PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. 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 IV. Texas Department of Licensing and Regulation Chapter 67. Auctioneers 16 TAC sec.67.22, sec.67.81 The Texas Department of Licensing and Regulation proposes amendments to sec.67.22 and sec.67.81, concerning Auctioneers. The amendment to sec.67.22 changes the amount of time a person who has passed the auctioneer examination has in which to get a license without being required to retake the examination from two years to 90 days. Section 67.81 increases the late renewal fee from $25 to $50 and increases the amount of time within which a late license can be renewed without retesting from 30 to 90 days. The justification for raising the late fee is to make it the same as all other Department late fees and to make late renewal and possible holding of illegal auctions less attractive. The justification for changing the period of time during which an applicant may secure an auctioneer license after passing the examination from two years to 90 days is that auctioneers are required to know and comply with many laws dealing with taxes, deceptive trade, and other state and federal law concerning licenses to buy or sell various items. These laws and regulations can be changed at various times by the state legislature, the Congress, rulemaking by the Comptroller or various other agencies, and attorney general opinions. The public will be protected more effectively if the time when a license may be secured and the time knowledge is demonstrated are not widely separated. Jimmy G. Martin, Manager, Consumer Protection Section of the Texas Department of Licensing and Regulation, has determined that for the first five-year period these sections are in effect state government revenues will increase by $250 per year, and that there will be no fiscal implications for local government as a result of enforcing or administering the sections. Mr. Martin also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be more protection for the consumer because persons being licensed will be knowledgeable of current laws pertaining to auctioneering, taxes, and deceptive trade. The anticipated economic effect on small businesses and persons who are required to comply with the sections as proposed will be an additional $25 for late license renewal. Comments on the proposal may be submitted to Jimmy G. Martin, Manager, Consumer Protection Section, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The amendments are proposed under Texas Civil Statutes, Article 8700, which authorize the department to license and regulate auctioneers. No other statute, code or article is affected by this rule. sec.67.22. License Requirements -Examinations. (a)-(c) (No change.) (d) An applicant who passes an examination may be licensed up to 90 days
    [two years] from the date on the grade notice sent by the department. (e) (No change.) sec.67.81. Fees-Renewal. (a)-(b) (No change.) (c) A late fee of $50
      [$25] will be charged for renewal applications postmarked between midnight of the day a current license expires and midnight of the 90th
        [30th] day after the expiration. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 31, 1996. TRD-9601279 Jack W. Garison Executive Director Texas Department of Licensing and Regulation Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 463-7357 Part VIII. Texas Racing Commission Chapter 305. Licenses for Pari-mutuel Racing Subchapter B. Individual Licenses Specific Licensees 16 TAC sec.305.41 The Texas Racing Commission proposes an amendment to sec.305.41, concerning the licensing criteria for veterinarians. The amendment changes the qualifications to be licensed as a veterinarian. Paula Cochran Carter, General Counsel 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 section. Ms. Carter also has determined that for each of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the section will be that the persons permitted to practice veterinary medicine on the grounds of licensed racetracks are qualified and competent. There will be no fiscal implications for small businesses. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.7.02, which authorizes the commission to adopt rules establishing the categories of licenses and the qualifications relating to each license category. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.305.41. Veterinarians. To be eligible to be licensed by the commission as a veterinarian, an individual must show proof of current licensure in good standing
          [be licensed] by the Texas State Board of Veterinary Medical Examiners. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601303 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter C. Racetrack Licenses General Provisions 16 TAC sec.305.70 The Texas Racing Commission proposes an amendment to sec.305.70, concerning the officials' fees. The amendment eliminates the differential in the compensation for stewards and commission veterinarians at pari-mutuel horse racetracks and raises the rate of compensation for those officials on race days. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for local government as a result of enforcing the section. There will be fiscal implications for state government, in that the amount the commission will receive in officials' fees will increase. However, because the officials' fee collected is calculated to directly offset the cost to the commission of compensating these officials, the net fiscal impact to the state will be neutral. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the officials supervising pari-mutuel horse racing will be of the highest quality. There will be fiscal implications for small businesses. A pari-mutuel horse racetrack will be required to pay an increased officials' fee for each day of racing. The exact amount of the increase will vary, depending on the number of race days conducted by the racetrack. A racetrack that conducts four days of live racing per week can expect to pay an officials' fee of $,3645 for each week of live racing, compared to the current fee of $3,125. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.3.07, which authorizes the commission to impose a fee to offset the costs of compensating officials and to set the amount of the compensation by rule. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.305.70. Officials' Fee. (a)-(b) (No change.) (c) The officials' fee at a horse racetrack is based on the actual cost to the commission of compensating the presiding steward and the commission veterinarians. The compensation for these officials is $260 per race day and $175 per non-race day.
            [:] [(1) for the presiding steward, $225 per race day, $175 per non-race day, and $100 per day of pre-meet licensing; [(2) for the primary commission veterinarian, $225 per race day and $175 per non-race day; and [(3) for the secondary commission veterinarian, $200 per race day and $175 per non-race day.] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601304 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Chapter 313. Officials and Rules of Horse Racing Subchapter A. Officials Duties of Other Officials 16 TAC sec.313.53 The Texas Racing Commission proposes an amendment to sec.313.53, concerning the mutuel manager at a horse racetrack. The amendment authorizes the mutuel manager to designate an individual to serve in the mutuel manager's absence subject to the approval of the executive secretary. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the officials supervising pari-mutuel horse racing will be of the highest quality. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.313.53. Mutuel Manager. (a) The mutuel manager shall supervise the operations of the pari-mutuel department of the association and its employees. The mutuel manager shall ensure the accuracy of the amounts in all pools and the amounts to be paid on winning wagers. (b) The mutuel manager may designate a representative to serve in the mutuel manager's absence, subject to approval by the executive secretary. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601305 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter B. Entries, Declarations, and Allowances Declarations and Scratches 16 TAC sec.313.132 The Texas Racing Commission proposes an amendment to sec.313.132, concerning scratch time at a horse racetrack. The amendment eliminates the requirement that a horse racetrack have a "scratch time". Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the patrons will have accurate information regarding the participants in a race, because late changes will be significantly reduced. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.313.132. Scratch Time. (a) An association may
              [shall] designate a "scratch time" for each race day. (b)-(d) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601306 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter C. Claiming Races 16 TAC sec.313.301 The Texas Racing Commission proposes an amendment to sec.313.301, concerning claiming races at a horse racetrack. The amendment changes the criteria for claiming a horse. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the owning of race horses in Texas will be encouraged by increasing the number of people who are eligible to file claims for race horses. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.313.301. Eligibility to Claim. (a) Except as otherwise provided by this section, in a claiming race, each horse is subject to be claimed for its entered price by: (1) a licensed owner or lessee [who has a horse whose registration certificate is on file in the racing office at the current race meeting] or an authorized agent acting on behalf of the owner or lessee; or (2) (No change.) (b) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601307 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter D. Running of the Race The Race 16 TAC sec.313.449 The Texas Racing Commission proposes an amendment to sec.313.449, concerning the official order of finish at a horse racetrack. The amendment clarifies the requirements for a horse to be included in the official order of finish. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that pari-mutuel racing in Texas will be of the highest quality and integrity. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; and sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.313.449. Official Order of Finish. (a)-(b) (No change.) (c) Except in a stakes race where the published conditions expressly provide for payment of purse money through last place, a horse must carry its assigned weight across the finish line to be eligible to earn any portion of the purse or a designation in the official order of finish other than "did not finish". This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601308 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Chapter 315. Officials and Rules for Greyhound Racing Subchapter A. Officials Duties 16 TAC sec.315.36 The Texas Racing Commission proposes an amendment to sec.315.36, concerning the mutuel manager at a greyhound racetrack. The amendment authorizes the mutuel manager at a greyhound racetrack to designate an individual to serve in the mutuel manager's absence, subject to the approval of the executive secretary. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the officials supervising pari-mutuel greyhound racing will be of the highest quality. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.315.36. Mutuel Manager. (a) The mutuel manager shall supervise the operations of the pari-mutuel department of the association and its employees. The mutuel manager shall ensure the accuracy of the amounts in all pools and the amounts to be paid on winning wagers. (b) The mutuel manager may designate a representative to serve in the mutuel manager's absence, subject to approval by the executive secretary. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601309 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Chapter 319. Veterinary Practices and Drug Testing Subchapter B. Treatment of Horses 16 TAC sec.319.111 The Texas Racing Commission proposes an amendment to sec.319.111, concerning the bleeder and furosemide (Lasix) program at race horses. The amendment streamlines and clarifies the requirements for designating a horse as a bleeder and for participating in the furosemide (Lasix) program. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that pari-mutuel racing in Texas will be humane for race horses and that information provided to patrons will be accurate and reliable. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.14.03, which authorizes the commission to adopt rules prohibiting the illegally influencing of a race, including the use of medication. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.319.111. Bleeders and Furosemide (Lasix) Program. (a) Diagnosis of EIPH. A bleeder is a horse that experiences Exercise Induced Pulmonary Hemorrhage (EIPH). The medical diagnosis of EIPH may be made only by a commission veterinarian or a practicing veterinarian holding a current license from the commission. A veterinarian who diagnoses an EIPH event in a horse participating in pari-mutuel racing in this state shall report the event to the commission veterinarian in a format prescribed by the commission. On receipt of the first report of a diagnosed EIPH event for a horse, the commission veterinarian shall certify the horse as a bleeder. (b) Admission to Furosemide (Lasix) Program. (1) A horse that has been certified as a bleeder in this state may be admitted to the furosemide (Lasix) program. To be admitted to the furosemide (Lasix) program, the trainer of the horse must file a request for the horse's admission to the program before the horse is entered in its next race. If a trainer fails to request the horse's admission to the furosemide (Lasix) program before entry, the horse may not compete in the race with furosemide (Lasix). (2) The trainer of a horse that was certified as a bleeder in another pari-mutuel racing jurisdiction and who competed with furosemide (Lasix) in its most recent start out-of-state is required to request the horse's admission to the furosemide (Lasix) program. The trainer must provide documentation satisfactory to the commission veterinarian that the horse was certified as a bleeder in another jurisdiction. The request that the horse be admitted to the furosemide (Lasix) program must be filed before the horse is entered in its next race. If a trainer fails to request the horse's admission to the furosemide (Lasix) program before entry, the horse may not be entered in the race. (c) Administration of Furosemide (Lasix). Furosemide (Lasix) shall be administered to a horse in the furosemide (Lasix) program not later than four hours before the published post time for the race the horse is entered to run. The furosemide (Lasix) must be administered intravenously by a veterinarian licensed by the commission. The chief veterinarian shall periodically publish the permissible blood levels of furosemide (Lasix) in post-race specimens and shall post the levels at each licensed racetrack. (d) Requirement to Use Furosemide (Lasix). A horse in the furosemide (Lasix) program in Texas must compete with furosemide (Lasix) until withdrawn from the program. (e) Withdrawal from Furosemide (Lasix) Program. (1) The chief veterinarian of the commission shall establish criteria for withdrawing a horse from the furosemide (Lasix) program and shall make those criteria available in the commission veterinarian's office at each racetrack. (2) To withdraw a horse from the furosemide (Lasix) program, the trainer must apply to the commission veterinarian. The commission veterinarian shall require a signed medical statement from the trainer's regular practicing veterinarian that it is in the horse's best interest to be withdrawn from the furosemide (Lasix) program. The commission veterinarian may also request a record of past performances, a workout without furosemide (Lasix), a blood test at the time of the workout to confirm the absence of furosemide (Lasix), or a post-workout endoscopic examination. A withdrawal request and all accompanying information must be reviewed and approved by two commission veterinarians. The commission veterinarians must act on a withdrawal request no later than one week after the request is filed. (3) A horse in the furosemide (Lasix) program may not compete without furosemide (Lasix) until its withdrawal from the program has been approved by the commission veterinarians. Withdrawal from the furosemide (Lasix) program does not prohibit a horse from subsequent readmission to the program in accordance with this section. (f) Bleeders List. (1) The commission veterinarian shall maintain a list of horses that have been certified as bleeders and a list of horses that have been admitted to the furosemide (Lasix) program. (2) On receipt of a report of a diagnosed EIPH event, the commission veterinarian shall place the horse on the veterinarian's list. For the first diagnosed EIPH event, a horse shall be placed on the veterinarian's list and is not eligible to enter a race before the 10th day after the horse is placed on the list. For the second diagnosed EIPH event, a horse shall be placed on the veterinarian's list and is not eligible to enter a race before the 30th day after the date the horse is placed on the list. For the third diagnosed EIPH event, a horse shall be placed on the veterinarian's list and is not eligible to enter a race before the 180th day after the date the horse is placed on the list. For the fourth diagnosed EIPH event, a horse is barred from pari-mutuel racing in this state. (3) Notwithstanding the foregoing, if after reviewing a report of a diagnosed EIPH event the commission veterinarian determines additional days on the veterinarian's list are essential to the health and safety of the horse, the commission veterinarian may extend the number of days the horse is on the veterinarian's list. The commission veterinarian shall record the medical reasons for the additional days for review by the chief veterinarian. (4) A horse that has not had a diagnosed EIPH event for a period of 365 consecutive days is considered a non-bleeder for purposes of this section. [(a) A bleeder is a horse that demonstrates in the presence of the commission veterinarian visible external evidence of exercise-induced pulmonary hemorrhage or exhibits post-exercise hemorrhage in the trachea on endoscopic examination performed in the presence of the commission veterinarian. [(b) The evidence of bleeding described in subsection (a) of this section must be exhibited not later than two hours after the last race on the day on which the horse raced or not later than two hours after the scheduled close of workouts at the racetrack at which the horse worked. The costs of conducting a endoscopic examination to determine whether a horse is a bleeder must be borne by the owner or trainer of the horse. A horse that is seen by the commission veterinarian to bleed during the running of a race or within two hours after the race or a workout must be certified as a bleeder by the commission veterinarian, on a form prescribed by the commission. The commission veterinarian shall maintain a list of all confirmed bleeding incidents in Texas and a copy of the list shall be posted in the racing secretary's office. The certification of a horse as a bleeder shall be noted on the horse's registration papers. [(c) The trainer of a horse confirmed as a bleeder in Texas may request that the commission veterinarian admit the horse to the furosemide (Lasix) program for its next race. The request must be made on a form prescribed by the commission not later than one hour before post time for the first race on the day the horse is scheduled to race. A trainer shall declare at the time of entry whether the horse will race with or without furosemide (Lasix). The failure to make such a declaration or the making of a false declaration is grounds for disciplinary action by the stewards or the commission. [(d) The commission veterinarian shall maintain a list of horses that have been admitted to the furosemide (Lasix) program. A horse admitted to the furosemide (Lasix) program must race with furosemide (Lasix) until: [(1) the horse is withdrawn from the furosemide (Lasix) program at the request of the trainer; or [(2) the horse races in another jurisdiction without the use of furosemide (Lasix). [(e) Furosemide (Lasix) shall be administered to a horse that is admitted to the furosemide (Lasix) program not later than four hours before post time for each race in which the horse is to participate. The furosemide (Lasix) must be administered via intravenous injection by a veterinarian licensed by the commission. The dosage must be at least 150 mg (3cc) but not more than 250 mg (5cc). [(f) If a trainer elects to withdraw a horse from the furosemide (Lasix) program, the trainer must withdraw the horse not later than one hour before post time for the first race on the day the horse is scheduled to race. The failure of a horse that has been admitted to the furosemide (Lasix) program to race on furosemide (Lasix) without the proper notification to the commission veterinarian is grounds for disciplinary action by the commission or the stewards. A horse that races in another jurisdiction without furosemide (Lasix) , except a jurisdiction that does not permit furosemide (Lasix), is automatically withdrawn from the furosemide (Lasix) program. A horse that is withdrawn from the furosemide (Lasix) program may not be readmitted to the furosemide (Lasix) program until the horse is reconfirmed as a bleeder by the commission veterinarian or in another racing jurisdiction in accordance with subsection (g) of this section. [(g) A horse that has been confirmed as a bleeder in another racing jurisdiction may be admitted to the furosemide (Lasix) program in this state provided: [(1) the horse's last race was on furosemide (Lasix); [(2) the trainer declares at the time of entry that the horse will race with furosemide (Lasix); [(3) the trainer requests that the commission veterinarian admit the horse to the furosemide (Lasix) program not later than one hour before post time for the first race on the day the horse is scheduled to race; and [(4) the trainer provides written documentation satisfactory to the commission veterinarian that the horse was participating in the furosemide (Lasix) program in that jurisdiction. [(h) For the first confirmed incident of bleeding in this state, the horse shall be placed on the veterinarian's list and is not eligible to enter in a race before the 10th day after the date the horse is placed on the list. For the second confirmed incident of bleeding in this state, the horse shall be placed on the veterinarian's list and is not eligible to enter in a race before the 30th day after the date the horse is placed on the list. For the third confirmed incident of bleeding in this state, the horse shall be placed on the veterinarian's list and is not eligible to enter in a race before the 180th day after the date the horse is placed on the list. For the fourth confirmed incident of bleeding in this state, the horse is barred from pari-mutuel racing in this state.] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601310 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Chapter 321. Pari-mutuel Wagering Subchapter A. Regulation and Totalisator Operations General Provisions 16 TAC sec.321.6 The Texas Racing Commission proposes an amendment to sec.321.6, concerning the pari-mutuel track report. The amendment modifies the type of information that must be provided by the racetrack to the commission regarding each day's wagering activity. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the commission will have complete information for the effective regulation of pari-mutuel wagering. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.321.6. Pari-Mutuel Track Report. (a)-(b) (No change.) (c) The association shall deliver a copy of the report to the commission on
                [not later than the 10th day after] the date of the performance for which the report was prepared. The report must contain: (1) total handle by gross pool; (2) total handle refunded by gross pool; (3) total handle by net gross pool; (4) total commissions derived from gross pools; (5) net amount of add-ins and carryovers to the payouts; (6) payouts attributable to wagers received; (7) breakage; (8) settlements to the sending track or receiving location; and (9) total handle from each receiving location. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601311 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Mutuel Tickets 16 TAC sec.321.38 The Texas Racing Commission proposes an amendment to sec.321.38, concerning the cancellation of mutuel tickets. The amendment modifies the circumstances under which a pari-mutuel wagering ticket may be canceled. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that pari-mutuel wagering will be fair to the patrons, effectively regulated, and of the highest integrity. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.321.38. Cancellation of Tickets. (a) An association may cancel a ticket before the ticket-issuing machines are locked
                  if[:] [(1)] the customer or
                    pari-mutuel teller made an error in issuing the ticket and the patron requests that the ticket be canceled. For a ticket valued at more than $250, the mutuel manager or the mutuel manager's designee must approve the cancellation.
                      [before the patron leaves the teller's window and before the ticket-issuing machines are locked; or] (b)
                        [(2)] An association shall cancel a ticket
                          if the stewards or racing judges order tickets to be canceled because of a scratch in a race. (c) The association shall furnish a report of all canceled tickets to the commission at the end of the day. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601312 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter B. Distribution of Pari-mutuel Pools 16 TAC sec.321.114 The Texas Racing Commission proposes an amendment to sec.321.114, concerning the prevention of start. The amendment clarifies the effect on the distribution of pari-mutuel pools if a race animal is prevented from starting in a race due to the failure of the starting gate or starting box to open properly. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing the section. Ms. Carter also has determined that for each of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that pari-mutuel wagering will be fair to the patrons, effectively regulated, and of the highest integrity. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendment is proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; and sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering. The proposed amendment implements Texas Civil Statutes, Article 179e. sec.321.114. Prevention of Start. [(a)] Except as otherwise provided by these rules, in
                            [In] a race, if the doors of a mechanically or electronically operated starting gate or box fail to open simultaneously with the other doors, thereby preventing a horse or greyhound from obtaining a fair start when the starter dispatches the field, that animal is considered scratched for pari-mutuel purposes only, and all wagers made on that animal shall be refunded.
