By Gray, Black, Wilson                                H.B. No. 1305
       74R5724 CAG-D
                                 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.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 1.02, Texas Racing Act (Article 179e,
    1-7  Vernon's Texas Civil Statutes), is amended to read as follows:
    1-8        Sec. 1.02.  Purposes.  The purpose <purposes> of this Act is
    1-9  <are> to <encourage agriculture, the horse-breeding industry, the
   1-10  horse-training industry, the greyhound-breeding industry, tourism,
   1-11  and employment opportunities in this state related to horse racing
   1-12  and greyhound racing and to> provide for the strict regulation of
   1-13  horse racing and greyhound racing and the control of pari-mutuel
   1-14  wagering in connection with that racing.
   1-15        SECTION 2.  Section 2.02, Texas Racing Act (Article 179e,
   1-16  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-17        Sec. 2.02.  Membership.  (a)  The commission consists of six
   1-18  members appointed by the governor with the advice and consent of
   1-19  the senate and two ex officio members who shall have the right to
   1-20  vote.  The ex officio members are the chairman of the Public Safety
   1-21  Commission and the comptroller of public accounts.  <In making
   1-22  appointments to the commission, the governor shall strive to
   1-23  achieve representation by all the population groups of the state
   1-24  with regard to economic status, sex, race, and ethnicity.>
    2-1        (b)  Appointments to the commission shall be made without
    2-2  regard to the race, color, disability, sex, religion, age, or
    2-3  national origin of the appointees.  <One appointed member must be a
    2-4  veterinarian licensed to practice in this state who specializes in
    2-5  the treatment of small animals.  One appointed member must be a
    2-6  veterinarian licensed to practice in this state who specializes in
    2-7  the treatment of large animals.  Two appointed members must be
    2-8  individuals who are not veterinarians and who have special
    2-9  knowledge or experience related to greyhound racing.  Two appointed
   2-10  members must be individuals who are not veterinarians and who have
   2-11  special knowledge or experience related to horse racing.>
   2-12        <(c)  In making appointments to the commission, the governor
   2-13  shall attempt to reflect the minority groups found in the state's
   2-14  general populace.>
   2-15        SECTION 3.  Section 2.03, Texas Racing Act (Article 179e,
   2-16  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-17        Sec. 2.03.  Term of office.  (a)  Appointed <Except for the
   2-18  initial appointments, appointed> members hold office for staggered
   2-19  terms of six years with two members' terms expiring February 1 of
   2-20  each odd-numbered year.  A member holds office until that member's
   2-21  successor is appointed and qualifies.
   2-22        (b)  <In making the initial appointments, the governor shall
   2-23  designate two appointed members for a term expiring February 1,
   2-24  1989, two for a term expiring February 1, 1991, and two for a term
   2-25  expiring February 1, 1993.  The governor shall make the initial
   2-26  appointments on or before February 1, 1987.>
   2-27        <(c)>  The ex officio members hold office on the commission
    3-1  for the time for which they hold their other offices.
    3-2        SECTION 4.  Section 2.05, Texas Racing Act (Article 179e,
    3-3  Vernon's Texas Civil Statutes), is amended to read as follows:
    3-4        Sec. 2.05.  Eligibility.  (a)  The appointed members of the
    3-5  commission must be representatives of the general public and have
    3-6  general knowledge of business or agribusiness.  A person is not
    3-7  eligible for appointment as a public member of the commission if
    3-8  the person or the person's spouse:
    3-9              (1)  is registered, certified, or licensed by the
   3-10  commission, except as a commissioner;
   3-11              (2)  is employed by the commission or participates in
   3-12  the management of a business entity or other organization regulated
   3-13  by the commission or receiving funds from the commission;
   3-14              (3)  owns or controls, directly or indirectly, more
   3-15  than a 10 percent interest in a business entity or other
   3-16  organization regulated by the commission or receiving funds from
   3-17  the commission; or
   3-18              (4)  uses or receives a substantial amount of tangible
   3-19  goods, services, or funds from the commission, other than
   3-20  compensation or reimbursement authorized by law for commission
   3-21  membership, attendance, or expenses.
   3-22        (b)  A person is not eligible to be an appointed member of
   3-23  the commission if that person owns any financial interest in a
   3-24  racetrack or its operation or if that person is related within the
   3-25  second degree by affinity or the third degree by consanguinity, as
   3-26  determined under Subchapter B, Chapter 573, Government Code
   3-27  <Article 5996h, Revised Statutes>, to a person who owns any
    4-1  financial interest in a racetrack or its operation.
    4-2        (c)  Each person appointed to or employed by the commission
    4-3  is subject to all background checks and qualification criteria
    4-4  required to hold a racetrack license or other license under this
    4-5  Act.
    4-6        (d)  A person who has been convicted of a felony or of any
    4-7  crime involving moral turpitude is not eligible for appointment to
    4-8  the commission.
