BILL ANALYSIS
C.S.H.B. 1305
By: Gray (Armbrister)
State Affairs
5-22-95
Senate Committee Report (Substituted)
BACKGROUND
The Texas Racing Commission (commission) was created in 1987 by the
70th Legislature. The commission is responsible for ensuring fair
wagering and safe racing and to help the racing industry grow as an
asset to the state's economy. 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 comptroller, and the chair
of the Texas Public Safety Commission. To execute these programs,
the commission had a budget of $6,099,605 and 62 employees for
fiscal year 1994.
The 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 commission and several
statutory modifications.
PURPOSE
As proposed, C.S.H.B. 1305 continues and revises the duties and
responsibilities of the Texas Racing Commission; transfers the
promotion and encouragement of horse and greyhound racing to the
Texas Department of Commerce; sets forth criminal penalties.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Texas Racing Commission under SECTIONS 8, 9, 10, 11, 13, 15,
24, 26, 28, 34, 37, 38, 39, 40, and 45 (Sections 2.11(d); 2.22 and
2.24(b); 3.02(a), (b), (g) and (h); 3.021(d); 3.07(a); 3.13(a) and
3.16(a)-(c), (e), (g), and (i); 6.061(a), (d), and (f) and
6.062(b); 6.09(f); 6.092(a), (b), and (e); 7.07(b); 10.04(b);
11.011(a); 11.0115(a) and 11.0117(a) and (b); 11.04(e); and
14.18(b)(1) and (2), Article 179e, V.T.C.S.) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1.02, Article 179e, V.T.C.S. (Texas
Racing Act), to provide that the purpose of this Act is to provide
for the strict regulation of horse and greyhound racing (racing)
and the control of pari-mutuel wagering, rather than to encourage
various industries related to horse and greyhound racing.
SECTION 2. Amends Section 1.03, Article 179e, V.T.C.S., by amending
Subdivision (61) and adding Subdivisions (67)-(75), to define
"simulcast," "racetrack facility," "child," "minor," "contraband,"
"prohibited device," "prohibited substance," "unlawful touting,"
"race," and "simulcasting facility."
SECTION 3. Amends Section 2.02, Article 179e, V.T.C.S., to require
appointments to the Texas Racing Commission (commission) to be made
without regard to certain personal characteristics of the
appointees. Makes conforming changes.
SECTION 4. Amends Section 2.03, Article 179e, V.T.C.S., to delete
a provision regarding the governor to make initial appointments to
the commission. Makes conforming changes.
SECTION 5. Amends Section 2.05, Article 179e, V.T.C.S., as follows:
Sec. 2.05. ELIGIBILITY. (a) Sets forth requirements for the
appointed members of the commission (members). Provides that
a person is not eligible for appointment as a member if the
person or the person's spouse meets certain criteria.
(b) Makes conforming changes.
(c)-(d) Redesignate existing text.
SECTION 6. Amends Article 2, Article 179e, by adding Sections
2.071-2.074, as follows:
Sec. 2.071. CONFLICT OF INTEREST. (a)-(b) Prohibit an
officer, employee, or consultant or the spouse of an officer,
manager, or consultant of a Texas trade association in the
field of racing from being a member and from being an employee
of the commission who is exempt from the state's position
classification plan or is compensated at or above a certain
amount prescribed by the General Appropriations Act.
(b) Describes a Texas trade association.
Sec. 2.072. LOBBYIST RESTRICTION. Prohibits a person from
serving as a member or acting as the commission's general
counsel (counsel) if the person is required to register as a
lobbyist because of the person's activities on behalf of a
profession related to the commission.
Sec. 2.073. GROUNDS FOR REMOVAL. (a) Sets forth grounds for
removal of a member from the commission.
(b) Provides that the validity of an action is not affected
by the fact that it is taken when a ground for removal of a
commission member exists.
(c) Sets forth the required procedure if the executive
secretary of the commission (executive secretary) has
knowledge that a ground for removal exists.
Sec. 2.074. MEMBER TRAINING. (a) Requires the member to
complete a training program before assuming the member's
duties or being confirmed by the senate.
(b) Sets forth requirements for the commission's training
program.
SECTION 7. Amends Section 2.10, Article 179e, as follows:
Sec. 2.10. New heading: PRESIDING OFFICER. Requires the
governor to designate a public member, rather than just a
member, to serve as the presiding officer.
SECTION 8. Amends Section 2.11, Article 179e, V.T.C.S., by amending
Subsection (b) and adding Subsection (d), to delete a provision
providing that a majority of a section of the commission
constitutes a quorum for purposes of conducting that section's
business. Requires the commission, by rule, to develop and
implement policies that provide the public with an opportunity to
appear before the commission to speak on any issue under the
commission's jurisdiction.
