1-1 AN ACT
1-2 relating to the regulation of racing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3.021, Texas Racing Act (Article 179e,
1-5 Vernon's Texas Civil Statutes), is amended by adding Subsections
1-6 (e), (f), and (g) to read as follows:
1-7 (e) Services or devices offered at racetracks to racetrack
1-8 patrons pursuant to the State Lottery Act (Chapter 466, Government
1-9 Code) or the Bingo Enabling Act (Chapter 2001, Occupations Code)
1-10 are subject to the exclusive administrative jurisdiction of the
1-11 Texas Lottery Commission.
1-12 (f) Services or devices offered at racetracks to racetrack
1-13 patrons for pari-mutuel wagering, entertainment, or amusement
1-14 purposes, including the use of a pari-mutuel ticket as a prize in
1-15 any legal activity conducted at a racetrack, are subject to the
1-16 exclusive administrative jurisdiction of the commission.
1-17 (g) The commission shall regulate all pari-mutuel events
1-18 offered at a racetrack to racetrack patrons.
1-19 SECTION 2. Section 3.07(d), Texas Racing Act (Article 179e,
1-20 Vernon's Texas Civil Statutes), is amended to read as follows:
1-21 (d) Medication or drug testing performed on a race animal
1-22 under this Act shall be conducted by the Texas Veterinary Medical
1-23 Diagnostic Laboratory or by a laboratory operated by or in
1-24 conjunction with or by a private or public agency selected by the
2-1 commission after consultation with the [on a yearly basis by
2-2 competitive bidding submitted to the commission for final approval.
2-3 The commission's decision shall be based on cost and integrity.
2-4 The] Texas Veterinary Medical Diagnostic Laboratory [may aid the
2-5 commission in its selection]. Medication or drug testing performed
2-6 on a human under this Act shall be conducted by a laboratory
2-7 approved by the commission. Charges for services performed under
2-8 this section shall be forwarded to the commission for approval as
2-9 to the reasonableness of the charges for the services. Charges may
2-10 include but are not limited to expenses incurred for travel,
2-11 lodging, testing, and processing of test results. The reasonable
2-12 charges associated with medication or drug testing conducted under
2-13 this Act shall be paid by the association that receives the
2-14 services. The commission shall adopt rules for the procedures for
2-15 approving and paying laboratory charges under this section. The
2-16 commission shall determine if the laboratory drug testing charges
2-17 are [On the approval of the charges as] reasonable, in relation to
2-18 industry standards [for testing charges], by periodically surveying
2-19 the testing charges of comparable laboratories in the United
2-20 States. The [the] commission shall forward a copy of the charges
2-21 to the association that receives the services for immediate
2-22 payment.
2-23 SECTION 3. Article 5, Texas Racing Act (Vernon's Texas Civil
2-24 Statutes), is amended by adding Section 5.06 to read as follows:
2-25 Sec. 5.06. OCCUPATIONAL LICENSEES. Any racetrack that
2-26 conducts a seasonal live race meeting in which there is a period of
2-27 at least six weeks between live meets must, at the completion of
3-1 the live meet:
3-2 (1) terminate the seasonal workforce within 10 days of
3-3 the end of the live meet;
3-4 (2) collect seasonal workforce licensee certificates
3-5 or credentials issued by the commission; and
3-6 (3) provide the commission with a list of all
3-7 terminated licensees within five days of termination.
3-8 SECTION 4. Section 6.08, Texas Racing Act (Article 179e,
3-9 Vernon's Texas Civil Statutes), is amended by amending Subsection
3-10 (i) and adding Subsection (n) to read as follows:
3-11 (i) Ten percent of the total breakage from a live
3-12 pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
3-13 the commission for use by the appropriate state horse breed
3-14 registry, subject to rules promulgated by the commission. The
3-15 appropriate breed registry for Thoroughbred horses is the Texas
3-16 Thoroughbred Breeders Association, for quarter horses is the Texas
3-17 Quarter Horse Association, [for Appaloosa horses is the Texas
3-18 Appaloosa Horse Club,] for Arabian horses is the Texas Arabian
3-19 Breeders Association, and for paint horses is the Texas Paint Horse
3-20 Breeders Association.
