1-1        By:  Gray, Black, Wilson                        H.B. No. 1305
    1-2       (Senate Sponsor - Armbrister)
    1-3        (In the Senate - Received from the House May 12, 1995;
    1-4  May 15, 1995, read first time and referred to Committee on State
    1-5  Affairs; May 22, 1995, reported adversely, with favorable Committee
    1-6  Substitute by the following vote:  Yeas 13, Nays 0; May 22, 1995,
    1-7  sent to printer.)
    1-8  COMMITTEE SUBSTITUTE FOR H.B. No. 1305              By:  Armbrister
    1-9                         A BILL TO BE ENTITLED
   1-10                                AN ACT
   1-11  relating to the continuation and functions of the Texas Racing
   1-12  Commission and to the transfer of certain commission functions to
   1-13  the Texas Department of Commerce; providing penalties.
   1-14        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-15        SECTION 1.  Section 1.02, Texas Racing Act (Article 179e,
   1-16  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-17        Sec. 1.02.  Purposes.  The purpose <purposes> of this Act is
   1-18  <are> to <encourage agriculture, the horse-breeding industry, the
   1-19  horse-training industry, the greyhound-breeding industry, tourism,
   1-20  and employment opportunities in this state related to horse racing
   1-21  and greyhound racing and to> provide for the strict regulation of
   1-22  horse racing and greyhound racing and the control of pari-mutuel
   1-23  wagering in connection with that racing.
   1-24        SECTION 2.  Section 1.03, Texas Racing Act (Article 179e,
   1-25  Vernon's Texas Civil Statutes), is amended by amending Subdivision
   1-26  (61) and adding Subdivisions (67)-(75) to read as follows:
   1-27              (61)  "Simulcast" means the telecast or other
   1-28  transmission of live audio and visual signals of a race,
   1-29  transmitted from a sending track to a receiving location or
   1-30  simulcasting facility, for the purpose of wagering conducted on the
   1-31  race at the receiving location or simulcasting facility.
   1-32              (67)  "Racetrack facility" means a facility operated by
   1-33  an association within its enclosure for the purpose of presenting
   1-34  races for pari-mutuel wagering.
   1-35              (68)  "Child" means a person younger than 16 years of
   1-36  age.
   1-37              (69)  "Minor" means a person younger than 21 years of
   1-38  age.
   1-39              (70)  "Contraband" means:
   1-40                    (A)  any item or thing the possession of which is
   1-41  unlawful under this Act, a commission rule, or other law;
   1-42                    (B)  any item or thing that might reasonably have
   1-43  the effect of unnaturally depressing, stimulating, or exciting an
   1-44  animal during a race in a manner contrary to this Act or commission
   1-45  rule, including a prohibited device or substance; or
   1-46                    (C)  a document, including a credential or forged
   1-47  ticket, possessed by an individual or used by an individual in
   1-48  violation of this Act or a commission rule.
   1-49              (71)  "Prohibited device" means:
   1-50                    (A)  a spur or an electrical or other device
   1-51  prohibited by a commission rule regulating the unlawful influence
   1-52  of a race; or
   1-53                    (B)  a device specifically designed, made, or
   1-54  adapted to influence or affect the outcome of a race in a manner
   1-55  contrary to this Act or a commission rule.
   1-56              (72)  "Prohibited substance" means a drug, chemical,
   1-57  medication, stimulant, depressant, or other substance, including a
   1-58  syringe or other device used to administer a prohibited substance,
   1-59  that, in its use or intended use, is capable of influencing or
   1-60  affecting the outcome of a race in a manner contrary to this Act or
   1-61  a commission rule.
   1-62              (73)  "Unlawful touting" means an offense described by
   1-63  Section 14.01 of this Act or a similar offense under the laws of
   1-64  another state.
   1-65              (74)  "Race" includes a live audio and visual signal of
   1-66  a race.
   1-67              (75)  "Simulcasting facility" means a facility that is
   1-68  registered with the commission, that is owned or operated by a
    2-1  greyhound racetrack licensed by the commission, and that is located
    2-2  outside the enclosure of a racetrack.
    2-3        SECTION 3.  Sections 2.02(a) and (b), Texas Racing Act
    2-4  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
    2-5  as follows:
    2-6        (a)  The commission consists of six members appointed by the
    2-7  governor with the advice and consent of the senate and two ex
    2-8  officio members who shall have the right to vote.  The ex officio
    2-9  members are the chairman of the Public Safety Commission and the
   2-10  comptroller of public accounts.  <In making appointments to the
   2-11  commission, the governor shall strive to achieve representation by
   2-12  all the population groups of the state with regard to economic
   2-13  status, sex, race, and ethnicity.>
   2-14        (b)  Appointments to the commission shall be made without
   2-15  regard to the race, color, disability, sex, religion, age, or
   2-16  national origin of the appointees.  <One appointed member must be a
   2-17  veterinarian licensed to practice in this state who specializes in
   2-18  the treatment of small animals.  One appointed member must be a
   2-19  veterinarian licensed to practice in this state who specializes in
   2-20  the treatment of large animals.  Two appointed members must be
   2-21  individuals who are not veterinarians and who have special
   2-22  knowledge or experience related to greyhound racing.  Two appointed
   2-23  members must be individuals who are not veterinarians and who have
   2-24  special knowledge or experience related to horse racing.>
   2-25        SECTION 4.  Section 2.03, Texas Racing Act (Article 179e,
   2-26  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-27        Sec. 2.03.  Term of office.  (a)  Appointed <Except for the
   2-28  initial appointments, appointed> members hold office for staggered
   2-29  terms of six years with two members' terms expiring February 1 of
   2-30  each odd-numbered year.  A member holds office until that member's
   2-31  successor is appointed and qualifies.
   2-32        (b)  <In making the initial appointments, the governor shall
   2-33  designate two appointed members for a term expiring February 1,
   2-34  1989, two for a term expiring February 1, 1991, and two for a term
   2-35  expiring February 1, 1993.  The governor shall make the initial
   2-36  appointments on or before February 1, 1987.>
   2-37        <(c)>  The ex officio members hold office on the commission
   2-38  for the time for which they hold their other offices.
   2-39        SECTION 5.  Section 2.05, Texas Racing Act (Article 179e,
   2-40  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-41        Sec. 2.05.  Eligibility.  (a)  Four of the appointed members
   2-42  of the commission must be representatives of the general public and
   2-43  have general knowledge of business or agribusiness.  One additional
   2-44  appointed member must have special knowledge or experience related
   2-45  to greyhound racing and one additional appointed member must have
   2-46  special knowledge or experience related to horse racing.  A person
   2-47  is not eligible for appointment as a member of the commission if
   2-48  the person or the person's spouse:
   2-49              (1)  is licensed by the commission, except as a
   2-50  commissioner;
   2-51              (2)  is employed by the commission or participates in
   2-52  the management of a business entity or other organization regulated
   2-53  by the commission or receiving funds from or through the
   2-54  commission;
   2-55              (3)  owns or controls, directly or indirectly, more
   2-56  than a 10 percent interest in a business entity or other
   2-57  organization regulated by the commission or receiving funds from or
   2-58  through the commission; or
   2-59              (4)  uses or receives a substantial amount of tangible
   2-60  goods, services, or funds from or through the commission, other
   2-61  than compensation or reimbursement authorized by law for commission
   2-62  membership, attendance, or expenses.
   2-63        (b)  In addition to the eligibility requirements of
   2-64  Subsection (a), a <A> person is not eligible to be an appointed
   2-65  member of the commission if that person owns any financial interest
   2-66  in a racetrack or its operation or if that person is related within
   2-67  the second degree by affinity or the third degree by consanguinity,
   2-68  as determined under Subchapter B, Chapter 573, Government Code
   2-69  <Article 5996h, Revised Statutes>, to a person who owns any
   2-70  financial interest in a racetrack or its operation.
    3-1        (c)  Each person appointed to or employed by the commission
    3-2  is subject to all background checks and qualification criteria
    3-3  required to hold a racetrack license or other license under this
    3-4  Act.
    3-5        (d)  A person who has been convicted of a felony or of any
    3-6  crime involving moral turpitude is not eligible for appointment to
    3-7  the commission.
    3-8        SECTION 6.  Article 2, Texas Racing Act (Article 179e,
    3-9  Vernon's Texas Civil Statutes), is amended by adding Sections
   3-10  2.071-2.074 to read as follows:
   3-11        Sec. 2.071.  CONFLICT OF INTEREST.  (a)  An officer,
   3-12  employee, or paid consultant of a Texas trade association in the
   3-13  field of horse or greyhound racing or breeding may not be a member
   3-14  of the commission or employee of the commission who is exempt from
   3-15  the state's position classification plan or is compensated at or
   3-16  above the amount prescribed by the General Appropriations Act for
   3-17  step 1, salary group 17, of the position classification salary
   3-18  schedule.
   3-19        (b)  A person who is the spouse of an officer, manager, or
   3-20  paid consultant of a Texas trade association in the field of horse
   3-21  or greyhound racing or breeding may not be a member of the
   3-22  commission and may not be an employee of the commission who is
   3-23  exempt from the state's position classification plan or is
   3-24  compensated at or above the amount prescribed by the General
   3-25  Appropriations Act for step 1, salary group 17, of the position
   3-26  classification salary schedule.
   3-27        (c)  For the purposes of this section, a Texas trade
   3-28  association is a nonprofit, cooperative, and voluntarily joined
   3-29  association of business or professional competitors in this state
   3-30  designed to assist its members and its industry or profession in
   3-31  dealing with mutual business or professional problems and in
   3-32  promoting their common interest.
   3-33        Sec. 2.072.  LOBBYIST RESTRICTION.  A person may not serve as
   3-34  a member of the commission or act as the general counsel to the
   3-35  commission if the person is required to register as a lobbyist
   3-36  under Chapter 305, Government Code, because of the person's
   3-37  activities for compensation on behalf of a profession related to
   3-38  the operation of the commission.
   3-39        Sec. 2.073.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
   3-40  removal from the commission if a member:
   3-41              (1)  does not have at the time of appointment the
   3-42  qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
   3-43              (2)  does not maintain during service on the commission
   3-44  the qualifications required by Section 2.02 or 2.05 of this Act;
   3-45              (3)  violates a prohibition established by Section
   3-46  2.05, 2.07, 2.071, or 2.072 of this Act;
   3-47              (4)  cannot because of illness or disability discharge
   3-48  the member's duties for a substantial part of the term for which
   3-49  the member is appointed; or
   3-50              (5)  is absent from more than half of the regularly
   3-51  scheduled commission meetings that the member is eligible to attend
   3-52  during a calendar year unless the absence is excused by majority
   3-53  vote of the commission.
   3-54        (b)  The validity of an action of the commission is not
   3-55  affected by the fact that it is taken when a ground for removal of
   3-56  a commission member exists.
   3-57        (c)  If the executive secretary has knowledge that a
   3-58  potential ground for removal exists, the executive secretary shall
   3-59  notify the presiding officer of the commission of the potential
   3-60  ground.  The presiding officer shall then notify the governor and
   3-61  the attorney general that a potential ground for removal exists.
   3-62  If the potential ground for removal involves the presiding officer,
   3-63  the executive secretary shall notify the next highest officer of
   3-64  the commission, who shall notify the governor and the attorney
   3-65  general that a potential ground for removal exists.
   3-66        Sec. 2.074.  MEMBER TRAINING.  (a)  Before a member of the
   3-67  commission may assume the member's duties and before the member may
   3-68  be confirmed by the senate, the member must complete at least one
   3-69  course of the training program established by the commission under
   3-70  this section.
    4-1        (b)  A training program established under this section shall
    4-2  provide information to the member regarding:
    4-3              (1)  the enabling legislation that created the
    4-4  commission;
    4-5              (2)  the programs operated by the agency;
    4-6              (3)  the role and functions of the agency;
    4-7              (4)  the rules of the agency with an emphasis on the
    4-8  rules that relate to disciplinary and investigatory authority;
    4-9              (5)  the current budget for the agency;
   4-10              (6)  the results of the most recent formal audit of the
   4-11  agency;
   4-12              (7)  the requirements of the:
   4-13                    (A)  open meetings law, Chapter 551, Government
   4-14  Code;
   4-15                    (B)  open records law, Chapter 552, Government
   4-16  Code; and
   4-17                    (C)  administrative procedure law, Chapter 2001,
   4-18  Government Code;
   4-19              (8)  the requirements of the conflict of interest laws
   4-20  and other laws relating to public officials; and
   4-21              (9)  any applicable ethics policies adopted by the
   4-22  agency or the Texas Ethics Commission.
