TITLE 16. ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 61. COMBATIVE SPORTS

16 TAC §§61.20 - 61.22, 61.40, 61.42, 61.43, 61.47, 61.48, 61.80, 61.105, 61.111, 61.120

The Texas Department of Licensing and Regulation ("Department") proposes amendments to existing rules at Title 16, Texas Administrative Code (TAC), §§61.20 - 61.22, 61.40, 61.42, 61.43, 61.47, 61.48, 61.80, 61.105, 61.111, and 61.120, regarding the Combative Sports program.

These proposed rule changes are necessary to implement changes in law enacted by House Bill 1293, 80th Legislature, and to make appropriate clarifications in the rules for combative sports. The provisions of House Bill 1293 become effective on September 1, 2007 and require the Commission of Licensing and Regulation to adopt rules necessary to implement the new legislation by December 1, 2007. These proposed rule changes were recommended by the Medical Advisory Committee at its meeting on July 27, 2007.

The Department proposes to amend §61.20(a) to add event coordinators to the list of combative sports professionals that must be licensed by the Department.

Section 61.21(b) is amended to reflect that referee licenses will be endorsed to show the class of bouts that the referee may officiate. Subsection (b) is further amended by changing the designations identified in subsection (b)(2) to "K" for kick-boxing and subsection (b)(3) to "M" for mixed martial arts. Subsection (e) is amended to delete a reference to an effective date of the subsection, which has now passed. Subsection (f) is deleted in its entirety to remove the requirement that, in order to obtain or renew a license, referees must provide the Department with the results of a visual acuity test performed by an optometrist or ophthalmologist.

The Department proposes to amend §61.22 by adding a new subsection (b) to require that judges, in order to obtain or renew a license, provide the Department with the results of a visual acuity test performed by an optometrist or ophthalmologist.

The Department proposes to amend §61.40(a)(2) to increase the minimum insurance coverage that is required to be provided by an event promoter so that the coverage required for injuries sustained in an event is $50,000 and for payment in the event of death is $100,000. Further, it is proposed that §61.40(b)(2) be amended by adding a provision that makes the fees paid by a promoter payable 21 days in advance of the events and non-refundable when a promoter has cancelled or postponed two successive events. Subsection 61.40(b)(14) is deleted to remove the requirement that a promoter file its contracts with contestants prior to advertising a championship or title contest. The proposed amendments add new subsection §61.40(b)(16) to require a promoter to supervise its employees and the event coordinators to assure that the events are conducted in compliance with the Department's rules and applicable statutes. Subsection 61.40(b)(17) is added to require a promoter to ensure the adequacy of the advertisements for an event.

The Department proposes to amend §61.42(g) to include eating as an activity in which judges may not engage in during the course of an event.

The Department proposes to amend §61.43(i)(1) to include electrolytes as one of the supplies that are allowed in a contestant's corner during a match. This amendment as proposed will require that a container must be brought to the ring in the manufacturer's sealed container and may only be opened in the presence of a Department representative.

The Department proposes to amend §61.47(a) to allow optometrists to perform ophthalmologic medical examinations in addition to ophthalmologists, as is currently provided, in order to obtain comments and information on the appropriateness of this amendment. This subsection is also to be amended to require that examining physicians, ophthalmologists, or optometrists be licensed in a state, district, or territory of the United States. It is also proposed to amend this subsection so that a contestant with the Hepatitis B virus may prove that they are not acutely or chronically infected with such virus by any medical testing procedure that establishes the absence of Hepatitis B infectivity. New subsection (d) is added to §61.47 to require that contestants report to the weigh-in at the scheduled time. The remaining subsections are re-lettered appropriately.

The Department proposes to amend §61.48(e) to increase the minimum insurance coverage that is required to be provided by an amateur combative sports association (ACSA) so that the coverage required for injuries sustained in an event is $50,000 and for payment in the event of death is $100,000. Subsection 61.48(h)(3) is amended to require that the physicians provided for an event by an ASCA must be registered by the Department. Since physicians that register with the Department are required to be licensed, this subsection is also amended to delete the requirement that the physician must be licensed.

The Department proposes to amend §61.80(a) to add a new paragraph (11) to provide that the annual fee for event coordinator licensure is $200.

The Department proposes to amend §61.105(d) by adding the punctuation marks "--" between the categories of weigh-in weight differences and the weight difference allowance for such category. Section 61.105 is also amended to include a new subsection (g)(1) through (15) to add weight divisions for boxing and kick boxing. Also, this new subsection allows bouts between contestants of different weight classes so long as the weight differences are within the variances identified in subsection (d).