                              [this section applies to the distribution of the pari-mutuel pools.] [(b) If an animal is prevented from starting, the entire amount in the win, place, and show pools wagered on that animal shall be promptly refunded unless the animal finishes first, second, or third. In that case, the animal shall be considered a starter for all straight pools in which the animal earned a placing and a nonstarter in all other straight pools. There shall not be a refund if the animal is part of a coupled entry or field. [(c) If an animal is prevented from starting, the entire amount in the multiple pools wagered on that animal shall be promptly refunded unless the animal finishes first, second, or third. In that case, the animal shall be considered a starter for the multiple pool in which the animal earned a placing. There shall not be a refund if the animal is part of a coupled entry or mutuel field. [(d) If an animal is prevented from starting so that the total number of starters is less than five: [(1) if four animals of different betting interests leave the gate or box, the association may refund the entire amount wagered in the show pool; [(2) if two or three animals of different betting interests leave the gate or box, the association may refund the entire amount wagered in the show pool, the place pool, or both pools; and [(3) if fewer than two animals of different betting interests leave the gate or box, the association shall cancel the race and refund the entire amount wagered in the win, place, and show pools.] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601313 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Subchapter C. Simulcast Wagering General Provisions 16 TAC sec.sec.321.204, 321.206-321.209 The Texas Racing Commission proposes amendments to sec. s321.204, 321. 206- 321.208 and new sec.321.209, concerning pari-mutuel wagering on simulcast races. The amendments modify the procedures approving certain simulcast races, modify the responsibilities of the sending and receiving racetracks, modify the emergency procedures for simulcasting, and establish the officials for supervising simulcasting. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing the sections. Ms. Carter also has determined that for each of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that pari-mutuel wagering on simulcast races will be fair to the patrons, cost-effective for the racetracks, effectively regulated, and of the highest integrity. There will be fiscal implications for small businesses. Because the amendment to sec.321.206 eliminates the requirement that the receiving racetrack provide a decoder, the receiving racetrack can expect to save approximately $250 per month. There will be no economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendments and new section are proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering; and sec.11.011, which authorizes the commission to adopt rules to regulate pari-mutuel wagering on simulcast races. The proposed amendments and new section implement Texas Civil Statutes, Article 179e. sec.321.204. Approval of Wagering on Simulcast Races. (a)-(f) (No change.) [(g) All graded races and stakes races with a purse of $50,000 or more shall be considered of national or historic interest.] sec.321.206. Duties of Receiving Location. (a) An association that conducts pari-mutuel wagering on a simulcast race acts as a receiving location on those dates. The receiving location shall [provide]: (1) provide adequate
                                communication facilities, [which include all wire, radio, optical, satellite, or other electromagnetic systems and the modems, phone systems and other equipment used to transmit voice, data, and images] enabling pari-mutuel data transmissions and data communications between totalisator systems of
                                  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] (2)
                                    [(3)] if the receiving location participates
                                      [plans to participate] in common pools, provide
                                        a direct[, private] telephone line and a
                                          [, a telecopy or] facsimile machine, or other means approved by the executive secretary, located
                                            [and a cellular telephone] in the mutuels area to transmit information to the sending racetrack in case of a system failure; and (3) display the audio and video signals of the races being simulcast to the patrons
                                              . [(b) 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.] (b)
                                                [(c)] 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). sec.321.207. Duties of Sending Racetrack. (a)-(b) (No change.) (c) The sending racetrack shall provide transmission equipment of acceptable broadcast quality that does not interfere with the closed circuit TV system of the receiving location. The sending racetrack must have the capability to transmit and receive wagering information via a [dedicated] data circuit. If the sending racetrack plans to form common pools, the racetrack shall provide a direct[, private] telephone line and a
                                                  [, a telecopy or] facsimile machine, or other means approved by the executive secretary, located
                                                    [and a cellular telephone] in the mutuels area to receive information from the receiving locations in case of a system failure. [(d) Except as otherwise authorized by the commission, the simulcast shall be encrypted using a time displacement decoding algorithm encryption system or an equivalent encryption system approved by the commission.] (d)
                                                      [(e)] Unless otherwise permitted by the commission, a simulcast must contain in its video content: (1)-(5) (No change.) (e)
                                                        [(f)] At least 15 minutes before post time for the first race,
                                                          [Before the beginning of the transmission of the first performance of each day,] the sending racetrack must be transmitting its signal to ensure proper operation of the transmission system.
                                                            [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.] [(g) With the prior approval of the executive secretary, a sending racetrack may transmit and receive wagering information via a dial-up telephone line.] sec.321.208. Emergency Procedures. (a) If an association is unable to establish or to maintain the audio or video signal from the sending racetrack, the association shall immediately notify the sending racetrack of the lost signal and may continue to accept wagers while attempting to establish the signal. (b) If the audio or video signal cannot be established or maintained, the association may continue to accept wagers on the signal provided: (1) an announcement is made to the public informing them that due to technical difficulties the audio or video signal has been lost; (2) the totalisator system licensee transmits the odds on the affected race to the video department to be displayed to the patrons; and (3) the totalisator system licensee locks all wagering on the affected race no later than one minute before post to ensure the integrity and transfer of the wagering pools. (c) If the sending racetrack loses the ability to transmit the audio or video signal, the sending racetrack: (1) shall notify all receiving locations of the technical difficulties being experienced; (2) may continue to accept wagers from the receiving locations on that day's races; (3) may not accept wagers from the receiving locations for subsequent race days until the technical difficulties have been corrected. [(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 video signal from the sending racetrack, the association shall immediately notify the sending racetrack of the lost signal. [(c) If the audio or video 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 while attempting to reestablish the audio or video signal [or until post time for the simulcast race. [(d) If both the audio and video signals are lost and the telephone linkup cannot be established, the association shall cease accepting wagers and immediately order a refund of all monies wagered into the pools for that race.] sec.321.209. Simulcasting Officials.
                                                              The mutuel manager or the mutuel manager's designee shall be present on association grounds at all times that the association is accepting wagers on simulcast races. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601314 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Simulcasting at Horse Racetracks 16 TAC sec.sec.321.232-321.235 The Texas Racing Commission proposes amendments to sec. s321.232-321.235, concerning pari-mutuel wagering on simulcast races at horse racetracks. The amendments change the requirements for negotiating with horsemen's representatives, allocation of purse and Texas-bred revenue, and prioritizing simulcast signals. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing the sections. Ms. Carter also has determined that for each of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that pari-mutuel wagering on simulcast races will be fair to the patrons, cost-effective for the racetracks, effectively regulated, and of the highest integrity. There will be fiscal implications for small businesses. The amount available for purses from intrastate simulcasting may shift among tracks located in Texas, because under the amendments, Texas tracks will share equally in purse revenues. This may cause the amount of purse revenue available at receiving tracks to decrease, while the amount of purse revenue available at sending tracks may increase. However, this is merely a shift of revenue and the total amount available for purses statewide is not expected to decrease because of the amendments. There will be no economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendments are proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering; and sec.11.011, which authorizes the commission to adopt rules to regulate pari-mutuel wagering on simulcast races. The proposed amendments implement Texas Civil Statutes, Article 179e. sec.321.232. Negotiation With Horsemen. [(a)] An association shall negotiate with the organization
                                                                [officially] recognized by the commission
                                                                  [horsemen's organization in this state] regarding the exporting and importing of simulcast signals during a live race meeting
                                                                    [all simulcasting]. [(b) If after a good faith effort the association and the organization cannot reach an agreement on simulcasting, either party may petition the commission to decide the issues in dispute. The decision of the commission is binding on all parties.] sec.321.233. Purses. (a) For any intrastate simulcast signal, the percentage of the revenue from the simulcast race(s) dedicated to purses in this state shall be equal to or greater than the minimum percentage required by the Act, sec.6.08 and the sending racetrack and the receiving location shall divide that revenue equally among them
                                                                      . (b) For any interstate simulcast signal [originating at a racetrack outside the state of Texas], an association shall provide that the percentage of the revenue from the simulcast race(s) dedicated to purses in this state shall be equal to or greater than the minimum percentage required by the Act, sec.6.08 unless a lesser amount is permitted by the officially recognized horsemen's organization in this state or by the commission. If the maximum net total takeout is reduced as a result of a common pool or the election by the association(s), the revenue for purses required under this subsection may be reduced by no more than on a pro-rata basis with that of the association's commission. (c) (No change.) sec.321.234. Allocation of Purses and Funds for Texas Bred Incentive Programs. (a) The funds derived by an association
                                                                        from a simulcast that are dedicated to purses and the Texas Bred Incentive programs shall be allocated among the various breeds of animals in a manner determined by the association, subject to the approval of the commission
                                                                          [that is agreed to by the official breed registries and the association]. On request by the commission, the association shall provide documentation, formulae, or other evidence to support its proposed allocation of funds. [(b) If after a good faith effort the association and the appropriate registries cannot reach an agreement on simulcasting, any party may petition the commission to decide the issues in dispute. The decision of the commission is binding on all parties.] (b)
