TITLE 16.ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 65. BOILERS

16 TAC §§65.10, 65.70, 65.100

The Texas Department of Licensing and Regulation ("Department") proposes amendments to existing rules at 16 Texas Administrative Code, §§65.10, 65.70, and 65.100 regarding definitions, responsibilities, and technical requirements in the boiler program.

The proposed amendments make technical changes and clarifications to the boiler rules. Section 65.10(39) is amended to clarify that a repair requirement form signed by the Department’s chief boiler inspector or a deputy inspector is considered a preliminary order. A repair requirement form is the Department form that is used to notify boiler owners and operators of needed repairs or alterations. The purpose of the amendment is to make clear that a repair requirement form signed by a Department inspector constitutes a preliminary order that is required to be issued to the boiler owner or operator by Texas Health and Safety Code, §755.041(a).

The amendments to §65.70(f)(2) remove references to "side" clearances. This clarifies that all minimum manufacturer’s recommended clearances for boilers must be maintained, including top and bottom clearances. The amendments to §65.70(h)(3)(A) and (B) bring the rules more in line with requirements of the National Board Inspection Code (NBIC), published by the National Board of Boiler and Pressure Vessel Inspectors. Currently, the Department is requiring ultrasonic thickness measurements at each inspection of a nonstandard boiler, under the authority of §65.70(h)(3)(B). However, the Department believes that requiring such an examination only for the first inspection of a nonstandard boiler and at five-year intervals thereafter is sufficient to protect the public safety.

Amendments to §65.100(k)(2)(G)(ii) change the specifications for hydrostatic test pressure for hot water heating boilers. Amendments to §65.100(k)(4)(D) add specifications for pressure gages for certain potable water heaters. These changes make the rules more consistent with requirements of the American Society of Mechanical Engineers (ASME) Code.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments are in effect, there will be no impact to costs or revenues of the State as a result of enforcing or administering the proposed rules. The Department anticipates no impact to costs or revenues of local government.

Mr. Kuntz also has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be rule requirements that are clearer and more consistent with national standards for the boiler industry. In addition, owners and operators of nonstandard boilers may see some reduction in compliance costs because ultrasonic thickness measurements will be required only at five-year intervals rather than at every inspection of the boiler.

Mr. Kuntz has determined that there will be no adverse economic effect on small or micro-businesses as a result of the proposed amendments. There are no anticipated economic costs to persons who are required to comply with the rules as amended.

Comments on the proposal may be submitted to Caroline Jackson, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512 ) 475-3032, or electronically: Caroline@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

The amendments are proposed under Texas Health and Safety Code, Chapter 755 and Texas Occupations Code, Chapter 51. In particular, Texas Health and Safety Code, §755.032(a) authorizes the Commission to adopt rules, in accordance with standard boiler usage, for the construction, inspection, installation, use, maintenance, repair, alteration, and operation of boilers. Texas Occupations Code, §51.203 directs the Commission to adopt rules as necessary to implement each law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Health and Safety Code, Chapter 755 and Texas Occupations Code, Chapter 51. No other statutes, articles, or codes are affected by the proposal.

§65.10.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (38) (No change.)

(39) Preliminary order--A written order issued by the chief inspector or any deputy inspector to require repairs or alterations to render a boiler safe for use or to require that operation of the boiler be discontinued. A Repair Requirement form that is signed by the chief inspector or a deputy inspector is a Preliminary Order.

(40) - (49) (No change.)

§65.70.Responsibilities of the Licensee/Certificate Holder/Registrant.

(a) - (e) (No change.)

(f) Clearance.

(1) (No change.)

(2) The minimum manufacturer’s recommended [ side ] clearances shall be maintained [ on all sides of the boiler ], except for portable boilers. A minimum of one foot (305 millimeters) shall be maintained between the bottom of scotch-type boilers and the foundation or floor.

(g) (No change.)

(h) Preparation for inspection.

(1) - (2) (No change.)

(3) Portable or stationary nonstandard boilers shall be prepared for inspection as described in this section with the following additional requirements.

(A) External lagging and insulation shall be removed and ultrasonic thickness measurements shall be performed for the first inspection and at five-year intervals for subsequent inspections.