   4-23        SECTION 7.  Section 2.10, Texas Racing Act (Article 179e,
   4-24  Vernon's Texas Civil Statutes), is amended to read as follows:
   4-25        Sec. 2.10.  PRESIDING OFFICER <CHAIRMAN>.  The governor shall
   4-26  designate a public <one> member of the commission as the presiding
   4-27  officer <chairman> of the commission to serve in that capacity at
   4-28  the pleasure of the governor.
   4-29        SECTION 8.  Section 2.11, Texas Racing Act (Article 179e,
   4-30  Vernon's Texas Civil Statutes), is amended by amending Subsection
   4-31  (b) and adding Subsection (d) to read as follows:
   4-32        (b)  A majority of the commission constitutes a quorum.  <A
   4-33  majority of a section of the commission constitutes a quorum for
   4-34  purposes of conducting business related to matters under the
   4-35  exclusive jurisdiction of that section.>
   4-36        (d)  The commission shall, by rule, develop and implement
   4-37  policies that provide the public with a reasonable opportunity to
   4-38  appear before the commission and to speak on any issue under the
   4-39  jurisdiction of the commission.
   4-40        SECTION 9.  Article 2, Texas Racing Act (Article 179e,
   4-41  Vernon's Texas Civil Statutes), is amended by adding Sections
   4-42  2.17-2.25 to read as follows:
   4-43        Sec. 2.17.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  The
   4-44  commission is subject to the open meetings law, Chapter 551,
   4-45  Government Code, and the administrative procedure law, Chapter
   4-46  2001, Government Code.
   4-47        Sec. 2.18.  ANNUAL ACCOUNTING.  The commission shall prepare
   4-48  annually a complete and detailed written report accounting for all
   4-49  funds received and disbursed by the commission during the preceding
   4-50  fiscal year.  The annual report must meet the reporting
   4-51  requirements applicable to financial reporting provided in the
   4-52  General Appropriations Act.
   4-53        Sec. 2.19.  FUNDS PAID TO COMMISSION.  All money paid to the
   4-54  commission under this Act is subject to Subchapter F, Chapter 404,
   4-55  Government Code.
   4-56        Sec. 2.20.  EMPLOYMENT PRACTICES.  (a)  The executive
   4-57  secretary or the executive secretary's designee shall develop an
   4-58  intra-agency career ladder program that addresses opportunities for
   4-59  mobility and advancement for employees within the commission.  The
   4-60  program shall require intra-agency posting of all positions
   4-61  concurrently with any public posting.
   4-62        (b)  The executive secretary or the executive secretary's
   4-63  designee shall develop a system of annual performance evaluations
   4-64  that are based on documented employee performance.  All merit pay
   4-65  for commission employees must be based on the system established
   4-66  under this subsection.
   4-67        (c)  The executive secretary or the executive secretary's
   4-68  designee shall prepare and maintain a written policy statement to
   4-69  assure implementation of a program of equal employment opportunity
   4-70  under which all personnel transactions are made without regard to
    5-1  race, color, disability, sex, religion, age, or national origin.
    5-2  The policy statement must include:
    5-3              (1)  personnel policies, including policies relating to
    5-4  recruitment, evaluation, selection, appointment, training, and
    5-5  promotion of personnel that are in compliance with the requirements
    5-6  of Chapter 21, Labor Code;
    5-7              (2)  a comprehensive analysis of the commission
    5-8  workforce that meets federal and state guidelines;
    5-9              (3)  procedures by which a determination can be made
   5-10  about the extent of underuse in the commission workforce of all
   5-11  persons for whom federal or state guidelines encourage a more
   5-12  equitable balance; and
   5-13              (4)  reasonable methods to appropriately address those
   5-14  areas of underuse.
   5-15        (d)  A policy statement prepared under Subsection (c) of this
   5-16  section must cover an annual period, be updated annually and
   5-17  reviewed by the Texas Commission on Human Rights for compliance
   5-18  with Subsection (c)(1) of this section, and be filed with the
   5-19  governor's office.
   5-20        (e)  The governor's office shall deliver a biennial report to
   5-21  the legislature based on the information received under Subsection
   5-22  (d) of this section.  The report may be made separately or as a
   5-23  part of other biennial reports made to the legislature.
   5-24        Sec. 2.21.  STANDARDS OF CONDUCT.  The executive secretary or
   5-25  the executive secretary's designee shall provide to members of the
   5-26  commission and to agency employees, as often as necessary,
   5-27  information regarding their qualification for office or employment
   5-28  under this Act and their responsibilities under applicable laws
   5-29  relating to standards of conduct for state officers or employees.
   5-30        Sec. 2.22.  DIVISION OF RESPONSIBILITY.  The commission
   5-31  shall, by rule, develop and implement policies that clearly
   5-32  separate the policymaking responsibilities of the commission and
   5-33  the management responsibilities of the executive secretary and the
   5-34  staff of the commission.
   5-35        Sec. 2.23.  PROGRAM AND FACILITY ACCESSIBILITY.  The
   5-36  commission shall comply with federal and state laws related to
   5-37  program and facility accessibility.  The executive secretary shall
   5-38  also prepare and maintain a written plan that describes how a
   5-39  person who does not speak English can be provided reasonable access
   5-40  to the commission's programs and services.
   5-41        Sec. 2.24.  INFORMATION TO PUBLIC.  (a)  The commission shall
   5-42  prepare information of public interest describing the functions of
   5-43  the commission and the procedures by which complaints are filed
   5-44  with and resolved by the commission.  The commission shall make the
   5-45  information available to the public and appropriate state agencies.
   5-46        (b)  The commission by rule shall establish methods by which
   5-47  racetrack patrons are notified of the name, mailing address, and
   5-48  telephone number of the commission for the purpose of directing
   5-49  complaints to the commission.  The commission may provide for that
   5-50  notification:
   5-51              (1)  on every race performance program provided by each
   5-52  racetrack association; or
   5-53              (2)  on signs prominently displayed in the common
   5-54  public areas on the premises of each racetrack association.
   5-55        Sec. 2.25.  COMPLAINT HANDLING.  (a)  The commission shall
   5-56  keep information about each complaint filed with the commission.
   5-57  The information shall include:
   5-58              (1)  the date the complaint is received;
   5-59              (2)  the name of the complainant;
   5-60              (3)  the subject matter of the complaint;
   5-61              (4)  a record of all persons contacted in relation to
   5-62  the complaint;
   5-63              (5)  a summary of the results of the review or
   5-64  investigation of the complaint; and
   5-65              (6)  for complaints for which the agency took no
   5-66  action, an explanation of the reason the complaint was closed
   5-67  without action.
   5-68        (b)  The commission shall keep a file about each written
   5-69  complaint filed with the commission that the agency has authority
   5-70  to resolve.  The commission shall provide to the person filing the
    6-1  complaint and the persons or entities complained about the
    6-2  commission's policies and procedures pertaining to complaint
    6-3  investigation and resolution.  The commission, at least quarterly
    6-4  and until final disposition of the complaint, shall notify the
    6-5  person filing the complaint and the persons or entities complained
    6-6  about of the status of the complaint unless the notice would
    6-7  jeopardize an undercover investigation.
    6-8        SECTION 10.  Section 3.02, Texas Racing Act (Article 179e,
    6-9  Vernon's Texas Civil Statutes), is amended to read as follows:
   6-10        Sec. 3.02.  Regulation and supervision.  (a)  The <In
   6-11  accordance with Section 3.01 of this Act, the> commission shall
   6-12  regulate and supervise every race meeting in this state involving
   6-13  wagering on the result of greyhound or horse racing.  All persons
   6-14  and things relating to the operation of those meetings are subject
   6-15  to regulation and supervision by the commission.  The commission
   6-16  shall adopt rules for conducting greyhound or horse racing in this
   6-17  state involving wagering and shall adopt other rules to administer
   6-18  this Act that are consistent with this Act.  The commission shall
   6-19  also make rules, issue licenses, and take any other necessary
   6-20  action relating exclusively to horse racing or to greyhound racing.
   6-21  A majority vote of the members of the commission is necessary for
   6-22  any commission decision.
   6-23        (b)  The commission may establish separate sections to review
   6-24  or propose rules of the commission.
   6-25        (c)  The commission or a section of the commission shall hold
   6-26  a meeting on any proposed rule before the commission publishes the
   6-27  proposed rule in the Texas Register.
   6-28        (d)  The commission shall post notice of a meeting under
   6-29  Subsection (c) of this section at each racetrack facility.  The
   6-30  notice shall include an agenda of the meeting and a summary of the
   6-31  proposed rule.
   6-32        (e)  A copy of a proposed rule published in the Texas
   6-33  Register shall also be posted concurrently at each racetrack
   6-34  facility.
   6-35        (f)  The commission or a section of the commission may
   6-36  appoint a committee of experts, members of the public, or other
   6-37  interested parties to advise the commission or section of the
   6-38  commission about a proposed rule of the commission.
   6-39        (g)  The commission, in adopting rules and in the supervision
   6-40  and conduct of racing, shall consider the effect of a proposed
   6-41  commission action on the state's agricultural, horse breeding,
   6-42  horse training, greyhound breeding, and greyhound training
   6-43  industry.
   6-44        (h)  The commission shall adopt rules relating to the
   6-45  location of and hours of operation of a lottery ticket sales agent
   6-46  operating at a racetrack.
   6-47        SECTION 11.  Section 3.021, Texas Racing Act (Article 179e,
   6-48  Vernon's Texas Civil Statutes), is amended by amending Subsection
   6-49  (b) and adding Subsection (d) to read as follows:
   6-50        (b)  To protect the health, safety, and welfare of race
   6-51  animals and participants in racing, to safeguard the interest of
   6-52  the general public, and to promote the orderly <growth and> conduct
   6-53  of racing within the state, the commission may adopt rules for the
   6-54  licensing and regulation of races and workouts at racetracks that
   6-55  do not offer pari-mutuel wagering and for workouts at training
   6-56  facilities to secure past performances and workouts.
   6-57        (d)  The commission may not adopt rules restricting
   6-58  competitive bidding or advertising by a licensee except to prohibit
   6-59  false, misleading, or deceptive practices.  In its rules to
   6-60  prohibit false, misleading, or deceptive practices, the commission
   6-61  may not include a rule that:
   6-62              (1)  restricts the use of any medium for advertising;
   6-63              (2)  restricts the use of a licensee's personal
   6-64  appearance or voice in an advertisement;
   6-65              (3)  relates to the size or duration of an
   6-66  advertisement by the licensee; or
   6-67              (4)  restricts the licensee's advertisement under a
   6-68  trade name.
   6-69        SECTION 12.  Section 3.03, Texas Racing Act (Article 179e,
   6-70  Vernon's Texas Civil Statutes), is amended to read as follows:
    7-1        Sec. 3.03.  Power of entry.  A member of the commission, an
    7-2  authorized agent of the commission, a commissioned officer of the
    7-3  Department of Public Safety, or a peace officer of the local
    7-4  jurisdiction in which the association maintains a place of business
    7-5  may enter any part of the racetrack facility <the office,
    7-6  racetrack,> or any other place of business of an association at any
    7-7  time for the purpose of enforcing and administering this Act.
    7-8        SECTION 13.  Section 3.07(a), Texas Racing Act (Article 179e,
    7-9  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-10        (a)  The commission shall employ all of the judges and all of
   7-11  the stewards for the supervision of a horse race or greyhound race
   7-12  meeting.  Each horse race or greyhound race meeting shall be
   7-13  supervised by three stewards <approved by the commission> for horse
   7-14  racing or by three judges <approved by the commission> for
   7-15  greyhound racing.  Before each race meeting, the commission shall
   7-16  provide to the association a list of six stewards or judges
   7-17  approved by the commission who are eligible to serve at the race
   7-18  meeting.  The commission shall forward the list to the association
   7-19  holding the race meeting and shall give the association an
   7-20  opportunity to review and comment on the list and to remove not
   7-21  more than two of the named stewards or judges from the list.  The
   7-22  commission, after review of the association's comments and
   7-23  designation of removals, shall designate from the list of remaining
   7-24  eligible stewards or judges the stewards or judges for each race
   7-25  meeting and shall designate one of the stewards or judges as the
   7-26  presiding steward or judge for each race meeting.  The association,
   7-27  following the completion of the race meeting, may submit
   7-28  evaluations of the stewards and judges, and the commission may
   7-29  consider the evaluations in compiling other lists.  <The commission
   7-30  shall employ one of the stewards who supervises a horse race
   7-31  meeting who shall be the presiding steward. The other stewards at
   7-32  the race meeting shall be compensated by the association.  The
   7-33  commission shall employ one of the judges who supervises a
   7-34  greyhound race meeting who shall be the presiding judge; the other
   7-35  judges at such a race meeting shall be compensated by the
   7-36  association.>  For each race meeting, the commission shall employ
   7-37  <appoint> at least one state veterinarian <who shall be compensated
   7-38  by the commission.  The commission by rule shall determine the
   7-39  amount of compensation for stewards, judges, and state
   7-40  veterinarians who are required to be compensated by the
   7-41  commission>.  The commission may, by rule, impose a fee on an
   7-42  association to offset the costs of compensating the <racetrack>
   7-43  stewards, judges, and state veterinarians <for that association>.
