HBA-DMH H.B. 2484 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2484
By: Wilson
Licensing & Administrative Procedures
8/7/2001
Enrolled



BACKGROUND AND PURPOSE 

The Texas Racing Commission (TRC) is responsible for ensuring fair wagering
and safe racing and for helping the racing industry grow as an asset to the
state's economy. TRC was continued by the legislature under recommendation
from the Sunset Advisory Commission on September 1, 1997.  House Bill 2484
modifies language relating to breed registry, new racetrack locations, and
tax collection to clarify changes made in 1997.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Racing Commission in SECTION
5 (Section 6.0915, Article 179e, V.T.C.S.) of this bill. 

ANALYSIS

House Bill 2484 amends the Texas Racing Act to require the Texas Racing
Commission (TRC) to regulate all pari-mutuel events offered at a racetrack
to racetrack patrons. The bill specifies which agency or organization has
exclusive administrative jurisdiction over services or devices offered at
racetracks to racetrack patrons pursuant to the State Lottery Act, the
Bingo Enabling Act, or the Texas Racing Act (Sec. 3.021, Art. 179e,
V.T.C.S.).  

The bill requires medication or drug testing performed on a race animal to
be conducted by the Texas Veterinary Medical Diagnostic Laboratory or by a
laboratory operated by or in conjunction with or by a private or public
agency selected by the TRC after consultation with the Texas Veterinary
Medical Diagnostic Laboratory, rather than by a laboratory selected by TRC
on a yearly basis by competitive bidding.  The bill requires TRC to
determine if the laboratory drug testing charges are reasonable, in
relation to industry standards, by periodically surveying the testing
charges of comparable laboratories in the United States (Sec. 3.07,
Art.179e, V.T.C.S.). 

The bill specifies that any racetrack that conducts a seasonal live race
meeting in which there is a period of at least six weeks between live meets
must, at the completion of the live meet:  

_terminate the seasonal workforce within 10 days of the end of the live
meet;  

_collect seasonal workforce licensee certificates or credentials issued by
TRC; and 

_provide TRC with a list of all terminated licensees within five days of
termination (Sec 5.06, Art. 179e, V.T.C.S.). 

The bill authorizes a racetrack to offer a cross-species simulcast only
pursuant to an agreement, approved by TRC, between the horsemen's
organization, the state greyhound breed registry, and all racetracks
desiring to offer cross-species simulcasting. The bill requires the
agreement to contain certain revenue provisions and authorizes TRC to adopt
rules specifying other matters to be addressed in the agreement. The rules
may require the payment of any purse allocation to TRC or to one or more
official breed  registries for distribution among the various Texas
racetracks. If the parties to the agreement cannot reach an agreement by
September 1, 2002, the bill authorizes any party to the agreement to
request TRC to take jurisdiction over the matter and negotiate an agreement
between the parties to provide for cross-species simulcasting at all
racetracks desiring to offer cross-species simulcasting.  The bill requires
the agreement to provide for an amount set by the official state greyhound
breed registry, but not to exceed 15 percent of the amount set aside for
greyhound purses from each cross-species simulcast pool, to be paid to the
registry.  The bill requires the agreement to provide for 0.37 percent of
each cross-species simulcast pool to be paid to the state quarter horse
breed registry for distribution as quarter horse purses at Texas horse
racetracks. The bill also requires the agreement to provide for 0.37
percent of each cross-species simulcast pool to be paid to the state
Thoroughbred breed registry for distribution as Thoroughbred purses at
Texas horse racetracks. The bill requires TRC to adopt rules relating to
the oversight, collection, and distribution of the amounts allocated in
cross-species simulcasting.   These provisions take effect January 1, 2002
(Sec. 6.0915, Art 179e, V.T.C.S.).  The bill provides that the racetrack
where the wager is made is responsible for reporting and remitting the
state's share of the pari-mutuel pool (Sec. 11.011, Art. 179e, V.T.C.S.). 

The bill deletes the provision authorizing TRC  to refuse, revoke, or
suspend a racetrack license if the applicant has not been a United States
citizen residing in this state for the period of 10 consecutive years
immediately preceding the filing of the application (Sec. 6.06, Art. 179e,
V.T.C.S.).  The bill authorizes a horse breed registry by rule to restrict
the eligibility of its horses for accredited Texas-bred awards or purse
supplements when the horse runs in mixed racing (Sec. 6.08, Art. 179e,
V.T.C.S.).  The bill prohibits TRC from allowing wagering on a simulcast
horse or greyhound race at more than one location licensed within a
specified area (Sec. 11.11, Art 179e, V.T.C.S.). 

The bill repeals law relating to the employment of former commission
members and employees, racetrack license requirements for residency and
operation, and  racetrack ownership.  The bill also repeals law relating to
racetrack simulcast agreements (Secs. 6.091, 6.16, and 11.011, Art. 179e,
V.T.C.S.). 

EFFECTIVE DATE

Vetoed.