SECTION 9. Amends Article 2, Article 179e, V.T.C.S., by adding
Sections 2.17-2.25, as follows:
Sec. 2.17. OPEN MEETINGS; ADMINISTRATIVE PROCEDURE. Subjects
the commission to Chapters 551 and 2001, Government Code.
Sec. 2.18. ANNUAL ACCOUNTING. Requires the commission to
prepare annually a report accounting for all funds received
and disbursed by the commission during the preceding fiscal
year. Requires the report to meet the applicable financial
reporting requirements.
Sec. 2.19. FUNDS PAID TO COMMISSION. Subjects all money paid
to the commission to Chapter 404F, Government Code.
Sec. 2.20. EMPLOYMENT PRACTICES. (a) Requires the executive
secretary or a designee to develop an intra-agency career
ladder program. Requires the program to require posting of
all positions concurrently with any public posting.
(b) Requires the executive secretary or a designee to
develop a system of annual performance evaluations.
Requires all merit pay for commission employees to be based
on the system.
(c) Requires the executive secretary or a designee to
prepare an equal employment opportunity policy statement
(statement). Sets forth requirements for the statement.
(d) Requires the statement to cover an annual period, be
updated annually, be reviewed by the Texas Commission on
Human Rights, and be filed with the governor's office.
(e) Requires the governor's office to deliver a biennial
report to the legislature based on the information received
in the statement. Authorizes the report to be made
separately or as a part of other reports.
Sec. 2.21. STANDARDS OF CONDUCT. Requires the executive
secretary or a designee to provide to members and employees
information regarding their qualification for office or
employment and their responsibilities relating to standards of
conduct.
Sec 2.22. DIVISION OF RESPONSIBILITY. Requires the
commission, by rule, to implement policies that separate the
policymaking responsibilities of the commission and the
management responsibilities of the executive secretary and the
commission staff.
Sec. 2.23. PROGRAM AND FACILITY ACCESSIBILITY. Requires the
commission to comply with federal and state laws related to
program and facility accessibility. Requires the executive
secretary to maintain a plan that describes now non-English
speakers can be provided access to the commission's programs
and services.
Sec. 2.24. INFORMATION TO PUBLIC. (a) Requires the
commission to prepare information describing the commission
functions and complaint filing procedures. Requires the
commission to make the information available to the public and
appropriate state agencies.
(b) Requires the commission, by rule, to establish methods
by which racetrack patrons are notified of the commission's
name, address, and telephone number for the purpose of
directing complaints to the commission. Sets forth
authorized methods for the commission to provide
notification.
Sec. 2.25. COMPLAINT HANDLING. (a) Sets forth information
the commission is required to keep on each complaint filed.
(b) Requires the commission to keep a file on each complaint
that the agency has the authority to resolve. Requires the
commission to provide to the person filing the complaint and
the persons or entities complained about the commission's
policies pertaining to complaint investigation and to notify
the parties of the complaint's status at least quarterly,
with an exception.
SECTION 10. Amends Section 3.02, Article 179e, V.T.C.S., as
follows:
Sec. 3.02. REGULATION AND SUPERVISION. (a) Requires the
commission to make rules, issue racetrack licenses (licenses),
and take any other necessary action relating exclusively to
racing.
(b) Authorizes the commission to establish separate sections
to review or propose rules of the commission.
(c) Requires the commission or a section of the commission
(section) to hold a meeting on any proposed rule before the
commission publishes the rule in the Texas Register.
(d) Requires the commission to post notice with an agenda
and summary of the proposed rule of a meeting at each
racetrack facility (facility).
(e) Requires a copy of a proposed rule published in the
Texas Register to be posted concurrently at each facility.
(f) Authorizes the commission or a section to appoint a
committee of parties to advise the commission or section of
the commission about a proposed rule of the commission.
(g) Sets forth requirements for the commission to consider
in adopting rules in the supervision and conduct of racing.
(h) Requires the commission to adopt rules relating to the
location of and hours of operation of a lottery ticket sales
agent operating at a racetrack.
SECTION 11. Amends Section 3.021, Article 179e, V.T.C.S., by
amending Subsection (b) and adding Subsection (d), as follows:
(b) Deletes a provision requiring the commission to adopt
rules to promote the orderly growth of racing within the
state.
(d) Prohibits the commission from adopting rules restricting
competitive bidding or advertising by a licensee except to
prohibit false, misleading, or deceptive practices. Sets
forth prohibitions regarding rules prohibiting false,
misleading, or deceptive practices.
SECTION 12. Amends Section 3.03, Article 179e, V.T.C.S., to
authorize certain parties to enter any part of the facility, rather
than the office or the racetrack.
