TITLE 16. ECONOMIC REGULATION

PART 8. TEXAS RACING COMMISSION

CHAPTER 307. PROCEEDINGS BEFORE THE COMMISSION

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §307.8

The Texas Racing Commission adopts new 16 TAC §307.8, relating to Negotiated Rulemaking and Alternative Dispute Resolution. The rule is adopted without changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1492) and will not be republished.

The new rule encourages the use of both negotiated rulemaking and alternative dispute resolution where practical and appropriate.

The Commission received no comments in response to publication of the rule proposal.

The new rule is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §2.25, which requires the Commission to implement a policy to encourage the use of negotiated rulemaking and alternative dispute resolution.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301877

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


CHAPTER 309. RACETRACK LICENSES AND OPERATIONS

SUBCHAPTER A. RACETRACK LICENSES

DIVISION 2. ACTIVE AND INACTIVE RACETRACK LICENSES

16 TAC §309.53

The Texas Racing Commission adopts new 16 TAC §309.53. The section relates to the Commission's five-year review of the ownership and management of active racetrack licenses under §6.06(k) of the Texas Racing Act. The rule is adopted with changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1493).

The new rule establishes the criteria used in scheduling the review of each racetrack license as well as the materials that will be used in preparing an executive secretary's report for the Commission's consideration. As part of the review, the rule also requires a background check on 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. The rule also requires each association undergoing the review to provide an initial review fee of $5,000 to cover the Commission's costs and provides for a reconciliation of costs upon completion of the review.

The Commission received one comment in response to publication of the rule. The commenter questioned whether the Commission has the statutory authority to adjust the schedule of ownership and management reviews so that the interval between reviews is shorter or longer than five years. In response, the Commission agreed to modify the rule to remove the two questioned provisions.

The new rule is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act, and §6.06(k), which requires the Commission to review the ownership and management of active licenses every five years.

§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 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 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 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.

(c) Commission review.

(1) The executive 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;

(C) the results of any inspections or investigations conducted by the Commission as part of the review; and

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

(2) The executive 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.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301878

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


SUBCHAPTER D. GREYHOUND RACETRACKS

DIVISION 2. OPERATIONS

16 TAC §309.359

The Texas Racing Commission adopts an amendment to 16 TAC §309.359. The section relates to the prohibition of live lures in the training of greyhounds. The amendment is adopted without changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1494) and will not be republished.

The amendment prohibits the use of live or dead animals or fowl for training or racing purposes on association grounds. The rule creates an exception that allows the use of commercially available hides or pelts.

The Commission received no comments in response to publication of the proposal.

The amendment is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301879

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


CHAPTER 311. OTHER LICENSES

The Texas Racing Commission adopts amendments to 16 TAC §§311.6, 311.102, and 311.104; and new §311.217. These sections relate to: the denial, suspension, and revocation of occupational licenses; the qualifications and duties of greyhound owners; the qualifications and duties of trainers; and prohibited methods of training greyhounds. The amendments to §311.102 and §311.104 are adopted with changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1495). The amendment to §311.6 and new §311.217 are adopted without changes to the proposed text as published and will not be republished. The changes to §311.102 and §311.104 are to correct minor typographical errors in the proposed text.

The amendment to §311.6 clarifies that activities or practices that are detrimental to the best interest of racing animals are also a detrimental practice for the purpose of denying, suspending, or revoking an occupational license.

The amendments to §311.102 and §311.104 provide that a greyhound owner or trainer may not enter a greyhound into a race if the owner or trainer knows, or reasonably should know, that the greyhound was trained using a live or dead animal or fowl as a lure, whether in this state or out of this state. The prohibition does apply to the use of a commercially available lure that is made from cured animal hides or pelts.

New §311.217 provides that a person may not use a live or dead animal or fowl to train a greyhound, or send a greyhound to a facility, whether located in this state or out of this state, for the purpose of being trained using a live or dead animal or fowl. The rule also defines such activities and practices as a detrimental practice. The rule does not prevent the use of a commercially available lure that is made from cured animal hides or pelts.

The Commission received no comments in response to publication of the proposal.

SUBCHAPTER A. LICENSING PROVISIONS

DIVISION 1. OCCUPATIONAL LICENSES

16 TAC §311.6

The amendment is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301880

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


SUBCHAPTER B. SPECIFIC LICENSES

16 TAC §311.102, §311.104

The amendments are adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act.

§311.102.Greyhound Owners.

(a) General Provisions.

(1) Except as otherwise provided by this subsection, the owner of a greyhound, as listed on the animal's registration paper, must obtain an owner's license from the Commission. A person may not be licensed as an owner if the person is not the owner of record of a properly registered greyhound that the person intends to race in Texas. The owner must be licensed one hour prior to the post time of the first race of the day in which the owner intends to race the animal.

