PART 8. TEXAS RACING COMMISSION

CHAPTER 311. OTHER LICENSES

SUBCHAPTER A. LICENSING PROVISIONS

DIVISION 1. OCCUPATIONAL LICENSES

16 TAC §311.2

The Texas Racing Commission (TXRC) proposes amendments to an existing rule in Texas Administrative Code, Title 16, Part 8, Chapter 311, Subchapter A, Division 1, Occupational Licenses, §311.2, Application Procedure, concerning the occupational licensing application procedures. This amendment is referred to as a "proposed rule amendment." The purpose of this rule amendment is to address the changes in the Texas Racing Act made during the 88th Legislative Session. Effective September 1, 2023, the Texas Occupations Code § 2025.260, Temporary Licenses was repealed, and the statute was amended to conform with licensing standards found in Chapter 53, Texas Occupations Code, which, among other standards applies the requirements for a criminal background check before a license is issued. The proposed rule changes bring the agency into compliance with its statute and allows the agency to conform with the provisions of Texas Occupations Code § 2025.251-262.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §311.2 to update the language to allow for online license submissions as well as provide notice that applicants must go through a qualification process including a criminal background check before they are licensed.

GOVERNMENT GROWTH IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rules will not affect the local economy, so the Commission is not required to prepare a local employment impact statement under Government Code § 2001.022.

For each year of the first five years the proposed rules will be in effect, Amy F. Cook, Executive Director has determined the following:

The proposed rule amendment does not create or eliminate a government program.

Implementation of the proposed rule amendment does not require the creation of new employee positions or the elimination of existing employee positions.

Implementation of the proposed rule amendment does not require an increase or decrease in future agency legislative appropriations.

The proposed rule amendment does not require an increase or decrease in fees paid to the agency.

The proposed rule amendment does not create a new regulation.

The proposed rule amendment does expand, limit, or repeal an existing regulation.

The proposed rules do not increase or decrease the number of individuals subject to the proposed rule amendment's applicability.

The proposed rule amendment does not positively or adversely affect this state's economy.

ECONOMIC IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of an Economic Impact Statement as detailed under Texas Government Code § 2006.002, is not required.

REGULATORY FLEXIBILITY ANALYSIS

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of a Regulatory Flexibility Analysis as detailed under Texas Government Code § 2006.002, is not required.

TAKINGS IMPACT ASSESSMENT

Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code § 2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code § 2001.024(A)(6).

COST-BENEFIT ANALYSIS

Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to reduce the overall costs of the licensing process by encouraging licensees to become licensed before a horse is entered in a race (typically a week before the race is scheduled) rather than waiting until the horse has been entered and causing the horse to be removed from the race because the owner failed to meet the requirement for a criminal background check (which typically take 10 business days) and the availability of agency staff to accept, review and process the new or renewed license (which can from 21-60 days).

FISCAL NOTE ANALYSIS

Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule change.

PUBLIC COMMENTS

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by telephone at (512) 833-6699.

STATUTORY AUTHORITY

The amendments are proposed under Tex. Occ. Code § 2023.004, which authorizes the Commission to adopt rules to administer the Act.

No other statute, code, or article is affected by the proposed amendments.

§311.2.Application Procedure.

(a) General Requirements. To request a license from the Commission, a person must apply to the Commission on forms prescribed by the executive director [secretary].

(b) Application Submission [Site].

(1) [Except as provided in paragraphs (2) and (3) of this subsection, an] An applicant for an occupational license must file the appropriate application form and related documents at the licensing office at a licensed racetrack or through an online process established by the executive director. All applications must be submitted to the agency at least thirty-one days before the licensee engages in an activity that requires an occupational license under 16 TAC § 311.1.

[(2) An applicant for the following occupational license types may file the appropriate application form and related documents by mail to the main office of the Commission in Austin; kennel owner, kennel owner/owner, kennel owner/owner/trainer, kennel owner/trainer, owner, owner/trainer, trainer, multiple owner/stable/farm registration, training facility employee, and training facility general manager/CEO.]

[(3) An applicant for an occupational license that is available through the Texas OnLine portal may submit the required application information through the Texas OnLine portal.]

(2) [(c)] Examinations. The Commission may require the applicant for an occupational license to demonstrate the applicant's knowledge, qualifications, and proficiency for the license applied for by an examination prescribed by the Commission.

(c) [(d)] Issuance of License.