SECTION 13. Amends Section 3.07(a), Article 179e, V.T.C.S., to
require the commission to employ all of the judges and stewards for
the supervision of a race meeting, one of which shall be the
presiding steward or judge for each meeting. Requires the
commission to publish a list of stewards and judges approved by the
commission and who are eligible to serve at the race meeting. Sets
forth the required procedure for using the list to designate the
stewards or judges. Authorizes the commission, by rule, to impose
a fee on a racing association (association) to offset the costs of
compensating the stewards, judges, and state veterinarians. Makes
conforming changes.
SECTION 14. Amends Section 3.09, Article 179e, V.T.C.S., by
amending Subsection (b) and adding Subsection (c), as follows:
(b) Created from existing Subsection (b).
(c) Created from existing Subsection (b). Provides that the
rate of interest on any appropriated amount the commission is
required to repay to the General Revenue Fund is 6-3/4 percent
interest per year with all payments first attributable to
interest. Requires the commission to yearly repay to the fund
an amount designated in the appropriations act covering the
year the repayment is to be made. Requires the comptroller to
credit to the repayment to the fund an amount equal to 20
percent of the state tax revenue generated by racing during
the previous year. Provides that the comptroller's duty to
make the credit expires on retirement of the amount to be
repaid to the General Revenue Fund. Authorizes this credit to
be combined with any other repayment to comply with the
requirements of this subsection.
SECTION 15. Amends Article 3, Article 179e, V.T.C.S., by adding
Sections 3.13-3.16, as follows:
Sec. 3.13. RECOGNITION OF ORGANIZATION. (a) Requires the
commission, by rule, to adopt criteria to recognize an
organization to represent members of a segment of the racing
industry in any interaction between the members and a
racetrack facility or the commission.
(b) Authorizes the commission to recognize an organization
that meets the requirements of Subsection (a).
(c) Prohibits any organization recognized by the commission
to represent horsemen at a racetrack from also being an
entity named in Section 9.02.
Sec. 3.14. DISCIPLINARY ACTIONS. Requires the commission to
revoke, suspend, or refuse to renew a license, place on
probation a person whose license has been suspended, or
reprimand a licensee for a violation of this Act or a
commission rule. Authorizes the commission to require the
licensee to report regularly to the commission on matters that
are the basis of the probation.
Sec. 3.15. HEARING REQUIREMENTS. Entitles a penalized person
to a hearing conducted by the State Office of Administrative
Hearings. Provides that proceedings, other than those
conducted by racing stewards or judges, are governed by the
administrative procedure law. Prohibits rules of practice
adopted by the commission applicable to the proceedings, other
than those conducted by racing stewards or judges from
conflicting with rules adopted by the State Office of
Administrative Hearings.
Sec. 3.16. RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
(a) Requires the commission to adopt rules prohibiting a
person from unlawfully influencing or affecting the outcome of
a race.
(b) Authorizes the commission to require prerace testing and
requires the commission to require postrace testing to
determine whether a prohibited substance has been used.
Authorizes the testing to be by an invasive or noninvasive
method. Requires the commission's rules to require state-of-the-art testing methods.
(c) Authorizes a steward or judge to summarily suspend a
person who has used the prohibited device or substance until
a hearing before the stewards and judges. Authorizes the
steward or judge to disqualify an animal pursuant to a
commission rule adopted under this section.
(d) Authorizes a person to appeal a ruling of the stewards
or judges to the commission. Authorizes the commission to
stay a summary suspension during the period the matter is
before the commission.
(e) Authorizes the commission to require urine samples to be
frozen for a period to allow any follow-up testing to detect
and identify a prohibited substance. Requires any other
specimen to be maintained for testing purposes in a manner
required by commission rule.
(f) Requires an entire test sample that shows the presence
of a prohibited substance to be maintained until final
disposition of the matter.
(g) Entitles a license holder whose animal test shows the
presence of a prohibited substance to have a split portion
of the sample tested at a testing facility authorized to
perform drug testing and selected by the license holder.
Requires the commission to adopt rules relating to split
testing procedures.
(h) Provides that the licensed trainer of each animal is
responsible for ensuring that no prohibited substance is
administered to the animal.
(i) Requires the commission to adopt rules relating to the
drug testing of license holders.
(j) Authorizes a person who violates a rule adopted under
this section to have any license issued to the person by the
commission revoked or suspended or be barred for any period
from applying for or receiving a license issued by the
commission or entering any portion of a facility.
SECTION 16. Amends Section 5.01(a), Article 179e, V.T.C.S., to
require the commission to provide each occupational licensee with
a license certificate or credentials.
SECTION 17. Amends Sections 5.03(a) and (b), Article 179e,
V.T.C.S.,
(a) Authorizes the Department of Public Safety (DPS) to
request any person owning any interest in an applicant for a
racetrack license to submit a complete set of fingerprints.