                                                                            [(c)] An association shall set aside for the Texas Bred Incentive program at least 10% of the gross amount paid by an out-of-state receiving location to receive simulcasts of the association's races. An association shall allocate funds set aside under this subsection to the various breed registries in accordance with subsection (a) of this section. A breed registry shall distribute funds received under this subsection in the same manner as funds received pursuant to the Act, sec.6.08(f). sec.321.235. Priority of Signals. (a) Intra-state simulcasting. (1) A Class 1 or 2 racetrack may offer pari-mutuel wagering on a simulcast signal from any Texas racetrack that is conducting live races. (2) During a live race meeting, a Class 3 or 4 racetrack may offer pari- mutuel wagering on a simulcast signal from any Texas racetrack that is conducting live races. [(a) A Class 1 racetrack may offer wagering only on a race simulcast from another Class 1 Texas racetrack on dates when such a signal is made available pursuant to a contract between the sending track and receiving location and approved by the commission. If no such signal is available, a Class 1 racetrack may provide wagering on simulcast races originating from other racetracks in Texas or another jurisdiction, subject to the approval of the commission.] (b) Interstate simulcasting. (1) A Class 1 or 2 racetrack may offer pari-mutuel wagering on a race simulcast from another jurisdiction, subject to the approval of the commission provided the Class 1 or 2 racetrack also offers all available simulcast races originating in Texas on that day. (2) During a live race meeting, a Class 3 or 4 racetrack may offer pari- mutuel wagering on a race simulcast from another jurisdiction, subject to the approval of the commission, provided: (A) the Class 3 or 4 racetrack also offers all available simulcast races originating in Texas on that day; and (B) each Class 1 racetrack conducting live races on that day agrees to the receipt of the out-of-state signal
                                                                              . (c) A simulcast authorized by this section is subject to the commission's rules relating to the approval of simulcasting. [(b) A Class 2 racetrack may offer wagering only on a race simulcast from Class 1 Texas racetrack on dates when such a signal is made available pursuant to a contract between the sending track and receiving location and approved by the commission. If no such signal is available, a Class 2 racetrack may offer wagering only on a race simulcast from another Class 2 Texas racetrack on dates when such a signal is made available pursuant to a contract between the sending track and receiving location and approved by the commission. If no such signal is available, a Class 2 racetrack may provide wagering on races originating in another jurisdiction, subject to the approval of the commission. [(c) A Class 3 or 4 racetrack may not conduct a simulcast race meeting. A Class 3 or 4 racetrack may conduct wagering on simulcast races on dates when live racing is conducted at the racetrack only on races simulcast from a Class 1 Texas racetrack. If no such signal is available, a Class 3 or 4 racetrack may provide wagering on simulcast races originating at any racetrack in Texas or another jurisdiction, subject to the approval of the commission. [(d) At any time that a Class 1 racetrack is conducting live races, any other Class 1 or 2 racetrack may receive the simulcast signal from the Class 1 racetrack conducting live races and conduct pari-mutuel wagering on the simulcast races, subject to the provisions of sec.321.205 (relating to Simulcasting Contract) and sec.321.232 (relating to Negotiation with Horsemen).] This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601315 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 Common Pool Wagering 16 TAC sec.321.272, sec.321.275 The Texas Racing Commission proposes amendments to sec.321.272 and sec.321. 275, concerning common pooling of pari-mutuel wagers on simulcast races. The amendments change the requirements for transmitting wagering data for common pools between the sending and receiving racetracks and for filing the report on the common pool. Paula Cochran Carter, General Counsel for the Texas Racing Commission, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing the sections. Ms. Carter also has determined that for each of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that pari-mutuel wagering on simulcast races will be fair to the patrons, cost-effective for the racetracks, effectively regulated, and of the highest integrity. There will be no fiscal implications for small businesses. There will be no economic cost to persons who are required to comply with the sections as proposed. Comments on the proposal may be submitted on or before March 11, 1996, to Paula Cochran Carter, General Counsel for the Texas Racing Commission, P.O. Box 12080, Austin, Texas 78711. The amendments are proposed under the Texas Civil Statutes, Article 179e, sec.3.02, which authorize the commission to adopt rules for conducting racing with wagering and for administering the Texas Racing Act; sec.6.06, which authorizes the commission to adopt rules on all matters relating to the operation of racetracks; sec.11.01, which authorizes the commission to adopt rules to regulate pari-mutuel wagering; and sec.11.011, which authorizes the commission to adopt rules to regulate pari-mutuel wagering on simulcast races. The proposed amendments implement Texas Civil Statutes, Article 179e. sec.321.272. Formation of Common Pool. (a) Wagering data shall be transmitted through a method authorized by this subsection, in the following order of preference: (1) via a [dedicated] data circuit; [(2) via a dial back-up;] (2)
                                                                                [(3)] via [telecopy or] facsimile; or (3)
                                                                                  [(4)] by voice. (b)-(c) (No change.) sec.321.275. Report to Commission. An association participating in a common pool shall submit to the commission a report on the pool on
                                                                                    [not later than the tenth day after] the date of the performance for which the pool was formed. The report shall contain: (1)-(6) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1996. TRD-9601316 Paula Cochran Carter General Counsel Texas Racing Commission Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 833-6699 TITLE 22. EXAMINING BOARDS Part XXI. Texas State Board of Examiners of Psychologists Chapter 463. Applications 22 TAC sec.463.32 The Texas State Board of Examiners of Psychologists proposes new sec.463. 32, concerning Specialist in School Psychology. The new rule is being proposed in order to define what an individual must do to obtain a license as a Specialist in School Psychology. The new rule sets forth training and examination requirements for applicants for this license. The rule also defines what individuals are eligible for grandparenting into the license and how temporary licenses can be obtained to provide psychological services in the public schools. Rebecca E. Forkner, executive director, has determined that for the first five- year period the section is in effect, the cost to the Agency to implement this license is approximately $39,000 for fiscal year 1996 and $25,000 for fiscal year 1997 and every year thereafter. However, the 74th Legislature did not provide the Agency with appropriation authority to cover this cost. The revenue generated by application fees and renewal fees collected from these individuals would more than offset the anticipated costs. The Agency estimates the revenue would increase by $60,000 in fiscal year 1996 and by $30,000 in fiscal year 1997 and every year thereafter. The Agency anticipates no fiscal implications for local government as a result of enforcing or administering the section. Ms. Forkner also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to ensure the protection of the health and welfare of the citizens of Texas, in particular the children who attend public schools in Texas, by ensuring that individuals who provide psychological services in the public schools meet certain minimum requirements and are subject to the requirements and regulations of the agency. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section will be in direct proportion to the cost of application fees, plus the costs of taking and passing the examinations required for licensure as set forth by the Educational Testing Service and in sec.473.2 of the Board's rules, as well as the fees for annual renewal of the license. Comments on the proposal may be submitted to Janice C. Alvarez, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 78701, (512) 305-7700. The new rule is proposed under Texas Civil Statutes, Article 4512c, Section 26, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. The proposed new rule does not affect other statutes, articles, or codes. sec.463.32. Licensed Specialist in School Psychology. Section 21.003(b), Education Code, authorizes the Board to set rules for a Licensed Specialist in School Psychology. This license replaces the school psychologist and associate school psychologist certificates previously issued by the Texas Education Agency for providers of school psychological services. For definitions, see sec.465.38 of this title (relating to Psychological Services in the Schools). (1) Training Qualifications. Candidates for Licensure as a Specialist in School Psychology with a currently valid National Certified School Psychologist (NCSP) certification or who have graduated from a training program approved by the National Association of School Psychologists or accredited in School Psychology by the American Psychological Association will be considered to have met the training qualifications. Other applicants must have completed a graduate degree in psychology from a regionally accredited academic institution, and have at least 60 graduate level semester credit hours, no more than 12 of which may be internship. A graduate degree in psychology means the name of the candidate's major or program of studies must be titled psychology. These applicants must submit evidence of graduate level coursework and internship as follows: (A) Psychological Foundations-minimum one course in each of the following: (i) biological bases of behavior (ii) human learning (iii) social bases of behavior (iv) multi-cultural bases of behavior (v) child or adolescent development (vi) psychopathology or exceptionalities (B) Research or Statistics-minimum one course (C) Educational Foundations-minimum one course in each of the following: (i) instructional design (ii) organization and operation of schools (D) Assessment-minimum one course in each of the following: (i) psychoeducational assessment (ii) emotional or behavioral or cultural assessment (E) Interventions-minimum one course in each of the following: (i) counseling (ii) behavior management (iii) consultation (F) Professional Issues and Ethics-minimum one course (G) Practicum (including assessment) -minimum one course (H) Internship or experience-minimum 1,200 hours, of which 600 must be in a public school. The internship or experience in the public school must be supervised by an individual qualified in accordance with sec.465.38 of this title (relating to Psychological Services in the Schools). Internship or experience which is not obtained in a public school must be supervised by a licensed psychologist. No experience with a supervisor who is related within the second degree of affinity or within the second degree by consanguinity to the person, nor is under Board disciplinary order, may be considered for Specialist in School Psychology licensure. Internships may not involve more than two sites (a school district is considered one site) and may be obtained in not less than one or more than two academic years. The title Specialist in School Psychology "Intern" or "Trainee" is to be used during this time. Direct, systematic supervision must involve a minimum of one face-to-face contact hour per week or two consecutive face-to-face contact hours once every two weeks with the intern. Experiences must include assessment, intervention, behavior management, and consultation, for children representing a range of ages, populations and needs. (2) Examinations. Candidates for licensure as a Specialist in School Psychology must take and pass the Board's Jurisprudence Exam. Candidates must also take the national School Psychology Examination administered by the Educational Testing Service and obtain at least the current cut-off score for the NCSP. (3) Additional Requirements. In addition to the requirements of subparagraphs (1) and (2) of this section, candidates for licensure as a Specialist in School Psychology must meet the requirements imposed under sec.11(d) of the Psychologists' Certification and Licensing Act. (4) Temporary Licenses. Individuals from another jurisdiction who meet the requirements as set forth in sec.15A of the