(1) The stewards or racing judges may review any application for an occupational license and deny a license if the stewards or racing judges determine:

(A) grounds for denial of the license exist under §311.6 of this title (relating to Denial, Suspension, and Revocation of Licenses); or

(B) if the applicant or a member of the applicant's family or household currently holds a Commission license, after considering the nature of the licenses sought or held by the applicant, issuing a license to the applicant would create a conflict of interest that might affect the integrity of pari-mutuel racing.

(2) An occupational licensee may not act in any capacity other than that for which he or she is licensed.

(3) The stewards or racing judges may issue a license subject to the applicant satisfying one or more conditions, as specified by the stewards, or racing judges, which reasonably relate to the applicant's qualifications or fitness to perform the duties of the license sought.

(d) [(e)] License Badge.

(1) The Commission shall issue a certificate identification card in the form of a license badge to each individual licensed under this subchapter.

(2) The badge must bear the seal of the Commission.

(3) The badge must contain:

(A) the licensee's full name;

(B) the licensee's photograph;

(C) the category of license;

(D) the month and year in which the license expires;

(E) a color code that designates whether the licensee has access to the stable or kennel area; and

(F) the license number assigned by the Commission.

(4) If a badge issued under this section is lost or stolen, the licensee shall immediately notify the Commission and may apply for a duplicate badge with the same terms as the original badge. To apply for a duplicate badge, the licensee must:

(A) file a sworn affidavit stating that the badge was lost, stolen, or destroyed;

(B) surrender any remaining portion of the badge; and

(C) pay a duplicate badge fee in an amount set by the Commission.

(e) [(f)] License provisions for military service members, military spouses, and military veterans.

(1) The terms "military service member," "military spouse," and "military veteran" shall have the same meaning as those terms are defined in Texas Occupations Code, Chapter 55.

(2) Credit for Military Service. Military service members and military veterans will receive credit toward any experience requirements for a license as appropriate for the particular license type and the specific experience of the military service member or veteran.

(3) Credit for holding a current license issued by another jurisdiction. Military service members, military spouses, and military veterans who hold a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the license in this state will receive credit toward any experience requirements for a license as appropriate for the particular license type.

(4) Supporting documentation must be submitted with the license application.

(5) The executive director may waive any prerequisite to obtaining a license for an applicant who is a military service member, military veteran, or military spouse, after reviewing the applicant's credentials.

(6) Expedited license procedure. As soon as practicable after a military service member, military veteran, or military spouse files an application for a license, the commission will process the application and issue the license to an applicant who qualifies under this section.

(7) License application and examination fees will be waived for the initial application of an applicant who qualifies under this subsection.

(8) Military spouse acting under out-of-state license. A military spouse who holds a racing license issued by another jurisdiction and who wishes to participate in racing in Texas under that license shall submit to the Commission the information required by Section 55.0041 of the Texas Occupations Code. Upon receipt of such information, the Commission shall determine whether the requirements of Section 55.0041 are satisfied and notify the military spouse that the person is authorized to act under that section if it confirms, through communication with the other jurisdiction or through other means, that:

(A) the jurisdiction that issued the license on which the military spouse is relying to act in Texas has substantially equivalent license requirements; and

(B) the military spouse is licensed in good standing in the other jurisdiction.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 31, 2023.

TRD-202304087

Amy F. Cook

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 17, 2023

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

16 TAC §311.101

The Texas Racing Commission (TXRC) proposes rule amendments and a repeal of selected language in Texas Administrative Code, Title 16, Part 8, Chapter 311, Subchapter B, §311.101 concerning specific licensing provisions for horse owners. This amendment is referred to as a "proposed rule amendment." The purpose of this rule amendment is to address the changes in the Texas Racing Act made during the 88th Legislative Session. Effective September 1, 2023, the Texas Occupations Code § 2025.260, Temporary Licenses was repealed, and the statute was amended to conform with licensing standards found in Chapter 53, Texas Occupations Code, which, among other standards applies the requirements for a criminal background check before a license is issued. The proposed rule changes bring the agency into compliance with its statute and allows the agency to conform with the provisions of Texas Occupations Code § 2025.251-262.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §311.101 to update the language to conform with the updated version of the Texas Racing Act, specifically, the provisions of Texas Occupations Code § 2025.251-262.

GOVERNMENT GROWTH IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rules will not affect the local economy, so the Commission is not required to prepare a local employment impact statement under Government Code § 2001.022.

