Emergency Sections An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing, for no more than 120 days. The emergency action is renewable once for no more than 60 days. Symbology in amended emergency sections. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 16. ECONOMIC REGULATION Part VIII. Texas Racing Commission Chapter 321. Pari-mutuel Wagering The Texas Racing Commission adopts on an emergency basis new sec.sec.321. 201- 321.208 and sec.sec.321.251-321.257, concerning simulcast wagering. The sections describe the purpose of the simulcast rules, the procedures for obtaining a simulcasting license, simulcast race dates, and feature races, the fees for simulcasting, the requirements for simulcast contracts, the duties of the sending racetracks and receiving locations, the emergency procedures for simulcast wagering, and the procedures for forming, merging, and distributing common pools. The new sections are adopted on an emergency basis to expedite the receipt of revenue to the state, pari-mutuel racetracks, and horse owners and trainers from simulcast wagering by ensuring the rules for simulcast wagering are in place for the Breeders' Cup races to be conducted on November 2, 1991. Subchapter C. Simulcast Wagering Simulcasting License 16 TAC sec.sec.321.201-321.208 The sections are adopted on an emergency basis under Texas Civil Statutes, Article 179e, sec.11.011, which authorize the commission to adopt rules to license and regulate pari-mutuel wagering on simulcast races and sec.6.18 and sec.5.01, which authorize the commission to prescribe reasonable license fees. sec.321.201. Purpose. The commission finds that, although wagering on simulcast races provides additional revenue for the state treasury, the primary advantage of wagering on simulcast races is the additional revenue it provides for purse supplements for live races conducted in this state. The commission further finds it is in the public interest to encourage live racing, which promotes economic development in a variety of racing-related industries. Therefore, it is the commission's intent to adopt and enforce rules relating to simulcast wagering in a manner that will encourage live racing and enhance the horse breeding and training industries and the greyhound breeding and training industries. sec.321.202. Simulcasting License. (a) An association may apply to the commission for a license to conduct pari- mutuel wagering on simulcast races and to simulcast races conducted by the association. A simulcasting license entitles the association to conduct pari- mutuel wagering on simulcast races on dates approved by the commission under sec.321.203 of this title (relating to Request for Simulcast Race Dates), and to simulcast races conducted by the association. (b) Each calendar year, the executive secretary shall set a filing deadline for applications under this section. (c) The application must include a statement of how the application will enhance the breeding and training industries for horses or greyhounds. In addition, the application must describe and the commission may consider: (1) the financial stability of the association and the effect simulcasting will have on the economic viability of the association; (2) the operating experience of the association; and (3) regulatory compliance and conduct of the association. (d) The association shall serve a copy of the application on every association licensed to conduct racing for the same species of race animal as the association. (e) After the application is filed, the executive secretary may require the association to submit additional information if the executive secretary determines the additional information is necessary to effectively evaluate the application. (f) The commission shall deny the application if the commission determines the association failed to file the application in accordance with commission rules. (g) A simulcasting license is perpetual in duration. An association shall pay an annual fee for a simulcasting license, which consists of an initial license fee and a daily charge for each day the association conducts wagering on a simulcast race. The initial license fee is $3,500 and is due and payable to the commission not later than 10 business days after the date the commission order granting the simulcasting license is final and appealable. A daily charge incurred under this section is in addition to a daily charge incurred for a live race date. Each daily charge is due and payable to the commission not later than 10 a.m. on the next banking day after each day the association conducts wagering on a simulcast race. The daily charge is: (1) $200, for each allocated simulcast race date that the total handle is less than $100,000; (2) $350, for each allocated simulcast race date that the total handle is at least $100,000, but less than $200,000; (3) $500, for each allocated simulcast race date that the total handle is at least $200,000 but less than $300,000; (4) $750, for each allocated simulcast race date that the total handle is at least $300,000, but less than $500,000; (5) $1,000, for each allocated simulcast race date that the total handle is $500,000 or more; and (6) $100, regardless of the total handle, on a day on which a feature race is simulcast. sec.321.203. Request For Simulcast Race Dates. (a) If the association desires to conduct pari-mutuel wagering on simulcast races during a calendar year, the association must file a request for simulcast race dates. Except as otherwise provided by this section, the request must be filed at the same time the association files its request for live race dates. (b) Except as otherwise provided by this subsection, the association may request a simulcast race meeting that coincides wholly or partly with a live race meeting or a separate simulcast race meeting. (c) The request must describe the dates the association is requesting, state the names and locations of the sending