By Ellis S.B. No. 1680
75R7596 MWV-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financing of sports venues by authorizing games of
1-3 skill at certain existing pari-mutuel racing facilities; providing
1-4 for certain fees.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The Texas Racing Act (Article 179e, Vernon's
1-7 Texas Civil Statutes) is amended by adding Articles 19 and 20 to
1-8 read as follows:
1-9 ARTICLE 19. GAMES OF SKILL
1-10 Sec. 19.01. DEFINITIONS. In this article:
1-11 (1) "Games of skill" means a game that allows a player
1-12 to wager against the association or against another player, with
1-13 the association charging a commission for the operation of the
1-14 game; is not a lottery or gift enterprise; and contains an element
1-15 of chance but also depends on the skill, judgment, or knowledge of
1-16 the player. The term may include draw poker, 21 or blackjack, or
1-17 other games using playing cards or electronic representations of
1-18 playing cards. The term does not include:
1-19 (A) slot machines;
1-20 (B) craps or other games played with dice; or
1-21 (C) roulette or wheels of fortune.
1-22 (2) "Gross revenue from games of skill" means the
1-23 total revenue received by the association during a particular
1-24 period of time:
2-1 (A) as the association's winnings from the
2-2 conduct of games of skill; or
2-3 (B) as commissions or other compensation
2-4 received by the association for conducting a game of skill in which
2-5 the association is not a party to a wager.
2-6 (3) "Related infrastructure" means any store,
2-7 restaurant, concession, automobile parking facility, area
2-8 transportation facility, road, street, water, or sewer facility, or
2-9 other on-site or off-site improvement that relates to and enhances
2-10 the use, value, or appeal of a sports venue and any other
2-11 expenditure reasonably necessary to construct, improve, renovate,
2-12 or expand a sports venue.
2-13 (4) "Sports venue" means an arena, coliseum, stadium,
2-14 or other type of area or facility:
2-15 (A) that is primarily used or is planned for
2-16 primary use for one or more professional or amateur sports or
2-17 athletics events; and
2-18 (B) for which a fee for admission to the sports
2-19 or athletics events, other than occasional civic, charitable, or
2-20 promotional events, is charged or is planned to be charged.
2-21 Sec. 19.02. APPLICABILITY. This article applies only to:
2-22 (1) a class I horse racetrack;
2-23 (2) a greyhound racetrack; or
2-24 (3) a class II horse racetrack located in a county
2-25 with a population of 500,000 or more.
2-26 Sec. 19.03. GAMES OF SKILL AUTHORIZED. An association may
2-27 conduct games of skill under this article and the rules adopted by
3-1 the commission.
3-2 Sec. 19.04. ENCLOSURE LIMITATIONS. An association may not
3-3 conduct games of skill outside of its enclosure.
3-4 Sec. 19.05. FEES ON GROSS REVENUE. An association shall,
3-5 not later than the 15th day following the end of each month, pay in
3-6 full the following fees:
3-7 (1) one-quarter of one percent of the association's
3-8 gross revenue from games of skill to the commission for the
3-9 administrative cost of performing the commission's duties, carrying
3-10 out the commission's responsibilities, and enforcing this article;
3-11 and
3-12 (2) six percent of the association's gross revenues
3-13 from games of skill to a local or regional sports authority or
3-14 other authority established to provide revenue for the design,
3-15 construction, acquisition, refurbishment, remodeling, enhancement,
3-16 or maintenance of facilities of a sports venue or related
3-17 infrastructure or for the facilities for a nonprofit corporation
3-18 organized for the purpose of encouraging agriculture through the
3-19 operation of a livestock show and rodeo.
3-20 Sec. 19.06. MINIMUM LIVE RACING. (a) A class I horse
3-21 racetrack licensed under this Act that conducts games of skill on
3-22 more than 90 days during a calendar year shall also conduct during
3-23 the same calendar year:
3-24 (1) not fewer than 100 live race days consisting of
3-25 not fewer than eight live races on each live race day;
3-26 (2) not fewer than 500 Thoroughbred races during its
3-27 live race days;
4-1 (3) not fewer than 200 quarter horse races during its
4-2 live race days; and
4-3 (4) not fewer than 20 races that include horses of
4-4 other breeds or multiple breed races during its live race days.
4-5 (b) An association licensed to conduct greyhound racing that
4-6 conducts games of skill under this article on more than 90 days
4-7 during a calendar year shall also conduct during the same calendar
4-8 year not fewer than 200 live greyhound race performances, including
4-9 matinee performances, with each performance consisting of not fewer
4-10 than 10 live races.
4-11 (c) A licensed class II horse racetrack that conducts games
4-12 of skill under this article on more than 90 days during a calendar
4-13 year shall also conduct during the same calendar year not fewer
4-14 than 45 live race days consisting of not fewer than eight live
4-15 races for each race day.
