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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 1.03,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended
by amending Subdivisions (2), (6), (18), (46), (50), (67), and (74) and
adding Subdivisions (82), (83), and (84) to read as follows:
(2) "Association" or
"racetrack association" means a person licensed under this
Act to offer [conduct a horse race meeting or a greyhound race
meeting with] pari-mutuel wagering on horse racing or greyhound
racing.
(6) "Horse race
meeting" means the conducting of live, simulcast, or purpose-driven
pari-mutuel wagering on horse races on a day or during a period of
consecutive or nonconsecutive days.
(18) "Pari-mutuel
wagering" means the form of wagering on the outcome of greyhound or
horse races [racing] in which [those who wager purchase
tickets of various denominations on an animal or animals and] all
wagers [for each race] are pooled and held by the racing association
for distribution of the total amount, less the deductions authorized by
this Act, to winning wagers [holders of tickets on the winning
animals].
(46) "Multiple
wagering" means wagering on two or more entries [animals]
in one race or on one or more entries [animals] in more than
one race. "Multiple two wagering" means wagering on two entries
[animals] in one or more races. "Multiple three wagering"
means wagering on three or more entries [animals] in one or
more races.
(50) "Greyhound racing
days" means 24-hour periods ending at 12 midnight [days]
on which a permitted racetrack association may conduct [conducts]
greyhound racing. ["One racing day" means a period commencing
at noon and ending at 2 a.m. the next calendar day, except in the case of
days on which there are matinee races.]
(67) "Racetrack
facility" means a facility operated by a racetrack [an]
association within its enclosure for the purpose of offering [presenting
races for] pari-mutuel wagering on the outcome of greyhound or horse
races.
(74) "Race"
includes
previously run races,
whether digitally represented, simulated, or presented by video recording and
a live audio and visual
signal of a race.
(82) "Purpose-driven
pari-mutuel wagering" means wagering on a greyhound race or horse
race, whether running or harness, that:
(A) was previously
conducted at a facility licensed to offer pari-mutuel wagering on the
outcome of greyhound or horse races;
(B) concluded with
official results; and
(C) concluded without a
scratch, disqualification, or dead-heat finish.
(83) "Purpose-driven
pari-mutuel pool" means the total amount of money wagered by patrons
within the enclosure of a racetrack association on the results of a
previously run race.
(84) "Purpose-driven
pari-mutuel wagering system provider" means a person, company, or
association that contracts with a racetrack association to provide the
necessary systems and hardware to conduct purpose-driven pari-mutuel
wagering.
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SECTION 1. Substantially
same as introduced version.
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SECTION 2. Section 3.02(a),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 2. Same as introduced
version.
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SECTION 3. Section 3.021(a),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 3. Same as introduced
version.
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SECTION 4. Section 3.09,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 4. Same as introduced
version.
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SECTION 5. Section 6.01,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 5. Same as introduced
version.
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SECTION 6. Sections 6.03(a)
and (b), Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),
are amended.
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SECTION 6. Same as introduced
version.
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SECTION 7. Section 6.04,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 7. Same as introduced
version.
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SECTION 8. Section
6.08(b)(3), Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),
is amended.
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SECTION 8. Same as introduced
version.
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SECTION 9. Section 6.08,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 9. Same as introduced
version.
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SECTION 10. Section 6.09,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended
by amending Subsections (a) and (d) and adding Subsections (g) and (h) to
read as follows:
(a)
Every racetrack association authorized under this Act to conduct
pari-mutuel wagering at a greyhound race meeting on races run shall
distribute all sums deposited in any live or simulcast pari-mutuel
pool to the holders of the winning tickets if those tickets are presented
for payment within 60 days after the closing day of the race meeting at
which the pool was formed, less an amount paid as a commission of 18
percent of the total deposits in pools resulting from regular win, place,
and show wagering, and an amount not to exceed 21 percent of the total
deposits in pools resulting from multiple two wagering and an amount not to
exceed 25 percent of the total deposits in pools resulting from multiple
three wagering.
(d) Fifty percent of the
breakage for live, previously run, or simulcast races is to be paid
to the appropriate state greyhound breeding registry. Of that portion of
the breakage 25 percent of that breakage is to be used in stakes races and
25 percent of that total breakage from a live pari-mutuel pool, purpose-driven
pari-mutuel pool, or a simulcast pari-mutuel pool is to be paid to the
commission for the use by the state greyhound breed registry, subject to
rules promulgated by the commission.
(g) A racetrack
association may not begin offering purpose-driven pari-mutuel wagering
until the association executes a valid contract with the Texas Greyhound
Association that establishes the portions of the association's commission
on purpose-driven pari-mutuel pools that will be set aside for purses and
breeder incentives.
(h) The commission shall
be the final arbiter of any disagreements between an association and the
Texas Greyhound Association when reaching the terms of a valid contract.
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SECTION 10. Section 6.09,
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended
by amending Subsection (d) and adding Subsections (g) and (h) to read as
follows:
No equivalent provision.
(d) Fifty percent of the
breakage for live, previously run, or simulcast races is to be paid
to the appropriate state greyhound breeding registry. Of that portion of
the breakage 25 percent of that breakage is to be used in stakes races and
25 percent of that total breakage from a live pari-mutuel pool,
purpose-driven pari-mutuel pool, or a simulcast pari-mutuel pool is to
be paid to the commission for the use by the state greyhound breed
registry, subject to rules promulgated by the commission.