   7-44  The amount of the fee for the compensation of stewards, judges, and
   7-45  state veterinarians must be reasonable according to industry
   7-46  standards for the compensation of those officials at other
   7-47  racetracks and may not exceed the actual cost to the commission for
   7-48  compensating the officials.  All other racetrack officials shall be
   7-49  appointed by the association, with the approval of the commission.
   7-50  Compensation for those officials not compensated by the commission
   7-51  shall be determined by the association.
   7-52        SECTION 14.  Section 3.09, Texas Racing Act (Article 179e,
   7-53  Vernon's Texas Civil Statutes), is amended by amending Subsection
   7-54  (b) and adding Subsection (c) to read as follows:
   7-55        (b)  The commission shall deposit the money it collects under
   7-56  this Act in the State Treasury to the credit of a special fund to
   7-57  be known as the Texas Racing Commission fund.  The Texas Racing
   7-58  Commission fund may be appropriated only for the administration and
   7-59  enforcement of this Act.  Any unappropriated money remaining in
   7-60  that special fund at the close of each fiscal biennium shall be
   7-61  transferred to the General Revenue Fund and may be appropriated for
   7-62  any legal purpose.  The legislature may also appropriate money from
   7-63  the General Revenue Fund for the administration and enforcement of
   7-64  this Act.
   7-65        (c)  Any amount of general revenue appropriated for the
   7-66  administration and enforcement of this Act in excess of the
   7-67  cumulative amount deposited in the Texas Racing Commission fund
   7-68  shall be reimbursed from the Texas Racing Commission fund.  The
   7-69  rate of interest on any appropriated amount the commission is
   7-70  required to repay to the General Revenue Fund is <not later than
    8-1  one year after the date on which the general revenue funds are
    8-2  appropriated, with 12 percent interest per year until August 31,
    8-3  1993, and> 6-3/4  percent interest per year <thereafter> with all
    8-4  payments first attributable to interest.  The commission shall,
    8-5  each year, repay to the General Revenue Fund an amount designated
    8-6  in the appropriations act covering the year the repayment is to be
    8-7  made.  The comptroller shall, each year, credit to the repayment to
    8-8  the General Revenue Fund an amount equal to 20 percent of the state
    8-9  tax revenue generated by horse or greyhound racing during the
   8-10  previous year.  The comptroller's duty to make the credit expires
   8-11  on retirement of the amount to be repaid to the General Revenue
   8-12  Fund.  This credit may be combined with any other repayment to
   8-13  comply with the requirements of this subsection.
   8-14        SECTION 15.  Article 3, Texas Racing Act (Article 179e,
   8-15  Vernon's Texas Civil Statutes), is amended by adding Sections
   8-16  3.13-3.16 to read as follows:
   8-17        Sec. 3.13.  RECOGNITION OF ORGANIZATION.  (a)  The commission
   8-18  by rule shall adopt criteria to recognize an organization to
   8-19  represent members of a segment of the racing industry, including
   8-20  owners, breeders, trainers, kennel operators, or other persons
   8-21  involved in the racing industry, in any interaction between the
   8-22  members of the organization and a racetrack facility or the
   8-23  commission.
   8-24        (b)  The commission may recognize an organization that meets
   8-25  the requirements of Subsection (a) of this section.
   8-26        (c)  Any organization recognized by the commission under this
   8-27  section to represent horsemen at a racetrack may not also be an
   8-28  entity named in Section 9.02 of this Act.
   8-29        Sec. 3.14.  DISCIPLINARY ACTIONS.  The commission shall
   8-30  revoke, suspend, or refuse to renew a license, place on probation a
   8-31  person whose license has been suspended, or reprimand a licensee
   8-32  for a violation of this Act or a rule of the commission.  If a
   8-33  license suspension is probated, the commission may require the
   8-34  licensee to report regularly to the commission on matters that are
   8-35  the basis of the probation.
   8-36        Sec. 3.15.  HEARING REQUIREMENTS.  If the commission proposes
   8-37  to suspend, revoke, or refuse to renew a person's license, the
   8-38  person is entitled to a hearing conducted by the State Office of
   8-39  Administrative Hearings.  Proceedings for a disciplinary action,
   8-40  other than those conducted by racing stewards or judges, are
   8-41  governed by the administrative procedure law, Chapter 2001,
   8-42  Government Code.  Rules of practice adopted by the commission under
   8-43  Section 2001.004, Government Code, applicable to the proceedings
   8-44  for a disciplinary action, other than those conducted by racing
   8-45  stewards or judges, may not conflict with rules adopted by the
   8-46  State Office of Administrative Hearings.
   8-47        Sec. 3.16.  RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
   8-48  (a) The commission shall adopt rules prohibiting a person from
   8-49  unlawfully influencing or affecting the outcome of a race,
   8-50  including rules relating to the use of a prohibited device or
   8-51  substance.
   8-52        (b)  The commission may require prerace testing and shall
   8-53  require postrace testing to determine whether a prohibited
   8-54  substance has been used. The testing may be by an invasive or
   8-55  noninvasive method. The commission's rules shall require
   8-56  state-of-the-art testing methods.
   8-57        (c)  Following the discovery of a prohibited device or a
   8-58  return of a test showing the presence of a prohibited substance, a
   8-59  steward or judge may summarily suspend a person who has used or
   8-60  administered the prohibited device or substance until a hearing
   8-61  before the stewards and judges. The steward or judge may also
   8-62  disqualify an animal pursuant to a commission rule adopted under
   8-63  this section.
   8-64        (d)  A person may appeal a ruling of the stewards or judges
   8-65  to the commission. The commission may stay a summary suspension
   8-66  during the period the matter is before the commission.
   8-67        (e)  The commission may require urine samples to be frozen
   8-68  for a period necessary to allow any follow-up testing to detect and
   8-69  identify  a prohibited substance. Any other specimen shall be
   8-70  maintained for testing purposes in a manner required by commission
    9-1  rule.
    9-2        (f)  If a test sample or specimen shows the presence of a
    9-3  prohibited substance, the entire sample, including any split
    9-4  portion, shall be maintained until final disposition of the matter.
    9-5        (g)  A license holder whose animal test shows the presence of
    9-6  a prohibited substance is entitled to have a split portion of the
    9-7  test sample or specimen tested at a testing facility authorized to
    9-8  perform drug testing under this Act and selected by the license
    9-9  holder. The commission shall adopt rules relating to split testing
   9-10  procedures.
   9-11        (h)  The licensed trainer of each animal is responsible for
   9-12  ensuring that no prohibited substance is administered to the
   9-13  animal.
   9-14        (i)  The commission shall adopt rules relating to the drug
   9-15  testing of license holders.
   9-16        (j)  A person who violates a rule adopted under this section
   9-17  may:
   9-18              (1)  have any license issued to the person by the
   9-19  commission revoked or suspended; or
   9-20              (2)  be barred for life or any other period from
   9-21  applying for or receiving a license issued by the commission or
   9-22  entering any portion of a racetrack facility.
   9-23        SECTION 16.  Section 5.01(a), Texas Racing Act (Article 179e,
   9-24  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-25        (a)  The commission shall prescribe forms for applications
   9-26  for licenses and shall provide each occupational licensee with a
   9-27  license certificate or credentials.
   9-28        SECTION 17.  Sections 5.03(a) and (b), Texas Racing Act
   9-29  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
   9-30  as follows:
   9-31        (a)  An applicant for any license under this Act must, except
   9-32  as allowed under Section 7.10 of this Act, submit to the commission
   9-33  a complete set of fingerprints of the individual natural person
   9-34  applying for the license or, if the applicant is not an individual
   9-35  natural person, a complete set of fingerprints of each officer or
   9-36  director and of each person owning an interest of at least five
   9-37  percent in the applicant.  The Department of Public Safety may
   9-38  request any person owning any interest in an applicant for a
   9-39  racetrack license to submit a complete set of fingerprints.
   9-40        (b)  If a complete set of fingerprints is required by the
   9-41  commission, the <The> commission shall, not later than the next day
   9-42  after receiving the prints, forward the prints to the Department of
   9-43  Public Safety or the Federal Bureau of Investigation.  If the
   9-44  prints are forwarded to the Department of Public Safety, the <The>
   9-45  department shall classify the prints and check them against its
   9-46  fingerprint files and shall report to the commission its findings
   9-47  concerning the criminal record of the applicant or the lack of such
   9-48  a record.  A racetrack license may not be issued until the report
   9-49  is made to the commission.  A temporary occupational license may be
   9-50  issued before a report is made to the commission.
   9-51        SECTION 18.  Article 5, Texas Racing Act (Article 179e,
   9-52  Vernon's Texas Civil Statutes), is amended by adding Section 5.05
   9-53  to read as follows:
   9-54        Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The
   9-55  commission shall, in determining the amount of a license fee, set
   9-56  the fee in an amount that will cover, at least, the cost of
   9-57  conducting a criminal history check on the applicant for a license.
   9-58        (b)  The commission shall reimburse the Department of Public
   9-59  Safety for the cost of conducting a criminal history check under
   9-60  this article.
   9-61        SECTION 19.  Section 6.01, Texas Racing Act (Article 179e,
   9-62  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-63        Sec. 6.01.  License required.  A person shall not conduct
   9-64  wagering on a greyhound race <meeting> or a horse race meeting
   9-65  without first obtaining a racetrack license from the commission
   9-66  <with wagering on the results without a racetrack license>. A
   9-67  person who violates this section commits an offense.
   9-68        SECTION 20.  Section 6.02(d), Texas Racing Act (Article 179e,
   9-69  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-70        (d)  A class 3 racetrack is a racetrack operated by a city, a
   10-1  county, or a nonprofit fair under Article 12 of this Act. An
   10-2  association that holds a class 3 racetrack license and that
   10-3  conducted horse races in 1986 may conduct live races for a number
   10-4  of days not to exceed 16 days in a calendar year on the dates
   10-5  selected by the association.
   10-6        SECTION 21.  Section 6.04(a), Texas Racing Act (Article 179e,
   10-7  Vernon's Texas Civil Statutes), is amended to read as follows:
   10-8        (a)  The commission may issue a racetrack license to a
   10-9  qualified person if it finds that the conduct of race meetings at
  10-10  the proposed track and location will be in the public interest,
  10-11  complies with all zoning laws, and complies with this Act and the
  10-12  rules adopted by the commission and if the commission finds by
  10-13  clear and convincing evidence that the applicant will comply with
  10-14  all criminal laws of this state.  In determining whether to grant
  10-15  or deny an application for any class of racetrack license, the
  10-16  commission may consider <the degree to which any of> the following
  10-17  factors <regarding the applicant's racetrack or proposed race
  10-18  meeting serve to nurture, promote, develop, or improve the horse or
  10-19  greyhound industry in this state>:
  10-20              (1)  the applicant's financial stability;
  10-21              (2)  the applicant's resources for supplementing the
  10-22  purses for races for various breeds;
  10-23              (3)  the location of the proposed track;
  10-24              (4)  the effect of the proposed track on traffic flow;
  10-25              (5)  facilities for patrons and occupational licensees;
  10-26              (6)  facilities for race animals;
  10-27              (7)  availability to the track of support services and
  10-28  emergency services;
  10-29              (8)  the experience of the applicant's employees;
  10-30              (9)  the potential for conflict with other licensed
  10-31  race meetings;
  10-32              (10)  the anticipated effect of the race meeting on the
  10-33  greyhound or horse breeding industry in this state; and
  10-34              (11)  the anticipated effect of the race meeting on the
  10-35  state and local economy from tourism, increased employment, and
  10-36  other sources.