3-21 (n) A horse breed registry may by rule restrict the
3-22 eligibility of its horses for accredited Texas-bred awards or purse
3-23 supplements when the horse runs in mixed racing.
3-24 SECTION 5. Article 6, Texas Racing Act, is amended by adding
3-25 Section 6.0915 to read as follows:
3-26 Sec. 6.0915. CROSS-SPECIES SIMULCASTING. (a) To ensure
3-27 cross-species simulcasting adequately supports and enhances the
4-1 live races offered at the racetrack, a racetrack may offer a
4-2 cross-species simulcast only pursuant to an agreement, approved by
4-3 the commission, between the horsemen's organization, the state
4-4 greyhound breed registry, and all racetracks desiring to offer
4-5 cross-species simulcasting. The agreement shall contain provisions
4-6 to address the percentage of revenue from the simulcast that will
4-7 be allocated to horse purses, greyhound purses, and administrative
4-8 costs. The commission may adopt rules specifying other matters to
4-9 be addressed in the agreement. The rules may require the payment
4-10 of any purse allocation to the commission or to one or more
4-11 official breed registry for distribution among the various Texas
4-12 racetracks.
4-13 (b) If the parties to the agreement described in Subsection
4-14 (a) of this section cannot reach an agreement by September 1, 2002,
4-15 any party listed in Subsection (a) of this section may request the
4-16 commission to take jurisdiction over the matter and negotiate an
4-17 agreement between the parties to provide for cross-species
4-18 simulcasting at all racetracks desiring to offer cross-species
4-19 simulcasting.
4-20 (c) An agreement under this section shall provide for an
4-21 amount set by the official state greyhound breed registry, but not
4-22 to exceed 15 percent of the amount set aside for greyhound purses
4-23 under this section from each cross-species simulcast pool, to be
4-24 paid to the registry.
4-25 (d) An agreement under this section shall provide for 0.37
4-26 percent of each cross-species simulcast pool to be paid to the
4-27 state quarter horse breed registry for distribution as quarter
5-1 horse purses at Texas horse racetracks.
5-2 (e) An agreement under this section shall provide for 0.37
5-3 percent of each cross-species simulcast pool to be paid to the
5-4 state Thoroughbred breed registry for distribution as Thoroughbred
5-5 purses at Texas horse racetracks.
5-6 (f) The commission shall adopt rules relating to the
5-7 oversight, collection, and distribution of the amounts allocated
5-8 under Section 6.091 of this Act and this section.
5-9 (g) This section takes effect January 1, 2002.
5-10 SECTION 6. Section 11.011(e), Texas Racing Act (Article
5-11 179e, Vernon's Texas Civil Statutes), is amended to read as
5-12 follows:
5-13 (e) The racetrack where the wager is made is responsible for
5-14 reporting and remitting the state's share of the pari-mutuel pool.
5-15 [If intrastate wagering pools are combined between tracks, the
5-16 track where the race originates is responsible for the state's
5-17 share of the pari-mutuel pool regardless of whether a shortage or
5-18 error occurred at the originating track or receiving track.]