Makes conforming changes.
(b) Requires the commission, if a complete set of fingerprints
is required by the commission, to forward the prints to the
DPS or the Federal Bureau of Investigation. Makes conforming
changes.
SECTION 18. Amends Article 5, Article 179e, V.T.C.S., by adding
Section 5.05, as follows:
Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) Requires the
commission to set a license fee in an amount that will cover
the cost of conducting a criminal history check on the license
applicant.
(b) Requires the commission to reimburse the DPS for the
cost of conducting a criminal history check.
SECTION 19. Amends Section 6.01, Article 179e, V.T.C.S., to
prohibit a person from conducting wagering on a greyhound race or
a horse race meeting without first obtaining a racetrack license
from the commission, rather than wagering on the results without a
racetrack license.
SECTION 20. Amends Section 6.02(d), Article 179e, V.T.C.S., to
include a racetrack operated by a city in the definition of a class
3 racetrack.
SECTION 21. Amends Section 6.04(a), Article 179(e), V.T.C.S., to
delete a provision requiring the commission in determining whether
to grant or deny an application for any class of racetrack license,
to consider the degree to which certain factors regarding the
applicant's racetrack or proposed race meeting serve to nurture,
promote, develop, or improve the horse or greyhound industry in
this state.
SECTION 22. Amends Sections 6.06(a), (b), (e) and (f), Article
179(e), V.T.C.S. to delete a provision authorizing the commission
to adopt rules relating to license renewal applications.
Authorizes the commission to refuse to issue a racetrack license or
to revoke or suspend a license issued to a partnership, limited
partnership, among other issuants, if the commission finds that the
applicant has engaged in activities or practices that the
commission finds are detrimental to the public and to racing or an
applicant fails to fully disclose the true owners of all interests
in a proposed facility, among other infractions. Authorizes the
commission, rather than an appropriate section of the commission,
to condition the issuance of a license or refuse to issue, suspend,
or revoke a license under certain circumstances.
SECTION 23. Amends Section 6.06, Article 179e, V.T.C.S, by
adding Subsection (i), to provide that Subsections (a)(12), (c),
and (d) of this section do not apply to an applicant for or the
holder of a racetrack license if the applicant, holder, or the
holder's parent company is a publicly traded company and the
license applied for or held is for the operation of a racetrack
facility that is within 100 miles of the Mexican border.
SECTION 24. Amends Article 6, Article 179e, V.T.C.S., by adding
Sections 6.061 and 6.062, as follows:
Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFE CONDITIONS.
(a) Sets forth rules the commission is required to adopt to
implement this section.
(b) Requires the executive secretary to issue a notice of
violation to a racetrack facility on a finding that an
inappropriate or unsafe condition exists.
(c) Requires the executive secretary to order a racetrack
facility that has committed a violation to take action
within a specified period to remedy the condition. Requires
the executive secretary to consider the nature, severity,
and threat of the problem in determining the period for
compliance.
(d) Requires the commission to adopt rules requiring the
reporting of any corrective action taken by a racetrack
facility.
(e) Requires the executive secretary to initiate an
enforcement action against the racetrack facility if the
facility fails to take any action. Authorizes the executive
secretary to rescind any live or simulcast race date of any
association that does not take corrective action within the
proper period.
(f) Requires the commission to adopt rules relating to the
commission's review of an action taken by the executive
secretary. Requires the review procedure to be consistent
with Chapter 2001, Government Code.
Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) Requires
the commission to adopt a method of supervising and approving
the construction, renovation, or maintenance of any building
or improvement on the premises of a racetrack facility
(construction).
(b) Requires the commission to adopt certain rules relating
to the supervision or approval of racetrack facility
projects.
(c) Requires a representative of the association to appear
before the commission to consider the issue of compliance if
the commission has grounds to believe that an association
has failed to comply.
(d) Requires the commission to determine whether the
construction was completed in accordance with the approved
plans and whether other requirements were met.
(e) Requires the commission to initiate an enforcement
action if the association fails to comply with a requirement
or rule. Authorizes the commission to rescind any live or
simulcast race date of any association that has failed to
comply with the requirement of this section.
SECTION 25. Amends Section 6.08(l), Article 179e, V.T.C.S., to
prohibit an association from making a deduction or withholding any
percentage of a purse from the account into which the purse paid to
a horse owner is deposited for payments to any organization except
an organization of the owner's choice recognized by the commission
as an official representative of the horsemen licensed by the
commission.
