By Armbrister                                          S.B. No. 367
       74R7315 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the continuation and functions of the Texas Racing
    1-3  Commission and to the transfer of certain commission functions to
    1-4  the Texas Department of Commerce.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 1.02, Texas Racing Act (Article 179e,
    1-7  Vernon's Texas Civil Statutes), is amended to read as follows:
    1-8        Sec. 1.02.  Purposes.  The purpose <purposes> of this Act is
    1-9  <are> to <encourage agriculture, the horse-breeding industry, the
   1-10  horse-training industry, the greyhound-breeding industry, tourism,
   1-11  and employment opportunities in this state related to horse racing
   1-12  and greyhound racing and to> provide for the strict regulation of
   1-13  horse racing and greyhound racing and the control of pari-mutuel
   1-14  wagering in connection with that racing.
   1-15        SECTION 2.  Section 1.03, Texas Racing Act (Article 179e,
   1-16  Vernon's Texas Civil Statutes), is amended by adding Subdivision
   1-17  (67) to read as follows:
   1-18              (67)  "Racetrack facility" means a facility operated by
   1-19  an association within its enclosure for the purpose of presenting
   1-20  races for pari-mutuel wagering.
   1-21        SECTION 3.  Section 2.02, Texas Racing Act (Article 179e,
   1-22  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-23        Sec. 2.02.  Membership.  (a)  The commission consists of six
   1-24  members appointed by the governor with the advice and consent of
    2-1  the senate and two ex officio members who shall have the right to
    2-2  vote.  The ex officio members are the chairman of the Public Safety
    2-3  Commission and the comptroller of public accounts.  <In making
    2-4  appointments to the commission, the governor shall strive to
    2-5  achieve representation by all the population groups of the state
    2-6  with regard to economic status, sex, race, and ethnicity.>
    2-7        (b)  Appointments to the commission shall be made without
    2-8  regard to the race, color, disability, sex, religion, age, or
    2-9  national origin of the appointees.  <One appointed member must be a
   2-10  veterinarian licensed to practice in this state who specializes in
   2-11  the treatment of small animals.  One appointed member must be a
   2-12  veterinarian licensed to practice in this state who specializes in
   2-13  the treatment of large animals.  Two appointed members must be
   2-14  individuals who are not veterinarians and who have special
   2-15  knowledge or experience related to greyhound racing.  Two appointed
   2-16  members must be individuals who are not veterinarians and who have
   2-17  special knowledge or experience related to horse racing.>
   2-18        <(c)  In making appointments to the commission, the governor
   2-19  shall attempt to reflect the minority groups found in the state's
   2-20  general populace.>
   2-21        SECTION 4.  Section 2.03, Texas Racing Act (Article 179e,
   2-22  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-23        Sec. 2.03.  Term of office.  (a)  Appointed <Except for the
   2-24  initial appointments, appointed> members hold office for staggered
   2-25  terms of six years with two members' terms expiring February 1 of
   2-26  each odd-numbered year.  A member holds office until that member's
   2-27  successor is appointed and qualifies.
    3-1        (b)  <In making the initial appointments, the governor shall
    3-2  designate two appointed members for a term expiring February 1,
    3-3  1989, two for a term expiring February 1, 1991, and two for a term
    3-4  expiring February 1, 1993.  The governor shall make the initial
    3-5  appointments on or before February 1, 1987.>
    3-6        <(c)>  The ex officio members hold office on the commission
    3-7  for the time for which they hold their other offices.
    3-8        SECTION 5.  Section 2.05, Texas Racing Act (Article 179e,
    3-9  Vernon's Texas Civil Statutes), is amended to read as follows:
   3-10        Sec. 2.05.  Eligibility.  (a)  The appointed members of the
   3-11  commission must be representatives of the general public and have
   3-12  general knowledge of business or agribusiness.  A person is not
   3-13  eligible for appointment as a public member of the commission if
   3-14  the person or the person's spouse:
   3-15              (1)  is licensed by the commission, except as a
   3-16  commissioner;
   3-17              (2)  is employed by the commission or participates in
   3-18  the management of a business entity or other organization regulated
   3-19  by the commission or receiving funds from or through the
   3-20  commission;
   3-21              (3)  owns or controls, directly or indirectly, more
   3-22  than a 10 percent interest in a business entity or other
   3-23  organization regulated by the commission or receiving funds from or
   3-24  through the commission; or
   3-25              (4)  uses or receives a substantial amount of tangible
   3-26  goods, services, or funds from or through the commission, other
   3-27  than compensation or reimbursement authorized by law for commission
    4-1  membership, attendance, or expenses.
    4-2        (b)  In addition to the eligibility requirements of
    4-3  Subsection (a), a <A> person is not eligible to be an appointed
    4-4  member of the commission if that person owns any financial interest
    4-5  in a racetrack or its operation or if that person is related within
    4-6  the second degree by affinity or the third degree by consanguinity,
    4-7  as determined under Subchapter B, Chapter 573, Government Code
    4-8  <Article 5996h, Revised Statutes>, to a person who owns any
    4-9  financial interest in a racetrack or its operation.
