By Gray, Black, Wilson                                H.B. No. 1305
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the continuation and functions of the Texas Racing
    1-3  Commission and to the transfer of certain commission functions to
    1-4  the Texas Department of Commerce; creating a criminal offense;
    1-5  providing a criminal penalty.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Section 1.02, Texas Racing Act (Article 179e,
    1-8  Vernon's Texas Civil Statutes), is amended to read as follows:
    1-9        Sec. 1.02.  Purposes.  The purpose <purposes> of this Act is
   1-10  <are> to <encourage agriculture, the horse-breeding industry, the
   1-11  horse-training industry, the greyhound-breeding industry, tourism,
   1-12  and employment opportunities in this state related to horse racing
   1-13  and greyhound racing and to> provide for the strict regulation of
   1-14  horse racing and greyhound racing and the control of pari-mutuel
   1-15  wagering in connection with that racing.
   1-16        SECTION 2.  Section 1.03, Texas Racing Act (Article 179e,
   1-17  Vernon's Texas Civil Statutes), is amended by adding Subdivisions
   1-18  (67)-(73) to read as follows:
   1-19              (67)  "Racetrack facility" means a facility operated by
   1-20  an association within its enclosure for the purpose of presenting
   1-21  races for pari-mutuel wagering.
   1-22              (68)  "Child" means a person younger than 16 years of
   1-23  age.
   1-24              (69)  "Minor" means a person younger than 21 years of
    2-1  age.
    2-2              (70)  "Contraband" means:
    2-3                    (A)  any item or thing the possession of which is
    2-4  unlawful under this Act, a commission rule, or other law;
    2-5                    (B)  any item or thing that might reasonably have
    2-6  the effect of unnaturally depressing, stimulating, or exciting an
    2-7  animal during a race in a manner contrary to this Act or commission
    2-8  rule, including a prohibited device or substance; or
    2-9                    (C)  a document, including a credential or forged
   2-10  ticket, possessed by an individual or used by an individual in
   2-11  violation of this Act or a commission rule.
   2-12              (71)  "Prohibited device" means:
   2-13                    (A)  a spur or an electrical or other device
   2-14  prohibited by a commission rule regulating the unlawful influence
   2-15  of a race; or
   2-16                    (B)  a device specifically designed, made, or
   2-17  adapted to influence or affect the outcome of a race in a manner
   2-18  contrary to this Act or a commission rule.
   2-19              (72)  "Prohibited substance" means a drug, chemical,
   2-20  medication, stimulant, depressant, or other substance, including a
   2-21  syringe or other device used to administer a prohibited substance,
   2-22  that, in its use or intended use, is capable of influencing or
   2-23  affecting the outcome of a race in a manner contrary to this Act or
   2-24  a commission rule.
   2-25              (73)  "Unlawful touting" means an offense described by
   2-26  Section 14.01 of this Act or a similar offense under the laws of
   2-27  another state.
    3-1        SECTION 3.  Section 2.02, Texas Racing Act (Article 179e,
    3-2  Vernon's Texas Civil Statutes), is amended to read as follows:
    3-3        Sec. 2.02.  Membership.  (a)  The commission consists of six
    3-4  members appointed by the governor with the advice and consent of
    3-5  the senate and two ex officio members who shall have the right to
    3-6  vote.  The ex officio members are the chairman of the Public Safety
    3-7  Commission and the comptroller of public accounts.  <In making
    3-8  appointments to the commission, the governor shall strive to
    3-9  achieve representation by all the population groups of the state
   3-10  with regard to economic status, sex, race, and ethnicity.>
   3-11        (b)  Appointments to the commission shall be made without
   3-12  regard to the race, color, disability, sex, religion, age, or
   3-13  national origin of the appointees.  <One appointed member must be a
   3-14  veterinarian licensed to practice in this state who specializes in
   3-15  the treatment of small animals.  One appointed member must be a
   3-16  veterinarian licensed to practice in this state who specializes in
   3-17  the treatment of large animals.  Two appointed members must be
   3-18  individuals who are not veterinarians and who have special
   3-19  knowledge or experience related to greyhound racing.  Two appointed
   3-20  members must be individuals who are not veterinarians and who have
   3-21  special knowledge or experience related to horse racing.>
   3-22        <(c)  In making appointments to the commission, the governor
   3-23  shall attempt to reflect the minority groups found in the state's
   3-24  general populace.>
   3-25        SECTION 4.  Section 2.03, Texas Racing Act (Article 179e,
   3-26  Vernon's Texas Civil Statutes), is amended to read as follows:
   3-27        Sec. 2.03.  Term of office.  (a)  Appointed <Except for the
    4-1  initial appointments, appointed> members hold office for staggered
    4-2  terms of six years with two members' terms expiring February 1 of
    4-3  each odd-numbered year.  A member holds office until that member's
    4-4  successor is appointed and qualifies.
    4-5        (b)  <In making the initial appointments, the governor shall
    4-6  designate two appointed members for a term expiring February 1,
    4-7  1989, two for a term expiring February 1, 1991, and two for a term
    4-8  expiring February 1, 1993.  The governor shall make the initial
    4-9  appointments on or before February 1, 1987.>
   4-10        <(c)>  The ex officio members hold office on the commission
   4-11  for the time for which they hold their other offices.
   4-12        SECTION 5.  Section 2.05, Texas Racing Act (Article 179e,
   4-13  Vernon's Texas Civil Statutes), is amended to read as follows:
   4-14        Sec. 2.05.  Eligibility.  (a)  Four of the appointed members
   4-15  of the commission must be representatives of the general public and
   4-16  have general knowledge of business or agribusiness.  One additional
   4-17  appointed member must have special knowledge or experience related
   4-18  to greyhound racing and one additional appointed member must have
   4-19  special knowledge or experience related to horse racing.  A person
   4-20  is not eligible for appointment as a member of the commission if
   4-21  the person or the person's spouse:
   4-22              (1)  is licensed by the commission, except as a
   4-23  commissioner;
   4-24              (2)  is employed by the commission or participates in
   4-25  the management of a business entity or other organization regulated
   4-26  by the commission or receiving funds from or through the
   4-27  commission;
    5-1              (3)  owns or controls, directly or indirectly, more
    5-2  than a 10 percent interest in a business entity or other
    5-3  organization regulated by the commission or receiving funds from or
    5-4  through the commission; or
    5-5              (4)  uses or receives a substantial amount of tangible
    5-6  goods, services, or funds from or through the commission, other
    5-7  than compensation or reimbursement authorized by law for commission
    5-8  membership, attendance, or expenses.
    5-9        (b)  In addition to the eligibility requirements of
   5-10  Subsection (a), a <A> person is not eligible to be an appointed
   5-11  member of the commission if that person owns any financial interest
   5-12  in a racetrack or its operation or if that person is related within
   5-13  the second degree by affinity or the third degree by consanguinity,
   5-14  as determined under Subchapter B, Chapter 573, Government Code
   5-15  <Article 5996h, Revised Statutes>, to a person who owns any
   5-16  financial interest in a racetrack or its operation.
   5-17        (c)  Each person appointed to or employed by the commission
   5-18  is subject to all background checks and qualification criteria
   5-19  required to hold a racetrack license or other license under this
   5-20  Act.
   5-21        (d)  A person who has been convicted of a felony or of any
   5-22  crime involving moral turpitude is not eligible for appointment to
   5-23  the commission.
   5-24        SECTION 6.  Article 2, Texas Racing Act (Article 179e,
   5-25  Vernon's Texas Civil Statutes), is amended by adding Sections
   5-26  2.071-2.074 to read as follows:
   5-27        Sec. 2.071.  CONFLICT OF INTEREST.  (a)  An officer,
    6-1  employee, or paid consultant of a Texas trade association in the
    6-2  field of horse or greyhound racing or breeding may not be a member
    6-3  of the commission or employee of the commission who is exempt from
    6-4  the state's position classification plan or is compensated at or
    6-5  above the amount prescribed by the General Appropriations Act for
    6-6  step 1, salary group 17, of the position classification salary
    6-7  schedule.
    6-8        (b)  A person who is the spouse of an officer, manager, or
    6-9  paid consultant of a Texas trade association in the field of horse
   6-10  or greyhound racing or breeding may not be a member of the
   6-11  commission and may not be an employee of the commission who is
   6-12  exempt from the state's position classification plan or is
   6-13  compensated at or above the amount prescribed by the General
   6-14  Appropriations Act for step 1, salary group 17, of the position
   6-15  classification salary schedule.
   6-16        (c)  For the purposes of this section, a Texas trade
   6-17  association is a nonprofit, cooperative, and voluntarily joined
   6-18  association of business or professional competitors in this state
   6-19  designed to assist its members and its industry or profession in
   6-20  dealing with mutual business or professional problems and in
   6-21  promoting their common interest.
   6-22        Sec. 2.072.  LOBBYIST RESTRICTION.  A person may not serve as
   6-23  a member of the commission or act as the general counsel to the
   6-24  commission if the person is required to register as a lobbyist
   6-25  under Chapter 305, Government Code, because of the person's
   6-26  activities for compensation on behalf of a profession related to
   6-27  the operation of the commission.
    7-1        Sec. 2.073.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
    7-2  removal from the commission if a member:
    7-3              (1)  does not have at the time of appointment the
    7-4  qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
    7-5              (2)  does not maintain during service on the commission
    7-6  the qualifications required by Section 2.02 or 2.05 of this Act;
    7-7              (3)  violates a prohibition established by Section
    7-8  2.05, 2.07, 2.071, or 2.072 of this Act;
    7-9              (4)  cannot because of illness or disability discharge
   7-10  the member's duties for a substantial part of the term for which
   7-11  the member is appointed; or
   7-12              (5)  is absent from more than half of the regularly
   7-13  scheduled commission meetings that the member is eligible to attend
   7-14  during a calendar year unless the absence is excused by majority
   7-15  vote of the commission.
   7-16        (b)  The validity of an action of the commission is not
   7-17  affected by the fact that it is taken when a ground for removal of
   7-18  a commission member exists.
   7-19        (c)  If the executive secretary has knowledge that a
   7-20  potential ground for removal exists, the executive secretary shall
   7-21  notify the presiding officer of the commission of the potential
   7-22  ground.  The presiding officer shall then notify the governor and
   7-23  the attorney general that a potential ground for removal exists.
   7-24  If the potential ground for removal involves the presiding officer,
   7-25  the executive secretary shall notify the next highest officer of
   7-26  the commission, who shall notify the governor and the attorney
   7-27  general that a potential ground for removal exists.
    8-1        Sec. 2.074.  MEMBER TRAINING.  (a)  Before a member of the
    8-2  commission may assume the member's duties and before the member may
    8-3  be confirmed by the senate, the member must complete at least one
    8-4  course of the training program established by the commission under
    8-5  this section.
