By Armbrister                                    S.B. No. 356

      75R1804 MWV-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Texas Racing

 1-3     Commission and to the transfer of certain commission functions to

 1-4     the Texas Department of Commerce; providing penalties.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 1.02, Texas Racing Act (Article 179e,

 1-7     Vernon's Texas Civil Statutes), is amended to read as follows:

 1-8           Sec. 1.02.  Purposes.  The purpose [purposes] of this Act is

 1-9     [are] to [encourage agriculture, the horse-breeding industry, the

1-10     horse-training industry, the greyhound-breeding industry, tourism,

1-11     and employment opportunities in this state related to horse racing

1-12     and greyhound racing and to] provide for the strict regulation of

1-13     horse racing and greyhound racing and the control of pari-mutuel

1-14     wagering in connection with that racing.

1-15           SECTION 2.  Section 1.03, Texas Racing Act (Article 179e,

1-16     Vernon's Texas Civil Statutes), is amended by adding Subdivisions

1-17     (67)-(76) to read as follows:

1-18                 (67)  "Racetrack facility" means a facility operated by

1-19     an association within its enclosure for the purpose of presenting

1-20     races for pari-mutuel wagering.

1-21                 (68)  "Child" means a person younger than 16 years of

1-22     age.

1-23                 (69)  "Minor" means a person younger than 21 years of

1-24     age.

 2-1                 (70)  "Contraband" means:

 2-2                       (A)  any item or thing the possession of which is

 2-3     unlawful under this Act, a commission rule, or other law;

 2-4                       (B)  any item or thing that might reasonably have

 2-5     the effect of unnaturally depressing, stimulating, or exciting an

 2-6     animal during a race in a manner contrary to this Act or commission

 2-7     rule, including a prohibited device or substance; or

 2-8                       (C)  a document, including a credential or forged

 2-9     ticket, possessed by an individual or used by an individual in

2-10     violation of this Act or a commission rule.

2-11                 (71)  "Prohibited device" means:

2-12                       (A)  a spur or an electrical or other device

2-13     prohibited by a commission rule regulating the unlawful influence

2-14     of a race; or

2-15                       (B)  a device specifically designed, made, or

2-16     adapted to influence or affect the outcome of a race in a manner

2-17     contrary to this Act or a commission rule.

2-18                 (72)  "Prohibited substance" means a drug, chemical,

2-19     medication, stimulant, depressant, or other substance, including a

2-20     syringe or other device used to administer a prohibited substance,

2-21     that, in its use or intended use, is capable of influencing or

2-22     affecting the outcome of a race in a manner contrary to this Act or

2-23     a commission rule.

2-24                 (73)  "Unlawful touting" means an offense described by

2-25     Section 14.01 of this Act or a similar offense under the laws of

2-26     another state.

2-27                 (74)  "Race" includes a live audio and visual signal of

 3-1     a race.

 3-2                 (75)  "Outstanding ticket" means a pari-mutuel ticket

 3-3     not presented for payment before the end of the greyhound racing or

 3-4     horse racing day for which the ticket was purchased.

 3-5                 (76)  "Pari-mutuel voucher" means a bearer instrument

 3-6     issued by a pari-mutuel wagering machine that represents money

 3-7     owned by a wagering patron and held by an association, including

 3-8     winnings from a pari-mutuel wager.

 3-9           SECTION 3.  Sections 2.02(a) and (b), Texas Racing Act

3-10     (Article 179e, Vernon's Texas Civil Statutes), are amended to read

3-11     as follows:

3-12           (a)  The commission consists of six members appointed by the

3-13     governor with the advice and consent of the senate and two ex

3-14     officio members who shall have the right to vote.  The ex officio

3-15     members are the chairman of the Public Safety Commission and the

3-16     comptroller of public accounts.  [In making appointments to the

3-17     commission, the governor shall strive to achieve representation by

3-18     all the population groups of the state with regard to economic

3-19     status, sex, race, and ethnicity.]

3-20           (b)  Appointments to the commission shall be made without

3-21     regard to the race, color, disability, sex, religion, age, or

3-22     national origin of the appointees.  [One appointed member must be a

3-23     veterinarian licensed to practice in this state who specializes in

3-24     the treatment of small animals.  One appointed member must be a

3-25     veterinarian licensed to practice in this state who specializes in

3-26     the treatment of large animals.  Two appointed members must be

3-27     individuals who are not veterinarians and who have special

 4-1     knowledge or experience related to greyhound racing.  Two appointed

 4-2     members must be individuals who are not veterinarians and who have

 4-3     special knowledge or experience related to horse racing.]

 4-4           SECTION 4.  Section 2.03, Texas Racing Act (Article 179e,

 4-5     Vernon's Texas Civil Statutes), is amended to read as follows:

 4-6           Sec. 2.03.  Term of office.  (a)  Appointed [Except for the

 4-7     initial appointments, appointed] members hold office for staggered

 4-8     terms of six years with two members' terms expiring February 1 of

 4-9     each odd-numbered year.  A member holds office until that member's

4-10     successor is appointed and qualifies.

4-11           (b)  [In making the initial appointments, the governor shall

4-12     designate two appointed members for a term expiring February 1,

4-13     1989, two for a term expiring February 1, 1991, and two for a term

4-14     expiring February 1, 1993.  The governor shall make the initial

4-15     appointments on or before February 1, 1987.]

4-16           [(c)]  The ex officio members hold office on the commission

4-17     for the time for which they hold their other offices.

4-18           SECTION 5.  Section 2.05, Texas Racing Act (Article 179e,

4-19     Vernon's Texas Civil Statutes), is amended to read as follows:

4-20           Sec. 2.05.  Eligibility.  (a)  Four of the appointed members

4-21     of the commission must be representatives of the general public and

4-22     have general knowledge of business or agribusiness.  One additional

4-23     appointed member must have special knowledge or experience related

4-24     to greyhound racing and one additional appointed member must have

4-25     special knowledge or experience related to horse racing.  A person

4-26     is not eligible for appointment as a member of the commission if

4-27     the person or the person's spouse:

 5-1                 (1)  is licensed by the commission, except as a

 5-2     commissioner;

 5-3                 (2)  is employed by the commission or participates in

 5-4     the management of a business entity or other organization regulated

 5-5     by the commission or receiving funds from or through the

 5-6     commission;

 5-7                 (3)  owns or controls, directly or indirectly, more

 5-8     than a 10 percent interest in a business entity or other

 5-9     organization regulated by the commission or receiving funds from or

5-10     through the commission; or

5-11                 (4)  uses or receives a substantial amount of tangible

5-12     goods, services, or funds from or through the commission, other

5-13     than compensation or reimbursement authorized by law for commission

5-14     membership, attendance, or expenses.

5-15           (b)  In addition to the eligibility requirements of

5-16     Subsection (a), a [A] person is not eligible to be an appointed

5-17     member of the commission if that person owns any financial interest

5-18     in a racetrack or its operation or if that person is related within

5-19     the second degree by affinity or the third degree by consanguinity,

5-20     as determined under Subchapter B, Chapter 573, Government Code

5-21     [Article 5996h, Revised Statutes], to a person who owns any

5-22     financial interest in a racetrack or its operation.

5-23           (c)  Each person appointed to or employed by the commission

5-24     is subject to all background checks and qualification criteria

5-25     required to hold a racetrack license or other license under this

5-26     Act.

5-27           (d)  A person who has been convicted of a felony or of any

 6-1     crime involving moral turpitude is not eligible for appointment to

 6-2     the commission.

 6-3           SECTION 6.  Article 2, Texas Racing Act (Article 179e,

 6-4     Vernon's Texas Civil Statutes), is amended by adding Sections

 6-5     2.071-2.074 to read as follows:

 6-6           Sec. 2.071.  CONFLICT OF INTEREST.  (a)  An officer,

 6-7     employee, or paid consultant of a Texas trade association in the

 6-8     field of horse or greyhound racing or breeding may not be a member

 6-9     of the commission or an employee of the commission who is exempt

6-10     from the state's position classification plan or is compensated at

6-11     or above the amount prescribed by the General Appropriations Act

6-12     for step 1, salary group 17, of the position classification salary

6-13     schedule.

6-14           (b)  A person who is the spouse of an officer, manager, or

6-15     paid consultant of a Texas trade association in the field of horse

6-16     or greyhound racing or breeding may not be a member of the

6-17     commission and may not be an employee of the commission who is

6-18     exempt from the state's position classification plan or is

6-19     compensated at or above the amount prescribed by the General

6-20     Appropriations Act for step 1, salary group 17, of the position

6-21     classification salary schedule.

6-22           (c)  For the purposes of this section, a Texas trade

6-23     association is a nonprofit, cooperative, and voluntarily joined

6-24     association of business or professional competitors in this state

6-25     designed to assist its members and its industry or profession in

6-26     dealing with mutual business or professional problems and in

6-27     promoting their common interest.

 7-1           Sec. 2.072.  LOBBYIST RESTRICTION.  A person may not serve as

 7-2     a member of the commission or act as the general counsel to the

 7-3     commission if the person is required to register as a lobbyist

 7-4     under Chapter 305, Government Code, because of the person's

 7-5     activities for compensation on behalf of a profession related to

 7-6     the operation of the commission.

 7-7           Sec. 2.073.  GROUNDS FOR REMOVAL.  (a)  It is a ground for

 7-8     removal from the commission if a member:

 7-9                 (1)  does not have at the time of appointment the

7-10     qualifications required by Section 2.02, 2.04, or 2.05 of this Act;

7-11                 (2)  does not maintain during service on the commission

7-12     the qualifications required by Section 2.02 or 2.05 of this Act;

7-13                 (3)  violates a prohibition established by Section

7-14     2.05, 2.071, or 2.072 of this Act;

7-15                 (4)  cannot because of illness or disability discharge

7-16     the member's duties for a substantial part of the term for which

7-17     the member is appointed; or

7-18                 (5)  is absent from more than half of the regularly

7-19     scheduled commission meetings that the member is eligible to attend

7-20     during a calendar year unless the absence is excused by majority

7-21     vote of the commission.

7-22           (b)  The validity of an action of the commission is not

7-23     affected by the fact that it is taken when a ground for removal of

7-24     a commission member exists.