   4-10        (c)  Each person appointed to or employed by the commission
   4-11  is subject to all background checks and qualification criteria
   4-12  required to hold a racetrack license or other license under this
   4-13  Act.
   4-14        (d)  A person who has been convicted of a felony or of any
   4-15  crime involving moral turpitude is not eligible for appointment to
   4-16  the commission.
   4-17        SECTION 6.  Article 2, Texas Racing Act (Article 179e,
   4-18  Vernon's Texas Civil Statutes), is amended by adding Sections
   4-19  2.071-2.074 to read as follows:
   4-20        Sec. 2.071.  CONFLICT OF INTEREST.  (a)  An officer,
   4-21  employee, or paid consultant of a Texas trade association in the
   4-22  field of horse or greyhound racing or breeding may not be a member
   4-23  of the commission or employee of the commission who is exempt from
   4-24  the state's position classification plan or is compensated at or
   4-25  above the amount prescribed by the General Appropriations Act for
   4-26  step 1, salary group 12, of the position classification salary
   4-27  schedule.
    5-1        (b)  A person who is the spouse of an officer, manager, or
    5-2  paid consultant of such a Texas trade association may not be a
    5-3  member of the commission and may not be an employee of the
    5-4  commission who is exempt from the state's position classification
    5-5  plan or is compensated at or above the amount prescribed by the
    5-6  General Appropriations Act for step 1, salary group 12, of the
    5-7  position classification salary schedule.
    5-8        (c)  For the purposes of this section, a Texas trade
    5-9  association is a nonprofit, cooperative, and voluntarily joined
   5-10  association of business or professional competitors in this state
   5-11  designed to assist its members and its industry or profession in
   5-12  dealing with mutual business or professional problems and in
   5-13  promoting their common interest.
   5-14        Sec. 2.072.  LOBBYIST RESTRICTION.  A person may not serve as
   5-15  a member of the commission or act as the general counsel to the
   5-16  commission if the person is required to register as a lobbyist
   5-17  under Chapter 305, Government Code, because of the person's
   5-18  activities for compensation on behalf of a profession related to
   5-19  the operation of the commission.
   5-20        Sec. 2.073.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
   5-21  removal from the commission if a member:
   5-22              (1)  does not have at the time of appointment the
   5-23  qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
   5-24              (2)  does not maintain during service on the commission
   5-25  the qualifications required by Section 2.02 or 2.05 of this Act;
   5-26              (3)  violates a prohibition established by Section
   5-27  2.05, 2.07, 2.071, or 2.072 of this Act;
    6-1              (4)  cannot because of illness or disability discharge
    6-2  the member's duties for a substantial part of the term for which
    6-3  the member is appointed; or
    6-4              (5)  is absent from more than half of the regularly
    6-5  scheduled commission meetings that the member is eligible to attend
    6-6  during a calendar year unless the absence is excused by majority
    6-7  vote of the commission.
    6-8        (b)  The validity of an action of the commission is not
    6-9  affected by the fact that it is taken when a ground for removal of
   6-10  a commission member exists.
   6-11        (c)  If the executive secretary has knowledge that a
   6-12  potential ground for removal exists, the executive secretary shall
   6-13  notify the presiding officer of the commission of the potential
   6-14  ground.  The presiding officer shall then notify the governor and
   6-15  the attorney general that a potential ground for removal exists.
   6-16  If the potential ground for removal involves the presiding officer,
   6-17  the executive secretary shall notify the next highest officer of
   6-18  the commission, who shall notify the governor and the attorney
   6-19  general that a potential ground for removal exists.
   6-20        Sec. 2.074.  MEMBER TRAINING.  (a)  Before a member of the
   6-21  commission may assume the member's duties and before the member may
   6-22  be confirmed by the senate, the member must complete at least one
   6-23  course of the training program established by the commission under
   6-24  this section.
   6-25        (b)  A training program established under this section shall
   6-26  provide information to the member regarding:
   6-27              (1)  the enabling legislation that created the
    7-1  commission;
    7-2              (2)  the programs operated by the agency;
    7-3              (3)  the role and functions of the agency;
    7-4              (4)  the rules of the agency with an emphasis on the
    7-5  rules that relate to disciplinary and investigatory authority;
    7-6              (5)  the current budget for the agency;
    7-7              (6)  the results of the most recent formal audit of the
    7-8  agency;
    7-9              (7)  the requirements of the:
   7-10                    (A)  open meetings law, Chapter 551, Government
   7-11  Code;
   7-12                    (B)  open records law, Chapter 552, Government
   7-13  Code; and
   7-14                    (C)  administrative procedure law, Chapter 2001,
   7-15  Government Code;
   7-16              (8)  the requirements of the conflict of interest laws
   7-17  and other laws relating to public officials; and
   7-18              (9)  any applicable ethics policies adopted by the
   7-19  agency or the Texas Ethics Commission.
   7-20        SECTION 7.  Section 2.10, Texas Racing Act (Article 179e,
   7-21  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-22        Sec. 2.10.  PRESIDING OFFICER <CHAIRMAN>.  The governor shall
   7-23  designate a <one> member of the commission as the presiding officer
   7-24  <chairman> of the commission to serve in that capacity at the
   7-25  pleasure of the governor.
   7-26        SECTION 8.  Section 2.11, Texas Racing Act (Article 179e,
   7-27  Vernon's Texas Civil Statutes), is amended by amending Subsection
    8-1  (b) and adding Subsection (d) to read as follows:
    8-2        (b)  A majority of the commission constitutes a quorum.  <A
    8-3  majority of a section of the commission constitutes a quorum for
    8-4  purposes of conducting business related to matters under the
    8-5  exclusive jurisdiction of that section.>
    8-6        (d)  The commission shall, by rule, develop and implement
    8-7  policies that provide the public with a reasonable opportunity to
    8-8  appear before the commission and to speak on any issue under the
    8-9  jurisdiction of the commission.
   8-10        SECTION 9.  Article 2, Texas Racing Act (Article 179e,
   8-11  Vernon's Texas Civil Statutes), is amended by adding Sections
   8-12  2.17-2.25 to read as follows:
   8-13        Sec. 2.17.  OPEN MEETINGS; ADMINISTRATIVE PROCEDURE.  The
   8-14  commission is subject to the open meetings law, Chapter 551,
   8-15  Government Code, and the administrative procedure law, Chapter
   8-16  2001, Government Code.
   8-17        Sec. 2.18.  ANNUAL ACCOUNTING.  The commission shall prepare
   8-18  annually a complete and detailed written report accounting for all
   8-19  funds received and disbursed by the commission during the preceding
   8-20  fiscal year.  The annual report must meet the reporting
   8-21  requirements applicable to financial reporting provided in the
   8-22  General Appropriations Act.
   8-23        Sec. 2.19.  FUNDS PAID TO COMMISSION.  All money paid to the
   8-24  commission under this Act is subject to Subchapter F, Chapter 404,
   8-25  Government Code.
   8-26        Sec. 2.20.  EMPLOYMENT PRACTICES.  (a)  The executive
   8-27  secretary or the executive secretary's designee shall develop an
    9-1  intra-agency career ladder program that addresses opportunities for
    9-2  mobility and advancement for employees within the commission.  The
    9-3  program shall require intra-agency posting of all positions
    9-4  concurrently with any public posting.
    9-5        (b)  The executive secretary or the executive secretary's
    9-6  designee shall develop a system of annual performance evaluations
    9-7  that are based on documented employee performance.  All merit pay
    9-8  for commission employees must be based on the system established
    9-9  under this subsection.
   9-10        (c)  The executive secretary or the executive secretary's
   9-11  designee shall prepare and maintain a written policy statement to
   9-12  assure implementation of a program of equal employment opportunity
   9-13  under which all personnel transactions are made without regard to
   9-14  race, color, disability, sex, religion, age, or national origin.
   9-15  The policy statement must include:
   9-16              (1)  personnel policies, including policies relating to
   9-17  recruitment, evaluation, selection, appointment, training, and
   9-18  promotion of personnel that are in compliance with the requirements
   9-19  of Chapter 21, Labor Code;
   9-20              (2)  a comprehensive analysis of the commission
   9-21  workforce that meets federal and state guidelines;
   9-22              (3)  procedures by which a determination can be made
   9-23  about the extent of underuse in the commission workforce of all
   9-24  persons for whom federal or state guidelines encourage a more
   9-25  equitable balance; and
   9-26              (4)  reasonable methods to appropriately address those
   9-27  areas of underuse.
   10-1        (d)  A policy statement prepared under Subsection (c) of this
   10-2  section must cover an annual period, be updated annually and
   10-3  reviewed by the Texas Commission on Human Rights for compliance
   10-4  with Subsection (c)(1) of this section, and be filed with the
   10-5  governor's office.
   10-6        (e)  The governor's office shall deliver a biennial report to
   10-7  the legislature based on the information received under Subsection
   10-8  (d) of this section.  The report may be made separately or as a
   10-9  part of other biennial reports made to the legislature.
  10-10        Sec. 2.21.  STANDARDS OF CONDUCT.  The executive secretary or
  10-11  the executive secretary's designee shall provide to members of the
  10-12  commission and to agency employees, as often as necessary,
  10-13  information regarding their qualification for office or employment
  10-14  under this Act and their responsibilities under applicable laws
  10-15  relating to standards of conduct for state officers or employees.
  10-16        Sec. 2.22.  DIVISION OF RESPONSIBILITY.  The commission
  10-17  shall, by rule, develop and implement policies that clearly
  10-18  separate the policymaking responsibilities of the commission and
  10-19  the management responsibilities of the executive secretary and the
  10-20  staff of the commission.
  10-21        Sec. 2.23.  PROGRAM AND FACILITY ACCESSIBILITY.  The
  10-22  commission shall comply with federal and state laws related to
  10-23  program and facility accessibility.  The executive secretary shall
  10-24  also prepare and maintain a written plan that describes how a
  10-25  person who does not speak English can be provided reasonable access
  10-26  to the commission's programs and services.
  10-27        Sec. 2.24.  INFORMATION TO PUBLIC.  (a)  The commission shall
   11-1  prepare information of public interest describing the functions of
   11-2  the commission and the procedures by which complaints are filed
   11-3  with and resolved by the commission.  The commission shall make the
   11-4  information available to the public and appropriate state agencies.
