TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 1. PRACTICE AND PROCEDURE

Subchapter H. DECISION

16 TAC §1.144

The Railroad Commission of Texas adopts amendments to §1.144, relating to Oral Argument Before the Commission, without changes to the version published in the September 30, 2005, issue of the Texas Register (30 TexReg 6159). The Commission adopts the amendments to bring the Commission's practice and procedure rule concerning oral argument in line with the Railroad Commission Policy on Public Participation in Open Meetings, adopted on September 7, 2005.

The amendments add detail and specificity to the rule in order to inform and guide persons who wish to present oral argument before the Commission in open meeting. Changes in subsection (a) provide that, prior to the final disposition of any proceeding, any party may request oral argument before the Commission. This request must be made by separate pleading or as part of a party's exceptions, replies to exceptions, brief, reply brief, motion for rehearing, or reply to a motion for rehearing. A party may not orally request the opportunity to make oral argument at a Commission open meeting.

Subsection (b) provides that oral argument may be allowed at the discretion of the Commission. Failure of the Commission to grant a request for oral argument is deemed a denial of the request.

Subsection (c) provides that the Commission may request that parties to any proceeding present oral argument.

Subsection (d) states that if the Commission will hear oral argument, the Commission will determine the date, time, and order of the oral argument. The Commission may request that parties focus their arguments on particular issues in the case; determine the sequence in which parties will proceed, and which party, if any, may close; impose time limits on all speakers; limit or exclude unduly repetitious arguments and presentations; require that one representative present the information and position of closely aligned persons or entities; and set deadlines for filing additional information or briefs in the case.

Subsection (e) provides that, in order to ensure that persons needing special equipment or assistance are provided with the equipment or assistance, persons who have a special request concerning the presentation of comments or oral argument should contact the secretary of the Commission at least 48 hours prior to the start of the open meeting. However, failure to make such a request will not preclude a person from providing comment or oral argument. A special request includes presentation of video or audio recordings; use of audio or visual aids; and/or interpreters or other auxiliary aids, including accommodations for the disabled.

Subsection (f) provides that the Commission will accept unsolicited comments from elected officials when they are acting in their official capacities.

The Commission received no comments on the proposed amendments.

The Commission adopts the amendments under Texas Revised Civil Statutes, Article 6447, which authorizes the Commissioners to make all rules necessary for their government and proceedings; and Texas Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.

Statutory authority: Texas Revised Civil Statutes, Article 6447, and Texas Government Code, §2001.004.

Cross-reference to statute: Texas Revised Civil Statutes, Article 6447, and Texas Government Code, §2001.004.

Issued in Austin, Texas, on January 10, 2006.

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 January 10, 2006.

TRD-200600134

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 30, 2006

Proposal publication date: September 30, 2005

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


Chapter 3. OIL AND GAS DIVISION

16 TAC §3.16

The Railroad Commission of Texas adopts amendments to §3.16, relating to Log and Completion or Plugging Report, with one minor change to the version published in the October 14, 2005, issue of the Texas Register (30 TexReg 6541).

The Commission adopts the amendments pursuant to the provisions of Texas Natural Resources Code, §§91.551 - 91.556, relating to filing and availability of electric logs. The amendments are necessary to implement changes in Texas Natural Resources Code, §§91.551 - 91.554 and §91.556, made by House Bill (HB) 484, 79th Legislature, Regular Session (2005), effective September 1, 2005.

The amendments add new subsection (a) to §3.16, which provides definitions. The definitions of "basic electric log," "drilling operation," "operator," and "well" are consistent with definitions in Texas Natural Resources Code, §91.551, as amended by HB 484. Former subsection (a) is deleted, but its provisions, with some amendments, are adopted in new subsections (b) and (c). New subsection (b) requires that completion reports be filed within 30 days after the completion of a well or within 90 days after the date on which the drilling operation is completed, whichever is earlier. Amended completion reports must be filed within 30 days of any physical changes made to a well, such as any change in perforations, or openhole or casing records, and plugging reports must be filed for a well that is a dry hole within 30 days after the well is plugged.

New subsection (c) requires, subject to the confidentiality provisions of new subsection (d), that operators file basic electric logs not later than the 90th day after the date a drilling operation is completed. This is consistent with Texas Natural Resources Code, §91.552(a), as amended by HB 484. "Basic electric log" is defined in new subsection (a) as a density, sonic, or resistivity (except dip meter) log run over the entire wellbore. However, new subsection (c) provides that in the event a basic electric log as defined in new subsection (a) has not been run, subject to the Commission's approval, an operator shall file a lithology log or gamma ray log of the entire wellbore. In addition, new subsection (c) provides that in the event no log has been run over the entire wellbore, subject to the Commission's approval, an operator shall file the log which is the most nearly complete of the logs run.

Former subsection (b) is redesignated as subsection (d) and is amended to clarify that this subsection applies to requests for delayed filing of logs based on confidentiality and to clarify the time periods in which such requests must be made.

Former subsection (c) is redesignated as subsection (e) with amendments to clarify that this subsection applies to sanctions that may be imposed if an operator fails to file either a completion report or log as required by §3.16, as amended. New subsection (e) is consistent with current Commission policy.

The amendments are necessary to conform §3.16 to changes in Texas Natural Resources Code, §§91.551 - 91.554 and §91.556, made by HB 484. These amendments clarify the duty of operators to timely file completion and plugging reports and basic electric logs. Former subsection (a) of §3.16 required that a completion report be filed within 30 days after the completion of a well and that a basic electric log be attached to the completion report. However, former §3.16 contained no clear standard as to when a well is "completed," and this caused some operators to delay unreasonably the filing of completion reports and logs. This, in turn, resulted in some requests for delayed filing of logs based on confidentiality for periods of time beyond that contemplated by current §3.16.

Timely filing of completion reports and logs is deemed important to the accomplishment of the Commission's mission. Information in completion reports assists the Commission in making a determination that a well has been drilled, cased, cemented, and otherwise equipped in conformity with Commission rules to protect usable quality water. Completion information is also necessary to enable the Commission's Field Operations staff to determine the manner in which a well should be plugged or reworked to solve a particular wellbore problem that may pose a threat of pollution of usable quality water or other hazard to the public health and safety. Completion reports also provide test information required by Commission rules, are used to create a well record in the Commission's database, and provide information necessary for the setting of well allowables.

Logs filed by operators are used by Commission staff for multiple purposes, including, among others, new or proper field designations, discovery allowable determinations, two-factor allocation determinations, high cost gas determinations, determinations of formation characteristics relative to fluid injection or storage wells, and determinations as to whether wells have been properly cased and cemented. Logs filed with the Commission also provide information useful to the industry regulated by the Commission for purposes of reservoir engineering or geological assessment and provide a source of information potentially useful to the Commission in making determinations as to well density and well spacing in field rules and/or applications for exceptions to well density or well spacing requirements.

New subsection (b) of §3.16 clarifies that completion reports are required to be filed within 30 days after the completion of a well or within 90 days after the date on which the drilling operation is completed, whichever is earlier. New subsection (c) will require that, subject to a request for delayed filing based on confidentiality, basic electric logs be filed not later than the 90th day after the date on which a continuous effort to drill or deepen a wellbore has ended. The definition of "Basic electric log" in new subsection (a) is adopted because density, sonic, or resistivity (except dip meter) logs are the type of logs that provide the most useful information for the Commission's purposes. The intent of the amendments is that one of these types of logs be filed if such a log has been run. Lithology logs and gamma ray logs are less useful, but, subject to the Commission's approval, new subsection (c) will allow the filing of such logs in the event that no density, sonic, or resistivity log has been run.

The Commission received comments from one association, Texas Independent Producers & Royalty Owners Association ("TIPRO") and from one operator, XTO Energy ("XTO"). TIPRO first suggested that definitions of "operator," "well," and "drilling operation" in paragraphs (2) through (4) of proposed §3.16(a) be changed to conform to definitions of the same or similar terms in other Commission rules. The Commission adopts §3.16(a)(2) through (4) without change from the proposed version, because the definitions of "operator," "well," and "drilling operation" are the definitions adopted by the Legislature in Texas Natural Resources Code, §91.551(a), as amended by HB 484, effective September 1, 2005, relating to Subchapter M, Chapter 91, requirements for filing of logs associated with well completions.

