1-1 By: Gray (Senate Sponsor - Armbrister) H.B. No. 1445
1-2 (In the Senate - Received from the House April 17, 1997;
1-3 April 18, 1997, read first time and referred to Committee on State
1-4 Affairs; May 18, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 2; May 18, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1445 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the continuation and functions of the Texas Racing
1-11 Commission and to the transfer of certain commission functions to
1-12 the Texas Department of Commerce; providing penalties.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 1.02, Texas Racing Act (Article 179e,
1-15 Vernon's Texas Civil Statutes), is amended to read as follows:
1-16 Sec. 1.02. PURPOSE [PURPOSES]. The purpose [purposes] of
1-17 this Act is [are] to [encourage agriculture, the horse-breeding
1-18 industry, the horse-training industry, the greyhound-breeding
1-19 industry, tourism, and employment opportunities in this state
1-20 related to horse racing and greyhound racing and to] provide for
1-21 the strict regulation of horse racing and greyhound racing and the
1-22 control of pari-mutuel wagering in connection with that racing.
1-23 SECTION 2. Section 1.03, Texas Racing Act (Article 179e,
1-24 Vernon's Texas Civil Statutes), is amended by adding Subdivisions
1-25 (67)-(79) to read as follows:
1-26 (67) "Racetrack facility" means a facility operated by
1-27 an association within its enclosure for the purpose of presenting
1-28 races for pari-mutuel wagering.
1-29 (68) "Child" means a person younger than 16 years of
1-30 age.
1-31 (69) "Minor" means a person younger than 21 years of
1-32 age.
1-33 (70) "Contraband" means:
1-34 (A) any item or thing the possession of which is
1-35 unlawful under this Act, a commission rule, or other law;
1-36 (B) any item or thing that might reasonably have
1-37 the effect of unnaturally depressing, stimulating, or exciting an
1-38 animal during a race in a manner contrary to this Act or commission
1-39 rule, including a prohibited device or substance; or
1-40 (C) a document, including a credential or forged
1-41 ticket, possessed by an individual or used by an individual in
1-42 violation of this Act or a commission rule.
1-43 (71) "Prohibited device" means:
1-44 (A) a spur or an electrical or other device
1-45 prohibited by a commission rule regulating the unlawful influence
1-46 of a race; or
1-47 (B) a device specifically designed, made, or
1-48 adapted to influence or affect the outcome of a race in a manner
1-49 contrary to this Act or a commission rule.
1-50 (72) "Prohibited substance" means a drug, chemical, or
1-51 other substance that:
1-52 (A) in its use or intended use, is reasonably
1-53 capable of influencing or affecting the outcome of a race in a
1-54 manner contrary to this Act or a commission rule; and
1-55 (B) is prohibited by a commission rule
1-56 regulating the unlawful influence of a race.
1-57 (73) "Unlawful touting" means an offense described by
1-58 Section 14.01 of this Act or a similar offense under the laws of
1-59 another state.
1-60 (74) "Race" includes a live audio and visual signal of
1-61 a race.
1-62 (75) "Outstanding ticket" means a pari-mutuel ticket
1-63 not presented for payment before the end of the greyhound racing or
1-64 horse racing day for which the ticket was purchased.
2-1 (76) "Pari-mutuel voucher" means a bearer instrument
2-2 issued by a pari-mutuel wagering machine that represents money
2-3 owned by a wagering patron and held by an association, including
2-4 winnings from a pari-mutuel wager.
2-5 (77) "Horsemen's organization" means an organization
2-6 recognized by the commission that represents horse owners and
2-7 trainers in negotiating and contracting with associations on
2-8 subjects relating to racing and in representing and advocating the
2-9 interests of horse owners and trainers before administrative,
2-10 legislative, and judicial forums.
2-11 (78) "Cross-species simulcast signal" means a
2-12 simulcast signal of a horse race at a greyhound racetrack facility
2-13 or a simulcast signal of a greyhound race at a horse racetrack
2-14 facility.
2-15 (79) "Simulcasting facility" means a facility that is
2-16 registered with the commission, that is owned or operated by a
2-17 greyhound racetrack licensed by the commission, and that is located
2-18 outside the enclosure of a racetrack.
2-19 SECTION 3. Sections 2.02(a) and (b), Texas Racing Act
2-20 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
2-21 as follows:
2-22 (a) The commission consists of six members appointed by the
2-23 governor with the advice and consent of the senate and two ex
2-24 officio members who shall have the right to vote. The ex officio
2-25 members are:
2-26 (1) the chairman of the Public Safety Commission or a
2-27 member of the Public Safety Commission designated by the chairman
2-28 of the Public Safety Commission; and
2-29 (2) the comptroller of public accounts or the
2-30 comptroller's designee. [In making appointments to the commission,
2-31 the governor shall strive to achieve representation by all the
2-32 population groups of the state with regard to economic status, sex,
2-33 race, and ethnicity.]
2-34 (b) Appointments to the commission shall be made without
2-35 regard to the race, color, disability, sex, religion, age, or
2-36 national origin of the appointees. [One appointed member must be a
2-37 veterinarian licensed to practice in this state who specializes in
2-38 the treatment of small animals. One appointed member must be a
2-39 veterinarian licensed to practice in this state who specializes in
2-40 the treatment of large animals. Two appointed members must be
2-41 individuals who are not veterinarians and who have special
2-42 knowledge or experience related to greyhound racing. Two appointed
2-43 members must be individuals who are not veterinarians and who have
2-44 special knowledge or experience related to horse racing.]
2-45 SECTION 4. Section 2.03, Texas Racing Act (Article 179e,
2-46 Vernon's Texas Civil Statutes), is amended to read as follows:
2-47 Sec. 2.03. Term of office. (a) Appointed [Except for the
2-48 initial appointments, appointed] members hold office for staggered
2-49 terms of six years with two members' terms expiring February 1 of
2-50 each odd-numbered year. A member holds office until that member's
2-51 successor is appointed and qualifies.
2-52 (b) [In making the initial appointments, the governor shall
2-53 designate two appointed members for a term expiring February 1,
2-54 1989, two for a term expiring February 1, 1991, and two for a term
2-55 expiring February 1, 1993. The governor shall make the initial
2-56 appointments on or before February 1, 1987.]
2-57 [(c)] The ex officio members hold office on the commission
2-58 for the time for which they hold their other offices.
2-59 SECTION 5. Section 2.05, Texas Racing Act (Article 179e,
2-60 Vernon's Texas Civil Statutes), is amended to read as follows:
2-61 Sec. 2.05. Eligibility. (a) Four of the appointed members
2-62 of the commission must be representatives of the general public and
2-63 have general knowledge of business or agribusiness. One additional
2-64 appointed member must have special knowledge or experience related
2-65 to greyhound racing and one additional appointed member must have
2-66 special knowledge or experience related to horse racing. A person
2-67 is not eligible for appointment as a member of the commission if
2-68 the person or the person's spouse:
2-69 (1) is licensed by the commission, except as a
3-1 commissioner;
3-2 (2) is employed by the commission or participates in
3-3 the management of a business entity or other organization regulated
3-4 by the commission or receiving funds from or through the
3-5 commission;
3-6 (3) owns or controls, directly or indirectly, more
3-7 than a 10 percent interest in a business entity or other
3-8 organization regulated by the commission or receiving funds from or
3-9 through the commission; or
3-10 (4) uses or receives a substantial amount of tangible
3-11 goods, services, or funds from or through the commission, other
3-12 than compensation or reimbursement authorized by law for commission
3-13 membership, attendance, or expenses.
3-14 (b) In addition to the eligibility requirements of
3-15 Subsection (a), a [A] person is not eligible to be an appointed
3-16 member of the commission if that person owns any financial interest
3-17 in a racetrack or its operation or if that person is related within
3-18 the second degree by affinity or the third degree by consanguinity,
3-19 as determined under Subchapter B, Chapter 573, Government Code
3-20 [Article 5996h, Revised Statutes], to a person who owns any
3-21 financial interest in a racetrack or its operation.
3-22 (c) Each person appointed to or employed by the commission
3-23 is subject to all background checks and qualification criteria
3-24 required to hold a racetrack license or other license under this
3-25 Act.
3-26 (d) A person who has been convicted of a felony or of any
3-27 crime involving moral turpitude is not eligible for appointment to
3-28 the commission.
3-29 SECTION 6. Article 2, Texas Racing Act (Article 179e,
3-30 Vernon's Texas Civil Statutes), is amended by adding Sections
3-31 2.071-2.074 to read as follows:
3-32 Sec. 2.071. CONFLICT OF INTEREST. (a) An officer,
3-33 employee, or paid consultant of a Texas trade association in the
3-34 field of horse or greyhound racing or breeding may not be a member
3-35 of the commission or an employee of the commission who is exempt
3-36 from the state's position classification plan or is compensated at
3-37 or above the amount prescribed by the General Appropriations Act
3-38 for step 1, salary group 17, of the position classification salary
3-39 schedule.
3-40 (b) A person who is the spouse of an officer, manager, or
3-41 paid consultant of a Texas trade association in the field of horse
3-42 or greyhound racing or breeding may not be a member of the
3-43 commission and may not be an employee of the commission who is
3-44 exempt from the state's position classification plan or is
3-45 compensated at or above the amount prescribed by the General
3-46 Appropriations Act for step 1, salary group 17, of the position
3-47 classification salary schedule.
3-48 (c) For the purposes of this section, a Texas trade
3-49 association is a nonprofit association of business or professional
3-50 competitors in this state designed to assist its members and its
3-51 industry or profession in dealing with mutual business or
3-52 professional problems and in promoting their common interest.
3-53 Sec. 2.072. LOBBYIST RESTRICTION. A person may not serve as
3-54 a member of the commission or act as the general counsel to the
3-55 commission if the person is required to register as a lobbyist
3-56 under Chapter 305, Government Code, because of the person's
3-57 activities for compensation on behalf of a profession related to
3-58 the operation of the commission.
3-59 Sec. 2.073. GROUNDS FOR REMOVAL. (a) It is a ground for
3-60 removal from the commission if a member:
3-61 (1) does not have at the time of appointment the
3-62 qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
3-63 (2) does not maintain during service on the commission
3-64 the qualifications required by Section 2.02 or 2.05 of this Act;
3-65 (3) violates a prohibition established by Section
3-66 2.05, 2.071, or 2.072 of this Act;
3-67 (4) cannot because of illness or disability discharge
3-68 the member's duties for a substantial part of the term for which
3-69 the member is appointed; or
4-1 (5) is absent from more than half of the regularly
4-2 scheduled commission meetings that the member is eligible to attend
4-3 during a calendar year.
4-4 (b) The validity of an action of the commission is not
4-5 affected by the fact that it is taken when a ground for removal of
4-6 a commission member exists.
4-7 (c) If the executive secretary has knowledge that a
4-8 potential ground for removal exists, the executive secretary shall
4-9 notify the presiding officer of the commission of the potential
4-10 ground. The presiding officer shall then notify the governor and
4-11 the attorney general that a potential ground for removal exists.
4-12 If the potential ground for removal involves the presiding officer,
4-13 the executive secretary shall notify the next highest officer of
4-14 the commission, who shall notify the governor and the attorney
4-15 general that a potential ground for removal exists.
4-16 Sec. 2.074. MEMBER TRAINING. (a) To be eligible to take
4-17 office as a member of the commission, a person appointed to the
4-18 commission must complete at least one course of a training program
4-19 that complies with this section.
4-20 (b) The training program must provide information to the
4-21 person regarding:
4-22 (1) the enabling legislation that created the
4-23 commission;
4-24 (2) the programs operated by the commission;
4-25 (3) the role and functions of the commission;
4-26 (4) the rules of the commission with an emphasis on
4-27 the rules that relate to disciplinary and investigatory authority;
4-28 (5) the current budget for the commission;
4-29 (6) the results of the most recent formal audit of the
4-30 commission;
4-31 (7) the requirements of the:
4-32 (A) open meetings law, Chapter 551, Government
4-33 Code;
4-34 (B) open records law, Chapter 552, Government
4-35 Code; and
4-36 (C) administrative procedure law, Chapter 2001,
4-37 Government Code;
4-38 (8) the requirements of the conflict of interests laws
4-39 and other laws relating to public officials; and
4-40 (9) any applicable ethics policies adopted by the
4-41 commission or the Texas Ethics Commission.
4-42 (c) A person appointed to the commission is entitled to
4-43 reimbursement for travel expenses incurred in attending the
4-44 training program, as provided by the General Appropriations Act and
4-45 as if the person were a member of the commission.
4-46 SECTION 7. Section 2.10, Texas Racing Act (Article 179e,
4-47 Vernon's Texas Civil Statutes), is amended to read as follows:
4-48 Sec. 2.10. PRESIDING OFFICER [CHAIRMAN]. The governor shall
4-49 designate a public [one] member of the commission as the presiding
4-50 officer [chairman] of the commission to serve in that capacity at
4-51 the pleasure of the governor.
4-52 SECTION 8. Section 2.11, Texas Racing Act (Article 179e,
4-53 Vernon's Texas Civil Statutes), is amended by amending Subsection
4-54 (b) and adding Subsection (d) to read as follows:
4-55 (b) A majority of the commission constitutes a quorum. [A
4-56 majority of a section of the commission constitutes a quorum for
4-57 purposes of conducting business related to matters under the
4-58 exclusive jurisdiction of that section.]
4-59 (d) The commission shall, by rule, develop and implement
4-60 policies that provide the public with a reasonable opportunity to
4-61 appear before the commission and to speak on any issue under the
4-62 jurisdiction of the commission.
4-63 SECTION 9. Sections 2.12(b) and (c), Texas Racing Act
4-64 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
4-65 as follows:
4-66 (b) The commission may not employ or continue to employ a
4-67 person:
4-68 (1) who owns or controls a financial interest in a
4-69 licensee of the commission [racetrack or its operation];
5-1 (2) who is employed by or serves as a paid consultant
5-2 to a licensee of the commission, an official breed registry, or a
5-3 Texas trade association, as defined by Section 2.071(c) of this
5-4 Act, in the field of horse or greyhound racing or breeding [accepts
5-5 any remuneration from a racetrack];
5-6 (3) who owns or leases a race animal that participates
5-7 in pari-mutuel racing [is an owner, lessor, or lessee of a
5-8 greyhound or a horse that is entered in a race] in this state; or
5-9 (4) who accepts or is entitled to any part of the
5-10 purse or Texas-bred incentive award [purse supplement] to be paid
5-11 on a greyhound or a horse in a race conducted in this state.
5-12 (c) The commission may not employ or continue to employ a
5-13 person who is residentially domiciled with or related within the
5-14 first [second] degree by affinity or [the third degree by]
5-15 consanguinity to a person who is subject to a disqualification
5-16 prescribed by Subsection (b) of this section.
