By Gray H.B. No. 1445
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; providing penalties.
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 Subdivisions
1-17 (67)-(76) 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 (68) "Child" means a person younger than 16 years of
1-22 age.
1-23 (69) "Minor" means a person younger than 21 years of
1-24 age.
2-1 (70) "Contraband" means:
2-2 (A) any item or thing the possession of which is
2-3 unlawful under this Act, a commission rule, or other law;
2-4 (B) any item or thing that might reasonably have
2-5 the effect of unnaturally depressing, stimulating, or exciting an
2-6 animal during a race in a manner contrary to this Act or commission
2-7 rule, including a prohibited device or substance; or
2-8 (C) a document, including a credential or forged
2-9 ticket, possessed by an individual or used by an individual in
2-10 violation of this Act or a commission rule.
2-11 (71) "Prohibited device" means:
2-12 (A) a spur or an electrical or other device
2-13 prohibited by a commission rule regulating the unlawful influence
2-14 of a race; or
2-15 (B) a device specifically designed, made, or
2-16 adapted to influence or affect the outcome of a race in a manner
2-17 contrary to this Act or a commission rule.
2-18 (72) "Prohibited substance" means a drug, chemical,
2-19 medication, stimulant, depressant, or other substance, including a
2-20 syringe or other device used to administer a prohibited substance,
2-21 that, in its use or intended use, is capable of influencing or
2-22 affecting the outcome of a race in a manner contrary to this Act or
2-23 a commission rule.
2-24 (73) "Unlawful touting" means an offense described by
2-25 Section 14.01 of this Act or a similar offense under the laws of
2-26 another state.
2-27 (74) "Race" includes a live audio and visual signal of
3-1 a race.
3-2 (75) "Outstanding ticket" means a pari-mutuel ticket
3-3 not presented for payment before the end of the greyhound racing or
3-4 horse racing day for which the ticket was purchased.
3-5 (76) "Pari-mutuel voucher" means a bearer instrument
3-6 issued by a pari-mutuel wagering machine that represents money
3-7 owned by a wagering patron and held by an association, including
3-8 winnings from a pari-mutuel wager.
3-9 SECTION 3. Sections 2.02(a) and (b), Texas Racing Act
3-10 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
3-11 as follows:
3-12 (a) The commission consists of six members appointed by the
3-13 governor with the advice and consent of the senate and two ex
3-14 officio members who shall have the right to vote. The ex officio
3-15 members are the chairman of the Public Safety Commission and the
3-16 comptroller of public accounts. [In making appointments to the
3-17 commission, the governor shall strive to achieve representation by
3-18 all the population groups of the state with regard to economic
3-19 status, sex, race, and ethnicity.]
3-20 (b) Appointments to the commission shall be made without
3-21 regard to the race, color, disability, sex, religion, age, or
3-22 national origin of the appointees. [One appointed member must be a
3-23 veterinarian licensed to practice in this state who specializes in
3-24 the treatment of small animals. One appointed member must be a
3-25 veterinarian licensed to practice in this state who specializes in
3-26 the treatment of large animals. Two appointed members must be
3-27 individuals who are not veterinarians and who have special
4-1 knowledge or experience related to greyhound racing. Two appointed
4-2 members must be individuals who are not veterinarians and who have
4-3 special knowledge or experience related to horse racing.]
4-4 SECTION 4. Section 2.03, Texas Racing Act (Article 179e,
4-5 Vernon's Texas Civil Statutes), is amended to read as follows:
4-6 Sec. 2.03. Term of office. (a) Appointed [Except for the
4-7 initial appointments, appointed] members hold office for staggered
4-8 terms of six years with two members' terms expiring February 1 of
4-9 each odd-numbered year. A member holds office until that member's
4-10 successor is appointed and qualifies.
4-11 (b) [In making the initial appointments, the governor shall
4-12 designate two appointed members for a term expiring February 1,
4-13 1989, two for a term expiring February 1, 1991, and two for a term
4-14 expiring February 1, 1993. The governor shall make the initial
4-15 appointments on or before February 1, 1987.]
4-16 [(c)] The ex officio members hold office on the commission
4-17 for the time for which they hold their other offices.
4-18 SECTION 5. Section 2.05, Texas Racing Act (Article 179e,
4-19 Vernon's Texas Civil Statutes), is amended to read as follows:
4-20 Sec. 2.05. Eligibility. (a) Four of the appointed members
4-21 of the commission must be representatives of the general public and
4-22 have general knowledge of business or agribusiness. One additional
4-23 appointed member must have special knowledge or experience related
4-24 to greyhound racing and one additional appointed member must have
4-25 special knowledge or experience related to horse racing. A person
4-26 is not eligible for appointment as a member of the commission if
4-27 the person or the person's spouse:
5-1 (1) is licensed by the commission, except as a
5-2 commissioner;
5-3 (2) is employed by the commission or participates in
5-4 the management of a business entity or other organization regulated
5-5 by the commission or receiving funds from or through the
5-6 commission;
5-7 (3) owns or controls, directly or indirectly, more
5-8 than a 10 percent interest in a business entity or other
5-9 organization regulated by the commission or receiving funds from or
5-10 through the commission; or
5-11 (4) uses or receives a substantial amount of tangible
5-12 goods, services, or funds from or through the commission, other
5-13 than compensation or reimbursement authorized by law for commission
5-14 membership, attendance, or expenses.
5-15 (b) In addition to the eligibility requirements of
5-16 Subsection (a), a [A] person is not eligible to be an appointed
5-17 member of the commission if that person owns any financial interest
5-18 in a racetrack or its operation or if that person is related within
5-19 the second degree by affinity or the third degree by consanguinity,
5-20 as determined under Subchapter B, Chapter 573, Government Code
5-21 [Article 5996h, Revised Statutes], to a person who owns any
5-22 financial interest in a racetrack or its operation.
5-23 (c) Each person appointed to or employed by the commission
5-24 is subject to all background checks and qualification criteria
5-25 required to hold a racetrack license or other license under this
5-26 Act.
5-27 (d) A person who has been convicted of a felony or of any
6-1 crime involving moral turpitude is not eligible for appointment to
6-2 the commission.
6-3 SECTION 6. Article 2, Texas Racing Act (Article 179e,
6-4 Vernon's Texas Civil Statutes), is amended by adding Sections
6-5 2.071-2.074 to read as follows:
6-6 Sec. 2.071. CONFLICT OF INTEREST. (a) An officer,
6-7 employee, or paid consultant of a Texas trade association in the
6-8 field of horse or greyhound racing or breeding may not be a member
6-9 of the commission or an employee of the commission who is exempt
6-10 from the state's position classification plan or is compensated at
6-11 or above the amount prescribed by the General Appropriations Act
6-12 for step 1, salary group 17, of the position classification salary
6-13 schedule.
6-14 (b) A person who is the spouse of an officer, manager, or
6-15 paid consultant of a Texas trade association in the field of horse
6-16 or greyhound racing or breeding may not be a member of the
6-17 commission and may not be an employee of the commission who is
6-18 exempt from the state's position classification plan or is
6-19 compensated at or above the amount prescribed by the General
6-20 Appropriations Act for step 1, salary group 17, of the position
6-21 classification salary schedule.
6-22 (c) For the purposes of this section, a Texas trade
6-23 association is a nonprofit, cooperative, and voluntarily joined
6-24 association of business or professional competitors in this state
6-25 designed to assist its members and its industry or profession in
6-26 dealing with mutual business or professional problems and in
6-27 promoting their common interest.
7-1 Sec. 2.072. LOBBYIST RESTRICTION. A person may not serve as
7-2 a member of the commission or act as the general counsel to the
7-3 commission if the person is required to register as a lobbyist
7-4 under Chapter 305, Government Code, because of the person's
7-5 activities for compensation on behalf of a profession related to
7-6 the operation of the commission.
7-7 Sec. 2.073. GROUNDS FOR REMOVAL. (a) It is a ground for
7-8 removal from the commission if a member:
7-9 (1) does not have at the time of appointment the
7-10 qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
7-11 (2) does not maintain during service on the commission
7-12 the qualifications required by Section 2.02 or 2.05 of this Act;
7-13 (3) violates a prohibition established by Section
7-14 2.05, 2.071, or 2.072 of this Act;
7-15 (4) cannot because of illness or disability discharge
7-16 the member's duties for a substantial part of the term for which
7-17 the member is appointed; or
7-18 (5) is absent from more than half of the regularly
7-19 scheduled commission meetings that the member is eligible to attend
7-20 during a calendar year.
7-21 (b) The validity of an action of the commission is not
7-22 affected by the fact that it is taken when a ground for removal of
7-23 a commission member exists.
7-24 (c) If the executive secretary has knowledge that a
7-25 potential ground for removal exists, the executive secretary shall
7-26 notify the presiding officer of the commission of the potential
7-27 ground. The presiding officer shall then notify the governor and
8-1 the attorney general that a potential ground for removal exists.
8-2 If the potential ground for removal involves the presiding officer,
8-3 the executive secretary shall notify the next highest officer of
8-4 the commission, who shall notify the governor and the attorney
8-5 general that a potential ground for removal exists.
8-6 Sec. 2.074. MEMBER TRAINING. (a) Before a member of the
8-7 commission may assume the member's duties and before the member may
8-8 be confirmed by the senate, the member must complete at least one
8-9 course of the training program established by the commission under
8-10 this section.
8-11 (b) A training program established under this section shall
8-12 provide information to the member regarding:
8-13 (1) the enabling legislation that created the
8-14 commission;
8-15 (2) the programs operated by the agency;
8-16 (3) the role and functions of the agency;
8-17 (4) the rules of the agency with an emphasis on the
8-18 rules that relate to disciplinary and investigatory authority;
8-19 (5) the current budget for the agency;
8-20 (6) the results of the most recent formal audit of the
8-21 agency;
8-22 (7) the requirements of the:
8-23 (A) open meetings law, Chapter 551, Government
8-24 Code;
8-25 (B) open records law, Chapter 552, Government
8-26 Code; and
8-27 (C) administrative procedure law, Chapter 2001,
9-1 Government Code;
9-2 (8) the requirements of the conflict of interest laws
9-3 and other laws relating to public officials; and
9-4 (9) any applicable ethics policies adopted by the
9-5 agency or the Texas Ethics Commission.
9-6 SECTION 7. Section 2.10, Texas Racing Act (Article 179e,
9-7 Vernon's Texas Civil Statutes), is amended to read as follows:
9-8 Sec. 2.10. PRESIDING OFFICER [CHAIRMAN]. The governor shall
9-9 designate a public [one] member of the commission as the presiding
9-10 officer [chairman] of the commission to serve in that capacity at
9-11 the pleasure of the governor.
9-12 SECTION 8. Section 2.11, Texas Racing Act (Article 179e,
9-13 Vernon's Texas Civil Statutes), is amended by amending Subsection
9-14 (b) and adding Subsection (d) to read as follows:
9-15 (b) A majority of the commission constitutes a quorum. [A
9-16 majority of a section of the commission constitutes a quorum for
9-17 purposes of conducting business related to matters under the
9-18 exclusive jurisdiction of that section.]
9-19 (d) The commission shall, by rule, develop and implement
9-20 policies that provide the public with a reasonable opportunity to
9-21 appear before the commission and to speak on any issue under the
9-22 jurisdiction of the commission.
9-23 SECTION 9. Article 2, Texas Racing Act (Article 179e,
9-24 Vernon's Texas Civil Statutes), is amended by adding Sections
9-25 2.17-2.24 to read as follows:
9-26 Sec. 2.17. ANNUAL ACCOUNTING. The commission shall prepare
9-27 annually a complete and detailed written report accounting for all
10-1 funds received and disbursed by the commission during the preceding
10-2 fiscal year. The annual report must meet the reporting
10-3 requirements applicable to financial reporting provided in the
10-4 General Appropriations Act.
10-5 Sec. 2.18. FUNDS PAID TO COMMISSION. All money paid to the
10-6 commission under this Act is subject to Subchapter F, Chapter 404,
10-7 Government Code.
10-8 Sec. 2.19. EMPLOYMENT PRACTICES. (a) The executive
10-9 secretary or the executive secretary's designee shall develop an
10-10 intra-agency career ladder program that addresses opportunities for
10-11 mobility and advancement for employees within the commission. The
10-12 program shall require intra-agency posting of all positions
10-13 concurrently with any public posting.
10-14 (b) The executive secretary or the executive secretary's
10-15 designee shall develop a system of annual performance evaluations
10-16 that are based on documented employee performance. All merit pay
10-17 for commission employees must be based on the system established
10-18 under this subsection.
10-19 (c) The executive secretary or the executive secretary's
10-20 designee shall prepare and maintain a written policy statement to
10-21 assure implementation of a program of equal employment opportunity
10-22 under which all personnel transactions are made without regard to
10-23 race, color, disability, sex, religion, age, or national origin.
10-24 The policy statement must include:
10-25 (1) personnel policies, including policies relating to
10-26 recruitment, evaluation, selection, appointment, training, and
10-27 promotion of personnel that are in compliance with the requirements
11-1 of Chapter 21, Labor Code;
11-2 (2) a comprehensive analysis of the commission
11-3 workforce that meets federal and state laws, rules, regulations,
11-4 and instructions directly promulgated from those laws, rules, and
11-5 regulations;
11-6 (3) procedures by which a determination can be made
11-7 about the extent of underuse in the commission workforce of all
11-8 persons for whom federal or state laws, rules, regulations, and
11-9 instructions directly promulgated from those laws, rules, and
11-10 regulations encourage a more equitable balance; and
11-11 (4) reasonable methods to appropriately address those
11-12 areas of underuse.
11-13 (d) A policy statement prepared under Subsection (c) of this
11-14 section must cover an annual period, be updated annually and
11-15 reviewed by the Texas Commission on Human Rights for compliance
11-16 with Subsection (c)(1) of this section, and be filed with the
11-17 governor's office.
11-18 (e) The governor's office shall deliver a biennial report to
11-19 the legislature based on the information received under Subsection
11-20 (d) of this section. The report may be made separately or as a
11-21 part of other biennial reports made to the legislature.
11-22 Sec. 2.20. STANDARDS OF CONDUCT. The executive secretary or
11-23 the executive secretary's designee shall provide to members of the
11-24 commission and to agency employees, as often as necessary,
11-25 information regarding their qualification for office or employment
11-26 under this Act and their responsibilities under applicable laws
11-27 relating to standards of conduct for state officers or employees.
12-1 Sec. 2.21. DIVISION OF RESPONSIBILITY. The commission
12-2 shall, by rule, develop and implement policies that clearly
12-3 separate the policymaking responsibilities of the commission and
12-4 the management responsibilities of the executive secretary and the
12-5 staff of the commission.
12-6 Sec. 2.22. PROGRAM AND FACILITY ACCESSIBILITY. The
12-7 commission shall comply with federal and state laws related to
12-8 program and facility accessibility. The executive secretary shall
12-9 also prepare and maintain a written plan that describes how a
12-10 person who does not speak English can be provided reasonable access
12-11 to the commission's programs and services.
12-12 Sec. 2.23. INFORMATION TO PUBLIC. (a) The commission shall
12-13 prepare information of public interest describing the functions of
12-14 the commission and the procedures by which complaints are filed
12-15 with and resolved by the commission. The commission shall make the
12-16 information available to the public and appropriate state agencies.
12-17 (b) The commission by rule shall establish methods by which
12-18 racetrack patrons are notified of the name, mailing address, and
12-19 telephone number of the commission for the purpose of directing
12-20 complaints to the commission. The commission may provide for that
12-21 notification:
12-22 (1) on every race performance program provided by each
12-23 racetrack association; or
12-24 (2) on signs prominently displayed in the common
12-25 public areas on the premises of each racetrack association.
12-26 Sec. 2.24. COMPLAINT HANDLING. (a) The commission shall
12-27 keep information about each complaint filed with the commission.
13-1 The information shall include:
13-2 (1) the date the complaint is received;
13-3 (2) the name of the complainant;
13-4 (3) the subject matter of the complaint;
13-5 (4) a record of all persons contacted in relation to
13-6 the complaint;
13-7 (5) a summary of the results of the review or
13-8 investigation of the complaint; and
13-9 (6) for complaints for which the agency took no
13-10 action, an explanation of the reason the complaint was closed
13-11 without action.
13-12 (b) The commission shall keep a file about each written
13-13 complaint filed with the commission that the agency has authority
13-14 to resolve. The commission shall provide to the person filing the
13-15 complaint and the persons or entities complained about the
13-16 commission's policies and procedures pertaining to complaint
13-17 investigation and resolution. The commission, at least quarterly
13-18 and until final disposition of the complaint, shall notify the
13-19 person filing the complaint and the persons or entities complained
13-20 about of the status of the complaint unless the notice would
13-21 jeopardize an undercover investigation.
13-22 SECTION 10. Section 3.02, Texas Racing Act (Article 179e,
13-23 Vernon's Texas Civil Statutes), is amended to read as follows:
13-24 Sec. 3.02. Regulation and supervision. (a) The [In
13-25 accordance with Section 3.01 of this Act, the] commission shall
13-26 regulate and supervise every race meeting in this state involving
13-27 wagering on the result of greyhound or horse racing. All persons
14-1 and things relating to the operation of those meetings are subject
14-2 to regulation and supervision by the commission. The commission
14-3 shall adopt rules for conducting greyhound or horse racing in this
14-4 state involving wagering and shall adopt other rules to administer
14-5 this Act that are consistent with this Act. The commission shall
14-6 also make rules, issue licenses, and take any other necessary
14-7 action relating exclusively to horse racing or to greyhound racing.
14-8 A majority vote of the members of the commission is necessary for
14-9 any commission decision.
14-10 (b) The commission may establish separate sections to review
14-11 or propose rules of the commission.
14-12 (c) The commission or a section of the commission shall hold
14-13 a meeting on any proposed rule before the commission publishes the
14-14 proposed rule in the Texas Register.
14-15 (d) The commission shall post notice of a meeting under
14-16 Subsection (c) of this section at each racetrack facility. The
14-17 notice shall include an agenda of the meeting and a summary of the
14-18 proposed rule.
14-19 (e) A copy of a proposed rule published in the Texas
14-20 Register shall also be posted concurrently at each racetrack
14-21 facility.
14-22 (f) The commission or a section of the commission may
14-23 appoint a committee of experts, members of the public, or other
14-24 interested parties to advise the commission or section of the
14-25 commission about a proposed rule of the commission.
14-26 (g) The commission, in adopting rules and in the supervision
14-27 and conduct of racing, shall consider the effect of a proposed
15-1 commission action on the state's agricultural, horse breeding,
15-2 horse training, greyhound breeding, and greyhound training
15-3 industry.
15-4 SECTION 11. Section 3.021, Texas Racing Act (Article 179e,
15-5 Vernon's Texas Civil Statutes), is amended by amending Subsection
15-6 (b) and adding Subsection (d) to read as follows:
15-7 (b) To protect the health, safety, and welfare of race
15-8 animals and participants in racing, to safeguard the interest of
15-9 the general public, and to promote the orderly [growth and] conduct
15-10 of racing within the state, the commission may adopt rules for the
15-11 licensing and regulation of races and workouts at racetracks that
15-12 do not offer pari-mutuel wagering and for workouts at training
15-13 facilities to secure past performances and workouts.
15-14 (d) The commission may not adopt rules restricting
15-15 competitive bidding or advertising by a licensee except to prohibit
15-16 false, misleading, or deceptive practices. In its rules to
15-17 prohibit false, misleading, or deceptive practices, the commission
15-18 may not include a rule that:
15-19 (1) restricts the use of any medium for advertising;
15-20 (2) restricts the use of a licensee's personal
15-21 appearance or voice in an advertisement;
15-22 (3) relates to the size or duration of an
15-23 advertisement by the licensee; or
15-24 (4) restricts the licensee's advertisement under a
15-25 trade name.
15-26 SECTION 12. Section 3.03, Texas Racing Act (Article 179e,
15-27 Vernon's Texas Civil Statutes), is amended to read as follows:
16-1 Sec. 3.03. Power of entry. A member of the commission, an
16-2 authorized agent of the commission, a commissioned officer of the
16-3 Department of Public Safety, or a peace officer of the local
16-4 jurisdiction in which the association maintains a place of business
16-5 may enter any part of the racetrack facility [the office,
16-6 racetrack,] or any other place of business of an association at any
16-7 time for the purpose of enforcing and administering this Act.
16-8 SECTION 13. Sections 3.07(a), (d), and (e), Texas Racing Act
16-9 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
16-10 as follows:
16-11 (a) The commission shall employ all of the judges and all of
16-12 the stewards for the supervision of a horse race or greyhound race
16-13 meeting. Each horse race or greyhound race meeting shall be
16-14 supervised by three stewards [approved by the commission] for horse
16-15 racing or by three judges [approved by the commission] for
16-16 greyhound racing. The commission shall designate one of the
16-17 stewards or judges as the presiding steward or judge for each race
16-18 meeting. The association, following the completion of the race
16-19 meeting, may submit written comments to the commission regarding
16-20 the job performance of the stewards and judges for the commission's
16-21 review. Comments received are not binding, in any way, on the
16-22 commission. [The commission shall employ one of the stewards who
16-23 supervises a horse race meeting who shall be the presiding steward.
16-24 The other stewards at the race meeting shall be compensated by the
16-25 association. The commission shall employ one of the judges who
16-26 supervises a greyhound race meeting who shall be the presiding
16-27 judge; the other judges at such a race meeting shall be compensated
17-1 by the association.] For each race meeting, the commission shall
17-2 employ [appoint] at least one state veterinarian [who shall be
17-3 compensated by the commission. The commission by rule shall
17-4 determine the amount of compensation for stewards, judges, and
17-5 state veterinarians who are required to be compensated by the
17-6 commission]. The commission may, by rule, impose a fee on an
17-7 association to offset the costs of compensating the [racetrack]
17-8 stewards, judges, and state veterinarians [for that association].
17-9 The amount of the fee for the compensation of stewards, judges, and
17-10 state veterinarians must be reasonable according to industry
17-11 standards for the compensation of those officials at other
17-12 racetracks and may not exceed the actual cost to the commission for
17-13 compensating the officials. All other racetrack officials shall be
17-14 appointed by the association, with the approval of the commission.
17-15 Compensation for those officials not compensated by the commission
17-16 shall be determined by the association.
17-17 (d) Medication or drug testing performed on a race animal
17-18 under [Section 14.03 of] this Act shall be conducted by a
17-19 laboratory selected by the commission on a yearly basis by
17-20 competitive bidding submitted to the commission for final approval.
17-21 The commission's decision shall be based on cost and integrity.
17-22 The Texas Veterinary Medical Diagnostic Laboratory may aid the
17-23 commission in its selection [either by the Texas Veterinary Medical
17-24 Diagnostic Laboratory or in conjunction with or by a private or
17-25 public agency that is approved by the commission and by the Texas
17-26 Veterinary Medical Diagnostic Laboratory]. Medication or drug
17-27 testing performed on a human under [Section 14.03 of] this Act
18-1 shall be conducted by a laboratory approved by the commission.