SECTION 26. Amends Section 6.09, Article 179e, V.T.C.S., by
adding Subsection (f), to require the commission in adopting rules
relating to money paid to the commission for use by the state
greyhound breed registry (registry) to require the award of a grant
of two percent of the amount paid to the commission for use by the
registry to a person or entity for the rehabilitation of greyhounds
or to locate homes for greyhounds.
SECTION 27. Amends Section 6.091(a), Article 179e, to make a
conforming change.
SECTION 28. Amends Article 6, Article 179e, V.T.C.S., by adding
Section 6.092, as follows:
Sec. 6.092. OVERSIGHT OF USE OF FUNDS GENERATED BY PARI-MUTUEL RACING. (a) Requires the commission to adopt
performance measures for any funds distributed to or used by
or any function or service provided by any organization that
receives funds generated by pari-mutuel racing.
(b) Requires the commission to adopt the requirements or
performance measures after consultation with the affected
organization. Requires the commission, in adopting the
rules, to give consideration to the concerns of the affected
organization.
(c) Requires an independent audit to be conducted annually
of an organization receiving funds generated by pari-mutuel
racing. Requires a copy of the report to be sent to the
commission. Requires the audit to include a verification of
any performance report sent to or required by the
commission.
(d) Authorizes the commission to review any records or books
of an organization that submits an independent audit to the
commission to confirm or investigate the findings of an
audit or report.
(e) Requires the commission, by rule, to suspend or withhold
funds from an organization that has performed certain
actions.
SECTION 29. Amends Section 6.17(a), Article 179e, V.T.C.S., to
authorize a commissioners court to collect a fee up to 15 cents on
each paid admission, rather than as an admission fee, to a licensed
racetrack located within the county. Makes conforming changes.
SECTION 30. Amends Section 7.01, Article 179e, V.T.C.S., to make
conforming changes.
SECTION 31. Amends Section 7.02, Article 179e, V.T.C.S., by
amending Subsection (a) and adding Subsections (c) and (d), as
follows:
(a) Exempts a spectator or person placing a wager, rather than
just a spectator, from the requirement to obtain a license
under this article. Makes a conforming change.
(c) Requires the commission to notify within 30 days each
examinee of the examination results if an exam is required.
(d) Requires the commission to furnish the person with an
analysis of the person's performance on the examination if the
person fails.
SECTION 32. Amends Section 7.04, Article 179e, V.T.C.S., to
authorize the commission to refuse to issue any original or renewal
license or to revoke or suspend the license if it finds that the
applicant has improperly used a temporary pass, among other
infractions.
SECTION 33. Amends Section 7.05, Article 179e, V.T.C.S., as
follows:
Sec. 7.05. LICENSE FEES. (a)-(b) Created from existing text.
(c) Requires the commission, in setting its fee schedule, to
include the cost of criminal history checks. Authorizes the
commission to determine the best method for recouping this
cost and complying with the other provisions of this
section.
SECTION 34. Amends Section 7.07, Article 179e, V.T.C.S., as
follows
Sec. 7.07. TERM OF LICENSE. (a) Created from existing text.
(b) Authorizes the commission, by rule, to adopt a system
under which licenses expire on various dates during the
year. Requires fees to be prorated on a monthly basis so
that each licensee pays only that portion of the license fee
that is allocable to the number of months during which the
license is valid. Provides that the total renewal fee is
payable on renewal.
SECTION 35. Amends Article 7, Article 179e, V.T.C.S., by adding
Section 7.10, as follows:
Sec. 7.10. RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS. (a)
Authorizes the commission to waive any prerequisite to
obtaining a license for an applicant after reviewing the
applicant's credentials and determining that the applicant
holds a valid license from another state with similar
requirements.
(b) Authorizes the commission to waive any prerequisite to
obtaining a license for an applicant with a valid license
from another state with which Texas has a reciprocity
agreement. Authorizes the commission to enter into
reciprocal agreements with other states to allow for
licensing by reciprocity.
SECTION 36. Amends Section 9.01, Article 179e, V.T.C.S., to make
a conforming change.
SECTION 37. Amends Section 10.04, Article 179e, V.T.C.S., to
require the commission to adopt standards relating to the operation
of greyhound farms or other facilities where greyhounds are raised
for pari-mutuel racing. Makes a conforming change.
SECTION 38. Amends Section 11.011, Article 179e, V.T.C.S., by
amending Subsections (a), (c), (f), and (g), and adding Subsection
(h), as follows:
(a) Requires the commission to adopt rules to register pari-mutuel wagering on races conducted in simulcasting facilities,
among other places, both interstate and intrastate.
(c) Makes a conforming change.
(f) Makes a conforming change.
(g) Provides that wagering on a simulcast horse race at a
greyhound racetrack or on a simulcast greyhound race at a
horse racetrack is permissible only under the provisions of
Section 11.0115, rather than providing that nothing in this
Act is to be construed to allow this sort of wagering.