    8-6        (b)  A training program established under this section shall
    8-7  provide information to the member regarding:
    8-8              (1)  the enabling legislation that created the
    8-9  commission;
   8-10              (2)  the programs operated by the agency;
   8-11              (3)  the role and functions of the agency;
   8-12              (4)  the rules of the agency with an emphasis on the
   8-13  rules that relate to disciplinary and investigatory authority;
   8-14              (5)  the current budget for the agency;
   8-15              (6)  the results of the most recent formal audit of the
   8-16  agency;
   8-17              (7)  the requirements of the:
   8-18                    (A)  open meetings law, Chapter 551, Government
   8-19  Code;
   8-20                    (B)  open records law, Chapter 552, Government
   8-21  Code; and
   8-22                    (C)  administrative procedure law, Chapter 2001,
   8-23  Government Code;
   8-24              (8)  the requirements of the conflict of interest laws
   8-25  and other laws relating to public officials; and
   8-26              (9)  any applicable ethics policies adopted by the
   8-27  agency or the Texas Ethics Commission.
    9-1        SECTION 7.  Section 2.10, Texas Racing Act (Article 179e,
    9-2  Vernon's Texas Civil Statutes), is amended to read as follows:
    9-3        Sec. 2.10.  PRESIDING OFFICER <CHAIRMAN>.  The governor shall
    9-4  designate a public <one> member of the commission as the presiding
    9-5  officer <chairman> of the commission to serve in that capacity at
    9-6  the pleasure of the governor.
    9-7        SECTION 8.  Section 2.11, Texas Racing Act (Article 179e,
    9-8  Vernon's Texas Civil Statutes), is amended by amending Subsection
    9-9  (b) and adding Subsection (d) to read as follows:
   9-10        (b)  A majority of the commission constitutes a quorum.  <A
   9-11  majority of a section of the commission constitutes a quorum for
   9-12  purposes of conducting business related to matters under the
   9-13  exclusive jurisdiction of that section.>
   9-14        (d)  The commission shall, by rule, develop and implement
   9-15  policies that provide the public with a reasonable opportunity to
   9-16  appear before the commission and to speak on any issue under the
   9-17  jurisdiction of the commission.
   9-18        SECTION 9.  Article 2, Texas Racing Act (Article 179e,
   9-19  Vernon's Texas Civil Statutes), is amended by adding Sections
   9-20  2.17-2.25 to read as follows:
   9-21        Sec. 2.17.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  The
   9-22  commission is subject to the open meetings law, Chapter 551,
   9-23  Government Code, and the administrative procedure law, Chapter
   9-24  2001, Government Code.
   9-25        Sec. 2.18.  ANNUAL ACCOUNTING.  The commission shall prepare
   9-26  annually a complete and detailed written report accounting for all
   9-27  funds received and disbursed by the commission during the preceding
   10-1  fiscal year.  The annual report must meet the reporting
   10-2  requirements applicable to financial reporting provided in the
   10-3  General Appropriations Act.
   10-4        Sec. 2.19.  FUNDS PAID TO COMMISSION.  All money paid to the
   10-5  commission under this Act is subject to Subchapter F, Chapter 404,
   10-6  Government Code.
   10-7        Sec. 2.20.  EMPLOYMENT PRACTICES.  (a)  The executive
   10-8  secretary or the executive secretary's designee shall develop an
   10-9  intra-agency career ladder program that addresses opportunities for
  10-10  mobility and advancement for employees within the commission.  The
  10-11  program shall require intra-agency posting of all positions
  10-12  concurrently with any public posting.
  10-13        (b)  The executive secretary or the executive secretary's
  10-14  designee shall develop a system of annual performance evaluations
  10-15  that are based on documented employee performance.  All merit pay
  10-16  for commission employees must be based on the system established
  10-17  under this subsection.
  10-18        (c)  The executive secretary or the executive secretary's
  10-19  designee shall prepare and maintain a written policy statement to
  10-20  assure implementation of a program of equal employment opportunity
  10-21  under which all personnel transactions are made without regard to
  10-22  race, color, disability, sex, religion, age, or national origin.
  10-23  The policy statement must include:
  10-24              (1)  personnel policies, including policies relating to
  10-25  recruitment, evaluation, selection, appointment, training, and
  10-26  promotion of personnel that are in compliance with the requirements
  10-27  of Chapter 21, Labor Code;
   11-1              (2)  a comprehensive analysis of the commission
   11-2  workforce that meets federal and state guidelines;
   11-3              (3)  procedures by which a determination can be made
   11-4  about the extent of underuse in the commission workforce of all
   11-5  persons for whom federal or state guidelines encourage a more
   11-6  equitable balance; and
   11-7              (4)  reasonable methods to appropriately address those
   11-8  areas of underuse.
   11-9        (d)  A policy statement prepared under Subsection (c) of this
  11-10  section must cover an annual period, be updated annually and
  11-11  reviewed by the Texas Commission on Human Rights for compliance
  11-12  with Subsection (c)(1) of this section, and be filed with the
  11-13  governor's office.
  11-14        (e)  The governor's office shall deliver a biennial report to
  11-15  the legislature based on the information received under Subsection
  11-16  (d) of this section.  The report may be made separately or as a
  11-17  part of other biennial reports made to the legislature.
  11-18        Sec. 2.21.  STANDARDS OF CONDUCT.  The executive secretary or
  11-19  the executive secretary's designee shall provide to members of the
  11-20  commission and to agency employees, as often as necessary,
  11-21  information regarding their qualification for office or employment
  11-22  under this Act and their responsibilities under applicable laws
  11-23  relating to standards of conduct for state officers or employees.
  11-24        Sec. 2.22.  DIVISION OF RESPONSIBILITY.  The commission
  11-25  shall, by rule, develop and implement policies that clearly
  11-26  separate the policymaking responsibilities of the commission and
  11-27  the management responsibilities of the executive secretary and the
   12-1  staff of the commission.
   12-2        Sec. 2.23.  PROGRAM AND FACILITY ACCESSIBILITY.  The
   12-3  commission shall comply with federal and state laws related to
   12-4  program and facility accessibility.  The executive secretary shall
   12-5  also prepare and maintain a written plan that describes how a
   12-6  person who does not speak English can be provided reasonable access
   12-7  to the commission's programs and services.
   12-8        Sec. 2.24.  INFORMATION TO PUBLIC.  (a)  The commission shall
   12-9  prepare information of public interest describing the functions of
  12-10  the commission and the procedures by which complaints are filed
  12-11  with and resolved by the commission.  The commission shall make the
  12-12  information available to the public and appropriate state agencies.
  12-13        (b)  The commission by rule shall establish methods by which
  12-14  racetrack patrons are notified of the name, mailing address, and
  12-15  telephone number of the commission for the purpose of directing
  12-16  complaints to the commission.  The commission may provide for that
  12-17  notification:
  12-18              (1)  on every race performance program provided by each
  12-19  racetrack association; or
  12-20              (2)  on signs prominently displayed in the common
  12-21  public areas on the premises of each racetrack association.
  12-22        Sec. 2.25.  COMPLAINT HANDLING.  (a)  The commission shall
  12-23  keep information about each complaint filed with the commission.
  12-24  The information shall include:
  12-25              (1)  the date the complaint is received;
  12-26              (2)  the name of the complainant;
  12-27              (3)  the subject matter of the complaint;
   13-1              (4)  a record of all persons contacted in relation to
   13-2  the complaint;
   13-3              (5)  a summary of the results of the review or
   13-4  investigation of the complaint; and
   13-5              (6)  for complaints for which the agency took no
   13-6  action, an explanation of the reason the complaint was closed
   13-7  without action.
   13-8        (b)  The commission shall keep a file about each written
   13-9  complaint filed with the commission that the agency has authority
  13-10  to resolve.  The commission shall provide to the person filing the
  13-11  complaint and the persons or entities complained about the
  13-12  commission's policies and procedures pertaining to complaint
  13-13  investigation and resolution.  The commission, at least quarterly
  13-14  and until final disposition of the complaint, shall notify the
  13-15  person filing the complaint and the persons or entities complained
  13-16  about of the status of the complaint unless the notice would
  13-17  jeopardize an undercover investigation.
  13-18        SECTION 10.  Section 3.02, Texas Racing Act (Article 179e,
  13-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  13-20        Sec. 3.02.  Regulation and supervision.  (a)  The <In
  13-21  accordance with Section 3.01 of this Act, the> commission shall
  13-22  regulate and supervise every race meeting in this state involving
  13-23  wagering on the result of greyhound or horse racing.  All persons
  13-24  and things relating to the operation of those meetings are subject
  13-25  to regulation and supervision by the commission.  The commission
  13-26  shall adopt rules for conducting greyhound or horse racing in this
  13-27  state involving wagering and shall adopt other rules to administer
   14-1  this Act that are consistent with this Act.  The commission shall
   14-2  also make rules, issue licenses, and take any other necessary
   14-3  action relating exclusively to horse racing or to greyhound racing.
   14-4  A majority vote of the members of the commission is necessary for
   14-5  any commission decision.
   14-6        (b)  The commission may establish separate sections to review
   14-7  or propose rules of the commission.
   14-8        (c)  The commission or a section of the commission shall hold
   14-9  a meeting on any proposed rule before the commission publishes the
  14-10  proposed rule in the Texas Register.
  14-11        (d)  The commission shall post notice of a meeting under
  14-12  Subsection (c) of this section at each racetrack facility.  The
  14-13  notice shall include an agenda of the meeting and a summary of the
  14-14  proposed rule.
  14-15        (e)  A copy of a proposed rule published in the Texas
  14-16  Register shall also be posted concurrently at each racetrack
  14-17  facility.
  14-18        (f)  The commission or a section of the commission may
  14-19  appoint a committee of experts, members of the public, or other
  14-20  interested parties to advise the commission or section of the
  14-21  commission about a proposed rule of the commission.
  14-22        (g)  The commission, in adopting rules and in the supervision
  14-23  and conduct of racing, shall consider the effect of a proposed
  14-24  commission action on the state's agricultural, horse breeding,
  14-25  horse training, greyhound breeding, and greyhound training
  14-26  industry.
  14-27        SECTION 11.  Section 3.021, Texas Racing Act (Article 179e,
   15-1  Vernon's Texas Civil Statutes), is amended by amending Subsection
   15-2  (b) and adding Subsection (d) to read as follows:
   15-3        (b)  To protect the health, safety, and welfare of race
   15-4  animals and participants in racing, to safeguard the interest of
   15-5  the general public, and to promote the orderly <growth and> conduct
   15-6  of racing within the state, the commission may adopt rules for the
   15-7  licensing and regulation of races and workouts at racetracks that
   15-8  do not offer pari-mutuel wagering and for workouts at training
   15-9  facilities to secure past performances and workouts.
  15-10        (d)  The commission may not adopt rules restricting
  15-11  competitive bidding or advertising by a licensee except to prohibit
  15-12  false, misleading, or deceptive practices.  In its rules to
  15-13  prohibit false, misleading, or deceptive practices, the commission
  15-14  may not include a rule that:
  15-15              (1)  restricts the use of any medium for advertising;
  15-16              (2)  restricts the use of a licensee's personal
  15-17  appearance or voice in an advertisement;
  15-18              (3)  relates to the size or duration of an
  15-19  advertisement by the licensee; or
  15-20              (4)  restricts the licensee's advertisement under a
  15-21  trade name.
