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. PURPOSE [PURPOSES]. The purpose [purposes] of
1-9 this Act is [are] to [encourage agriculture, the horse-breeding
1-10 industry, the horse-training industry, the greyhound-breeding
1-11 industry, tourism, and employment opportunities in this state
1-12 related to horse racing and greyhound racing and to] provide for
1-13 the strict regulation of horse racing and greyhound racing and the
1-14 control of pari-mutuel 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)-(78) 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, or
2-19 other substance that:
2-20 (A) in its use or intended use, is reasonably
2-21 capable of influencing or affecting the outcome of a race in a
2-22 manner contrary to this Act or a commission rule; and
2-23 (B) is prohibited by a commission rule
2-24 regulating the unlawful influence of a race.
2-25 (73) "Unlawful touting" means an offense described by
2-26 Section 14.01 of this Act or a similar offense under the laws of
2-27 another state.
3-1 (74) "Race" includes a live audio and visual signal of
3-2 a race.
3-3 (75) "Outstanding ticket" means a pari-mutuel ticket
3-4 not presented for payment before the end of the greyhound racing or
3-5 horse racing day for which the ticket was purchased.
3-6 (76) "Pari-mutuel voucher" means a bearer instrument
3-7 issued by a pari-mutuel wagering machine that represents money
3-8 owned by a wagering patron and held by an association, including
3-9 winnings from a pari-mutuel wager.
3-10 (77) "Horsemen's organization" means an organization
3-11 recognized by the commission that represents horse owners and
3-12 trainers in negotiating and contracting with associations on
3-13 subjects relating to racing and in representing and advocating the
3-14 interests of horse owners and trainers before administrative,
3-15 legislative, and judicial forums.
3-16 (78) "Cross-species simulcast signal" means a
3-17 simulcast signal of a horse race at a greyhound racetrack facility
3-18 or a simulcast signal of a greyhound race at a horse racetrack
3-19 facility.
3-20 SECTION 3. Sections 2.02(a) and (b), Texas Racing Act
3-21 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
3-22 as follows:
3-23 (a) The commission consists of six members appointed by the
3-24 governor with the advice and consent of the senate and two ex
3-25 officio members who shall have the right to vote. The ex officio
3-26 members are:
3-27 (1) the chairman of the Public Safety Commission or a
4-1 member of the Public Safety Commission designated by the chairman
4-2 of the Public Safety Commission; and
4-3 (2) the comptroller of public accounts or the
4-4 comptroller's designee. [In making appointments to the commission,
4-5 the governor shall strive to achieve representation by all the
4-6 population groups of the state with regard to economic status, sex,
4-7 race, and ethnicity.]
4-8 (b) Appointments to the commission shall be made without
4-9 regard to the race, color, disability, sex, religion, age, or
4-10 national origin of the appointees. [One appointed member must be a
4-11 veterinarian licensed to practice in this state who specializes in
4-12 the treatment of small animals. One appointed member must be a
4-13 veterinarian licensed to practice in this state who specializes in
4-14 the treatment of large animals. Two appointed members must be
4-15 individuals who are not veterinarians and who have special
4-16 knowledge or experience related to greyhound racing. Two appointed
4-17 members must be individuals who are not veterinarians and who have
4-18 special knowledge or experience related to horse racing.]
4-19 SECTION 4. Section 2.03, Texas Racing Act (Article 179e,
4-20 Vernon's Texas Civil Statutes), is amended to read as follows:
4-21 Sec. 2.03. Term of office. (a) Appointed [Except for the
4-22 initial appointments, appointed] members hold office for staggered
4-23 terms of six years with two members' terms expiring February 1 of
4-24 each odd-numbered year. A member holds office until that member's
4-25 successor is appointed and qualifies.
4-26 (b) [In making the initial appointments, the governor shall
4-27 designate two appointed members for a term expiring February 1,
5-1 1989, two for a term expiring February 1, 1991, and two for a term
5-2 expiring February 1, 1993. The governor shall make the initial
5-3 appointments on or before February 1, 1987.]
5-4 [(c)] The ex officio members hold office on the commission
5-5 for the time for which they hold their other offices.
5-6 SECTION 5. Section 2.05, Texas Racing Act (Article 179e,
5-7 Vernon's Texas Civil Statutes), is amended to read as follows:
5-8 Sec. 2.05. Eligibility. (a) Four of the appointed members
5-9 of the commission must be representatives of the general public and
5-10 have general knowledge of business or agribusiness. One additional
5-11 appointed member must have special knowledge or experience related
5-12 to greyhound racing and one additional appointed member must have
5-13 special knowledge or experience related to horse racing. A person
5-14 is not eligible for appointment as a member of the commission if
5-15 the person or the person's spouse:
5-16 (1) is licensed by the commission, except as a
5-17 commissioner;
5-18 (2) is employed by the commission or participates in
5-19 the management of a business entity or other organization regulated
5-20 by the commission or receiving funds from or through the
5-21 commission;
5-22 (3) owns or controls, directly or indirectly, more
5-23 than a 10 percent interest in a business entity or other
5-24 organization regulated by the commission or receiving funds from or
5-25 through the commission; or
5-26 (4) uses or receives a substantial amount of tangible
5-27 goods, services, or funds from or through the commission, other
6-1 than compensation or reimbursement authorized by law for commission
6-2 membership, attendance, or expenses.
6-3 (b) In addition to the eligibility requirements of
6-4 Subsection (a), a [A] person is not eligible to be an appointed
6-5 member of the commission if that person owns any financial interest
6-6 in a racetrack or its operation or if that person is related within
6-7 the second degree by affinity or the third degree by consanguinity,
6-8 as determined under Subchapter B, Chapter 573, Government Code
6-9 [Article 5996h, Revised Statutes], to a person who owns any
6-10 financial interest in a racetrack or its operation.
6-11 (c) Each person appointed to or employed by the commission
6-12 is subject to all background checks and qualification criteria
6-13 required to hold a racetrack license or other license under this
6-14 Act.
6-15 (d) A person who has been convicted of a felony or of any
6-16 crime involving moral turpitude is not eligible for appointment to
6-17 the commission.
6-18 SECTION 6. Article 2, Texas Racing Act (Article 179e,
6-19 Vernon's Texas Civil Statutes), is amended by adding Sections
6-20 2.071-2.074 to read as follows:
6-21 Sec. 2.071. CONFLICT OF INTEREST. (a) An officer,
6-22 employee, or paid consultant of a Texas trade association in the
6-23 field of horse or greyhound racing or breeding may not be a member
6-24 of the commission or an employee of the commission who is exempt
6-25 from the state's position classification plan or is compensated at
6-26 or above the amount prescribed by the General Appropriations Act
6-27 for step 1, salary group 17, of the position classification salary
7-1 schedule.
7-2 (b) A person who is the spouse of an officer, manager, or
7-3 paid consultant of a Texas trade association in the field of horse
7-4 or greyhound racing or breeding may not be a member of the
7-5 commission and may not be an employee of the commission who is
7-6 exempt from the state's position classification plan or is
7-7 compensated at or above the amount prescribed by the General
7-8 Appropriations Act for step 1, salary group 17, of the position
7-9 classification salary schedule.
7-10 (c) For the purposes of this section, a Texas trade
7-11 association is a nonprofit association of business or professional
7-12 competitors in this state designed to assist its members and its
7-13 industry or profession in dealing with mutual business or
7-14 professional problems and in promoting their common interest.
7-15 Sec. 2.072. LOBBYIST RESTRICTION. A person may not serve as
7-16 a member of the commission or act as the general counsel to the
7-17 commission if the person is required to register as a lobbyist
7-18 under Chapter 305, Government Code, because of the person's
7-19 activities for compensation on behalf of a profession related to
7-20 the operation of the commission.
7-21 Sec. 2.073. GROUNDS FOR REMOVAL. (a) It is a ground for
7-22 removal from the commission if a member:
7-23 (1) does not have at the time of appointment the
7-24 qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
7-25 (2) does not maintain during service on the commission
7-26 the qualifications required by Section 2.02 or 2.05 of this Act;
7-27 (3) violates a prohibition established by Section
8-1 2.05, 2.071, or 2.072 of this Act;
8-2 (4) cannot because of illness or disability discharge
8-3 the member's duties for a substantial part of the term for which
8-4 the member is appointed; or
8-5 (5) is absent from more than half of the regularly
8-6 scheduled commission meetings that the member is eligible to attend
8-7 during a calendar year.
8-8 (b) The validity of an action of the commission is not
8-9 affected by the fact that it is taken when a ground for removal of
8-10 a commission member exists.
8-11 (c) If the executive secretary has knowledge that a
8-12 potential ground for removal exists, the executive secretary shall
8-13 notify the presiding officer of the commission of the potential
8-14 ground. The presiding officer shall then notify the governor and
8-15 the attorney general that a potential ground for removal exists.
8-16 If the potential ground for removal involves the presiding officer,
8-17 the executive secretary shall notify the next highest officer of
8-18 the commission, who shall notify the governor and the attorney
8-19 general that a potential ground for removal exists.
8-20 Sec. 2.074. MEMBER TRAINING. (a) To be eligible to take
8-21 office as a member of the commission, a person appointed to the
8-22 commission must complete at least one course of a training program
8-23 that complies with this section.
8-24 (b) The training program must provide information to the
8-25 person regarding:
8-26 (1) the enabling legislation that created the
8-27 commission;
9-1 (2) the programs operated by the commission;
9-2 (3) the role and functions of the commission;
9-3 (4) the rules of the commission with an emphasis on
9-4 the rules that relate to disciplinary and investigatory authority;
9-5 (5) the current budget for the commission;
9-6 (6) the results of the most recent formal audit of the
9-7 commission;
9-8 (7) the requirements of the:
9-9 (A) open meetings law, Chapter 551, Government
9-10 Code;
9-11 (B) open records law, Chapter 552, Government
9-12 Code; and
9-13 (C) administrative procedure law, Chapter 2001,
9-14 Government Code;
9-15 (8) the requirements of the conflict of interests laws
9-16 and other laws relating to public officials; and
9-17 (9) any applicable ethics policies adopted by the
9-18 commission or the Texas Ethics Commission.
9-19 (c) A person appointed to the commission is entitled to
9-20 reimbursement for travel expenses incurred in attending the
9-21 training program, as provided by the General Appropriations Act and
9-22 as if the person were a member of the commission.
9-23 SECTION 7. Section 2.10, Texas Racing Act (Article 179e,
9-24 Vernon's Texas Civil Statutes), is amended to read as follows:
9-25 Sec. 2.10. PRESIDING OFFICER [CHAIRMAN]. The governor shall
9-26 designate a public [one] member of the commission as the presiding
9-27 officer [chairman] of the commission to serve in that capacity at
10-1 the pleasure of the governor.
10-2 SECTION 8. Section 2.11, Texas Racing Act (Article 179e,
10-3 Vernon's Texas Civil Statutes), is amended by amending Subsection
10-4 (b) and adding Subsection (d) to read as follows:
10-5 (b) A majority of the commission constitutes a quorum. [A
10-6 majority of a section of the commission constitutes a quorum for
10-7 purposes of conducting business related to matters under the
10-8 exclusive jurisdiction of that section.]
10-9 (d) The commission shall, by rule, develop and implement
10-10 policies that provide the public with a reasonable opportunity to
10-11 appear before the commission and to speak on any issue under the
10-12 jurisdiction of the commission.
10-13 SECTION 9. Sections 2.12(b) and (c), Texas Racing Act
10-14 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
10-15 as follows:
10-16 (b) The commission may not employ or continue to employ a
10-17 person:
10-18 (1) who owns or controls a financial interest in a
10-19 licensee of the commission [racetrack or its operation];
10-20 (2) who is employed by or serves as a paid consultant
10-21 to a licensee of the commission, an official breed registry, or a
10-22 Texas trade association, as defined by Section 2.071(c) of this
10-23 Act, in the field of horse or greyhound racing or breeding [accepts
10-24 any remuneration from a racetrack];
10-25 (3) who owns or leases a race animal that participates
10-26 in pari-mutuel racing [is an owner, lessor, or lessee of a
10-27 greyhound or a horse that is entered in a race] in this state; or
11-1 (4) who accepts or is entitled to any part of the
11-2 purse or Texas-bred incentive award [purse supplement] to be paid
11-3 on a greyhound or a horse in a race conducted in this state.
11-4 (c) The commission may not employ or continue to employ a
11-5 person who is residentially domiciled with or related within the
11-6 first [second] degree by affinity or [the third degree by]
11-7 consanguinity to a person who is subject to a disqualification
11-8 prescribed by Subsection (b) of this section.
11-9 SECTION 10. Article 2, Texas Racing Act (Article 179e,
11-10 Vernon's Texas Civil Statutes), is amended by adding Sections
11-11 2.17-2.24 to read as follows:
11-12 Sec. 2.17. ANNUAL ACCOUNTING. The commission shall prepare
11-13 annually a complete and detailed written report accounting for all
11-14 funds received and disbursed by the commission during the preceding
11-15 fiscal year. The annual report must meet the reporting
11-16 requirements applicable to financial reporting provided in the
11-17 General Appropriations Act.
11-18 Sec. 2.18. FUNDS PAID TO COMMISSION. All money paid to the
11-19 commission under this Act is subject to Subchapter F, Chapter 404,
11-20 Government Code.
11-21 Sec. 2.19. EMPLOYMENT PRACTICES. (a) The executive
11-22 secretary or the executive secretary's designee shall develop an
11-23 intra-agency career ladder program that addresses opportunities for
11-24 mobility and advancement for employees within the commission. The
11-25 program shall require intra-agency posting of all positions
11-26 concurrently with any public posting.
11-27 (b) The executive secretary or the executive secretary's
12-1 designee shall develop a system of annual performance evaluations
12-2 that are based on documented employee performance. All merit pay
12-3 for commission employees must be based on the system established
12-4 under this subsection.
12-5 (c) The executive secretary or the executive secretary's
12-6 designee shall prepare and maintain a written policy statement to
12-7 assure implementation of a program of equal employment opportunity
12-8 under which all personnel transactions are made without regard to
12-9 race, color, disability, sex, religion, age, or national origin.
12-10 The policy statement must include:
12-11 (1) personnel policies, including policies relating to
12-12 recruitment, evaluation, selection, appointment, training, and
12-13 promotion of personnel that are in compliance with the requirements
12-14 of Chapter 21, Labor Code;
12-15 (2) a comprehensive analysis of the commission
12-16 workforce that meets federal and state laws, rules, regulations,
12-17 and instructions directly promulgated from those laws, rules, and
12-18 regulations;
12-19 (3) procedures by which a determination can be made
12-20 about the extent of underuse in the commission workforce of all
12-21 persons for whom federal or state laws, rules, regulations, and
12-22 instructions directly promulgated from those laws, rules, and
12-23 regulations encourage a more equitable balance; and
12-24 (4) reasonable methods to appropriately address those
12-25 areas of underuse.
