TITLE 16. ECONOMIC REGULATION
PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 63. FINANCIAL CRIMES INTELLIGENCE CENTER
16 TAC §§63.1 - 63.5The Texas Commission of Licensing and Regulation (Commission) adopts new rules at 16 Texas Administrative Code (TAC), Chapter 63, §§63.1 - 63.5, regarding the Financial Crimes Intelligence Center program, without changes to the proposed text as published in the November 14, 2025, issue of the Texas Register (50 TexReg 7399). These rules will not be republished.
EXPLANATION OF AND JUSTIFICATION FOR THE RULES
The rules under 16 TAC, Chapter 63, implement Texas Business and Commerce Code Chapter 607A, Payment Card Skimmers on Electronic Terminals.
The adopted rules implement Senate Bill (SB) 2371, 89th Legislature, Regular Session (2025) which requires merchants to report skimmers on electronic terminals to law enforcement and the Financial Crimes Intelligence Center (FCIC). In these adopted rules, electronic terminals are certain electronic devices, such as point-of-sale terminals, that consumers use to conduct transactions. Skimmers are devices that criminals place on or in electronic terminals and are capable of unlawfully intercepting electronic communications or data to commit fraud. The adopted rules are necessary to establish the procedures merchants must follow when reporting a skimmer to the FCIC and removing the skimmer from electronic terminals.
SECTION-BY-SECTION SUMMARY
The adopted rules create §63.1, Authority. This new rule identifies the authority under which the rules are created.
The adopted rules create §63.2, Definitions. This new rule adds definitions for "Center," "Electronic Terminal," "Merchant," and "Skimmer." The proposed rule in this section establishes what electronic terminals and skimmers are and who is considered a merchant subject to the rules.
The adopted rules create §63.3, Merchant Duties Upon Skimmer Discovery. This new rule sets out what merchants must do when they discover, or are notified, of a skimmer on an electronic device. The proposed subsection (a) lists the actions a merchant must take upon discovery of a skimmer. Proposed subsection (b) requires merchants to cooperate with law enforcement and the FCIC in the investigation of a suspected or discovered skimmer.
The adopted rules create §63.4, Unauthorized Removal of Skimmers Prohibited. This new rule controls the removal of skimmers by merchants. The proposed subsection (a) specifies the conditions under which merchants may remove skimmers from electronic terminals. Proposed subsection (b) allows merchants to remove skimmers 24 hours after reporting the skimmer if law enforcement or the FCIC has not arrived to remove the skimmer. Proposed subsection (c) sets the procedure that a merchant who is removing a skimmer must follow in order to preserve evidence.
The adopted rules create §63.5, Administrative Sanctions and Penalties. This new rule establishes that violations of Texas Business and Commerce Code, Chapter 607A, this chapter, or any other rule or order may result in penalties and/or sanctions.
PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES
The Department drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the November 14, 2025, issue of the Texas Register (50 TexReg 7399). The Department requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on December 15, 2025. The Department received comments from one interested party on the proposed rules. The public comment is summarized below.
Comment: The Texas Food and Fuel Association (TFFA) commented to request the removal of §63.5, Administrative Sanctions and Penalties because they contend that Texas Business and Commerce Code Chapter 607A does not grant the Department authority to issue administrative penalties/sanctions for violations of the statute and rules. Additionally, TFFA claims the Department is not engaged in the skimmer investigation or enforcement process.
Department Response: The Department disagrees with this comment. Texas Occupations Code §51.301 and §51.3025 authorize the imposition of administrative penalties or sanctions against any person who violates the laws or rules of a program administered by the Department. Here, Texas Business and Commerce Code §607A.002 and §607A.003 direct the Department to administer and enforce the chapter and adopt rules necessary to do so. The proposed rules, including §63.5, are necessary to administer and enforce the chapter.
Texas Occupations Code §51.351 authorizes the Department to conduct inspections or investigations as necessary to enforce the laws administered by the Department. Texas Government Code §426.051 establishes the Financial Crimes Intelligence Center (FCIC) within the Department. The FCIC is directed to maximize the ability of the Department, law enforcement agencies, and other governmental agencies to detect, prevent, and respond to criminal activities related to payment fraud by Texas Government Code §426.052.
