74R11380 CAG-D
          By Gray, Black, Wilson                                H.B. No. 1305
          Substitute the following for H.B. No. 1305:
          By Kubiak                                         C.S.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        SECTION 11.  Section 3.021, Texas Racing Act (Article 179e,
  14-23  Vernon's Texas Civil Statutes), is amended by amending Subsection
  14-24  (b) and adding Subsection (d) to read as follows:
  14-25        (b)  To protect the health, safety, and welfare of race
  14-26  animals and participants in racing, to safeguard the interest of
  14-27  the general public, and to promote the orderly <growth and> conduct
   15-1  of racing within the state, the commission may adopt rules for the
   15-2  licensing and regulation of races and workouts at racetracks that
   15-3  do not offer pari-mutuel wagering and for workouts at training
   15-4  facilities to secure past performances and workouts.
   15-5        (d)  The commission may not adopt rules restricting
   15-6  competitive bidding or advertising by a licensee except to prohibit
   15-7  false, misleading, or deceptive practices.  In its rules to
   15-8  prohibit false, misleading, or deceptive practices, the commission
   15-9  may not include a rule that:
  15-10              (1)  restricts the use of any medium for advertising;
  15-11              (2)  restricts the use of a licensee's personal
  15-12  appearance or voice in an advertisement;
  15-13              (3)  relates to the size or duration of an
  15-14  advertisement by the licensee; or
  15-15              (4)  restricts the licensee's advertisement under a
  15-16  trade name.
  15-17        SECTION 12.  Section 3.03, Texas Racing Act (Article 179e,
  15-18  Vernon's Texas Civil Statutes), is amended to read as follows:
  15-19        Sec. 3.03.  Power of entry.  A member of the commission, an
  15-20  authorized agent of the commission, a commissioned officer of the
  15-21  Department of Public Safety, or a peace officer of the local
  15-22  jurisdiction in which the association maintains a place of business
  15-23  may enter any part of the racetrack facility <the office,
  15-24  racetrack,> or any other place of business of an association at any
  15-25  time for the purpose of enforcing and administering this Act.
  15-26        SECTION 13.  Section 3.07(a), Texas Racing Act (Article 179e,
  15-27  Vernon's Texas Civil Statutes), is amended to read as follows:
   16-1        (a)  The commission shall employ all of the judges and all of
   16-2  the stewards for the supervision of a horse race or greyhound race
   16-3  meeting.  Each horse race or greyhound race meeting shall be
   16-4  supervised by three stewards <approved by the commission> for horse
   16-5  racing or by three judges <approved by the commission> for
   16-6  greyhound racing.  Before each race meeting, the commission shall
   16-7  publish a list of stewards and judges approved by the commission
   16-8  and who are eligible to serve at the race meeting.  The commission
   16-9  shall forward the list to the association holding the race meeting
  16-10  and shall give the association an opportunity to review and comment
  16-11  on the list.  The commission, after review of the association's
  16-12  comments and after consultation with the association, shall
  16-13  designate the stewards or judges and shall designate one of the
  16-14  stewards or judges as the presiding steward or judge for each race
  16-15  meeting.  <The commission shall employ one of the stewards who
  16-16  supervises a horse race meeting who shall be the presiding steward.
  16-17  The other stewards at the race meeting shall be compensated by the
  16-18  association.  The commission shall employ one of the judges who
  16-19  supervises a greyhound race meeting who shall be the presiding
  16-20  judge; the other judges at such a race meeting shall be compensated
  16-21  by the association.>  For each race meeting, the commission shall
  16-22  employ <appoint> at least one state veterinarian <who shall be
  16-23  compensated by the commission>. <The commission by rule shall
  16-24  determine the amount of compensation for stewards, judges, and
  16-25  state veterinarians who are required to be compensated by the
  16-26  commission.>  The commission may, by rule, impose a fee on an
  16-27  association to offset the costs of compensating the <racetrack>
   17-1  stewards, judges, and state veterinarians <for that association>.
   17-2  The amount of the fee for the compensation of stewards, judges, and
   17-3  state veterinarians must be reasonable according to industry
   17-4  standards for the compensation of those officials at other
   17-5  racetracks and may not exceed the actual cost to the commission for
   17-6  compensating the officials.  All other racetrack officials shall be
   17-7  appointed by the association, with the approval of the commission.
   17-8  Compensation for those officials not compensated by the commission
   17-9  shall be determined by the association.
  17-10        SECTION 14.  Section 3.08, Texas Racing Act (Article 179e,
  17-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  17-12        Sec. 3.08.  APPEAL FROM DECISION OF STEWARDS OR JUDGES.  A
  17-13  <(a)  Except as provided by Subsection (b) of this section, a final
  17-14  decision of the stewards or judges may be appealed to the
  17-15  commission in the manner provided for a contested case under the
  17-16  Administrative Procedure and Texas Register Act (Article 6252-13a,
  17-17  Vernon's Texas Civil Statutes).>
  17-18        <(b)  In determining the distribution to holders of winning
  17-19  tickets in a pari-mutuel pool, a> decision of the stewards or
  17-20  judges on a disqualification for a foul in a race or on a finding
  17-21  of fact regarding the running of a race is final and may not be
  17-22  appealed.
  17-23        SECTION 15.  Article 3, Texas Racing Act (Article 179e,
  17-24  Vernon's Texas Civil Statutes), is amended by adding Sections
  17-25  3.13-3.16 to read as follows:
  17-26        Sec. 3.13.  RECOGNITION OF ORGANIZATION.  (a)  The commission
  17-27  by rule shall adopt criteria to recognize an organization to
   18-1  represent members of a segment of the racing industry, including
   18-2  owners, breeders, trainers, kennel operators, or other persons
   18-3  involved in the racing industry, in any interaction between the
   18-4  members of the organization and a racetrack facility or the
   18-5  commission.
   18-6        (b)  The commission may recognize an organization that meets
   18-7  the requirements of Subsection (a) of this section.
   18-8        Sec. 3.14.  DISCIPLINARY ACTIONS.  The commission shall
   18-9  revoke, suspend, or refuse to renew a license, place on probation a
  18-10  person whose license has been suspended, or reprimand a licensee
  18-11  for a violation of this Act or a rule of the commission.  If a
  18-12  license suspension is probated, the commission may require the
  18-13  licensee to report regularly to the commission on matters that are
  18-14  the basis of the probation.
  18-15        Sec. 3.15.  HEARING REQUIREMENTS.  If the commission proposes
  18-16  to suspend, revoke, or refuse to renew a person's license, the
  18-17  person is entitled to a hearing conducted by the State Office of
  18-18  Administrative Hearings.  Proceedings for a disciplinary action,
  18-19  other than those conducted by racing stewards or judges, are
  18-20  governed by the administrative procedure law, Chapter 2001,
  18-21  Government Code.  Rules of practice adopted by the commission under
  18-22  Section 2001.004, Government Code, applicable to the proceedings
  18-23  for a disciplinary action, other than those conducted by racing
  18-24  stewards or judges, may not conflict with rules adopted by the
  18-25  State Office of Administrative Hearings.
  18-26        Sec. 3.16.  RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
  18-27  (a) The commission shall adopt rules prohibiting a person from
   19-1  unlawfully influencing or affecting the outcome of a race,
   19-2  including rules relating to the use of a prohibited device or
   19-3  substance.
   19-4        (b)  The commission may require prerace testing and shall
   19-5  require postrace testing to determine whether a prohibited
   19-6  substance has been used. The testing may be by an invasive or
   19-7  noninvasive method. The commission's rules shall require
   19-8  state-of-the-art testing methods.
   19-9        (c)  Following the discovery of a prohibited device or a
  19-10  return of a test showing the presence of a prohibited substance, a
  19-11  steward or judge may summarily suspend a person who has used or
  19-12  administered the prohibited device or substance until a hearing
  19-13  before the stewards and judges. The steward or judge may also
  19-14  disqualify an animal pursuant to a commission rule adopted under
  19-15  this section.