  15-22        SECTION 12.  Section 3.03, Texas Racing Act (Article 179e,
  15-23  Vernon's Texas Civil Statutes), is amended to read as follows:
  15-24        Sec. 3.03.  Power of entry.  A member of the commission, an
  15-25  authorized agent of the commission, a commissioned officer of the
  15-26  Department of Public Safety, or a peace officer of the local
  15-27  jurisdiction in which the association maintains a place of business
   16-1  may enter any part of the racetrack facility <the office,
   16-2  racetrack,> or any other place of business of an association at any
   16-3  time for the purpose of enforcing and administering this Act.
   16-4        SECTION 13.  Section 3.07(a), Texas Racing Act (Article 179e,
   16-5  Vernon's Texas Civil Statutes), is amended to read as follows:
   16-6        (a)  The commission shall employ all of the judges and all of
   16-7  the stewards for the supervision of a horse race or greyhound race
   16-8  meeting.  Each horse race or greyhound race meeting shall be
   16-9  supervised by three stewards <approved by the commission> for horse
  16-10  racing or by three judges <approved by the commission> for
  16-11  greyhound racing.  Before each race meeting, the commission shall
  16-12  publish a list of stewards and judges approved by the commission
  16-13  and who are eligible to serve at the race meeting.  The commission
  16-14  shall forward the list to the association holding the race meeting
  16-15  and shall give the association an opportunity to review and comment
  16-16  on the list.  The commission, after review of the association's
  16-17  comments and after consultation with the association, shall
  16-18  designate the stewards or judges and shall designate one of the
  16-19  stewards or judges as the presiding steward or judge for each race
  16-20  meeting.  <The commission shall employ one of the stewards who
  16-21  supervises a horse race meeting who shall be the presiding steward.
  16-22  The other stewards at the race meeting shall be compensated by the
  16-23  association.  The commission shall employ one of the judges who
  16-24  supervises a greyhound race meeting who shall be the presiding
  16-25  judge; the other judges at such a race meeting shall be compensated
  16-26  by the association.>  For each race meeting, the commission shall
  16-27  employ <appoint> at least one state veterinarian <who shall be
   17-1  compensated by the commission>. <The commission by rule shall
   17-2  determine the amount of compensation for stewards, judges, and
   17-3  state veterinarians who are required to be compensated by the
   17-4  commission.>  The commission may, by rule, impose a fee on an
   17-5  association to offset the costs of compensating the <racetrack>
   17-6  stewards, judges, and state veterinarians <for that association>.
   17-7  The amount of the fee for the compensation of stewards, judges, and
   17-8  state veterinarians must be reasonable according to industry
   17-9  standards for the compensation of those officials at other
  17-10  racetracks and may not exceed the actual cost to the commission for
  17-11  compensating the officials.  All other racetrack officials shall be
  17-12  appointed by the association, with the approval of the commission.
  17-13  Compensation for those officials not compensated by the commission
  17-14  shall be determined by the association.
  17-15        SECTION 14.  Section 3.08, Texas Racing Act (Article 179e,
  17-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  17-17        Sec. 3.08.  APPEAL FROM DECISION OF STEWARDS OR JUDGES.  A
  17-18  <(a)  Except as provided by Subsection (b) of this section, a final
  17-19  decision of the stewards or judges may be appealed to the
  17-20  commission in the manner provided for a contested case under the
  17-21  Administrative Procedure and Texas Register Act (Article 6252-13a,
  17-22  Vernon's Texas Civil Statutes).>
  17-23        <(b)  In determining the distribution to holders of winning
  17-24  tickets in a pari-mutuel pool, a> decision of the stewards or
  17-25  judges on a disqualification for a foul in a race or on a finding
  17-26  of fact regarding the running of a race is final and may not be
  17-27  appealed.
   18-1        SECTION 15.  Section 3.09, Texas Racing Act (Article 179e,
   18-2  Vernon's Texas Civil Statutes), is amended by amending Subsection
   18-3  (b) and adding Subsection (c) to read as follows:
   18-4        (b)  The commission shall deposit the money it collects under
   18-5  this Act in the State Treasury to the credit of a special fund to
   18-6  be known as the Texas Racing Commission fund.  The Texas Racing
   18-7  Commission fund may be appropriated only for the administration and
   18-8  enforcement of this Act.  Any unappropriated money remaining in
   18-9  that special fund at the close of each fiscal biennium shall be
  18-10  transferred to the General Revenue Fund and may be appropriated for
  18-11  any legal purpose.  The legislature may also appropriate money from
  18-12  the General Revenue Fund for the administration and enforcement of
  18-13  this Act.
  18-14        (c)  Any amount of general revenue appropriated for the
  18-15  administration and enforcement of this Act in excess of the
  18-16  cumulative amount deposited in the Texas Racing Commission fund
  18-17  shall be reimbursed from the Texas Racing Commission fund.  The
  18-18  rate of interest on any appropriated amount the commission is
  18-19  required to repay to the General Revenue Fund is <not later than
  18-20  one year after the date on which the general revenue funds are
  18-21  appropriated, with 12 percent interest per year until August 31,
  18-22  1993, and> 6-3/4  percent interest per year <thereafter> with all
  18-23  payments first attributable to interest.  The commission shall,
  18-24  each year, repay to the General Revenue Fund an amount designated
  18-25  in the appropriations act covering the year the repayment is to be
  18-26  made.  The comptroller shall, each year, credit to the repayment to
  18-27  the General Revenue Fund an amount equal to 20 percent of the state
   19-1  tax revenue generated by horse or greyhound racing during the
   19-2  previous year.  This credit may be combined with any other
   19-3  repayment to comply with the requirements of this subsection.
   19-4        SECTION 16.  Article 3, Texas Racing Act (Article 179e,
   19-5  Vernon's Texas Civil Statutes), is amended by adding Sections
   19-6  3.13-3.16 to read as follows:
   19-7        Sec. 3.13.  RECOGNITION OF ORGANIZATION.  (a)  The commission
   19-8  by rule shall adopt criteria to recognize an organization to
   19-9  represent members of a segment of the racing industry, including
  19-10  owners, breeders, trainers, kennel operators, or other persons
  19-11  involved in the racing industry, in any interaction between the
  19-12  members of the organization and a racetrack facility or the
  19-13  commission.
  19-14        (b)  The commission may recognize an organization that meets
  19-15  the requirements of Subsection (a) of this section.
  19-16        Sec. 3.14.  DISCIPLINARY ACTIONS.  The commission shall
  19-17  revoke, suspend, or refuse to renew a license, place on probation a
  19-18  person whose license has been suspended, or reprimand a licensee
  19-19  for a violation of this Act or a rule of the commission.  If a
  19-20  license suspension is probated, the commission may require the
  19-21  licensee to report regularly to the commission on matters that are
  19-22  the basis of the probation.
  19-23        Sec. 3.15.  HEARING REQUIREMENTS.  If the commission proposes
  19-24  to suspend, revoke, or refuse to renew a person's license, the
  19-25  person is entitled to a hearing conducted by the State Office of
  19-26  Administrative Hearings.  Proceedings for a disciplinary action,
  19-27  other than those conducted by racing stewards or judges, are
   20-1  governed by the administrative procedure law, Chapter 2001,
   20-2  Government Code.  Rules of practice adopted by the commission under
   20-3  Section 2001.004, Government Code, applicable to the proceedings
   20-4  for a disciplinary action, other than those conducted by racing
   20-5  stewards or judges, may not conflict with rules adopted by the
   20-6  State Office of Administrative Hearings.
   20-7        Sec. 3.16.  RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
   20-8  (a) The commission shall adopt rules prohibiting a person from
   20-9  unlawfully influencing or affecting the outcome of a race,
  20-10  including rules relating to the use of a prohibited device or
  20-11  substance.
  20-12        (b)  The commission may require prerace testing and shall
  20-13  require postrace testing to determine whether a prohibited
  20-14  substance has been used. The testing may be by an invasive or
  20-15  noninvasive method. The commission's rules shall require
  20-16  state-of-the-art testing methods.
  20-17        (c)  Following the discovery of a prohibited device or a
  20-18  return of a test showing the presence of a prohibited substance, a
  20-19  steward or judge may summarily suspend a person who has used or
  20-20  administered the prohibited device or substance until a hearing
  20-21  before the stewards and judges. The steward or judge may also
  20-22  disqualify an animal pursuant to a commission rule adopted under
  20-23  this section.
  20-24        (d)  A person may appeal a ruling of the stewards or judges
  20-25  to the commission. The commission may stay a summary suspension
  20-26  during the period the matter is before the commission.
  20-27        (e)  The commission may require urine samples to be frozen
   21-1  for a period necessary to allow any follow-up testing to detect and
   21-2  identify  a prohibited substance. Any other specimen shall be
   21-3  maintained for testing purposes in a manner required by commission
   21-4  rule.
   21-5        (f)  If a test sample or specimen shows the presence of a
   21-6  prohibited substance, the entire sample, including any split
   21-7  portion, shall be maintained until final disposition of the matter.
   21-8        (g)  A license holder whose animal test shows the presence of
   21-9  a prohibited substance is entitled to have a split portion of the
  21-10  test sample or specimen tested at a testing facility authorized to
  21-11  perform drug testing under this Act and selected by the license
  21-12  holder. The commission shall adopt rules relating to split testing
  21-13  procedures.
  21-14        (h)  The licensed trainer of each animal is responsible for
  21-15  ensuring that no prohibited substance is administered to the
  21-16  animal.
  21-17        (i)  The commission shall adopt rules relating to the drug
  21-18  testing of license holders.
  21-19        (j)  A person who violates a rule adopted under this section
  21-20  may:
  21-21              (1)  have any license issued to the person by the
  21-22  commission revoked or suspended; or
  21-23              (2)  be barred for life or any other period from
  21-24  applying for or receiving a license issued by the commission or
  21-25  entering any portion of a racetrack facility.
  21-26        SECTION 17.  Section 5.01(a), Texas Racing Act (Article 179e,
  21-27  Vernon's Texas Civil Statutes), is amended to read as follows:
   22-1        (a)  The commission shall prescribe forms for applications
   22-2  for licenses and shall provide each occupational licensee with a
   22-3  license certificate or credentials.
   22-4        SECTION 18.  Sections 5.03(a) and (b), Texas Racing Act
   22-5  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
   22-6  as follows:
   22-7        (a)  The commission may promulgate rules that require an <An>
   22-8  applicant for any license under this Act to <must> submit to the
   22-9  commission a complete set of fingerprints of the individual natural
  22-10  person applying for the license or, if the applicant is not an
  22-11  individual natural person, a complete set of fingerprints of each
  22-12  officer or director and of each person owning an interest of at
  22-13  least five percent in the applicant.  <The Department of Public
  22-14  Safety may request any person owning any interest in an applicant
  22-15  to submit a complete set of fingerprints.>
  22-16        (b)  If a complete set of fingerprints is required by the
  22-17  commission, the <The> commission shall, not later than the next day
  22-18  after receiving the prints, forward the prints to the Department of
  22-19  Public Safety or the Federal Bureau of Investigation.  If the
  22-20  prints are forwarded to the Department of Public Safety, the <The>
  22-21  department shall classify the prints and check them against its
  22-22  fingerprint files and shall report to the commission its findings
  22-23  concerning the criminal record of the applicant or the lack of such
  22-24  a record.  A racetrack license may not be issued until the report
  22-25  is made to the commission.  A temporary occupational license may be
  22-26  issued before a report is made to the commission.