For each year of the first five years the proposed rules will be in effect, Amy F. Cook, Executive Director has determined the following:

The proposed rule amendment does not create or eliminate a government program.

Implementation of the proposed rule amendment does not require the creation of new employee positions or the elimination of existing employee positions.

Implementation of the proposed rule amendment does not require an increase or decrease in future agency legislative appropriations.

The proposed rule amendment does not require an increase or decrease in fees paid to the agency.

The proposed rule amendment does not create a new regulation.

The proposed rule amendment does expand, limit, or repeal an existing regulation.

The proposed rules do not increase or decrease the number of individuals subject to the proposed rule amendment's applicability.

The proposed rule amendment does not positively or adversely affect this state's economy.

ECONOMIC IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of an Economic Impact Statement as detailed under Texas Government Code § 2006.002, is not required.

REGULATORY FLEXIBILITY ANALYSIS

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of a Regulatory Flexibility Analysis as detailed under Texas Government Code § 2006.002, is not required.

TAKINGS IMPACT ASSESSMENT

Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code § 2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code § 2001.024(A)(6).

COST-BENEFIT ANALYSIS

Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to reduce the overall costs of the licensing process by encouraging licensees to become licensed before a horse is entered in a race (typically a week before the race is scheduled) rather than waiting until the horse has been entered and causing the horse to be removed from the race because the owner failed to meet the requirement for a criminal background check (which typically take 10 business days) and the availability of agency staff to accept, review and process the new or renewed license (which can from 21-60 days).

FISCAL NOTE ANALYSIS

Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule change.

PUBLIC COMMENTS

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by telephone at (512) 833-6699.

STATUTORY AUTHORITY

The amendments are proposed under Tex. Occ. Code § 2023.004, which authorizes the Commission to adopt rules to administer the Act.

No other statute, code, or article is affected by the proposed amendments.

§311.101.Horse Owners.

(a) General Provisions.

(1) The owner of a horse, as listed on the animal's registration paper, must obtain an owner's license from the Commission. Except as otherwise provided by §313.301(a)(2) of this title (relating to Officials and Rules of Horse Racing), a person may not be licensed as an owner if the person is not the owner of record of a properly registered horse that the person intends to race in Texas. A person who meets the qualifications for a trainer's or assistant trainer's license may also be licensed as an owner if the person intends to be the owner of record of a properly registered horse during the time of licensure. Except as otherwise provided by this subsection, the owner or designated trainer acting on behalf of the owner, must be licensed before making a request to enter a horse eligible under 16 TAC §313.103. [one hour prior to the post time of the first race of the day in which the owner intends to race the animal.]

(2) If the owner is not an individual, each individual who is a director, officer, or partner of the owner or who has an ownership interest in the horse of 5.0% or more must be licensed by the Commission.

(3) If the owner is not an individual, the owner must provide to the Commission:

(A) a sworn statement by the chief executive officer of the owner or by one of the partners of the owner that the officer or partner represents the owner and is responsible for the horse;

(B) a statement that the owner is authorized by law to do business in Texas; and

(C) a list of the names and addresses of all individuals having an ownership interest in the horse.

(4) If the owner is not an individual, the ownership entity must:

(A) designate a representative; or

(B) file an authorized agent form with the Commission and pay the prescribed fee.

(5) If the registered owner of a horse is a minor, a financial responsibility form approved by the executive director [secretary] must be signed by the parent or guardian of the owner assuming financial responsibility for the debts incurred for the training and racing of the horse.

(b) Stable Names.

(1) An owner that wants to participate in racing using a stable name must register with the Commission by filing an application on a form prescribed by the executive director [secretary ] and paying the prescribed fee. A person may not use the real name of an owner of a race animal as a stable name. A stable name which has already been registered with the Commission may not be registered by another owner.

(2) Registering a stable name with the Commission does not affect a person's obligation to file or register a fictitious name as provided by the laws of Texas.

(3) An application to register a stable name must disclose the real names of all interests participating in the stable and the percentage of ownership interest of each, including the interest owned by a corporation, general partnership, limited partnership, trust, estate or individual.

(4) A stable name may be changed by registering a new stable name. A stable name may be abandoned by giving written notice to the Commission. A change of 5.0% or more in ownership of a stable registered under a stable name shall be immediately reported to the Commission.

(5) A licensee who has registered a stable name under this section may not use the licensee's real name for racing purposes except on approval of the stewards.