    4-9        SECTION 5.  Article 2, Texas Racing Act (Article 179e,
   4-10  Vernon's Texas Civil Statutes), is amended by adding Sections
   4-11  2.071-2.074 to read as follows:
   4-12        Sec. 2.071.  CONFLICT OF INTEREST.  (a)  An officer,
   4-13  employee, or paid consultant of a Texas trade association in the
   4-14  field of horse or greyhound racing or breeding may not be a member
   4-15  of the commission or employee of the commission who is exempt from
   4-16  the state's position classification plan or is compensated at or
   4-17  above the amount prescribed by the General Appropriations Act for
   4-18  step 1, salary group 12, of the position classification salary
   4-19  schedule.
   4-20        (b)  A person who is the spouse of an officer, manager, or
   4-21  paid consultant of such a Texas trade association may not be a
   4-22  member of the commission and may not be an employee of the
   4-23  commission who is exempt from the state's position classification
   4-24  plan or is compensated at or above the amount prescribed by the
   4-25  General Appropriations Act for step 1, salary group 12, of the
   4-26  position classification salary schedule.
   4-27        (c)  For the purposes of this section, a Texas trade
    5-1  association is a nonprofit, cooperative, and voluntarily joined
    5-2  association of business or professional competitors in this state
    5-3  designed to assist its members and its industry or profession in
    5-4  dealing with mutual business or professional problems and in
    5-5  promoting their common interest.
    5-6        Sec. 2.072.  LOBBYIST RESTRICTION.  A person may not serve as
    5-7  a member of the commission or act as the general counsel to the
    5-8  commission if the person is required to register as a lobbyist
    5-9  under Chapter 305, Government Code, because of the person's
   5-10  activities for compensation on behalf of a profession related to
   5-11  the operation of the commission.
   5-12        Sec. 2.073.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
   5-13  removal from the commission if a member:
   5-14              (1)  does not have at the time of appointment the
   5-15  qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
   5-16              (2)  does not maintain during service on the commission
   5-17  the qualifications required by Section 2.02 or 2.05 of this Act;
   5-18              (3)  violates a prohibition established by Section
   5-19  2.05, 2.07, 2.071, or 2.072 of this Act;
   5-20              (4)  cannot because of illness or disability discharge
   5-21  the member's duties for a substantial part of the term for which
   5-22  the member is appointed; or
   5-23              (5)  is absent from more than half of the regularly
   5-24  scheduled commission meetings that the member is eligible to attend
   5-25  during a calendar year unless the absence is excused by majority
   5-26  vote of the commission.
   5-27        (b)  The validity of an action of the commission is not
    6-1  affected by the fact that it is taken when a ground for removal of
    6-2  a commission member exists.
    6-3        (c)  If the executive secretary has knowledge that a
    6-4  potential ground for removal exists, the executive secretary shall
    6-5  notify the presiding officer of the commission of the potential
    6-6  ground.  The presiding officer shall then notify the governor and
    6-7  the attorney general that a potential ground for removal exists.
    6-8  If the potential ground for removal involves the presiding officer,
    6-9  the executive secretary shall notify the next highest officer of
   6-10  the commission, who shall notify the governor and the attorney
   6-11  general that a potential ground for removal exists.
   6-12        Sec. 2.074.  MEMBER TRAINING.  (a)  Before a member of the
   6-13  commission may assume the member's duties and before the member may
   6-14  be confirmed by the senate, the member must complete at least one
   6-15  course of the training program established under this section.
   6-16        (b)  A training program established under this section shall
   6-17  provide information to the member regarding:
   6-18              (1)  the enabling legislation that created the
   6-19  commission;
   6-20              (2)  the programs operated by the agency;
   6-21              (3)  the role and functions of the agency;
   6-22              (4)  the rules of the agency with an emphasis on the
   6-23  rules that relate to disciplinary and investigatory authority;
   6-24              (5)  the current budget for the agency;
   6-25              (6)  the results of the most recent formal audit of the
   6-26  agency;
   6-27              (7)  the requirements of the:
    7-1                    (A)  open meetings law, Chapter 551, Government
    7-2  Code;
    7-3                    (B)  open records law, Chapter 552, Government
    7-4  Code; and
    7-5                    (C)  administrative procedure law, Chapter 2001,
    7-6  Government Code;
    7-7              (8)  the requirements of the conflict of interest laws
    7-8  and other laws relating to public officials; and
    7-9              (9)  any applicable ethics policies adopted by the
   7-10  agency or the Texas Ethics Commission.
   7-11        SECTION 6.  Section 2.10, Texas Racing Act (Article 179e,
   7-12  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-13        Sec. 2.10.  PRESIDING OFFICER <CHAIRMAN>.  The governor shall
   7-14  designate a <one> member of the commission as the presiding officer
   7-15  <chairman> of the commission to serve in that capacity at the
   7-16  pleasure of the governor.
   7-17        SECTION 7.  Section 2.11, Texas Racing Act (Article 179e,
   7-18  Vernon's Texas Civil Statutes), is amended by amending Subsection
   7-19  (b) and adding Subsection (d) to read as follows:
   7-20        (b)  A majority of the commission constitutes a quorum.  <A
   7-21  majority of a section of the commission constitutes a quorum for
   7-22  purposes of conducting business related to matters under the
   7-23  exclusive jurisdiction of that section.>
   7-24        (d)  The commission shall develop and implement policies that
   7-25  provide the public with a reasonable opportunity to appear before
   7-26  the commission and to speak on any issue under the jurisdiction of
   7-27  the commission.