  19-16        (d)  A person may appeal a ruling of the stewards or judges
  19-17  to the commission. The commission may stay a summary suspension
  19-18  during the period the matter is before the commission.
  19-19        (e)  The commission may require urine samples to be frozen
  19-20  for a period necessary to allow any follow-up testing to detect and
  19-21  identify  a prohibited substance. Any other specimen shall be
  19-22  maintained for testing purposes in a manner required by commission
  19-23  rule.
  19-24        (f)  If a test sample or specimen shows the presence of a
  19-25  prohibited substance, the entire sample, including any split
  19-26  portion, shall be maintained until final disposition of the matter.
  19-27        (g)  A license holder whose animal test shows the presence of
   20-1  a prohibited substance is entitled to have a split portion of the
   20-2  test sample or specimen tested at a testing facility authorized to
   20-3  perform drug testing under this Act and selected by the license
   20-4  holder. The commission shall adopt rules relating to split testing
   20-5  procedures.
   20-6        (h)  The licensed trainer of each animal is responsible for
   20-7  ensuring that no prohibited substance is administered to the
   20-8  animal.
   20-9        (i)  The commission shall adopt rules relating to the drug
  20-10  testing of license holders.
  20-11        (j)  A person who violates a rule adopted under this section
  20-12  may:
  20-13              (1)  have any license issued to the person by the
  20-14  commission revoked or suspended; or
  20-15              (2)  be barred for life or any other period from
  20-16  applying for or receiving a license issued by the commission or
  20-17  entering any portion of a racetrack facility.
  20-18        SECTION 16.  Section 5.01(a), Texas Racing Act (Article 179e,
  20-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  20-20        (a)  The commission shall prescribe forms for applications
  20-21  for licenses and shall provide each occupational licensee with a
  20-22  license certificate or credentials.
  20-23        SECTION 17.  Article 5, Texas Racing Act (Article 179e,
  20-24  Vernon's Texas Civil Statutes), is amended by adding Section 5.05
  20-25  to read as follows:
  20-26        Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The
  20-27  commission shall, in determining the amount of a license fee, set
   21-1  the fee in an amount that will cover, at least, the cost of
   21-2  conducting a criminal history check on the applicant for a license.
   21-3        (b)  The commission shall reimburse the Department of Public
   21-4  Safety for the cost of conducting a criminal history check under
   21-5  this article.
   21-6        SECTION 18.  Section 6.01, Texas Racing Act (Article 179e,
   21-7  Vernon's Texas Civil Statutes), is amended to read as follows:
   21-8        Sec. 6.01.  License required.  A person shall not conduct
   21-9  wagering on a greyhound race <meeting> or a horse race meeting
  21-10  without first obtaining a racetrack license from the commission
  21-11  <with wagering on the results without a racetrack license>. A
  21-12  person who violates this section commits an offense.
  21-13        SECTION 19.  Section 6.02(d), Texas Racing Act (Article 179e,
  21-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  21-15        (d)  A class 3 racetrack is a racetrack operated by a city,
  21-16  county, or a nonprofit fair under Article 12 of this Act. An
  21-17  association that holds a class 3 racetrack license and that
  21-18  conducted horse races in 1986 may conduct live races for a number
  21-19  of days not to exceed 16 days in a calendar year on the dates
  21-20  selected by the association.
  21-21        SECTION 20.  Section 6.04(a), Texas Racing Act (Article 179e,
  21-22  Vernon's Texas Civil Statutes), is amended to read as follows:
  21-23        (a)  The commission may issue a racetrack license to a
  21-24  qualified person if it finds that the conduct of race meetings at
  21-25  the proposed track and location will be in the public interest,
  21-26  complies with all zoning laws, and complies with this Act and the
  21-27  rules adopted by the commission and if the commission finds by
   22-1  clear and convincing evidence that the applicant will comply with
   22-2  all criminal laws of this state.  In determining whether to grant
   22-3  or deny an application for any class of racetrack license, the
   22-4  commission may consider <the degree to which any of> the following
   22-5  factors <regarding the applicant's racetrack or proposed race
   22-6  meeting serve to nurture, promote, develop, or improve the horse or
   22-7  greyhound industry in this state>:
   22-8              (1)  the applicant's financial stability;
   22-9              (2)  the applicant's resources for supplementing the
  22-10  purses for races for various breeds;
  22-11              (3)  the location of the proposed track;
  22-12              (4)  the effect of the proposed track on traffic flow;
  22-13              (5)  facilities for patrons and occupational licensees;
  22-14              (6)  facilities for race animals;
  22-15              (7)  availability to the track of support services and
  22-16  emergency services;
  22-17              (8)  the experience of the applicant's employees;
  22-18              (9)  the potential for conflict with other licensed
  22-19  race meetings;
  22-20              (10)  the anticipated effect of the race meeting on the
  22-21  greyhound or horse breeding industry in this state; and
  22-22              (11)  the anticipated effect of the race meeting on the
  22-23  state and local economy from tourism, increased employment, and
  22-24  other sources.
  22-25        SECTION 21.  Sections 6.06(a), (b), (e), and (f), Texas
  22-26  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  22-27  amended to read as follows:
   23-1        (a)  To preserve and protect the public health, welfare, and
   23-2  safety, the commission shall adopt rules relating to license
   23-3  applications, <renewal applications,> the financial responsibility,
   23-4  moral character, and ability of applicants, and all matters
   23-5  relating to the planning, construction, and operation of
   23-6  racetracks.  The commission may refuse to issue a <an original or
   23-7  renewal> racetrack license or may revoke or suspend a license if,
   23-8  after notice and hearing, it has reasonable grounds to believe and
   23-9  finds that:
  23-10              (1)  the applicant has been convicted in a court of
  23-11  competent jurisdiction of a violation of this Act or any rule
  23-12  adopted by the commission or that the applicant has aided, abetted,
  23-13  or conspired with any person to commit such a violation;
  23-14              (2)  the applicant has been convicted of a felony or of
  23-15  any crime involving moral turpitude, including convictions for
  23-16  which the punishment received was a suspended sentence, probation,
  23-17  or a nonadjudicated conviction, that is reasonably related to the
  23-18  applicant's present fitness to hold a license under this Act;
  23-19              (3)  the applicant has violated or has caused to be
  23-20  violated this Act or a rule of the commission in a manner that
  23-21  involves moral turpitude, as distinguished from a technical
  23-22  violation of this Act or of a rule;
  23-23              (4)  the applicant is unqualified, by experience or
  23-24  otherwise, to perform the duties required of a licensee under this
  23-25  Act;
  23-26              (5)  the applicant failed to answer or falsely or
  23-27  incorrectly answered a question in an original or renewal
   24-1  application;
   24-2              (6)  the applicant fails to disclose the true ownership
   24-3  or interest in a greyhound or horse as required by the rules of the
   24-4  commission;
   24-5              (7)  the applicant is indebted to the state for any
   24-6  fees or for the payment of a penalty imposed by this Act or by a
   24-7  rule of the commission;
   24-8              (8)  the applicant is not of good moral character or
   24-9  the applicant's reputation as a peaceable, law-abiding citizen in
  24-10  the community where the applicant resides is bad;
  24-11              (9)  the applicant has not yet attained the minimum age
  24-12  necessary to purchase alcoholic beverages in this state;
  24-13              (10)  the applicant is in the habit of using alcoholic
  24-14  beverages to an excess or uses a controlled substance as defined in
  24-15  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  24-16  in Chapter 483, Health and Safety Code or is mentally
  24-17  incapacitated;
  24-18              (11)  the applicant may be excluded from a track
  24-19  enclosure under Article 13 or 14 of this Act;
  24-20              (12)  the applicant has not been a United States
  24-21  citizen residing in this state for the period of 10 consecutive
  24-22  years immediately preceding the filing of the application;
  24-23              (13)  the applicant has improperly used a license
  24-24  certificate, credential, or identification card issued under this
  24-25  Act;
  24-26              (14)  the applicant is residentially domiciled with a
  24-27  person whose license has been revoked for cause within the 12
   25-1  months immediately preceding the date of the present application;
   25-2              (15)  the applicant has failed or refused to furnish a
   25-3  true copy of the application to the commission's district office in
   25-4  the district in which the premises for which the permit is sought
   25-5  are located; <or>
   25-6              (16)  the applicant is engaged or has engaged in
   25-7  activities or practices that the commission finds are detrimental
   25-8  to the best interests of the public and the sport of greyhound
   25-9  racing or horse racing; or
  25-10              (17)  the applicant fails to fully disclose the true
  25-11  owners of all interests, beneficial or otherwise, in a proposed
  25-12  racetrack facility.