   11-5        (b)  The commission by rule shall establish methods by which
   11-6  racetrack patrons are notified of the name, mailing address, and
   11-7  telephone number of the commission for the purpose of directing
   11-8  complaints to the commission.  The commission may provide for that
   11-9  notification:
  11-10              (1)  on every race performance program provided by each
  11-11  racetrack association; or
  11-12              (2)  on signs prominently displayed in the common
  11-13  public areas on the premises of each racetrack association.
  11-14        Sec. 2.25.  COMPLAINT HANDLING.  (a)  The commission shall
  11-15  keep information about each complaint filed with the commission.
  11-16  The information shall include:
  11-17              (1)  the date the complaint is received;
  11-18              (2)  the name of the complainant;
  11-19              (3)  the subject matter of the complaint;
  11-20              (4)  a record of all persons contacted in relation to
  11-21  the complaint;
  11-22              (5)  a summary of the results of the review or
  11-23  investigation of the complaint; and
  11-24              (6)  for complaints for which the agency took no
  11-25  action, an explanation of the reason the complaint was closed
  11-26  without action.
  11-27        (b)  The commission shall keep a file about each written
   12-1  complaint filed with the commission that the agency has authority
   12-2  to resolve.  The commission shall provide to the person filing the
   12-3  complaint and the persons or entities complained about the
   12-4  commission's policies and procedures pertaining to complaint
   12-5  investigation and resolution.  The commission, at least quarterly
   12-6  and until final disposition of the complaint, shall notify the
   12-7  person filing the complaint and the persons or entities complained
   12-8  about of the status of the complaint unless the notice would
   12-9  jeopardize an undercover investigation.
  12-10        SECTION 10.  Section 3.02, Texas Racing Act (Article 179e,
  12-11  Vernon's Texas Civil Statutes), is amended to read as follows:
  12-12        Sec. 3.02.  Regulation and supervision.  The <In accordance
  12-13  with Section 3.01 of this Act, the> commission shall regulate and
  12-14  supervise every race meeting in this state involving wagering on
  12-15  the result of greyhound or horse racing.  All persons and things
  12-16  relating to the operation of those meetings are subject to
  12-17  regulation and supervision by the commission.  The commission shall
  12-18  adopt rules for conducting greyhound or horse racing in this state
  12-19  involving wagering and shall adopt other rules to administer this
  12-20  Act that are consistent with this Act.  The commission shall also
  12-21  make rules, issue licenses, and take any other necessary action
  12-22  relating exclusively to horse racing or to greyhound racing.
  12-23        SECTION 11.  Section 3.021, Texas Racing Act (Article 179e,
  12-24  Vernon's Texas Civil Statutes), is amended by amending Subsection
  12-25  (b) and adding Subsection (d) to read as follows:
  12-26        (b)  To protect the health, safety, and welfare of race
  12-27  animals and participants in racing, to safeguard the interest of
   13-1  the general public, and to promote the orderly <growth and> conduct
   13-2  of racing within the state, the commission may adopt rules for the
   13-3  licensing and regulation of races and workouts at racetracks that
   13-4  do not offer pari-mutuel wagering and for workouts at training
   13-5  facilities to secure past performances and workouts.
   13-6        (d)  The commission may not adopt rules restricting
   13-7  competitive bidding or advertising by a licensee except to prohibit
   13-8  false, misleading, or deceptive practices.  In its rules to
   13-9  prohibit false, misleading, or deceptive practices, the commission
  13-10  may not include a rule that:
  13-11              (1)  restricts the use of any medium for advertising;
  13-12              (2)  restricts the use of a licensee's personal
  13-13  appearance or voice in an advertisement;
  13-14              (3)  relates to the size or duration of an
  13-15  advertisement by the licensee; or
  13-16              (4)  restricts the licensee's advertisement under a
  13-17  trade name.
  13-18        SECTION 12.  Section 3.07(a), Texas Racing Act (Article 179e,
  13-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  13-20        (a)  The commission shall employ all of the judges and all of
  13-21  the stewards for the supervision of a horse race or greyhound race
  13-22  meeting.  Each horse race or greyhound race meeting shall be
  13-23  supervised by three stewards <approved by the commission> for horse
  13-24  racing or by three judges <approved by the commission> for
  13-25  greyhound racing.  The commission shall designate one of the
  13-26  stewards or judges as the presiding steward or judge for each race
  13-27  meeting.  <The commission shall employ one of the stewards who
   14-1  supervises a horse race meeting who shall be the presiding steward.
   14-2  The other stewards at the race meeting shall be compensated by the
   14-3  association.  The commission shall employ one of the judges who
   14-4  supervises a greyhound race meeting who shall be the presiding
   14-5  judge; the other judges at such a race meeting shall be compensated
   14-6  by the association.>  For each race meeting, the commission shall
   14-7  employ <appoint> at least one state veterinarian <who shall be
   14-8  compensated by the commission>. <The commission by rule shall
   14-9  determine the amount of compensation for stewards, judges, and
  14-10  state veterinarians who are required to be compensated by the
  14-11  commission.>  The commission may, by rule, impose a fee on an
  14-12  association to offset the costs of compensating the <racetrack>
  14-13  stewards, judges, and state veterinarians <for that association>.