    8-1        SECTION 8.  Article 2, Texas Racing Act (Article 179e,
    8-2  Vernon's Texas Civil Statutes), is amended by adding Sections
    8-3  2.17-2.25 to read as follows:
    8-4        Sec. 2.17.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  The
    8-5  commission is subject to the open meetings law, Chapter 551,
    8-6  Government Code, and the administrative procedure law, Chapter
    8-7  2001, Government Code.
    8-8        Sec. 2.18.  ANNUAL ACCOUNTING.  The commission shall prepare
    8-9  annually a complete and detailed written report accounting for all
   8-10  funds received and disbursed by the commission during the preceding
   8-11  fiscal year.  The annual report must meet the reporting
   8-12  requirements applicable to financial reporting provided in the
   8-13  General Appropriations Act.
   8-14        Sec. 2.19.  FUNDS PAID TO COMMISSION.  All money paid to the
   8-15  commission under this Act is subject to Subchapter F, Chapter 404,
   8-16  Government Code.
   8-17        Sec. 2.20.  EMPLOYMENT PRACTICES.  (a)  The executive
   8-18  secretary or the executive secretary's designee shall develop an
   8-19  intra-agency career ladder program that addresses opportunities for
   8-20  mobility and advancement for employees within the commission.  The
   8-21  program shall require intra-agency posting of all positions
   8-22  concurrently with any public posting.
   8-23        (b)  The executive secretary or the executive secretary's
   8-24  designee shall develop a system of annual performance evaluations
   8-25  that are based on documented employee performance.  All merit pay
   8-26  for commission employees must be based on the system established
   8-27  under this subsection.
    9-1        (c)  The executive secretary or the executive secretary's
    9-2  designee shall prepare and maintain a written policy statement to
    9-3  assure implementation of a program of equal employment opportunity
    9-4  under which all personnel transactions are made without regard to
    9-5  race, color, disability, sex, religion, age, or national origin.
    9-6  The policy statement must include:
    9-7              (1)  personnel policies, including policies relating to
    9-8  recruitment, evaluation, selection, appointment, training, and
    9-9  promotion of personnel that are in compliance with the requirements
   9-10  of Chapter 21, Labor Code;
   9-11              (2)  a comprehensive analysis of the commission
   9-12  workforce that meets federal and state guidelines;
   9-13              (3)  procedures by which a determination can be made
   9-14  about the extent of underuse in the commission workforce of all
   9-15  persons for whom federal or state guidelines encourage a more
   9-16  equitable balance; and
   9-17              (4)  reasonable methods to appropriately address those
   9-18  areas of underuse.
   9-19        (d)  A policy statement prepared under Subsection (c) of this
   9-20  section must cover an annual period, be updated annually and
   9-21  reviewed by the Texas Commission on Human Rights for compliance
   9-22  with Subsection (c)(1) of this section, and be filed with the
   9-23  governor's office.
   9-24        (e)  The governor's office shall deliver a biennial report to
   9-25  the legislature based on the information received under Subsection
   9-26  (d) of this section.  The report may be made separately or as a
   9-27  part of other biennial reports made to the legislature.
   10-1        Sec. 2.21.  STANDARDS OF CONDUCT.  The executive secretary or
   10-2  the executive secretary's designee shall provide to members of the
   10-3  commission and to agency employees, as often as necessary,
   10-4  information regarding their qualification for office or employment
   10-5  under this Act and their responsibilities under applicable laws
   10-6  relating to standards of conduct for state officers or employees.
   10-7        Sec. 2.22.  DIVISION OF RESPONSIBILITY.  The commission shall
   10-8  develop and implement policies that clearly separate the
   10-9  policymaking responsibilities of the commission and the management
  10-10  responsibilities of the executive secretary and the staff of the
  10-11  commission.
  10-12        Sec. 2.23.  PROGRAM AND FACILITY ACCESSIBILITY.  The
  10-13  commission shall comply with federal and state laws related to
  10-14  program and facility accessibility.  The executive secretary shall
  10-15  also prepare and maintain a written plan that describes how a
  10-16  person who does not speak English can be provided reasonable access
  10-17  to the commission's programs and services.
  10-18        Sec. 2.24.  INFORMATION TO PUBLIC.  (a)  The commission shall
  10-19  prepare information of public interest describing the functions of
  10-20  the commission and the procedures by which complaints are filed
  10-21  with and resolved by the commission.  The commission shall make the
  10-22  information available to the public and appropriate state agencies.
  10-23        (b)  The commission by rule shall establish methods by which
  10-24  racetrack patrons are notified of the name, mailing address, and
  10-25  telephone number of the commission for the purpose of directing
  10-26  complaints to the commission.  The commission may provide for that
  10-27  notification:
   11-1              (1)  on every race performance program provided by each
   11-2  racetrack association; or
   11-3              (2)  on signs prominently displayed in the common
   11-4  public areas on the premises of each racetrack association.