  22-27        SECTION 19.  Article 5, Texas Racing Act (Article 179e,
   23-1  Vernon's Texas Civil Statutes), is amended by adding Section 5.05
   23-2  to read as follows:
   23-3        Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The
   23-4  commission shall, in determining the amount of a license fee, set
   23-5  the fee in an amount that will cover, at least, the cost of
   23-6  conducting a criminal history check on the applicant for a license.
   23-7        (b)  The commission shall reimburse the Department of Public
   23-8  Safety for the cost of conducting a criminal history check under
   23-9  this article.
  23-10        SECTION 20.  Section 6.01, Texas Racing Act (Article 179e,
  23-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-12        Sec. 6.01.  License required.  A person shall not conduct
  23-13  wagering on a greyhound race <meeting> or a horse race meeting
  23-14  without first obtaining a racetrack license from the commission
  23-15  <with wagering on the results without a racetrack license>. A
  23-16  person who violates this section commits an offense.
  23-17        SECTION 21.  Section 6.02(d), Texas Racing Act (Article 179e,
  23-18  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-19        (d)  A class 3 racetrack is a racetrack operated by a city,
  23-20  county, or a nonprofit fair under Article 12 of this Act. An
  23-21  association that holds a class 3 racetrack license and that
  23-22  conducted horse races in 1986 may conduct live races for a number
  23-23  of days not to exceed 16 days in a calendar year on the dates
  23-24  selected by the association.
  23-25        SECTION 22.  Section 6.04(a), Texas Racing Act (Article 179e,
  23-26  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-27        (a)  The commission may issue a racetrack license to a
   24-1  qualified person if it finds that the conduct of race meetings at
   24-2  the proposed track and location will be in the public interest,
   24-3  complies with all zoning laws, and complies with this Act and the
   24-4  rules adopted by the commission and if the commission finds by
   24-5  clear and convincing evidence that the applicant will comply with
   24-6  all criminal laws of this state.  In determining whether to grant
   24-7  or deny an application for any class of racetrack license, the
   24-8  commission may consider <the degree to which any of> the following
   24-9  factors <regarding the applicant's racetrack or proposed race
  24-10  meeting serve to nurture, promote, develop, or improve the horse or
  24-11  greyhound industry in this state>:
  24-12              (1)  the applicant's financial stability;
  24-13              (2)  the applicant's resources for supplementing the
  24-14  purses for races for various breeds;
  24-15              (3)  the location of the proposed track;
  24-16              (4)  the effect of the proposed track on traffic flow;
  24-17              (5)  facilities for patrons and occupational licensees;
  24-18              (6)  facilities for race animals;
  24-19              (7)  availability to the track of support services and
  24-20  emergency services;
  24-21              (8)  the experience of the applicant's employees;
  24-22              (9)  the potential for conflict with other licensed
  24-23  race meetings;
  24-24              (10)  the anticipated effect of the race meeting on the
  24-25  greyhound or horse breeding industry in this state; and
  24-26              (11)  the anticipated effect of the race meeting on the
  24-27  state and local economy from tourism, increased employment, and
   25-1  other sources.
   25-2        SECTION 23.  Sections 6.06(a), (b), (e), and (f), Texas
   25-3  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
   25-4  amended to read as follows:
   25-5        (a)  To preserve and protect the public health, welfare, and
   25-6  safety, the commission shall adopt rules relating to license
   25-7  applications, <renewal applications,> the financial responsibility,
   25-8  moral character, and ability of applicants, and all matters
   25-9  relating to the planning, construction, and operation of
  25-10  racetracks.  The commission may refuse to issue a <an original or
  25-11  renewal> racetrack license or may revoke or suspend a license if,
  25-12  after notice and hearing, it has reasonable grounds to believe and
  25-13  finds that:
  25-14              (1)  the applicant has been convicted in a court of
  25-15  competent jurisdiction of a violation of this Act or any rule
  25-16  adopted by the commission or that the applicant has aided, abetted,
  25-17  or conspired with any person to commit such a violation;
  25-18              (2)  the applicant has been convicted of a felony or of
  25-19  any crime involving moral turpitude, including convictions for
  25-20  which the punishment received was a suspended sentence, probation,
  25-21  or a nonadjudicated conviction, that is reasonably related to the
  25-22  applicant's present fitness to hold a license under this Act;
  25-23              (3)  the applicant has violated or has caused to be
  25-24  violated this Act or a rule of the commission in a manner that
  25-25  involves moral turpitude, as distinguished from a technical
  25-26  violation of this Act or of a rule;
  25-27              (4)  the applicant is unqualified, by experience or
   26-1  otherwise, to perform the duties required of a licensee under this
   26-2  Act;
   26-3              (5)  the applicant failed to answer or falsely or
   26-4  incorrectly answered a question in an original or renewal
   26-5  application;
   26-6              (6)  the applicant fails to disclose the true ownership
   26-7  or interest in a greyhound or horse as required by the rules of the
   26-8  commission;
   26-9              (7)  the applicant is indebted to the state for any
  26-10  fees or for the payment of a penalty imposed by this Act or by a
  26-11  rule of the commission;
  26-12              (8)  the applicant is not of good moral character or
  26-13  the applicant's reputation as a peaceable, law-abiding citizen in
  26-14  the community where the applicant resides is bad;
  26-15              (9)  the applicant has not yet attained the minimum age
  26-16  necessary to purchase alcoholic beverages in this state;
  26-17              (10)  the applicant is in the habit of using alcoholic
  26-18  beverages to an excess or uses a controlled substance as defined in
  26-19  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  26-20  in Chapter 483, Health and Safety Code or is mentally
  26-21  incapacitated;
  26-22              (11)  the applicant may be excluded from a track
  26-23  enclosure under Article 13 or 14 of this Act;
  26-24              (12)  the applicant has not been a United States
  26-25  citizen residing in this state for the period of 10 consecutive
  26-26  years immediately preceding the filing of the application;
  26-27              (13)  the applicant has improperly used a license
   27-1  certificate, credential, or identification card issued under this
   27-2  Act;
   27-3              (14)  the applicant is residentially domiciled with a
   27-4  person whose license has been revoked for cause within the 12
   27-5  months immediately preceding the date of the present application;
   27-6              (15)  the applicant has failed or refused to furnish a
   27-7  true copy of the application to the commission's district office in
   27-8  the district in which the premises for which the permit is sought
   27-9  are located; <or>
  27-10              (16)  the applicant is engaged or has engaged in
  27-11  activities or practices that the commission finds are detrimental
  27-12  to the best interests of the public and the sport of greyhound
  27-13  racing or horse racing; or
  27-14              (17)  the applicant fails to fully disclose the true
  27-15  owners of all interests, beneficial or otherwise, in a proposed
  27-16  racetrack facility.
  27-17        (b)  Subsection (a) of this section applies to a corporation,
  27-18  partnership, limited partnership, or any other organization or
  27-19  group whose application is comprised of more than one person if a
  27-20  shareholder, partner, limited partner <if any>, director, or
  27-21  officer is disqualified under Subsection (a) of this section.
  27-22        (e)  The <appropriate section of the> commission may
  27-23  condition the issuance of a license under this article on the
  27-24  observance of its rules.  The commission may amend the rules at any
  27-25  time and may condition the continued holding of the license on
  27-26  compliance with the rules as amended.
  27-27        (f)  The <appropriate section of the> commission may refuse
   28-1  to issue a license or may suspend or revoke a license of a licensee
   28-2  under this article who knowingly or intentionally allows access to
   28-3  an enclosure where greyhound races or horse races are conducted to
   28-4  a person who has engaged in bookmaking, touting, or illegal
   28-5  wagering, whose income is from illegal activities or enterprises,
   28-6  or who has been convicted of a violation of this Act.
   28-7        SECTION 24.  Section 6.06, Texas Racing Act (Article 179e,
   28-8  Vernon's Texas Civil Statutes), is amended by adding Subsection (i)
   28-9  to read as follows:
  28-10        (i)  Subsections (a)(12), (c), and (d) of this section do not
  28-11  apply to an applicant for or the holder of a racetrack license if
  28-12  the applicant, the license holder, or the license holder's parent
  28-13  company is a publicly traded company and the license applied for or
  28-14  held is for the operation of a racetrack facility that is within
  28-15  100 miles of the border of the United Mexican States.
  28-16        SECTION 25.  Article 6, Texas Racing Act (Article 179e,
  28-17  Vernon's Texas Civil Statutes), is amended by adding Sections 6.061
  28-18  and 6.062 to read as follows:
  28-19        Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE
  28-20  CONDITIONS.  (a)  The commission shall adopt rules implementing
  28-21  this section, including rules:
  28-22              (1)  requiring the report of and correction of:
  28-23                    (A)  an inappropriate condition on the premises
  28-24  of a racetrack facility, including a failure to properly maintain
  28-25  the facility, that interferes with the administration of this Act;
  28-26  or
  28-27                    (B)  a condition on the premises of a racetrack
   29-1  facility that makes the facility unsafe for a race participant,
   29-2  patron, or animal; and
   29-3              (2)  determining the methods and manner in which the
   29-4  executive secretary may determine and remedy inappropriate
   29-5  conditions or unsafe facilities on the premises of a racetrack
   29-6  facility, including the methods and manner in which the executive
   29-7  secretary may conduct inspections of the racetrack facility and
   29-8  remedy emergency situations.
   29-9        (b)  The executive secretary shall issue a notice of
  29-10  violation to a racetrack facility on a finding that an
  29-11  inappropriate or unsafe condition exists.
  29-12        (c)  If the executive secretary determines that an
  29-13  inappropriate or unsafe condition exists at the racetrack facility,
  29-14  the executive secretary shall order the racetrack facility to take
  29-15  action within a specified period to remedy the inappropriate
  29-16  condition or unsafe condition.  In determining the period for
  29-17  compliance, the executive secretary shall consider the nature and
  29-18  severity of the problem and the threat to the health, safety, and
  29-19  welfare of the race participants, patrons, or animals.
  29-20        (d)  The commission shall adopt rules requiring the reporting
  29-21  of any corrective action taken by a racetrack facility in response
  29-22  to an order of the executive secretary under Subsection (c) of this
  29-23  section.
  29-24        (e)  If a racetrack facility fails to take any action as
  29-25  required under Subsection (c) of this section, the executive
  29-26  secretary shall initiate an enforcement action against the
  29-27  racetrack facility.  The executive secretary may rescind any live
   30-1  or simulcast race date of any racetrack association that does not
   30-2  take corrective action within the period set by the executive
   30-3  secretary.
