By:  Harris of Dallas                                 S.B. No. 1347
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the regulation of pari-mutuel racing.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Subsection (a), Section 3.07, Texas Racing Act
    1-4  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
    1-5  as follows:
    1-6        (a)  Each horse race or greyhound race meeting shall be
    1-7  supervised by three stewards employed <approved> by the commission
    1-8  for horse racing or by three judges employed <approved> by the
    1-9  commission for greyhound racing.  <The commission shall employ one
   1-10  of the stewards who supervises a horse race meeting who shall be
   1-11  the presiding steward.  The other stewards at the race meeting
   1-12  shall be compensated by the association.  The commission shall
   1-13  employ one of the judges who supervises a greyhound race meeting
   1-14  who shall be the presiding judge; the other judges at such a race
   1-15  meeting shall be compensated by the association.>  For each race
   1-16  meeting, the commission shall employ <appoint> at least one state
   1-17  veterinarian who shall be compensated by the commission.  The
   1-18  commission by rule shall determine the amount of compensation for
   1-19  stewards, judges, and state veterinarians who are employed
   1-20  <required to be compensated> by the commission.  The commission may
   1-21  impose a fee on an association to offset the costs of compensating
   1-22  the <racetrack> stewards, judges, and state veterinarians for that
   1-23  association.  The amount of the fee for the compensation of
    2-1  stewards, judges, and state veterinarians must be reasonable
    2-2  according to industry standards for the compensation of those
    2-3  officials at other racetracks and may not exceed the actual cost to
    2-4  the commission for compensating the officials.  All other racetrack
    2-5  officials shall be appointed by the association, with the approval
    2-6  of the commission.  Compensation for those officials not
    2-7  compensated by the commission shall be determined by the
    2-8  association.
    2-9        SECTION 2.  Section 3.08, Texas Racing Act (Article 179e,
   2-10  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-11        Sec. 3.08.  <APPEAL FROM> DECISION OF STEWARDS OR JUDGES.
   2-12  (a)  Except as provided by Subsection (b) of this section, a final
   2-13  decision of the stewards or judges may be appealed to the
   2-14  commission in the manner provided for a contested case under the
   2-15  Administrative Procedure and Texas Register Act (Article 6252-13a,
   2-16  Vernon's Texas Civil Statutes).  The burden of proof is on the
   2-17  person making the appeal to present evidence sufficient to overturn
   2-18  or modify the stewards' or judges' decision.
   2-19        (b)  A  <In determining the distribution to holders of
   2-20  winning tickets in a pari-mutuel pool, a> decision of the stewards
   2-21  or judges on a disqualification for a foul in a race or on a
   2-22  finding of fact regarding the running of a race is final and may
   2-23  not be appealed.
   2-24        (c)  Hearings conducted by the stewards or judges must be
   2-25  consistent with constitutional guarantees of due process but are
    3-1  not subject to the Administrative Procedure and Texas Register Act
    3-2  (Article 6252-13a, Vernon's Texas Civil Statutes) or Chapter 424,
    3-3  Acts of the 63rd Legislature, Regular Session, 1973 (Article
    3-4  6252-17a, Vernon's Texas Civil Statutes).
    3-5        SECTION 3.  Subsection (a), Section 5.03, Texas Racing Act
    3-6  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
    3-7  as follows:
    3-8        (a)  A person applying for the first time for a license
    3-9  issued by the commission or other applicants designated by the
   3-10  commission by rule  <An applicant for any license under this Act>
   3-11  must submit to the commission a complete set of fingerprints of the
   3-12  individual natural person applying for the license or, if the
   3-13  applicant is not an individual natural person, a complete set of
   3-14  fingerprints of each officer or director and of each person owning
   3-15  an interest of at least five percent in the applicant.  The
   3-16  Department of Public Safety may request any person owning any
   3-17  interest in an applicant to submit a complete set of fingerprints.
   3-18        SECTION 4.  Section 6.06, Texas Racing Act (Article 179e,
   3-19  Vernon's Texas Civil Statutes), is amended by adding Subsection (i)
   3-20  to read as follows:
   3-21        (i)  Subsections (c) and (d) of this section continue in
   3-22  effect for a period of three years following the first day of live
   3-23  racing run at the racetrack.  After that period, Subsections (c)
   3-24  and (d) of this section no longer apply; however, any transfer of
   3-25  ownership that results in a majority ownership that does not meet
    4-1  the citizenship and residency qualifications must have the
    4-2  unanimous consent of all of the owners that do meet the citizenship
    4-3  and residency qualifications.