   11-5        Sec. 2.25.  COMPLAINT HANDLING.  (a)  The commission shall
   11-6  keep information about each complaint filed with the commission.
   11-7  The information shall include:
   11-8              (1)  the date the complaint is received;
   11-9              (2)  the name of the complainant;
  11-10              (3)  the subject matter of the complaint;
  11-11              (4)  a record of all persons contacted in relation to
  11-12  the complaint;
  11-13              (5)  a summary of the results of the review or
  11-14  investigation of the complaint; and
  11-15              (6)  for complaints for which the agency took no
  11-16  action, an explanation of the reason the complaint was closed
  11-17  without action.
  11-18        (b)  The commission shall keep a file about each written
  11-19  complaint filed with the commission that the agency has authority
  11-20  to resolve.  The commission shall provide to the person filing the
  11-21  complaint and the persons or entities complained about the
  11-22  commission's policies and procedures pertaining to complaint
  11-23  investigation and resolution.  The commission, at least quarterly
  11-24  and until final disposition of the complaint, shall notify the
  11-25  person filing the complaint and the persons or entities complained
  11-26  about of the status of the complaint unless the notice would
  11-27  jeopardize an undercover investigation.
   12-1        SECTION 9.  Section 3.01, Texas Racing Act (Article 179e,
   12-2  Vernon's Texas Civil Statutes), is amended to read as follows:
   12-3        Sec. 3.01.  COMMISSION ACTIONS <SECTIONS>.  <(a)>  For the
   12-4  purposes of rulemaking and licensing and for any action relating
   12-5  exclusively to horse racing or <exclusively> to greyhound racing,
   12-6  the commission shall <operate as separate sections.>
   12-7        <(b)  For issues related to greyhound racing, the
   12-8  veterinarian member who specializes in the treatment of small
   12-9  animals, the members who have special knowledge or experience
  12-10  related to greyhound racing, and the two ex officio members shall
  12-11  exercise exclusive jurisdiction.  For issues related to horse
  12-12  racing, the veterinarian member who specializes in the treatment of
  12-13  large animals, the members who have special knowledge or experience
  12-14  related to horse racing, and the two ex officio members shall
  12-15  exercise exclusive jurisdiction.>
  12-16        <(c)  On matters of general application to both greyhound and
  12-17  horse racing, the commission shall> act as a single body.
  12-18        SECTION 10.  Section 3.021, Texas Racing Act (Article 179e,
  12-19  Vernon's Texas Civil Statutes), is amended by amending Subsection
  12-20  (b) and adding Subsection (d) to read as follows:
  12-21        (b)  To protect the health, safety, and welfare of race
  12-22  animals and participants in racing, to safeguard the interest of
  12-23  the general public, and to promote the orderly <growth and> conduct
  12-24  of racing within the state, the commission may adopt rules for the
  12-25  licensing and regulation of races and workouts at racetracks that
  12-26  do not offer pari-mutuel wagering and for workouts at training
  12-27  facilities to secure past performances and workouts.
   13-1        (d)  The commission may not adopt rules restricting
   13-2  competitive bidding or advertising by a licensee except to prohibit
   13-3  false, misleading, or deceptive practices.  In its rules to
   13-4  prohibit false, misleading, or deceptive practices, the commission
   13-5  may not include a rule that:
   13-6              (1)  restricts the use of any medium for advertising;
   13-7              (2)  restricts the use of a licensee's personal
   13-8  appearance or voice in an advertisement;
   13-9              (3)  relates to the size or duration of an
  13-10  advertisement by the licensee; or
  13-11              (4)  restricts the licensee's advertisement under a
  13-12  trade name.
  13-13        SECTION 11.  Section 3.07(a), Texas Racing Act (Article 179e,
  13-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  13-15        (a)  Each horse race or greyhound race meeting shall be
  13-16  supervised by three stewards employed by the commission <approved
  13-17  by the commission> for horse racing or by three judges employed by
  13-18  the commission <approved by the commission> for greyhound racing.
  13-19  The commission shall employ all <one> of the stewards who supervise
  13-20  <supervises> a horse race meeting <who shall be the presiding
  13-21  steward. The other stewards at the race meeting shall be
  13-22  compensated by the association>.  The commission shall employ all
  13-23  <one> of the judges who supervise <supervises> a greyhound race
  13-24  meeting <who shall be the presiding judge; the other judges at such
  13-25  a race meeting shall be compensated by the association>.  The
  13-26  commission shall designate one of the stewards or judges as the
  13-27  presiding steward or judge for each race meeting.  For each race
   14-1  meeting, the commission shall appoint at least one state
   14-2  veterinarian who shall be compensated by the commission. The
   14-3  commission by rule shall determine the amount of compensation for
   14-4  the <stewards, judges, and> state veterinarians who are required to
   14-5  be compensated by the commission.  The commission may impose a fee
   14-6  on an association to offset the costs of compensating the
   14-7  <racetrack> stewards, judges, and state veterinarians <for that
   14-8  association>.  The amount of the fee for the compensation of
   14-9  stewards, judges, and state veterinarians must be reasonable
  14-10  according to industry standards for the compensation of those
  14-11  officials at other racetracks and may not exceed the actual cost to
  14-12  the commission for compensating the officials.  All other racetrack
  14-13  officials shall be appointed by the association, with the approval
  14-14  of the commission.  Compensation for those officials not
  14-15  compensated by the commission shall be determined by the
  14-16  association.