   30-4        (f)  The commission shall adopt rules relating to the
   30-5  commission's review of an action taken under this section by the
   30-6  executive secretary.  A  review procedure adopted under this
   30-7  subsection must be consistent with Chapter 2001, Government Code.
   30-8        Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The
   30-9  commission shall adopt a method of supervising and approving the
  30-10  construction, renovation, or maintenance of any building or
  30-11  improvement on the premises of a racetrack facility.
  30-12        (b)  The commission shall adopt rules relating to:
  30-13              (1)  the approval of plans and specifications;
  30-14              (2)  the contents of plans and specifications;
  30-15              (3)  the maintenance of records to ensure compliance
  30-16  with approved plans and specifications;
  30-17              (4)  the content and filing of construction progress
  30-18  reports by the racetrack facility to the commission;
  30-19              (5)  the inspection by the commission or others;
  30-20              (6)  the method for making a change or amendment to an
  30-21  approved plan or specification; and
  30-22              (7)  any other method of supervision or oversight
  30-23  necessary.
  30-24        (c)  If the commission has grounds to believe that an
  30-25  association has failed to comply with the requirements of this
  30-26  section, a representative of the association shall appear before
  30-27  the commission, at a public hearing, to consider the issue of
   31-1  compliance with the rules adopted under this section.
   31-2        (d)  Before a building or improvement may be used by the
   31-3  association, the commission shall determine whether the
   31-4  construction, renovation, or maintenance of the building or
   31-5  improvement was completed in accordance with the approved plans and
   31-6  specifications and whether other requirements of the commission
   31-7  were met.
   31-8        (e)  If the commission determines that the association failed
   31-9  to comply with a requirement of this section or rule adopted under
  31-10  this section, the commission shall initiate an enforcement action
  31-11  against the association.  In addition to any other authorized
  31-12  enforcement action, the commission may rescind any live or
  31-13  simulcast race date of any association that has failed to comply
  31-14  with the requirement of this section.
  31-15        SECTION 26.  Section 6.08(l), Texas Racing Act (Article 179e,
  31-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  31-17        (l)  An association may not make a deduction or withhold any
  31-18  percentage of a purse from the account into which the purse paid to
  31-19  a horse owner is deposited for membership payments, dues,
  31-20  assessments, or any other payments to any <an> organization except
  31-21  an organization of the horse owner's choice recognized by the
  31-22  commission as an official representative of the horsemen licensed
  31-23  by the commission.
  31-24        SECTION 27.  Article 6, Texas Racing Act (Article 179e,
  31-25  Vernon's Texas Civil Statutes), is amended by adding Section 6.092
  31-26  to read as follows:
  31-27        Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY
   32-1  PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,
   32-2  monitoring, and auditing requirements or other appropriate
   32-3  performance measures for any funds distributed to or used by or any
   32-4  function or service provided by the expenditure of any funds
   32-5  distributed to or used by any organization that receives funds
   32-6  generated by live or simulcast pari-mutuel racing.
   32-7        (b)  The commission shall adopt the requirements or
   32-8  performance measures after consultation with the affected
   32-9  organization.  In adopting the rules, the commission shall give
  32-10  consideration to the concerns of the affected organization.
  32-11        (c)  An independent audit shall be conducted annually of an
  32-12  organization receiving funds generated by live or simulcast
  32-13  pari-mutuel racing.  A copy of the report shall be sent to the
  32-14  commission.  The audit shall include a verification of any
  32-15  performance report sent to or required by the commission.
  32-16        (d)  The commission may review any records or books of an
  32-17  organization that submits an independent audit to the commission as
  32-18  the commission determines necessary to confirm or further
  32-19  investigate the findings of an audit or report.
  32-20        (e)  The commission by rule may suspend or withhold funds
  32-21  from an organization that:
  32-22              (1)  it determines has failed to comply with the
  32-23  requirements or performance measures adopted under Subsection (a)
  32-24  of this section; or
  32-25              (2)  has, following an independent audit or other
  32-26  report to the commission, material questions raised on the use of
  32-27  funds by the organization.
   33-1        SECTION 28.  Section 6.17(a), Texas Racing Act (Article 179e,
   33-2  Vernon's Texas Civil Statutes), is amended to read as follows:
   33-3        (a)  A commissioners court may collect a fee not to exceed 15
   33-4  cents as an admission fee to a licensed racetrack located within
   33-5  the county.  If the racetrack is located within an incorporated
   33-6  city or town, the governing body of the city or town may collect a
   33-7  fee not to exceed 15 cents as an admission fee to a licensed
   33-8  racetrack located within the city or town.  If the racetrack is not
   33-9  located within an incorporated city or town, the court may collect
  33-10  an additional fee not to exceed 15 cents as an admission fee to a
  33-11  licensed racetrack located within the county for allocation among
  33-12  the incorporated cities or towns in the county.  If the racetrack
  33-13  is not located in an incorporated city or town, the court shall
  33-14  collect the additional fee if requested to do so by the governing
  33-15  bodies of a majority of the incorporated cities and towns in the
  33-16  county.  Allocation of the fees shall be based on the population
  33-17  within the county of the cities or towns.  An admission fee may not
  33-18  be charged for the admission to the racetrack of any person
  33-19  licensed by the commission.
  33-20        SECTION 29.  Section 7.01, Texas Racing Act (Article 179e,
  33-21  Vernon's Texas Civil Statutes), is amended to read as follows:
  33-22        Sec. 7.01.  License required.  A person shall not participate
  33-23  in racing with pari-mutuel wagering <as regulated by this Act>
  33-24  without first obtaining a license from the commission. <A person
  33-25  who violates this section commits an offense.>
  33-26        SECTION 30.  Section 7.02, Texas Racing Act (Article 179e,
  33-27  Vernon's Texas Civil Statutes), is amended by amending Subsection
   34-1  (a) and by adding Subsections (c) and (d) to read as follows:
   34-2        (a)  Each person, other than a spectator or person placing a
   34-3  wager, involved in any capacity with racing with pari-mutuel
   34-4  wagering under<, other than as a spectator, as regulated by> this
   34-5  Act<,> must obtain a license under this article.  <A person who
   34-6  violates this subsection commits an offense.>
   34-7        (c)  If an examination is required for the issuance of a
   34-8  license under this article, not later than the 30th day after the
   34-9  day on which a licensing examination is administered under this
  34-10  Act, the commission shall notify each examinee of the results of
  34-11  the examination.
  34-12        (d)  If requested in writing by a person who fails a
  34-13  licensing examination administered under this Act, the commission
  34-14  shall furnish the person with an analysis of the person's
  34-15  performance on the examination.
  34-16        SECTION 31.  Section 7.04, Texas Racing Act (Article 179e,
  34-17  Vernon's Texas Civil Statutes), is amended to read as follows:
  34-18        Sec. 7.04.  Licenses; grounds for denial, revocation, and
  34-19  suspension.  The commission, after notice and hearing, may refuse
  34-20  to issue any original or renewal license under this article or may
  34-21  revoke or suspend the license if it has reasonable grounds to
  34-22  believe and finds that:
  34-23              (1)  the applicant has been convicted in a court of
  34-24  competent jurisdiction of a violation of this Act or of any rule
  34-25  adopted by the commission or has aided, abetted, or conspired with
  34-26  any person to commit such a violation;
  34-27              (2)  the applicant has been convicted of a felony or of
   35-1  any crime involving moral turpitude that is reasonably related to
   35-2  the applicant's present fitness to hold a license under this Act;
   35-3              (3)  the applicant has violated or has caused to be
   35-4  violated this Act or a rule of the commission in a manner that
   35-5  involves moral turpitude, as distinguished from a technical
   35-6  violation of this Act or of a rule;
   35-7              (4)  the applicant is unqualified, by experience or
   35-8  otherwise, to perform the duties required of a licensee under this
   35-9  Act;
  35-10              (5)  the applicant failed to answer or has falsely or
  35-11  incorrectly answered a question in an original or renewal
  35-12  application;
  35-13              (6)  the applicant fails to disclose the true ownership
  35-14  or interest in a greyhound or horse as required by the rules of the
  35-15  commission;
  35-16              (7)  the applicant is indebted to the state for any
  35-17  fees or for the payment of a penalty imposed by this Act or by a
  35-18  rule of the commission;
  35-19              (8)  the applicant is not of good moral character or
  35-20  the applicant's reputation as a peaceable, law-abiding citizen in
  35-21  the community where the applicant resides is bad;
  35-22              (9)  the applicant is in the habit of using alcoholic
  35-23  beverages to an excess or uses a controlled substance as defined in
  35-24  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  35-25  in Chapter 483, Health and Safety Code or is mentally
  35-26  incapacitated;
  35-27              (10)  the applicant may be excluded from a track
   36-1  enclosure under Article 13 or 14 of this Act;
   36-2              (11)  the commission determines that the applicant has
   36-3  improperly used a temporary pass, license certificate, credential,
   36-4  or identification card issued under this Act;
   36-5              (12)  the applicant is residentially domiciled with a
   36-6  person whose license has been revoked for cause within the 12
   36-7  months immediately preceding the date of the present application;
   36-8              (13)  the applicant has failed or refused to furnish a
   36-9  true copy of the application to the commission's district office in
  36-10  the district in which the premises for which the permit is sought
  36-11  are located; or
  36-12              (14)  the applicant is engaged or has engaged in
  36-13  activities or practices that are detrimental to the best interests
  36-14  of the public and the sport of horse racing or greyhound racing.
  36-15        SECTION 32.  Section 7.05, Texas Racing Act (Article 179e,
  36-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  36-17        Sec. 7.05.  License fees.  (a)  The commission shall adopt by
  36-18  rule a fee schedule for licenses issued under this article.
  36-19        (b)  The commission shall base the license fees on the
  36-20  relative or comparative incomes or property interests of the
  36-21  various categories of licensees, with the lower income category of
  36-22  licensees being charged nearer the minimum fee and the higher
  36-23  income category of licensees charged nearer the maximum fee.
  36-24        (c)  In setting the fee schedule under Subsection (a) of this
  36-25  section, the commission shall include the cost of criminal history
  36-26  checks determined under Section 5.05 of this Act.  The commission
  36-27  may determine the best method for recouping this cost and complying
   37-1  with the other provisions of this section, including collecting the
   37-2  costs over an extended period.
   37-3        SECTION 33.  Section 7.07, Texas Racing Act (Article 179e,
   37-4  Vernon's Texas Civil Statutes), is amended to read as follows:
   37-5        Sec. 7.07.  Term of license.  (a)  A license issued under
   37-6  this article is valid for a period set by the commission not to
   37-7  exceed 36 months following the date of its issuance.  It is
   37-8  renewable on application and payment of the fee in accordance with
   37-9  the rules of the commission.