Section 61.111(h)(2) - (9) is amended to change the word "pounds" to the abbreviation "lbs." to be consistent with other rule sections. The Department proposes to delete §61.111(s)(2) to remove the prohibition on downward punching while the opponent's head is touching the mat. Section 61.111(s)(7) is deleted to remove the prohibition on kicking an opponent while down on the mat. Section 61.111(s)(27) is proposed to be amended to prohibit kicking to the kidney with the heel. These amendments are proposed to make the mixed martial arts contest rules consistent with other jurisdictions that hold these matches. By being consistent with other jurisdictions, it will eliminate confusion that can be created for contestants regarding permissible action during the course of the match which, in turn, can cause hesitation that gives an advantage to an opponent.

The Department proposes to amend §61.120(c). Currently, §61.120(c)(1) through (4) requires that the Medical Advisory Committee include a doctor from each of four designated fields of medical specialization. Due to the continuing difficulty of obtaining volunteers to serve on this committee with these specific specializations, it is proposed to amend this section to require that the Medical Advisory Committee include four medical doctors licensed in Texas.

William H. Kuntz, Jr., Executive Director, has determined that, for the first five-year period the proposed amendments are in effect, there will be some additional costs to the Department in registering and regulating the new category of event coordinators. There will also be some additional costs to the Department due to increased review of provider qualifications in the application and renewal process. These additional costs are not expected to be significant and should be absorbed within existing Department resources. There will also be some additional revenue from the additional fees established in §61.80(a)(11). The Department does not anticipate that the additional revenue will be significant, and the amount should be sufficient to offset additional costs to the state. The Department anticipates that the total number of registered event coordinators will be no more than 20. There will be no cost to local government as a result of enforcing or administering the proposed rules.

Mr. Kuntz also has determined that, for each year of the first five-year period the amendments are in effect, the public will benefit from the additional oversight of event coordinators. Additionally, the public will benefit from the proposed amendments to the rules that provide greater clarity and, therefore, certainty in the administration of the combative sports program.

Mr. Kuntz has determined that there will be some additional costs to persons who are required to comply with the proposed amendments, including small or micro-businesses. Event coordinators, which may be small or micro-businesses, will now be required to pay an initial registration fee of $200 and an annual renewal fee of $200. The amount of any such costs is unknown. Promoters will incur increased costs to purchase insurance that meets the increased coverage amounts. The amount of the increased costs for insurance is expected to be minimal.

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

The amendments are proposed under Texas Occupations Code, Chapters 51 and 2052, which authorize the Department to adopt rules as necessary to implement these chapters. In particular, the amendments are proposed to implement provisions of House Bill 1293, 80th Legislature.

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

§61.20.General Licensing Requirements.

(a) Professional combative sports contestants, promoters, referees, judges, seconds, matchmakers, managers, timekeepers, [ and ] ringside physicians , and event coordinators who officiate or participate in a regulated event, other than a regulated amateur event, authorized by the Code must be licensed or registered by the Executive Director.

(b) - (e) (No change.)

§61.21.Licensing Requirements--Referees.

(a) (No change.)

(b) Referee licenses will be endorsed showing each class of bouts in which they may officiate with one or more of the following legends:

(1) B (Boxing);

(2) K [ KB ] (Kick-boxing); and

(3) M [ MMA ] (Mixed martial arts).

(c) - (d) (No change.)

(e) Referees [ After February 28, 2007, referees ] must have an endorsement for a class in order to referee events in that class.

[ (f) To obtain or renew a license, a referee must provide test results showing visual acuity in each eye of at least 20/40 corrected. The test must have been performed by a licensed Optometrist or licensed Ophthalmologist no more than one year before the application for licensure or license renewal is filed.]

§61.22.Licensing Requirements--Judges.

(a) To qualify for a new license as a judge, an applicant must:

(1) be at least 21 years of age;

(2) not have been convicted of a felony; and,

(3) demonstrate the ability to perform the functions of a judge by:

(A) having observed and completed score cards for all contests in at least five events while under the supervision of the Department and scoring the contests in keeping with standards established by the Executive Director; or,

(B) meeting one or more of the following:

(i) having at least three years active experience as a judge and/or referee by having officiated in at least ten combative sporting events per year;

(ii) being currently licensed as a referee in a state that the Executive Director has determined has licensing requirements that are equivalent to Texas' requirements; or

(iii) having formerly held a Texas judge's license that lapsed in good standing.