(h) Prohibits a simulcasting facility from being located in a
county where a class 2 or 3 racetrack conducts live racing,
unless the registry representing the horses running live at
the track agrees; or from being located in a county where a
class 2 or 3 racetrack that did not conduct live racing in
1995 is located, unless the racetrack agrees.
SECTION 39. Amends Article 11, Article 179e, V.T.C.S., by adding
Sections 11.0115-11.0117, as follows:
Sec. 11.0115. CROSS-SPECIES SIMULCAST. (a) Requires the
commission to adopt rules relating to the regulation of pari-mutuel wagering on races conducted by a greyhound track and
simulcast to a horse racing track, and by a horse track and
simulcast to a greyhound track.
(b) Requires, in the absence of an agreement between a
horseman's or kennel operator's or owner's organization at
the sending association and the organization at the
receiving association, 5 1/2 percent of the pari-mutuel
wagering pool to be deducted for purses and to be placed in
escrow until the formation of a contract. Requires interest
on the amount in escrow to be paid to the general revenue
fund and be for certain purposes.
(c) Requires the rules to require that the same percentage
of a simulcast pool conducted under this section be set
aside for the state and the Texas-bred program of the
registry of the sending association as is set aside for the
state and the Texas-bred program.
Sec. 11.0116. GENERAL SIMULCASTING REQUIREMENTS. (a)
Requires the commission to require that a track that presents
simulcasting be required to receive a simulcast from any other
licensed track association.
(b) Requires the commission to require a racing association
sending and an association receiving a simulcast to enter
into a contract regarding the among that may be charged.
Authorizes a receiving association to charge an amount equal
to three percent of the simulcast pari-mutuel pool at the
receiving association in the absence of an agreement.
Sec. 11.0117. SIMULCASTING FACILITY PILOT PROGRAM. (a)
Requires the commission to adopt rules to implement a pilot
program for the conduct of simulcasting at a simulcasting
facility. Authorizes the commission to allow the program to
operate only in certain counties.
(b) Requires the commission to adopt rules to allow and
regulate pari-mutuel wagering on intrastate and interstate
simulcast races at the simulcasting facility.
(c) Prohibits the commission from registering more than
three simulcasting facilities.
SECTION 40. Amends Section 11.04(c), Article 179e, V.T.C.S., by
amending Subsections (a) and (c) and adding Subsection (e), as
follows:
(a) Makes nonsubstantive changes.
(c) Requires the commission to prohibit patrons from using
automatic banking machines, with exceptions.
(e) Requires the commission to require an association that
allows the presence of a machine on the premises of the
racetrack to collect a fee of $1 for each transaction.
Requires the commission to adopt rules relating to the
collection, reporting, and auditing of that transaction fee.
Requires the fee to be forwarded to the commission and to be
used for certain purposes.
SECTION 41. Amends Section 11.06, Article 179e, V.T.C.S., to
authorize the rules to prohibit minors and children from certain
actions, and to except any conduct described as an affirmative
defense by Section 14.13 of this Act. Makes conforming changes.
SECTION 42. Amends Section 11.09, Article 179e, V.T.C.S., to
provide that the defense to prosecution under Chapter 47, Penal
Code, that the conduct was authorized under this Act, is available
only to persons lawfully conducting pari-mutuel wagering in
connection with racing or permitting the lawful conduct of certain
activities. Makes conforming changes.
SECTION 43. Amends Article 12, Article 179e, V.T.C.S., by adding
Section 12.04, as follows:
Sec. 12.04. CITY-OPERATED RACETRACK. Authorizes a city with
a population of 5,000 or more that owned a facility in 1986 to
conduct an annual race meeting if the meeting does not exceed
16 racing days.
SECTION 44. Amends Section 13.03, Article 179e, V.T.C.S., as
follows:
Sec. 13.03. New heading: CRIMINAL TRESPASS. Sets forth
circumstances under which a person is presumed to have
received notice that entry to an enclosure was forbidden.
Makes conforming changes.
SECTION 45. Amends Article 14, Article 179e, V.T.C.S., as
follows:
ARTICLE 14. New heading: CRIMINAL OFFENSES
Sec. 14.01. TOUTING. (a) Makes nonsubstantive changes.
(b) Provides that an offense under this section is a Class
A misdemeanor, rather than a third degree felony.
(c) Provides that an offense is a state jail felony, rather
than a second degree felony, if the actor is a license
holder or an employee or member of the commission and the
actor knowingly represents that a member or employee of the
commission or person licensed by the commission is the
source of the false information or the false statement or
the information was contained in racing selection
information provided to the public. Deletes provisions
providing that it is second degree felony if the actor has
been previously convicted of certain offenses. Deletes
existing Subsection (d). Makes conforming changes.