4-16 (d) The commission or the executive secretary may exempt an
4-17 association from the live racing requirements of this section for a
4-18 race scheduled by the association during a live race day granted by
4-19 the commission if the commission or executive secretary determines
4-20 that the association has been unable to attract seven or more
4-21 qualified entries after making a reasonable and good faith effort
4-22 to attract the entries.
4-23 Sec. 19.07. RULES. The commission shall adopt rules
4-24 necessary or appropriate to implement this article.
4-25 ARTICLE 20. GAMES OF SKILL; LOCAL OPTION ELECTION
4-26 Sec. 20.01. DEFINITION. In this article, "games of skill"
4-27 has the meaning assigned by Section 19.01 of this Act.
5-1 Sec. 20.02. CONDITION PRECEDENT. The commission may not
5-2 allow the conduct of games of skill at a racetrack until the
5-3 commissioners court of the county in which the racetrack is located
5-4 has certified to the secretary of state that the qualified voters
5-5 of the county have approved the legalization of games of skill at a
5-6 racetrack in the county at an election held under this article. A
5-7 local option election may not be held under this article before
5-8 January 1, 1998.
5-9 Sec. 20.03. METHODS FOR INITIATING ELECTION. The
5-10 commissioners court on its own motion by a majority vote of its
5-11 members may order an election to approve the legalization of games
5-12 of skill, and it shall order an election on presentation of a
5-13 petition meeting the requirements of this article.
5-14 Sec. 20.04. APPLICATION FOR PETITION; ISSUANCE. The county
5-15 clerk shall issue to the applicants a petition to be circulated
5-16 among registered voters for their signatures if requested by
5-17 written application of 10 or more registered voters of the county.
5-18 Sec. 20.05. CONTENTS OF APPLICATION. An application must
5-19 contain:
5-20 (1) a heading, in the following words: "Application
5-21 for a Petition for a Local Option Election to Approve the
5-22 Legalization of Games of Skill at a Horse Racetrack" or
5-23 "Application for a Petition for a Local Option Election to Approve
5-24 the Legalization of Games of Skill at a Greyhound Racetrack," as
5-25 appropriate;
5-26 (2) a statement of the issue to be voted on, in the
5-27 following words: "Legalizing games of skill at a horse racetrack
6-1 in ______ County" or "Legalizing games of skill at a greyhound
6-2 racetrack in ______ County," as appropriate;
6-3 (3) a statement immediately above the signatures of
6-4 the applicants, reading as follows: "It is the hope, purpose, and
6-5 intent of the applicants whose signatures appear below that games
6-6 of skill at a horse racetrack be legalized in ______ County" or "It
6-7 is the hope, purpose, and intent of the applicants whose signatures
6-8 appear below that games of skill at a greyhound racetrack be
6-9 legalized in ______ County," as appropriate; and
6-10 (4) the printed name, signature, residence address,
6-11 and voter registration certificate number of each applicant.
6-12 Sec. 20.06. CONTENTS OF PETITION. A petition must contain:
6-13 (1) a heading, in the following words: "Petition for
6-14 a Local Option Election to Approve the Legalization of Games of
6-15 Skill at a Horse Racetrack" or "Petition for a Local Option
6-16 Election to Approve the Legalization of Games of Skill at a
6-17 Greyhound Racetrack," as appropriate;
6-18 (2) a statement of the issue to be voted on, in the
6-19 same words used in the application;
6-20 (3) a statement immediately above the signatures of
6-21 the petitioners, reading as follows: "It is the hope, purpose, and
6-22 intent of the petitioners whose signatures appear below that games
6-23 of skill at a horse racetrack be legalized in ______ County" or "It
6-24 is the hope, purpose, and intent of the petitioners whose
6-25 signatures appear below that games of skill at a greyhound
6-26 racetrack be legalized in ______ County," as appropriate;
6-27 (4) lines and spaces for the names, signatures,
7-1 addresses, and voter registration certificate numbers of the
7-2 petitioners; and
7-3 (5) the date of issuance, the serial number, and the
7-4 seal of the county clerk on each page.
7-5 Sec. 20.07. COPIES. The county clerk shall keep the
7-6 application and a copy of the petition in the files of that office.
7-7 The clerk shall issue to the applicants as many copies as they
7-8 request.
7-9 Sec. 20.08. FILING OF PETITION; NUMBER OF SIGNATURES. To
7-10 form the basis for the ordering of an election, the petition must
7-11 be filed with the county clerk not later than the 30th day after
7-12 the date of its issuance, and it must contain a number of
7-13 signatures of registered voters of the county at least equal to
7-14 five percent of the number of votes cast in the county for all
7-15 candidates for governor in the most recent gubernatorial general
7-16 election.
