TITLE 16. ECONOMIC REGULATION

PART 8. TEXAS RACING COMMISSION

CHAPTER 303. GENERAL PROVISIONS

SUBCHAPTER A. ORGANIZATION OF THE COMMISSION

The Texas Racing Commission (Commission) proposes to amend 16 TAC §303.7, concerning Employees; §303.8, concerning Executive Secretary; and §303.16, concerning Historically Underutilized Businesses.

Background and Justification

The proposed amendments to §§303.7, 303.8, and 303.16 are part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8.

The amendment to §303.7 replaces duplicative subsections with a statutory cross-reference and updates references from "executive secretary" to "executive director."

The amendment to §303.8 renames the Executive Secretary position as the Executive Director, condenses subsection (c), and updates all related references.

The amendment to §303.16 updates the citation to the current version of the Comptroller's rules regarding historically underutilized businesses.

Summary of Proposal

The proposed amendments modernize the rules, remove obsolete language, clarify existing Commission procedures, and update citations without creating a new regulatory program.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the amendments will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the amendments. The amendments are not expected to create a measurable fiscal effect because they update citations, terminology, document-availability language, or obsolete language.

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed amendments will be in effect, the public benefit anticipated as a result of the proposed amendments will be greater clarity, easier public access to current rule requirements, and a more accurate and efficient body of Commission rules. David Holmes has also determined that, for each year of the first five years the proposed amendments will be in effect, there will be no probable economic cost to persons required to comply with the proposed rules because the proposals do not impose new fees, reporting requirements, or substantive compliance obligations.

Small Business, Micro-Business, and Rural Community Impact

The Commission has determined that the proposed amendments will not have an adverse economic effect on small businesses, micro-businesses, or rural communities because the proposals do not impose new costs, new reporting obligations, or new operational requirements. The proposals therefore do not require preparation of a regulatory flexibility analysis.

Local Employment Impact

The Commission has determined that the proposed amendments will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed amendments will be in effect, the Commission has determined that the proposals: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new regulation; (6) will not expand, limit, or repeal an existing regulation except by streamlining, clarifying, or updating the affected rules; (7) will not increase or decrease the number of individuals subject to the rules' applicability; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed amendments do not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposals may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed rules from any interested person and also requests information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposals in the Texas Register.

Statutory Authority for §303.7 - Employees

The amendment is proposed under Texas Occupations Code, §§2022.051, 2022.052, and 2023.004. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, §§2022.051 and 2022.052.

Statutory Authority for §303.8 - Executive Secretary

The amendment is proposed under Texas Occupations Code, §§2022.051, 2022.056, and 2023.004. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, §§2022.051 and 2022.056.

Statutory Authority for §303.16 - Historically Underutilized Businesses

The amendment is proposed under Texas Occupations Code, §2023.004, and Texas Government Code, Chapter 2161. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Government Code, Chapter 2161.

§303.7. Employees.

(a) The commission shall employ an executive director [~~secretary~~] who shall employ other employees necessary to implement, administer, and enforce the Act.

(b) Employment restrictions. The commission and the executive director are subject to the employment restrictions set forth in Tex. Occ. Code Section 2022.052.

[(b) The commission and the executive secretary may not employ or continue to employ a person:]

[(1) who owns or controls a financial interest in a licensee of the commission;]

[(2) who is employed by or serves as a paid consultant to a licensee of the commission, an official breed registry, or a Texas trade association, as defined by the Act,§2.071(c), in the field of horse or greyhound racing or breeding;]

[(3) who owns or leases a race animal that participates in pari-mutuel racing in this state; or]

[(4) who accepts or is entitled to a part of the purse or Texas-bred incentive award to be paid on a greyhound or a horse in a race held in this state.]

[(c) The commission and the executive secretary may not employ or continue to employ a person who is residentially domiciled with or related within the first degree by affinity or consanguinity to a person who is ineligible for employment under subsection (b) of this section.]

(c) [~~(d)~~] The commission shall employ the executive director [~~secretary~~] and other employees in a manner that reflects the diversity of the population in this state with regard to race, color, creed, handicap, sex, religion, age, and national origin.

§303.8. Executive Director [~~Secretary~~].

(a) The executive director [~~secretary~~] serves at the pleasure of the commission on a full-time basis and may not hold other employment. The executive director [~~secretary~~] shall administer the programs of the agency and has all powers necessary for such administration, as well as any specific duties assigned or functions delegated by the commission.

(b) The executive director [~~secretary~~] shall maintain the records of the commission and ensure the agency's compliance with the open records and records retention laws.

(c) The executive director [~~secretary~~] shall establish the organizational structure of the agency, [~~agency's employees, including the establishment of various divisions within the agency. The executive secretary shall~~] prescribe [~~the~~] employee duties and compensation [~~for all other commission employees,~~] subject to Commission budget [~~the commission's~~] approval, and [~~of the budget. The executive secretary shall~~] adopt personnel policies, [~~and other~~] internal operating policies and procedures, and [~~The executive secretary shall develop the~~] departmental budgets [~~to allocate expenditures within the agency based on the approved agency operating budget~~].

(d) The executive director [~~secretary~~] shall prepare and file all agency reports required by law that are retrospective in nature, such as the annual financial report and periodic reports on performance measures.

(e) The executive director [~~secretary~~] shall enforce the Act, the rules, and the orders of the commission, including determining the method of enforcement, the amount of penalties, the issuance of preliminary reports for administrative penalties, and the development of enforcement guidelines for use by the stewards and racing judges.

(f) The executive director [~~secretary~~] shall issue occupational licenses and training facility licenses in accordance with the criteria established in the Act and the rules. The executive director [~~secretary~~] shall review all applications for racetrack licenses and licenses to conduct race meetings and make a report to the commission regarding the issuance of such licenses.

(g) Except as otherwise provided by a rule of the commission, if the commission places a duty on the executive director [~~secretary~~], by rule or otherwise, the executive director [~~secretary~~] may delegate that duty to another employee of the commission.

§303.16. Historically Underutilized Businesses.

Pursuant to Government Code, §2161.003, the Commission adopts by reference the provisions of 34 TAC Chapter 20, Subchapter D, as amended from time to time. [~~§20.11 et seq.~~]

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 22, 2026.

TRD-202604469

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

16 TAC §303.13

The Texas Racing Commission (Commission) proposes the repeal of 16 TAC §303.13, concerning Seal of the Commission.

Background and Justification

The proposed repeal removes a rule that is no longer needed. The rule describes the form of the Commission seal, but the Commission does not need a separate codified rule for that administrative description.

Summary of Proposal

The proposed repeal removes §303.13 in its entirety.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the repeal will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the repeal. The repeal may reduce administrative burden by removing an obsolete or unnecessary rule, but any governmental savings cannot be reliably quantified from the information available to the Commission.

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed repeal will be in effect, the public benefit anticipated as a result of the proposed repeal will be a more accurate and efficient body of Commission rules by removing an obsolete administrative provision. David Holmes has also determined that, for each year of the first five years the proposed repeal will be in effect, there will be no probable economic cost to persons required to comply with the repeal because the repeal removes an existing rule and does not impose a new fee, reporting requirement, or substantive compliance obligation.

Small Business, Micro-Business, and Rural Community Impact

The Commission has determined that the proposed repeal will not have an adverse economic effect on small businesses, micro-businesses, or rural communities because the repeal does not impose new costs, new reporting obligations, or new operational requirements. The proposed repeal therefore does not require preparation of a regulatory flexibility analysis.