  25-13        (b)  Subsection (a) of this section applies to a corporation,
  25-14  partnership, limited partnership, or any other organization or
  25-15  group whose application is comprised of more than one person if a
  25-16  shareholder, partner, limited partner <if any>, director, or
  25-17  officer is disqualified under Subsection (a) of this section.
  25-18        (e)  The <appropriate section of the> commission may
  25-19  condition the issuance of a license under this article on the
  25-20  observance of its rules.  The commission may amend the rules at any
  25-21  time and may condition the continued holding of the license on
  25-22  compliance with the rules as amended.
  25-23        (f)  The <appropriate section of the> commission may refuse
  25-24  to issue a license or may suspend or revoke a license of a licensee
  25-25  under this article who knowingly or intentionally allows access to
  25-26  an enclosure where greyhound races or horse races are conducted to
  25-27  a person who has engaged in bookmaking, touting, or illegal
   26-1  wagering, whose income is from illegal activities or enterprises,
   26-2  or who has been convicted of a violation of this Act.
   26-3        SECTION 22.  Article 6, Texas Racing Act (Article 179e,
   26-4  Vernon's Texas Civil Statutes), is amended by adding Sections 6.061
   26-5  and 6.062 to read as follows:
   26-6        Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE
   26-7  CONDITIONS.  (a)  The commission shall adopt rules implementing
   26-8  this section, including rules:
   26-9              (1)  requiring the report of and correction of:
  26-10                    (A)  an inappropriate condition on the premises
  26-11  of a racetrack facility, including a failure to properly maintain
  26-12  the facility, that interferes with the administration of this Act;
  26-13  or
  26-14                    (B)  a condition on the premises of a racetrack
  26-15  facility that makes the facility unsafe for a race participant,
  26-16  patron, or animal; and
  26-17              (2)  determining the methods and manner in which the
  26-18  executive secretary may determine and remedy inappropriate
  26-19  conditions or unsafe facilities on the premises of a racetrack
  26-20  facility, including the methods and manner in which the executive
  26-21  secretary may conduct inspections of the racetrack facility and
  26-22  remedy emergency situations.
  26-23        (b)  The executive secretary shall issue a notice of
  26-24  violation to a racetrack facility on a finding that an
  26-25  inappropriate or unsafe condition exists.
  26-26        (c)  If the executive secretary determines that an
  26-27  inappropriate or unsafe condition exists at the racetrack facility,
   27-1  the executive secretary shall order the racetrack facility to take
   27-2  action within a specified period to remedy the inappropriate
   27-3  condition or unsafe condition.  In determining the period for
   27-4  compliance, the executive secretary shall consider the nature and
   27-5  severity of the problem and the threat to the health, safety, and
   27-6  welfare of the race participants, patrons, or animals.
   27-7        (d)  The commission shall adopt rules requiring the reporting
   27-8  of any corrective action taken by a racetrack facility in response
   27-9  to an order of the executive secretary under Subsection (c) of this
  27-10  section.
  27-11        (e)  If a racetrack facility fails to take any action as
  27-12  required under Subsection (c) of this section, the executive
  27-13  secretary shall initiate an enforcement action against the
  27-14  racetrack facility.  The executive secretary may rescind any live
  27-15  or simulcast race date of any racetrack association that does not
  27-16  take corrective action within the period set by the executive
  27-17  secretary.
  27-18        (f)  The commission shall adopt rules relating to the
  27-19  commission's review of an action taken under this section by the
  27-20  executive secretary.  A  review procedure adopted under this
  27-21  subsection must be consistent with Chapter 2001, Government Code.
  27-22        Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The
  27-23  commission shall adopt a method of supervising and approving the
  27-24  construction, renovation, or maintenance of any building or
  27-25  improvement on the premises of a racetrack facility.
  27-26        (b)  The commission shall adopt rules relating to:
  27-27              (1)  the approval of plans and specifications;
   28-1              (2)  the contents of plans and specifications;
   28-2              (3)  the maintenance of records to ensure compliance
   28-3  with approved plans and specifications;
   28-4              (4)  the content and filing of construction progress
   28-5  reports by the racetrack facility to the commission;
   28-6              (5)  the inspection by the commission or others;
   28-7              (6)  the method for making a change or amendment to an
   28-8  approved plan or specification; and
   28-9              (7)  any other method of supervision or oversight
  28-10  necessary.
  28-11        (c)  If the commission has grounds to believe that an
  28-12  association has failed to comply with the requirements of this
  28-13  section, a representative of the association shall appear before
  28-14  the commission, at a public hearing, to consider the issue of
  28-15  compliance with the rules adopted under this section.
  28-16        (d)  Before a building or improvement may be used by the
  28-17  association, the commission shall determine whether the
  28-18  construction, renovation, or maintenance of the building or
  28-19  improvement was completed in accordance with the approved plans and
  28-20  specifications and whether other requirements of the commission
  28-21  were met.
  28-22        (e)  If the commission determines that the association failed
  28-23  to comply with a requirement of this section or rule adopted under
  28-24  this section, the commission shall initiate an enforcement action
  28-25  against the association.  In addition to any other authorized
  28-26  enforcement action, the commission may rescind any live or
  28-27  simulcast race date of any association that has failed to comply
   29-1  with the requirement of this section.
   29-2        SECTION 23.  Article 6, Texas Racing Act (Article 179e,
   29-3  Vernon's Texas Civil Statutes), is amended by adding Section 6.092
   29-4  to read as follows:
   29-5        Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY
   29-6  PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,
   29-7  monitoring, and auditing requirements or other appropriate
   29-8  performance measures for any organization that receives funds
   29-9  generated by live or simulcast pari-mutuel racing.
  29-10        (b)  The commission shall adopt the requirements or
  29-11  performance measures after consultation with the affected
  29-12  organization.  In adopting the rules, the commission shall give
  29-13  consideration to the concerns of the affected organization.
  29-14        (c)  An independent audit shall be conducted annually of an
  29-15  organization receiving funds generated by live or simulcast
  29-16  pari-mutuel racing.  A copy of the report shall be sent to the
  29-17  commission.  The audit shall include a verification of any
  29-18  performance report sent to or required by the commission.
  29-19        (d)  The commission may review any records or books of an
  29-20  organization that submits an independent audit to the commission as
  29-21  the commission determines necessary to confirm or further
  29-22  investigate the findings of an audit or report.
  29-23        (e)  The commission by rule may suspend or withhold funds
  29-24  from an organization that:
  29-25              (1)  it determines has failed to comply with the
  29-26  requirements or performance measures adopted under Subsection (a)
  29-27  of this section; or
   30-1              (2)  has, following an independent audit or other
   30-2  report to the commission, material questions raised on the use of
   30-3  funds by the organization.