5-17 SECTION 10. Article 2, Texas Racing Act (Article 179e,
5-18 Vernon's Texas Civil Statutes), is amended by adding Sections
5-19 2.17-2.24 to read as follows:
5-20 Sec. 2.17. ANNUAL ACCOUNTING. The commission shall prepare
5-21 annually a complete and detailed written report accounting for all
5-22 funds received and disbursed by the commission during the preceding
5-23 fiscal year. The annual report must meet the reporting
5-24 requirements applicable to financial reporting provided in the
5-25 General Appropriations Act.
5-26 Sec. 2.18. FUNDS PAID TO COMMISSION. All money paid to the
5-27 commission under this Act is subject to Subchapter F, Chapter 404,
5-28 Government Code.
5-29 Sec. 2.19. EMPLOYMENT PRACTICES. (a) The executive
5-30 secretary or the executive secretary's designee shall develop an
5-31 intra-agency career ladder program that addresses opportunities for
5-32 mobility and advancement for employees within the commission. The
5-33 program shall require intra-agency posting of all positions
5-34 concurrently with any public posting.
5-35 (b) The executive secretary or the executive secretary's
5-36 designee shall develop a system of annual performance evaluations
5-37 that are based on documented employee performance. All merit pay
5-38 for commission employees must be based on the system established
5-39 under this subsection.
5-40 (c) The executive secretary or the executive secretary's
5-41 designee shall prepare and maintain a written policy statement to
5-42 assure implementation of a program of equal employment opportunity
5-43 under which all personnel transactions are made without regard to
5-44 race, color, disability, sex, religion, age, or national origin.
5-45 The policy statement must include:
5-46 (1) personnel policies, including policies relating to
5-47 recruitment, evaluation, selection, appointment, training, and
5-48 promotion of personnel that are in compliance with the requirements
5-49 of Chapter 21, Labor Code;
5-50 (2) a comprehensive analysis of the commission
5-51 workforce that meets federal and state laws, rules, regulations,
5-52 and instructions directly promulgated from those laws, rules, and
5-53 regulations;
5-54 (3) procedures by which a determination can be made
5-55 about the extent of underuse in the commission workforce of all
5-56 persons for whom federal or state laws, rules, regulations, and
5-57 instructions directly promulgated from those laws, rules, and
5-58 regulations encourage a more equitable balance; and
5-59 (4) reasonable methods to appropriately address those
5-60 areas of underuse.
5-61 (d) A policy statement prepared under Subsection (c) of this
5-62 section must cover an annual period, be updated annually and
5-63 reviewed by the Texas Commission on Human Rights for compliance
5-64 with Subsection (c)(1) of this section, and be filed with the
5-65 governor's office.
5-66 (e) The governor's office shall deliver a biennial report to
5-67 the legislature based on the information received under Subsection
5-68 (d) of this section. The report may be made separately or as a
5-69 part of other biennial reports made to the legislature.
6-1 Sec. 2.20. STANDARDS OF CONDUCT. The executive secretary or
6-2 the executive secretary's designee shall provide to members of the
6-3 commission and to agency employees, as often as necessary,
6-4 information regarding their qualification for office or employment
6-5 under this Act and their responsibilities under applicable laws
6-6 relating to standards of conduct for state officers or employees.
6-7 Sec. 2.21. DIVISION OF RESPONSIBILITY. The commission
6-8 shall, by rule, develop and implement policies that clearly
6-9 separate the policymaking responsibilities of the commission and
6-10 the management responsibilities of the executive secretary and the
6-11 staff of the commission.
6-12 Sec. 2.22. PROGRAM AND FACILITY ACCESSIBILITY. The
6-13 commission shall comply with federal and state laws related to
6-14 program and facility accessibility. The executive secretary shall
6-15 also prepare and maintain a written plan that describes how a
6-16 person who does not speak English can be provided reasonable access
6-17 to the commission's programs and services.
6-18 Sec. 2.23. INFORMATION TO PUBLIC. (a) The commission shall
6-19 prepare information of public interest describing the functions of
6-20 the commission and the procedures by which complaints are filed
6-21 with and resolved by the commission. The commission shall make the
6-22 information available to the public and appropriate state agencies.
6-23 (b) The commission by rule shall establish methods by which
6-24 racetrack patrons are notified of the name, mailing address, and
6-25 telephone number of the commission for the purpose of directing
6-26 complaints to the commission. The commission may provide for that
6-27 notification:
6-28 (1) on every race performance program provided by each
6-29 racetrack association; or
6-30 (2) on signs prominently displayed in the common
6-31 public areas on the premises of each racetrack association.
6-32 Sec. 2.24. COMPLAINT HANDLING. (a) The commission shall
6-33 keep information about each complaint filed with the commission.
6-34 The information shall include:
6-35 (1) the date the complaint is received;
6-36 (2) the name of the complainant;
6-37 (3) the subject matter of the complaint;
6-38 (4) a record of all persons contacted in relation to
6-39 the complaint;
6-40 (5) a summary of the results of the review or
6-41 investigation of the complaint; and
6-42 (6) for complaints for which the agency took no
6-43 action, an explanation of the reason the complaint was closed
6-44 without action.
6-45 (b) The commission shall keep a file about each written
6-46 complaint filed with the commission that the agency has authority
6-47 to resolve. The commission shall provide to the person filing the
6-48 complaint and the persons or entities complained about the
6-49 commission's policies and procedures pertaining to complaint
6-50 investigation and resolution. The commission, at least quarterly
6-51 and until final disposition of the complaint, shall notify the
6-52 person filing the complaint and the persons or entities complained
6-53 about of the status of the complaint unless the notice would
6-54 jeopardize an undercover investigation.
6-55 SECTION 11. Section 3.02, Texas Racing Act (Article 179e,
6-56 Vernon's Texas Civil Statutes), is amended to read as follows:
6-57 Sec. 3.02. Regulation and supervision. (a) The [In
6-58 accordance with Section 3.01 of this Act, the] commission shall
6-59 regulate and supervise every race meeting in this state involving
6-60 wagering on the result of greyhound or horse racing. All persons
6-61 and things relating to the operation of those meetings are subject
6-62 to regulation and supervision by the commission. The commission
6-63 shall adopt rules for conducting greyhound or horse racing in this
6-64 state involving wagering and shall adopt other rules to administer
6-65 this Act that are consistent with this Act. The commission shall
6-66 also make rules, issue licenses, and take any other necessary
6-67 action relating exclusively to horse racing or to greyhound racing.
6-68 (b) The commission may establish separate sections to review
6-69 or propose rules of the commission.
7-1 (c) The commission or a section of the commission shall hold
7-2 a meeting on any proposed rule before the commission publishes the
7-3 proposed rule in the Texas Register.
7-4 (d) The commission shall post notice of a meeting under
7-5 Subsection (c) of this section at each racetrack facility. The
7-6 notice shall include an agenda of the meeting and a summary of the
7-7 proposed rule.
7-8 (e) A copy of a proposed rule published in the Texas
7-9 Register shall also be posted concurrently at each racetrack
7-10 facility.
7-11 (f) The commission or a section of the commission may
7-12 appoint a committee of experts, members of the public, or other
7-13 interested parties to advise the commission or section of the
7-14 commission about a proposed rule of the commission.
7-15 (g) The commission, in adopting rules and in the supervision
7-16 and conduct of racing, shall consider the effect of a proposed
7-17 commission action on the state's agricultural, horse breeding,
7-18 horse training, greyhound breeding, and greyhound training
7-19 industry.
7-20 SECTION 12. Section 3.021, Texas Racing Act (Article 179e,
7-21 Vernon's Texas Civil Statutes), is amended by amending Subsection
7-22 (b) and adding Subsection (d) to read as follows:
7-23 (b) To protect the health, safety, and welfare of race
7-24 animals and participants in racing, to safeguard the interest of
7-25 the general public, and to promote the orderly [growth and] conduct
7-26 of racing within the state, the commission may adopt rules for the
7-27 licensing and regulation of races and workouts at racetracks that
7-28 do not offer pari-mutuel wagering and for workouts at training
7-29 facilities to secure past performances and workouts.
7-30 (d) The commission may not adopt rules restricting
7-31 competitive bidding or advertising by a licensee except to prohibit
7-32 false, misleading, or deceptive practices. In its rules to
7-33 prohibit false, misleading, or deceptive practices, the commission
7-34 may not include a rule that:
7-35 (1) restricts the use of any medium for advertising;
7-36 (2) restricts the use of a licensee's personal
7-37 appearance or voice in an advertisement;
7-38 (3) relates to the size or duration of an
7-39 advertisement by the licensee; or
7-40 (4) restricts the licensee's advertisement under a
7-41 trade name.
7-42 SECTION 13. Section 3.03, Texas Racing Act (Article 179e,
7-43 Vernon's Texas Civil Statutes), is amended to read as follows:
7-44 Sec. 3.03. Power of entry. A member of the commission, an
7-45 authorized agent of the commission, a commissioned officer of the
7-46 Department of Public Safety, or a peace officer of the local
7-47 jurisdiction in which the association maintains a place of business
7-48 may enter any part of the racetrack facility [the office,
7-49 racetrack,] or any other place of business of an association at any
7-50 time for the purpose of enforcing and administering this Act.
7-51 SECTION 14. Sections 3.07(a), (b), (d), and (e), Texas
7-52 Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
7-53 amended to read as follows:
7-54 (a) The commission shall employ all of the judges and all of
7-55 the stewards for the supervision of a horse race or greyhound race
7-56 meeting. Each horse race or greyhound race meeting shall be
7-57 supervised by three stewards [approved by the commission] for horse
7-58 racing or by three judges [approved by the commission] for
7-59 greyhound racing. The commission shall designate one of the
7-60 stewards or judges as the presiding steward or judge for each race
7-61 meeting. The association, following the completion of the race
7-62 meeting, may submit written comments to the commission regarding
7-63 the job performance of the stewards and judges for the commission's
7-64 review. Comments received are not binding, in any way, on the
7-65 commission. [The commission shall employ one of the stewards who
7-66 supervises a horse race meeting who shall be the presiding steward.
7-67 The other stewards at the race meeting shall be compensated by the
7-68 association. The commission shall employ one of the judges who
7-69 supervises a greyhound race meeting who shall be the presiding
8-1 judge; the other judges at such a race meeting shall be compensated
8-2 by the association.] For each race meeting, the commission shall
8-3 employ [appoint] at least one state veterinarian [who shall be
8-4 compensated by the commission. The commission by rule shall
8-5 determine the amount of compensation for stewards, judges, and
8-6 state veterinarians who are required to be compensated by the
8-7 commission]. The commission may, by rule, impose a fee on an
8-8 association to offset the costs of compensating the [racetrack]
8-9 stewards, judges, and state veterinarians [for that association].
8-10 The amount of the fee for the compensation of stewards, judges, and
8-11 state veterinarians must be reasonable according to industry
8-12 standards for the compensation of those officials at other
8-13 racetracks and may not exceed the actual cost to the commission for
8-14 compensating the officials. All other racetrack officials shall be
8-15 appointed by the association, with the approval of the commission.
8-16 Compensation for those officials not compensated by the commission
8-17 shall be determined by the association.
8-18 (b) The commission shall make rules specifying the authority
8-19 and the duties of each official, including the power of stewards or
8-20 judges to impose penalties for unethical practices or violations of
8-21 racing rules. A penalty imposed by the stewards or judges may
8-22 include a fine of not more than $5,000, a suspension for not more
8-23 than one year, or both a fine and suspension. Before imposing a
8-24 penalty under this subsection, the stewards and judges shall
8-25 conduct a hearing that is consistent with constitutional due
8-26 process. A hearing conducted by a steward or judge under this
8-27 subsection is not subject to Chapter 2001, Government Code. If, in
8-28 the opinion of the stewards or judges, the allowable penalties are
8-29 not sufficient, the stewards or judges may refer the case to the
8-30 commission for further action.
8-31 (d) Medication or drug testing performed on a race animal
8-32 under [Section 14.03 of] this Act shall be conducted by a
8-33 laboratory selected by the commission on a yearly basis by
8-34 competitive bidding submitted to the commission for final approval.
8-35 The commission's decision shall be based on cost and integrity.
8-36 The Texas Veterinary Medical Diagnostic Laboratory may aid the
8-37 commission in its selection [either by the Texas Veterinary Medical
8-38 Diagnostic Laboratory or in conjunction with or by a private or
8-39 public agency that is approved by the commission and by the Texas
8-40 Veterinary Medical Diagnostic Laboratory]. Medication or drug
8-41 testing performed on a human under [Section 14.03 of] this Act
8-42 shall be conducted by a laboratory approved by the commission.
8-43 Charges for services performed under this section shall be
8-44 forwarded to the commission for approval as to the reasonableness
8-45 of the charges for the services. Charges may include but are not
8-46 limited to expenses incurred for travel, lodging, testing, and
8-47 processing of test results. The reasonable charges associated with
8-48 medication or drug testing conducted under this Act shall be paid
8-49 by the association that receives the services. The commission shall
8-50 adopt rules for the procedures for approving and paying laboratory
8-51 charges under this section. On the approval of the charges as
8-52 reasonable, in relation to industry standards for testing charges,
8-53 the commission shall forward a copy of the charges to the
8-54 association that receives the services for immediate payment.
8-55 (e) To pay the charges associated with the medication or
8-56 drug testing, an association may use the money held [retained] by
8-57 the association to pay outstanding tickets and pari-mutuel vouchers
8-58 [on tickets that are purchased as wagers on horses or greyhounds
8-59 and that are not cashed by the holders of the tickets]. If
8-60 additional amounts are needed to pay the charges, the association
8-61 shall pay those additional amounts. If the amount held [retained]
8-62 exceeds the amount needed to pay the charges, the association shall
8-63 pay the excess to the commission in accordance with Section 11.08
8-64 of this Act.
8-65 SECTION 15. Section 3.08(b), Texas Racing Act (Article 179e,
8-66 Vernon's Texas Civil Statutes), is amended to read as follows:
8-67 (b) A [In determining the distribution to holders of winning
8-68 tickets in a pari-mutuel pool, a] decision of the stewards or
8-69 judges on a disqualification for a foul in a race or on a finding
9-1 of fact regarding the running of a race is final and may not be
9-2 appealed.
9-3 SECTION 16. Article 3, Texas Racing Act (Article 179e,
9-4 Vernon's Texas Civil Statutes), is amended by adding Sections
9-5 3.13-3.22 to read as follows:
9-6 Sec. 3.13. RECOGNITION OF ORGANIZATION. (a) The commission
9-7 by rule shall adopt criteria to recognize an organization to
9-8 represent members of a segment of the racing industry, including
9-9 owners, breeders, trainers, kennel operators, or other persons
9-10 involved in the racing industry, in any interaction between the
9-11 members of the organization and an association or the commission.
9-12 (b) The commission may recognize an organization that meets
9-13 the requirements of Subsection (a) of this section.