12-26 (d) A policy statement prepared under Subsection (c) of this
12-27 section must cover an annual period, be updated annually and
13-1 reviewed by the Texas Commission on Human Rights for compliance
13-2 with Subsection (c)(1) of this section, and be filed with the
13-3 governor's office.
13-4 (e) The governor's office shall deliver a biennial report to
13-5 the legislature based on the information received under Subsection
13-6 (d) of this section. The report may be made separately or as a
13-7 part of other biennial reports made to the legislature.
13-8 Sec. 2.20. STANDARDS OF CONDUCT. The executive secretary or
13-9 the executive secretary's designee shall provide to members of the
13-10 commission and to agency employees, as often as necessary,
13-11 information regarding their qualification for office or employment
13-12 under this Act and their responsibilities under applicable laws
13-13 relating to standards of conduct for state officers or employees.
13-14 Sec. 2.21. DIVISION OF RESPONSIBILITY. The commission
13-15 shall, by rule, develop and implement policies that clearly
13-16 separate the policymaking responsibilities of the commission and
13-17 the management responsibilities of the executive secretary and the
13-18 staff of the commission.
13-19 Sec. 2.22. PROGRAM AND FACILITY ACCESSIBILITY. The
13-20 commission shall comply with federal and state laws related to
13-21 program and facility accessibility. The executive secretary shall
13-22 also prepare and maintain a written plan that describes how a
13-23 person who does not speak English can be provided reasonable access
13-24 to the commission's programs and services.
13-25 Sec. 2.23. INFORMATION TO PUBLIC. (a) The commission shall
13-26 prepare information of public interest describing the functions of
13-27 the commission and the procedures by which complaints are filed
14-1 with and resolved by the commission. The commission shall make the
14-2 information available to the public and appropriate state agencies.
14-3 (b) The commission by rule shall establish methods by which
14-4 racetrack patrons are notified of the name, mailing address, and
14-5 telephone number of the commission for the purpose of directing
14-6 complaints to the commission. The commission may provide for that
14-7 notification:
14-8 (1) on every race performance program provided by each
14-9 racetrack association; or
14-10 (2) on signs prominently displayed in the common
14-11 public areas on the premises of each racetrack association.
14-12 Sec. 2.24. COMPLAINT HANDLING. (a) The commission shall
14-13 keep information about each complaint filed with the commission.
14-14 The information shall include:
14-15 (1) the date the complaint is received;
14-16 (2) the name of the complainant;
14-17 (3) the subject matter of the complaint;
14-18 (4) a record of all persons contacted in relation to
14-19 the complaint;
14-20 (5) a summary of the results of the review or
14-21 investigation of the complaint; and
14-22 (6) for complaints for which the agency took no
14-23 action, an explanation of the reason the complaint was closed
14-24 without action.
14-25 (b) The commission shall keep a file about each written
14-26 complaint filed with the commission that the agency has authority
14-27 to resolve. The commission shall provide to the person filing the
15-1 complaint and the persons or entities complained about the
15-2 commission's policies and procedures pertaining to complaint
15-3 investigation and resolution. The commission, at least quarterly
15-4 and until final disposition of the complaint, shall notify the
15-5 person filing the complaint and the persons or entities complained
15-6 about of the status of the complaint unless the notice would
15-7 jeopardize an undercover investigation.
15-8 SECTION 11. Section 3.02, Texas Racing Act (Article 179e,
15-9 Vernon's Texas Civil Statutes), is amended to read as follows:
15-10 Sec. 3.02. Regulation and supervision. (a) The [In
15-11 accordance with Section 3.01 of this Act, the] commission shall
15-12 regulate and supervise every race meeting in this state involving
15-13 wagering on the result of greyhound or horse racing. All persons
15-14 and things relating to the operation of those meetings are subject
15-15 to regulation and supervision by the commission. The commission
15-16 shall adopt rules for conducting greyhound or horse racing in this
15-17 state involving wagering and shall adopt other rules to administer
15-18 this Act that are consistent with this Act. The commission shall
15-19 also make rules, issue licenses, and take any other necessary
15-20 action relating exclusively to horse racing or to greyhound racing.
15-21 (b) The commission may establish separate sections to review
15-22 or propose rules of the commission.
15-23 (c) The commission or a section of the commission shall hold
15-24 a meeting on any proposed rule before the commission publishes the
15-25 proposed rule in the Texas Register.
15-26 (d) The commission shall post notice of a meeting under
15-27 Subsection (c) of this section at each racetrack facility. The
16-1 notice shall include an agenda of the meeting and a summary of the
16-2 proposed rule.
16-3 (e) A copy of a proposed rule published in the Texas
16-4 Register shall also be posted concurrently at each racetrack
16-5 facility.
16-6 (f) The commission or a section of the commission may
16-7 appoint a committee of experts, members of the public, or other
16-8 interested parties to advise the commission or section of the
16-9 commission about a proposed rule of the commission.
16-10 (g) The commission, in adopting rules and in the supervision
16-11 and conduct of racing, shall consider the effect of a proposed
16-12 commission action on the state's agricultural, horse breeding,
16-13 horse training, greyhound breeding, and greyhound training
16-14 industry.
16-15 SECTION 12. Section 3.021, Texas Racing Act (Article 179e,
16-16 Vernon's Texas Civil Statutes), is amended by amending Subsection
16-17 (b) and adding Subsection (d) to read as follows:
16-18 (b) To protect the health, safety, and welfare of race
16-19 animals and participants in racing, to safeguard the interest of
16-20 the general public, and to promote the orderly [growth and] conduct
16-21 of racing within the state, the commission may adopt rules for the
16-22 licensing and regulation of races and workouts at racetracks that
16-23 do not offer pari-mutuel wagering and for workouts at training
16-24 facilities to secure past performances and workouts.
16-25 (d) The commission may not adopt rules restricting
16-26 competitive bidding or advertising by a licensee except to prohibit
16-27 false, misleading, or deceptive practices. In its rules to
17-1 prohibit false, misleading, or deceptive practices, the commission
17-2 may not include a rule that:
17-3 (1) restricts the use of any medium for advertising;
17-4 (2) restricts the use of a licensee's personal
17-5 appearance or voice in an advertisement;
17-6 (3) relates to the size or duration of an
17-7 advertisement by the licensee; or
17-8 (4) restricts the licensee's advertisement under a
17-9 trade name.
17-10 SECTION 13. Section 3.03, Texas Racing Act (Article 179e,
17-11 Vernon's Texas Civil Statutes), is amended to read as follows:
17-12 Sec. 3.03. Power of entry. A member of the commission, an
17-13 authorized agent of the commission, a commissioned officer of the
17-14 Department of Public Safety, or a peace officer of the local
17-15 jurisdiction in which the association maintains a place of business
17-16 may enter any part of the racetrack facility [the office,
17-17 racetrack,] or any other place of business of an association at any
17-18 time for the purpose of enforcing and administering this Act.
17-19 SECTION 14. Sections 3.07(a), (b), (d), and (e), Texas
17-20 Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
17-21 amended to read as follows:
17-22 (a) The commission shall employ all of the judges and all of
17-23 the stewards for the supervision of a horse race or greyhound race
17-24 meeting. Each horse race or greyhound race meeting shall be
17-25 supervised by three stewards [approved by the commission] for horse
17-26 racing or by three judges [approved by the commission] for
17-27 greyhound racing. The commission shall designate one of the
18-1 stewards or judges as the presiding steward or judge for each race
18-2 meeting. The association, following the completion of the race
18-3 meeting, may submit written comments to the commission regarding
18-4 the job performance of the stewards and judges for the commission's
18-5 review. Comments received are not binding, in any way, on the
18-6 commission. [The commission shall employ one of the stewards who
18-7 supervises a horse race meeting who shall be the presiding steward.
18-8 The other stewards at the race meeting shall be compensated by the
18-9 association. The commission shall employ one of the judges who
18-10 supervises a greyhound race meeting who shall be the presiding
18-11 judge; the other judges at such a race meeting shall be compensated
18-12 by the association.] For each race meeting, the commission shall
18-13 employ [appoint] at least one state veterinarian [who shall be
18-14 compensated by the commission. The commission by rule shall
18-15 determine the amount of compensation for stewards, judges, and
18-16 state veterinarians who are required to be compensated by the
18-17 commission]. The commission may, by rule, impose a fee on an
18-18 association to offset the costs of compensating the [racetrack]
18-19 stewards, judges, and state veterinarians [for that association].
18-20 The amount of the fee for the compensation of stewards, judges, and
18-21 state veterinarians must be reasonable according to industry
18-22 standards for the compensation of those officials at other
18-23 racetracks and may not exceed the actual cost to the commission for
18-24 compensating the officials. All other racetrack officials shall be
18-25 appointed by the association, with the approval of the commission.
18-26 Compensation for those officials not compensated by the commission
18-27 shall be determined by the association.
19-1 (b) The commission shall make rules specifying the authority
19-2 and the duties of each official, including the power of stewards or
19-3 judges to impose penalties for unethical practices or violations of
19-4 racing rules. A penalty imposed by the stewards or judges may
19-5 include a fine of not more than $5,000, a suspension for not more
19-6 than one year, or both a fine and suspension. Before imposing a
19-7 penalty under this subsection, the stewards and judges shall
19-8 conduct a hearing that is consistent with constitutional due
19-9 process. A hearing conducted by a steward or judge under this
19-10 subsection is not subject to Chapter 2001, Government Code. If, in
19-11 the opinion of the stewards or judges, the allowable penalties are
19-12 not sufficient, the stewards or judges may refer the case to the
19-13 commission for further action.
19-14 (d) Medication or drug testing performed on a race animal
19-15 under [Section 14.03 of] this Act shall be conducted by a
19-16 laboratory selected by the commission on a yearly basis by
19-17 competitive bidding submitted to the commission for final approval.
19-18 The commission's decision shall be based on cost and integrity.
19-19 The Texas Veterinary Medical Diagnostic Laboratory may aid the
19-20 commission in its selection [either by the Texas Veterinary Medical
19-21 Diagnostic Laboratory or in conjunction with or by a private or
19-22 public agency that is approved by the commission and by the Texas
19-23 Veterinary Medical Diagnostic Laboratory]. Medication or drug
19-24 testing performed on a human under [Section 14.03 of] this Act
19-25 shall be conducted by a laboratory approved by the commission.
19-26 Charges for services performed under this section shall be
19-27 forwarded to the commission for approval as to the reasonableness
20-1 of the charges for the services. Charges may include but are not
20-2 limited to expenses incurred for travel, lodging, testing, and
20-3 processing of test results. The reasonable charges associated with
20-4 medication or drug testing conducted under this Act shall be paid
20-5 by the association that receives the services. The commission shall
20-6 adopt rules for the procedures for approving and paying laboratory
20-7 charges under this section. On the approval of the charges as
20-8 reasonable, in relation to industry standards for testing charges,
20-9 the commission shall forward a copy of the charges to the
20-10 association that receives the services for immediate payment.
20-11 (e) To pay the charges associated with the medication or
20-12 drug testing, an association may use the money held [retained] by
20-13 the association to pay outstanding tickets and pari-mutuel vouchers
20-14 [on tickets that are purchased as wagers on horses or greyhounds
20-15 and that are not cashed by the holders of the tickets]. If
20-16 additional amounts are needed to pay the charges, the association
20-17 shall pay those additional amounts. If the amount held [retained]
20-18 exceeds the amount needed to pay the charges, the association shall
20-19 pay the excess to the commission in accordance with Section 11.08
20-20 of this Act.
20-21 SECTION 15. Section 3.08(b), Texas Racing Act (Article 179e,
20-22 Vernon's Texas Civil Statutes), is amended to read as follows:
20-23 (b) A [In determining the distribution to holders of winning
20-24 tickets in a pari-mutuel pool, a] decision of the stewards or
20-25 judges on a disqualification for a foul in a race or on a finding
20-26 of fact regarding the running of a race is final and may not be
20-27 appealed.
21-1 SECTION 16. Article 3, Texas Racing Act (Article 179e,
21-2 Vernon's Texas Civil Statutes), is amended by adding Sections
21-3 3.13-3.22 to read as follows:
21-4 Sec. 3.13. RECOGNITION OF ORGANIZATION. (a) The commission
21-5 by rule shall adopt criteria to recognize an organization to
21-6 represent members of a segment of the racing industry, including
21-7 owners, breeders, trainers, kennel operators, or other persons
21-8 involved in the racing industry, in any interaction between the
21-9 members of the organization and an association or the commission.
21-10 (b) The commission may recognize an organization that meets
21-11 the requirements of Subsection (a) of this section.
21-12 Sec. 3.14. DISCIPLINARY ACTIONS. The commission shall
21-13 revoke, suspend, or refuse to renew a license, place on probation a
21-14 person whose license has been suspended, or reprimand a licensee
21-15 for a violation of this Act or a rule of the commission. If a
21-16 license suspension is probated, the commission may require the
21-17 licensee to report regularly to the commission on matters that are
21-18 the basis of the probation.
21-19 Sec. 3.15. HEARING REQUIREMENTS. If the commission proposes
21-20 to suspend, revoke, or refuse to renew a person's license, the
21-21 person is entitled to a hearing conducted by the State Office of
21-22 Administrative Hearings. Proceedings for a disciplinary action,
21-23 other than those conducted by racing stewards or judges, are
21-24 governed by Chapter 2001, Government Code. Rules of practice
21-25 adopted by the commission under Section 2001.004, Government Code,
21-26 applicable to the proceedings for a disciplinary action, other than
21-27 those conducted by racing stewards or judges, may not conflict with
22-1 rules adopted by the State Office of Administrative Hearings.
22-2 Sec. 3.16. RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
22-3 (a) The commission shall adopt rules prohibiting a person from
22-4 unlawfully influencing or affecting the outcome of a race,
22-5 including rules relating to the use of a prohibited device or
22-6 prohibited substance at a racetrack or training facility.
22-7 (b) The commission may require prerace testing and shall
22-8 require postrace testing to determine whether a prohibited
22-9 substance has been used. The testing may be by an invasive or
22-10 noninvasive method. The commission's rules shall require
22-11 state-of-the-art testing methods.
22-12 (c) Following the discovery of a prohibited device or a
22-13 return of a test showing the presence of a prohibited substance, a
22-14 steward or judge may summarily suspend a person who has used or
22-15 administered the prohibited device or prohibited substance until a
22-16 hearing before the stewards and judges. The steward or judge may
22-17 also disqualify an animal as provided by a commission rule adopted
22-18 under this section.
