By Wilson                                       H.B. No. 3299

      75R8663 MWV-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, appointment, powers, and duties of the

 1-3     Texas Gaming Commission and to the transfer to that commission of

 1-4     the powers and duties of the Texas Racing Commission and the Texas

 1-5     Lottery Commission.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7              ARTICLE 1.  TRANSFER OF TEXAS LOTTERY COMMISSION

 1-8                              POWERS AND DUTIES

 1-9           SECTION 1.01.  The purpose of this article is to transfer the

1-10     powers and duties of the Texas Lottery Commission to the Texas

1-11     Gaming Commission.

1-12           SECTION 1.02.  Section 466.002(1), Government Code, is

1-13     amended to read as follows:

1-14                 (1)  "Commission" means the Texas Gaming [Lottery]

1-15     Commission.

1-16           SECTION 1.03.  The title of Chapter 467, Government Code, is

1-17     amended to read as follows:

1-18               CHAPTER 467.  TEXAS GAMING [LOTTERY] COMMISSION

1-19           SECTION 1.04.  Section 467.001, Government Code, is amended

1-20     to read as follows:

1-21           Sec. 467.001.  DEFINITIONS.  In this chapter:

1-22                 (1)  "Commission" means the Texas Gaming [Lottery]

1-23     Commission.

1-24                 (2)  "Executive director" means the executive director

 2-1     of the Texas Gaming [Lottery] Commission.

 2-2           SECTION 1.05.  Section 467.002, Government Code, is amended

 2-3     to read as follows:

 2-4           Sec. 467.002.  APPLICATION OF SUNSET ACT.  The commission is

 2-5     subject to Chapter 325 (Texas Sunset Act). Unless continued in

 2-6     existence as provided by that chapter, the commission is abolished

 2-7     and this Act expires September 1, 2009 [2003].

 2-8           SECTION 1.06.  Section 467.021(c), Government Code, is

 2-9     amended to read as follows:

2-10           (c)  One member must have experience in the bingo industry.

2-11     One other member must have experience in the horse or dog racing

2-12     industry.  The third member must have experience in both the bingo

2-13     and the horse or dog racing industries.

2-14           SECTION 1.07.  Section 467.024(a), Government Code, is

2-15     amended to read as follows:

2-16           (a)  An individual is not eligible to be an appointed member

2-17     of the commission if the individual:

2-18                 (1)  owns or controls, directly or indirectly, more

2-19     than a 10 percent interest in a business entity or other

2-20     organization regulated by the commission or receiving funds from

2-21     the commission;

2-22                 (2)  is employed by or participates in the management

2-23     of a business entity or other organization regulated by the

2-24     commission or receiving funds from the commission;

2-25                 (3)  uses or receives a substantial amount of tangible

2-26     goods, services, or funds from the commission, other than

2-27     compensation or reimbursement authorized by law for commission

 3-1     membership, attendance, or expenses;

 3-2                 (4)  is an officer, employee, or paid consultant of a

 3-3     Texas trade association in the field of horse or dog racing, bingo,

 3-4     or lottery;

 3-5                 (5)  is required to register as a lobbyist under

 3-6     Chapter 305 because of the person's activities for compensation on

 3-7     behalf of a profession related to the operation of the commission;

 3-8                 (6)  is married to an individual described by

 3-9     Subdivision (1)-(5);

3-10                 (7)  has been convicted of a felony or of any crime

3-11     involving moral turpitude; or

3-12                 (8)  is not a citizen of the United States.

3-13           SECTION 1.08.  Section 467.025(a), Government Code, is

3-14     amended to read as follows:

3-15           (a)  A commission member may not:

3-16                 (1)  accept any employment or remuneration from:

3-17                       (A)  a person that has a significant financial

3-18     interest in the lottery; [or]

3-19                       (B)  a bingo commercial lessor, bingo

3-20     distributor, or bingo manufacturer; or

3-21                       (C)  a person that has a significant financial

3-22     interest in the horse or dog racing industry;

3-23                 (2)  play any lottery or bingo game or bet on any horse

3-24     or dog race conducted in this state;

3-25                 (3)  accept or be entitled to accept any part of the

3-26     winnings to be paid from a lottery, horse or dog race, or bingo

3-27     game conducted in this state;

 4-1                 (4)  use the member's official authority to affect the

 4-2     result of an election or nomination for public office; or

 4-3                 (5)  directly or indirectly coerce, attempt to coerce,

 4-4     command, or advise a person to pay, lend, or contribute anything of

 4-5     value to another person for political purposes.