7-17 Sec. 20.09. REVIEW BY COUNTY CLERK. (a) The county clerk
7-18 shall, on request of any person, check each name on the petition to
7-19 determine whether the signer is a registered voter of the county.
7-20 The person requesting this verification by the county clerk shall
7-21 pay the county clerk a sum equal to 20 cents for each name before
7-22 commencement of the verification.
7-23 (b) The county clerk may not count a signature if there is
7-24 reason to believe that:
7-25 (1) it is not the actual signature of the purported
7-26 signer;
7-27 (2) the voter registration certificate number of the
8-1 signer is not correct;
8-2 (3) it is a duplication either of a name or of
8-3 handwriting used in any other signature on the petition;
8-4 (4) the residence address of the signer is not
8-5 correct; or
8-6 (5) the name of the voter is not signed exactly as it
8-7 appears on the official copy of the current list of registered
8-8 voters for the voting year in which the petition is issued.
8-9 Sec. 20.10. CERTIFICATION. Not later than the 40th day
8-10 after the date the petition is filed, excluding Saturdays, Sundays,
8-11 and legal holidays, the county clerk shall certify to the
8-12 commissioners court the number of registered voters signing the
8-13 petition.
8-14 Sec. 20.11. ORDER OF ELECTION. (a) The commissioners court
8-15 shall record on its minutes the date the petition is filed and the
8-16 date it is certified by the county clerk.
8-17 (b) If the petition contains the required number of
8-18 signatures and is in proper order, the commissioners court shall,
8-19 at its next regular session after the certification by the county
8-20 clerk, order an election to be held at the regular polling place in
8-21 each county election precinct in the county on the next uniform
8-22 election date authorized by Section 41.001, Election Code, that
8-23 occurs at least 45 days after the date of the order. The
8-24 commissioners court shall state in the order the issue to be voted
8-25 on in the election. The order is prima facie evidence of
8-26 compliance with all provisions necessary to give it validity.
8-27 Sec. 20.12. APPLICATION OF ELECTION CODE. (a) The election
9-1 shall be held and the returns shall be prepared and canvassed in
9-2 conformity with the Election Code.
9-3 (b) The ballots shall be printed to permit voting for or
9-4 against the proposition: "Legalizing games of skill at a horse
9-5 racetrack in ______ County" or "Legalizing games of skill at a
9-6 greyhound racetrack in ______ County," as appropriate.
9-7 Sec. 20.13. RESULTS OF ELECTION. (a) If a majority of the
9-8 votes cast in the election are for the legalization of games of
9-9 skill at a horse racetrack or greyhound racetrack in the county,
9-10 the commissioners court shall certify that fact to the secretary of
9-11 state not later than the 10th day after the date of the canvass of
9-12 the returns.
9-13 (b) No other election regarding games of skill at racetracks
9-14 may be held in the county under this article until five years have
9-15 elapsed since the date of the preceding election.
9-16 Sec. 20.14. CONTEST OF ELECTION. (a) Not later than the
9-17 30th day after the date the result of the election is declared, a
9-18 qualified voter of the county may contest the election by filing a
9-19 petition in the district court of the county. A person who is
9-20 licensed or who has made application to the commission to be
9-21 licensed in any capacity under this Act may become a named party to
9-22 the proceedings by pleading to the petition on or before the time
9-23 set for hearing and trial as provided by Subsection (c) of this
9-24 section or thereafter by intervention on leave of court.
9-25 (b) The proceedings in the suit shall be conducted under
9-26 Title 14, Election Code, for contesting an election held for a
9-27 purpose other than the election of an officer or officers. Unless
10-1 otherwise provided by this Act, the applicable Texas Rules of Civil
10-2 Procedure and all applicable statutes govern the proceedings and
10-3 appeals held and conducted under this article.
10-4 (c) At or after the time for hearing and trial, the judge
10-5 shall hear and determine all questions of law and fact in the
10-6 proceedings and may enter orders as to the proceedings that will
10-7 enable the judge to try and determine the questions and to render a
10-8 final judgment with the least possible delay.