  14-17        SECTION 12.  Section 3.08(a), Texas Racing Act (Article 179e,
  14-18  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-19        (a)  Except as provided by Subsection (b) of this section, a
  14-20  final decision of the stewards or judges may be appealed to the
  14-21  commission in the manner provided for a contested case under
  14-22  Chapter 2001, Government Code <the Administrative Procedure and
  14-23  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  14-24  Statutes)>.
  14-25        SECTION 13.  Article 3, Texas Racing Act (Article 179e,
  14-26  Vernon's Texas Civil Statutes), is amended by adding Sections
  14-27  3.13-3.17 to read as follows:
   15-1        Sec. 3.13.  REGULATION OF INAPPROPRIATE OR UNSAFE CONDITIONS.
   15-2  (a)  The commission shall adopt rules implementing this section,
   15-3  including rules:
   15-4              (1)  requiring the report of and correction of:
   15-5                    (A)  an inappropriate condition on the premises
   15-6  of a racetrack facility that interferes with the administration of
   15-7  this Act; or
   15-8                    (B)  a condition on the premises of a racetrack
   15-9  facility that makes the facility unsafe for a race participant,
  15-10  patron, or animal; and
  15-11              (2)  determining the methods and manner in which the
  15-12  executive secretary may determine and remedy inappropriate
  15-13  conditions or unsafe facilities on the premises of a racetrack,
  15-14  including the methods and manner in which the executive secretary
  15-15  may remedy emergency situations.
  15-16        (b)  The executive secretary shall issue a notice of
  15-17  violation to a racetrack facility on a finding that an
  15-18  inappropriate or unsafe condition exists.
  15-19        (c)  If the executive secretary determines that an
  15-20  inappropriate or unsafe condition exists at the racetrack facility,
  15-21  the executive secretary shall order the racetrack facility to take
  15-22  action within a specified period to remedy the inappropriate
  15-23  condition or unsafe condition.  In determining the period for
  15-24  compliance, the executive secretary shall consider the nature and
  15-25  severity of the problem and the threat to the health, safety, and
  15-26  welfare of the race participants, patrons, or animals.
  15-27        (d)  The commission shall adopt rules requiring the reporting
   16-1  of any corrective action taken by a racetrack facility in response
   16-2  to an order of the executive secretary under Subsection (c) of this
   16-3  section.
   16-4        (e)  If a racetrack facility fails to take any action as
   16-5  required under Subsection (c) of this section, the executive
   16-6  secretary shall initiate an enforcement action against the
   16-7  racetrack facility.  The executive secretary may rescind any live
   16-8  or simulcast race date of any racetrack association that does not
   16-9  take corrective action within the period set by the executive
  16-10  secretary.
  16-11        (f)  The commission shall adopt rules relating to the
  16-12  commission's review of an action taken under this section by the
  16-13  executive secretary.  A rule adopted under this subsection must be
  16-14  consistent with Chapter 2001, Government Code.
  16-15        Sec. 3.14.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The
  16-16  commission shall adopt a method of supervising and approving the
  16-17  construction, renovation, or maintenance of any building or
  16-18  improvement on the premises of a racetrack facility.
  16-19        (b)  The commission shall adopt rules relating to:
  16-20              (1)  the approval of plans and specifications;
  16-21              (2)  the contents of plans and specifications;
  16-22              (3)  the maintenance of records to ensure compliance
  16-23  with approved plans and specifications;
  16-24              (4)  the content and filing of construction progress
  16-25  reports by the racetrack facility to the commission;
  16-26              (5)  the inspection by the commission or others;
  16-27              (6)  the method for making a change or amendment to an
   17-1  approved plan or specification; and
   17-2              (7)  any other method of supervision or oversight
   17-3  necessary.
   17-4        (c)  If the commission has grounds to believe that a
   17-5  racetrack facility has failed to comply with the requirements of
   17-6  this section, the holder of a racetrack license shall appear before
   17-7  the commission, at a public hearing, to consider the issue of
   17-8  compliance with the rules adopted under this section.
   17-9        (d)  Before a building or improvement may be used by the
  17-10  racetrack facility, the commission shall determine whether the
  17-11  construction, renovation, or maintenance of the building or
  17-12  improvement was completed in accordance with the approved plans and
  17-13  specifications and whether other requirements of the commission
  17-14  were met.
  17-15        (e)  If the commission determines that the facility failed to
  17-16  comply with a requirement of this section or rule adopted under
  17-17  this section, the commission shall initiate an enforcement action
  17-18  against the racetrack facility.  In addition to any other
  17-19  authorized enforcement action, the commission may rescind any live
  17-20  or simulcast race date of any racetrack association that has failed
  17-21  to comply with the requirement of this section.
