PART 8. TEXAS RACING COMMISSION
CHAPTER 313. OFFICIALS AND RULES OF HORSE RACING
SUBCHAPTER A. OFFICIALS
DIVISION 3. DUTIES OF OTHER OFFICIALS
The Texas Racing Commission (TXRC) proposes rule amendments in Texas Administrative Code, Title 16, Part 8, Chapter 313, §313.61. Horsemen's Bookkeeper. The purpose of this rule amendment is to strengthen the ability of the Commission to track and audit funds that are managed by the Horsemen's Bookkeeper.
A. ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL ECONOMY
There are no anticipated economic costs to persons required to comply with the proposed rule amendments. There is no effect on local economy for the first five years that the proposed rule amendments will be in effect; therefore, no local employment impact statement is required under Texas Government Code §§2001.022 and 2001.024(a)(6).
B. FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
Amy F. Cook, Executive Director, has determined that the proposed rule amendment will have no direct adverse economic impact on small businesses, micro-businesses, or rural communities. Accordingly, the preparation of an economic impact statement and a regulatory flexibility analysis, as specified in Texas Government Code § 2006.002, is not required.
C. GOVERNMENT GROWTH IMPACT STATEMENT REQUIRED BY TEXAS GOVERNMENT CODE §2001.0221.
Pursuant to Texas Government Code §2001.0221, Texas Racing Commission provides the following government growth impact statement for the proposed rule amendments. For each year of the first five years that the proposed rule amendments will be in effect, the Texas Racing Commission has determined the following:
The proposed rule amendments will not create or eliminate a government program;
Implementation of the proposed rule amendments will not require the creation of new employee positions or the elimination of existing employee positions;
implementation of the proposed rule amendments will not require an increase or decrease in future legislative appropriations to the agency;
the proposed rule amendments will not require an increase or decrease in fees paid to the agency;
the proposed rule amendments are new rules and therefore create new regulations;
the proposed rule amendments will not expand, limit, or repeal an existing regulation;
the proposed rule amendments will not increase or decrease the number of individuals subject to the rules' applicability; and
the proposed rule amendments will not positively or adversely affect the state's economy.
D. TAKINGS IMPACT ASSESSMENT REQUIRED BY TEXAS GOVERNMENT CODE §2007.043.
Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.
E. LOCAL EMPLOYMENT IMPACT STATEMENT REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(6).
Amy F. Cook, Executive Director, has determined that the proposed rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code §2001.024(A)(6).
F. COST-BENEFIT ANALYSIS REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(5).
Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to improve the positive economic impact, health, and safety of licensed horse racing in Texas by reducing the impact of unlicensed racing.
G. FISCAL NOTE ANALYSIS REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(4).
Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule amendment.
H. LEGAL REVIEW REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(3).
Amy F. Cook, Executive Director certifies that a legal review has been completed and the proposal is within agency's legal authority to adopt under §2026.001 of the Texas Occupations Code.
REQUESTS FOR PUBLIC COMMENTS
Comments on the proposal may be submitted to the Texas Racing Commission Executive Director, Amy F. Cook, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by calling the customer service phone number at (512) 833-6699. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
STATUTORY AUTHORITY. The amendments are proposed under Texas Occupations Code §2021.
CROSS REFERENCE TO STATUTE. Texas Occupations Code §2021.
§313.61.Horsemen's Bookkeeper.
(a) Designation of horsemen's bookkeeper.
(1) An association shall ensure a horsemen's bookkeeper is available to maintain the horsemen's account.
(2) The executive secretary may designate an entity unrelated to the association to serve as the horsemen's bookkeeper. To be designated as the horsemen's bookkeeper, an entity must annually submit a plan of operation acceptable to the executive secretary that demonstrates the entity's ability to perform the duties of the horsemen's bookkeeper.
(3) A designation as horsemen's bookkeeper does not constitute a license, but the executive secretary may require any individual involved with a designated entity to receive a license.
(4) If the executive secretary approves an association's request to designate an entity as horsemen's bookkeeper, the association is relieved of responsibility for providing a horsemen's bookkeeper and shall cooperate fully with the horsemen's bookkeeper designated by the executive secretary.
(b) Revocation of designation.
(1) A designation as the horsemen's bookkeeper continues in effect until revoked by the executive secretary.
(2) The executive secretary may revoke a designation as the horsemen's bookkeeper if the executive secretary determines the designated entity has:
(A) failed to comply with the Act, or the plan of operation, in a manner that indicates malfeasance as opposed to mere mistake;
(B) failed to maintain accurate and reliable records;
(C) misappropriated or mishandled funds in its possession or control;
(D) failed to correct within a reasonable time any deficiency in operations identified by the executive secretary in writing; or
(E) had its authority to act as a horsemen's bookkeeper revoked in another jurisdiction.
(3) Before revoking a designation as horsemen's bookkeeper, the executive secretary must issue a notice of proposed revocation which specifically describes the grounds for revocation. No later than 30 days after receiving a notice of proposed revocation, the entity may file a written response to the allegations with the executive secretary.
(4) The executive secretary may not revoke a designation without making adequate provision for a successor horsemen's bookkeeper.
(c) Operations of horsemen's bookkeeper.
(1) Each owner engaged in racing must open and maintain an account with the horsemen's bookkeeper. The horsemen's bookkeeper may permit other individuals to open and maintain an account with the horsemen's bookkeeper, subject to the approval of the executive secretary. The aggregate of all such accounts is the horsemen's account.
