PART 8. TEXAS RACING COMMISSION
SUBCHAPTER A. LICENSING PROVISIONS
DIVISION 1. OCCUPATIONAL LICENSES
The Texas Racing Commission (Commission) adopts amendments to 16 TAC §311.3, concerning Information for Background Investigation, with changes to the proposed text as published in the May 2, 2008, issue of the Texas Register (33 TexReg 3531).
Section 311.3 requires applicants for a new or renewed license to submit fingerprints along with their application documents so that the Commission may conduct a criminal history check. Section 311.3 also provides certain exceptions to the requirement to submit fingerprints, including an exception for those who have submitted fingerprints within the previous five years. The adopted changes to §311.3 reduce this exception from a five year period to a three year period.
The amendments are adopted with a change from the proposal as published. Section 311.3(a)(1) is modified to clarify that the Department of Public Safety may require applicants to submit fingerprints in a format other than on a paper form.
The Commission received no comments in response to the proposed amendments.
The amendments are adopted under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting horse or greyhound racing involving wagering and other rules to administer the Texas Racing Act, and §11.01, which requires the Commission to adopt rules to regulate pari-mutuel wagering on greyhound and horse racing.
§311.3.Information for Background Investigation.
(a) Fingerprint Requirements and Procedure.
(1) Except as otherwise provided by this section, an applicant for a license must submit with the application documents a set of the applicant's fingerprints in a form prescribed by the Department of Public Safety. If the applicant is not an individual, the applicant must submit a set of fingerprints on the above-referenced forms for each individual who:
(A) serves as a director, officer, or partner of the applicant;
(B) holds a beneficial ownership interest in the applicant of 5.0% or more; or
(C) owns any interest in the applicant, if requested by the Department of Public Safety.
(2) The fingerprints must be taken by a peace officer or a person authorized by the Commission.
(3) Not later than 10 business days after the day the Commission receives the sets of fingerprints under this section, the Commission shall forward the fingerprints to the Department of Public Safety.
(4) A person who desires to renew an occupational license must have submitted a set of fingerprints pursuant to this section within the three years prior to renewal or provide a new set of fingerprints for classification by the Federal Bureau of Investigation.
(5) Waiver.
(A) Pursuant to Texas Civil Statutes, Article 179e, §7.10, the Commission will waive the fingerprint requirements in this section for an applicant for an owner or trainer license if:
(i) the individual presents proof of a valid owner or trainer license issued in a racing jurisdiction that requires the submission of fingerprints to the Federal Bureau of Investigation and the Commission verifies that fingerprints were submitted by that jurisdiction for the applicant within the three years preceding the date of the application in Texas; and
(ii) the applicant's permanent residence is outside the State of Texas.
(B) This subsection does not apply to an applicant who:
(i) has a criminal history in another state, as revealed by a report by the Federal Bureau of Investigation or other reliable criminal information sources;
(ii) maintains a residence or is employed, whether self-employed or otherwise, in Texas; or
(iii) obtains a license badge issued by the Commission which gives the applicant access to a restricted area on association grounds.
(C) Notwithstanding a waiver of the fingerprint requirements under this subsection, the Commission reserves the right, at its sole discretion, to require the submission of fingerprints after a license has been issued.
(b) Criminal History Record.
(1) For each individual who submits fingerprints under subsection (a) of this section, the Commission shall obtain a criminal history record maintained by the Texas Department of Public Safety and the Federal Bureau of Investigation.
(2) The Commission may obtain criminal history record information from any law enforcement agency.
(3) Except as otherwise provided by this subsection, the criminal history record information received under this section from any law enforcement agency that requires the information to be kept confidential as a condition of release of the information is for the exclusive use of the Commission and its agents and is privileged and confidential. The information may not be released or otherwise disclosed to any person or agency except in a criminal proceeding, in a hearing conducted by the Commission, on court order, or with the consent of the applicant. Information that is in a form available to the public is not privileged or confidential under this subsection and is subject to public disclosure.
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 June 26, 2008.
TRD-200803361
Mark Fenner
General Counsel
Texas Racing Commission
Effective date: July 16, 2008
Proposal publication date: May 2, 2008
For further information, please call: (512) 833-6699
The Texas Racing Commission adopts the repeal of 16 TAC §311.51, Interim License to Conduct Race Meetings. The Commission proposed the repeal in conjunction with its review of 16 TAC, Part 8, Chapter 311, Other Licenses, in accordance with Government Code, §2001.039. The proposed repeal was published in the April 25, 2008, edition of the Texas Register (33 TexReg 3369) and is adopted without change to the proposal as published. The section will not be republished.
The repeal will eliminate a rule that exceeded the statutory authority of the Commission to adopt. Article 6 of the Texas Racing Act provides that the Commission may issue four specific types of horse racetrack licenses and may issue up to three greyhound racetrack licenses. Article 6 also provides that the Commission may issue a temporary license for up to one year in the event of the death of a license holder. However, neither the general licensing provisions of Article 5 nor the specific racetrack licensing provisions of Article 6 of the Texas Racing Act contains any statutory provisions authorizing the creation of a new racetrack license type such as the Interim License to Conduct Race Meetings.
