By: Armbrister S.B. No. 1387
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of racing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (d), Section 3.07, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), is amended to read
as follows:
(d) Medication or drug testing performed on a race animal
under this Act shall 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
commission after consultation with the [on a yearly basis by
competitive bidding submitted to the commission for final approval.
The commission's decision shall be based on cost and integrity.
The] Texas Veterinary Medical Diagnostic Laboratory [may aid the
commission in its selection]. Medication or drug testing performed
on a human under this Act shall be conducted by a laboratory
approved by the commission. Charges for services performed under
this section shall be forwarded to the commission for approval as to
the reasonableness of the charges for the services. Charges may
include but are not limited to expenses incurred for travel,
lodging, testing, and processing of test results. The reasonable
charges associated with medication or drug testing conducted under
this Act shall be paid by the association that receives the
services. The commission shall adopt rules for the procedures for
approving and paying laboratory charges under this section. The
commission shall determine if the laboratory drug-testing charges
are [On the approval of the charges as] reasonable, in relation to
industry standards [for testing charges], by periodically
surveying the testing charges of comparable laboratories in the
United States. The [the] commission shall forward a copy of the
charges to the association that receives the services for immediate
payment.
SECTION 2. Subsection (a), Section 3.08, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), is amended to read
as follows:
(a) Except as provided by Subsection (b) of this section, a
final decision of the stewards or judges may be appealed to the
commission in the manner provided for a contested case under
Chapter 2001, Government Code [the Administrative Procedure and
Texas Register Act (Article 6252-13a, Vernon's Texas Civil
Statutes)]. A decision appealed under this section shall be
reviewed under the substantial evidence rule.
SECTION 3. Article 5, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 5.06
to read as follows:
Sec. 5.06. OCCUPATIONAL LICENSEES. 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:
(1) terminate the seasonal workforce within 10 days of
the end of the live meet;
(2) collect seasonal workforce licensee certificates
or credentials issued by the commission; and
(3) provide the commission with a list of all
terminated licensees within five days of termination.
SECTION 4. Section 6.08, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subsection
(i) and adding Subsection (o) to read as follows:
(i) Ten percent of the total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
the commission for use by the appropriate state horse breed
registry, subject to rules promulgated by the commission. The
appropriate breed registry for Thoroughbred horses is the Texas
Thoroughbred Breeders Association, for quarter horses is the Texas
Quarter Horse Association, [for Appaloosa horses is the Texas
Appaloosa Horse Club,] for Arabian horses is the Texas Arabian
Breeders Association, and for paint horses is the Texas Paint Horse
Breeders Association.
(o) A horse breed registry may by rule restrict the
eligibility of its horses for accredited Texas-bred awards or purse
supplements when the horse runs in mixed racing.
SECTION 5. Article 6, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 6.0915
to read as follows:
Sec. 6.0915. CROSS-SPECIES SIMULCASTING. (a) To ensure
cross-species simulcasting adequately supports and enhances the
live races offered at the racetrack, a racetrack may offer a
cross-species simulcast only pursuant to an agreement, approved by
the commission, between the horsemen's organization, the state
greyhound breed registry, and all racetracks desiring to offer
cross-species simulcasting. The agreement shall contain
provisions to address the percentage of revenue from the simulcast
that will be allocated to horse purses, greyhound purses, and
administrative costs. The commission may adopt rules specifying
other matters to be addressed in the agreement. The rules may
require the payment of any purse allocation to the commission or to
one or more official breed registries for distribution among the
various Texas racetracks.
(b) If the parties to the agreement described in Subsection
(a) of this section cannot reach an agreement by September 1, 2004,
any party listed in Subsection (a) of this section may request the
commission 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.
(c) An agreement under this section shall 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
under this section from each cross-species simulcast pool, to be
paid to the registry.
(d) An agreement under this section shall provide for 0.37
percent of each cross-species simulcast pool at a horse racetrack
to be paid to the state quarter horse breed registry for
distribution as quarter horse purses at Texas horse racetracks.