 4-6           SECTION 1.09.  Section 467.031, Government Code, is amended

 4-7     to read as follows:

 4-8           Sec. 467.031.  DIVISIONS.  The commission shall establish

 4-9     separate divisions to oversee horse and dog racing, bingo, and the

4-10     state  lottery.

4-11           SECTION 1.10.  Section 467.035(a), Government Code, is

4-12     amended to read as follows:

4-13           (a)  The commission may not employ or continue to employ a

4-14     person who owns a financial interest in:

4-15                 (1)  a bingo commercial lessor, bingo distributor, or

4-16     bingo manufacturer;  [or]

4-17                 (2)  a lottery sales agency or a lottery operator; or

4-18                 (3)  a business providing goods or services to the dog

4-19     or horse racing industry.

4-20           SECTION 1.11.  Sections 467.101(a) and (c), Government Code,

4-21     are amended to read as follows:

4-22           (a)  The commission has broad authority and shall exercise

4-23     strict control and close supervision over all activities authorized

4-24     and conducted in this state under:

4-25                 (1)  the Bingo Enabling Act (Article 179d, Vernon's

4-26     Texas Civil Statutes); [and]

4-27                 (2)  Chapter 466; and

 5-1                 (3)  the Texas Racing Act (Article 179e, Vernon's Texas

 5-2     Civil Statutes).

 5-3           (c)  The commission also has the powers and duties granted

 5-4     under:

 5-5                 (1)  the Bingo Enabling Act (Article 179d, Vernon's

 5-6     Texas Civil Statutes); [and]

 5-7                 (2)  Chapter 466; and

 5-8                 (3)  the Texas Racing Act (Article 179e, Vernon's Texas

 5-9     Civil Statutes).

5-10           SECTION 1.12.  Section 2(20), Bingo Enabling Act (Article

5-11     179d, Vernon's Texas Civil Statutes), is amended to read as

5-12     follows:

5-13                 (20)  "Commission" means the Texas Gaming [Lottery]

5-14     Commission.

5-15           SECTION 1.13.  Section 16(a), Bingo Enabling Act (Article

5-16     179d, Vernon's Texas Civil Statutes), is amended to read as

5-17     follows:

5-18           (a)  The commission shall administer this Act.  The

5-19     commission has broad authority and shall exercise strict control

5-20     and close supervision over all games of bingo conducted in this

5-21     state to the end that the games are fairly conducted and the

5-22     proceeds derived from the games are used for the purposes

5-23     authorized in this Act.  The commission's authority under this Act

5-24     is executed through a division established by the [administrator of

5-25     the] commission to administer this Act.  The executive director

5-26     [administrator] shall employ a director of bingo operations to

5-27     administer the division under the direction of the commission and

 6-1     executive  director [administrator].  The commission may adopt

 6-2     rules for the enforcement and administration of this Act.

 6-3           SECTION 1.14.  Subchapter A, Chapter 467, Government Code, is

 6-4     amended by adding Section 467.003 to read as follows:

 6-5           Sec. 467.003.  REFERENCES TO PRECEDING COMMISSION.  Any

 6-6     reference in law to the Texas Lottery Commission means the Texas

 6-7     Gaming Commission.

 6-8           SECTION 1.15.   Section 467.032(c), Government Code, is

 6-9     repealed.

6-10           SECTION 1.16.  (a)  The Texas Lottery Commission as it exists

6-11     on the effective date of this Act is abolished.  The terms of

6-12     office of the members of the Texas Lottery Commission serving on

6-13     that date expire on the date of the first meeting of the Texas

6-14     Gaming Commission created by this Act.

6-15           (b)  The Texas Gaming Commission, composed as provided by

6-16     Chapter 467, Government Code, as amended by this Act, is created.

6-17     The governor shall make appointments to the commission in

6-18     accordance with that chapter as soon as possible after the

6-19     effective date of this Act.  In making those appointments, the

6-20     governor shall designate the terms of office to be served as

6-21     follows:

6-22                 (1)  one appointee shall be appointed for a term

6-23     expiring February 1, 1999;

6-24                 (2)  one appointee shall be appointed for a term

6-25     expiring February 1, 2001; and

6-26                 (3)  one appointee shall be appointed for a term

6-27     expiring February 1, 2003.

 7-1           (c)  As soon as possible after the effective date of this

 7-2     Act, and after the time that the governor makes all three

 7-3     appointments under Subsection (b) of this section, the

 7-4     commissioners shall appoint the executive director of the Texas

 7-5     Gaming Commission in accordance with Section 467.032, Government

 7-6     Code, as amended by this Act.  The executive director appointed

 7-7     under this subsection takes office on the date determined by the

 7-8     commission created by this Act.  Until that time, the person

 7-9     employed to perform the duties of the executive director by the

7-10     Texas Lottery Commission abolished by this Act may continue to

7-11     perform those duties under the prior law governing the authority of

7-12     the executive director of the Texas Lottery Commission and the

7-13     prior law governing the authority of the executive secretary of the

7-14     Texas Racing Commission, and the prior law is continued in effect

7-15     for that purpose.

7-16           (d)  The governor or the person appointed by the governor to

7-17     be the presiding officer of the Texas Gaming Commission created by

7-18     this Act may designate a person to perform the ministerial duties

7-19     necessary for posting notice of and holding the first meeting of

7-20     the Texas Gaming Commission created by this Act.

7-21           (e)  The Texas Gaming Commission created by this Act has all

7-22     the powers and duties provided by law and all the property, funds,

7-23     rules, employees, unspent appropriations, documents, rights, and

7-24     obligations of the abolished Texas Lottery Commission, except to

7-25     the extent the laws governing the abolished commission's powers and

7-26     duties are amended by this Act.

7-27           (f)  The rules, policies, procedures, and decisions of the

 8-1     abolished commission are continued in effect as rules, policies,

 8-2     procedures, and decisions of the Texas Gaming Commission created by

 8-3     this Act until superseded by a rule or other appropriate action of

 8-4     the new commission.

 8-5           (g)  The validity of a rule, form, or procedure adopted,

 8-6     contract or acquisition made, proceeding begun, obligation

 8-7     incurred, right accrued, or other action taken by or in connection

 8-8     with the authority of the Texas Lottery Commission before it is

 8-9     abolished under Subsection (a) of this section is not affected by

8-10     the abolishment.

8-11           (h)  An action or proceeding before the Texas Lottery

8-12     Commission or to which the Texas Lottery Commission is a party is

8-13     transferred without change in status to the Texas Gaming

8-14     Commission.

8-15               ARTICLE 2.  TRANSFER OF TEXAS RACING COMMISSION

8-16                              POWERS AND DUTIES

8-17           SECTION 2.01.  The purpose of this article is to transfer the

8-18     powers and duties of the Texas Racing Commission to the Texas

8-19     Gaming Commission.

8-20           SECTION 2.02.  Sections 1.03(3) and (5), Texas Racing Act

8-21     (Article 179e, Vernon's Texas Civil Statutes), are amended to read

8-22     as follows:

8-23                 (3)  "Commission" means the Texas Gaming [Racing]

8-24     Commission.

8-25                 (5)  "Executive secretary" means the executive

8-26     secretary of the racing division appointed by the executive

8-27     director  of the commission [Texas Racing Commission].

 9-1           SECTION 2.03.  The title of Article 2, Texas Racing Act

 9-2     (Article 179e, Vernon's Texas Civil Statutes), is amended to read

 9-3     as follows:

 9-4                    ARTICLE 2.  [TEXAS RACING] COMMISSION

 9-5           SECTION 2.04.  Section 2.06, Texas Racing Act (Article 179e,

 9-6     Vernon's Texas Civil Statutes), is amended to read as follows:

 9-7           Sec. 2.06.  FINANCIAL STATEMENT.  Each appointed member of

 9-8     the commission and the executive secretary of the racing division

 9-9     of the commission is an "appointed officer of a major state agency"

9-10     within the meaning of Chapter 572, Government Code [Chapter 421,

9-11     Acts of the 63rd Legislature, Regular Session, 1973 (Article

9-12     6252-9b, Vernon's Texas Civil Statutes)].  An appointee shall also

9-13     file a detailed financial statement with the secretary of state of

9-14     the type required by The Banking Department of Texas in the

9-15     application for charter for state banks.  The financial statement

9-16     is a public record under Chapter 552, Government Code [Chapter 424,

9-17     Acts of the 63rd Legislature, Regular Session, 1973 (Article

9-18     6252-17a, Vernon's Texas Civil Statutes)].