Local Employment Impact

The Commission has determined that the proposed repeal will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed repeal will be in effect, the Commission has determined that the proposal: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new regulation; (6) will repeal an existing regulation that is no longer necessary and will not otherwise expand or limit an existing regulation; (7) will not increase the number of individuals subject to the rule's applicability; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed repeal does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposal may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed repeal from any interested person and also requests information related to the cost, benefit, or effect of the proposed repeal, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposal in the Texas Register.

Statutory Authority

The repeal is proposed under Texas Occupations Code, §2023.001 and §2023.004. Section 2023.001 authorizes the Commission to license and regulate all aspects of horse racing and greyhound racing in this state, and §2023.004 authorizes the Commission to adopt rules for conducting racing involving wagering and for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed repeal implements, interprets, or affects Texas Occupations Code, Chapter 2023.

§303.13. Seal of the Commission.

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 22, 2026.

TRD-202604478

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

SUBCHAPTER B. POWERS AND DUTIES OF THE COMMISSION

16 TAC §§303.32, 303.34, 303.41

The Texas Racing Commission (Commission) proposes to amend 16 TAC §303.32, concerning Power of Entry; §303.34, concerning Certified Documents; and §303.41, concerning Allocation of Race Dates.

Background and Justification

The proposed amendments to §§303.32, 303.34, and 303.41 are part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8.

The amendment to §303.32 replaces regulatory text with a statutory cross-reference to Tex. Occ. Code §2023.007.

The amendment to §303.34 replaces regulatory text with a statutory cross-reference to Tex. Occ. Code §2023.060.

The amendment to §303.41 removes obsolete greyhound-racing terminology or requirements, reduces the notice period from 30 to 15 days, adds electronic submission language, and updates references from "executive secretary" to "executive director."

Summary of Proposal

The proposed amendments update statutory citations and cross-references, remove obsolete greyhound-racing terminology, update terminology, and make conforming or clarifying changes so the rules reflect the current codification of the Texas Racing Act and related law.

Fiscal Note

Public Benefit and Economic Cost

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed amendments will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

Takings Impact Assessment

The Commission has determined that the proposed amendments do not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Statutory Authority for §303.32 - Power of Entry

The amendment is proposed under Texas Occupations Code, §§2023.004 and 2023.007. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements Texas Occupations Code, §2023.007.

Statutory Authority for §303.34 - Certified Documents

The amendment is proposed under Texas Occupations Code, §§2023.004 and 2023.060. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements Texas Occupations Code, §2023.060.

Statutory Authority for §303.41 - Allocation of Race Dates

The amendment is proposed under Texas Occupations Code, §§2023.004, 2029.001, 2029.002, and 2029.003. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2029.

§303.32. Power of Entry.

(a) The power of entry for commission members, authorized agents, stewards, judges, and law enforcement officers is as provided in Tex. Occ. Code Section 2023.007. [A member or authorized agent of the commission, a steward or judge, a commissioned officer of the Department of Public Safety who is assigned to work on racing investigations, or a peace officer of the local jurisdiction in which the association maintains a place of business may enter an office, a racetrack, any area on association grounds, or any similar area or other place of business of an association at any time to enforce or administer the Act or commission rules.]

(b) An association or an officer, employee, or agent of an association may not refuse or deny a request to enter under this section and may not hinder a person who is conducting an investigation under or attempting to enforce or administer the Act or commission rules.

§303.34. Certified Documents.

The commission may require certification of documents as provided in Tex. Occ. Code Section 2023.060. [~~a document required to be filed with the commission to be certified under penalty of perjury.~~]

§303.41. Allocation of Race Dates.

(a) The commission shall allocate live race dates, including charity days, to each association for such time periods and at such racing locations as the commission determines in accordance with the Act and this section.

(b) Upon its own motion or upon the request of any association, the commission may designate an application period during which the commission shall accept applications for race dates.

(d) Upon designation by the commission of an application period under this section, the executive director [~~secretary~~] shall publicize that application period to the affected [~~greyhound and~~] horse racing associations at least 15 [30] days before the closing date of the period.

(e) The application must be on a form prescribed by the commission. After the request is filed, the executive director [~~secretary~~] may require the association to submit additional information if the executive director [~~secretary~~] determines the additional information is necessary to effectively evaluate the request. Applications and supporting documents under this section may be submitted electronically in a manner prescribed by the Commission.

(f) In allocating race dates under this section, the commission may consider the following factors and the degree to which the association's proposed race meeting will serve to nurture, promote, develop, or improve the horse [~~or greyhound~~] industry in Texas:

(1) the association's current ability to pay all fees and other amounts owed to the commission, to the state, and to local governments;

(2) the association's willingness and ability to comply and past performance in complying with the Rules and the Act;

(3) the current condition of the association's racetrack and facilities for patrons, horses, [~~race animals,~~] and occupational licensees;

(4) the anticipated effect of the proposed race meeting on the continuity of racing during the year;

(5) the live race dates requested by other associations licensed to conduct races for the same species of animal;

(6) the anticipated overall economic effect to the state from the race meeting;

(7) the anticipated effect of the race meeting on the [~~greyhound or~~] horse breeding industry in Texas;

(8) the anticipated effect of scheduled race meetings in neighboring race states on the proposed race meeting; and

(9) the anticipated availability of horses [~~race animals~~] for the race meetings.

(g) The commission shall approve the actual days awarded, and the total number of performances. The commission may require a minimum number of races in a race meet.

(h) An association shall conduct pari-mutuel racing on each race date granted under this section, and in accordance with the race date calendar approved by the Commission, unless the association receives the prior approval of the executive director [~~secretary~~].

(i) If circumstances beyond the control of the association prevent the association from conducting a performance, the commission may award a make-up performance.

(j) Change in Race Date Allocation.

(1) The executive director [~~secretary~~] may permit an association to request additional live race dates after its request under this section has been acted on by the commission if the executive director [~~secretary~~] determines that:

(A) the request includes evidence that granting the additional live race dates will enhance the breeding and training industries for horses [~~or greyhounds~~];

(B) the association's failure to request the live race dates initially was not due to the association's neglect; and

(C) if the request duplicates a request by the association that has already been denied by the commission, changed circumstances exist that necessitate additional consideration by the commission.

(2) An association may request a change to the live race dates granted by the commission provided the association obtains the approval of all associations that are affected by the proposed change. This subsection applies to any proposed change to the number or format of live race dates.

(3) The executive director [~~secretary~~] may approve an association's request to add, delete, or modify live race dates, provided that the request:

(A) does not add any live race dates that are more than fourteen calendar days preceding the start of the Commission-approved race meet or more than fourteen days following the end of the Commission-approved race meet;

(B) is supported in writing by each breed organization affected by the change;

(D) in the case of a horse racing association, is supported in writing by the horsemen's organization.

(4) In determining whether to approve a request under this subsection, the executive director [~~secretary~~] may consider the effect that approving the request would have on the workload and budget status of the Commission.

(5) For purposes of this subsection, an allocation of live race performances may be changed in the same manner as a change in the allocation of live race dates.

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 22, 2026.