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

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

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

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

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

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

(A) designate a representative; or

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

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

(b) Change of Ownership.

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

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

(c) Emergency License.

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

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

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

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

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

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

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

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

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

(1) the owner knows or can reasonably be expected to know that the greyhound was trained using a live or dead animal or fowl as a lure in this state or out of this state. This paragraph does not apply to the use of a training lure that is made from cured animal hides or pelts and is commercially available to the public;

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

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

§311.104.Trainers.

(a) Licensing.

(1) Except as otherwise provided by this subsection, a trainer must obtain a trainer's license before the trainer may enter a horse or greyhound in a race. A trainer may enter a horse or greyhound in a stakes race without first obtaining a license, but must obtain a license before the horse or greyhound may start in the stakes race. Except as otherwise provided by this section, to be licensed by the Commission as a trainer, a person must:

(A) be at least 18 years old;

(B) submit a minimum of two written statements from licensed trainers, veterinarians, owners, or kennel owners, attesting to the applicant's character and qualifications;

(C) interview with the board of stewards or judges;

(D) satisfactorily complete a written examination prescribed by the Commission; and

(E) satisfactorily complete a practical examination prescribed by the Commission and administered by the stewards or racing judges or designee of the stewards or racing judges.

(2) Examinations.

(A) A $50 non-refundable testing fee is assessed for administering the written and practical examinations. The fee is due and payable at the time the written examination is scheduled. If the applicant fails the written or practical examination, the applicant will be allowed to retake it once without an additional fee. The applicant must pay a $50 non-refundable testing fee to schedule an examination after each retest. A minimum of 48 hours advance notice is required to reschedule an examination appointment without loss of the testing fee. An applicant who fails to timely reschedule an examination appointment must pay a new testing fee to reschedule the appointment. A steward or judge may waive the additional fee if, in the opinion of the steward or judge, the applicant shows good cause for the failure to timely reschedule an examination appointment.

(B) The standard for passing the written examination must be printed on the examination. An applicant who fails the written examination may not take the written examination again before the 90th day after the applicant failed the written examination. An applicant who fails the written examination for a second or any subsequent time may not reschedule the written examination for 180 calendar days after the last failure and the applicant must pay an additional $50 non-refundable testing fee. After successful completion of the written exam an applicant has 365 calendar days to successfully complete the practical exam.

(C) An applicant who fails the practical examination may not reschedule the practical examination again before the 180th day after the applicant failed the practical examination. An applicant who fails the practical examination for a second time may not reschedule another practical examination for 365 calendar days after the day the applicant failed the second practical examination and the applicant must pay an additional $50 non-refundable testing fee.

(D) The Commission may waive the requirement of a written and/or practical examination for a person who has a current license issued by another pari-mutuel racing jurisdiction. If a person for whom the examination requirement was waived demonstrates an inability to adequately perform the duties of a trainer, through excessive injuries, rulings, or other behavior, the stewards or racing judges may require the person to take the written and/or practical examination. If such a person fails the examination, the stewards or racing judges shall suspend the person's license for 90 days with reinstatement contingent upon passing the written and/or practical examination.

(3) A trainer must use the trainer's legal name to be licensed as a trainer. A trainer who is also an owner may use a stable name or kennel name in the capacity of owner.

(4) To be licensed as an assistant trainer, a person must qualify in all respects for a trainer's license and be in the employ of a licensed trainer. An assistant trainer's license carries all the privileges and responsibilities of a trainer's license.

(b) Absolute Insurer.

(1) A trainer shall ensure the health and safety of each horse or greyhound that is in the care and custody of the trainer.

(2) A trainer shall ensure that a horse or greyhound that runs a race while in the care and custody of the trainer or kennel owner is free from all prohibited drugs, chemicals, or other substances.

(3) A trainer who allows a horse or greyhound to be brought to the paddock or lockout kennel warrants that the horse or greyhound:

(A) is qualified for the race;

(B) is ready to run;

(C) is in a physical condition to exert its best efforts; and

(D) is entered with the intent to win.

(c) Health Reports.

(1) A trainer shall immediately notify the Commission veterinarian or designee of unusual symptoms in a horse or greyhound that is in the trainer's care and custody.

(2) Not later than one hour after finding a dead horse or greyhound on association grounds, a trainer shall notify the stewards or racing judges and the Commission veterinarian, or their designee, of the death. In the absence of regulatory personnel, the trainer shall notify security personnel on the association grounds.