The Department, and by extension the FCIC, has the authority to investigate potential violations of Texas Business and Commerce Code Chapter 607A or its rules, and issue administrative penalties or sanctions accordingly. The Department did not make any changes to the proposed rules in response to this comment.
COMMISSION ACTION
At its meeting on February 18, 2026, the Commission adopted the proposed rules as published in the Texas Register.
STATUTORY AUTHORITY
The adopted rules are proposed under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement that chapter and any other law establishing a program regulated by the Department. The rules are also adopted under Texas Business and Commerce Code Chapter 607A.
The statutory provisions affected by the adopted rules are those set forth in Texas Occupations Code, Chapters 51 and Texas Business and Commerce Code Chapter 607A. No other statutes, articles, or codes are affected by the adopted rules.
The legislation that enacted the statutory authority under which the rules are proposed to be adopted is Senate Bill 2371, 89th Legislature, Regular Session (2025).
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 February 23, 2026.
TRD-202600837
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Effective date: March 15, 2026
Proposal publication date: November 14, 2025
For further information, please call: (512) 463-7750
PART 8. TEXAS RACING COMMISSION
CHAPTER 309. RACETRACK LICENSES AND OPERATIONS
SUBCHAPTER
C.
DIVISION 3. FACILITIES FOR LICENSEES
16 TAC §309.282The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 309. Racetrack Licenses and Operations, Subchapter C. Horse Racetracks, Division 3. Facilities for Licensees, §309.282. Living Quarters for Licensees. Amended Chapter 309, §309.282 is adopted with a deletion of the words "barn and" of the proposed text as published in the November 28, 2025, issue of the Texas Register (50 TexReg 7667) and will be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The purpose of this rule amendment enables the standards to be updated over time without additional rule changes and aligns our rules with the expectations of the SFMO including National Fire Protection Act 150 which specifically addresses the horse industry.
PUBLIC COMMENTS
The 30-day comment period ended on December 28, 2025. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the November 28, 2025, issue of the Texas Register (50 TexReg 7667). During this period, the Agency received comments that requested an edit to section (d) requesting that "barn" be removed so that a person could stay close to an animal that was in medical distress. That is the only change to the version published in the Texas Register.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the October 8, 2025, meeting and the Rules Committee meeting, held on November 13, 2025.
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 amendment is adopted under Texas Occupations Code §2026.001.
The statutory provisions affected by the adopted rule amendment are those set forth in Texas Occupations Code §2026.001.
§309.282.
(a) If an association permits licensees to reside on association grounds, the association shall provide living quarters for the licensees.
(b) The living quarters must be in a permanent structure and be adequate to house the anticipated number of licensees who will be living on association grounds. The association must provide equivalent facilities for men and women licensees.
(c) The living quarters must be in compliance with the Texas State Fire Marshall’s Office (SFMO) codes using the appropriate National Fire Protection Association (NFPA) standards and equipped with:
(1) windows that open;
(2) heating;
(3) hot and cold water; and
(4) showers, toilets, and sinks.
(d) An association may not permit an individual to sleep in the stable areas, including tack room areas, if the occupancy creates a violation of the NFPA standards, specifically NFPA 150 covering "Horse Barns."
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 February 19, 2026.
TRD-202600806
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 11, 2026
Proposal publication date: November 28, 2025
For further information, please call: (512) 833-6699
CHAPTER 311. OTHER LICENSES
SUBCHAPTER
B.
The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 311. Other Licenses, Subchapter B. Specific Licenses, §311.104. Trainers. Amended Chapter 311, §311.104 is adopted without changes to the proposed text as published in the November 28, 2025, issue of the Texas Register (50 TexReg 7670) and will not be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The purpose of this rule amendment removes obsolete references to greyhounds and racing judges where appropriate; deletes a section allowing trainers without a license to enter a horse under some circumstances; and makes conforming edits throughout for consistency.
PUBLIC COMMENTS
The 30-day comment period ended on December 28, 2025. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the November 28, 2025, issue of the Texas Register (50 TexReg 7670). During this period, the Agency received no comments regarding this proposed rule change.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the October 8, 2025, meeting and the Rules Committee meeting, held on August 21, 2025.