TRD-202604470

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

SUBCHAPTER D. TEXAS BRED INCENTIVE PROGRAMS

DIVISION 2. PROGRAM FOR HORSES

16 TAC §§303.94 - 303.96

The Texas Racing Commission (Commission) proposes to amend 16 TAC §303.94, concerning Arabian Horse Rules; §303.95, concerning Races for Accredited Texas-Bred Horses; and §303.96, concerning Paint Horse Rules.

Background and Justification

The proposed amendments to §§303.94 - 303.96 are part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8.

The amendment to §303.94 updates outdated office information by replacing mailing-office language with language directing the public to the Commission's website or Commission office.

The amendment to §303.95 adds a statutory cross-reference to Tex. Occ. Code §2030.003 and updates references from "executive secretary" to "executive director."

The amendment to §303.96 updates outdated office information by replacing mailing-office language with language directing the public to the Commission's website or Commission office.

Summary of Proposal

The proposed amendments update document-availability language, add statutory cross-references, and update terminology to reflect current Commission practices and procedures.

Fiscal Note

Public Benefit and Economic Cost

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed amendments will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

Takings Impact Assessment

The Commission has determined that the proposed amendments do not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Statutory Authority for §303.94 - Arabian Horse Rules

The amendment is proposed under Texas Occupations Code, §§2021.003, 2023.004, and Chapter 2030. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2030.

Statutory Authority for §303.95 - Races for Accredited Texas-Bred Horses

The amendment is proposed under Texas Occupations Code, §§2023.004 and 2030.003. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, §2030.003.

Statutory Authority for §303.96 - Paint Horse Rules

The amendment is proposed under Texas Occupations Code, §§2021.003, 2023.004, and Chapter 2030. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2030.

§303.94. Arabian Horse Rules.

The Commission adopts by reference the rules of the Texas Arabian Breeders Association dated March 25, 2006, regarding the administration of the Texas Bred Incentive Program for Arabian horses. Copies of these rules are available on [at] the Texas Racing Commission website at www.txrc.texas.gov or by contacting the Commission office[~~, P.O. Box 12080, Austin, Texas 78711, or at the Commission office at 8505 Cross Park Dr., #110, Austin, Texas 78754-4594~~].

§303.95. Races for Accredited Texas-Bred Horses.

On each race day, an association shall provide for the running of races [~~at least two races~~] limited to accredited Texas-bred horses as required by Tex. Occ. Code Section 2030.003 [~~, one of which shall be restricted to maidens~~]. An association may defer the running of required Texas-bred races [,] with the approval of the executive director [~~secretary~~], provided [~~the running of one or both of the two races required by this section for each race day, but the association must provide that~~] the total number of accredited Texas-bred races conducted in a race meeting equals or exceeds [~~is equal to or greater than~~] twice the total number of race dates in the race meeting, as required by law.

§303.96. Paint Horse Rules.

The commission adopts by reference the rules of the Texas Paint Horse Breeders Association dated September 17, 1996, regarding the administration of the Texas Bred Incentive Program for paint horses. Copies of these rules are available on [at] the Texas Racing Commission website at www.txrc.texas.gov or by contacting the Commission office. [~~, P.O. Box 12080, Austin, Texas 78711, or at the commission office at 8505 Cross Park Drive, #110, Austin, Texas 78754-4594.~~]

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 22, 2026.

TRD-202604471

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

CHAPTER 307. PROCEEDINGS BEFORE THE COMMISSION

SUBCHAPTER B. CONTESTED CASES

16 TAC §307.34

The Texas Racing Commission (Commission) proposes the repeal of 16 TAC §307.34, concerning Exceptions and Replies.

Background and Justification

The proposed repeal removes §307.34 because it will no longer be necessary upon adoption of amendments to §307.36. The repeal avoids duplicative or unnecessary contested-case procedure language and allows the Commission to maintain the procedure in the rule where Commission consideration of proposals for decision is addressed.

Summary of Proposal

The proposed repeal removes §307.34 in its entirety.

Fiscal Note

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed repeal will be in effect, the public benefit anticipated as a result of the proposed repeal will be clearer contested-case procedure and reduced duplication in the Commission's procedural rules. David Holmes has also determined that, for each year of the first five years the proposed repeal will be in effect, there will be no probable economic cost to persons required to comply with the repeal because the repeal removes an existing rule and does not impose a new fee, reporting requirement, or substantive compliance obligation.

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed repeal will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed repeal will be in effect, the Commission has determined that the proposal: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new regulation; (6) will repeal an existing procedural regulation that will be unnecessary if proposed amendments to §307.36 are adopted and will not otherwise expand an existing regulation; (7) will not increase the number of individuals subject to the rule's applicability; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed repeal does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Statutory Authority

The repeal is proposed under Texas Occupations Code, §§2023.004, 2023.106, 2023.108, and 2023.109; and Texas Government Code, Chapter 2001. Section 2023.004 authorizes the Commission to adopt rules for conducting racing involving wagering and for administering the Texas Racing Act; §2023.106 authorizes rules governing the powers and duties of race meeting officials; §§2023.108 and 2023.109 address final decisions and appeals from race-meeting-official decisions; and Government Code, Chapter 2001 governs state-agency contested-case and rulemaking procedure.

Cross-Reference to Statutes Implemented or Affected

The proposed repeal implements, interprets, or affects Texas Occupations Code, Chapter 2023, Subchapter C, and Texas Government Code, Chapter 2001.

§307.34. Exceptions and Replies.

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 22, 2026.

TRD-202604479

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

SUBCHAPTER D. RULEMAKING

16 TAC §307.101, §307.103

The Texas Racing Commission (Commission) proposes to amend 16 TAC §307.101, concerning Purpose; and §307.103, concerning Petition for Adoption of Rules.

Background and Justification

The proposed amendments to §307.101 and §307.103 are part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8.

The amendment to §307.101 updates an outdated statutory reference from "the Act, §3.02" to the current Occupations Code citation.

The amendment to §307.103 incorporates a statutory reference, replaces obsolete terms, updates references from "executive secretary" to "executive director," and clarifies who may petition for the adoption of rules.

Summary of Proposal

The proposed amendments update statutory citations and cross-references and clarify existing Commission procedures so the rules reflect the current codification of the Texas Racing Act and related law.

Fiscal Note

Public Benefit and Economic Cost

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed amendments will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

Takings Impact Assessment

The Commission has determined that the proposed amendments do not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Statutory Authority for §307.101 - Purpose

The amendment is proposed under Texas Occupations Code, §2023.004. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing or greyhound racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, §2023.004.

Statutory Authority for §307.103 - Petition for Adoption of Rules

The amendment is proposed under Texas Occupations Code, §2023.004, and Texas Government Code, §2001.021. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Government Code, §2001.021.

§307.101. Purpose.

As authorized by Tex. Occ. Code Section 2023.004 [~~the Act, §3.02~~] and other law, the Commission shall adopt rules as authorized and required by law which are necessary for the performance of its duties, to establish standards of conduct for its licensees, to ensure strict compliance with and enforcement of the Act, to ensure uniform practice and procedure, and to provide for public participation, notice of agency actions, and a fair and expeditious determination of matters.

§307.103. Petition for Adoption of Rules.

(a) An interested [A] person, as defined by Tex. Gov't Code Section 2001.021 may request the Commission to adopt, amend, or repeal a rule by filing the request in writing with the executive director [~~secretary~~].