    4-4        SECTION 5.  Subsection (a), Section 6.17, Texas Racing Act
    4-5  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
    4-6  as follows:
    4-7        (a)  A commissioners court may collect a fee not to exceed 15
    4-8  cents as an admission fee to a licensed racetrack located within
    4-9  the county.  If the racetrack is located within an incorporated
   4-10  city or town, the governing body of the city or town may collect a
   4-11  fee not to exceed 15 cents as an admission fee to a licensed
   4-12  racetrack located within the city or town.  If the racetrack is not
   4-13  located within an incorporated city or town, the court may collect
   4-14  an additional fee not to exceed 15 cents as an admission fee to a
   4-15  licensed racetrack located within the county for allocation among
   4-16  the incorporated cities or towns in the county.  If the racetrack
   4-17  is not located in an incorporated city or town, the court shall
   4-18  collect the additional fee if requested to do so by the governing
   4-19  bodies of a majority of the incorporated cities and towns in the
   4-20  county.  Allocation of the fees shall be based on the population
   4-21  within the county of the cities or towns.  A commissioners court,
   4-22  city, or town may not impose an admission fee on a person younger
   4-23  than 21 years of age.
   4-24        SECTION 6.  Section 8.01, Texas Racing Act (Article 179e,
   4-25  Vernon's Texas Civil Statutes), is amended to read as follows:
    5-1        Sec. 8.01.  Allocation.  The commission shall allocate the
    5-2  live and simulcast racing days for the conduct of live and
    5-3  simulcast racing at each racetrack licensed under this Act.  Each
    5-4  racetrack shall accord reasonable access to races for all breeds of
    5-5  horses as determined by the racetrack through negotiations with the
    5-6  representative state breed registry with the final approval of the
    5-7  commission.   In granting approval, the commission shall consider
    5-8  the factors of availability of competitive horses, economic
    5-9  feasibility, and public interest.    In allocating race dates under
   5-10  this section, the commission shall consider live race dates
   5-11  separately from simulcast race dates.  The commission may prohibit
   5-12  Sunday racing unless the prohibition would conflict with another
   5-13  provision of this Act.  If the commission determines that an
   5-14  association that has been granted live or simulcast race dates has
   5-15  violated this Act or a rule or order adopted under this Act in a
   5-16  manner that constitutes a ground  for disciplinary action under
   5-17  this Act, the commission may rescind its approval of all or part of
   5-18  the live or simulcast race dates.
   5-19        SECTION 7.  Section 10.01, Texas Racing Act (Article 179e,
   5-20  Vernon's Texas Civil Statutes), is amended to read as follows:
   5-21        Sec. 10.01.  Number of racing days.  (a)  Any greyhound
   5-22  racing licensee is <shall be> entitled to conduct races for <have>
   5-23  300 evening and 150 matinee performances in a calendar year.  The
   5-24  commission shall grant at least five additional racing days during
   5-25  a race meeting to be conducted as charity days.  The commission
    6-1  shall adopt rules relating to the conduct of charity days.  The
    6-2  commission shall insure that the races held by an association on a
    6-3  charity day are comparable in all respects, including the
    6-4  generation of revenue, to the races held by that association on any
    6-5  other racing day.
    6-6        (b)  Notwithstanding Subsection (a) of this section, if the
    6-7  commission determines that an association that has been granted
    6-8  race dates has violated this Act or a rule or order adopted under
    6-9  this Act in a manner that constitutes a ground for disciplinary
   6-10  action under this Act, the commission may rescind its approval of
   6-11  all or part of the race dates.
   6-12        SECTION 8.  Subsection (c), Section 11.04, Texas Racing Act
   6-13  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
   6-14  as follows:
   6-15        (c)  The commission shall adopt rules prohibiting an
   6-16  association from accepting a wager made on credit and may <shall>
   6-17  adopt rules prohibiting automatic banking machines within the
   6-18  enclosure.
   6-19        SECTION 9.  The importance of this legislation and the
   6-20  crowded condition of the calendars in both houses create an
   6-21  emergency and an imperative public necessity that the
   6-22  constitutional rule requiring bills to be read on three several
   6-23  days in each house be suspended, and this rule is hereby suspended,
   6-24  and that this Act take effect and be in force from and after its
   6-25  passage, and it is so enacted.