(d) Owner Suspended. A trainer may not retain a horse or greyhound in the trainer's care and custody if the Commission has suspended or revoked the license of the owner of the horse or greyhound.

(e) An individual who is licensed to work for a trainer is not permitted in the stable or kennel area on association grounds unless the licensee is employed by and doing work for a trainer on the association grounds. An individual in the stable or kennel area on association grounds who is not in the employ of and doing work for a trainer may be ejected from the stable or kennel area on the association grounds.

(f) Restrictions on Racing. A trainer may not enter a race animal or cause a race animal to be entered in a race at a racetrack if:

(1) the trainer knows or can reasonably be expected to know that the greyhound was trained using a live or dead animal or fowl as a lure in this state or out of this state. This paragraph does not apply to the use of a training lure that is made from cured animal hides or pelts and is commercially available to the public;

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

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

(g) Trainer Employees.

(1) A trainer may not employ an individual who is less than 16 years of age to work for the trainer on an association's grounds.

(2) A trainer may not employ a jockey to prevent the jockey from riding in a race.

(h) Trainer Absent. If a trainer must be absent because of illness or any other cause, the trainer shall appoint another licensed trainer to fulfill his or her duties, and promptly report the appointment to the stewards or racing judges for approval. The absent trainer and substitute trainer have joint responsibility for the condition of the race animals normally trained by the absent trainer.

(i) Suspended, Revoked or Ineligible Horse Trainers.

(1) A person may not assume the responsibilities of a horse trainer who is ineligible to be issued a license or whose license is suspended or revoked if the person is related to the trainer within the first degree of consanguinity or affinity.

(2) A person who assumes the care, custody, or control of the horses of a suspended, revoked or ineligible horse trainer may not:

(A) receive any compensation regarding those horses from the suspended, revoked or ineligible trainer;

(B) pay any compensation regarding those horses to the suspended, revoked or ineligible trainer;

(C) solicit or accept a loan of anything of value from the suspended, revoked or ineligible trainer; or

(D) use the farm or individual name of the suspended, revoked or ineligible trainer when billing customers.

(3) A person who assumes the care, custody, or control of the horses of a suspended, revoked or ineligible trainer is directly responsible for all financial matters relating to the care, custody, or control of the horses.

(4) On request by the Commission, a suspended, revoked or ineligible trainer or a person who assumes the care, custody, or control of the horses of a suspended, revoked or ineligible trainer shall permit the Commission to examine all financial or business records to ensure compliance with this section.

(j) Reporting to Clocker. When taking a horse onto a racetrack to work, a horse trainer or an assistant of the trainer shall report the horse's name and the distance to be worked to the morning clocker or an assistant clocker or shall instruct the jockey or exercise rider to transmit the information to the clocker or assistant clocker.

(k) Other Responsibilities. A trainer is responsible for:

(1) the condition and contents of stalls/kennels, tack rooms, feed rooms, and other areas which have been assigned by the association;

(2) maintaining the assigned stable/kennel area in a clean, neat and sanitary condition at all times;

(3) ensuring that fire prevention rules are strictly observed in the assigned stable/kennel area;

(4) training all animals owned wholly or in part by the trainer that are participating at the race meeting;

(5) ensuring that, at the time of arrival at a licensed racetrack, each animal in the trainer's care is accompanied by a valid health certificate/certificate of veterinary inspection;

(6) using the services of those veterinarians licensed by the Commission to attend animals that are on association grounds;

(7) promptly notifying the official veterinarian of any reportable disease and any unusual incidence of a communicable illness in any animal in the trainer's charge;

(8) immediately reporting to the stewards/judges and the official veterinarian if the trainer knows, or has cause to believe, that an animal in the trainer's custody, care or control has received any prohibited drugs or medication;

(9) maintaining a knowledge of the medication record and status of all animals in the trainer's care;

(10) ensuring the fitness of an animal to perform creditably at the distance entered;

(11) ensuring that the trainer's horse is properly shod, bandaged and equipped; and

(12) reporting the correct sex of the horses in his/her care to the Commission veterinarian and the horse identifier.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301881

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


SUBCHAPTER C. RESPONSIBILITIES OF INDIVIDUALS

16 TAC §311.217

The new rule is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301882

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


CHAPTER 315. OFFICIALS AND RULES FOR GREYHOUND RACING

SUBCHAPTER B. ENTRIES AND PRE-RACE PROCEDURES

16 TAC §315.112

The Texas Racing Commission adopts new 16 TAC §315.112, relating to the eligibility of greyhounds to participate in racing. The rule is adopted with changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1496). The rule is adopted with changes to correct a misspelling in the section title.