22-19 (d) Except as otherwise provided, a person may appeal a
22-20 ruling of the stewards or judges to the commission. The commission
22-21 may stay a suspension during the period the matter is before the
22-22 commission.
22-23 (e) The commission may require urine samples to be frozen
22-24 for a period necessary to allow any follow-up testing to detect and
22-25 identify a prohibited substance. Any other specimen shall be
22-26 maintained for testing purposes in a manner required by commission
22-27 rule.
23-1 (f) If a test sample or specimen shows the presence of a
23-2 prohibited substance, the entire sample, including any split
23-3 portion remaining in the custody of the commission, shall be
23-4 maintained until final disposition of the matter.
23-5 (g) A licensee whose animal test shows the presence of a
23-6 prohibited substance is entitled to have a split portion of the
23-7 test sample or specimen tested at a testing facility authorized to
23-8 perform drug testing under this Act and selected by the licensee.
23-9 The commission shall adopt rules relating to split testing
23-10 procedures.
23-11 (h) The licensed trainer of an animal is:
23-12 (1) considered by law to be the absolute ensurer that
23-13 no prohibited substance has been administered to the animal; and
23-14 (2) responsible for ensuring that no prohibited
23-15 substance is administered to the animal.
23-16 (i) The commission shall adopt rules relating to the drug
23-17 testing of licensees.
23-18 (j) A person who violates a rule adopted under this section
23-19 may:
23-20 (1) have any license issued to the person by the
23-21 commission revoked or suspended; or
23-22 (2) be barred for life or any other period from
23-23 applying for or receiving a license issued by the commission or
23-24 entering any portion of a racetrack facility.
23-25 Sec. 3.17. SECURITY FOR FEES AND CHARGES. The commission
23-26 may require an association to post security in an amount and form
23-27 determined by the commission to adequately ensure the payment of
24-1 any fees or charges due to the state or the commission relating to
24-2 pari-mutuel racing, including charges for drug testing.
24-3 Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive
24-4 secretary may issue a cease and desist order if the executive
24-5 secretary reasonably believes an association or other licensee is
24-6 engaging or is likely to engage in conduct that violates this Act
24-7 or a commission rule.
24-8 (b) On issuance of a cease and desist order, the executive
24-9 secretary shall serve on the association or other licensee by
24-10 personal delivery or registered or certified mail, return receipt
24-11 requested, to the person's last known address, a proposed cease and
24-12 desist order. The proposed order must state the specific acts or
24-13 practices alleged to violate this Act or a commission rule. The
24-14 proposed order must state its effective date. The effective date
24-15 may not be before the 21st day after the date the proposed order is
24-16 mailed or delivered. If the person against whom the proposed order
24-17 is directed requests, in writing, a hearing before the effective
24-18 date of the proposed order, the order is automatically stayed
24-19 pending final adjudication of the order. Unless the person against
24-20 whom the proposed order is directed requests, in writing, a hearing
24-21 before the effective date of the proposed order, the order takes
24-22 effect and is final and nonappealable as to that person.
24-23 (c) On receiving a request for a hearing, the executive
24-24 secretary shall serve notice of the time and place of the hearing
24-25 by personal delivery or registered or certified mail, return
24-26 receipt requested. At a hearing, the commission has the burden of
24-27 proof and must present evidence in support of the order. Each
25-1 person against whom the order is directed may cross-examine and
25-2 show cause why the order should not be issued.
25-3 (d) After the hearing, the commission shall issue or decline
25-4 to issue a cease and desist order. The proposed order may be
25-5 modified as necessary to conform to the findings at the hearing.
25-6 An order issued under this section is final for purposes of
25-7 enforcement and appeal and shall require the person to immediately
25-8 cease and desist from the conduct that violates this Act or a
25-9 commission rule.
25-10 (e) A person affected by a cease and desist order issued,
25-11 affirmed, or modified after a hearing may file a petition for
25-12 judicial review in a district court of Travis County under Chapter
25-13 2001, Government Code. A petition for judicial review does not
25-14 stay or vacate the order unless the court, after hearing,
25-15 specifically stays or vacates the order.
25-16 Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) The
25-17 executive secretary may issue an emergency cease and desist order
25-18 if the executive secretary reasonably believes an association or
25-19 other licensee is engaged in a continuing activity that violates
25-20 this Act or a commission rule in a manner that threatens immediate
25-21 and irreparable public harm.
25-22 (b) After issuing an emergency cease and desist order, the
25-23 executive secretary shall serve on the association or other
25-24 licensee by personal delivery or registered or certified mail,
25-25 return receipt requested, to the person's last known address, an
25-26 order stating the specific charges and requiring the person
25-27 immediately to cease and desist from the conduct that violates this
26-1 Act or a commission rule. The order must contain a notice that a
26-2 request for hearing may be filed under this section.
26-3 (c) An association or other licensee that is the subject of
26-4 an emergency cease and desist order may request a hearing. The
26-5 request must be filed with the executive secretary not later than
26-6 the 10th day after the date the order was received or delivered. A
26-7 request for a hearing must be in writing and directed to the
26-8 executive secretary and must state the grounds for the request to
26-9 set aside or modify the order. Unless a person who is the subject
26-10 of the emergency order requests a hearing in writing before the
26-11 11th day after the date the order is received or delivered, the
26-12 emergency order is final and nonappealable as to that person.
26-13 (d) On receiving a request for a hearing, the executive
26-14 secretary shall serve notice of the time and place of the hearing
26-15 by personal delivery or registered or certified mail, return
26-16 receipt requested. The hearing must be held not later than the
26-17 10th day after the date the executive secretary receives the
26-18 request for a hearing unless the parties agree to a later hearing
26-19 date. At the hearing, the commission has the burden of proof and
26-20 must present evidence in support of the order. The person
26-21 requesting the hearing may cross-examine witnesses and show cause
26-22 why the order should not be affirmed. Section 2003.021(b),
26-23 Government Code, does not apply to hearings conducted under this
26-24 section.
26-25 (e) An emergency cease and desist order continues in effect
26-26 unless the order is stayed by the executive secretary. The
26-27 executive secretary may impose any condition before granting a stay
27-1 of the order.
27-2 (f) After the hearing, the executive secretary shall affirm,
27-3 modify, or set aside in whole or part the emergency cease and
27-4 desist order. An order affirming or modifying the emergency cease
27-5 and desist order is final for purposes of enforcement and appeal.
27-6 Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER. (a)
27-7 If the executive secretary reasonably believes that a person has
27-8 violated a final and enforceable cease and desist order, the
27-9 executive secretary may:
27-10 (1) initiate administrative penalty proceedings under
27-11 Article 15 of this Act;
27-12 (2) refer the matter to the attorney general for
27-13 enforcement by injunction and any other available remedy; or
27-14 (3) pursue any other action, including suspension of
27-15 the person's license, that the executive secretary considers
27-16 appropriate.
27-17 (b) If the attorney general prevails in an action brought
27-18 under Subsection (a)(2) of this section, the attorney general is
27-19 entitled to recover reasonable attorney's fees.
27-20 Sec. 3.21. INJUNCTION. The commission may institute an
27-21 action in its own name to enjoin the violation of this Act. An
27-22 action for an injunction is in addition to any other action,
27-23 proceeding, or remedy authorized by law.
27-24 Sec. 3.22. ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT. (a)
27-25 The commission, by rule, shall develop a system for monitoring the
27-26 activities of managers and employees of an association relating to
27-27 the horsemen's account. The monitoring system may include review of
28-1 the financial operations of the association, including inspections
28-2 of records at the association's offices, at any racetrack, or at
28-3 any other place the association transacts business.
28-4 (b) The executive secretary may issue an order prohibiting
28-5 the association from making any transfer from a bank account held
28-6 by the association for the conduct of its business under this Act,
28-7 pending commission review of the records of the account, if the
28-8 executive secretary reasonably believes that the association has
28-9 failed to maintain the proper amount of money in the horsemen's
28-10 account. The executive secretary shall provide in the order a
28-11 procedure for the association to pay certain expenses necessary for
28-12 the operation of the racetrack, subject to the executive
28-13 secretary's approval. An order issued under this section may be
28-14 made valid for a period not to exceed 14 days.
28-15 (c) The executive secretary may issue an order requiring the
28-16 appropriate transfers to or from the horsemen's account if, after
28-17 reviewing the association's records of its bank accounts, the
28-18 executive secretary determines there is an improper amount of money
28-19 in the horsemen's account.
28-20 SECTION 17. Section 5.01(a), Texas Racing Act (Article 179e,
28-21 Vernon's Texas Civil Statutes), is amended to read as follows:
28-22 (a) The commission shall prescribe forms for applications
28-23 for licenses and shall provide each occupational licensee with a
28-24 license certificate or credentials.
28-25 SECTION 18. Sections 5.03(a) and (b), Texas Racing Act
28-26 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
28-27 as follows:
29-1 (a) An applicant for any license under this Act must, except
29-2 as allowed under Section 7.10 of this Act, submit to the commission
29-3 a complete set of fingerprints of the individual natural person
29-4 applying for the license or, if the applicant is not an individual
29-5 natural person, a complete set of fingerprints of each officer or
29-6 director and of each person owning an interest of at least five
29-7 percent in the applicant. The Department of Public Safety may
29-8 request any person owning any interest in an applicant for a
29-9 racetrack license to submit a complete set of fingerprints.
29-10 (b) If a complete set of fingerprints is required by the
29-11 commission, the [The] commission shall, not later than the next day
29-12 after receiving the prints, forward the prints to the Department of
29-13 Public Safety or the Federal Bureau of Investigation. If the
29-14 prints are forwarded to the Department of Public Safety, the [The]
29-15 department shall classify the prints and check them against its
29-16 fingerprint files and shall report to the commission its findings
29-17 concerning the criminal record of the applicant or the lack of such
29-18 a record. A racetrack license may not be issued until the report
29-19 is made to the commission. A temporary occupational license may be
29-20 issued before a report is made to the commission.
29-21 SECTION 19. Article 5, Texas Racing Act (Article 179e,
29-22 Vernon's Texas Civil Statutes), is amended by adding Section 5.05
29-23 to read as follows:
29-24 Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) The
29-25 commission shall, in determining the amount of a license fee, set
29-26 the fee in an amount that will cover, at least, the cost of
29-27 conducting a criminal history check on the applicant for a license.
30-1 (b) The commission shall reimburse the Department of Public
30-2 Safety for the cost of conducting a criminal history check under
30-3 this article.
30-4 SECTION 20. Section 6.01, Texas Racing Act (Article 179e,
30-5 Vernon's Texas Civil Statutes), is amended to read as follows:
30-6 Sec. 6.01. License required. A person may [shall] not
30-7 conduct wagering on a greyhound race [meeting] or a horse race
30-8 meeting without first obtaining a racetrack license from the
30-9 commission [with wagering on the results without a racetrack
30-10 license]. A person who violates this section commits an offense.
30-11 SECTION 21. Section 6.02(b), Texas Racing Act (Article 179e,
30-12 Vernon's Texas Civil Statutes), is amended to read as follows:
30-13 (b) A class 1 racetrack is a racetrack on which live racing
30-14 is conducted for a number of days in a calendar year, the number of
30-15 days and the actual dates to be determined by the commission under
30-16 Article 8 of this Act. A class 1 racetrack may operate only in a
30-17 county with a population of not less than 750,000, according to the
30-18 most recent federal census, or in a county adjacent to a county
30-19 with such a population. Not more than three [four] class 1
30-20 racetracks may be licensed and operated in this state.
30-21 SECTION 22. Sections 6.04(a) and (d), Texas Racing Act
30-22 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
30-23 as follows:
30-24 (a) The commission may issue a racetrack license to a
30-25 qualified person if it finds that the conduct of race meetings at
30-26 the proposed track and location will be in the public interest,
30-27 complies with all zoning laws, and complies with this Act and the
31-1 rules adopted by the commission and if the commission finds by
31-2 clear and convincing evidence that the applicant will comply with
31-3 all criminal laws of this state. In determining whether to grant
31-4 or deny an application for any class of racetrack license, the
31-5 commission may consider [the degree to which any of] the following
31-6 factors [regarding the applicant's racetrack or proposed race
31-7 meeting serve to nurture, promote, develop, or improve the horse or
31-8 greyhound industry in this state]:
31-9 (1) the applicant's financial stability;
31-10 (2) the applicant's resources for supplementing the
31-11 purses for races for various breeds;
31-12 (3) the location of the proposed track;
31-13 (4) the effect of the proposed track on traffic flow;
31-14 (5) facilities for patrons and occupational licensees;
31-15 (6) facilities for race animals;
31-16 (7) availability to the track of support services and
31-17 emergency services;
31-18 (8) the experience of the applicant's employees;
31-19 (9) the potential for conflict with other licensed
31-20 race meetings;
31-21 (10) the anticipated effect of the race meeting on the
31-22 greyhound or horse breeding industry in this state; and
31-23 (11) the anticipated effect of the race meeting on the
31-24 state and local economy from tourism, increased employment, and
31-25 other sources.
31-26 (d) In considering an application for a class 4 racetrack
31-27 license, the commission may waive or defer compliance with the
32-1 commission's standards regarding the physical facilities or
32-2 operations of a horse racetrack. The commission may not waive or
32-3 defer compliance with standards that relate to the testing of
32-4 horses or licensees for the presence of a prohibited drug,
32-5 chemical, or other substance [as provided by Section 14.03 of this
32-6 Act]. If the commission defers compliance, the commission shall,
32-7 when granting the application, establish a schedule under which the
32-8 licensee must comply with the standards.