9-14 Sec. 3.14. DISCIPLINARY ACTIONS. The commission shall
9-15 revoke, suspend, or refuse to renew a license, place on probation a
9-16 person whose license has been suspended, or reprimand a licensee
9-17 for a violation of this Act or a rule of the commission. If a
9-18 license suspension is probated, the commission may require the
9-19 licensee to report regularly to the commission on matters that are
9-20 the basis of the probation.
9-21 Sec. 3.15. HEARING REQUIREMENTS. If the commission proposes
9-22 to suspend, revoke, or refuse to renew a person's license, the
9-23 person is entitled to a hearing conducted by the State Office of
9-24 Administrative Hearings. Proceedings for a disciplinary action,
9-25 other than those conducted by racing stewards or judges, are
9-26 governed by Chapter 2001, Government Code. Rules of practice
9-27 adopted by the commission under Section 2001.004, Government Code,
9-28 applicable to the proceedings for a disciplinary action, other than
9-29 those conducted by racing stewards or judges, may not conflict with
9-30 rules adopted by the State Office of Administrative Hearings.
9-31 Sec. 3.16. RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.
9-32 (a) The commission shall adopt rules prohibiting a person from
9-33 unlawfully influencing or affecting the outcome of a race,
9-34 including rules relating to the use of a prohibited device or
9-35 prohibited substance at a racetrack or training facility.
9-36 (b) The commission may require prerace testing and shall
9-37 require postrace testing to determine whether a prohibited
9-38 substance has been used. The testing may be by an invasive or
9-39 noninvasive method. The commission's rules shall require
9-40 state-of-the-art testing methods.
9-41 (c) Following the discovery of a prohibited device or a
9-42 return of a test showing the presence of a prohibited substance, a
9-43 steward or judge may summarily suspend a person who has used or
9-44 administered the prohibited device or prohibited substance until a
9-45 hearing before the stewards and judges. The steward or judge may
9-46 also disqualify an animal as provided by a commission rule adopted
9-47 under this section.
9-48 (d) Except as otherwise provided, a person may appeal a
9-49 ruling of the stewards or judges to the commission. The commission
9-50 may stay a summary suspension during the period the matter is
9-51 before the commission.
9-52 (e) The commission may require urine samples to be frozen
9-53 for a period necessary to allow any follow-up testing to detect and
9-54 identify a prohibited substance. Any other specimen shall be
9-55 maintained for testing purposes in a manner required by commission
9-56 rule.
9-57 (f) If a test sample or specimen shows the presence of a
9-58 prohibited substance, the entire sample, including any split
9-59 portion remaining in the custody of the commission, shall be
9-60 maintained until final disposition of the matter.
9-61 (g) A licensee whose animal test shows the presence of a
9-62 prohibited substance is entitled to have a split portion of the
9-63 test sample or specimen tested at a testing facility authorized to
9-64 perform drug testing under this Act and selected by the licensee.
9-65 The commission shall adopt rules relating to split testing
9-66 procedures.
9-67 (h) The licensed trainer of an animal is:
9-68 (1) considered by law to be the absolute ensurer that
9-69 no prohibited substance has been administered to the animal; and
10-1 (2) responsible for ensuring that no prohibited
10-2 substance is administered to the animal.
10-3 (i) The commission shall adopt rules relating to the drug
10-4 testing of licensees.
10-5 (j) A person who violates a rule adopted under this section
10-6 may:
10-7 (1) have any license issued to the person by the
10-8 commission revoked or suspended; or
10-9 (2) be barred for life or any other period from
10-10 applying for or receiving a license issued by the commission or
10-11 entering any portion of a racetrack facility.
10-12 Sec. 3.17. SECURITY FOR FEES AND CHARGES. The commission
10-13 may require an association to post security in an amount and form
10-14 determined by the commission to adequately ensure the payment of
10-15 any fees or charges due to the state or the commission relating to
10-16 pari-mutuel racing, including charges for drug testing.
10-17 Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive
10-18 secretary may issue a cease and desist order if the executive
10-19 secretary reasonably believes an association or other licensee is
10-20 engaging or is likely to engage in conduct that violates this Act
10-21 or a commission rule.
10-22 (b) On issuance of a cease and desist order, the executive
10-23 secretary shall serve on the association or other licensee by
10-24 personal delivery or registered or certified mail, return receipt
10-25 requested, to the person's last known address, a proposed cease and
10-26 desist order. The proposed order must state the specific acts or
10-27 practices alleged to violate this Act or a commission rule. The
10-28 proposed order must state its effective date. The effective date
10-29 may not be before the 21st day after the date the proposed order is
10-30 mailed or delivered. If the person against whom the proposed order
10-31 is directed requests, in writing, a hearing before the effective
10-32 date of the proposed order, the order is automatically stayed
10-33 pending final adjudication of the order. Unless the person against
10-34 whom the proposed order is directed requests, in writing, a hearing
10-35 before the effective date of the proposed order, the order takes
10-36 effect and is final and nonappealable as to that person.
10-37 (c) On receiving a request for a hearing, the executive
10-38 secretary shall serve notice of the time and place of the hearing
10-39 by personal delivery or registered or certified mail, return
10-40 receipt requested. At a hearing, the commission has the burden of
10-41 proof and must present evidence in support of the order. Each
10-42 person against whom the order is directed may cross-examine and
10-43 show cause why the order should not be issued.
10-44 (d) After the hearing, the commission shall issue or decline
10-45 to issue a cease and desist order. The proposed order may be
10-46 modified as necessary to conform to the findings at the hearing.
10-47 An order issued under this section is final for purposes of
10-48 enforcement and appeal and shall require the person to immediately
10-49 cease and desist from the conduct that violates this Act or a
10-50 commission rule.
10-51 (e) A person affected by a cease and desist order issued,
10-52 affirmed, or modified after a hearing may file a petition for
10-53 judicial review in a district court of Travis County under Chapter
10-54 2001, Government Code. A petition for judicial review does not
10-55 stay or vacate the order unless the court, after hearing,
10-56 specifically stays or vacates the order.
10-57 Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) The
10-58 executive secretary may issue an emergency cease and desist order
10-59 if the executive secretary reasonably believes an association or
10-60 other licensee is engaged in a continuing activity that violates
10-61 this Act or a commission rule in a manner that threatens immediate
10-62 and irreparable public harm.
10-63 (b) After issuing an emergency cease and desist order, the
10-64 executive secretary shall serve on the association or other
10-65 licensee by personal delivery or registered or certified mail,
10-66 return receipt requested, to the person's last known address, an
10-67 order stating the specific charges and requiring the person
10-68 immediately to cease and desist from the conduct that violates this
10-69 Act or a commission rule. The order must contain a notice that a
11-1 request for hearing may be filed under this section.
11-2 (c) An association or other licensee that is the subject of
11-3 an emergency cease and desist order may request a hearing. The
11-4 request must be filed with the executive secretary not later than
11-5 the 10th day after the date the order was received or delivered. A
11-6 request for a hearing must be in writing and directed to the
11-7 executive secretary and must state the grounds for the request to
11-8 set aside or modify the order. Unless a person who is the subject
11-9 of the emergency order requests a hearing in writing before the
11-10 11th day after the date the order is received or delivered, the
11-11 emergency order is final and nonappealable as to that person.
11-12 (d) On receiving a request for a hearing, the executive
11-13 secretary shall serve notice of the time and place of the hearing
11-14 by personal delivery or registered or certified mail, return
11-15 receipt requested. The hearing must be held not later than the
11-16 10th day after the date the executive secretary receives the
11-17 request for a hearing unless the parties agree to a later hearing
11-18 date. At the hearing, the commission has the burden of proof and
11-19 must present evidence in support of the order. The person
11-20 requesting the hearing may cross-examine witnesses and show cause
11-21 why the order should not be affirmed. Section 2003.021(b),
11-22 Government Code, does not apply to hearings conducted under this
11-23 section.
11-24 (e) An emergency cease and desist order continues in effect
11-25 unless the order is stayed by the executive secretary. The
11-26 executive secretary may impose any condition before granting a stay
11-27 of the order.
11-28 (f) After the hearing, the executive secretary shall affirm,
11-29 modify, or set aside in whole or part the emergency cease and
11-30 desist order. An order affirming or modifying the emergency cease
11-31 and desist order is final for purposes of enforcement and appeal.
11-32 Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER. (a)
11-33 If the executive secretary reasonably believes that a person has
11-34 violated a final and enforceable cease and desist order, the
11-35 executive secretary may:
11-36 (1) initiate administrative penalty proceedings under
11-37 Article 15 of this Act;
11-38 (2) refer the matter to the attorney general for
11-39 enforcement by injunction and any other available remedy; or
11-40 (3) pursue any other action, including suspension of
11-41 the person's license, that the executive secretary considers
11-42 appropriate.
11-43 (b) If the attorney general prevails in an action brought
11-44 under Subsection (a)(2) of this section, the attorney general is
11-45 entitled to recover reasonable attorney's fees.
11-46 Sec. 3.21. INJUNCTION. The commission may institute an
11-47 action in its own name to enjoin the violation of this Act. An
11-48 action for an injunction is in addition to any other action,
11-49 proceeding, or remedy authorized by law.
11-50 Sec. 3.22. ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT. (a)
11-51 The commission, by rule, shall develop a system for monitoring the
11-52 activities of managers and employees of an association relating to
11-53 the horsemen's account. The monitoring system may include review of
11-54 the financial operations of the association, including inspections
11-55 of records at the association's offices, at any racetrack, or at
11-56 any other place the association transacts business.
11-57 (b) The executive secretary may issue an order prohibiting
11-58 the association from making any transfer from a bank account held
11-59 by the association for the conduct of its business under this Act,
11-60 pending commission review of the records of the account, if the
11-61 executive secretary reasonably believes that the association has
11-62 failed to maintain the proper amount of money in the horsemen's
11-63 account. The executive secretary shall provide in the order a
11-64 procedure for the association to pay certain expenses necessary for
11-65 the operation of the racetrack, subject to the executive
11-66 secretary's approval. An order issued under this section may be
11-67 made valid for a period not to exceed 14 days.
11-68 (c) The executive secretary may issue an order requiring the
11-69 appropriate transfers to or from the horsemen's account if, after
12-1 reviewing the association's records of its bank accounts, the
12-2 executive secretary determines there is an improper amount of money
12-3 in the horsemen's account.
12-4 SECTION 17. Section 5.01(a), Texas Racing Act (Article 179e,
12-5 Vernon's Texas Civil Statutes), is amended to read as follows:
12-6 (a) The commission shall prescribe forms for applications
12-7 for licenses and shall provide each occupational licensee with a
12-8 license certificate or credentials.
12-9 SECTION 18. Sections 5.03(a) and (b), Texas Racing Act
12-10 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
12-11 as follows:
12-12 (a) An applicant for any license under this Act must, except
12-13 as allowed under Section 7.10 of this Act, submit to the commission
12-14 a complete set of fingerprints of the individual natural person
12-15 applying for the license or, if the applicant is not an individual
12-16 natural person, a complete set of fingerprints of each officer or
12-17 director and of each person owning an interest of at least five
12-18 percent in the applicant. The Department of Public Safety may
12-19 request any person owning any interest in an applicant for a
12-20 racetrack license to submit a complete set of fingerprints.
12-21 (b) If a complete set of fingerprints is required by the
12-22 commission, the [The] commission shall, not later than the next day
12-23 after receiving the prints, forward the prints to the Department of
12-24 Public Safety or the Federal Bureau of Investigation. If the
12-25 prints are forwarded to the Department of Public Safety, the [The]
12-26 department shall classify the prints and check them against its
12-27 fingerprint files and shall report to the commission its findings
12-28 concerning the criminal record of the applicant or the lack of such
12-29 a record. A racetrack license may not be issued until the report
12-30 is made to the commission. A temporary occupational license may be
12-31 issued before a report is made to the commission.
12-32 SECTION 19. Article 5, Texas Racing Act (Article 179e,
12-33 Vernon's Texas Civil Statutes), is amended by adding Section 5.05
12-34 to read as follows:
12-35 Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) The
12-36 commission shall, in determining the amount of a license fee, set
12-37 the fee in an amount that will cover, at least, the cost of
12-38 conducting a criminal history check on the applicant for a license.
12-39 (b) The commission shall reimburse the Department of Public
12-40 Safety for the cost of conducting a criminal history check under
12-41 this article.
12-42 SECTION 20. Section 6.01, Texas Racing Act (Article 179e,
12-43 Vernon's Texas Civil Statutes), is amended to read as follows:
12-44 Sec. 6.01. License required. A person may [shall] not
12-45 conduct wagering on a greyhound race [meeting] or a horse race
12-46 meeting without first obtaining a racetrack license from the
12-47 commission [with wagering on the results without a racetrack
12-48 license]. A person who violates this section commits an offense.
12-49 SECTION 21. Section 6.02(b), Texas Racing Act (Article 179e,
12-50 Vernon's Texas Civil Statutes), is amended to read as follows:
12-51 (b) A class 1 racetrack is a racetrack on which live racing
12-52 is conducted for a number of days in a calendar year, the number of
12-53 days and the actual dates to be determined by the commission under
12-54 Article 8 of this Act. A class 1 racetrack may operate only in a
12-55 county with a population of not less than 750,000, according to the
12-56 most recent federal census, or in a county adjacent to a county
12-57 with such a population. Not more than three [four] class 1
12-58 racetracks may be licensed and operated in this state.
12-59 SECTION 22. Sections 6.04(a) and (d), Texas Racing Act
12-60 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
12-61 as follows:
12-62 (a) The commission may issue a racetrack license to a
12-63 qualified person if it finds that the conduct of race meetings at
12-64 the proposed track and location will be in the public interest,
12-65 complies with all zoning laws, and complies with this Act and the
12-66 rules adopted by the commission and if the commission finds by
12-67 clear and convincing evidence that the applicant will comply with
12-68 all criminal laws of this state. In determining whether to grant
12-69 or deny an application for any class of racetrack license, the
13-1 commission may consider [the degree to which any of] the following
13-2 factors [regarding the applicant's racetrack or proposed race
13-3 meeting serve to nurture, promote, develop, or improve the horse or
13-4 greyhound industry in this state]:
13-5 (1) the applicant's financial stability;
13-6 (2) the applicant's resources for supplementing the
13-7 purses for races for various breeds;
13-8 (3) the location of the proposed track;
13-9 (4) the effect of the proposed track on traffic flow;
13-10 (5) facilities for patrons and occupational licensees;
13-11 (6) facilities for race animals;
13-12 (7) availability to the track of support services and
13-13 emergency services;
13-14 (8) the experience of the applicant's employees;
13-15 (9) the potential for conflict with other licensed
13-16 race meetings;
13-17 (10) the anticipated effect of the race meeting on the
13-18 greyhound or horse breeding industry in this state; and
13-19 (11) the anticipated effect of the race meeting on the
13-20 state and local economy from tourism, increased employment, and
13-21 other sources.