   30-4        SECTION 24.  Section 6.17(a), Texas Racing Act (Article 179e,
   30-5  Vernon's Texas Civil Statutes), is amended to read as follows:
   30-6        (a)  A commissioners court may collect a fee not to exceed 15
   30-7  cents as an admission fee to a licensed racetrack located within
   30-8  the county.  If the racetrack is located within an incorporated
   30-9  city or town, the governing body of the city or town may collect a
  30-10  fee not to exceed 15 cents as an admission fee to a licensed
  30-11  racetrack located within the city or town.  If the racetrack is not
  30-12  located within an incorporated city or town, the court may collect
  30-13  an additional fee not to exceed 15 cents as an admission fee to a
  30-14  licensed racetrack located within the county for allocation among
  30-15  the incorporated cities or towns in the county.  If the racetrack
  30-16  is not located in an incorporated city or town, the court shall
  30-17  collect the additional fee if requested to do so by the governing
  30-18  bodies of a majority of the incorporated cities and towns in the
  30-19  county.  Allocation of the fees shall be based on the population
  30-20  within the county of the cities or towns.  An admission fee may not
  30-21  be charged for the admission to the racetrack of any person
  30-22  licensed by the commission.
  30-23        SECTION 25.  Section 7.01, Texas Racing Act (Article 179e,
  30-24  Vernon's Texas Civil Statutes), is amended to read as follows:
  30-25        Sec. 7.01.  License required.  A person shall not participate
  30-26  in racing with pari-mutuel wagering <as regulated by this Act>
  30-27  without first obtaining a license from the commission. <A person
   31-1  who violates this section commits an offense.>
   31-2        SECTION 26.  Section 7.02, Texas Racing Act (Article 179e,
   31-3  Vernon's Texas Civil Statutes), is amended by amending Subsection
   31-4  (a) and by adding Subsections (c) and (d) to read as follows:
   31-5        (a)  Each person, other than a spectator or person placing a
   31-6  wager, involved in any capacity with racing with pari-mutuel
   31-7  wagering under<, other than as a spectator, as regulated by> this
   31-8  Act<,> must obtain a license under this article.  <A person who
   31-9  violates this subsection commits an offense.>
  31-10        (c)  If an examination is required for the issuance of a
  31-11  license under this article, not later than the 30th day after the
  31-12  day on which a licensing examination is administered under this
  31-13  Act, the commission shall notify each examinee of the results of
  31-14  the examination.
  31-15        (d)  If requested in writing by a person who fails a
  31-16  licensing examination administered under this Act, the commission
  31-17  shall furnish the person with an analysis of the person's
  31-18  performance on the examination.
  31-19        SECTION 27.  Section 7.04, Texas Racing Act (Article 179e,
  31-20  Vernon's Texas Civil Statutes), is amended to read as follows:
  31-21        Sec. 7.04.  Licenses; grounds for denial, revocation, and
  31-22  suspension.  The commission, after notice and hearing, may refuse
  31-23  to issue any original or renewal license under this article or may
  31-24  revoke or suspend the license if it has reasonable grounds to
  31-25  believe and finds that:
  31-26              (1)  the applicant has been convicted in a court of
  31-27  competent jurisdiction of a violation of this Act or of any rule
   32-1  adopted by the commission or has aided, abetted, or conspired with
   32-2  any person to commit such a violation;
   32-3              (2)  the applicant has been convicted of a felony or of
   32-4  any crime involving moral turpitude that is reasonably related to
   32-5  the applicant's present fitness to hold a license under this Act;
   32-6              (3)  the applicant has violated or has caused to be
   32-7  violated this Act or a rule of the commission in a manner that
   32-8  involves moral turpitude, as distinguished from a technical
   32-9  violation of this Act or of a rule;
  32-10              (4)  the applicant is unqualified, by experience or
  32-11  otherwise, to perform the duties required of a licensee under this
  32-12  Act;
  32-13              (5)  the applicant failed to answer or has falsely or
  32-14  incorrectly answered a question in an original or renewal
  32-15  application;
  32-16              (6)  the applicant fails to disclose the true ownership
  32-17  or interest in a greyhound or horse as required by the rules of the
  32-18  commission;
  32-19              (7)  the applicant is indebted to the state for any
  32-20  fees or for the payment of a penalty imposed by this Act or by a
  32-21  rule of the commission;
  32-22              (8)  the applicant is not of good moral character or
  32-23  the applicant's reputation as a peaceable, law-abiding citizen in
  32-24  the community where the applicant resides is bad;
  32-25              (9)  the applicant is in the habit of using alcoholic
  32-26  beverages to an excess or uses a controlled substance as defined in
  32-27  Chapter 481, Health and Safety Code, or a dangerous drug as defined
   33-1  in Chapter 483, Health and Safety Code or is mentally
   33-2  incapacitated;
   33-3              (10)  the applicant may be excluded from a track
   33-4  enclosure under Article 13 or 14 of this Act;
   33-5              (11)  the commission determines that the applicant has
   33-6  improperly used a temporary pass, license certificate, credential,
   33-7  or identification card issued under this Act;
   33-8              (12)  the applicant is residentially domiciled with a
   33-9  person whose license has been revoked for cause within the 12
  33-10  months immediately preceding the date of the present application;
  33-11              (13)  the applicant has failed or refused to furnish a
  33-12  true copy of the application to the commission's district office in
  33-13  the district in which the premises for which the permit is sought
  33-14  are located; or
  33-15              (14)  the applicant is engaged or has engaged in
  33-16  activities or practices that are detrimental to the best interests
  33-17  of the public and the sport of horse racing or greyhound racing.
  33-18        SECTION 28.  Section 7.05, Texas Racing Act (Article 179e,
  33-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  33-20        Sec. 7.05.  License fees.  (a)  The commission shall adopt by
  33-21  rule a fee schedule for licenses issued under this article.
  33-22        (b)  The commission shall base the license fees on the
  33-23  relative or comparative incomes or property interests of the
  33-24  various categories of licensees, with the lower income category of
  33-25  licensees being charged nearer the minimum fee and the higher
  33-26  income category of licensees charged nearer the maximum fee.
  33-27        (c)  In setting the fee schedule under Subsection (a) of this
   34-1  section, the commission shall include the cost of criminal history
   34-2  checks determined under Section 5.05 of this Act.  The commission
   34-3  may determine the best method for recouping this cost and complying
   34-4  with the other provisions of this section, including collecting the
   34-5  costs over an extended period.
   34-6        SECTION 29.  Section 7.07, Texas Racing Act (Article 179e,
   34-7  Vernon's Texas Civil Statutes), is amended to read as follows:
   34-8        Sec. 7.07.  Term of license.  (a)  A license issued under
   34-9  this article is valid for a period set by the commission not to
  34-10  exceed 36 months following the date of its issuance.  It is
  34-11  renewable on application and payment of the fee in accordance with
  34-12  the rules of the commission.
  34-13        (b)  The commission by rule may adopt a system under which
  34-14  licenses expire on various dates during the year.  For the year in
  34-15  which the license expiration date is changed, license fees shall be
  34-16  prorated on a monthly basis so that each licensee pays only that
  34-17  portion of the license fee that is allocable to the number of
  34-18  months during which the license is valid.  On renewal of the
  34-19  license on the new expiration date, the total license renewal fee
  34-20  is payable.
  34-21        SECTION 30.  Article 7, Texas Racing Act (Article 179e,
  34-22  Vernon's Texas Civil Statutes), is amended by adding Section 7.10
  34-23  to read as follows:
  34-24        Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
  34-25  (a)  The commission may waive any prerequisite to obtaining a
  34-26  license for an applicant after reviewing the applicant's
  34-27  credentials and determining that the applicant holds a valid
   35-1  license from another state that has license requirements
   35-2  substantially equivalent to those of this state.
   35-3        (b)  The commission may waive any prerequisite to obtaining a
   35-4  license for an applicant with a valid license from another state
   35-5  with which the State of Texas has a reciprocity agreement.  The
   35-6  commission may enter into reciprocal agreements with other states
   35-7  to allow for licensing by reciprocity.
   35-8        SECTION 31.  Section 9.01, Texas Racing Act (Article 179e,
   35-9  Vernon's Texas Civil Statutes), is amended to read as follows:
  35-10        Sec. 9.01.  Texas-bred horses.  Subject to this Act and any
  35-11  rule of the commission, the <The> state horse breed registries
  35-12  shall make reasonable rules to establish the qualifications of
  35-13  accredited Texas-bred horses to promote, develop, and improve the
  35-14  breeding of horses in this state.  Rules adopted by a registry are
  35-15  subject to commission approval.