  17-22        Sec. 3.15.  RECOGNITION OF ORGANIZATION.  (a)  The commission
  17-23  by rule shall adopt criteria to recognize an organization to
  17-24  represent members of a segment of the racing industry, including
  17-25  owners, breeders, trainers, kennel operators, or other persons
  17-26  involved in the racing industry, in any interaction between the
  17-27  members of the organization and a racetrack facility or the
   18-1  commission.
   18-2        (b)  The commission may recognize an organization that meets
   18-3  the requirements of Subsection (a) of this section.
   18-4        Sec. 3.16.  DISCIPLINARY ACTIONS.  The commission shall
   18-5  revoke, suspend, or refuse to renew a license, place on probation a
   18-6  person whose license has been suspended, or reprimand a licensee
   18-7  for a violation of this Act or a rule of the commission.  If a
   18-8  license suspension is probated, the commission may require the
   18-9  licensee to report regularly to the commission on matters that are
  18-10  the basis of the probation.
  18-11        Sec. 3.17.  HEARING REQUIREMENTS.  If the commission proposes
  18-12  to suspend, revoke, or refuse to renew a person's license, the
  18-13  person is entitled to a hearing conducted by the State Office of
  18-14  Administrative Hearings.  Proceedings for a disciplinary action,
  18-15  other than those conducted by racing stewards or judges, are
  18-16  governed by the administrative procedure law, Chapter 2001,
  18-17  Government Code.  Rules of practice adopted by the commission under
  18-18  Section 2001.004, Government Code, applicable to the proceedings
  18-19  for a disciplinary action, other than those conducted by racing
  18-20  stewards or judges, may not conflict with rules adopted by the
  18-21  State Office of Administrative Hearings.
  18-22        SECTION 14.  Article 5, Texas Racing Act (Article 179e,
  18-23  Vernon's Texas Civil Statutes), is amended by adding Section 5.05
  18-24  to read as follows:
  18-25        Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The
  18-26  commission shall, in determining the amount of a license fee, set
  18-27  the fee in an amount that will cover, at least, the cost of
   19-1  conducting a criminal history check on the applicant for a license.
   19-2        (b)  The commission shall reimburse the Department of Public
   19-3  Safety for the cost of conducting a criminal history check under
   19-4  this article.
   19-5        SECTION 15.  Section 6.04(a), Texas Racing Act (Article 179e,
   19-6  Vernon's Texas Civil Statutes), is amended to read as follows:
   19-7        (a)  The commission may issue a racetrack license to a
   19-8  qualified person if it finds that the conduct of race meetings at
   19-9  the proposed track and location will be in the public interest,
  19-10  complies with all zoning laws, and complies with this Act and the
  19-11  rules adopted by the commission and if the commission finds by
  19-12  clear and convincing evidence that the applicant will comply with
  19-13  all criminal laws of this state.  In determining whether to grant
  19-14  or deny an application for any class of racetrack license, the
  19-15  commission may consider <the degree to which any of> the following
  19-16  factors <regarding the applicant's racetrack or proposed race
  19-17  meeting serve to nurture, promote, develop, or improve the horse or
  19-18  greyhound industry in this state>:
  19-19              (1)  the applicant's financial stability;
  19-20              (2)  the applicant's resources for supplementing the
  19-21  purses for races for various breeds;
  19-22              (3)  the location of the proposed track;
  19-23              (4)  the effect of the proposed track on traffic flow;
  19-24              (5)  facilities for patrons and occupational licensees;
  19-25              (6)  facilities for race animals;
  19-26              (7)  availability to the track of support services and
  19-27  emergency services;
   20-1              (8)  the experience of the applicant's employees;
   20-2              (9)  the potential for conflict with other licensed
   20-3  race meetings;
   20-4              (10)  the anticipated effect of the race meeting on the
   20-5  greyhound or horse breeding industry in this state; and
   20-6              (11)  the anticipated effect of the race meeting on the
   20-7  state and local economy from tourism, increased employment, and
   20-8  other sources.
   20-9        SECTION 16.  Sections 6.06(e) and (f), Texas Racing Act
  20-10  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  20-11  as follows:
  20-12        (e)  The <appropriate section of the> commission may
  20-13  condition the issuance of a license under this article on the
  20-14  observance of its rules.  The commission may amend the rules at any
  20-15  time and may condition the continued holding of the license on
  20-16  compliance with the rules as amended.
  20-17        (f)  The <appropriate section of the> commission may refuse
  20-18  to issue a license or may suspend or revoke a license of a licensee
  20-19  under this article who knowingly or intentionally allows access to
  20-20  an enclosure where greyhound races or horse races are conducted to
  20-21  a person who has engaged in bookmaking, touting, or illegal
  20-22  wagering, whose income is from illegal activities or enterprises,
  20-23  or who has been convicted of a violation of this Act.
  20-24        SECTION 17.  Article 6, Texas Racing Act (Article 179e,
  20-25  Vernon's Texas Civil Statutes), is amended by adding Section 6.092
  20-26  to read as follows:
  20-27        Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY
   21-1  PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,
   21-2  monitoring, and auditing requirements or other appropriate
   21-3  performance measures for any organization that receives funds
   21-4  generated by live or simulcast pari-mutuel racing.
   21-5        (b)  The commission shall adopt the requirements or
   21-6  performance measures after consultation with the affected
   21-7  organization.  In adopting the rules, the commission shall give
   21-8  consideration to the concerns of the affected organization.
   21-9        (c)  An independent audit shall be conducted annually of an
  21-10  organization receiving funds generated by live or simulcast
  21-11  pari-mutuel racing.  A copy of the report shall be sent to the
  21-12  commission.  The audit shall include a verification of any
  21-13  performance report sent to or required by the commission.
  21-14        (d)  The commission may review any records or books of an
  21-15  organization that submits an independent audit to the commission as
  21-16  the commission determines necessary to confirm or further
  21-17  investigate the findings of an audit or report.
  21-18        (e)  The commission by rule may suspend or withhold funds
  21-19  from an organization that:
  21-20              (1)  it determines has failed to comply with the
  21-21  requirements or performance measures adopted under Subsection (a)
  21-22  of this section; or
  21-23              (2)  has, following an independent audit or other
  21-24  report to the commission, material questions raised on the use of
  21-25  funds by the organization.
  21-26        (f)  This section does not apply to the Texas Commission on
  21-27  Alcohol and Drug Abuse.
   22-1        SECTION 18.  Section 7.02, Texas Racing Act (Article 179e,
   22-2  Vernon's Texas Civil Statutes), is amended by adding Subsections
   22-3  (c) and (d) to read as follows:
   22-4        (c)  If an examination is required for the issuance of a
   22-5  license under this article, not later than the 30th day after the
   22-6  day on which a licensing examination is administered under this
   22-7  Act, the commission shall notify each examinee of the results of
   22-8  the examination.
   22-9        (d)  If requested in writing by a person who fails a
  22-10  licensing examination administered under this Act, the commission
  22-11  shall furnish the person with an analysis of the person's
  22-12  performance on the examination.
  22-13        SECTION 19.  Section 7.05, Texas Racing Act (Article 179e,
  22-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  22-15        Sec. 7.05.  License fees.  (a)  The commission shall adopt by
  22-16  rule a fee schedule for licenses issued under this article.
  22-17        (b)  The commission shall base the license fees on the
  22-18  relative or comparative incomes or property interests of the
  22-19  various categories of licensees, with the lower income category of
  22-20  licensees being charged nearer the minimum fee and the higher
  22-21  income category of licensees charged nearer the maximum fee.
  22-22        (c)  In setting the fee schedule under Subsection (a) of this
  22-23  section, the commission shall include the cost of criminal history
  22-24  checks determined under Section 5.05 of this Act.  The commission
  22-25  may determine the best method for recouping this cost and complying
  22-26  with the other provisions of this section, including collecting the
  22-27  costs over an extended period.
   23-1        SECTION 20.  Section 7.07, Texas Racing Act (Article 179e,
   23-2  Vernon's Texas Civil Statutes), is amended to read as follows:
   23-3        Sec. 7.07.  Term of license.  (a)  A license issued under
   23-4  this article is valid for a period set by the commission not to
   23-5  exceed 36 months following the date of its issuance.  It is
   23-6  renewable on application and payment of the fee in accordance with
   23-7  the rules of the commission.
   23-8        (b)  The commission by rule may adopt a system under which
   23-9  licenses expire on various dates during the year.  For the year in
  23-10  which the license expiration date is changed, license fees shall be
  23-11  prorated on a monthly basis so that each licensee pays only that
  23-12  portion of the license fee that is allocable to the number of
  23-13  months during which the license is valid.  On renewal of the
  23-14  license on the new expiration date, the total license renewal fee
  23-15  is payable.
  23-16        SECTION 21.  Article 7, Texas Racing Act (Article 179e,
  23-17  Vernon's Texas Civil Statutes), is amended by adding Section 7.10
  23-18  to read as follows:
  23-19        Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
  23-20  (a)  The commission may waive any prerequisite to obtaining a
  23-21  license for an applicant after reviewing the applicant's
  23-22  credentials and determining that the applicant holds a valid
  23-23  license from another state that has license requirements
  23-24  substantially equivalent to those of this state.
  23-25        (b)  The commission may waive any prerequisite to obtaining a
  23-26  license for an applicant with a valid license from another state
  23-27  with which the State of Texas has a reciprocity agreement.  The
   24-1  commission may enter into reciprocal agreements with other states
   24-2  to allow for licensing by reciprocity.
   24-3        SECTION 22.  Section 9.01, Texas Racing Act (Article 179e,
   24-4  Vernon's Texas Civil Statutes), is amended to read as follows:
   24-5        Sec. 9.01.  Texas-bred horses.  Subject to this Act and any
   24-6  rule of the commission, the <The> state horse breed registries
   24-7  shall make reasonable rules to establish the qualifications of
   24-8  accredited Texas-bred horses to promote, develop, and improve the
   24-9  breeding of horses in this state.  Rules adopted by a registry are
  24-10  subject to commission approval.
  24-11        SECTION 23.  Section 10.04, Texas Racing Act (Article 179e,
  24-12  Vernon's Texas Civil Statutes), is amended to read as follows:
  24-13        Sec. 10.04.  Texas-bred greyhounds.  Subject to this Act or
  24-14  any rule of the commission, the <The> state greyhound breed
  24-15  registry shall make reasonable rules to establish the
  24-16  qualifications of accredited Texas-bred greyhounds to promote,
  24-17  develop, and improve the breeding of greyhounds in this state.
  24-18  Rules adopted by the registry are subject to commission approval.
  24-19        SECTION 24.  Section 11.04(c), Texas Racing Act (Article
  24-20  179e, Vernon's Texas Civil Statutes), is amended to read as
  24-21  follows:
  24-22        (c)  The commission shall adopt rules prohibiting an
  24-23  association from accepting a wager made on credit and shall adopt
  24-24  rules prohibiting automatic banking machines within the enclosure.
  24-25  The commission shall prohibit patrons from using automated methods
  24-26  for obtaining additional money while the patrons are on the
  24-27  premises of the racetrack facility.
   25-1        SECTION 25.  Section 18.01(a), Texas Racing Act (Article
   25-2  179e, Vernon's Texas Civil Statutes), is amended to read as
   25-3  follows:
   25-4        (a)  The Texas Racing Commission is subject to Chapter 325,
   25-5  Government Code (Texas Sunset Act).  Unless continued in existence
   25-6  as provided by that chapter, and except as provided by Subsections
   25-7  (b) and (c) of this section, the commission is abolished and this
   25-8  Act expires September 1, 2001 <1995>.
   25-9        SECTION 26.  Section 481.172, Government Code, is amended to
  25-10  read as follows:
  25-11        Sec. 481.172.  Duties.  The department shall:
  25-12              (1)  promote and advertise within the United States and
  25-13  in foreign countries, by radio, television, newspaper, and other
  25-14  means considered appropriate, tourism in this state by non-Texans,
  25-15  including persons from foreign countries, and distribute
  25-16  promotional materials through appropriate agencies, including the
  25-17  United States Travel and Tourism Agency;
  25-18              (2)  encourage travel by Texans to this state's scenic,
  25-19  historical, natural, agricultural, educational, recreational, and
  25-20  other attractions;
  25-21              (3)  coordinate and stimulate orderly and accelerated
  25-22  development of tourist attractions throughout this state;
  25-23              (4)  conduct a public relations campaign to create a
  25-24  responsible and accurate national and international image of this
  25-25  state;
  25-26              (5)  cooperate fully with the Parks and Wildlife
  25-27  Department in all matters relating to promotion of tourism;
   26-1              (6)  cooperate with the State Highway and Public
   26-2  Transportation Commission in the administration of the commission's
   26-3  collateral program of highway map distribution and operation of
   26-4  travel information bureaus and other tourist-related functions of
   26-5  the commission; <and>
   26-6              (7)  encourage communities, organizations, and
   26-7  individuals in this state to cooperate with its program by their
   26-8  activities and use of their own funds and collaborate with those
   26-9  organizations and other governmental entities in the pursuit of the
  26-10  objectives of this subchapter; and
  26-11              (8)  promote and encourage the horse racing and
  26-12  greyhound racing industry, if funds are appropriated for the
  26-13  promotion or encouragement.
  26-14        SECTION 27.  Section 18.02, Texas Racing Act (Article 179e,
  26-15  Vernon's Texas Civil Statutes), is repealed.
  26-16        SECTION 28.  (a)  This Act takes effect September 1, 1995.
  26-17        (b)  The changes in law made by this Act relating to the
  26-18  qualifications and appointment of members to the Texas Racing
  26-19  Commission do not affect the entitlement of a member of the
  26-20  commission serving immediately before the effective date of this
  26-21  Act to continue to serve on the commission for the term to which
  26-22  the member was appointed.  As the terms of members of the
  26-23  commission expire or as vacancies on the commission occur, the
  26-24  governor shall make appointments to the commission to achieve as
  26-25  soon as possible the membership plan prescribed for the commission
  26-26  by the Texas Racing Act (Article 179e, Vernon's Texas Civil
  26-27  Statutes), as amended by this Act.
   27-1        (c)  The Texas Racing Commission shall review all of the
   27-2  rules of the commission before January 1, 1998.  The commission,
   27-3  following the review, shall readopt, modify, or repeal the rules
   27-4  before January 1, 1998.
   27-5        (d)  The authority for rulemaking and licensing and for any
   27-6  action relating exclusively to horse racing or exclusively to
   27-7  greyhound racing that was granted to a separate section of the
   27-8  Texas Racing Commission is transferred to the Texas Racing
   27-9  Commission.
  27-10        SECTION 29.  The importance of this legislation and the
  27-11  crowded condition of the calendars in both houses create an
  27-12  emergency and an imperative public necessity that the
  27-13  constitutional rule requiring bills to be read on three several
  27-14  days in each house be suspended, and this rule is hereby suspended.