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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation and functions of the Texas Racing |
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Commission, the abolishment of the Equine Research Account Advisory |
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Committee, and the authority of Texas AgriLife Research. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2.071, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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Sec. 2.071. CONFLICT OF INTEREST. (a) A person may not be |
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a member of the commission and may not be a commission employee |
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employed in a "bona fide executive, administrative, or professional |
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capacity," as that phrase is used for purposes of establishing an |
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exemption to the overtime provisions of the federal Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if: |
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(1) the person is an [An] officer, employee, or paid |
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consultant of a Texas trade association in the field of horse or |
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greyhound racing or breeding; or |
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(2) the person's [may not be a member of the commission
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or an employee of the commission who is exempt from the state's
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position classification plan or is compensated at or above the
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amount prescribed by the General Appropriations Act for step 1,
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salary group 17, of the position classification salary schedule.
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[(b) A person who is the] spouse is [of] an officer, |
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manager, or paid consultant of a Texas trade association in the |
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field of horse or greyhound racing or breeding [may not be a member
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of the commission and may not be an employee of the commission who
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is exempt from the state's position classification plan or is
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compensated at or above the amount prescribed by the General
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Appropriations Act for step 1, salary group 17, of the position
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classification salary schedule]. |
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(b) A person may not be a member of the commission or act as |
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the general counsel to the commission if the person is required to |
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register as a lobbyist under Chapter 305, Government Code, because |
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of the person's activities for compensation on behalf of a |
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profession related to the operation of the commission. |
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(c) In [For the purposes of] this section, "Texas trade |
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association" means [a Texas trade association is] a cooperative and |
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voluntarily joined statewide [nonprofit] association of business |
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or professional competitors in this state designed to assist its |
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members and its industry or profession in dealing with mutual |
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business or professional problems and in promoting their common |
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interest. |
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SECTION 2. Article 2, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 2.25 |
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to read as follows: |
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Sec. 2.25. USE OF TECHNOLOGY. The commission shall |
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implement a policy requiring the commission to use appropriate |
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technological solutions to improve the commission's ability to |
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perform its functions. The policy must ensure that the public is |
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able to interact with the commission on the Internet. |
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SECTION 3. Article 2, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 2.26 |
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to read as follows: |
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Sec. 2.26. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE |
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RESOLUTION PROCEDURES. (a) The commission shall develop and |
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implement a policy to encourage the use of: |
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(1) negotiated rulemaking procedures under Chapter |
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2008, Government Code, for the adoption of commission rules; and |
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(2) appropriate alternative dispute resolution |
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procedures under Chapter 2009, Government Code, to assist in the |
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resolution of internal and external disputes under the commission's |
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jurisdiction. |
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(b) The commission's procedures relating to alternative |
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dispute resolution shall conform, to the extent possible, to any |
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model guidelines issued by the State Office of Administrative |
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Hearings for the use of alternative dispute resolution by state |
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agencies. |
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(c) The commission shall designate a trained person to: |
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(1) coordinate the implementation of the policy |
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adopted under Subsection (a) of this section; |
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(2) serve as a resource for any training needed to |
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implement the procedures for negotiated rulemaking or alternative |
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dispute resolution; and |
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(3) collect data concerning the effectiveness of those |
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procedures, as implemented by the commission. |
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SECTION 4. Section 3.07(e), Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(e) To pay the charges associated with the medication or |
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drug testing, an association may use the money held by the |
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association to pay outstanding tickets and pari-mutuel vouchers. |
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If additional amounts are needed to pay the charges, the |
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association shall pay those additional amounts. [If the amount
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held exceeds the amount needed to pay the charges, the association
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shall pay the excess to the commission in accordance with Section
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11.08 of this Act.] |
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SECTION 5. Sections 5.03(a) and (c), Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes), are amended to read |
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as follows: |
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(a) An applicant for any license or license renewal under |
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this Act must, except as allowed under Section 7.10 of this Act, |
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submit to the commission a complete set of fingerprints of the |
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individual natural person applying for the license or license |
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renewal or, if the applicant is not an individual natural person, a |
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complete set of fingerprints of each officer or director and of each |
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person owning an interest of at least five percent in the applicant. |
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The Department of Public Safety may request any person owning any |
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interest in an applicant for a racetrack license to submit a |
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complete set of fingerprints. |
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(c) A peace officer of this or any other state, or any |
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district office of the commission, shall take the fingerprints of |
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an applicant for a license or license renewal on forms approved and |
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furnished by the Department of Public Safety and shall immediately |
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deliver them to the commission. |
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SECTION 6. Article 6, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 6.032 |
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to read as follows: |
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Sec. 6.032. BOND. (a) The commission may require a holder |
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of a racetrack license or an applicant for a racetrack license to |
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post security in an amount determined by commission rule to |
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adequately ensure the license holder's or applicant's compliance |
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with this Act and commission rules. |
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(b) Cash, cashier's checks, surety bonds, irrevocable bank |
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letters of credit, United States Treasury bonds that are readily |
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convertible to cash, or irrevocable assignments of federally |
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insured deposits in banks, savings and loan institutions, and |
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credit unions are acceptable as security for purposes of this |
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section. The security must be: |
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(1) conditioned on compliance with this Act and |
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commission rules adopted under this Act; and |
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(2) returned after the conditions of the security are |
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met. |
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SECTION 7. The heading to Section 6.04, Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes), is amended to read |
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as follows: |
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Sec. 6.04. ISSUANCE OF LICENSE[; BOND]. |
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SECTION 8. Article 6, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 6.0601 |
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to read as follows: |
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Sec. 6.0601. LICENSE REVIEW AND RENEWAL; FEES. (a) The |
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commission by rule shall establish a renewal and review process for |
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racetrack licenses issued under this article. |
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(b) The commission shall review each racetrack license |
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designated by the commission as active not less than once every five |
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years, except as otherwise provided by this section. |
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(c) The commission shall annually review a racetrack |
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license designated by the commission as inactive. |
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(d) The commission by rule may adopt a system under which |
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racetrack licenses expire on various dates in a year or in various |
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years. For the year in which the license expiration date is |
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changed, license fees shall be prorated on a monthly basis so that |
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each license holder pays only that portion of the license fee |
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allocable to the number of months during which the license is valid. |
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On renewal of the license on the new expiration date, the total |
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license renewal fee is payable. |
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(e) The commission may require a license holder who is |
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renewing a racetrack license or who is subject to commission review |
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of the racetrack license to provide any information that would be |
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required to be provided in connection with an original license |
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application under this Act. |
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(f) In reviewing a racetrack license or in determining |
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whether to renew a racetrack license, the commission shall |
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consider: |
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(1) the license holder's financial stability and |
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ability to conduct live racing events; and |
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(2) other factors considered in the issuance of the |
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initial license. |
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(g) The commission may refuse to renew a racetrack license |
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or may revoke a license if, after notice and a hearing, the |
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commission determines under Subsection (f) of this section that |
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allowing the license holder to hold the racetrack license is not in |
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the best interests of the racing industry or the public. |
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(h) The commission may refuse to renew a racetrack license |
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or may revoke a license if, after notice and hearing, the commission |
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finds that the applicant has violated this Act or a commission rule. |
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(i) The commission shall set and collect renewal and review |
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fees in amounts reasonable and necessary to cover the costs of |
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administering and enforcing this Act. |
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(j) The commission shall consult with members of the racing |
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industry and other key stakeholders in developing the racetrack |
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license renewal and review process under this section. |
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SECTION 9. Article 6, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 6.0602 |
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to read as follows: |
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Sec. 6.0602. DISCIPLINARY ACTION. (a) The commission by |
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rule shall establish procedures for disciplinary action against a |
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racetrack license holder. |
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(b) If, after notice and hearing, the commission finds that |
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a racetrack license holder or a person employed by the racetrack has |
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violated this Act or a commission rule or if the commission finds |
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during a review or renewal that the racetrack is ineligible for a |
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license under this article, the commission may: |
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(1) revoke, suspend, or refuse to renew the racetrack |
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license; |
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(2) impose an administrative penalty as provided under |
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Section 15.03 of this Act; or |
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(3) take any other action as provided by commission |
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rule. |
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SECTION 10. The heading to Section 6.18, Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes), is amended to read |
