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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of wagering through telephone, the |
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Internet, or other approved electronic means on horse races and |
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greyhound races under the pari-mutuel system of wagering; requiring |
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a license to operate account wagering; requiring a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.03, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Subdivisions |
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(82) and (83) to read as follows: |
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(82) "Account wagering" means a form of pari-mutuel |
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wagering that allows an individual to deposit money in an account |
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with an association or an account wagering operator for the |
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individual's use in pari-mutuel wagering offered by the association |
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on live or simulcast horse races or greyhound races. |
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(83) "Account wagering operator" means an entity |
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licensed by the commission to provide an account for account |
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wagering by persons in this state. |
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SECTION 2. Article 7, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Section 7.11 |
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to read as follows: |
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Sec. 7.11. ACCOUNT WAGERING LICENSE. (a) A person may not |
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offer account wagering, operate as an account wagering operator, or |
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act as an employee of a person offering account wagering or |
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operating as an account wagering operator unless the person or |
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employee, as applicable, holds a license issued by the commission |
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under this section. |
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(b) The commission shall adopt rules and procedures for |
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applying for or issuing, denying, or revoking a license under this |
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section in a manner consistent with other licensing provisions of |
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this Act. |
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(c) The commission shall establish fees for initial and |
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annual renewal licensing of account wagering operators and of |
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employees of account wagering operators. |
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SECTION 3. 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 (c) 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 by an account wagering |
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operator. Except as provided by Subsection (c), a [A] person may |
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not accept, in person, by telephone, or over the Internet, a wager |
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for a horse race or greyhound race conducted inside or outside this |
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state from a person in this state unless the wager is authorized |
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under this Act. |
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(c) An association or an account wagering operator may |
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accept account wagering in person or by direct telephone call or |
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through other electronic means by the holder of the account. An |
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account wagering operator that is not an association shall, if the |
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operator or any of the operator's affiliates conducts live racing, |
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contract with an association for interstate simulcast wagering. An |
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account wagering operator shall contract with an association to |
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offer wagering on live races on the account wagering operator's |
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system, if authorized by law. |
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SECTION 4. Section 11.04, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subsection |
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(b) and adding Subsections (b-1) and (b-2) to read as follows: |
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(b) The commission may [shall] adopt rules to authorize |
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account wagering by [prohibiting] an association or an account |
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wagering operator under conditions the commission determines |
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appropriate to protect the public health and safety [from accepting
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wagers by telephone]. For purposes of this Act, account wagering by |
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a person in this state through an association or an account wagering |
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operator is considered wagering by a person in the enclosure of the |
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association or of the association that has contracted with the |
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account wagering operator. |
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(b-1) The commission shall adopt rules setting the amount, |
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less refunds, that may be deducted from the gross pari-mutuel |
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handle of the association or account wagering operator conducting |
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account wagering, provided that amount is not less than six percent |
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of the gross pari-mutuel handle. |
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(b-2) The amount of all fees paid to the commission from |
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account wagering may not exceed one percent of the total gross |
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account wagering receipts, as determined by the computational |
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equipment approved by the commission for calculating wagering as |
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required under Section 11.02, from wagers placed by persons in this |
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state with each association or account wagering operator offering |
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account wagering. |
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SECTION 5. As soon as practicable after the effective date |
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of this Act, the Texas Racing Commission shall adopt the rules |
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necessary to implement the change in law made by this Act. |
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SECTION 6. This Act takes effect September 1, 2017. |