(b) To obtain or renew a license, a judge must provide test results showing visual acuity in each eye of at least 20/40 corrected. The test must have been performed by a licensed Optometrist or licensed Ophthalmologist no more than one year before the application for licensure or license renewal is filed.

§61.40.Responsibilities of the Promoter.

(a) Bond and Insurance Requirements for Promoters

(1) (No change.)

(2) The promoter shall provide insurance and pay all deductibles for contestants, to cover medical, surgical and hospital care with a minimum limit of $50,000 [ $20,000 ] for injuries sustained while participating in a contest and $100,000 [ $50,000 ] to a contestant's estate if he dies of injuries received while participating in a contest. The insurance premium and deductibles shall not be deducted from the contestant's purse. At least ten calendar days before an event the promoter shall provide to the Department for each event sponsored, a certificate of insurance showing proper coverage. The promoter shall supply to those participating in the event the proper information for filing a medical claim.

(b) A Promoter shall:

(1) (No change.)

(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. Promoters who have cancelled or postponed two events in sequence after having obtained Departmental approval for the events will be required to pay the permit fee set out in Rule 61.80(b) of this title at the time the 21 day notice is filed. The fee will not be refunded.

(3) - (13) (No change.)

(14) [ Prior to advertising a championship or title contest, file with the Department the contestants' contracts. ]

(14) [ (15) ] Ensure that the rules set forth below regarding equipment and gloves that apply to a particular type of event are followed and that each event is conducted in compliance with the following:

(A) The ring apron shall be kept clear at all times of objects including, but not limited to: cameras, microphones, and advertisements. A separate camera platform at a neutral corner of the ring for use by cameramen may be provided. Cameramen may be allowed on the ring apron during rest periods, between bouts, or at the discretion of the Executive Director. No seats may be sold at the ring apron.

(B) The Technical Zone shall be set up for the Department, according to the Executive Director's instructions.

(C) All emergency medical personnel and portable medical equipment shall be located within the Technical Zone during the event. There must be a resuscitator, oxygen, stretcher, a certified ambulance, and an emergency medical technician on site for all contests. The Executive Director may require additional medical personnel and equipment depending on the number of matches scheduled.

(D) The judges' chairs shall be high enough that their shoulders shall be no lower than the ring floor. Physician ringside seats shall be in the neutral corner(s).

(E) There shall be at least one, but no more than three, authorized promoter representative(s) at ringside at all times. Only the promoter's representative(s), Department officials, the press, physicians, representatives of sanctioning bodies, and judges shall sit at the ringside tables. For purposes of this rule, an event coordinator is a representative of the promoter.

(15) [ (16) ] In the event that a person who is intended to be a Contestant is not licensed at the time of the weigh-in it is the promoter's responsibility to pay the licensing fee by check ,or money order. No cash will be accepted.

(16) Supervise the activities of employees and event coordinators to assure that promoted events are conducted in compliance with these rules and applicable statutes.

(17) Ensure that all advertising concerning an event he promotes accurately describes the event and does not include the names of any person or entity, other than the promoter, as a presenter of the event.

(c) - (e) (No change.)

§61.42.Responsibilities of Judges.

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

(g) A judge will at all times during a contest maintain focus on the contest even during rest periods. In order to maintain focus, judges will not engage in distractions including but not limited to: eating, talking, taking photographs, or carrying materials not related to the contest.

§61.43.Responsibilities of Seconds.

(a) - (h) (No change.)

(i) A second shall be responsible for a contestant's corner supplies.

(1) Approved supplies are ice, which must be in an ice bag or Department approved container, water, cotton swabs, gauze pads, clean towels, Adrenalin 1:10,000, Avitene, Thromblin, petroleum jelly or other surgical lubricant, medical diachylon tape, [ and ] Enswel , and electrolytes. Electrolytes must be brought to the ring in the manufacturer's sealed container. Electrolytes must be opened for the first time in the presence of a representative of the Department . All coagulants shall be in a container with the proper manufacturer's label and not contaminated by any foreign substance. [ The use of unapproved substances may result in disciplinary action. ]

(2) All containers shall be properly labeled with the manufacturer's label and not contaminated by any foreign substance.

(3) The use of an unapproved substance may result in disciplinary action.

