1-1  By:  Harris of Dallas                                 S.B. No. 1347
    1-2        (In the Senate - Filed April 6, 1993; April 13, 1993, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  May 14, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 7, Nays 0; May 14, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker           x                               
   1-12        Henderson                                      x   
   1-13        Leedom             x                               
   1-14        Lucio                                          x   
   1-15        Luna                                           x   
   1-16        Nelson             x                               
   1-17        Patterson                                      x   
   1-18        Shelley            x                               
   1-19        Sibley                                         x   
   1-20        West               x                               
   1-21        Whitmire                                       x   
   1-22  COMMITTEE SUBSTITUTE FOR S.B. No. 1347        By:  Harris of Dallas
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the regulation of pari-mutuel racing.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Section 3.07(a), Texas Racing Act (Article 179e,
   1-28  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-29        (a)  Each horse race or greyhound race meeting shall be
   1-30  supervised by three stewards employed <approved> by the commission
   1-31  for horse racing or by three judges employed <approved> by the
   1-32  commission for greyhound racing.  <The commission shall employ one
   1-33  of the stewards who supervises a horse race meeting who shall be
   1-34  the presiding steward.  The other stewards at the race meeting
   1-35  shall be compensated by the association.  The commission shall
   1-36  employ one of the judges who supervises a greyhound race meeting
   1-37  who shall be the presiding judge; the other judges at such a race
   1-38  meeting shall be compensated by the association.>  For each race
   1-39  meeting, the commission shall employ <appoint> at least one state
   1-40  veterinarian who shall be compensated by the commission.  The
   1-41  commission by rule shall determine the amount of compensation for
   1-42  stewards, judges, and state veterinarians who are employed
   1-43  <required to be compensated> by the commission.  The commission may
   1-44  impose a fee on an association to offset the costs of compensating
   1-45  the <racetrack> stewards, judges, and state veterinarians for that
   1-46  association.  The amount of the fee for the compensation of
   1-47  stewards, judges, and state veterinarians must be reasonable
   1-48  according to industry standards for the compensation of those
   1-49  officials at other racetracks and may not exceed the actual cost to
   1-50  the commission for compensating the officials.  All other racetrack
   1-51  officials shall be appointed by the association, with the approval
   1-52  of the commission.  Compensation for those officials not
   1-53  compensated by the commission shall be determined by the
   1-54  association.
   1-55        SECTION 2.  Section 3.08, Texas Racing Act (Article 179e,
   1-56  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-57        Sec. 3.08.  <APPEAL FROM> DECISION OF STEWARDS OR JUDGES.
   1-58  (a)  Except as provided by Subsection (b) of this section, a final
   1-59  decision of the stewards or judges may be appealed to the
   1-60  commission in the manner provided for a contested case under the
   1-61  Administrative Procedure and Texas Register Act (Article 6252-13a,
   1-62  Vernon's Texas Civil Statutes).  The burden of proof is on the
   1-63  person making the appeal to present evidence sufficient to overturn
   1-64  or modify the stewards' or judges' decision.
   1-65        (b)  A  <In determining the distribution to holders of
   1-66  winning tickets in a pari-mutuel pool, a> decision of the stewards
   1-67  or judges on a disqualification for a foul in a race or on a
   1-68  finding of fact regarding the running of a race is final and may
    2-1  not be appealed.
    2-2        (c)  Hearings conducted by the stewards or judges must be
    2-3  consistent with constitutional guarantees of due process but are
    2-4  not subject to the Administrative Procedure and Texas Register Act
    2-5  (Article 6252-13a, Vernon's Texas Civil Statutes) or Chapter 424,
    2-6  Acts of the 63rd Legislature, Regular Session, 1973 (Article
    2-7  6252-17a, Vernon's Texas Civil Statutes).
    2-8        SECTION 3.  Subsection (a), Section 5.03, Texas Racing Act
    2-9  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
   2-10  as follows:
   2-11        (a)  A person applying for the first time for a license
   2-12  issued by the commission or other applicants designated by the
   2-13  commission by rule  <An applicant for any license under this Act>
   2-14  must submit to the commission a complete set of fingerprints of the
   2-15  individual natural person applying for the license or, if the
   2-16  applicant is not an individual natural person, a complete set of
   2-17  fingerprints of each officer or director and of each person owning
   2-18  an interest of at least five percent in the applicant.  The
   2-19  Department of Public Safety may request any person owning any
   2-20  interest in an applicant to submit a complete set of fingerprints.
   2-21        SECTION 4.  Section 6.06, Texas Racing Act (Article 179e,
   2-22  Vernon's Texas Civil Statutes), is amended by adding Subsection (i)
   2-23  to read as follows:
   2-24        (i)  Subsections (c) and (d) of this section continue in
   2-25  effect for a period of three years following the first day of live
   2-26  racing run at the racetrack.  After that period, Subsections (c)
   2-27  and (d) of this section no longer apply; however, any transfer of
   2-28  ownership that results in a majority ownership that does not meet
   2-29  the citizenship and residency qualifications must have the
   2-30  unanimous consent of all of the owners that do meet the citizenship
   2-31  and residency qualifications.