7-25           (c)  If the executive secretary has knowledge that a

7-26     potential ground for removal exists, the executive secretary shall

7-27     notify the presiding officer of the commission of the potential

 8-1     ground.  The presiding officer shall then notify the governor and

 8-2     the attorney general that a potential ground for removal exists.

 8-3     If the potential ground for removal involves the presiding officer,

 8-4     the executive secretary shall notify the next highest officer of

 8-5     the commission, who shall notify the governor and the attorney

 8-6     general that a potential ground for removal exists.

 8-7           Sec. 2.074.  MEMBER TRAINING.  (a)  Before a member of the

 8-8     commission may assume the member's duties and before the member may

 8-9     be confirmed by the senate, the member must complete at least one

8-10     course of the training program established by the commission under

8-11     this section.

8-12           (b)  A training program established under this section shall

8-13     provide information to the member regarding:

8-14                 (1)  the enabling legislation that created the

8-15     commission;

8-16                 (2)  the programs operated by the agency;

8-17                 (3)  the role and functions of the agency;

8-18                 (4)  the rules of the agency with an emphasis on the

8-19     rules that relate to disciplinary and investigatory authority;

8-20                 (5)  the current budget for the agency;

8-21                 (6)  the results of the most recent formal audit of the

8-22     agency;

8-23                 (7)  the requirements of the:

8-24                       (A)  open meetings law, Chapter 551, Government

8-25     Code;

8-26                       (B)  open records law, Chapter 552, Government

8-27     Code; and

 9-1                       (C)  administrative procedure law, Chapter 2001,

 9-2     Government Code;

 9-3                 (8)  the requirements of the conflict of interest laws

 9-4     and other laws relating to public officials; and

 9-5                 (9)  any applicable ethics policies adopted by the

 9-6     agency or the Texas Ethics Commission.

 9-7           SECTION 7.  Section 2.10, Texas Racing Act (Article 179e,

 9-8     Vernon's Texas Civil Statutes), is amended to read as follows:

 9-9           Sec. 2.10.  PRESIDING OFFICER [CHAIRMAN].  The governor shall

9-10     designate a public [one] member of the commission as the presiding

9-11     officer [chairman] of the commission to serve in that capacity at

9-12     the pleasure of the governor.

9-13           SECTION 8.  Section 2.11, Texas Racing Act (Article 179e,

9-14     Vernon's Texas Civil Statutes), is amended by amending Subsection

9-15     (b) and adding Subsection (d) to read as follows:

9-16           (b)  A majority of the commission constitutes a quorum.  [A

9-17     majority of a section of the commission constitutes a quorum for

9-18     purposes of conducting business related to matters under the

9-19     exclusive jurisdiction of that section.]

9-20           (d)  The commission shall, by rule, develop and implement

9-21     policies that provide the public with a reasonable opportunity to

9-22     appear before the commission and to speak on any issue under the

9-23     jurisdiction of the commission.

9-24           SECTION 9.  Article 2, Texas Racing Act (Article 179e,

9-25     Vernon's Texas Civil Statutes), is amended by adding Sections

9-26     2.17-2.24 to read as follows:

9-27           Sec. 2.17.  ANNUAL ACCOUNTING.  The commission shall prepare

 10-1    annually a complete and detailed written report accounting for all

 10-2    funds received and disbursed by the commission during the preceding

 10-3    fiscal year.  The annual report must meet the reporting

 10-4    requirements applicable to financial reporting provided in the

 10-5    General Appropriations Act.

 10-6          Sec. 2.18.  FUNDS PAID TO COMMISSION.  All money paid to the

 10-7    commission under this Act is subject to Subchapter F, Chapter 404,

 10-8    Government Code.

 10-9          Sec. 2.19.  EMPLOYMENT PRACTICES.  (a)  The executive

10-10    secretary or the executive secretary's designee shall develop an

10-11    intra-agency career ladder program that addresses opportunities for

10-12    mobility and advancement for employees within the commission.  The

10-13    program shall require intra-agency posting of all positions

10-14    concurrently with any public posting.

10-15          (b)  The executive secretary or the executive secretary's

10-16    designee shall develop a system of annual performance evaluations

10-17    that are based on documented employee performance.  All merit pay

10-18    for commission employees must be based on the system established

10-19    under this subsection.

10-20          (c)  The executive secretary or the executive secretary's

10-21    designee shall prepare and maintain a written policy statement to

10-22    assure implementation of a program of equal employment opportunity

10-23    under which all personnel transactions are made without regard to

10-24    race, color, disability, sex, religion, age, or national origin.

10-25    The policy statement must include:

10-26                (1)  personnel policies, including policies relating to

10-27    recruitment, evaluation, selection, appointment, training, and

 11-1    promotion of personnel that are in compliance with the requirements

 11-2    of Chapter 21, Labor Code;

 11-3                (2)  a comprehensive analysis of the commission

 11-4    workforce that meets federal and state guidelines;

 11-5                (3)  procedures by which a determination can be made

 11-6    about the extent of underuse in the commission workforce of all

 11-7    persons for whom federal or state guidelines encourage a more

 11-8    equitable balance; and

 11-9                (4)  reasonable methods to appropriately address those

11-10    areas of underuse.

11-11          (d)  A policy statement prepared under Subsection (c) of this

11-12    section must cover an annual period, be updated annually and

11-13    reviewed by the Texas Commission on Human Rights for compliance

11-14    with Subsection (c)(1) of this section, and be filed with the

11-15    governor's office.

11-16          (e)  The governor's office shall deliver a biennial report to

11-17    the legislature based on the information received under Subsection

11-18    (d) of this section.  The report may be made separately or as a

11-19    part of other biennial reports made to the legislature.

11-20          Sec. 2.20.  STANDARDS OF CONDUCT.  The executive secretary or

11-21    the executive secretary's designee shall provide to members of the

11-22    commission and to agency employees, as often as necessary,

11-23    information regarding their qualification for office or employment

11-24    under this Act and their responsibilities under applicable laws

11-25    relating to standards of conduct for state officers or employees.

11-26          Sec. 2.21.  DIVISION OF RESPONSIBILITY.  The commission

11-27    shall, by rule, develop and implement policies that clearly

 12-1    separate the policymaking responsibilities of the commission and

 12-2    the management responsibilities of the executive secretary and the

 12-3    staff of the commission.

 12-4          Sec. 2.22.  PROGRAM AND FACILITY ACCESSIBILITY.  The

 12-5    commission shall comply with federal and state laws related to

 12-6    program and facility accessibility.  The executive secretary shall

 12-7    also prepare and maintain a written plan that describes how a

 12-8    person who does not speak English can be provided reasonable access

 12-9    to the commission's programs and services.

12-10          Sec. 2.23.  INFORMATION TO PUBLIC.  (a)  The commission shall

12-11    prepare information of public interest describing the functions of

12-12    the commission and the procedures by which complaints are filed

12-13    with and resolved by the commission.  The commission shall make the

12-14    information available to the public and appropriate state agencies.

12-15          (b)  The commission by rule shall establish methods by which

12-16    racetrack patrons are notified of the name, mailing address, and

12-17    telephone number of the commission for the purpose of directing

12-18    complaints to the commission.  The commission may provide for that

12-19    notification:

12-20                (1)  on every race performance program provided by each

12-21    racetrack association; or

12-22                (2)  on signs prominently displayed in the common

12-23    public areas on the premises of each racetrack association.

12-24          Sec. 2.24.  COMPLAINT HANDLING.  (a)  The commission shall

12-25    keep information about each complaint filed with the commission.

12-26    The information shall include:

12-27                (1)  the date the complaint is received;

 13-1                (2)  the name of the complainant;

 13-2                (3)  the subject matter of the complaint;

 13-3                (4)  a record of all persons contacted in relation to

 13-4    the complaint;

 13-5                (5)  a summary of the results of the review or

 13-6    investigation of the complaint; and

 13-7                (6)  for complaints for which the agency took no

 13-8    action, an explanation of the reason the complaint was closed

 13-9    without action.

13-10          (b)  The commission shall keep a file about each written

13-11    complaint filed with the commission that the agency has authority

13-12    to resolve.  The commission shall provide to the person filing the

13-13    complaint and the persons or entities complained about the

13-14    commission's policies and procedures pertaining to complaint

13-15    investigation and resolution.  The commission, at least quarterly

13-16    and until final disposition of the complaint, shall notify the

13-17    person filing the complaint and the persons or entities complained

13-18    about of the status of the complaint unless the notice would

13-19    jeopardize an undercover investigation.

13-20          SECTION 10.  Section 3.02, Texas Racing Act (Article 179e,

13-21    Vernon's Texas Civil Statutes), is amended to read as follows:

13-22          Sec. 3.02.  Regulation and supervision.  (a)  The [In

13-23    accordance with Section 3.01 of this Act, the] commission shall

13-24    regulate and supervise every race meeting in this state involving

13-25    wagering on the result of greyhound or horse racing.  All persons

13-26    and things relating to the operation of those meetings are subject

13-27    to regulation and supervision by the commission.  The commission

 14-1    shall adopt rules for conducting greyhound or horse racing in this

 14-2    state involving wagering and shall adopt other rules to administer

 14-3    this Act that are consistent with this Act.  The commission shall

 14-4    also make rules, issue licenses, and take any other necessary

 14-5    action relating exclusively to horse racing or to greyhound racing.

 14-6    A majority vote of the members of the commission is necessary for

 14-7    any commission decision.

 14-8          (b)  The commission may establish separate sections to review

 14-9    or propose rules of the commission.

14-10          (c)  The commission or a section of the commission shall hold

14-11    a meeting on any proposed rule before the commission publishes the

14-12    proposed rule in the Texas Register.

14-13          (d)  The commission shall post notice of a meeting under

14-14    Subsection (c) of this section at each racetrack facility.  The

14-15    notice shall include an agenda of the meeting and a summary of the

14-16    proposed rule.

14-17          (e)  A copy of a proposed rule published in the Texas

14-18    Register shall also be posted concurrently at each racetrack

14-19    facility.

14-20          (f)  The commission or a section of the commission may

14-21    appoint a committee of experts, members of the public, or other

14-22    interested parties to advise the commission or section of the

14-23    commission about a proposed rule of the commission.

14-24          (g)  The commission, in adopting rules and in the supervision

14-25    and conduct of racing, shall consider the effect of a proposed

14-26    commission action on the state's agricultural, horse breeding,

14-27    horse training, greyhound breeding, and greyhound training

 15-1    industry.

 15-2          SECTION 11.  Section 3.021, Texas Racing Act (Article 179e,

 15-3    Vernon's Texas Civil Statutes), is amended by amending Subsection

 15-4    (b) and adding Subsection (d) to read as follows:

 15-5          (b)  To protect the health, safety, and welfare of race

 15-6    animals and participants in racing, to safeguard the interest of

 15-7    the general public, and to promote the orderly [growth and] conduct

 15-8    of racing within the state, the commission may adopt rules for the

 15-9    licensing and regulation of races and workouts at racetracks that

15-10    do not offer pari-mutuel wagering and for workouts at training

15-11    facilities to secure past performances and workouts.

15-12          (d)  The commission may not adopt rules restricting

15-13    competitive bidding or advertising by a licensee except to prohibit

15-14    false, misleading, or deceptive practices.  In its rules to

15-15    prohibit false, misleading, or deceptive practices, the commission

15-16    may not include a rule that:

15-17                (1)  restricts the use of any medium for advertising;

15-18                (2)  restricts the use of a licensee's personal

15-19    appearance or voice in an advertisement;

15-20                (3)  relates to the size or duration of an

15-21    advertisement by the licensee; or

15-22                (4)  restricts the licensee's advertisement under a

15-23    trade name.

15-24          SECTION 12.  Section 3.03, Texas Racing Act (Article 179e,

15-25    Vernon's Texas Civil Statutes), is amended to read as follows:

15-26          Sec. 3.03.  Power of entry.  A member of the commission, an

15-27    authorized agent of the commission, a commissioned officer of the

 16-1    Department of Public Safety, or a peace officer of the local

 16-2    jurisdiction in which the association maintains a place of business

 16-3    may enter any part of the racetrack facility [the office,

 16-4    racetrack,] or any other place of business of an association at any

 16-5    time for the purpose of enforcing and administering this Act.

 16-6          SECTION 13.  Sections 3.07(a), (d), and (e), Texas Racing Act

 16-7    (Article 179e, Vernon's Texas Civil Statutes), are amended to read

 16-8    as follows:

 16-9          (a)  The commission shall employ all of the judges and all of

16-10    the stewards for the supervision of a horse race or greyhound race

16-11    meeting.  Each horse race or greyhound race meeting shall be

16-12    supervised by three stewards [approved by the commission] for horse

16-13    racing or by three judges [approved by the commission] for

16-14    greyhound racing. The commission shall designate one of the

16-15    stewards or judges as the presiding steward or judge for each race

16-16    meeting.  The association, following the completion of the race

16-17    meeting, may submit written comments to the commission regarding

16-18    the job performance of the stewards and judges for the commission's

16-19    review.  Comments received are not binding, in any way, on the

16-20    commission.  [The commission shall employ one of the stewards who

16-21    supervises a horse race meeting who shall be the presiding steward.

16-22    The other stewards at the race meeting shall be compensated by the

16-23    association.  The commission shall employ one of the judges who

16-24    supervises a greyhound race meeting who shall be the presiding

16-25    judge; the other judges at such a race meeting shall be compensated

16-26    by the association.]  For each race meeting, the commission shall

16-27    employ [appoint] at least one state veterinarian [who shall be

 17-1    compensated by the commission.  The commission by rule shall

 17-2    determine the amount of compensation for stewards, judges, and

 17-3    state veterinarians who are required to be compensated by the

 17-4    commission].  The commission may, by rule, impose a fee on an

 17-5    association to offset the costs of compensating the [racetrack]

 17-6    stewards, judges, and state veterinarians [for that association].

 17-7    The amount of the fee for the compensation of stewards, judges, and

 17-8    state veterinarians must be reasonable according to industry

 17-9    standards for the compensation of those officials at other

17-10    racetracks and may not exceed the actual cost to the commission for

17-11    compensating the officials.  All other racetrack officials shall be

17-12    appointed by the association, with the approval of the commission.

17-13    Compensation for those officials not compensated by the commission

17-14    shall be determined by the association.

17-15          (d)  Medication or drug testing performed on a race animal

17-16    under [Section 14.03 of] this Act shall be conducted either by the

17-17    Texas Veterinary Medical Diagnostic Laboratory or in conjunction

17-18    with or by a private or public agency that is approved by the

17-19    commission and by the Texas Veterinary Medical Diagnostic

17-20    Laboratory.  Medication or drug testing performed on a human under

17-21    [Section 14.03 of] this Act shall be conducted by a laboratory

17-22    approved by the commission. Charges for services performed under

17-23    this section shall be forwarded to the commission for approval as

17-24    to the reasonableness of the charges for the services.  Charges may

17-25    include but are not limited to expenses incurred for travel,

17-26    lodging, testing, and processing of test results.  The reasonable

17-27    charges associated with medication or drug testing conducted under

 18-1    this Act shall be paid by the association that receives the

 18-2    services. The commission shall adopt rules for the procedures for

 18-3    approving and paying laboratory charges under this section.  On the

 18-4    approval of the charges as reasonable, in relation to industry

 18-5    standards for testing charges, the commission shall forward a copy

 18-6    of the charges to the association that receives the services for

 18-7    immediate payment.

 18-8          (e)  To pay the charges associated with the medication or

 18-9    drug testing, an association may use the money held [retained] by

18-10    the association to pay outstanding tickets and pari-mutuel vouchers

18-11    [on tickets that are purchased as wagers on horses or greyhounds

18-12    and that are not cashed by the holders of the tickets].  If

18-13    additional amounts are needed to pay the charges, the association

18-14    shall pay those additional amounts.  If the amount retained exceeds

18-15    the amount needed to pay the charges, the association shall pay the

18-16    excess to the commission in accordance with Section 11.08 of this

18-17    Act.

18-18          SECTION 14.  Article 3, Texas Racing Act (Article 179e,

18-19    Vernon's Texas Civil Statutes), is amended by adding Sections

18-20    3.13-3.16 to read as follows:

18-21          Sec. 3.13.  RECOGNITION OF ORGANIZATION.  (a)  The commission

18-22    by rule shall adopt criteria to recognize an organization to

18-23    represent members of a segment of the racing industry, including

18-24    owners, breeders, trainers, kennel operators, or other persons

18-25    involved in the racing industry, in any interaction between the

18-26    members of the organization and a racetrack facility or the

18-27    commission.

 19-1          (b)  The commission may recognize an organization that meets

 19-2    the requirements of Subsection (a) of this section.

 19-3          Sec. 3.14.  DISCIPLINARY ACTIONS.  The commission shall

 19-4    revoke, suspend, or refuse to renew a license, place on probation a

 19-5    person whose license has been suspended, or reprimand a licensee

 19-6    for a violation of this Act or a rule of the commission.  If a

 19-7    license suspension is probated, the commission may require the

 19-8    licensee to report regularly to the commission on matters that are

 19-9    the basis of the probation.

19-10          Sec. 3.15.  HEARING REQUIREMENTS.  If the commission proposes

19-11    to suspend, revoke, or refuse to renew a person's license, the

19-12    person is entitled to a hearing conducted by the State Office of

19-13    Administrative Hearings.  Proceedings for a disciplinary action,

19-14    other than those conducted by racing stewards or judges, are

19-15    governed by the administrative procedure law, Chapter 2001,

19-16    Government Code.  Rules of practice adopted by the commission under

19-17    Section 2001.004, Government Code, applicable to the proceedings

19-18    for a disciplinary action, other than those conducted by racing

19-19    stewards or judges, may not conflict with rules adopted by the

19-20    State Office of Administrative Hearings.

19-21          Sec. 3.16.  RULES RELATING TO UNLAWFUL INFLUENCES ON RACING.

19-22    (a) The commission shall adopt rules prohibiting a person from

19-23    unlawfully influencing or affecting the outcome of a race,

19-24    including rules relating to the use of a prohibited device or

19-25    prohibited substance.

19-26          (b)  The commission may require prerace testing and shall

19-27    require postrace testing to determine whether a prohibited

 20-1    substance has been used. The testing may be by an invasive or

 20-2    noninvasive method. The commission's rules shall require

 20-3    state-of-the-art testing methods.

 20-4          (c)  Following the discovery of a prohibited device or a

 20-5    return of a test showing the presence of a prohibited substance, a

 20-6    steward or judge may summarily suspend a person who has used or

 20-7    administered the prohibited device or prohibited substance until a

 20-8    hearing before the stewards and judges. The steward or judge may

 20-9    also disqualify an animal as provided by a commission rule adopted

20-10    under this section.

20-11          (d)  A person may appeal a ruling of the stewards or judges

20-12    to the commission. The commission may stay a summary suspension

20-13    during the period the matter is before the commission.

20-14          (e)  The commission may require urine samples to be frozen

20-15    for a period necessary to allow any follow-up testing to detect and

20-16    identify  a prohibited substance. Any other specimen shall be

20-17    maintained for testing purposes in a manner required by commission

20-18    rule.

20-19          (f)  If a test sample or specimen shows the presence of a

20-20    prohibited substance, the entire sample, including any split

20-21    portion, shall be maintained until final disposition of the matter.

20-22          (g)  A licensee whose animal test shows the presence of a

20-23    prohibited substance is entitled to have a split portion of the

20-24    test sample or specimen tested at a testing facility authorized to

20-25    perform drug testing under this Act and selected by the licensee.

20-26    The commission shall adopt rules relating to split testing

20-27    procedures.

 21-1          (h)  The licensed trainer of an animal is:

 21-2                (1)  considered by law to be the absolute ensurer that

 21-3    no prohibited substance has been administered to the animal; and

 21-4                (2)  responsible for ensuring that no prohibited

 21-5    substance is administered to the animal.

 21-6          (i)  The commission shall adopt rules relating to the drug

 21-7    testing of licensees.

 21-8          (j)  A person who violates a rule adopted under this section

 21-9    may:

21-10                (1)  have any license issued to the person by the

21-11    commission revoked or suspended; or

21-12                (2)  be barred for life or any other period from

21-13    applying for or receiving a license issued by the commission or

21-14    entering any portion of a racetrack facility.

21-15          SECTION 15.  Section 5.01(a), Texas Racing Act (Article 179e,

21-16    Vernon's Texas Civil Statutes), is amended to read as follows:

21-17          (a)  The commission shall prescribe forms for applications

21-18    for licenses and shall provide each occupational licensee with a

21-19    license certificate or credentials.