  14-14  The amount of the fee for the compensation of stewards, judges, and
  14-15  state veterinarians must be reasonable according to industry
  14-16  standards for the compensation of those officials at other
  14-17  racetracks and may not exceed the actual cost to the commission for
  14-18  compensating the officials.  All other racetrack officials shall be
  14-19  appointed by the association, with the approval of the commission.
  14-20  Compensation for those officials not compensated by the commission
  14-21  shall be determined by the association.
  14-22        SECTION 13.  Section 3.08(a), Texas Racing Act (Article 179e,
  14-23  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-24        (a)  Except as provided by Subsection (b) of this section, a
  14-25  final decision of the stewards or judges may be appealed to the
  14-26  commission in the manner provided for a contested case under
  14-27  Chapter 2001, Government Code <the Administrative Procedure and
   15-1  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
   15-2  Statutes)>.
   15-3        SECTION 14.  Article 3, Texas Racing Act (Article 179e,
   15-4  Vernon's Texas Civil Statutes), is amended by adding Sections
   15-5  3.13-3.15 to read as follows:
   15-6        Sec. 3.13.  RECOGNITION OF ORGANIZATION.  (a)  The commission
   15-7  by rule shall adopt criteria to recognize an organization to
   15-8  represent members of a segment of the racing industry, including
   15-9  owners, breeders, trainers, kennel operators, or other persons
  15-10  involved in the racing industry, in any interaction between the
  15-11  members of the organization and a racetrack facility or the
  15-12  commission.
  15-13        (b)  The commission may recognize an organization that meets
  15-14  the requirements of Subsection (a) of this section.
  15-15        Sec. 3.14.  DISCIPLINARY ACTIONS.  The commission shall
  15-16  revoke, suspend, or refuse to renew a license, place on probation a
  15-17  person whose license has been suspended, or reprimand a licensee
  15-18  for a violation of this Act or a rule of the commission.  If a
  15-19  license suspension is probated, the commission may require the
  15-20  licensee to report regularly to the commission on matters that are
  15-21  the basis of the probation.
  15-22        Sec. 3.15.  HEARING REQUIREMENTS.  If the commission proposes
  15-23  to suspend, revoke, or refuse to renew a person's license, the
  15-24  person is entitled to a hearing conducted by the State Office of
  15-25  Administrative Hearings.  Proceedings for a disciplinary action,
  15-26  other than those conducted by racing stewards or judges, are
  15-27  governed by the administrative procedure law, Chapter 2001,
   16-1  Government Code.  Rules of practice adopted by the commission under
   16-2  Section 2001.004, Government Code, applicable to the proceedings
   16-3  for a disciplinary action, other than those conducted by racing
   16-4  stewards or judges, may not conflict with rules adopted by the
   16-5  State Office of Administrative Hearings.
   16-6        SECTION 15.  Article 5, Texas Racing Act (Article 179e,
   16-7  Vernon's Texas Civil Statutes), is amended by adding Section 5.05
   16-8  to read as follows:
   16-9        Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The
  16-10  commission shall, in determining the amount of a license fee, set
  16-11  the fee in an amount that will cover, at least, the cost of
  16-12  conducting a criminal history check on the applicant for a license.
  16-13        (b)  The commission shall reimburse the Department of Public
  16-14  Safety for the cost of conducting a criminal history check under
  16-15  this article.
  16-16        SECTION 16.  Section 6.04(a), Texas Racing Act (Article 179e,
  16-17  Vernon's Texas Civil Statutes), is amended to read as follows:
  16-18        (a)  The commission may issue a racetrack license to a
  16-19  qualified person if it finds that the conduct of race meetings at
  16-20  the proposed track and location will be in the public interest,
  16-21  complies with all zoning laws, and complies with this Act and the
  16-22  rules adopted by the commission and if the commission finds by
  16-23  clear and convincing evidence that the applicant will comply with
  16-24  all criminal laws of this state.  In determining whether to grant
  16-25  or deny an application for any class of racetrack license, the
  16-26  commission may consider <the degree to which any of> the following
  16-27  factors <regarding the applicant's racetrack or proposed race
   17-1  meeting serve to nurture, promote, develop, or improve the horse or
   17-2  greyhound industry in this state>:
   17-3              (1)  the applicant's financial stability;
   17-4              (2)  the applicant's resources for supplementing the
   17-5  purses for races for various breeds;
   17-6              (3)  the location of the proposed track;
   17-7              (4)  the effect of the proposed track on traffic flow;
   17-8              (5)  facilities for patrons and occupational licensees;
   17-9              (6)  facilities for race animals;
  17-10              (7)  availability to the track of support services and
  17-11  emergency services;
  17-12              (8)  the experience of the applicant's employees;
  17-13              (9)  the potential for conflict with other licensed
  17-14  race meetings;
  17-15              (10)  the anticipated effect of the race meeting on the
  17-16  greyhound or horse breeding industry in this state; and
  17-17              (11)  the anticipated effect of the race meeting on the
  17-18  state and local economy from tourism, increased employment, and
  17-19  other sources.