(c) Change of Ownership.

(1) If the owner of an interest in a horse housed on an association's grounds transfers that interest to another person, both parties to the transaction shall give written notice of the transfer to the stewards officiating for that association. Notice under this section must be submitted to the appropriate officials not later than 24 hours after the agreement to transfer the interest is made.

(2) A licensee of the Commission may not transfer an ownership interest in a horse to avoid disqualification of the horse.

(d) Change of Trainer. An owner may change the trainer of his or her horse registered at a licensed race meeting provided:

(1) the request to change trainers is submitted for approval to the stewards on a form provided by the association and approved by the executive director [stewards];

(2) the trainer from whom the horse is being transferred signs the form releasing custody of the horse;

(3) the trainer to whom the horse is being transferred signs the form accepting responsibility for the horses; and

(4) the stewards approve the transfer.

(e) Owner/Trainer. A person licensed as an owner/trainer who is training horses at a racetrack may not have any horse owned by the owner/trainer under the care, custody, or control of another trainer at that racetrack.

(f) Restrictions on Racing. An owner may not enter a horse or cause a horse to be entered in a race at a racetrack if:

(1) the owner or trainer is employed by the racetrack association in a management or supervisory position that is capable of affecting the conduct of races or pari-mutuel wagering at the racetrack; or

(2) the owner or trainer is involved in any way with the sale or publication of tip sheets on association grounds.

[(g) Emergency License.]

[(1) If an owner is unable to complete an application for an owner's license because of absence or illness, the licensed trainer desiring to enter a horse in a race may apply for an emergency owner's license on behalf of the absent owner.]

[(2) The trainer applying for an emergency owner's license on behalf of an absent owner must submit a written statement with the license application specifying the reasons the owner is unable to complete the application.]

[(3) The trainer applying for an emergency owner's license must submit at least the following information: the owner's full name, home or business address, and telephone number. At the time of application, the appropriate licensing fee must be paid to the Commission. Failure to provide all of the foregoing information is grounds for denial of an emergency owner's license.]

[(4) If an owner submits an incomplete application for an owner's license, the application will remain in pending status until:]

[(A) the owner submits any additional information required to process the application;]

[(B) the application expires in accordance with the term of the applied-for license; or]

[(C) a horse is entered in the owner's name or in the name of a multiple owner of which the owner is a member, in which case the pending license will be presumed to be a request for an emergency license.]

[(5) A license issued under this section expires on the 21st day after the date the emergency owner's license is issued. An owner may obtain only one emergency license per year. An emergency license cannot be issued if the owner failed to complete the prior licensing process.]

[(6) An owner granted an emergency license is prohibited from withdrawing any funds from his/her horseman's bookkeeper account until the owner complies with all licensing procedures provided by subsection (a) of this section.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 31, 2023.

TRD-202304088

Amy F. Cook

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 17, 2023

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

SUBCHAPTER E. TRAINING FACILITIES

16 TAC §313.501

The Texas Racing Commission (TXRC) proposes amendments to an existing rule in Texas Administrative Code, Title 16, Part 8, Chapter 313, Subchapter E, Training Facilities §313.501, Training Facility License, concerning the training facility licensing requirements and costs. This amendment is referred to as a "proposed rule amendment." The purpose of this rule amendment is to reduce training facility licensing costs to offset any costs required by rule amendments to §313.504 and §313.505, which require increased safety protocols for equine and human athletes participating in Texas horseracing.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §313.501(a) to reduce training facility licensing costs, and §313.501(d) to allow licensed Class 1 racetracks to operate as a training facility without going through an additional licensing process.

GOVERNMENT GROWTH IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rules will not affect the local economy, so the Commission is not required to prepare a local employment impact statement under Government Code § 2001.022.

For each year of the first five years the proposed rules will be in effect, Amy F. Cook, Executive Director has determined the following:

The proposed rule amendment does not create or eliminate a government program.

Implementation of the proposed rule amendment does not require the creation of new employee positions or the elimination of existing employee positions.

Implementation of the proposed rule amendment does not require an increase or decrease in future agency legislative appropriations.

The proposed rule amendment does not require an increase or decrease in fees paid to the agency.

The proposed rule amendment does not create a new regulation.

The proposed rule amendment does expand, limit, or repeal an existing regulation.

The proposed rules do not increase or decrease the number of individuals subject to the proposed rule amendment's applicability.

