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          AN ACT
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        relating to establishing the Texas Derbies. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  The Texas Racing Act (Article 179e, Vernon's  | 
      
      
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        Texas Civil Statutes) is amended by adding Article 9A to read as  | 
      
      
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        follows: | 
      
      
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        ARTICLE 9A.  TEXAS DERBIES | 
      
      
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               Sec. 9A.001.  TEXAS DERBIES.  (a)  The commission shall  | 
      
      
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        establish as Texas Derbies the following annual stakes races: | 
      
      
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                     (1)  one race open to three-year-old Thoroughbreds; | 
      
      
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                     (2)  one race open only to three-year-old Texas-bred  | 
      
      
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        Thoroughbreds; | 
      
      
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                     (3)  one race open to three-year-old quarter horses;  | 
      
      
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        and | 
      
      
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                     (4)  one race open only to three-year-old Texas-bred  | 
      
      
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        quarter horses. | 
      
      
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               (b)  For a Texas Derby open only to Texas-bred horses, the  | 
      
      
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        respective official state breed registries and the official  | 
      
      
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        horsemen's organization shall develop: | 
      
      
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                     (1)  the race conditions and entrance qualifications;  | 
      
      
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        and | 
      
      
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                     (2)  the preference system used to determine the race  | 
      
      
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        finalists. | 
      
      
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               (c)  Each class 1 racetrack that is awarded a Texas Derby  | 
      
      
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        that is not limited to Texas-bred horses shall develop for the  | 
      
      
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        derby: | 
      
      
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                     (1)  the race conditions and entrance qualifications;  | 
      
      
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        and | 
      
      
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                     (2)  the preference system used to determine the race  | 
      
      
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        finalists. | 
      
      
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               (d)  The race conditions and qualifications and preference  | 
      
      
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        systems developed for the Texas Derbies under Subsection (b) or (c)  | 
      
      
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        of this section are subject to review and approval by the executive  | 
      
      
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        secretary. | 
      
      
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               (e)  The commission shall set the date of and the location  | 
      
      
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        for each Texas Derby.  Each Texas Derby must be held annually at the  | 
      
      
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        class 1 racetrack determined by the commission.  The commission  | 
      
      
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        shall determine the location of each Texas Derby in consultation  | 
      
      
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        with: | 
      
      
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                     (1)  each class 1 racetrack; | 
      
      
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                     (2)  the official state breed registries; and | 
      
      
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                     (3)  the official horsemen's organization. | 
      
      
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               (f)  The commission may sell the right to name a Texas Derby.   | 
      
      
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        The commission shall deposit the proceeds from the sale of the right  | 
      
      
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        to name a Texas Derby into the Texas Derby escrow purse fund  | 
      
      
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        established under Section 9A.003 of this article. | 
      
      
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               (g)  The date of the initial Texas Derby may not be earlier  | 
      
      
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        than January 1, 2015.  This subsection expires January 1, 2016. | 
      
      
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               Sec. 9A.002.  INSPECTION AND EXAMINATION OF HORSE.  (a)  For  | 
      
      
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        each Texas Derby, the commission shall appoint a state veterinarian  | 
      
      
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        to conduct  a prerace examination of each horse entered in the race  | 
      
      
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        to determine whether the horse is healthy and meets standards set by  | 
      
      
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        commission rule for racing. | 
      
      
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               (b)  The examination may include any procedure that the state  | 
      
      
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        veterinarian considers necessary to make the determination  | 
      
      
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        required by Subsection (a) of this section. | 
      
      
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               (c)  The examination may be conducted at any time before the  | 
      
      
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        race. | 
      
      
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               Sec. 9A.003.  TEXAS DERBY ESCROW PURSE FUND.  (a)  The  | 
      
      
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        commission shall establish a Texas Derby escrow purse fund. | 
      
      
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               (b)  The commission shall by rule establish a schedule of  | 
      
      
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        entrance fees for participants in each Texas Derby.  A portion  | 
      
      
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        determined by the commission of each entrance fee shall be  | 
      
      
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        deposited in the Texas Derby escrow purse fund. | 
      
      
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               (c)  Notwithstanding Section 3.09 of this Act or any other  | 
      
      
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        law, the commission by rule shall determine a portion of the fees,  | 
      
      
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        charges, and other revenue collected under this Act to be deposited  | 
      
      
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        to the credit of the Texas Derby escrow purse fund as reasonably  | 
      
      
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        necessary to maintain competitive purses for each Texas Derby. | 
      
      
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               (d)  The commission by rule may assess under this Act  | 
      
      
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        additional charges and fees, including gate fees, to supplement the  | 
      
      
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        funds otherwise deposited in the Texas Derby escrow purse fund  | 
      
      
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        under this section. | 
      
      
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               (e)  The commission may not: | 
      
      
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                     (1)  use funds from the accredited Texas-bred program  | 
      
      
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        under Article 9 of this Act or the escrowed purse account under  | 
      
      
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        Section 6.091(e) of this Act to fund the Texas Derby escrow purse  | 
      
      
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        fund; or | 
      
      
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                     (2)  order a breed registry to fund a purse for a Texas  | 
      
      
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        Derby, make contributions to the Texas Derby escrow purse fund, or  | 
      
      
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        pay the expenses of a Texas Derby race. | 
      
      
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               (f)  Other than as provided by this section, no other state  | 
      
      
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        revenue may be deposited to the credit of the Texas Derby escrow  | 
      
      
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        purse fund. | 
      
      
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               SECTION 2.  As soon as practicable after the effective date  | 
      
      
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        of this Act, the Texas Racing Commission shall adopt the rules  | 
      
      
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        necessary to implement Section 9A.003, Texas Racing Act (Article  | 
      
      
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        179e, Vernon's Texas Civil Statutes), as added by this Act. | 
      
      
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               SECTION 3.  This Act takes effect September 1, 2011. | 
      
      
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        ______________________________ | 
        ______________________________ | 
      
      
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           President of the Senate | 
        Speaker of the House      | 
      
      
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               I certify that H.B. No. 254 was passed by the House on May 13,  | 
      
      
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        2011, by the following vote:  Yeas 101, Nays 34, 2 present, not  | 
      
      
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        voting; and that the House concurred in Senate amendments to H.B.  | 
      
      
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        No. 254 on May 24, 2011, by the following vote:  Yeas 118, Nays 23,  | 
      
      
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        2 present, not voting. | 
      
      
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        ______________________________ | 
      
      
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        Chief Clerk of the House    | 
      
      
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               I certify that H.B. No. 254 was passed by the Senate, with  | 
      
      
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        amendments, on May 21, 2011, by the following vote:  Yeas 29, Nays  | 
      
      
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        2. | 
      
      
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        ______________________________ | 
      
      
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        Secretary of the Senate    | 
      
      
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        APPROVED: __________________ | 
      
      
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                        Date        | 
      
      
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                 __________________ | 
      
      
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                      Governor        |