  17-20        SECTION 17.  Sections 6.06(e) and (f), Texas Racing Act
  17-21  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  17-22  as follows:
  17-23        (e)  The <appropriate section of the> commission may
  17-24  condition the issuance of a license under this article on the
  17-25  observance of its rules.  The commission may amend the rules at any
  17-26  time and may condition the continued holding of the license on
  17-27  compliance with the rules as amended.
   18-1        (f)  The <appropriate section of the> commission may refuse
   18-2  to issue a license or may suspend or revoke a license of a licensee
   18-3  under this article who knowingly or intentionally allows access to
   18-4  an enclosure where greyhound races or horse races are conducted to
   18-5  a person who has engaged in bookmaking, touting, or illegal
   18-6  wagering, whose income is from illegal activities or enterprises,
   18-7  or who has been convicted of a violation of this Act.
   18-8        SECTION 18.  Article 6, Texas Racing Act (Article 179e,
   18-9  Vernon's Texas Civil Statutes), is amended by adding Sections 6.061
  18-10  and 6.062 to read as follows:
  18-11        Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE
  18-12  CONDITIONS.  (a)  The commission shall adopt rules implementing
  18-13  this section, including rules:
  18-14              (1)  requiring the report of and correction of:
  18-15                    (A)  an inappropriate condition on the premises
  18-16  of a racetrack facility, including a failure to improperly maintain
  18-17  the facility, that interferes with the administration of this Act;
  18-18  or
  18-19                    (B)  a condition on the premises of a racetrack
  18-20  facility that makes the facility unsafe for a race participant,
  18-21  patron, or animal; and
  18-22              (2)  determining the methods and manner in which the
  18-23  executive secretary may determine and remedy inappropriate
  18-24  conditions or unsafe facilities on the premises of a racetrack
  18-25  facility, including the methods and manner in which the executive
  18-26  secretary may conduct inspections of the racetrack facility and
  18-27  remedy emergency situations.
   19-1        (b)  The executive secretary shall issue a notice of
   19-2  violation to a racetrack facility on a finding that an
   19-3  inappropriate or unsafe condition exists.
   19-4        (c)  If the executive secretary determines that an
   19-5  inappropriate or unsafe condition exists at the racetrack facility,
   19-6  the executive secretary shall order the racetrack facility to take
   19-7  action within a specified period to remedy the inappropriate
   19-8  condition or unsafe condition.  In determining the period for
   19-9  compliance, the executive secretary shall consider the nature and
  19-10  severity of the problem and the threat to the health, safety, and
  19-11  welfare of the race participants, patrons, or animals.
  19-12        (d)  The commission shall adopt rules requiring the reporting
  19-13  of any corrective action taken by a racetrack facility in response
  19-14  to an order of the executive secretary under Subsection (c) of this
  19-15  section.
  19-16        (e)  If a racetrack facility fails to take any action as
  19-17  required under Subsection (c) of this section, the executive
  19-18  secretary shall initiate an enforcement action against the
  19-19  racetrack facility.  The executive secretary may rescind any live
  19-20  or simulcast race date of any racetrack association that does not
  19-21  take corrective action within the period set by the executive
  19-22  secretary.
  19-23        (f)  The commission shall adopt rules relating to the
  19-24  commission's review of an action taken under this section by the
  19-25  executive secretary.  A  review procedure adopted under this
  19-26  subsection must be consistent with Chapter 2001, Government Code.
  19-27        Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The
   20-1  commission shall adopt a method of supervising and approving the
   20-2  construction, renovation, or maintenance of any building or
   20-3  improvement on the premises of a racetrack facility.
   20-4        (b)  The commission shall adopt rules relating to:
   20-5              (1)  the approval of plans and specifications;
   20-6              (2)  the contents of plans and specifications;
   20-7              (3)  the maintenance of records to ensure compliance
   20-8  with approved plans and specifications;
   20-9              (4)  the content and filing of construction progress
  20-10  reports by the racetrack facility to the commission;
  20-11              (5)  the inspection by the commission or others;
  20-12              (6)  the method for making a change or amendment to an
  20-13  approved plan or specification; and
  20-14              (7)  any other method of supervision or oversight
  20-15  necessary.
  20-16        (c)  If the commission has grounds to believe that an
  20-17  association has failed to comply with the requirements of this
  20-18  section, a representative of the association shall appear before
  20-19  the commission, at a public hearing, to consider the issue of
  20-20  compliance with the rules adopted under this section.
  20-21        (d)  Before a building or improvement may be used by the
  20-22  association, the commission shall determine whether the
  20-23  construction, renovation, or maintenance of the building or
  20-24  improvement was completed in accordance with the approved plans and
  20-25  specifications and whether other requirements of the commission
  20-26  were met.
  20-27        (e)  If the commission determines that the association failed
   21-1  to comply with a requirement of this section or rule adopted under
   21-2  this section, the commission shall initiate an enforcement action
   21-3  against the association.  In addition to any other authorized
   21-4  enforcement action, the commission may rescind any live or
   21-5  simulcast race date of any association that has failed to comply
   21-6  with the requirement of this section.