(b) The request must include:

(1) the full name, address, and telephone number of the person making the request;

(2) the text of the new section or amendment, or a reference to the section proposed for repeal, identified in a manner sufficient to show the context of the new section, amendment, or repeal;

(3) a suggested effective date;

(4) reasons for the proposed action in narrative form in sufficient detail to inform the Commission fully of the facts on which the person relies;

(5) the desired effect of the proposed section, amendment, or repeal;

(6) the fiscal implications of the proposed section, amendment, or repeal to the state, to units of local government, to small businesses, and to individuals, if any; and

(7) the signature of the person or a representative of the person.

(c) The executive director [~~secretary~~] shall inform the Chair of the Commission of each petition for rulemaking filed. The Chair shall determine whether to place the petition on the agenda for a Commission meeting for consideration by the Commission.

(d) Not later than the 60th day after the date a petition under this section is submitted, a state agency shall:

(1) deny the petition in writing, stating its reasons for the denial; or

(2) initiate a rulemaking proceeding under this subchapter.

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 22, 2026.

TRD-202604472

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

CHAPTER 309. RACETRACK LICENSES AND OPERATIONS

SUBCHAPTER A. RACETRACK LICENSES

DIVISION 1. GENERAL PROVISIONS

16 TAC §309.5

The Texas Racing Commission (Commission) proposes to amend 16 TAC §309.5, concerning Restrictions on Licensing.

Background and Justification

The proposed amendment to §309.5, concerning Restrictions on Licensing, is part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8 and adds cross-reference for navigability.

Summary of Proposal

The proposed amendment modernizes the rule, removes obsolete language, and clarifies existing Commission procedures without creating a new regulatory program.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the amendment will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the amendment. The amendment is not expected to create a measurable fiscal effect because it updates citations, terminology, document-availability language, or obsolete language.

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed amendment will be in effect, the public benefit anticipated as a result of the proposed amendment will be greater clarity, easier public access to current rule requirements, and a more accurate and efficient body of Commission rules. David Holmes has also determined that, for each year of the first five years the proposed amendment will be in effect, there will be no probable economic cost to persons required to comply with the proposed rule because the proposal does not impose a new fee, reporting requirement, or substantive compliance obligation.

Small Business, Micro-Business, and Rural Community Impact

The Commission has determined that the proposed amendment will not have an adverse economic effect on small businesses, micro-businesses, or rural communities because the proposal does not impose new costs, new reporting obligations, or new operational requirements. The proposal therefore does not require preparation of a regulatory flexibility analysis.

Local Employment Impact

The Commission has determined that the proposed amendment will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed amendment will be in effect, the Commission has determined that the proposal: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new regulation; (6) will not expand, limit, or repeal an existing regulation except by streamlining, clarifying, or updating the affected rule; (7) will not increase or decrease the number of individuals subject to the rule's applicability; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed amendment does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposal may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed rule from any interested person and also requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Occupations Code, §§2023.004, 2025.101, 2025.201, and 2025.202. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2025.

§309.5. Restrictions on Licensing.

(a) Lease. If an applicant for a license to operate a racetrack intends to lease the racetrack facility from another person, the Commission may not grant the license if the Commission determines that:

(1) the lessor would not be qualified to be issued a license; or

(2) the lease is a subterfuge to avoid compliance with the Act or a rule of the Commission.

(b) Reasonable Diligence Required. If the Commission determines that an association is failing to exercise reasonable diligence in preparing a racetrack to begin racing on the date approved by the Commission, the Commission may revoke the license and grant the license to another applicant. See also §309.103 of this title (relating to Construction and Renovation of Racetrack Facilities).

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 22, 2026.

TRD-202604473

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

DIVISION 2. ACTIVE AND INACTIVE RACETRACK LICENSES

16 TAC §309.53

The Texas Racing Commission (Commission) proposes to amend 16 TAC §309.53, concerning Ownership and Management Review of Active Racetrack Licenses.

Background and Justification

The proposed amendment to §309.53, concerning Ownership and Management Review of Active Racetrack Licenses, is part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8. Remove outdated date references; update 'executive secretary' to 'executive director'.

Summary of Proposal

The proposed amendment updates references from executive secretary to executive director and makes related conforming or clarifying changes.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the amendment will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the amendment. The amendment may reduce administrative burden by removing obsolete language, duplicative provisions, or outdated procedures, but any governmental savings cannot be reliably quantified from the information in the proposal.

Public Benefit and Economic Cost

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed amendment will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

Takings Impact Assessment

The Commission has determined that the proposed amendment does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposal may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed rule from any interested person and also requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Occupations Code, §§2023.004, 2025.101, and 2025.107. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2025.

§309.53. Ownership and Management Review of Active Racetrack Licenses.

(a) Scheduling of review.

(1) Except as otherwise provided in this subsection, an association holding a racetrack license designated as "Active-Operating" or "Active-Other" shall be subject to an ownership and management review as scheduled by the Commission [~~in calendar year 2013~~].

(2) An association that undergoes or has undergone an ownership and management review in connection with a change of controlling interest in [~~during 2008 or~~] any [~~subsequent~~] year shall be subject to review under this section in the year beginning five years after the Commission approved the change in controlling interest.

(3) An association which receives its original license at any time [~~during or after calendar 2013~~] shall be subject to review under this section in the year beginning five years after its date of original licensure.

(b) Submission requirements. Not later than June 30 of the year in which an association is subject to review, the association shall submit to the Commission:

(1) copies of its current management, concession, and totalisator contracts;

(2) a copy of its current security plan;

(3) for each person owning an interest of at least five percent of the association and for each officer, director, or management committee member who is not currently licensed as an Association Officer or Director by the Commission:

(A) a completed background information form and written authorization for the Commission and the Department of Public Safety to conduct any investigation deemed necessary; and

(B) a set of fingerprints on a form prescribed by the Department of Public Safety, or if the person already has a set of fingerprints classified and on file with the Department of Public Safety, authorization to resubmit those fingerprints to the Federal Bureau of Investigation and the Department of Public Safety for investigation;

(4) a review fee of $5,000, to be held by the Commission in the state treasury in a suspense account until the review is complete or transferred to the Texas Racing Commission Fund as costs are incurred; and

(5) any other information required by the Commission.

(1) The executive director [~~secretary~~] shall prepare a report for the Commission's review summarizing:

(A) the information provided by the association under this section or under §309.152 of this title (relating to Records);

(B) the Commission's inspection reports from the prior five years;

(D) any other information relevant to the ownership or management of the association.

(2) The executive director [~~secretary~~] will separately provide to the Commission the results of any background investigations conducted by the Department of Public Safety.

(3) At the conclusion of each review, the Commission:

(A) may take any action authorized under the Act or the Rules; and

(B) shall schedule the next ownership and management review of the association's license.

(d) Reconciliation of costs. Upon completion of the review, the Commission shall determine its total cost of processing the review, including its administrative costs and any investigative costs that are reimbursable to the Department of Public Safety.

(1) If the actual cost to the Commission of processing the review exceeds the amount of the review fee paid by the association, the Commission shall bill the association for any additional amount, to be paid not later than 30 days after receipt of a bill from the Commission.

(2) If the actual cost to the Commission of processing the review is less than the amount of the review fee paid by the association, the Commission shall refund the excess not later than 30 business days after the Commission's decision on the review becomes final.

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 22, 2026.

