practices. The changes were intended to improve the clarity and effectiveness of the standards and to reduce the potential for pipeline accidents due to corrosion.

USDOT's Amendment No. 195-75, published at 67 FR 831, changed the reporting requirements for hazardous liquid pipeline accidents. The rule lowered the release reporting threshold from 50 barrels to a new threshold of five gallons, and changed the accident report form. The changes were necessary because the previous reporting threshold and report form did not yield sufficient information for effective safety analysis. The final rule also changed the "bodily harm" criteria for accident reporting to conform to the gas pipeline reporting requirements. This change was necessary to harmonize reporting by hazardous liquid and gas pipeline operators. This amendment was corrected at 67 FR 6436; the effective date was inadvertently published as January 1, 2002, and the correct date should have been published as February 7, 2002.

Amendment No. 195-74, published at 67 FR 1650, finalized repair provisions for hazardous liquid pipelines. These provisions were initially proposed in a previous rulemaking action which addressed requirements for pipeline integrity management programs in high consequence areas for operators owning or operating 500 or more miles of hazardous liquid or carbon dioxide pipeline (Integrity Management rule). In the Integrity Management rule, USDOT requested comment on the repair and mitigation provisions, because the provisions were substantially modified from those originally proposed in the notice of proposed rulemaking. The final rule also made several nonsubstantive corrections and clarifications to other provisions of the Integrity Management rule.

Amendment No. 195-76, published at 67 FR 2136, covered the transportation of hazardous liquids by pipeline and required operators with 500 or more miles of regulated pipelines to establish a program for managing the integrity of pipelines that affect high consequence areas. The regulations require continual assessment and evaluation of pipeline integrity through inspection or testing, data integration and analysis, and follow- up remedial, preventive, and mitigative actions. The final rule in Amendment No. 195-76 extended those regulations to operators with less than 500 miles of regulated pipelines. USDOT took this action because safety recommendations, statutory mandates, and accident analyses indicated that coordinated risk control measures were needed for public safety and environmental protection in addition to compliance with traditional safety standards. According to USDOT, broadening the coverage of the existing regulations will further enhance the protection of high consequence areas against the risk of pipeline failures.

The Commission received no comments on the proposal.

The amendments are adopted under Texas Utilities Code §121.201, which authorizes the Commission to adopt rules and safety standards for the transportation of gas and for gas pipeline facilities, and under the Texas Natural Resources Code, §117.001, which authorizes the Commission to regulate the pipeline transportation of hazardous liquids and carbon dioxide and facilities related thereto under, and to take any other requisite action in accordance with, the Pipeline Safety Act, 49 United States Code §60101.

Texas Utilities Code §121.201 and Texas Natural Resources Code §117.001 are affected by the adopted amendments.

Issued in Austin, Texas, on May 9, 2002.

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 May 9, 2002.

TRD-200202867

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Effective date: May 29, 2002

Proposal publication date: April 5, 2002

For further information, please call: (512) 475-1295


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 68. ARCHITECTURAL BARRIERS

16 TAC §68.80

The Texas Department of Licensing and Regulation (the Department) adopts amendments to §68.80, concerning Architectural Barriers program fees. Section 68.80 is adopted with changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2174). Said rule amendments are adopted to be effective immediately, i.e. on May 7, 2002, pursuant to Texas Government Code §2001.036, which provides for the expedited adoption of administrative rules when necessary due to an imminent peril to the public health, safety, or welfare.

The Department finds that an imminent peril to the public welfare does exist, and does necessitate the expedited adoption of these rule amendments. If these rule amendments are not adopted with immediate effect, the Department will be unable to collect fees associated with the Architectural Barriers program, because its current fee rules, adopted on an emergency basis, will expire on May 6, 2002. The Department finds that an inability to collect fees would have a negative impact on the public welfare, due to the current economic conditions and the projected revenue shortfalls for the State of Texas. Second, the Department finds that the public welfare would suffer due to the Department's inability to fulfill its statutory obligation of collecting fees to cover its costs, as stated in the Appropriations Act, Senate Bill 1, enacted by the 77th Texas Legislature in 2001. Third, the Department finds that if it is unable to collect fees, it will be unable to effectively implement the provisions of Senate Bill 484, enacted by the 77th Texas Legislature.

The Department drafted and distributed the proposed rule amendments to persons internal and external to the agency. The proposed rule amendments were presented to the members of the Architectural Barriers Advisory Committee at a meeting held on March 1, 2002, and the members were encouraged to submit written comments. The Department has received written comments for and against the proposed rule amendments, from the Advisory Committee members and otherwise.

Comments were received from five members of the Architectural Barriers Advisory Committee, indicating their agreement with the proposed rule amendment establishing fees for registration, renewal, examination, and other fees associated with the Registered Accessibility Specialists (RAS). The Department agrees with these comments. The amendments were necessary to implement Senate Bill 484 which was enacted by the 77th Legislature.

Comments were received from five members of the Architectural Barriers Advisory Committee, indicating their agreement with the proposed deletion of the range of Late Submittal Fees, and their replacement with a flat Late Filing Fee of $200. While the Department agrees with these comments, the Department is withdrawing this proposed rule change for further study. The Department has determined that such a change, at this time, would result in fiscal and procedural difficulties. The proposed change may be addressed in future rule amendments.

Comments were received from three members of the Architectural Barriers Advisory Committee, indicating their agreement with the proposed deletion of the Variance Appeal Fee. While the Department agrees with these comments, the Department is withdrawing this proposed rule change for further study. The Department has determined that such a change, at this time, would result in fiscal and procedural difficulties. The proposed change may be addressed in future rule amendments.

Comments were received from two members of the Architectural Barriers Advisory Committee, indicating their disagreement with the proposed deletion of the Variance Appeal Fee for various reasons including the cost recovery for the Department and potential abuse of the appeal process. While the Department may disagree with these comments to some extent, the Department is withdrawing this proposed rule change for further study. The Department has determined that such a change, at this time, would result in fiscal and procedural difficulties. The proposed change may be addressed in future rule amendments.

The Department received one comment from a Registered Accessibility Specialist that suggested changes to §68.80(c). The Department has not proposed changes to §68.80(c), and therefore, the comment is not appropriate for consideration at this time. The issue raised may be addressed in future rule amendments.

The amendments should help the Department increase the level of accessibility in new and renovated buildings and facilities in the state. It will also assist with ensuring a fair and competitive business environment for the regulated industry. In addition to cleanup of rules, the amendments are necessary to implement Senate Bill 484 which was enacted by the 77th Legislature and required rules to be adopted by January 1, 2002. The amendments to §68.80 were previously adopted on an emergency basis and published in the November 23, 2001 issue of the Texas Register (26 TexReg 9475).

The amendments to §68.80 establish application fees for a Certificate of Registration as a Registered Accessibility Specialist (RAS) at $200 for a single endorsement and $300 for a dual endorsement; renewal fees for registration at $150 for a single endorsement and $250 for a dual endorsement; a $100 fee for the RAS examination; a $25 fee for RAS certificate or wallet card replacements, and a $25 fee for registration or endorsement revisions. The Texas Accessibility Academy Fee is maintained at $150.

The proposal to delete the Variance Appeal Fee, as shown in the proposed text published on March 22, 2002, is being withdrawn for further study. In the rules adopted herein, the Variance Appeal Fee is maintained at $200. The proposal to delete the range of Late Submittal Fees and replace them with a flat Late Filing Fee of $200, as shown in the proposed text published on March 22, 2002, is being withdrawn for further study. In the rules adopted herein, the Late Submittal Fees will be maintained as a range of fees from $350 to $2,200, with the applicable fee for each project to be determined with reference to the estimated construction cost.

The amendments are adopted under Texas Civil Statutes, Article 9102, and Texas Occupations Code, §51.203, which authorize the Department to adopt rules as necessary to implement the Architectural Barriers program and other programs; and Texas Government Code §2001.036, which provides for the expedited adoption of administrative rules when necessary due to an imminent peril to the public welfare.

The statutory provisions affected by the adoption are those set forth in Texas Civil Statutes, Article 9102 and Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the adoption.

§68.80.Fees.

(a) Plan review and inspection fees collected by the department shall be determined by the estimated project cost, not including site acquisition, furnishings, or equipment, and assessed according to the fee schedule. In instances involving multiple facilities with identical drawings, but site adapted, and designed by the same individual or firm and bid as one package, the plan review fee shall be based on the total construction cost. However, separate inspection fees shall be required. The plan review fee and project filing fee must accompany the registration form and be submitted with the construction documents. The inspection fee and inspection filing fee must be paid and the department notified of point of contact within 30 days of completion of construction.

(b) Fee Schedule:

Figure: 16 TAC §68.80(b)

(c) When the estimated construction cost is less than $50,000 and a review, inspection or both are requested, a $200 plan review fee and a $200 inspection fee shall be paid.

(d) All fees must be paid prior to service being performed. All fees are non-refundable.

(e) When a project is registered with the department after completion of a subject project, the Late Submittal Fee shall apply in lieu of the review fee required by subsection (b) of this section.

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 May 6, 2002.

TRD-200202800

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: May 7, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 463-7348


Part 6. TEXAS MOTOR VEHICLE BOARD

Chapter 103. GENERAL RULES

16 TAC §103.14

The Texas Motor Vehicle Board adopts amendments to §103.14, concerning the procedures for manufacturers to establish or transfer ownership of franchised dealerships in Texas, without changes to the text, as published in the February 8, 2002, issue of the Texas Register (27 TexReg 853). The text will not be republished.

The amendments to §103.14 clarify that a manufacturer or distributor who possesses an interest or controls a dealership under Texas Motor Vehicle Commission Code §5.02C(d) (article 4413(36), Texas Revised Civil Statutes) may sell that dealership to a party or entity that the manufacturer or distributor controls, as long as that party or entity qualifies under 16 TAC §103.14(h) as a dealer development candidate. This amendment is necessary to eliminate confusion over whether manufacturers and distributors may purchase dealerships and sell them to third parties or entities through dealer development programs, which usually utilize joint ownership between the candidate and the manufacturer/distributor for some limited period of time. Such clarification is also necessary to expand the number of candidates eligible to purchase such dealerships.

General changes to the rule language in this section involve amending references in the current rule to §5.02(C) of the Texas Motor Vehicle Commission Code. In the most recent legislative session, a new subsection (e) was added to §5.02C. Therefore, the existing subsection numbers were adjusted to reflect this change.

No written comments were received from anyone regarding the proposal. Additionally, there were no oral comments provided on the proposal at the Board's public hearing regarding the proposed amendments held at its April 25, 2002 meeting.

The Board is authorized to adopt the proposed amendments to 16 TAC §103.14 under §3.06 of the Texas Motor Vehicle Commission Code, article 4413(36) and (36a), Texas Revised Civil Statutes, which provides the Board with the authority to adopt rules necessary and convenient to effectuate the provisions of the Code and to govern practice and procedure before the agency.

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 May 9, 2002.

TRD-200202864

Brett Bray

Director

Texas Motor Vehicle Board

Effective date: May 29, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 416-4899


Chapter 107. WARRANTY PERFORMANCE OBLIGATIONS

16 TAC §§107.6 - 107.8, 107.10

The Texas Motor Vehicle Board adopts amendments to §§107.6 - 107.8, and 107.10, Warranty Performance Obligations, as published in the March 1, 2002, issue of the Texas Register (27 TexReg 1423). Section 107.8 is adopted with changes. Sections 107.6, 107.7 and 107.10 are adopted without changes to the proposed text and will not be republished.

The amendments clarify the procedure for filing motions for rehearing related to contested case hearings conducted under §6.07 or §3.08 of the Texas Motor Vehicle Commission Code (Vernon's Texas Civil Statutes, Article 4413(36) and (36a)). The amendments also increase the useful life of motorized vehicles, thereby decreasing the reasonable allowance for use, and eliminate the 10% minimum reasonable allowance for use for non-motorized or towable recreational vehicles. Additionally the amendments delegate to the director authority to hear motions to suspend enforcement of final orders for complaints in which the director decided the motions for rehearing. There are also two minor, non-substantive, wording changes clarifying a sentence and correcting an outdated reference.

Changes specific to each section:

The amendment to §107.6 clarifies the wording to make it clear that complaints satisfying either §3.08 or §6.07 will be set for hearing, to include notification of the date, time, and place of the hearing.

The amendments to §107.7(5) and (7) direct all motions for rehearing involving a complaint to the same decision authority to avoid conflicting orders by different authorities.

The amendments to §107.8(4) increase the expected useful life of motorized vehicles to 120,000 miles to reflect the improvements in vehicle quality since the 100,000 mile standard was adopted in 1988. Additionally, the changes simplify the proof requirements for vehicles having a useful life other than 120,000 miles.

The amendment to §107.8(5) simplifies the proof requirements for non-motorized or towable recreational vehicles having a useful life other than 120 months and deletes the 10% minimum reasonable allowance for use in the interest of fairness to the consumer.

The addition of paragraph §107.8(5)(C) makes a change in the calculation of the reasonable allowance for use for non-motorized or towable recreational vehicles by eliminating the time the vehicle is out of service for repair because the vehicle is unavailable for the complainant's use. The Board agreed with the suggestion that only those days (as opposed to the number of months) that the vehicle is actually out of service for repair be deducted from the reasonable allowance for use calculation. The Board also agreed with the suggestion that the expected useful life of a vehicle be stated in days (as opposed to months) throughout §107.8(5).

The addition of §107.10(7) directs all motions filed subsequent to a decision on a motion for rehearing, including motions to suspend the enforcement of final orders for complaints, to the same authority that decided the motion for rehearing.

The rules will allow the public to have a clearer understanding of the process required to secure a review of decisions made by the Motor Vehicle Board on complaints related to motor vehicle warranty performance obligations. The public will also benefit by recovering a greater percentage of the purchase price of motorized and non-motorized vehicles or towable recreational vehicles due to the increase in the useful life of motorized vehicles and the elimination of the 10% minimum reasonable allowance for use of non-motorized vehicles or towable recreational vehicles.

Written comments were received from the Recreation Vehicle Industry Association (RVIA). RVIA suggested that only those days (as opposed to months) that the vehicle is actually out of service for repair be deducted from the reasonable allowance for use calculation in §107.8(5)(C) and that the expected useful life be stated in days (as opposed to months) throughout §107.8(5).

The amendments are adopted under the Texas Motor Vehicle Commission Code, §3.06 which provides that the Motor Vehicle Board with the authority to adopt rules as necessary and convenient to effectuate the provisions of the Act and to govern practice and procedure before the agency.

Texas Motor Vehicle Commission Code §3.08 and §6.07 are affected by the adopted amendments.

§107.8.Decisions.

Unless otherwise indicated, this section applies to decisions made pursuant to Texas Motor Vehicle Commission Code §6.07. Decisions shall give effect to the presumptions provided in the Texas Motor Vehicle Commission Code, §6.07(d), where applicable.

(1) If it is found that the manufacturer, distributor, or converter is not able to conform the vehicle to an applicable express warranty by repairing or correcting a defect in the complainant's vehicle which creates a serious safety hazard or substantially impairs the use or market value of the vehicle after a reasonable number of attempts, and that the affirmative defenses provided under the Texas Motor Vehicle Commission Code, §6.07(c), are not applicable, the Board shall order the manufacturer, distributor, or converter to replace the vehicle with a comparable vehicle, or accept the return of the vehicle from the owner and refund to the owner the full purchase price of the vehicle, less a reasonable allowance for the owner's use of the vehicle.

(2) In any decision in favor of the complainant, the Board will accommodate the complainant's request with respect to replacement or repurchase of the vehicle, to the extent possible.

(3) Where a refund of the purchase price of a vehicle is ordered, the purchase price shall be the amount of the total purchase price of the vehicle, but shall not include the amount of any interest or finance charge or insurance premiums. The award to the vehicle owner shall include reimbursement for the amount of the lemon law complaint filing fee paid by or on behalf of the vehicle owner. The refund shall be made payable to the vehicle owner and the lienholder, if any, as their interests require.

(4) There is a rebuttable presumption that a motor vehicle has a useful life of 120,000 miles. Except in cases where the preponderance of the evidence shows that the vehicle has a longer or shorter expected useful life than 120,000 miles, the reasonable allowance for the owner's use of the vehicle shall be that amount obtained by adding subparagraphs (A) and (B) of this paragraph.

(A) the product obtained by multiplying the purchase price of the vehicle, as defined in paragraph (3) of this section, by a fraction having as its denominator 120,000 and having as its numerator the number of miles that the vehicle traveled from the time of delivery to the owner to the first report of the defect or condition forming the basis of the repurchase order; and

(B) 50% of the product obtained by multiplying the purchase price by a fraction having as its denominator 120,000 and having as its numerator the number of miles that the vehicle traveled after the first report of the defect or condition forming the basis of the repurchase order. The number of miles during the period covered in this paragraph shall be determined from the date of the first report of the defect or condition forming the basis of the repurchase order through the date of the Board hearing.

(5) There is a rebuttable presumption that the useful life of a towable recreational vehicle is 3,650 days (10 years). Except in cases where preponderance of the evidence shows that the vehicle has a longer or shorter expected useful life than 3,650 days (10 years), the reasonable allowance for the owner's use of the towable recreational vehicle shall be that amount obtained by adding subparagraphs (A) and (B) of this paragraph.

(A) The product obtained by multiplying the purchase price of the towable recreational vehicle, as defined in paragraph (3) of this section, by a fraction having as its denominator 3,650 days (10 years), except the denominator shall be 1,825 days (5 years), if the towable recreational vehicle is occupied on a full time basis, and having as its numerator the number of days from the time of delivery to the owner to the first report of the defect or condition forming the basis of the repurchase order.

(B) 50% of the product obtained by multiplying the purchase price by a fraction having as its denominator 3,650 days (10 years), except the denominator shall be 1,825 days (5 years), if the towable recreational vehicle is occupied on a full time basis, and having as its numerator the number of days of ownership after the first report of the defect or condition forming the basis of the repurchase order. The number of days during the period covered in this paragraph shall be determined from the date of the first report of the defect or condition forming the basis of the repurchase order through the date of the Board hearing.

(C) Any day or part of a day that the vehicle is out of service for repair will be deducted from the numerator in determining the reasonable allowance for use of a towable recreational vehicle in this subsection.

(6) Except in cases involving unusual and extenuating circumstances, supported by a preponderance of the evidence, where refund of the purchase price of a leased vehicle is ordered, the purchase price shall be allocated and paid to the lessee and the lessor, respectively as follows.

(A) The lessee shall receive the total of:

(i) all lease payments previously paid by him to the lessor under the terms of the lease; and

(ii) all sums previously paid by him to the lessor in connection with the entering into the lease agreement, including, but not limited to, any capitalized cost reduction, down payment, trade-in, or similar cost, plus sales tax, license and registration fees, and other documentary fees, if applicable.

(B) The lessor shall receive the total of:

(i) the actual price paid by the lessor for the vehicle, including tax, title, license, and documentary fees, if paid by lessor, and as evidenced in a bill of sale, bank draft demand, tax collector's receipt, or similar instrument; plus

(ii) an additional 5.0% of such purchase price plus any amount or fee, if any, paid by lessor to secure the lease or interest in the lease;

(iii) provided, however, that a credit, reflecting all of the payments made by the lessee, shall be deducted from the actual purchase price which the manufacturer, converter, or distributor is required to pay the lessor, as specified in clauses (i) and (ii) of this subparagraph.

(C) When the Board orders a manufacturer, converter, or distributor to refund the purchase price in a lease vehicle transaction, the vehicle shall be returned to the manufacturer, converter or distributor with clear title upon payment of the sums indicated in subparagraphs (A) and (B) of this paragraph. The lessor shall transfer title of the vehicle to the manufacturer, converter, or distributor, as necessary in order to effectuate the lessee's rights under this rule. In addition, the lease shall be terminated without any penalty to the lessee.

(D) Refunds shall be made to the lessee, lessor, and any lienholders as their interest may appear. The refund to the lessee under subparagraph (A) of this paragraph shall be reduced by a reasonable allowance for the lessee's use of the vehicle. A reasonable allowance for use shall be computed according to the formula in paragraph (4) or (5) of this section, using the amount in subparagraph (B)(i) of this paragraph as the applicable purchase price.

(7) In any award in favor of a complainant, the director may require the dealer involved to reimburse the complainant, manufacturer, converter, or distributor, for the cost of any items of options added to the vehicle but only to the extent that one or more of such items or options contributed to the defect that served as the basis for the order or repurchase or replacement. In no event shall this paragraph be interpreted to mean that a manufacturer, converter, or distributor, will be required to repurchase a vehicle due to a defect or condition that was solely caused by a dealer add-on item or option.

(8) If it is found by the Board that a complainant's vehicle does not qualify for replacement or repurchase, then the Board shall enter an order dismissing the complaint insofar as relief under the Texas Motor Vehicle Commission Code §6.07(c) is concerned. However, the Board may enter an order in any proceeding, where appropriate, requiring repair work to be performed or other action taken to obtain compliance with the manufacturer's, converter's, or distributor's, warranty obligations.

(9) If the vehicle is substantially damaged or there is an adverse change in its condition, beyond ordinary wear and tear, from the date of the hearing to the date of repurchase, and the parties are unable to agree on an amount of an allowance for such damage or condition, either party shall have the right to request reconsideration by the Board of the repurchase price contained in the final order.

(10) The Board will issue a written order in each Texas Motor Vehicle Commission Code §3.08(i) or §6.07 case in which a hearing is held and a copy of the order will be sent to all parties.

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 May 6, 2002.

TRD-200202795

Brett Bray

Director

Texas Motor Vehicle Board

Effective date: May 26, 2002

Proposal publication date: March 1, 2002

For further information, please call: (512) 416-4899


Part 8. TEXAS RACING COMMISSION

Chapter 307. PROCEEDINGS BEFORE THE COMMISSION

Subchapter A. GENERAL PROVISIONS

16 TAC §307.7

The Texas Racing Commission adopts an amendment to §307.7, relating to ejection and exclusion, without changes to the proposed text as published in the March 8, 2002, issue of the Texas Register (27 TexReg 1626) and will not be republished.

The amendment establishes a deadline to request a hearing to contest an ejection or exclusion. The 20-day period was selected to be consistent with the administrative penalty provision in the Texas Racing Act. The amendment is necessary because the absence of a deadline required an interpretation of a "reasonable" period to request a hearing. With this deadline, the procedure to request a hearing will be finite.

No comments were received regarding this amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and Government Code, §2001.004, which requires the Commission to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.

The adoption 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 May 9, 2002.

TRD-200202891

Judith L. Kennison

General Counsel

Texas Racing Commission

Effective date: June 1, 2002

Proposal publication date: March 8, 2002

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


Chapter 309. RACETRACK LICENSES AND OPERATIONS

Subchapter D. GREYHOUND RACETRACKS

1. FACILITIES AND EQUIPMENT

16 TAC §309.313

The Texas Racing Commission adopts an amendment to §309.313, relating to kennel buildings, without changes to the proposed text as published in the March 8, 2002, issue of the Texas Register (27 TexReg 1627) and will not be republished.

The amendment lifts the maximum number of greyhounds permitted in a kennel building and, instead, leaves it to the discretion of the executive secretary to determine the appropriate number. The executive secretary would then make such a determination based on the input of commission veterinarians with regard to the health and safety of the greyhounds.

No comments were received regarding this amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The adoption 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 May 9, 2002.

TRD-200202892

Judith L. Kennison

General Counsel

Texas Racing Commission

Effective date: June 1, 2002

Proposal publication date: March 8, 2002

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


2. OPERATIONS

16 TAC §309.351

The Texas Racing Commission adopts an amendment to §309.351, related to kennel contracts, without changes to the proposed text as published in the March 8, 2002, issue of the Texas Register (27 TexReg 1628) and will not be republished.

This amendment establishes a deadline for associations to file their executed kennel contracts with the Commission.

Valley Race Park commented that the deadline will not fit its race schedule. The Commission's staff agreed that its suggested change will be incorporated in a future amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and §6.06, which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The adoption 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 May 9, 2002.

TRD-200202893

Judith L. Kennison

General Counsel

Texas Racing Commission

Effective date: June 1, 2002

Proposal publication date: March 8, 2002

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


Chapter 319. VETERINARY PRACTICES AND DRUG TESTING

Subchapter D. DRUG TESTING

1. GENERAL PROVISIONS

16 TAC §319.301

The Texas Racing Commission adopts an amendment to §319.301, related to drug testing of animals, without changes to the proposed text as published in the March 8, 2002, issue of the Texas Register (27 TexReg 1628) and will not be republished.

The amendment explicitly states that there is no entitlement to a purse from a race until drug testing on the race animals has been completed and the executive secretary has cleared the race for payment. This amendment is necessary because although it was clearly set forth in horse racing, there was only an implication in greyhound racing. This amendment makes it clear that a negative test result is a pre-condition to the awarding of purses for both species.

No comments were received regarding this amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; §3.021, which authorizes the Commission to regulate all aspects of greyhound and horse racing in Texas, and §3.16 which authorizes the Commission to adopt rules relating to split testing procedures.

The adoption 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 May 9, 2002.

TRD-200202894

Judith L. Kennison

General Counsel

Texas Racing Commission

Effective date: June 1, 2002

Proposal publication date: March 8, 2002

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


Chapter 323. DISCIPLINARY ACTION AND ENFORCEMENT

Subchapter C. CRIMINAL ENFORCEMENT

16 TAC §323.201

The Texas Racing Commission adopts an amendment to §323.201, related to the reporting of criminal activity and convictions, without changes to the proposed text as published in the March 8, 2002, issue of the Texas Register (27 TexReg 1629) and will not be republished.

The amendment deletes the requirement that licensees, Commission employees, and applicants report arrests to the Commission. The amendment also updates the reference to the current traffic statutes.

No comments were received regarding this amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and § 3.021, which authorizes the Commission to regulate all aspects of greyhound and horse racing in Texas.

The adoption 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 May 9, 2002.

TRD-200202895

Judith L. Kennison

General Counsel

Texas Racing Commission

Effective date: June 1, 2002

Proposal publication date: March 8, 2002

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