32-9 SECTION 23. Section 6.06, Texas Racing Act (Article 179e,
32-10 Vernon's Texas Civil Statutes), is amended by amending Subsections
32-11 (a), (b), (e), (f), and (g) and adding Subsection (i) to read as
32-12 follows:
32-13 (a) To preserve and protect the public health, welfare, and
32-14 safety, the commission shall adopt rules relating to license
32-15 applications, [renewal applications,] the financial responsibility,
32-16 moral character, and ability of applicants, and all matters
32-17 relating to the planning, construction, and operation of
32-18 racetracks. The commission may refuse to issue a [an original or
32-19 renewal] racetrack license or may revoke or suspend a license if,
32-20 after notice and hearing, it has reasonable grounds to believe and
32-21 finds that:
32-22 (1) the applicant has been convicted in a court of
32-23 competent jurisdiction of a violation of this Act or any rule
32-24 adopted by the commission or that the applicant has aided, abetted,
32-25 or conspired with any person to commit such a violation;
32-26 (2) the applicant has been convicted of a felony or of
32-27 any crime involving moral turpitude, including convictions for
33-1 which the punishment received was a suspended sentence, probation,
33-2 or a nonadjudicated conviction, that is reasonably related to the
33-3 applicant's present fitness to hold a license under this Act;
33-4 (3) the applicant has violated or has caused to be
33-5 violated this Act or a rule of the commission in a manner that
33-6 involves moral turpitude, as distinguished from a technical
33-7 violation of this Act or of a rule;
33-8 (4) the applicant is unqualified, by experience or
33-9 otherwise, to perform the duties required of a licensee under this
33-10 Act;
33-11 (5) the applicant failed to answer or falsely or
33-12 incorrectly answered a question in an [original or renewal]
33-13 application;
33-14 (6) the applicant fails to disclose the true ownership
33-15 or interest in a greyhound or horse as required by the rules of the
33-16 commission;
33-17 (7) the applicant is indebted to the state for any
33-18 fees or for the payment of a penalty imposed by this Act or by a
33-19 rule of the commission;
33-20 (8) the applicant is not of good moral character or
33-21 the applicant's reputation as a peaceable, law-abiding citizen in
33-22 the community where the applicant resides is bad;
33-23 (9) the applicant has not yet attained the minimum age
33-24 necessary to purchase alcoholic beverages in this state;
33-25 (10) the applicant is in the habit of using alcoholic
33-26 beverages to an excess or uses a controlled substance as defined in
33-27 Chapter 481, Health and Safety Code, or a dangerous drug as defined
34-1 in Chapter 483, Health and Safety Code, or is mentally
34-2 incapacitated;
34-3 (11) the applicant may be excluded from a track
34-4 enclosure under [Article 13 or 14 of] this Act;
34-5 (12) the applicant has not been a United States
34-6 citizen residing in this state for the period of 10 consecutive
34-7 years immediately preceding the filing of the application;
34-8 (13) the applicant has improperly used a license
34-9 certificate, credential, or identification card issued under this
34-10 Act;
34-11 (14) the applicant is residentially domiciled with a
34-12 person whose license has been revoked for cause within the 12
34-13 months immediately preceding the date of the present application;
34-14 (15) the applicant has failed or refused to furnish a
34-15 true copy of the application to the commission's district office in
34-16 the district in which the premises for which the permit is sought
34-17 are located; [or]
34-18 (16) the applicant is engaged or has engaged in
34-19 activities or practices that the commission finds are detrimental
34-20 to the best interests of the public and the sport of greyhound
34-21 racing or horse racing; or
34-22 (17) the applicant fails to fully disclose the true
34-23 owners of all interests, beneficial or otherwise, in a proposed
34-24 racetrack facility.
34-25 (b) Subsection (a) of this section applies to a corporation,
34-26 partnership, limited partnership, or any other organization or
34-27 group whose application is comprised of more than one person if a
35-1 shareholder, partner, limited partner [if any], director, or
35-2 officer is disqualified under Subsection (a) of this section.
35-3 (e) The [appropriate section of the] commission may
35-4 condition the issuance of a license under this article on the
35-5 observance of its rules. The commission may amend the rules at any
35-6 time and may condition the continued holding of the license on
35-7 compliance with the rules as amended.
35-8 (f) The [appropriate section of the] commission may refuse
35-9 to issue a license or may suspend or revoke a license of a licensee
35-10 under this article who knowingly or intentionally allows access to
35-11 an enclosure where greyhound races or horse races are conducted to
35-12 a person who has engaged in bookmaking, touting, or illegal
35-13 wagering, whose income is from illegal activities or enterprises,
35-14 or who has been convicted of a violation of this Act.
35-15 (g) A person awarded a management contract [by a nonprofit
35-16 corporation licensed under this Act] to operate a racetrack must
35-17 meet all of the requirements of this section.
35-18 (i) Subsections (a)(12), (c), and (d) of this section do not
35-19 apply to an applicant for or the holder of a racetrack license if
35-20 the applicant, the license holder, or the license holder's parent
35-21 company is a publicly traded company.
35-22 SECTION 24. Article 6, Texas Racing Act (Article 179e,
35-23 Vernon's Texas Civil Statutes), is amended by adding Sections
35-24 6.061-6.063 to read as follows:
35-25 Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFE
35-26 CONDITIONS. (a) The commission shall adopt rules implementing
35-27 this section, including rules:
36-1 (1) requiring the report of and correction of:
36-2 (A) an inappropriate condition on the premises
36-3 of a racetrack facility, including a failure to properly maintain
36-4 the facility, that interferes with the administration of this Act;
36-5 or
36-6 (B) a condition on the premises of a racetrack
36-7 facility that makes the facility unsafe for a race participant,
36-8 patron, or animal; and
36-9 (2) determining the methods and manner in which the
36-10 executive secretary may determine and remedy inappropriate
36-11 conditions or unsafe facilities on the premises of a racetrack
36-12 facility, including the methods and manner in which the executive
36-13 secretary may conduct inspections of the racetrack facility and
36-14 remedy emergency situations.
36-15 (b) The executive secretary shall issue a notice of
36-16 violation to a racetrack facility on a finding that an
36-17 inappropriate or unsafe condition exists.
36-18 (c) If the executive secretary determines that an
36-19 inappropriate or unsafe condition exists at the racetrack facility,
36-20 the executive secretary shall order the racetrack facility to take
36-21 action within a specified period to remedy the inappropriate
36-22 condition or unsafe condition. In determining the period for
36-23 compliance, the executive secretary shall consider the nature and
36-24 severity of the problem and the threat to the health, safety, and
36-25 welfare of the race participants, patrons, or animals.
36-26 (d) The commission shall adopt rules requiring the reporting
36-27 of any corrective action taken by a racetrack facility in response
37-1 to an order of the executive secretary under Subsection (c) of this
37-2 section.
37-3 (e) If a racetrack facility fails to take any action as
37-4 required under Subsection (c) of this section, the executive
37-5 secretary shall initiate an enforcement action against the
37-6 racetrack facility. The executive secretary may rescind any live
37-7 or simulcast race date of any racetrack association that does not
37-8 take corrective action within the period set by the executive
37-9 secretary.
37-10 (f) The commission shall adopt rules relating to the
37-11 commission's review of an action taken under this section by the
37-12 executive secretary. A review procedure adopted under this
37-13 subsection must be consistent with Chapter 2001, Government Code.
37-14 Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) The
37-15 commission shall adopt a method of supervising and approving the
37-16 construction, renovation, or maintenance of any building or
37-17 improvement on the premises of a racetrack facility.
37-18 (b) The commission shall adopt rules relating to:
37-19 (1) the approval of plans and specifications;
37-20 (2) the contents of plans and specifications;
37-21 (3) the maintenance of records to ensure compliance
37-22 with approved plans and specifications;
37-23 (4) the content and filing of construction progress
37-24 reports by the racetrack facility to the commission;
37-25 (5) the inspection by the commission or others;
37-26 (6) the method for making a change or amendment to an
37-27 approved plan or specification; and
38-1 (7) any other method of supervision or oversight
38-2 necessary.
38-3 (c) If the commission has grounds to believe that an
38-4 association has failed to comply with the requirements of this
38-5 section, a representative of the association shall appear before
38-6 the commission to consider the issue of compliance with the rules
38-7 adopted under this section.
38-8 (d) Before a building or improvement may be used by the
38-9 association, the commission shall determine whether the
38-10 construction, renovation, or maintenance of the building or
38-11 improvement was completed in accordance with the approved plans and
38-12 specifications and whether other requirements of the commission
38-13 were met.
38-14 (e) If the commission determines that the association failed
38-15 to comply with a requirement of this section or rule adopted under
38-16 this section, the commission shall initiate an enforcement action
38-17 against the association. In addition to any other authorized
38-18 enforcement action, the commission may rescind any live or
38-19 simulcast race date of any association that has failed to comply
38-20 with the requirement of this section.
38-21 Sec. 6.063. SUMMARY SUSPENSION. (a) The commission may
38-22 summarily suspend a racetrack license if the commission determines
38-23 that a racetrack at which races or pari-mutuel wagering are
38-24 conducted under the license is being operated in a manner that
38-25 constitutes an immediate threat to the health, safety, or welfare
38-26 of the participants in racing or the patrons.
38-27 (b) After issuing a summary suspension order, the executive
39-1 secretary shall serve on the association by personal delivery or
39-2 registered or certified mail, return receipt requested, to the
39-3 licensee's last known address, an order stating the specific
39-4 charges and requiring the licensee immediately to cease and desist
39-5 from all conduct permitted by the license. The order must contain
39-6 a notice that a request for hearing may be filed under this
39-7 section.
39-8 (c) An association that is the subject of a summary
39-9 suspension order may request a hearing. The request must be filed
39-10 with the executive secretary not later than the 10th day after the
39-11 date the order was received or delivered. A request for a hearing
39-12 must be in writing and directed to the executive secretary and must
39-13 state the grounds for the request to set aside or modify the order.
39-14 Unless a licensee who is the subject of the order requests a
39-15 hearing in writing before the 11th day after the date the order is
39-16 received or delivered, the order is final and nonappealable as to
39-17 that licensee.
39-18 (d) On receiving a request for a hearing, the executive
39-19 secretary shall serve notice of the time and place of the hearing
39-20 by personal delivery or registered or certified mail, return
39-21 receipt requested. The hearing must be held not later than the
39-22 10th day after the date the executive secretary receives the
39-23 request for a hearing unless the parties agree to a later hearing
39-24 date. At the hearing, the commission has the burden of proof and
39-25 must present evidence in support of the order. The licensee
39-26 requesting the hearing may cross examine witnesses and show cause
39-27 why the order should not be affirmed. Section 2003.021(b),
40-1 Government Code, does not apply to hearings conducted under this
40-2 section.
40-3 (e) A summary suspension order continues in effect unless
40-4 the order is stayed by the executive secretary. The executive
40-5 secretary may impose any condition before granting a stay of the
40-6 order.
40-7 (f) After the hearing, the executive secretary shall affirm,
40-8 modify, or set aside in whole or part the summary suspension order.
40-9 An order affirming or modifying the summary suspension order is
40-10 final for purposes of enforcement and appeal.
40-11 SECTION 25. Section 6.08(b), Texas Racing Act (Article 179e,
40-12 Vernon's Texas Civil Statutes), is amended to read as follows:
40-13 (b)(1) A horse racing association shall set aside for purses
40-14 an amount not less than seven percent of a live regular wagering
40-15 pool or live multiple two wagering pool and not less than 8.5
40-16 percent of a live multiple three wagering pool.
40-17 (2) A horse racing association, after January 1, 1999,
40-18 shall set aside from simulcast pools for purses not less than the
40-19 following amounts from the takeout of the sending racetrack:
40-20 (A) 38.8 percent of the regular wagering pool;
40-21 (B) 33.3 percent of the multiple two wagering
40-22 pool; and
40-23 (C) 34 percent of the multiple three wagering
40-24 pool.
40-25 If the cost of the simulcast signal exceeds five percent of the
40-26 simulcast handle, the receiving horse racing association shall
40-27 split the cost of the signal in excess of five percent evenly with
41-1 the horsemen's organization by allocating the cost against the
41-2 purse money derived from that simulcast signal.
41-3 (3) The horse racing association shall transfer the
41-4 amount set aside for purses from any live and simulcast pools and
41-5 shall deposit the amounts in purse accounts maintained by breed by
41-6 the horsemen's organization in one or more federally insured
41-7 depositories. Legal title to purse accounts is vested in the
41-8 horsemen's organization. The horsemen's organization may contract
41-9 with an association to manage and control the purse accounts and to
41-10 make disbursements from the purse accounts:
41-11 (A) to an owner whose horse won a purse;
41-12 (B) to the horsemen's organization for its
41-13 expenses; or
41-14 (C) for other disbursements as provided by
41-15 contract between the horsemen's organization and the association.
41-16 (4) An association, after January 1, 1999, may pay a
41-17 portion of the revenue set aside under this subsection to an
41-18 organization recognized under Section 3.13 of this Act, as provided
41-19 by a contract approved by the commission.
41-20 SECTION 26. Section 6.09, Texas Racing Act (Article 179e,
41-21 Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
41-22 to read as follows:
41-23 (f) The commission in adopting rules relating to money paid
41-24 to the commission for use by the state greyhound breed registry
41-25 under Subsection (d) of this section shall require the award of a
41-26 grant in an amount equal to two percent of the amount paid to the
41-27 commission for use by the state greyhound breed registry to a
42-1 person for the rehabilitation of greyhounds or to locate homes for
42-2 greyhounds.
42-3 SECTION 27. Section 6.091, Texas Racing Act (Article 179e,
42-4 Vernon's Texas Civil Statutes), is amended to read as follows:
42-5 Sec. 6.091. DISTRIBUTION OF DEDUCTIONS FROM SIMULCAST
42-6 PARI-MUTUEL POOL. (a) An association shall distribute from the
42-7 total amount deducted as provided by Sections 6.08(a) and 6.09(a)
42-8 of this Act from each simulcast pari-mutuel pool and each simulcast
42-9 cross-species pool the following shares:
42-10 (1)(A) until January 1, 1999, an amount equal to 0.25
42-11 [one] percent of each simulcast pari-mutuel pool and each simulcast
42-12 cross-species simulcast pool as the amount set aside to reimburse
42-13 the general revenue fund for amounts that are appropriated for the
42-14 administration and enforcement of this Act and that are in excess
42-15 of the cumulative amount of funds deposited in the Texas Racing
42-16 Commission fund, until the excess amount and interest on the excess
42-17 amount are fully reimbursed;
42-18 (B) an amount equal to one percent of each
42-19 simulcast pool as the amount set aside for the state; and
42-20 (C) an amount equal to 1.25 percent of each
42-21 cross-species simulcast pool as the amount set aside for the state;
42-22 (2) an amount equal to 0.25 percent of each pool set
42-23 aside to reimburse the general revenue fund for amounts that are
42-24 appropriated for the administration and enforcement of this Act and
42-25 that are in excess of the cumulative amount of funds deposited in
42-26 the Texas Racing Commission fund, until the excess amount and
42-27 interest on the excess amount are fully reimbursed [to the Texas
43-1 Commission on Alcohol and Drug Abuse to be expended for the
43-2 prevention of problem gambling];
43-3 (3) if the association is a horse racing association,
43-4 an amount equal to one percent of a multiple two wagering pool or
43-5 multiple three wagering pool as the amount set aside for the
43-6 Texas-bred program to be used as provided by Section 6.08(f) of
43-7 this Act;
43-8 (4) if the association is a greyhound association, an
43-9 amount equal to one percent of a multiple two wagering pool or a
43-10 multiple three wagering pool as the amount set aside for the
43-11 Texas-bred program for greyhound races, to be distributed and used
43-12 in accordance with rules of the commission adopted to promote
43-13 greyhound breeding in this state; and
43-14 (5) the remainder as the amount set aside for purses,
43-15 expenses, the sending association, and the receiving location
43-16 pursuant to a contract approved by the commission between the
43-17 sending association and the receiving location.