21-20          SECTION 16.  Sections 5.03(a) and (b), Texas Racing Act

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

21-22    as follows:

21-23          (a)  An applicant for any license under this Act must, except

21-24    as allowed under Section 7.10 of this Act, submit to the commission

21-25    a complete set of fingerprints of the individual natural person

21-26    applying for the license or, if the applicant is not an individual

21-27    natural person, a complete set of fingerprints of each officer or

 22-1    director and of each person owning an interest of at least five

 22-2    percent in the applicant.  The Department of Public Safety may

 22-3    request any person owning any interest in an applicant for a

 22-4    racetrack license to submit a complete set of fingerprints.

 22-5          (b)  If a complete set of fingerprints is required by the

 22-6    commission, the [The] commission shall, not later than the next day

 22-7    after receiving the prints, forward the prints to the Department of

 22-8    Public Safety or the Federal Bureau of Investigation.  If the

 22-9    prints are forwarded to the Department of Public Safety, the [The]

22-10    department shall classify the prints and check them against its

22-11    fingerprint files and shall report to the commission its findings

22-12    concerning the criminal record of the applicant or the lack of such

22-13    a record.  A racetrack license may not be issued until the report

22-14    is made to the commission.  A temporary occupational license may be

22-15    issued before a report is made to the commission.

22-16          SECTION 17.  Article 5, Texas Racing Act (Article 179e,

22-17    Vernon's Texas Civil Statutes), is amended by adding Section 5.05

22-18    to read as follows:

22-19          Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK.  (a)  The

22-20    commission shall, in determining the amount of a license fee, set

22-21    the fee in an amount that will cover, at least, the cost of

22-22    conducting a criminal history check on the applicant for a license.

22-23          (b)  The commission shall reimburse the Department of Public

22-24    Safety for the cost of conducting a criminal history check under

22-25    this article.

22-26          SECTION 18.  Section 6.01, Texas Racing Act (Article 179e,

22-27    Vernon's Texas Civil Statutes), is amended to read as follows:

 23-1          Sec. 6.01.  License required.  A person shall not conduct

 23-2    wagering on a greyhound race [meeting] or a horse race meeting

 23-3    without first obtaining a racetrack license from the commission

 23-4    [with wagering on the results without a racetrack license]. A

 23-5    person who violates this section commits an offense.

 23-6          SECTION 19.  Sections 6.04(a) and (d), Texas Racing Act

 23-7    (Article 179e, Vernon's Texas Civil Statutes), are amended to read

 23-8    as follows:

 23-9          (a)  The commission may issue a racetrack license to a

23-10    qualified person if it finds that the conduct of race meetings at

23-11    the proposed track and location will be in the public interest,

23-12    complies with all zoning laws, and complies with this Act and the

23-13    rules adopted by the commission and if the commission finds by

23-14    clear and convincing evidence that the applicant will comply with

23-15    all criminal laws of this state.  In determining whether to grant

23-16    or deny an application for any class of racetrack license, the

23-17    commission may consider [the degree to which any of] the following

23-18    factors [regarding the applicant's racetrack or proposed race

23-19    meeting serve to nurture, promote, develop, or improve the horse or

23-20    greyhound industry in this state]:

23-21                (1)  the applicant's financial stability;

23-22                (2)  the applicant's resources for supplementing the

23-23    purses for races for various breeds;

23-24                (3)  the location of the proposed track;

23-25                (4)  the effect of the proposed track on traffic flow;

23-26                (5)  facilities for patrons and occupational licensees;

23-27                (6)  facilities for race animals;

 24-1                (7)  availability to the track of support services and

 24-2    emergency services;

 24-3                (8)  the experience of the applicant's employees;

 24-4                (9)  the potential for conflict with other licensed

 24-5    race meetings;

 24-6                (10)  the anticipated effect of the race meeting on the

 24-7    greyhound or horse breeding industry in this state; and

 24-8                (11)  the anticipated effect of the race meeting on the

 24-9    state and local economy from tourism, increased employment, and

24-10    other sources.

24-11          (d)  In considering an application for a class 4 racetrack

24-12    license, the commission may waive or defer compliance with the

24-13    commission's standards regarding the physical facilities or

24-14    operations of a horse racetrack.  The commission may not waive or

24-15    defer compliance with standards that relate to the testing of

24-16    horses or licensees for the presence of a prohibited drug,

24-17    chemical, or other substance [as provided by Section 14.03 of this

24-18    Act]. If the commission defers compliance, the commission shall,

24-19    when granting the application, establish a schedule under which the

24-20    licensee must comply with the standards.

24-21          SECTION 20.  Sections 6.06(a), (b), (e), and (f), Texas

24-22    Racing Act (Article 179e, Vernon's Texas Civil Statutes), are

24-23    amended to read as follows:

24-24          (a)  To preserve and protect the public health, welfare, and

24-25    safety, the commission shall adopt rules relating to license

24-26    applications, [renewal applications,] the financial responsibility,

24-27    moral character, and ability of applicants, and all matters

 25-1    relating to the planning, construction, and operation of

 25-2    racetracks.  The commission may refuse to issue a [an original or

 25-3    renewal] racetrack license or may revoke or suspend a license if,

 25-4    after notice and hearing, it has reasonable grounds to believe and

 25-5    finds that:

 25-6                (1)  the applicant has been convicted in a court of

 25-7    competent jurisdiction of a violation of this Act or any rule

 25-8    adopted by the commission or that the applicant has aided, abetted,

 25-9    or conspired with any person to commit such a violation;

25-10                (2)  the applicant has been convicted of a felony or of

25-11    any crime involving moral turpitude, including convictions for

25-12    which the punishment received was a suspended sentence, probation,

25-13    or a nonadjudicated conviction, that is reasonably related to the

25-14    applicant's present fitness to hold a license under this Act;

25-15                (3)  the applicant has violated or has caused to be

25-16    violated this Act or a rule of the commission in a manner that

25-17    involves moral turpitude, as distinguished from a technical

25-18    violation of this Act or of a rule;

25-19                (4)  the applicant is unqualified, by experience or

25-20    otherwise, to perform the duties required of a licensee under this

25-21    Act;

25-22                (5)  the applicant failed to answer or falsely or

25-23    incorrectly answered a question in an [original or renewal]

25-24    application;

25-25                (6)  the applicant fails to disclose the true ownership

25-26    or interest in a greyhound or horse as required by the rules of the

25-27    commission;

 26-1                (7)  the applicant is indebted to the state for any

 26-2    fees or for the payment of a penalty imposed by this Act or by a

 26-3    rule of the commission;

 26-4                (8)  the applicant is not of good moral character or

 26-5    the applicant's reputation as a peaceable, law-abiding citizen in

 26-6    the community where the applicant resides is bad;

 26-7                (9)  the applicant has not yet attained the minimum age

 26-8    necessary to purchase alcoholic beverages in this state;

 26-9                (10)  the applicant is in the habit of using alcoholic

26-10    beverages to an excess or uses a controlled substance as defined in

26-11    Chapter 481, Health and Safety Code, or a dangerous drug as defined

26-12    in Chapter 483, Health and Safety Code, or is mentally

26-13    incapacitated;

26-14                (11)  the applicant may be excluded from a track

26-15    enclosure under Article 13 or 14 of this Act;

26-16                (12)  the applicant has not been a United States

26-17    citizen residing in this state for the period of 10 consecutive

26-18    years immediately preceding the filing of the application;

26-19                (13)  the applicant has improperly used a license

26-20    certificate, credential, or identification card issued under this

26-21    Act;

26-22                (14)  the applicant is residentially domiciled with a

26-23    person whose license has been revoked for cause within the 12

26-24    months immediately preceding the date of the present application;

26-25                (15)  the applicant has failed or refused to furnish a

26-26    true copy of the application to the commission's district office in

26-27    the district in which the premises for which the permit is sought

 27-1    are located; [or]

 27-2                (16)  the applicant is engaged or has engaged in

 27-3    activities or practices that the commission finds are detrimental

 27-4    to the best interests of the public and the sport of greyhound

 27-5    racing or horse racing; or

 27-6                (17)  the applicant fails to fully disclose the true

 27-7    owners of all interests, beneficial or otherwise, in a proposed

 27-8    racetrack facility.

 27-9          (b)  Subsection (a) of this section applies to a corporation,

27-10    partnership, limited partnership, or any other organization or

27-11    group whose application is comprised of more than one person if a

27-12    shareholder, partner, limited partner [if any], director, or

27-13    officer is disqualified under Subsection (a) of this section.

27-14          (e)  The [appropriate section of the] commission may

27-15    condition the issuance of a license under this article on the

27-16    observance of its rules.  The commission may amend the rules at any

27-17    time and may condition the continued holding of the license on

27-18    compliance with the rules as amended.

27-19          (f)  The [appropriate section of the] commission may refuse

27-20    to issue a license or may suspend or revoke a license of a licensee

27-21    under this article who knowingly or intentionally allows access to

27-22    an enclosure where greyhound races or horse races are conducted to

27-23    a person who has engaged in bookmaking, touting, or illegal

27-24    wagering, whose income is from illegal activities or enterprises,

27-25    or who has been convicted of a violation of this Act.

27-26          SECTION 21.  Article 6, Texas Racing Act (Article 179e,

27-27    Vernon's Texas Civil Statutes), is amended by adding Sections 6.061

 28-1    and 6.062 to read as follows:

 28-2          Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE

 28-3    CONDITIONS.  (a)  The commission shall adopt rules implementing

 28-4    this section, including rules:

 28-5                (1)  requiring the report of and correction of:

 28-6                      (A)  an inappropriate condition on the premises

 28-7    of a racetrack facility, including a failure to properly maintain

 28-8    the facility, that interferes with the administration of this Act;

 28-9    or

28-10                      (B)  a condition on the premises of a racetrack

28-11    facility that makes the facility unsafe for a race participant,

28-12    patron, or animal; and

28-13                (2)  determining the methods and manner in which the

28-14    executive secretary may determine and remedy inappropriate

28-15    conditions or unsafe facilities on the premises of a racetrack

28-16    facility, including the methods and manner in which the executive

28-17    secretary may conduct inspections of the racetrack facility and

28-18    remedy emergency situations.

28-19          (b)  The executive secretary shall issue a notice of

28-20    violation to a racetrack facility on a finding that an

28-21    inappropriate or unsafe condition exists.

28-22          (c)  If the executive secretary determines that an

28-23    inappropriate or unsafe condition exists at the racetrack facility,

28-24    the executive secretary shall order the racetrack facility to take

28-25    action within a specified period to remedy the inappropriate

28-26    condition or unsafe condition.  In determining the period for

28-27    compliance, the executive secretary shall consider the nature and

 29-1    severity of the problem and the threat to the health, safety, and

 29-2    welfare of the race participants, patrons, or animals.

 29-3          (d)  The commission shall adopt rules requiring the reporting

 29-4    of any corrective action taken by a racetrack facility in response

 29-5    to an order of the executive secretary under Subsection (c) of this

 29-6    section.

 29-7          (e)  If a racetrack facility fails to take any action as

 29-8    required under Subsection (c) of this section, the executive

 29-9    secretary shall initiate an enforcement action against the

29-10    racetrack facility.  The executive secretary may rescind any live

29-11    or simulcast race date of any racetrack association that does not

29-12    take corrective action within the period set by the executive

29-13    secretary.

29-14          (f)  The commission shall adopt rules relating to the

29-15    commission's review of an action taken under this section by the

29-16    executive secretary.  A  review procedure adopted under this

29-17    subsection must be consistent with Chapter 2001, Government Code.

29-18          Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES.  (a)  The

29-19    commission shall adopt a method of supervising and approving the

29-20    construction, renovation, or maintenance of any building or

29-21    improvement on the premises of a racetrack facility.

29-22          (b)  The commission shall adopt rules relating to:

29-23                (1)  the approval of plans and specifications;

29-24                (2)  the contents of plans and specifications;

29-25                (3)  the maintenance of records to ensure compliance

29-26    with approved plans and specifications;

29-27                (4)  the content and filing of construction progress

 30-1    reports by the racetrack facility to the commission;

 30-2                (5)  the inspection by the commission or others;

 30-3                (6)  the method for making a change or amendment to an

 30-4    approved plan or specification; and

 30-5                (7)  any other method of supervision or oversight

 30-6    necessary.

 30-7          (c)  If the commission has grounds to believe that an

 30-8    association has failed to comply with the requirements of this

 30-9    section, a representative of the association shall appear before

30-10    the commission to consider the issue of compliance with the rules

30-11    adopted under this section.

30-12          (d)  Before a building or improvement may be used by the

30-13    association, the commission shall determine whether the

30-14    construction, renovation, or maintenance of the building or

30-15    improvement was completed in accordance with the approved plans and

30-16    specifications and whether other requirements of the commission

30-17    were met.

30-18          (e)  If the commission determines that the association failed

30-19    to comply with a requirement of this section or rule adopted under

30-20    this section, the commission shall initiate an enforcement action

30-21    against the association.  In addition to any other authorized

30-22    enforcement action, the commission may rescind any live or

30-23    simulcast race date of any association that has failed to comply

30-24    with the requirement of this section.

30-25          SECTION 22.  Section 6.08(l), Texas Racing Act (Article 179e,

30-26    Vernon's Texas Civil Statutes), is amended to read as follows:

30-27          (l)  An association may not make a deduction or withhold any

 31-1    percentage of a purse from the account into which the purse paid to

 31-2    a horse owner is deposited for membership payments, dues,

 31-3    assessments, or any other payments to any [an] organization except

 31-4    an organization of the horse owner's choice recognized by the

 31-5    commission as an official representative of the horsemen licensed

 31-6    by the commission.

 31-7          SECTION 23.  Article 6, Texas Racing Act (Article 179e,

 31-8    Vernon's Texas Civil Statutes), is amended by adding Section 6.092

 31-9    to read as follows:

31-10          Sec. 6.092.  OVERSIGHT OF USE OF FUNDS GENERATED BY

31-11    PARI-MUTUEL RACING.  (a)  The commission shall adopt reporting,

31-12    monitoring, and auditing requirements or other appropriate

31-13    performance measures for any funds distributed to or used by or any

31-14    function or service provided by the expenditure of any funds

31-15    distributed to or used by any organization that receives funds

31-16    generated by live or simulcast pari-mutuel racing.

31-17          (b)  The commission shall adopt the requirements or

31-18    performance measures after consultation with the affected

31-19    organization.  In adopting the rules, the commission shall give

31-20    consideration to the concerns of the affected organization.

31-21          (c)  An organization receiving funds generated by live or

31-22    simulcast pari-mutuel racing shall annually file with the

31-23    commission a copy of an audit report prepared by an independent

31-24    certified public accountant.  The audit shall include a

31-25    verification of any performance report sent to or required by the

31-26    commission.

31-27          (d)  The commission may review any records or books of an

 32-1    organization that submits an independent audit to the commission as

 32-2    the commission determines necessary to confirm or further

 32-3    investigate the findings of an audit or report.

 32-4          (e)  The commission by rule may suspend or withhold funds

 32-5    from an organization that:

 32-6                (1)  it determines has failed to comply with the

 32-7    requirements or performance measures adopted under Subsection (a)

 32-8    of this section; or

 32-9                (2)  has, following an independent audit or other

32-10    report to the commission, material questions raised on the use of

32-11    funds by the organization.

32-12          SECTION 24.  Section 7.01, Texas Racing Act (Article 179e,

32-13    Vernon's Texas Civil Statutes), is amended to read as follows:

32-14          Sec. 7.01.  License required.  A person shall not participate

32-15    in racing with pari-mutuel wagering [as regulated by this Act]

32-16    without first obtaining a license from the commission. [A person

32-17    who violates this section commits an offense.]

32-18          SECTION 25.  Section 7.02, Texas Racing Act (Article 179e,

32-19    Vernon's Texas Civil Statutes), is amended by amending Subsection

32-20    (a) and adding Subsections (c) and (d) to read as follows:

32-21          (a)  Each person, other than a spectator or person placing a

32-22    wager, involved in any capacity with racing with pari-mutuel

32-23    wagering under[, other than as a spectator, as regulated by] this

32-24    Act[,] must obtain a license under this article.  [A person who

32-25    violates this subsection commits an offense.]

32-26          (c)  If an examination is required for the issuance of a

32-27    license under this article, not later than the 30th day after the

 33-1    date on which a licensing examination is administered under this

 33-2    Act, the commission shall notify each examinee of the results of

 33-3    the examination.

 33-4          (d)  If requested in writing by a person who fails a

 33-5    licensing examination administered under this Act, the commission

 33-6    shall furnish the person with an analysis of the person's

 33-7    performance on the examination.

 33-8          SECTION 26.  Section 7.04, Texas Racing Act (Article 179e,

 33-9    Vernon's Texas Civil Statutes), is amended to read as follows:

33-10          Sec. 7.04.  Licenses; grounds for denial, revocation, and

33-11    suspension.  The commission, after notice and hearing, may refuse

33-12    to issue any original or renewal license under this article or may

33-13    revoke or suspend the license if it has reasonable grounds to

33-14    believe and finds that:

33-15                (1)  the applicant has been convicted in a court of

33-16    competent jurisdiction of a violation of this Act or of any rule

33-17    adopted by the commission or has aided, abetted, or conspired with

33-18    any person to commit such a violation;

33-19                (2)  the applicant has been convicted of a felony or of

33-20    any crime involving moral turpitude that is reasonably related to

33-21    the applicant's present fitness to hold a license under this Act;

33-22                (3)  the applicant has violated or has caused to be

33-23    violated this Act or a rule of the commission in a manner that

33-24    involves moral turpitude, as distinguished from a technical

33-25    violation of this Act or of a rule;

33-26                (4)  the applicant is unqualified, by experience or

33-27    otherwise, to perform the duties required of a licensee under this

 34-1    Act;

 34-2                (5)  the applicant failed to answer or has falsely or

 34-3    incorrectly answered a question in an original or renewal

 34-4    application;

 34-5                (6)  the applicant fails to disclose the true ownership

 34-6    or interest in a greyhound or horse as required by the rules of the

 34-7    commission;

 34-8                (7)  the applicant is indebted to the state for any

 34-9    fees or for the payment of a penalty imposed by this Act or by a

34-10    rule of the commission;

34-11                (8)  the applicant is not of good moral character or

34-12    the applicant's reputation as a peaceable, law-abiding citizen in

34-13    the community where the applicant resides is bad;

34-14                (9)  the applicant is in the habit of using alcoholic

34-15    beverages to an excess or uses a controlled substance as defined in

34-16    Chapter 481, Health and Safety Code, or a dangerous drug as defined

34-17    in Chapter 483, Health and Safety Code, or is mentally

34-18    incapacitated;

34-19                (10)  the applicant may be excluded from a track

34-20    enclosure under Article 13 or 14 of this Act;

34-21                (11)  the commission determines that the applicant has

34-22    improperly used a temporary pass, license certificate, credential,

34-23    or identification card issued under this Act;

34-24                (12)  the applicant is residentially domiciled with a

34-25    person whose license has been revoked for cause within the 12

34-26    months immediately preceding the date of the present application;

34-27                (13)  the applicant has failed or refused to furnish a

 35-1    true copy of the application to the commission's district office in

 35-2    the district in which the premises for which the permit is sought

 35-3    are located; or

 35-4                (14)  the applicant is engaged or has engaged in

 35-5    activities or practices that are detrimental to the best interests

 35-6    of the public and the sport of horse racing or greyhound racing.

 35-7          SECTION 27.  Section 7.05, Texas Racing Act (Article 179e,

 35-8    Vernon's Texas Civil Statutes), is amended to read as follows:

 35-9          Sec. 7.05.  License fees.  (a)  The commission shall adopt by

35-10    rule a fee schedule for licenses issued under this article.

35-11          (b)  The commission shall base the license fees on the

35-12    relative or comparative incomes or property interests of the

35-13    various categories of licensees, with the lower income category of

35-14    licensees being charged nearer the minimum fee and the higher

35-15    income category of licensees charged nearer the maximum fee.

35-16          (c)  In setting the fee schedule under Subsection (a) of this

35-17    section, the commission shall include the cost of criminal history

35-18    checks determined under Section 5.05 of this Act.  The commission

35-19    may determine the best method for recouping this cost and complying

35-20    with the other provisions of this section, including collecting the

35-21    costs over an extended period.

35-22          SECTION 28.  Section 7.07, Texas Racing Act (Article 179e,

35-23    Vernon's Texas Civil Statutes), is amended to read as follows:

35-24          Sec. 7.07.  Term of license.  (a)  A license issued under

35-25    this article is valid for a period set by the commission not to

35-26    exceed 36 months following the date of its issuance.  It is

35-27    renewable on application and payment of the fee in accordance with

 36-1    the rules of the commission.

 36-2          (b)  The commission by rule may adopt a system under which

 36-3    licenses expire on various dates during the year.  For the year in

 36-4    which the license expiration date is changed, license fees shall be

 36-5    prorated on a monthly basis so that each licensee pays only that

 36-6    portion of the license fee that is allocable to the number of

 36-7    months during which the license is valid.  On renewal of the

 36-8    license on the new expiration date, the total license renewal fee

 36-9    is payable.

36-10          SECTION 29.  Article 7, Texas Racing Act (Article 179e,

36-11    Vernon's Texas Civil Statutes), is amended by adding Section 7.10

36-12    to read as follows:

36-13          Sec. 7.10.  RECIPROCAL LICENSES; OUT-OF-STATE APPLICANTS.

36-14    (a)  The commission may waive any prerequisite to obtaining a

36-15    license for an applicant, including any requirement to submit a set

36-16    of fingerprints, after reviewing the applicant's credentials and

36-17    determining that the applicant holds a valid license from another

36-18    state that has license requirements substantially equivalent to

36-19    those of this state.

36-20          (b)  The commission may waive any prerequisite to obtaining a

36-21    license, including any requirement to submit a set of fingerprints,

36-22    for an applicant with a valid license from another state with which

36-23    the State of Texas has a reciprocity agreement.  The commission may

36-24    enter into reciprocal agreements with other states to allow for

36-25    licensing by reciprocity.

36-26          SECTION 30.  Section 9.01, Texas Racing Act (Article 179e,

36-27    Vernon's Texas Civil Statutes), is amended to read as follows:

 37-1          Sec. 9.01.  Texas-bred horses.  Subject to this Act and any

 37-2    rule of the commission, the [The] state horse breed registries

 37-3    shall make reasonable rules to establish the qualifications of

 37-4    accredited Texas-bred horses to promote, develop, and improve the

 37-5    breeding of horses in this state.  Rules adopted by a registry are

 37-6    subject to commission approval.

 37-7          SECTION 31.  Section 10.04, Texas Racing Act (Article 179e,

 37-8    Vernon's Texas Civil Statutes), is amended to read as follows:

 37-9          Sec. 10.04.  Texas-bred greyhounds.  Subject to this Act or

37-10    any rule of the commission, the [The] state greyhound breed

37-11    registry shall make reasonable rules to establish the

37-12    qualifications of accredited Texas-bred greyhounds to promote,

37-13    develop, and improve the breeding of greyhounds in this state.

37-14    Rules adopted by the registry are subject to commission approval.

37-15          SECTION 32.  Section 11.06, Texas Racing Act (Article 179e,

37-16    Vernon's Texas Civil Statutes), is amended to read as follows:

37-17          Sec. 11.06.  Minors.  [(a)]  The commission shall adopt rules

37-18    to prohibit wagering by a minor [prevent wagering by persons who

37-19    have not yet attained the minimum age required to purchase

37-20    alcoholic beverages in this state] and to prohibit [prevent] a

37-21    child [person under 16 years of age] from entering the viewing

37-22    section of a racetrack unless accompanied by the child's [person's]

37-23    parent or guardian.  The rules may except any conduct described as

37-24    an affirmative defense by Section 14.13 of this Act [A person who

37-25    intentionally, knowingly, recklessly, or with criminal negligence

37-26    violates a rule adopted under this section commits an offense.  An

37-27    offense under this section is a Class B misdemeanor].

 38-1          [(b)  A person commits an offense if the person intentionally

 38-2    or knowingly engages in gaming at a racetrack when the person has

 38-3    not yet attained the minimum age required to purchase alcoholic

 38-4    beverages in this state.  An offense under this subsection is a

 38-5    Class C misdemeanor.]

 38-6          SECTION 33.  Section 11.08, Texas Racing Act (Article 179e,

 38-7    Vernon's Texas Civil Statutes), is amended to read as follows:

 38-8          Sec. 11.08.  Money not claimed.  Not later than the 61st day

 38-9    after the closing day of a race meeting, an association shall pay

38-10    to the commission all distributable money [in a pari-mutuel pool]

38-11    that is subject to payment [to a claimant] under Section 11.07 of

38-12    this Act but that is not successfully claimed and that is not spent

38-13    on drug testing under the provisions of this Act.

38-14          SECTION 34.  Section 11.09, Texas Racing Act (Article 179e,

38-15    Vernon's Texas Civil Statutes), is amended to read as follows:

38-16          Sec. 11.09.  No liability to prosecution.  The defense to

38-17    prosecution under Chapter 47, Penal Code, that the conduct was

38-18    authorized under this Act is available only to a person who is:

38-19                (1)  [A person] lawfully conducting or participating in

38-20    the conduct of pari-mutuel wagering in connection with horse racing

38-21    or greyhound racing; or

38-22                (2)  permitting the lawful conduct of an activity

38-23    described by Subdivision (1) of this section on any racetrack

38-24    facility [on any premises owned or leased by him or it under any

38-25    license lawfully issued under this Act is not liable to prosecution

38-26    for that conduct].

38-27          SECTION 35.  Section 13.03, Texas Racing Act (Article 179e,

 39-1    Vernon's Texas Civil Statutes), is amended to read as follows:

 39-2          Sec. 13.03.  CRIMINAL TRESPASS [Entry after ejection].

 39-3    [(a)]  A person, for the purposes of Section 30.05, Penal Code, is

 39-4    presumed to have received notice that entry to an enclosure was

 39-5    forbidden if the person:

 39-6                (1)  was excluded or ejected from the enclosure under

 39-7    this Act;

 39-8                (2)  possessed, displayed, or used in the enclosure a

 39-9    credential that the person was not authorized to use; or

39-10                (3)  entered the enclosure using a falsified

39-11    credential.  [who has been excluded or ejected from an enclosure

39-12    under this article commits an offense if the person knowingly

39-13    enters an enclosure of the same or another licensed racetrack

39-14    unless the commission or a final judgment of a court has ordered

39-15    that the rule does not apply to the person.]

39-16          [(b)  An offense under this section is a Class A misdemeanor.]

39-17          [(c)  The provisions of Section 7.22, Penal Code, imposing

39-18    criminal responsibility on a corporation or association for an

39-19    offense committed by its agent apply to conduct constituting an

39-20    offense under this section that is performed by an agent of a

39-21    corporation or association.]

39-22          SECTION 36.  Article 14, Texas Racing Act (Article 179e,

39-23    Vernon's Texas Civil Statutes), is amended to read as follows:

39-24            ARTICLE 14.  CRIMINAL [TOUTING AND OTHER] OFFENSES

39-25          Sec. 14.01.  Touting.  (a)  A person commits an offense if,

39-26    with an intent to deceive and an intent to obtain a benefit

39-27    [knowing the information is false], the person knowingly makes a

 40-1    false statement [or intentionally conveys] or offers, agrees to

 40-2    convey, or conveys false information about a greyhound race or

 40-3    horse race to another [others for compensation].

 40-4          (b)  Except as provided by Subsection (c) of this section, an

 40-5    offense under this section is a Class A misdemeanor [felony of the

 40-6    third degree].

 40-7          (c)  An offense under this section is a state jail felony [of

 40-8    the second degree] if:

 40-9                (1)  the actor is a licensee under this Act or an

40-10    employee or member of the commission and the actor knowingly

40-11    represents that a member [an official] or employee of the

40-12    commission or a [of an association or an owner, trainer, jockey, or

40-13    other] person licensed by the commission is the source of the false

40-14    information; or

40-15                (2)  the false statement or information was contained

40-16    in racing selection information provided to the public. [the actor

40-17    previously has been finally convicted of an offense under this

40-18    section or has been convicted of a felony for which the punishment

40-19    received was a suspended sentence, probation, or a nonadjudicated

40-20    conviction which has not yet been fully served.]

40-21          [(d)  The provisions of Section 7.22, Penal Code, imposing

40-22    criminal responsibility on a corporation or association for an

40-23    offense committed by its agent apply to conduct constituting an

40-24    offense under this section that is performed by an agent of a

40-25    corporation or association.]

40-26          Sec. 14.02.  Unlawful Possession or use of credential.

40-27    (a)  A person commits an offense if the person knowingly or

 41-1    intentionally possesses or displays a [license or] credential or

 41-2    false credential that identifies [has been issued or purports to

 41-3    have been issued by the commission and represents that] the person

 41-4    as [is] the holder of the [license or] credential and [when] the

 41-5    person knows:

 41-6                (1)  that the [license or] credential is not issued to

 41-7    the person; or

 41-8                (2)  the person is not a licensee [if the person

 41-9    impersonates in any way a person holding a license or credential

41-10    issued by the commission].

41-11          (b)  An offense under this section is a Class C misdemeanor

41-12    [felony of the third degree].

41-13          [(c)  The provisions of Section 7.22, Penal Code, imposing

41-14    criminal responsibility on a corporation or association for an

41-15    offense committed by its agent apply to conduct constituting an

41-16    offense under this section that is performed by an agent of a

41-17    corporation or association.]

41-18          [Sec. 14.03.  ILLEGAL INFLUENCE OF RACE OUTCOME.  (a)  The

41-19    commission shall adopt rules prohibiting the illegal influencing of

41-20    the outcome of a race, including but not limited to the use of

41-21    medication, stimulants, or depressants to attempt to or to

41-22    influence illegally the outcome of a race.]