   21-7        SECTION 19.  Article 6, Texas Racing Act (Article 179e,
   21-8  Vernon's Texas Civil Statutes), is amended by adding Section 6.092
   21-9  to read as follows:
  21-10        Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY
  21-11  PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,
  21-12  monitoring, and auditing requirements or other appropriate
  21-13  performance measures for any organization that receives funds
  21-14  generated by live or simulcast pari-mutuel racing.
  21-15        (b)  The commission shall adopt the requirements or
  21-16  performance measures after consultation with the affected
  21-17  organization.  In adopting the rules, the commission shall give
  21-18  consideration to the concerns of the affected organization.
  21-19        (c)  An independent audit shall be conducted annually of an
  21-20  organization receiving funds generated by live or simulcast
  21-21  pari-mutuel racing.  A copy of the report shall be sent to the
  21-22  commission.  The audit shall include a verification of any
  21-23  performance report sent to or required by the commission.
  21-24        (d)  The commission may review any records or books of an
  21-25  organization that submits an independent audit to the commission as
  21-26  the commission determines necessary to confirm or further
  21-27  investigate the findings of an audit or report.
   22-1        (e)  The commission by rule may suspend or withhold funds
   22-2  from an organization that:
   22-3              (1)  it determines has failed to comply with the
   22-4  requirements or performance measures adopted under Subsection (a)
   22-5  of this section; or
   22-6              (2)  has, following an independent audit or other
   22-7  report to the commission, material questions raised on the use of
   22-8  funds by the organization.
   22-9        (f)  This section does not apply to the Texas Commission on
  22-10  Alcohol and Drug Abuse.
  22-11        SECTION 20.  Section 7.02, Texas Racing Act (Article 179e,
  22-12  Vernon's Texas Civil Statutes), is amended by adding Subsections
  22-13  (c) and (d) to read as follows:
  22-14        (c)  If an examination is required for the issuance of a
  22-15  license under this article, not later than the 30th day after the
  22-16  day on which a licensing examination is administered under this
  22-17  Act, the commission shall notify each examinee of the results of
  22-18  the examination.
  22-19        (d)  If requested in writing by a person who fails a
  22-20  licensing examination administered under this Act, the commission
  22-21  shall furnish the person with an analysis of the person's
  22-22  performance on the examination.
  22-23        SECTION 21.  Section 7.05, Texas Racing Act (Article 179e,
  22-24  Vernon's Texas Civil Statutes), is amended to read as follows:
  22-25        Sec. 7.05.  License fees.  (a)  The commission shall adopt by
  22-26  rule a fee schedule for licenses issued under this article.
  22-27        (b)  The commission shall base the license fees on the
   23-1  relative or comparative incomes or property interests of the
   23-2  various categories of licensees, with the lower income category of
   23-3  licensees being charged nearer the minimum fee and the higher
   23-4  income category of licensees charged nearer the maximum fee.
   23-5        (c)  In setting the fee schedule under Subsection (a) of this
   23-6  section, the commission shall include the cost of criminal history
   23-7  checks determined under Section 5.05 of this Act.  The commission
   23-8  may determine the best method for recouping this cost and complying
   23-9  with the other provisions of this section, including collecting the
  23-10  costs over an extended period.
  23-11        SECTION 22.  Section 7.07, Texas Racing Act (Article 179e,
  23-12  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-13        Sec. 7.07.  Term of license.  (a)  A license issued under
  23-14  this article is valid for a period set by the commission not to
  23-15  exceed 36 months following the date of its issuance.  It is
  23-16  renewable on application and payment of the fee in accordance with
  23-17  the rules of the commission.
  23-18        (b)  The commission by rule may adopt a system under which
  23-19  licenses expire on various dates during the year.  For the year in
  23-20  which the license expiration date is changed, license fees shall be
  23-21  prorated on a monthly basis so that each licensee pays only that
  23-22  portion of the license fee that is allocable to the number of
  23-23  months during which the license is valid.  On renewal of the
  23-24  license on the new expiration date, the total license renewal fee
  23-25  is payable.
  23-26        SECTION 23.  Article 7, Texas Racing Act (Article 179e,
  23-27  Vernon's Texas Civil Statutes), is amended by adding Section 7.10
   24-1  to read as follows:
   24-2        Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
   24-3  (a)  The commission may waive any prerequisite to obtaining a
   24-4  license for an applicant after reviewing the applicant's
   24-5  credentials and determining that the applicant holds a valid
   24-6  license from another state that has license requirements
   24-7  substantially equivalent to those of this state.
   24-8        (b)  The commission may waive any prerequisite to obtaining a
   24-9  license for an applicant with a valid license from another state
  24-10  with which the State of Texas has a reciprocity agreement.  The
  24-11  commission may enter into reciprocal agreements with other states
  24-12  to allow for licensing by reciprocity.
  24-13        SECTION 24.  Section 9.01, Texas Racing Act (Article 179e,
  24-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  24-15        Sec. 9.01.  Texas-bred horses.  Subject to this Act and any
  24-16  rule of the commission, the <The> state horse breed registries
  24-17  shall make reasonable rules to establish the qualifications of
  24-18  accredited Texas-bred horses to promote, develop, and improve the
  24-19  breeding of horses in this state.  Rules adopted by a registry are
  24-20  subject to commission approval.