   2-32        SECTION 5.  Subsection (a), Section 6.17, Texas Racing Act
   2-33  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
   2-34  as follows:
   2-35        (a)  A commissioners court may collect a fee not to exceed 15
   2-36  cents as an admission fee to a licensed racetrack located within
   2-37  the county.  If the racetrack is located within an incorporated
   2-38  city or town, the governing body of the city or town may collect a
   2-39  fee not to exceed 15 cents as an admission fee to a licensed
   2-40  racetrack located within the city or town.  If the racetrack is not
   2-41  located within an incorporated city or town, the court may collect
   2-42  an additional fee not to exceed 15 cents as an admission fee to a
   2-43  licensed racetrack located within the county for allocation among
   2-44  the incorporated cities or towns in the county.  If the racetrack
   2-45  is not located in an incorporated city or town, the court shall
   2-46  collect the additional fee if requested to do so by the governing
   2-47  bodies of a majority of the incorporated cities and towns in the
   2-48  county.  Allocation of the fees shall be based on the population
   2-49  within the county of the cities or towns.  A commissioners court,
   2-50  city, or town may not impose an admission fee on a person younger
   2-51  than 21 years of age.
   2-52        SECTION 6.  Section 8.01, Texas Racing Act (Article 179e,
   2-53  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-54        Sec. 8.01.  Allocation.  The commission shall allocate the
   2-55  live and simulcast racing days for the conduct of live and
   2-56  simulcast racing at each racetrack licensed under this Act.  Each
   2-57  racetrack shall accord reasonable access to races for all breeds of
   2-58  horses as determined by the racetrack through negotiations with the
   2-59  representative state breed registry with the final approval of the
   2-60  commission.   In granting approval, the commission shall consider
   2-61  the factors of availability of competitive horses, economic
   2-62  feasibility, and public interest.    In allocating race dates under
   2-63  this section, the commission shall consider live race dates
   2-64  separately from simulcast race dates.  The commission may prohibit
   2-65  Sunday racing unless the prohibition would conflict with another
   2-66  provision of this Act.  If the commission determines that an
   2-67  association that has been granted live or simulcast race dates has
   2-68  violated this Act or a rule or order adopted under this Act in a
   2-69  manner that constitutes a ground  for disciplinary action under
   2-70  this Act, the commission may rescind its approval of all or part of
    3-1  the live or simulcast race dates.
    3-2        SECTION 7.  Section 10.01, Texas Racing Act (Article 179e,
    3-3  Vernon's Texas Civil Statutes), is amended to read as follows:
    3-4        Sec. 10.01.  Number of racing days.  (a)  Any greyhound
    3-5  racing licensee is <shall be> entitled to conduct races for <have>
    3-6  300 evening and 150 matinee performances in a calendar year.  The
    3-7  commission shall grant at least five additional racing days during
    3-8  a race meeting to be conducted as charity days.  The commission
    3-9  shall adopt rules relating to the conduct of charity days.  The
   3-10  commission shall insure that the races held by an association on a
   3-11  charity day are comparable in all respects, including the
   3-12  generation of revenue, to the races held by that association on any
   3-13  other racing day.
   3-14        (b)  Notwithstanding Subsection (a) of this section, if the
   3-15  commission determines that an association that has been granted
   3-16  race dates has violated this Act or a rule or order adopted under
   3-17  this Act in a manner that constitutes a ground for disciplinary
   3-18  action under this Act, the commission may rescind its approval of
   3-19  all or part of the race dates.
   3-20        SECTION 8.  Subsection (c), Section 11.04, Texas Racing Act
   3-21  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
   3-22  as follows:
   3-23        (c)  The commission shall adopt rules prohibiting an
   3-24  association from accepting a wager made on credit and may <shall>
   3-25  adopt rules prohibiting automatic banking machines within the
   3-26  enclosure.
   3-27        SECTION 9.  The importance of this legislation and the
   3-28  crowded condition of the calendars in both houses create an
   3-29  emergency and an imperative public necessity that the
   3-30  constitutional rule requiring bills to be read on three several
   3-31  days in each house be suspended, and this rule is hereby suspended,
   3-32  and that this Act take effect and be in force from and after its
   3-33  passage, and it is so enacted.
   3-34                               * * * * *
   3-35                                                         Austin,
   3-36  Texas
   3-37                                                         May 14, 1993
   3-38  Hon. Bob Bullock
   3-39  President of the Senate
   3-40  Sir:
   3-41  We, your Committee on State Affairs to which was referred S.B. No.
   3-42  1347, have had the same under consideration, and I am instructed to
   3-43  report it back to the Senate with the recommendation that it do not
   3-44  pass, but that the Committee Substitute adopted in lieu thereof do
   3-45  pass and be printed.
   3-46                                                         Harris of
   3-47  Dallas, Chairman
   3-48                               * * * * *
   3-49                               WITNESSES
   3-50                                                  FOR   AGAINST  ON
   3-51  ___________________________________________________________________
   3-52  Name:  David J. Freeman                                        x
   3-53  Representing:  Texas Racing Commission
   3-54  City:  Austin
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