(e) An agreement under this section shall provide for 0.37
percent of each cross-species simulcast pool at a horse racetrack
to be paid to the state Thoroughbred breed registry for
distribution as Thoroughbred purses at Texas horse racetracks.
(f) The commission shall adopt rules relating to the
oversight, collection, and distribution of the amounts allocated
under Section 6.091 of this Act and this section.
(g) This section takes effect January 1, 2004.
SECTION 6. Subsection (a), Section 6.06, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), is amended to read
as follows:
(a) To preserve and protect the public health, welfare, and
safety, the commission shall adopt rules relating to license
applications, the financial responsibility, moral character, and
ability of applicants, and all matters relating to the planning,
construction, and operation of racetracks. The commission may
refuse to issue a racetrack license or may revoke or suspend a
license if, after notice and hearing, it has reasonable grounds to
believe and finds that:
(1) the applicant has been convicted in a court of
competent jurisdiction of a violation of this Act or any rule
adopted by the commission or that the applicant has aided, abetted,
or conspired with any person to commit such a violation;
(2) the applicant has been convicted of a felony or of
any crime involving moral turpitude, including convictions for
which the punishment received was a suspended sentence, probation,
or a nonadjudicated conviction, that is reasonably related to the
applicant's present fitness to hold a license under this Act;
(3) the applicant has violated or has caused to be
violated this Act or a rule of the commission in a manner that
involves moral turpitude, as distinguished from a technical
violation of this Act or of a rule;
(4) the applicant is unqualified, by experience or
otherwise, to perform the duties required of a licensee under this
Act;
(5) the applicant failed to answer or falsely or
incorrectly answered a question in an application;
(6) the applicant fails to disclose the true ownership
or interest in a greyhound or horse as required by the rules of the
commission;
(7) the applicant is indebted to the state for any fees
or for the payment of a penalty imposed by this Act or by a rule of
the commission;
(8) the applicant is not of good moral character or the
applicant's reputation as a peaceable, law-abiding citizen in the
community where the applicant resides is bad;
(9) the applicant has not yet attained the minimum age
necessary to purchase alcoholic beverages in this state;
(10) the applicant is in the habit of using alcoholic
beverages to an excess or uses a controlled substance as defined in
Chapter 481, Health and Safety Code, or a dangerous drug as defined
in Chapter 483, Health and Safety Code, or is mentally
incapacitated;
(11) the applicant may be excluded from a track
enclosure under this Act;
(12) [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;
[(13)] the applicant has improperly used a license
certificate, credential, or identification card issued under this
Act;
(13) [(14)] the applicant is residentially domiciled
with a person whose license has been revoked for cause within the 12
months immediately preceding the date of the present application;
(14) [(15)] the applicant has failed or refused to
furnish a true copy of the application to the commission's district
office in the district in which the premises for which the permit is
sought are located;
(15) [(16)] the applicant is engaged or has engaged in
activities or practices that the commission finds are detrimental
to the best interests of the public and the sport of greyhound
racing or horse racing; or
(16) [(17)] the applicant fails to fully disclose the
true owners of all interests, beneficial or otherwise, in a
proposed racetrack facility.
SECTION 7. Article 11, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 11.11
to read as follows:
Sec. 11.11. SIMULCASTING RESTRICTED TO DESIGNATED
PREMISES. The commission shall not allow wagering on a simulcast
horse or greyhound race at more than one location licensed under
Section 6.02 of this Act and within an area defined by Section
6.02(b) of this Act.
SECTION 8. Subsections (c), (d), and (h), Section 6.06, and
Section 6.16, Texas Racing Act (Article 179e, Vernon's Texas Civil
Statutes), are repealed.
SECTION 9. Subsections (c) through (j), Section 6.091, and
Subsections (h), (i), and (j), Section 11.011, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are repealed.
SECTION 10. This Act takes effect September 1, 2003.