18-2 Charges for services performed under this section shall be
18-3 forwarded to the commission for approval as to the reasonableness
18-4 of the charges for the services. Charges may include but are not
18-5 limited to expenses incurred for travel, lodging, testing, and
18-6 processing of test results. The reasonable charges associated with
18-7 medication or drug testing conducted under this Act shall be paid
18-8 by the association that receives the services. The commission shall
18-9 adopt rules for the procedures for approving and paying laboratory
18-10 charges under this section. On the approval of the charges as
18-11 reasonable, in relation to industry standards for testing charges,
18-12 the commission shall forward a copy of the charges to the
18-13 association that receives the services for immediate payment.
18-14 (e) To pay the charges associated with the medication or
18-15 drug testing, an association may use the money held [retained] by
18-16 the association to pay outstanding tickets and pari-mutuel vouchers
18-17 [on tickets that are purchased as wagers on horses or greyhounds
18-18 and that are not cashed by the holders of the tickets]. If
18-19 additional amounts are needed to pay the charges, the association
18-20 shall pay those additional amounts. If the amount retained exceeds
18-21 the amount needed to pay the charges, the association shall pay the
18-22 excess to the commission in accordance with Section 11.08 of this
18-23 Act.
18-24 SECTION 14. Article 3, Texas Racing Act (Article 179e,
18-25 Vernon's Texas Civil Statutes), is amended by adding Sections
18-26 3.13-3.22 to read as follows:
18-27 Sec. 3.13. RECOGNITION OF ORGANIZATION. (a) The commission
19-1 by rule shall adopt criteria to recognize an organization to
19-2 represent members of a segment of the racing industry, including
19-3 owners, breeders, trainers, kennel operators, or other persons
19-4 involved in the racing industry, in any interaction between the
19-5 members of the organization and a racetrack facility or the
19-6 commission.
19-7 (b) The commission may recognize an organization that meets
19-8 the requirements of Subsection (a) of this section.
19-9 Sec. 3.14. DISCIPLINARY ACTIONS. The commission shall
19-10 revoke, suspend, or refuse to renew a license, place on probation a
19-11 person whose license has been suspended, or reprimand a licensee
19-12 for a violation of this Act or a rule of the commission. If a
19-13 license suspension is probated, the commission may require the
19-14 licensee to report regularly to the commission on matters that are
19-15 the basis of the probation.
19-16 Sec. 3.15. HEARING REQUIREMENTS. If the commission proposes
19-17 to suspend, revoke, or refuse to renew a person's license, the
19-18 person is entitled to a hearing conducted by the State Office of
19-19 Administrative Hearings. Proceedings for a disciplinary action,
19-20 other than those conducted by racing stewards or judges, are
19-21 governed by the administrative procedure law, Chapter 2001,
19-22 Government Code. Rules of practice adopted by the commission under
19-23 Section 2001.004, Government Code, applicable to the proceedings
19-24 for a disciplinary action, other than those conducted by racing
19-25 stewards or judges, may not conflict with rules adopted by the
19-26 State Office of Administrative Hearings.
19-27 Sec. 3.16. RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
20-1 (a) The commission shall adopt rules prohibiting a person from
20-2 unlawfully influencing or affecting the outcome of a race,
20-3 including rules relating to the use of a prohibited device or
20-4 prohibited substance.
20-5 (b) The commission may require prerace testing and shall
20-6 require postrace testing to determine whether a prohibited
20-7 substance has been used. The testing may be by an invasive or
20-8 noninvasive method. The commission's rules shall require
20-9 state-of-the-art testing methods.
20-10 (c) Following the discovery of a prohibited device or a
20-11 return of a test showing the presence of a prohibited substance, a
20-12 steward or judge may summarily suspend a person who has used or
20-13 administered the prohibited device or prohibited substance until a
20-14 hearing before the stewards and judges. The steward or judge may
20-15 also disqualify an animal as provided by a commission rule adopted
20-16 under this section.
20-17 (d) A person may appeal a ruling of the stewards or judges
20-18 to the commission. The commission may stay a summary suspension
20-19 during the period the matter is before the commission.
20-20 (e) The commission may require urine samples to be frozen
20-21 for a period necessary to allow any follow-up testing to detect and
20-22 identify a prohibited substance. Any other specimen shall be
20-23 maintained for testing purposes in a manner required by commission
20-24 rule.
20-25 (f) If a test sample or specimen shows the presence of a
20-26 prohibited substance, the entire sample, including any split
20-27 portion, shall be maintained until final disposition of the matter.
21-1 (g) A licensee whose animal test shows the presence of a
21-2 prohibited substance is entitled to have a split portion of the
21-3 test sample or specimen tested at a testing facility authorized to
21-4 perform drug testing under this Act and selected by the licensee.
21-5 The commission shall adopt rules relating to split testing
21-6 procedures.
21-7 (h) The licensed trainer of an animal is:
21-8 (1) considered by law to be the absolute ensurer that
21-9 no prohibited substance has been administered to the animal; and
21-10 (2) responsible for ensuring that no prohibited
21-11 substance is administered to the animal.
21-12 (i) The commission shall adopt rules relating to the drug
21-13 testing of licensees.
21-14 (j) A person who violates a rule adopted under this section
21-15 may:
21-16 (1) have any license issued to the person by the
21-17 commission revoked or suspended; or
21-18 (2) be barred for life or any other period from
21-19 applying for or receiving a license issued by the commission or
21-20 entering any portion of a racetrack facility.
21-21 Sec. 3.17. SECURITY FOR FEES AND CHARGES. The commission
21-22 may require an association to post security in an amount and form
21-23 determined by the commission to adequately ensure the payment of
21-24 any fees or charges due to the state or the commission relating to
21-25 pari-mutuel racing, including charges for drug testing.
21-26 Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive
21-27 secretary may issue a cease and desist order if the executive
22-1 secretary reasonably believes an association or other licensee is
22-2 engaging or is likely to engage in conduct that violates this Act
22-3 or a commission rule.
22-4 (b) On issuance of a cease and desist order, the executive
22-5 secretary shall serve on the association or other licensee by
22-6 personal delivery or registered or certified mail, return receipt
22-7 requested, to the person's last known address, a proposed cease and
22-8 desist order. The proposed order must state the specific acts or
22-9 practices alleged to violate this Act or a commission rule. The
22-10 proposed order must state its effective date. The effective date
22-11 may not be before the 21st day after the date the proposed order is
22-12 mailed or delivered. Unless the person against whom the proposed
22-13 order is directed requests a hearing in writing before the
22-14 effective date of the proposed order, the order takes effect and is
22-15 final and nonappealable as to that person.
22-16 (c) On receiving a request for a hearing, the executive
22-17 secretary shall serve notice of the time and place of the hearing
22-18 by personal delivery or registered or certified mail, return
22-19 receipt requested. The hearing must be held not later than the
22-20 10th day after the date the executive secretary receives the
22-21 request for a hearing unless the parties agree to a later hearing
22-22 date. At a hearing, the commission has the burden of proof and
22-23 must present evidence in support of the order. Each person against
22-24 whom the order is directed may cross examine and show cause why the
22-25 order should not be issued.
22-26 (d) After the hearing, the commission shall issue or decline
22-27 to issue a cease and desist order. The proposed order may be
23-1 modified as necessary to conform to the findings at the hearing.
23-2 An order issued under this section is final for purposes of
23-3 enforcement and appeal and shall require the person to immediately
23-4 cease and desist from the conduct that violates this Act or a
23-5 commission rule.
23-6 (e) A person affected by a cease and desist order issued,
23-7 affirmed, or modified after a hearing may file a petition for
23-8 judicial review in a district court of Travis County under Chapter
23-9 2001, Government Code. A petition for judicial review does not
23-10 stay or vacate the order unless the court, after hearing,
23-11 specifically stays or vacates the order.
23-12 Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) The
23-13 executive secretary may issue an emergency cease and desist order
23-14 if the executive secretary reasonably believes an association or
23-15 other licensee is engaged in a continuing activity that violates
23-16 this Act or a commission rule in a manner that threatens immediate
23-17 and irreparable public harm.
23-18 (b) After issuing an emergency cease and desist order, the
23-19 executive secretary shall serve on the association or other
23-20 licensee by personal delivery or registered or certified mail,
23-21 return receipt requested, to the person's last known address, an
23-22 order stating the specific charges and requiring the person
23-23 immediately to cease and desist from the conduct that violates this
23-24 Act or a commission rule. The order must contain a notice that a
23-25 request for hearing may be filed under this section.
23-26 (c) An association or other licensee that is the subject of
23-27 an emergency cease and desist order may request a hearing. The
24-1 request must be filed with the executive secretary not later than
24-2 the 10th day after the date the order was received or delivered. A
24-3 request for a hearing must be in writing and directed to the
24-4 executive secretary and must state the grounds for the request to
24-5 set aside or modify the order. Unless a person who is the subject
24-6 of the emergency order requests a hearing in writing before the
24-7 11th day after the date the order is received or delivered, the
24-8 emergency order is final and nonappealable as to that person.
24-9 (d) On receiving a request for a hearing, the executive
24-10 secretary shall serve notice of the time and place of the hearing
24-11 by personal delivery or registered or certified mail, return
24-12 receipt requested. The hearing must be held not later than the
24-13 10th day after the date the executive secretary receives the
24-14 request for a hearing unless the parties agree to a later hearing
24-15 date. At the hearing, the commission has the burden of proof and
24-16 must present evidence in support of the order. The person
24-17 requesting the hearing may cross examine witnesses and show cause
24-18 why the order should not be affirmed. Section 2003.021(b),
24-19 Government Code, does not apply to hearings conducted under this
24-20 section.
24-21 (e) An emergency cease and desist order continues in effect
24-22 unless the order is stayed by the executive secretary. The
24-23 executive secretary may impose any condition before granting a stay
24-24 of the order.
24-25 (f) After the hearing, the executive secretary shall affirm,
24-26 modify, or set aside in whole or part the emergency cease and
24-27 desist order. An order affirming or modifying the emergency cease
25-1 and desist order is final for purposes of enforcement and appeal.
25-2 Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER. (a)
25-3 If the executive secretary reasonably believes that a person has
25-4 violated a final and enforceable cease and desist order, the
25-5 executive secretary may:
25-6 (1) initiate administrative penalty proceedings under
25-7 Article 15 of this Act;
25-8 (2) refer the matter to the attorney general for
25-9 enforcement by injunction and any other available remedy; or
25-10 (3) pursue any other action, including suspension of
25-11 the person's license, that the executive secretary considers
25-12 appropriate.
25-13 (b) If the attorney general prevails in an action brought
25-14 under Subsection (a)(2) of this section, the attorney general is
25-15 entitled to recover reasonable attorney's fees.
25-16 Sec. 3.21. INJUNCTION. The commission may institute an
25-17 action in its own name to enjoin the violation of this Act. An
25-18 action for an injunction is in addition to any other action,
25-19 proceeding, or remedy authorized by law.
25-20 Sec. 3.22. ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT. (a)
25-21 The commission, by rule, shall develop a system for monitoring the
25-22 activities of managers and employees of an association relating to
25-23 the horsemen's account. The monitoring system may include review of
25-24 the financial operations of the association, including inspections
25-25 of records at the association's offices, at any racetrack, or at
25-26 any other place the association transacts business.