  35-16        SECTION 32.  Section 10.04, Texas Racing Act (Article 179e,
  35-17  Vernon's Texas Civil Statutes), is amended to read as follows:
  35-18        Sec. 10.04.  Texas-bred greyhounds.  Subject to this Act or
  35-19  any rule of the commission, the <The> state greyhound breed
  35-20  registry shall make reasonable rules to establish the
  35-21  qualifications of accredited Texas-bred greyhounds to promote,
  35-22  develop, and improve the breeding of greyhounds in this state.
  35-23  Rules adopted by the registry are subject to commission approval.
  35-24        SECTION 33.  Section 11.04(c), Texas Racing Act (Article
  35-25  179e, Vernon's Texas Civil Statutes), is amended to read as
  35-26  follows:
  35-27        (c)  The commission shall adopt rules prohibiting an
   36-1  association from accepting a wager made on credit and shall adopt
   36-2  rules prohibiting automatic banking machines within the enclosure.
   36-3  The commission shall prohibit patrons from using automated methods
   36-4  for obtaining additional money while the patrons are on the
   36-5  premises of the racetrack facility.
   36-6        SECTION 34.  Section 11.06, Texas Racing Act (Article 179e,
   36-7  Vernon's Texas Civil Statutes), is amended to read as follows:
   36-8        Sec. 11.06.  Minors.  <(a)>  The commission shall adopt rules
   36-9  to prohibit wagering by a minor <prevent wagering by persons who
  36-10  have not yet attained the minimum age required to purchase
  36-11  alcoholic beverages in this state> and to prohibit <prevent> a
  36-12  child <person under 16 years of age> from entering the viewing
  36-13  section of a racetrack unless accompanied by the child's <person's>
  36-14  parent or guardian.  The rules may except any conduct described as
  36-15  an affirmative defense by Section 14.14 of this Act <A person who
  36-16  intentionally, knowingly, recklessly, or with criminal negligence
  36-17  violates a rule adopted under this section commits an offense.  An
  36-18  offense under this section is a Class B misdemeanor>.
  36-19        <(b)  A person commits an offense if the person intentionally
  36-20  or knowingly engages in gaming at a racetrack when the person has
  36-21  not yet attained the minimum age required to purchase alcoholic
  36-22  beverages in this state.  An offense under this subsection is a
  36-23  Class C misdemeanor.>
  36-24        SECTION 35.  Section 11.09, Texas Racing Act (Article 179e,
  36-25  Vernon's Texas Civil Statutes), is amended to read as follows:
  36-26        Sec. 11.09.  No liability to prosecution.  The defense to
  36-27  prosecution under Chapter 47, Penal Code, that the conduct was
   37-1  authorized under this Act is available only to a person who is:
   37-2              (1)  <A person> lawfully conducting or participating in
   37-3  the conduct of pari-mutuel wagering in connection with horse racing
   37-4  or greyhound racing; or
   37-5              (2)  permitting the lawful conduct of an activity
   37-6  described by Subdivision (1) of this section on any racetrack
   37-7  facility <on any premises owned or leased by him or it under any
   37-8  license lawfully issued under this Act is not liable to prosecution
   37-9  for that conduct>.
  37-10        SECTION 36.  Article 12, Texas Racing Act (Article 179e,
  37-11  Vernon's Texas Civil Statutes), is amended by adding Section 12.04
  37-12  to read as follows:
  37-13        Sec. 12.04.  CITY-OPERATED RACETRACK.  Subject to the
  37-14  licensing requirements and other provisions of this Act, a city
  37-15  with a population of 5,000 or more that owned a racetrack facility
  37-16  in 1986 may conduct an annual race meeting if the meeting does not
  37-17  exceed 16 racing days.
  37-18        SECTION 37.  Section 13.03, Texas Racing Act (Article 179e,
  37-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  37-20        Sec. 13.03.  CRIMINAL TRESPASS <Entry after ejection>.
  37-21  <(a)>  A person, for the purposes of Section 30.05, Penal Code, is
  37-22  presumed to have received notice that entry to an enclosure was
  37-23  forbidden if the person:
  37-24              (1)  was excluded or ejected from the enclosure under
  37-25  this Act;
  37-26              (2)  possessed, displayed, or used in the enclosure a
  37-27  credential that the person was not authorized to use; or
   38-1              (3)  entered the enclosure using a falsified
   38-2  credential.  <who has been excluded or ejected from an enclosure
   38-3  under this article commits an offense if the person knowingly
   38-4  enters an enclosure of the same or another licensed racetrack
   38-5  unless the commission or a final judgment of a court has ordered
   38-6  that the rule does not apply to the person.>
   38-7        <(b)  An offense under this section is a Class A misdemeanor.>
   38-8        <(c)  The provisions of Section 7.22, Penal Code, imposing
   38-9  criminal responsibility on a corporation or association for an
  38-10  offense committed by its agent apply to conduct constituting an
  38-11  offense under this section that is performed by an agent of a
  38-12  corporation or association.>
  38-13        SECTION 38.  Article 14, Texas Racing Act (Article 179e,
  38-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  38-15          ARTICLE 14.  CRIMINAL <TOUTING AND OTHER> OFFENSES
  38-16        Sec. 14.01.  Touting.  (a)  A person commits an offense if,
  38-17  with an intent to deceive and an intent to obtain a benefit
  38-18  <knowing the information is false>, the person knowingly makes a
  38-19  false statement <or intentionally conveys> or offers, agrees to
  38-20  convey, or conveys false information about a greyhound race or
  38-21  horse race to another <others for compensation>.
  38-22        (b)  Except as provided by Subsection (c) of this section, an
  38-23  offense under this section is a Class A misdemeanor <felony of the
  38-24  third degree>.
  38-25        (c)  An offense under this section is a state jail felony <of
  38-26  the second degree> if:
  38-27              (1)  the actor is a license holder under this Act or an
   39-1  employee or member of the commission and the actor knowingly
   39-2  represents that a member <an official> or employee of the
   39-3  commission or a <of an association or an owner, trainer, jockey, or
   39-4  other> person licensed by the commission is the source of the false
   39-5  information; or
   39-6              (2)  the false statement or information was contained
   39-7  in racing selection information provided to the public. <the actor
   39-8  previously has been finally convicted of an offense under this
   39-9  section or has been convicted of a felony for which the punishment
  39-10  received was a suspended sentence, probation, or a nonadjudicated
  39-11  conviction which has not yet been fully served.>
  39-12        <(d)  The provisions of Section 7.22, Penal Code, imposing
  39-13  criminal responsibility on a corporation or association for an
  39-14  offense committed by its agent apply to conduct constituting an
  39-15  offense under this section that is performed by an agent of a
  39-16  corporation or association.>
  39-17        Sec. 14.02.  Unlawful Possession or use of credential.
  39-18  (a)  A person commits an offense if the person knowingly or
  39-19  intentionally possesses or displays a <license or> credential or
  39-20  false credential that identifies <has been issued or purports to
  39-21  have been issued by the commission and represents that> the person
  39-22  as <is> the holder of the <license or> credential and <when> the
  39-23  person knows:
  39-24              (1)  that the <license or> credential is not issued to
  39-25  the person; or
  39-26              (2)  the person is not a license holder <if the person
  39-27  impersonates in any way a person holding a license or credential
   40-1  issued by the commission>.
   40-2        (b)  An offense under this section is a Class C misdemeanor
   40-3  <felony of the third degree>.
   40-4        <(c)  The provisions of Section 7.22, Penal Code, imposing
   40-5  criminal responsibility on a corporation or association for an
   40-6  offense committed by its agent apply to conduct constituting an
   40-7  offense under this section that is performed by an agent of a
   40-8  corporation or association.>
   40-9        Sec. 14.03.  BOOKMAKING.  A person commits an offense if the
  40-10  person, inside or outside a racetrack facility, engages in
  40-11  bookmaking, as defined by Section 47.01, Penal Code, involving
  40-12  betting on the partial or final outcome of a live or simulcast race
  40-13  presented by an association under this Act or commission rule.