  24-21        SECTION 25.  Section 10.04, Texas Racing Act (Article 179e,
  24-22  Vernon's Texas Civil Statutes), is amended to read as follows:
  24-23        Sec. 10.04.  Texas-bred greyhounds.  Subject to this Act or
  24-24  any rule of the commission, the <The> state greyhound breed
  24-25  registry shall make reasonable rules to establish the
  24-26  qualifications of accredited Texas-bred greyhounds to promote,
  24-27  develop, and improve the breeding of greyhounds in this state.
   25-1  Rules adopted by the registry are subject to commission approval.
   25-2        SECTION 26.  Section 11.04(c), Texas Racing Act (Article
   25-3  179e, Vernon's Texas Civil Statutes), is amended to read as
   25-4  follows:
   25-5        (c)  The commission shall adopt rules prohibiting an
   25-6  association from accepting a wager made on credit and shall adopt
   25-7  rules prohibiting automatic banking machines within the enclosure.
   25-8  The commission shall prohibit patrons from using automated methods
   25-9  for obtaining additional money while the patrons are on the
  25-10  premises of the racetrack facility.
  25-11        SECTION 27.  Section 18.01(a), Texas Racing Act (Article
  25-12  179e, Vernon's Texas Civil Statutes), is amended to read as
  25-13  follows:
  25-14        (a)  The Texas Racing Commission is subject to Chapter 325,
  25-15  Government Code (Texas Sunset Act).  Unless continued in existence
  25-16  as provided by that chapter, and except as provided by Subsections
  25-17  (b) and (c) of this section, the commission is abolished and this
  25-18  Act expires September 1, 2001 <1995>.
  25-19        SECTION 28.  Section 481.172, Government Code, is amended to
  25-20  read as follows:
  25-21        Sec. 481.172.  Duties.  The department shall:
  25-22              (1)  promote and advertise within the United States and
  25-23  in foreign countries, by radio, television, newspaper, and other
  25-24  means considered appropriate, tourism in this state by non-Texans,
  25-25  including persons from foreign countries, and distribute
  25-26  promotional materials through appropriate agencies, including the
  25-27  United States Travel and Tourism Agency;
   26-1              (2)  encourage travel by Texans to this state's scenic,
   26-2  historical, natural, agricultural, educational, recreational, and
   26-3  other attractions;
   26-4              (3)  coordinate and stimulate orderly and accelerated
   26-5  development of tourist attractions throughout this state;
   26-6              (4)  conduct a public relations campaign to create a
   26-7  responsible and accurate national and international image of this
   26-8  state;
   26-9              (5)  cooperate fully with the Parks and Wildlife
  26-10  Department in all matters relating to promotion of tourism;
  26-11              (6)  cooperate with the State Highway and Public
  26-12  Transportation Commission in the administration of the commission's
  26-13  collateral program of highway map distribution and operation of
  26-14  travel information bureaus and other tourist-related functions of
  26-15  the commission; <and>
  26-16              (7)  encourage communities, organizations, and
  26-17  individuals in this state to cooperate with its program by their
  26-18  activities and use of their own funds and collaborate with those
  26-19  organizations and other governmental entities in the pursuit of the
  26-20  objectives of this subchapter; and
  26-21              (8)  promote and encourage the horse racing and
  26-22  greyhound racing industry, if funds are appropriated for the
  26-23  promotion or encouragement.
  26-24        SECTION 29.  Sections 3.01 and 18.02, Texas Racing Act
  26-25  (Article 179e, Vernon's Texas Civil Statutes), are repealed.
  26-26        SECTION 30.  (a)  This Act takes effect September 1, 1995.
  26-27        (b)  The changes in law made by this Act relating to the
   27-1  qualifications and appointment of members to the Texas Racing
   27-2  Commission do not affect the entitlement of a member of the
   27-3  commission serving immediately before the effective date of this
   27-4  Act to continue to serve on the commission for the term to which
   27-5  the member was appointed.  As the terms of members of the
   27-6  commission expire or as vacancies on the commission occur, the
   27-7  governor shall make appointments to the commission to achieve as
   27-8  soon as possible the membership plan prescribed for the commission
   27-9  by the Texas Racing Act (Article 179e, Vernon's Texas Civil
  27-10  Statutes), as amended by this Act.
  27-11        (c)  The Texas Racing Commission shall review all of the
  27-12  rules of the commission before January 1, 1998.  The commission,
  27-13  following the review, shall readopt, modify, or repeal the rules
  27-14  before January 1, 1998.
  27-15        (d)  The authority for rulemaking and licensing and for any
  27-16  action relating exclusively to horse racing or exclusively to
  27-17  greyhound racing that was granted to a separate section of the
  27-18  Texas Racing Commission is transferred to the Texas Racing
  27-19  Commission.
  27-20        SECTION 31.  The importance of this legislation and the
  27-21  crowded condition of the calendars in both houses create an
  27-22  emergency and an imperative public necessity that the
  27-23  constitutional rule requiring bills to be read on three several
  27-24  days in each house be suspended, and this rule is hereby suspended.