  37-10        (b)  The commission by rule may adopt a system under which
  37-11  licenses expire on various dates during the year.  For the year in
  37-12  which the license expiration date is changed, license fees shall be
  37-13  prorated on a monthly basis so that each licensee pays only that
  37-14  portion of the license fee that is allocable to the number of
  37-15  months during which the license is valid.  On renewal of the
  37-16  license on the new expiration date, the total license renewal fee
  37-17  is payable.
  37-18        SECTION 34.  Article 7, Texas Racing Act (Article 179e,
  37-19  Vernon's Texas Civil Statutes), is amended by adding Section 7.10
  37-20  to read as follows:
  37-21        Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
  37-22  (a)  The commission may waive any prerequisite to obtaining a
  37-23  license for an applicant after reviewing the applicant's
  37-24  credentials and determining that the applicant holds a valid
  37-25  license from another state that has license requirements
  37-26  substantially equivalent to those of this state.
  37-27        (b)  The commission may waive any prerequisite to obtaining a
   38-1  license for an applicant with a valid license from another state
   38-2  with which the State of Texas has a reciprocity agreement.  The
   38-3  commission may enter into reciprocal agreements with other states
   38-4  to allow for licensing by reciprocity.
   38-5        SECTION 35.  Section 9.01, Texas Racing Act (Article 179e,
   38-6  Vernon's Texas Civil Statutes), is amended to read as follows:
   38-7        Sec. 9.01.  Texas-bred horses.  Subject to this Act and any
   38-8  rule of the commission, the <The> state horse breed registries
   38-9  shall make reasonable rules to establish the qualifications of
  38-10  accredited Texas-bred horses to promote, develop, and improve the
  38-11  breeding of horses in this state.  Rules adopted by a registry are
  38-12  subject to commission approval.
  38-13        SECTION 36.  Section 10.04, Texas Racing Act (Article 179e,
  38-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  38-15        Sec. 10.04.  Texas-bred greyhounds.  Subject to this Act or
  38-16  any rule of the commission, the <The> state greyhound breed
  38-17  registry shall make reasonable rules to establish the
  38-18  qualifications of accredited Texas-bred greyhounds to promote,
  38-19  develop, and improve the breeding of greyhounds in this state.
  38-20  Rules adopted by the registry are subject to commission approval.
  38-21        SECTION 37.  Section 11.04(c), Texas Racing Act (Article
  38-22  179e, Vernon's Texas Civil Statutes), is amended to read as
  38-23  follows:
  38-24        (c)  The commission shall adopt rules prohibiting an
  38-25  association from accepting a wager made on credit and shall adopt
  38-26  rules prohibiting automatic banking machines within the enclosure.
  38-27  The commission shall prohibit patrons from using automated methods
   39-1  for obtaining additional money while the patrons are on the
   39-2  premises of the racetrack facility.
   39-3        SECTION 38.  Section 11.06, Texas Racing Act (Article 179e,
   39-4  Vernon's Texas Civil Statutes), is amended to read as follows:
   39-5        Sec. 11.06.  Minors.  <(a)>  The commission shall adopt rules
   39-6  to prohibit wagering by a minor <prevent wagering by persons who
   39-7  have not yet attained the minimum age required to purchase
   39-8  alcoholic beverages in this state> and to prohibit <prevent> a
   39-9  child <person under 16 years of age> from entering the viewing
  39-10  section of a racetrack unless accompanied by the child's <person's>
  39-11  parent or guardian.  The rules may except any conduct described as
  39-12  an affirmative defense by Section 14.14 of this Act <A person who
  39-13  intentionally, knowingly, recklessly, or with criminal negligence
  39-14  violates a rule adopted under this section commits an offense.  An
  39-15  offense under this section is a Class B misdemeanor>.
  39-16        <(b)  A person commits an offense if the person intentionally
  39-17  or knowingly engages in gaming at a racetrack when the person has
  39-18  not yet attained the minimum age required to purchase alcoholic
  39-19  beverages in this state.  An offense under this subsection is a
  39-20  Class C misdemeanor.>
  39-21        SECTION 39.  Section 11.09, Texas Racing Act (Article 179e,
  39-22  Vernon's Texas Civil Statutes), is amended to read as follows:
  39-23        Sec. 11.09.  No liability to prosecution.  The defense to
  39-24  prosecution under Chapter 47, Penal Code, that the conduct was
  39-25  authorized under this Act is available only to a person who is:
  39-26              (1)  <A person> lawfully conducting or participating in
  39-27  the conduct of pari-mutuel wagering in connection with horse racing
   40-1  or greyhound racing; or
   40-2              (2)  permitting the lawful conduct of an activity
   40-3  described by Subdivision (1) of this section on any racetrack
   40-4  facility <on any premises owned or leased by him or it under any
   40-5  license lawfully issued under this Act is not liable to prosecution
   40-6  for that conduct>.
   40-7        SECTION 40.  Article 12, Texas Racing Act (Article 179e,
   40-8  Vernon's Texas Civil Statutes), is amended by adding Section 12.04
   40-9  to read as follows:
  40-10        Sec. 12.04.  CITY-OPERATED RACETRACK.  Subject to the
  40-11  licensing requirements and other provisions of this Act, a city
  40-12  with a population of 5,000 or more that owned a racetrack facility
  40-13  in 1986 may conduct an annual race meeting if the meeting does not
  40-14  exceed 16 racing days.
  40-15        SECTION 41.  Section 13.03, Texas Racing Act (Article 179e,
  40-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  40-17        Sec. 13.03.  CRIMINAL TRESPASS <Entry after ejection>.
  40-18  <(a)>  A person, for the purposes of Section 30.05, Penal Code, is
  40-19  presumed to have received notice that entry to an enclosure was
  40-20  forbidden if the person:
  40-21              (1)  was excluded or ejected from the enclosure under
  40-22  this Act;
  40-23              (2)  possessed, displayed, or used in the enclosure a
  40-24  credential that the person was not authorized to use; or
  40-25              (3)  entered the enclosure using a falsified
  40-26  credential.  <who has been excluded or ejected from an enclosure
  40-27  under this article commits an offense if the person knowingly
   41-1  enters an enclosure of the same or another licensed racetrack
   41-2  unless the commission or a final judgment of a court has ordered
   41-3  that the rule does not apply to the person.>
   41-4        <(b)  An offense under this section is a Class A misdemeanor.>
   41-5        <(c)  The provisions of Section 7.22, Penal Code, imposing
   41-6  criminal responsibility on a corporation or association for an
   41-7  offense committed by its agent apply to conduct constituting an
   41-8  offense under this section that is performed by an agent of a
   41-9  corporation or association.>
  41-10        SECTION 42.  Article 14, Texas Racing Act (Article 179e,
  41-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  41-12          ARTICLE 14.  CRIMINAL <TOUTING AND OTHER> OFFENSES
  41-13        Sec. 14.01.  Touting.  (a)  A person commits an offense if,
  41-14  with an intent to deceive and an intent to obtain a benefit
  41-15  <knowing the information is false>, the person knowingly makes a
  41-16  false statement <or intentionally conveys> or offers, agrees to
  41-17  convey, or conveys false information about a greyhound race or
  41-18  horse race to another <others for compensation>.
  41-19        (b)  Except as provided by Subsection (c) of this section, an
  41-20  offense under this section is a Class A misdemeanor <felony of the
  41-21  third degree>.
  41-22        (c)  An offense under this section is a state jail felony <of
  41-23  the second degree> if:
  41-24              (1)  the actor is a license holder under this Act or an
  41-25  employee or member of the commission and the actor knowingly
  41-26  represents that a member <an official> or employee of the
  41-27  commission or a <of an association or an owner, trainer, jockey, or
   42-1  other> person licensed by the commission is the source of the false
   42-2  information; or
   42-3              (2)  the false statement or information was contained
   42-4  in racing selection information provided to the public. <the actor
   42-5  previously has been finally convicted of an offense under this
   42-6  section or has been convicted of a felony for which the punishment
   42-7  received was a suspended sentence, probation, or a nonadjudicated
   42-8  conviction which has not yet been fully served.>
   42-9        <(d)  The provisions of Section 7.22, Penal Code, imposing
  42-10  criminal responsibility on a corporation or association for an
  42-11  offense committed by its agent apply to conduct constituting an
  42-12  offense under this section that is performed by an agent of a
  42-13  corporation or association.>
  42-14        Sec. 14.02.  Unlawful Possession or use of credential.
  42-15  (a)  A person commits an offense if the person knowingly or
  42-16  intentionally possesses or displays a <license or> credential or
  42-17  false credential that identifies <has been issued or purports to
  42-18  have been issued by the commission and represents that> the person
  42-19  as <is> the holder of the <license or> credential and <when> the
  42-20  person knows:
  42-21              (1)  that the <license or> credential is not issued to
  42-22  the person; or
  42-23              (2)  the person is not a license holder <if the person
  42-24  impersonates in any way a person holding a license or credential
  42-25  issued by the commission>.
  42-26        (b)  An offense under this section is a Class C misdemeanor
  42-27  <felony of the third degree>.
   43-1        <(c)  The provisions of Section 7.22, Penal Code, imposing
   43-2  criminal responsibility on a corporation or association for an
   43-3  offense committed by its agent apply to conduct constituting an
   43-4  offense under this section that is performed by an agent of a
   43-5  corporation or association.>
   43-6        Sec. 14.03.  BOOKMAKING.  A person commits an offense if the
   43-7  person, inside or outside a racetrack facility, engages in
   43-8  bookmaking, as defined by Section 47.01, Penal Code, involving
   43-9  betting on the partial or final outcome of a live or simulcast race
  43-10  presented by an association under this Act or commission rule.
