Part 8. TEXAS RACING COMMISSION
Subchapter A. LICENSING PROVISIONS
DIVISION 1. OCCUPATIONAL LICENSES
The Texas Racing Commission proposes amendments to 16 TAC §311.3, Information for Background Investigation. 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 changes to §311.3 reduce this exception from a five year period to a three year period.
Charla Ann King, Executive Director 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 enhance the integrity of racing by conducting background checks on licensees more frequently than every five years. The amendment will also bring this portion of the Commission's rules into alignment with the model rules adopted by the Association of Racing Commissioners International.
The rule will have no adverse economic effect on small or micro-businesses since there are no additional costs or fees associated with the change, and therefore preparation of an economic impact statement and a regulatory flexibility analysis is not required.
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 Director 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, §5.03, which requires applicants to submit fingerprints, §7.10, which allows the Commission to waive the fingerprint requirement applicants who already hold a valid license from another state, and §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.
The amendment implements Texas Civil Statutes, Article 179e.
§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 on 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 [five] 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, Art. 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 [five]
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 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 April 21, 2008.
TRD-200802070
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: June 1, 2008
For further information, please call: (512) 833-6699
Subchapter D. DRUG TESTING
DIVISION 2. TESTING PROCEDURES
The Texas Racing Commission proposes amendments to 16 TAC §319.336, Payment of Testing Costs. 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 change to §319.336 replaces the specific process detailed in paragraph §319.336(c)(1) with a referral to new §321.36, which is published elsewhere in this edition of the Texas Register.
Charla Ann King, Executive Director 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 align the rule with the statutory changes in the Texas Racing Act that occurred as a result of HB 2701, which was passed in the 80th Regular Session of the Texas Legislature.
The rule will have no adverse economic effect on small or micro-businesses, and therefore preparation of an economic impact statement and a regulatory flexibility analysis is not required.
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 Director 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, §3.07, which requires drug testing of race animals and provides for the payment of the associated costs, and §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.
The amendment implements Texas Civil Statutes, Article 179e.
§319.336.Payment of Testing Costs.
(a) Responsibility for Payment. Immediately on receipt of approved charges for conducting tests under this subchapter, an association shall pay the charges.
(b) Authority to Use Outstanding Tickets and Pari-mutuel Vouchers. An association may use money held by the association to pay outstanding tickets and outstanding pari-mutuel vouchers to pay for charges under this section. If the money held is insufficient to pay the charges, the association shall pay the remainder of the charges.
(c) Accounting and Payment of Remainder.
(1) The accounting and payment of remainder of
outs and vouchers to the Commission shall be done in accordance with §321.36.
[No later than 5:00 p.m. on September 30 of each year,
an association shall pay to the Commission the cash value of outstanding
tickets remaining after the association offsets the drug testing costs
incurred during the prior mutuel year. No later than 5:00 p.m. on
October 31 of each year, an association shall provide to the Commission,
on a form prescribed by the executive secretary, an accounting of
the outstanding tickets and pari-mutuel vouchers held by the association
on September 29 of that year and the drug testing charges paid by
the association.]
(2) The executive secretary will review the accounting submitted by the association. If the executive secretary determines the accounting is in error, the executive secretary may adjust the amount due to the Commission from outstanding tickets and either demand payment of the additional amount owed or reimburse the association for the excess amount paid to the Commission.
(d) Pooling of Drug Testing Costs. The executive secretary may establish a procedure to pay drug testing costs by pooling the amounts held by all associations to pay outstanding tickets. If the amount held by an association does not cover the full costs of drug testing for that association, the executive secretary may pay those costs using funds paid to the Commission under subsection (c)(1) of this section.
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 April 21, 2008.
TRD-200802071
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: June 1, 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 proposes amendments to 16 TAC §§321.31, 321.33, 321.37, and 321.41. The Commission also proposes new §321.36 and §321.42. 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 HB 2701, which was passed in the 80th Regular Session of the Texas Legislature.
The change to §321.31, Vouchers, requires that the expiration date of a voucher be on its face.
The changes to §321.33, 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 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 change to §321.37, Cashed Tickets and Vouchers, requires racing associations to ensure the security of outstanding vouchers.
The change to §321.41, 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, Cashing Outstanding Vouchers, sets out the process an association must follow when cashing outstanding vouchers.
Charla Ann King, Executive Director 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 align the rules with the statutory changes in the Texas Racing Act that occurred as a result of HB 2701, which was passed in the 80th Regular Session of the Texas Legislature.
The rules will have no adverse economic effect on small or micro-businesses because the changes continue to allow associations to pay the costs of drug testing out of money held to pay outstanding tickets and vouchers. Therefore, preparation of an economic impact statement and a regulatory flexibility analysis is not required.
There are no negative impacts upon employment conditions in this state as a result of the proposed amendments or new rules.
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 Director 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 §11.01, which requires the Commission to adopt rules regulating pari-mutuel wagering on greyhound and horse racing.
The amendment implements Texas Civil Statutes, Article 179e.
§321.31.Vouchers.