13-22 (d) In considering an application for a class 4 racetrack
13-23 license, the commission may waive or defer compliance with the
13-24 commission's standards regarding the physical facilities or
13-25 operations of a horse racetrack. The commission may not waive or
13-26 defer compliance with standards that relate to the testing of
13-27 horses or licensees for the presence of a prohibited drug,
13-28 chemical, or other substance [as provided by Section 14.03 of this
13-29 Act]. If the commission defers compliance, the commission shall,
13-30 when granting the application, establish a schedule under which the
13-31 licensee must comply with the standards.
13-32 SECTION 23. Section 6.06, Texas Racing Act (Article 179e,
13-33 Vernon's Texas Civil Statutes), is amended by amending Subsections
13-34 (a), (b), (e), (f), and (g) and adding Subsection (i) to read as
13-35 follows:
13-36 (a) To preserve and protect the public health, welfare, and
13-37 safety, the commission shall adopt rules relating to license
13-38 applications, [renewal applications,] the financial responsibility,
13-39 moral character, and ability of applicants, and all matters
13-40 relating to the planning, construction, and operation of
13-41 racetracks. The commission may refuse to issue a [an original or
13-42 renewal] racetrack license or may revoke or suspend a license if,
13-43 after notice and hearing, it has reasonable grounds to believe and
13-44 finds that:
13-45 (1) the applicant has been convicted in a court of
13-46 competent jurisdiction of a violation of this Act or any rule
13-47 adopted by the commission or that the applicant has aided, abetted,
13-48 or conspired with any person to commit such a violation;
13-49 (2) the applicant has been convicted of a felony or of
13-50 any crime involving moral turpitude, including convictions for
13-51 which the punishment received was a suspended sentence, probation,
13-52 or a nonadjudicated conviction, that is reasonably related to the
13-53 applicant's present fitness to hold a license under this Act;
13-54 (3) the applicant has violated or has caused to be
13-55 violated this Act or a rule of the commission in a manner that
13-56 involves moral turpitude, as distinguished from a technical
13-57 violation of this Act or of a rule;
13-58 (4) the applicant is unqualified, by experience or
13-59 otherwise, to perform the duties required of a licensee under this
13-60 Act;
13-61 (5) the applicant failed to answer or falsely or
13-62 incorrectly answered a question in an [original or renewal]
13-63 application;
13-64 (6) the applicant fails to disclose the true ownership
13-65 or interest in a greyhound or horse as required by the rules of the
13-66 commission;
13-67 (7) the applicant is indebted to the state for any
13-68 fees or for the payment of a penalty imposed by this Act or by a
13-69 rule of the commission;
14-1 (8) the applicant is not of good moral character or
14-2 the applicant's reputation as a peaceable, law-abiding citizen in
14-3 the community where the applicant resides is bad;
14-4 (9) the applicant has not yet attained the minimum age
14-5 necessary to purchase alcoholic beverages in this state;
14-6 (10) the applicant is in the habit of using alcoholic
14-7 beverages to an excess or uses a controlled substance as defined in
14-8 Chapter 481, Health and Safety Code, or a dangerous drug as defined
14-9 in Chapter 483, Health and Safety Code, or is mentally
14-10 incapacitated;
14-11 (11) the applicant may be excluded from a track
14-12 enclosure under [Article 13 or 14 of] this Act;
14-13 (12) the applicant has not been a United States
14-14 citizen residing in this state for the period of 10 consecutive
14-15 years immediately preceding the filing of the application;
14-16 (13) the applicant has improperly used a license
14-17 certificate, credential, or identification card issued under this
14-18 Act;
14-19 (14) the applicant is residentially domiciled with a
14-20 person whose license has been revoked for cause within the 12
14-21 months immediately preceding the date of the present application;
14-22 (15) the applicant has failed or refused to furnish a
14-23 true copy of the application to the commission's district office in
14-24 the district in which the premises for which the permit is sought
14-25 are located; [or]
14-26 (16) the applicant is engaged or has engaged in
14-27 activities or practices that the commission finds are detrimental
14-28 to the best interests of the public and the sport of greyhound
14-29 racing or horse racing; or
14-30 (17) the applicant fails to fully disclose the true
14-31 owners of all interests, beneficial or otherwise, in a proposed
14-32 racetrack facility.
14-33 (b) Subsection (a) of this section applies to a corporation,
14-34 partnership, limited partnership, or any other organization or
14-35 group whose application is comprised of more than one person if a
14-36 shareholder, partner, limited partner [if any], director, or
14-37 officer is disqualified under Subsection (a) of this section.
14-38 (e) The [appropriate section of the] commission may
14-39 condition the issuance of a license under this article on the
14-40 observance of its rules. The commission may amend the rules at any
14-41 time and may condition the continued holding of the license on
14-42 compliance with the rules as amended.
14-43 (f) The [appropriate section of the] commission may refuse
14-44 to issue a license or may suspend or revoke a license of a licensee
14-45 under this article who knowingly or intentionally allows access to
14-46 an enclosure where greyhound races or horse races are conducted to
14-47 a person who has engaged in bookmaking, touting, or illegal
14-48 wagering, whose income is from illegal activities or enterprises,
14-49 or who has been convicted of a violation of this Act.
14-50 (g) A person awarded a management contract [by a nonprofit
14-51 corporation licensed under this Act] to operate a racetrack must
14-52 meet all of the requirements of this section.
14-53 (i) Subsections (a)(12), (c), and (d) of this section do not
14-54 apply to an applicant for or the holder of a racetrack license if
14-55 the applicant, the license holder, or the license holder's parent
14-56 company is a publicly traded company.
14-57 SECTION 24. Article 6, Texas Racing Act (Article 179e,
14-58 Vernon's Texas Civil Statutes), is amended by adding Sections
14-59 6.061-6.063 to read as follows:
14-60 Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFE
14-61 CONDITIONS. (a) The commission shall adopt rules implementing
14-62 this section, including rules:
14-63 (1) requiring the report of and correction of:
14-64 (A) an inappropriate condition on the premises
14-65 of a racetrack facility, including a failure to properly maintain
14-66 the facility, that interferes with the administration of this Act;
14-67 or
14-68 (B) a condition on the premises of a racetrack
14-69 facility that makes the facility unsafe for a race participant,
15-1 patron, or animal; and
15-2 (2) determining the methods and manner in which the
15-3 executive secretary may determine and remedy inappropriate
15-4 conditions or unsafe facilities on the premises of a racetrack
15-5 facility, including the methods and manner in which the executive
15-6 secretary may conduct inspections of the racetrack facility and
15-7 remedy emergency situations.
15-8 (b) The executive secretary shall issue a notice of
15-9 violation to a racetrack facility on a finding that an
15-10 inappropriate or unsafe condition exists.
15-11 (c) If the executive secretary determines that an
15-12 inappropriate or unsafe condition exists at the racetrack facility,
15-13 the executive secretary shall order the racetrack facility to take
15-14 action within a specified period to remedy the inappropriate
15-15 condition or unsafe condition. In determining the period for
15-16 compliance, the executive secretary shall consider the nature and
15-17 severity of the problem and the threat to the health, safety, and
15-18 welfare of the race participants, patrons, or animals.
15-19 (d) The commission shall adopt rules requiring the reporting
15-20 of any corrective action taken by a racetrack facility in response
15-21 to an order of the executive secretary under Subsection (c) of this
15-22 section.
15-23 (e) If a racetrack facility fails to take any action as
15-24 required under Subsection (c) of this section, the executive
15-25 secretary shall initiate an enforcement action against the
15-26 racetrack facility. The executive secretary may rescind any live
15-27 or simulcast race date of any racetrack association that does not
15-28 take corrective action within the period set by the executive
15-29 secretary.
15-30 (f) The commission shall adopt rules relating to the
15-31 commission's review of an action taken under this section by the
15-32 executive secretary. A review procedure adopted under this
15-33 subsection must be consistent with Chapter 2001, Government Code.
15-34 Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) The
15-35 commission shall adopt a method of supervising and approving the
15-36 construction, renovation, or maintenance of any building or
15-37 improvement on the premises of a racetrack facility.
15-38 (b) The commission shall adopt rules relating to:
15-39 (1) the approval of plans and specifications;
15-40 (2) the contents of plans and specifications;
15-41 (3) the maintenance of records to ensure compliance
15-42 with approved plans and specifications;
15-43 (4) the content and filing of construction progress
15-44 reports by the racetrack facility to the commission;
15-45 (5) the inspection by the commission or others;
15-46 (6) the method for making a change or amendment to an
15-47 approved plan or specification; and
15-48 (7) any other method of supervision or oversight
15-49 necessary.
15-50 (c) If the commission has grounds to believe that an
15-51 association has failed to comply with the requirements of this
15-52 section, a representative of the association shall appear before
15-53 the commission to consider the issue of compliance with the rules
15-54 adopted under this section.
15-55 (d) Before a building or improvement may be used by the
15-56 association, the commission shall determine whether the
15-57 construction, renovation, or maintenance of the building or
15-58 improvement was completed in accordance with the approved plans and
15-59 specifications and whether other requirements of the commission
15-60 were met.
15-61 (e) If the commission determines that the association failed
15-62 to comply with a requirement of this section or rule adopted under
15-63 this section, the commission shall initiate an enforcement action
15-64 against the association. In addition to any other authorized
15-65 enforcement action, the commission may rescind any live or
15-66 simulcast race date of any association that has failed to comply
15-67 with the requirement of this section.
15-68 Sec. 6.063. SUMMARY SUSPENSION. (a) The commission may
15-69 summarily suspend a racetrack license if the commission determines
16-1 that a racetrack at which races or pari-mutuel wagering are
16-2 conducted under the license is being operated in a manner that
16-3 constitutes an immediate threat to the health, safety, or welfare
16-4 of the participants in racing or the patrons.
16-5 (b) After issuing a summary suspension order, the executive
16-6 secretary shall serve on the association by personal delivery or
16-7 registered or certified mail, return receipt requested, to the
16-8 licensee's last known address, an order stating the specific
16-9 charges and requiring the licensee immediately to cease and desist
16-10 from all conduct permitted by the license. The order must contain
16-11 a notice that a request for hearing may be filed under this
16-12 section.
16-13 (c) An association that is the subject of a summary
16-14 suspension order may request a hearing. The request must be filed
16-15 with the executive secretary not later than the 10th day after the
16-16 date the order was received or delivered. A request for a hearing
16-17 must be in writing and directed to the executive secretary and must
16-18 state the grounds for the request to set aside or modify the order.
16-19 Unless a licensee who is the subject of the order requests a
16-20 hearing in writing before the 11th day after the date the order is
16-21 received or delivered, the order is final and nonappealable as to
16-22 that licensee.
16-23 (d) On receiving a request for a hearing, the executive
16-24 secretary shall serve notice of the time and place of the hearing
16-25 by personal delivery or registered or certified mail, return
16-26 receipt requested. The hearing must be held not later than the
16-27 10th day after the date the executive secretary receives the
16-28 request for a hearing unless the parties agree to a later hearing
16-29 date. At the hearing, the commission has the burden of proof and
16-30 must present evidence in support of the order. The licensee
16-31 requesting the hearing may cross examine witnesses and show cause
16-32 why the order should not be affirmed. Section 2003.021(b),
16-33 Government Code, does not apply to hearings conducted under this
16-34 section.
16-35 (e) A summary suspension order continues in effect unless
16-36 the order is stayed by the executive secretary. The executive
16-37 secretary may impose any condition before granting a stay of the
16-38 order.
16-39 (f) After the hearing, the executive secretary shall affirm,
16-40 modify, or set aside in whole or part the summary suspension order.
16-41 An order affirming or modifying the summary suspension order is
16-42 final for purposes of enforcement and appeal.
16-43 SECTION 25. Section 6.08(b), Texas Racing Act (Article 179e,
16-44 Vernon's Texas Civil Statutes), is amended to read as follows:
16-45 (b)(1) A horse racing association shall set aside for purses
16-46 an amount not less than seven percent of a live regular wagering
16-47 pool or live multiple two wagering pool and not less than 8.5
16-48 percent of a live multiple three wagering pool.
16-49 (2) A horse racing association, after January 1, 1999,
16-50 shall set aside from simulcast pools for purses not less than the
16-51 following amounts from the takeout of the sending racetrack:
16-52 (A) 38.8 percent of the regular wagering pool;
16-53 (B) 33.3 percent of the multiple two wagering
16-54 pool; and
16-55 (C) 34 percent of the multiple three wagering
16-56 pool.
16-57 If the cost of the simulcast signal exceeds five percent of the
16-58 simulcast handle, the receiving horse racing association shall
16-59 split the cost of the signal in excess of five percent evenly with
16-60 the horsemen's organization by allocating the cost against the
16-61 purse money derived from that simulcast signal.
16-62 (3) The horse racing association shall transfer the
16-63 amount set aside for purses from any live and simulcast pools and
16-64 shall deposit the amounts in purse accounts maintained by breed by
16-65 the horsemen's organization in one or more federally insured
16-66 depositories. Legal title to purse accounts is vested in the
16-67 horsemen's organization. The horsemen's organization may contract
16-68 with an association to manage and control the purse accounts and to
16-69 make disbursements from the purse accounts:
17-1 (A) to an owner whose horse won a purse;
17-2 (B) to the horsemen's organization for its
17-3 expenses; or
17-4 (C) for other disbursements as provided by
17-5 contract between the horsemen's organization and the association.
17-6 (4) An association, after January 1, 1999, may pay a
17-7 portion of the revenue set aside under this subsection to an
17-8 organization recognized under Section 3.13 of this Act, as provided
17-9 by a contract approved by the commission.
17-10 SECTION 26. Section 6.09, Texas Racing Act (Article 179e,
17-11 Vernon's Texas Civil Statutes), is amended by adding Subsection (f)
17-12 to read as follows:
17-13 (f) The commission in adopting rules relating to money paid
17-14 to the commission for use by the state greyhound breed registry
17-15 under Subsection (d) of this section shall require the award of a
17-16 grant in an amount equal to two percent of the amount paid to the
17-17 commission for use by the state greyhound breed registry to a
17-18 person for the rehabilitation of greyhounds or to locate homes for
17-19 greyhounds.