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as follows: |
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Sec. 6.18. ANNUAL FEE FOR RACETRACK [TERM OF] LICENSE[;
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RESTRICTIONS ON RACETRACKS]. |
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SECTION 11. Section 6.18(b), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
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follows: |
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(b) The commission may prescribe a reasonable annual fee to |
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be paid by each racetrack licensee. The fee must be in an amount |
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sufficient to provide that the total amount of fees imposed under |
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this section, together with the license fees prescribed under |
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Section 5.01(b) of this Act and the renewal and review fees |
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prescribed under Section 6.0601(i) of this Act, is sufficient to |
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pay the costs of administering and enforcing this Act. |
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SECTION 12. Section 7.01, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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Sec. 7.01. LICENSE REQUIRED. (a) Except as provided by |
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this section, a [A] person may not participate in racing with |
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pari-mutuel wagering other than as a spectator or as a person |
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placing a wager without first obtaining a license from the |
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commission. A person may not engage in any occupation for which |
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commission rules require a license under this Act without first |
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obtaining a license from the commission. |
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(b) The commission by rule shall categorize the occupations |
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of racetrack employees and determine the occupations that afford |
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the employee an opportunity to influence racing with pari-mutuel |
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wagering. The rules must require the following employees to be |
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licensed under this Act: |
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(1) an employee who works in an occupation determined |
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by the commission to afford the employee an opportunity to |
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influence racing with pari-mutuel wagering; or |
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(2) an employee who will likely have significant |
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access to the backside of a racetrack or to restricted areas of the |
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frontside of a racetrack. |
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(c) A racetrack licensed under this Act is responsible for |
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ensuring that its employees comply with this Act and commission |
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rules. The commission may impose disciplinary action against a |
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licensed racetrack for violations of this Act and commission rules |
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by its employees as provided by Section 6.0602 of this article. |
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SECTION 13. Section 7.07, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subsection |
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(a) and adding Subsection (a-1) to read as follows: |
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(a) A license issued under this article is valid for a |
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period set by the commission not to exceed 36 months following the |
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date of its issuance. It is renewable on application, satisfactory |
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results of a criminal history information record check, and payment |
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of the fee in accordance with the rules of the commission. |
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(a-1) The commission shall obtain criminal history record |
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information on each applicant renewing an occupational license |
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under this article. |
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SECTION 14. Section 11.01, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subsection |
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(a) and adding Subsection (a-1) to read as follows: |
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(a) The commission shall adopt rules to regulate wagering on |
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greyhound races and horse races under the system known as |
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pari-mutuel wagering. Wagering may be conducted only by an |
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association within its enclosure. A person may not accept, in |
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person, by telephone, or over the Internet, a wager for a horse race |
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or greyhound race conducted inside or outside this state from a |
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person in this state unless the wager is authorized under this Act. |
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(a-1) The commission may commission as many investigators |
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as the commission determines necessary to enforce this Act and the |
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rules of the commission. Each investigator shall take the |
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constitutional oath of office and file it with the commission. Each |
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commissioned investigator has the powers of a peace officer. |
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SECTION 15. Sections 11.04(a) and (c), Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes), are amended to read |
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as follows: |
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(a) Only a person inside the enclosure where both live and |
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simulcast race meetings are authorized may wager on the result of a |
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live or simulcast race presented by the association in accordance |
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with commission rules. Except as provided by this section, a person |
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may not place, in person, by telephone, or over the Internet, a |
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wager for a horse race or greyhound race conducted inside or outside |
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this state. The commission shall adopt rules to prohibit wagering |
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by employees of the commission and to regulate wagering by persons |
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licensed under this Act. |
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(c) The commission shall adopt rules prohibiting an |
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association from accepting a wager made on credit and shall adopt |
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rules providing for the use of automatic banking machines within |
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the enclosure. The commission shall limit the use of an automatic |
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banking machine to [:
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[(1)] allow a person to have access to only the |
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person's checking account at a bank or other financial |
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institution[; and
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[(2) deliver no more than $200]. |
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SECTION 16. Section 11.05, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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Sec. 11.05. UNLAWFUL WAGERING. A person shall not wager on |
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the result of a greyhound race or horse race in this state except as |
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permitted by this Act. A person who is not an association under |
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this Act may not accept from a Texas resident while the resident is |
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in this state a wager on the result of a greyhound race or horse race |