(B) Other [ Ultrasonic thickness measurements or other ] examinations as required by the chief inspector or deputy inspector shall be performed to determine the condition of the boiler.

(C) Any other inspections or examinations shall be performed as determined by the chief inspector as a condition for registration.

(i) - (m) (No change.)

§65.100.Technical Requirements.

(a) - (j) (No change.)

(k) Heating boilers.

(1) (No change.)

(2) Hot water heating.

(A) - (F) (No change.)

(G) Provisions for thermal expansion.

(i) (No change.)

(ii) Closed heating system - If the system is of closed type, an airtight tank or other suitable air cushion that is consistent with the volume and capacity of the system shall be installed . If the system is designed for a working pressure of 30 psi (207 kilopascals) or less, the tank shall be suitably designed for a minimum hydrostatic test pressure of 75 psi (520 kilopascals). [ , and it shall be suitably designed for a hydrostatic test pressure of two and one-half times the allowable working pressure of the system. ] Expansion tanks for systems designed to operate above 30 psig (207 kilopascals) shall be constructed in accordance with the ASME Code, Section VIII, Division 1. Alternatively, a tank built to ASME Section X requirements may be used if the pressure and temperature ratings of the tank are equal to or greater than the pressure and temperature ratings of the system. Provision shall be made for draining the tank without emptying the system, except for pre-pressurized tanks.

(3) (No change.)

(4) Potable water heaters.

(A) - (C) (No change.)

(D) Gages

(i) Temperature gages. Each hot water heater shall have a thermometer located and connected at or near the outlet that is easily readable. The thermometer shall at all times indicate the temperatures of the water in the hot water heater.

(ii) Pressure gages. Each hot water heater that is of the coil type or water tube shall have a pressure gage that is graduated to not less than 1 1/2 or more than 3 1/2 times the pressure at which the safety relief valve is set.

(E) - (G) (No change.)

(l) - (o) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 1, 2006.

TRD-200602424

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: June 18, 2006

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


Part 8. TEXAS RACING COMMISSION

Chapter 303. GENERAL PROVISIONS

Subchapter D. TEXAS BRED INCENTIVE PROGRAMS

2. PROGRAM FOR HORSES

16 TAC §303.93

The Texas Racing Commission (Commission) proposes an amendment to §303.93, relating to the Texas Bred Incentive Programs. The purpose of the amendment is to encourage participation in the Texas Bred Incentive Program for quarter horses, and to bring the rule into conformity with current practice at the Texas Quarter Horse Association.

The current rule establishes an application deadline for accreditation of an Accredited Texas Bred (ATB) stallion of January 31 of the year in which an ATB eligible foal is conceived. The Texas Quarter Horse Association (TQHA) may still accredit an ATB stallion after January 31, but no later than December 31, of the year in which an ATB eligible foal is conceived, provided that the application includes payment of a late fee.

The Commission proposes changing the due date for timely applications for ATB quarter horse stallions to April 15 of the year in which an ATB eligible foal is conceived. This change will encourage participation in the Texas Bred Incentive Program for quarter horses by allowing owners a longer period of time to register their stallions without payment of a late fee. It will also bring the rule into conformity with current practice at TQHA, which already waives its right to a late fee for stallion applications filed between January 31 and April 15.

Charla Ann King, Executive Secretary for the Commission, has determined that for each year of the first five years that the amended rule will be in effect, the following statements will apply:

The anticipated public benefit of the proposed amendment will be to support the breeding of quarter horses in Texas. The Texas Bred Incentive Programs provide financial incentives to owners and breeders for breeding their racing horses and greyhounds in Texas. By extending this application deadline to April 15, more quarter horse owners and breeders will be able to participate in the program at the regular fee rate without the additional expense of a late fee.

There are no foreseeable implications relating to costs or revenues for state or local governments as a result of enforcing or administering the amended rule.

Small or micro-businesses in the fields of quarter horse breeding and racing will benefit from the longer period of time in which to apply for accreditation without incurring a late fee. There are no foreseeable implications relating to costs or revenues for other small or micro-businesses as a result of enforcing or administering the amended rule.

There are no economic costs to persons required to comply with the amended rule.

There are no negative impacts upon employment conditions in this state as a result of the proposed amendment.