17-20 SECTION 27. Section 6.091, Texas Racing Act (Article 179e,
17-21 Vernon's Texas Civil Statutes), is amended to read as follows:
17-22 Sec. 6.091. DISPOSITION OF DEDUCTIONS FROM SIMULCAST
17-23 PARI-MUTUEL POOLS. (a) An association shall distribute from the
17-24 total amount deducted as provided by Sections 6.08(a) and 6.09(a)
17-25 of this Act from each simulcast pari-mutuel pool and each simulcast
17-26 cross-species pool the following shares:
17-27 (1)(A) until January 1, 1999, an amount equal to 0.25
17-28 [one] percent of each simulcast pari-mutuel pool and each simulcast
17-29 cross-species simulcast pool as the amount set aside to reimburse
17-30 the general revenue fund for amounts that are appropriated for the
17-31 administration and enforcement of this Act and that are in excess
17-32 of the cumulative amount of funds deposited in the Texas Racing
17-33 Commission fund, until the excess amount and interest on the excess
17-34 amount are fully reimbursed;
17-35 (B) an amount equal to one percent of each
17-36 simulcast pool as the amount set aside for the state; and
17-37 (C) an amount equal to 1.25 percent of each
17-38 cross-species simulcast pool as the amount set aside for the state;
17-39 (2) an amount equal to 0.25 percent of each pool set
17-40 aside to reimburse the general revenue fund for amounts that are
17-41 appropriated for the administration and enforcement of this Act and
17-42 that are in excess of the cumulative amount of funds deposited in
17-43 the Texas Racing Commission fund, until the excess amount and
17-44 interest on the excess amount are fully reimbursed [to the Texas
17-45 Commission on Alcohol and Drug Abuse to be expended for the
17-46 prevention of problem gambling];
17-47 (3) if the association is a horse racing association,
17-48 an amount equal to one percent of a multiple two wagering pool or
17-49 multiple three wagering pool as the amount set aside for the
17-50 Texas-bred program to be used as provided by Section 6.08(f) of
17-51 this Act;
17-52 (4) if the association is a greyhound association, an
17-53 amount equal to one percent of a multiple two wagering pool or a
17-54 multiple three wagering pool as the amount set aside for the
17-55 Texas-bred program for greyhound races, to be distributed and used
17-56 in accordance with rules of the commission adopted to promote
17-57 greyhound breeding in this state; and
17-58 (5) the remainder as the amount set aside for purses,
17-59 expenses, the sending association, and the receiving location
17-60 pursuant to a contract approved by the commission between the
17-61 sending association and the receiving location.
17-62 (b) Section 6.09(b)(1) of this Act does not apply to amounts
17-63 deducted from a simulcast pari-mutuel pool in a greyhound race.
17-64 (c) A greyhound racetrack association that receives an
17-65 interstate cross-species simulcast signal shall distribute the
17-66 following amounts from the total amount deducted as provided by
17-67 Subsection (a) of this section from each pool wagered on the signal
17-68 at the facility:
17-69 (1) a fee of 1.5 percent to be paid to the racetrack
18-1 facility in this state sending the signal;
18-2 (2) a purse in the amount of 0.75 percent to be paid
18-3 to the official state breed registry for thoroughbred horses for
18-4 use as purses at racetracks in this state;
18-5 (3) a purse in the amount of 0.75 percent to be paid
18-6 to the official state breed registry for quarterhorses for use as
18-7 purses at racetracks in this state; and
18-8 (4) a purse of 4.5 percent to be escrowed with the
18-9 commission for purses in the manner set forth in Subsection (e) of
18-10 this section.
18-11 (d) A horse racetrack association receiving an interstate
18-12 cross-species simulcast signal shall distribute the following
18-13 amounts from the total amount deducted as provided by Subsection
18-14 (c) of this section from each pool wagered on the signal at the
18-15 facility:
18-16 (1) a fee of 1.5 percent to be paid to the racetrack
18-17 facility in this state sending the signal; and
18-18 (2) a purse in the amount of 5.5 percent to be paid to
18-19 the official state breed registry for greyhounds for use at
18-20 racetracks in this state.
18-21 (e) The purse set aside under Subsection (c)(4) of this
18-22 section shall be deposited into an escrow account in the registry
18-23 of the commission. Any Class 1 racetrack association in this state
18-24 may apply to the commission for receipt of all or part of the
18-25 escrowed purse account for use as purses. The commission shall
18-26 determine to which Class 1 racetracks the escrowed purse account
18-27 shall be allocated and in what percentages, taking into
18-28 consideration purse levels, racing opportunities, and the financial
18-29 status of the requesting racetrack. The first distribution of the
18-30 escrowed purse account allocated to a racetrack under this section
18-31 may not be made before October 1, 1998.
18-32 (f) After October 15, 1998, a horse racetrack association
18-33 that is located not more than 75 miles from a greyhound racetrack
18-34 facility that offers wagering on a cross-species simulcast signal
18-35 may apply to the commission for an additional allocation of up to
18-36 20 percent of the funds in the escrowed purse account that is
18-37 attributable to the wagering on a cross-species simulcast signal at
18-38 the greyhound racetrack facility, if the horse racetrack facility
18-39 sends the cross-species simulcast signal to the greyhound
18-40 racetrack. If the applying horse racetrack can prove to the
18-41 commission's satisfaction that a decrease in the racetrack's handle
18-42 has occurred that is directly due to wagering on an interstate
18-43 cross-species simulcast signal at a greyhound racetrack facility
18-44 that is located not more than 75 miles from the applying racetrack,
18-45 the commission shall allocate the amounts from the escrowed purse
18-46 account as the commission considers appropriate to compensate the
18-47 racetrack for the decrease, but the amount allocated may not exceed
18-48 20 percent of the funds in the escrowed purse account that are
18-49 attributable to the wagering on the interstate cross-species
18-50 simulcast signal at the greyhound racetrack facility. Any amount
18-51 allocated by the commission under this subsection may be used by
18-52 the racetrack facility for any purpose.
18-53 (g) If a racing association purchases an interstate
18-54 simulcast signal and the cost of the signal is more than five
18-55 percent of the pari-mutuel pool, the commission shall reimburse the
18-56 racing association an amount equal to one-half of the signal cost
18-57 that is more than five percent of the pari-mutuel pool from the
18-58 escrowed purse account under Subsection (c)(4) of this section.
18-59 (h) A greyhound racetrack facility offering wagering on an
18-60 intrastate horse race simulcast signal shall send the purse amount
18-61 set aside under Subsection (c)(4) of this section to the horse
18-62 racetrack facility conducting the live horse race that is being
18-63 simulcast.
18-64 (i) A racing facility conducting a live race that is being
18-65 simulcast may charge the receiving racetrack facility a host fee in
18-66 addition to the amounts described in this section.
18-67 (j) The commission shall adopt rules relating to this
18-68 section and the oversight of amounts allocated under Subsections
18-69 (c) and (d) of this section.
19-1 SECTION 28. Article 6, Texas Racing Act (Article 179e,
19-2 Vernon's Texas Civil Statutes), is amended by adding Sections 6.092
19-3 and 6.093 to read as follows:
19-4 Sec. 6.092. OVERSIGHT OF USE OF FUNDS GENERATED BY
19-5 PARI-MUTUEL RACING. (a) The commission shall adopt reporting,
19-6 monitoring, and auditing requirements or other appropriate
19-7 performance measures for any funds distributed to or used by or any
19-8 function or service provided by the expenditure of any funds
19-9 distributed to or used by any organization that receives funds
19-10 generated by live or simulcast pari-mutuel racing.
19-11 (b) The commission shall adopt the requirements or
19-12 performance measures after consultation with the affected
19-13 organization. In adopting the rules, the commission shall give
19-14 consideration to the concerns of the affected organization.
19-15 (c) An organization receiving funds generated by live or
19-16 simulcast pari-mutuel racing shall annually file with the
19-17 commission a copy of an audit report prepared by an independent
19-18 certified public accountant. The audit shall include a
19-19 verification of any performance report sent to or required by the
19-20 commission.
19-21 (d) The commission may review any records or books of an
19-22 organization that submits an independent audit to the commission as
19-23 the commission determines necessary to confirm or further
19-24 investigate the findings of an audit or report.
19-25 (e) The commission by rule may suspend or withhold funds
19-26 from an organization that:
19-27 (1) it determines has failed to comply with the
19-28 requirements or performance measures adopted under Subsection (a)
19-29 of this section; or
19-30 (2) has, following an independent audit or other
19-31 report to the commission, material questions raised on the use of
19-32 funds by the organization.
19-33 Sec. 6.093. DEDUCTIONS FROM LIVE PARI-MUTUEL POOL. (a)(1)
19-34 A horse racing association, until January 1, 1999, shall set aside
19-35 for the state:
19-36 (A) an amount equal to one percent of each live
19-37 pari-mutuel pool from the first $100 million of the total amount of
19-38 all live pari-mutuel pools of the association in a calendar year;
19-39 (B) an amount equal to two percent of each live
19-40 pari-mutuel pool from the next $100 million of the total amount of
19-41 all live pari-mutuel pools of the association in a calendar year;
19-42 (C) an amount equal to three percent of the next
19-43 $100 million of the total amount of all live pari-mutuel pools of
19-44 the association in a calendar year;
19-45 (D) an amount equal to four percent of the next
19-46 $100 million of the total amount of all live pari-mutuel pools of
19-47 the association in a calendar year; and
19-48 (E) an amount equal to five percent of each live
19-49 pari-mutuel pool from the amount of all live pari-mutuel pools of
19-50 the association in a calendar year not covered by Paragraphs (A)
19-51 through (D) of this subdivision.
19-52 (2) A greyhound racing association, until January 1,
19-53 1999, shall set aside for the state:
19-54 (A) an amount equal to two percent of each live
19-55 pari-mutuel pool from the first $100 million of the total amount of
19-56 all live pari-mutuel pools of the association in a calendar year;
19-57 (B) an amount equal to three percent of each
19-58 live pari-mutuel pool from the next $100 million of the total
19-59 amount of all live pari-mutuel pools of the association in a
19-60 calendar year;
19-61 (C) an amount equal to four percent of each live
19-62 pari-mutuel pool from the next $100 million of the total amount of
19-63 all live pari-mutuel pools of the association in a calendar year;
19-64 (D) an amount equal to five percent of each live
19-65 pari-mutuel pool from the total amount of all live pari-mutuel
19-66 pools of the association in a calendar year not covered by
19-67 Paragraphs (A) through (C) of this subdivision; and
19-68 (E) 50 percent of the breakage.
19-69 (3) All amounts set aside by the association for the
20-1 state in Subdivisions (1) and (2) of this subsection shall be
20-2 applied to the reimbursement of all amounts of general revenue
20-3 appropriated for the administration and enforcement of this Act in
20-4 excess of the cumulative amount deposited to the Texas Racing
20-5 Commission fund until the earlier of:
20-6 (A) the excesses together with interest thereon
20-7 are reimbursed in full; or
20-8 (B) January 1, 1999.
20-9 (b) On or after January 1, 1999, a horse or greyhound racing
20-10 association shall set aside for the state from the live pari-mutuel
20-11 pool at the association:
20-12 (1) an amount equal to one percent of each live
20-13 pari-mutuel pool from the total amount of all live pari-mutuel
20-14 pools of the association in a calendar year in excess of $100
20-15 million but less than $200 million;
20-16 (2) an amount equal to two percent of each live
20-17 pari-mutuel pool from the total amount of all live pari-mutuel
20-18 pools of the association in a calendar year in excess of $200
20-19 million but less than $300 million;
20-20 (3) an amount equal to three percent of each live
20-21 pari-mutuel pool from the total amount of all live pari-mutuel
20-22 pools of the association in a calendar year in excess of $300
20-23 million but less than $400 million;
20-24 (4) an amount equal to four percent of each live
20-25 pari-mutuel pool from the total amount of all live pari-mutuel
20-26 pools of the association in a calendar year in excess of $400
20-27 million but less than $500 million; and
20-28 (5) an amount equal to five percent of each live
20-29 pari-mutuel pool from the total amount of all live pari-mutuel
20-30 pools of the association in a calendar year in excess of $500
20-31 million.
20-32 SECTION 29. Section 7.01, Texas Racing Act (Article 179e,
20-33 Vernon's Texas Civil Statutes), is amended to read as follows:
20-34 Sec. 7.01. License required. A person may [shall] not
20-35 participate in racing with pari-mutuel wagering [as regulated by
20-36 this Act] without first obtaining a license from the commission. [A
20-37 person who violates this section commits an offense.]
20-38 SECTION 30. Section 7.02, Texas Racing Act (Article 179e,
20-39 Vernon's Texas Civil Statutes), is amended by amending Subsection
20-40 (a) and adding Subsections (c)-(e) to read as follows:
20-41 (a) Each person, other than a spectator or person placing a
20-42 wager, involved in any capacity with racing with pari-mutuel
20-43 wagering under[, other than as a spectator, as regulated by] this
20-44 Act[,] must obtain a license under this article. [A person who
20-45 violates this subsection commits an offense.]
20-46 (c) If an examination is required for the issuance of a
20-47 license under this article, not later than the 30th day after the
20-48 date on which a licensing examination is administered under this
20-49 Act, the commission shall notify each examinee of the results of
20-50 the examination.
20-51 (d) If requested in writing by a person who fails a
20-52 licensing examination administered under this Act, the commission
20-53 shall furnish the person with an analysis of the person's
20-54 performance on the examination.
20-55 (e) The commission may not approve a management contract to
20-56 operate or manage a racetrack owned by a governmental entity unless
20-57 the racetrack license holder is an owner of the entity that
20-58 proposes to manage the racetrack.
20-59 SECTION 31. Section 7.04, Texas Racing Act (Article 179e,
20-60 Vernon's Texas Civil Statutes), is amended to read as follows:
20-61 Sec. 7.04. Licenses; grounds for denial, revocation, and
20-62 suspension. The commission, after notice and hearing, may refuse
20-63 to issue any original or renewal license under this article or may
20-64 revoke or suspend the license if it has reasonable grounds to
20-65 believe and finds that:
20-66 (1) the applicant has been convicted in a court of
20-67 competent jurisdiction of a violation of this Act or of any rule
20-68 adopted by the commission or has aided, abetted, or conspired with
20-69 any person to commit such a violation;
21-1 (2) the applicant has been convicted of a felony or of
21-2 any crime involving moral turpitude that is reasonably related to
21-3 the applicant's present fitness to hold a license under this Act;
21-4 (3) the applicant has violated or has caused to be
21-5 violated this Act or a rule of the commission in a manner that
21-6 involves moral turpitude, as distinguished from a technical
21-7 violation of this Act or of a rule;
21-8 (4) the applicant is unqualified, by experience or
21-9 otherwise, to perform the duties required of a licensee under this
21-10 Act;
21-11 (5) the applicant failed to answer or has falsely or
21-12 incorrectly answered a question in an original or renewal
21-13 application;
21-14 (6) the applicant fails to disclose the true ownership
21-15 or interest in a greyhound or horse as required by the rules of the
21-16 commission;
21-17 (7) the applicant is indebted to the state for any
21-18 fees or for the payment of a penalty imposed by this Act or by a
21-19 rule of the commission;
21-20 (8) the applicant is not of good moral character or
21-21 the applicant's reputation as a peaceable, law-abiding citizen in
21-22 the community where the applicant resides is bad;
21-23 (9) the applicant is in the habit of using alcoholic
21-24 beverages to an excess or uses a controlled substance as defined in
21-25 Chapter 481, Health and Safety Code, or a dangerous drug as defined
21-26 in Chapter 483, Health and Safety Code, or is mentally
21-27 incapacitated;
21-28 (10) the applicant may be excluded from a track
21-29 enclosure under [Article 13 or 14 of] this Act;
21-30 (11) the commission determines that the applicant has
21-31 improperly used a temporary pass, license certificate, credential,
21-32 or identification card issued under this Act;
21-33 (12) the applicant is residentially domiciled with a
21-34 person whose license has been revoked for cause within the 12
21-35 months immediately preceding the date of the present application;
21-36 (13) the applicant has failed or refused to furnish a
21-37 true copy of the application to the commission's district office in
21-38 the district in which the premises for which the permit is sought
21-39 are located; or
21-40 (14) the applicant is engaged or has engaged in
21-41 activities or practices that are detrimental to the best interests
21-42 of the public and the sport of horse racing or greyhound racing.