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conducted inside or outside this state. |
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SECTION 17. Section 18.01(a), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
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follows: |
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(a) The Texas Racing Commission is subject to Chapter 325, |
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Government Code (Texas Sunset Act). Unless continued in existence |
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as provided by that chapter, and except as provided by Subsections |
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(b) and (c) of this section, the commission is abolished and this |
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Act expires September 1, 2015 [2009]. |
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SECTION 18. Section 88.521(2), Education Code, is amended |
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to read as follows: |
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(2) "Director" means the executive director of Texas |
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AgriLife Research, formerly known as the Texas Agricultural |
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Experiment Station. |
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SECTION 19. Sections 88.522(b), (f), and (g), Education |
|
Code, are amended to read as follows: |
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(b) The director shall administer the account through |
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established procedures of Texas AgriLife Research, formerly known |
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as the Texas Agricultural Experiment Station. |
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(f) Not more than 10 percent of the account may be spent each |
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year on the cost incurred in the operation or administration of the |
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[advisory committee or] account. |
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(g) All money received by [the advisory committee or] the |
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account under this chapter is subject to Subchapter F, Chapter 404, |
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Government Code. |
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SECTION 20. Section 88.525, Education Code, is amended by |
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adding Subsections (a-1) and (b-1) and amending Subsection (b) to |
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read as follows: |
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(a-1) In awarding grants under this section, the director |
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shall comply with the conflict of interest provisions of The Texas |
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A&M University System. |
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(b) The [With the advice of the advisory committee, the] |
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director shall develop annually a request for proposals for equine |
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research grants. Each proposal received may [must] be evaluated by |
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a peer review committee appointed by the director and subject |
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matter experts as necessary to evaluate the proposal. The peer |
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review committee shall consider the applicant's research capacity |
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and the relevance and scientific merit of the proposal and make |
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recommendations to the director. |
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(b-1) The director may award a grant to an applicant who |
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proposes to commingle grant money awarded under this section with |
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other sources of funding or proposes to conduct research that |
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includes equine research. |
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SECTION 21. Section 88.526(a), Education Code, is amended |
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to read as follows: |
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(a) The director shall prepare an annual report on equine |
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research funded under this subchapter. The director shall |
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distribute the report to the Texas Racing Commission and [the] |
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members of the Texas horse racing industry [advisory committee]. |
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The director shall make copies of the report available to |
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interested parties. |
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SECTION 22. Section 88.527, Education Code, is amended to |
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read as follows: |
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Sec. 88.527. CONFERENCE. Texas AgriLife Research [The
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Texas Agricultural Extension Service] shall conduct an annual |
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conference on equine research. Money from the equine research |
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account shall be used to defray the costs of the conference. The |
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conference must be designed to bring to the attention of the Texas |
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horse racing industry the latest research results and technological |
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developments in equine research. The director shall make the |
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report created under Section 88.526 available at the conference. |
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SECTION 23. The following sections of the Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes) are repealed: |
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(1) Section 2.072; |
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(2) Section 6.04(b); |
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(3) Section 6.06(k); |
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(4) Section 6.18(a); and |
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(5) Section 7.02(a). |
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SECTION 24. The following sections of the Education Code |
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are repealed: |
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(1) Section 88.521(1); |
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(2) Section 88.523; |
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(3) Section 88.5231; |
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(4) Section 88.5232; |
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(5) Section 88.524; |
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(6) Section 88.5245; and |
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(7) Section 88.525(c). |
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SECTION 25. (a) Not later than January 1, 2010, the Texas |
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Racing Commission shall determine the expiration date of each |
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license issued under the Texas Racing Act (Article 179e, Vernon's |
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Texas Civil Statutes). |
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(b) Not later than September 1, 2010, the Texas Racing |
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Commission shall complete a review of each inactive racetrack |
|
license as required by Section 6.0601, Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), as added by this Act. |
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(c) Notwithstanding Section 6.0601, Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes), as added by this |
|
Act, the Texas Racing Commission shall conduct the initial review |
|
of a racetrack license issued on or after January 1, 2007, by the |
|
later of September 1, 2011, or the second anniversary of the date of |
|
issuance. |
|
(d) The Texas Racing Commission may adjust license renewal |
|
and review fees pursuant to the commission's authority to adjust |
|
fees under Section 5.01, Texas Racing Act (Article 179e, Vernon's |
|
Texas Civil Statutes), and Section 6.0601, Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes), as added by this |
|
Act, to recover any money lost by the change in law made by this Act |
|
to Section 3.07(e), Texas Racing Act (Article 179e, Vernon's Texas |
|
Civil Statutes). |
|
(e) As soon as practicable, the executive director of Texas |
|
AgriLife Research shall submit a report to the Texas Racing |
|
Commission as required by Section 88.526, Education Code, as |
|
amended by this Act. |
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SECTION 26. This Act takes effect September 1, 2009. |