9-19           SECTION 2.05.  Section 2.12(a), Texas Racing Act (Article

9-20     179e, Vernon's Texas Civil Statutes), is amended to read as

9-21     follows:

9-22           (a)  The commission shall employ an executive secretary,

9-23     appointed by the executive director of the commission, and other

9-24     employees as  necessary to administer this Act.

9-25           SECTION 2.06.  Section 3.02, Texas Racing Act (Article 179e,

9-26     Vernon's Texas Civil Statutes), is amended to read as follows:

9-27           Sec. 3.02.  REGULATION AND SUPERVISION.  The [In accordance

 10-1    with Section 3.01 of this Act, the] commission shall regulate and

 10-2    supervise every  race meeting in this state involving wagering on

 10-3    the result of greyhound or horse racing.  All persons and things

 10-4    relating to the operation of those meetings are subject to

 10-5    regulation and supervision by the commission.  The commission shall

 10-6    adopt rules for conducting greyhound or horse racing in this state

 10-7    involving wagering and shall adopt other rules to administer this

 10-8    Act that are consistent with this Act.

 10-9          SECTION 2.07.  Section 3.09(b), Texas Racing Act (Article

10-10    179e, Vernon's Texas Civil Statutes), is amended to read as

10-11    follows:

10-12          (b)  The commission shall deposit the money it collects under

10-13    this Act in the State Treasury to the credit of a special fund to

10-14    be known as the Texas Racing [Commission] fund.  The Texas Racing

10-15    [Commission] fund may be appropriated only for the administration

10-16    and enforcement of this Act.  Any unappropriated money remaining in

10-17    that special fund at the close of each fiscal biennium shall be

10-18    transferred to the General Revenue Fund and may be appropriated for

10-19    any legal purpose.  The legislature may also appropriate money from

10-20    the General Revenue Fund for the administration and enforcement of

10-21    this Act.  Any amount of general revenue appropriated for the

10-22    administration and enforcement of this Act in excess of the

10-23    cumulative amount deposited in the Texas Racing [Commission] fund

10-24    shall be reimbursed from the Texas Racing [Commission] fund not

10-25    later than one year after the date on which the general revenue

10-26    funds are appropriated, with 12 percent interest per year until

10-27    August 31, 1993, and 6-3/4 percent interest thereafter with all

 11-1    payments first attributable to interest.

 11-2          SECTION 2.08.   Section 5.02(a), Texas Racing Act (Article

 11-3    179e, Vernon's Texas Civil Statutes), is amended to read as

 11-4    follows:

 11-5          (a)  Judicial review of an order under this Act of the

 11-6    commission is under the substantial evidence rule.

 11-7          SECTION 2.09.  Sections 6.06(e) and (f), Texas Racing Act

 11-8    (Article 179e, Vernon's Texas Civil Statutes), are amended to read

 11-9    as follows:

11-10          (e)  The [appropriate section of the] commission may

11-11    condition the issuance of a license under this article on the

11-12    observance of its rules.  The commission may amend the rules at any

11-13    time and may condition the continued holding of the license on

11-14    compliance with the rules as amended.

11-15          (f)  The [appropriate section of the] commission may refuse

11-16    to issue a license or may suspend or revoke a license of a licensee

11-17    under this article  who knowingly or intentionally allows access to

11-18    an enclosure where greyhound races or horse races are conducted to

11-19    a person who has engaged in bookmaking, touting, or illegal

11-20    wagering, whose income is from illegal activities or enterprises,

11-21    or who has been convicted of a violation of this Act.

11-22          SECTION 2.10.  Section 18.01(b), Texas Racing Act (Article

11-23    179e, Vernon's Texas Civil Statutes), is amended to read as

11-24    follows:

11-25          (b)  If, at the time that the commission would be abolished

11-26    under Chapter 325, Government Code [Subsection (a) of this

11-27    section], an  association created under this Act has outstanding

 12-1    long-term liabilities:

 12-2                (1)  the association may continue to operate for a

 12-3    period not to exceed one year after those liabilities are

 12-4    satisfied; and

 12-5                (2)  the commission and this Act are continued in

 12-6    effect for the purpose of regulating that association under this

 12-7    Act.

 12-8          SECTION 2.11.  Article 18, Texas Racing Act (Article 179e,

 12-9    Vernon's Texas Civil Statutes), is amended by adding Section 18.08

12-10    to read as follows:

12-11          Sec. 18.08.  REFERENCES TO PRECEDING COMMISSION.  Any

12-12    reference in law to the Texas Racing Commission means the Texas

12-13    Gaming Commission.