21-43 SECTION 32. Section 7.05, Texas Racing Act (Article 179e,
21-44 Vernon's Texas Civil Statutes), is amended to read as follows:
21-45 Sec. 7.05. License fees. (a) The commission shall adopt by
21-46 rule a fee schedule for licenses issued under this article.
21-47 (b) The commission shall base the license fees on the
21-48 relative or comparative incomes or property interests of the
21-49 various categories of licensees, with the lower income category of
21-50 licensees being charged nearer the minimum fee and the higher
21-51 income category of licensees charged nearer the maximum fee.
21-52 (c) In setting the fee schedule under Subsection (a) of this
21-53 section, the commission shall include the cost of criminal history
21-54 checks determined under Section 5.05 of this Act. The commission
21-55 may determine the best method for recouping this cost and complying
21-56 with the other provisions of this section, including collecting the
21-57 costs over an extended period.
21-58 SECTION 33. Section 7.07, Texas Racing Act (Article 179e,
21-59 Vernon's Texas Civil Statutes), is amended to read as follows:
21-60 Sec. 7.07. Term of license. (a) A license issued under
21-61 this article is valid for a period set by the commission not to
21-62 exceed 36 months following the date of its issuance. It is
21-63 renewable on application and payment of the fee in accordance with
21-64 the rules of the commission.
21-65 (b) The commission by rule may adopt a system under which
21-66 licenses expire on various dates during the year. For the year in
21-67 which the license expiration date is changed, license fees shall be
21-68 prorated on a monthly basis so that each licensee pays only that
21-69 portion of the license fee that is allocable to the number of
22-1 months during which the license is valid. On renewal of the
22-2 license on the new expiration date, the total license renewal fee
22-3 is payable.
22-4 SECTION 34. Article 7, Texas Racing Act (Article 179e,
22-5 Vernon's Texas Civil Statutes), is amended by adding Section 7.10
22-6 to read as follows:
22-7 Sec. 7.10. RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.
22-8 (a) The commission may waive any prerequisite to obtaining a
22-9 license for an applicant, including any requirement to submit a set
22-10 of fingerprints, after reviewing the applicant's credentials and
22-11 determining that the applicant holds a valid license from another
22-12 state that has license requirements substantially equivalent to
22-13 those of this state.
22-14 (b) The commission may waive any prerequisite to obtaining a
22-15 license, including any requirement to submit a set of fingerprints,
22-16 for an applicant with a valid license from another state with which
22-17 the State of Texas has a reciprocity agreement. The commission may
22-18 enter into reciprocal agreements with other states to allow for
22-19 licensing by reciprocity.
22-20 SECTION 35. Section 9.01, Texas Racing Act (Article 179e,
22-21 Vernon's Texas Civil Statutes), is amended to read as follows:
22-22 Sec. 9.01. Texas-bred horses. Subject to this Act or any
22-23 rule of the commission, the [The] state horse breed registries
22-24 shall make reasonable rules to establish the qualifications of
22-25 accredited Texas-bred horses to promote, develop, and improve the
22-26 breeding of horses in this state. Rules adopted by a registry are
22-27 subject to commission approval.
22-28 SECTION 36. Section 10.04, Texas Racing Act (Article 179e,
22-29 Vernon's Texas Civil Statutes), is amended to read as follows:
22-30 Sec. 10.04. Texas-bred greyhounds. (a) Subject to this Act
22-31 or any rule of the commission, the [The] state greyhound breed
22-32 registry shall make reasonable rules to establish the
22-33 qualifications of accredited Texas-bred greyhounds to promote,
22-34 develop, and improve the breeding of greyhounds in this state.
22-35 Rules adopted by the registry are subject to commission approval.
22-36 (b) The commission shall adopt standards relating to the
22-37 operation of greyhound farms or other facilities where greyhounds
22-38 are raised for pari-mutuel racing.
22-39 SECTION 37. Section 11.011, Texas Racing Act (Article 179e,
22-40 Vernon's Texas Civil Statutes), is amended by amending Subsection
22-41 (g) and adding Subsections (h)-(l) to read as follows:
22-42 (g) Nothing in this Act is to be construed to prohibit
22-43 [allow] wagering on a simulcast horse race at a greyhound racetrack
22-44 in this state, or to prohibit [permit] wagering on a simulcast
22-45 greyhound race at a horse racetrack in this state. A horse
22-46 racetrack may not be required to accept a greyhound simulcast
22-47 signal, nor may a greyhound racetrack be required to accept a horse
22-48 simulcast signal.
22-49 (h) Except as provided by this section, a horse racetrack
22-50 facility that offers wagering on interstate greyhound race
22-51 simulcast signals must do so as provided by a contract with the
22-52 nearest greyhound racetrack. If an agreement between the
22-53 racetracks cannot be reached by October 1 of the year preceding the
22-54 calendar year in which the simulcasting is to occur, the horse
22-55 racetrack may purchase and offer wagering on greyhound race
22-56 simulcast signals and shall pay the amounts specified under
22-57 Subsection (d)(1) of this section to the nearest greyhound
22-58 racetrack.
22-59 (i) Except as provided by this section, a greyhound
22-60 racetrack facility that offers wagering on interstate horse race
22-61 simulcast signals must do so as provided by a contract with the
22-62 nearest Class 1 horse racetrack. If an agreement between the
22-63 racetracks cannot be reached by October 1 of the year preceding the
22-64 calendar year in which the simulcasting is to occur, the greyhound
22-65 racetrack may purchase and offer wagering on interstate horse race
22-66 simulcast signals and shall pay the amounts specified in Subsection
22-67 (c)(1) of this section to the nearest Class 1 horse racetrack.
22-68 (j) A horse racetrack that offers wagering on interstate
22-69 greyhound simulcast races must offer wagering on all Texas
23-1 greyhound races made available for simulcast wagering. A greyhound
23-2 racetrack that offers wagering on interstate horse simulcast races
23-3 must offer wagering on all Texas horse races made available for
23-4 simulcast wagering.
23-5 (k) Wagering on a simulcast greyhound race at a horse
23-6 racetrack that conducts its inaugural meet within 12 months of the
23-7 effective date of this Act or at an operational horse racetrack
23-8 within 60 miles of such racetrack may be conducted only pursuant to
23-9 an agreement between said racetracks.
23-10 (l) Notwithstanding other provisions of law, a greyhound
23-11 racing association and the state greyhound breed registry must by
23-12 contract agree that each simulcast contract to which the greyhound
23-13 racing association is a party, including a simulcast contract with
23-14 a horse racing association or a simulcast contract with another
23-15 greyhound racing association, include terms that provide adequately
23-16 for the development of greyhound racing in this state. If a
23-17 greyhound racing association and the state greyhound breed registry
23-18 fail to reach an agreement, the racing association or the breed
23-19 registry may submit the contract negotiations for binding
23-20 arbitration under Chapter 171, Civil Practice and Remedies Code,
23-21 and rules adopted by the commission. The arbitration must be
23-22 conducted by a board of three arbitrators. The greyhound racing
23-23 association shall appoint one arbitrator. The state greyhound
23-24 breed registry shall appoint one arbitrator. The arbitrators
23-25 appointed by the greyhound racing association and the state
23-26 greyhound breed registry shall appoint the third arbitrator. A
23-27 greyhound racing association and the state greyhound breed registry
23-28 shall each pay their own arbitration expenses. The greyhound
23-29 racing association and the state greyhound breed registry shall
23-30 equally pay the arbitrator fees and costs. This subsection does
23-31 not apply to a contract that was in effect before September 2,
23-32 1997.
23-33 SECTION 38. Article 11, Texas Racing Act (Article 179e,
23-34 Vernon's Texas Civil Statutes), is amended by adding Section 11.012
23-35 to read as follows:
23-36 Sec. 11.012. SIMULCASTING FACILITY PROGRAM. (a) The
23-37 commission shall adopt rules to implement a program for the conduct
23-38 of simulcasting at a simulcasting facility. The commission may
23-39 allow the program to operate only in a county that has, before the
23-40 effective date of this Act, approved pari-mutuel wagering and that
23-41 is within a 50-mile radius of a licensed greyhound racetrack that
23-42 has ceased operations for a period of more than two years and has
23-43 maintained its racetrack license with the commission.
23-44 (b) The commission may not register more than two
23-45 simulcasting facilities under this section.
23-46 (c) Nothing in this Act is to be construed to allow wagering
23-47 at any location other than a racetrack facility or a simulcasting
23-48 facility registered under this section.
23-49 (d) This section is repealed and expires on September 1,
23-50 2001, unless continued in existence by the legislature.
23-51 SECTION 39. Section 11.04, Texas Racing Act (Article 179e,
23-52 Vernon's Texas Civil Statutes), is amended by amending Subsection
23-53 (c) and adding Subsection (e) to read as follows:
23-54 (c) The commission shall adopt rules prohibiting an
23-55 association from accepting a wager made on credit and shall adopt
23-56 rules providing for the use of [prohibiting] automatic banking
23-57 machines within the enclosure. The commission shall limit the use
23-58 of an automatic banking machine to:
23-59 (1) allow a person to have access to only the person's
23-60 checking account at a bank or other financial institution; and
23-61 (2) deliver no more than $200.
23-62 (e) An association that allows a machine in an enclosure as
23-63 provided by Subsection (c) shall collect a fee of $1 for each
23-64 transaction under Subsection (c). The commission shall adopt rules
23-65 providing for collection, reporting, and auditing of the
23-66 transaction fee. The association shall forward the fee to the
23-67 commission. The commission shall deposit the fee to the credit of
23-68 the general revenue fund.
23-69 SECTION 40. Section 11.06, Texas Racing Act (Article 179e,
24-1 Vernon's Texas Civil Statutes), is amended to read as follows:
24-2 Sec. 11.06. Minors. [(a)] The commission shall adopt rules
24-3 to prohibit wagering by a minor [prevent wagering by persons who
24-4 have not yet attained the minimum age required to purchase
24-5 alcoholic beverages in this state] and to prohibit [prevent] a
24-6 child [person under 16 years of age] from entering the viewing
24-7 section of a racetrack unless accompanied by the child's [person's]
24-8 parent or guardian. The rules may except any conduct described as
24-9 an affirmative defense by Section 14.13 of this Act [A person who
24-10 intentionally, knowingly, recklessly, or with criminal negligence
24-11 violates a rule adopted under this section commits an offense. An
24-12 offense under this section is a Class B misdemeanor].
24-13 [(b) A person commits an offense if the person intentionally
24-14 or knowingly engages in gaming at a racetrack when the person has
24-15 not yet attained the minimum age required to purchase alcoholic
24-16 beverages in this state. An offense under this subsection is a
24-17 Class C misdemeanor.]
24-18 SECTION 41. Section 11.08, Texas Racing Act (Article 179e,
24-19 Vernon's Texas Civil Statutes), is amended to read as follows:
24-20 Sec. 11.08. Money not claimed. Not later than the 61st day
24-21 after the closing day of a race meeting, an association shall pay
24-22 to the commission all distributable money [in a pari-mutuel pool]
24-23 that is subject to payment [to a claimant] under Section 11.07 of
24-24 this Act but that is not successfully claimed and that is not spent
24-25 on drug testing under the provisions of this Act.
24-26 SECTION 42. Section 11.09, Texas Racing Act (Article 179e,
24-27 Vernon's Texas Civil Statutes), is amended to read as follows:
24-28 Sec. 11.09. No liability to prosecution. The defense to
24-29 prosecution under Chapter 47, Penal Code, that the conduct was
24-30 authorized under this Act is available only to a person who is:
24-31 (1) [A person] lawfully conducting or participating in
24-32 the conduct of pari-mutuel wagering in connection with horse racing
24-33 or greyhound racing; or
24-34 (2) permitting the lawful conduct of an activity
24-35 described by Subdivision (1) of this section on any racetrack
24-36 facility [on any premises owned or leased by him or it under any
24-37 license lawfully issued under this Act is not liable to prosecution
24-38 for that conduct].
24-39 SECTION 43. Section 13.03, Texas Racing Act (Article 179e,
24-40 Vernon's Texas Civil Statutes), is amended to read as follows:
24-41 Sec. 13.03. CRIMINAL TRESPASS [Entry after ejection].
24-42 [(a)] A person, for the purposes of Section 30.05, Penal Code, is
24-43 presumed to have received notice that entry to an enclosure was
24-44 forbidden if the person:
24-45 (1) was excluded or ejected from the enclosure under
24-46 this Act;
24-47 (2) possessed, displayed, or used in the enclosure a
24-48 credential that the person was not authorized to use; or
24-49 (3) entered the enclosure using a falsified credential
24-50 [who has been excluded or ejected from an enclosure under this
24-51 article commits an offense if the person knowingly enters an
24-52 enclosure of the same or another licensed racetrack unless the
24-53 commission or a final judgment of a court has ordered that the rule
24-54 does not apply to the person].
24-55 [(b) An offense under this section is a Class A misdemeanor.]
24-56 [(c) The provisions of Section 7.22, Penal Code, imposing
24-57 criminal responsibility on a corporation or association for an
24-58 offense committed by its agent apply to conduct constituting an
24-59 offense under this section that is performed by an agent of a
24-60 corporation or association.]
24-61 SECTION 44. Article 14, Texas Racing Act (Article 179e,
24-62 Vernon's Texas Civil Statutes), is amended to read as follows:
24-63 ARTICLE 14. CRIMINAL [TOUTING AND OTHER] OFFENSES
24-64 Sec. 14.01. Touting. (a) A person commits an offense if,
24-65 with an intent to deceive and an intent to obtain a benefit
24-66 [knowing the information is false], the person knowingly makes a
24-67 false statement [or intentionally conveys] or offers, agrees to
24-68 convey, or conveys false information about a greyhound race or
24-69 horse race to another [others for compensation].
25-1 (b) Except as provided by Subsection (c) of this section, an
25-2 offense under this section is a Class A misdemeanor [felony of the
25-3 third degree].
25-4 (c) An offense under this section is a state jail felony [of
25-5 the second degree] if:
25-6 (1) the actor is a licensee under this Act or an
25-7 employee or member of the commission and the actor knowingly
25-8 represents that a member [an official] or employee of the
25-9 commission or a [of an association or an owner, trainer, jockey, or
25-10 other] person licensed by the commission is the source of the false
25-11 information; or
25-12 (2) the false statement or information was contained
25-13 in racing selection information provided to the public [the actor
25-14 previously has been finally convicted of an offense under this
25-15 section or has been convicted of a felony for which the punishment
25-16 received was a suspended sentence, probation, or a nonadjudicated
25-17 conviction which has not yet been fully served].