  40-14  <Illegal influence of race outcome><.  (a)  The commission shall
  40-15  adopt rules prohibiting the illegal influencing of the outcome of a
  40-16  race, including but not limited to the use of medication,
  40-17  stimulants, or depressants to attempt to or to influence illegally
  40-18  the outcome of a race.>
  40-19        <(b)  The commission may require prerace testing by any
  40-20  invasive or noninvasive method or methods to determine whether such
  40-21  a drug, chemical, or other substance has been administered.  The
  40-22  commission shall require postrace testing by such method or
  40-23  methods.  The commission shall adopt rules that require all such
  40-24  tests to be conducted using state-of-the-art methods.  On any
  40-25  positive test showing the presence of prohibited drugs, chemicals,
  40-26  or other substances, the stewards or racing judges may summarily
  40-27  suspend any person who has administered or applied the drug,
   41-1  chemical, or other substance or any electric device or spur pending
   41-2  hearing by the stewards or judges with the right of appeal to the
   41-3  commission.  Such a suspension may be stayed, in the discretion of
   41-4  the commission only, during the pendency of such appeal. In
   41-5  addition, the stewards or racing judges may disqualify the affected
   41-6  animal pursuant to rules adopted by the commission under this
   41-7  section.  The commission may require that urine samples be frozen
   41-8  and maintained for a period that will enable veterinarians and
   41-9  chemists to conduct follow-up tests to detect and identify
  41-10  prohibited drugs.  All other specimens shall be maintained for
  41-11  testing purposes in the manner prescribed by the commission. In the
  41-12  event a sample tests positive for a drug, chemical, or other
  41-13  substance, all samples, including the split portion, shall be
  41-14  maintained until the matter is finally adjudicated.  A licensee
  41-15  whose animal has tested positive for a drug, chemical, or other
  41-16  substance is entitled to have a split portion of the sample tested
  41-17  at a testing facility authorized to perform drug testing under
  41-18  Section 3.07 of this Act and selected by the licensee.  The
  41-19  commission shall adopt rules regarding the procedure for the split
  41-20  testing.>
  41-21        <(c)  The official licensed trainer of each such animal is
  41-22  deemed by law to be the absolute insurer that no prohibited drug,
  41-23  chemical, or other substance has been administered and shall be
  41-24  responsible to see that such a drug, chemical, or other substance
  41-25  is not administered.>
  41-26        <(d)  By applying for a license under this Act, each
  41-27  occupational licensee consents to both prerace and postrace search
   42-1  for the purpose of determining the presence of such a drug,
   42-2  chemical, or other substance or of any electrical device or other
   42-3  device that might have the effect of unnaturally depressing,
   42-4  stimulating, or exciting any animal during a race.  The commission
   42-5  shall adopt rules relating to drug testing for occupational
   42-6  licensees.>
   42-7        <(e)  A person who knowingly violates a rule adopted under
   42-8  this section may be barred, either for a period set by the
   42-9  commission or for life, from receiving any license under this Act
  42-10  or may be barred for a period set by the commission or for life
  42-11  from any premises licensed under this Act, or both.>
  42-12        <(f)  A person who knowingly violates a rule adopted under
  42-13  this section commits a felony of the third degree for the first
  42-14  offense and a felony of the second degree for a second or
  42-15  subsequent offense.>
  42-16        <(g)  A person who gives, offers or promises to give, or
  42-17  attempts to give or offer any money, bribe, or thing of value to
  42-18  any jockey, trainer, owner, groom, or other person associated with
  42-19  or interested in any stable, kennel, horse, or dog, or race in
  42-20  which any horse or dog participates, with the intention or
  42-21  understanding or agreement that such individual shall not use his
  42-22  best efforts to win such race, or shall so conduct himself in such
  42-23  race that any other participant shall thereby be assisted or
  42-24  enabled to win such race, or shall so conduct himself in such race
  42-25  as to limit his finishing or placing in such race commits an
  42-26  offense.  Such an offense is a felony of the third degree.>
  42-27        <(h)  A person who accepts, attempts to accept, offers to
   43-1  accept, or agrees to accept any money, bribe, or thing of value,
   43-2  with the intention or understanding or agreement that he will not
   43-3  use his best efforts to win any horse or dog race, in which he is
   43-4  the jockey, trainer, groom, owner, or other interested party or is
   43-5  about to participate in, or will so conduct himself in such race
   43-6  that any other horse or dog shall thereby be assisted or enabled to
   43-7  win such race, or will so conduct himself in such race as to limit
   43-8  his finishing or placing in such race commits an offense.  Such an
   43-9  offense is a felony of the third degree.>
  43-10        <(i)  A person who gives, offers to give, promises to give,
  43-11  or attempts to give any money, bribe, or thing of value to any
  43-12  person who is presiding or officiating at or who is about to
  43-13  preside or officiate at any dog or horse race with the intention or
  43-14  agreement or understanding that such person shall corruptly or
  43-15  dishonestly preside or officiate at any such race with the
  43-16  intention or purpose that the result of the race will be affected
  43-17  or influenced thereby commits an offense.  Such an offense is a
  43-18  felony of the third degree.>
  43-19        Sec. 14.04.  Illegal access.  (a)  A person commits an
  43-20  offense if the person is a license holder and the person <licensee
  43-21  who> knowingly or intentionally permits, facilitates, or allows
  43-22  access to an enclosure to another person who the person knows:
  43-23              (1)  <where races are conducted to a person who> has
  43-24  engaged in bookmaking, touting, or illegal wagering;
  43-25              (2)  derives<, whose> income <is> from illegal
  43-26  activities or enterprises;
  43-27              (3)  <, or who> has been convicted of a violation of
   44-1  this  Act; or
   44-2              (4)  is excluded by the commission from entering a
   44-3  racetrack facility<, commits an offense>.
   44-4        (b)  An offense under this section is a Class B misdemeanor
   44-5  <felony of the third degree>.
   44-6        Sec. 14.05.  Races conducted on certain Indian lands.  (a)  A
   44-7  person who is subject to this section commits an offense if the
   44-8  person intentionally or knowingly wagers on the result of a
   44-9  greyhound race or horse race conducted in this state that:
  44-10              (1)  is held on an American Indian reservation or on
  44-11  American Indian trust land located in this state; and
  44-12              (2)  is not held under the supervision of the
  44-13  commission under rules adopted under this Act.
  44-14        (b)  An offense under this section is a felony of the third
  44-15  degree.
  44-16        (c)  It is an exception to the application of this section
  44-17  that the person is a member of a recognized Texas Indian tribe who
  44-18  lives on a reservation or on trust lands located in this state.
  44-19        Sec. 14.06.  False statements.  (a)  A person commits an
  44-20  offense if the person <intentionally,> knowingly<, recklessly, or
  44-21  with criminal negligence> makes a material and false, incorrect, or
  44-22  deceptive statement to another who is conducting an investigation
  44-23  or exercising discretion under this Act or a commission rule
  44-24  <adopted under this Act>.
  44-25        (b)  In this section, the <The> term "statement" means a
  44-26  representation of fact and includes<, but is not limited to>:
  44-27              (1)  a written or oral statement <statements>; or
   45-1              (2)  a sworn or unsworn statement <statements>.
   45-2        (c)  An offense under this section is a state jail felony
   45-3  unless the statement was material in a commission action relating
   45-4  to a racetrack license, in which event, the offense is a felony of
   45-5  the third degree.
   45-6        Sec. 14.07.  HINDERING OF ENTRY OR SEARCH.  (a)  A person
   45-7  commits an offense if the person <intentionally, knowingly,
   45-8  recklessly, or> with criminal negligence refuses, denies, or
   45-9  hinders entry to another who is exercising or attempting to
  45-10  exercise a power of entry under this Act or a commission rule.