(4) Only water and electrolytes shall be permitted for hydration of a contestant between rounds. Honey, glucose, or sugar, or any other substance may not be mixed with the water. [ Electrolyte solutions are prohibited. ]

(5) Excessive use of any lubricant on the contestant's body, arms or face is prohibited.

(j) - (k) (No change.)

§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 or optometrist proof of having passed a comprehensive medical examination within thirty days of the date the application is signed by the applicant. Examining physicians, optometrists, and ophthalmologists must be licensed by a state, district or territory of the United States of America. The exam must include an ophthalmologic medical examination completed by an Ophthalmologist or Optometrist [ 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 by testing the Hepatitis B surface antigen for a non-reactive result, or by other medically acceptable testing procedure that establishes the absence of Hepatitis B infectivity .

(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 report to the weigh in at the scheduled time.

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

(f) [ (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.

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

(h) [ (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.

(i) [ (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.

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

(k) [ (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.

(l) [ (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.

(m) [ (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.

(n) [ (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.

(o) [ (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.

(p) [ (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.

(q) [ (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.

(r) [ (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.

(s) [ (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) - (d) (No change.)

(e) An ACSA shall provide insurance and pay all deductibles for contestants, to cover medical, surgical and hospital care with a minimum limit of $50,000 [ $20,000 ] for injuries sustained while participating in a contest and $100,000 [ $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) - (g) (No change.)

(h) An ACSA conducting an event shall:

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

(3) Provide two [ licensed ] physicians, that are registered by the Department for each event.

(4) - (11) (No change.)

(i) - (j) (No change.)

§61.80.Fees.

(a) The annual fee shall accompany each license or registration application or renewal as follows.

(1) - (10) (No change.)

(11) Event Coordinator--$200

(b) - (c) (No change.)

§61.105.Weight Categories and Weigh-in--Boxing and Kickboxing.

(a) - (c) (No change.)

(d) No contestant may engage in a contest where the weigh-in weight difference between contestants exceeds the allowance shown in the following "WEIGHT ALLOWANCE" schedule:

(1) 112 lbs. or under -- 3 lbs.

(2) 113-118 lbs. -- 4 lbs.

(3) 119-126 lbs. -- 5 lbs.

(4) 127-135 lbs. -- 6 lbs.

(5) 136-147 lbs. -- 8 lbs.

(6) 148-160 lbs. -- 10 lbs.

(7) 161-175 lbs. -- 12 lbs.

(8) 176- 200 [ 190 ] lbs. -- 15 lbs.

(9) 201 [ 191 ] lbs. or over--No limit

(e) - (f) (No change.)

(g) Weight Divisions. The weight classes for boxing and kickboxing contests or exhibitions are shown in the schedule below. A contestant in a weight class may participate in a bout with a contestant in an adjacent weight class so long as their weight difference falls within the weight allowance shown in subsection (d) of this section above for the weight of the contestant weighing the least.

(1) Flyweight--up to 112 lbs.

(2) Super Flyweight--over 112 to 115 lbs.

(3) Bantamweight--over 115 to 118 lbs.

(4) Super Bantamweight--over 118 to 122 lbs.

(5) Featherweight--over 122 to 126 lbs.

(6) Super Featherweight--over 126 to 130 lbs.

(7) Lightweight--over 130 to 135 lbs.

(8) Super Lightweight--over 135 to 140 lbs.

(9) Welterweight--over 140 to 147 lbs.

(10) Super Welterweight--over 147 to 154 lbs.

(11) Middleweight--over 154 to 160 lbs.

(12) Super Middleweight--over 160 to 168 lbs.

(13) Light Heavyweight--over 168 to 175 lbs.

(14) Cruiserweight--over 175 to 200 lbs.

(15) Heavyweight--over 200 lbs.

§61.111.Mixed Martial Arts.

(a) - (g) (No change.)

(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 lbs. [ pounds ]

(3) Featherweight--over 135 to 145 lbs. [ pounds ]

(4) Lightweight--over 145 to 155 lbs. [ pounds ]

(5) Welterweight--over 155 to 170 lbs. [ pounds ]

(6) Middleweight--over 170 to 185 lbs. [ pounds ]

(7) Light Heavyweight--over 185 to 205 lbs. [ pounds ]

(8) Heavyweight--over 205 to 265 lbs. [ pounds ]

(9) Super Heavyweight--over 265 lbs. [ pounds ]

(i) - (r) (No change.)