25-18 [(d) The provisions of Section 7.22, Penal Code, imposing
25-19 criminal responsibility on a corporation or association for an
25-20 offense committed by its agent apply to conduct constituting an
25-21 offense under this section that is performed by an agent of a
25-22 corporation or association.]
25-23 Sec. 14.02. Unlawful Possession or use of credential.
25-24 (a) A person commits an offense if the person knowingly or
25-25 intentionally possesses or displays a [license or] credential or
25-26 false credential that identifies [has been issued or purports to
25-27 have been issued by the commission and represents that] the person
25-28 as [is] the holder of the [license or] credential and [when] the
25-29 person knows:
25-30 (1) that the [license or] credential is not issued to
25-31 the person; or
25-32 (2) the person is not a licensee [if the person
25-33 impersonates in any way a person holding a license or credential
25-34 issued by the commission].
25-35 (b) An offense under this section is a Class C misdemeanor
25-36 [felony of the third degree].
25-37 [(c) The provisions of Section 7.22, Penal Code, imposing
25-38 criminal responsibility on a corporation or association for an
25-39 offense committed by its agent apply to conduct constituting an
25-40 offense under this section that is performed by an agent of a
25-41 corporation or association.]
25-42 [Sec. 14.03. ILLEGAL INFLUENCE OF RACE OUTCOME. (a) The
25-43 commission shall adopt rules prohibiting the illegal influencing of
25-44 the outcome of a race, including but not limited to the use of
25-45 medication, stimulants, or depressants to attempt to or to
25-46 influence illegally the outcome of a race.]
25-47 [(b) The commission may require prerace testing by any
25-48 invasive or noninvasive method or methods to determine whether such
25-49 a drug, chemical, or other substance has been administered. The
25-50 commission shall require postrace testing by such method or
25-51 methods. The commission shall adopt rules that require all such
25-52 tests to be conducted using state-of-the-art methods. On any
25-53 positive test showing the presence of prohibited drugs, chemicals,
25-54 or other substances, the stewards or racing judges may summarily
25-55 suspend any person who has administered or applied the drug,
25-56 chemical, or other substance or any electric device or spur pending
25-57 hearing by the stewards or judges with the right of appeal to the
25-58 commission. Such a suspension may be stayed, in the discretion of
25-59 the commission only, during the pendency of such appeal. In
25-60 addition, the stewards or racing judges may disqualify the affected
25-61 animal pursuant to rules adopted by the commission under this
25-62 section. The commission may require that urine samples be frozen
25-63 and maintained for a period that will enable veterinarians and
25-64 chemists to conduct follow-up tests to detect and identify
25-65 prohibited drugs. All other specimens shall be maintained for
25-66 testing purposes in the manner prescribed by the commission. In the
25-67 event a sample tests positive for a drug, chemical, or other
25-68 substance, all samples, including the split portion, shall be
25-69 maintained until the matter is finally adjudicated. A licensee
26-1 whose animal has tested positive for a drug, chemical, or other
26-2 substance is entitled to have a split portion of the sample tested
26-3 at a testing facility authorized to perform drug testing under
26-4 Section 3.07 of this Act and selected by the licensee. The
26-5 commission shall adopt rules regarding the procedure for the split
26-6 testing.]
26-7 [(c) The official licensed trainer of each such animal is
26-8 deemed by law to be the absolute insurer that no prohibited drug,
26-9 chemical, or other substance has been administered and shall be
26-10 responsible to see that such a drug, chemical, or other substance
26-11 is not administered.]
26-12 [(d) By applying for a license under this Act, each
26-13 occupational licensee consents to both prerace and postrace search
26-14 for the purpose of determining the presence of such a drug,
26-15 chemical, or other substance or of any electrical device or other
26-16 device that might have the effect of unnaturally depressing,
26-17 stimulating, or exciting any animal during a race. The commission
26-18 shall adopt rules relating to drug testing for occupational
26-19 licensees.]
26-20 [(e) A person who knowingly violates a rule adopted under
26-21 this section may be barred, either for a period set by the
26-22 commission or for life, from receiving any license under this Act
26-23 or may be barred for a period set by the commission or for life
26-24 from any premises licensed under this Act, or both.]
26-25 [(f) A person who knowingly violates a rule adopted under
26-26 this section commits a felony of the third degree for the first
26-27 offense and a felony of the second degree for a second or
26-28 subsequent offense.]
26-29 [(g) A person who gives, offers or promises to give, or
26-30 attempts to give or offer any money, bribe, or thing of value to
26-31 any jockey, trainer, owner, groom, or other person associated with
26-32 or interested in any stable, kennel, horse, or dog, or race in
26-33 which any horse or dog participates, with the intention or
26-34 understanding or agreement that such individual shall not use his
26-35 best efforts to win such race, or shall so conduct himself in such
26-36 race that any other participant shall thereby be assisted or
26-37 enabled to win such race, or shall so conduct himself in such race
26-38 as to limit his finishing or placing in such race commits an
26-39 offense. Such an offense is a felony of the third degree.]
26-40 [(h) A person who accepts, attempts to accept, offers to
26-41 accept, or agrees to accept any money, bribe, or thing of value,
26-42 with the intention or understanding or agreement that he will not
26-43 use his best efforts to win any horse or dog race, in which he is
26-44 the jockey, trainer, groom, owner, or other interested party or is
26-45 about to participate in, or will so conduct himself in such race
26-46 that any other horse or dog shall thereby be assisted or enabled to
26-47 win such race, or will so conduct himself in such race as to limit
26-48 his finishing or placing in such race commits an offense. Such an
26-49 offense is a felony of the third degree.]
26-50 [(i) A person who gives, offers to give, promises to give,
26-51 or attempts to give any money, bribe, or thing of value to any
26-52 person who is presiding or officiating at or who is about to
26-53 preside or officiate at any dog or horse race with the intention or
26-54 agreement or understanding that such person shall corruptly or
26-55 dishonestly preside or officiate at any such race with the
26-56 intention or purpose that the result of the race will be affected
26-57 or influenced thereby commits an offense. Such an offense is a
26-58 felony of the third degree.]
26-59 Sec. 14.04. Illegal access. (a) A person commits an
26-60 offense if the person is a licensee and the person [licensee who]
26-61 knowingly or intentionally permits, facilitates, or allows access,
26-62 to an enclosure where races are conducted, to another [a] person
26-63 who the person knows:
26-64 (1) has engaged in bookmaking, touting, or illegal
26-65 wagering;
26-66 (2) derives[, whose] income [is] from illegal
26-67 activities or enterprises;
26-68 (3) [, or who] has been convicted of a violation of
26-69 this Act; or
27-1 (4) is excluded by the commission from entering a
27-2 racetrack facility[, commits an offense].
27-3 (b) An offense under this section is a Class B misdemeanor
27-4 [felony of the third degree].
27-5 Sec. 14.05. RACES CONDUCTED ON CERTAIN INDIAN LANDS. (a) A
27-6 person who is subject to this section commits an offense if the
27-7 person intentionally or knowingly wagers on the result of a
27-8 greyhound race or horse race conducted in this state that:
27-9 (1) is held on an American Indian reservation or on
27-10 American Indian trust land located in this state; and
27-11 (2) is not held under the supervision of the
27-12 commission under rules adopted under this Act.
27-13 (b) An offense under this section is a felony of the third
27-14 degree.
27-15 (c) It is an exception to the application of this section
27-16 that the person is a member of a recognized Texas Indian tribe who
27-17 lives on a reservation or on trust lands located in this state.
27-18 Sec. 14.06. False statements. (a) A person commits an
27-19 offense if the person [intentionally,] knowingly[, recklessly, or
27-20 with criminal negligence] makes a material and false, incorrect, or
27-21 deceptive statement to another who is conducting an investigation
27-22 or exercising discretion under this Act or a rule adopted under
27-23 this Act.
27-24 (b) In this section, the [The] term "statement" means a
27-25 representation of fact and includes[, but is not limited to]:
27-26 (1) a written or oral statement [statements]; or
27-27 (2) a sworn or unsworn statement [statements].
27-28 (c) An offense under this section is a state jail felony
27-29 unless the statement was material in a commission action relating
27-30 to a racetrack license, in which event the offense is a felony of
27-31 the third degree.
27-32 Sec. 14.07. HINDERING OF ENTRY OR SEARCH. (a) A person
27-33 commits an offense if the person [intentionally, knowingly,
27-34 recklessly, or] with criminal negligence refuses, denies, or
27-35 hinders entry to another who is exercising or attempting to
27-36 exercise a power of entry under this Act or a commission rule.
27-37 (b) A person commits an offense if the person with criminal
27-38 negligence refuses, denies, hinders, interrupts, disrupts, impedes,
27-39 or otherwise interferes with a search by a person exercising or
27-40 attempting to exercise a power to search under this Act or a
27-41 commission rule.
27-42 (c) [(b)] An offense under this section is a Class B
27-43 misdemeanor.
27-44 Sec. 14.08. FORGING PARI-MUTUEL TICKET. (a) A person
27-45 commits an offense if the person intentionally or knowingly forges
27-46 a pari-mutuel ticket with the intent to defraud or harm another.
27-47 (b) In this section, "forge" has the meaning assigned by
27-48 Section 32.21, Penal Code.
27-49 (c) An offense under this section is a felony of the third
27-50 degree.
27-51 Sec. 14.09. IMPERSONATING A LICENSEE. (a) A person commits
27-52 an offense if the person impersonates a licensee with the intent to
27-53 induce another person to submit to the actor's purported authority
27-54 as a licensee or to rely on the actor's actions as an alleged
27-55 licensee.
27-56 (b) An offense under this section is a Class A misdemeanor.
27-57 Sec. 14.10. UNLAWFUL INFLUENCE ON RACING. (a) A person
27-58 commits an offense if the person possesses a prohibited device or
27-59 prohibited substance on a racetrack facility, in an enclosure, or
27-60 at a training facility.
27-61 (b) An offense under Subsection (a) of this section is a
27-62 Class A misdemeanor, unless the actor possessed the device or
27-63 substance with the intent to influence or affect the outcome of a
27-64 horse or greyhound race in a manner contrary to this Act or a
27-65 commission rule, in which event it is a state jail felony.
27-66 (c) A person commits an offense if, with the intent to
27-67 influence or affect a horse or greyhound race in a manner contrary
27-68 to this Act or a commission rule, the person:
27-69 (1) uses or offers to use a prohibited device; or
28-1 (2) uses or offers to use a prohibited substance.
28-2 (d) An offense under Subsection (c) of this section is a
28-3 felony of the third degree.
28-4 Sec. 14.11. BRIBERY AND CORRUPT INFLUENCE. (a) A person
28-5 commits an offense if, with the intent to influence or affect the
28-6 outcome of a race in a manner contrary to this Act or a commission
28-7 rule, the person offers, confers, agrees to confer on another, or
28-8 solicits, accepts, or agrees to accept from another person any
28-9 benefit as consideration for the actions of a person who receives
28-10 the benefit relating to the conduct, decision, opinion,
28-11 recommendation, vote, or exercise of discretion as a licensee or
28-12 other person associated with or interested in any stable, kennel,
28-13 horse, greyhound, or horse or greyhound race.
28-14 (b) An offense under this section is a state jail felony,
28-15 unless the recipient of the benefit is a steward, judge, or other
28-16 racetrack official exercising authority over a horse or greyhound
28-17 race that the person providing or offering the benefit intended to
28-18 influence, in which event it is a felony of the third degree.
28-19 Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is
28-20 a member of the commission commits an offense if the person:
28-21 (1) accepts, directly or indirectly, employment or
28-22 remuneration from a racetrack facility, association, or other
28-23 licensee, including a facility, association, or licensee located or
28-24 residing in another state;
28-25 (2) wagers or causes a wager to be placed on the
28-26 outcome of a horse or greyhound race conducted in this state; or
28-27 (3) accepts or is entitled to any part of a purse to
28-28 be paid to an animal in a race conducted in this state.
28-29 Sec. 14.13. OFFENSES INVOLVING A MINOR. (a) A person
28-30 commits an offense if the person with criminal negligence permits,
28-31 facilitates, or allows:
28-32 (1) wagering by a minor at a racetrack facility; or
28-33 (2) entry by a child to the viewing section of a
28-34 racetrack facility.
28-35 (b) An offense under Subsection (a) of this section is a
28-36 Class B misdemeanor.
28-37 (c) A person commits an offense if the person is a minor and
28-38 intentionally or knowingly engages in wagering at a racetrack.
28-39 (d) An offense under Subsection (c) of this section is a
28-40 Class C misdemeanor.
28-41 (e) It is an affirmative defense to prosecution of an
28-42 offense under Subsection (a)(2) that a child was accompanied by and
28-43 was in the physical presence of a parent, guardian, or spouse who
28-44 was 21 years of age or older.
28-45 (f) It is an affirmative defense to prosecution of an
28-46 offense under Subsection (a) of this section that the minor falsely
28-47 represented the minor's age by displaying to the person an
28-48 apparently valid Texas driver's license or identification card
28-49 issued by the Department of Public Safety that contains a physical
28-50 description consistent with the minor's appearance.
28-51 Sec. 14.14. UNLAWFUL RACING. A person commits an offense
28-52 if:
28-53 (1) the person participates, permits, or conducts a
28-54 greyhound or horse race at a licensed racetrack facility;
28-55 (2) the person wagers on the partial or final outcome
28-56 of the greyhound or horse race or knows or reasonably should know
28-57 that another is betting on the partial or final outcome of the
28-58 race; and
28-59 (3) the race is not part of a performance or meeting
28-60 conducted under this Act or commission rule.
28-61 Sec. 14.15. PARI-MUTUEL RACING WITHOUT LICENSE. (a) A
28-62 person commits an offense if, without a license, the person
28-63 participates or is otherwise involved in, in any capacity,
28-64 greyhound racing or horse racing with pari-mutuel wagering.
28-65 (b) It is an affirmative defense to prosecution under
28-66 Subsection (a) of this section that the actor was a spectator or a
28-67 person placing a wager.
28-68 (c) An offense under Subsection (a) of this section is a
28-69 Class A misdemeanor, unless the actor was required by this Act to
29-1 obtain a racetrack license, in which event it is a state jail
29-2 felony.
29-3 Sec. 14.16. RACING WITHOUT LICENSE. (a) A person commits
29-4 an offense if the person:
29-5 (1) conducts a greyhound or horse race without a
29-6 racetrack license; and
29-7 (2) knows or reasonably should know that another
29-8 person is betting on the final or partial outcome of the race.
29-9 (b) An offense under this section is a felony of the third
29-10 degree.