TRD-202604474

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

CHAPTER 313. OFFICIALS AND RULES OF HORSE RACING

SUBCHAPTER A. OFFICIALS

DIVISION 2. DUTIES OF STEWARDS

16 TAC §313.25

The Texas Racing Commission (Commission) proposes to amend 16 TAC §313.25, concerning Steward's List.

Background and Justification

Horses can be placed on the steward's list and declared ineligible to start in a race on the basis of poor performance or behavior on the racetrack that endangers the health or safety of other participants in racing. The proposed amendment addresses the eligibility of a horse to start in a race after a positive drug result involving a Class 1 or Class 2 substance, or when the horse is placed on a steward's list or an equivalent list, in another racing jurisdiction. The amendment is intended to protect the integrity of racing, the wagering public, and racing participants by making a horse ineligible to start while a serious medication or drug case is pending adjudication when the positive drug result is supported by a corresponding laboratory data packet, or when the horse is placed on a steward's list or an equivalent list, in another racing jurisdiction.

Summary of Proposal

The proposed amendment adds a new ground for placing a horse on the steward's list when there is a positive drug result with a corresponding laboratory data packet indicating a Class 1 or Class 2 substance, or when the horse is placed on a steward's list or an equivalent list, in another racing jurisdiction until the case is adjudicated or when the horse is removed from the list of the other racing jurisdiction, respectively. The amendment also clarifies that the workout or schooling-race procedure for removal from the steward's list applies to horses listed for poor or inconsistent performance or unsafe racetrack behavior.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the amendment will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the amendment. The amendment can be administered through the existing steward's list process and existing Commission drug-testing and adjudication procedures.

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed amendment will be in effect, the public benefit anticipated as a result of the proposed amendment will be increased protection of the integrity of racing, improved confidence in the fairness of pari-mutuel racing, and clearer treatment of serious positive drug results pending adjudication. David Holmes has also determined that the proposed amendment does not impose a new fee or general reporting requirement. The amendment may have case-specific economic consequences for persons associated with a horse placed on the steward's list under the new ground because the horse will be ineligible to start until the case is adjudicated; however, any such effect depends on the facts of an individual positive-result case and cannot be uniformly estimated.

Small Business, Micro-Business, and Rural Community Impact

The Commission has determined that the proposed amendment will not have an adverse economic effect on small businesses, micro-businesses, or rural communities as a class because the proposal does not impose general compliance costs, new fees, or new reporting obligations. Any economic effect on a small or micro-business would be case-specific and limited to circumstances in which a horse is placed on the steward's list after a positive drug result with a corresponding laboratory data packet indicating a Class 1 or Class 2 substance. The proposal therefore does not require preparation of a regulatory flexibility analysis.

Local Employment Impact

The Commission has determined that the proposed amendment will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed amendment will be in effect, the Commission has determined that the proposal: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new government program; (6) will expand an existing regulation by adding a ground for placing a horse on the steward's list based on a Class 1 or Class 2 positive drug result supported by a corresponding laboratory data packet; (7) will not increase or decrease the number of individuals subject to the rule's applicability except as applied in individual positive-result cases; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed amendment does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposal may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed rule from any interested person and also requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Occupations Code, §§2023.001, 2023.002, 2023.004, and 2023.106. Section 2023.001 authorizes the Commission to license and regulate all aspects of horse racing in this state. Section 2023.002 requires the Commission to regulate and supervise each race meeting in this state that involves wagering on the result of horse racing. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act. Section 2023.106 requires the Commission to adopt rules specifying the powers and duties of race meeting officials, including stewards.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, §§2023.001, 2023.002, 2023.004, and 2023.106.

§313.25. Steward's List.

(a) The stewards shall maintain a steward's list of the horses that are ineligible to start in a race because of:

(1) poor or inconsistent performance; [or]

(2) behavior on the racetrack that endangers the health or safety of other participants in racing;[.]

(3) positive drug result with corresponding lab data packet indicating a Class 1 or 2 substance; or

(4) placement of the horse on the steward's list, or an equivalent list, in another racing jurisdiction.

(b) To be removed from the steward's list for poor or inconsistent performance or behavior on the racetrack that endangers the health or safety of other participants in racing, a horse must, during a workout or schooling race, perform in a manner satisfactory to show the stewards that the horse:

(1) will no longer pose a threat to other participants; and

(2) will be competitive in a race in which it participates.

(c) A horse placed on the steward's list under subsection (a)(3) of this section must remain on the list until the matter giving rise to the positive drug result has been fully adjudicated. Upon full adjudication, the stewards shall remove the horse from the steward's list unless another basis exists for maintaining the horse on the list.

(d) A horse placed on the steward's list under subsection (a)(4) of this section must remain on the list until the horse is removed from the steward's list of the other racing jurisdiction. Upon removal by the other racing jurisdiction, the stewards shall remove the horse from the steward's list unless another basis exists for maintaining the horse on the list.

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 22, 2026.

TRD-202604475

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

CHAPTER 321. PARI-MUTUEL WAGERING

SUBCHAPTER B. TOTALISATOR REQUIREMENTS AND OPERATING ENVIRONMENT

16 TAC §321.101

The Texas Racing Commission (Commission) proposes to amend 16 TAC §321.101, concerning Totalisator Requirements and Operating Environment.

Background and Justification

The proposed amendment to §321.101, concerning Totalisator Requirements and Operating Environment, is part of the Commission's regulatory efficiency review of its rules in 16 TAC Part 8. Removes specific date reference and updates outdated office information.

Summary of Proposal

The proposed amendment updates the rule's availability-of-documents language by replacing outdated mailing-office language with language directing the public to the Commission's website or the Commission office.

Fiscal Note

Public Benefit and Economic Cost

Small Business, Micro-Business, and Rural Community Impact

Local Employment Impact

The Commission has determined that the proposed amendment will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

Takings Impact Assessment

The Commission has determined that the proposed amendment does not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposal may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed rule from any interested person and also requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposal in the Texas Register.

Statutory Authority

The amendment is proposed under Texas Occupations Code, §§2023.004, 2024.003, and Chapter 2027. Section 2023.004 authorizes the Commission to adopt rules for conducting horse racing in this state that involves wagering and rules for administering the Texas Racing Act in a manner consistent with the Act.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapters 2024 and 2027.

§321.101. Totalisator Requirements and Operating Environment.

Each association shall conduct wagering using a pari-mutuel system approved by the Commission. The pari-mutuel system shall operate in accordance with applicable laws and rules and meet the latest technical standards set forth in the Association of Racing Commissioners International Totalisator Technical Standards [~~as amended in December 2020 and any subsequent amendments~~]. Copies of the Totalisator Technical Standards are available on the Texas Racing Commission website at www.txrc.texas.gov or by contacting the Commission office [~~at the Texas Racing Commission, Austin Headquarters office~~].

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 22, 2026.

TRD-202604476

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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

SUBCHAPTER C. REGULATION OF LIVE WAGERING

DIVISION 2. DISTRIBUTION OF PARI-MUTUEL POOLS

16 TAC §321.311, §321.315

The Texas Racing Commission (Commission) proposes the amendment of 16 TAC §321.311, concerning Twin Trifecta; and §321.315, concerning Tri-Superfecta.

Background and Justification

The proposed amendments to §321.311 and §321.315 update how these wagers operate to comply with the Association of Racing Commissioners International Model Rules of Racing, as amended in August 2026. The amendments reference the updated standards governing the operation and placement of these exotic wagers.