  10-37        SECTION 22.  Sections 6.06(a), (b), (e), and (f), Texas
  10-38  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  10-39  amended to read as follows:
  10-40        (a)  To preserve and protect the public health, welfare, and
  10-41  safety, the commission shall adopt rules relating to license
  10-42  applications, <renewal applications,> the financial responsibility,
  10-43  moral character, and ability of applicants, and all matters
  10-44  relating to the planning, construction, and operation of
  10-45  racetracks.  The commission may refuse to issue a <an original or
  10-46  renewal> racetrack license or may revoke or suspend a license if,
  10-47  after notice and hearing, it has reasonable grounds to believe and
  10-48  finds that:
  10-49              (1)  the applicant has been convicted in a court of
  10-50  competent jurisdiction of a violation of this Act or any rule
  10-51  adopted by the commission or that the applicant has aided, abetted,
  10-52  or conspired with any person to commit such a violation;
  10-53              (2)  the applicant has been convicted of a felony or of
  10-54  any crime involving moral turpitude, including convictions for
  10-55  which the punishment received was a suspended sentence, probation,
  10-56  or a nonadjudicated conviction, that is reasonably related to the
  10-57  applicant's present fitness to hold a license under this Act;
  10-58              (3)  the applicant has violated or has caused to be
  10-59  violated this Act or a rule of the commission in a manner that
  10-60  involves moral turpitude, as distinguished from a technical
  10-61  violation of this Act or of a rule;
  10-62              (4)  the applicant is unqualified, by experience or
  10-63  otherwise, to perform the duties required of a licensee under this
  10-64  Act;
  10-65              (5)  the applicant failed to answer or falsely or
  10-66  incorrectly answered a question in an original or renewal
  10-67  application;
  10-68              (6)  the applicant fails to disclose the true ownership
  10-69  or interest in a greyhound or horse as required by the rules of the
  10-70  commission;
   11-1              (7)  the applicant is indebted to the state for any
   11-2  fees or for the payment of a penalty imposed by this Act or by a
   11-3  rule of the commission;
   11-4              (8)  the applicant is not of good moral character or
   11-5  the applicant's reputation as a peaceable, law-abiding citizen in
   11-6  the community where the applicant resides is bad;
   11-7              (9)  the applicant has not yet attained the minimum age
   11-8  necessary to purchase alcoholic beverages in this state;
   11-9              (10)  the applicant is in the habit of using alcoholic
  11-10  beverages to an excess or uses a controlled substance as defined in
  11-11  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  11-12  in Chapter 483, Health and Safety Code or is mentally
  11-13  incapacitated;
  11-14              (11)  the applicant may be excluded from a track
  11-15  enclosure under Article 13 or 14 of this Act;
  11-16              (12)  the applicant has not been a United States
  11-17  citizen residing in this state for the period of 10 consecutive
  11-18  years immediately preceding the filing of the application;
  11-19              (13)  the applicant has improperly used a license
  11-20  certificate, credential, or identification card issued under this
  11-21  Act;
  11-22              (14)  the applicant is residentially domiciled with a
  11-23  person whose license has been revoked for cause within the 12
  11-24  months immediately preceding the date of the present application;
  11-25              (15)  the applicant has failed or refused to furnish a
  11-26  true copy of the application to the commission's district office in
  11-27  the district in which the premises for which the permit is sought
  11-28  are located; <or>
  11-29              (16)  the applicant is engaged or has engaged in
  11-30  activities or practices that the commission finds are detrimental
  11-31  to the best interests of the public and the sport of greyhound
  11-32  racing or horse racing; or
  11-33              (17)  the applicant fails to fully disclose the true
  11-34  owners of all interests, beneficial or otherwise, in a proposed
  11-35  racetrack facility.
  11-36        (b)  Subsection (a) of this section applies to a corporation,
  11-37  partnership, limited partnership, or any other organization or
  11-38  group whose application is comprised of more than one person if a
  11-39  shareholder, partner, limited partner <if any>, director, or
  11-40  officer is disqualified under Subsection (a) of this section.
  11-41        (e)  The <appropriate section of the> commission may
  11-42  condition the issuance of a license under this article on the
  11-43  observance of its rules.  The commission may amend the rules at any
  11-44  time and may condition the continued holding of the license on
  11-45  compliance with the rules as amended.
  11-46        (f)  The <appropriate section of the> commission may refuse
  11-47  to issue a license or may suspend or revoke a license of a licensee
  11-48  under this article who knowingly or intentionally allows access to
  11-49  an enclosure where greyhound races or horse races are conducted to
  11-50  a person who has engaged in bookmaking, touting, or illegal
  11-51  wagering, whose income is from illegal activities or enterprises,
  11-52  or who has been convicted of a violation of this Act.
  11-53        SECTION 23.  Section 6.06, Texas Racing Act (Article 179e,
  11-54  Vernon's Texas Civil Statutes), is amended by adding Subsection (i)
  11-55  to read as follows:
  11-56        (i)  Subsections (a)(12), (c), and (d) of this section do not
  11-57  apply to an applicant for or the holder of a racetrack license if
  11-58  the applicant, the license holder, or the license holder's parent
  11-59  company is a publicly traded company and the license applied for or
  11-60  held is for the operation of a racetrack facility that is within
  11-61  100 miles of the border of the United Mexican States.
  11-62        SECTION 24.  Article 6, Texas Racing Act (Article 179e,
  11-63  Vernon's Texas Civil Statutes), is amended by adding Sections 6.061
  11-64  and 6.062 to read as follows:
  11-65        Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE
  11-66  CONDITIONS.  (a)  The commission shall adopt rules implementing
  11-67  this section, including rules:
  11-68              (1)  requiring the report of and correction of:
  11-69                    (A)  an inappropriate condition on the premises
  11-70  of a racetrack facility, including a failure to properly maintain
   12-1  the facility, that interferes with the administration of this Act;
   12-2  or
   12-3                    (B)  a condition on the premises of a racetrack
   12-4  facility that makes the facility unsafe for a race participant,
   12-5  patron, or animal; and
   12-6              (2)  determining the methods and manner in which the
   12-7  executive secretary may determine and remedy inappropriate
   12-8  conditions or unsafe facilities on the premises of a racetrack
   12-9  facility, including the methods and manner in which the executive
  12-10  secretary may conduct inspections of the racetrack facility and
  12-11  remedy emergency situations.
  12-12        (b)  The executive secretary shall issue a notice of
  12-13  violation to a racetrack facility on a finding that an
  12-14  inappropriate or unsafe condition exists.
  12-15        (c)  If the executive secretary determines that an
  12-16  inappropriate or unsafe condition exists at the racetrack facility,
  12-17  the executive secretary shall order the racetrack facility to take
  12-18  action within a specified period to remedy the inappropriate
  12-19  condition or unsafe condition.  In determining the period for
  12-20  compliance, the executive secretary shall consider the nature and
  12-21  severity of the problem and the threat to the health, safety, and
  12-22  welfare of the race participants, patrons, or animals.
  12-23        (d)  The commission shall adopt rules requiring the reporting
  12-24  of any corrective action taken by a racetrack facility in response
  12-25  to an order of the executive secretary under Subsection (c) of this
  12-26  section.
  12-27        (e)  If a racetrack facility fails to take any action as
  12-28  required under Subsection (c) of this section, the executive
  12-29  secretary shall initiate an enforcement action against the
  12-30  racetrack facility.  The executive secretary may rescind any live
  12-31  or simulcast race date of any racetrack association that does not
  12-32  take corrective action within the period set by the executive
  12-33  secretary.
  12-34        (f)  The commission shall adopt rules relating to the
  12-35  commission's review of an action taken under this section by the
  12-36  executive secretary.  A  review procedure adopted under this
  12-37  subsection must be consistent with Chapter 2001, Government Code.
  12-38        Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The
  12-39  commission shall adopt a method of supervising and approving the
  12-40  construction, renovation, or maintenance of any building or
  12-41  improvement on the premises of a racetrack facility.
  12-42        (b)  The commission shall adopt rules relating to:
  12-43              (1)  the approval of plans and specifications;
  12-44              (2)  the contents of plans and specifications;
  12-45              (3)  the maintenance of records to ensure compliance
  12-46  with approved plans and specifications;
  12-47              (4)  the content and filing of construction progress
  12-48  reports by the racetrack facility to the commission;
  12-49              (5)  the inspection by the commission or others;
  12-50              (6)  the method for making a change or amendment to an
  12-51  approved plan or specification; and
  12-52              (7)  any other method of supervision or oversight
  12-53  necessary.
  12-54        (c)  If the commission has grounds to believe that an
  12-55  association has failed to comply with the requirements of this
  12-56  section, a representative of the association shall appear before
  12-57  the commission, at a public hearing, to consider the issue of
  12-58  compliance with the rules adopted under this section.
  12-59        (d)  Before a building or improvement may be used by the
  12-60  association, the commission shall determine whether the
  12-61  construction, renovation, or maintenance of the building or
  12-62  improvement was completed in accordance with the approved plans and
  12-63  specifications and whether other requirements of the commission
  12-64  were met.
  12-65        (e)  If the commission determines that the association failed
  12-66  to comply with a requirement of this section or rule adopted under
  12-67  this section, the commission shall initiate an enforcement action
  12-68  against the association.  In addition to any other authorized
  12-69  enforcement action, the commission may rescind any live or
  12-70  simulcast race date of any association that has failed to comply
   13-1  with the requirement of this section.
   13-2        SECTION 25.  Section 6.08(l), Texas Racing Act (Article 179e,
   13-3  Vernon's Texas Civil Statutes), is amended to read as follows:
   13-4        (l)  An association may not make a deduction or withhold any
   13-5  percentage of a purse from the account into which the purse paid to
   13-6  a horse owner is deposited for membership payments, dues,
   13-7  assessments, or any other payments to any <an> organization except
   13-8  an organization of the horse owner's choice recognized by the
   13-9  commission as an official representative of the horsemen licensed
  13-10  by the commission.
  13-11        SECTION 26.  Section 6.09, Texas Racing Act (Article 179e,
  13-12  Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
  13-13  to read as follows:
  13-14        (f)  The commission in adopting rules relating to money paid
  13-15  to the commission for use by the state greyhound breed registry
  13-16  under Subsection (d) of this section shall require the award of a
  13-17  grant in an amount equal to two percent of the amount paid to the
  13-18  commission for use by the state greyhound breed registry to a
  13-19  person or entity for the rehabilitation of greyhounds or to locate
  13-20  homes for greyhounds.
  13-21        SECTION 27.  Section 6.091(a), Texas Racing Act (Article
  13-22  179e, Vernon's Texas Civil Statutes), is amended to read as
  13-23  follows:
  13-24        (a)  An association shall distribute from the total amount
  13-25  deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
  13-26  from each simulcast pari-mutuel pool the following shares:
  13-27              (1)  an amount equal to one percent of each pool as the
  13-28  amount set aside for the state;
  13-29              (2)  an amount equal to 0.25 percent of each pool set
  13-30  aside to the Texas Commission on Alcohol and Drug Abuse to be
  13-31  expended for the prevention of problem gambling;
  13-32              (3)  if the association is a horse racing association,
  13-33  an amount equal to one percent of a multiple two wagering pool or
  13-34  multiple three wagering pool as the amount set aside for the
  13-35  Texas-bred program to be used as provided by Section 6.08(f) of
  13-36  this Act;
  13-37              (4)  if the association is a greyhound association, an
  13-38  amount equal to one percent of a multiple two wagering pool or a
  13-39  multiple three wagering pool as the amount set aside for the
  13-40  Texas-bred program for greyhound races, to be distributed and used
  13-41  in accordance with rules of the commission adopted to promote
  13-42  greyhound breeding in this state; and
  13-43              (5)  except as provided by Section 11.0115(b) of this
  13-44  Act, the remainder as the amount set aside for purses, expenses,
  13-45  the sending association, and the receiving location pursuant to a
  13-46  contract approved by the commission between the sending association
  13-47  and the receiving location.
  13-48        SECTION 28.  Article 6, Texas Racing Act (Article 179e,
  13-49  Vernon's Texas Civil Statutes), is amended by adding Section 6.092
  13-50  to read as follows:
  13-51        Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY
  13-52  PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,
  13-53  monitoring, and auditing requirements or other appropriate
  13-54  performance measures for any funds distributed to or used by or any
  13-55  function or service provided by the expenditure of any funds
  13-56  distributed to or used by any organization that receives funds
  13-57  generated by live or simulcast pari-mutuel racing.
  13-58        (b)  The commission shall adopt the requirements or
  13-59  performance measures after consultation with the affected
  13-60  organization.  In adopting the rules, the commission shall give
  13-61  consideration to the concerns of the affected organization.