29-11 Sec. 14.17. FAILURE TO DISPLAY CREDENTIAL. (a) A person
29-12 commits an offense if the person intentionally or knowingly:
29-13 (1) fails or refuses to display a credential to
29-14 another after a lawful request; or
29-15 (2) fails or refuses to give the person's name,
29-16 residence address, or date of birth to another after a lawful
29-17 request.
29-18 (b) In this section, "lawful request" means a request from
29-19 the commission, an authorized agent of the commission, the director
29-20 or a commissioned officer of the Department of Public Safety, a
29-21 peace officer, or a steward or judge at any time and any restricted
29-22 location that:
29-23 (1) is on a racetrack facility; and
29-24 (2) is not a public place.
29-25 (c) Except as provided by Subsection (d) of this section, an
29-26 offense under this section is a Class B misdemeanor.
29-27 (d) At the punishment stage of a trial for an offense under
29-28 Subsection (a)(1) of this section, the defendant may raise an issue
29-29 as to whether the defendant was a licensee at the time of the
29-30 offense. If the defendant proves the issue, the offense is a Class
29-31 C misdemeanor.
29-32 Sec. 14.18. SEARCH AND SEIZURE. (a) A person consents to a
29-33 search at a time and location described in Subsection (b) of this
29-34 section for a prohibited device, prohibited substance, or other
29-35 contraband if the person:
29-36 (1) accepts a license or other credential issued under
29-37 this Act; or
29-38 (2) enters a racetrack facility under the authority of
29-39 a license or other credential alleged to have been issued under
29-40 this Act.
29-41 (b) A search may be conducted by a commissioned officer of
29-42 the Department of Public Safety or a peace officer, including a
29-43 peace officer employed by the commission, at any time and at any
29-44 location that is on a racetrack facility, except a location:
29-45 (1) excluded by commission rule from searches under
29-46 this section; or
29-47 (2) provided by an association under commission rule
29-48 for private storage of personal items belonging to a licensee
29-49 entering a racetrack facility.
29-50 (c) A person conducting a search under Subsection (b) of
29-51 this section may seize any prohibited device, prohibited substance,
29-52 or other contraband discovered during the search.
29-53 Sec. 14.19. PROSECUTION. A person who is subject to
29-54 prosecution for a penal offense under this Act and another law may
29-55 be prosecuted under either law.
29-56 Sec. 14.20. COMMISSION AUTHORITY. This article may not be
29-57 construed to restrict the commission's administrative authority to
29-58 enforce this Act or commission rules to the fullest extent
29-59 authorized by this Act.
29-60 Sec. 14.21. VENUE FOR CRIMINAL PROSECUTION. The venue for
29-61 the prosecution of a criminal offense under this Act is in Travis
29-62 County or in a county where an element of the offense occurred.
29-63 SECTION 45. Section 15.01, Texas Racing Act (Article 179e,
29-64 Vernon's Texas Civil Statutes), is amended to read as follows:
29-65 Sec. 15.01. GENERAL PENALTY. If [With regard to any
29-66 provision of this Act that is a penal offense, if] no specific
29-67 penalty is provided for a provision of this Act that is a penal
29-68 offense, a person who violates the [such a] provision commits a
29-69 state jail felony [of the third degree].
30-1 SECTION 46. Article 16, Texas Racing Act (Article 179e,
30-2 Vernon's Texas Civil Statutes), is amended by adding Section 16.021
30-3 to read as follows:
30-4 Sec. 16.021. APPROVAL OF SIMULCAST RACES. The commissioners
30-5 court of a county in which there is a racetrack conducting live
30-6 racing, on its own motion by a majority vote of its members, may
30-7 order an election to approve pari-mutuel wagering on simulcast
30-8 greyhound or horse races.
30-9 SECTION 47. Section 16.11(b), Texas Racing Act (Article
30-10 179e, Vernon's Texas Civil Statutes), is amended to read as
30-11 follows:
30-12 (b) The ballots shall be printed to permit voting for or
30-13 against the proposition: "Legalizing pari-mutuel wagering on horse
30-14 races in __________ County," [or] "Legalizing pari-mutuel wagering
30-15 on greyhound races in __________ County," or "Authorizing
30-16 pari-mutuel wagering on simulcast races in _____ County," as
30-17 appropriate.
30-18 SECTION 48. Section 16.12(a), Texas Racing Act (Article
30-19 179e, Vernon's Texas Civil Statutes), is amended to read as
30-20 follows:
30-21 (a) If a majority of the votes cast in the election are for
30-22 the legalization of pari-mutuel wagering on horse races or
30-23 greyhound races in the county, or for the authorization of
30-24 pari-mutuel wagering on simulcast races in the county, as
30-25 appropriate, the commissioners court shall certify that fact to the
30-26 secretary of state not later than the 10th day after the date of
30-27 the canvass of the returns.
30-28 SECTION 49. Section 18.01(a), Texas Racing Act (Article
30-29 179e, Vernon's Texas Civil Statutes), is amended to read as
30-30 follows:
30-31 (a) The Texas Racing Commission is subject to Chapter 325,
30-32 Government Code (Texas Sunset Act). Unless continued in existence
30-33 as provided by that chapter, and except as provided by Subsections
30-34 (b) and (c) of this section, the commission is abolished and this
30-35 Act expires September 1, 2005 [1997].
30-36 SECTION 50. Section 18.06, Texas Racing Act (Article 179e,
30-37 Vernon's Texas Civil Statutes), is amended to read as follows:
30-38 Sec. 18.06. Release of liability. A member of the
30-39 commission, an employee of the commission, a steward or judge, an
30-40 association, a horsemen's organization, or any other person
30-41 regulated under this Act is not liable to any individual,
30-42 corporation, business association, or other entity for a cause of
30-43 action that arises out of that person's performance or exercise of
30-44 discretion in the implementation or enforcement of this Act or a
30-45 rule adopted under this Act if the person has acted in good faith.
30-46 SECTION 51. Article 18, Texas Racing Act (Article 179e,
30-47 Vernon's Texas Civil Statutes), is amended by adding Section 18.08
30-48 to read as follows:
30-49 Sec. 18.08. DISTANCE LEARNING. The commission may provide
30-50 assistance to members of the racing industry who are attempting to
30-51 develop or implement adult, youth, or continuing education programs
30-52 that use distance learning.
30-53 SECTION 52. Section 466.155(a), Government Code, is amended
30-54 to read as follows:
30-55 (a) After a hearing, the director shall deny an application
30-56 for a license or the commission shall suspend or revoke a license
30-57 if the director or commission, as applicable, finds that the
30-58 applicant or sales agent:
30-59 (1) is an individual who:
30-60 (A) has been convicted of a felony, criminal
30-61 fraud, gambling or a gambling-related offense, or a misdemeanor
30-62 involving moral turpitude, if less than 10 years has elapsed since
30-63 the termination of the sentence, parole, mandatory supervision, or
30-64 probation served for the offense;
30-65 (B) is or has been a professional gambler;
30-66 (C) is married to an individual:
30-67 (i) described in Paragraph (A) or (B); or
30-68 (ii) who is currently delinquent in the
30-69 payment of any state tax;
31-1 (D) is an officer or employee of the commission
31-2 or a lottery operator; or
31-3 (E) is a spouse, child, brother, sister, or
31-4 parent residing as a member of the same household in the principal
31-5 place of residence of a person described by Paragraph (D);
31-6 (2) is not an individual, and an individual described
31-7 in Subdivision (1):
31-8 (A) is an officer or director of the applicant
31-9 or sales agent;
31-10 (B) holds more than 10 percent of the stock in
31-11 the applicant or sales agent;
31-12 (C) holds an equitable interest greater than 10
31-13 percent in the applicant or sales agent;
31-14 (D) is a creditor of the applicant or sales
31-15 agent who holds more than 10 percent of the applicant's or sales
31-16 agent's outstanding debt;
31-17 (E) is the owner or lessee of a business that
31-18 the applicant or sales agent conducts or through which the
31-19 applicant will conduct a ticket sales agency;
31-20 (F) shares or will share in the profits, other
31-21 than stock dividends, of the applicant or sales agent; or
31-22 (G) participates in managing the affairs of the
31-23 applicant or sales agent;
31-24 (3) is currently delinquent in the payment of any
31-25 state tax;
31-26 (4) is a person whose location for the sales agency
31-27 is:
31-28 (A) [a racetrack at which wagering is authorized
31-29 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
31-30 Statutes);]
31-31 [(B)] a location licensed for games of bingo
31-32 under the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
31-33 Statutes);
31-34 (B) [(C)] on land that is owned by:
31-35 (i) this state; or
31-36 (ii) a political subdivision of this state
31-37 and on which is located a public primary or secondary school, an
31-38 institution of higher education, or an agency of the state; or
31-39 (C) [(D)] a location for which a person holds a
31-40 wine and beer retailer's permit, mixed beverage permit, mixed
31-41 beverage late hours permit, private club registration permit, or
31-42 private club late hours permit issued under Chapter 25, 28, 29, 32,
31-43 or 33, Alcoholic Beverage Code; or
31-44 (5) has violated this chapter or a rule adopted under
31-45 this chapter.
31-46 SECTION 53. Section 481.172, Government Code, is amended to
31-47 read as follows:
31-48 Sec. 481.172. Duties. The department shall:
31-49 (1) promote and advertise within the United States and
31-50 in foreign countries, by radio, television, newspaper, and other
31-51 means considered appropriate, tourism in this state by non-Texans,
31-52 including persons from foreign countries, and distribute
31-53 promotional materials through appropriate agencies, including the
31-54 United States Travel and Tourism Agency;
31-55 (2) encourage travel by Texans to this state's scenic,
31-56 historical, natural, agricultural, educational, recreational, and
31-57 other attractions;
31-58 (3) coordinate and stimulate orderly and accelerated
31-59 development of tourist attractions throughout this state;
31-60 (4) conduct a public relations campaign to create a
31-61 responsible and accurate national and international image of this
31-62 state;
31-63 (5) cooperate fully with the Parks and Wildlife
31-64 Department in all matters relating to promotion of tourism;
31-65 (6) cooperate with the Texas Transportation Commission
31-66 in the administration of the commission's collateral program of
31-67 highway map distribution and operation of travel information
31-68 bureaus and other tourist-related functions of the commission;
31-69 [and]
32-1 (7) encourage communities, organizations, and
32-2 individuals in this state to cooperate with its program by their
32-3 activities and use of their own funds and collaborate with those
32-4 organizations and other governmental entities in the pursuit of the
32-5 objectives of this subchapter; and
32-6 (8) promote and encourage the horse racing and
32-7 greyhound racing industry, if funds are appropriated for the
32-8 promotion or encouragement.
32-9 SECTION 54. Sections 2.07, 3.01, 6.08(c), 6.09(b), 11.04(d),
32-10 15.02, and 18.02, Texas Racing Act (Article 179e, Vernon's Texas
32-11 Civil Statutes), are repealed.
32-12 SECTION 55. (a) This Act takes effect September 1, 1997.
32-13 (b) The changes in law made by this Act relating to the
32-14 qualifications and appointment of members to the Texas Racing
32-15 Commission do not affect the entitlement of a member of the
32-16 commission serving immediately before the effective date of this
32-17 Act to continue to serve on the commission for the term to which
32-18 the member was appointed. As the terms of members of the
32-19 commission expire or as vacancies on the commission occur, the
32-20 governor shall make appointments to the commission to achieve as
32-21 soon as possible the membership plan prescribed for the commission
32-22 by the Texas Racing Act (Article 179e, Vernon's Texas Civil
32-23 Statutes), as amended by this Act.
32-24 (c) The Texas Racing Commission shall review all of the
32-25 rules of the commission before January 1, 2002. The commission,
32-26 following the review, shall readopt, modify, or repeal the rules
32-27 before January 1, 2002. In reviewing the rules of the commission,
32-28 the commission shall, to the extent feasible, attempt to have
32-29 uniform approaches to the regulation of activities related to horse
32-30 racing and greyhound racing.
32-31 (d) The authority for rulemaking and licensing and for any
32-32 action relating exclusively to horse racing or exclusively to
32-33 greyhound racing that was granted to a separate section of the
32-34 Texas Racing Commission is transferred to the Texas Racing
32-35 Commission.
32-36 SECTION 56. For the purpose of providing a fair and
32-37 effective transition for the racing stewards and judges from
32-38 employment by an association to employment by the state, the Texas
32-39 Racing Commission shall provide an opportunity for a steward or
32-40 judge to obtain an exemption from the application of Section
32-41 2.12(c), Texas Racing Act (Article 179e, Vernon's Texas Civil
32-42 Statutes), as amended by this Act. The request for an exemption
32-43 must be filed by a judge or steward with the Texas Racing
32-44 Commission on or before October 31, 1997. The executive secretary
32-45 may approve, limit, or deny the exemption as determined to be
32-46 appropriate under standards adopted by the commission to promote
32-47 fairness and the purposes of this Act.
32-48 SECTION 57. All amounts, estimated to be $2,741,015 together
32-49 with $194,741 in interest, that have been transferred into Fund 517
32-50 since fiscal year 1992 are applied to reimburse any amount of
32-51 general revenue appropriated for the administration and enforcement
32-52 of the Texas Racing Act that is in excess of the cumulative amount
32-53 deposited in the Texas Racing Commission fund.
32-54 SECTION 58. For the purpose of providing a study of the
32-55 growth and progress of horse racing in this state, the lieutenant
32-56 governor may create a senate interim committee to report to the
32-57 76th Legislature, Regular Session, 1999. The committee shall
32-58 consider the overall performance and growth of the state's horse
32-59 racing industry and the relationship between the thoroughbred and
32-60 quarter horse breeds, the horse racing associations, and the Texas
32-61 Racing Commission as that relationship relates to the availability
32-62 of horse racing opportunities and live and simulcasting wagering.
32-63 The Texas Racing Commission shall provide assistance to the interim
32-64 committee.
32-65 SECTION 59. From September 1, 1997, through December 31,
32-66 1997, the Texas Racing Commission shall allow cross-species
32-67 simulcasting to be conducted under the terms of an agreement, if an
32-68 agreement exists, or, if no agreement exists, as provided by
32-69 Section 6.091, Texas Racing Act (Article 179e, Vernon's Texas Civil
33-1 Statutes), as amended by this Act.
33-2 SECTION 60. (a) The changes in law made by this Act apply
33-3 only to an offense committed on or after the effective date of this
33-4 Act. For purposes of this section, an offense is committed before
33-5 the effective date of this Act if any element of the offense occurs
33-6 before the effective date.
33-7 (b) An offense committed before the effective date of this
33-8 Act is covered by the law in effect when the offense was committed,
33-9 and the former law is continued in effect for this purpose.
33-10 SECTION 61. The importance of this legislation and the
33-11 crowded condition of the calendars in both houses create an
33-12 emergency and an imperative public necessity that the
33-13 constitutional rule requiring bills to be read on three several
33-14 days in each house be suspended, and this rule is hereby suspended.
33-15 * * * * *