TIPRO also suggested that proposed §3.16(b) be changed in order to clarify that amended completion and plugging reports must be filed within 30 days after the end of the work on a well bore. More particularly, TIPRO suggested that proposed §3.16(b) be changed to provide that amended completion reports must be filed within 30 days of any physical changes made to the well, such as perforations, casing strings, or open hole alterations. Although the portion of §3.16(b) relating to filing of amended completion reports, as proposed, did not change the corresponding provision of former §3.16(a), the Commission agrees that the new language suggested by TIPRO, with minor modification, clarifies §3.16(b) and does not materially change the corresponding requirements of former §3.16(a) or current Commission practice. The Commission adopts §3.16(b) with changes to incorporate TIPRO's suggested language, with a minor modification. The Commission has made a minor change to TIPRO's suggested language to make it consistent with current Commission practice regarding the filing of amended completion reports. As adopted, §3.16(b) provides that the operator of a well shall file an amended completion report within 30 days of any physical changes made to the well, such as any change in perforations, or openhole or casing records.

TIPRO further suggested that proposed §3.16(d) be changed to provide that an operator who fails to file timely a request for delayed filing of a log based on confidentiality may nonetheless request such delayed filing, subject to the Commission's approval and the right of the Commission to assess a late filing fee or to initiate penalty action prior to approval. The Commission declines to adopt this suggested change because Texas Natural Resources Code, §91.553, as amended by HB 484, effective September 1, 2005, does not permit it. Pursuant to §91.553(b), a request for delayed log filing for the initial one year confidentiality period must be filed not later than 90 days after a drilling operation is completed. Under §91.553(c), a request for delayed log filing for an additional two year confidentiality period must be made before the initial one year confidentiality period has expired. Under §91.553(d), a request for delayed log filing for a further two year confidentiality period in the case of a well submerged in state water must be filed before the expiration of the previous two year confidentiality period. Pursuant to §91.553(f), an operator who fails to timely file a request under §91.553(b), (c), or (d) must file the log with the Commission immediately after the conclusion of the period for filing the request. Accordingly, the Commission adopts §3.16 without changes.

XTO generally supported the proposed amendments, but suggested that the Commission consider extending confidentiality to logs filed to support applications for Texas severance tax incentive certification. The confidentiality concerns expressed by XTO may warrant further study, but they are beyond the scope of this rulemaking, which concerns required log filing associated with well completions. No notice has been provided that the Commission would consider adoption of rules relating to confidentiality of logs filed in support of applications for Texas severance tax incentive certification. Accordingly, the Commission adopts §3.16 without changes to address the concerns expressed by XTO.

The Commission adopts the amendments to §3.16 pursuant to Texas Natural Resources Code, §§91.551 - 91.556, relating to electric logs, and §§81.051 - 81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission. Texas Natural Resources Code, §§91.551 - 91.556, as amended by HB 484, effective September 1, 2005, authorize the Commission to require the filing of electric logs. In addition, Texas Natural Resources Code, §§85.201 - 85.202, require the Commission to adopt and enforce rules and orders for the conservation and prevention of waste of oil and gas, and specifically for drilling of wells, preserving a record of the drilling of wells, and requiring records to be kept and reports to be made. Texas Natural Resources Code, §§86.041 - 86.042, give the Commission broad discretion in administering the provisions of Chapter 86 of the Code, and authorize the Commission, generally, to adopt any rule or order necessary to effectuate the provisions and purposes of this Chapter. The Commission is required to adopt and enforce rules and orders to conserve and prevent the waste of gas, provide for drilling wells and preserving a record of them, requiring wells to be drilled and operated in a manner that prevents injury to adjoining property, and requiring records to be kept and reports to be made.

In addition, Texas Natural Resources Code, §§141.011 - 141.012, authorize the Commission to regulate the exploration, development, and production of geothermal energy and associated resources and to make and enforce rules associated therewith. Pursuant to Texas Water Code, §26.131, the Commission is solely responsible for the control and disposition of waste and the abatement and prevention of pollution of surface and subsurface water resulting from activities associated with the exploration, development, and production of oil or gas or geothermal resources. Pursuant to Texas Water Code, §§27.031 - 27.032 and §27.034, the Commission has authority to permit disposal wells to dispose of oil and gas waste, to require applicants for disposal well permits to furnish any information necessary to the discharge of the Commission's duties under Chapter 27, and to adopt rules required for the performance of the Commission's duties under this Chapter. Texas Natural Resources Code, §91.101, provides that to prevent the pollution of surface or subsurface water in the state, the Commission shall adopt and enforce rules relating to, among other things, the drilling of exploratory wells and oil and gas wells or any purpose in connection with them and the operation, abandonment, and proper plugging of wells subject to the jurisdiction of the Commission.

Texas Natural Resources Code, §§81.051, 81.052, 85.201, 85.202, 86.041, 86.042, 91.101, 91.551, 91.552. 91.553. 91.554. 91.555, 91.556, 141.011, and 141.012, and Texas Water Code, §§26.131, 27.031, 27.032, and 27.034, are affected by the adopted amendments.

Statutory Authority: Texas Natural Resources Code, §§81.051, 81.052, 85.201, 85.202, 86.041, 86.042, 91.101, 91.551, 91.552. 91.553. 91.554. 91.555, 91.556, 141.011, and 141.012, and Texas Water Code, §§26.131, 27.031, 27.032, and 27.034.

Cross-reference to statutes: Texas Natural Resources Code, §§81.051, 81.052, 85.201, 85.202, 86.041, 86.042, 91.101, 91.551, 91.552. 91.553. 91.554. 91.555, 91.556, 141.011, and 141.012, and Texas Water Code, §§26.131, 27.031, 27.032, and 27.034.

Issued in Austin, Texas, on January 10, 2006.

§3.16.Log and Completion or Plugging Report.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Basic electric log--A density, sonic, or resistivity (except dip meter) log run over the entire wellbore.

(2) Drilling operation--A continuous effort to drill or deepen a wellbore for which the commission has issued a permit.

(3) Operator--A person who assumes responsibility for the regulatory compliance of a well as shown by a form the person files with the commission and the commission approves.

(4) Well--A well drilled for any purpose related to exploration for or production or storage of oil or gas or geothermal resources, including a well drilled for injection of fluids to enhance hydrocarbon recovery, disposal of produced fluids, disposal of waste from exploration or production activity, or brine mining.

(b) Completion and plugging reports. The operator of a well shall file with the commission the appropriate completion report within 30 days after completion of the well or within 90 days after the date on which the drilling operation is completed, whichever is earlier. The operator of a well shall file with the Commission an amended completion report within 30 days of any physical changes made to the well, such as any change in perforations, or openhole or casing records. If the well is a dry hole, the operator shall file with the commission an appropriate plugging report within 30 days after the well is plugged.

(c) Basic electric logs. Except as otherwise provided in this section, not later than the 90th day after the date a drilling operation is completed, the operator shall file with the commission a legible and unaltered copy of a basic electric log, except that where a well is deepened, a legible and unaltered copy of a basic electric log shall be filed if such log is run over a deeper interval than the interval covered by a basic electric log for the well already on file with the commission. In the event a basic electric log, as defined in this section, has not been run, subject to the commission's approval, the operator shall file a lithology log or gamma ray log of the entire wellbore. In the event no log has been run over the entire wellbore, subject to the commission's approval, the operator shall file the log which is the most nearly complete of the logs run.

(d) Delayed filing based on confidentiality. Each log filed with the commission shall be considered public information and shall be available to the public during normal business hours. If the operator of a well desires a log to be confidential, on or before the 90th day after the date a drilling operation is completed, the operator must submit a written request for a delayed filing of the log. When filing such a request, the operator must retain the log and may delay filing such log for one year beginning from the date the drilling operation was completed. The operator of such well may request an additional filing delay of two years, provided the written request is filed prior to the expiration date of the initial confidentiality period. If a well is drilled on land submerged in state water, the operator may request an additional filing delay of two years so that a possible total delay of five years may be obtained. A request for the additional two year filing delay period must be in writing and be filed with the commission prior to the expiration of the first two year filing delay. Logs must be filed with the commission within 30 days after the expiration of the final confidentiality period, except that an operator who fails to timely file with the commission a written request under this subsection for an extension of the period of log confidentiality shall file the log with the commission immediately after the conclusion of the period for filing the request.

(e) Sanctions. If an operator fails to file a completion report or log in accordance with the provisions of this section, the commission may refuse to assign an allowable to a well, set the allowable for such well at zero, and/or initiate penalty action pursuant to the Texas Natural Resources Code, Title 3.

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 January 10, 2006.