43-18 (b) Section 6.09(b)(1) of this Act does not apply to amounts
43-19 deducted from a simulcast pari-mutuel pool in a greyhound race.
43-20 (c) A greyhound racetrack association that receives an
43-21 interstate cross-species simulcast signal shall distribute the
43-22 following amounts from the total amount deducted as provided by
43-23 Subsection (a) of this section from each pool wagered on the signal
43-24 at the facility:
43-25 (1) a fee of 1.5 percent to be paid to the racetrack
43-26 facility in this state sending the signal;
43-27 (2) a purse in the amount of 0.75 percent to be paid
44-1 to the official state breed registry for thoroughbred horses for
44-2 use as purses at racetracks in this state;
44-3 (3) a purse in the amount of 0.75 percent to be paid
44-4 to the official state breed registry for quarter horses for use as
44-5 purses at racetracks in this state; and
44-6 (4) a purse of 4.5 percent to be escrowed with the
44-7 commission for purses in the manner set forth in Subsection (e) of
44-8 this section.
44-9 (d) A horse racetrack association receiving an interstate
44-10 cross-species simulcast signal shall distribute the following
44-11 amounts from the total amount deducted as provided by Subsection
44-12 (a) of this section from each pool wagered on the signal at the
44-13 facility:
44-14 (1) a fee of 1.5 percent to be paid to the racetrack
44-15 facility in this state sending the signal; and
44-16 (2) a purse in the amount of 5.5 percent to be paid to
44-17 the official state breed registry for greyhounds for use at
44-18 racetracks in this state. The breed registry may use not more than
44-19 20 percent of this amount to administer this subdivision.
44-20 (e) The purse set aside under Subsection (c)(4) of this
44-21 section shall be deposited into an escrow account in the registry
44-22 of the commission. Any horse racetrack association in this state
44-23 may apply to the commission for receipt of all or part of the
44-24 escrowed purse account for use as purses. The commission shall
44-25 determine to which horse racetracks the escrowed purse account
44-26 shall be allocated and in what percentages, taking into
44-27 consideration purse levels, racing opportunities, and the financial
45-1 status of the requesting racetrack. The first distribution of the
45-2 escrowed purse account allocated to a racetrack under this section
45-3 may not be made before October 1, 1998.
45-4 (f) After October 15, 1998, a horse racetrack association
45-5 that is located not more than 75 miles from a greyhound racetrack
45-6 facility that offers wagering on a cross-species simulcast signal
45-7 may apply to the commission for an additional allocation of up to
45-8 20 percent of the funds in the escrowed purse account that is
45-9 attributable to the wagering on a cross-species simulcast signal at
45-10 the greyhound racetrack facility, if the horse racetrack facility
45-11 sends the cross-species simulcast signal to the greyhound
45-12 racetrack. If the applying horse racetrack can prove to the
45-13 commission's satisfaction that a decrease in the racetrack's handle
45-14 has occurred that is directly due to wagering on an interstate
45-15 cross-species simulcast signal at a greyhound racetrack facility
45-16 that is located not more than 75 miles from the applying racetrack,
45-17 the commission shall allocate the amounts from the escrowed purse
45-18 account as the commission considers appropriate to compensate the
45-19 racetrack for the decrease, but the amount allocated may not exceed
45-20 20 percent of the funds in the escrowed purse account that are
45-21 attributable to the wagering on the interstate cross-species
45-22 simulcast signal at the greyhound racetrack facility. Any amount
45-23 allocated by the commission under this subsection may be used by
45-24 the racetrack facility for any purpose.
45-25 (g) If a racing association purchases an interstate
45-26 simulcast signal and the cost of the signal is more than five
45-27 percent of the pari-mutuel pool, the commission shall reimburse the
46-1 racing association an amount equal to one-half of the signal cost
46-2 that is more than five percent of the pari-mutuel pool from the
46-3 escrowed purse account under Subsection (c)(4) of this section.
46-4 (h) A racetrack facility offering wagering on an intrastate
46-5 cross-species simulcast signal shall send the purse amount
46-6 specified under Subsection (c)(4) or (d)(2) of this section, as
46-7 appropriate, to the racetrack facility conducting the live race
46-8 that is being simulcast.
46-9 (i) A racing facility conducting a live race that is being
46-10 simulcast may charge the receiving racetrack facility a host fee in
46-11 addition to the amounts described in this section.
46-12 (j) The commission shall adopt rules relating to this
46-13 section and the oversight of amounts allocated under Subsections
46-14 (c) and (d) of this section.
46-15 SECTION 28. Article 6, Texas Racing Act (Article 179e,
46-16 Vernon's Texas Civil Statutes), is amended by adding Sections 6.092
46-17 and 6.093 to read as follows:
46-18 Sec. 6.092. OVERSIGHT OF USE OF FUNDS GENERATED BY
46-19 PARI-MUTUEL RACING. (a) The commission shall adopt reporting,
46-20 monitoring, and auditing requirements or other appropriate
46-21 performance measures for any funds distributed to or used by or any
46-22 function or service provided by the expenditure of any funds
46-23 distributed to or used by any organization that receives funds
46-24 generated by live or simulcast pari-mutuel racing.
46-25 (b) The commission shall adopt the requirements or
46-26 performance measures after consultation with the affected
46-27 organization. In adopting the rules, the commission shall give
47-1 consideration to the concerns of the affected organization.
47-2 (c) An organization receiving funds generated by live or
47-3 simulcast pari-mutuel racing shall annually file with the
47-4 commission a copy of an audit report prepared by an independent
47-5 certified public accountant. The audit shall include a
47-6 verification of any performance report sent to or required by the
47-7 commission.
47-8 (d) The commission may review any records or books of an
47-9 organization that submits an independent audit to the commission as
47-10 the commission determines necessary to confirm or further
47-11 investigate the findings of an audit or report.
47-12 (e) The commission by rule may suspend or withhold funds
47-13 from an organization that:
47-14 (1) it determines has failed to comply with the
47-15 requirements or performance measures adopted under Subsection (a)
47-16 of this section; or
47-17 (2) has, following an independent audit or other
47-18 report to the commission, material questions raised on the use of
47-19 funds by the organization.
47-20 Sec. 6.093. DEDUCTIONS FROM LIVE PARI-MUTUEL POOL. (a)(1)
47-21 A horse racing association, until January 1, 1999, shall set aside
47-22 for the state:
47-23 (A) an amount equal to one percent of each live
47-24 pari-mutuel pool from the first $100 million of the total amount of
47-25 all live pari-mutuel pools of the association in a calendar year;
47-26 (B) an amount equal to two percent of each live
47-27 pari-mutuel pool from the next $100 million of the total amount of
48-1 all live pari-mutuel pools of the association in a calendar year;
48-2 (C) an amount equal to three percent of the next
48-3 $100 million of the total amount of all live pari-mutuel pools of
48-4 the association in a calendar year;
48-5 (D) an amount equal to four percent of the next
48-6 $100 million of the total amount of all live pari-mutuel pools of
48-7 the association in a calendar year; and
48-8 (E) an amount equal to five percent of each live
48-9 pari-mutuel pool from the amount of all live pari-mutuel pools of
48-10 the association in a calendar year not covered by Paragraphs (A)
48-11 through (D) of this subdivision.
48-12 (2) A greyhound racing association, until January 1,
48-13 1999, shall set aside for the state:
48-14 (A) an amount equal to two percent of each live
48-15 pari-mutuel pool from the first $100 million of the total amount of
48-16 all live pari-mutuel pools of the association in a calendar year;
48-17 (B) an amount equal to three percent of each
48-18 live pari-mutuel pool from the next $100 million of the total
48-19 amount of all live pari-mutuel pools of the association in a
48-20 calendar year;
48-21 (C) an amount equal to four percent of each live
48-22 pari-mutuel pool from the next $100 million of the total amount of
48-23 all live pari-mutuel pools of the association in a calendar year;
48-24 (D) an amount equal to five percent of each live
48-25 pari-mutuel pool from the total amount of all live pari-mutuel
48-26 pools of the association in a calendar year not covered by
48-27 Paragraphs (A) through (C) of this subdivision; and
49-1 (E) 50 percent of the breakage.
49-2 (3) All amounts set aside by the association for the
49-3 state in Subdivisions (1) and (2) of this subsection shall be
49-4 applied to the reimbursement of all amounts of general revenue
49-5 appropriated for the administration and enforcement of this Act in
49-6 excess of the cumulative amount deposited to the Texas Racing
49-7 Commission fund until the earlier of:
49-8 (A) the excesses together with interest thereon
49-9 are reimbursed in full; or
49-10 (B) January 1, 1999.
49-11 (b) On or after January 1, 1999, a horse or greyhound racing
49-12 association shall set aside for the state from the live pari-mutuel
49-13 pool at the association:
49-14 (1) an amount equal to one percent of each live
49-15 pari-mutuel pool from the total amount of all live pari-mutuel
49-16 pools of the association in a calendar year in excess of $100
49-17 million but less than $200 million;
49-18 (2) an amount equal to two percent of each live
49-19 pari-mutuel pool from the total amount of all live pari-mutuel
49-20 pools of the association in a calendar year in excess of $200
49-21 million but less than $300 million;
49-22 (3) an amount equal to three percent of each live
49-23 pari-mutuel pool from the total amount of all live pari-mutuel
49-24 pools of the association in a calendar year in excess of $300
49-25 million but less than $400 million;
49-26 (4) an amount equal to four percent of each live
49-27 pari-mutuel pool from the total amount of all live pari-mutuel
50-1 pools of the association in a calendar year in excess of $400
50-2 million but less than $500 million; and
50-3 (5) an amount equal to five percent of each live
50-4 pari-mutuel pool from the total amount of all live pari-mutuel
50-5 pools of the association in a calendar year in excess of $500
50-6 million.
50-7 SECTION 29. Section 7.01, Texas Racing Act (Article 179e,
50-8 Vernon's Texas Civil Statutes), is amended to read as follows:
50-9 Sec. 7.01. License required. A person may [shall] not
50-10 participate in racing with pari-mutuel wagering [as regulated by
50-11 this Act] without first obtaining a license from the commission. [A
50-12 person who violates this section commits an offense.]
50-13 SECTION 30. Section 7.02, Texas Racing Act (Article 179e,
50-14 Vernon's Texas Civil Statutes), is amended by amending Subsection
50-15 (a) and adding Subsections (c)-(e) to read as follows:
50-16 (a) Each person, other than a spectator or person placing a
50-17 wager, involved in any capacity with racing with pari-mutuel
50-18 wagering under[, other than as a spectator, as regulated by] this
50-19 Act[,] must obtain a license under this article. [A person who
50-20 violates this subsection commits an offense.]
50-21 (c) If an examination is required for the issuance of a
50-22 license under this article, not later than the 30th day after the
50-23 date on which a licensing examination is administered under this
50-24 Act, the commission shall notify each examinee of the results of
50-25 the examination.
50-26 (d) If requested in writing by a person who fails a
50-27 licensing examination administered under this Act, the commission
51-1 shall furnish the person with an analysis of the person's
51-2 performance on the examination.
51-3 (e) The commission may not approve a management contract to
51-4 operate or manage a racetrack owned by a governmental entity unless
51-5 the racetrack license holder is an owner of the entity that
51-6 proposes to manage the racetrack.
51-7 SECTION 31. Section 7.04, Texas Racing Act (Article 179e,
51-8 Vernon's Texas Civil Statutes), is amended to read as follows:
51-9 Sec. 7.04. Licenses; grounds for denial, revocation, and
51-10 suspension. The commission, after notice and hearing, may refuse
51-11 to issue any original or renewal license under this article or may
51-12 revoke or suspend the license if it has reasonable grounds to
51-13 believe and finds that:
51-14 (1) the applicant has been convicted in a court of
51-15 competent jurisdiction of a violation of this Act or of any rule
51-16 adopted by the commission or has aided, abetted, or conspired with
51-17 any person to commit such a violation;
51-18 (2) the applicant has been convicted of a felony or of
51-19 any crime involving moral turpitude that is reasonably related to
51-20 the applicant's present fitness to hold a license under this Act;
51-21 (3) the applicant has violated or has caused to be
51-22 violated this Act or a rule of the commission in a manner that
51-23 involves moral turpitude, as distinguished from a technical
51-24 violation of this Act or of a rule;
51-25 (4) the applicant is unqualified, by experience or
51-26 otherwise, to perform the duties required of a licensee under this
51-27 Act;
52-1 (5) the applicant failed to answer or has falsely or
52-2 incorrectly answered a question in an original or renewal
52-3 application;
52-4 (6) the applicant fails to disclose the true ownership
52-5 or interest in a greyhound or horse as required by the rules of the
52-6 commission;
52-7 (7) the applicant is indebted to the state for any
52-8 fees or for the payment of a penalty imposed by this Act or by a
52-9 rule of the commission;
52-10 (8) the applicant is not of good moral character or
52-11 the applicant's reputation as a peaceable, law-abiding citizen in
52-12 the community where the applicant resides is bad;
52-13 (9) the applicant is in the habit of using alcoholic
52-14 beverages to an excess or uses a controlled substance as defined in
52-15 Chapter 481, Health and Safety Code, or a dangerous drug as defined
52-16 in Chapter 483, Health and Safety Code, or is mentally
52-17 incapacitated;
52-18 (10) the applicant may be excluded from a track
52-19 enclosure under [Article 13 or 14 of] this Act;
52-20 (11) the commission determines that the applicant has
52-21 improperly used a temporary pass, license certificate, credential,
52-22 or identification card issued under this Act;
52-23 (12) the applicant is residentially domiciled with a
52-24 person whose license has been revoked for cause within the 12
52-25 months immediately preceding the date of the present application;
52-26 (13) the applicant has failed or refused to furnish a
52-27 true copy of the application to the commission's district office in
53-1 the district in which the premises for which the permit is sought
53-2 are located; or
53-3 (14) the applicant is engaged or has engaged in
53-4 activities or practices that are detrimental to the best interests
53-5 of the public and the sport of horse racing or greyhound racing.
53-6 SECTION 32. Section 7.05, Texas Racing Act (Article 179e,
53-7 Vernon's Texas Civil Statutes), is amended to read as follows:
53-8 Sec. 7.05. License fees. (a) The commission shall adopt by
53-9 rule a fee schedule for licenses issued under this article.
53-10 (b) The commission shall base the license fees on the
53-11 relative or comparative incomes or property interests of the
53-12 various categories of licensees, with the lower income category of
53-13 licensees being charged nearer the minimum fee and the higher
53-14 income category of licensees charged nearer the maximum fee.