12-14          SECTION 2.12.  Sections 2.01-2.04, 2.08-2.11, 3.01, and

12-15    18.01(a), Texas Racing Act (Article 179e, Vernon's Texas Civil

12-16    Statutes), are repealed.

12-17          SECTION 2.13.  (a)  On the date that the first meeting of the

12-18    Texas Gaming Commission created by this Act is held, the Texas

12-19    Racing Commission is abolished.  On that date, the powers, duties,

12-20    obligations, rights, contracts, records, employees, property,

12-21    funds, and unspent appropriations of the Texas Racing Commission

12-22    are transferred to the Texas Gaming Commission.

12-23          (b)  All rules, policies, procedures, and decisions of the

12-24    Texas Racing Commission are continued in effect as rules, policies,

12-25    procedures, and decisions of the Texas Gaming Commission until

12-26    superseded by a rule or other appropriate action of the Texas

12-27    Gaming Commission.

 13-1          (c)  The validity of a rule, form, or procedure adopted,

 13-2    contract or acquisition made, proceeding begun, obligation

 13-3    incurred, right accrued, or other action taken by or in connection

 13-4    with the authority of the Texas Racing Commission before it is

 13-5    abolished under Subsection (a) of this section is not affected by

 13-6    the abolishment.

 13-7          (d)  Any action or proceeding before the Texas Racing

 13-8    Commission or to which the commission is a party is transferred

 13-9    without change in status to the Texas Gaming Commission.

13-10          (e)  Notwithstanding the changes in law made by this Act,

13-11    until the date that the Texas Racing Commission is abolished as

13-12    provided by this section, the members of the Texas Racing

13-13    Commission on the effective date of this Act may continue in office

13-14    and exercise the powers and duties of the commission under the law

13-15    that governed the commission before the effective date of this Act,

13-16    and the prior law is continued in effect for that purpose.

13-17              ARTICLE 3.  TRANSFER OF OTHER POWERS AND DUTIES

13-18          SECTION 3.01.  The purpose of this article is to conform the

13-19    codified law governing the powers and duties of the Texas Racing

13-20    Commission and the Texas Lottery Commission to the changes in law

13-21    made by Articles 1 and 2 of this Act.

13-22          SECTION 3.02.  Section 411.096, Government Code, is amended

13-23    to read as follows:

13-24          Sec. 411.096.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

13-25    TEXAS GAMING [RACING] COMMISSION.  (a)  The Texas Gaming [Racing]

13-26    Commission is entitled to obtain from the department criminal

13-27    history  record information maintained by the department that

 14-1    pertains to a person who is:

 14-2                (1)  appointed to the commission;

 14-3                (2)  an applicant for employment by the commission; or

 14-4                (3)  an applicant for a license under the Texas Racing

 14-5    Act (Article 179e, Vernon's Texas Civil Statutes).

 14-6          (b)  Criminal history record information obtained by the

 14-7    commission under Subsection (a) may not be released or disclosed to

 14-8    any person except in a criminal proceeding, in a hearing conducted

 14-9    by the commission, on court order, or with the consent of the

14-10    applicant.

14-11          SECTION 3.03.  Section 411.108, Government Code, is amended

14-12    to read as follows:

14-13          Sec. 411.108.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

14-14    TEXAS GAMING [LOTTERY] COMMISSION.  (a)  The Texas Gaming [Lottery]

14-15    Commission is entitled to obtain from the department criminal

14-16    history  record information maintained by the department that

14-17    relates to a person who, under Chapter 466, is:

14-18                (1)  a sales agent or an applicant for a sales agent

14-19    license;

14-20                (2)  a person required to be named in a license

14-21    application;

14-22                (3)  a lottery operator or prospective lottery

14-23    operator;

14-24                (4)  an employee of a lottery operator or prospective

14-25    lottery operator, if the employee is or will be directly involved

14-26    in lottery operations;

14-27                (5)  a person who manufactures or distributes lottery

 15-1    equipment or supplies or a representative of a person who

 15-2    manufactures or distributes lottery equipment or supplies offered

 15-3    to the lottery;

 15-4                (6)  a person who has submitted a written bid or

 15-5    proposal to the commission in connection with the procurement of

 15-6    goods or services by the commission, if the amount of the bid or

 15-7    proposal exceeds $500;