racetracks, and contain a copy of the fully executed agreements between the association and the sending racetracks. In addition, the request must include evidence regarding the following factors: (1) the contract submitted by the association and whether the contract complies with all applicable laws and the rules of the commission; (2) the anticipated effect of the simulcast race dates on the horse or greyhound training and breeding industries in this state; (3) the anticipated effect of the simulcast race dates on live racing proposed by the association and other associations; (4) the operating experience of the association in this or other racing jurisdictions and the sending racetracks; (5) the regulatory compliance and conduct of the association and the sending racetracks; (6) the financial stability of the association and the sending racetracks and the effect the simulcast race dates will have on the economic viability of the association and the sending racetracks; (7) the performance of the association and sending racetracks on previously approved simulcast race dates; (8) the association's market, including area, population, and demographics; (9) the anticipated effect of the simulcast race dates on employment in this state; (10) the anticipated effect of the simulcast race dates on the tourist, recreation, and entertainment industries in this state; and (11) the anticipated state revenues and related economic benefits from the simulcast race dates. (d) If any of the sending racetracks are located in another racing jurisdiction, the association shall provide a copy of the statutes or rules of the jurisdiction governing the distribution of pari-mutuel pools, if requested by the executive secretary. (e) The association shall serve a copy of the request on every association licensed to conduct racing for the same type of race animal as the association. (f) After the request is filed, the executive secretary may require the association to submit additional information if the executive secretary determines the additional information is necessary to effectively evaluate the request. (g) The burden of proof is on the association to demonstrate that the granting of the simulcast race dates will be in the public interest and achieve the purposes of the Act. (h) The executive secretary may permit an association to file a request for additional simulcast race dates after its request under this section has been acted on by the commission if the executive secretary determines that: (1) the request includes evidence that granting the additional simulcast race dates will enhance the breeding and training industries for horses or greyhounds; (2) the association's failure to request the simulcast race dates initially was not due to the association's neglect; and (3) if the request duplicates a request by the association that has already been acted on by the commission, changed circumstances exist that necessitate additional consideration by the commission. sec.321.204. Feature Races. (a) Notwithstanding any other provision of this subchapter, the executive secretary may approve pari-mutuel wagering at an association on not more than two simulcast races on a day if the executive secretary determines that: (1) at least one of the races is of national, regional, or historic importance; or (2) the revenue or other benefits generated through wagering on the races will substantially enhance the live racing program at the association. sec.321.205. Simulcasting Contract. (a) A contract executed by an association regarding simulcasting is subject to the approval of the commission or its designee. (b) Except for contracts involving races of particular importance as authorized by the commission or its designee in approving the contract, a contract submitted under this section must provide that a percentage of the revenue under the contract be allocated to purses for live races in this state in the same percentage as is required under sec.6.08 of the Act. sec.321.206. Duties of Receiving Location. (a) An association that is granted simulcast race dates acts as a receiving location on those dates. The receiving location shall provide: (1) modems and switching units enabling pari-mutuel data transmissions and data communications between the sending racetrack and the receiving location; (2) a voice communication system between the receiving location and the sending racetrack providing timely voice contact between the stewards or racing judges and the mutuel departments at each racetrack; and (3) if the receiving location plans to participate in common pools, a direct, private telephone line and a telecopy or facsimile machine in the mutuels area to transmit information to the sending racetrack in case of a system failure. (b) A receiving location shall conduct pari-mutuel wagering in accordance with commission rules. (c) At least 30 minutes but not more than one hour before the beginning of the transmission of the first performance of each day, the receiving location shall initiate a test program of its receiver, decoder, if applicable, and data communication to ensure proper operation of the system. If a test program run under this subsection is unsuccessful or indicates a malfunction of any component of the receiving system, the association may not conduct pari-mutuel wagering on a simulcast race until a successful test program is run. (d) After each simulcast performance, the receiving location shall provide the reports of its pari-mutuel operations required by Subchapter A of this chapter (relating to Regulation and Totalisator Operations) and the rules of the comptroller. sec.321.207. Duties of Sending Racetrack. (a) An association that simulcasts races conducted by the association acts as a sending racetrack on the dates the races are conducted and simulcast. The contract between the association and the receiving locations must be approved by the commission. (b) A sending racetrack