Sec. 14.02. New heading: UNLAWFUL POSSESSION OR USE OF
CREDENTIAL. (a) Makes nonsubstantive changes.
(b) Provides that an offense under this section is a Class
C misdemeanor, rather than a third degree felony. Deletes
existing Subsection (c). Deletes existing Section 14.03.
Sec. 14.04. ILLEGAL ACCESS. Provides that a person commits
an offense if the person is a license holder and the person
knowingly or intentionally permits, facilitates, or allows
access to an enclosure to another person who the person knows
is excluded by the commission from entering a facility or
engages in other actions. Provides that an offense under this
section is a Class B misdemeanor, rather than a third degree
felony. Makes conforming changes.
Sec. 14.05. Makes no changes.
Sec. 14.06. FALSE STATEMENTS. (a) Provides that a person
commits an offense if the person knowingly (rather than
intentionally, knowingly, recklessly, or with criminal
negligence) makes a material and false, incorrect, or
deceptive statement to another who is conducting an
investigation or exercising discretion under this Act or a
commission rule.
(b) Redefines "statement."
(c) Provides that an offense under this section is a state
jail felony unless the statement was material in a
commission action relating to a racetrack license, in which
event, the offense is a third degree felony.
Sec. 14.07. New heading: HINDERING OF ENTRY OR SEARCH. (a)
Created from existing text. Makes conforming changes.
(b) Provides that a person commits an offense if the person
with criminal negligence refuses, denies, hinders,
interrupts, disrupts, impedes, or otherwise interferes with
a search by a person exercising a power to search under this
Act or a commission rule.
(c) Redesignates existing Subsection (b).
Sec. 14.08. FORGING PARI-MUTUEL TICKET. (a) Provides that a
person commits an offense if the person intentionally or
knowingly forges a pari-mutuel ticket with the intent to
defraud or harm another.
(b) Defines "forge."
(c) Provides that an offense under this section is a third
degree felony.
Sec. 14.09. IMPERSONATING A LICENSE HOLDER. (a)-(b) Provide
that a person commits a Class A misdemeanor if the person
impersonates a license holder with the intent to induce
another person to submit to the actor's purported authority as
a license holder or to rely on the actor's actions as an
alleged license holder.
Sec. 14.10. UNLAWFUL INFLUENCE ON RACING. (a) Provides that
a person commits an offense if the person possesses a
prohibited device or substance on a facility.
(b) Provides that an offense under Subsection (a) is a state
jail felony, unless the actor possessed the device or
substance with the intent to influence the outcome of a race
in a manner contrary to this Act or a commission rule
(intent to influence a race), in which event it is a third
degree felony.
(c)-(d) Provide that a person commits a third degree felony
offense if, with the intent to influence a race, the person
uses or offers to use a prohibited device or substance.
Sec. 14.11. BRIBERY AND CORRUPT INFLUENCE. (a) Provides that
a person commits an offense if, with the intent to influence
a race, the person offers, confers, agrees to accept from
another person any benefit as consideration for the actions of
a person who receives the benefit relating to the conduct,
decision, opinion, recommendation, vote, or exercise of
discretion as a license holder or other person associated with
or interest in any stable, kennel, horse, greyhound, or race.
(b) Provides that an offense under this section is a state
jail felony, unless the recipient is a racetrack official
for the race that the person intended to influence, in which
case it is a felony of the third degree.
Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. Provides that a
person who is a member commits an offense if the person
engages in certain actions.
Sec. 14.13. OFFENSES INVOLVING A MINOR. (a)-(b) Provide that
a person commits a Class B misdemeanor if the person with
criminal negligence permits, facilitates, or allows wagering
by a minor at a facility or entry by a child to the viewing
section of a facility.
(c)-(d) Provide that a person commits Class C misdemeanor if
the person is a minor and intentionally or knowingly engages
in wagering at a racetrack.
(e) Provides that it is an affirmative defense to
prosecution under this section that a child was accompanied
by and was in the physical presence of a custodian or spouse
who was 18 years of age or older.
(f) Provides that it is an affirmative defense to
prosecution of an offense under Subsection (a) that the
minor falsely represented the minor's age in a certain
manner.
Sec. 14.14. UNLAWFUL RACING. Provides that a person commits
an offense if the person performs certain actions regarding
the conduct of unlawful racing.
Sec. 14.15. PARI-MUTUEL RACING WITHOUT LICENSE. (a) Provides
that the person commits an offense if, without a license, the
person participates or is otherwise involved in pari-mutuel
wagering.
(b) Provides that it is an affirmative defense to
prosecution under Subsection (a) that the actor was a
spectator or a person placing a wager.