  45-11        (b)  A person commits an offense if the person with criminal
  45-12  negligence refuses, denies, hinders, interrupts, disrupts, impedes,
  45-13  or otherwise interferes with a search by a person exercising or
  45-14  attempting to exercise a power to search under this Act or a
  45-15  commission rule.
  45-16        (c) <(b)>  An offense under this section is a Class B
  45-17  misdemeanor.
  45-18        Sec. 14.08.  FORGING PARI-MUTUEL TICKET.  (a) A person
  45-19  commits an offense if the person intentionally or knowingly forges
  45-20  a pari-mutuel ticket with the intent to defraud or harm another.
  45-21        (b)  In this section, "forge" has the meaning assigned by
  45-22  Section 32.21, Penal Code.
  45-23        (c)  An offense under this section is a felony of the third
  45-24  degree.
  45-25        Sec. 14.09.  IMPERSONATING A LICENSE HOLDER.  (a) A person
  45-26  commits an offense if the person impersonates a license holder with
  45-27  the intent to induce another person to submit to the actor's
   46-1  purported authority as a license holder or to rely on the actor's
   46-2  actions as an alleged license holder.
   46-3        (b)  An offense under this section is a Class A misdemeanor.
   46-4        Sec. 14.10.  UNLAWFUL INFLUENCE ON RACING.  (a) A person
   46-5  commits an offense if the person possesses a prohibited device or
   46-6  substance on a racetrack facility.
   46-7        (b)  An offense under Subsection (a) of this section is a
   46-8  state jail felony, unless the actor possessed the device or
   46-9  substance with the intent to influence or affect the outcome of a
  46-10  horse or greyhound race in a manner contrary to this Act or a
  46-11  commission rule, in which event it is a felony of the third degree.
  46-12        (c)  A person commits an offense if, with the intent to
  46-13  influence or affect a horse or greyhound race in a manner contrary
  46-14  to this Act or a commission rule, the person:
  46-15              (1)  uses or offers to use a prohibited device; or
  46-16              (2)  uses or offers to use a prohibited substance.
  46-17        (d)  An offense under Subsection (c) of this section is a
  46-18  state jail felony.
  46-19        Sec. 14.11.  BRIBERY AND CORRUPT INFLUENCE.  (a) A person
  46-20  commits an offense if, with the intent to influence or affect the
  46-21  outcome of a race in a manner contrary to this Act or a commission
  46-22  rule, the person offers, confers, agrees to confer on another, or
  46-23  solicits, accepts, or agrees to accept from another person any
  46-24  benefit as consideration for the actions of a person who receives
  46-25  the benefit relating to the conduct, decision, opinion,
  46-26  recommendation, vote, or exercise of discretion as a license holder
  46-27  or other person associated with or interested in any stable,
   47-1  kennel, horse, greyhound, or horse or greyhound race.
   47-2        (b)  An offense under this section is a state jail felony,
   47-3  unless the recipient of the benefit is a steward, judge, or other
   47-4  racetrack official exercising authority over a horse or greyhound
   47-5  race that the person providing or offering the benefit intended to
   47-6  influence, in which event it is a felony of the third degree.
   47-7        Sec. 14.12.  COERCION AND INTIMIDATION.  (a) A person commits
   47-8  an offense if, with the intent to influence or affect the outcome
   47-9  of a race in a manner contrary to this Act or a commission rule,
  47-10  the person coerces or threatens to harm another with the intent to:
  47-11              (1)  induce another not to use the person's best
  47-12  efforts; or
  47-13              (2)  affect the recipient's conduct, decision, opinion,
  47-14  recommendation, vote, or other exercise of discretion as a license
  47-15  holder or any person associated with or interested in any stable,
  47-16  kennel, horse, greyhound, or horse or greyhound race.
  47-17        (b)  Except as provided by Subsection (c) of this section, an
  47-18  offense under this section is a state jail felony.
  47-19        (c)  An offense under this section is a felony of the third
  47-20  degree if:
  47-21              (1)  the actor is a steward, judge, or other racetrack
  47-22  official exercising authority over the horse or greyhound race the
  47-23  actor intended to influence; or
  47-24              (2)  the person threatened is a steward, judge, or
  47-25  other racetrack official exercising authority over the race the
  47-26  actor intended to influence.
  47-27        Sec. 14.13.  CRIMINAL CONFLICT OF INTEREST.  A person who is
   48-1  a member of the commission commits an offense if the person:
   48-2              (1)  accepts, directly or indirectly, employment or
   48-3  remuneration from a racetrack facility, association, or other
   48-4  license holder, including a facility, association, or license
   48-5  holder located or residing in another state;
   48-6              (2)  wagers or causes a wager to be placed on the
   48-7  outcome of a horse or greyhound race conducted in this state; or
   48-8              (3)  accepts or is entitled to any part of a purse to
   48-9  be paid to an animal in a race conducted in this state.
  48-10        Sec. 14.14.  OFFENSES INVOLVING A MINOR.  (a) A person
  48-11  commits an offense if the person with criminal negligence permits,
  48-12  facilitates, or allows:
  48-13              (1)  wagering by a minor at a racetrack facility; or
  48-14              (2)  entry by a child to the viewing section of a
  48-15  racetrack facility.
  48-16        (b)  An offense under Subsection (a) of this section is a
  48-17  Class B misdemeanor.
  48-18        (c)  A person commits an offense if the person is a minor and
  48-19  intentionally or knowingly engages in wagering at a racetrack.
  48-20        (d)  An offense under Subsection (c) of this section is a
  48-21  Class C misdemeanor.
  48-22        (e)  It is an affirmative defense to prosecution of an
  48-23  offense under this section that a child was accompanied by and was
  48-24  in the physical presence of a parent, guardian, or spouse who was
  48-25  18 years of age or older.
  48-26        (f)  It is an affirmative defense to prosecution of an
  48-27  offense under Subsection (a) of this section that the minor falsely
   49-1  represented the minor's age by displaying to the person an
   49-2  apparently valid Texas driver's license or identification card
   49-3  issued by the department that contains a physical description
   49-4  consistent with the minor's appearance.
   49-5        Sec. 14.15.  UNLAWFUL RACING.  A person commits an offense
   49-6  if:
   49-7              (1)  the person participates, permits, or conducts a
   49-8  greyhound or horse race at a licensed racetrack facility;
   49-9              (2)  the person wagers on the partial or final outcome
  49-10  of the horse or greyhound race or knows or reasonably should know
  49-11  that another is betting on the partial or final outcome of the
  49-12  race; and
  49-13              (3)  the race is not part of a performance or meeting
  49-14  conducted under this Act or commission rule.
  49-15        Sec. 14.16.  PARI-MUTUEL RACING WITHOUT LICENSE.  (a) A
  49-16  person commits an offense if, without a license, the person
  49-17  participates or is otherwise involved in, in any capacity,
  49-18  greyhound racing or horse racing with pari-mutuel wagering.
  49-19        (b)  It is an affirmative defense to prosecution under
  49-20  Subsection (a) of this section that the actor was a spectator or a
  49-21  person placing a wager.
  49-22        (c)  An offense under Subsection (a) of this section is a
  49-23  Class A misdemeanor, unless the actor was required by this Act to
  49-24  obtain a racetrack license, in which event it is a state jail
  49-25  felony.
  49-26        (d)  A person commits an offense if the person:
  49-27              (1)  holds a racetrack license;
   50-1              (2)  conducts a greyhound or horse race with
   50-2  pari-mutuel wagering; and
   50-3              (3)  knows or reasonably should know that another
   50-4  person is illegally wagering on the final or partial outcome of the
   50-5  race.
   50-6        Sec. 14.17.  RACING WITHOUT LICENSE.  (a) A person commits an
   50-7  offense if the person:
   50-8              (1)  conducts a greyhound or horse race without a
   50-9  racetrack license; and
  50-10              (2)  knows or reasonably should know that another
  50-11  person is betting on the final or partial outcome of the race.