Psychologists' Certification and Licensing Act may apply to the Board for a temporary license to offer psychological services in the public schools if they meet all the requirements for temporary licensure as a licensed specialist in school psychology as set forth in sec.463.5 of this title (relating to Application File Requirements). This license is valid for a period not to exceed one academic year. (5) Grandparenting Provision for the Licensed Specialist in School Psychology. (A) Grandparenting Time Period. A person who, on or after September 1, 1992, but before September 1, 1996, was providing psychological services in a public school of this state and was also credentialed by this Board, or the National School Psychologists' Certification Board, or the Texas Education Agency as a school psychologist or associate school psychologist is entitled to a license as a Licensed Specialist in School Psychology under sec.26 of the Psychologists' Certification and Licensing Act, without examination, if the person applies to the Board for the license before September 1, 1997. Persons who qualify for Grandparenting may continue to practice under their present certification or license until they obtain the Specialist in School Psychology license, with September 1, 1997 being the final date to apply. (B) Application Requirements. A completed application for grandparenting licensure as a specialist in school psychology includes: (i) an application and required fee; (ii) two current passport pictures of the applicant; (iii) verification sent directly to the Board from the school district superintendent or his/her administrative designee that the applicant provided psychological services in the district during the period set forth in subparagraph A of this paragraph. (iv) verification sent directly to this Board from the credentialing agency of the applicant's certification/licensure as set forth in subparagraph A of this paragraph. Any individual who holds either a temporary, intermediate or one year certificate issued by the Texas Education Agency must produce proof that their deficiency plans have been completed by September 1, 1997 to qualify for a license under this paragraph. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 29, 1996. TRD-9601264 Rebecca E. Forkner Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 305-7700 Chapter 465. Rules of Practice 22 TAC sec.465.38 The Texas State Board of Examiners of Psychologists proposes new sec.465. 38, concerning Psychological Services in the Schools. The new rule is being proposed in order to define the type and scope of practice permitted by individuals who provide psychological services in the public school systems of Texas as Licensed Specialists in School Psychology, as well as the minimum level of competency that all practitioners must possess in order to obtain licensure under the section. Rebecca E. Forkner, executive director, has determined that for the first five- year period the section is in effect, the cost to the Agency to implement this license is approximately $39,000 for fiscal year 1996 and $25,000 for fiscal year 1997 and every year thereafter. However, the 74th Legislature did not provide the Agency with appropriation authority to cover this cost. The revenue generated by application fees and renewal fees collected from these individuals would more than offset the anticipated costs. The Agency estimates the revenue would increase by $60,000 in fiscal year 1996 and by $30,000 in fiscal year 1997 and every year thereafter. The Agency anticipates no fiscal implications for local government as a result of enforcing or administering the section. Ms. Forkner also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to ensure the protection of the health and welfare of the citizens of Texas, in particular the children who attend public schools in Texas, by ensuring that individuals who provide psychological services in the public schools meet certain minimum requirements and are subject to the requirements and regulations of the agency. There will be no effect on small businesses. The anticipated economic cost to persons who are required to comply with the section will be negligible. Comments on the proposal may be submitted to Janice C. Alvarez, Texas State Board of Examiners of Psychologists, 333 Guadalupe, Suite 2-450, Austin, Texas 78701, (512) 305-7700. The new rule is proposed under Texas Civil Statutes, Article 4512c, Section 26, which provide the Texas State Board of Examiners of Psychologists with the authority to make all rules, not inconsistent with the Constitution and Laws of this State, which are reasonably necessary for the proper performance of its duties and regulations of proceedings before it. The proposed new rule does not affect other statutes, articles, or codes. sec.465.38. Psychological Services in the Schools. This rule acknowledges the unique difference in the delivery of school psychological services in the public schools from psychological services in the private sector. The Board recognizes the purview of the State Board of Education and the Texas Education Agency in safeguarding the rights of public school children in Texas. The mandated multidisciplinary team decision making, hierarchy of supervision, regulatory provisions, and past traditions of school psychological service delivery both nationally and in Texas, among other factors, allow for rules of practice in the public schools which reflect these occupational distinctions from the private practice of psychology. (1) Definition. The Specialist in School Psychology license is for provision of school psychological services specifically in the public schools of this state. A Licensed Specialist in School Psychology means a person who is trained to address psychological and behavioral problems manifested in and associated with educational systems by utilizing psychological concepts and methods in programs or actions which attempt to improve the learning, adjustment and behavior of students. The assessment of emotional or behavioral disturbance, for educational purposes, using psychological techniques and procedures is considered the practice of psychology. (2) Providers of School Psychological Services. School psychological services may be provided in Texas public schools only by individuals authorized by this Board to provide such services. Individuals who may provide such school psychological services include Licensed Specialists in School Psychology, interns or trainees as defined in sec.463.32 of this title (relating to Specialist in School Psychology) and individuals holding a Temporary License issued by this Board to provide such services under sec.463.32 of this title (relating to Specialist in School Psychology). Nothing in this rule prohibits public schools from retaining licensed psychologists and licensed psychological associates who are not licensed specialists in school psychology to provide psychological services, other than school psychology, in their areas of competency. (3) Supervision. Direct systematic, face-to-face supervision must be provided to Licensed Specialists in School Psychology for a period of one academic year following the internship. Individuals licensed under the grandparenting provisions of sec.463.32 of this title (relating to Licensed Specialist in School Psychology) are exempt from this requirement. Any Licensed Specialist in School Psychology must be supervised when providing psychological services outside his or her area of training and supervised experience. Nothing in this rule applies to administrative supervision of psychology personnel within the public schools, often done by non-psychologists, in job functions involving, but not limited to, attendance, time management, completion of assignments, or adherence to school policies and procedures. (4) Supervisor Qualifications. Supervision must be provided by a Licensed Specialist in School Psychology with a minimum of three years experience providing psychological services in the public schools. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 29, 1996. TRD-9601265 Rebecca E. Forkner Executive Director Texas State Board of Examiners of Psychologists Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 305-7700 TITLE 25. HEALTH SERVICES Part I. Texas Department of Health Chapter 38. Chronically Ill and Disabled Children's Services Program 25 TAC sec.38.6 The Texas Department of Health (department) proposes an amendment to sec.38.6, relating to providers for the Chronically Ill and Disabled Children's Services Program (CIDC). Increasing service costs, without increases in general revenue funding, have necessitated review of all aspects of CIDC service delivery and client eligibility. Currently, CIDC providers also must be Texas Medicaid providers. The proposed amendment to sec.38.6 would authorize CIDC to enroll as providers those drug manufacturers and pharmacies affiliated with disease- specific nonprofit associations that can demonstrate their ability to provide medications to Texas CIDC clients in a timely manner and at a savings in cost to the program. Debra Stabeno, Associate Commissioner for Health Care Delivery, has determined that for the first five-year period the section, as proposed, is in effect, there will be fiscal implications as a result of enforcing or administering the section. The effect on state government is estimated to be a reduction in cost of $10,000 per fiscal year (FY) for FYs 1996 through 2000. There are no anticipated fiscal implications for local governments. Ms. Stabeno also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the amendment will be to reduce costs to CIDC for drugs purchased for clients. There will be no effect on small businesses or persons who are required to comply with the section as proposed. There is no anticipated impact on local employment. Comments on the proposed amendment may be submitted to Susan C. Penfield, M. D., Director, Children's Health Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756-3179, (512) 458-7111, Extension 3104. Public comments will be accepted for 30 days following the publication of the proposal in the Texas Register. The amendment is proposed under Health and Safety Code, s35.004, which allows the Board of Health (board) to adopt rules for the selection of providers; and under Health and Safety Code, sec.12.001(b), which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health. The amendment will affect Health and Safety Code, Chapter 35. sec.38.6. Providers. (a) General requirements for participation. The Chronically Ill and Disabled Children's Services (CIDC) Act, Health and Safety Code, sec.35.004, provides the Texas Board of Health (board) with the authority to approve the physicians, dentists, podiatrists, facilities, specialty centers, and other providers to participate in the CIDC Program according to criteria and procedures adopted by the Texas Board of Health. (1)-(5) (No change.) (6) Except as provided in subsection (h) of this section, all
                                                                                      [All] types of providers who are qualified to enroll in the Title XIX Medicaid Program must participate as Medicaid providers in order for the client to utilize Medicaid coverage. The CIDC Program will not pay a provider for any service that could have been reimbursed by Medicaid. (7) (No change.) (b)-(g) (No change.) (h) Drug manufacturers and disease-specific nonprofit association pharmacies. In order to make quality drugs available to CIDC clients at the best available prices, and in accordance with CIDC reimbursement policies, the CIDC Program will approve as CIDC providers drug manufacturers or disease-specific nonprofit association pharmacies which otherwise would be ineligible for enrollment under subsection (a)(6) of this section. To be approved as a provider under this section, a drug manufacturer or a pharmacy affiliated with a national disease-specific nonprofit association must document: (1) its capacity to supply CIDC clients in Texas with drugs in a timely, dependable manner; and (2) its ability to supply drugs to CIDC clients in Texas at a lower cost, including any applicable shipping charges, than is available from providers enrolled under subsection (a)(6) of this section. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 29, 1996. TRD-9601237 Susan K. Steeg General Counsel Texas Department of Health Earliest possible date of adoption: March 11, 1996 For further information, please call: (512) 458-7111 Chapter 241. Shellfish Sanitation Texas Crab Meat 25 TAC sec.sec.241.1, 241.2, 241.4-241.29 The Texas Department of Health (department) proposes amendments to sec.sec.241.1, 241.2, and 241.4-241.29, concerning Texas crab meat. The sections cover definitions; grounds and arrangements; sanitary controls; water supplies, storage areas, processing of crabs, maintenance and cleaning; records and supervision. The amendments will update and clarify the existing rules and will implement the statutory changes adopted by the 73rd Legislature. The amendments add new definitions and update existing definitions; establish new standards for the processing and distribution of crab meat; and establish new licensing and enforcement procedures. Richard E. Thompson, director, Seafood Safety Division, has determined that for the first five-year period the sections are in effect there will be minimal fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government will occur only as a result of enforced administrative penalties. There will be no fiscal implications to local government. Mr. Thompson also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be better assurance that crab meat processed in or imported into Texas will be free of disease or other health hazards transmissible by these products. There is no anticipated economic cost to persons or small businesses who are required to comply with the sections. Cost will only occur as a result of administrative penalties assessed against crabmeat businesses who do not comply. There will be no effect in local employment. Comments on the proposal may be submitted to Richard E. Thompson, R.S., Director, Seafood Safety Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756, (512) 719-0215. Comments will be accepted for 30 days from the date of publication of this proposal. Public hearings to receive comments on the proposed amendments will be held on Tuesday, February 27, 1996, at 7:00 p.m. at the Bauer Exhibit Building at the fairgrounds on County Road 101, Port Lavaca, Texas, and on Wednesday, February 28, 1996, at 7:00 p.m. at the auditorium in the classroom laboratory building, Pelican Island Campus, Texas A&M University, Galveston, Texas. The amendments are proposed under the Texas Health and Safety Code, sec.436. 12 and sec.12.001, which provides the Texas Board of Health with the authority to adopt rules for the performance of every duty imposed by law on the Texas Board of Health, the Texas Department of Health, and the commissioner of health. The amendments affect Texas Health and Safety Code, sec.436.12. sec.241.1. Definitions. The following words and terms, when used in these sections, shall have the following meanings, unless the context clearly indicates otherwise. Approved-Acceptable to the commissioner of health and the Seafood Safety Division
                                                                                        [Division of Shellfish Sanitation Control] . Crab meat-The edible meat of steamed or cooked crabs, without [other] processing other
                                                                                          than picking, packing and chilling. Department [(TDH)] -The Texas Department of Health, 1100 West 49th Street, Austin Texas 78756, or its successor. [Division of Shellfish Sanitation Control (DSSC) -The division of the TDH to which responsibility for regulating the processing, packing, and shipping of crab meat is delegated.] Durable material -Material with the ability to exist for several years without significant deterioration and able to withstand normal daily use associated with crab meat processing operations. License-A numbered document issued by the SSD
                                                                                            [DSSC] which authorizes a licensee
                                                                                              [person] to process crab meat for sale. Licensee-A processor who has complied with all regulations established by the SSD and has obtained a license. A licensee may be an individual, partnership, corporation, association, or other legal entity. License number -The number assigned by the SSD
                                                                                                [DSSC] to each licensed crab dealer which consists of a one to five digit number preceded by the two letter state abbreviation and followed by the one or two letter symbol designating the type of operation licensed (C-picking and packing; CP-picking, packing, and pasteurizing). Licensing-The issuing by the SSD
                                                                                                  [DSSC] of a numbered document to operate that indicates compliance with these sections. [Person-An individual, partnership, corporation, association or other legal entity.] Potable water-A public or private water source which is safe and suitable for drinking by humans. Processor-A licensee
                                                                                                    [person] who cooks, backs, [and] picks [crabs], [and] packs and may pasteurize
                                                                                                      crab meat. Seafood Safety Division (SSD)-The division of the department to which responsibility for regulating the processing, packing, and shipping of crab meat is delegated. Sewage-Primarily organic and biodegradable or decomposable and generally originates as human, animal, or plant waste from certain activities, including the use of toilet facilities, washing, bathing, and preparing food. Sewer-An artificial, usually subterranean, conduit to carry off sewage and sometimes surface water. Sewerage-The removal and disposal of sewage and surface water by sewers. Water closet-A toilet bowl and its accessories surrounded by walls or partitions. sec.241.2. Licensing and Enforcement Procedures. (a) No crab meat shall be offered for sale for food in the State of Texas unless the crab meat has been processed and packaged in compliance with these sections or obtained from sources outside the state accepted by the Texas Department of Health (department)
                                                                                                        [TDH]. If obtained from sources outside of the state, the crab meat shall originate from a crab meat processor currently licensed by the appropriate state or other government authority. Crab meat obtained from sources other than those outlined in this section shall be considered unfit for human consumption. No one
                                                                                                          [person] shall engage in the processing and packing of crab meat for sale without having complied with these sections. No one
                                                                                                            [person] shall engage in any activity requiring a license under these sections without having applied for and obtained a numbered license from the commissioner. A license shall automatically be invalid if there is a 5.0% or more change in shares of company stock owned by any company board member. (b) Prior to beginning
                                                                                                              construction of a new crab meat plant, or major remodeling of an existing crab meat plant, (which includes, but is not limited to: any process new to that particular plant; any change of product flow; or any enlarging of the plant structure); complete, legible plans showing the floor plan of the building, with dimensions drawn to scale, location of equipment, doors, floor drains, etc., and written, complete operational procedures for all phases of the activity, including flow of the product, shall be submitted to the Seafood Safety Division (SSD)
                                                                                                                [TDH's Division of Shellfish Sanitation Control (DSSC)] for review and approval. Additional plans of the entire premises shall be required showing all structures, as well as, all water wells and septic systems with related distances and a statement of specifications as to type, sizes, design, date installed, etc. Plans shall be submitted no less than 30 days prior to initiating a new process or beginning construction.
                                                                                                                  No operations shall be conducted while any inside plant construction or any other construction which has the potential to contaminate the product is occurring. A legibly written or typed application on forms provided by the department
                                                                                                                    [DSSC] must be filed with the SSD
                                                                                                                      [DSSC] before any crab meat processing begins each license year. (c) The application for a license must be accompanied by a letter from the appropriate state agency, authorized agent, or designated representative, as defined in the Health and Safety Code, Chapter 366, which states that the water supply is potable and the sewage disposal system is working properly. (1) For new construction, where the letter can not be submitted with the application, it must be submitted after the water supply connection is made and the sewage system is installed or the connection to an existing sewage system is made, the water supply and sewage system are inspected, and before the license will be issued. (2) For licensed locations where the crab meat activities are of a continuing nature, a letter concerning a public water supply and/or public sewage system shall be acceptable for a period not to exceed five years from the date of the letter. (3) For licensed locations where the crab meat activities are of a continuing nature, a letter concerning a private water supply and/or private sewage system shall be acceptable for a period not to exceed three years from the date of the letter. (4) A copy of the original letter may be submitted with the new application required each year. (5) If changes in activities increase the demand for water supply or the loading on the sewage system, if any construction or maintenance is required on the water supply or the sewage system or if any problems are observed or detected with the water supply or the sewage system, a new letter will be required. (d) The application for a license must be accompanied by acceptable sample results from at least one water sample from the water supply collected during the thirty day period immediately prior to the date on the application. (e) The application for a license must be accompanied by a written statement of the procedure the applicant will use to determine the SELL BY date for crab meat packed and shipped from the location listed in the application, if the applicant proposes to use a SELL BY date. (f) A license and unique
                                                                                                                        number shall be issued by the commissioner only after an inspection of the plant by an authorized agent has revealed that the plant and past operational procedures
                                                                                                                          [operations] are in compliance with these sections. (g)
                                                                                                                            [(c)] The inspection of a previously licensed plant which has exhibited operational problems or violations of the operational requirements of these sections or had a license revoked shall not be conducted until written, complete operational procedures for all phases of the activity, including flow of the product, have been submitted to the SSD
                                                                                                                              [DSSC] for review and approval. An application may be rejected and a license denied based on past
                                                                                                                                [a history of] failure to comply with the requirements of these sections. (h) [(d)] Crab meat processing at the plant shall not begin until the commissioner has issued the Crab Meat Processing License for that location
                                                                                                                                  [license issued by the commissioner has been received and posted at the plant]. Each license shall expire automatically at 11:59 p.m. the last day of February following the date of issue. Licenses shall not be transferable. (i)
                                                                                                                                    [(e)] After a license is issued, unannounced inspections shall be conducted at any time the SSD
                                                                                                                                      [DSSC] has reason to believe the plant may be in operation or that crab meat may be stored on the premises
                                                                                                                                        and at such frequency as may be necessary to assure that adequate operational and sanitary conditions are maintained [and shall be conducted a minimum of three times each six months]. All crab meat at a licensed location shall be considered the responsibility of the licensed dealer at that location, for the purposes of this undesignated head.