(c) Provides that an offense is a Class A misdemeanor,
unless the actor was required to obtain a racetrack license,
in which event it is a state jail felony.
Sec. 14.16. RACING WITHOUT LICENSE. Provides that a person
commits a third degree felony if the person conducts a race
without a racetrack license and knows that another person is
betting on the final or partial outcome of the race.
Sec. 14.17. FAILURE TO DISPLAY CREDENTIAL. (a)-(c) Provide
that a person commits a Class B misdemeanor if the person
fails or refuses to display a credential or identifying
information to another after a lawful request. Define "lawful
request."
(d) Authorizes the defendant to raise an issue as to whether
the defendant was a license holder at the time of the
offense at the punishment stage for an offense under
Subsection (a)(1). Provides that if the defendant proves
the issue, the offense is a Class C misdemeanor.
Sec. 14.18. SEARCH AND SEIZURE. (a) Sets forth circumstances
under which a person consents to a search at a certain time
and location for a prohibited device, substance, or other
contraband.
(b) Authorizes a search to be conducted by a member, an
agent of the commission, a commission officer of the DPS, a
peace officer, or a steward or judge at any time and at any
location that is on a facility, except a location excluded
by commission rule from searches or provided by an
association under commission rule for private storage.
(c) Authorizes a person conducting a search to seize any
contraband discovered during the search.
Sec. 14.19. PROSECUTION. Authorizes a person who is subject
to prosecution for a penal offense under this Act and another
law to be prosecuted under either law.
Sec. 14.20. COMMISSION AUTHORITY. Prohibits this article
from being construed to restrict the commission's
administrative authority to enforce this Act or commission
rules.
SECTION 46. Amends Section 15.01, Article 179e, V.T.C.S., to
provide that if no specific penalty is provided for a provision of
this Act that is an offense, a person who violates the provision
commits a state jail felony, rather than a third degree felony.
Makes conforming changes.
SECTION 47. Amends Section 18.01(a), Article 179e, V.T.C.S., to
provide that unless continued in existence and except as provided
by Subsections (b) and (c), the commission is abolished and this
Act expires September 1, 2001, rather than 1995.
SECTION 48. Amends Article 18, Article 179e, V.T.C.S., by adding
Section 18.08, as follows:
Sec. 18.08. DISTANCE LEARNING. Authorizes the commission to
provide assistance to members of the racing industry who are
attempting to develop adult or continuing education programs
that use distance learning.
SECTION 49. Amends Section 466.155(a), Government Code, to
require the director to deny an application for a license or the
commission, rather than the comptroller, to suspend or revoke a
license if the director of the lottery division (director) or
commission finds that the applicant or sales agent is an officer or
employee of the commission or a lottery operator or is a close
relative residing as a member of the same household in the
principal place of an officer or employee or a lottery operator,
among other persons. Deletes provisions requiring a license
application to be denied, or a license suspended or revoked if the
applicant is not an individual, and an individual described by
Subdivision (1) is an employee of the applicant or sales agent who
will be involved in ticket sales or is a person who location for
the sales agency is a racetrack at which wagering is authorized.
Makes conforming changes.
SECTION 50. Amends Section 481.172, Government Code, to require
the Texas Department of Commerce to promote and encourage the
racing industry, if funds are appropriated for the promotion or
encouragement.
SECTION 51. Amends Chapter 46, Penal Code, by adding Section
46.115, as follows:
Sec. 46.115. EXEMPTION. Provides that Sections 46.02 and
46.03 do not prohibit a peace officer from carrying a weapon
at a racetrack at which wagering is authorized.
SECTION 52. Repealer: Sections 2.07, 3.01, 11.04(d), 15.02, and
18.02, Article 179e, V.T.C.S. (Prohibited Conduct-Commission
Sections-relating to Wagering Inside and Enclosure-Person Defined-Application of Administrative Procedure and Texas Register Act).
SECTION 53. (a) Effective date: September 1, 1995.
(b) Provides that the changes in law made by this Act relating
to the qualifications and appointment of members do not affect
the entitlement of a member serving immediately before the
effective date to continue to serve on the commission for the
term to which the member was appointed. Requires the governor
to make appointments to the commission to achieve the
membership plan described for the commission by the Texas
Racing Act as the terms of members expire or as vacancies on
the commission occur.
(c) Requires the commission to review all of the commission
rules and to readopt, modify, or repeal the rules before
January 1, 1998. Requires the commission to attempt to have
uniform approaches to the regulation of activities related to
racing.
(d) Transfers the authority for rulemaking and licensing and
for any action relating exclusively to racing that was granted
to a separate section of the commission to the commission.
SECTION 54. Makes application of this Act prospective.
SECTION 55. Emergency clause.