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
David Holmes, Interim Executive Director certifies that a legal review has been completed and the proposal is within agency's legal authority to adopt under §§2021.002, 2023.004, 2025.001, 2025.251, and 2025.252 of the Texas Occupations Code.
The amendment is adopted under Texas Occupations Code §2025.001, which requires the Commission to adopt rules relating to license applications and the financial responsibility, moral character, and ability of applicants; §2025.252, which authorizes the Commission to adopt categories of occupational licenses and specify qualifications by rule; and §2023.004, which requires the Commission to adopt rules for conducting horse racing involving wagering. The amendments affect Texas Occupations Code §§2025.001, 2025.251-2025.254, and 2025.252.
The amendment is adopted under Texas Occupations Code §§2021.002, 2023.004, 2025.001, 2025.251, and 2025.252.
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 February 19, 2026.
TRD-202600807
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 11, 2026
Proposal publication date: November 28, 2025
For further information, please call: (512) 833-6699
16 TAC §311.109
The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 311, Subchapter B. Specific Licenses, §311.109. Mutuel Employees. Amended Chapter 311, §311.109 is adopted with changes to the proposed text as published in the November 28, 2025, issue of the Texas Register (50 TexReg 7672) and will be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The purpose of this rule amendment clarifies the licensure requirements for mutuel department personnel by adding a requirement that applicants complete a commission-approved Background Disclosure Form.
Purpose and Background: The amendment is intended to support the integrity of pari- mutuel operations by ensuring that applicants for a mutuel license provide standardized background information for review by the executive director or designee.
PUBLIC COMMENTS
The 30-day comment period ended on December 28, 2025. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the November 28, 2025, issue of the Texas Register (50 TexReg 7672). During this period, the Agency received no comments regarding this proposed rule change.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the October 8, 2025, meeting and the Rules Committee meeting, held on August 21, 2025.
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
David Holmes, Interim Executive Director certifies that a legal review has been completed and the proposal is within agency's legal authority to adopt under §§2021.002, 2023.002, 2025.253- 2025.259 of the Texas Occupations Code.
The amendment is adopted under the Texas Occupations Code, Title 13, Subtitle A-1 (Texas Racing Act), §§2023.004, 2025.001, and 2025.251. Section 2023.004 requires the commission to adopt rules for conducting racing and to administer the subtitle. Section 2025.001 directs the commission to adopt rules relating to license applications and the qualifications of applicants. Section 2025.251 requires an occupational license for a person working in an occupation for which commission rules require a license.
The amendment is adopted under Texas Occupations Code §§2021.002, 2023.002, 2025.253- 2025.259 (related to purpose, general rulemaking and licensing procedures).
§311.109.
(a) To be licensed as a mutuel clerk or other employee of the mutuel department of an association, an individual must be at least 16 years old.
(b) In addition to the requirements of §311.3, applicants for a mutuel license must complete a Background Disclosure Form approved by the executive director.
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 February 23, 2026.
TRD-202600848
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 15, 2026
Proposal publication date: November 28, 2025
For further information, please call: (512) 833-6699
CHAPTER 321. PARI-MUTUEL WAGERING
SUBCHAPTER
A.
DIVISION 3. MUTUEL TICKETS AND VOUCHERS
16 TAC §321.37The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 321. Pari-mutuel Wagering, Subchapter A. Mutuel Operations, Division 3. Mutuel Tickets and Vouchers, §321.37. Cashed Tickets and Vouchers. Amended Chapter 321, §321.37 is adopted without changes to the proposed text as published in the January 2, 2026, issue of the Texas Register (51 TexReg 18) and will not be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The purpose of this rule amendment modernizes recordkeeping requirements by clarifying secure procedures for digitally stored files associated with cashed tickets, vouchers, and outstanding ticket and voucher files. The Commission's existing rules reference physical storage of tickets and vouchers. As wagering systems and audit records move to digital formats, the rule text is updated to require secure procedures for accessing and maintaining digitally stored files and to clarify access limitations. These changes support integrity of pari-mutuel wagering operations and modern auditing practices.
PUBLIC COMMENTS
The 30-day comment period ended on February 1, 2026. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the January 2, 2026, issue of the Texas Register (51 TexReg 18). During this period, the Agency received no comments regarding this proposed rule change.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the December 10, 2025, meeting and the Rules Committee meeting, held on March 27, 2025.
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 amendments are adopted under Texas Occupations Code §2023.001, which authorizes the Commission to license and regulate all aspects of horse and greyhound racing in this state, and §2023.004, which requires the Commission to adopt rules for conducting racing that involves wagering and for administering the Texas Racing Act.
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 February 19, 2026.
TRD-202600808
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 11, 2026
Proposal publication date: January 2, 2026
For further information, please call: (512) 833-6699
16 TAC §321.39
The Texas Racing Commission (TXRC) adopts Texas Administrative Code, Title 16, Part 8, Chapter 321. Pari-mutuel Wagering, Subchapter A. Mutuel Operations, Division 3. Mutuel Tickets and Vouchers, §321.39. Altering Cashed Tickets and Cashed Vouchers. Amended Chapter 321, §321.39 is adopted without changes to the proposed text as published in the January 2, 2026, issue of the Texas Register (51 TexReg 19) and will not be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The amendment is adopted in conjunction with amendments to §321.37 that modernize requirements for secure handling and access to digitally stored files of cashed tickets and vouchers, rendering physical alteration unnecessary for digitally stored files.
Section 321.39 required physical alteration of cashed or refunded mutuel tickets and cashed vouchers to indicate their status without destroying identity.
PUBLIC COMMENTS
The 30-day comment period ended on February 1, 2026. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the January 2, 2026, issue of the Texas Register (51 TexReg 19). During this period, the Agency received no comments regarding this proposed rule change.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the December 10, 2025, meeting and the Rules Committee meeting, held on March 27, 2025.
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 amendment is adopted under Texas Occupations Code §2023.001, which authorizes the Commission to license and regulate all aspects of horse and greyhound racing in this state, and §2023.004, which requires the Commission to adopt rules for conducting racing that involves wagering and for administering the Texas Racing Act.
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 February 19, 2026.
TRD-202600809
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 11, 2026
Proposal publication date: January 2, 2026
For further information, please call: (512) 833-6699
SUBCHAPTER
B.
The Texas Racing Commission (TXRC) adopts amendments to 16 Texas Administrative Code §321.101, relating to Totalisator Requirements and Operating Environment, in Chapter 321, Pari-Mutuel Wagering, Subchapter B. Totalisator Requirements and Operating Environments. Amended Chapter 321, §321.101 is adopted without changes to the proposed text as published in the January 2, 2026, issue of the Texas Register (51 TexReg 20) and will not be republished.
EXPLANATION AND JUSTIFICATION FOR THE AMENDMENT
The amendments update the incorporated technical standards for totalisator systems and remove outdated address language.
Section 321.101 requires each association to conduct wagering using a Commission-approved pari-mutuel system that meets specified technical standards. The proposal updates the reference to the Association of Racing Commissioners International (ARCI) Totalisator Technical Standards to the version amended in December 2020, and prospectively to subsequent amendments, and removes obsolete mailing address references for where standards are available. These changes align the rule with current industry standards and Commission practice.
PUBLIC COMMENTS
The 30-day comment period ended on February 1, 2026. TXRC drafted and distributed the proposed rule to persons both internal and external to the agency. The proposed rule was published in the January 2, 2026, issue of the Texas Register (51 TexReg 20). During this period, the Agency received no comments regarding this proposed rule change.
COMMISSION ACTION
At its meeting on February 11, 2026, the Commission adopted the proposed rule as recommended by the Commission at the December 10, 2025, meeting and the Rules Committee meeting, held on March 27, 2025.
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
David Holmes, Interim Executive Director certifies that a legal review has been completed and the proposal is within agency's legal authority to adopt under §§2023.001 and 2023.004 of the Texas Occupations Code.
The amendments are adopted under Texas Occupations Code §2023.001, which authorizes the Commission to license and regulate all aspects of horse and greyhound racing in this state, and §2023.004, which requires the Commission to adopt rules for conducting racing that involves wagering and for administering the Texas Racing Act.
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 February 19, 2026.
TRD-202600810
David Holmes
Interim Executive Director
Texas Racing Commission
Effective date: March 11, 2026
Proposal publication date: January 2, 2026
For further information, please call: (512) 833-6699