  13-62        (c)  An independent audit shall be conducted annually of an
  13-63  organization receiving funds generated by live or simulcast
  13-64  pari-mutuel racing.  A copy of the report shall be sent to the
  13-65  commission.  The audit shall include a verification of any
  13-66  performance report sent to or required by the commission.
  13-67        (d)  The commission may review any records or books of an
  13-68  organization that submits an independent audit to the commission as
  13-69  the commission determines necessary to confirm or further
  13-70  investigate the findings of an audit or report.
   14-1        (e)  The commission by rule may suspend or withhold funds
   14-2  from an organization that:
   14-3              (1)  it determines has failed to comply with the
   14-4  requirements or performance measures adopted under Subsection (a)
   14-5  of this section; or
   14-6              (2)  has, following an independent audit or other
   14-7  report to the commission, material questions raised on the use of
   14-8  funds by the organization.
   14-9        SECTION 29.  Section 6.17(a), Texas Racing Act (Article 179e,
  14-10  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-11        (a)  A commissioners court may collect a fee not to exceed 15
  14-12  cents on each paid <as an> admission <fee> to a licensed racetrack
  14-13  located within the county.  If the racetrack is located within an
  14-14  incorporated city or town, the governing body of the city or town
  14-15  may collect a fee not to exceed 15 cents on each paid <as an>
  14-16  admission <fee> to a licensed racetrack located within the city or
  14-17  town.  If the racetrack is not located within an incorporated city
  14-18  or town, the court may collect an additional fee not to exceed 15
  14-19  cents on each paid <as an> admission <fee> to a licensed racetrack
  14-20  located within the county for allocation among the incorporated
  14-21  cities or towns in the county.  If the racetrack is not located in
  14-22  an incorporated city or town, the court shall collect the
  14-23  additional fee if requested to do so by the governing bodies of a
  14-24  majority of the incorporated cities and towns in the county.
  14-25  Allocation of the fees shall be based on the population within the
  14-26  county of the cities or towns.
  14-27        SECTION 30.  Section 7.01, Texas Racing Act (Article 179e,
  14-28  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-29        Sec. 7.01.  License required.  A person shall not participate
  14-30  in racing with pari-mutuel wagering <as regulated by this Act>
  14-31  without first obtaining a license from the commission. <A person
  14-32  who violates this section commits an offense.>
  14-33        SECTION 31.  Section 7.02, Texas Racing Act (Article 179e,
  14-34  Vernon's Texas Civil Statutes), is amended by amending Subsection
  14-35  (a) and adding Subsections (c) and (d) to read as follows:
  14-36        (a)  Each person, other than a spectator or person placing a
  14-37  wager, involved in any capacity with racing with pari-mutuel
  14-38  wagering under<, other than as a spectator, as regulated by> this
  14-39  Act<,> must obtain a license under this article.  <A person who
  14-40  violates this subsection commits an offense.>
  14-41        (c)  If an examination is required for the issuance of a
  14-42  license under this article, not later than the 30th day after the
  14-43  day on which a licensing examination is administered under this
  14-44  Act, the commission shall notify each examinee of the results of
  14-45  the examination.
  14-46        (d)  If requested in writing by a person who fails a
  14-47  licensing examination administered under this Act, the commission
  14-48  shall furnish the person with an analysis of the person's
  14-49  performance on the examination.
  14-50        SECTION 32.  Section 7.04, Texas Racing Act (Article 179e,
  14-51  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-52        Sec. 7.04.  Licenses; grounds for denial, revocation, and
  14-53  suspension.  The commission, after notice and hearing, may refuse
  14-54  to issue any original or renewal license under this article or may
  14-55  revoke or suspend the license if it has reasonable grounds to
  14-56  believe and finds that:
  14-57              (1)  the applicant has been convicted in a court of
  14-58  competent jurisdiction of a violation of this Act or of any rule
  14-59  adopted by the commission or has aided, abetted, or conspired with
  14-60  any person to commit such a violation;
  14-61              (2)  the applicant has been convicted of a felony or of
  14-62  any crime involving moral turpitude that is reasonably related to
  14-63  the applicant's present fitness to hold a license under this Act;
  14-64              (3)  the applicant has violated or has caused to be
  14-65  violated this Act or a rule of the commission in a manner that
  14-66  involves moral turpitude, as distinguished from a technical
  14-67  violation of this Act or of a rule;
  14-68              (4)  the applicant is unqualified, by experience or
  14-69  otherwise, to perform the duties required of a licensee under this
  14-70  Act;
   15-1              (5)  the applicant failed to answer or has falsely or
   15-2  incorrectly answered a question in an original or renewal
   15-3  application;
   15-4              (6)  the applicant fails to disclose the true ownership
   15-5  or interest in a greyhound or horse as required by the rules of the
   15-6  commission;
   15-7              (7)  the applicant is indebted to the state for any
   15-8  fees or for the payment of a penalty imposed by this Act or by a
   15-9  rule of the commission;
  15-10              (8)  the applicant is not of good moral character or
  15-11  the applicant's reputation as a peaceable, law-abiding citizen in
  15-12  the community where the applicant resides is bad;
  15-13              (9)  the applicant is in the habit of using alcoholic
  15-14  beverages to an excess or uses a controlled substance as defined in
  15-15  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  15-16  in Chapter 483, Health and Safety Code or is mentally
  15-17  incapacitated;
  15-18              (10)  the applicant may be excluded from a track
  15-19  enclosure under Article 13 or 14 of this Act;
  15-20              (11)  the commission determines that the applicant has
  15-21  improperly used a temporary pass, license certificate, credential,
  15-22  or identification card issued under this Act;
  15-23              (12)  the applicant is residentially domiciled with a
  15-24  person whose license has been revoked for cause within the 12
  15-25  months immediately preceding the date of the present application;
  15-26              (13)  the applicant has failed or refused to furnish a
  15-27  true copy of the application to the commission's district office in
  15-28  the district in which the premises for which the permit is sought
  15-29  are located; or
  15-30              (14)  the applicant is engaged or has engaged in
  15-31  activities or practices that are detrimental to the best interests
  15-32  of the public and the sport of horse racing or greyhound racing.
  15-33        SECTION 33.  Section 7.05, Texas Racing Act (Article 179e,
  15-34  Vernon's Texas Civil Statutes), is amended to read as follows:
  15-35        Sec. 7.05.  License fees.  (a)  The commission shall adopt by
  15-36  rule a fee schedule for licenses issued under this article.
  15-37        (b)  The commission shall base the license fees on the
  15-38  relative or comparative incomes or property interests of the
  15-39  various categories of licensees, with the lower income category of
  15-40  licensees being charged nearer the minimum fee and the higher
  15-41  income category of licensees charged nearer the maximum fee.
  15-42        (c)  In setting the fee schedule under Subsection (a) of this
  15-43  section, the commission shall include the cost of criminal history
  15-44  checks determined under Section 5.05 of this Act.  The commission
  15-45  may determine the best method for recouping this cost and complying
  15-46  with the other provisions of this section, including collecting the
  15-47  costs over an extended period.
  15-48        SECTION 34.  Section 7.07, Texas Racing Act (Article 179e,
  15-49  Vernon's Texas Civil Statutes), is amended to read as follows:
  15-50        Sec. 7.07.  Term of license.  (a)  A license issued under
  15-51  this article is valid for a period set by the commission not to
  15-52  exceed 36 months following the date of its issuance.  It is
  15-53  renewable on application and payment of the fee in accordance with
  15-54  the rules of the commission.
  15-55        (b)  The commission by rule may adopt a system under which
  15-56  licenses expire on various dates during the year.  For the year in
  15-57  which the license expiration date is changed, license fees shall be
  15-58  prorated on a monthly basis so that each licensee pays only that
  15-59  portion of the license fee that is allocable to the number of
  15-60  months during which the license is valid.  On renewal of the
  15-61  license on the new expiration date, the total license renewal fee
  15-62  is payable.
  15-63        SECTION 35.  Article 7, Texas Racing Act (Article 179e,
  15-64  Vernon's Texas Civil Statutes), is amended by adding Section 7.10
  15-65  to read as follows:
  15-66        Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
  15-67  (a)  The commission may waive any prerequisite to obtaining a
  15-68  license for an applicant, including any requirement to submit a set
  15-69  of fingerprints, after reviewing the applicant's credentials and
  15-70  determining that the applicant holds a valid license from another
   16-1  state that has license requirements substantially equivalent to
   16-2  those of this state.
   16-3        (b)  The commission may waive any prerequisite to obtaining a
   16-4  license, including any requirement to submit a set of fingerprints,
   16-5  for an applicant with a valid license from another state with which
   16-6  the State of Texas has a reciprocity agreement.  The commission may
   16-7  enter into reciprocal agreements with other states to allow for
   16-8  licensing by reciprocity.
   16-9        SECTION 36.  Section 9.01, Texas Racing Act (Article 179e,
  16-10  Vernon's Texas Civil Statutes), is amended to read as follows:
  16-11        Sec. 9.01.  Texas-bred horses.  Subject to this Act and any
  16-12  rule of the commission, the <The> state horse breed registries
  16-13  shall make reasonable rules to establish the qualifications of
  16-14  accredited Texas-bred horses to promote, develop, and improve the
  16-15  breeding of horses in this state.  Rules adopted by a registry are
  16-16  subject to commission approval.
  16-17        SECTION 37.  Section 10.04, Texas Racing Act (Article 179e,
  16-18  Vernon's Texas Civil Statutes), is amended to read as follows:
  16-19        Sec. 10.04.  Texas-bred greyhounds.  (a)  Subject to this Act
  16-20  or any rule of the commission, the <The> state greyhound breed
  16-21  registry shall make reasonable rules to establish the
  16-22  qualifications of accredited Texas-bred greyhounds to promote,
  16-23  develop, and improve the breeding of greyhounds in this state.
  16-24  Rules adopted by the registry are subject to commission approval.
  16-25        (b)  The commission shall adopt standards relating to the
  16-26  operation of greyhound farms or other facilities where greyhounds
  16-27  are raised for pari-mutuel racing.
  16-28        SECTION 38.  Section 11.011, Texas Racing Act (Article 179e,
  16-29  Vernon's Texas Civil Statutes), is amended by amending Subsections
  16-30  (a), (c), (f), and (g) and adding Subsection (h) to read as
  16-31  follows:
  16-32        (a)  The commission shall adopt rules to license, register,
  16-33  and regulate pari-mutuel wagering on:
  16-34              (1)  races conducted in this state and simulcast to
  16-35  licensed racetrack associations and simulcasting facilities in this
  16-36  state or to out-of-state receiving locations; and
  16-37              (2)  races conducted out-of-state and simulcast to
  16-38  licensed racetrack associations and simulcasting facilities in this
  16-39  state.
  16-40        (c)  With approval of the commission, wagers accepted by a
  16-41  licensed racetrack association or simulcasting facility in this
  16-42  state on a race simulcast from out-of-state may be included in the
  16-43  pari-mutuel pools for the race at the out-of-state sending
  16-44  racetrack.
  16-45        (f)  Nothing in this Act is to be construed to allow wagering
  16-46  <in Texas on simulcast races> at any location other than a
  16-47  racetrack licensed or a simulcasting facility registered under
  16-48  Section 11.0117 of this Act with the commission under this Act
  16-49  <that has been granted live race dates by the commission>.
  16-50        (g)  The <Nothing in this Act is to be construed to allow>
  16-51  wagering on a simulcast horse race at a greyhound racetrack in this
  16-52  state<,> or <to permit> wagering on a simulcast greyhound race at a
  16-53  horse racetrack in this state is permissible only under the
  16-54  provisions of Section 11.0115 of this Act.
  16-55        (h)  A simulcasting facility may not be located in a county
  16-56  where a class 2 or class 3 racetrack conducts live racing, unless
  16-57  the breed registry representing the breeds of horses running live
  16-58  at the class 2 or class 3 racetrack agrees.  A simulcasting
  16-59  facility may not be located in the county where a class 2 or class
  16-60  3 racetrack that did not conduct live racing in 1995 is located,
  16-61  unless the class 2 or class 3 racetrack agrees.
  16-62        SECTION 39.  Article 11, Texas Racing Act (Article 179e,
  16-63  Vernon's Texas Civil Statutes), is amended by adding Sections
  16-64  11.0115, 11.0116, and 11.0117 to read as follows:
  16-65        Sec. 11.0115.  CROSS-SPECIES SIMULCAST.  (a)  The commission
  16-66  shall adopt rules relating to the regulation of pari-mutuel
  16-67  wagering on races conducted in this state:
  16-68              (1)  by a greyhound track and simulcast to a horse
  16-69  racing track in this state; and
  16-70              (2)  by a horse racing track and simulcast to a
   17-1  greyhound track in this state.