(g) A racetrack
association may not begin offering purpose-driven pari-mutuel wagering until
the association executes a valid contract with the Texas Greyhound
Association that establishes the portions of the association's commission
on purpose-driven pari-mutuel pools that will be set aside for purses and
breeder incentives.
(h) The commission shall
be the final arbiter of any disagreements between an association and the
Texas Greyhound Association when reaching the terms of a valid contract.
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SECTION 11. Sections
6.092(a) and (c), Texas Racing Act (Article 179e, Vernon's Texas Civil
Statutes), are amended.
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SECTION 11. Same as
introduced version.
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SECTION 12. Article 6, Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by
adding Section 6.095 to read as follows:
Sec. 6.095. DEDUCTIONS
FROM PURPOSE-DRIVEN PARI-MUTUEL POOL. (a) For each dollar wagered in a
purpose-driven pari-mutuel pool, a racetrack association shall set aside
for this state an amount equal to one percent to be distributed in the
following order of priority:
(1) $20 million is
allocated to pay the costs of
body armor for law enforcement officers
in this state;
(2) $10 million is
allocated as death benefits for families of law enforcement officers killed
in the line of duty; and
(3) any remainder is
allocated for deposit to the general revenue fund to be used at the discretion of this state.
(b) For each dollar
wagered in a purpose-driven pari-mutuel pool, a racetrack association shall
set aside for nonprofit corporations an amount equal to one percent.
(c) At any time
purpose-driven pari-mutuel wagering is offered, each racetrack association
shall contract with 10 nonprofit corporations to provide contributions to
the corporations from purpose-driven pari-mutuel wagering. A contract with
a nonprofit corporation may be for a term of 30 days or more.
(d) Any nonprofit
corporation registered under 26 U.S.C. Section 501(c)(3) that has
operations in this state and that filed an Internal Revenue Service Form
990 in the previous calendar year is eligible to participate. The
commission shall adopt rules on the application process and selection
criteria under this section.
(e) Of the 10 nonprofit
corporations contracted under Subsection (c):
(1) at least one must
benefit law enforcement programs;
(2) at least one must
benefit veterans of the armed forces of this state or the United States;
and
(3) not more than three
may benefit the racing industry.
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SECTION 12. Article 6, Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended by
adding Section 6.095 to read as follows:
Sec. 6.095. DEDUCTIONS
FROM PURPOSE-DRIVEN PARI-MUTUEL POOL. (a) For each dollar wagered in a
purpose-driven pari-mutuel pool, a racetrack association shall set aside
for this state an amount equal to one percent to be distributed as follows:
(1) 45 percent of the state's share annually not
to exceed $20 million is allocated to
the criminal justice division of the governor's office to provide financial
assistance to law enforcement agencies
in this state for the purpose of
equipping officers with bulletproof vests, ballistic plates, and
plate carriers;
(2) 33 percent of state's share annually not to
exceed $15 million is allocated to the fund for veterans' assistance
established under Section 434.017, Government Code;
(3) 22 percent of state's share annually not to
exceed $10 million is allocated as financial
assistance to survivors of certain law enforcement officers, firefighters,
and others as death benefits for families of law enforcement
officers, firefighters, and others
killed in the line of duty under Chapter
615, Government Code, or other law; and
(4) any remainder is
allocated annually for deposit to
the general revenue fund.
(b) For each dollar
wagered in a purpose-driven pari-mutuel pool, a racetrack association shall
set aside for nonprofit corporations an amount equal to one percent. A racetrack association shall allocate and
distribute one percent of the money set aside for nonprofit corporations
under this subsection to the National Council on Problem Gambling.
(c) At any time
purpose-driven pari-mutuel wagering is offered, each racetrack association
shall contract with 10 nonprofit corporations to provide contributions to
the corporations from purpose-driven pari-mutuel wagering. A contract with
a nonprofit corporation may be for a term of 30 days or more.
(d) Any nonprofit
corporation registered under 26 U.S.C. Section 501(c)(3) that has
operations in this state and that filed an Internal Revenue Service Form
990 in the previous calendar year is eligible to participate. The
commission shall adopt rules on the application process and selection
criteria under this section.
(e) Of the 10 nonprofit
corporations contracted under Subsection (c):
(1) at least one must
benefit law enforcement programs;
(2) at least one must
benefit veterans of the armed forces of this state or the United States;
and
(3) not more than three
may benefit the racing industry.
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SECTION 13. Section 6.11(a),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 13. Same as
introduced version.
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SECTION 14. Section 6.14(a),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 14. Same as
introduced version.
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SECTION 15. Section 11.01(a),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is amended.
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SECTION 15. Same as
introduced version.
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SECTION 16. Section
11.04(a), Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),
is amended.
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SECTION 16. Same as introduced
version.
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SECTION 17. Section 6.09(e),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), is
repealed.
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SECTION 17. Same as
introduced version.
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SECTION 18. As soon as
practicable after the effective date of this Act, the Texas Racing
Commission shall adopt the rules necessary to implement the changes in law
made by this Act.
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SECTION 18. Same as
introduced version.
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SECTION 19. This Act takes
effect September 1, 2017.
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SECTION 19. Same as
introduced version.
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