 15-8                (7)  an employee or other person who works for or will

 15-9    work for a sales agent or an applicant for a sales agent license;

15-10                (8)  a person who proposes to enter into or who has a

15-11    contract with the commission to supply goods or services to the

15-12    commission;

15-13                (9)  if a person described in Subdivisions (1) through

15-14    (8) of this section is not an individual, an individual who:

15-15                      (A)  is an officer or director of the person;

15-16                      (B)  holds more than 10 percent of the stock in

15-17    the person;

15-18                      (C)  holds an equitable interest greater than 10

15-19    percent in the person;

15-20                      (D)  is a creditor of the person who holds more

15-21    than 10 percent of the person's outstanding debt;

15-22                      (E)  is the owner or lessee of a business that

15-23    the person conducts or through which the person will conduct

15-24    lottery-related activities;

15-25                      (F)  shares or will share in the profits, other

15-26    than stock dividends, of the person;

15-27                      (G)  participates in managing the affairs of the

 16-1    person; or

 16-2                      (H)  is an employee of the person who is or will

 16-3    be involved in:

 16-4                            (i)  selling tickets; or

 16-5                            (ii)  handling money from the sale of

 16-6    tickets;

 16-7                (10)  the executive director or a prospective executive

 16-8    director of the commission;

 16-9                (11)  an employee or prospective employee of the

16-10    commission; or

16-11                (12)  a sales agent whose license is renewed under

16-12    Section 466.158.

16-13          (b)  Criminal history record information obtained by the

16-14    commission under Subsection (a) may not be released or disclosed to

16-15    any person except on court order or as provided by Subsection (c).

16-16          (c)  The commission is not prohibited from disclosing to the

16-17    person who is the subject of the criminal history record

16-18    information the dates and places of arrests, offenses, and

16-19    dispositions contained in the criminal history record information.

16-20          SECTION 3.04.  Sections 572.003(b) and (c), Government Code,

16-21    are amended to read as follows:

16-22          (b)  The term means:

16-23                (1)  the Banking Commissioner of The Banking Department

16-24    of Texas;

16-25                (2)  the fire fighters' pension commissioner;

16-26                (3)  the administrative director of the Office of Court

16-27    Administration of the Texas Judicial System;

 17-1                (4)  the chief executive of the Office of Public

 17-2    Utility Counsel;

 17-3                (5)  the executive director of the State Bar of Texas;

 17-4                (6)  the director of the lottery division of the Texas

 17-5    Gaming [Lottery] Commission;

 17-6                (7)  the deputy in charge of the department of security

 17-7    in the lottery division of the Texas Gaming [Lottery] Commission;

 17-8                (8)  the director of the bingo division of the Texas

 17-9    Gaming [Lottery] Commission; or

17-10                (9)  the secretary of state.

17-11          (c)  The term means a member of:

17-12                (1)  the Public Utility Commission of Texas;

17-13                (2)  the Texas Department of Commerce;

17-14                (3)  the Texas Natural Resource Conservation

17-15    Commission;

17-16                (4)  the Texas Alcoholic Beverage Commission;

17-17                (5)  The Finance Commission of Texas;

17-18                (6)  the General Services Commission;

17-19                (7)  the Texas Board of Criminal Justice;

17-20                (8)  the board of trustees of the Employees Retirement

17-21    System of Texas;

17-22                (9)  the Texas Transportation Commission;

17-23                (10)  the Texas Workers' Compensation Commission;

17-24                (11)  the State Board of Insurance;

17-25                (12)  the Parks and Wildlife Commission;

17-26                (13)  the Public Safety Commission;

17-27                (14)  the Texas Ethics Commission;

 18-1                (15)  the State Securities Board;

 18-2                (16)  the Texas Water Development Board;

 18-3                (17)  the governing board of a public senior college or

 18-4    university as defined by Section 61.003, Education Code, or of The

 18-5    University of Texas Southwestern Medical Center at Dallas, The

 18-6    University of Texas Medical Branch at Galveston, The University of

 18-7    Texas Health Science Center at Houston, The University of Texas

 18-8    Health Science Center at San Antonio, The University of Texas

 18-9    System Cancer Center, The University of Texas Health Science Center

18-10    at Tyler, University of North Texas Health Science Center at Fort

18-11    Worth, Texas Tech University Health Sciences Center, Texas State

18-12    Technical College--Amarillo, Texas State Technical

18-13    College--Harlingen, Texas State Technical College--Sweetwater, or

18-14    Texas State Technical College--Waco;