Summary of Proposal

The proposed amendments reference the Association of Racing Commissioners International Model Rules of Racing, as amended in August 2026, regarding how Twin Trifecta and Tri-Superfecta wagers must be placed and processed.

Fiscal Note

David Holmes, Executive Director, has determined that, for each year of the first five years the amendments will be in effect, there will be no additional estimated cost to state or local government and no estimated loss or increase in revenue to state or local government as a result of enforcing or administering the amendments. The amendments may reduce administrative burden by using straightforward language to refer to the standards governing the operation and placement of these exotic wagers, removing any further unnecessary language.

Public Benefit and Economic Cost

David Holmes, Executive Director, has determined that, for each year of the first five years the proposed amendments will be in effect, the public benefit anticipated as a result of the proposed amendments will be updating the operation and placement of these exotic-wager rules. David Holmes also determined that, for each of the first five years the proposed amendments will be in effect, there will be no probable economic cost to persons required to comply with the amendments because the amendments only reference the updated standards that govern these wagers.

Small Business, Micro-Business, and Rural Community Impact

The Commission has determined that the proposed amendments will not have an adverse economic effect on small businesses, micro-businesses, or rural communities because the amendments do not impose new costs, new reporting obligations, or new operational requirements. The proposed amendments therefore do not require preparation of a regulatory flexibility analysis.

Local Employment Impact

The Commission has determined that the proposed amendments will not affect a local economy and therefore no local employment impact statement is required.

Government Growth Impact Statement

For each year of the first five years that the proposed amendments will be in effect, the Commission has determined that the proposals: (1) will not create or eliminate a government program; (2) will not require the creation or elimination of employee positions; (3) will not require an increase or decrease in future legislative appropriations to the Commission; (4) will not require an increase or decrease in fees paid to the Commission; (5) will not create a new regulation; (6) will update the placement and operation regulations for Twin Trifecta and Tri-Superfecta wagers and will not otherwise expand existing regulations; (7) will not increase the number of individuals subject to the rules' applicability; and (8) will not positively or adversely affect this state's economy.

Takings Impact Assessment

The Commission has determined that the proposed amendments do not affect private real property in a manner that would require a takings impact assessment under Government Code, Chapter 2007.

Public Comment

Written comments on the proposals may be submitted to David Holmes, Executive Director, Texas Racing Commission, by email to rulecomments@txrc.texas.gov. The Commission requests comments on the proposed amendments from any interested person and also requests information related to the cost, benefit, or effect of the proposed amendments, including any applicable data, research, or analysis. Comments must be received no later than 30 days after publication of the proposals in the Texas Register.

Statutory Authority for §321.311 - Twin Trifecta and §321.315 - Tri-Superfecta

The amendment is proposed under Texas Occupations Code, §§2023.002, 2023.004, and 2027.001. Section 2023.002 requires the Commission to regulate and supervise each race meeting in this state that involves wagering; §2023.004 authorizes Commission rules for conducting racing involving wagering and administering the Texas Racing Act; and §2027.001 requires the Commission to adopt written and updated rules regulating pari-mutuel wagering.

Cross-Reference to Statutes Implemented or Affected

The proposed amendment implements, interprets, or affects Texas Occupations Code, Chapter 2027.

§321.311. Twin Trifecta.

[~~(a)~~] The twin trifecta wager shall be placed and processed in accordance with applicable laws and rules and meet the technical standards set forth in the Association of Racing Commissioners International's Model Rules of Racing as amended in August 2026. [~~is not a parlay and has no connection with or relation to the win, place, and show pools shown on the tote board. All tickets on the twin trifecta shall be calculated as a separate pool.~~]

[(b) The twin trifecta requires selection of the first three finishers, in exact order, in each of two designated races. Each winning ticket for the first twin trifecta race must be exchanged for a free ticket on the second twin trifecta race to remain eligible for the second-half twin trifecta pool. Such tickets may be exchanged only at designated attended ticket windows before the start of the second twin trifecta race. Winning first-half twin trifecta wagers will receive both an exchange and a monetary payout. Both of the designated twin trifecta races shall be included in one twin trifecta pool.]

[(c) After wagering closes for the first-half of the twin trifecta and commissions have been deducted from the pool, the net pool shall then be divided equally into two separate pools: the first-half twin trifecta pool and the second-half twin trifecta pool.]

[(d) In the first twin trifecta race only, the first-half twin trifecta pool shall be distributed according to the following precedence, based on the official order of finish for the first twin trifecta race:]

[(1) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(2) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(3) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(4) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(5) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(6) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(7) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(8) The twin trifecta pool shall be canceled and the entire pool shall be carried forward to the next consecutive performance and combined with that performance's second-half twin trifecta pool.]

[(e) If no first-half twin trifecta ticket selects the first three finishers of that contest in exact order, no exchange tickets for the second-half twin trifecta pool will be issued. In such case, the second-half twin trifecta pool shall be carried forward and added to any existing twin trifecta carryover pool.]

[(f) A first-half twin trifecta ticket that selects the first three finishers of that race in exact order may be exchanged for a ticket selecting the first three finishers of the second twin trifecta race. The second-half twin trifecta pool shall be distributed according to the following precedence, based on the official order of finish for the second twin trifecta race:]

[(1) As a single price pool, including the carryover, to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(2) The second-half twin trifecta pool for that race shall be carried forward to the next consecutive performance and shall be combined with that performance's second-half twin trifecta pool.]

[(g) If a winning first-half twin trifecta ticket is not presented for cashing and exchange before the start of the second twin trifecta race, the ticket holder may still collect the monetary value associated with the first-half twin trifecta pool but forfeits all rights to a distribution of the second-half twin trifecta pool.]

[(h) If fewer than six horses of different betting interests leave the paddock for the first twin trifecta race or fewer than six greyhounds start the first twin trifecta race, the twin trifecta shall be canceled and the entire twin trifecta pool for that performance shall be refunded.]

[(i) Before the running of the first twin trifecta race, if due to a scratch the second twin trifecta race has fewer than six horses of different betting interests or fewer than six greyhounds of different betting interests, the twin trifecta shall be canceled and the entire twin trifecta pool for that performance shall be refunded.]

[(j) After the running of the first twin trifecta race, if due to a late scratch, the second twin trifecta race has fewer than six animals of different betting interests that start, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half twin trifecta pool for that performance as a single price pool, but not the twin trifecta carryover.]

[(k) Coupled entries and mutuel fields may not be permitted in a twin trifecta horse race unless there are six or more betting interests. Coupled entries or mutuel fields in a twin trifecta race shall race as a single betting interest for the purpose of mutuel pool calculations and payout to the public.]

~~[(l) If a betting interest in the first twin trifecta race is scratched, all twin trifecta wagers including the scratched betting interest shall be refunded.]~~

[(m) If a betting interest in the second twin trifecta race is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided to exchange tickets that include the scratched betting interest.]

[(n) If there is a dead heat or multiple dead heats in either the first or second twin trifecta race, all twin trifecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in:]

[(1) the first twin trifecta race, the payout shall be calculated as a profit split; and]

[(2) the second twin trifecta race, the payout shall be calculated as a single price pool.]

[(o) If either of the twin trifecta races are canceled before the first twin trifecta race, or if the first twin trifecta contest is declared "no contest", the entire twin trifecta pool for that performance shall be refunded and the second-half pool shall be canceled.]

