81R10873 PMO-F
  By: Lucio III H.B. No. 4640
  relating to regulation of pari-mutuel racing.
         SECTION 1.  Section 1.03(44), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
               (44)  "Combination" means a combination of races,
  including a combination of one or more races conducted by one or
  more racetracks in different racing jurisdictions.
         SECTION 2.  Section 6.06(a), 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
               (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
               (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
               (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
               (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 3.  Section 6.091(e), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
         (e)  The purse set aside under Subsection (c)(4) of this
  section shall be deposited into an escrow account in the registry of
  the commission. Any horse racetrack association in this state may
  apply to the commission for receipt of all or part of the escrowed
  purse account for use as purses. The commission shall determine to
  which horse racetracks the escrowed purse account shall be
  allocated and in what percentages, taking into consideration:
               (1)  purse levels, racing opportunities, and the
  financial status of the requesting racetrack; or
               (2)  a written agreement executed by the horse
  racetracks. [The first distribution of the escrowed purse account
  allocated to a racetrack under this section may not be made before
  October 1, 1998.]
         SECTION 4.  Section 7.02(a), Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (a)  Each person [, other than a spectator or person placing
  a wager,] involved in any capacity with racing with pari-mutuel
  wagering under this Act must obtain a license under this article,
               (1)  a spectator;
               (2)  a person placing a wager; or
               (3)  a person who acts only as a concessionaire.
         SECTION 5.  Section 8.01, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 8.01.  ALLOCATION.  (a) The commission:
               (1)  shall allocate the live and simulcast racing days
  for the conduct of live and simulcast racing at each racetrack
  licensed under this Act;
               (2)  may reallocate a race date from one racetrack to
  another racetrack; and
               (3)  shall adopt rules governing the transfer of purse
  funds to a racetrack to which the commission reallocates a race date
  under Subdivision (2) of this subsection.
         (b)  Each racetrack shall accord reasonable access to races
  for all breeds of horses as determined by the racetrack through
  negotiations with the representative state breed registry with the
  final approval of the commission.  In granting approval, the
  commission shall consider the factors of availability of
  competitive horses, economic feasibility, and public interest.
         (c)  In allocating race dates under this section, the
  commission shall consider live race dates separately from simulcast
  race dates.
         (d)  The commission may prohibit Sunday racing unless the
  prohibition would conflict with another provision of this Act.
         SECTION 6.  Sections 6.06(c) and (d), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are repealed.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.