18-15                (18)  the Texas Higher Education Coordinating Board;

18-16                (19)  the Texas Employment Commission;

18-17                (20)  the State Banking Board;

18-18                (21)  the board of trustees of the Teacher Retirement

18-19    System of Texas;

18-20                (22)  the Credit Union Commission;

18-21                (23)  the School Land Board;

18-22                (24)  the board of the Texas Department of Housing and

18-23    Community Affairs;

18-24                (25)  the Texas Gaming [Racing] Commission;

18-25                (26)  the State Board of Dental Examiners;

18-26                (27)  the Texas Board of Licensure for Nursing Home

18-27    Administrators;

 19-1                (28)  the Texas State Board of Medical Examiners;

 19-2                (29)  the Board of Pardons and Paroles;

 19-3                (30)  the State Board of Pharmacy;

 19-4                (31)  the Department of Information Resources governing

 19-5    board;

 19-6                (32)  the Motor Vehicle Board;

 19-7                (33)  the Texas Real Estate Commission;

 19-8                (34)  the board of directors of the State Bar of Texas;

 19-9                (35)  the bond review board;

19-10                (36)  the Texas Board of Health;

19-11                (37)  the Texas Board of Mental Health and Mental

19-12    Retardation;

19-13                (38)  the Texas Board on Aging;

19-14                (39)  the Texas Board of Human Services;

19-15                (40)  the Texas Funeral Service Commission; or

19-16                (41)  the board of directors of a river authority

19-17    created under the Texas Constitution or a statute of this state[;

19-18    or]

19-19                [(42)  the Texas Lottery Commission].

19-20          SECTION 3.05.  Article 2.12, Code of Criminal Procedure, as

19-21    amended by Section 2, Chapter 621 and Section 1, Chapter 729, Acts

19-22    of the 74th Legislature, 1995, is amended to read as follows:

19-23          Art. 2.12.  WHO ARE PEACE OFFICERS.  The following are peace

19-24    officers:

19-25                (1)  sheriffs and their deputies;

19-26                (2)  constables and deputy constables;

19-27                (3)  marshals or police officers of an incorporated

 20-1    city, town, or village;

 20-2                (4)  rangers and officers commissioned by the Public

 20-3    Safety Commission and the Director of the Department of Public

 20-4    Safety;

 20-5                (5)  investigators of the district attorneys', criminal

 20-6    district attorneys', and county attorneys' offices;

 20-7                (6)  law enforcement agents of the Texas Alcoholic

 20-8    Beverage Commission;

 20-9                (7)  each member of an arson investigating unit

20-10    commissioned by a city, a county, or the state;

20-11                (8)  officers commissioned under Section 37.081,

20-12    Education Code, or Subchapter E, Chapter 51, Education Code;

20-13                (9)  officers commissioned by the General Services

20-14    Commission;

20-15                (10)  law enforcement officers commissioned by the

20-16    Parks and Wildlife Commission;

20-17                (11)  airport police officers commissioned by a city

20-18    with a population of more than one million, according to the most

20-19    recent federal census, that operates an airport that serves

20-20    commercial air carriers;

20-21                (12)  airport security personnel commissioned as peace

20-22    officers by the governing body of any political subdivision of this

20-23    state, other than a city described by Subdivision (11), that

20-24    operates an airport that serves commercial air carriers;

20-25                (13)  municipal park and recreational patrolmen and

20-26    security officers;

20-27                (14)  security officers commissioned as peace officers

 21-1    by the State Treasurer;

 21-2                (15)  officers commissioned by a water control and

 21-3    improvement district under Section 51.132, Water Code;

 21-4                (16)  officers commissioned by a board of trustees

 21-5    under Chapter 341, Acts of the 57th Legislature, Regular Session,

 21-6    1961 (Article 1187f, Vernon's Texas Civil Statutes);

 21-7                (17)  investigators commissioned by the Texas State

 21-8    Board of Medical Examiners;

 21-9                (18)  officers commissioned by the board of managers of

21-10    the Dallas County Hospital District, the Tarrant County Hospital

21-11    District, or the Bexar County Hospital District under Section

21-12    281.057, Health and Safety Code;

21-13                (19)  county park rangers commissioned under Subchapter

21-14    E, Chapter 351, Local Government Code;

21-15                (20)  investigators employed by the Texas Gaming

21-16    [Racing] Commission;

