By: Raymond H.B. No. 2375

A BILL TO BE ENTITLED

AN ACT

relating to the authorization of racetrack extension locations, providing rulemaking authority to the commission and comptroller, and providing for administrative penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. All provisions in Sections - through - below are subject to the following restrictions and limitations:

(a) No new forms of gambling. All other portions of this Act notwithstanding, all forms of gambling which were illegal on December 31, 2102, shall remain illegal and prohibited.

(b) No new racetrack licenses created. All other portions of this Act notwithstanding, all laws, regulations, conditions, licensing and other restrictions and limitations which were in place on December 31, 2012 relating to the number of racetracks shall remain in full force and effect.

(c) No new racetrack locations authorized. All other portions of this Act notwithstanding, all laws, regulations, conditions, licensing and other restrictions and limitations which were in place on December 31, 2012 relating to the locations of racetracks shall remain in full force and effect.

(d) No authorization of new counties for pari-mutuel wagering. All other portions of this Act notwithstanding, all laws, regulations, legal prohibitions, and other restrictions and limitations which were in place on December 31, 2012 relating to the counties in which pari-mutuel wagering may not occur shall remain in full force and effect.

SECTION 2. Section 1.03, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by amending Subdivisions (17) and (64) and by adding Subdivisions (82), (83) and (84) to read as follows:

(17) "Enclosure" means all areas of a racing association's grounds which are contiguous with the surface upon which live racing is conducted, including the parking area, to which admission ordinarily can be obtained only on payment of an admission fee or presentation of official credentials.

(64) "Receiving location" means a licensed racetrack association in this state that has been allocated live and simulcast race dates or a racetrack extension in this state or a facility not located in this state that is authorized to conduct wagering under the law of the jurisdiction in which it is located.

(82) An "extension" means a facility that is not physically contiguous with an association's enclosure.

(83) With respect to an extension, "recorded" means filed with the commission and not rejected by the commission.

(84) "Racetrack extension" means a facility located at a recorded extension and operated by an association for the purpose of presenting races for pari-mutuel wagering by simulcast.

SECTION 3. Section 6.091, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by amending Subdivision (a) to read as follows:

(a) An association shall distribute from the total amount deducted as provided by Sections 6.08(a) and 6.09(a) of this Act from each simulcast pari-mutuel pool and each simulcast cross-species pool and each simulcast racetrack extension pool the following shares:

(1) an amount equal to one percent of each simulcast pool as the amount set aside for the state;

(2) an amount equal to 1.25 percent of each simulcast cross-species pool as the amount set aside for the state;

(3) if the association is a horse racing association, an amount equal to one percent of a multiple two wagering pool or multiple three wagering pool as the amount set aside for the Texas-bred program to be used as provided by Section 6.08(f) of this Act;

(4) if the association is a greyhound association, an amount equal to one percent of a multiple two wagering pool or a multiple three wagering pool as the amount set aside for the Texas-bred program for greyhound races, to be distributed and used in accordance with rules of the commission adopted to promote greyhound breeding in this state; and

(5) the remainder as the amount set aside for purses, expenses, the sending association, and the receiving location pursuant to a contract approved by the commission between the sending association and the receiving location.

SECTION 4. Section 11.01, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by amending Subdivision (a) to read as follows:

(a) The commission shall adopt rules to regulate wagering on greyhound races and horse races under the system known as pari-mutuel wagering. Wagering may be conducted only by an association within its enclosure or at a racetrack extension. A person may not accept, in person, by telephone, or over the Internet, a wager for a horse race or greyhound race conducted inside or outside this state from a person in this state unless the wager is authorized under this Act.

SECTION 5. Section 11.011, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by amending Subdivision (f) to read as follows:

(f) Nothing in this Act is to be construed to allow wagering in Texas on simulcast races at any location other than a racetrack extension or a racetrack licensed under this Act that has been granted live race dates by the commission.

SECTION 6. Section 11.04, Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by amending Subdivision (a) to read as follows:

(a) Only a person inside a racetrack extension or the enclosure where both live and simulcast race meetings are authorized may wager on the result of a live or simulcast race presented by the association in accordance with commission rules. Except as provided by this section, a person may not place, in person, by telephone, or over the Internet, a wager for a horse race or greyhound race conducted inside or outside this state. The commission shall adopt rules to prohibit wagering by employees of the commission and to regulate wagering by persons licensed under this Act.

SECTION 7. The Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by adding Article 11A to read as follows:

Article 11A. Racetrack Extensions

Section 11A.01. Subject to the conditions, restrictions, licensing requirements, and oversight authority set forth in this Act, an association may operate a racetrack extension. Racetrack extensions are authorized for the purpose of increasing purse money and increasing the number of live racing days.

Section 11A.02. Regulatory authority. The powers and duties of the commission and the powers and duties of the comptroller regarding the operation of a racetrack extension shall be identical to those for operations occurring within the association's enclosure. The commission and the comptroller, in addition to other powers granted by this Act, shall have the authority to adopt regulations relating to the operation of racetrack extensions, provided however that the association's obligations for licensing, reporting, handling of simulcast operations, and handling of simulcast wagers shall be at least as stringent as those in place for operations within the enclosure.

Section 11A.03. Regulatory action and penalties. The commission's authority to suspend or revoke licenses or registrations, to enjoin operations, to impose administrative penalties, or to take any lawful action against violations of this Act shall apply fully to all acts and omissions occurring at any racetrack extension. It is not a defense to any commission enforcement or disciplinary action that an alleged act or omission occurred outside the association's enclosure.

Section 11A.04. Filing the site plan. An association wishing to operate a racetrack extension shall file a site plan for the proposed extension with the commission. Until and including the 90th day after the filing, the commission may reject the site plan without prejudice. The commission shall not reject the site plan if the commission has adopted rules for racetrack extensions and if the site plan conforms with such rules. The association may re-file a rejected site plan. If the commission does not reject the site plan before the 91st day, the extension shall be recorded as an authorized location for conducting pari-mutuel wagering on horse racing and dog racing by simulcast.

Section 11A.05. Prohibited locations. Associations shall not file a site plan which proposes an extension in any county in which it is illegal to locate a racetrack facility.

Section 11A.06. Exclusive locations. Each association shall have an exclusive zone for racetrack extension locations. The exclusive zone is a circle with a radius of 50 miles centered on the association's enclosure.

Section 11A.07. Locations for right of first refusal. Each association shall have an additional option zone extending 75 miles beyond the limits of its exclusive zone. An association shall have the right of first refusal to place a racetrack extension at any location within its option zone. The option zone shall expire and cease to exist after December 31, 2015.

Section 11A.08. Invalid site plans; exception. If a site plan is filed for a proposed extension at a location which would violate the requirements of this Act, including at a location in a prohibited county, or in another association's exclusive zone or option zone, that filing shall be invalid without the need for the commission to reject it unless the filing also contains a written agreement under section 11A.10 that is approved by the commission.

Section 11A.09. Resolving conflicts on locations. Other than a location inside a prohibited county, if a site plan would be invalid under section 11A.08, the associations involved may resolve the siting conflict by a written agreement to be filed with and approved by the commission.

Section 11A.10. Live racing requirement. On each January 1 all operations at a racetrack extension shall cease for one full calendar year unless the association has been granted live race dates to occur within that calendar year.

11A.11. Transfer of race dates and purses. If an association is unable to hold live races within its enclosure, then the live race dates which have been scheduled for that association shall be transferred to another racetrack facility at which the live races will be held. If an association's race dates are transferred, the association's purse money shall also be transferred. The transferred race dates may be allocated to more than one destination, and the purse money may be distributed in ways other than exact proportionality to the fraction of race dates. A written agreement among the transferring association, the destination association or associations, and the horsemen's organizations may be submitted to the commission specifying the terms and conditions of the transfers. The commission shall approve or reject any such written agreement. In the absence of an agreement, or if the agreement is rejected, the commission shall determine the terms and conditions of the transfers.

11A.12. Increasing the number of live race dates. To implement the purpose set forth in section 11A.01, the commission shall increase the number of live race dates granted to an association. The increase in live race dates shall be in proportion to the increase in purses resulting from operations at racetrack extensions. The commission shall adopt rules relating to the methods and standards to be used in determining the additional live race dates. A written agreement among the association and the horsemen's organizations may be submitted to the commission regarding live race dates and purses. The commission shall approve or reject any such written agreement. In the absence of an agreement, or if the agreement is rejected, the commission shall determine the live race dates and purses.

SECTION 8. This Act takes effect September 1, 2013.