The Commission received no comments during the notice period in response to the published notice. However, during the meeting at which the Commission proposed the repeal, representatives of Retama Park, Sam Houston Race Park, and the Lawley Group addressed the Commission and questioned whether the repeal would adversely affect existing debt holders' interests in racetracks. The Commission voted to propose the repeal and directed staff to work with the industry to assess there were any statutorily authorized methods of addressing these interests. During the meeting in which the Commission adopted the repeal, a representative of the Lawley Group restated his concerns that the repeal would adversely affect debt holders' interests. The Commission disagrees with this concern on the basis that there are no rights or privileges conferred by §311.51 because the rule itself exceeded the Commission's authority to adopt. The Commission has directed staff to continue to work with the industry to present a statutorily authorized alternative for addressing the debt holders' interests in a racetrack.
The repeal is adopted under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting horse or greyhound racing involving wagering and other rules to administer the Texas Racing Act, and §11.01, which requires the Commission to adopt rules to regulate pari-mutuel wagering on greyhound and horse racing.
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 June 23, 2008.
TRD-200803282
Mark Fenner
General Counsel
Texas Racing Commission
Effective date: July 13, 2008
Proposal publication date: April 25, 2008
For further information, please call: (512) 833-6699
SUBCHAPTER D. DRUG TESTING
DIVISION 2. TESTING PROCEDURES
The Texas Racing Commission (Commission) adopts amendments to 16 TAC §319.336, concerning Payment of Testing Costs, without changes to the proposed text as published in the May 2, 2008, issue of the Texas Register (33 TexReg 3532).
Section 319.336 relates to the accounting and payment of drug testing costs out of money held by racing associations to pay outstanding pari-mutuel tickets and vouchers. The amendments to §319.336 replace the specific process detailed in subsection (c)(1) with a referral to new §321.36, which is adopted elsewhere in this issue of the Texas Register.
The Commission received no comments in response to the proposed amendments.
The amendments are adopted under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting horse or greyhound racing involving wagering and other rules to administer the Texas Racing Act, and §11.01, which requires the Commission to adopt rules to regulate pari-mutuel wagering on greyhound and horse racing.
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 June 26, 2008.
TRD-200803362
Mark Fenner
General Counsel
Texas Racing Commission
Effective date: July 16, 2008
Proposal publication date: May 2, 2008
For further information, please call: (512) 833-6699
SUBCHAPTER A. MUTUEL OPERATIONS
DIVISION 3. MUTUEL TICKETS AND VOUCHERS
16 TAC §§321.31, 321.33, 321.36, 321.37, 321.41, 321.42
The Texas Racing Commission adopts amendments to 16 TAC §§321.31, 321.33, 321.37, and 321.41; and new §321.36 and §321.42, concerning mutuel tickets and vouchers. The amendments and new sections are adopted without changes to the proposed text as published in the May 2, 2008, issue of the Texas Register (33 TexReg 3533).
These sections relate to the information that must be printed on the face of each pari-mutuel ticket and voucher, the cashing of outstanding tickets and vouchers, the expiration of tickets and vouchers, and the remittance of unclaimed outstanding tickets and vouchers after drug testing costs have been paid. The proposed amendments provide that outstanding tickets and vouchers expire one year after issuance, require that each ticket and voucher must have the expiration date printed on its face, and describe the process by which associations must remit expired tickets and vouchers to the Commission after offsetting allowable drug testing costs. These changes are necessary to align the rules with the statutory changes in the Texas Racing Act that occurred as a result of House Bill 2701, which was passed in the 80th Regular Session of the Texas Legislature.
The amendment to §321.31, concerning Vouchers, requires that the expiration date of a voucher be on its face.
The amendments to §321.33, concerning Expiration Date, provide that tickets and vouchers issued on or after September 1, 2007, expire one year after the date of issuance. The changes also provide that tickets issued during August 2007 will expire at the close of business on September 29, 2008, and that vouchers issued prior to September 2007 shall not expire.
New §321.36, concerning Remittance of Unclaimed Outs and Vouchers, provides that racing associations shall remit payments on a quarterly basis along with reports that show the amount of unclaimed outstanding tickets and vouchers that expired, the amount needed to reimburse the association for drug testing costs, and the amount of excess expired tickets and vouchers due to the Commission.
The amendment to §321.37, concerning Cashed Tickets and Vouchers, requires racing associations to ensure the security of outstanding vouchers.
The amendment to §321.41, concerning Cashing Outstanding Tickets, changes the length of time from 10 days to 21 days before an issued but uncashed ticket becomes outstanding.
New §321.42, concerning Cashing Outstanding Vouchers, sets out the process an association must follow when cashing outstanding vouchers.
The Commission received no comments in response to the proposal.
The amendments and new sections are adopted under the Texas Revised Civil Statutes, Article 179e, §3.02, which authorizes the Commission to adopt rules for conducting horse or greyhound racing involving wagering and other rules to administer the Texas Racing Act, and §11.01, which requires the Commission to adopt rules to regulate pari-mutuel wagering on greyhound and horse racing.
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 June 26, 2008.
TRD-200803363
Mark Fenner
General Counsel
Texas Racing Commission
Effective date: July 16, 2008
Proposal publication date: May 2, 2008
For further information, please call: (512) 833-6699