(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.]

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

(3) [ (4) ] Spitting or biting.

(4) [ (5) ] Striking or grabbing the throat area.

(5) [ (6) ] Grabbing the trachea.

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

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

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

(8) [ (10) ] Hair pulling.

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

(10) [ (12) ] Attacking on the break.

(11) [ (13) ] Attacking after the bell has sounded.

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

(13) [ (15) ] Holding the fence or the ropes.

(14) [ (16) ] Using abusive language in the fighting area.

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

(16) [ (18) ] Eye gouging of any kind.

(17) [ (19) ] Fish hooking.

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

(19) [ (21) ] Small joint manipulation.

(20) [ (22) ] Striking to the spine or the back or the head.

(21) [ (23) ] Striking downward using the point of the elbow.

(22) [ (24) ] Clawing, pinching, or twisting the flesh.

(23) [ (25) ] Grabbing the clavicle.

(24) [ (26) ] Stomping a grounded opponent.

(25) Kicking to the kidney with the heel.

[ (27) Kidney strikes of any kind.]

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

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

(28) [ (30) ] Flagrantly disregarding the instructions of the referee.

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

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

(31) [ (33) ] Throwing in the towel during competition.

(32) [ (34) ] Interference by the corner.

(t) (No change.)

§61.120.Medical Advisory Committee.

(a) The presiding officer of the Texas Commission of Licensing and Regulation, with the approval of the Commission, shall appoint a medical advisory committee to advise the Department concerning health issues for contestants.

(b) The presiding officer of the advisory committee shall be appointed by the presiding officer of the Texas Commission of Licensing and Regulation, with the approval of the Commission.

(c) The Committee shall be composed of seven members:

(1) four members shall be medical doctors licensed by the State of Texas;

[ (1) one member shall be a trauma specialist;]

[ (2) one member shall be an ophthalmologist;]

[ (3) one member shall be a sports doctor;]

[ (4) one member shall be a neurologist;]

(2) [ (5) ] one member shall be an emergency medical technician; and

(3) [ (6) ] two public members.

(d) (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 August 13, 2007.

TRD-200703556

Brian Francis

Deputy Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: September 23, 2007

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


Part 8. TEXAS RACING COMMISSION

Chapter 303. GENERAL PROVISIONS

Subchapter D. TEXAS BRED INCENTIVE PROGRAMS

Division 2. PROGRAM FOR HORSES

16 TAC §303.92

The Texas Racing Commission proposes an amendment to 16 TAC §303.92, relating to the Thoroughbred Rules under the Texas Bred Incentive Programs. The current rule provides that Breeder's Awards will be paid only on an accredited Texas-bred Thoroughbred whose dam was accredited with the breed registry prior to foaling the subject horse. The proposed amendment would also allow the payment of Breeder's Awards on an accredited Texas-bred Thoroughbred if the dam is accredited with the breed registry within the same calendar year of foaling the subject horse.

Charla Ann King, Executive Secretary for the Texas Racing Commission, has determined that for the first five year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing the amendment.

Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit will be to encourage participation in the Texas Bred Incentive Programs and contribute to the improved quality of Texas-bred Thoroughbred horses.

There is no anticipated economic cost to an individual required to comply with the proposed amendment.

There are no foreseeable implications relating to costs for small or micro-businesses as a result of enforcing or administering the proposed amendment. Some small or micro-businesses will benefit from the amendment by receiving payment of Breeder's Awards for Thoroughbred horses that would not be eligible under the Texas Bred Incentive Programs under the current rule.

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

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.

The amendment is proposed under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to make rules relating exclusively to horse and greyhound racing, and §9.01, which provides that the breed registries' rules establishing qualifications of Texas-bred horses are subject to Commission approval.

The amendment implements Texas Revised Civil Statutes, Article 179e.

§303.92.Thoroughbred Rules.

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

(c) Procedure for Payment of Awards.

(1) Conditions precedent for payment of awards are:

(A) (No change.)

(B) Breeder's Awards will be paid only on an accredited Texas-bred Thoroughbred whose dam was accredited with the breed registry either prior to foaling the subject horse or within the same calendar year of foaling the subject horse and is covered by the definition set forth in §1.03(21) of the Act. A horse covered by §1.03(21)(C) of the Act is eligible for only one-half of the incentives awarded pursuant to §6.08(f) and (j) of the Act.

(C) - (F) (No change.)