   17-2        (b)  In the absence of an agreement between an officially
   17-3  recognized horseman's or kennel operator's or owner's organization
   17-4  at the sending association and the officially recognized
   17-5  organization at the receiving association,  5-1/2 percent of the
   17-6  pari-mutuel wagering pool shall be deducted for purses and shall be
   17-7  placed in escrow until the formation of a contract.  Interest on
   17-8  the amount in escrow shall be paid to the general revenue fund and
   17-9  shall be:
  17-10              (1)  used to repay any amount of money owed by the
  17-11  commission to the general revenue fund to reimburse the start-up
  17-12  costs of the commission; or
  17-13              (2)  if there are no amounts owing, deposited to the
  17-14  credit of the general revenue fund.
  17-15        (c)  The rules of the commission applicable to this section
  17-16  shall require that the same percentage of a simulcast pool
  17-17  conducted under this section be set aside for the state and the
  17-18  Texas-bred program of the breed registry of the sending association
  17-19  as is set aside for the state and the Texas-bred program in Section
  17-20  6.091 of this Act.
  17-21        Sec. 11.0116.  GENERAL SIMULCASTING REQUIREMENTS.  (a)  The
  17-22  commission shall require that a greyhound or horse racing track
  17-23  that presents simulcasting shall be required to receive a simulcast
  17-24  from any other licensed racetrack association in this state that
  17-25  provides or sends a simulcast of a race presented by the licensed
  17-26  racetrack association.
  17-27        (b)  The commission shall require a racing association
  17-28  sending a simulcast and a racing association receiving a simulcast
  17-29  to enter into a contract regarding the amount of fee or expense
  17-30  that may be charged.  In the absence of an agreement between a
  17-31  sending association and a receiving association, the receiving
  17-32  association may charge an amount equal to three percent of the
  17-33  simulcast pari-mutuel pool at the receiving association.
  17-34        Sec. 11.0117.  SIMULCASTING FACILITY PILOT PROGRAM.  (a)  The
  17-35  commission shall adopt rules to implement a pilot program for the
  17-36  conduct of simulcasting at a simulcasting facility.  The commission
  17-37  may allow the program to operate only in:
  17-38              (1)  any county that has previously approved
  17-39  pari-mutuel wagering and that is within a 75-mile radius of a
  17-40  licensed greyhound racetrack that is within 100 miles of the United
  17-41  Mexican States; and
  17-42              (2)  Cameron County.
  17-43        (b)  In adopting rules under this section, the commission
  17-44  shall adopt rules to allow and regulate pari-mutuel wagering on
  17-45  intrastate and interstate simulcast races at the simulcasting
  17-46  facility.
  17-47        (c)  The commission may not register more than three
  17-48  simulcasting facilities under this section.
  17-49        SECTION 40.  Section 11.04, Texas Racing Act (Article 179e,
  17-50  Vernon's Texas Civil Statutes), is amended by amending Subsections
  17-51  (a) and (c) and adding Subsection (e) to read as follows:
  17-52        (a)  Only a person inside the enclosure where a <both> live
  17-53  race or <and> simulcast race meeting is <meetings are> authorized
  17-54  may wager on the result of a live or simulcast race presented by
  17-55  the association in accordance with commission rules.  The
  17-56  commission shall adopt rules to prohibit wagering by employees of
  17-57  the commission and to regulate wagering by persons licensed under
  17-58  this Act.
  17-59        (c)  The commission shall adopt rules prohibiting an
  17-60  association from accepting a wager made on credit <and shall adopt
  17-61  rules prohibiting automatic banking machines within the enclosure>.
  17-62  The commission shall prohibit all forms of automatic banking
  17-63  machines, except the commission may not prohibit a machine that
  17-64  uses an automated method that allows a person to access only the
  17-65  person's checking account at a bank or other financial institution,
  17-66  including a machine that requires the presence of another to
  17-67  initiate the access to the checking account.
  17-68        (e)  The commission shall require an association that allows
  17-69  the presence of a machine on the premises of the racetrack under
  17-70  Subsection (c) of this section to collect a fee of $1 for each
   18-1  transaction allowed under Subsection (c).  The commission shall
   18-2  adopt rules relating to the collection, reporting, and auditing of
   18-3  that transaction fee.  The fee shall be forwarded to the commission
   18-4  and shall be:
   18-5              (1)  used to repay any amount of money owed by the
   18-6  commission to the general revenue fund to reimburse the start-up
   18-7  costs of the commission; or
   18-8              (2)  if there are no amounts owing, deposited to the
   18-9  credit of the general revenue fund.
  18-10        SECTION 41.  Section 11.06, Texas Racing Act (Article 179e,
  18-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  18-12        Sec. 11.06.  Minors.  <(a)>  The commission shall adopt rules
  18-13  to prohibit wagering by a minor <prevent wagering by persons who
  18-14  have not yet attained the minimum age required to purchase
  18-15  alcoholic beverages in this state> and to prohibit <prevent> a
  18-16  child <person under 16 years of age> from entering the viewing
  18-17  section of a racetrack unless accompanied by the child's <person's>
  18-18  parent or guardian.  The rules may except any conduct described as
  18-19  an affirmative defense by Section 14.13 of this Act <A person who
  18-20  intentionally, knowingly, recklessly, or with criminal negligence
  18-21  violates a rule adopted under this section commits an offense.  An
  18-22  offense under this section is a Class B misdemeanor>.
  18-23        <(b)  A person commits an offense if the person intentionally
  18-24  or knowingly engages in gaming at a racetrack when the person has
  18-25  not yet attained the minimum age required to purchase alcoholic
  18-26  beverages in this state.  An offense under this subsection is a
  18-27  Class C misdemeanor.>
  18-28        SECTION 42.  Section 11.09, Texas Racing Act (Article 179e,
  18-29  Vernon's Texas Civil Statutes), is amended to read as follows:
  18-30        Sec. 11.09.  No liability to prosecution.  The defense to
  18-31  prosecution under Chapter 47, Penal Code, that the conduct was
  18-32  authorized under this Act is available only to a person who is:
  18-33              (1)  <A person> lawfully conducting or participating in
  18-34  the conduct of pari-mutuel wagering in connection with horse racing
  18-35  or greyhound racing; or
  18-36              (2)  permitting the lawful conduct of an activity
  18-37  described by Subdivision (1) of this section on any racetrack
  18-38  facility <on any premises owned or leased by him or it under any
  18-39  license lawfully issued under this Act is not liable to prosecution
  18-40  for that conduct>.
  18-41        SECTION 43.  Article 12, Texas Racing Act (Article 179e,
  18-42  Vernon's Texas Civil Statutes), is amended by adding Section 12.04
  18-43  to read as follows:
  18-44        Sec. 12.04.  CITY-OPERATED RACETRACK.  Subject to the
  18-45  licensing requirements and other provisions of this Act, a city
  18-46  with a population of 5,000 or more that owned a racetrack facility
  18-47  in 1986 may conduct an annual race meeting if the meeting does not
  18-48  exceed 16 racing days.
  18-49        SECTION 44.  Section 13.03, Texas Racing Act (Article 179e,
  18-50  Vernon's Texas Civil Statutes), is amended to read as follows:
  18-51        Sec. 13.03.  CRIMINAL TRESPASS <Entry after ejection>.
  18-52  <(a)>  A person, for the purposes of Section 30.05, Penal Code, is
  18-53  presumed to have received notice that entry to an enclosure was
  18-54  forbidden if the person:
  18-55              (1)  was excluded or ejected from the enclosure under
  18-56  this Act;
  18-57              (2)  possessed, displayed, or used in the enclosure a
  18-58  credential that the person was not authorized to use; or
  18-59              (3)  entered the enclosure using a falsified
  18-60  credential.  <who has been excluded or ejected from an enclosure
  18-61  under this article commits an offense if the person knowingly
  18-62  enters an enclosure of the same or another licensed racetrack
  18-63  unless the commission or a final judgment of a court has ordered
  18-64  that the rule does not apply to the person.>
  18-65        <(b)  An offense under this section is a Class A misdemeanor.>
  18-66        <(c)  The provisions of Section 7.22, Penal Code, imposing
  18-67  criminal responsibility on a corporation or association for an
  18-68  offense committed by its agent apply to conduct constituting an
  18-69  offense under this section that is performed by an agent of a
  18-70  corporation or association.>
   19-1        SECTION 45.  Article 14, Texas Racing Act (Article 179e,
   19-2  Vernon's Texas Civil Statutes), is amended to read as follows:
   19-3          ARTICLE 14.  CRIMINAL <TOUTING AND OTHER> OFFENSES
   19-4        Sec. 14.01.  Touting.  (a)  A person commits an offense if,
   19-5  with an intent to deceive and an intent to obtain a benefit
   19-6  <knowing the information is false>, the person knowingly makes a
   19-7  false statement <or intentionally conveys> or offers, agrees to
   19-8  convey, or conveys false information about a greyhound race or
   19-9  horse race to another <others for compensation>.
  19-10        (b)  Except as provided by Subsection (c) of this section, an
  19-11  offense under this section is a Class A misdemeanor <felony of the
  19-12  third degree>.
  19-13        (c)  An offense under this section is a state jail felony <of
  19-14  the second degree> if:
  19-15              (1)  the actor is a license holder under this Act or an
  19-16  employee or member of the commission and the actor knowingly
  19-17  represents that a member <an official> or employee of the
  19-18  commission or a <of an association or an owner, trainer, jockey, or
  19-19  other> person licensed by the commission is the source of the false
  19-20  information; or
  19-21              (2)  the false statement or information was contained
  19-22  in racing selection information provided to the public. <the actor
  19-23  previously has been finally convicted of an offense under this
  19-24  section or has been convicted of a felony for which the punishment
  19-25  received was a suspended sentence, probation, or a nonadjudicated
  19-26  conviction which has not yet been fully served.>
  19-27        <(d)  The provisions of Section 7.22, Penal Code, imposing
  19-28  criminal responsibility on a corporation or association for an
  19-29  offense committed by its agent apply to conduct constituting an
  19-30  offense under this section that is performed by an agent of a
  19-31  corporation or association.>
  19-32        Sec. 14.02.  Unlawful Possession or use of credential.
  19-33  (a)  A person commits an offense if the person knowingly or
  19-34  intentionally possesses or displays a <license or> credential or
  19-35  false credential that identifies <has been issued or purports to
  19-36  have been issued by the commission and represents that> the person
  19-37  as <is> the holder of the <license or> credential and <when> the
  19-38  person knows:
  19-39              (1)  that the <license or> credential is not issued to
  19-40  the person; or
  19-41              (2)  the person is not a license holder <if the person
  19-42  impersonates in any way a person holding a license or credential
  19-43  issued by the commission>.
  19-44        (b)  An offense under this section is a Class C misdemeanor
  19-45  <felony of the third degree>.