21-17                (21)  officers commissioned by the State Board of

21-18    Pharmacy;

21-19                (22)  officers commissioned by the governing body of a

21-20    metropolitan rapid transit authority under Section 451.108,

21-21    Transportation Code [13, Chapter 141, Acts of the 63rd Legislature,

21-22    Regular Session, 1973 (Article 1118x, Vernon's Texas Civil

21-23    Statutes)], or by a regional transportation authority under Section

21-24    452.110, Transportation Code [10, Chapter 683, Acts of the 66th

21-25    Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas

21-26    Civil Statutes)];

21-27                (23)  [officers commissioned under the Texas High-Speed

 22-1    Rail Act (Article 6674v.2, Revised Statutes;]

 22-2                [(24)]  investigators commissioned by the attorney

 22-3    general under Section 402.009, Government Code;

 22-4                (24) [(25)]  security officers and investigators

 22-5    commissioned as peace officers under Chapter 466, Government Code;

 22-6                (25) [(26)]  an officer employed by the Texas

 22-7    Department of Health under Section 431.2471, Health and Safety

 22-8    Code;

 22-9                (26) [(27)]  officers appointed by an appellate court

22-10    under Subchapter F, Chapter 53, Government Code;

22-11                (27) [(28)]  officers commissioned by the state fire

22-12    marshal under Chapter 417, Government Code; [and]

22-13                (28) [(29)]  an investigator commissioned by the

22-14    commissioner of insurance under Article 1.10D, Insurance Code;

22-15    and[.]

22-16                (29)  apprehension specialists commissioned by the

22-17    Texas Youth Commission as officers under Section 61.0931, Human

22-18    Resources Code.

22-19          SECTION 3.06.  Section 87.002, Civil Practice and Remedies

22-20    Code, is amended to read as follows:

22-21          Sec. 87.002.  APPLICABILITY OF CHAPTER.  This chapter does

22-22    not apply to an activity regulated by the Texas Gaming [Racing]

22-23    Commission.

22-24          SECTION 3.07.  Section 104.001, Civil Practice and Remedies

22-25    Code, is amended to read as follows:

22-26          Sec. 104.001.  STATE LIABILITY; PERSONS COVERED.  In a cause

22-27    of action based on conduct described in Section 104.002, the state

 23-1    shall indemnify the following persons, without regard to whether

 23-2    the persons performed their services for compensation, for actual

 23-3    damages, court costs, and attorney's fees adjudged against:

 23-4                (1)  an employee, a member of the governing board, or

 23-5    any other officer of a state agency, institution, or department;

 23-6                (2)  a former employee, former member of the governing

 23-7    board, or any other former officer of a state agency, institution,

 23-8    or department who was an employee or officer when the act or

 23-9    omission on which the damages are based occurred;

23-10                (3)  a physician or psychiatrist licensed in this state

23-11    who was performing services under a contract with any state agency,

23-12    institution, or department or a racing official performing services

23-13    under a contract with the Texas Gaming [Racing] Commission when the

23-14    act or omission on which the damages are based occurred;

23-15                (4)  a person serving on the governing board of a

23-16    foundation, corporation, or association at the request and on

23-17    behalf of an institution of higher education, as that term is

23-18    defined by Section 61.003(8), Education Code, not including a

23-19    public junior college;

23-20                (5)  a state contractor who signed a waste manifest as

23-21    required by a state contract; or

23-22                (6)  the estate of a person listed in this section.

23-23          SECTION 3.08.  Sections 88.526(a) and (c), Education Code,

23-24    are amended to read as follows:

23-25          (a)  The director shall prepare an annual report on equine

23-26    research funded under this subchapter.  The director shall

23-27    distribute the report to the Texas Gaming [Racing] Commission and

 24-1    the members of the advisory committee.   The director shall make

 24-2    copies of the report available to interested parties.

 24-3          (c)  The director shall, at least annually, consult with the

 24-4    Texas Gaming [Racing] Commission on the use of the account and the

 24-5    impact of equine research funded by the account.

 24-6                   ARTICLE 4.  EFFECTIVE DATE; EMERGENCY

 24-7          SECTION 4.01.  This Act takes effect September 1, 1997.

 24-8          SECTION 4.02.  The importance of this legislation and the

 24-9    crowded condition of the calendars in both houses create an

24-10    emergency and an imperative public necessity that the

24-11    constitutional rule requiring bills to be read on three several

24-12    days in each house be suspended, and this rule is hereby suspended.