(2) - (5) (No change.)

(d) (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 August 10, 2007.

TRD-200703529

Mark Fenner

General Counsel

Texas Racing Commission

Earliest possible date of adoption: September 23, 2007

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


Chapter 321. PARI-MUTUEL WAGERING

Subchapter D. SIMULCAST WAGERING

Division 3. SIMULCASTING AT HORSE RACETRACKS

16 TAC §321.505, §321.509

The Texas Racing Commission proposes amendments to 16 TAC §321.505 and §321.509. Section 321.505 relates to the division among the various breeds of horses of the purse revenue and the Texas Bred Incentive Program funds that are generated from simulcasting. Section 321.509 relates to the distribution of funds in the escrowed purse account to each track and among the various breeds of horses.

The changes to §321.505 identify criteria that the Commission may consider when evaluating an association's proposed division of purse revenue. If the Commission determines that the association's proposal does not accord reasonable access to races for all breeds of horses, the Commission may require the association to submit additional information, require the association to submit a revised recommendation, or substitute its own division of purse revenue. The changes also provide that an association may submit a signed agreement between it and all the recognized representatives of horse owners, trainers and breeders in lieu of the documentation that the association would otherwise have to submit to support its proposal.

The changes to §321.505 also specify the criteria the Commission may consider when determining the percentages by which Texas Bred Incentive Program funds generated from simulcasting are divided. The changes provide that the official horse breed registries may jointly submit a signed agreement regarding the percentages for the Commission's consideration and approval.

The changes to §321.509 identify criteria that the Commission may consider when evaluating an association's proposed division of revenue within the escrowed purse account. If the Commission determines that the association's proposal does not accord reasonable access to races for all breeds of horses, the Commission may require the association to submit additional information, require the association to submit a revised recommendation, or substitute its own division of revenue within the escrowed purse account. The changes also provide that an association may submit a signed agreement between it and all the recognized representatives of horse owners, trainers and breeders in lieu of the documentation that the association would otherwise have to submit to support its proposal.

Charla Ann King, Executive Secretary for the Texas Racing Commission, has determined that for the first five year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing the amendment.

Ms. King has also determined that for each year of the first five years the amendment is in effect the anticipated public benefit will be that the criteria for evaluating these revenue divisions will be clearly established and known by all parties.

There is no anticipated economic cost to an individual required to comply with the proposed amendment.

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

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

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing Commission, at P.O. Box 12080, Austin, Texas 78711-2080, telephone (512) 833-6699, or fax (512) 833-6907.

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

The amendments implement Texas Civil Statutes, Article 179e.

§321.505.Allocation of Purses and Funds for Texas Bred Incentive Programs.

(a) Purses.

(1) An association shall recommend the percentages by which it will divide the purse revenue generated from simulcasting among the various breeds of horses. The percentages are subject to the approval of the Commission.

(2) Before recommending the percentages, the association shall negotiate with [ receive information from ] the organizations recognized by the Commission or in the Act as representatives of horse owners, trainers, and/or breeders.

(3) When requesting Commission approval of the percentages, the association shall present studies, statistics, or other documentation supporting the association's application of the criteria in paragraph (4) of this subsection. [ to support its proposed allocation of funds. ]

(4) The Commission may consider the following criteria in evaluating whether to approve the association's proposed division of purse revenue:

(A) local public interest in each breed as demonstrated by, but not limited to, the following factors:

(i) live handle by breed;

(ii) simulcast import handle by breed;

(iii) live attendance at the racetracks;

(iv) season seat sales;

(v) group sales activity;

(vi) sponsor interest; and

(vii) market surveys.

(B) earnings generated by the association from each breed;

(C) national public interest in each breed as determined by the live simulcast export handle of each Texas meet;

(D) racetrack race date request and opportunities given to each breed; and

(E) availability of and ability to attract competitive horses.

(5) If the Commission determines that the association's proposed division of purse revenue is inconsistent with the association's obligation to accord reasonable access to races for all breeds of horses, the Commission may:

(A) require the association to submit additional information supporting its recommendation for consideration at the next Commission meeting;

(B) reject the association's recommendation and require the association to submit a new recommendation for consideration at the next Commission meeting; or

(C) reject the association's recommendation and approve an alternate division of purse revenue as determined by the Commission.