is responsible for the content of the simulcast and shall use all reasonable effort to present a simulcast which offers the viewers an exemplary depiction of the performance, a periodic display of wagering information, and continuity programming between racing events. (c) The sending racetrack shall provide adequate transmission equipment of acceptable broadcast quality that does not interfere with the closed circuit TV system of the receiving location. If the sending racetrack plans to form common pools, the racetrack shall provide a direct, private telephone line and a telecopy or facsimile machine in the mutuels area to receive information from the receiving locations in case of a system failure. (d) The simulcast shall be encrypted using a time displacement decoding algorithm encryption system or an equivalent encryption system approved by the commission. (e) Unless otherwise permitted by the commission, a simulcast must contain in its video content: (1) the date; (2) a digital display of the actual time of day at the sending racetrack; (3) the name of the sending racetrack; (4) the number of the race being displayed; and (5) any other relevant information available to patrons at the sending racetrack. (f) At least 30 minutes but not more than one hour before the beginning of the transmission of the first performance of each day, the sending racetrack shall initiate a test program of its transmitter, encryption equipment, and data communication to ensure proper operation of the system. If a test program run under this subsection is unsuccessful or indicates a malfunction of any component of the sending system, the association may not transmit any races until a successful test program is run. sec.321.208. Emergency Procedures. (a) An association may not accept wagers on a simulcast race until the association is receiving both the audio and video signals from the sending racetrack. (b) If the association loses audio or visual signal from the sending racetrack, the association shall immediately notify the sending racetrack of the lost signal. (c) If the audio signal is lost, the association shall establish telephone linkup with the sending racetrack's announcer and the association's public address system. The association may continue to accept wagers with the telephone linkup until the audio has been reestablished or until the end of the simulcast race during which the signal was lost, whichever occurs first. (d) If both the audio and video signals are lost and the telephone linkup cannot be established, the association shall cease accepting wagers. For wagers that have already been accepted, the association shall pay the appropriate price to the winning wagers as determined by the sending racetrack. Issued in Austin, Texas, on October 21, 1991. TRD-9113562 Paula Cochran Carter General Counsel Texas Racing Commission Effective date: October 31, 1991 Expiration date: November 7, 1991 For further information, please call: (512) 794-8461 Common Pool Wagering 16 TAC sec.sec.321.251-321.257 The new sections are adopted on an emergency basis under Texas Civil Statutes, Article 179e, sec.11.011, which authorize the commission to adopt rules to license and regulate pari-mutuel wagering on simulcast races and sec.6.18 and sec.5.01, which authorize the commission to prescribe reasonable license fees. sec.321.251. General Provisions (a) With the prior approval of the commission, pari-mutuel pools offered by an association that is participating in a simulcast may be combined with corresponding wagering pools offered by the other racetracks participating in the simulcast to form a common pool. (b) A contract governing participation in a common pool must be submitted to the commission for approval. (c) In determining whether to approve an interstate common pool that does not include the sending racetrack, the commission shall consider and may approve use of a type of wager which is not used at the sending racetrack or other factors presented to the commission. (d) All types of wagers that have been approved for the association may be offered, although types of pools which require more races than those included in the simulcast may not become part of the common pool. (e) The content and format of the visual display of racing and wagering information at facilities in other racing jurisdictions in the interstate common pool need not be identical to the information required to be displayed under these rules. sec.321.252. Formation of Common Pool. (a) The common pool is formed at the sending racetrack and the rules of racing in the state in which the sending racetrack is located apply to the common pool. (b) Wagering data shall be transmitted from computer to computer only, unless manual mergers are required due to computer malfunctions or communications failure. (c) Except as otherwise provided by this subsection, the odds and prices for a common pool shall be calculated in accordance with the laws and rules of the jurisdiction in which the sending racetrack is located. In determining the amount distributable to the wagerers, the total takeout required in the jurisdiction in which the sending racetrack is located shall be used. If the association desires, the association may use net price calculation for determining the payoff prices. (d) An association shall ensure that the necessary records are maintained regarding the amounts wagered at its racetrack for accounting, auditing, and reporting purposes. sec.321.253. Distribution of Common Pool. (a) A wager is made at the point of sale in the state where the wager is placed. (b) The payoff attributable to the association shall be based on the actual winnings indicated by the totalisator wagering data. (c) The total takeout applicable to the wagers received in this state for a common pool shall be distributed in accordance with the Act. A gain or loss caused by a difference in takeout totals shall be part of the association's revenue or expense from the interstate broadcast. (d) A surcharge or other withholding other than the takeout authorized by law shall be applied only in the jurisdiction imposing the surcharge or withholding. sec.321.254. Breakage. The ratio of an association's allocation of the breakage to the total breakage in an interstate common pool must be equal to the ratio of the dollars contributed to the common pool from the association to the total amount of the common pool. sec.321.255. Report to Commission. An association participating in a common pool shall submit to the commission a report on the pool not later than the 10th day after the date of the performance for which the pool was formed. The report shall contain: (1) the total amount of the common pool; (2) the total amount of the common pool generated by wagers received in this state; (3) the total winnings for the common pool; (4) the total winnings attributable to wagers received in this state; (5) the total commission derived from the common pool; and (6) the total commission derived from the association's share of the common pool. sec.321.256. Manual Merge. (a) If the receiving location's computer system fails to adequately transmit wagering data to the sending racetrack, the sending racetrack may manually merge the pools if a manual merge will not endanger the pools at the sending racetrack. (b) To merge the pools manually, the receiving location's totalisator system operator shall notify the sending racetrack via telecopy of the total amount in the pool, the total dollars on winning wagers, and the total dollars on the losing wagers in the pool. The stewards or racing judges at the sending racetrack and the presiding steward or racing judge at the receiving location shall be notified when the procedure is complete, for purposes of declaring the race official. sec.321.257. Failure to Merge. (a) Except as otherwise provided by this section, if for any reason it becomes impossible to successfully merge the wagers placed in this state in the common pool, the association shall make an announcement to the patrons explaining the circumstances. The association shall make payoffs in accordance with the payoff prices that would have been in effect if the prices for the pool of wagers were calculated without regard to wagers placed elsewhere. (b) A contract for common pools entered into by an association must contain a provision stating that the association is not liable for any measures taken which may result in a receiving location's wagers not being accepted into a common pool formed by the association if for any reason: (1) it becomes impossible to successfully merge the wagers placed in another state in the common pool formed by the association; or (2) the commission's or association's representative determines that attempting to transfer pool data from the receiving location will endanger the association's wagering pool. Issued in Austin, Texas, on October 21, 1991. TRD-9113563 Paula Cochran Carter General Counsel Texas Racing Commission Effective date: October 31, 1991 Expiration date: November 7, 1991 For further information, please call: (512) 794-8461 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part X. Texas Water Development Board Chapter 355. Research and Planning Fund Subchapter A. General Research and Planning 31 TAC sec.355.10 The Texas Water Development Board (the board) adopts on an emergency basis an amendment to sec.355.10, concerning funding limitations for grants for regional and flood control planning under the research and planning fund. The amendment to sec.355.10 allows the board to implement regional planning financing of projects in areas outside incorporated municipalities where residents are not connected to centralized water or wastewater systems, where the Texas Department of Health (The department) or its successor has determined that the drinking waster supply fails to meet department criteria for a community water system and that a nuisance dangerous to the public health and safety exists resulting from water supply or sanitation problems in the area. The board was appropriated funds Rider Number 8, of the board's General Appropriations Bill (House Bill 1, 72nd Legislature, 1991, First Called Session) to finance water and wastewater projects in these areas. The board finds that there is a need to adopt the amendments to sec.355.10 on an emergency basis in order to provide up to 100% grant funds for the planning of water and wastewater service in areas outside incorporated municipalities where residents are not connected to centralized water or wastewater systems, where the Texas Department of Health (the department) or its successor has determined that the drinking water supply fails to meet department criteria for a community water system and that a nuisance dangerous to the public health and safety exists resulting from water supply or sanitation problems in the area. The amendment is adopted on an emergency basis under the Texas Water Code, sec.6.101 and Chapter 15, Subchapter F, sec.15.403, which requires the board to adopt rules necessary to carry out the powers and duties of the board and of various programs of the research and planning fund. sec.355.10. Funding Limitations. (a)-(d) (No change.) (e) Grants for regional planning pursuant to the provisions in Rider Number 8, Emergency Financial Assistance, General Appropriations Bill (House Bill 1, 72nd Legislature, 1991, First Called Session), may be up to 100% of the total cost of the project. Issued in Austin, Texas, on October 30, 1991. TRD-9113566 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: October 31, 1991 Expiration date: February 28, 1992 For further information, please call: (512) 463-7981 Texas Department of Insurance Exempt Filing Notification Pursuant to the Insurance Code, Chapter 5, Subchapter L (Editor's note: As required by the Insurance Code, Article 5.96 and Article 5.97, the Register