Comments on the proposed amendment may be submitted on or before June 19, 2006, to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendment is proposed under the Texas Civil Statutes, Article 179e, §3.02 and §3.021, which authorizes the Commission to make rules relating to all aspects of greyhound and horse racing, and §9.01, which establishes that the rules of horse breed registries establishing the qualifications of Texas-bred horses are subject to rules adopted by the Commission.

The amendment implements Article 9 of Texas Civil Statutes, Article 179e.

No other statutes, articles or codes are affected by this proposal.

§303.93.Quarter Horse Rules.

(a) (No change.)

(b) Eligibility for Accreditation.

(1) - (2) (No change.)

(3) ATB Stallions.

(A) (No change.)

(B) An application for accreditation must be on a form prescribed by TQHA and include the applicable payment as prescribed by TQHA. The deadline for filing an application for accreditation is April 15 [ January 31 ] of the year in which an ATB eligible foal is conceived. TQHA may accredit a stallion for which the application for accreditation is filed after April 15 [ January 31 ] but no later than December 31 of the year in which an ATB eligible foal is conceived, provided the application includes payment of a late fee as established by TQHA. An application for accreditation is considered timely filed if it is placed in U.S. mail and is postmarked on or before the applicable deadline.

(C) (No change.)

(c) - (f) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 4, 2006.

TRD-200602497

Mark Fenner

General Counsel

Texas Racing Commission

Proposed date of adoption: June 26, 2006

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


Chapter 321. PARI-MUTUEL WAGERING

Subchapter C. REGULATION OF LIVE WAGERING

2. DISTRIBUTION OF PARI-MUTUEL POOLS

16 TAC §321.310, §321.314

The Texas Racing Commission (Commission) proposes amendments to §321.310 and §321.314, relating to the minimum number of different wagering interests that must be present in a race before an association may offer Trifecta and Superfecta wagers on that race. The purpose of the amendments is to increase the number of wagering opportunities for the public, increase the size of the mutuel handle, and increase the size of the purse.

The current rules establish the minimum number of different wagering interests that must leave the paddock in a race for which the association is offering Trifecta and Superfecta wagering. In order for an association to offer Trifecta wagering, a minimum of six different wagering interests must leave the paddock. In order for an association to offer Superfecta wagering, a minimum of seven different wagering interests must leave the paddock. If an association offers Trifecta and/or Superfecta wagering, and fewer than the minimum number of different wagering interests required for the wager leave the paddock, the association must cancel the Trifecta and/or Superfecta wagers for that race and refund the entire amount in the pool.

The Commission proposes amending the rules to permit the board of stewards or judges (the "board") to approve Trifecta and Superfecta wagering on races with fewer than the current minimum number of different wagering interests.

The proposed amendments will not require any changes for those races in which the number of different betting interests leaving the paddock meets the current standards. However, the amendments would allow an association to offer Trifecta or Superfecta wagering on a race for which there are fewer different wagering interests than meets the current standard, but only if approved by the board. In addition, if scratches cause the number of different wagering interests to drop below the minimum number required by rule, or further below the number already approved for that race by the board, the board would retain the authority to order the association to cancel the wager and refund the entire pool. In determining whether to cancel the wager and refund the pool, the board will consider the affect the decrease in the number of interests has on the integrity of the wager.

Charla Ann King, Executive Secretary for the Commission, has determined that for each year of the first five years that the amended rules will be in effect, the following statements will apply:

The anticipated public benefit of the proposed amendments will be to increase the number of wagering opportunities for the public, increase the size of the mutuel handle, and increase the size of the purses for the horsemen.

There are no foreseeable implications relating to costs or revenues for local governments as a result of enforcing or administering the amended rules.

There is likely to be a small increase in revenue to state government as a result of enforcing or administering the amended rules. This increase will result from the larger pari-mutuel handles, and the increase in taxes that ensue from those larger handles. There are no foreseeable implications relating to costs for state government as a result of enforcing or administering the amended rules.

There are no foreseeable implications relating to costs or revenues for other small or micro-businesses as a result of enforcing or administering the amended rules.

There are no economic costs to persons required to comply with the amended rules.

There are no negative impacts upon employment conditions in this state as a result of the proposed amendments.

Comments on the proposed amendments may be submitted on or before June 19, 2006, to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711-2080.