The proposed rule amendment does not positively or adversely affect this state's economy.

ECONOMIC IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of an Economic Impact Statement as detailed under Texas Government Code § 2006.002, is not required.

REGULATORY FLEXIBILITY ANALYSIS

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of a Regulatory Flexibility Analysis as detailed under Texas Government Code § 2006.002, is not required.

TAKINGS IMPACT ASSESSMENT

Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code § 2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code § 2001.024(A)(6).

COST-BENEFIT ANALYSIS

Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to reduce the overall number of injuries to equine and human athletes. The agency removed the cost of the training facility license fee ($1800.00) to provide resources to pay for the additional cost as well as extended the period for which the license is effective. In addition, Class I racetracks, upon request and without further application may now be licensed as training facilities.

FISCAL NOTE ANALYSIS

Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule change.

PUBLIC COMMENTS

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by telephone at (512) 833-6699.

STATUTORY AUTHORITY

The amendments are proposed under Tex. Occ. Code § 2023.004, which authorizes the Commission to adopt rules to administer the Act.

No other statute, code, or article is affected by the proposed amendments.

§313.501.Training Facility License.

(a) A training facility must be licensed by the Executive Director [Commission] in accordance with this section to provide official workouts. Except as otherwise provided by this subchapter, an official workout obtained at a training facility licensed under this section satisfies the workout requirements of §313.103 of this title (relating to Eligibility Requirements).

(b) A training facility license expires two years [one year] after the last day of the month in which the license was issued. [An applicant for a training facility license must submit with the application documents the license fee of $1,800.]

(c) A training facility license is personal to the licensee and may not be transferred.

(d) A Class 1 racetrack licensed by the Commission may also operate a training facility without an additional license requirement if the racetrack association operating the Class 1 racetrack submits a request for training facility dates with its annual race date application form and the request is approved by the Executive Director.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 31, 2023.

TRD-202304089

Amy F. Cook

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 17, 2023

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

The Texas Racing Commission (TXRC) proposes rule amendments of selected language in Texas Administrative Code, Title 16, Part 8, Chapter 313, Subchapter E, Training Facilities, §313.504, Operational Requirements. This amendment is referred to as a "proposed rule amendment." The purpose of this rule amendment is to implement increased safety protocols for Texas horseracing. As of November 1, 2023, there have been nine (9) equine catastrophic breakdowns during live racing events, and eight (8) additional breakdowns during training events that have also resulted in head and collarbone injuries to jockeys and exercise riders. The proposed rule changes require Mobile Intensive Care Unit capabilities for human athletes and two functional Equine Ambulances with veterinary staffing for equine athletes to respond to serious injuries.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §313.504(d) to require a comparable level of emergency response capabilities to address serious injuries that are currently required at licensed racetracks during live racing at training facilities when the activities performed, including schooling races, official works and exercise riding are performed in preparation for a live racing event. The requirement for an e-wagering plan to address the prohibition on wagering at training facilities is including §313.504(d). Additional language changes update the term "executive secretary" to "executive director" for consistency throughout the Texas Rules of Racing.

GROWTH IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rules will not affect the local economy, so the Commission is not required to prepare a local employment impact statement under Government Code § 2001.022.

For each year of the first five years the proposed rules will be in effect, Amy F. Cook, Executive Director has determined the following:

The proposed rule amendment does not create or eliminate a government program.

Implementation of the proposed rule amendment does not require the creation of new employee positions or the elimination of existing employee positions.

Implementation of the proposed rule amendment does not require an increase or decrease in future agency legislative appropriations.

The proposed rule amendment does not require an increase or decrease in fees paid to the agency.

The proposed rule amendment does not create a new regulation.

The proposed rule amendment does expand, limit, or repeal an existing regulation.

The proposed rules do not increase or decrease the number of individuals subject to the proposed rule amendment's applicability.

The proposed rule amendment does not positively or adversely affect this state's economy.

ECONOMIC IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of an Economic Impact Statement as detailed under Texas Government Code § 2006.002, is not required.

REGULATORY FLEXIBILITY ANALYSIS

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of a Regulatory Flexibility Analysis as detailed under Texas Government Code § 2006.002, is not required.

TAKINGS IMPACT ASSESSMENT

Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code § 2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule repeal and rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code § 2001.024(A)(6).