  43-11  <Illegal influence of race outcome><.  (a)  The commission shall
  43-12  adopt rules prohibiting the illegal influencing of the outcome of a
  43-13  race, including but not limited to the use of medication,
  43-14  stimulants, or depressants to attempt to or to influence illegally
  43-15  the outcome of a race.>
  43-16        <(b)  The commission may require prerace testing by any
  43-17  invasive or noninvasive method or methods to determine whether such
  43-18  a drug, chemical, or other substance has been administered.  The
  43-19  commission shall require postrace testing by such method or
  43-20  methods.  The commission shall adopt rules that require all such
  43-21  tests to be conducted using state-of-the-art methods.  On any
  43-22  positive test showing the presence of prohibited drugs, chemicals,
  43-23  or other substances, the stewards or racing judges may summarily
  43-24  suspend any person who has administered or applied the drug,
  43-25  chemical, or other substance or any electric device or spur pending
  43-26  hearing by the stewards or judges with the right of appeal to the
  43-27  commission.  Such a suspension may be stayed, in the discretion of
   44-1  the commission only, during the pendency of such appeal. In
   44-2  addition, the stewards or racing judges may disqualify the affected
   44-3  animal pursuant to rules adopted by the commission under this
   44-4  section.  The commission may require that urine samples be frozen
   44-5  and maintained for a period that will enable veterinarians and
   44-6  chemists to conduct follow-up tests to detect and identify
   44-7  prohibited drugs.  All other specimens shall be maintained for
   44-8  testing purposes in the manner prescribed by the commission. In the
   44-9  event a sample tests positive for a drug, chemical, or other
  44-10  substance, all samples, including the split portion, shall be
  44-11  maintained until the matter is finally adjudicated.  A licensee
  44-12  whose animal has tested positive for a drug, chemical, or other
  44-13  substance is entitled to have a split portion of the sample tested
  44-14  at a testing facility authorized to perform drug testing under
  44-15  Section 3.07 of this Act and selected by the licensee.  The
  44-16  commission shall adopt rules regarding the procedure for the split
  44-17  testing.>
  44-18        <(c)  The official licensed trainer of each such animal is
  44-19  deemed by law to be the absolute insurer that no prohibited drug,
  44-20  chemical, or other substance has been administered and shall be
  44-21  responsible to see that such a drug, chemical, or other substance
  44-22  is not administered.>
  44-23        <(d)  By applying for a license under this Act, each
  44-24  occupational licensee consents to both prerace and postrace search
  44-25  for the purpose of determining the presence of such a drug,
  44-26  chemical, or other substance or of any electrical device or other
  44-27  device that might have the effect of unnaturally depressing,
   45-1  stimulating, or exciting any animal during a race.  The commission
   45-2  shall adopt rules relating to drug testing for occupational
   45-3  licensees.>
   45-4        <(e)  A person who knowingly violates a rule adopted under
   45-5  this section may be barred, either for a period set by the
   45-6  commission or for life, from receiving any license under this Act
   45-7  or may be barred for a period set by the commission or for life
   45-8  from any premises licensed under this Act, or both.>
   45-9        <(f)  A person who knowingly violates a rule adopted under
  45-10  this section commits a felony of the third degree for the first
  45-11  offense and a felony of the second degree for a second or
  45-12  subsequent offense.>
  45-13        <(g)  A person who gives, offers or promises to give, or
  45-14  attempts to give or offer any money, bribe, or thing of value to
  45-15  any jockey, trainer, owner, groom, or other person associated with
  45-16  or interested in any stable, kennel, horse, or dog, or race in
  45-17  which any horse or dog participates, with the intention or
  45-18  understanding or agreement that such individual shall not use his
  45-19  best efforts to win such race, or shall so conduct himself in such
  45-20  race that any other participant shall thereby be assisted or
  45-21  enabled to win such race, or shall so conduct himself in such race
  45-22  as to limit his finishing or placing in such race commits an
  45-23  offense.  Such an offense is a felony of the third degree.>
  45-24        <(h)  A person who accepts, attempts to accept, offers to
  45-25  accept, or agrees to accept any money, bribe, or thing of value,
  45-26  with the intention or understanding or agreement that he will not
  45-27  use his best efforts to win any horse or dog race, in which he is
   46-1  the jockey, trainer, groom, owner, or other interested party or is
   46-2  about to participate in, or will so conduct himself in such race
   46-3  that any other horse or dog shall thereby be assisted or enabled to
   46-4  win such race, or will so conduct himself in such race as to limit
   46-5  his finishing or placing in such race commits an offense.  Such an
   46-6  offense is a felony of the third degree.>
   46-7        <(i)  A person who gives, offers to give, promises to give,
   46-8  or attempts to give any money, bribe, or thing of value to any
   46-9  person who is presiding or officiating at or who is about to
  46-10  preside or officiate at any dog or horse race with the intention or
  46-11  agreement or understanding that such person shall corruptly or
  46-12  dishonestly preside or officiate at any such race with the
  46-13  intention or purpose that the result of the race will be affected
  46-14  or influenced thereby commits an offense.  Such an offense is a
  46-15  felony of the third degree.>
  46-16        Sec. 14.04.  Illegal access.  (a)  A person commits an
  46-17  offense if the person is a license holder and the person <licensee
  46-18  who> knowingly or intentionally permits, facilitates, or allows
  46-19  access to an enclosure to another person who the person knows:
  46-20              (1)  <where races are conducted to a person who> has
  46-21  engaged in bookmaking, touting, or illegal wagering;
  46-22              (2)  derives<, whose> income <is> from illegal
  46-23  activities or enterprises;
  46-24              (3)  <, or who> has been convicted of a violation of
  46-25  this  Act; or
  46-26              (4)  is excluded by the commission from entering a
  46-27  racetrack facility<, commits an offense>.
   47-1        (b)  An offense under this section is a Class B misdemeanor
   47-2  <felony of the third degree>.
   47-3        Sec. 14.05.  Races conducted on certain Indian lands.  (a)  A
   47-4  person who is subject to this section commits an offense if the
   47-5  person intentionally or knowingly wagers on the result of a
   47-6  greyhound race or horse race conducted in this state that:
   47-7              (1)  is held on an American Indian reservation or on
   47-8  American Indian trust land located in this state; and
   47-9              (2)  is not held under the supervision of the
  47-10  commission under rules adopted under this Act.
  47-11        (b)  An offense under this section is a felony of the third
  47-12  degree.
  47-13        (c)  It is an exception to the application of this section
  47-14  that the person is a member of a recognized Texas Indian tribe who
  47-15  lives on a reservation or on trust lands located in this state.
  47-16        Sec. 14.06.  False statements.  (a)  A person commits an
  47-17  offense if the person <intentionally,> knowingly<, recklessly, or
  47-18  with criminal negligence> makes a material and false, incorrect, or
  47-19  deceptive statement to another who is conducting an investigation
  47-20  or exercising discretion under this Act or a commission rule
  47-21  <adopted under this Act>.
  47-22        (b)  In this section, the <The> term "statement" means a
  47-23  representation of fact and includes<, but is not limited to>:
  47-24              (1)  a written or oral statement <statements>; or
  47-25              (2)  a sworn or unsworn statement <statements>.
  47-26        (c)  An offense under this section is a state jail felony
  47-27  unless the statement was material in a commission action relating
   48-1  to a racetrack license, in which event, the offense is a felony of
   48-2  the third degree.
   48-3        Sec. 14.07.  HINDERING OF ENTRY OR SEARCH.  (a)  A person
   48-4  commits an offense if the person <intentionally, knowingly,
   48-5  recklessly, or> with criminal negligence refuses, denies, or
   48-6  hinders entry to another who is exercising or attempting to
   48-7  exercise a power of entry under this Act or a commission rule.
   48-8        (b)  A person commits an offense if the person with criminal
   48-9  negligence refuses, denies, hinders, interrupts, disrupts, impedes,
  48-10  or otherwise interferes with a search by a person exercising or
  48-11  attempting to exercise a power to search under this Act or a
  48-12  commission rule.
  48-13        (c) <(b)>  An offense under this section is a Class B
  48-14  misdemeanor.
  48-15        Sec. 14.08.  FORGING PARI-MUTUEL TICKET.  (a) A person
  48-16  commits an offense if the person intentionally or knowingly forges
  48-17  a pari-mutuel ticket with the intent to defraud or harm another.
  48-18        (b)  In this section, "forge" has the meaning assigned by
  48-19  Section 32.21, Penal Code.
  48-20        (c)  An offense under this section is a felony of the third
  48-21  degree.
  48-22        Sec. 14.09.  IMPERSONATING A LICENSE HOLDER.  (a) A person
  48-23  commits an offense if the person impersonates a license holder with
  48-24  the intent to induce another person to submit to the actor's
  48-25  purported authority as a license holder or to rely on the actor's
  48-26  actions as an alleged license holder.
  48-27        (b)  An offense under this section is a Class A misdemeanor.
   49-1        Sec. 14.10.  UNLAWFUL INFLUENCE ON RACING.  (a) A person
   49-2  commits an offense if the person possesses a prohibited device or
   49-3  substance on a racetrack facility.
   49-4        (b)  An offense under Subsection (a) of this section is a
   49-5  state jail felony, unless the actor possessed the device or
   49-6  substance with the intent to influence or affect the outcome of a
   49-7  horse or greyhound race in a manner contrary to this Act or a
   49-8  commission rule, in which event it is a felony of the third degree.
   49-9        (c)  A person commits an offense if, with the intent to
  49-10  influence or affect a horse or greyhound race in a manner contrary
  49-11  to this Act or a commission rule, the person:
  49-12              (1)  uses or offers to use a prohibited device; or
  49-13              (2)  uses or offers to use a prohibited substance.
  49-14        (d)  An offense under Subsection (c) of this section is a
  49-15  felony of the third degree.
  49-16        Sec. 14.11.  BRIBERY AND CORRUPT INFLUENCE.  (a) A person
  49-17  commits an offense if, with the intent to influence or affect the
  49-18  outcome of a race in a manner contrary to this Act or a commission
  49-19  rule, the person offers, confers, agrees to confer on another, or
  49-20  solicits, accepts, or agrees to accept from another person any
  49-21  benefit as consideration for the actions of a person who receives
  49-22  the benefit relating to the conduct, decision, opinion,
  49-23  recommendation, vote, or exercise of discretion as a license holder
  49-24  or other person associated with or interested in any stable,
  49-25  kennel, horse, greyhound, or horse or greyhound race.
  49-26        (b)  An offense under this section is a state jail felony,
  49-27  unless the recipient of the benefit is a steward, judge, or other
   50-1  racetrack official exercising authority over a horse or greyhound
   50-2  race that the person providing or offering the benefit intended to
   50-3  influence, in which event it is a felony of the third degree.
   50-4        Sec. 14.12.  COERCION AND INTIMIDATION.  (a) A person commits
   50-5  an offense if, with the intent to influence or affect the outcome
   50-6  of a race in a manner contrary to this Act or a commission rule,
   50-7  the person coerces or threatens to harm another with the intent to:
   50-8              (1)  induce another not to use the person's best
   50-9  efforts; or
  50-10              (2)  affect the recipient's conduct, decision, opinion,
  50-11  recommendation, vote, or other exercise of discretion as a license
  50-12  holder or any person associated with or interested in any stable,
  50-13  kennel, horse, greyhound, or horse or greyhound race.
  50-14        (b)  Except as provided by Subsection (c) of this section, an
  50-15  offense under this section is a state jail felony.
  50-16        (c)  An offense under this section is a felony of the third
  50-17  degree if:
  50-18              (1)  the actor is a steward, judge, or other racetrack
  50-19  official exercising authority over the horse or greyhound race the
  50-20  actor intended to influence; or
  50-21              (2)  the person threatened is a steward, judge, or
  50-22  other racetrack official exercising authority over the race the
  50-23  actor intended to influence.
  50-24        Sec. 14.13.  CRIMINAL CONFLICT OF INTEREST.  A person who is
  50-25  a member of the commission commits an offense if the person:
  50-26              (1)  accepts, directly or indirectly, employment or
  50-27  remuneration from a racetrack facility, association, or other
   51-1  license holder, including a facility, association, or license
   51-2  holder located or residing in another state;
   51-3              (2)  wagers or causes a wager to be placed on the
   51-4  outcome of a horse or greyhound race conducted in this state; or
   51-5              (3)  accepts or is entitled to any part of a purse to
   51-6  be paid to an animal in a race conducted in this state.
   51-7        Sec. 14.14.  OFFENSES INVOLVING A MINOR.  (a) A person
   51-8  commits an offense if the person with criminal negligence permits,
   51-9  facilitates, or allows:
  51-10              (1)  wagering by a minor at a racetrack facility; or
  51-11              (2)  entry by a child to the viewing section of a
  51-12  racetrack facility.
  51-13        (b)  An offense under Subsection (a) of this section is a
  51-14  Class B misdemeanor.
  51-15        (c)  A person commits an offense if the person is a minor and
  51-16  intentionally or knowingly engages in wagering at a racetrack.
  51-17        (d)  An offense under Subsection (c) of this section is a
  51-18  Class C misdemeanor.
  51-19        (e)  It is an affirmative defense to prosecution of an
  51-20  offense under this section that a child was accompanied by and was
  51-21  in the physical presence of a parent, guardian, or spouse who was
  51-22  18 years of age or older.
  51-23        (f)  It is an affirmative defense to prosecution of an
  51-24  offense under Subsection (a) of this section that the minor falsely
  51-25  represented the minor's age by displaying to the person an
  51-26  apparently valid Texas driver's license or identification card
  51-27  issued by the department that contains a physical description
   52-1  consistent with the minor's appearance.
   52-2        Sec. 14.15.  UNLAWFUL RACING.  A person commits an offense
   52-3  if:
   52-4              (1)  the person participates, permits, or conducts a
   52-5  greyhound or horse race at a licensed racetrack facility;
   52-6              (2)  the person wagers on the partial or final outcome
   52-7  of the horse or greyhound race or knows or reasonably should know
   52-8  that another is betting on the partial or final outcome of the
   52-9  race; and
  52-10              (3)  the race is not part of a performance or meeting
  52-11  conducted under this Act or commission rule.
  52-12        Sec. 14.16.  PARI-MUTUEL RACING WITHOUT LICENSE.  (a) A
  52-13  person commits an offense if, without a license, the person
  52-14  participates or is otherwise involved in, in any capacity,
  52-15  greyhound racing or horse racing with pari-mutuel wagering.
  52-16        (b)  It is an affirmative defense to prosecution under
  52-17  Subsection (a) of this section that the actor was a spectator or a
  52-18  person placing a wager.
  52-19        (c)  An offense under Subsection (a) of this section is a
  52-20  Class A misdemeanor, unless the actor was required by this Act to
  52-21  obtain a racetrack license, in which event it is a state jail
  52-22  felony.
  52-23        (d)  A person commits an offense if the person:
  52-24              (1)  holds a racetrack license;
  52-25              (2)  conducts a greyhound or horse race with
  52-26  pari-mutuel wagering; and
  52-27              (3)  knows or reasonably should know that another
   53-1  person is illegally wagering on the final or partial outcome of the
   53-2  race.
   53-3        Sec. 14.17.  RACING WITHOUT LICENSE.  (a) A person commits an
   53-4  offense if the person:
   53-5              (1)  conducts a greyhound or horse race without a
   53-6  racetrack license; and
   53-7              (2)  knows or reasonably should know that another
   53-8  person is betting on the final or partial outcome of the race.
   53-9        (b)  An offense under this section is a felony of the third
  53-10  degree.
  53-11        Sec. 14.18.  FAILURE TO DISPLAY CREDENTIAL.  (a) A person
  53-12  commits an offense if the person intentionally or knowingly:
  53-13              (1)  fails or refuses to display a credential to
  53-14  another after a lawful request; or
  53-15              (2)  fails or refuses to give the person's name,
  53-16  residence address, or date of birth to another after a lawful
  53-17  request.
  53-18        (b)  In this section, "lawful request" means a request from
  53-19  the commission, an authorized agent of the commission, the director
  53-20  or a commissioned officer of the Texas Department of Public Safety,
  53-21  a peace officer, or a steward or judge at any time and any
  53-22  restricted location that:
  53-23              (1)  is on a racetrack facility; and
  53-24              (2)  is not a public place.
  53-25        (c)  Except as provided by Subsection (d) of this section, an
  53-26  offense under this section is a Class B misdemeanor.
  53-27        (d)  At the punishment stage of a trial for an offense under
   54-1  Subsection (a)(1) of this section the defendant may raise an issue
   54-2  as to whether the defendant was a license holder at the time of the
   54-3  offense. If the defendant proves the issue, the offense is a Class
   54-4  C misdemeanor.
   54-5        Sec. 14.19.  SEARCH AND SEIZURE.  (a) A person consents to a
   54-6  search at a time and location described in Subsection (b) of this
   54-7  section for a prohibited device, substance, or other contraband if
   54-8  the person:
   54-9              (1)  accepts a license or other credential issued under
  54-10  this Act; or
  54-11              (2)  enters a racetrack facility under the authority of
  54-12  a license or other credential alleged to have been issued under
  54-13  this Act.
  54-14        (b)  A search may be conducted by a member of the commission,
  54-15  an authorized agent of the commission, a commissioned officer of
  54-16  the Texas Department of Public Safety, a peace officer, or a
  54-17  steward or judge at any time and at any location that is on a
  54-18  racetrack facility, except a location:
  54-19              (1)  excluded by commission rule from searches under
  54-20  this section; or
  54-21              (2)  provided by an association under commission rule
  54-22  for private storage of personal items belonging to a license holder
  54-23  entering a racetrack facility.
  54-24        (c)  A person conducting a search under Subsection (b) of
  54-25  this section may seize any prohibited device, substance, or other
  54-26  contraband discovered during the search.
  54-27        Sec. 14.20.  PROSECUTION. A person who is subject to
   55-1  prosecution for a penal offense under this Act and another law may
   55-2  be prosecuted under either law.
   55-3        Sec. 14.21.  COMMISSION AUTHORITY. This article may not be
   55-4  construed to restrict the commission's administrative authority to
   55-5  enforce this Act or commission rules to the fullest extent
   55-6  authorized by this Act.
   55-7        SECTION 43.  Section 15.01, Texas Racing Act (Article 179e,
   55-8  Vernon's Texas Civil Statutes), is amended to read as follows:
   55-9        Sec. 15.01.  GENERAL PENALTY.  If <With regard to any
  55-10  provision of this Act that is a penal offense, if> no specific
  55-11  penalty is provided for a provision of this Act that is a penal
  55-12  offense, a person who violates the <such a> provision commits a
  55-13  state jail felony <of the third degree>.
  55-14        SECTION 44.  Section 18.01(a), Texas Racing Act (Article
  55-15  179e, Vernon's Texas Civil Statutes), is amended to read as
  55-16  follows:
  55-17        (a)  The Texas Racing Commission is subject to Chapter 325,
  55-18  Government Code (Texas Sunset Act).  Unless continued in existence
  55-19  as provided by that chapter, and except as provided by Subsections
  55-20  (b) and (c) of this section, the commission is abolished and this
  55-21  Act expires September 1, 2001 <1995>.
  55-22        SECTION 45.  Article 18, Texas Racing Act (Article 179e,
  55-23  Vernon's Texas Civil Statutes), is amended by adding Section 18.08
  55-24  to read as follows:
  55-25        Sec. 18.08.  DISTANCE LEARNING.  The commission may provide
  55-26  assistance to members of the racing industry who are attempting to
  55-27  develop or implement adult or continuing education programs that
   56-1  use distance learning.
   56-2        SECTION 46.  Section 481.172, Government Code, is amended to
   56-3  read as follows:
   56-4        Sec. 481.172.  Duties.  The department shall:
   56-5              (1)  promote and advertise within the United States and
   56-6  in foreign countries, by radio, television, newspaper, and other
   56-7  means considered appropriate, tourism in this state by non-Texans,
   56-8  including persons from foreign countries, and distribute
   56-9  promotional materials through appropriate agencies, including the
  56-10  United States Travel and Tourism Agency;
  56-11              (2)  encourage travel by Texans to this state's scenic,
  56-12  historical, natural, agricultural, educational, recreational, and
  56-13  other attractions;
  56-14              (3)  coordinate and stimulate orderly and accelerated
  56-15  development of tourist attractions throughout this state;
  56-16              (4)  conduct a public relations campaign to create a
  56-17  responsible and accurate national and international image of this
  56-18  state;
  56-19              (5)  cooperate fully with the Parks and Wildlife
  56-20  Department in all matters relating to promotion of tourism;
  56-21              (6)  cooperate with the State Highway and Public
  56-22  Transportation Commission in the administration of the commission's
  56-23  collateral program of highway map distribution and operation of
  56-24  travel information bureaus and other tourist-related functions of
  56-25  the commission; <and>
  56-26              (7)  encourage communities, organizations, and
  56-27  individuals in this state to cooperate with its program by their
   57-1  activities and use of their own funds and collaborate with those
   57-2  organizations and other governmental entities in the pursuit of the
   57-3  objectives of this subchapter; and
   57-4              (8)  promote and encourage the horse racing and
   57-5  greyhound racing industry, if funds are appropriated for the
   57-6  promotion or encouragement.
   57-7        SECTION 47.  Sections 2.07, 3.01, 11.04(d), 15.02, and 18.02,
   57-8  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
   57-9  repealed.
  57-10        SECTION 48.  (a)  This Act takes effect September 1, 1995.
  57-11        (b)  The changes in law made by this Act relating to the
  57-12  qualifications and appointment of members to the Texas Racing
  57-13  Commission do not affect the entitlement of a member of the
  57-14  commission serving immediately before the effective date of this
  57-15  Act to continue to serve on the commission for the term to which
  57-16  the member was appointed.  As the terms of members of the
  57-17  commission expire or as vacancies on the commission occur, the
  57-18  governor shall make appointments to the commission to achieve as
  57-19  soon as possible the membership plan prescribed for the commission
  57-20  by the Texas Racing Act (Article 179e, Vernon's Texas Civil
  57-21  Statutes), as amended by this Act.
  57-22        (c)  The Texas Racing Commission shall review all of the
  57-23  rules of the commission before January 1, 1998.  The commission,
  57-24  following the review, shall readopt, modify, or repeal the rules
  57-25  before January 1, 1998.
  57-26        (d)  The authority for rulemaking and licensing and for any
  57-27  action relating exclusively to horse racing or exclusively to
   58-1  greyhound racing that was granted to a separate section of the
   58-2  Texas Racing Commission is transferred to the Texas Racing
   58-3  Commission.
   58-4        SECTION 49.  (a)  The changes in law made by this Act apply
   58-5  only to an offense committed on or after the effective date of this
   58-6  Act.  For purposes of this section, an offense is committed before
   58-7  the effective date of this Act if any element of the offense occurs
   58-8  before the effective date.
   58-9        (b)  An offense committed before the effective date of this
  58-10  Act is covered by the law in effect when the offense was committed,
  58-11  and the former law is continued in effect for this purpose.
  58-12        SECTION 50.  The importance of this legislation and the
  58-13  crowded condition of the calendars in both houses create an
  58-14  emergency and an imperative public necessity that the
  58-15  constitutional rule requiring bills to be read on three several
  58-16  days in each house be suspended, and this rule is hereby suspended.