(2) The horsemen's bookkeeper shall keep accurate records of the horsemen's account and the constituent accounts. The horsemen's bookkeeper shall:
(A) promptly credit each account with all earnings, awards, and deposits;
(B) deduct or disburse all payments as directed by the owner or authorized agent;
(C) render periodic statements of each constituent account; and
(D) perform all other duties and functions as may be required by the Act or the Rules.
(d) Audit. The executive secretary may at any time inspect, review or audit the records and performance of the horsemen's bookkeeper. Not later than June 15 of each year beginning in 2026, the horsemen's bookkeeper shall submit to the Commission audited financial statements. The funds received and/or expended by the horsemen's bookkeeper from the horse industry escrow account must be included in the audit. An auditor's statement must be included as part of the annual audit attesting to the proper use of the funds received from the horse industry escrow account by the horsemen's bookkeeper.
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 January 15, 2025.
TRD-202500118
Amy F. Cook
Executive Director
Texas Racing Commission
Earliest possible date of adoption: March 2, 2025
For further information, please call: (512) 833-6699
SUBCHAPTER B. TREATMENT OF HORSES
The Texas Racing Commission (TXRC) proposes amendments to Texas Administrative Code, Title 16, Part 8, Chapter 319, §319.110 Requirements to Enter Association Grounds. The purpose of this rule amendment is to require a negative Equine Infectious Anemia (EIA) test within 180 days prior to entry into the stable gate of an association. The rule change also authorizes the Executive Director to require other tests as need arises.
A. ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL ECONOMY
There are no anticipated economic costs to persons required to comply with the proposed rule amendments. There is no effect on local economy for the first five years that the proposed rule amendments will be in effect; therefore, no local employment impact statement is required under Texas Government Code §§2001.022 and 2001.024(a)(6).
B. FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
Amy F. Cook, Executive Director, has determined that the proposed rule amendment will have no direct adverse economic impact on small businesses, micro-businesses, or rural communities. Accordingly, the preparation of an economic impact statement and a regulatory flexibility analysis, as specified in Texas Government Code § 2006.002, is not required.
C. GOVERNMENT GROWTH IMPACT STATEMENT REQUIRED BY TEXAS GOVERNMENT CODE §2001.0221.
Pursuant to Texas Government Code §2001.0221, Texas Racing Commission provides the following government growth impact statement for the proposed rule amendments. For each year of the first five years that the proposed rule amendments will be in effect, the Texas Racing Commission has determined the following:
(1) The proposed rule amendments will not create or eliminate a government program;
(2) Implementation of the proposed rule amendments will not require the creation of new employee positions or the elimination of existing employee positions;
(3) implementation of the proposed rule amendments will not require an increase or decrease in future legislative appropriations to the agency;
(4) the proposed rule amendments will not require an increase or decrease in fees paid to the agency;
(5) the proposed rule amendments are new rules and therefore create new regulations;
(6) the proposed rule amendments will not expand, limit, or repeal an existing regulation;
(7) the proposed rule amendments will not increase or decrease the number of individuals subject to the rules' applicability; and
(8) the proposed rule amendments will not positively or adversely affect the state's economy.
D. TAKINGS IMPACT ASSESSMENT REQUIRED BY TEXAS GOVERNMENT CODE §2007.043.
Amy F. Cook, Executive Director, has determined that no private real property interests are affected by the proposed rule amendments, and the proposed rule amendments do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule amendments do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.
E. LOCAL EMPLOYMENT IMPACT STATEMENT REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(6).
Amy F. Cook, Executive Director, has determined that the proposed rule amendments are not expected to have any fiscal implications for state or local government as outlined in Texas Government Code §2001.024(A)(6).
F. COST-BENEFIT ANALYSIS REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(5).
Amy F. Cook, Executive Director has determined that the proposed rule amendments are expected to improve the positive economic impact, health, and safety of licensed horse racing in Texas by reducing the impact of unlicensed racing.
G. FISCAL NOTE ANALYSIS REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(4).
Amy F. Cook, Executive Director has determined that no significant fiscal impact is associated with the proposed rule amendment.
H. LEGAL REVIEW REQUIRED BY TEXAS GOVERNMENT CODE §2001.024(A)(3).
Amy F. Cook, Executive Director certifies that a legal review has been completed and the proposal is within agency's legal authority to adopt under §2026.001 of the Texas Occupations Code.
REQUESTS FOR PUBLIC COMMENTS
Comments on the proposal may be submitted to the Texas Racing Commission Executive Director, Amy F. Cook, via webpage comment form at https://www.txrc.texas.gov/texas-rules-of-racing or through the agency customer service desk at customer.service@txrc.texas.gov, or by calling the customer service phone number at (512) 833-6699. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
STATUTORY AUTHORITY. The amendments are proposed under Texas Occupations Code §2026.001.
CROSS REFERENCE TO STATUTE. Texas Occupations Code §2026.001.
§319.110.Requirements to Enter Association Grounds.
To be admitted on to an association's grounds, a horse
must be accompanied by paperwork showing ownership, a current
certificate of veterinary inspection, including a negative Equine
Infectious Anemia (EIA) test within the 180 days prior to entrance
to an association grounds, and meet any other health inspection
requirements established by federal or state authorities. The
Executive Director of the Commission may require a certificate of
veterinary inspection or a negative EIA test within a shorter amount
of time and may require test results for other diseases based on operational
requirements. A copy of the above documents must be kept with the
horse identifier through the duration of time the horse is on association
property. [the Texas Animal Health 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 January 15, 2025.
TRD-202500119
Amy F. Cook
Executive Director
Texas Racing Commission
Earliest possible date of adoption: March 2, 2025
For further information, please call: (512) 833-6699