COST-BENEFIT ANALYSIS

Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to reduce the overall number of injuries to equine and human athletes. The agency removed the cost of the training facility license fee ($1800.00) in a related rule amendment to §313.501 to provide resources to pay for the additional cost as well as extended the period for which the license is effective. In addition, Class I racetracks, upon request and without further application may now be licensed as training facilities.

FISCAL NOTE ANALYSIS

Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule change.

PUBLIC COMMENTS

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by telephone at (512) 833-6699.

STATUTORY AUTHORITY

The amendments are proposed under Tex. Occ. Code § 2023.004, which authorizes the Commission to adopt rules to administer the Act.

No other statute, code, or article is affected by the proposed amendments.

§313.504.Operational Requirements.

(a) The primary business of a training facility must be the training of racehorses. The training facility must be available to provide official workouts on a schedule approved by the executive director [secretary], but at least three days per week.

(b) A training facility licensee shall prohibit any wagering at the facility and shall promptly eject any person who is found to be wagering. All training facilities located at licensed racetracks shall have an e-wagering plan approved by the Executive Director, as set out in Sec. 321.603, before the first date of an approved official work schedule.

(c) A training facility licensee shall ensure that veterinary services and facilities are available to the training facility in close enough proximity to permit a response time of one hour or less. The veterinary services and facilities are subject to the approval of the executive director [secretary].

(d) A training facility licensee shall comply with the requirements of Sec. 309.117, First Aid and Sec. 309.254, Equine Ambulance, during the period where the racetrack association allows occupational licensees to conduct official works or exercise horses on the racetrack.

(e) [(d)] A training facility licensee shall maintain records regarding the management and operation of the training facility and the records are subject to inspection by the executive director [secretary]. A training facility licensee shall cooperate fully with and shall promptly provide any information requested by the Executive Director in the regulation of training facilities. [the Commission, the executive secretary, and the Department of Public Safety in the regulation of training facilities and shall promptly provide any information requested by the Commission, the executive secretary, or the Department of Public Safety.]

(f) [(e)] A training facility licensee shall post in a condition book approved by the executive director with any conditions imposed by the racetrack association along with [prominent place] a list of the dates and times that official workouts may be obtained.

(g) [(f)] A training facility licensee shall comply with all the requirements of this subchapter. Failure to continuously comply with those requirements is grounds for disciplinary action by the executive director [Commission ], including suspension or revocation of the training facility license.

(h) [(g)] The facilities and operations of a licensed training facility are subject to inspection and verification by the executive director [secretary] at any time. If the executive director [secretary] determines that inappropriate or unsafe conditions exist at the training facility or that the integrity of workouts obtained at the facility are in question, the executive director [secretary] may immediately notify the pari-mutuel racetracks in this state that workouts obtained at the facility may not be accepted as official workouts. The executive director [secretary] shall notify the general manager or chief executive officer of the licensed training facility of the executive director [secretary's ] findings and specifically describe the corrective action necessary to make the facility's workouts official, to rectify the inappropriate condition, or to make the conditions safe. The training facility may take the necessary corrective action or request a hearing with the Commission on the executive director [secretary's] findings.

(i) [(h)] A training facility licensee may not, unless otherwise approved by the executive director:

(1) conduct a race at its facility; or

(2) allow its facility to be used for a race.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 31, 2023.

TRD-202304090

Amy F. Cook

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 17, 2023

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

The Texas Racing Commission (TXRC) proposes rule amendments of selected language in Texas Administrative Code, Title 16, Part 8, Chapter 313, Subchapter E, Training Facilities, §313.505, Workout Requirements. The purpose of this rule amendment is to implement increased safety protocols for Texas horseracing. As of November 1, 2023, there have been nine (9) equine catastrophic breakdowns during live racing events, and eight (8) additional breakdowns during training events that have also resulted in head and collarbone injuries to jockeys and exercise riders. The proposed rule changes require the addition of three (3) staff members to monitor track conditions and activities during official works as well as related rule amendments in §313.504 to provide Mobile Intensive Care Unit capabilities for human athletes and two functional Equine Ambulances with veterinary staffing to respond to serious injuries. These standards are in place for live racing events but are not currently required for training events.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §313.505 require the addition of three (3) staff members to monitor track conditions and activities during official works as an increased safety measure.

GOVERNMENT GROWTH IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rules will not affect the local economy, so the Commission is not required to prepare a local employment impact statement under Government Code § 2001.022.