53-15 (c) In setting the fee schedule under Subsection (a) of this
53-16 section, the commission shall include the cost of criminal history
53-17 checks determined under Section 5.05 of this Act. The commission
53-18 may determine the best method for recouping this cost and complying
53-19 with the other provisions of this section, including collecting the
53-20 costs over an extended period.
53-21 SECTION 33. Section 7.07, Texas Racing Act (Article 179e,
53-22 Vernon's Texas Civil Statutes), is amended to read as follows:
53-23 Sec. 7.07. Term of license. (a) A license issued under
53-24 this article is valid for a period set by the commission not to
53-25 exceed 36 months following the date of its issuance. It is
53-26 renewable on application and payment of the fee in accordance with
53-27 the rules of the commission.
54-1 (b) The commission by rule may adopt a system under which
54-2 licenses expire on various dates during the year. For the year in
54-3 which the license expiration date is changed, license fees shall be
54-4 prorated on a monthly basis so that each licensee pays only that
54-5 portion of the license fee that is allocable to the number of
54-6 months during which the license is valid. On renewal of the
54-7 license on the new expiration date, the total license renewal fee
54-8 is payable.
54-9 SECTION 34. Article 7, Texas Racing Act (Article 179e,
54-10 Vernon's Texas Civil Statutes), is amended by adding Section 7.10
54-11 to read as follows:
54-12 Sec. 7.10. RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
54-13 (a) The commission may waive any prerequisite to obtaining a
54-14 license for an applicant, including any requirement to submit a set
54-15 of fingerprints, after reviewing the applicant's credentials and
54-16 determining that the applicant holds a valid license from another
54-17 state that has license requirements substantially equivalent to
54-18 those of this state.
54-19 (b) The commission may waive any prerequisite to obtaining a
54-20 license, including any requirement to submit a set of fingerprints,
54-21 for an applicant with a valid license from another state with which
54-22 the State of Texas has a reciprocity agreement. The commission may
54-23 enter into reciprocal agreements with other states to allow for
54-24 licensing by reciprocity.
54-25 SECTION 35. Section 9.01, Texas Racing Act (Article 179e,
54-26 Vernon's Texas Civil Statutes), is amended to read as follows:
54-27 Sec. 9.01. Texas-bred horses. Subject to this Act or any
55-1 rule of the commission, the [The] state horse breed registries
55-2 shall make reasonable rules to establish the qualifications of
55-3 accredited Texas-bred horses to promote, develop, and improve the
55-4 breeding of horses in this state. Rules adopted by a registry are
55-5 subject to commission approval.
55-6 SECTION 36. Section 10.04, Texas Racing Act (Article 179e,
55-7 Vernon's Texas Civil Statutes), is amended to read as follows:
55-8 Sec. 10.04. Texas-bred greyhounds. (a) Subject to this Act
55-9 or any rule of the commission, the [The] state greyhound breed
55-10 registry shall make reasonable rules to establish the
55-11 qualifications of accredited Texas-bred greyhounds to promote,
55-12 develop, and improve the breeding of greyhounds in this state.
55-13 Rules adopted by the registry are subject to commission approval.
55-14 (b) The commission shall adopt standards relating to the
55-15 operation of greyhound farms or other facilities where greyhounds
55-16 are raised for pari-mutuel racing.
55-17 SECTION 37. Section 11.011, Texas Racing Act (Article 179e,
55-18 Vernon's Texas Civil Statutes), is amended by amending Subsection
55-19 (g) and adding Subsections (h)-(m) to read as follows:
55-20 (g) Nothing in this Act is to be construed to prohibit
55-21 [allow] wagering on a simulcast horse race at a greyhound racetrack
55-22 in this state, or to prohibit [permit] wagering on a simulcast
55-23 greyhound race at a horse racetrack in this state. A horse
55-24 racetrack may not be required to accept a greyhound simulcast
55-25 signal, nor may a greyhound racetrack be required to accept a horse
55-26 simulcast signal.
55-27 (h) Except as provided by this section, a horse racetrack
56-1 facility that offers wagering on interstate greyhound race
56-2 simulcast signals must do so as provided by a contract with the
56-3 nearest greyhound racetrack. If an agreement between the
56-4 racetracks cannot be reached by October 1 of the year preceding the
56-5 calendar year in which the simulcasting is to occur, the horse
56-6 racetrack may purchase and offer wagering on greyhound race
56-7 simulcast signals and shall pay the amounts specified under Section
56-8 6.091(d)(1) of this Act to the nearest greyhound racetrack.
56-9 (i) Except as provided by this section, a greyhound
56-10 racetrack facility that offers wagering on interstate horse race
56-11 simulcast signals must do so as provided by a contract with the
56-12 nearest Class 1 horse racetrack. If an agreement between the
56-13 racetracks cannot be reached by October 1 of the year preceding the
56-14 calendar year in which the simulcasting is to occur, the greyhound
56-15 racetrack may purchase and offer wagering on interstate horse race
56-16 simulcast signals and shall pay the amounts specified in Section
56-17 6.091(c)(1) of this Act to the nearest Class 1 horse racetrack.
56-18 (j) A horse racetrack that offers wagering on interstate
56-19 greyhound simulcast races must offer wagering on all Texas
56-20 greyhound races made available for simulcast wagering. A greyhound
56-21 racetrack that offers wagering on interstate horse simulcast races
56-22 must offer wagering on all Texas horse races made available for
56-23 simulcast wagering.
56-24 (k) Wagering on a simulcast greyhound race at a horse
56-25 racetrack that conducts its inaugural meet within 12 months of
56-26 September 1, 1997, or at an operational horse racetrack within 60
56-27 miles of such racetrack may be conducted only pursuant to an
57-1 agreement between said racetracks.
57-2 (l) Notwithstanding other provisions of law, a greyhound
57-3 racing association and the state greyhound breed registry shall by
57-4 contract agree that each simulcast contract to which the greyhound
57-5 racing association is a party, including a simulcast contract with
57-6 a horse racing association or a simulcast contract with another
57-7 greyhound racing association, include terms that provide adequately
57-8 for the development of greyhound racing, breeding, purses, and any
57-9 actual or potential loss of live racing handle based on the
57-10 association's historical live racing schedule and handle in this
57-11 state. If a greyhound racing association and the state greyhound
57-12 breed registry fail to reach an agreement, the racing association
57-13 or the breed registry may submit the contract negotiations for
57-14 binding arbitration under Chapter 171, Civil Practice and Remedies
57-15 Code, and rules adopted by the commission. The arbitration must be
57-16 conducted by a board of three arbitrators. The greyhound racing
57-17 association shall appoint one arbitrator. The state greyhound
57-18 breed registry shall appoint one arbitrator. The arbitrators
57-19 appointed by the greyhound racing association and the state
57-20 greyhound breed registry shall appoint the third arbitrator. A
57-21 greyhound racing association and the state greyhound breed registry
57-22 shall each pay its own arbitration expenses. The greyhound racing
57-23 association and the state greyhound breed registry shall equally
57-24 pay the arbitrator fees and costs. This subsection does not apply
57-25 to a contract that was in effect before September 2, 1997.
57-26 (m) The commission shall not approve wagering on an
57-27 interstate simulcast race unless the receiving location consents to
58-1 wagering on interstate simulcast races at all other receiving
58-2 locations in this state.
58-3 SECTION 38. Section 11.04, Texas Racing Act (Article 179e,
58-4 Vernon's Texas Civil Statutes), is amended by amending Subsection
58-5 (c) and adding Subsection (e) to read as follows:
58-6 (c) The commission shall adopt rules prohibiting an
58-7 association from accepting a wager made on credit and shall adopt
58-8 rules providing for the use of [prohibiting] automatic banking
58-9 machines within the enclosure. The commission shall limit the use
58-10 of an automatic banking machine to:
58-11 (1) allow a person to have access to only the person's
58-12 checking account at a bank or other financial institution; and
58-13 (2) deliver no more than $200.
58-14 (e) An association that allows a machine in an enclosure as
58-15 provided by Subsection (c) shall collect a fee of $1 for each
58-16 transaction under Subsection (c). The commission shall adopt rules
58-17 providing for collection, reporting, and auditing of the
58-18 transaction fee. The association shall forward the fee to the
58-19 commission. The commission shall deposit the fee to the credit of
58-20 the general revenue fund.
58-21 SECTION 39. Section 11.06, Texas Racing Act (Article 179e,
58-22 Vernon's Texas Civil Statutes), is amended to read as follows:
58-23 Sec. 11.06. Minors. [(a)] The commission shall adopt rules
58-24 to prohibit wagering by a minor [prevent wagering by persons who
58-25 have not yet attained the minimum age required to purchase
58-26 alcoholic beverages in this state] and to prohibit [prevent] a
58-27 child [person under 16 years of age] from entering the viewing
59-1 section of a racetrack unless accompanied by the child's [person's]
59-2 parent or guardian. The rules may except any conduct described as
59-3 an affirmative defense by Section 14.13 of this Act [A person who
59-4 intentionally, knowingly, recklessly, or with criminal negligence
59-5 violates a rule adopted under this section commits an offense. An
59-6 offense under this section is a Class B misdemeanor].
59-7 [(b) A person commits an offense if the person intentionally
59-8 or knowingly engages in gaming at a racetrack when the person has
59-9 not yet attained the minimum age required to purchase alcoholic
59-10 beverages in this state. An offense under this subsection is a
59-11 Class C misdemeanor.]
59-12 SECTION 40. Section 11.08, Texas Racing Act (Article 179e,
59-13 Vernon's Texas Civil Statutes), is amended to read as follows:
59-14 Sec. 11.08. Money not claimed. Not later than the 61st day
59-15 after the closing day of a race meeting, an association shall pay
59-16 to the commission all distributable money [in a pari-mutuel pool]
59-17 that is subject to payment [to a claimant] under Section 11.07 of
59-18 this Act but that is not successfully claimed and that is not spent
59-19 on drug testing under the provisions of this Act.
59-20 SECTION 41. Section 11.09, Texas Racing Act (Article 179e,
59-21 Vernon's Texas Civil Statutes), is amended to read as follows:
59-22 Sec. 11.09. No liability to prosecution. The defense to
59-23 prosecution under Chapter 47, Penal Code, that the conduct was
59-24 authorized under this Act is available only to a person who is:
59-25 (1) [A person] lawfully conducting or participating in
59-26 the conduct of pari-mutuel wagering in connection with horse racing
59-27 or greyhound racing; or
60-1 (2) permitting the lawful conduct of an activity
60-2 described by Subdivision (1) of this section on any racetrack
60-3 facility [on any premises owned or leased by him or it under any
60-4 license lawfully issued under this Act is not liable to prosecution
60-5 for that conduct].
60-6 SECTION 42. Section 13.03, Texas Racing Act (Article 179e,
60-7 Vernon's Texas Civil Statutes), is amended to read as follows:
60-8 Sec. 13.03. CRIMINAL TRESPASS [Entry after ejection].
60-9 [(a)] A person, for the purposes of Section 30.05, Penal Code, is
60-10 presumed to have received notice that entry to an enclosure was
60-11 forbidden if the person:
60-12 (1) was excluded or ejected from the enclosure under
60-13 this Act;
60-14 (2) possessed, displayed, or used in the enclosure a
60-15 credential that the person was not authorized to use; or
60-16 (3) entered the enclosure using a falsified credential
60-17 [who has been excluded or ejected from an enclosure under this
60-18 article commits an offense if the person knowingly enters an
60-19 enclosure of the same or another licensed racetrack unless the
60-20 commission or a final judgment of a court has ordered that the rule
60-21 does not apply to the person].
60-22 [(b) An offense under this section is a Class A misdemeanor.]
60-23 [(c) The provisions of Section 7.22, Penal Code, imposing
60-24 criminal responsibility on a corporation or association for an
60-25 offense committed by its agent apply to conduct constituting an
60-26 offense under this section that is performed by an agent of a
60-27 corporation or association.]
61-1 SECTION 43. Article 14, Texas Racing Act (Article 179e,
61-2 Vernon's Texas Civil Statutes), is amended to read as follows:
61-3 ARTICLE 14. CRIMINAL [TOUTING AND OTHER] OFFENSES
61-4 Sec. 14.01. Touting. (a) A person commits an offense if,
61-5 with an intent to deceive and an intent to obtain a benefit
61-6 [knowing the information is false], the person knowingly makes a
61-7 false statement [or intentionally conveys] or offers, agrees to
61-8 convey, or conveys false information about a greyhound race or
61-9 horse race to another [others for compensation].
61-10 (b) Except as provided by Subsection (c) of this section, an
61-11 offense under this section is a Class A misdemeanor [felony of the
61-12 third degree].
61-13 (c) An offense under this section is a state jail felony [of
61-14 the second degree] if:
61-15 (1) the actor is a licensee under this Act or an
61-16 employee or member of the commission and the actor knowingly
61-17 represents that a member [an official] or employee of the
61-18 commission or a [of an association or an owner, trainer, jockey, or
61-19 other] person licensed by the commission is the source of the false
61-20 information; or
61-21 (2) the false statement or information was contained
61-22 in racing selection information provided to the public [the actor
61-23 previously has been finally convicted of an offense under this
61-24 section or has been convicted of a felony for which the punishment
61-25 received was a suspended sentence, probation, or a nonadjudicated
61-26 conviction which has not yet been fully served].
61-27 [(d) The provisions of Section 7.22, Penal Code, imposing
62-1 criminal responsibility on a corporation or association for an
62-2 offense committed by its agent apply to conduct constituting an
62-3 offense under this section that is performed by an agent of a
62-4 corporation or association.]
62-5 Sec. 14.02. Unlawful Possession or use of credential.
62-6 (a) A person commits an offense if the person knowingly or
62-7 intentionally possesses or displays a [license or] credential or
62-8 false credential that identifies [has been issued or purports to
62-9 have been issued by the commission and represents that] the person
62-10 as [is] the holder of the [license or] credential and [when] the
62-11 person knows:
62-12 (1) that the [license or] credential is not issued to
62-13 the person; or
62-14 (2) the person is not a licensee [if the person
62-15 impersonates in any way a person holding a license or credential
62-16 issued by the commission].
62-17 (b) An offense under this section is a Class C misdemeanor
62-18 [felony of the third degree].
62-19 [(c) The provisions of Section 7.22, Penal Code, imposing
62-20 criminal responsibility on a corporation or association for an
62-21 offense committed by its agent apply to conduct constituting an
62-22 offense under this section that is performed by an agent of a
62-23 corporation or association.]