                                                                                                                                          A copy of the completed inspection form listing written descriptions of the violations observed, along with any necessary explanation, shall be provided by an authorized agent of the department
                                                                                                                                            [TDH] to the most responsible individual present at the firm at the conclusion of the inspection. Any violation of the same requirement found on a consecutive inspection may result in license suspension
                                                                                                                                              [revocation] in accordance with subsection (j)
                                                                                                                                                [(f)] of this section. (j)
                                                                                                                                                  [(f)] The SSD
                                                                                                                                                    [DSSC] may initiate procedures to suspend or
                                                                                                                                                      revoke a license as follows. (1) The procedures[, including the opportunity for a hearing prior to revocation,] shall be in accordance with Texas Health and Safety Code, sec.436.114, and the
                                                                                                                                                        provisions of the Administrative Procedure [and Texas Register] Act, the Government Code, Chapter 2001
                                                                                                                                                          [Texas Civil Statutes, Article 6252-13a], and the department's
                                                                                                                                                            [TDH] formal hearing procedures in Chapter 1 of this title (relating to the Board of Health). (2) The grounds for suspension or
                                                                                                                                                              revocation shall be either
                                                                                                                                                                one [or more] of the following: (A) inspection results indicate unsatisfactory conditions in the plant or the existence of a public health hazard; or (B) the license holder or representative refuses to allow an inspection or otherwise interferes with an
                                                                                                                                                                  [the] authorized [TDH] agent of the department
                                                                                                                                                                    in the performance of his or her duties. (k) A licensee whose license has been suspended may not process any crab meat for a period determined by the commissioner, not to exceed 60 days after the date of signing of the final order of suspension. (l)
                                                                                                                                                                      [(g)] A licensee
                                                                                                                                                                        [person] whose license has been suspended
                                                                                                                                                                          [revoked] shall not process any crab meat until the SSD
                                                                                                                                                                            [DSSC] is satisfied that all necessary corrections have been made. A suspension will not be rescinded
                                                                                                                                                                              [new license shall not be issued] until an inspection establishes that the firm has corrected all violations which resulted in the suspension and
                                                                                                                                                                                is in full compliance with all applicable criteria of these sections. [A person whose license has been revoked shall not apply for a new license until 30 days after the date of signing of the final order of revocation.] (m) A license may be revoked for any of the reasons outlined in subsection (j) of this section or for either of the following: (1) the violations initiating a suspension fail to be corrected within the time frame established; or (2) the license has been suspended more than twice. (n) A licensee whose license has been revoked shall not apply for a new license for 180 days or before the next licensing period, whichever is longer, after the date of signing of the final order of revocation. When the department contemplates suspension or revocation, the license holder shall be afforded the opportunity for a hearing. Notice of the contemplated action shall be given to the license holder by personal service or certified mail, return receipt requested. If no request for a hearing is received by the director, within 14 days of personal service or the date of receipt, the department may proceed to take the action set out in the notice. (o) When the department determines that monetary penalties are appropriate, proposals for assessment of and hearings on administrative penalties shall be made in accordance with Texas Health and Safety Code, sec.436.114, the Administrative Procedures Act, the Government Code, Chapter 2001, and the department's formal hearing procedures in Chapter 1 of this title (relating to the Board of Health). (p) The seriousness of violations shall be categorized by one of the following severity levels. The examples following the severity levels are neither exhaustive nor controlling. They reflect only the seriousness of the violation and not the intent of the violator, the history of the violator, the amount necessary to deter future violations, or efforts to correct the violation. (1) Severity Level V -violations that are of minor public health significance. The following are examples of severity level V violations: (A) failure to keep premises clean and have adequate drainage; (B) failure to clean/maintain floors, walls, or ceilings; (C) failure to provide adequate and properly shielded lighting; (D) failure to post hand washing signs at hand washing stations; and (E) failure to restrict pickers from the packing room and all unauthorized persons from processing areas when operating. (2) Severity Level IV -Violations that are of more than minor significance, or if left uncorrected, could result in more serious violations. The following are examples of severity level IV violations: (A) failure to provide or use storage for employee clothing or personal articles; (B) failure to have clean, maintained, adequately drained floor; (C) failure to provide adequate heating/cooling/ventilation; (D) failure to provide adequate quantity of water to facility; (E) failure to provide hand washing stations with soap, sanitary towels, and/or waste receptacles with proper lids; (F) failure to properly construct, locate, maintain, and/or keep clean all non-food contact surfaces; (G) failure to provide detergents, approved sanitizers, brushes, and/or test kit to properly clean and sanitize the facility; (H) failure to properly store and/or keep single service containers clean; (I) failure to maintain frozen crab meat at 0 degrees Fahrenheit or less; (J) failure to require employees to wear clean outer garments, impermeable finger cots; to store properly; to wear proper hair restraints; (K) failure to promptly remove crab scrap or other accumulation; and (L) failure to meet code and/or install water disposal correctly or have adequate drainage where operations discharge water. (3) Severity Level III -Violations that are significant and which, if not corrected, could threaten public health. The following are examples of severity level III violations: (A) failure to exclude insects, rodents, vermin, or any other animals; (B) failure to provide hot and cold water at each sink/lavatory; (C) failure to protect plumbing from backflow, backsiphonage, and/or cross contamination; (D) failure to have toilets clean, repaired, or have self-closing doors; (E) failure to properly use, store, separate, and/or label poisonous/toxic materials; (F) failure to properly construct, locate, clean, and/or maintain food contact surfaces; (G) failure to provide a temperature measuring device in each refrigeration unit; (H) failure to wash/sanitize employees hands and/or exhibit good hygienic practice; (I) failure to restrict any personnel with infections from participating in crab meat processing operations; and (J) failure to maintain complete and accurate records. (4) Severity Level II -Violations that have a significant adverse impact on public health. The following are examples of severity level II violations: (A) failure to separate operations by partition, space, or time; (B) failure to provide adequate refrigeration units; (C) failure to clean and sanitize food contact surfaces effectively and within required time frame; (D) failure to label crab meat or properly complete label; (E) failure to protect crab meat from contamination; (F) failure to pack into containers with a valid license number for that location; comply with label requirements; to use proper date; (G) failure to promptly pick, pack, pasteurize, and/or protect the crab meat; and (H) failure to have responsible, effective, or designated person as supervisor. (5) Severity Level I -Violations that are most significant and create an imminent hazard to public health. The following are examples of severity level I violations: (A) failure to cease operations when location/plant is flooded; (B) failure to protect the water supply from contamination; (C) failure to install sewage disposal system properly; maintain or meet code; be adequate; (D) failure to maintain crab meat at the proper temperature; (E) failure to keep product from becoming contaminated; (F) failure to cool packed product to 45 degrees Fahrenheit within two hours of delivery to the packing room; (G) failure to maintain packed product at 40 degrees Fahrenheit or less during storage or to cover in ice; and (H) failure to provide sanitary ice and/or properly protect it. (q) The department may impose differing levels of penalties for different severity level violations and different persons. (1) Administrative penalties shall be imposed for Severity Level I, II and III violations. Administrative penalties shall be considered for Severity Level IV and V violations when they are combined with those of higher severity level(s) or for repeated violations which could have been prevented by corrective action and for which the license holder did not take effective corrective action. (2) Tables IA and IB show the base administrative penalties.
                                                                                                                                                                                  FIGURE 2: 25 TAC sec.241.2(q)(2)
                                                                                                                                                                                    FIGURE 3: 25 TAC sec.241.2(q)(2) (3) Adjustments to the values in Tables IA and IB in paragraph (2) of this subsection may be made for the presence or absence of the following factors: (A) prompt identification and reporting; (B) corrective action to prevent recurrence; (C) compliance history; (D) prior notice of similar event; and (E) multiple occurrences. (4) The penalty may be in an amount not to exceed $25,000 a day for each violation for a person who violates the Health and Safety Code, or this chapter, or an order. Each day a violation continues may be considered a separate violation for the purposes of penalty assessment. (r) The department may offer a license holder the opportunity to attend a settlement conference to discuss with the department, or a division thereof, methods and schedules for correcting the violation(s) or to show compliance with applicable provisions of the Health and Safety Code, this chapter, license conditions, and any orders of the department issued thereunder, or discuss both such topics. The department's Office of General Counsel may conduct settlement negotiations. (s) Notice of any settlement conference shall be sent by personal service or certified mail, return receipt requested. A settlement conference is not a prerequisite for the action to be taken under subsections (o), (p), or (q) of this section. (t)
                                                                                                                                                                                      [(h) ] By acceptance of a license, the holder agrees to save, hold harmless, and indemnify the State of Texas, the department
                                                                                                                                                                                        [TDH], and its employees against any and all liability, claims or losses for property damage or personal injury which result in whole or in part from the license holder's activities. The State of Texas shall not be held liable for financial losses incurred by the crab fishermen, plant supervisors, or plant owners due to failure of the crab industry, condemnation of crab meat, loss of crab meat, or other reasons. sec.241.4. Plant Location, Grounds, and Arrangements. (a)-(c) (No change.) (d) The backing room or area shall be adjacent to the cooking and cooling rooms and shall be physically separated from the live crab and cooking areas to prevent live crabs from entering the backing area. Where a crab rinsing
                                                                                                                                                                                          [washer] machine is utilized, it shall be located in the backing room. Entrance doors shall be provided to both the cooking and backing areas of the plant so that cooking and backing personnel can enter without passing through other processing areas of the plant. Cooking and backing personnel shall confine themselves to their particular area so as to retard cross-contamination of the cooked crab meat. (e)-(g) (No change.) (h) The waste product cool room shall be used to hold backing and picking room crab waste prior to disposal. This room shall be cleaned and disinfected each day of use. (i) All cooking, backing, picking, packing, and pasteurizing of crab meat in a picking or pasteurizing plant shall be conducted under one roof.
                                                                                                                                                                                            All processing areas for one plant shall be directly connected and shall be under one roof to eliminate contamination potentials. (j) Crab bait shall not be allowed to create sanitation or nuisance problems in or near
                                                                                                                                                                                              the crab meat plant at any time. (k) Processing and packing facilities shall be located so that they will not be subjected to flooding by ordinary high tides. If plant floors are flooded, all operations shall be discontinued and the SSD
                                                                                                                                                                                                [Texas Department of Health's (TDH) Division of Shellfish Sanitation Control (DSSC)] shall immediately be notified of the flooding. No operations may occur until waters have receded and the building is thoroughly cleaned and sanitized, and the facilities have been inspected by an authorized agent of the department
                                                                                                                                                                                                  [TDH]. (l)-(p) (No change.) (q) Because picking and packing operations occur in separate areas, a delivery opening
                                                                                                                                                                                                    [window], shelf, or counter shall be provided so that pickers do not enter the packing area. The delivery opening
                                                                                                                                                                                                      [window] area shall be equipped with a shelf or surface constructed of smooth, corrosion resistant, easily cleanable, durable
                                                                                                                                                                                                        materials which can be effectively sanitized. The shelf shall drain toward the picking room and, if necessary, be curbed on the packing room side. (r)-(s) (No change.) sec.241.5. Floors, Walls, and Ceilings. (a) Floors shall be constructed of smooth, easily cleanable, corrosion resistant, impervious, durable
                                                                                                                                                                                                          material. (b) (No change.) (c) The interior surfaces of rooms shall be smooth, washable, easily cleanable, corrosion resistant, impervious, constructed of durable material,
                                                                                                                                                                                                            white-colored, and shall be kept clean and in good repair. The interior surfaces shall be constructed and maintained to prevent contamination of the crab meat during holding or processing. sec.241.6. Insect and Vermin Control Measures. (a) (No change. ) (b) Insects, rodents, and other vermin, or evidence of their infestation, shall not be present inside any building which is associated with the licensed location
                                                                                                                                                                                                              . (c) Necessary external and
                                                                                                                                                                                                                internal insect and vermin control measures shall be used, and such measures shall be in compliance with all state and federal rules. The use of insecticides and rodenticides shall be permitted only under such precautions and restrictions as will prevent the contamination of the crab meat or packing materials with illegal residues, and will cause no health hazards to employees. sec.241.7. Lighting. (a) Safe and adequate lighting shall be provided in all areas. A minimum of 50 foot candles, verified by an authorized agent, shall be required at product level in all processing areas. (b) (No change.) sec.241.8. Heating, Cooling, and Ventilation. (a) (No change.) (b) Processors shall have their backing area cooled with mechanical refrigeration adequate to maintain the air temperature at 85 degrees Fahrenheit or less. (c)
                                                                                                                                                                                                                  [(b)] Processors shall have their picking and packing areas cooled with mechanical refrigeration adequate to maintain the internal air temperature at 72 degrees Fahrenheit or less. (d)
                                                                                                                                                                                                                    [(c)] Each processing room or area shall be equipped with an indicating thermometer installed to accurately measure, within three degrees, the temperature in the warmest location not to be more than six feet off the floor. sec.241.9. Water Supply. (a) Water used in any activity at a licensed location shall be from a potable supply.
                                                                                                                                                                                                                      [Potable water shall be from a safe source, and protected from contamination, and the water supply system shall be constructed, maintained, and operated according to applicable state laws and this undesignated head. All water distribution systems shall be designed and constructed so as to provide a minimum residual pressure of 20 pounds per square inch under peak demand conditions. Under normal operating conditions, minimum pressures should not be less than 35 pounds per square inch in the distribution system.] (b) (No change.) (c) Water of at least 110 degrees Fahrenheit
                                                                                                                                                                                                                        [Hot and cold water] shall be provided through a mixing valve at each compartment of every three compartment sink and at each hand washing lavatory. [(d) Water wells shall be so located that there will be no danger of pollution from flooding under normal conditions or from insanitary surroundings, such as, privies, sewage, sewage treatment plants, livestock and animal pens, solid waste disposal sites, or abandoned and improperly sealed wells. [(e) Well sites shall not be within 50 feet of a tile or concrete sanitary sewer, septic tank, or storm sewer, or within 150 feet of a septic tank perforated drainfield, absorption bed, evapotranspiration bed or underground fuel storage tank. [(f) No well site shall be located within 500 feet of a sewage treatment plant or within 300 feet of a sewage wet well, sewage pumping station or a drainage ditch which contains industrial waste discharges or the wastes from sewage treatment systems. [(g) No water wells shall be located within 500 feet of animal feed lots, solid waste disposal sites or lands irrigated by sewerage plant effluent. [(h) Livestock shall not be allowed within 50 feet of water supply wells. [(i) Abandoned water wells in the area of a proposed source shall be plugged and sealed properly to prevent possible contamination of freshwater strata. [(j) A sanitary control easement covering that portion of the lands within 150 feet of the well location shall be secured from all such property owners and recorded in the deed records at the county courthouse for all completed wells dug after the effective date of these sections. [(k) A concrete sealing block extending at least three feet from the well casing in all directions, with a minimum thickness of six inches and sloped to drain away at not less than 0.25 inches per foot shall be provided around the well head. [(l) Wellheads and pump bases shall be sealed by the use of gaskets or sealing compounds and, as applicable, properly vented to prevent the possibility of contamination of the well water. [(m) Upon completion of a new well, or after an existing well has been reworked, the well shall be disinfected and unused for at least six hours. After the water containing chlorine is completely flushed from the well, prior to placing the well in service, samples of water shall be collected and submitted for bacteriological analysis until three successive samples collected on separate days shall be free of coliform organisms. [(n) A suitable raw water sampling cock shall be provided on the discharge pipe of each well pump. [(o) Mechanical disinfection facilities capable of maintaining a free chlorine residual of 0.2-0.5 parts per million shall be provided with the point of injection prior to the hydropneumatic pressure tank or shall be ahead of the water storage reservoir(s), if a storage reservoir is provided. A test kit must be provided and available for testing the chlorine residual of the potable water. [(p) The use of disinfectants other than hypochlorination with mechanical injection shall be considered on a case-by-case basis. Hypochlorination solution containers and pumps shall be housed and locked to protect them from adverse weather conditions and vandalism. [(q) All hydropneumatic tanks shall be located wholly above grade and shall be of steel construction with welded seams. [(1) Metal thickness for hydropneumatic tanks shall be sufficient to provide at least a minimum of 1/8 inch corrosion allowance and to withstand the highest expected working pressures with a four to one factor of safety. [(2) All hydropneumatic tanks shall be provided with a pressure release device and an easily readable pressure gauge. [(3) The tank size shall be large enough to maintain 35 pounds per square inch working pressure to the farthest end of the distribution system and large enough to provide adequate disinfection contact time as reflected by negative confluent and/or coliform monthly sample results. The tank size shall not be less than 82 gallons.] (d)
                                                                                                                                                                                                                          [(r)] At least one sample of water taken from a
                                                                                                                                                                                                                            [the] distribution system which includes a private well
                                                                                                                                                                                                                              shall be submitted to an approved laboratory each month for bacteriological analysis. Any coliform positive or confluent (TNTC) sample shall necessitate resampling the water within 24 hours of receiving the result. All crab meat operations associated with the well shall immediately cease upon notification of a coliform positive result.
                                                                                                                                                                                                                                The SSD
                                                                                                                                                                                                                                  [The Texas Department of Health's Division of Shellfish Sanitation Control (DSSC)] shall be notified upon receipt of a coliform positive sample result. If the resample result is coliform positive, the SSD
                                                                                                                                                                                                                                    [DSSC] shall be notified upon receipt of the result and the SSD
                                                                                                                                                                                                                                      [DSSC] shall determine the appropriate steps for disinfection and/or resampling. Crab meat processing operations shall not resume until a coliform negative result is obtained and the SSD is properly notified. sec.241.10. Plumbing, Sewage, and Related Facilities. (a) (No change.) (b) Drainage outlets shall be constructed and maintained to prevent the possible entrance of insects and rodents. Floor drainage shall not be allowed to drain from the plant on top of the ground. (c)
                                                                                                                                                                                                                                        [(b)] There shall be no cross connections between the approved pressure water supply and water from an unapproved source, and there shall be no fixtures or connections through which the approved pressure water supply might be contaminated by backsiphonage. Adequate devices approved by a regulatory agency shall be installed to protect against backflow and backsiphonage at all fixtures and equipment where the air gap between the water supply inlet and the fixture's flood level rim is less than twice the diameter of the water system inlet. All submerged inlets including hoses attached to faucets shall be equipped with a backflow prevention device. If booster pumps are connected directly to the potable water supply, the pumps shall be equipped with a low pressure cutoff device or equivalent method to prevent backsiphonage. (d)
                                                                                                                                                                                                                                          [(c)] Hand washing facilities shall be adequate in number and size for the number of employees, convenient to the work areas, and located so that the person responsible for supervision can readily observe that employees wash their hands before beginning work and after each interruption. There shall be at least one hand washing lavatory located in each of these areas: the backing area; the picking room; and the packing room. At least one hand washing lavatory shall be provided in each of these three areas for every 15 employees among the first 100 employees, and at least one hand washing lavatory for each 25 employees in excess of the first 100 employees. (24 lineal inches of wash sink or 18 inches of a circular basin, when provided with water outlets for such space, will be considered equivalent to one lavatory.) Three compartment sinks shall not be used for hand washing, but may be used to sanitize the hands after washing them in a lavatory. There shall be at least one three compartment sink located in the picking room, and one in the packing room. A three compartment sink shall be provided in the picking room for every 20 pickers. There shall be at least one large basin sink in the backing room. These sinks shall be of adequate size to completely immerse and properly clean and sanitize
                                                                                                                                                                                                                                            equipment and utensils. (e)
                                                                                                                                                                                                                                              [(d)] Hand washing lavatories and three-compartment sinks shall be provided with hot water of at least 110
                                                                                                                                                                                                                                                [100] degrees Fahrenheit from either a controlled temperature source with a maximum temperature of 115 degrees Fahrenheit, or from a hot and cold mixing or combination faucet. Steam water mixing valves or steam water combination faucets shall not be acceptable. (f)
                                                                                                                                                                                                                                                  [(e)] A supply of hand cleaning soap or detergent shall be available at each hand washing lavatory
                                                                                                                                                                                                                                                    [facility]. A container of bactericide for hand rinsing purposes shall be provided near each group of lavatories in the processing areas. A supply of disposable towels or a suitable hand drying device that provides heated air shall be conveniently located near each hand washing lavatory
                                                                                                                                                                                                                                                      [facility]. Common towels shall be prohibited. Where disposable towels are used, easily cleanable waste receptacles, with covers, shall be conveniently located near the hand washing lavatories
                                                                                                                                                                                                                                                        [facilities]. Hand washing signs, in languages understood by the employees, shall be posted in toilet rooms and near hand washing lavatories
                                                                                                                                                                                                                                                          [facilities]. A hand washing lavatory shall be located immediately outside the toilet rooms so that hand washing can be readily observed. Hand washing lavatories
                                                                                                                                                                                                                                                            [facilities], hand drying devices, and all related equipment
                                                                                                                                                                                                                                                              [facilities] shall be kept clean and in good repair. (g)
                                                                                                                                                                                                                                                                [(f)] Water closets
                                                                                                                                                                                                                                                                  [Toilet facilities], in toilet rooms separate for each sex, shall be provided in all places of employment in accordance with the following table. The number of water closets
                                                                                                                                                                                                                                                                    [facilities] to be provided for each sex shall be based on the number of employees of that sex for whom the facilities are furnished. Where toilet rooms will be occupied by no more than one person at a time, can be locked from the inside, and contain at least