25-27 (b) The executive secretary may issue an order prohibiting
26-1 the association from making any transfer from a bank account held
26-2 by the association for the conduct of its business under this Act,
26-3 pending commission review of the records of the account, if the
26-4 executive secretary reasonably believes that the association has
26-5 failed to maintain the proper amount of money in the horsemen's
26-6 account. The executive secretary shall provide in the order a
26-7 procedure for the association to pay certain expenses necessary for
26-8 the operation of the racetrack, subject to the executive
26-9 secretary's approval. An order issued under this section may be
26-10 made valid for a period not to exceed 14 days.
26-11 (c) The executive secretary may issue an order requiring the
26-12 appropriate transfers to or from the horsemen's account if, after
26-13 reviewing the association's records of its bank accounts, the
26-14 executive secretary determines there is an improper amount of money
26-15 in the horsemen's account.
26-16 SECTION 15. Section 5.01(a), Texas Racing Act (Article 179e,
26-17 Vernon's Texas Civil Statutes), is amended to read as follows:
26-18 (a) The commission shall prescribe forms for applications
26-19 for licenses and shall provide each occupational licensee with a
26-20 license certificate or credentials.
26-21 SECTION 16. Sections 5.03(a) and (b), Texas Racing Act
26-22 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
26-23 as follows:
26-24 (a) An applicant for any license under this Act must, except
26-25 as allowed under Section 7.10 of this Act, submit to the commission
26-26 a complete set of fingerprints of the individual natural person
26-27 applying for the license or, if the applicant is not an individual
27-1 natural person, a complete set of fingerprints of each officer or
27-2 director and of each person owning an interest of at least five
27-3 percent in the applicant. The Department of Public Safety may
27-4 request any person owning any interest in an applicant for a
27-5 racetrack license to submit a complete set of fingerprints.
27-6 (b) If a complete set of fingerprints is required by the
27-7 commission, the [The] commission shall, not later than the next day
27-8 after receiving the prints, forward the prints to the Department of
27-9 Public Safety or the Federal Bureau of Investigation. If the
27-10 prints are forwarded to the Department of Public Safety, the [The]
27-11 department shall classify the prints and check them against its
27-12 fingerprint files and shall report to the commission its findings
27-13 concerning the criminal record of the applicant or the lack of such
27-14 a record. A racetrack license may not be issued until the report
27-15 is made to the commission. A temporary occupational license may be
27-16 issued before a report is made to the commission.
27-17 SECTION 17. Article 5, Texas Racing Act (Article 179e,
27-18 Vernon's Texas Civil Statutes), is amended by adding Section 5.05
27-19 to read as follows:
27-20 Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) The
27-21 commission shall, in determining the amount of a license fee, set
27-22 the fee in an amount that will cover, at least, the cost of
27-23 conducting a criminal history check on the applicant for a license.
27-24 (b) The commission shall reimburse the Department of Public
27-25 Safety for the cost of conducting a criminal history check under
27-26 this article.
27-27 SECTION 18. Section 6.01, Texas Racing Act (Article 179e,
28-1 Vernon's Texas Civil Statutes), is amended to read as follows:
28-2 Sec. 6.01. License required. A person shall not conduct
28-3 wagering on a greyhound race [meeting] or a horse race meeting
28-4 without first obtaining a racetrack license from the commission
28-5 [with wagering on the results without a racetrack license]. A
28-6 person who violates this section commits an offense.
28-7 SECTION 19. Sections 6.04(a) and (d), Texas Racing Act
28-8 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
28-9 as follows:
28-10 (a) The commission may issue a racetrack license to a
28-11 qualified person if it finds that the conduct of race meetings at
28-12 the proposed track and location will be in the public interest,
28-13 complies with all zoning laws, and complies with this Act and the
28-14 rules adopted by the commission and if the commission finds by
28-15 clear and convincing evidence that the applicant will comply with
28-16 all criminal laws of this state. In determining whether to grant
28-17 or deny an application for any class of racetrack license, the
28-18 commission may consider [the degree to which any of] the following
28-19 factors [regarding the applicant's racetrack or proposed race
28-20 meeting serve to nurture, promote, develop, or improve the horse or
28-21 greyhound industry in this state]:
28-22 (1) the applicant's financial stability;
28-23 (2) the applicant's resources for supplementing the
28-24 purses for races for various breeds;
28-25 (3) the location of the proposed track;
28-26 (4) the effect of the proposed track on traffic flow;
28-27 (5) facilities for patrons and occupational licensees;
29-1 (6) facilities for race animals;
29-2 (7) availability to the track of support services and
29-3 emergency services;
29-4 (8) the experience of the applicant's employees;
29-5 (9) the potential for conflict with other licensed
29-6 race meetings;
29-7 (10) the anticipated effect of the race meeting on the
29-8 greyhound or horse breeding industry in this state; and
29-9 (11) the anticipated effect of the race meeting on the
29-10 state and local economy from tourism, increased employment, and
29-11 other sources.
29-12 (d) In considering an application for a class 4 racetrack
29-13 license, the commission may waive or defer compliance with the
29-14 commission's standards regarding the physical facilities or
29-15 operations of a horse racetrack. The commission may not waive or
29-16 defer compliance with standards that relate to the testing of
29-17 horses or licensees for the presence of a prohibited drug,
29-18 chemical, or other substance [as provided by Section 14.03 of this
29-19 Act]. If the commission defers compliance, the commission shall,
29-20 when granting the application, establish a schedule under which the
29-21 licensee must comply with the standards.
29-22 SECTION 20. Sections 6.06(a), (b), (e), and (f), Texas
29-23 Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
29-24 amended to read as follows:
29-25 (a) To preserve and protect the public health, welfare, and
29-26 safety, the commission shall adopt rules relating to license
29-27 applications, [renewal applications,] the financial responsibility,
30-1 moral character, and ability of applicants, and all matters
30-2 relating to the planning, construction, and operation of
30-3 racetracks. The commission may refuse to issue a [an original or
30-4 renewal] racetrack license or may revoke or suspend a license if,
30-5 after notice and hearing, it has reasonable grounds to believe and
30-6 finds that:
30-7 (1) the applicant has been convicted in a court of
30-8 competent jurisdiction of a violation of this Act or any rule
30-9 adopted by the commission or that the applicant has aided, abetted,
30-10 or conspired with any person to commit such a violation;
30-11 (2) the applicant has been convicted of a felony or of
30-12 any crime involving moral turpitude, including convictions for
30-13 which the punishment received was a suspended sentence, probation,
30-14 or a nonadjudicated conviction, that is reasonably related to the
30-15 applicant's present fitness to hold a license under this Act;
30-16 (3) the applicant has violated or has caused to be
30-17 violated this Act or a rule of the commission in a manner that
30-18 involves moral turpitude, as distinguished from a technical
30-19 violation of this Act or of a rule;
30-20 (4) the applicant is unqualified, by experience or
30-21 otherwise, to perform the duties required of a licensee under this
30-22 Act;
30-23 (5) the applicant failed to answer or falsely or
30-24 incorrectly answered a question in an [original or renewal]
30-25 application;
30-26 (6) the applicant fails to disclose the true ownership
30-27 or interest in a greyhound or horse as required by the rules of the
31-1 commission;
31-2 (7) the applicant is indebted to the state for any
31-3 fees or for the payment of a penalty imposed by this Act or by a
31-4 rule of the commission;
31-5 (8) the applicant is not of good moral character or
31-6 the applicant's reputation as a peaceable, law-abiding citizen in
31-7 the community where the applicant resides is bad;
31-8 (9) the applicant has not yet attained the minimum age
31-9 necessary to purchase alcoholic beverages in this state;
31-10 (10) the applicant is in the habit of using alcoholic
31-11 beverages to an excess or uses a controlled substance as defined in
31-12 Chapter 481, Health and Safety Code, or a dangerous drug as defined
31-13 in Chapter 483, Health and Safety Code, or is mentally
31-14 incapacitated;
31-15 (11) the applicant may be excluded from a track
31-16 enclosure under Article 13 or 14 of this Act;
31-17 (12) the applicant has not been a United States
31-18 citizen residing in this state for the period of 10 consecutive
31-19 years immediately preceding the filing of the application;
31-20 (13) the applicant has improperly used a license
31-21 certificate, credential, or identification card issued under this
31-22 Act;
31-23 (14) the applicant is residentially domiciled with a
31-24 person whose license has been revoked for cause within the 12
31-25 months immediately preceding the date of the present application;
31-26 (15) the applicant has failed or refused to furnish a
31-27 true copy of the application to the commission's district office in
32-1 the district in which the premises for which the permit is sought
32-2 are located; [or]
32-3 (16) the applicant is engaged or has engaged in
32-4 activities or practices that the commission finds are detrimental
32-5 to the best interests of the public and the sport of greyhound
32-6 racing or horse racing; or
32-7 (17) the applicant fails to fully disclose the true
32-8 owners of all interests, beneficial or otherwise, in a proposed
32-9 racetrack facility.
32-10 (b) Subsection (a) of this section applies to a corporation,
32-11 partnership, limited partnership, or any other organization or
32-12 group whose application is comprised of more than one person if a
32-13 shareholder, partner, limited partner [if any], director, or
32-14 officer is disqualified under Subsection (a) of this section.
32-15 (e) The [appropriate section of the] commission may
32-16 condition the issuance of a license under this article on the
32-17 observance of its rules. The commission may amend the rules at any
32-18 time and may condition the continued holding of the license on
32-19 compliance with the rules as amended.
32-20 (f) The [appropriate section of the] commission may refuse
32-21 to issue a license or may suspend or revoke a license of a licensee
32-22 under this article who knowingly or intentionally allows access to
32-23 an enclosure where greyhound races or horse races are conducted to
32-24 a person who has engaged in bookmaking, touting, or illegal
32-25 wagering, whose income is from illegal activities or enterprises,
32-26 or who has been convicted of a violation of this Act.
32-27 SECTION 21. Article 6, Texas Racing Act (Article 179e,
33-1 Vernon's Texas Civil Statutes), is amended by adding Sections
33-2 6.061-6.063 to read as follows:
33-3 Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFE
33-4 CONDITIONS. (a) The commission shall adopt rules implementing
33-5 this section, including rules:
33-6 (1) requiring the report of and correction of:
33-7 (A) an inappropriate condition on the premises
33-8 of a racetrack facility, including a failure to properly maintain
33-9 the facility, that interferes with the administration of this Act;
33-10 or
33-11 (B) a condition on the premises of a racetrack
33-12 facility that makes the facility unsafe for a race participant,
33-13 patron, or animal; and
33-14 (2) determining the methods and manner in which the
33-15 executive secretary may determine and remedy inappropriate
33-16 conditions or unsafe facilities on the premises of a racetrack
33-17 facility, including the methods and manner in which the executive
33-18 secretary may conduct inspections of the racetrack facility and
33-19 remedy emergency situations.
33-20 (b) The executive secretary shall issue a notice of
33-21 violation to a racetrack facility on a finding that an
33-22 inappropriate or unsafe condition exists.
33-23 (c) If the executive secretary determines that an
33-24 inappropriate or unsafe condition exists at the racetrack facility,
33-25 the executive secretary shall order the racetrack facility to take
33-26 action within a specified period to remedy the inappropriate
33-27 condition or unsafe condition. In determining the period for
34-1 compliance, the executive secretary shall consider the nature and
34-2 severity of the problem and the threat to the health, safety, and
34-3 welfare of the race participants, patrons, or animals.
34-4 (d) The commission shall adopt rules requiring the reporting
34-5 of any corrective action taken by a racetrack facility in response
34-6 to an order of the executive secretary under Subsection (c) of this
34-7 section.
34-8 (e) If a racetrack facility fails to take any action as
34-9 required under Subsection (c) of this section, the executive
34-10 secretary shall initiate an enforcement action against the
34-11 racetrack facility. The executive secretary may rescind any live
34-12 or simulcast race date of any racetrack association that does not
34-13 take corrective action within the period set by the executive
34-14 secretary.
34-15 (f) The commission shall adopt rules relating to the
34-16 commission's review of an action taken under this section by the
34-17 executive secretary. A review procedure adopted under this
34-18 subsection must be consistent with Chapter 2001, Government Code.
34-19 Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) The
34-20 commission shall adopt a method of supervising and approving the
34-21 construction, renovation, or maintenance of any building or
34-22 improvement on the premises of a racetrack facility.
34-23 (b) The commission shall adopt rules relating to:
34-24 (1) the approval of plans and specifications;
34-25 (2) the contents of plans and specifications;
34-26 (3) the maintenance of records to ensure compliance
34-27 with approved plans and specifications;
35-1 (4) the content and filing of construction progress
35-2 reports by the racetrack facility to the commission;
35-3 (5) the inspection by the commission or others;
35-4 (6) the method for making a change or amendment to an
35-5 approved plan or specification; and
35-6 (7) any other method of supervision or oversight
35-7 necessary.
35-8 (c) If the commission has grounds to believe that an
35-9 association has failed to comply with the requirements of this
35-10 section, a representative of the association shall appear before
35-11 the commission to consider the issue of compliance with the rules
35-12 adopted under this section.
35-13 (d) Before a building or improvement may be used by the
35-14 association, the commission shall determine whether the
35-15 construction, renovation, or maintenance of the building or
35-16 improvement was completed in accordance with the approved plans and
35-17 specifications and whether other requirements of the commission
35-18 were met.
35-19 (e) If the commission determines that the association failed
35-20 to comply with a requirement of this section or rule adopted under
35-21 this section, the commission shall initiate an enforcement action
35-22 against the association. In addition to any other authorized
35-23 enforcement action, the commission may rescind any live or
35-24 simulcast race date of any association that has failed to comply
35-25 with the requirement of this section.
35-26 Sec. 6.063. SUMMARY SUSPENSION. (a) The commission may
35-27 summarily suspend a racetrack license if the commission determines
36-1 that a racetrack at which races or pari-mutuel wagering are
36-2 conducted under the license is being operated in a manner that
36-3 constitutes an immediate threat to the health, safety, or welfare
36-4 of the participants in racing or the patrons.
36-5 (b) After issuing a summary suspension order, the executive
36-6 secretary shall serve on the association by personal delivery or
36-7 registered or certified mail, return receipt requested, to the
36-8 licensee's last known address, an order stating the specific
36-9 charges and requiring the licensee immediately to cease and desist
36-10 from all conduct permitted by the license. The order must contain
36-11 a notice that a request for hearing may be filed under this
36-12 section.
36-13 (c) An association that is the subject of a summary
36-14 suspension order may request a hearing. The request must be filed
36-15 with the executive secretary not later than the 10th day after the
36-16 date the order was received or delivered. A request for a hearing
36-17 must be in writing and directed to the executive secretary and must
36-18 state the grounds for the request to set aside or modify the order.
36-19 Unless a licensee who is the subject of the order requests a
36-20 hearing in writing before the 11th day after the date the order is
36-21 received or delivered, the order is final and nonappealable as to
36-22 that licensee.
36-23 (d) On receiving a request for a hearing, the executive
36-24 secretary shall serve notice of the time and place of the hearing
36-25 by personal delivery or registered or certified mail, return
36-26 receipt requested. The hearing must be held not later than the
36-27 10th day after the date the executive secretary receives the
37-1 request for a hearing unless the parties agree to a later hearing
37-2 date. At the hearing, the commission has the burden of proof and
37-3 must present evidence in support of the order. The licensee
37-4 requesting the hearing may cross examine witnesses and show cause
37-5 why the order should not be affirmed. Section 2003.021(b),
37-6 Government Code, does not apply to hearings conducted under this
37-7 section.
37-8 (e) A summary suspension order continues in effect unless
37-9 the order is stayed by the executive secretary. The executive
37-10 secretary may impose any condition before granting a stay of the
37-11 order.
37-12 (f) After the hearing, the executive secretary shall affirm,
37-13 modify, or set aside in whole or part the summary suspension order.
37-14 An order affirming or modifying the summary suspension order is
37-15 final for purposes of enforcement and appeal.
37-16 SECTION 22. Section 6.08(l), Texas Racing Act (Article 179e,
37-17 Vernon's Texas Civil Statutes), is amended to read as follows:
37-18 (l) An association may not make a deduction or withhold any
37-19 percentage of a purse from the account into which the purse paid to
37-20 a horse owner is deposited for membership payments, dues,
37-21 assessments, or any other payments to any [an] organization except
37-22 an organization of the horse owner's choice recognized by the
37-23 commission as an official representative of the horsemen licensed
37-24 by the commission.
37-25 SECTION 23. Section 6.091(a), Texas Racing Act (Article
37-26 179e, Vernon's Texas Civil Statutes), is amended to read as
37-27 follows:
38-1 (a) An association shall distribute from the total amount
38-2 deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
38-3 from each simulcast pari-mutuel pool the following shares:
38-4 (1) an amount equal to one percent of each pool as the
38-5 amount set aside for the state;
38-6 (2) an amount equal to 0.25 percent of each pool set
38-7 aside to reimburse the general revenue fund for amounts that are
38-8 appropriated for the administration and enforcement of this Act and
38-9 that are in excess of the cumulative amount of funds deposited in
38-10 the Texas Racing Commission fund, until the excess amount and
38-11 interest on the excess amount are fully reimbursed [to the Texas
38-12 Commission on Alcohol and Drug Abuse to be expended for the
38-13 prevention of problem gambling];
38-14 (3) if the association is a horse racing association,
38-15 an amount equal to one percent of a multiple two wagering pool or
38-16 multiple three wagering pool as the amount set aside for the
38-17 Texas-bred program to be used as provided by Section 6.08(f) of
38-18 this Act;
38-19 (4) if the association is a greyhound association, an
38-20 amount equal to one percent of a multiple two wagering pool or a
38-21 multiple three wagering pool as the amount set aside for the
38-22 Texas-bred program for greyhound races, to be distributed and used
38-23 in accordance with rules of the commission adopted to promote
38-24 greyhound breeding in this state; and
38-25 (5) the remainder as the amount set aside for purses,
38-26 expenses, the sending association, and the receiving location
38-27 pursuant to a contract approved by the commission between the
39-1 sending association and the receiving location.
39-2 SECTION 24. Article 6, Texas Racing Act (Article 179e,
39-3 Vernon's Texas Civil Statutes), is amended by adding Section 6.092
39-4 to read as follows:
39-5 Sec. 6.092. OVERSIGHT OF USE OF FUNDS GENERATED BY
39-6 PARI-MUTUEL RACING. (a) The commission shall adopt reporting,
39-7 monitoring, and auditing requirements or other appropriate
39-8 performance measures for any funds distributed to or used by or any
39-9 function or service provided by the expenditure of any funds
39-10 distributed to or used by any organization that receives funds
39-11 generated by live or simulcast pari-mutuel racing.
39-12 (b) The commission shall adopt the requirements or
39-13 performance measures after consultation with the affected
39-14 organization. In adopting the rules, the commission shall give
39-15 consideration to the concerns of the affected organization.
39-16 (c) An organization receiving funds generated by live or
39-17 simulcast pari-mutuel racing shall annually file with the
39-18 commission a copy of an audit report prepared by an independent
39-19 certified public accountant. The audit shall include a
39-20 verification of any performance report sent to or required by the
39-21 commission.
39-22 (d) The commission may review any records or books of an
39-23 organization that submits an independent audit to the commission as
39-24 the commission determines necessary to confirm or further
39-25 investigate the findings of an audit or report.
39-26 (e) The commission by rule may suspend or withhold funds
39-27 from an organization that:
40-1 (1) it determines has failed to comply with the
40-2 requirements or performance measures adopted under Subsection (a)
40-3 of this section; or
40-4 (2) has, following an independent audit or other
40-5 report to the commission, material questions raised on the use of
40-6 funds by the organization.
40-7 SECTION 25. Section 7.01, Texas Racing Act (Article 179e,
40-8 Vernon's Texas Civil Statutes), is amended to read as follows:
40-9 Sec. 7.01. License required. A person shall not participate
40-10 in racing with pari-mutuel wagering [as regulated by this Act]
40-11 without first obtaining a license from the commission. [A person
40-12 who violates this section commits an offense.]
40-13 SECTION 26. Section 7.02, Texas Racing Act (Article 179e,
40-14 Vernon's Texas Civil Statutes), is amended by amending Subsection
40-15 (a) and adding Subsections (c) and (d) to read as follows:
40-16 (a) Each person, other than a spectator or person placing a
40-17 wager, involved in any capacity with racing with pari-mutuel
40-18 wagering under[, other than as a spectator, as regulated by] this
40-19 Act[,] must obtain a license under this article. [A person who
40-20 violates this subsection commits an offense.]
40-21 (c) If an examination is required for the issuance of a
40-22 license under this article, not later than the 30th day after the
40-23 date on which a licensing examination is administered under this
40-24 Act, the commission shall notify each examinee of the results of
40-25 the examination.
40-26 (d) If requested in writing by a person who fails a
40-27 licensing examination administered under this Act, the commission
41-1 shall furnish the person with an analysis of the person's
41-2 performance on the examination.
41-3 SECTION 27. Section 7.04, Texas Racing Act (Article 179e,
41-4 Vernon's Texas Civil Statutes), is amended to read as follows:
41-5 Sec. 7.04. Licenses; grounds for denial, revocation, and
41-6 suspension. The commission, after notice and hearing, may refuse
41-7 to issue any original or renewal license under this article or may
41-8 revoke or suspend the license if it has reasonable grounds to
41-9 believe and finds that:
41-10 (1) the applicant has been convicted in a court of
41-11 competent jurisdiction of a violation of this Act or of any rule
41-12 adopted by the commission or has aided, abetted, or conspired with
41-13 any person to commit such a violation;
41-14 (2) the applicant has been convicted of a felony or of
41-15 any crime involving moral turpitude that is reasonably related to
41-16 the applicant's present fitness to hold a license under this Act;
41-17 (3) the applicant has violated or has caused to be
41-18 violated this Act or a rule of the commission in a manner that
41-19 involves moral turpitude, as distinguished from a technical
41-20 violation of this Act or of a rule;
41-21 (4) the applicant is unqualified, by experience or
41-22 otherwise, to perform the duties required of a licensee under this
41-23 Act;
41-24 (5) the applicant failed to answer or has falsely or
41-25 incorrectly answered a question in an original or renewal
41-26 application;
41-27 (6) the applicant fails to disclose the true ownership
42-1 or interest in a greyhound or horse as required by the rules of the
42-2 commission;
42-3 (7) the applicant is indebted to the state for any
42-4 fees or for the payment of a penalty imposed by this Act or by a
42-5 rule of the commission;
42-6 (8) the applicant is not of good moral character or
42-7 the applicant's reputation as a peaceable, law-abiding citizen in
42-8 the community where the applicant resides is bad;
42-9 (9) the applicant is in the habit of using alcoholic
42-10 beverages to an excess or uses a controlled substance as defined in
42-11 Chapter 481, Health and Safety Code, or a dangerous drug as defined
42-12 in Chapter 483, Health and Safety Code, or is mentally
42-13 incapacitated;
42-14 (10) the applicant may be excluded from a track
42-15 enclosure under Article 13 or 14 of this Act;
42-16 (11) the commission determines that the applicant has
42-17 improperly used a temporary pass, license certificate, credential,
42-18 or identification card issued under this Act;
42-19 (12) the applicant is residentially domiciled with a
42-20 person whose license has been revoked for cause within the 12
42-21 months immediately preceding the date of the present application;
42-22 (13) the applicant has failed or refused to furnish a
42-23 true copy of the application to the commission's district office in
42-24 the district in which the premises for which the permit is sought
42-25 are located; or
42-26 (14) the applicant is engaged or has engaged in
42-27 activities or practices that are detrimental to the best interests
43-1 of the public and the sport of horse racing or greyhound racing.
43-2 SECTION 28. Section 7.05, Texas Racing Act (Article 179e,
43-3 Vernon's Texas Civil Statutes), is amended to read as follows:
43-4 Sec. 7.05. License fees. (a) The commission shall adopt by
43-5 rule a fee schedule for licenses issued under this article.
43-6 (b) The commission shall base the license fees on the
43-7 relative or comparative incomes or property interests of the
43-8 various categories of licensees, with the lower income category of
43-9 licensees being charged nearer the minimum fee and the higher
43-10 income category of licensees charged nearer the maximum fee.
43-11 (c) In setting the fee schedule under Subsection (a) of this
43-12 section, the commission shall include the cost of criminal history
43-13 checks determined under Section 5.05 of this Act. The commission
43-14 may determine the best method for recouping this cost and complying
43-15 with the other provisions of this section, including collecting the
43-16 costs over an extended period.
43-17 SECTION 29. Section 7.07, Texas Racing Act (Article 179e,
43-18 Vernon's Texas Civil Statutes), is amended to read as follows:
43-19 Sec. 7.07. Term of license. (a) A license issued under
43-20 this article is valid for a period set by the commission not to
43-21 exceed 36 months following the date of its issuance. It is
43-22 renewable on application and payment of the fee in accordance with
43-23 the rules of the commission.
43-24 (b) The commission by rule may adopt a system under which
43-25 licenses expire on various dates during the year. For the year in
43-26 which the license expiration date is changed, license fees shall be
43-27 prorated on a monthly basis so that each licensee pays only that
44-1 portion of the license fee that is allocable to the number of
44-2 months during which the license is valid. On renewal of the
44-3 license on the new expiration date, the total license renewal fee
44-4 is payable.
44-5 SECTION 30. Article 7, Texas Racing Act (Article 179e,
44-6 Vernon's Texas Civil Statutes), is amended by adding Section 7.10
44-7 to read as follows:
44-8 Sec. 7.10. RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
44-9 (a) The commission may waive any prerequisite to obtaining a
44-10 license for an applicant, including any requirement to submit a set
44-11 of fingerprints, after reviewing the applicant's credentials and
44-12 determining that the applicant holds a valid license from another
44-13 state that has license requirements substantially equivalent to
44-14 those of this state.
44-15 (b) The commission may waive any prerequisite to obtaining a
44-16 license, including any requirement to submit a set of fingerprints,
44-17 for an applicant with a valid license from another state with which
44-18 the State of Texas has a reciprocity agreement. The commission may
44-19 enter into reciprocal agreements with other states to allow for
44-20 licensing by reciprocity.
44-21 SECTION 31. Section 9.01, Texas Racing Act (Article 179e,
44-22 Vernon's Texas Civil Statutes), is amended to read as follows:
44-23 Sec. 9.01. Texas-bred horses. Subject to this Act and any
44-24 rule of the commission, the [The] state horse breed registries
44-25 shall make reasonable rules to establish the qualifications of
44-26 accredited Texas-bred horses to promote, develop, and improve the
44-27 breeding of horses in this state. Rules adopted by a registry are
45-1 subject to commission approval.
45-2 SECTION 32. Section 10.04, Texas Racing Act (Article 179e,
45-3 Vernon's Texas Civil Statutes), is amended to read as follows:
45-4 Sec. 10.04. Texas-bred greyhounds. Subject to this Act or
45-5 any rule of the commission, the [The] state greyhound breed
45-6 registry shall make reasonable rules to establish the
45-7 qualifications of accredited Texas-bred greyhounds to promote,
45-8 develop, and improve the breeding of greyhounds in this state.
45-9 Rules adopted by the registry are subject to commission approval.
45-10 SECTION 33. Section 11.011, Texas Racing Act (Article 179e,
45-11 Vernon's Texas Civil Statutes), is amended by amending Subsection
45-12 (g) and adding Subsections (h), (i), (j), (k), and (l) to read as
45-13 follows:
45-14 (g) Nothing in this Act is to be construed to prohibit
45-15 [allow] wagering on a simulcast horse race at a greyhound racetrack
45-16 in this state, or to prohibit [permit] wagering on a simulcast
45-17 greyhound race at a horse racetrack in this state. A horse
45-18 racetrack may not be required to accept a greyhound simulcast
45-19 signal, nor may a greyhound racetrack be required to accept a horse
45-20 simulcast signal.
45-21 (h) A horse racetrack that offers wagering on simulcast
45-22 greyhound races must purchase the greyhound simulcast race signal
45-23 pursuant to an agreement with the greyhound racetrack nearest to
45-24 the horse racetrack. If an agreement between the horse racetrack
45-25 and the nearest greyhound racetrack cannot be reached concerning
45-26 the terms of the purchase of simulcast signals by September 1 of
45-27 the year preceding the calendar year in which simulcasting of the
46-1 greyhound race signal is to occur, the horse racetrack may purchase
46-2 and conduct wagering on a simulcast greyhound signal from any
46-3 greyhound racetrack in the state with which the horse racetrack can
46-4 reach an agreement.
46-5 (i) A greyhound racetrack that offers wagering on simulcast
46-6 horse races must purchase the horse simulcast race signal pursuant
46-7 to an agreement with the Class 1 racetrack nearest to the greyhound
46-8 racetrack. If an agreement between the greyhound racetrack and the
46-9 nearest Class 1 racetrack cannot be reached concerning the terms of
46-10 the purchase of simulcast signals by September 1 of the year
46-11 preceding the calendar year in which simulcasting of the horse race
46-12 signal is to occur, the greyhound racetrack may purchase and
46-13 conduct wagering on a simulcast horse signal from any Class 1
46-14 racetrack in the state with which the greyhound racetrack can reach
46-15 an agreement.
46-16 (j) A horse racetrack that offers wagering on interstate
46-17 greyhound simulcast races must offer wagering on all Texas
46-18 greyhound races made available for simulcast wagering. A greyhound
46-19 racetrack that offers wagering on interstate horse simulcast races
46-20 must offer wagering on all Texas horse races made available for
46-21 simulcast wagering.
46-22 (k) Wagering on a simulcast greyhound race at a horse
46-23 racetrack that conducts its inaugural meet within 12 months of the
46-24 effective date of this Act or at an operational horse racetrack
46-25 within 60 miles of such racetrack may be conducted only pursuant to
46-26 an agreement between said racetracks.
46-27 (l) Notwithstanding other provisions of law, a greyhound
47-1 racing association and the state greyhound breed registry must by
47-2 contract agree that each simulcast contract to which the greyhound
47-3 racing association is a party, including a simulcast contract with
47-4 a horse racing association or a simulcast contract with another
47-5 greyhound racing association, include terms that provide adequately
47-6 for the development of greyhound racing in this state. If a
47-7 greyhound racing association and the state greyhound breed registry
47-8 fail to reach an agreement, the racing association or the breed
47-9 registry may submit the contract negotiations for binding
47-10 arbitration under Chapter 171, Civil Practice and Remedies Code,
47-11 and rules adopted by the commission. The arbitration must be
47-12 conducted by a board of three arbitrators. The greyhound racing
47-13 association shall appoint one arbitrator. The state greyhound
47-14 breed registry shall appoint one arbitrator. The arbitrators
47-15 appointed by the greyhound racing association and the state
47-16 greyhound breed registry shall appoint the third arbitrator. A
47-17 greyhound racing association and the state greyhound breed registry
47-18 shall each pay their own arbitration expenses. The greyhound
47-19 racing association and the state greyhound breed registry shall
47-20 equally pay the arbitrator fees and costs.
47-21 SECTION 34. Section 11.06, Texas Racing Act (Article 179e,
47-22 Vernon's Texas Civil Statutes), is amended to read as follows:
47-23 Sec. 11.06. Minors. [(a)] The commission shall adopt rules
47-24 to prohibit wagering by a minor [prevent wagering by persons who
47-25 have not yet attained the minimum age required to purchase
47-26 alcoholic beverages in this state] and to prohibit [prevent] a
47-27 child [person under 16 years of age] from entering the viewing
48-1 section of a racetrack unless accompanied by the child's [person's]
48-2 parent or guardian. The rules may except any conduct described as
48-3 an affirmative defense by Section 14.13 of this Act [A person who
48-4 intentionally, knowingly, recklessly, or with criminal negligence
48-5 violates a rule adopted under this section commits an offense. An
48-6 offense under this section is a Class B misdemeanor].
48-7 [(b) A person commits an offense if the person intentionally
48-8 or knowingly engages in gaming at a racetrack when the person has
48-9 not yet attained the minimum age required to purchase alcoholic
48-10 beverages in this state. An offense under this subsection is a
48-11 Class C misdemeanor.]
48-12 SECTION 35. Section 11.08, Texas Racing Act (Article 179e,
48-13 Vernon's Texas Civil Statutes), is amended to read as follows:
48-14 Sec. 11.08. Money not claimed. Not later than the 61st day
48-15 after the closing day of a race meeting, an association shall pay
48-16 to the commission all distributable money [in a pari-mutuel pool]
48-17 that is subject to payment [to a claimant] under Section 11.07 of
48-18 this Act but that is not successfully claimed and that is not spent
48-19 on drug testing under the provisions of this Act.
48-20 SECTION 36. Section 11.09, Texas Racing Act (Article 179e,
48-21 Vernon's Texas Civil Statutes), is amended to read as follows:
48-22 Sec. 11.09. No liability to prosecution. The defense to
48-23 prosecution under Chapter 47, Penal Code, that the conduct was
48-24 authorized under this Act is available only to a person who is:
48-25 (1) [A person] lawfully conducting or participating in
48-26 the conduct of pari-mutuel wagering in connection with horse racing
48-27 or greyhound racing; or
49-1 (2) permitting the lawful conduct of an activity
49-2 described by Subdivision (1) of this section on any racetrack
49-3 facility [on any premises owned or leased by him or it under any
49-4 license lawfully issued under this Act is not liable to prosecution
49-5 for that conduct].
49-6 SECTION 37. Section 13.03, Texas Racing Act (Article 179e,
49-7 Vernon's Texas Civil Statutes), is amended to read as follows:
49-8 Sec. 13.03. CRIMINAL TRESPASS [Entry after ejection].
49-9 [(a)] A person, for the purposes of Section 30.05, Penal Code, is
49-10 presumed to have received notice that entry to an enclosure was
49-11 forbidden if the person:
49-12 (1) was excluded or ejected from the enclosure under
49-13 this Act;
49-14 (2) possessed, displayed, or used in the enclosure a
49-15 credential that the person was not authorized to use; or
49-16 (3) entered the enclosure using a falsified
49-17 credential. [who has been excluded or ejected from an enclosure
49-18 under this article commits an offense if the person knowingly
49-19 enters an enclosure of the same or another licensed racetrack
49-20 unless the commission or a final judgment of a court has ordered
49-21 that the rule does not apply to the person.]
49-22 [(b) An offense under this section is a Class A misdemeanor.]
49-23 [(c) The provisions of Section 7.22, Penal Code, imposing
49-24 criminal responsibility on a corporation or association for an
49-25 offense committed by its agent apply to conduct constituting an
49-26 offense under this section that is performed by an agent of a
49-27 corporation or association.]
50-1 SECTION 38. Article 14, Texas Racing Act (Article 179e,
50-2 Vernon's Texas Civil Statutes), is amended to read as follows:
50-3 ARTICLE 14. CRIMINAL [TOUTING AND OTHER] OFFENSES
50-4 Sec. 14.01. Touting. (a) A person commits an offense if,
50-5 with an intent to deceive and an intent to obtain a benefit
50-6 [knowing the information is false], the person knowingly makes a
50-7 false statement [or intentionally conveys] or offers, agrees to
50-8 convey, or conveys false information about a greyhound race or
50-9 horse race to another [others for compensation].
50-10 (b) Except as provided by Subsection (c) of this section, an
50-11 offense under this section is a Class A misdemeanor [felony of the
50-12 third degree].
50-13 (c) An offense under this section is a state jail felony [of
50-14 the second degree] if:
50-15 (1) the actor is a licensee under this Act or an
50-16 employee or member of the commission and the actor knowingly
50-17 represents that a member [an official] or employee of the
50-18 commission or a [of an association or an owner, trainer, jockey, or
50-19 other] person licensed by the commission is the source of the false
50-20 information; or
50-21 (2) the false statement or information was contained
50-22 in racing selection information provided to the public. [the actor
50-23 previously has been finally convicted of an offense under this
50-24 section or has been convicted of a felony for which the punishment
50-25 received was a suspended sentence, probation, or a nonadjudicated
50-26 conviction which has not yet been fully served.]
50-27 [(d) The provisions of Section 7.22, Penal Code, imposing
51-1 criminal responsibility on a corporation or association for an
51-2 offense committed by its agent apply to conduct constituting an
51-3 offense under this section that is performed by an agent of a
51-4 corporation or association.]
51-5 Sec. 14.02. Unlawful Possession or use of credential.
51-6 (a) A person commits an offense if the person knowingly or
51-7 intentionally possesses or displays a [license or] credential or
51-8 false credential that identifies [has been issued or purports to
51-9 have been issued by the commission and represents that] the person
51-10 as [is] the holder of the [license or] credential and [when] the
51-11 person knows:
51-12 (1) that the [license or] credential is not issued to
51-13 the person; or
51-14 (2) the person is not a licensee [if the person
51-15 impersonates in any way a person holding a license or credential
51-16 issued by the commission].
51-17 (b) An offense under this section is a Class C misdemeanor
51-18 [felony of the third degree].
51-19 [(c) The provisions of Section 7.22, Penal Code, imposing
51-20 criminal responsibility on a corporation or association for an
51-21 offense committed by its agent apply to conduct constituting an
51-22 offense under this section that is performed by an agent of a
51-23 corporation or association.]
51-24 [Sec. 14.03. ILLEGAL INFLUENCE OF RACE OUTCOME. (a) The
51-25 commission shall adopt rules prohibiting the illegal influencing of
51-26 the outcome of a race, including but not limited to the use of
51-27 medication, stimulants, or depressants to attempt to or to
52-1 influence illegally the outcome of a race.]
52-2 [(b) The commission may require prerace testing by any
52-3 invasive or noninvasive method or methods to determine whether such
52-4 a drug, chemical, or other substance has been administered. The
52-5 commission shall require postrace testing by such method or
52-6 methods. The commission shall adopt rules that require all such
52-7 tests to be conducted using state-of-the-art methods. On any
52-8 positive test showing the presence of prohibited drugs, chemicals,
52-9 or other substances, the stewards or racing judges may summarily
52-10 suspend any person who has administered or applied the drug,
52-11 chemical, or other substance or any electric device or spur pending
52-12 hearing by the stewards or judges with the right of appeal to the
52-13 commission. Such a suspension may be stayed, in the discretion of
52-14 the commission only, during the pendency of such appeal. In
52-15 addition, the stewards or racing judges may disqualify the affected
52-16 animal pursuant to rules adopted by the commission under this
52-17 section. The commission may require that urine samples be frozen
52-18 and maintained for a period that will enable veterinarians and
52-19 chemists to conduct follow-up tests to detect and identify
52-20 prohibited drugs. All other specimens shall be maintained for
52-21 testing purposes in the manner prescribed by the commission. In the
52-22 event a sample tests positive for a drug, chemical, or other
52-23 substance, all samples, including the split portion, shall be
52-24 maintained until the matter is finally adjudicated. A licensee
52-25 whose animal has tested positive for a drug, chemical, or other
52-26 substance is entitled to have a split portion of the sample tested
52-27 at a testing facility authorized to perform drug testing under
53-1 Section 3.07 of this Act and selected by the licensee. The
53-2 commission shall adopt rules regarding the procedure for the split
53-3 testing.]
53-4 [(c) The official licensed trainer of each such animal is
53-5 deemed by law to be the absolute insurer that no prohibited drug,
53-6 chemical, or other substance has been administered and shall be
53-7 responsible to see that such a drug, chemical, or other substance
53-8 is not administered.]
53-9 [(d) By applying for a license under this Act, each
53-10 occupational licensee consents to both prerace and postrace search
53-11 for the purpose of determining the presence of such a drug,
53-12 chemical, or other substance or of any electrical device or other
53-13 device that might have the effect of unnaturally depressing,
53-14 stimulating, or exciting any animal during a race. The commission
53-15 shall adopt rules relating to drug testing for occupational
53-16 licensees.]
53-17 [(e) A person who knowingly violates a rule adopted under
53-18 this section may be barred, either for a period set by the
53-19 commission or for life, from receiving any license under this Act
53-20 or may be barred for a period set by the commission or for life
53-21 from any premises licensed under this Act, or both.]
53-22 [(f) A person who knowingly violates a rule adopted under
53-23 this section commits a felony of the third degree for the first
53-24 offense and a felony of the second degree for a second or
53-25 subsequent offense.]
53-26 [(g) A person who gives, offers or promises to give, or
53-27 attempts to give or offer any money, bribe, or thing of value to
54-1 any jockey, trainer, owner, groom, or other person associated with
54-2 or interested in any stable, kennel, horse, or dog, or race in
54-3 which any horse or dog participates, with the intention or
54-4 understanding or agreement that such individual shall not use his
54-5 best efforts to win such race, or shall so conduct himself in such
54-6 race that any other participant shall thereby be assisted or
54-7 enabled to win such race, or shall so conduct himself in such race
54-8 as to limit his finishing or placing in such race commits an
54-9 offense. Such an offense is a felony of the third degree.]
54-10 [(h) A person who accepts, attempts to accept, offers to
54-11 accept, or agrees to accept any money, bribe, or thing of value,
54-12 with the intention or understanding or agreement that he will not
54-13 use his best efforts to win any horse or dog race, in which he is
54-14 the jockey, trainer, groom, owner, or other interested party or is
54-15 about to participate in, or will so conduct himself in such race
54-16 that any other horse or dog shall thereby be assisted or enabled to
54-17 win such race, or will so conduct himself in such race as to limit
54-18 his finishing or placing in such race commits an offense. Such an
54-19 offense is a felony of the third degree.]
54-20 [(i) A person who gives, offers to give, promises to give,
54-21 or attempts to give any money, bribe, or thing of value to any
54-22 person who is presiding or officiating at or who is about to
54-23 preside or officiate at any dog or horse race with the intention or
54-24 agreement or understanding that such person shall corruptly or
54-25 dishonestly preside or officiate at any such race with the
54-26 intention or purpose that the result of the race will be affected
54-27 or influenced thereby commits an offense. Such an offense is a
55-1 felony of the third degree.]
55-2 Sec. 14.04. Illegal access. (a) A person commits an
55-3 offense if the person is a licensee and the person [licensee who]
55-4 knowingly or intentionally permits, facilitates, or allows access,
55-5 to an enclosure where races are conducted, to another [a] person
55-6 who the person knows:
55-7 (1) has engaged in bookmaking, touting, or illegal
55-8 wagering;
55-9 (2) derives[, whose] income [is] from illegal
55-10 activities or enterprises;
55-11 (3) [, or who] has been convicted of a violation of
55-12 this Act; or
55-13 (4) is excluded by the commission from entering a
55-14 racetrack facility[, commits an offense].
55-15 (b) An offense under this section is a Class B misdemeanor
55-16 [felony of the third degree].
55-17 Sec. 14.05. RACES CONDUCTED ON CERTAIN INDIAN LANDS. (a) A
55-18 person who is subject to this section commits an offense if the
55-19 person intentionally or knowingly wagers on the result of a
55-20 greyhound race or horse race conducted in this state that:
55-21 (1) is held on an American Indian reservation or on
55-22 American Indian trust land located in this state; and
55-23 (2) is not held under the supervision of the
55-24 commission under rules adopted under this Act.
55-25 (b) An offense under this section is a felony of the third
55-26 degree.
55-27 (c) It is an exception to the application of this section
56-1 that the person is a member of a recognized Texas Indian tribe who
56-2 lives on a reservation or on trust lands located in this state.
56-3 Sec. 14.06. False statements. (a) A person commits an
56-4 offense if the person [intentionally,] knowingly[, recklessly, or
56-5 with criminal negligence] makes a material and false, incorrect, or
56-6 deceptive statement to another who is conducting an investigation
56-7 or exercising discretion under this Act or a rule adopted under
56-8 this Act.
56-9 (b) In this section, the [The] term "statement" means a
56-10 representation of fact and includes[, but is not limited to]:
56-11 (1) a written or oral statement [statements]; or
56-12 (2) a sworn or unsworn statement [statements].
56-13 (c) An offense under this section is a state jail felony
56-14 unless the statement was material in a commission action relating
56-15 to a racetrack license, in which event, the offense is a felony of
56-16 the third degree.
56-17 Sec. 14.07. HINDERING OF ENTRY OR SEARCH. (a) A person
56-18 commits an offense if the person [intentionally, knowingly,
56-19 recklessly, or] with criminal negligence refuses, denies, or
56-20 hinders entry to another who is exercising or attempting to
56-21 exercise a power of entry under this Act or a commission rule.
56-22 (b) A person commits an offense if the person with criminal
56-23 negligence refuses, denies, hinders, interrupts, disrupts, impedes,
56-24 or otherwise interferes with a search by a person exercising or
56-25 attempting to exercise a power to search under this Act or a
56-26 commission rule.
56-27 (c) [(b)] An offense under this section is a Class B
57-1 misdemeanor.
57-2 Sec. 14.08. FORGING PARI-MUTUEL TICKET. (a) A person
57-3 commits an offense if the person intentionally or knowingly forges
57-4 a pari-mutuel ticket with the intent to defraud or harm another.
57-5 (b) In this section, "forge" has the meaning assigned by
57-6 Section 32.21, Penal Code.
57-7 (c) An offense under this section is a felony of the third
57-8 degree.
57-9 Sec. 14.09. IMPERSONATING A LICENSEE. (a) A person commits
57-10 an offense if the person impersonates a licensee with the intent to
57-11 induce another person to submit to the actor's purported authority
57-12 as a licensee or to rely on the actor's actions as an alleged
57-13 licensee.
57-14 (b) An offense under this section is a Class A misdemeanor.
57-15 Sec. 14.10. UNLAWFUL INFLUENCE ON RACING. (a) A person
57-16 commits an offense if the person possesses a prohibited device or
57-17 prohibited substance on a racetrack facility.
57-18 (b) An offense under Subsection (a) of this section is a
57-19 state jail felony, unless the actor possessed the device or
57-20 substance with the intent to influence or affect the outcome of a
57-21 horse or greyhound race in a manner contrary to this Act or a
57-22 commission rule, in which event it is a felony of the third degree.
57-23 (c) A person commits an offense if, with the intent to
57-24 influence or affect a horse or greyhound race in a manner contrary
57-25 to this Act or a commission rule, the person:
57-26 (1) uses or offers to use a prohibited device; or
57-27 (2) uses or offers to use a prohibited substance.
58-1 (d) An offense under Subsection (c) of this section is a
58-2 felony of the third degree.
58-3 Sec. 14.11. BRIBERY AND CORRUPT INFLUENCE. (a) A person
58-4 commits an offense if, with the intent to influence or affect the
58-5 outcome of a race in a manner contrary to this Act or a commission
58-6 rule, the person offers, confers, agrees to confer on another, or
58-7 solicits, accepts, or agrees to accept from another person any
58-8 benefit as consideration for the actions of a person who receives
58-9 the benefit relating to the conduct, decision, opinion,
58-10 recommendation, vote, or exercise of discretion as a licensee or
58-11 other person associated with or interested in any stable, kennel,
58-12 horse, greyhound, or horse or greyhound race.
58-13 (b) An offense under this section is a state jail felony,
58-14 unless the recipient of the benefit is a steward, judge, or other
58-15 racetrack official exercising authority over a horse or greyhound
58-16 race that the person providing or offering the benefit intended to
58-17 influence, in which event it is a felony of the third degree.
58-18 Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is
58-19 a member of the commission commits an offense if the person:
58-20 (1) accepts, directly or indirectly, employment or
58-21 remuneration from a racetrack facility, association, or other
58-22 licensee, including a facility, association, or licensee located or
58-23 residing in another state;
58-24 (2) wagers or causes a wager to be placed on the
58-25 outcome of a horse or greyhound race conducted in this state; or
58-26 (3) accepts or is entitled to any part of a purse to
58-27 be paid to an animal in a race conducted in this state.
59-1 Sec. 14.13. OFFENSES INVOLVING A MINOR. (a) A person
59-2 commits an offense if the person with criminal negligence permits,
59-3 facilitates, or allows:
59-4 (1) wagering by a minor at a racetrack facility; or
59-5 (2) entry by a child to the viewing section of a
59-6 racetrack facility.
59-7 (b) An offense under Subsection (a) of this section is a
59-8 Class B misdemeanor.
59-9 (c) A person commits an offense if the person is a minor and
59-10 intentionally or knowingly engages in wagering at a racetrack.
59-11 (d) An offense under Subsection (c) of this section is a
59-12 Class C misdemeanor.
59-13 (e) It is an affirmative defense to prosecution of an
59-14 offense under Subsection (a)(2) that a child was accompanied by and
59-15 was in the physical presence of a parent, guardian, or spouse who
59-16 was 21 years of age or older.
59-17 (f) It is an affirmative defense to prosecution of an
59-18 offense under Subsection (a) of this section that the minor falsely
59-19 represented the minor's age by displaying to the person an
59-20 apparently valid Texas driver's license or identification card
59-21 issued by the Department of Public Safety that contains a physical
59-22 description consistent with the minor's appearance.
59-23 Sec. 14.14. UNLAWFUL RACING. A person commits an offense
59-24 if:
59-25 (1) the person participates, permits, or conducts a
59-26 greyhound or horse race at a licensed racetrack facility;
59-27 (2) the person wagers on the partial or final outcome
60-1 of the horse or greyhound race or knows or reasonably should know
60-2 that another is betting on the partial or final outcome of the
60-3 race; and
60-4 (3) the race is not part of a performance or meeting
60-5 conducted under this Act or commission rule.
60-6 Sec. 14.15. PARI-MUTUEL RACING WITHOUT LICENSE. (a) A
60-7 person commits an offense if, without a license, the person
60-8 participates or is otherwise involved in, in any capacity,
60-9 greyhound racing or horse racing with pari-mutuel wagering.
60-10 (b) It is an affirmative defense to prosecution under
60-11 Subsection (a) of this section that the actor was a spectator or a
60-12 person placing a wager.
60-13 (c) An offense under Subsection (a) of this section is a
60-14 Class A misdemeanor, unless the actor was required by this Act to
60-15 obtain a racetrack license, in which event it is a state jail
60-16 felony.
60-17 Sec. 14.16. RACING WITHOUT LICENSE. (a) A person commits an
60-18 offense if the person:
60-19 (1) conducts a greyhound or horse race without a
60-20 racetrack license; and
60-21 (2) knows or reasonably should know that another
60-22 person is betting on the final or partial outcome of the race.
60-23 (b) An offense under this section is a felony of the third
60-24 degree.
60-25 Sec. 14.17. FAILURE TO DISPLAY CREDENTIAL. (a) A person
60-26 commits an offense if the person intentionally or knowingly:
60-27 (1) fails or refuses to display a credential to
61-1 another after a lawful request; or
61-2 (2) fails or refuses to give the person's name,
61-3 residence address, or date of birth to another after a lawful
61-4 request.
61-5 (b) In this section, "lawful request" means a request from
61-6 the commission, an authorized agent of the commission, the director
61-7 or a commissioned officer of the Department of Public Safety, a
61-8 peace officer, or a steward or judge at any time and any restricted
61-9 location that:
61-10 (1) is on a racetrack facility; and
61-11 (2) is not a public place.
61-12 (c) Except as provided by Subsection (d) of this section, an
61-13 offense under this section is a Class B misdemeanor.
61-14 (d) At the punishment stage of a trial for an offense under
61-15 Subsection (a)(1) of this section the defendant may raise an issue
61-16 as to whether the defendant was a licensee at the time of the
61-17 offense. If the defendant proves the issue, the offense is a Class
61-18 C misdemeanor.
61-19 Sec. 14.18. SEARCH AND SEIZURE. (a) A person consents to a
61-20 search at a time and location described in Subsection (b) of this
61-21 section for a prohibited device, prohibited substance, or other
61-22 contraband if the person:
61-23 (1) accepts a license or other credential issued under
61-24 this Act; or
61-25 (2) enters a racetrack facility under the authority of
61-26 a license or other credential alleged to have been issued under
61-27 this Act.
62-1 (b) A search may be conducted by a commissioned officer of
62-2 the Department of Public Safety or a peace officer, including a
62-3 peace officer employed by the commission, at any time and at any
62-4 location that is on a racetrack facility, except a location:
62-5 (1) excluded by commission rule from searches under
62-6 this section; or
62-7 (2) provided by an association under commission rule
62-8 for private storage of personal items belonging to a licensee
62-9 entering a racetrack facility.
62-10 (c) A person conducting a search under Subsection (b) of
62-11 this section may seize any prohibited device, prohibited substance,
62-12 or other contraband discovered during the search.
62-13 Sec. 14.19. PROSECUTION. A person who is subject to
62-14 prosecution for a penal offense under this Act and another law may
62-15 be prosecuted under either law.
62-16 Sec. 14.20. COMMISSION AUTHORITY. This article may not be
62-17 construed to restrict the commission's administrative authority to
62-18 enforce this Act or commission rules to the fullest extent
62-19 authorized by this Act.
62-20 SECTION 39. Section 15.01, Texas Racing Act (Article 179e,
62-21 Vernon's Texas Civil Statutes), is amended to read as follows:
62-22 Sec. 15.01. GENERAL PENALTY. If [With regard to any
62-23 provision of this Act that is a penal offense, if] no specific
62-24 penalty is provided for a provision of this Act that is a penal
62-25 offense, a person who violates the [such a] provision commits a
62-26 state jail felony [of the third degree].
62-27 SECTION 40. Section 18.01(a), Texas Racing Act (Article
63-1 179e, Vernon's Texas Civil Statutes), is amended to read as
63-2 follows:
63-3 (a) The Texas Racing Commission is subject to Chapter 325,
63-4 Government Code (Texas Sunset Act). Unless continued in existence
63-5 as provided by that chapter, and except as provided by Subsections
63-6 (b) and (c) of this section, the commission is abolished and this
63-7 Act expires September 1, 2005 [1997].
63-8 SECTION 41. Section 481.172, Government Code, is amended to
63-9 read as follows:
63-10 Sec. 481.172. Duties. The department shall:
63-11 (1) promote and advertise within the United States and
63-12 in foreign countries, by radio, television, newspaper, and other
63-13 means considered appropriate, tourism in this state by non-Texans,
63-14 including persons from foreign countries, and distribute
63-15 promotional materials through appropriate agencies, including the
63-16 United States Travel and Tourism Agency;
63-17 (2) encourage travel by Texans to this state's scenic,
63-18 historical, natural, agricultural, educational, recreational, and
63-19 other attractions;
63-20 (3) coordinate and stimulate orderly and accelerated
63-21 development of tourist attractions throughout this state;
63-22 (4) conduct a public relations campaign to create a
63-23 responsible and accurate national and international image of this
63-24 state;
63-25 (5) cooperate fully with the Parks and Wildlife
63-26 Department in all matters relating to promotion of tourism;
63-27 (6) cooperate with the Texas Transportation Commission
64-1 in the administration of the commission's collateral program of
64-2 highway map distribution and operation of travel information
64-3 bureaus and other tourist-related functions of the commission;
64-4 [and]
64-5 (7) encourage communities, organizations, and
64-6 individuals in this state to cooperate with its program by their
64-7 activities and use of their own funds and collaborate with those
64-8 organizations and other governmental entities in the pursuit of the
64-9 objectives of this subchapter; and
64-10 (8) promote and encourage the horse racing and
64-11 greyhound racing industry, if funds are appropriated for the
64-12 promotion or encouragement.
64-13 SECTION 42. Sections 2.07, 3.01, 11.04(d), 15.02, and 18.02,
64-14 Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
64-15 repealed.
64-16 SECTION 43. (a) This Act takes effect September 1, 1997.
64-17 (b) The changes in law made by this Act relating to the
64-18 qualifications and appointment of members to the Texas Racing
64-19 Commission do not affect the entitlement of a member of the
64-20 commission serving immediately before the effective date of this
64-21 Act to continue to serve on the commission for the term to which
64-22 the member was appointed. As the terms of members of the
64-23 commission expire or as vacancies on the commission occur, the
64-24 governor shall make appointments to the commission to achieve as
64-25 soon as possible the membership plan prescribed for the commission
64-26 by the Texas Racing Act (Article 179e, Vernon's Texas Civil
64-27 Statutes), as amended by this Act.
65-1 (c) The Texas Racing Commission shall review all of the
65-2 rules of the commission before January 1, 2002. The commission,
65-3 following the review, shall readopt, modify, or repeal the rules
65-4 before January 1, 2002. In reviewing the rules of the commission,
65-5 the commission shall, to the extent feasible, attempt to have
65-6 uniform approaches to the regulation of activities related to horse
65-7 racing and greyhound racing.
65-8 (d) The authority for rulemaking and licensing and for any
65-9 action relating exclusively to horse racing or exclusively to
65-10 greyhound racing that was granted to a separate section of the
65-11 Texas Racing Commission is transferred to the Texas Racing
65-12 Commission.
65-13 SECTION 44. (a) The changes in law made by this Act apply
65-14 only to an offense committed on or after the effective date of this
65-15 Act. For purposes of this section, an offense is committed before
65-16 the effective date of this Act if any element of the offense occurs
65-17 before the effective date.
65-18 (b) An offense committed before the effective date of this
65-19 Act is covered by the law in effect when the offense was committed,
65-20 and the former law is continued in effect for this purpose.
65-21 SECTION 45. The importance of this legislation and the
65-22 crowded condition of the calendars in both houses create an
65-23 emergency and an imperative public necessity that the
65-24 constitutional rule requiring bills to be read on three several
65-25 days in each house be suspended, and this rule is hereby suspended.