Each voucher issued must have printed on its face:
(1) the name of the racetrack facility where the voucher was issued;
(2) the unique computer-generated voucher number;
(3) the date the voucher was issued;
(4) the number of the ticket-issuing machine; [and]
(5) the dollar amount of the voucher; and[.]
(6) the expiration date of the voucher.
§321.33.Expiration Date.
(a) Mutuel tickets and vouchers issued on or after September 1, 2007, shall expire at the close of business one year from date of issuance.
(b) Mutuel tickets issued during the month of August 2007 shall expire at the close of business on September 29, 2008.
(c) Mutuel tickets issued prior to August 1, 2007, have expired in accordance with the Texas Racing Act.
(d) Vouchers issued prior to September 1, 2007, shall not expire.
[(a) Due to the year-round
nature of simulcasting and the state's fiscal year, the Commission
finds a need to establish a "mutuel year" for purposes of expiration
of mutuel tickets and the collection of revenue from outstanding tickets
pursuant to the Act, §11.08. The mutuel year begins on August
1 and ends on July 31.]
[(b) A mutuel ticket:]
[(1) expires on the 60th day after the last day of the mutuel year in which the ticket was purchased; and]
[(2) may not be cashed by an association after the expiration date for any reason.]
[(c) A voucher has no expiration date.]
[(d) The expiration date
of the wager must be printed on the face of a pari-mutuel ticket.]
§321.36.Remittance of Unclaimed Outs and Vouchers.
(a) Pursuant to the Act, §3.07, to pay the charges associated with the medication or drug testing, an association may use the money held by the association to pay outstanding tickets and pari-mutuel vouchers. If additional amounts are needed to pay the charges, the association shall pay those additional amounts. If the amount of outstanding tickets and pari-mutuel vouchers held exceeds the amount needed to pay the charges, the association shall pay the excess to the commission.
(b) The association shall file a quarterly report, on a form prescribed by the executive director, that reports:
(1) the amount of outstanding tickets and pari-mutuel vouchers that have expired during the quarter as outlined under §321.33;
(2) the amount needed to reimburse the association for payments made by the association to cover charges associated with the medication or drug testing pursuant to §3.07 of the Act; and
(3) the amount of excess expired tickets and pari-mutuel vouchers, if any, due to the commission.
(c) The association shall file the quarterly reports and make payments when applicable on the following schedule:
(1) September, October and November will constitute the first quarter and shall be filed with the commission no later than December 15;
(2) December, January and February will constitute the second quarter and shall be filed with the commission no later than March 15;
(3) March, April and May will constitute the third quarter and shall be filed with the commission no later than June 15; and
(4) June, July and August shall constitute the fourth quarter and shall be filed with the commission no later than September 15.
(d) The reports and payments submitted by the association are subject to audit by the Commission.
§321.37.Cashed Tickets and Vouchers.
(a) An association shall maintain facilities and use procedures that ensure the security of cashed tickets and vouchers and the integrity of records of outstanding tickets and outstanding vouchers.
(b) The association shall store cashed tickets and vouchers in a secure area.
(c) The association shall prohibit individuals other than the association's mutuel manager from having access to the cashed tickets and vouchers or to storage areas for outstanding ticket records and outstanding voucher records.
§321.41.Cashing Outstanding Tickets.
(a) For purposes of this section, an outstanding ticket
is one that was purchased for a race held at least
21 [10
] days before the date the ticket is presented for payment.
(b) An association shall designate one ticket window where a patron must cash an outstanding ticket. If the association needs more than one window, the association must submit a written request for approval from the executive secretary for additional windows.
(c) The association may not permit an outstanding ticket to be cashed at a ticket window other than a designated window.
(d) At the end of each race day, the mutuel manager shall deliver to the pari-mutuel auditor:
(1) a list of the outstanding tickets that were cashed on the previous race day; and
(2) a photostatic copy of each outstanding ticket cashed on the previous race day.
(e) In the event a photostatic copy can not be provided, the association will not be held liable for a reader cashed ticket if the association can produce documentation to support the ticket's existence.
§321.42.Cashing Outstanding Vouchers.
(a) For purposes of this section, an outstanding voucher is one that was issued at least 21 days before the date the voucher is presented for payment.
(b) An association shall designate one mutuel window where a patron must cash an outstanding voucher. If the association needs more than one window, the association must submit a written request for approval from the executive secretary for additional windows.
(c) The association may not permit an outstanding voucher to be cashed at a mutuel window other than a designated window.
(d) At the end of each race day, the mutuel manager shall deliver to the pari-mutuel auditor:
(1) a list of the outstanding vouchers that were cashed on the previous race day; and
(2) a photostatic copy of each outstanding voucher cashed on the previous race day.
(e) In the event a photostatic copy can not be provided, the association will not be held liable for a reader cashed voucher if the association can produce documentation to support the voucher's existence.
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 April 21, 2008.
TRD-200802072
Mark Fenner
General Counsel
Texas Racing Commission
Earliest possible date of adoption: June 1, 2008
For further information, please call: (512) 833-6699