  50-12        (b)  An offense under this section is a felony of the third
  50-13  degree.
  50-14        Sec. 14.18.  FAILURE TO DISPLAY CREDENTIAL.  (a) A person
  50-15  commits an offense if the person intentionally or knowingly:
  50-16              (1)  fails or refuses to display a credential to
  50-17  another after a lawful request; or
  50-18              (2)  fails or refuses to give the person's name,
  50-19  residence address, or date of birth to another after a lawful
  50-20  request.
  50-21        (b)  In this section, "lawful request" means a request from
  50-22  the commission, an authorized agent of the commission, the director
  50-23  or a commissioned officer of the Texas Department of Public Safety,
  50-24  a peace officer, or a steward or judge at any time and any
  50-25  restricted location that:
  50-26              (1)  is on a racetrack facility; and
  50-27              (2)  is not a public place.
   51-1        (c)  Except as provided by Subsection (d) of this section, an
   51-2  offense under this section is a Class B misdemeanor.
   51-3        (d)  At the punishment stage of a trial for an offense under
   51-4  Subsection (a)(1) of this section the defendant may raise an issue
   51-5  as to whether the defendant was a license holder at the time of the
   51-6  offense. If the defendant proves the issue, the offense is a Class
   51-7  C misdemeanor.
   51-8        Sec. 14.19.  SEARCH AND SEIZURE.  (a) A person consents to a
   51-9  search at a time and location described in Subsection (b) of this
  51-10  section for a prohibited device, substance, or other contraband if
  51-11  the person:
  51-12              (1)  accepts a license or other credential issued under
  51-13  this Act; or
  51-14              (2)  enters a racetrack facility under the authority of
  51-15  a license or other credential alleged to have been issued under
  51-16  this Act.
  51-17        (b)  A search may be conducted by a member of the commission,
  51-18  an authorized agent of the commission, a commissioned officer of
  51-19  the Texas Department of Public Safety, a peace officer, or a
  51-20  steward or judge at any time and at any location that is on a
  51-21  racetrack facility, except a location:
  51-22              (1)  excluded by commission rule from searches under
  51-23  this section; or
  51-24              (2)  provided by an association under commission rule
  51-25  for private storage of personal items belonging to a license holder
  51-26  entering a racetrack facility.
  51-27        (c)  A person conducting a search under Subsection (b) of
   52-1  this section may seize any prohibited device, substance, or other
   52-2  contraband discovered during the search.
   52-3        Sec. 14.20.  PROSECUTION. A person who is subject to
   52-4  prosecution for a penal offense under this Act and another law may
   52-5  be prosecuted under either law.
   52-6        Sec. 14.21.  COMMISSION AUTHORITY. This article may not be
   52-7  construed to restrict the commission's administrative authority to
   52-8  enforce this Act or commission rules to the fullest extent
   52-9  authorized by this Act.
  52-10        SECTION 39.  Section 15.01, Texas Racing Act (Article 179e,
  52-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  52-12        Sec. 15.01.  GENERAL PENALTY.  If <With regard to any
  52-13  provision of this Act that is a penal offense, if> no specific
  52-14  penalty is provided for a provision of this Act that is a penal
  52-15  offense, a person who violates the <such a> provision commits a
  52-16  state jail felony <of the third degree>.
  52-17        SECTION 40.  Section 18.01(a), Texas Racing Act (Article
  52-18  179e, Vernon's Texas Civil Statutes), is amended to read as
  52-19  follows:
  52-20        (a)  The Texas Racing Commission is subject to Chapter 325,
  52-21  Government Code (Texas Sunset Act).  Unless continued in existence
  52-22  as provided by that chapter, and except as provided by Subsections
  52-23  (b) and (c) of this section, the commission is abolished and this
  52-24  Act expires September 1, 2001 <1995>.
  52-25        SECTION 41.  Article 18, Texas Racing Act (Article 179e,
  52-26  Vernon's Texas Civil Statutes), is amended by adding Section 18.08
  52-27  to read as follows:
   53-1        Sec. 18.08.  DISTANCE LEARNING.  The commission may provide
   53-2  assistance to members of the racing industry who are attempting to
   53-3  develop or implement adult or continuing education programs that
   53-4  use distance learning.
   53-5        SECTION 42.  Section 481.172, Government Code, is amended to
   53-6  read as follows:
   53-7        Sec. 481.172.  Duties.  The department shall:
   53-8              (1)  promote and advertise within the United States and
   53-9  in foreign countries, by radio, television, newspaper, and other
  53-10  means considered appropriate, tourism in this state by non-Texans,
  53-11  including persons from foreign countries, and distribute
  53-12  promotional materials through appropriate agencies, including the
  53-13  United States Travel and Tourism Agency;
  53-14              (2)  encourage travel by Texans to this state's scenic,
  53-15  historical, natural, agricultural, educational, recreational, and
  53-16  other attractions;
  53-17              (3)  coordinate and stimulate orderly and accelerated
  53-18  development of tourist attractions throughout this state;
  53-19              (4)  conduct a public relations campaign to create a
  53-20  responsible and accurate national and international image of this
  53-21  state;
  53-22              (5)  cooperate fully with the Parks and Wildlife
  53-23  Department in all matters relating to promotion of tourism;
  53-24              (6)  cooperate with the State Highway and Public
  53-25  Transportation Commission in the administration of the commission's
  53-26  collateral program of highway map distribution and operation of
  53-27  travel information bureaus and other tourist-related functions of
   54-1  the commission; <and>
   54-2              (7)  encourage communities, organizations, and
   54-3  individuals in this state to cooperate with its program by their
   54-4  activities and use of their own funds and collaborate with those
   54-5  organizations and other governmental entities in the pursuit of the
   54-6  objectives of this subchapter; and
   54-7              (8)  promote and encourage the horse racing and
   54-8  greyhound racing industry, if funds are appropriated for the
   54-9  promotion or encouragement.
  54-10        SECTION 43.  Sections 2.07, 3.01, 11.04(d), 15.02, and 18.02,
  54-11  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  54-12  repealed.
  54-13        SECTION 44.  (a)  This Act takes effect September 1, 1995.
  54-14        (b)  The changes in law made by this Act relating to the
  54-15  qualifications and appointment of members to the Texas Racing
  54-16  Commission do not affect the entitlement of a member of the
  54-17  commission serving immediately before the effective date of this
  54-18  Act to continue to serve on the commission for the term to which
  54-19  the member was appointed.  As the terms of members of the
  54-20  commission expire or as vacancies on the commission occur, the
  54-21  governor shall make appointments to the commission to achieve as
  54-22  soon as possible the membership plan prescribed for the commission
  54-23  by the Texas Racing Act (Article 179e, Vernon's Texas Civil
  54-24  Statutes), as amended by this Act.
  54-25        (c)  The Texas Racing Commission shall review all of the
  54-26  rules of the commission before January 1, 1998.  The commission,
  54-27  following the review, shall readopt, modify, or repeal the rules
   55-1  before January 1, 1998.
   55-2        (d)  The authority for rulemaking and licensing and for any
   55-3  action relating exclusively to horse racing or exclusively to
   55-4  greyhound racing that was granted to a separate section of the
   55-5  Texas Racing Commission is transferred to the Texas Racing
   55-6  Commission.
   55-7        SECTION 45.  (a)  The changes in law made by this Act apply
   55-8  only to an offense committed on or after the effective date of this
   55-9  Act.  For purposes of this section, an offense is committed before
  55-10  the effective date of this Act if any element of the offense occurs
  55-11  before the effective date.
  55-12        (b)  An offense committed before the effective date of this
  55-13  Act is covered by the law in effect when the offense was committed,
  55-14  and the former law is continued in effect for this purpose.
  55-15        SECTION 46.  The importance of this legislation and the
  55-16  crowded condition of the calendars in both houses create an
  55-17  emergency and an imperative public necessity that the
  55-18  constitutional rule requiring bills to be read on three several
  55-19  days in each house be suspended, and this rule is hereby suspended.