41-23          [(b)  The commission may require prerace testing by any

41-24    invasive or noninvasive method or methods to determine whether such

41-25    a drug, chemical, or other substance has been administered.  The

41-26    commission shall require postrace testing by such method or

41-27    methods.  The commission shall adopt rules that require all such

 42-1    tests to be conducted using state-of-the-art methods.  On any

 42-2    positive test showing the presence of prohibited drugs, chemicals,

 42-3    or other substances, the stewards or racing judges may summarily

 42-4    suspend any person who has administered or applied the drug,

 42-5    chemical, or other substance or any electric device or spur pending

 42-6    hearing by the stewards or judges with the right of appeal to the

 42-7    commission.  Such a suspension may be stayed, in the discretion of

 42-8    the commission only, during the pendency of such appeal. In

 42-9    addition, the stewards or racing judges may disqualify the affected

42-10    animal pursuant to rules adopted by the commission under this

42-11    section.  The commission may require that urine samples be frozen

42-12    and maintained for a period that will enable veterinarians and

42-13    chemists to conduct follow-up tests to detect and identify

42-14    prohibited drugs.  All other specimens shall be maintained for

42-15    testing purposes in the manner prescribed by the commission. In the

42-16    event a sample tests positive for a drug, chemical, or other

42-17    substance, all samples, including the split portion, shall be

42-18    maintained until the matter is finally adjudicated.  A licensee

42-19    whose animal has tested positive for a drug, chemical, or other

42-20    substance is entitled to have a split portion of the sample tested

42-21    at a testing facility authorized to perform drug testing under

42-22    Section 3.07 of this Act and selected by the licensee.  The

42-23    commission shall adopt rules regarding the procedure for the split

42-24    testing.]

42-25          [(c)  The official licensed trainer of each such animal is

42-26    deemed by law to be the absolute insurer that no prohibited drug,

42-27    chemical, or other substance has been administered and shall be

 43-1    responsible to see that such a drug, chemical, or other substance

 43-2    is not administered.]

 43-3          [(d)  By applying for a license under this Act, each

 43-4    occupational licensee consents to both prerace and postrace search

 43-5    for the purpose of determining the presence of such a drug,

 43-6    chemical, or other substance or of any electrical device or other

 43-7    device that might have the effect of unnaturally depressing,

 43-8    stimulating, or exciting any animal during a race.  The commission

 43-9    shall adopt rules relating to drug testing for occupational

43-10    licensees.]

43-11          [(e)  A person who knowingly violates a rule adopted under

43-12    this section may be barred, either for a period set by the

43-13    commission or for life, from receiving any license under this Act

43-14    or may be barred for a period set by the commission or for life

43-15    from any premises licensed under this Act, or both.]

43-16          [(f)  A person who knowingly violates a rule adopted under

43-17    this section commits a felony of the third degree for the first

43-18    offense and a felony of the second degree for a second or

43-19    subsequent offense.]

43-20          [(g)  A person who gives, offers or promises to give, or

43-21    attempts to give or offer any money, bribe, or thing of value to

43-22    any jockey, trainer, owner, groom, or other person associated with

43-23    or interested in any stable, kennel, horse, or dog, or race in

43-24    which any horse or dog participates, with the intention or

43-25    understanding or agreement that such individual shall not use his

43-26    best efforts to win such race, or shall so conduct himself in such

43-27    race that any other participant shall thereby be assisted or

 44-1    enabled to win such race, or shall so conduct himself in such race

 44-2    as to limit his finishing or placing in such race commits an

 44-3    offense.  Such an offense is a felony of the third degree.]

 44-4          [(h)  A person who accepts, attempts to accept, offers to

 44-5    accept, or agrees to accept any money, bribe, or thing of value,

 44-6    with the intention or understanding or agreement that he will not

 44-7    use his best efforts to win any horse or dog race, in which he is

 44-8    the jockey, trainer, groom, owner, or other interested party or is

 44-9    about to participate in, or will so conduct himself in such race

44-10    that any other horse or dog shall thereby be assisted or enabled to

44-11    win such race, or will so conduct himself in such race as to limit

44-12    his finishing or placing in such race commits an offense.  Such an

44-13    offense is a felony of the third degree.]

44-14          [(i)  A person who gives, offers to give, promises to give,

44-15    or attempts to give any money, bribe, or thing of value to any

44-16    person who is presiding or officiating at or who is about to

44-17    preside or officiate at any dog or horse race with the intention or

44-18    agreement or understanding that such person shall corruptly or

44-19    dishonestly preside or officiate at any such race with the

44-20    intention or purpose that the result of the race will be affected

44-21    or influenced thereby commits an offense.  Such an offense is a

44-22    felony of the third degree.]

44-23          Sec. 14.04.  Illegal access.  (a)  A person commits an

44-24    offense if the person is a licensee and the person [licensee who]

44-25    knowingly or intentionally permits, facilitates, or allows access,

44-26    to an enclosure where races are conducted, to another [a] person

44-27    who the person knows:

 45-1                (1)  has engaged in bookmaking, touting, or illegal

 45-2    wagering;

 45-3                (2)  derives[, whose] income [is] from illegal

 45-4    activities or enterprises;

 45-5                (3)  [, or who] has been convicted of a violation of

 45-6    this  Act; or

 45-7                (4)  is excluded by the commission from entering a

 45-8    racetrack facility[, commits an offense].

 45-9          (b)  An offense under this section is a Class B misdemeanor

45-10    [felony of the third degree].

45-11          Sec. 14.05.  RACES CONDUCTED ON CERTAIN INDIAN LANDS.  (a)  A

45-12    person who is subject to this section commits an offense if the

45-13    person intentionally or knowingly wagers on the result of a

45-14    greyhound race or horse race conducted in this state that:

45-15                (1)  is held on an American Indian reservation or on

45-16    American Indian trust land located in this state; and

45-17                (2)  is not held under the supervision of the

45-18    commission under rules adopted under this Act.

45-19          (b)  An offense under this section is a felony of the third

45-20    degree.

45-21          (c)  It is an exception to the application of this section

45-22    that the person is a member of a recognized Texas Indian tribe who

45-23    lives on a reservation or on trust lands located in this state.

45-24          Sec. 14.06.  False statements.  (a)  A person commits an

45-25    offense if the person [intentionally,] knowingly[, recklessly, or

45-26    with criminal negligence] makes a material and false, incorrect, or

45-27    deceptive statement to another who is conducting an investigation

 46-1    or exercising discretion under this Act or a rule adopted under

 46-2    this Act.

 46-3          (b)  In this section, the [The] term "statement" means a

 46-4    representation of fact and includes[, but is not limited to]:

 46-5                (1)  a written or oral statement [statements]; or

 46-6                (2)  a sworn or unsworn statement [statements].

 46-7          (c)  An offense under this section is a state jail felony

 46-8    unless the statement was material in a commission action relating

 46-9    to a racetrack license, in which event, the offense is a felony of

46-10    the third degree.

46-11          Sec. 14.07.  HINDERING OF ENTRY OR SEARCH.  (a)  A person

46-12    commits an offense if the person [intentionally, knowingly,

46-13    recklessly, or] with criminal negligence refuses, denies, or

46-14    hinders entry to another who is exercising or attempting to

46-15    exercise a power of entry under this Act or a commission rule.

46-16          (b)  A person commits an offense if the person with criminal

46-17    negligence refuses, denies, hinders, interrupts, disrupts, impedes,

46-18    or otherwise interferes with a search by a person exercising or

46-19    attempting to exercise a power to search under this Act or a

46-20    commission rule.

46-21          (c) [(b)]  An offense under this section is a Class B

46-22    misdemeanor.

46-23          Sec. 14.08.  FORGING PARI-MUTUEL TICKET.  (a) A person

46-24    commits an offense if the person intentionally or knowingly forges

46-25    a pari-mutuel ticket with the intent to defraud or harm another.

46-26          (b)  In this section, "forge" has the meaning assigned by

46-27    Section 32.21, Penal Code.

 47-1          (c)  An offense under this section is a felony of the third

 47-2    degree.

 47-3          Sec. 14.09.  IMPERSONATING A LICENSEE.  (a)  A person commits

 47-4    an offense if the person impersonates a licensee with the intent to

 47-5    induce another person to submit to the actor's purported authority

 47-6    as a licensee or to rely on the actor's actions as an alleged

 47-7    licensee.

 47-8          (b)  An offense under this section is a Class A misdemeanor.

 47-9          Sec. 14.10.  UNLAWFUL INFLUENCE ON RACING.  (a) A person

47-10    commits an offense if the person possesses a prohibited device or

47-11    prohibited substance on a racetrack facility.

47-12          (b)  An offense under Subsection (a) of this section is a

47-13    state jail felony, unless the actor possessed the device or

47-14    substance with the intent to influence or affect the outcome of a

47-15    horse or greyhound race in a manner contrary to this Act or a

47-16    commission rule, in which event it is a felony of the third degree.

47-17          (c)  A person commits an offense if, with the intent to

47-18    influence or affect a horse or greyhound race in a manner contrary

47-19    to this Act or a commission rule, the person:

47-20                (1)  uses or offers to use a prohibited device; or

47-21                (2)  uses or offers to use a prohibited substance.

47-22          (d)  An offense under Subsection (c) of this section is a

47-23    felony of the third degree.

47-24          Sec. 14.11.  BRIBERY AND CORRUPT INFLUENCE.  (a) A person

47-25    commits an offense if, with the intent to influence or affect the

47-26    outcome of a race in a manner contrary to this Act or a commission

47-27    rule, the person offers, confers, agrees to confer on another, or

 48-1    solicits, accepts, or agrees to accept from another person any

 48-2    benefit as consideration for the actions of a person who receives

 48-3    the benefit relating to the conduct, decision, opinion,

 48-4    recommendation, vote, or exercise of discretion as a licensee or

 48-5    other person associated with or interested in any stable, kennel,

 48-6    horse, greyhound, or horse or greyhound race.

 48-7          (b)  An offense under this section is a state jail felony,

 48-8    unless the recipient of the benefit is a steward, judge, or other

 48-9    racetrack official exercising authority over a horse or greyhound

48-10    race that the person providing or offering the benefit intended to

48-11    influence, in which event it is a felony of the third degree.

48-12          Sec. 14.12.  CRIMINAL CONFLICT OF INTEREST.  A person who is

48-13    a member of the commission commits an offense if the person:

48-14                (1)  accepts, directly or indirectly, employment or

48-15    remuneration from a racetrack facility, association, or other

48-16    licensee, including a facility, association, or licensee located or

48-17    residing in another state;

48-18                (2)  wagers or causes a wager to be placed on the

48-19    outcome of a horse or greyhound race conducted in this state; or

48-20                (3)  accepts or is entitled to any part of a purse to

48-21    be paid to an animal in a race conducted in this state.