[(p) If the second twin trifecta race is canceled or declared "no contest" on a:]

[(1) non-designated mandatory payout performance, all exchange tickets and outstanding first-half winning twin trifecta tickets shall be entitled to the net twin trifecta pool for that performance as a single price pool, but not the twin trifecta carryover. If there are no such tickets, the net twin trifecta pool shall be carried forward to the next consecutive performance and combined with that performance's second-half twin trifecta pool; and]

[(2) designated mandatory payout performance, all exchange tickets and outstanding first-half winning twin trifecta tickets as determined by subsection (s) of this section shall be entitled to the net twin trifecta pool for that performance and the twin trifecta carryover as a single price pool.]

[(q) An association may file a written request for permission to distribute the twin trifecta carryover on a specific performance with the executive secretary. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.]

[(r) Notwithstanding subsections (f) and (t) of this section, on the last performance of a race meeting or on a designated mandatory payout performance, the following precedence will be followed in determining winning tickets for the second-half of the twin trifecta:]

[(1) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(2) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(3) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(4) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(5) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(6) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(7) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(8) As a single price pool to holders of valid exchange tickets; but if there are no such persons, then]

[(9) As a single price pool to holders of outstanding first-half winning tickets.]

[(s) Distribution on Mandatory Payout.]

[(1) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meeting or a designated mandatory payout performance, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in the first twin trifecta race in the following order:]

[(A) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(B) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(C) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(D) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(E) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(F) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(G) As a single price pool to those whose combination correctly selected the third-place betting interest.]

[(2) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meeting or a designated mandatory payout performance, if there are no wagers selecting the finishers in the order described in Paragraph (1) of this subsection and there is a carryover, all first-half tickets are considered winners and the twin trifecta pool for that performance and any existing twin trifecta carryover shall be distributed equally among them.]

[(3) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meeting or a designated mandatory payout performance, if there are no wagers selecting the finishers in the order described in Paragraph (1) of this subsection and there is no carryover, the twin trifecta shall be canceled and the entire twin trifecta pool shall be refunded.]

[(t) Cap on Carryover.]

[(1) The twin trifecta carryover may be capped at a designated level approved by the executive secretary so that if, at the close of any performance, the amount in the twin trifecta carryover equals or exceeds the designated cap, the twin trifecta carryover will be frozen until it is won or distributed under other provisions of this section. After the twin trifecta carryover is frozen, 50% of the twin trifecta pool shall be distributed to winners of the first twin trifecta race using the following precedence:]

[(A) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(B) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(C) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(D) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(E) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(F) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(G) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(H) the twin trifecta shall be canceled and the entire twin trifecta pool for that performance shall be refunded.]

[(2) After the twin trifecta carryover is frozen, exchange tickets will be issued for the second half of the twin trifecta pool, in accordance with paragraph (1) of this subsection. The second-half twin trifecta pool shall be distributed according to the following precedence, based upon the official order of finish for the second twin trifecta race:]

[(A) As a single price pool, including the carryover, to those who received an exchange ticket under paragraph (1)(A) of this subsection, and whose combination finished in correct sequence as the first three betting interests; but if there are no such tickets, then]

[(B) Fifty percent (50%) of the twin trifecta pool for that performance only shall be distributed in the following precedence:]

[(i) As a single price pool to those whose combination included, in correct sequence, the first three betting interest; but if there are no such wagers, then]

[(ii) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(iii) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(iv) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(v) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(vi) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(vii) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(viii) As a single price pool to holders of valid exchange tickets; but if there are no such persons, then]

[(ix) As a single price pool to holders of outstanding first-half winning tickets.]

[(u) The twin trifecta carryover shall be designated for mandatory payout on a specified date and performance only under the following circumstances:]

[(1) on written approval from the executive secretary as provided in subsection (q) of this section;]

[(2) on written approval from the executive secretary when there is a change in the carryover cap or when the twin trifecta is discontinued; and]

[(3) on the closing performance of the race meeting.]

[(v) If the twin trifecta carryover must be held over to the corresponding twin trifecta pool of a subsequent race meeting, the carryover shall be deposited in an interest-bearing account approved by the executive secretary. The twin trifecta carryover plus accrued interest shall be carried over and added to the second-half twin trifecta pool of the following race meeting on a date and performance designated by the executive secretary.]

[(w) The association must obtain written approval from the executive secretary concerning the scheduling and the amount of the cap to be set on the carryover. Any changes to the approved twin trifecta format require prior approval from the executive secretary.]

§321.315. Tri-Superfecta.

[~~(a)~~] The tri-superfecta shall be placed and processed in accordance with applicable laws and rules and meet the technical standards set forth in the Association of Racing Commissioners International's Model Rules of Racing as amended in August 2026. [~~is not a parlay and has no connection with or relation to the win, place, or show pools on the tote board. All tickets on the tri-superfecta shall be calculated as a separate pool.~~]

[(b) The tri-superfecta requires selection of the first three finishers, in exact order, in the first of two designated races. Each winning ticket for the first tri-superfecta race must be exchanged for a free ticket on the second tri-superfecta race to remain eligible for the second-half tri-superfecta pool. Such tickets may be exchanged only at designated attended ticket windows before the start of the second tri-superfecta race. Winning first-half tri-superfecta wagers will receive both an exchange and a monetary payout. Both of the designated tri-superfecta races shall be included in one tri-superfecta pool.]

[(c) After wagering closes for the first-half of the tri-superfecta and commissions have been deducted from the pool, the net pool shall then be divided equally into two separate pools: the first-half tri-superfecta pool and the second-half tri-superfecta pool.]

[(d) In the first tri-superfecta race only, the first-half tri-superfecta pool shall be distributed according to the following precedence, based upon the official order of finish for the first tri-superfecta race:]

[(1) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(2) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(3) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(4) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(5) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(6) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(7) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(8) The tri-superfecta pool shall be canceled and the entire pool shall be carried forward to the next consecutive performance and combined with that performance's second-half tri-superfecta pool.]

[(e) If no first-half tri-superfecta ticket selects the first three finishers of that race in exact order, no exchange tickets for the second-half tri-superfecta pool will be issued and the second-half tri-superfecta pool shall be carried over and added to the tri-superfecta carryover pool.]

[(f) A first-half tri-superfecta ticket that selects the first three finishers of that race in exact order may be exchanged for a ticket selecting the first four finishers of the second tri-superfecta race. The second-half tri-superfecta pool shall be distributed according to the following precedence, based upon the official order of finish for the second tri-superfecta race:]

[(1) As a single price pool, including the carryover, to those whose combination finished in correct sequence as the first four betting interests; but if there are no such tickets, then]

[(2) The second-half tri-superfecta pool for that contest shall be carried forward to the next consecutive performance and shall be combined with that performance's second-half tri-superfecta pool.]

[(g) If a winning first-half tri-superfecta ticket is not presented for cashing and exchange before the start of the second tri-superfecta race, the ticket holder may collect the monetary value associated with the first-half tri-superfecta pool but forfeits all right to a distribution of the second-half tri-superfecta pool.]

[(h) If fewer than six horses of different betting interests leave the paddock for the first tri-superfecta race or fewer than six greyhounds start the first tri-superfecta race, the tri-superfecta contest shall be canceled and the entire tri-superfecta pool for that performance shall be refunded.]

[(i) Before the running of the first tri-superfecta race, if due to a scratch the second tri-superfecta race has fewer than seven horses of different betting interests or fewer than seven greyhounds of different betting interests, the tri-superfecta shall be canceled and the entire tri-superfecta pool for that performance shall be refunded.]

[(j) After the running of the first tri-superfecta race, if due to a late scratch, the second tri-superfecta race has fewer than seven horses of different betting interests that start or has fewer than seven greyhounds of different betting interests that start, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half tri-superfecta pool for that performance as a single price pool, but not the tri-superfecta carryover.]

[(k) Coupled entries and mutuel fields may not be permitted in a tri-superfecta horse contest unless there are six or more betting interests and seven or more betting interests in the second race. Coupled entries or mutuel fields in a tri-superfecta race shall race as a single betting interest for the purpose of mutuel pool calculations and payout to the public.]

~~[(l) If a betting interest in the first tri-superfecta race is scratched, all tri-superfecta wagers including the scratched betting interest shall be refunded.]~~

[(m) If a betting interest in the second tri-superfecta race is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided to exchange tickets that include the scratched betting interest.]

[(n) If there is a dead heat or multiple dead heats in either the first or second tri-superfecta race, all tri-superfecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in:]

[(1) the first tri-superfecta race, the payout shall be calculated as a profit split; and]

[(2) the second tri-superfecta race, the payout shall be calculated as a single price pool.]

[(o) If either of the tri-superfecta races are canceled prior to the first tri-superfecta race, or if the first tri-superfecta race is declared "no contest", the entire tri-superfecta pool for that performance shall be refunded and the second-half pool shall be canceled.]

[(p) If the second tri-superfecta race is canceled or declared "no contest" on a:]

[(1) non-designated mandatory payout performance, all exchange tickets and outstanding first-half winning tri-superfecta tickets shall be entitled to the net tri-superfecta pool for that performance as a single price pool, but not the tri-superfecta carryover. If there are no such tickets, the net tri-superfecta pool shall be carried over to the next consecutive performance and combined with that performance's second-half tri-superfecta pool; and]

[(2) designated mandatory payout performance, all exchange tickets and outstanding first-half winning tri-superfecta tickets as determined by subsection (s) of this section shall be entitled to the net tri-superfecta pool for that performance and the tri-superfecta carryover as a single price pool.]

[(q) An association may file a written request for permission to distribute the tri-superfecta carryover on a specific performance with the executive secretary. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.]

[(r) Distribution on Mandatory Payout.]

[(1) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meet or a designated mandatory payout performance, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in the first tri-superfecta race in the following order:]

[(A) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(B) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(C) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(D) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(E) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(F) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(G) As a single price pool to those whose combination correctly selected the third-place betting interest.]

[(2) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meeting or a designated mandatory payout performance, if there are no wagers selecting the finishers in the order described in paragraph (1) of this subsection and there is a carryover, all first-half tickets are considered winners and the tri-superfecta pool for that performance and the tri-superfecta carryover shall be distributed equally among them.]

[(3) Notwithstanding subsections (e) and (t) of this section, on the last performance of a race meeting or a designated mandatory payout performance, if there are no wagers selecting the finishers in the order described in paragraph (1) of this subsection and there is no carryover, the tri-superfecta shall be canceled and the entire tri-superfecta pool shall be refunded.]

[(s) Notwithstanding subsections (f) and (t) of this section, on the last performance of a race meeting or on a designated mandatory payout performance, the following precedence will be followed in determining winning tickets for the second-half of the tri-superfecta:]

[(1) As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then]

[(2) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then]

[(3) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(4) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(5) As a single price pool to those whose combination included, in correct sequence, the second-place betting interests; but if there are no such wagers, then]

[(6) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(7) As a single price pool to those whose combination correctly selected the fourth-place betting interest; but if there are no such wagers, then]

[(8) As a single price pool to holders of valid exchange tickets; but if there are no such persons, then]

[(9) As a single price pool to holders of outstanding first-half winning tickets.]

[(t) Cap on Carryover.]

[(1) The tri-superfecta carryover may be capped at a designated level approved by the executive secretary so that if, at the close of any performance, the amount in the tri-superfecta carryover equals or exceeds the designated cap, the tri-superfecta carryover will be frozen until it is won or distributed under other provisions of this section. After the tri-superfecta carryover is frozen, 50% of the tri-superfecta pool shall be distributed to winners of the first tri-superfecta contest using the following precedence:]

[(A) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then]

[(B) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(C) As a single price pool to those whose combination included, in correct sequence, the first and third betting interests; but if there are no such wagers, then]

[(D) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(E) As a single price pool to those whose combination included, in correct sequence, the second and third betting interests; but if there are no such wagers, then]

[(F) As a single price pool to those whose combination correctly selected the second-place betting interest; but if there are no such wagers, then]

[(G) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(H) the tri-superfecta shall be canceled and the entire tri-superfecta pool for that performance shall be refunded.]

[(2) After the tri-superfecta carryover is frozen, exchange tickets will be issued for winning tickets of the first half of the tri-superfecta pool as determined in paragraph (1) of this subsection. The second-half tri-superfecta pool shall be distributed according to the following precedence, based upon the official order of finish for the second tri-superfecta race:]

[(A) As a single price pool, including the carryover, to those who received an exchange ticket under paragraph (1)(A) of this subsection, and whose combination finished in correct sequence as the first four betting interests of the second leg of the tri-superfecta pool; but if there are no such tickets, then]

[(B) Fifty percent (50%) of the tri-superfecta pool for that performance only shall be distributed in the following precedence:]

[(i) As a single price pool to those whose combination include, in correct sequence, the first four betting interests of the second leg of the tri-superfecta pool; but if there are no such wagers, then]

[(ii) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then]

[(iii) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then]

[(iv) As a single price pool to those whose combination correctly selected the first-place betting interest; but if there are no such wagers, then]

[(v) As a single price pool to those whose combination included, in correct sequence, the second-place betting interests; but if there are no such wagers, then]

[(vi) As a single price pool to those whose combination correctly selected the third-place betting interest; but if there are no such wagers, then]

[(vii) As a single price pool to those whose combination correctly selected the fourth-place betting interest; but if there are no such wagers, then]

[(viii) As a single price pool to holders of valid exchange tickets; but if there are no such persons, then]

[(ix) As a single price pool to holders of outstanding first-half winning tickets.]

[(u) The tri-superfecta carryover shall be designated for mandatory payout on a specified date and performance only under the following circumstances:]

[(1) on written approval from the executive secretary as provided in subsection (q) of this section;]

[(2) on written approval from the executive secretary when there is a change in the carryover cap or when the tri-superfecta is discontinued; and]

[(3) on the last performance of the race meeting.]

[(v) If the tri-superfecta carryover must be held over to the corresponding tri-superfecta pool of a subsequent race meeting, the carryover shall be deposited in an interest-bearing account approved by the executive secretary. The tri-superfecta carryover plus accrued interest shall be carried forward and added to the second-half tri-superfecta pool of the following race meeting on a date and performance designated by the executive secretary.]

[(w) The association must obtain written approval from the executive secretary concerning the scheduling and the amount of the cap to be set on the carryover. Any changes to the approved tri-superfecta format require prior approval from the executive secretary.]

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 22, 2026.

TRD-202604477

David Holmes

Executive Director

Texas Racing Commission

Earliest possible date of adoption: December 6, 2026

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