5-19 SECTION 7. Section 6.06(a), Texas Racing Act (Article 179e,
5-20 Vernon's Texas Civil Statutes), is amended to read as follows:
5-21 (a) To preserve and protect the public health, welfare, and
5-22 safety, the commission shall adopt rules relating to license
5-23 applications, the financial responsibility, moral character, and
5-24 ability of applicants, and all matters relating to the planning,
5-25 construction, and operation of racetracks. The commission may
5-26 refuse to issue a racetrack license or may revoke or suspend a
5-27 license if, after notice and hearing, it has reasonable grounds to
6-1 believe and finds that:
6-2 (1) the applicant has been convicted in a court of
6-3 competent jurisdiction of a violation of this Act or any rule
6-4 adopted by the commission or that the applicant has aided, abetted,
6-5 or conspired with any person to commit such a violation;
6-6 (2) the applicant has been convicted of a felony or of
6-7 any crime involving moral turpitude, including convictions for
6-8 which the punishment received was a suspended sentence, probation,
6-9 or a nonadjudicated conviction, that is reasonably related to the
6-10 applicant's present fitness to hold a license under this Act;
6-11 (3) the applicant has violated or has caused to be
6-12 violated this Act or a rule of the commission in a manner that
6-13 involves moral turpitude, as distinguished from a technical
6-14 violation of this Act or of a rule;
6-15 (4) the applicant is unqualified, by experience or
6-16 otherwise, to perform the duties required of a licensee under this
6-17 Act;
6-18 (5) the applicant failed to answer or falsely or
6-19 incorrectly answered a question in an application;
6-20 (6) the applicant fails to disclose the true ownership
6-21 or interest in a greyhound or horse as required by the rules of the
6-22 commission;
6-23 (7) the applicant is indebted to the state for any
6-24 fees or for the payment of a penalty imposed by this Act or by a
6-25 rule of the commission;
6-26 (8) the applicant is not of good moral character or
6-27 the applicant's reputation as a peaceable, law-abiding citizen in
7-1 the community where the applicant resides is bad;
7-2 (9) the applicant has not yet attained the minimum age
7-3 necessary to purchase alcoholic beverages in this state;
7-4 (10) the applicant is in the habit of using alcoholic
7-5 beverages to an excess or uses a controlled substance as defined in
7-6 Chapter 481, Health and Safety Code, or a dangerous drug as defined
7-7 in Chapter 483, Health and Safety Code, or is mentally
7-8 incapacitated;
7-9 (11) the applicant may be excluded from a track
7-10 enclosure under this Act;
7-11 (12) [the applicant has not been a United States
7-12 citizen residing in this state for the period of 10 consecutive
7-13 years immediately preceding the filing of the application;]
7-14 [(13)] the applicant has improperly used a license
7-15 certificate, credential, or identification card issued under this
7-16 Act;
7-17 (13) [(14)] the applicant is residentially domiciled
7-18 with a person whose license has been revoked for cause within the
7-19 12 months immediately preceding the date of the present
7-20 application;
7-21 (14) [(15)] the applicant has failed or refused to
7-22 furnish a true copy of the application to the commission's district
7-23 office in the district in which the premises for which the permit
7-24 is sought are located;
7-25 (15) [(16)] the applicant is engaged or has engaged in
7-26 activities or practices that the commission finds are detrimental
7-27 to the best interests of the public and the sport of greyhound
8-1 racing or horse racing; or
8-2 (16) [(17)] the applicant fails to fully disclose the
8-3 true owners of all interests, beneficial or otherwise, in a
8-4 proposed racetrack facility.
8-5 SECTION 8. Article 11, Texas Racing Act (Article 179e,
8-6 Vernon's Texas Civil Statutes), is amended by adding Section 11.11
8-7 to read as follows:
8-8 Sec. 11.11. SIMULCASTING RESTRICTED TO DESIGNATED PREMISES.
8-9 The commission shall not allow wagering on a simulcast horse or
8-10 greyhound race at more than one location licensed under Section
8-11 6.02 of this Act and within an area defined by Section 6.02(b) of
8-12 this Act.
8-13 SECTION 9. Sections 6.06(c), (d), and (h), and Section 6.16,
8-14 Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
8-15 repealed.
8-16 SECTION 10. Sections 6.091(c)-(j) and 11.011(h)-(j), Texas
8-17 Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
8-18 repealed.
8-19 SECTION 11. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2484 was passed by the House on April
27, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2484 on May 25, 2001, by a non-record
vote; and that the House adopted H.C.R. No. 333 authorizing certain
corrections in H.B. No. 2484 on May 28, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2484 was passed by the Senate, with
amendments, on May 21, 2001, by a viva-voce vote; and that the
Senate adopted H.C.R. No. 333 authorizing certain corrections in
H.B. No. 2484 on May 28, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor