TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 3. OIL AND GAS DIVISION

16 TAC §3.1

The Railroad Commission of Texas (Commission) adopts amendments to §3.1, relating to Organization Report; Retention of Records; Notice Requirements, also known as Statewide Rule 1, without changes to the version published in the October 24, 2003, issue of the Texas Register (28 TexReg 9194).

The Commission adopts the amendments to §3.1 to implement House Bill (HB) 2021, 78th Legislature (2003), Regular Session, which became effective September 1, 2003. HB 2021 amends Texas Natural Resources Code, §91.142, by adding a new subsection (h), which requires an entity required to file a P-5 Organization Report or an affiliate of such an entity performing operations within the jurisdiction of the Commission that files for federal bankruptcy protection to give written notice to the Commission of the bankruptcy action by submitting the notice to the Commission's Office of General Counsel not later than the 30th day after the date of filing. The rule already required regulated entities to notify the Commission's Office of General Counsel of bankruptcy filings. HB 2021 expands the scope of that requirement to encompass affiliates of those entities and would make the rule-mandated notice requirement an express statutory requirement. The expected result is that operators or their attorneys will provide more timely notice to the Commission, which should allow the Commission to better protect the Oil Field Cleanup Fund in bankruptcy proceedings.

The Commission has added, in subsection (e), a definition of "affiliate" for the purpose of the section. The Commission defines "affiliate" as "an organization that is effectively controlled by another."

The Commission also adopts the review of §3.1 pursuant to Texas Government Code, §2001.039, as proposed in the August 8, 2003, issue of the Texas Register (28 TexReg 6309).

The Commission received two comments on the proposed amendments, one from an association, the Texas Pipeline Association (TPA), which represents nineteen member pipeline companies. TPA stated that it is common for pipeline companies to have two or more owners with a controlling entity. Typically, this business entity is a joint venture or partnership and it is that entity which holds the P-5 organization report. TPA is concerned that the proposed definition of "affiliate" may make the noncontrolling members of the joint venture or partnership "affiliates," and thereby create new duties for those parties. Further, TPA suggests that there does not appear to be any real necessity to have a rule defining "affiliate" because all entities over which the Commission has jurisdiction have the reporting obligation imposed by Texas Natural Resources Code, §91.142(h). If the Commission decides to define "affiliate," TPA suggests the following definition:

For purposes of this section, "affiliate" means an entity, organized under the laws of the United States of America, which effectively owns or controls, or is owned or controlled by, the organization that is required to file an organization report under subsection (a) of this section. For purposes of this definition, "control" when used with respect to any specified entity, means an ownership of 50% or greater.

TPA's concern is that the proposed "affiliate" definition might be misapplied in another context at some future time by another body and create obligations for members of a joint venture or partnership. TPA suggests as other alternative definition that the Commission's proposed definition expressly exclude these parties by adding the following language to the definition: "...but does not apply to organizations which are not related other than through joint ownership of an entity subject to the Commission's jurisdiction."

The Commission disagrees with TPA's comment and suggestion. It is manifest from the proposal that the definition is to be used only for this section and for no other purpose. A speculative misapplication of the definition does not warrant altering the definition as proposed. It is noteworthy that the definition is operative only in the situation in which an entity that does not have an active organization report is permitted to implement a compliance schedule or otherwise to undertake remedial work to correct violations of Commission rules. The Commission needs to be informed in the event such an entity files for federal bankruptcy protection. To allay the concern expressed by TPA, the Commission recites in this preamble its position that the subject definition does not apply to organizations that are not related other than through joint ownership of an entity subject to the Commission's jurisdiction.

The second comment, from TXU Gas Company (TXU Gas) and TXU Fuel Company (TXU Fuel) jointly, stated that these companies would support the alternative "affiliate" definition urged by TPA if the Commission decides to revise the proposed definition. Further, the companies recommend deletion of the second sentence of §3.1(e) because it is redundant; the requirement for the notice of bankruptcy to be in writing is already stated in the first sentence of the subsection.

The Commission disagrees with the comment from TXU Gas and TXU Fuel. The alternative definition is not warranted for the reasons stated in response to TPA's comment. The second sentence is not redundant. It serves as instruction to bankrupts of the proper addressee for all bankruptcy notices directed to the Commission.

The Commission adopts the amendments to §3.1 to implement House Bill (HB) 2021, 78th Legislature (2003), Regular Session, which amends Texas Natural Resources Code, §91.142; and pursuant to Texas Natural Resources Code, §§81.051 and 81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells and persons owning or operating pipelines in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under Commission jurisdiction; Texas Natural Resources Code, §§85.042, 85.202, 86.041, and 86.042, which require the Commission to adopt rules to control waste of oil and gas; Texas Natural Resources Code, §91.101, which authorizes the Commission to adopt rules to prevent pollution of surface or subsurface water from oil and gas operations; and Texas Natural Resources Code, §91.142, which authorizes the Commission to request information from organizations performing business under the jurisdiction of the Commission.

Statutory authority: Texas Natural Resources Code, §§81.051, 81.052, 85.042, 85.202, 86.041, 86.042, 91.101, and 91.142.

Cross-reference to statute: Texas Natural Resources Code, §§81.051, 81.052, 85.042, 85.202, 86.041, 86.042, 91.101, and 91.142.

Issued in Austin, Texas, on December 22, 2003.

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 December 22, 2003.

TRD-200308860

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 11, 2004

Proposal publication date: October 24, 2003

For further information, please call: (512) 463-8824


Chapter 7. GAS SERVICES DIVISION

Subchapter C. RECORDS AND REPORTS; TARIFFS; GAS UTILITY TAX

16 TAC §7.310

The Railroad Commission of Texas adopts amendments to §7.310, relating to System of Accounts, which applies to gas utilities, with changes to the proposed version published in the October 10, 2003, issue of the Texas Register (28 TexReg 8736). The current rule requires certain gas utilities to use the National Association of Regulatory Utility Commissioners' (NARUC) Uniform System of Accounts (USOA) for all operating and reporting purposes. The amendments require certain gas utilities to use the Federal Energy Regulatory Commission's (FERC) Uniform System of Accounts (USOA).

The only change to §7.310, as adopted, is the elimination of references to specific subdivisions of §7.115, relating to Definitions. Removing the references to specific subdivision designations for the definitions of specific terms will mean that future amendments to §7.115 will not require amendments to this rule.

As adopted, subsection (a) requires gas utilities and related operations to use the FERC USOA. However, this requirement does not apply to gas-gathering utilities, as defined in §7.115 of this title, relating to Definitions.

Under subsection (b), a gas utility is permitted to use a different system of account numbers than those prescribed by the FERC USOA if the utility maintains a readily available cross-reference between its account numbers and the prescribed FERC account numbers. The contents of each account, however, must conform to the account definitions set forth in the USOA.

Subsection (c) addresses the transition from the NARUC USOA to the FERC USOA. This subsection requires a utility currently using the NARUC system to maintain a cross-reference system between the NARUC and FERC systems for calendar year 2003 reporting purposes. Further, subsection (c) requires each utility covered under this provision to transition to the FERC system by January 1, 2004, or request an extension as provided by subsection (c).

The NARUC USOA is outdated; it has not been updated since 1976. Continued maintenance of the NARUC USOA for gas utilities would involve extensive use of resources. The FERC has developed and maintains a System of Accounts for interstate gas pipelines that could be used for Texas intrastate pipelines and local gas distribution companies. By way of comparison, the NARUC System of Accounts is outdated in that it lacks the level of detail found in the FERC USOA regarding accounts and sub-accounts for the reporting of natural gas storage activities, a reporting standard that has been followed widely by gas utilities under the FERC USOA. To comply with the NARUC reporting standards, large gas utilities generally must maintain a set of books and input data into a separate computer program, neither of which tracks the additional information required under the FERC accounts. Thus, a gas utility must devote resources not only to the separately administered NARUC accounts, but also to the management of the reporting variations between the NARUC and FERC accounting systems. It follows that the costs of maintaining the outdated NARUC system are difficult to justify in an industry whose primary market participants follow the up-to-date, more comprehensive FERC reporting system. Further, adoption of the FERC system will also enable the Commission's auditors to conduct more efficient audits of gas utilities' rates, records and billing systems. The transition away from the NARUC system will eliminate the labor associated with analyzing a multi-jurisdictional (gas) utility's separately maintained NARUC data and reconciling it with the utility's FERC data. This should likewise eliminate some of the potential for human error involved in the conversion process between NARUC and FERC.

The Commission expects that the amendments will reduce costs for regulated gas utilities, because the labor, materials, and expenses incurred by utilities to comply with the outdated NARUC system will be eliminated. Further, improved reporting efficiency and better accounting will result from the institution of the FERC system, which allows utilities to report using a single, current, comprehensive set of data. Multi-jurisdictional utilities currently reporting under FERC standards outside of Texas and under NARUC standards in Texas will see reduced costs and better accounting, as the reconciliation of the FERC and NARUC accounts will no longer be necessary.

Additionally, to maintain consistent accounting between the states, the transition to the FERC USOA is necessary. Consistent accounting between the states is important because utility mergers have created an increase in multi-state gas utilities. Several gas utilities operating in Texas have utility operations in other states that require them to report under the FERC System of Accounts. The Commission is not aware of any gas utility having operations in Texas that operates in another state that requires reporting under the NARUC System of Accounts. Because Texas is one of the few remaining states that still requires gas utilities to report under the NARUC System of Accounts, these multi-jurisdictional gas utilities must bear and have borne the increased expense associated with reporting under both NARUC and FERC accounting systems. Accordingly, the transition to the FERC USOA in Texas will result in lower administrative and accounting costs for multi-jurisdictional utilities.

Having gas utilities report to the Commission on a uniform basis is vital to the Commission fulfilling its obligations as a regulator. The Texas Utilities Code recognizes this, as evidenced in §102.003, which authorizes the Commission to require a gas utility to report information relating to the gas utility and to establish the form for a report, and §102.101, under which each gas utility must keep and provide to the regulatory authority, in the manner and form prescribed by the Commission, uniform accounts of all business transacted by the gas utility, and which authorizes the Commission to prescribe the form of books, accounts, and records to be kept by a gas utility.

The Commission received one comment on the proposed amendments, not from a group or association. TXU Gas Company ("TXU Gas"), formerly known as TXU Gas Distribution and TXU Lone Star Pipeline, divisions of TXU Gas Company, and TXU Fuel Company ("TXU Fuel"), collectively referred to as "TXU," jointly filed comments in support of the proposed amendments to §7.310, with one recommended addition.

The comment noted that, as gas utilities subject to the Commission's jurisdiction, TXU Gas and TXU Fuel are required to maintain their books and records in accordance with the Commission's rules and are directly affected by the proposed amendments to §7.310.

TXU acknowledged that even though the change from the NARUC Uniform System of Accounts to the FERC Uniform System of Accounts will require some adjustment in accounting practices, the Texas gas utility industry is better served through the use of a system of accounts that is actively maintained by a regulatory agency than by a system of accounts that has not been updated for many years. NARUC has not revised its uniform system of accounts since 1976, even though the gas utility industry has undergone significant changes since that time. A system of accounts that has been revised to reflect industry changes will benefit the Commission and gas utilities. For example, the development of transportation-only pipelines has created a need for accounting for transportation imbalances and system operation volumes. Both of these are addressed by the FERC Uniform System of Accounts but not by the NARUC Uniform System of Accounts. TXU concluded that the Commission's proposed rule should be adopted.

TXU suggested one additional provision for consideration by the Commission. Because the FERC Uniform System of Accounts is primarily focused on interstate pipelines, there may be a need for some interpretation of the system of accounts to address intrastate pipeline and distribution system issues. Because Texas gas utilities are not subject to FERC jurisdiction, any requests to FERC staff for these interpretations may not receive timely consideration, if any consideration at all. Further, the FERC staff who may provide an interpretation, won't necessarily be familiar with the Texas gas utility industry. Therefore TXU suggested that the Commission add a new subsection (d) to §7.310 that authorizes the Commission's Gas Services Division Utility Audit Section staff to provide interpretations of the FERC Uniform System of Accounts. These interpretations could be relied upon by Texas gas utilities, but would have no impact on entities subject to FERC jurisdiction. According to TXU, staff interpretations of the NARUC Uniform System of Accounts have been available in the past on an informal basis. In the opinion of TXU, it would be better regulatory practice to expressly provide for such interpretations in the rule so that the Commission and Texas gas utilities could have a mechanism for dealing with interpretations.

TXU suggested the following language for the new subsection:

(d) A gas utility may submit any questions concerning an interpretation of the FERC USOA or the use of a particular account within the FERC USOA to the Audit Section of the Gas Services Division. A gas utility may rely upon a written response from the Audit Section of the Gas Services Division concerning an interpretation of the FERC USOA or the use of a particular account within the FERC USOA in maintaining its accounting books and records.

Because of the notice requirements in Texas Government Code, §2001.024, in fairness to other utilities that would not have seen TXU's comment, the Commission declines to adopt a new subsection that was not part of the proposal. With respect to the substance of TXU's comment, the Commission notes that the FERC USOA is an all-inclusive system of accounts. It covers all gas utility activities from production to burner tip dispositions. At the FERC website (www.ferc.gov/legal/ferc- regs/acct-matts/usofa-gas.asp) there are links designated as Accounting Rulemakings, Accounting Guidance, and Accounting Releases, in addition to the Uniform System of Accounts. The FERC USOA also has General Instruction No. 5, Submittal of Questions, which states, "To maintain uniformity of accounting, utilities shall submit questions of doubtful interpretation to the [Federal Energy Regulatory] Commission for consideration and decision."

If the Commission's Utility Audit Section were to provide interpretations of the FERC USOA, it could quickly result in possible differences brought about by various different corporate accounting mandates or preferences among the distribution and transmission utilities operating in Texas, making comparative analysis among Texas gas utilities less reliable. This could result in additional hardship and confusion by utilities that maintain both intrastate and interstate functions. Under these circumstances, an interpretation by the Commission audit staff could result in a intrastate utility that is under the corporate umbrella of an entity subject to FERC jurisdiction maintaining its books and records in a different manner that the parent company utilizing the same system of accounts. The Commission agrees with the comment that the Texas gas utility industry is better served through the use of a system of accounts that is actively maintained by a regulatory agency that has been revised to reflect industry changes.

The Commission prefers that Texas gas utilities use FERC's General Instruction No. 5 for all interpretive issues. The results would then be published by FERC on one of the above-cited links and all gas utilities would be expected to comply uniformly. This procedure will benefit Texas gas utilities, in that they will be able to use an established system for obtaining interpretations of the FERC system, and to the Commission, in that all Texas gas utilities will be using the same system and the same interpretations. The Commission will also be spared the expense of duplicating an existing system for seeking interpretations of the FERC USOA. Deviating from this system of accounts and its instructions would in the long run be a disservice to both the industry and the public interest in which the Commission regulates.

The Commission adopts the amendments under Texas Utilities Code, §101.002, which states the public interest inherent in the rates and services of gas utilities and establishes the comprehensive and adequate regulatory system for gas utilities to assure rates, operations, and services that are just and reasonable to the consumers and to the utilities; §102.003, which authorizes the Commission to require a gas utility to report information relating to the gas utility and to establish the form for a report; §102.101, under which each gas utility must keep and provide to the regulatory authority, in the manner and form prescribed by the Commission, uniform accounts of all business transacted by the gas utility, and which authorizes the Commission to prescribe the form of books, accounts, and records to be kept by a gas utility; and §104.001, which vests in the Commission all the authority and power of this state to ensure compliance with the obligations of gas utilities Texas Utilities Code, Title 3, Subtitle A.

Statutory authority: Texas Utilities Code, §§101.002, 102.003, 102.101, and 104.001.

Cross-reference to statute: Texas Utilities Code, §§101.002, 102.003, 102.101, and 104.001.

Issued in Austin, Texas, on December 22, 2003.

§7.310.System of Accounts.

(a) Except as provided in this section, each gas utility, as defined in §7.115 of this title (relating to Definitions), shall utilize the Federal Energy Regulatory Commission's (FERC) Uniform System of Accounts (USOA) prescribed for Natural Gas Companies subject to the Provisions of the Natural Gas Act (as amended from time to time) (FERC USOA) for all operating and reporting purposes. Gas-gathering utilities, as defined in §7.115 of this title (relating to Definitions), shall not be required to operate under the FERC USOA, but shall be required to report under those accounts for annual report and gas utility tax purposes pursuant to §7.301 of this title (relating to Annual Report) and §7.351 of this title (relating to Gas Utility Tax). The FERC Uniform System of Accounts shall be applicable to all gas utility and gas utility related operations regardless of location, except those gas-gathering utilities as defined in this chapter.

(b) As provided in General Instruction 3.C. of the FERC USOA, a gas utility may use a different system of account numbers than those prescribed by the FERC USOA if the gas utility maintains a readily available cross-reference between its account numbers and the prescribed account numbers. The contents of each account, however, must conform to the account definitions set forth in the USOA.

(c) Any utility currently using the NARUC USOA shall maintain a readily accessible cross-reference system between the NARUC USOA and the FERC USOA for calendar year 2003 reporting purposes. Every gas utility subject to this provision shall transition to the FERC Uniform System of Accounts not later than January 1, 2004. Any gas utility needing additional transition time may request an extension to the January 1, 2004, date by submitting a request in writing stating the reasons why an extension is needed and establishing a date for completion of the transition.

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 December 22, 2003.

TRD-200308861

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 11, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 463-8824


Chapter 20. ADMINISTRATION

Subchapter A. CONTRACTS AND PURCHASES

16 TAC §20.5

The Railroad Commission of Texas (Commission) adopts amendments to §20.5, relating to Historically Underutilized Businesses, without changes to the version published in the November 7, 2003, issue of the Texas Register (28 TexReg 9656). The rule adopts by reference the rules of the Texas Building and Procurement Commission (TBPC) in 1 Texas Administrative Code, §§111.11-111.28, relating to historically underutilized business program, and promotes full and equal business opportunity for all businesses in state contracting.

The Commission amends subsection (a)(1), (2), (7), (9), (10), (13), and (15) to incorporate TBPC's recent amendments to 1 Texas Administrative Code §§111.11, 111.12, 111.17, 111.19, 111.20, 111.23, and 111.25, which were effective May 5, 2003. The Commission also amends subsection (b) to reflect the correct title of a Commission division.

By changing the date of the TBPC rule which the Commission adopts by reference, the following changes will become part of the Commission's rules on HUBs:

TBPC's amendments to §111.11, relating to Policy and Purpose, expand its reference to apply to rule §111.28, relating to Historically Underutilized Business Program.

TBPC's amendments to §111.12, relating to Definitions, expand the definition of "subcontractor" and modify the definition of "size standards."

TBPC's amendments to §111.17, relating to Certification Process, include provisions for recognizing the HUB certification process of local governments and nonprofit organizations. Specifically, the amendments establish minimum standards for recognizing such programs and provide that programs will not be recognized if HUBs are charged participation fees. Last, the amendments include a provision allowing TBPC to terminate its agreement with a local government or nonprofit organization if it fails to meet the defined minimum standards.

TBPC's amendments to §111.19, relating to Recertification, extend the HUB status from a two-year certification period to a four-year certification period.

TBPC's amendments to §111.20, relating to Revocation, add provisions to allow TBPC to revoke the HUB certification of vendors barred from participating in state contracts in accordance with Texas Government Code, §2155.077.

TBPC's amendments to §111.23, relating to Graduation Procedures, refer to the North American Industry Classification System Codes instead of the Standard Industrial Classification codes.

TBPC's amendments to §111.25, relating to Memorandum of Understanding between the Texas Department of Economic Development and the Texas Building and Procurement Commission, include replacing the name General Services Commission with Texas Building and Procurement Commission.

The Commission received no comments on the proposed amendments.

The Commission adopts the amendments under Texas Government Code, §2161.003, which requires the Commission to adopt the Texas Building and Procurement Commission's rules under §2161.002 as the agency's own rules, and Texas Civil Statutes, Article 6447, which authorizes the Commissioners to make all rules necessary for their government and proceedings.

Statutory authority: Texas Government Code, §2161.003, and Chapters 2155, 2158, 2161, 2162, 2166, 2252, and 2254, and Texas Civil Statutes, Article 6447.

Cross-reference to statute: Texas Government Code, §2161.003, and Texas Civil Statutes, Article 6447.

Issued in Austin, Texas, on December 22, 2003.

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 December 22, 2003.

TRD-200308862

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 11, 2004

Proposal publication date: November 7, 2003

For further information, please call: (512) 463-8824


Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

Subchapter Q. SYSTEM BENEFIT FUND

16 TAC §25.453

The Public Utility Commission of Texas (commission) adopts amendments to §25.453, relating to Targeted Energy Efficiency Programs, without changes to the proposed text as published in the October 3, 2003, issue of the Texas Register (28 TexReg 8481). The Legislature did not allocate a portion of the System Benefit Fund for fiscal years 2004 and 2005 to targeted energy efficiency programs administered by the Texas Department of Housing and Community Affairs (TDHCA). Therefore, the amendments terminate TDHCA's responsibilities for developing and maintaining the low-income energy efficiency plan formerly required by §25.453 and retains only the reporting requirements for the current fiscal year. The amendments are adopted under Project Number 28149.

The commission received one written comment on the proposed amendments. CenterPoint Energy Houston Electric, LLC (CenterPoint Energy) filed the comment on November 3, 2003.

CenterPoint Energy noted that the proposed amendment requires that the final report from the TDHCA be filed April 1, 2004. CenterPoint Energy suggested that TDHCA's deadline be earlier in time--March 1, 2004--to give transmission and distribution utilities (TDU) an opportunity to incorporate the information in TDHCA's report into the TDUs' own energy efficiency reports.

Commission response

The commission declines to make the change CenterPoint Energy requested. Section 25.453(h)(1)(D), as it currently exists, requires TDHCA to file its final report "no later than April 1, 2003, and annually thereafter." The proposed amendments to §25.453 provide that the final report shall be due April 1, 2004, acknowledging the fact that, for the past three years, TDHCA's annual report has been due April 1. While CenterPoint Energy may consider it potentially advantageous to be apprised of TDHCA's report information before April 1, 2004, for the purposes of demonstrating the TDU's own compliance with other commission rules, TDHCA and the commission have an established modus operandi which calls for submission of TDHCA's annual report by April 1. CenterPoint Energy and other TDUs have complied with the energy efficiency reporting requirements for several years without necessarily having access to TDHCA's final report in advance of the TDUs' own report deadlines. Adjusting that deadline in the present rulemaking project to provide TDHCA less time to prepare its report would disrupt the working schedule TDHCA has developed in reliance on the April 1 deadline currently in effect. Such disruption to TDHCA's working schedule is unnecessary.

It should be noted that nothing in the rule prevents TDHCA from filing its final report in advance of the April 1, 2004, deadline. The commission will notify TDHCA of CenterPoint Energy's request that the final report be filed before April 1, 2004.

The amendments are adopted under Public Utility Regulatory Act (PURA), Texas Utilities Code (Vernon 1998, Supplement 2004) §14.002, which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, and specifically, PURA §39.903, which requires the commission to adopt rules regarding programs to assist low-income electric customers on the introduction of customer choice.

Cross References to Statutes: Public Utility Regulatory Act: §14.002 and §39.903.

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 December 22, 2003.

TRD-200308859

Rhonda G. Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: January 11, 2004

Proposal publication date: October 3, 2003

For further information, please call: (512) 936-7308


Part 8. TEXAS RACING COMMISSION

Chapter 309. RACETRACK LICENSES AND OPERATIONS

Subchapter A. RACETRACK LICENSES

16 TAC §309.2

The Texas Racing Commission adopts an amendment to §309.2, relating to the criteria for Class 1 racetrack licenses. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9025) and the amendment will not be republished.

The amendment is adopted to make conforming population criteria changes as required by the Sunset Commission for all state agencies. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission's rules will be applicable to the counties as the statute intended, keeping up with the population increases in those counties.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308752

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.3

The Texas Racing Commission adopts an amendment to §309.3, relating to the racetrack license application procedure. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9026) and the amendment will not be republished.

The amendment is adopted to establish criteria for the Commission to consider when deciding to open an application period for a racetrack license. In addition, the amendment conforms the rule to agency practice regarding the consideration of applications. The amendment also corrects typographical errors and clarifies the rule language. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the standards for the Commission's exercise of discretion in deciding to open an application for a racetrack license will be clear.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308753

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.4

The Texas Racing Commission adopts an amendment to §309.4, relating to the information required for a background investigation for a racetrack license. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9027) and the amendment will not be republished.

The amendment is adopted to conform the rule to agency practice regarding the time period for submitting fingerprints to the Texas Department of Public Safety. The amendment also corrects typographical errors and clarifies the rule language. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that fingerprint cards received by the Commission will be forwarded to the Department of Public Safety within 10 days and that Commission rules will be clearer and more easily understood by any person required to comply with the rules and will conform to agency practice.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §5.03 which requires an applicant for a license to submit fingerprints.

The amendment 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 December 19, 2003.

TRD-200308754

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.6

The Texas Racing Commission adopts an amendment to §309.6, relating to the required security for compliance during a racetrack license application. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9028) and the amendment will not be republished.

The amendment is adopted to establish a time frame for requiring a new racetrack licensee to post security for completing the racetrack facility in a timely manner. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment clarifies that within 10 days after the Commission's order issuing a racetrack's license becomes final and unappealable, the licensee must post security. The amendment assures that the Commission's rules will be clearer and more easily understood by any entity required to comply.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308769

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.7

The Texas Racing Commission adopts an amendment to §309.7, relating to the racetrack license application fees. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9029) and the amendment will not be republished.

The amendment is adopted to clarify when racetrack license application fees are due. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment clarifies the language regarding the racetrack license application fees.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308768

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.9

The Texas Racing Commission adopts an amendment to §309.9, relating to the denial, suspension and revocation of racetrack licenses. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9030) and the amendment will not be republished.

The amendment is adopted to correct typographical errors and conform the rule language to previous rule changes. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308767

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


Subchapter B. OPERATIONS OF RACETRACKS

1. GENERAL PROVISIONS

16 TAC §309.102

The Texas Racing Commission adopts an amendment to §309.102, relating to exemption or deferred compliance by a racetrack licensee. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9031) and the amendment will not be republished.

The amendment is adopted to clarify that a request by a racetrack licensee for an exemption or a request for deferred compliance be in writing to the Commission. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308766

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


2. FACILITIES AND EQUIPMENT

16 TAC §309.116

The Texas Racing Commission adopts an amendment to §309.116, relating to complaints regarding associations. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9032) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding notification of the executive secretary of a complaint regarding a violation of the Commission's rules or the Texas Racing Act. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308765

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.118

The Texas Racing Commission adopts an amendment to §309.118, relating to regulatory office space and equipment provided by the racetrack licensees. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9032) and the amendment will not be republished.

The amendment is adopted to clarify the responsibilities of a racetrack licensee regarding the provision of telecommunication services for regulatory and law enforcement personnel offices. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules. Under the current rules, the racetracks are required to provide telephone service and computer lines for regulatory personnel. The adopted amendment is not intended to require additional services or equipment, but rather to clarify the types of services and equipment that must be provided.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308764

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.119

The Texas Racing Commission adopts the repeal of §309.119, relating to the recreational facilities. The repeal is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9034) and the repeal will not be republished.

The repeal is adopted to delete the requirement that racetrack associations be required to provide recreational facilities for licensees working on association grounds. The repeal is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule does not continue to exist.

The repeal assures the appropriate level of regulation of racetracks.

No comments were received regarding the adoption of the repeal of the rule.

The repeal is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel racing; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The repeal 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 December 19, 2003.

TRD-200308785

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.121

The Texas Racing Commission adopts the repeal of §309.121, relating to eating facilities. The repeal is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9034) and the repeal will not be republished.

The repeal is adopted to delete the requirement that racetrack associations be required to provide eating facilities for licensees working on association grounds. The repeal is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for the adoption of the rule does not continue to exist.

The repeal assures the appropriate level of regulation.

No comments were received regarding the adoption of the repeal of the rule.

The repeal is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel racing; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The repeal 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 December 19, 2003.

TRD-200308784

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.125

The Texas Racing Commission adopts an amendment to §309.125, relating to photofinish equipment. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9035) and the amendment will not be republished.

The amendment is adopted to authorize the executive secretary to require the calibration of the photofinish device. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308783

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.127

The Texas Racing Commission adopts an amendment to §309.127, relating to the maintenance of negatives and videotapes. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9035) and the amendment will not be republished.

The amendment is adopted to delete the requirement of the automatic delivery of the videotape to the Commission for a race where injury or death occurs for a race animal or jockey and conforms the rule to agency practice. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any person required to comply with the rules and will conform to agency practice.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses;§6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308782

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.129

The Texas Racing Commission adopts an amendment to §309.129, relating to automatic banking machines. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9036) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding the vendor contract being available and subject to inspection by the executive secretary. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §11.04 which authorizes the Commission to adopt rules providing for the use of automatic banking machines.

The amendment 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 December 19, 2003.

TRD-200308786

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.131

The Texas Racing Commission adopts an amendment to §309.131, relating to the breathalyzer machine. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9037) and the amendment will not be republished.

The amendment is adopted to authorize law enforcement personnel to use the breathalyzer machine. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that other law enforcement personnel will be able to use the breathalyzer machine, rather than just Commission staff.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.16 which authorizes the Commission to adopt rules relating to the drug testing of licensees; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308787

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


3. OPERATIONS

16 TAC §309.151

The Texas Racing Commission adopts an amendment to §309.151, relating to the change of ownership, board of directors, or management committee of an association. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9037) and the amendment will not be republished.

The amendment is adopted to correct typographical errors. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308788

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.153

The Texas Racing Commission adopts an amendment to §309.153, relating to general security. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9038) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding the executive secretary requiring proof of adequate liability insurance by the association. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308792

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.154

The Texas Racing Commission adopts an amendment to §309.154, relating to the stable or kennel area. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9038) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding authorization of an individual in the stable or kennel area. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel wagering; §3.16 which authorizes the Commission to adopt rules prohibiting the unlawful influencing of the outcome of a race; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §6.061 which authorizes the Commission to regulate inappropriate or unsafe conditions at pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308793

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.157

The Texas Racing Commission adopts an amendment to §309.157, relating to fire prevention. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9039) and the amendment will not be republished.

The amendment is adopted to clarify when a fire inspection must be performed at a racetrack and authorizes a racetrack to designate where open fires, for example, barbecue pits, may be on association grounds. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §6.061 which authorizes the Commission to regulate inappropriate or unsafe conditions at pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308794

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.160

The Texas Racing Commission adopts an amendment to §309.160, relating to vendors. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9040) and the amendment will not be republished.

The amendment is adopted to clarify the responsibilities of the Commission veterinarians regarding the sale of certain products on association grounds. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity or individual required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308795

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


Subchapter C. HORSE RACETRACKS

1. RACETRACKS

16 TAC §309.202

The Texas Racing Commission adopts an amendment to §309.202, relating to the track length. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9040) and the amendment will not be republished.

The amendment is adopted to correct a typographical error. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308796

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.206

The Texas Racing Commission adopts an amendment to §309.206, relating to racetrack rails. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9041) and the amendment will not be republished.

The amendment is adopted to correct a typographic error. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel wagering; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §6.061 which authorizes the Commission to regulate inappropriate or unsafe conditions at pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308797

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


2. FACILITIES FOR HORSES

16 TAC §309.251

The Texas Racing Commission adopts an amendment to §309.251, relating to the isolation area. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9041) and the amendment will not be republished.

The amendment is adopted to remove specific descriptions of requirements for isolation areas on association grounds and states instead that they must be in a location and equipped as approved by the executive secretary. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment will allow the racetracks to have some flexibility regarding certain facilities and assure that the Commission's level of regulation is appropriate.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308798

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.252

The Texas Racing Commission adopts an amendment to §309.252, relating to the treatment area. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9042) and the amendment will not be republished.

The amendment is adopted to remove specific descriptions of requirements for treatment areas on association grounds and states instead that they must be in a location and equipped as approved by the executive secretary. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment will allow the racetracks to have some flexibility regarding certain facilities and assure that the Commission's level of regulation is appropriate.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308800

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


3. FACILITIES FOR LICENSEES

16 TAC §309.281

The Texas Racing Commission adopts an amendment to §309.281, relating to jockeys. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9043) and the amendment will not be republished.

The amendment is adopted to clarify the rule language that the executive secretary may require a racetrack to provide other reasonable accommodations for jockeys. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308801

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


4. OPERATIONS

16 TAC §309.295

The Texas Racing Commission adopts an amendment to §309.295, relating to the condition book. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9043) and the amendment will not be republished.

The amendment is adopted to clarify the process for the Commission to approve the condition book. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §11.01 which authorizes the Commission to adopt rules to regulate wagering on greyhound races and horse races under the system known as pari-mutuel wagering.

The amendment 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 December 19, 2003.

TRD-200308802

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.296

The Texas Racing Commission adopts an amendment to §309.296, relating to the official program. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9044) and the amendment will not be republished.

The amendment is adopted to require the official program to contain the program betting number for the horses in a race. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that additional information will be readily available to the public to assist in wagering on a race.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks; §11.01 which authorizes the Commission to adopt rules to regulate wagering on greyhound races and horse races under the system known as pari-mutuel wagering.

The amendment 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 December 19, 2003.

TRD-200308803

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.297

The Texas Racing Commission adopts an amendment to §309.297, relating to purse accounts. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9045) and the amendment will not be republished.

The amendment is adopted to correct a typographical error. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308804

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


16 TAC §309.298

The Texas Racing Commission adopts an amendment to §309.298, relating to stakes and other prepayment races. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9045) and the amendment will not be republished.

The amendment is adopted to clarify the process for the racetrack to determine which horses remain eligible for a prepayment race and requires the racetrack to retain appropriate documentation. In addition, the amendment is adopted to provide additional clarification regarding the approval by the executive secretary of the race conditions and the nomination blank. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308805

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


Subchapter D. GREYHOUND RACETRACKS

1. FACILITIES AND EQUIPMENT

16 TAC §309.309

The Texas Racing Commission adopts an amendment to §309.309, relating to the lockout kennel. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9047) and the amendment will not be republished.

The amendment is adopted to delete the requirement that the lockout kennel have a one-way viewing window for patrons, as obsolete and conforms the rule to agency practice. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will conform to agency practice.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308806

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


2. OPERATIONS

16 TAC §309.355

The Texas Racing Commission adopts an amendment to §309.355, relating to the grading system. The amendment is adopted without changes to the proposal published in the October 17, 2003, issue of the Texas Register (28 TexReg 9047) and the amendment will not be republished.

The amendment is adopted to correct typographical errors. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by any entity required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308807

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 17, 2003

For further information, please call: (512) 490-4009


Chapter 311. OTHER LICENSES

Subchapter A. LICENSING PROVISIONS

1. OCCUPATIONAL LICENSES

16 TAC §311.1

The Texas Racing Commission adopts an amendment to §311.1, relating to when occupational licenses and training facility licenses expire. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8761) and the amendment will not be republished.

The amendment is adopted to clarify that an occupational license expires one year after the last day of the month in which the license was issued. The amendment states that a training facility license expires on December 31 of the year in which it was issued. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by a person required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to adopt rules for the licensing and regulation of races and workouts at racetracks that do not offer pari-mutuel wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; §7.03 which authorizes the Commission to issue occupational licenses; and §7.07 which authorizes the Commission to issue occupational licenses for up to 36 months.

The amendment 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 December 19, 2003.

TRD-200308809

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.2

The Texas Racing Commission adopts an amendment to §311.2, relating to the application procedure for occupational licenses. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8762) and the amendment will not be republished.

The amendment is adopted to conform the rule to the Texas Racing Act and agency practice regarding the denial of licenses and the issuance of conditional licenses. The amendment states that the stewards and racing judges may review and deny a license because grounds for denial exist under §311.6 or if the applicant or a member of the applicant's family or household holds a license and creates a conflict of interest. The amendment allows the stewards to issue a license subject to the applicant satisfying conditions, which reasonably relate to the applicant's qualifications to hold the license. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the rule conforms to agency practice and the Texas Racing Act.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §5.01 which authorizes the Commission to issue licenses and set conditions for licenses; and Article 7 which authorizes the Commission to require, set conditions and qualifications for, issue, and deny occupational licenses.

The amendment 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 December 19, 2003.

TRD-200308810

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.6

The Texas Racing Commission adopts an amendment to §311.6, relating to the denial, suspension and revocation of licenses. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8763) and the amendment will not be republished.

The amendment is adopted to make conforming changes to previous changes in other Commission rules and to clarify the rule language. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by a person required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; and §7.04 which authorizes the Commission to deny, suspend, and revoke occupational licenses.

The amendment 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 December 19, 2003.

TRD-200308811

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.7

The Texas Racing Commission adopts an amendment to §311.7, relating to the renewal of an occupational license. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8764) and the amendment will not be republished.

The amendment is adopted to make conforming changes to other changes in Commission rules and to clarify the rule language. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding the renewal of occupational licenses.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; and Article 7 which authorizes the Commission to require, set conditions and qualifications for, issue, and deny occupational licenses.

The amendment 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 December 19, 2003.

TRD-200308812

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


Subchapter B. SPECIFIC LICENSES

16 TAC §311.101

The Texas Racing Commission adopts an amendment to §311.101, relating to licenses of horse owners. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8764) and the amendment will not be republished.

The amendment is adopted to make conforming changes to other changes in Commission rules and to clarify the rule language. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding licenses for horse owners.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; and Article 7 which authorizes the Commission to require, set conditions and qualifications for, issue, and deny occupational licenses.

The amendment 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 December 19, 2003.

TRD-200308813

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.102

The Texas Racing Commission adopts an amendment to §311.102, relating to licenses for greyhound owners. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8766) and the amendment will not be republished.

The amendment is adopted to make conforming changes to other changes in Commission rules and to clarify the rule language when a greyhound owner must be licensed. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding licenses for greyhound owners.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; and Article 7 which authorizes the Commission to require, set conditions and qualifications for, issue, and deny occupational licenses.

The amendment 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 December 19, 2003.

TRD-200308814

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.104

The Texas Racing Commission adopts an amendment to §311.104, relating to licenses for trainers. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8767) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding the trainer's responsibilities regarding a dead horse or greyhound on association grounds. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding the trainer's responsibilities regarding a dead horse or greyhound on association grounds.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308815

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.106

The Texas Racing Commission adopts an amendment to §311.106, relating to licenses for veterinarians. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8768) and the amendment will not be republished.

The amendment is adopted to clarify the rule language regarding the requirements for obtaining a veterinarian's license. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding the requirements for obtaining a veterinarian's license.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §7.02 which authorizes the Commission to adopt various categories of licenses and qualifications for each category.

The amendment 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 December 19, 2003.

TRD-200308816

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.107

The Texas Racing Commission adopts an amendment to §311.107, relating to lease agreements. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8769) and the amendment will not be republished.

The amendment is adopted to conform the rule to current agency practice regarding the lease agreement for a race animal. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a more efficient license application process for owners.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §7.02 which authorizes the Commission to adopt various categories of licenses and qualifications for each category.

The amendment 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 December 19, 2003.

TRD-200308817

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.108

The Texas Racing Commission adopts an amendment to §311.108, relating to authorized agents. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8769) and the amendment will not be republished.

The amendment is adopted to remove the requirement that the agency appointment be notarized but requires signatures from both the principal(s) and the agent and conforms the rule to agency practice regarding the notarization of the agency appointment. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a streamlined process for appointing authorized agents.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §7.02 which authorizes the Commission to adopt various categories of licenses and qualifications for each category.

The amendment 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 December 19, 2003.

TRD-200308819

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


Subchapter C. RESPONSIBILITIES OF INDIVIDUALS

16 TAC §311.207

The Texas Racing Commission adopts an amendment to §311.207, relating to the inhumane treatment of animals. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8770) and the amendment will not be republished.

The amendment is adopted to clarify that an occupational licensee, regardless of whether the licensee is on association grounds, may not treat a race animal inhumanely. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission, has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission's rules will foster safe and humane treatment for race animals by licensees.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to regulate all aspects of greyhound and horse racing in this state, whether or not that racing involves pari-mutuel wagering.

The amendment 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 December 19, 2003.

TRD-200308820

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.210

The Texas Racing Commission adopts an amendment to §311.210, relating to an occupational licensee's conduct on association grounds. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8770) and the amendment will not be republished.

The amendment is adopted to clarify where a licensee may smoke or where open fires may be on association grounds. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures a clearer rule regarding where a licensee may smoke or where open fires may be on association grounds.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to adopt rules for the licensing and regulation of races and workouts at racetracks that do not offer pari-mutuel wagering; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308821

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.211

The Texas Racing Commission adopts an amendment to §311.211, relating to the prohibition of weapons on association grounds. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8771) and the amendment will not be republished.

The amendment is adopted to make a conforming change to a change in another agency's name. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rule will be clearer and more easily understood by a person required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to adopt rules for the licensing and regulation of races and workouts at racetracks that do not offer pari-mutuel wagering.

The amendment 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 December 19, 2003.

TRD-200308822

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


16 TAC §311.216

The Texas Racing Commission adopts an amendment to §311.216, relating to conduct in the stable area. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8771) and the amendment will not be republished.

The amendment is adopted to conform the rule to current law regarding vaccination requirements for dogs. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission's rules will be consistent with current law regarding vaccination of dogs.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to adopt rules for the licensing and regulation of races and workouts at racetracks that do not offer pari-mutuel wagering; §6.06 which authorizes the Commission to adopt rules on all matters relating to the operation of pari-mutuel racetracks.

The amendment 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 December 19, 2003.

TRD-200308823

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009


Subchapter D. ALCOHOL AND DRUG TESTING

1. DRUGS

16 TAC §311.301

The Texas Racing Commission adopts an amendment to §311.301, relating to the use and possession of prohibited substances. The amendment is adopted without changes to the proposal published in the October 10, 2003, issue of the Texas Register (28 TexReg 8772) and the amendment will not be republished.

The amendment is adopted to clarify the authority of the Commission and its employees regarding disciplinary action against a licensee who is taking a prescription medication. The amendment is adopted in conjunction with the agency's review of Chapters 309 and 311 in accordance with the requirements of Texas Government Code, §2001.039. The Texas Racing Commission has determined that the reason for adoption of the rule continues to exist.

The amendment assures that the Commission rules will be clearer and more easily understood by a person required to comply with the rules.

No comments were received regarding the adoption of the amendment.

The amendment is adopted under the Texas Civil Statutes, Article 179e, §3.02 which authorizes the Commission to adopt rules for conducting greyhound or horse racing in this State involving wagering; §3.021 which authorizes the Commission to adopt rules for the licensing and regulation of races and workouts at racetracks that do not offer pari-mutuel wagering; §3.16 which authorizes the Commission to adopt rules relating to drug testing of licensees.

The amendment 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 December 19, 2003.

TRD-200308825

Nicole Galwardi

General Counsel

Texas Racing Commission

Effective date: January 8, 2004

Proposal publication date: October 10, 2003

For further information, please call: (512) 490-4009