62-24 [Sec. 14.03. ILLEGAL INFLUENCE OF RACE OUTCOME. (a) The
62-25 commission shall adopt rules prohibiting the illegal influencing of
62-26 the outcome of a race, including but not limited to the use of
62-27 medication, stimulants, or depressants to attempt to or to
63-1 influence illegally the outcome of a race.]
63-2 [(b) The commission may require prerace testing by any
63-3 invasive or noninvasive method or methods to determine whether such
63-4 a drug, chemical, or other substance has been administered. The
63-5 commission shall require postrace testing by such method or
63-6 methods. The commission shall adopt rules that require all such
63-7 tests to be conducted using state-of-the-art methods. On any
63-8 positive test showing the presence of prohibited drugs, chemicals,
63-9 or other substances, the stewards or racing judges may summarily
63-10 suspend any person who has administered or applied the drug,
63-11 chemical, or other substance or any electric device or spur pending
63-12 hearing by the stewards or judges with the right of appeal to the
63-13 commission. Such a suspension may be stayed, in the discretion of
63-14 the commission only, during the pendency of such appeal. In
63-15 addition, the stewards or racing judges may disqualify the affected
63-16 animal pursuant to rules adopted by the commission under this
63-17 section. The commission may require that urine samples be frozen
63-18 and maintained for a period that will enable veterinarians and
63-19 chemists to conduct follow-up tests to detect and identify
63-20 prohibited drugs. All other specimens shall be maintained for
63-21 testing purposes in the manner prescribed by the commission. In the
63-22 event a sample tests positive for a drug, chemical, or other
63-23 substance, all samples, including the split portion, shall be
63-24 maintained until the matter is finally adjudicated. A licensee
63-25 whose animal has tested positive for a drug, chemical, or other
63-26 substance is entitled to have a split portion of the sample tested
63-27 at a testing facility authorized to perform drug testing under
64-1 Section 3.07 of this Act and selected by the licensee. The
64-2 commission shall adopt rules regarding the procedure for the split
64-3 testing.]
64-4 [(c) The official licensed trainer of each such animal is
64-5 deemed by law to be the absolute insurer that no prohibited drug,
64-6 chemical, or other substance has been administered and shall be
64-7 responsible to see that such a drug, chemical, or other substance
64-8 is not administered.]
64-9 [(d) By applying for a license under this Act, each
64-10 occupational licensee consents to both prerace and postrace search
64-11 for the purpose of determining the presence of such a drug,
64-12 chemical, or other substance or of any electrical device or other
64-13 device that might have the effect of unnaturally depressing,
64-14 stimulating, or exciting any animal during a race. The commission
64-15 shall adopt rules relating to drug testing for occupational
64-16 licensees.]
64-17 [(e) A person who knowingly violates a rule adopted under
64-18 this section may be barred, either for a period set by the
64-19 commission or for life, from receiving any license under this Act
64-20 or may be barred for a period set by the commission or for life
64-21 from any premises licensed under this Act, or both.]
64-22 [(f) A person who knowingly violates a rule adopted under
64-23 this section commits a felony of the third degree for the first
64-24 offense and a felony of the second degree for a second or
64-25 subsequent offense.]
64-26 [(g) A person who gives, offers or promises to give, or
64-27 attempts to give or offer any money, bribe, or thing of value to
65-1 any jockey, trainer, owner, groom, or other person associated with
65-2 or interested in any stable, kennel, horse, or dog, or race in
65-3 which any horse or dog participates, with the intention or
65-4 understanding or agreement that such individual shall not use his
65-5 best efforts to win such race, or shall so conduct himself in such
65-6 race that any other participant shall thereby be assisted or
65-7 enabled to win such race, or shall so conduct himself in such race
65-8 as to limit his finishing or placing in such race commits an
65-9 offense. Such an offense is a felony of the third degree.]
65-10 [(h) A person who accepts, attempts to accept, offers to
65-11 accept, or agrees to accept any money, bribe, or thing of value,
65-12 with the intention or understanding or agreement that he will not
65-13 use his best efforts to win any horse or dog race, in which he is
65-14 the jockey, trainer, groom, owner, or other interested party or is
65-15 about to participate in, or will so conduct himself in such race
65-16 that any other horse or dog shall thereby be assisted or enabled to
65-17 win such race, or will so conduct himself in such race as to limit
65-18 his finishing or placing in such race commits an offense. Such an
65-19 offense is a felony of the third degree.]
65-20 [(i) A person who gives, offers to give, promises to give,
65-21 or attempts to give any money, bribe, or thing of value to any
65-22 person who is presiding or officiating at or who is about to
65-23 preside or officiate at any dog or horse race with the intention or
65-24 agreement or understanding that such person shall corruptly or
65-25 dishonestly preside or officiate at any such race with the
65-26 intention or purpose that the result of the race will be affected
65-27 or influenced thereby commits an offense. Such an offense is a
66-1 felony of the third degree.]
66-2 Sec. 14.04. Illegal access. (a) A person commits an
66-3 offense if the person is a licensee and the person [licensee who]
66-4 knowingly or intentionally permits, facilitates, or allows access,
66-5 to an enclosure where races are conducted, to another [a] person
66-6 who the person knows:
66-7 (1) has engaged in bookmaking, touting, or illegal
66-8 wagering;
66-9 (2) derives[, whose] income [is] from illegal
66-10 activities or enterprises;
66-11 (3) [, or who] has been convicted of a violation of
66-12 this Act; or
66-13 (4) is excluded by the commission from entering a
66-14 racetrack facility[, commits an offense].
66-15 (b) An offense under this section is a Class B misdemeanor
66-16 [felony of the third degree].
66-17 Sec. 14.05. RACES CONDUCTED ON CERTAIN INDIAN LANDS. (a) A
66-18 person who is subject to this section commits an offense if the
66-19 person intentionally or knowingly wagers on the result of a
66-20 greyhound race or horse race conducted in this state that:
66-21 (1) is held on an American Indian reservation or on
66-22 American Indian trust land located in this state; and
66-23 (2) is not held under the supervision of the
66-24 commission under rules adopted under this Act.
66-25 (b) An offense under this section is a felony of the third
66-26 degree.
66-27 (c) It is an exception to the application of this section
67-1 that the person is a member of a recognized Texas Indian tribe who
67-2 lives on a reservation or on trust lands located in this state.
67-3 Sec. 14.06. False statements. (a) A person commits an
67-4 offense if the person [intentionally,] knowingly[, recklessly, or
67-5 with criminal negligence] makes a material and false, incorrect, or
67-6 deceptive statement to another who is conducting an investigation
67-7 or exercising discretion under this Act or a rule adopted under
67-8 this Act.
67-9 (b) In this section, the [The] term "statement" means a
67-10 representation of fact and includes[, but is not limited to]:
67-11 (1) a written or oral statement [statements]; or
67-12 (2) a sworn or unsworn statement [statements].
67-13 (c) An offense under this section is a state jail felony
67-14 unless the statement was material in a commission action relating
67-15 to a racetrack license, in which event the offense is a felony of
67-16 the third degree.
67-17 Sec. 14.07. HINDERING OF ENTRY OR SEARCH. (a) A person
67-18 commits an offense if the person [intentionally, knowingly,
67-19 recklessly, or] with criminal negligence refuses, denies, or
67-20 hinders entry to another who is exercising or attempting to
67-21 exercise a power of entry under this Act or a commission rule.
67-22 (b) A person commits an offense if the person with criminal
67-23 negligence refuses, denies, hinders, interrupts, disrupts, impedes,
67-24 or otherwise interferes with a search by a person exercising or
67-25 attempting to exercise a power to search under this Act or a
67-26 commission rule.
67-27 (c) [(b)] An offense under this section is a Class B
68-1 misdemeanor.
68-2 Sec. 14.08. FORGING PARI-MUTUEL TICKET. (a) A person
68-3 commits an offense if the person intentionally or knowingly forges
68-4 a pari-mutuel ticket with the intent to defraud or harm another.
68-5 (b) In this section, "forge" has the meaning assigned by
68-6 Section 32.21, Penal Code.
68-7 (c) An offense under this section is a felony of the third
68-8 degree.
68-9 Sec. 14.09. IMPERSONATING A LICENSEE. (a) A person commits
68-10 an offense if the person impersonates a licensee with the intent to
68-11 induce another person to submit to the actor's purported authority
68-12 as a licensee or to rely on the actor's actions as an alleged
68-13 licensee.
68-14 (b) An offense under this section is a Class A misdemeanor.
68-15 Sec. 14.10. UNLAWFUL INFLUENCE ON RACING. (a) A person
68-16 commits an offense if the person possesses a prohibited device or
68-17 prohibited substance on a racetrack facility, in an enclosure, or
68-18 at a training facility.
68-19 (b) An offense under Subsection (a) of this section is a
68-20 Class A misdemeanor, unless the actor possessed the device or
68-21 substance with the intent to influence or affect the outcome of a
68-22 horse or greyhound race in a manner contrary to this Act or a
68-23 commission rule, in which event it is a state jail felony.
68-24 (c) A person commits an offense if, with the intent to
68-25 influence or affect a horse or greyhound race in a manner contrary
68-26 to this Act or a commission rule, the person:
68-27 (1) uses or offers to use a prohibited device; or
69-1 (2) uses or offers to use a prohibited substance.
69-2 (d) An offense under Subsection (c) of this section is a
69-3 felony of the third degree.
69-4 Sec. 14.11. BRIBERY AND CORRUPT INFLUENCE. (a) A person
69-5 commits an offense if, with the intent to influence or affect the
69-6 outcome of a race in a manner contrary to this Act or a commission
69-7 rule, the person offers, confers, agrees to confer on another, or
69-8 solicits, accepts, or agrees to accept from another person any
69-9 benefit as consideration for the actions of a person who receives
69-10 the benefit relating to the conduct, decision, opinion,
69-11 recommendation, vote, or exercise of discretion as a licensee or
69-12 other person associated with or interested in any stable, kennel,
69-13 horse, greyhound, or horse or greyhound race.
69-14 (b) An offense under this section is a state jail felony,
69-15 unless the recipient of the benefit is a steward, judge, or other
69-16 racetrack official exercising authority over a horse or greyhound
69-17 race that the person providing or offering the benefit intended to
69-18 influence, in which event it is a felony of the third degree.
69-19 Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is
69-20 a member of the commission commits an offense if the person:
69-21 (1) accepts, directly or indirectly, employment or
69-22 remuneration from a racetrack facility, association, or other
69-23 licensee, including a facility, association, or licensee located or
69-24 residing in another state;
69-25 (2) wagers or causes a wager to be placed on the
69-26 outcome of a horse or greyhound race conducted in this state; or
69-27 (3) accepts or is entitled to any part of a purse to
70-1 be paid to an animal in a race conducted in this state.
70-2 Sec. 14.13. OFFENSES INVOLVING A MINOR. (a) A person
70-3 commits an offense if the person with criminal negligence permits,
70-4 facilitates, or allows:
70-5 (1) wagering by a minor at a racetrack facility; or
70-6 (2) entry by a child to the viewing section of a
70-7 racetrack facility.
70-8 (b) An offense under Subsection (a) of this section is a
70-9 Class B misdemeanor.
70-10 (c) A person commits an offense if the person is a minor and
70-11 intentionally or knowingly engages in wagering at a racetrack.
70-12 (d) An offense under Subsection (c) of this section is a
70-13 Class C misdemeanor.
70-14 (e) It is an affirmative defense to prosecution of an
70-15 offense under Subsection (a)(2) that a child was accompanied by and
70-16 was in the physical presence of a parent, guardian, or spouse who
70-17 was 21 years of age or older.
70-18 (f) It is an affirmative defense to prosecution of an
70-19 offense under Subsection (a) of this section that the minor falsely
70-20 represented the minor's age by displaying to the person an
70-21 apparently valid Texas driver's license or identification card
70-22 issued by the Department of Public Safety that contains a physical
70-23 description consistent with the minor's appearance.
70-24 Sec. 14.14. UNLAWFUL RACING. A person commits an offense
70-25 if:
70-26 (1) the person participates, permits, or conducts a
70-27 greyhound or horse race at a licensed racetrack facility;
71-1 (2) the person wagers on the partial or final outcome
71-2 of the greyhound or horse race or knows or reasonably should know
71-3 that another is betting on the partial or final outcome of the
71-4 race; and
71-5 (3) the race is not part of a performance or meeting
71-6 conducted under this Act or commission rule.
71-7 Sec. 14.15. PARI-MUTUEL RACING WITHOUT LICENSE. (a) A
71-8 person commits an offense if, without a license, the person
71-9 participates or is otherwise involved in, in any capacity,
71-10 greyhound racing or horse racing with pari-mutuel wagering.
71-11 (b) It is an affirmative defense to prosecution under
71-12 Subsection (a) of this section that the actor was a spectator or a
71-13 person placing a wager.
71-14 (c) An offense under Subsection (a) of this section is a
71-15 Class A misdemeanor, unless the actor was required by this Act to
71-16 obtain a racetrack license, in which event it is a state jail
71-17 felony.
71-18 Sec. 14.16. RACING WITHOUT LICENSE. (a) A person commits
71-19 an offense if the person:
71-20 (1) conducts a greyhound or horse race without a
71-21 racetrack license; and
71-22 (2) knows or reasonably should know that another
71-23 person is betting on the final or partial outcome of the race.
71-24 (b) An offense under this section is a felony of the third
71-25 degree.
71-26 Sec. 14.17. FAILURE TO DISPLAY CREDENTIAL. (a) A person
71-27 commits an offense if the person intentionally or knowingly:
72-1 (1) fails or refuses to display a credential to
72-2 another after a lawful request; or
72-3 (2) fails or refuses to give the person's name,
72-4 residence address, or date of birth to another after a lawful
72-5 request.
72-6 (b) In this section, "lawful request" means a request from
72-7 the commission, an authorized agent of the commission, the director
72-8 or a commissioned officer of the Department of Public Safety, a
72-9 peace officer, or a steward or judge at any time and any restricted
72-10 location that:
72-11 (1) is on a racetrack facility; and
72-12 (2) is not a public place.
72-13 (c) Except as provided by Subsection (d) of this section, an
72-14 offense under this section is a Class B misdemeanor.
72-15 (d) At the punishment stage of a trial for an offense under
72-16 Subsection (a)(1) of this section, the defendant may raise an issue
72-17 as to whether the defendant was a licensee at the time of the
72-18 offense. If the defendant proves the issue, the offense is a Class
72-19 C misdemeanor.
72-20 Sec. 14.18. SEARCH AND SEIZURE. (a) A person consents to a
72-21 search at a time and location described in Subsection (b) of this
72-22 section for a prohibited device, prohibited substance, or other
72-23 contraband if the person:
72-24 (1) accepts a license or other credential issued under
72-25 this Act; or
72-26 (2) enters a racetrack facility under the authority of
72-27 a license or other credential alleged to have been issued under
73-1 this Act.
73-2 (b) A search may be conducted by a commissioned officer of
73-3 the Department of Public Safety or a peace officer, including a
73-4 peace officer employed by the commission, at any time and at any
73-5 location that is on a racetrack facility, except a location:
73-6 (1) excluded by commission rule from searches under
73-7 this section; or
73-8 (2) provided by an association under commission rule
73-9 for private storage of personal items belonging to a licensee
73-10 entering a racetrack facility.
73-11 (c) A person conducting a search under Subsection (b) of
73-12 this section may seize any prohibited device, prohibited substance,
73-13 or other contraband discovered during the search.
73-14 Sec. 14.19. PROSECUTION. A person who is subject to
73-15 prosecution for a penal offense under this Act and another law may
73-16 be prosecuted under either law.
73-17 Sec. 14.20. COMMISSION AUTHORITY. This article may not be
73-18 construed to restrict the commission's administrative authority to
73-19 enforce this Act or commission rules to the fullest extent
73-20 authorized by this Act.
73-21 Sec. 14.21. VENUE FOR CRIMINAL PROSECUTION. The venue for
73-22 the prosecution of a criminal offense under this Act is in Travis
73-23 County or in a county where an element of the offense occurred.
73-24 SECTION 44. Section 15.01, Texas Racing Act (Article 179e,
73-25 Vernon's Texas Civil Statutes), is amended to read as follows:
73-26 Sec. 15.01. GENERAL PENALTY. If [With regard to any
73-27 provision of this Act that is a penal offense, if] no specific
74-1 penalty is provided for a provision of this Act that is a penal
74-2 offense, a person who violates the [such a] provision commits a
74-3 state jail felony [of the third degree].
74-4 SECTION 45. Article 16, Texas Racing Act (Article 179e,
74-5 Vernon's Texas Civil Statutes), is amended by adding Section 16.021
74-6 to read as follows:
74-7 Sec. 16.021. APPROVAL OF SIMULCAST RACES. The commissioners
74-8 court of a county in which there is a racetrack conducting live
74-9 racing, on its own motion by a majority vote of its members, may
74-10 order an election to approve pari-mutuel wagering on simulcast
74-11 greyhound or horse races.
74-12 SECTION 46. Section 16.11(b), Texas Racing Act (Article
74-13 179e, Vernon's Texas Civil Statutes), is amended to read as
74-14 follows:
74-15 (b) The ballots shall be printed to permit voting for or
74-16 against the proposition: "Legalizing pari-mutuel wagering on horse
74-17 races in __________ County," [or] "Legalizing pari-mutuel wagering
74-18 on greyhound races in __________ County," or "Authorizing
74-19 pari-mutuel wagering on simulcast races in _____ County," as
74-20 appropriate.
74-21 SECTION 47. Section 16.12(a), Texas Racing Act (Article
74-22 179e, Vernon's Texas Civil Statutes), is amended to read as
74-23 follows:
74-24 (a) If a majority of the votes cast in the election are for
74-25 the legalization of pari-mutuel wagering on horse races or
74-26 greyhound races in the county, or for the authorization of
74-27 pari-mutuel wagering on simulcast races in the county, as
75-1 appropriate, the commissioners court shall certify that fact to the
75-2 secretary of state not later than the 10th day after the date of
75-3 the canvass of the returns.
75-4 SECTION 48. Section 18.01(a), Texas Racing Act (Article
75-5 179e, Vernon's Texas Civil Statutes), is amended to read as
75-6 follows:
75-7 (a) The Texas Racing Commission is subject to Chapter 325,
75-8 Government Code (Texas Sunset Act). Unless continued in existence
75-9 as provided by that chapter, and except as provided by Subsections
75-10 (b) and (c) of this section, the commission is abolished and this
75-11 Act expires September 1, 2005 [1997].
75-12 SECTION 49. Section 18.06, Texas Racing Act (Article 179e,
75-13 Vernon's Texas Civil Statutes), is amended to read as follows:
75-14 Sec. 18.06. Release of liability. A member of the
75-15 commission, an employee of the commission, a steward or judge, an
75-16 association, a horsemen's organization, or any other person
75-17 regulated under this Act is not liable to any individual,
75-18 corporation, business association, or other entity for a cause of
75-19 action that arises out of that person's performance or exercise of
75-20 discretion in the implementation or enforcement of this Act or a
75-21 rule adopted under this Act if the person has acted in good faith.
75-22 SECTION 50. Article 18, Texas Racing Act (Article 179e,
75-23 Vernon's Texas Civil Statutes), is amended by adding Section 18.08
75-24 to read as follows:
75-25 Sec. 18.08. DISTANCE LEARNING. The commission may provide
75-26 assistance to members of the racing industry who are attempting to
75-27 develop or implement adult, youth, or continuing education programs
76-1 that use distance learning.
76-2 SECTION 51. Section 466.155(a), Government Code, is amended
76-3 to read as follows:
76-4 (a) After a hearing, the director shall deny an application
76-5 for a license or the commission shall suspend or revoke a license
76-6 if the director or commission, as applicable, finds that the
76-7 applicant or sales agent:
76-8 (1) is an individual who:
76-9 (A) has been convicted of a felony, criminal
76-10 fraud, gambling or a gambling-related offense, or a misdemeanor
76-11 involving moral turpitude, if less than 10 years has elapsed since
76-12 the termination of the sentence, parole, mandatory supervision, or
76-13 probation served for the offense;
76-14 (B) is or has been a professional gambler;
76-15 (C) is married to an individual:
76-16 (i) described in Paragraph (A) or (B); or
76-17 (ii) who is currently delinquent in the
76-18 payment of any state tax;
76-19 (D) is an officer or employee of the commission
76-20 or a lottery operator; or
76-21 (E) is a spouse, child, brother, sister, or
76-22 parent residing as a member of the same household in the principal
76-23 place of residence of a person described by Paragraph (D);
76-24 (2) is not an individual, and an individual described
76-25 in Subdivision (1):
76-26 (A) is an officer or director of the applicant
76-27 or sales agent;
77-1 (B) holds more than 10 percent of the stock in
77-2 the applicant or sales agent;
77-3 (C) holds an equitable interest greater than 10
77-4 percent in the applicant or sales agent;
77-5 (D) is a creditor of the applicant or sales
77-6 agent who holds more than 10 percent of the applicant's or sales
77-7 agent's outstanding debt;
77-8 (E) is the owner or lessee of a business that
77-9 the applicant or sales agent conducts or through which the
77-10 applicant will conduct a ticket sales agency;
77-11 (F) shares or will share in the profits, other
77-12 than stock dividends, of the applicant or sales agent; or
77-13 (G) participates in managing the affairs of the
77-14 applicant or sales agent;
77-15 (3) is currently delinquent in the payment of any
77-16 state tax;
77-17 (4) is a person whose location for the sales agency
77-18 is:
77-19 (A) [a racetrack at which wagering is authorized
77-20 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
77-21 Statutes);]
77-22 [(B)] a location licensed for games of bingo
77-23 under the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
77-24 Statutes);
77-25 (B) [(C)] on land that is owned by:
77-26 (i) this state; or
77-27 (ii) a political subdivision of this state
78-1 and on which is located a public primary or secondary school, an
78-2 institution of higher education, or an agency of the state; or
78-3 (C) [(D)] a location for which a person holds a
78-4 wine and beer retailer's permit, mixed beverage permit, mixed
78-5 beverage late hours permit, private club registration permit, or
78-6 private club late hours permit issued under Chapter 25, 28, 29, 32,
78-7 or 33, Alcoholic Beverage Code; or
78-8 (5) has violated this chapter or a rule adopted under
78-9 this chapter.
78-10 SECTION 52. Section 481.172, Government Code, is amended to
78-11 read as follows:
78-12 Sec. 481.172. Duties. The department shall:
78-13 (1) promote and advertise within the United States and
78-14 in foreign countries, by radio, television, newspaper, and other
78-15 means considered appropriate, tourism in this state by non-Texans,
78-16 including persons from foreign countries, and distribute
78-17 promotional materials through appropriate agencies, including the
78-18 United States Travel and Tourism Agency;
78-19 (2) encourage travel by Texans to this state's scenic,
78-20 historical, natural, agricultural, educational, recreational, and
78-21 other attractions;
78-22 (3) coordinate and stimulate orderly and accelerated
78-23 development of tourist attractions throughout this state;
78-24 (4) conduct a public relations campaign to create a
78-25 responsible and accurate national and international image of this
78-26 state;
78-27 (5) cooperate fully with the Parks and Wildlife
79-1 Department in all matters relating to promotion of tourism;
79-2 (6) cooperate with the Texas Transportation Commission
79-3 in the administration of the commission's collateral program of
79-4 highway map distribution and operation of travel information
79-5 bureaus and other tourist-related functions of the commission;
79-6 [and]
79-7 (7) encourage communities, organizations, and
79-8 individuals in this state to cooperate with its program by their
79-9 activities and use of their own funds and collaborate with those
79-10 organizations and other governmental entities in the pursuit of the
79-11 objectives of this subchapter; and
79-12 (8) promote and encourage the horse racing and
79-13 greyhound racing industry, if funds are appropriated for the
79-14 promotion or encouragement.
79-15 SECTION 53. Section 151.0035, Tax Code, is amended to read
79-16 as follows:
79-17 Sec. 151.0035. "DATA PROCESSING SERVICE". "Data processing
79-18 service" includes word processing, data entry, data retrieval, data
79-19 search, information compilation, payroll and business accounting
79-20 data production, the performance of a totalisator service with the
79-21 use of computational equipment required by the Texas Racing Act
79-22 (Article 179e, Vernon's Texas Civil Statutes), and other
79-23 computerized data and information storage or manipulation. "Data
79-24 processing service" also includes the use of a computer or computer
79-25 time for data processing whether the processing is performed by the
79-26 provider of the computer or computer time or by the purchaser or
79-27 other beneficiary of the service.
80-1 SECTION 54. Sections 2.07, 3.01, 6.08(c), 6.09(b), 11.04(d),
80-2 15.02, and 18.02, Texas Racing Act (Article 179e, Vernon's Texas
80-3 Civil Statutes), are repealed.
80-4 SECTION 55. (a) This Act takes effect September 1, 1997.
80-5 (b) The changes in law made by this Act relating to the
80-6 qualifications and appointment of members to the Texas Racing
80-7 Commission do not affect the entitlement of a member of the
80-8 commission serving immediately before the effective date of this
80-9 Act to continue to serve on the commission for the term to which
80-10 the member was appointed. As the terms of members of the
80-11 commission expire or as vacancies on the commission occur, the
80-12 governor shall make appointments to the commission to achieve as
80-13 soon as possible the membership plan prescribed for the commission
80-14 by the Texas Racing Act (Article 179e, Vernon's Texas Civil
80-15 Statutes), as amended by this Act.
80-16 (c) The Texas Racing Commission shall review all of the
80-17 rules of the commission before January 1, 2002. The commission,
80-18 following the review, shall readopt, modify, or repeal the rules
80-19 before January 1, 2002. In reviewing the rules of the commission,
80-20 the commission shall, to the extent feasible, attempt to have
80-21 uniform approaches to the regulation of activities related to horse
80-22 racing and greyhound racing.
80-23 (d) The authority for rulemaking and licensing and for any
80-24 action relating exclusively to horse racing or exclusively to
80-25 greyhound racing that was granted to a separate section of the
80-26 Texas Racing Commission is transferred to the Texas Racing
80-27 Commission.
81-1 SECTION 56. For the purpose of providing a fair and
81-2 effective transition for the racing stewards and judges from
81-3 employment by an association to employment by the state, the Texas
81-4 Racing Commission shall provide an opportunity for a steward or
81-5 judge to obtain an exemption from the application of Section
81-6 2.12(c), Texas Racing Act (Article 179e, Vernon's Texas Civil
81-7 Statutes), as amended by this Act. The request for an exemption
81-8 must be filed by a judge or steward with the Texas Racing
81-9 Commission on or before October 31, 1997. The executive secretary
81-10 may approve, limit, or deny the exemption as determined to be
81-11 appropriate under standards adopted by the commission to promote
81-12 fairness and the purposes of this Act.
81-13 SECTION 57. All amounts, estimated to be $2,741,015 together
81-14 with $194,741 in interest, that have been transferred into Fund 517
81-15 since fiscal year 1992 are applied to reimburse any amount of
81-16 general revenue appropriated for the administration and enforcement
81-17 of the Texas Racing Act that is in excess of the cumulative amount
81-18 deposited in the Texas Racing Commission fund.
81-19 SECTION 58. For the purpose of providing a study of the
81-20 growth and progress of horse racing in this state, the lieutenant
81-21 governor may create a senate interim committee to report to the
81-22 76th Legislature, Regular Session, 1999. The committee shall
81-23 consider the overall performance and growth of the state's horse
81-24 racing industry and the relationship between the thoroughbred and
81-25 quarter horse breeds, the horse racing associations, and the Texas
81-26 Racing Commission as that relationship relates to the availability
81-27 of horse racing opportunities and live and simulcasting wagering.
82-1 The Texas Racing Commission shall provide assistance to the interim
82-2 committee.
82-3 SECTION 59. From September 1, 1997, through December 31,
82-4 1997, the Texas Racing Commission shall allow cross-species
82-5 simulcasting to be conducted under the terms of an agreement, if an
82-6 agreement exists, or, if no agreement exists, as provided by
82-7 Section 6.091, Texas Racing Act (Article 179e, Vernon's Texas Civil
82-8 Statutes), as amended by this Act.
82-9 SECTION 60. (a) The changes in law made by this Act apply
82-10 only to an offense committed on or after the effective date of this
82-11 Act. For purposes of this section, an offense is committed before
82-12 the effective date of this Act if any element of the offense occurs
82-13 before the effective date.
82-14 (b) An offense committed before the effective date of this
82-15 Act is covered by the law in effect when the offense was committed,
82-16 and the former law is continued in effect for this purpose.
82-17 SECTION 61. The importance of this legislation and the
82-18 crowded condition of the calendars in both houses create an
82-19 emergency and an imperative public necessity that the
82-20 constitutional rule requiring bills to be read on three several
82-21 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1445 was passed by the House on April
16, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1445 on May 22, 1997, by a non-record
vote; and that the House adopted H.C.R. No. 316 authorizing certain
corrections in H.B. No. 1445 on May 28, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1445 was passed by the Senate, with
amendments, on May 20, 1997, by a viva-voce vote; and that the
Senate adopted H.C.R. No. 316 authorizing certain corrections in
H.B. No. 1445 on May 29, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor