BILL ANALYSIS



C.S.H.B. 1305
By: Gray / et al.
5-3-95
Committee Report (Substituted)


BACKGROUND


The Texas Racing Commission was created in 1987 by the 70th
Legislature.  The Texas Racing Commission is responsible for
ensuring fair wagering and safe racing.  The Commission carries out
its programs and functions through an eight-member board with six
of the members appointed by the Governor with the consent of the
Senate and two ex officio members, the State Comptroller and the
chair of the Texas Public Safety Commission.  To carry out these
programs, the Commission had a budget of $6,099,605 and 62
employees for fiscal year 1994.

The Texas Racing Commission is subject to the Sunset Act and will
be abolished September 1, 1995 unless continued by the Legislature. 
As a result of its review of the Commission, the Sunset Advisory
Commission recommended continuation of the Texas Racing Commission
and several statutory modifications that are contained in this
legislation.


PURPOSE

The purpose of this bill is to continue the Texas Racing Commission
for a 6-year period and make statutory modifications recommended by
the Sunset Advisory Commission.  The modifications proposed by this
bill:

     -     change the composition of the Commission by requiring
           four public members with general knowledge of business
           or agri-business, one member with knowledge of greyhound
           racing, and one member with knowledge of horse racing,
           while retaining the ex officio members.  

     -     remove existing requirements for the Commission to
           operate through separately acting sections representing
           horse and greyhound racing, although allow such sections
           for rule development;

     -     focus the Commission's activities on regulation of the
           racing industry and not promotion;

     -     improve the Commission's racetrack inspection and
           enforcement activities;

     -     increase the Commission's oversight of programs funded
           through provisions of the Texas Racing Act;

     -     improve the integrity and safety of pari-mutuel racing
           by making the top regulatory officials at each track
           directly responsible to the state;

     -     require the Commission to recover the costs of the
criminal history reports; and,

     -     provide for other changes as recommended by the Sunset
           Commission.





RULEMAKING AUTHORITY

In the committee's opinion, this bill grants rulemaking authority
to the Texas Racing Commission  in the following sections: SECTION
6 - Section 2.074, Texas Racing Act (Article 179e, Vernon's Texas
Civil Statutes), SECTION 8 - Section 2.11, SECTION 9 - Section
2.20, Section 2.22, Section 2.23, Section 2.24, Section 2.25,
SECTION 10 - Section 3.02, SECTION 11 - Section 3.021, SECTION 13 -
Section 3.07(a), SECTION 15 - Section 3.13, Section 3.14, Section
3.15, Section 3.16, SECTION 17 - Section 5.05, SECTION 21 - Section
6.06, SECTION 22 - Section 6.061, Section 6.062, SECTION 23 -
Section 6.092, SECTION 26 - Section 7.02, SECTION 29 - Section
7.07, SECTION 28 - Section 7.05, SECTION 30 - Section 7.10, 
SECTION 33 - Section 11.04(c), SECTION 34 - Section 11.06, SECTION
38.  In addition, under the general rulemaking authority already
granted to the commission, rules may be adopted to implement other
new provisions found in this bill.



SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1.02, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes). Removes language on the promotion
of racing from the purpose clause of the Act so that it only refers
to the regulation and control of horse racing, greyhound racing,
and parimutuel wagering.

SECTION 2.  Amends Section 1.03, by adding Subdivisions (67) to
(73).

     (67) Adds definition of "Racetrack facility."

     (68) Adds definition of "Child."

     (69) Adds definition of "Minor."

     (70) Adds definition of "Contraband."

     (71) Adds definition of "Prohibited device."

     (72) Adds definition of "Prohibited substance."

     (73) Adds definition of "Unlawful touting."

SECTION 3.  Amends Section 2.02.  Changes the composition of the
commission by eliminating the requirement for two veterinarians,
two members with knowledge of horse racing, and two members with
knowledge of greyhound racing.  Retains the two ex officio members. 
Also, updates standard language developed by the Sunset Commission. 
Requires that appointments to the commission be made without regard
to race, color, disability, sex, religion, age or national origin. 
Deletes language related to appointment of members.

SECTION 4.  Amends Section 2.03.  Technical correction.  Removes
language regarding initial appointments of members of the
commission.

SECTION 5.  Amends Section 2.05.  (a)  Requires four of the members
on the commission to be public members and have a general knowledge
of business or agri-business, one member with knowledge of
greyhound racing, and one member with knowledge of horse racing. 
Adds standard language developed by the Sunset Commission to
prohibit the appointment of a public member if the person or the
person's spouse is licensed by the commission (except as a
commissioner), conducts business with the commission, or otherwise
has financial ties to the regulated industry.

     (b) Technical correction.  Updates statutory citation.

     Reletters Subsections.

SECTION 6.  Amends Article 2, by adding Sections 2.071-2.074. 

     Section 2.071.  Adds standard language developed by the Sunset
Commission.  Prohibits commission members or their spouses and
employees compensated at or above Group 17 in the appropriations
act or their spouses from being an officer or employee of a related
Texas trade association. Also defines Texas trade association.

     Section 2.072.  Adds standard language developed by the Sunset
Commission.  Prohibits registered lobbyists from serving as a
member of the commission or from being employed as the commission's
general counsel.

     Section 2.073.  Adds standard language developed by the Sunset
Commission.  Defines the grounds for removing a commission member. 
Affirms that an action of the commission is valid even if it is
taken when a ground for removal exists for one of the members. 
Requires notification of the commission's presiding officer, the
governor and the attorney general if knowledge that a potential
ground for removal exists.

     Section 2.074.  Adds standard language developed by the Sunset
Commission.  Requires the commission members to be provided with
adequate information and training to perform their duties prior to
assuming their duties and being confirmed by the senate.

SECTION 7.  Amends Section 2.10.  Updates standard language
developed by the Sunset Commission.  Requires the governor to
designate a public member as the presiding officer of the
commission.

SECTION 8. Amends Section 2.11, by amending Subsection (b) and
adding Subsection (d).

     (b) Removes language referring to quorum requirements for
conducting business of a section of the commission.

     (d) Adds standard language developed by the Sunset Commission.
Requires the commission to give the public reasonable opportunity
to appear before it regarding issues under the jurisdiction of the
commission.

SECTION 9. Amends Article 2, by adding Sections 2.17-2.25. 

     Section 2.17.  Adds standard language developed by the Sunset
Commission.  Requires the commission to comply with the open
meetings and administrative procedure laws.

     Section 2.18.  Adds standard language developed by the Sunset
Commission.  Requires the commission to prepare an annual financial
report that meets the reporting requirements in the General
Appropriations Act.

     Section 2.19.  Adds standard language developed by the Sunset
Commission.  Requires the commission's funds to be managed in
accordance with the State Funds Reform Act.

     Section 2.20.  (a) Adds standard language developed by the
Sunset Commission.  Requires the executive secretary or a designee
to develop an intra-agency career ladder program that addresses
mobility and advancement opportunities for employees within the
Commission and requires intra-agency postings of job openings
concurrently with any public posting.

     (b)  Adds standard language developed by the Sunset
Commission.  Requires the executive secretary or a designee to
develop a system of annual performance evaluations based on
documented employee performance and upon which merit salary
increases must be based.

     (c)-(e)  Add standard language developed by the Sunset
Commission. Requires the executive secretary or a designee to
develop an equal employment policy that is annually updated,
reviewed by the Texas Commission on Human Rights, and filed with
the governor's office.

     Section 2.21.  Adds standard language developed by the Sunset
Commission. Requires the executive secretary or a designee to
inform commission members and agency employees of the
qualifications for office or employment and each person's
responsibilities under the law.

     Section 2.22.  Adds standard language developed by the Sunset
Commission.  Requires the commission to clearly separate its
policymaking responsibilities from the management responsibilities
of the executive secretary and staff of the commission.

     Section 2.23.  Adds standard language developed by the Sunset
Commission.  Requires the commission to comply with state and
federal program and facility accessibility laws and requires the
executive secretary to develop a plan that describes how non-English speaking persons can be provided reasonable access to the
commission's programs.

     Section 2.24.  Adds standard language developed by the Sunset
Commission.  Requires the commission to prepare and distribute
information to the public concerning the commission's functions and
complaint procedures. Also requires the commission to establish a
method by which racetrack patrons can be notified of the complaint
procedures.

     Section 2.25.  (a) Adds standard language developed by the
Sunset Commission.  Requires the commission to collect and maintain
information about all complaints filed with the commission.

     (b) Adds standard language developed by the Sunset Commission.
Requires the commission to maintain files on written complaints
that the commission has the authority to resolve and to notify the
parties regarding the status of the complaint quarterly until
disposition. 

SECTION 10.  Amends Section 3.02. Conforming change.  Modifies the
Commission's rule development process by authorizing the Commission
to establish separate sections to review or propose rules. The full
commission would take final action on rules.  Requires meetings on
proposed rules before the rules are published in the Texas Register
and requires the Commission to post a notice of the meeting with an
agenda and summary of the proposed rule at each racetrack.  Also
requires the Commission to post notice at the racetrack when these
proposed rules are published in the Texas Register.  The Commission
is authorized to appoint committees to assist in rule development.

SECTION 11.  Amends Section 3.021, by amending Subsection (b) and
adding Subsection (d). 
     (b) Removes language directing the commission to promote the
growth of the racing industry.

     (d) Adds standard language developed by the Sunset Commission. 
Prevents the commission from adopting rules that restrict
competitive bidding or advertising except to prohibit false,
misleading or deceptive practices.

SECTION 12.  Amends Section 3.03.  Conforming change to modify
power of entry to use newly defined term racetrack facility. 

SECTION 13.  Amends Section 3.07(a).  Changes the employment of
racetrack stewards and judges so that all three officials must be
employed by the commission instead of current language that allows
two of the three officials to be employed by the racetrack
association.  Requires the commission to designate one of the
stewards or judges as the presiding officer for each race meeting. 
Requires the Commission to publish a list of all approved stewards
and judges who are eligible to serve at a race meeting and to
forward this list to the racetrack association to give them a
chance to review and comment on the list.

SECTION 14.  Amends Section 3.08. Technical correction updating
statutory citations.  Makes all decisions of the stewards and
judges on a disqualification or a finding of fact regarding a race
final and not subject to appeal.

SECTION 15. Amends Article 3, by adding Sections 3.13-3.16. 

     Section 3.13.  Requires the commission to adopt criteria for
recognizing organizations that represent members of the racing
industry.

     Section 3.14.  Adds standard language developed by the Sunset
Commission.  Requires the commission to use a full range of
penalties, such as reprimand, suspension or revocation, for
violations of state laws or agency rules.

     Section 3.15.  Adds standard language developed by the Sunset
Commission.  Entitles licensees to a hearing conducted by the State
Office of Administrative Hearings before any sanction may be taken
against their license.  Proceedings conducted by racing stewards or
judges are exempted.

     Section 3.16.  Grants the commission rulemaking authority to
adopt rules prohibiting unlawful influence on the outcome of a
race, including the authority to perform drug testing.  Specifies
drug testing procedures to be followed by the commission and
administrative sanctions for rule violations in this area.  This
authority was previously provided in Article 14 of the Act, has
been deleted in SECTION 38 of this bill and relocated here in new
Section 3.16.

SECTION 16.  Amends Section 5.01(a).  Technical change.

SECTION 17.  Amends Article 5, by adding Section 5.05.  Requires
the commission to recover costs of criminal history reports and
reimburse the Department of Public Safety for conducting the
checks.

SECTION 18.  Amends Section 6.01.  Technical change.

SECTION 19.  Amends Section 6.02(d). Allows operation of Class 3
city-owned racetracks.

SECTION 20.  Amends Section 6.04(a). Removes language directing the
commission to promote the racing industry.

SECTION 21.  Amends Sections 6.06(a), (b), (e) and (f). 

     (a) Technical correction.  Includes previous participation in
activities detrimental to the racing industry as well as failure to
disclose all true owners in the racetrack as grounds for denial,
revocation, or suspension of a racetrack license.

     (b) Expands the grounds for denial, revocation or suspension
of a racetrack license in Subsection (a) to a partnership or
limited partnership if any partner or limited partner is
disqualified under Subsection (a).

     (e) Removes language referring to separate sections of the
commission.

     (f) Removes language referring to separate sections of the
commission.

SECTION 22.  Amends Article 6, by adding Sections 6.061 and 6.062.

     Section 6.061  Grants the commission rulemaking authority to
improve the commission's racetrack inspection and enforcement
activities.  Requires rules on reporting and correcting
inappropriate and unsafe conditions at a racetrack facility,
including methods for remedying emergency situations.  Requires the
executive secretary to issue a notice of violation for an
inappropriate or unsafe condition and order the racetrack to
correct the situation within a specified period of time.  If a
racetrack fails to take action required, the executive secretary is
required to initiate enforcement action and is also authorized to
rescind race dates.

     Section 6.062.  Requires the commission to adopt a method of
supervising and approving any changes made to a racetrack facility
through construction or renovation.  Requires rules related to
approval, change and content of facility plans and specifications,
maintenance of records, progress reports, inspection, and oversight
of changes.  If a racetrack licensee fails to comply with
commission requirements, the commission is authorized to require
the licensee to appear before the commission at a public hearing to
consider the matter.  The commission must determine whether the
racetrack facility meets commission requirements before the
facility can be used.  If a racetrack fails to take action
required, the commission is required to initiate enforcement action
and is also authorized to rescind race dates.
     
SECTION 23.  Amends Article 6, by adding Section 6.092.  Increases
the commission's oversight of programs funded through provisions of
the Texas Racing Act.  Requires the commission to adopt reporting,
monitoring and auditing requirements or performance measures for
organizations receiving racing funds.  Requires the commission to
consult with the affected organization.  Requires that an annual,
independent audit be conducted and a report of the results sent to
the commission.  Also, allows the commission to review any records
of an organization that submits such an audit.

SECTION 24.  Amends Section 6.17(a).  Exempts commission licensees
from admission fees charged at the racetrack by cities and
counties.

SECTION 25.  Amends Section 7.01.  Removes language making the
violation of this section a criminal offense to be relocated in
Article 14, Texas Racing Act in SECTION 38 of this bill.

SECTION 26.  Amends Section 7.02, by amending Subsection (a) and
adding Subsections (c) and (d). 

     (a)  Removes the language making any violation of this section
a criminal offense.  Wagering without a license is replaced as an
offense in Article 14, Texas Racing Act in SECTION 38 of this bill. 
Also makes technical change.

     (c) Adds standard language developed by the Sunset Commission. 
Requires the commission to notify license applicants of licensing
examination results within a reasonable time of the examination
date.

     (d) Adds standard language developed by the Sunset Commission. 
Requires the commission, upon request of an applicant who failed a
licensing examination, to provide an analysis of the applicant's
exam performance.

SECTION 27.  Amends Section 7.04.  Provides that the improper use
of a temporary pass and previous participation in activities
detrimental to the racing industry are additional grounds for
refusing, to issue, suspending or revoking an occupational license.

SECTION 28.  Amends Section 7.05. Requires the commission to
include the cost of the criminal history checks when setting the
fee for licenses.  Allows the commission to collect the costs over
an extended period.  Reletters Subsections.

SECTION 29.  Amends Section 7.07.  Adds standard language developed
by the Sunset Commission.  Authorizes the Commission to adopt a
staggered license renewal system.

SECTION 30.  Amends Article 7, by adding Section 7.10.  (a) Adds
standard language developed by the Sunset Commission.  Authorizes
the Commission to waive any license requirements and grant a
license to an applicant with a valid license from another state
that has license requirements substantially equivalent to those of
this state.

     (b) Adds standard language developed by the Sunset Commission. 
Authorizes the commission to waive any license requirements and
grant a license to an applicant with a valid license from another
state with which Texas has a reciprocity agreement.  Also
authorizes the commission to enter into reciprocity agreements.

SECTION 31.  Amends Section 9.01.  Makes a conforming change to
increase the commission's oversight of programs funded through
provisions of the Texas Racing Act as provided for in SECTION 23 of
this bill.

SECTION 32.  Amends Section 10.04. Makes a conforming change to
increase the  commission's oversight of programs funded through
provisions of the Texas Racing Act as provided for in SECTION 23 of
this bill.

SECTION 33.  Amends Section 11.04(c).  Strengthens statutory
language prohibiting automatic banking machines. Prohibits patrons
from using automated methods for obtaining additional money while
at a racetrack facility.

SECTION 34.  Amends Section 11.06.  Clarifies the commission's
rulemaking authority to prohibit minors from wagering at the
racetrack.  Removes the language making any violation of these
rules a criminal offense for relocation in Article 14, Texas Racing
Act in SECTION 38 of this bill.

SECTION 35.  Amends Section 11.09.  Technical change rewording the
defense to prosecution section to more closely match Penal Code
language.

SECTION 36.  Amends Article 12, by adding Section 12.04. 
Authorizes a city with a population of 5,000 or more that owned a
racetrack in 1986 to conduct an annual race meeting if it does not
exceed 16 racing days.

SECTION 37.  Amends Section 13.03.  Creates a criminal trespass
presumption, consistent with the Penal Code, for those persons who
have been excluded or ejected from the racetrack enclosure or who
are otherwise unauthorized to enter.

SECTION 38.  Amends Article 14. Changes title to "CRIMINAL
OFFENSES"

     Section 14.01  Makes the offense of touting a Class A
misdemeanor unless the actor is a license holder or member or
employee of the commission or the information was  provided to the
public in a tip sheet, in which case the penalty is a state jail
felony.  Strikes the redundant provision imposing liability on a
corporation or association for the actions of an agent for touting,
which already exists in the penal code.

     Section 14.02  Makes possession as well as use of an unlawful
credential a criminal offense.  Strikes the redundant provision
imposing liability on a corporation or association for the actions
of an agent for unlawfully using a credential, which already exists
in the penal code.

     Section 14.03  Adds bookmaking as a state jail felony criminal
offense.  Deletes existing language from section relating to
unlawful influence on a race through use of prohibited devices and
substances or bribery to be relocated in Sections 14.10 - 14.11,
Texas Racing Act.

     Section 14.04  Clarifies the offense of permitting illegal
access to a racetrack.  Reduces the penalty for permitting illegal
access to a racetrack to fit the crime.  Lowers the offense from a
third-degree felony to a Class B misdemeanor.

     Section 14.05  No change.

     Section 14.06  Lowers the level of culpability that must be
shown for the offense of making false statements in connection with
a racing investigation from "intentionally" to "knowingly" and
clarifies the definition of the term "statement" for the offense of
making false statements. Makes this offense a state jail felony
unless the statement was material in a commission action relating
to a racetrack license, in which case it is a felony of the third
degree.

     Section 14.07  Expands the offense for hindering an authorized
entry to include interfering with an authorized search.  Lowers the
level of culpability that must be shown for the offense of
hindering an authorized entry from "intentionally, knowingly, or
recklessly" to "with criminal negligence."

     Section 14.08  Adds the offense of forging a pari-mutuel
ticket as a third degree felony.  Assigns Penal Code definition for
the term "forge".

     Section 14.09  Adds the offense of impersonating a license
holder as a Class A misdemeanor.

     Section 14.10  Adds the offense of unlawfully influencing a
race by possession or use of a prohibited device or substance. 
Possession only is punishable by a state jail felony, unless it can
be shown that the actor intended to influence the outcome of a
race, in which case it is a third degree felony.  Use of such a
prohibited device or substance is a state jail felony.

     Section 14.11  Adds the offense of unlawfully influencing a
race through bribery or corrupt influence as a state jail felony
unless the recipient of the benefit is a racetrack official, in
which case it is a felony of the third degree.  Adds language
defining bribery and corrupt influence comparable to the Penal
Code.

     Section 14.12.  Makes coercion or intimidation to influence
the outcome of a race a state jail felony, unless the perpetrator
or the target of the coercion or intimidation is a racetrack
official, in which case it is a third degree felony.

     Section 14.13.  Makes it illegal for a member of the
commission to accept employment or payment from any racetrack
association or occupational licensee, to wager on a greyhound or
horse race in Texas, or to accept any part of a purse paid to an
animal racing in Texas.  Makes the offense a state jail felony
under the general penalty provision of the act.

     Section 14.14.  Makes it a Class B misdemeanor for a person
with criminal negligence to allow a minor to wager at a racetrack,
unless the minor showed the person an apparently valid driver's
license or DPS-issued identification card.  Makes it a Class B
misdemeanor for a person with criminal negligence to allow a child
to enter the viewing section of a racetrack, unless a parent,
guardian, or adult spouse accompanies the child.  Makes it a Class
C misdemeanor for a minor to intentionally or knowingly wager at a
racetrack.

     Section 14.15.  Makes it illegal for a person to participate
in, permit, or conduct an unauthorized race at a licensed racetrack
if the person wagers on the outcome of the race, or knows or
reasonably should know someone else is betting on the race.  Makes
the offense a state jail felony under the general penalty provision
of the act.

     Section 14.16.  Makes it illegal for an unlicensed person to
be involved in pari-mutuel racing, unless the person is a spectator
or wagerer.  Makes the offense a state jail felony for unlicensed
racetrack operators and Class A misdemeanor for others.  Makes it
an offense for a licensed racetrack operator to conduct pari-mutuel
racing if he knows or reasonably should know that someone else is
illegally betting on the outcome of the races.  Makes the offense
a state jail felony under the general penalty provision of the act.

     Section 14.17.  Makes it a third-degree felony for a person to
conduct a race without a license if he knows or reasonably should
know that someone else is betting on the race.

     Section 14.18.  Makes it illegal for a person to fail or
refuse to display a credential or to identify himself when lawfully
requested to do so when he is in a restricted area on the premises
of a racetrack.  Makes the offense a Class B misdemeanor unless the
defendant held a license at the time it occurred, in which case the
offense is a Class C misdemeanor.

     Section 14.19.  Authorizes commission members, their agents,
stewards or judges, and DPS or other peace officers to search
actual and purported licensees on the premises of a racetrack and
to seize any prohibited items discovered during a search.

     Section 14.20.  Allows a defendant to be prosecuted under the
Texas Racing Act or another law for the same illegal conduct.

     Section 14.21.  Prohibits Article 14 of the act, the criminal
offense provisions, from being construed to restrict the
commission's administrative authority to fully enforce the act or
commission rules.

SECTION 39. Amends Section 15.01.  Changes the default penalty
provision from a felony of the third degree to a state jail felony.

SECTION 40.   Amends Section 18.01(a). Updates the commission's
Sunset review date to 2001, which provides for a 6-year review.

SECTION 41.  Amends Article 18, by adding Section 18.08.  Allows
the commission to provide assistance to members of the racing
industry trying to implement adult learning programs through
distance learning.

SECTION 42.  Amends Section 481.172, Government Code.  Adds
language directing the Texas Department of Commerce to promote the
racing industry if funds are appropriated specifically for that
purpose.

SECTION 43.  Repeals Sections 2.07, 3.01, 11.04(d), 15.02, and
18.02.  Removes language regarding prohibited conflict of interest
of commission members and relocates this provision in Article 14. 
Removes language relating to separate sections of the commission. 
Removes language making a violation of commission rules on wagering
a criminal offense.  Removes language which made all commission
rules and orders subject to the Administrative Procedure and Texas
Register Act.  Language to this effect is included in Section 2.17.

SECTION 44. (a) Provides that the effective date of the Act is
September 1, 1995.

     (b) Provides that the changes made by this Act only apply to
members of the commission appointed after the effective date of
this bill.  Specifies method of appointments for achieving new
membership plan.

     (c) Requires the commission to review all of the rules of the
commission and readopt, modify, or repeal these rules before
January 1, 1998.

     (d) Transfers any rulemaking authority given to a separate
section of the Texas Racing Commission to the full Texas Racing
Commission.

SECTION 45.  Provides that the changes made by this Act do not
apply to offenses, any element of which were committed before the
effective date which instead will be prosecuted under the earlier
law.

SECTION 46.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

Major points of difference between HB 1305, as filed, and the
committee substitute are as follows:

1.   The substitute changes the composition of the Commission to
     four public members with knowledge of business or
     agribusiness, one member with knowledge of greyhound racing,
     and one member with knowledge of horse racing, and retains the
     ex officio members.  The original bill required the four
     public members on the Commission only to have a general
     knowledge of business or agri-business.

2.   The substitute modifies the Commission's rule development
     process by authorizing the Commission to establish separate
     sections to review or propose rules. The full commission would
     take final action on rules.  Requires meetings on proposed
     rules before the rules are published in the Texas Register and
     requires the Commission to post a notice of the meeting with
     an agenda and summary of the proposed rule at each racetrack. 
     Also requires the Commission to post notice at the racetrack
     when these proposed rules are published in the Texas Register. 
     Authorizes the Commission is authorized to appoint committees
     to assist in rule development.  The original bill did not
     address the Commission's rulemaking process.

3.   The substitute requires the Commission to publish a list of
     all approved stewards and judges who are eligible to serve at
     a race meeting and to forward this list to the racetrack
     association to give them a chance to review and comment on the
     list.  The original bill did not contain a similar provision.

4.   The substitute refines current statutory language authorizing
     the Commission to establish, in rules, policies prohibiting
     unlawful influence of race outcomes and to take disciplinary
     action against violators.   Relocation of this language was
     needed to divide rule violations and criminal violations into
     separate sections of the Act for improved prosecution of
     criminal violations.  The original bill did not contain
     similar provisions.

5.   The substitute adds or expands criminal offenses for
     bookmaking, unlawfully using a credential, forging a pari-mutuel ticket, impersonating a license holder, use of coercion
     or intimidation to influence a race outcome, unlawful racing
     at a licensed facility, and pari-mutuel wagering at an
     unlicensed facility.  The original bill did not contain
     similar provisions.

6.   The substitute clarifies search and seizure authority of the
     Commission and DPS at a racetrack facility.  The original bill
     did not contain similar provisions.

7.   The substitute makes criminal offense language consistent with
     the Penal Code for gambling prosecution, criminal trespass,
     touting and bribery.  The original bill did not contain
     similar provisions.

8.   The substitute aligns penalties for criminal violations of the
     Texas Racing Act to match the severity of the crime including
     changing some third degree felonies to state jail felonies. 
     Also, changes the default penalty provision in the Act from a
     third degree felony to a state jail felony.  The original bill
     did not contain similar provisions.

9.   The substitute authorizes the Commission to assist racetracks
     in implementing adult education programs for occupational
     licensees.  The original bill did not contain a similar
     provision.


SUMMARY OF COMMITTEE ACTION

HB 1305 was considered in a Public Hearing on April 19, 1995.  The
Chair laid out HB 1305, and recognized the author, Rep. Gray to
explain the bill.  The Chair recognized members for questions.  The
Chair laid out HB 2511, and explained the bill.  The Chair
recognized the following persons to testify as a Resource Witness,
registering neutral on the bills:
     Mr. John P. Moore, Exec. Dir., Sunset Advisory Commission;
     Mr. David J. Freeman, Exec. Secretary, Tx. Racing Commission;
The Chair recognized the following persons to testify in favor of
the bills:
     Mr. David Hooper, Exec. Dir, Tx. HBPA;
     Mr. James Frey, Exec. Dir, Tx. Greyhound Assn.; 
     Mr. Jack Triplett, Corpus Christi Greyhound Track;
     Mr. William McLaughlin, Valley Greyhound Park, General
Manager;
     Mr. Jeff Hooper, Tx. Thoroughbred Assn.;
     Ms. Debbie Schauf, Tx. Quarter Horse Assn.;
The Chair recognized Rep. Gray to close.  HB 2511, and HB 1305 were
left pending in committee.  There was no objection.  HB 1305 was
considered in a Formal Meeting on May 3, 1995.  The Chair called up
HB 1305 which was pending in committee.  There was no objection. 
The Chair offered a complete committee substitute to HB 1305, and
moved adoption of CSHB 1305.  There was no objection.  Rep. Kubiak
moved that the full committee adopt HB 1305 as substituted and that
it be reported favorably to the full House with the recommendation
that it do pass and be printed.  The motion prevailed by the
following vote:  AYES: 7, NAYS: 0, ABSENT: 2.  HB 1305 was
considered in a Public Hearing on May 3, 1995.  Rep. Kubiak moved
to reconsider the vote by which HB 1305 as substituted, had been
favorably approved.  There was no objection.  The Chair laid out HB
1305.  Rep. Kubiak offered a complete committee substitute to HB
1305 and moved adoption of CSHB 1305.  There was no objection. 
Rep. Yarbrough moved that the full committee adopt HB 1305 as
substituted, and that it be reported to the full House with the
recommendation that it do pass and be printed.  The motion
prevailed by the following vote:  AYES: 6, NAYS: 0, ABSENT: 3.