The new rule permits a board of racing judges to ban a greyhound for life from being kenneled or participating in racing on association grounds if it finds that the greyhound has been trained at any facility that has engaged in any detrimental practice related to the training of greyhounds using a live or dead animal or fowl.

The Commission received no comments in response to publication of the rule proposal.

The new rule is adopted under Texas Revised Civil Statutes Annotated, Article 179e, §3.02, which authorizes the Commission to adopt rules to administer the Act.

§315.112.Ineligibility Due to Improper Greyhound Training.

(a) The board of racing judges may ban a greyhound for life from being kenneled or participating in racing on association grounds if it finds that the greyhound has been trained at any facility that has engaged in any detrimental practice related to the training of greyhounds using a live or dead animal or fowl.

(b) This section does not apply to the use of a training lure that is made from cured animal hides or pelts and is commercially available to the public.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 10, 2013.

TRD-201301883

Mark Fenner

General Counsel

Texas Racing Commission

Effective date: May 30, 2013

Proposal publication date: March 8, 2013

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


PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

SUBCHAPTER D. LOTTERY GAME RULES

16 TAC §401.307

The Texas Lottery Commission (Commission) adopts amendments to 16 TAC §401.307, concerning "Pick 3" On-Line Game Rule. The amendments are adopted without changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1497).

The purpose of the amendments is to increase the frequency of drawings from two (2) per day to four (4) per day, increase the number of consecutive drawing plays that a player may purchase from twelve (12) to twenty-four (24), delete obsolete language, and correct a spelling error. The executive director shall determine the date on which drawing frequency will increase pursuant to this rule amendment, but that date shall be no later than October 13, 2013.

A public comment hearing was held on Wednesday, March 20, 2013 at 10:00 a.m., at 611 E. 6th Street, Austin, Texas 78701. No members of the public were present at the hearing. The Commission received one written comment from an individual during the public comment period. The individual who submitted the comment expressed his opposition to the amendment increasing the frequency of drawings from two (2) per day to four (4) per day. The individual stated that increasing the frequency of drawings per day will result in a decrease in the amount of revenue collected by the state. Instead of increasing the frequency of drawings per day, the individual suggested that drawings be held on Sundays. The Commission declines to alter the amendments as requested because the Commission's financial analysis illustrates that increasing the frequency of drawings per day will result in an increase in revenue for the Foundation School Fund. For example, when the Commission increased the frequency of drawings per day for the "Pick 3" game in 2001, a sales increase was realized. This sales increase resulted in increased revenue to the State of Texas.

The amendments are adopted under §466.015 of the Texas Government Code, which authorizes the Commission to adopt rules governing the operation of the lottery, and under §467.102 of the Texas Government Code, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This adoption implements Chapter 466 of the Texas Government Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 8, 2013.

TRD-201301822

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: May 28, 2013

Proposal publication date: March 8, 2013

For further information, please call: (512) 344-5012


16 TAC §401.316

The Texas Lottery Commission (Commission) adopts amendments to 16 TAC §401.316, concerning "Daily 4" On-Line Game Rule. The amendments are adopted without changes to the proposed text as published in the March 8, 2013, issue of the Texas Register (38 TexReg 1498).

The purpose of the amendments is to increase the frequency of drawings from two (2) per day to four (4) per day and to increase the number of consecutive drawing plays that a player may purchase from twelve (12) to twenty-four (24). The executive director shall determine the date on which drawing frequency will increase pursuant to this rule amendment, but that date shall be no later than October 13, 2013.

A public comment hearing was held on Wednesday, March 20, 2013 at 10:00 a.m., at 611 E. 6th Street, Austin, Texas 78701. No members of the public were present at the hearing. The Commission received one written comment from an individual during the public comment period. The individual who submitted the comment expressed his opposition to the amendment increasing the frequency of drawings from two (2) per day to four (4) per day. The individual stated that increasing the frequency of drawings per day will result in a decrease in the amount of revenue collected by the state. Instead of increasing the frequency of drawings per day, the individual suggested that drawings be held on Sundays. The Commission declines to alter the amendments as requested because the Commission's financial analysis illustrates that increasing the frequency of drawings per day will result in an increase in revenue for the Foundation School Fund. For example, when the Commission increased the frequency of drawings per day for the "Pick 3" game in 2001, a sales increase was realized. This sales increase resulted in increased revenue to the State of Texas.

The amendments are adopted under §466.015 of the Texas Government Code, which authorizes the Commission to adopt rules governing the operation of the lottery, and under §467.102 of the Texas Government Code, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This adoption implements Chapter 466 of the Texas Government Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 8, 2013.

TRD-201301823

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: May 28, 2013

Proposal publication date: March 8, 2013

For further information, please call: (512) 344-5012