  19-46        <(c)  The provisions of Section 7.22, Penal Code, imposing
  19-47  criminal responsibility on a corporation or association for an
  19-48  offense committed by its agent apply to conduct constituting an
  19-49  offense under this section that is performed by an agent of a
  19-50  corporation or association.>
  19-51        <Sec. 14.03.  ILLEGAL INFLUENCE OF RACE OUTCOME.  (a)  The
  19-52  commission shall adopt rules prohibiting the illegal influencing of
  19-53  the outcome of a race, including but not limited to the use of
  19-54  medication, stimulants, or depressants to attempt to or to
  19-55  influence illegally the outcome of a race.>
  19-56        <(b)  The commission may require prerace testing by any
  19-57  invasive or noninvasive method or methods to determine whether such
  19-58  a drug, chemical, or other substance has been administered.  The
  19-59  commission shall require postrace testing by such method or
  19-60  methods.  The commission shall adopt rules that require all such
  19-61  tests to be conducted using state-of-the-art methods.  On any
  19-62  positive test showing the presence of prohibited drugs, chemicals,
  19-63  or other substances, the stewards or racing judges may summarily
  19-64  suspend any person who has administered or applied the drug,
  19-65  chemical, or other substance or any electric device or spur pending
  19-66  hearing by the stewards or judges with the right of appeal to the
  19-67  commission.  Such a suspension may be stayed, in the discretion of
  19-68  the commission only, during the pendency of such appeal. In
  19-69  addition, the stewards or racing judges may disqualify the affected
  19-70  animal pursuant to rules adopted by the commission under this
   20-1  section.  The commission may require that urine samples be frozen
   20-2  and maintained for a period that will enable veterinarians and
   20-3  chemists to conduct follow-up tests to detect and identify
   20-4  prohibited drugs.  All other specimens shall be maintained for
   20-5  testing purposes in the manner prescribed by the commission. In the
   20-6  event a sample tests positive for a drug, chemical, or other
   20-7  substance, all samples, including the split portion, shall be
   20-8  maintained until the matter is finally adjudicated.  A licensee
   20-9  whose animal has tested positive for a drug, chemical, or other
  20-10  substance is entitled to have a split portion of the sample tested
  20-11  at a testing facility authorized to perform drug testing under
  20-12  Section 3.07 of this Act and selected by the licensee.  The
  20-13  commission shall adopt rules regarding the procedure for the split
  20-14  testing.>
  20-15        <(c)  The official licensed trainer of each such animal is
  20-16  deemed by law to be the absolute insurer that no prohibited drug,
  20-17  chemical, or other substance has been administered and shall be
  20-18  responsible to see that such a drug, chemical, or other substance
  20-19  is not administered.>
  20-20        <(d)  By applying for a license under this Act, each
  20-21  occupational licensee consents to both prerace and postrace search
  20-22  for the purpose of determining the presence of such a drug,
  20-23  chemical, or other substance or of any electrical device or other
  20-24  device that might have the effect of unnaturally depressing,
  20-25  stimulating, or exciting any animal during a race.  The commission
  20-26  shall adopt rules relating to drug testing for occupational
  20-27  licensees.>
  20-28        <(e)  A person who knowingly violates a rule adopted under
  20-29  this section may be barred, either for a period set by the
  20-30  commission or for life, from receiving any license under this Act
  20-31  or may be barred for a period set by the commission or for life
  20-32  from any premises licensed under this Act, or both.>
  20-33        <(f)  A person who knowingly violates a rule adopted under
  20-34  this section commits a felony of the third degree for the first
  20-35  offense and a felony of the second degree for a second or
  20-36  subsequent offense.>
  20-37        <(g)  A person who gives, offers or promises to give, or
  20-38  attempts to give or offer any money, bribe, or thing of value to
  20-39  any jockey, trainer, owner, groom, or other person associated with
  20-40  or interested in any stable, kennel, horse, or dog, or race in
  20-41  which any horse or dog participates, with the intention or
  20-42  understanding or agreement that such individual shall not use his
  20-43  best efforts to win such race, or shall so conduct himself in such
  20-44  race that any other participant shall thereby be assisted or
  20-45  enabled to win such race, or shall so conduct himself in such race
  20-46  as to limit his finishing or placing in such race commits an
  20-47  offense.  Such an offense is a felony of the third degree.>
  20-48        <(h)  A person who accepts, attempts to accept, offers to
  20-49  accept, or agrees to accept any money, bribe, or thing of value,
  20-50  with the intention or understanding or agreement that he will not
  20-51  use his best efforts to win any horse or dog race, in which he is
  20-52  the jockey, trainer, groom, owner, or other interested party or is
  20-53  about to participate in, or will so conduct himself in such race
  20-54  that any other horse or dog shall thereby be assisted or enabled to
  20-55  win such race, or will so conduct himself in such race as to limit
  20-56  his finishing or placing in such race commits an offense.  Such an
  20-57  offense is a felony of the third degree.>
  20-58        <(i)  A person who gives, offers to give, promises to give,
  20-59  or attempts to give any money, bribe, or thing of value to any
  20-60  person who is presiding or officiating at or who is about to
  20-61  preside or officiate at any dog or horse race with the intention or
  20-62  agreement or understanding that such person shall corruptly or
  20-63  dishonestly preside or officiate at any such race with the
  20-64  intention or purpose that the result of the race will be affected
  20-65  or influenced thereby commits an offense.  Such an offense is a
  20-66  felony of the third degree.>
  20-67        Sec. 14.04.  Illegal access.  (a)  A person commits an
  20-68  offense if the person is a license holder and the person <licensee
  20-69  who> knowingly or intentionally permits, facilitates, or allows
  20-70  access to an enclosure to another person who the person knows:
   21-1              (1)  <where races are conducted to a person who> has
   21-2  engaged in bookmaking, touting, or illegal wagering where races are
   21-3  conducted;
   21-4              (2)  derives<, whose> income <is> from illegal
   21-5  activities or enterprises where races are conducted;
   21-6              (3)  <, or who> has been convicted of a violation of
   21-7  this  Act; or
   21-8              (4)  is excluded by the commission from entering a
   21-9  racetrack facility<, commits an offense>.
  21-10        (b)  An offense under this section is a Class B misdemeanor
  21-11  <felony of the third degree>.
  21-12        Sec. 14.05.  Races conducted on certain Indian lands.  (a)  A
  21-13  person who is subject to this section commits an offense if the
  21-14  person intentionally or knowingly wagers on the result of a
  21-15  greyhound race or horse race conducted in this state that:
  21-16              (1)  is held on an American Indian reservation or on
  21-17  American Indian trust land located in this state; and
  21-18              (2)  is not held under the supervision of the
  21-19  commission under rules adopted under this Act.
  21-20        (b)  An offense under this section is a felony of the third
  21-21  degree.
  21-22        (c)  It is an exception to the application of this section
  21-23  that the person is a member of a recognized Texas Indian tribe who
  21-24  lives on a reservation or on trust lands located in this state.
  21-25        Sec. 14.06.  False statements.  (a)  A person commits an
  21-26  offense if the person <intentionally,> knowingly<, recklessly, or
  21-27  with criminal negligence> makes a material and false, incorrect, or
  21-28  deceptive statement to another who is conducting an investigation
  21-29  or exercising discretion under this Act or a commission rule
  21-30  <adopted under this Act>.
  21-31        (b)  In this section, the <The> term "statement" means a
  21-32  representation of fact and includes<, but is not limited to>:
  21-33              (1)  a written or oral statement <statements>; or
  21-34              (2)  a sworn or unsworn statement <statements>.
  21-35        (c)  An offense under this section is a state jail felony
  21-36  unless the statement was material in a commission action relating
  21-37  to a racetrack license, in which event, the offense is a felony of
  21-38  the third degree.
  21-39        Sec. 14.07.  HINDERING OF ENTRY OR SEARCH.  (a)  A person
  21-40  commits an offense if the person <intentionally, knowingly,
  21-41  recklessly, or> with criminal negligence refuses, denies, or
  21-42  hinders entry to another who is exercising or attempting to
  21-43  exercise a power of entry under this Act or a commission rule.
  21-44        (b)  A person commits an offense if the person with criminal
  21-45  negligence refuses, denies, hinders, interrupts, disrupts, impedes,
  21-46  or otherwise interferes with a search by a person exercising or
  21-47  attempting to exercise a power to search under this Act or a
  21-48  commission rule.
  21-49        (c) <(b)>  An offense under this section is a Class B
  21-50  misdemeanor.
  21-51        Sec. 14.08.  FORGING PARI-MUTUEL TICKET.  (a) A person
  21-52  commits an offense if the person intentionally or knowingly forges
  21-53  a pari-mutuel ticket with the intent to defraud or harm another.
  21-54        (b)  In this section, "forge" has the meaning assigned by
  21-55  Section 32.21, Penal Code.
  21-56        (c)  An offense under this section is a felony of the third
  21-57  degree.
  21-58        Sec. 14.09.  IMPERSONATING A LICENSE HOLDER.  (a) A person
  21-59  commits an offense if the person impersonates a license holder with
  21-60  the intent to induce another person to submit to the actor's
  21-61  purported authority as a license holder or to rely on the actor's
  21-62  actions as an alleged license holder.
  21-63        (b)  An offense under this section is a Class A misdemeanor.
  21-64        Sec. 14.10.  UNLAWFUL INFLUENCE ON RACING.  (a) A person
  21-65  commits an offense if the person possesses a prohibited device or
  21-66  substance on a racetrack facility.
  21-67        (b)  An offense under Subsection (a) of this section is a
  21-68  state jail felony, unless the actor possessed the device or
  21-69  substance with the intent to influence or affect the outcome of a
  21-70  horse or greyhound race in a manner contrary to this Act or a
   22-1  commission rule, in which event it is a felony of the third degree.
   22-2        (c)  A person commits an offense if, with the intent to
   22-3  influence or affect a horse or greyhound race in a manner contrary
   22-4  to this Act or a commission rule, the person:
   22-5              (1)  uses or offers to use a prohibited device; or
   22-6              (2)  uses or offers to use a prohibited substance.
   22-7        (d)  An offense under Subsection (c) of this section is a
   22-8  felony of the third degree.
   22-9        Sec. 14.11.  BRIBERY AND CORRUPT INFLUENCE.  (a) A person
  22-10  commits an offense if, with the intent to influence or affect the
  22-11  outcome of a race in a manner contrary to this Act or a commission
  22-12  rule, the person offers, confers, agrees to confer on another, or
  22-13  solicits, accepts, or agrees to accept from another person any
  22-14  benefit as consideration for the actions of a person who receives
  22-15  the benefit relating to the conduct, decision, opinion,
  22-16  recommendation, vote, or exercise of discretion as a license holder
  22-17  or other person associated with or interested in any stable,
  22-18  kennel, horse, greyhound, or horse or greyhound race.
  22-19        (b)  An offense under this section is a state jail felony,
  22-20  unless the recipient of the benefit is a steward, judge, or other
  22-21  racetrack official exercising authority over a horse or greyhound
  22-22  race that the person providing or offering the benefit intended to
  22-23  influence, in which event it is a felony of the third degree.
  22-24        Sec. 14.12.  CRIMINAL CONFLICT OF INTEREST.  A person who is
  22-25  a member of the commission commits an offense if the person:
  22-26              (1)  accepts, directly or indirectly, employment or
  22-27  remuneration from a racetrack facility, association, or other
  22-28  license holder, including a facility, association, or license
  22-29  holder located or residing in another state;
  22-30              (2)  wagers or causes a wager to be placed on the
  22-31  outcome of a horse or greyhound race conducted in this state; or
  22-32              (3)  accepts or is entitled to any part of a purse to
  22-33  be paid to an animal in a race conducted in this state.
  22-34        Sec. 14.13.  OFFENSES INVOLVING A MINOR.  (a) A person
  22-35  commits an offense if the person with criminal negligence permits,
  22-36  facilitates, or allows:
  22-37              (1)  wagering by a minor at a racetrack facility; or
  22-38              (2)  entry by a child to the viewing section of a
  22-39  racetrack facility.
  22-40        (b)  An offense under Subsection (a) of this section is a
  22-41  Class B misdemeanor.
  22-42        (c)  A person commits an offense if the person is a minor and
  22-43  intentionally or knowingly engages in wagering at a racetrack.
  22-44        (d)  An offense under Subsection (c) of this section is a
  22-45  Class C misdemeanor.
  22-46        (e)  It is an affirmative defense to prosecution of an
  22-47  offense under this section that a child was accompanied by and was
  22-48  in the physical presence of a parent, guardian, or spouse who was
  22-49  18 years of age or older.
  22-50        (f)  It is an affirmative defense to prosecution of an
  22-51  offense under Subsection (a) of this section that the minor falsely
  22-52  represented the minor's age by displaying to the person an
  22-53  apparently valid Texas driver's license or identification card
  22-54  issued by the department that contains a physical description
  22-55  consistent with the minor's appearance.
  22-56        Sec. 14.14.  UNLAWFUL RACING.  A person commits an offense
  22-57  if:
  22-58              (1)  the person participates, permits, or conducts a
  22-59  greyhound or horse race at a licensed racetrack facility;
  22-60              (2)  the person wagers on the partial or final outcome
  22-61  of the horse or greyhound race or knows or reasonably should know
  22-62  that another is betting on the partial or final outcome of the
  22-63  race; and
  22-64              (3)  the race is not part of a performance or meeting
  22-65  conducted under this Act or commission rule.
  22-66        Sec. 14.15.  PARI-MUTUEL RACING WITHOUT LICENSE.  (a) A
  22-67  person commits an offense if, without a license, the person
  22-68  participates or is otherwise involved in, in any capacity,
  22-69  greyhound racing or horse racing with pari-mutuel wagering.
  22-70        (b)  It is an affirmative defense to prosecution under
   23-1  Subsection (a) of this section that the actor was a spectator or a
   23-2  person placing a wager.
