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A BILL TO BE ENTITLED
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AN ACT
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relating to the authorization of racetrack extension locations, |
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providing rulemaking authority to the commission and comptroller, |
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and providing for administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. All provisions in Sections - through - below are |
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subject to the following restrictions and limitations: |
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(a) No new forms of gambling. All other portions of this Act |
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notwithstanding, all forms of gambling which were illegal on |
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December 31, 2102, shall remain illegal and prohibited. |
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(b) No new racetrack licenses created. All other portions of |
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this Act notwithstanding, all laws, regulations, conditions, |
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licensing and other restrictions and limitations which were in |
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place on December 31, 2012 relating to the number of racetracks |
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shall remain in full force and effect. |
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(c) No new racetrack locations authorized. All other |
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portions of this Act notwithstanding, all laws, regulations, |
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conditions, licensing and other restrictions and limitations which |
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were in place on December 31, 2012 relating to the locations of |
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racetracks shall remain in full force and effect. |
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(d) No authorization of new counties for pari-mutuel |
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wagering. All other portions of this Act notwithstanding, all laws, |
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regulations, legal prohibitions, and other restrictions and |
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limitations which were in place on December 31, 2012 relating to the |
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counties in which pari-mutuel wagering may not occur shall remain |
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in full force and effect. |
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SECTION 2. Section 1.03, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivisions |
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(17) and (64) and by adding Subdivisions (82), (83) and (84) to read |
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as follows: |
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(17) "Enclosure" means all areas of a racing |
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association's grounds which are contiguous with the surface upon |
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which live racing is conducted, including the parking area, to |
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which admission ordinarily can be obtained only on payment of an |
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admission fee or presentation of official credentials. |
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(64) "Receiving location" means a licensed racetrack |
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association in this state that has been allocated live and |
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simulcast race dates or a racetrack extension in this state or a |
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facility not located in this state that is authorized to conduct |
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wagering under the law of the jurisdiction in which it is located. |
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(82) An "extension" means a facility that is not |
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physically contiguous with an association's enclosure. |
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(83) With respect to an extension, "recorded" means |
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filed with the commission and not rejected by the commission. |
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(84) "Racetrack extension" means a facility located at |
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a recorded extension and operated by an association for the purpose |
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of presenting races for pari-mutuel wagering by simulcast. |
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SECTION 3. Section 6.091, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivision |
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(a) to read as follows: |
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(a) An association shall distribute from the total amount |
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deducted as provided by Sections 6.08(a) and 6.09(a) of this Act |
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from each simulcast pari-mutuel pool and each simulcast |
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cross-species pool and each simulcast racetrack extension pool the |
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following shares: |
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(1) an amount equal to one percent of each simulcast |
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pool as the amount set aside for the state; |
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(2) an amount equal to 1.25 percent of each simulcast |
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cross-species pool as the amount set aside for the state; |
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(3) if the association is a horse racing association, |
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an amount equal to one percent of a multiple two wagering pool or |
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multiple three wagering pool as the amount set aside for the |
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Texas-bred program to be used as provided by Section 6.08(f) of this |
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Act; |
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(4) if the association is a greyhound association, an |
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amount equal to one percent of a multiple two wagering pool or a |
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multiple three wagering pool as the amount set aside for the |
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Texas-bred program for greyhound races, to be distributed and used |
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in accordance with rules of the commission adopted to promote |
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greyhound breeding in this state; and |
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(5) the remainder as the amount set aside for purses, |
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expenses, the sending association, and the receiving location |
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pursuant to a contract approved by the commission between the |
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sending association and the receiving location. |
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SECTION 4. Section 11.01, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivision |
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(a) 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 or at a racetrack extension. A |
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person may not accept, in person, by telephone, or over the |
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Internet, a wager for a horse race or greyhound race conducted |
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inside or outside this state from a person in this state unless the |
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wager is authorized under this Act. |
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SECTION 5. Section 11.011, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivision |
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(f) to read as follows: |
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(f) Nothing in this Act is to be construed to allow wagering |
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in Texas on simulcast races at any location other than a racetrack |
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extension or a racetrack licensed under this Act that has been |
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granted live race dates by the commission. |
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SECTION 6. Section 11.04, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivision |
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(a) to read as follows: |
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(a) Only a person inside a racetrack extension or the |
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enclosure where both live and simulcast race meetings are |
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authorized may wager on the result of a live or simulcast race |
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presented by the association in accordance with commission rules. |
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Except as provided by this section, a person may not place, 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. The |
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commission shall adopt rules to prohibit wagering by employees of |
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the commission and to regulate wagering by persons licensed under |
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this Act. |
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SECTION 7. The Texas Racing Act (Article 179e, Vernon's |
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Texas Civil Statutes), is amended by adding Article 11A to read as |
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follows: |
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Article 11A. Racetrack Extensions |
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Section 11A.01. Subject to the conditions, restrictions, |
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licensing requirements, and oversight authority set forth in this |
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Act, an association may operate a racetrack extension. Racetrack |
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extensions are authorized for the purpose of increasing purse money |
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and increasing the number of live racing days. |
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Section 11A.02. Regulatory authority. The powers and |
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duties of the commission and the powers and duties of the |
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comptroller regarding the operation of a racetrack extension shall |
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be identical to those for operations occurring within the |
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association's enclosure. The commission and the comptroller, in |
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addition to other powers granted by this Act, shall have the |
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authority to adopt regulations relating to the operation of |
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racetrack extensions, provided however that the association's |
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obligations for licensing, reporting, handling of simulcast |
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operations, and handling of simulcast wagers shall be at least as |
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stringent as those in place for operations within the enclosure. |
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Section 11A.03. Regulatory action and penalties. The |
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commission's authority to suspend or revoke licenses or |
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registrations, to enjoin operations, to impose administrative |
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penalties, or to take any lawful action against violations of this |
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Act shall apply fully to all acts and omissions occurring at any |
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racetrack extension. It is not a defense to any commission |
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enforcement or disciplinary action that an alleged act or omission |
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occurred outside the association's enclosure. |
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Section 11A.04. Filing the site plan. An association |
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wishing to operate a racetrack extension shall file a site plan for |
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the proposed extension with the commission. Until and including the |
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90th day after the filing, the commission may reject the site plan |
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without prejudice. The commission shall not reject the site plan if |
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the commission has adopted rules for racetrack extensions and if |
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the site plan conforms with such rules. The association may re-file |
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a rejected site plan. If the commission does not reject the site |
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plan before the 91st day, the extension shall be recorded as an |
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authorized location for conducting pari-mutuel wagering on horse |
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racing and dog racing by simulcast. |
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Section 11A.05. Prohibited locations. Associations shall |
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not file a site plan which proposes an extension in any county in |
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which it is illegal to locate a racetrack facility. |
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Section 11A.06. Exclusive locations. Each association |
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shall have an exclusive zone for racetrack extension locations. The |
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exclusive zone is a circle with a radius of 50 miles centered on the |
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association's enclosure. |
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Section 11A.07. Locations for right of first refusal. Each |
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association shall have an additional option zone extending 75 miles |
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beyond the limits of its exclusive zone. An association shall have |
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the right of first refusal to place a racetrack extension at any |
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location within its option zone. The option zone shall expire and |
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cease to exist after December 31, 2015. |
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Section 11A.08. Invalid site plans; exception. If a site |
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plan is filed for a proposed extension at a location which would |
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violate the requirements of this Act, including at a location in a |
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prohibited county, or in another association's exclusive zone or |
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option zone, that filing shall be invalid without the need for the |
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commission to reject it unless the filing also contains a written |
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agreement under section 11A.10 that is approved by the commission. |
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Section 11A.09. Resolving conflicts on locations. Other |
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than a location inside a prohibited county, if a site plan would be |
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invalid under section 11A.08, the associations involved may resolve |
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the siting conflict by a written agreement to be filed with and |
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approved by the commission. |
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Section 11A.10. Live racing requirement. On each January 1 |
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all operations at a racetrack extension shall cease for one full |
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calendar year unless the association has been granted live race |
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dates to occur within that calendar year. |
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11A.11. Transfer of race dates and purses. If an |
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association is unable to hold live races within its enclosure, then |
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the live race dates which have been scheduled for that association |
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shall be transferred to another racetrack facility at which the |
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live races will be held. If an association's race dates are |
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transferred, the association's purse money shall also be |
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transferred. The transferred race dates may be allocated to more |
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than one destination, and the purse money may be distributed in ways |
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other than exact proportionality to the fraction of race dates. A |
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written agreement among the transferring association, the |
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destination association or associations, and the horsemen's |
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organizations may be submitted to the commission specifying the |
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terms and conditions of the transfers. The commission shall approve |
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or reject any such written agreement. In the absence of an |
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agreement, or if the agreement is rejected, the commission shall |
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determine the terms and conditions of the transfers. |
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11A.12. Increasing the number of live race dates. To |
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implement the purpose set forth in section 11A.01, the commission |
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shall increase the number of live race dates granted to an |
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association. The increase in live race dates shall be in proportion |
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to the increase in purses resulting from operations at racetrack |
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extensions. The commission shall adopt rules relating to the |
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methods and standards to be used in determining the additional live |
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race dates. A written agreement among the association and the |
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horsemen's organizations may be submitted to the commission |
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regarding live race dates and purses. The commission shall approve |
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or reject any such written agreement. In the absence of an |
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agreement, or if the agreement is rejected, the commission shall |
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determine the live race dates and purses. |
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SECTION 8. This Act takes effect September 1, 2013. |