publishes notices of actions taken by the State Board of Insurance pursuant to Chapter 5 Subchapter L, of the Code. Board action taken under thse articles is not subject to the Administratie Procedure and Texas Register Act. The text of the material being adopted will not e published but may be examined in the offices of the Texasd Department of Insurance, 333 Guadalupe, Austin.) The State Board of Insurance has approved renewal of effectiveness of action taken as specified in Board Order Number 58572 for a period of 60 days beginning November 8, 1991. Board Order Number 58572 approves, on an emergency basis, amendments to the Workers' Compensation and Employers' Liability Insurance Texas Unit Statistical Plan. The board has approved renewal of effectiveness of action taken as outlined in Board Order Number 58572 for the specified period to allow for publication and notice under Article 5.96 prior to board consideration of adoption, on a permanent basis, of the Workers' Compensation and Employers' Liability Insurance Texas Unit Statistical Plan. This notification is made pursuant to the Texas Insurance Code, Article 5.96, which exempts it from the Administrative Procedure and Texas Register Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 30, 1991. TRD-9113751 Angelia Johhnson Assistant Chief Clerk Texas State Board of Insurance Effective date: November 1, 1991 Expiration date: December 31, 1991 For further information, please call: (512) 463-6328 The State Board of Insurance has approved renewal of effectiveness of action taken as specified in Board Order Number 58573 for a period of 60 days beginning November 8, 1991. Board Order Number 58573 adopts, on an emergency basis, the Texas Workers' Compensation Detailed Claim Information Statistical Plan. The board has approved renewal of effectiveness of action taken as outlined in Board Order Number 58573 for the specified period to allow for publication and notice under Article 5.96 prior to board consideration of adoption of an amended Texas Workers' Compensation Detailed Claim Information Statistical Plan. This notification is made pursuant to the Insurance Code, Article 5.96, which exempts it from the Administrative Procedure and Texas Register Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on October 30, 1991. TRD-9113752 Angelia Johnson Assistant Chief Clerk Texas Department Board of Insurance Effective date: November 1, 1991 Expiration date: December 31, 1991 For further information, please call: (512) 463-6328 The State Board of Insurance in an open meeting on October 31, 1991, adopted amendments to Parts One and Two and associated retrospective endorsements and notice of election forms in the Texas Retrospective Rating Plan Manual
    pertaining to the Large Risk Alternative Rating Option and a Residual Market Factor applicable to workers' compensation policies written on a retrospectively rated basis. The amendments to Part One pertain to the Large Risk Alternative Option and indicate that the only allowable method for collecting the applicable Texas Workers' Compensation (WC) Residual Market Premium (RMP) shall be the Texas WC Residual Market Factor (RMF) determined in accordance with Part Two Section I.B. 8. The amendments to Part One also indicate the residual market costs cannot be included in any other rating plan factors negotiated between the carrier and the insured. However, the RMF used in all retrospective premium adjustments shall not exceed the actual RMF that is determined by the State Board of Insurance (SBI). Any amount of RMP in excess of the actual RMP as produced by applying the RMF determined by the SBI shall be refunded to the insured. The eligibility requirements for the Large Risk Alternative Rating Option make this option available for risks with either an estimated annual workers' compensation standard premium in excess of $350,000 in all states subject to interstate retrospective rating or an estimated annual worker' compensation standard premium in excess of $100,000 on an intrastate basis. The amendments to Part Two indicate that for insureds written under any retrospective rating plan, the residual market premium may be added to the retrospective premium calculated in accordance with the formula set forth in the rule. The actual RMF as determined by the SBI shall be calculated by dividing the actual assessed Texas WC Residual Market deficit by the Texas WC voluntary written premium for the year to which the deficit assessment relates. The amended rules, endorsements, and forms are applicable to retrospective rating plans made effective on and after 12:01 a.m. October 31, 1991 and will terminate on and will no longer be effective as of 12:01 a.m. December 31, 1991, when permanent rules on this matter will be effective. The board adopted the amended rules, endorsements, and forms under the authority and jurisdiction of the Insurance Code, Article 5.55-5.68-1, 5.77, 5. 78, 5.79, and 5.96 and on an emergency basis as provided in Article 5.96(i). It is the opinion of the State Board of Insurance and the board finds an imminent peril exists because of disruption in the workers' compensation voluntary market causing employers to elect to either become a non-subscriber to the Workers' Compensation Act or to seek workers' compensation coverage in the residual market at an increased premium if the insurers are no longer able to pass residual market costs on to insureds with a workers' compensation policy written on a retrospectively rated basis. This notification is filed pursuant to the Insurance Code, Article 5.96, which exempts it from the requirements of the Administrative Procedure and Texas Register Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on November 1, 1991. TRD-9113753 Angelia Johnson Assistant Chief Clerk Texas Department of Insurance Effective date: November 1, 1991 Expiration date: December 31, 1991 For further information, please call: (512) 463-6328