For each year of the first five years the proposed rules will be in effect, Amy F. Cook, Executive Director has determined the following:

The proposed rule amendment does not create or eliminate a government program.

Implementation of the proposed rule amendment does not require the creation of new employee positions or the elimination of existing employee positions.

Implementation of the proposed rule amendment does not require an increase or decrease in future agency legislative appropriations.

The proposed rule amendment does not require an increase or decrease in fees paid to the agency.

The proposed rule amendment does not create a new regulation.

The proposed rule amendment does expand, limit, or repeal an existing regulation.

The proposed rules do not increase or decrease the number of individuals subject to the proposed rule amendment's applicability.

The proposed rule amendment does not positively or adversely affect this state's economy.

ECONOMIC IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of an Economic Impact Statement as detailed under Texas Government Code § 2006.002, is not required.

REGULATORY FLEXIBILITY ANALYSIS

Amy F. Cook, Executive Director, has determined that the proposed rule amendments will have no adverse economic effect on small businesses, micro-businesses, or rural communities, therefore preparation of a Regulatory Flexibility Analysis as detailed under Texas Government Code § 2006.002, is not required.

TAKINGS IMPACT ASSESSMENT

Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code § 2007.043.

LOCAL EMPLOYMENT IMPACT STATEMENT

Amy F. Cook, Executive Director, has determined that the proposed rule repeal and rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code § 2001.024(A)(6).

COST-BENEFIT ANALYSIS

Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to reduce the overall number of injuries to equine and human athletes. The agency removed the cost of the training facility license fee ($1800.00) in a related rule amendment to §313.501 to provide resources to pay for the additional cost of staffing during official works and exercising periods as well as extended the period for which the license is effective.

FISCAL NOTE ANALYSIS

Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule change.

PUBLIC COMMENTS

All comments or questions regarding the proposed amendment may be submitted in writing within 30 days following publication of this notice in the Texas Register, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by telephone at (512) 833-6699.

STATUTORY AUTHORITY

The amendments are proposed under Tex. Occ. Code § 2023.004, which authorizes the Commission to adopt rules to administer the Act.

No other statute, code, or article is affected by the proposed amendments.

§313.505.Workout Requirements.

(a) All official workouts must be supervised by the following officials, who must be licensed and approved by the executive director [secretary]:

(1) a timer/clocker;

(2) a horse identifier; and

(3) a starter, and an assistant starter;[.]

(4) two outriders to address track safety issues.

(b) The person riding a horse in an official workout must hold a valid Commission license as a jockey, apprentice jockey, or exercise rider, or as the trainer or assistant trainer of the horse.

(c) The horse identifier shall identify each horse before each official workout. The original registration papers for each horse that is to work, or a copy that satisfies the horse identifier, must be submitted to the horse identifier before the horse's initial workout at the facility to permit the identifier to record the horse's color, gender, markings, and tattoo number, if applicable. The horse identifier shall inspect all documents of ownership, registration, or breeding necessary to ensure the proper identification of the horse. The identification procedures used at the training facility are subject to the approval of the executive director. [secretary. The individual serving as the horse identifier may serve as timer or starter also, with the approval of the executive secretary. The timer may not serve as the starter.]

(d) A training race conducted at a licensed pari-mutuel racetrack may be used as an official workout. The distance of an official workout must be at least:

(1) 220 yards for a quarter horse;

(2) two furlongs, for a two-year old thoroughbred; and

(3) three furlongs, for a thoroughbred three years of age or older.

(e) A workout must be timed on a stopwatch that is accurate to within .01 of a second. Times for quarter horses shall be rounded to tenths of one second and times for thoroughbred horses shall be rounded to fifths of one second.

(f) An individual may not ride a horse in an official workout unless the individual is wearing a properly fastened helmet of a type approved by the executive director. [secretary.]

(g) Each official workout must be recorded on a form prescribed by the executive director [secretary]. Not later than 24 hours after the day of an official workout, a training facility shall transmit the results of the workout to:

(1) the official past performance publisher;

(2) the executive director [Commission]; and

(3) each pari-mutuel horse racetrack in this state that is:

(A) conducting a live race meeting for the same breed of horse as the horse that was worked; or

(B) will, in 45 days or less after the date of the workout, commence a live race meeting for the same breed of horse as the horse that was worked.

(h) A horse may not have more than one official workout on a calendar day.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 31, 2023.

TRD-202304091

Amy F. Cook

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 17, 2023

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