10-9 Sec. 20.15. CONTEST OF ELECTION; BOND. At any time before
10-10 the entry of a final judgment in the proceedings, any party may ask
10-11 the court to dismiss the contestant's action unless the contestant
10-12 posts a bond with sufficient surety, approved by the court, payable
10-13 to the movant, for the payment of all damages and costs that may
10-14 accrue by reason of the delay that will be occasioned by the
10-15 continued participation of the contestant in the proceedings in the
10-16 event that the contestant fails to finally prevail and obtain
10-17 substantially the judgment prayed for in the petition. The court
10-18 shall then issue an order directed to the contestant, which order,
10-19 together with a copy of the motion, shall be served on all parties,
10-20 or on their attorney of record, personally or by registered mail,
10-21 requiring the contestant to appear at the time and place, not
10-22 sooner than five or later than 10 days after the date of the
10-23 receipt of the order and motion, as the court may direct, and show
10-24 cause why the motion should not be granted. The maximum bond that
10-25 the court may set is $10,000 for contests of elections for
10-26 racetracks to be located in a county with a population of less than
10-27 1.18 million, according to the most recent federal census. The
11-1 maximum bond that the court may set is $100,000 for contests of
11-2 elections for racetracks to be located in a county with a
11-3 population of 1.18 million or more, according to the most recent
11-4 federal census. Motions with respect to more than one contestant
11-5 may be heard together if so directed by the court. Unless at the
11-6 hearing on the motion the contestant establishes facts that in the
11-7 judgment of the court would entitle the contestant to a temporary
11-8 injunction against the issuance of licenses on the basis of the
11-9 election in question, the court shall grant the motion of the
11-10 movant and in its order the court shall fix the amount of the bond
11-11 to be posted by the contestant in an amount found by the court to
11-12 be sufficient to cover all damages and costs that may accrue by
11-13 reason of the delay that will be occasioned by the continued
11-14 participation of the contestant in the proceedings in the event
11-15 that the contestant fails to finally prevail and obtain
11-16 substantially the judgment prayed for in the petition.
11-17 Sec. 20.16. CONTEST OF ELECTION; APPEAL. Any party to the
11-18 cause who is dissatisfied with an order or judgment entered under
11-19 Section 20.14 of this Act may appeal to the appropriate court of
11-20 appeals after the entry of the order or judgment; otherwise, the
11-21 order or judgment becomes final. If a party does not file an
11-22 appeal on or before the 30th day after the date on which the result
11-23 of the election is declared, it is presumed that the election is
11-24 valid. An appeal has priority over all other cases, causes, or
11-25 matters pending in the court of appeals, except habeas corpus, and
11-26 the court of appeals shall assure the priority and act on the
11-27 matter and render its final order or judgment with the least
12-1 possible delay. The supreme court may review by writ of error or
12-2 other authorized procedure all questions of law arising out of the
12-3 orders and judgments of the court of appeals in the manner, time,
12-4 and form applicable in other civil causes in which a decision of
12-5 the court of appeals is not final. The review has priority over
12-6 all other cases, causes, or matters pending in the supreme court,
12-7 except habeas corpus, and the supreme court shall assure the
12-8 priority and review and act on the matter and render its final
12-9 order or judgment with the least possible delay.
12-10 Sec. 20.17. SUIT TO HAVE PRECEDENCE. The court shall
12-11 accelerate the disposition of any action brought under this
12-12 article.
12-13 Sec. 20.18. CONTESTEE. (a) The county attorney is the
12-14 contestee of a suit brought under Section 20.14 of this Act. If
12-15 there is no county attorney of the county, the criminal district
12-16 attorney or district attorney is the contestee.
12-17 (b) Costs of the election contest may not be adjudged
12-18 against the contestee or against the county, and neither may be
12-19 required to give bond on appeal.
12-20 Sec. 20.19. RESCISSION OF ELECTION. (a) The commissioners
12-21 court of a county that elects to approve the legalization of games
12-22 of skill at racetracks in that county may hold an election on the
12-23 question of rescinding that approval. The court shall order an
12-24 election on the presentation of a petition that requests the
12-25 rescission. The election may not be held earlier than two years
12-26 after the date of the election conducted under Section 20.11 of
12-27 this Act at which the legalization of games of skill at racetracks
13-1 was approved. The petition must meet the requirements imposed
13-2 under this article for a petition to request a local option
13-3 election on the question of the legalization of games of skill at
13-4 racetracks. An election to rescind legalization of games of skill
13-5 at racetracks shall be conducted in the manner provided for the
13-6 original local option election under this article. The ballots
13-7 shall be printed to permit voting for or against the proposition:
13-8 "Rescinding the legalization of games of skill at a horse racetrack
13-9 in ______ County" or "Rescinding the legalization of games of skill
13-10 at a greyhound racetrack in ______ County," as appropriate.
13-11 (b) If the majority of the votes cast in an election under
13-12 this section favor the rescission, games of skill may not be
13-13 conducted at racetracks in that county except as provided by
13-14 Subsection (c) of this section.
13-15 (c) An association located in a county that elects to
13-16 rescind the legalization of games of skill at racetracks and that
13-17 has outstanding long-term liabilities may continue to operate on a
13-18 temporary basis as provided by Section 18.01 of this Act.
13-19 SECTION 2. This Act takes effect September 1, 1997.
13-20 SECTION 3. The importance of this legislation and the
13-21 crowded condition of the calendars in both houses create an
13-22 emergency and an imperative public necessity that the
13-23 constitutional rule requiring bills to be read on three several
13-24 days in each house be suspended, and this rule is hereby suspended.