48-22          Sec. 14.13.  OFFENSES INVOLVING A MINOR.  (a) A person

48-23    commits an offense if the person with criminal negligence permits,

48-24    facilitates, or allows:

48-25                (1)  wagering by a minor at a racetrack facility; or

48-26                (2)  entry by a child to the viewing section of a

48-27    racetrack facility.

 49-1          (b)  An offense under Subsection (a) of this section is a

 49-2    Class B misdemeanor.

 49-3          (c)  A person commits an offense if the person is a minor and

 49-4    intentionally or knowingly engages in wagering at a racetrack.

 49-5          (d)  An offense under Subsection (c) of this section is a

 49-6    Class C misdemeanor.

 49-7          (e)  It is an affirmative defense to prosecution of an

 49-8    offense under Subsection (a)(2) that a child was accompanied by and

 49-9    was in the physical presence of a parent, guardian, or spouse who

49-10    was 21 years of age or older.

49-11          (f)  It is an affirmative defense to prosecution of an

49-12    offense under Subsection (a) of this section that the minor falsely

49-13    represented the minor's age by displaying to the person an

49-14    apparently valid Texas driver's license or identification card

49-15    issued by the Department of Public Safety that contains a physical

49-16    description consistent with the minor's appearance.

49-17          Sec. 14.14.  UNLAWFUL RACING.  A person commits an offense

49-18    if:

49-19                (1)  the person participates, permits, or conducts a

49-20    greyhound or horse race at a licensed racetrack facility;

49-21                (2)  the person wagers on the partial or final outcome

49-22    of the horse or greyhound race or knows or reasonably should know

49-23    that another is betting on the partial or final outcome of the

49-24    race; and

49-25                (3)  the race is not part of a performance or meeting

49-26    conducted under this Act or commission rule.

49-27          Sec. 14.15.  PARI-MUTUEL RACING WITHOUT LICENSE.  (a) A

 50-1    person commits an offense if, without a license, the person

 50-2    participates or is otherwise involved in, in any capacity,

 50-3    greyhound racing or horse racing with pari-mutuel wagering.

 50-4          (b)  It is an affirmative defense to prosecution under

 50-5    Subsection (a) of this section that the actor was a spectator or a

 50-6    person placing a wager.

 50-7          (c)  An offense under Subsection (a) of this section is a

 50-8    Class A misdemeanor, unless the actor was required by this Act to

 50-9    obtain a racetrack license, in which event it is a state jail

50-10    felony.

50-11          Sec. 14.16.  RACING WITHOUT LICENSE.  (a) A person commits an

50-12    offense if the person:

50-13                (1)  conducts a greyhound or horse race without a

50-14    racetrack license; and

50-15                (2)  knows or reasonably should know that another

50-16    person is betting on the final or partial outcome of the race.

50-17          (b)  An offense under this section is a felony of the third

50-18    degree.

50-19          Sec. 14.17.  FAILURE TO DISPLAY CREDENTIAL.  (a) A person

50-20    commits an offense if the person intentionally or knowingly:

50-21                (1)  fails or refuses to display a credential to

50-22    another after a lawful request; or

50-23                (2)  fails or refuses to give the person's name,

50-24    residence address, or date of birth to another after a lawful

50-25    request.

50-26          (b)  In this section, "lawful request" means a request from

50-27    the commission, an authorized agent of the commission, the director

 51-1    or a commissioned officer of the Department of Public Safety, a

 51-2    peace officer, or a steward or judge at any time and any restricted

 51-3    location that:

 51-4                (1)  is on a racetrack facility; and

 51-5                (2)  is not a public place.

 51-6          (c)  Except as provided by Subsection (d) of this section, an

 51-7    offense under this section is a Class B misdemeanor.

 51-8          (d)  At the punishment stage of a trial for an offense under

 51-9    Subsection (a)(1) of this section the defendant may raise an issue

51-10    as to whether the defendant was a licensee at the time of the

51-11    offense. If the defendant proves the issue, the offense is a Class

51-12    C misdemeanor.

51-13          Sec. 14.18.  SEARCH AND SEIZURE.  (a) A person consents to a

51-14    search at a time and location described in Subsection (b) of this

51-15    section for a prohibited device, prohibited substance, or other

51-16    contraband if the person:

51-17                (1)  accepts a license or other credential issued under

51-18    this Act; or

51-19                (2)  enters a racetrack facility under the authority of

51-20    a license or other credential alleged to have been issued under

51-21    this Act.

51-22          (b)  A search may be conducted by a commissioned officer of

51-23    the Department of Public Safety or a peace officer, including a

51-24    peace officer employed by the commission, at any time and at any

51-25    location that is on a racetrack facility, except a location:

51-26                (1)  excluded by commission rule from searches under

51-27    this section; or

 52-1                (2)  provided by an association under commission rule

 52-2    for private storage of personal items belonging to a licensee

 52-3    entering a racetrack facility.

 52-4          (c)  A person conducting a search under Subsection (b) of

 52-5    this section may seize any prohibited device, prohibited substance,

 52-6    or other contraband discovered during the search.

 52-7          Sec. 14.19.  PROSECUTION. A person who is subject to

 52-8    prosecution for a penal offense under this Act and another law may

 52-9    be prosecuted under either law.

52-10          Sec. 14.20.  COMMISSION AUTHORITY. This article may not be

52-11    construed to restrict the commission's administrative authority to

52-12    enforce this Act or commission rules to the fullest extent

52-13    authorized by this Act.

52-14          SECTION 37.  Section 15.01, Texas Racing Act (Article 179e,

52-15    Vernon's Texas Civil Statutes), is amended to read as follows:

52-16          Sec. 15.01.  GENERAL PENALTY.  If [With regard to any

52-17    provision of this Act that is a penal offense, if] no specific

52-18    penalty is provided for a provision of this Act that is a penal

52-19    offense, a person who violates the [such a] provision commits a

52-20    state jail felony [of the third degree].

52-21          SECTION 38.  Section 18.01(a), Texas Racing Act (Article

52-22    179e, Vernon's Texas Civil Statutes), is amended to read as

52-23    follows:

52-24          (a)  The Texas Racing Commission is subject to Chapter 325,

52-25    Government Code (Texas Sunset Act).  Unless continued in existence

52-26    as provided by that chapter, and except as provided by Subsections

52-27    (b) and (c) of this section, the commission is abolished and this

 53-1    Act expires September 1, 2005 [1997].

 53-2          SECTION 39.  Section 481.172, Government Code, is amended to

 53-3    read as follows:

 53-4          Sec. 481.172.  Duties.  The department shall:

 53-5                (1)  promote and advertise within the United States and

 53-6    in foreign countries, by radio, television, newspaper, and other

 53-7    means considered appropriate, tourism in this state by non-Texans,

 53-8    including persons from foreign countries, and distribute

 53-9    promotional materials through appropriate agencies, including the

53-10    United States Travel and Tourism Agency;

53-11                (2)  encourage travel by Texans to this state's scenic,

53-12    historical, natural, agricultural, educational, recreational, and

53-13    other attractions;

53-14                (3)  coordinate and stimulate orderly and accelerated

53-15    development of tourist attractions throughout this state;

53-16                (4)  conduct a public relations campaign to create a

53-17    responsible and accurate national and international image of this

53-18    state;

53-19                (5)  cooperate fully with the Parks and Wildlife

53-20    Department in all matters relating to promotion of tourism;

53-21                (6)  cooperate with the Texas Transportation Commission

53-22    in the administration of the commission's collateral program of

53-23    highway map distribution and operation of travel information

53-24    bureaus and other tourist-related functions of the commission;

53-25    [and]

53-26                (7)  encourage communities, organizations, and

53-27    individuals in this state to cooperate with its program by their

 54-1    activities and use of their own funds and collaborate with those

 54-2    organizations and other governmental entities in the pursuit of the

 54-3    objectives of this subchapter; and

 54-4                (8)  promote and encourage the horse racing and

 54-5    greyhound racing industry, if funds are appropriated for the

 54-6    promotion or encouragement.

 54-7          SECTION 40.  Sections 2.07, 3.01, 11.04(d), 15.02, and 18.02,

 54-8    Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are

 54-9    repealed.

54-10          SECTION 41.  (a)  This Act takes effect September 1, 1997.

54-11          (b)  The changes in law made by this Act relating to the

54-12    qualifications and appointment of members to the Texas Racing

54-13    Commission do not affect the entitlement of a member of the

54-14    commission serving immediately before the effective date of this

54-15    Act to continue to serve on the commission for the term to which

54-16    the member was appointed.  As the terms of members of the

54-17    commission expire or as vacancies on the commission occur, the

54-18    governor shall make appointments to the commission to achieve as

54-19    soon as possible the membership plan prescribed for the commission

54-20    by the Texas Racing Act (Article 179e, Vernon's Texas Civil

54-21    Statutes), as amended by this Act.

54-22          (c)  The Texas Racing Commission shall review all of the

54-23    rules of the commission before January 1, 2002.  The commission,

54-24    following the review, shall readopt, modify, or repeal the rules

54-25    before January 1, 2002.  In reviewing the rules of the commission,

54-26    the commission shall, to the extent feasible, attempt to have

54-27    uniform approaches to the regulation of activities related to horse

 55-1    racing and greyhound racing.

 55-2          (d)  The authority for rulemaking and licensing and for any

 55-3    action relating exclusively to horse racing or exclusively to

 55-4    greyhound racing that was granted to a separate section of the

 55-5    Texas Racing Commission is transferred to the Texas Racing

 55-6    Commission.

 55-7          SECTION 42.  (a)  The changes in law made by this Act apply

 55-8    only to an offense committed on or after the effective date of this

 55-9    Act.  For purposes of this section, an offense is committed before

55-10    the effective date of this Act if any element of the offense occurs

55-11    before the effective date.

55-12          (b)  An offense committed before the effective date of this

55-13    Act is covered by the law in effect when the offense was committed,

55-14    and the former law is continued in effect for this purpose.

55-15          SECTION 43.  The importance of this legislation and the

55-16    crowded condition of the calendars in both houses create an

55-17    emergency and an imperative public necessity that the

55-18    constitutional rule requiring bills to be read on three several

55-19    days in each house be suspended, and this rule is hereby suspended.