(6) In lieu of the process outlined in paragraphs (3) - (5) of this subsection, the association may submit a signed agreement between the association and the organizations referenced in paragraph (2) of this subsection for the Commission to consider for approval. For the Commission to approve the agreement, the agreement must:

(A) delineate the percentages by which the association will divide the purse revenue generated from simulcasting among the various breeds of horses; and

(B) be signed by the association and all organizations referenced in paragraph (2) of this subsection.

(b) Texas Bred Incentive Program Funds.

(1) The Commission shall determine the percentages by which Texas Bred Incentive Program funds generated from simulcasting are divided among the various breeds of horses.

(2) In determining the percentages by which Texas Bred Incentive Program funds generated from simulcasting are divided, the Commission may consider the following criteria:

(A) the amount of participation in live racing by each of the breeds;

(B) the activities of the breed registries to promote their breed for racing and breeding;

(C) the national public interest in each breed as determined by the live simulcast export handle of each Texas meet;

(D) the effect of the proposed allocation on the state's agricultural racing horse breeding industry;

(E) the effect of the proposed allocation on the state's agricultural racing horse training industry;

(F) the amount of Texas Bred Incentive Programs funds from simulcasting generated by each breed.

(3) [ (2) ] Before determining the percentages, the Commission shall provide an opportunity for [ receive information from ] the official horse breed registries designated in the Act to present information regarding the criteria specified in paragraph (2) of this subsection and any other information that the registries believe may be useful to the Commission. [ and the associations. In determining the percentages the Commission shall consider the effect of the proposed percentages on the state's agricultural horse breeding and horse training industry. ]

(4) In lieu of the process outlined in paragraphs (2) and (3) of this subsection, a signed agreement between the organizations referenced in paragraph (3) of this subsection may be submitted to the Commission for consideration and approval. For the Commission to approve the agreement, the agreement must:

(A) delineate the percentages by which the Texas Bred Incentive Program funds generated from simulcasting are divided among the various breeds of horses; and

(B) be signed by all organizations referenced in paragraph (3) of this subsection.

§321.509.Escrowed Purse Account.

(a) At least once a year, the Commission shall distribute all funds accrued in the escrowed purse account created by the Act, §6.091(e). The executive secretary shall establish a deadline for receiving requests for distribution from the account and publicize that deadline to the horse racetrack associations at least 30 days before the deadline. The associations when requesting for distribution from the account shall also recommend the percentages by which it will divide the escrowed purse account revenue among the various breeds of horses.

(b) The Commission shall determine the amount of the distribution to each racetrack in accordance with the standards set forth in the Act, §6.091(e) and (f).

(c) The percentages by which an association will divide the escrowed purse account revenue among the various breeds of horses is subject to the approval of the Commission. When requesting Commission approval of the percentages, the association shall present studies, statistics, or other documentation to support its proposed division of escrowed purse account revenue. The Commission may consider the following criteria when evaluating the association's studies, statistics, or other documentation submitted to support its proposed division of escrowed purse account revenue before granting its approval:

(1) local public interest in each breed as demonstrated by, but not limited to, the following factors:

(A) simulcast import handle by breed;

(B) live handle by breed; and

(C) live attendance.

(2) earnings generated by the association from each breed;

(3) racetrack race date request and opportunities given to each breed;

(4) statewide need by breed; and

(5) national public interest in each breed as determined by the live simulcast export handle of each Texas meet.

(d) If the Commission determines that the association's proposed division of the escrowed purse account revenue is inconsistent with the association's obligation to accord reasonable access to races for all breeds of horses, the Commission may:

(1) require the association to submit additional information supporting its recommendation for consideration at the next Commission meeting;

(2) reject the association's recommendation and require the association to submit a new recommendation for consideration at the next Commission meeting; or

(3) reject the association's recommendation and approve an alternate division of the escrowed purse account revenue as determined by the Commission.

(e) In lieu of the process outlined in subsections (c) and (d) of this section, a signed agreement between the association and the organizations recognized by the Commission or in the Act as representatives of horse owners, trainers, and/or breeders maybe submitted to the Commission for consideration an approval. For the Commission to approve the agreement, the agreement must:

(1) delineate the percentages by which the escrowed purse account revenue received by the association will be divided amongst the various breeds of horses; and

(2) be signed by all organizations recognized by the Commission or in the Act as representatives of horse owners, trainers, and/or breeders.

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 August 10, 2007.

TRD-200703528

Mark Fenner

General Counsel

Texas Racing Commission

Earliest possible date of adoption: September 23, 2007

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