The amendments are proposed under the Texas Civil Statutes, Article 179e, §3.02 and §3.021, which authorizes the Commission to make rules relating to all aspects of greyhound and horse racing, and §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.

The amendments implement Article 11 of Texas Civil Statutes, Article 179e.

No other statutes, articles or codes are affected by this proposal.

§321.310.Trifecta.

(a) - (b) (No change).

[(c) A coupled entry or mutuel field may not start in a horse race with trifecta wagering unless there are six or more betting interests.]

(c) [ (d) ] If after wagering has begun an animal entered in a trifecta race is scratched or otherwise prevented from racing, all money wagered on the affected animal shall be deducted from the trifecta pool and refunded to the holders of tickets on the affected animal.

(d) [ (e) ] If no ticket is sold on the winning combination, the net pool shall be distributed equally among the holders of tickets selecting the animals finishing first and second.

(e) [ (f) ] If no ticket is sold that requires distribution under subsection (d) [ (e) ] of this section, the net pool shall be distributed equally among the holders of tickets selecting the animals finishing first and third.

(f) [ (g) ] If no ticket is sold that requires distribution under subsections (d) [ (e) ] or (e) [ (f) ] of this section, the net pool shall be distributed equally among the holders of tickets selecting the animal finishing first.

(g) [ (h) ] If no ticket is sold requiring distribution under subsections (d) - (f) [ (e) - (g) ] of this section, the net pool shall be distributed equally among the holders of tickets selecting the animals finishing second and third.

(h) [ (i) ] If no ticket is sold requiring distribution under subsections (d) - (g) [ (e) - (h) ] of this section, the net pool shall be distributed equally among the holders of tickets selecting the animal finishing second.

(i) [ (j) ] If no ticket is sold requiring distribution under subsections (d) - (h) [ (e) - (i) ] of this section, the net pool shall be distributed equally among the holders of tickets selecting the animal finishing third.

(j) [ (k) ] If a trifecta race ends in a dead heat for first place, the winning combination shall include the first two animals as finishing in either first or second and the animal finishing third. If a trifecta race ends in a dead heat for second place, the winning combinations shall include the animal finishing first and the two animals finishing in a dead heat as finishing either second or third. If a trifecta race ends in a dead heat for third place, the winning combinations include the animals finishing first and second and any of the animals finishing in the dead heat as finishing third. In all combinations paid under this subsection, the net pool shall be divided into separate pools, calculated as a place pool, and paid out accordingly.

(k) [ (l) ] If a trifecta race ends in a triple dead heat or double dead heats, the net pool shall be divided by the number of all win, place, and show combinations formed, calculated as separate pools, and paid out accordingly.

(l) [ (m) ] If no ticket is sold that would require distribution under this section, the trifecta is considered "no contest" and the association shall carry forward all money wagered in the trifecta pool to the next consecutive trifecta pool.

(m) An association shall not offer trifecta wagering on any race placed on the official program that does not have six or more different wagering interests unless approved by the board of stewards or judges.

(n) In the event scratches cause the number of different wagering interests to fall below six, or below an amount previously approved by the board of stewards or judges, the board of stewards or judges may order the wager to be canceled and the pool to be refunded if deemed in the interest of wagering integrity.

[(n) If fewer than six horses of different betting interests leave the paddock for a race on which there is trifecta wagering, the association shall cancel the trifecta wager for that race and refund the entire amount in the pool.]

§321.314.Superfecta.

(a) - (f) (No change).

(g) An association shall not offer superfecta wagering on any race placed on the official program that does not have seven or more different wagering interests unless approved by the board of stewards or judges. [ A coupled entry or mutuel field may not start in a horse race with superfecta wagering unless there are seven or more betting interests. ]

(h) In the event scratches cause the number of different wagering interests to fall below seven, or below an amount previously approved by the board of stewards or judges as outlined in subsection (g) of this section, the board of stewards or judges may order the wager to be canceled and the pool to be refunded if deemed in the interest of wagering integrity. [ If fewer than seven horses of different betting interests leave the paddock for a race in which there is superfecta wagering, the association shall cancel the superfecta wager for that race and refund the entire amount in the pool. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 4, 2006.

TRD-200602498

Mark Fenner

General Counsel

Texas Racing Commission

Proposed date of adoption: June 26, 2006

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