PART 8. TEXAS RACING COMMISSION
CHAPTER 309. RACETRACK LICENSES AND OPERATIONS
SUBCHAPTER D. GREYHOUND RACETRACKS
DIVISION 2. OPERATIONS
The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 309, Subchapter D, Greyhound Racetracks, §309.361, Operations, concerning administration of the Greyhound purse funds. Amended Chapter 309, Subchapter D, §309.361 is adopted with changes to the proposed text as published in the March 22, 2024, issue of the Texas Register (49 TexReg 1816) and will be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The purpose of this rule amendment is to provide the Commission full oversight on the administration of all funds derived from pari-mutuel wagering based on the industry transition and the cessation of all live greyhound racing in February 2020 in Texas.
PUBLIC COMMENTS
The deadline for public comments and the 30-day comment period ended April 21, 2024. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the March 22, 2024, issue of the Texas Register (49 TexReg 1816). TXRC received comments from the Texas Greyhound Association (TGA). The TGA opposed the amendments to Texas Racing Commission Rule 309.361. The TGA argued that the amendment was poorly drafted, exceeded the Commission's powers, and conflicted with the Racing Act. They asserted that the proposed changes would reduce regulatory oversight of funds held by greyhound racetrack associations, negatively impacting TGA's legal rights. Additionally, the TGA criticized the procedural process, stating it lacked proper consultation and transparency. They requested the Commission to reconsider and collaborate with stakeholders to develop better regulations. Following the comment period, at the request of the TGA, a Public Hearing was held at Retama Park on May 16, 2024. Public comments were received during that hearing and were considered in the development of this rule change proposal.
The TXRC edited the rule changes to address the TGA concern regarding continued audits of funds. The TXRC disagrees with the assertion that the rule exceeds the Commission's powers or conflicts with the Racing Act. We find no conflicting statutes or limits to rulemaking relevant here. The TXRC continues to believe that the rule changes are necessary to prevent further disbursement of funds by the TGA in conflict with the Texas Racing Act. Where the TGA had discretion to distribute funds, that discretion will reside with the TXRC following the adoption of this rule.
COMMISSION ACTION
At its meeting on June 12, 2024, the Commission adopted the proposed rule as recommended by the Commission at the December 13, 2023, meeting and the Rules Committee, which held a public hearing on May 16, 2024.
ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT
The Commission is exempt and not required to take further action under Texas Government Code §2001.0045. The Commission is specifically exempt under Texas Government Code §2001.0045(c)(7).
STATUTORY AUTHORITY
The rule amendment is adopted under Texas Occupations Code §§2027; 2028 which authorize TXRC to adopt rule amendments concerning administration of pari-mutuel wagering funds.
The statutory provisions affected by the adopted rule amendment are those set forth in Texas Occupations Code §§2027; 2028.
§309.361.Authority.
(a) Greyhound Purse Account
(1) All money required to be set aside for purses, whether from wagering on live races or simulcast races, are trust funds.
(2) The funds derived from a simulcast race for purses shall be distributed only with the approval of the Texas Racing Commission.
(b) Kennel Account. An association shall maintain a separate bank account known as the "kennel account". The association shall maintain in the account at all times a sufficient amount to pay all money owed to kennel owners for purses, stakes, rewards, and deposits unless otherwise directed by the Commission.
(c) If an association fails to run live races during any calendar year, all money in the greyhound purse account may be distributed as directed by the Texas Racing Commission.
(d) If an association ceases a live race meet before completion of the live race dates granted by the commission, the funds in and due the greyhound purse account shall be distributed as directed by the Texas Racing Commission.
(e) Administration of Accounts. An association shall employ a bookkeeper to maintain records of the greyhound purse account and the kennel account.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 30, 2024.
TRD-202403499
Amy F. Cook
Executive Director
Texas Racing Commission
Effective date: August 19, 2024
Proposal publication date: March 22, 2024
For further information, please call: (512) 833-6699