TRD-200600135

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 30, 2006

Proposal publication date: October 14, 2005

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


Chapter 8. PIPELINE SAFETY REGULATIONS

Subchapter A. GENERAL REQUIREMENTS AND DEFINITIONS

16 TAC §8.1

The Commission adopts amendments to §8.1, relating to General Applicability and Standards, without changes from the November 11, 2005, issue of the Texas Register (30 TexReg 7337). Section 8.1(b) concerns minimum safety standards and adopts by reference the United States Department of Transportation's (USDOT) pipeline safety standards found in 49 U.S.C. §60101, et seq .; 49 Code of Federal Regulations (CFR) Part 191, Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports; 49 CFR Part 192, Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards; 49 CFR Part 193, Liquefied Natural Gas Facilities: Federal Safety Standards; 49 U.S.C. §60101, et seq .; 49 CFR Part 195, Transportation of Hazardous Liquids by Pipeline; and 49 CFR Part 199, Drug and Alcohol Testing. The rule previously adopted the federal pipeline safety standards as of September 14, 2004; the adopted amendment will show this date as July 1, 2005. The federal safety rule amendments adopted by reference are summarized in the following paragraphs.

Under the USDOT's new Pipeline and Hazardous Materials Safety Administration (PHMSA), in accordance with the Norman Y. Mineta Research and Special Programs Improvement Act which reorganized the Department's pipeline and hazardous materials safety programs into the new PHMSA, the amendments, published at 70 Federal Register (FR) 11135, revise all references to the former Research and Special Programs Administration (RSPA) in 49 CFR Parts 190 through 199 to reflect the creation of PHMSA. The final rule also updated the Office of Pipeline Safety's internet and mailing addresses, docket procedures, titles, section numbers, penalty consideration and cap adjustments, terminology, and other changes conforming Part 190 with the Pipeline Safety Improvement Act of 2002. The amendments also reflect the changed organizational posture of the agency and update the Part 190 enforcement procedures to reflect current public law. The final rule did not impose any new operating requirements on pipeline owners and operators. The final rule was effective March 8, 2005.

USDOT's Amendment Nos. 192-99 and 195-83, published at 70 FR 35041, corrects a final rule published by the Pipeline and Hazardous Materials Safety Administration (PHMSA) on May 19, 2005 (70 FR 28833). That final rule amended requirements for pipeline operators in 49 CFR Parts 192 and 195 to develop and implement public awareness programs and incorporate by reference the guidelines of the American Petroleum Institute (API) Recommended Practice (RP) 1162. The document was assigned the amendment numbers 192-100 and 195-84, which were already assigned to different amendments. The final rule corrects the amendment numbers and the language amending Part 192 so that it is consistent with Part 195. The effective date was June 20, 2005.

Amendment Nos. 192-101 and 195-85, published at 70 FR 28833, amend the requirements for pipeline operators to develop and implement public awareness (also known as public education) programs. The changes are part of PHMSA's Office of Pipeline Safety's broad pipeline communications initiative to promote pipeline safety. Promoting pipeline safety requires enhanced communications by pipeline operators with the public to increase public awareness of pipeline operations and safety issues. The amendments for developing and implementing public awareness programs address the requirements of the Pipeline Safety Improvement Act of 2002 and incorporate by reference the guidelines provided in API Recommended Practice 1162, "Public Awareness Programs for Pipeline Operators." The effective date for this final rule was June 20, 2005.

The Commission finds that its adoption of Amendment Nos. 192-99 and 195-83, and Amendment Nos. 192-101 and 195-85, meets the requirements of Section 17 of House Bill (HB) 2161, 79th Legislature, Regular Session (2005), which states that the Commission may not adopt safety standards under Texas Utilities Code, §121.201(a) or Texas Natural Resources Code, §17.012(a), as amended by HB 2161, until the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation adopts the rules published at 69 FR 35279 (to be codified at 49 CFR Parts 192 and 195, as proposed June 3, 2004) or other rules pertaining to public education programs for hazardous liquid and gas pipeline operators.

Amendment No. 192-94, published at 70 FR 3147 by the Research and Special Programs Administration (RSPA), is a direct final rule that makes a minor editorial correction to the definition of "transmission line" in the federal safety regulations for natural gas pipelines. The correction is intended to clarify that gathering lines are excluded from the definition of transmission line. Because gathering lines have never been included in the definition of transmission line, the correction will not result in any substantive change in the definition. The effective date was May 6, 2005.

Amendment Nos. 192-100 and 195-84, published at 70 FR 10332, adopt a direct final rule from RSPA's Office of Pipeline Safety requiring operators of gas and hazardous liquid pipelines to conduct programs to qualify individuals who perform certain safety-related tasks on pipelines. Congress addressed these programs through an amendment to the federal pipeline safety law (49 U.S.C. Chap. 601). In accordance with that amendment, the direct final rule codifies the new program requirements concerning personnel training, notice of program change, government review and verification of programs, and use of on-the-job performance as a qualification method. The direct final rule became effective July 1, 2005.

The Commission received no comments on the proposed amendments.

The Commission adopts the amendments under Texas Natural Resources Code, §81.051 and §81.052, which give the Commission jurisdiction over all common carrier pipelines in Texas, persons owning or operating pipelines in Texas, and their pipelines and oil and gas wells, and authorize the Commission to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission as set forth in §81.051, including such rules as the Commission may consider necessary and appropriate to implement state responsibility under any federal law or rules governing such persons and their operations; Texas Natural Resources Code, §117.012, which requires the Commission to adopt rules that include safety standards for and practices applicable to the intrastate transportation of hazardous liquids or carbon dioxide by pipeline and intrastate hazardous liquid or carbon dioxide pipeline facilities; and to adopt rules regarding public education and awareness concerning hazardous liquid or carbon dioxide pipeline facilities and community liaison for the purpose of responding to an emergency concerning a hazardous liquid or carbon dioxide pipeline facility; Texas Utilities Code, §§121.201 - 121.210, as amended by HB 2161, which authorize the Commission to adopt safety standards and practices applicable to the transportation of gas and to associated pipeline facilities within Texas to the maximum degree permissible under, and to take any other requisite action in accordance with, 49 United States Code Annotated §60101, et seq .; and HB 2161, Section 17, which directs that the Railroad Commission of Texas may not adopt safety standards under Texas Utilities Code, §121.201(a), or Texas Natural Resources Code, §117.012(a), as amended by HB 2161, until the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation adopts the rules published at 69 Federal Register 35279 (2004) (to be codified at 49 CFR Parts 192 and 195) (proposed June 3, 2004) or other rules pertaining to public education programs for hazardous liquid and gas pipeline operators.

Texas Natural Resources Code, §§81.051, 81.052, and 117.012; Texas Utilities Code, §§121.201 - 121.210; and 49 United States Code Annotated §60101, et seq ., are affected by the adopted amendments.

Statutory authority: Texas Natural Resources Code, §§81.051, 81.052, and 117.012; Texas Utilities Code, §§121.201 - 121.210; and 49 United States Code Annotated §60101, et seq .

Cross-reference to statute: Texas Natural Resources Code, Chapters 81 and 117; Texas Utilities Code, Chapter 121; and 49 United States Code Annotated Chapter 601.

Issued in Austin, Texas, on January 10, 2006.

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 January 10, 2006.

TRD-200600136

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Effective date: January 30, 2006

Proposal publication date: November 11, 2005

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


Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 61. COMBATIVE SPORTS

The Texas Department of Licensing and Regulation ("Department") adopts amendments to 16 Texas Administrative Code, §§61.10, 61.20, 61.30, 61.40 - 61.44, 61.46, 61.80, 61.105, 61.107, 61.108, 61.110, and 61.112, new §§61.21 - 61.24, 61.49, and 61.106, and the repeal of §61.21 and §61.109, regarding the combative sports program, without changes to the proposed text as published in the November 18, 2005, issue of the Texas Register (30 TexReg 7649) and will not be republished. Sections 61.47, 61.48, and 61.111 are adopted with changes to the proposed text as published in the November 18, 2005, issue of the Texas Register (30 TexReg 7649).

These rules are necessary to implement changes to the program brought about by Senate Bill 796 adopted by the 79th Legislature, and in response to the Department's rule review of Chapter 61, pursuant to Government Code, §2001.039 where the Commission determined that, other than implementing statutory changes, the rules should be maintained, but clarified, and brought into closer compliance with statutory provisions.

Section 61.10, Definitions, is amended to delete the definitions of "amateur," "bout/or contest," "Combative Sports," "Commission," "Event," and "Promoter" because these terms are defined in the Code. The definition of "shoot wrestling/fighting..." is also deleted as those particular martial arts are now included in "mixed martial arts." Paragraphs are renumbered as needed.

The definition of "contestant" is amended to specifically include professional combative sports contestants as that phrase is employed throughout the rules. A new definition for "knock-down" is added. The definition of "license" is expanded to include registrations. The definition of "manager" is amended to make it clear that the term only applies to professional combative sports contestants.

The definition of the term "matchmaker" is amended for clarification. The definition of "purse" is amended to refer to an event rather than a contest. The definition of "ring officials" is amended to clarify that "physician" means ringside physicians. The definition of "Technical Zone" is amended to clarify it and to provide that it is alcoholic beverage free. A new definition of "Full Contact" is added to define the term, which is used in the definition of "combative sports" in statute. The two definitions when considered together indicate that events where full contact is prohibited, as defined here, are not regulated under the Act.

Section 61.20(a), General Licensing Requirements, is amended to make it clear that persons participating in professional events must be licensed. New subsection (b) is added to require Amateur Combative Sports Associations ("ACSA") to be registered as required by new statute. Newly relettered subsection (e) is amended to remove the requirement that contestants and seconds notify the department of address changes. Original subsection (c) is deleted as the requirement to report changes in ownership is not needed in this program. Original subsections (e), (f), (g), (h), and (j) are deleted here and moved to rules more appropriate to their subjects.

Section 61.21, formerly General Prohibitions (new §61.23), is a new section, Licensing Requirements--Referees. The rule establishes criteria that referees must meet to become licensed and to provide a grandfathering period for persons currently licensed. The new rule will assure that persons serving as referees are qualified.

New §61.22, Licensing Requirements--Judges, establishes criteria for licensure as a judge.

New §61.23, General Prohibitions (formerly §61.21), is amended at subsection (b) to clarify the language with no substantive change. Subsection (c) is amended to eliminate references to elimination tournaments that were banned by statutory change, and to remove requirements for certain medical tests that are required by other rules. Subsections (d), (e), (f), and (h) are clarified without substantive change. Subsection (g) is deleted as it simply repeats requirements set out in statute or elsewhere in the rules. Subsection (i) is amended to allow persons who are members of a ranking organization, but who are not officers or directors, to be licensed as judges.

New §61.24, Practice Requirements--General, consists of subsections (a), (b), and (c) which were subsections (e), (g), and (j) that were deleted from §61.20. Some of the language has been changed but the substance has not.

Section 61.30, Responsibilities and Authority of the Executive Director, is amended at its title. Subsections (a) and (b) have been combined into subsection (a) without substantive change. Subsections (b) - (j) and (m) - (q) have been amended to clarify language but with no substantive change. Subsection (k), as amended, has been changed to continue the authority of the Executive Director to waive rules, but under the conditions set out in the amended language. Subsection (p) is deleted and moved to §61.40.

Section 61.40, Responsibilities of the Promoter, is amended at subsection (a)(1) to require promoters at the time of licensure and license renewal to post two bonds, one for $10,000 to secure payment of costs of an event and one for $15,000 to secure payment of gross receipts taxes. These provisions are not new. Also, a provision allowing a promoter to file a financial statement in lieu of the $10,000 bond has been deleted. Subsection (b)(13) is amended to delete language that is now in §61.107. Subsection (b)(15) is deleted and issues concerning gloves are addressed in the new subsection (b)(15) as amended. New subsection (b)(15) requires promoters to follow rules specific to the class of event for equipment and gloves. Subsection (b)(15)(A) - (L) are deleted and moved to §61.106. Subsection (b)(15)(B) as amended now requires the promoter to set up the Technical Zone as instructed by the Executive Director. Subsection (b)(16) as amended now allows promoters to pay certain licensing fees by money order as well as by check. Subsection (d)(1) is amended to remove the requirement that the promoters' license number be printed on each ticket. Subsection (d)(3) is amended to provide that when there is a ticket manifest, tickets of different prices are not required to be printed on paper of different colors. Subsection (d)(10) is added. This is old §61.30(p) that was deleted. The substance is not changed. Subsection (e) is amended to provide three business days for payment of the gross receipts tax rather than 72 hours.

Section 61.41, Responsibilities of the Referee, is amended by deleting subsection (f) and replacing it in subsection (k) as amended. Subsection (k) is amended at paragraph (1) and is changed to refer to a blow as opposed to a punch causing a knock-down. A knock-down is now defined in the definitions rule. New subsection (k)(7) and (8) are where the old subsection (f) is now shown without substantive change. Subsections (p) and (q) are deleted and have been moved without substantive change to new §61.21.

Section 61.42 is amended at subsection (d), no substantive change and subsection (e) to remove a reference to a referee's scorecard. Subsection (f) is deleted and moved without substantive change to new §61.22

Section 61.43, Responsibilities of Seconds, is amended at subsection (e)(4) to refer to unapproved substances as opposed to solutions. Subsections (f), (h), and (i) are amended to clarify language with no substantive change. New subsection (k) is added to require seconds to attend the referee's meeting. This requirement was deleted from §61.20(h).

Section 61.44, Responsibilities of Managers, is amended to delete subsection (b) and add subsection (d) requiring managers to attend the referee's meeting. This requirement was deleted from §61.20(h).

Section 61.46, Responsibilities of Ringside Physicians, is amended at paragraph (1) to allow chief seconds to be present during physical examinations.

Section 61.47, Responsibilities of Contestants, is amended at subsection (g) to remove gender specific provisions to new subsection (g) and to add language concerning jewelry from subsection (u) with no substantive changes. Subsections (k) and (l) that are gender specific are deleted. Subsection (k), as amended, is changed to make it clear that all contestants must have a pre-fight examination, and the required reporting of unfitness may now also be made by the chief second. Subsection (m) as amended is changed to remove the gender specific reference to a positive pregnancy test. Subsection (n) as amended is changed to clarify language. Subsections (r), (t), and (u) are deleted. Subsection (u) is now in subsection (g). New subsection (q) is added to address gender specific requirements deleted from other sections. No substantive changes were made. New subsection (r) is added to require contestants to attend the referee's meeting. This requirement was deleted from §61.20(b).

New §61.48, Responsibilities of Amateur Combative Sports Associations, is added to implement statutory changes requiring that ACSA's be registered. The requirements spelled out here are modeled after the rule for promoters. Subsection (b) requires ACSA's to file rules with the Executive Director and provides that they must address issues that the department has identified that concern safety of contestants, including use of licensed referees. All other participants other than the ACSA, are not required to be licensed. The rules also may establish guidelines for payment of certain expenses for contestants. Those that elect to pay expenses must provide a bond as set out in subsection (d).

New §61.49 requires that amateur organizations exempt from licensing and bonding requirements inform the department of the date, time, and location of their events. That information is needed to respond to inquiries from the public where concern is expressed that illegal events are being conducted. The department can inform them that they are not being conducted in violation of the statute.

Section 61.80, Fees, is amended to delete subsection (a)(10) and to add a new (a)(10) for ACSA's. Subsection (b) is amended to provide that Federal ID cards are valid for four years and subsection (c) is amended to make it clear a permit fee is required for professional events only.

Section 61.105, Weight Categories and Weigh-in-Boxing and Kickboxing, is amended at subsection (d) to clarify the weight categories. There are no substantive changes.

New §61.106, Ring and Glove Requirements--Boxing and Kickboxing, is added to replace items deleted from §61.40 with no substantive changes.

Section 61.107, Boxing, is amended at subsection (b) to remove reference to referees scoring contests. New subsection (e) is added to replace language deleted from §61.40(b)(13) concerning the length of rounds. Kickboxing and mixed martial rules have provisions concerning the length and number of rounds.

Section 61.108 is amended at subsections (g) and (h) to make it clear that provisions concerning holding purses address professional events only.

Section 61.109, Elimination Tournaments/Toughman competitions, is deleted. Elimination tournaments are no longer allowed pursuant to statute.

Section 61.110, Martial Arts, is amended at subsection (b) to clarify and correct references to other rule sections. Subsection (c) is amended to clarify that combative sports events may be conducted pursuant to official rules of any particular art if those rules have been approved by the Department.

Section 61.111, Mixed Martial Arts, has been amended at subsection (a) to clarify and correct references to other rule sections and to delete references to specific martial arts. Subsection (b) - (o) have been deleted and replaced with new subsections (b) - (t). The new subsections do not substantially change the deleted rules but they now include specific references to ring requirements and also allow use of a "fighting area" as defined. The new subsections also include weight categories and reference to the length of rounds and contests.

Section 61.112, Muay Thai Fighting, is amended at subsection (b) by deleting the provision that allows grappling techniques used while the opponents are standing.

The Department drafted and distributed the proposal to persons internal and external to the agency. No public comments were received regarding the amendments, new rules, and/or the repeal; however, the Commission, on recommendation of staff, amended §61.47, Responsibilities of Contestants, at subsections (a) and (m) to clarify testing requirements for the Hepatitis B virus. The proposed language required that applicants be free of the Hepatitis B and C viruses, and HIV. Both subsections are changed to remove the requirement that applicants be free of the Hepatitis B virus to require that applicants not be infected with the virus to such a degree that the applicant poses a threat of communicating it to opponents. Subsection (m) specifically mentions a Hepatitis B surface antigen test, which appears to be the primary test used at this time, but the language also permits other methods that test for Hepatitis B infectivity.

In addition, two clerical errors in the proposed rules are corrected in the adopted rules. In §61.48(b)(2)(A) the phrase "contestant participate" is amended to "contestants who participate". Section 61.111(h)(1) is amended to read, "Flyweight--up to 125 lbs." The numeral "5" was inadvertently omitted from the proposed rule.

16 TAC §§61.10, 61.20 - 61.24, 61.30, 61.40 - 61.44, 61.46 - 61.49, 61.80, 61.105 - 61.108, 61.110 - 61.112

The amendments and new rules are adopted under Texas Occupations Code, Chapter 2052 and Chapter 51, which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapter 2052 and Chapter 51. No other statutes, articles, or codes are affected by the adoption.

§61.47.Responsibilities of Contestants.

(a) Medical Examinations. Each contestant applying for a license, or license renewal, shall submit on a department approved form signed by an examining physician and an examining ophthalmologist proof of having passed a comprehensive medical examination within thirty days of the date the application is signed by the applicant. The exam must include an ophthalmologic medical examination completed by an Ophthalmologist only and must indicate that the applicant is free of the Hepatitis C virus and the human immunodeficiency virus (HIV), and that the applicant is not acutely or chronically infected with the Hepatitis B virus.

(b) A contestant applicant must submit to the Department all information required by the Department's application.

(c) A contestant may not perform under any name that does not appear in departmental records.

(d) Contestants shall in good faith perform to the best of their abilities.

(e) A contestant who commits a foul under these rules is subject to administrative sanctions and or penalties in addition to losing points during a contest.

(f) Arguing with an official or refusing to obey the orders of an official is prohibited.

(g) Contestants shall compete in proper ring attire. The trunks' waistband shall not extend above the waistline and the hem may not extend more than two inches below the knee. Ring attire may not have sequins, buttons, tassels or any other decorative items that may become detached during a contest. A fitted mouthpiece shall be worn while competing. Shoes shall be of soft material and shall not be fitted with spikes, cleats, or hard heels. Contestants may not participate in any contest while wearing jewelry, including but not limited to, watches, rings, necklaces, bracelets, earrings, any type of stud used to penetrate body piercings.

(h) All contestants shall be in the dressing room at least 45 minutes before the event is scheduled to begin. The contestants shall be ready to enter the ring immediately after the preceding contest is finished.

(i) After receiving final instructions from the referee, contestants may touch gloves or shake hands and then shall retire to their corners.

(j) After the referee or judge's decision has been announced, both contestants and their seconds shall leave the ring when requested to do so by the referee.

(k) Every contestant shall undergo a pre-fight physical examination. If a contestant's physical exam shows him unfit for competition, the contestant shall not participate in the contest. The manager, chief second, or contestant shall make an immediate report of the facts to the promoter and the Department.

(l) If a contestant becomes ill or injured and cannot take part in a contest for which he is under contract, he, his chief second, or his manager shall immediately report the facts to the promoter and the Department. The contestant must submit to the Department medical proof of the injury or illness.

(m) A positive Hepatitis C, or human immunodeficiency virus (HIV) test, or a positive Hepatitis B surface antigen test or other indication of Hepatitis B infectivity will result in disqualification.

(n) The administration or use of any drugs or alcohol during, or up to 24 hours before a contest is prohibited unless a drug is prescribed, administered or authorized by a licensed physician and the Executive Director authorizes the contestant to use the drug. If a contestant is taking prescribed or over the counter medication, he/she must inform the Executive Director of such usage at least 24 hours prior to the contest.

(o) As a condition of licensure, contestants waive right of confidentiality of medical records relating to treatment or diagnosis of any condition that relates to the contestant's ability to participate in a contest. All medical records submitted to the Department are confidential, and shall be used only by the Executive Director or his/her representative for the purpose of ascertaining the contestant's ability to be licensed or participate in a contest.

(p) Medical disqualification of a contestant is for his own safety and may be made at the recommendation of the examining physician or the Department. If a contestant disagrees with a medical disqualification, medical suspension or rest period set at the discretion of a ringside physician or a disqualification set by the Department, he may request a hearing to show proof of fitness. The hearing shall be provided at the earliest opportunity after the Department receives a written request from the contestant or his manager.

(q) The following are gender specific provisions.

(1) Male contestants must wear a protection cup, which shall be firmly adjusted before entering the ring.

(2) Female contestants:

(A) Must wear garments that cover their breasts;

(B) Shall submit to a pregnancy test at weigh-in;

(C) Will be disqualified by a positive pregnancy test; and,

(D) May wear breast protection plates.

(r) Contestants must attend the referee's rules meeting conducted prior to the first contest of an event.

§61.48.Responsibilities of Amateur Combative Sports Associations.

(a) An amateur combative sports association (ACSA) must provide to the Department proof that it is either a non-profit organization chartered by the State of Texas or that it is approved as a non-profit organization under the provisions of the Internal Revenue Code.

(b) An ACSA shall file with the Executive Director rules for conducting the organization's affairs and the conduct of its members. The rules:

(1) Must include provisions to:

(A) Establish conditions for membership;

(B) Provide guidelines for training its members in preparation for a contest;

(C) Establish a minimum training period before a contest;

(D) Indicate which class(es) of combative sports the ACSA will conduct;

(E) Require that all referees participating in events conducted by the ACSA are licensed by the Department; and,

(F) Either:

(i) Adopt, as appropriate, rules set out below for boxing, kickboxing, mixed martial arts, and muay thai; or,

(ii) Establish the ACSA's rules for a class or classes of events it will sponsor; and,

(2) May include provisions to:

(A) Provide for payment of actual expenses, up to an established maximum, for the contestants who participate in an event; and,

(B) Allow members of other ACSAs to participate as a visiting member in an event conducted by it without the other ACSA participating in the conducted event, so long as it ascertains that the visiting member is qualified under the rules to be a contestant in the event.

(c) An ACSA may not conduct or participate in any event unless it has received Executive Director's written approval of rules required in subsection (b) of this section.

(d) An ACSA that has adopted rules permitted under subsection (b)(2) of this section must, before it sponsors or participates in any event, submit to the Executive Director a $15,000 surety bond, written by a bonding company authorized to do business in the State of Texas, guaranteeing payment of gross receipts taxes owed for promoted events, which shall remain in effect for four years after the effective cancellation date.

(e) An ACSA shall provide insurance and pay all deductibles for contestants, to cover medical, surgical and hospital care with a minimum limit of $20,000 for injuries sustained while participating in a contest and $50,000 to a contestant's estate if he dies of injuries suffered while participating in a contest. At least ten calendar days before an event the ASCA shall provide to the Department for each event to be conducted, a certificate of insurance showing proper coverage. The ASCA shall supply to those participating in the event the proper information for filing a medical claim.

(f) An ACSA shall ensure that all contestants participating in contests it conducts are amateurs.

(g) An ACSA may not allow any person who has not been a member of the ACSA for at least thirty days to participate as a contestant in any event in which the ACSA participates.

(h) An ACSA conducting an event shall:

(1) Bear all financial responsibility for the event.

(2) Provide the Department written notice of all proposed event dates, ticket prices, and participants of the main event, at least 21 days before the proposed event date and obtain written approval from the Department to promote the event prior to advertising or selling tickets.

(3) Provide two licensed physicians, for each event.

(4) Provide at least one licensed physician to conduct pre-fight physicals. Provide a private area for the physician to perform pre-fight examinations.

(5) Assure that beverages are only allowed in paper or plastic cups at the event.

(6) Assure that no alcoholic beverages or illegal drugs are in the dressing room.

(7) Ensure the safety of the contestants, officials, and spectators.

(A) There shall be a pre-fight plan and route to remove an injured contestant from the ring and arena. Upon request, the promoter shall inform the Department of these plans. The plan shall include the name and location of a local hospital emergency room.

(B) A sufficient number of security personnel shall be retained to maintain order.

(8) Ensure that the rules set forth herein below regarding equipment and gloves that apply to a particular type of event are followed.

(9) Ensure that each contest is conducted as provided by the ACSA's rules approved by the Department.

(10) Ensure that each event has the appropriate equipment as described by the ACSA's rules approved by the Department.

(11) Ensure that all advertising concerning an event to be conducted indicates that it is an amateur event, and includes the name of the ACSA that will conduct the event.

(i) Tickets

(1) All tickets shall have printed on each half, the price including any service surcharge or handling fee, and the event date.

(2) Roll tickets with consecutive numbers shall be sold only at the box office on the day of the show.

(3) If there is no ticket manifest, tickets of different prices shall be printed on different colored ticket stock.

(4) Tickets shall not be sold for more than the actual capacity of the location where the event is held.

(5) ACSA's shall hold tickets of every description used for any event for at least 30 days after the event. The tickets shall be kept in separate packages for each event for audit purposes.

(j) An ACSA shall submit to the Department a tax report and a 3% gross receipts tax payment within three business days after an event.

§61.111.Mixed Martial Arts.

(a) All rules stated herein, except §§61.106 - 61.108 and §61.112 apply to mixed martial arts contests unless this section conflicts with another rule stated herein. If a conflict occurs, this section prevails.

(b) Contestants may wear fingerless gloves weighing not less than 4 ounces, which shall be supplied by the promoter and approved by the Executive Director.

(1) If both contestants wear gloves, closed fist punching and frontal palm/heel strikes are permitted.

(2) If both contestants are not wearing gloves, frontal palm/heel strikes and closed fist punches are not permitted, except to the body.

(c) Contestants may prevail by technical knockout, knockout, submission (either by physical or verbal tap out), disqualification or judges decision.

(d) Scoring Techniques.

(1) Using the 10-Point Must Scoring System, judges are required to determine a winner of a contest that ends after the scheduled number of rounds have been completed. Ten points must be awarded to the winner of each round and 9 points or less must be awarded to the loser, except for a rare even round, which is scored a 10 - 10.

(2) Judges must evaluate mixed martial arts techniques, such as effective striking, effective grappling, fighting area control, and effective aggressiveness/defense.

(e) Contestants may wear shorts, trunks, wrestling singlet, or traditional martial arts Gi, unless otherwise instructed by the Executive Director. Knee braces without metal are permissible. Contestants may not wear shoes of any kind during competition. A male contestant may not wear a shirt during competition.

(f) Each contestant must be clean and present a tidy appearance. The use of grease or any other foreign substance, including, without limitation, grooming creams, lotions or sprays, may not be used on the face, hair or body of a contestant. The referee or the Executive Director's representative shall cause any foreign substance to be removed.

(g) Contestants who wear gloves may wrap hands in a manner approved by the Executive Director. If contestants are not wearing gloves, it is not permissible to wrap hands, but wrists may be taped. Contestants who choose to wear gloves, may only compete with other contestants wearing gloves. Contestants choosing not to wear gloves, may only compete with other contestants who choose not to wear gloves.

(h) Weight Divisions. Except with the approval of the Executive Director, the classes for mixed martial arts contest or exhibitions and the weights for each class are shown in the following schedule:

(1) Flyweight--up to 125 lbs.

(2) Bantamweight--over 125 to 135 pounds

(3) Featherweight--over 135 to 145 pounds

(4) Lightweight--over 145 to 155 pounds

(5) Welterweight--over 155 to 170 pounds

(6) Middleweight--over 170 to 185 pounds

(7) Light Heavyweight--over 185 to 205 pounds

(8) Heavyweight--over 205 to 265 pounds

(9) Super Heavyweight--over 265 pounds

(i) Non-championship contests shall not exceed a total of 15 minutes per contest with no overtime allowed. Championship contests shall not exceed a total of 25 minutes of action. Rounds shall be a minimum of three minutes with a one-minute rest period between each round.

(j) A fitted mouthpiece shall be worn while competing.

(k) A male contestant must wear a plastic foul-proof groin protector (abdominal guard). A female contestant must wear a plastic pelvic guard and may wear a breast protector.

(l) Contestants may use the ropes once during a round. The second time a contestant grabs the ropes will be considered a submission.

(m) Intentionally escaping from the fighting area will result in a rope call.

(n) If both contestants wrestle into or under the ropes and the referee believes that the ropes are causing interference with the match, the referee may stop the action, and require both contestants to take a standing position in the middle of the fighting area before continuing the match.

(o) If both contestants are wrestling on the ground and the referee believes neither contestant will gain an advantage, the referee may stop the contest, and require both contestants to take a standing position in the middle of the fighting area before continuing the match.

(p) Mixed martial arts contests may be conducted either in an approved ring or in an enclosed fighting area. The following specifics apply:

(1) Rings:

(A) Must be no smaller than 16 feet square and no larger than 32 feet square within the ropes. The ring floor must extend at least 18 inches beyond the ropes;

(B) The ring floor must be padded with ensolite or another similar closed-cell foam, with at least 1 inch layer of foam padding. Padding must extend beyond the ring ropes and over the edge of the platform. Material that tends to gather in lumps or ridges may not be used;

(C) The ring platform must not be more than 4 feet above the floor of the venue and must have suitable steps or ramps for the use of the contestants and ring officials;

(D) Ring posts must be made of metal, not more than 3 inches in diameter, extending from the floor of the venue to a minimum height of 58 inches above the ring floor, and must be properly padded in a manner approved by the Executive Director. Ring posts must be at least 18 inches away from the ring ropes;

(E) There must be five ring ropes, not less than 1 inch in diameter and wrapped in soft material. The lowest rope must be 12 inches above the ring floor;

(F) There may not be any obstruction or object on the ring floor;

(2) Fighting Areas:

(A) May be circular or may be multi-sided having four or more sides that are equal in length. A circular fighting area must have a diameter of no less than 16 feet and of no more than 32 feet in length. For a multi-sided fighting area the shortest straight line distance between any two opposite sides must be no less than 16 feet and no more than 32 feet in length.

(B) The floor shall be constructed of material at least 3/4 inch thick, adequately supported, and padded with ensolite or similar closed-cell foam that is at least one inch thick.

(C) Padding shall extend beyond the fighting area and over the edge of the platform, and have a top covering of canvas, duck or similar material approved by the Executive Director.

(D) The covering shall be clean and tightly stretched and laced to the fighting area platform and may not have tears, holes or overlapping seams.

(E) The fighting area platform shall not be more than 4 feet above the floor of the building and shall have suitable steps or ramps for use by the participants.

(F) Posts shall be made of metal not more than 6 inches in diameter, extending from the floor of the venue to between 5 and 7 feet above the canvas of the fighting area and, if inside the fenced area, shall be properly padded in a manner approved by the Executive Director.

(G) The fighting area shall be enclosed by a fence made of material that will not allow a contestant to fall out or break through it onto the floor or spectators; including, without limitation, chain-link fence coated with vinyl. Any metal portion of the fenced area must be covered and padded in a manner approved by the Executive Director and must not be abrasive to the contestants.

(H) A fence area must have 2 gated entrances on opposite sides of the fenced area.

(I) There must not be any obstruction on the fence surrounding the area in which the contestants compete.

(q) The promoter of a mixed martial arts event shall hang at least 2 video screens that meet the approval of the Executive Director and which allow the patrons to view the action inside the enclosed fighting area or ring.

(r) If a laceration occurs, the referee may stop the contest and request the ring physician to examine the laceration. Either the physician or referee can stop the contest.

(s) The following tactics are fouls and may result in disqualification or point deduction at the discretion of the referee.

(1) Head butts.

(2) Downward punching while the opponent's head is touching the mat.

(3) Kicks, punches or any strikes to the groin.

(4) Spitting or biting.

(5) Striking or grabbing the throat area.

(6) Grabbing the trachea.

(7) Kicking while the opponent is down on the mat.

(8) Kneeing to the head of a grounded opponent.

(9) Kicking to the head of a grounded opponent.

(10) Hair pulling.

(11) Engaging in any unsportsmanlike conduct that causes an injury to an opponent.

(12) Attacking on the break.

(13) Attacking after the bell has sounded.

(14) Intentionally pushing, shoving, wrestling, or throwing an opponent out of the fight area.

(15) Holding the fence or the ropes.

(16) Using abusive language in the fighting area.

(17) The use of any foreign substances on any contestant's hair, body or equipment.

(18) Eye gouging of any kind.

(19) Fish hooking.

(20) Putting a finger into any orifice or into any cut or laceration on an opponent.

(21) Small joint manipulation.

(22) Striking to the spine or the back or the head.

(23) Striking downward using the point of the elbow.

(24) Clawing, pinching, or twisting the flesh.

(25) Grabbing the clavicle.

(26) Stomping a grounded opponent.

(27) Kidney strikes of any kind.

(28) Spiking an opponent to the canvas on his head or neck.

(29) Holding the shorts or gloves of an opponent.

(30) Flagrantly disregarding the instructions of the referee.

(31) Attacking an opponent who is under the care of the referee.

(32) Timidity, including without limitation, avoiding contact with an opponent, intentionally or consistently dropping the mouthpiece or faking an injury.

(33) Throwing in the towel during competition.

(34) Interference by the corner.

(t) The determination of the winner shall be as follows:

(1) by submission, either verbally or by tapping two or more times on the mat, ropes, ring corner or the opponents body;

(2) by knockout;

(3) by being down on the map for a ten count;

(4) by the referee disqualifying a contestant through a technical knockout;

(5) by the referee stopping a match based upon a ring physician's advice;

(6) by a contestant's corner stopping the bout;

(7) by the referee disqualifying a contestant for a violation of these rules; or

(8) by the judges decision based upon technique and aggressiveness minus the number of penalties.

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 January 12, 2006.

TRD-200600188

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: November 18, 2005

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


16 TAC §61.21, §61.109

The repeal is adopted under Texas Occupations Code, Chapters 2052 and Chapter 51, which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adopted repeal are those set forth in Texas Occupations Code, Chapter 2052 and Chapter 51. No other statutes, articles, or codes are affected by the adoption.

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 January 12, 2006.

TRD-200600189

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: November 18, 2005

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


Chapter 66. REGISTRATION OF PROPERTY TAX CONSULTANTS

16 TAC §§66.1, 66.10, 66.20, 66.21, 66.25, 66.61, 66.65, 66.70 - 66.72, 66.80, 66.90, 66.100

The Texas Commission of Licensing and Regulation ("Commission") adopts amendments to existing rules at 16 Texas Administrative Code, Chapter 66, §§66.1, 66.10, 66.20, 66.61, 66.65, 66.70, 66.71, 66.72, 66.80, and 66.90; new rules §§66.21, 66.25 and 66.100; regarding the property tax consultants program without change as published in the November 11, 2005, issue of the Texas Register (30 TexReg 7342) and will not be republished.

The amendments and new rules are necessary to update statutory references and conform rule requirements to current law. In addition, these rule changes are needed to reorganize provisions for greater clarity and readability and to delete unnecessary provisions. A new continuing education rule is added to make continuing education requirements consistent with 16 Texas Administrative Code, Chapter 59, which contains the Commission's general rules for continuing education providers and courses. For greater clarity, rule provisions relating to continuing education are separated from rule provisions relating to pre-registration education and education for upgrade to a senior property tax consultant registration. Statutory references are updated, and obsolete references to "commissioner" are replaced by references to "executive director," "department," or "commission" as appropriate. The definition of "private provider" in §66.10 is amended to clarify that this term applies only to providers of education for pre-registration and upgrade credit, not to continuing education providers. New provisions in §§66.10 and 66.20 are relocated from other places, and certain provisions are consolidated. Certain requirements of §66.21 are not needed because they repeat statutory requirements or contain detail that can be addressed adequately in a Department application form.

A new §66.21 is added to consolidate and update requirements for private providers and pre-registration or upgrade education. In §66.21(e) the word "annually" is substituted for "biannually" to change the interval for program reviews from twice every year to one a year. Section 66.22 is replaced with a new continuing education rule at §66.25.

New §66.25 is needed to change the continuing education requirements for registrants. This new rule is necessary to make continuing education requirements in the property tax consultant program generally consistent with the Department's continuing education model in other programs, while recognizing unique requirements for property tax consultants. Under Texas Occupations Code, §51.405 the Commission is required to recognize, prepare, or administer continuing education programs for license holders, and a license holder must participate in the programs to the extent required by the Commission to keep the person's license. The new §66.25 is proposed under that statutory provision. The Commission's general requirements for continuing education providers and courses, which are contained in 16 Texas Administrative Code, Chapter 59, will now apply to providers and courses in the property tax consultant program, including the fees for provider registration and course approval. New §66.25 establishes requirements that are specific to the property tax consultant program for registrants, providers, and courses.

Unnecessary language is deleted from §66.61, and an amendment clarifies that the Commission may invoke the full range of administrative sanctions for cheating on an examination. The substance of §66.63 is relocated to new §66.21.

Technical corrections are made to §66.65, and language in subsection (g) and (h) is deleted as duplicative of or inconsistent with statutory provisions. Language in §66.70(c) is deleted because the code of ethics sufficiently addresses false or misleading advertising. Other provisions are moved to this section from elsewhere. In subsection (c) a specific time frame of 30 days is stated to provide greater clarity and enforceability. A requirement that a registered property tax consultant only offer services to a senior property tax consultant is deleted as inconsistent with statutory requirements. A reference to continuing education is removed from §66.72 to clarify that these requirements pertain to pre-registration and upgrade education. Section 66.72(c) is changed to require that a private provider provide a certificate to the participant including actual hours attended. The audit provisions of subsections (d) and (e) are enhanced to be more consistent with analogous provisions in Chapter 59 of the Commission's rules.

Clarifying amendments are made to §66.80. Fees are relocated to §66.80 from §§66.82, 66.83, and 66.85, which are repealed. Technical corrections are made to §66.90. Finally, the code of ethics is placed in new §66.100.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. No comments were received concerning the amended or new rules.

The amended and new rules are adopted under Texas Occupations Code, Chapters 51 and 1152, which authorize the Commission to adopt rules as necessary to implement those chapters. The statutory provisions affected by the new and amended rules are those set forth in Texas Occupations Code, Chapters 51 and 1152. No other statutes, articles, or codes are affected by the adoption.

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 January 12, 2006.

TRD-200600206

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: November 11, 2005

For further information, please call: (512) 463-6208


16 TAC §§66.21, 66.22, 66.24, 66.60, 66.62 - 66.64, 66.82, 66.83, 66.85, 66.91

The Texas Commission of Licensing and Regulation ("Commission") adopts the repeal of existing rules at 16 Texas Administrative Code, Chapter 66, rules §§66.21, 66.22, 66.24, 66.60, 66.62, 66.63, 66.64, 66.82, 66.83, 66.85, and 66.91, regarding the property tax consultants program, without changes as published in the November 11, 2005, issue of the Texas Register (30 TexReg 7346) and will not be republished.

The repeal is necessary to update statutory references and conform rule requirements to current law. In addition, these rule changes are needed to reorganize provisions for greater clarity and readability and to delete unnecessary provisions. Section 66.21 is repealed because unnecessary provisions are deleted and all other provisions are relocated to other sections. Certain requirements of §66.21 are not needed because they repeat statutory requirements or contain detail that can be addressed adequately in a Department application form. Section 66.22 is repealed to be replaced with a new continuing education rule at §66.25. Section 66.24 is repealed because examination rescheduling is addressed in a general Commission rule at 16 Texas Administrative Code §60.84.

Section 66.60 is repealed as unnecessary because Department complaint procedures are addressed in other rule and statutory provisions. The substance of §66.63 is relocated to new §66.21. Requirements of §66.62 are incorporated into §66.21. Section 66.64 is repealed because subsection (a) is unnecessary in light of the Department's statutory authority to investigate complaints, and the substance of subsection (b) is incorporated into §66.72.

Fees are relocated to §66.80 from §§66.82, 66.83, and 66.85, which are repealed. Section 66.91 is repealed because it merely repeats statutory provisions.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. No comments were received concerning the repealed rules.

The rule repeal is adopted under Texas Occupations Code, Chapters 51 and 1152, which authorize the Commission to adopt rules as necessary to implement those chapters. The statutory provisions affected by the repealed rules are those set forth in Texas Occupations Code, Chapters 51 and 1152. No other statutes, articles, or codes are affected by the adoption.

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 January 12, 2006.

TRD-200600205

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: November 11, 2005

For further information, please call: (512) 463-6208


Chapter 74. ELEVATORS, ESCALATORS, AND RELATED EQUIPMENT

16 TAC §§74.10, 74.20, 74.25, 74.30, 74.50, 74.55, 74.60, 74.65, 74.70, 74.75, 74.80, 74.85, 74.90

Texas Commission of Licensing and Regulation ("Commission") adopts the amendments to existing rules at 16 Texas Administrative Code, Chapter 74, §§74.10, 74.20, 74.25, 74.30, 74.50, 74.55, 74.60, 74.65, 74.70, 74.75, 74.80, 74.85 and 74.90 regarding elevators, escalators and related equipment, without changes as published in the November 18, 2005, issue of the Texas Register (30 TexReg 7665) and will not be republished.

These amendments are necessary to clarify the language of the rules and to bring the rules into closer compliance with statutory provisions.

Rule 74.10 Definitions is amended to delete the definition of "accident" since the term is clearly defined by statute. The definition of ASCE Code 21 is also deleted as the term is defined by statute and no addenda need to be included. Paragraph (17), unsafe elevator or escalator has been amended so that equipment that has any defect that presents a risk of serious injury is unsafe. Paragraph (18) is amended to delete the word "permanent" from the definition of waiver and to add the phrase "for an indefinite period of time."

Rule 74.20 Inspector Registration Requirements is amended to clarify rule language in several areas. It is also amended to delete the requirement that inspectors attend an annual meeting conducted by the department, and to provide that inspectors shall attend a meeting when the Executive Director determines that a meeting is needed. It is anticipated that such meetings will occur less frequently than annually.

Rule 74.25 Contractor Registration Requirements is amended to clarify procedures for contractor registration and registration renewals. It is also amended at subsection (d)(3) and (4) to provide that quarterly reports should include jobs performed as opposed to the requirement that they report jobs contracted. Rule 74.30 Exemptions is amended to include all statutorily provided exemptions.

Rule 74.50 Reporting Requirements--Building Owner is amended at subsection (a)(2) to require reports for each unit of equipment in a building rather than the current requirement for reports for a unit of equipment. Subsection (b)(1) is amended to provide that tenants or occupants shall be notified of certain delays. Subsection (c) requiring owners to submit in writing the status of all delays is deleted. Subsections (c), (d) and (e) as amended, clarify references to codes.

Rule 74.55 Reporting Requirements--Inspector is amended at subsection (a) to change a filing deadline from ten working days to ten calendar days to comply with the statute. Subsection (b) is deleted and a new subsection (c) is amended to replace working days with calendar days.

Rule 74.60 Standards of Conduct for Inspector or Contractor Registrants is amended at subsection (e)(6) to delete the reference to an employee or a full or partial owner.

Rule 74.65 Advisory Board is amended to delete the sentence providing that the Board consists of 13 members since the size of the Board is prescribed by statute.

Rule 74.70 Responsibilities of the Building Owner is amended at subsection (a) to remove the requirement for an owner to contract or employ an inspector and replace it with the requirement to obtain services of a registered inspector. Subsection (c) is amended to require that maintenance and inspection records be available in the building rather than requiring that copies be kept in the building. Subsection (d) is amended to add a reference to the statute. Subsection (e) is amended to require that persons performing inspections must be registered with the department. Subsection (k)(1)(A) is amended to specify maximum and minimum heights at which certificates must be displayed. Subsection (k)(2) is amended to provide for display of escalator certificates or identifier plaques within 10 feet of the entry and the exit of an escalator and to delete the requirement for display in the escalator box as the interior of the box may not be visible to the public. Subsection (n)(2) is added to require reinspection and certification when equipment has been determined to be unsafe or if cosmetic alterations to an elevator cab has made the elevator unsafe. Subsection (n) has been added to require the owner to have copies of all waivers and delays in the machine room for use by elevator personnel.

Rule 74.75 Responsibilities of the Inspector has been amended at subsection (a)(4) to replace the requirement that the person performing safety tests sign inspection reports with a requirement that the building owner sign the reports. Subsection (a)(7) is added to provide that equipment shall not be used by the public until the equipment is completely installed and all work is completed. Subsection (c)(1) is amended to clarify the placement of test tags.

Section 74.80 Fees is amended to remove subsection (a)(4) setting a fee for inspector education programs, and other subsections are amended to clarify the rule language. Rule 74.85 Responsibilities of the Department is amended by adding subsection (d) to provide that the department may review inspection reports.

The department drafted and distributed the proposed rules to persons internal and external to the agency. One public comment was received in response to the proposed amendments. The amendments are made in response to Texas Department of Licensing and Regulation's review of Chapter 74, pursuant to Government Code §2001.039 which resulted in the Commission making a determination that the rules as amended should be maintained.

The commenter expressed concern that changing Rule 74.75 (a)(4) to replace the requirement that the person performing inspections sign the report with a requirement that the building owner sign the report would cause an increase in the costs to owners to have inspections performed. This is not a change in procedure insofar as the owner is concerned; the inspection form already requires the owner or the owner's agent to sign the report. Rather, it is a rule change to bring the rule into agreement with practice. The commenter also noted changes to subsection (a)(7) and (c)(1) but did not propose changes or express any concern about the noted changes. The Commission has not made any change in response to the comment.

The amendments are adopted under Health and Safety Code, Chapter 754 and Occupations Code, Chapter 51, which authorizes the Commission to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Texas Department of Licensing and Regulation.

The statutory provisions affected by the adoption are those set forth in Health and Safety Code, Chapter 754 and Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the adoption.

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 January 12, 2006.

TRD-200600204

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: November 18, 2005

For further information, please call: (512) 463-6208


Chapter 77. SERVICE CONTRACT PROVIDERS AND ADMINISTRATORS

16 TAC §§77.1, 77.10, 77.21, 77.22, 77.70, 77.72, 77.80, 77.90

The Texas Commission of Licensing and Regulation ("Commission") adopts amendments to existing rules at 16 Texas Administrative Code, Chapter 77, §§77.1, 77.10, 77.21, 77.70, 77.80, and 77.90, and new rules §§77.22 and 77.72, concerning service contract providers and administrators without change as published in the December 2, 2005, issue of the Texas Register (30 TexReg 7960) and will not be republished.

The amendments and new rules are necessary to implement House Bill 1286, 79th Texas Legislature, which amends the service contract statute, Texas Occupations Code, Chapter 1304. House Bill 1286 adds a registration requirement for administrators of service contracts and establishes minimum surplus and paid-in capital requirements for insurers issuing reimbursement insurance policies that are used as financial security by service contract providers. The bill takes effect January 1, 2006, except for the required registration of administrators, which takes effect March 1, 2006. The new and amended rules implement these statutory changes. The new and amended rules are also necessary to make technical updates and corrections to the rules for the service contract program. References to statutes and rules are updated throughout the rules.

In §77.10 the definition of "consumer" is deleted as unnecessary because the same term is already defined somewhat differently in Texas Occupations Code, Chapter 1304. A definition of "third-party administration of a service contract" is added to clarify the statutory definition of "administrator" in Texas Occupations Code, §1304.002, by specifying the activities that constitute third party administration. The heading of §77.21 is amended to specify that the requirements of that section apply both to initial registration and renewal and apply specifically to providers. As a result of changes in statutory language, new language is added in §77.21(b) to state explicitly that a registration is valid for one year and must be renewed annually. New language in subsection (c) clarifies that initial and renewal applications for registration must be on a form prescribed by the executive director. New §77.22 establishes registration and renewal requirements for administrators. Amendments to §77.70 are needed to make certain responsibilities that apply to providers also apply to administrators.

New §77.72 implements new financial security requirements added by House Bill 1286. New §77.72(b) is needed to require that a reimbursement insurance policy must include the Department's prescribed "Service Contract Provider Texas Endorsement" or equivalent language. The Department's practice has been to request that reimbursement insurance policies include the endorsement, which contains statutorily-required provisions. The new rule requires use of the endorsement unless the policy contains equivalent language. The rule is needed to ensure that reimbursement insurance policies include provisions required by Texas Occupations Code, Chapter 1304, including provisions added by House Bill 1286.

Amendments to §77.80 are needed to clarify provider fees for initial registration and renewal and to add initial registration and renewal fees for administrators. The fee for a duplicate or amended registration certificate is lowered to $25, consistent with similar fees in other Department programs. Section 77.90 is amended to update statutory references, remove a reference to "the Act" which is not a defined term, make a technical correction to the language concerning imposing an administrative penalty, and clarify that the possible penalties for a violation include denial of a registration.

The Department drafted and distributed the proposed rules to persons internal and external to the agency. No comments were received concerning the new and amended rules.

The new and amended rules are adopted under Texas Occupations Code, Chapters 51 and 1304, which authorize the Commission to adopt rules as necessary to implement these chapters. In particular, the amendments and new rules implement acts of the 79th Texas Legislature, House Bill 1286. The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 1304. No other statutes, articles, or codes are affected by the adoption.

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 January 12, 2006.

TRD-200600207

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: February 1, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-6208