   23-3        (c)  An offense under Subsection (a) of this section is a
   23-4  Class A misdemeanor, unless the actor was required by this Act to
   23-5  obtain a racetrack license, in which event it is a state jail
   23-6  felony.
   23-7        Sec. 14.16.  RACING WITHOUT LICENSE.  (a) A person commits an
   23-8  offense if the person:
   23-9              (1)  conducts a greyhound or horse race without a
  23-10  racetrack license; and
  23-11              (2)  knows or reasonably should know that another
  23-12  person is betting on the final or partial outcome of the race.
  23-13        (b)  An offense under this section is a felony of the third
  23-14  degree.
  23-15        Sec. 14.17.  FAILURE TO DISPLAY CREDENTIAL.  (a) A person
  23-16  commits an offense if the person intentionally or knowingly:
  23-17              (1)  fails or refuses to display a credential to
  23-18  another after a lawful request; or
  23-19              (2)  fails or refuses to give the person's name,
  23-20  residence address, or date of birth to another after a lawful
  23-21  request.
  23-22        (b)  In this section, "lawful request" means a request from
  23-23  the commission, an authorized agent of the commission, the director
  23-24  or a commissioned officer of the Texas Department of Public Safety,
  23-25  a peace officer, or a steward or judge at any time and any
  23-26  restricted location that:
  23-27              (1)  is on a racetrack facility; and
  23-28              (2)  is not a public place.
  23-29        (c)  Except as provided by Subsection (d) of this section, an
  23-30  offense under this section is a Class B misdemeanor.
  23-31        (d)  At the punishment stage of a trial for an offense under
  23-32  Subsection (a)(1) of this section the defendant may raise an issue
  23-33  as to whether the defendant was a license holder at the time of the
  23-34  offense. If the defendant proves the issue, the offense is a Class
  23-35  C misdemeanor.
  23-36        Sec. 14.18.  SEARCH AND SEIZURE.  (a) A person consents to a
  23-37  search at a time and location described in Subsection (b) of this
  23-38  section for a prohibited device, substance, or other contraband if
  23-39  the person:
  23-40              (1)  accepts a license or other credential issued under
  23-41  this Act; or
  23-42              (2)  enters a racetrack facility under the authority of
  23-43  a license or other credential alleged to have been issued under
  23-44  this Act.
  23-45        (b)  A search may be conducted by a commissioned officer of
  23-46  the Texas Department of Public Safety or a peace officer, including
  23-47  a peace officer employed by the commission, at any time and at any
  23-48  location that is on a racetrack facility, except a location:
  23-49              (1)  excluded by commission rule from searches under
  23-50  this section; or
  23-51              (2)  provided by an association under commission rule
  23-52  for private storage of personal items belonging to a license holder
  23-53  entering a racetrack facility.
  23-54        (c)  A person conducting a search under Subsection (b) of
  23-55  this section may seize any prohibited device, substance, or other
  23-56  contraband discovered during the search.
  23-57        Sec. 14.19.  PROSECUTION. A person who is subject to
  23-58  prosecution for a penal offense under this Act and another law may
  23-59  be prosecuted under either law.
  23-60        Sec. 14.20.  COMMISSION AUTHORITY. This article may not be
  23-61  construed to restrict the commission's administrative authority to
  23-62  enforce this Act or commission rules to the fullest extent
  23-63  authorized by this Act.
  23-64        SECTION 46.  Section 15.01, Texas Racing Act (Article 179e,
  23-65  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-66        Sec. 15.01.  GENERAL PENALTY.  If <With regard to any
  23-67  provision of this Act that is a penal offense, if> no specific
  23-68  penalty is provided for a provision of this Act that is a penal
  23-69  offense, a person who violates the <such a> provision commits a
  23-70  state jail felony <of the third degree>.
   24-1        SECTION 47.  Section 18.01(a), Texas Racing Act (Article
   24-2  179e, Vernon's Texas Civil Statutes), is amended to read as
   24-3  follows:
   24-4        (a)  The Texas Racing Commission is subject to Chapter 325,
   24-5  Government Code (Texas Sunset Act).  Unless continued in existence
   24-6  as provided by that chapter, and except as provided by Subsections
   24-7  (b) and (c) of this section, the commission is abolished and this
   24-8  Act expires September 1, 2001 <1995>.
   24-9        SECTION 48.  Article 18, Texas Racing Act (Article 179e,
  24-10  Vernon's Texas Civil Statutes), is amended by adding Section 18.08
  24-11  to read as follows:
  24-12        Sec. 18.08.  DISTANCE LEARNING.  The commission may provide
  24-13  assistance to members of the racing industry who are attempting to
  24-14  develop or implement adult or continuing education programs that
  24-15  use distance learning.
  24-16        SECTION 49.  Section 466.155(a), Government Code, is amended
  24-17  to read as follows:
  24-18        (a)  After a hearing, the director shall deny an application
  24-19  for a license or the commission <comptroller> shall suspend or
  24-20  revoke a license if the director or commission <comptroller>, as
  24-21  applicable, finds that the applicant or sales agent:
  24-22              (1)  is an individual who:
  24-23                    (A)  has been convicted of a felony, criminal
  24-24  fraud, gambling or a gambling-related offense, or a misdemeanor
  24-25  involving moral turpitude, if less than 10 years has elapsed since
  24-26  the termination of the sentence, parole, mandatory supervision, or
  24-27  probation served for the offense;
  24-28                    (B)  is or has been a professional gambler; <or>
  24-29                    (C)  is married to <or related in the first
  24-30  degree of consanguinity or affinity to> an individual:
  24-31                          (i)  described in Paragraph (A) or (B); or
  24-32                          (ii)  who is currently delinquent in the
  24-33  payment of any state tax;
  24-34                    (D)  is an officer or employee of the commission
  24-35  or a lottery operator; or
  24-36                    (E)  is a spouse, child, brother, sister, or
  24-37  parent residing as a member of the same household in the principal
  24-38  place of residence of a person described by Paragraph (D);
  24-39              (2)  is not an individual, and an individual described
  24-40  in Subdivision (1):
  24-41                    (A)  is an officer or director of the applicant
  24-42  or sales agent;
  24-43                    (B)  holds more than 10 percent of the stock in
  24-44  the applicant or sales agent;
  24-45                    (C)  holds an equitable interest greater than 10
  24-46  percent in the applicant or sales agent;
  24-47                    (D)  is a creditor of the applicant or sales
  24-48  agent who holds more than 10 percent of the applicant's or sales
  24-49  agent's outstanding debt;
  24-50                    (E)  is the owner or lessee of a business that
  24-51  the applicant or sales agent conducts or through which the
  24-52  applicant will conduct a ticket sales agency;
  24-53                    (F)  shares or will share in the profits, other
  24-54  than stock dividends, of the applicant or sales agent; or
  24-55                    (G)  participates in managing the affairs of the
  24-56  applicant or sales agent; <or>
  24-57                    <(H)  is an employee of the applicant or sales
  24-58  agent who is or will be involved in:>
  24-59                          <(i)  selling tickets; or>
  24-60                          <(ii)  handling money from the sale of
  24-61  tickets;>
  24-62              (3)  is currently delinquent in the payment of any
  24-63  state tax;
  24-64              (4)  is a person whose location for the sales agency
  24-65  is:
  24-66                    (A)  <a racetrack at which wagering is authorized
  24-67  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
  24-68  Statutes);>
  24-69                    <(B)>  a location licensed for games of bingo
  24-70  under the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
   25-1  Statutes);
   25-2                    (B) <(C)>  on land that is owned by:
   25-3                          (i)  this state; or
   25-4                          (ii)  a political subdivision of this
   25-5  state, other than land used as a mass transportation facility that
   25-6  is used by commercial carriers; or
   25-7                    (C) <(D)>  a location for which a person holds a
   25-8  wine and beer retailer's permit, mixed beverage permit, mixed
   25-9  beverage late hours permit, private club registration permit, or
  25-10  private club late hours permit issued under Chapter 25, 28, 29, 32,
  25-11  or 33, Alcoholic Beverage Code; or
  25-12              (5)  has violated this chapter or a rule adopted under
  25-13  this chapter.
  25-14        SECTION 50.  Section 481.172, Government Code, is amended to
  25-15  read as follows:
  25-16        Sec. 481.172.  Duties.  The department shall:
  25-17              (1)  promote and advertise within the United States and
  25-18  in foreign countries, by radio, television, newspaper, and other
  25-19  means considered appropriate, tourism in this state by non-Texans,
  25-20  including persons from foreign countries, and distribute
  25-21  promotional materials through appropriate agencies, including the
  25-22  United States Travel and Tourism Agency;
  25-23              (2)  encourage travel by Texans to this state's scenic,
  25-24  historical, natural, agricultural, educational, recreational, and
  25-25  other attractions;
  25-26              (3)  coordinate and stimulate orderly and accelerated
  25-27  development of tourist attractions throughout this state;
  25-28              (4)  conduct a public relations campaign to create a
  25-29  responsible and accurate national and international image of this
  25-30  state;
  25-31              (5)  cooperate fully with the Parks and Wildlife
  25-32  Department in all matters relating to promotion of tourism;
  25-33              (6)  cooperate with the State Highway and Public
  25-34  Transportation Commission in the administration of the commission's
  25-35  collateral program of highway map distribution and operation of
  25-36  travel information bureaus and other tourist-related functions of
  25-37  the commission; <and>
  25-38              (7)  encourage communities, organizations, and
  25-39  individuals in this state to cooperate with its program by their
  25-40  activities and use of their own funds and collaborate with those
  25-41  organizations and other governmental entities in the pursuit of the
  25-42  objectives of this subchapter; and
  25-43              (8)  promote and encourage the horse racing and
  25-44  greyhound racing industry, if funds are appropriated for the
  25-45  promotion or encouragement.
  25-46        SECTION 51.  Chapter 46, Penal Code, is amended by adding
  25-47  Section 46.115 to read as follows:
  25-48        Sec. 46.115.  EXEMPTION.  Sections 46.02 and 46.03 do not
  25-49  prohibit a peace officer from carrying a weapon at a racetrack at
  25-50  which wagering is authorized under the Texas Racing Act (Article
  25-51  179e, Vernon's Texas Civil Statutes), regardless of whether the
  25-52  officer is engaged in the actual discharge of the officer's duties
  25-53  while carrying the weapon.
  25-54        SECTION 52.  Sections 2.07, 3.01, 11.04(d), 15.02, and 18.02,
  25-55  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  25-56  repealed.
  25-57        SECTION 53.  (a)  This Act takes effect September 1, 1995.
  25-58        (b)  The changes in law made by this Act relating to the
  25-59  qualifications and appointment of members to the Texas Racing
  25-60  Commission do not affect the entitlement of a member of the
  25-61  commission serving immediately before the effective date of this
  25-62  Act to continue to serve on the commission for the term to which
  25-63  the member was appointed.  As the terms of members of the
  25-64  commission expire or as vacancies on the commission occur, the
  25-65  governor shall make appointments to the commission to achieve as
  25-66  soon as possible the membership plan prescribed for the commission
  25-67  by the Texas Racing Act (Article 179e, Vernon's Texas Civil
  25-68  Statutes), as amended by this Act.
  25-69        (c)  The Texas Racing Commission shall review all of the
  25-70  rules of the commission before January 1, 1998.  The commission,
   26-1  following the review, shall readopt, modify, or repeal the rules
   26-2  before January 1, 1998.  In reviewing the rules of the commission,
   26-3  the commission shall, to the extent feasible, attempt to have
   26-4  uniform approaches to the regulation of activities related to horse
   26-5  racing and greyhound racing.
   26-6        (d)  The authority for rulemaking and licensing and for any
   26-7  action relating exclusively to horse racing or exclusively to
   26-8  greyhound racing that was granted to a separate section of the
   26-9  Texas Racing Commission is transferred to the Texas Racing
  26-10  Commission.
  26-11        SECTION 54.  (a)  The changes in law made by this Act apply
  26-12  only to an offense committed on or after the effective date of this
  26-13  Act.  For purposes of this section, an offense is committed before
  26-14  the effective date of this Act if any element of the offense occurs
  26-15  before the effective date.
  26-16        (b)  An offense committed before the effective date of this
  26-17  Act is covered by the law in effect when the offense was committed,
  26-18  and the former law is continued in effect for this purpose.
  26-19        SECTION 55.  The importance of this legislation and the
  26-20  crowded condition of the calendars in both houses create an
  26-21  emergency and an imperative public necessity that the
  26-22  constitutional rule requiring bills to be read on three several
  26-23  days in each house be suspended, and this rule is hereby suspended.
  26-24                               * * * * *