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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of the regulation of racing to the Texas |
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Department of Licensing and Regulation, the abolishment of the |
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Texas Racing Commission, and the creation of the Texas Racing |
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Advisory Board, following recommendations of the Sunset Advisory |
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Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. GENERAL PROVISIONS |
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SECTION 1.01. Subchapter C, Chapter 51, Occupations Code, |
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is amended by adding Section 51.1041 to read as follows: |
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Sec. 51.1041. PEACE OFFICERS. (a) The department may |
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commission as a peace officer an employee who has been certified as |
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qualified to be a peace officer by the Texas Commission on Law |
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Enforcement. |
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(b) A peace officer commissioned by the department may |
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enforce any provision of this chapter relating to the regulation of |
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racing or any law establishing a program regulated by the |
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department under Subtitle A-1, Title 13, related to the regulation |
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of racing. |
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(c) A peace officer commissioned under this section has the |
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powers, privileges, and immunities of a peace officer while |
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carrying out duties authorized by this chapter or a law |
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establishing a program regulated by the department. |
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SECTION 1.02. Section 2021.003, Occupations Code, is |
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amended by amending Subdivisions (2), (8), (9), (14), (20), (21), |
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(24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to |
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read as follows: |
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(2) "Active license" means a racetrack license |
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designated by the department [commission] as active. |
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(2-a) "Advisory board" means the Texas Racing Advisory |
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Board. |
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(8) "Commission" means the Texas [Racing] Commission |
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of Licensing and Regulation. |
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(9) "Concessionaire" means a person licensed by the |
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department [commission] to sell refreshments or souvenirs at a |
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racetrack. |
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(12-a) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(14) "Executive director" means the executive |
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director of the department [commission]. |
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(20) "Horsemen's organization" means an organization |
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recognized by the department [commission] that: |
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(A) represents horse owners and trainers in |
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negotiating and contracting with racetrack associations on |
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subjects relating to racing; and |
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(B) represents and advocates the interests of |
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horse owners and trainers before administrative, legislative, and |
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judicial forums. |
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(21) "Inactive license" means a racetrack license |
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designated by the department [commission] as inactive. |
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(24) "Maiden" means a horse that has never won a race |
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at a race meeting authorized by the department [commission] or by |
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another racing jurisdiction. |
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(35) "Performance" means the consecutive running of a |
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specified number of greyhound races as determined by the department |
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[commission]. |
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(54) "Trainer" means a person who is licensed by the |
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department [commission] to train horses or greyhounds. |
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SECTION 1.03. Sections 2021.004(1) and (5), Occupations |
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Code, are amended to read as follows: |
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(1) "Authorized agent" means a person appointed by an |
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owner of a horse to represent the owner. The term is limited to a |
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person who is appointed by a written instrument that the department |
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[commission] acknowledges and approves. |
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(5) "Jockey" or "apprentice jockey" means a |
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professional rider licensed by the department [commission] to ride |
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in horse races. |
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SECTION 1.04. Section 2021.006, Occupations Code, is |
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amended to read as follows: |
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Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission |
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member, the executive director, a department [commission] |
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employee, a steward or judge, a racetrack association, a horsemen's |
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organization, or any other person regulated under this subtitle is |
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not liable for a cause of action that arises out of that person's |
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performance or exercise of discretion in the implementation or |
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enforcement of this subtitle or a rule adopted under this subtitle |
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if the person has acted in good faith. |
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SECTION 1.05. Sections 2021.008(a), (b), (c), and (d), |
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Occupations Code, are amended to read as follows: |
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(a) The advisory board [commission] is subject to Chapter |
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325, Government Code (Texas Sunset Act). The advisory board shall |
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be reviewed during the period in which the commission and |
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department are reviewed under Section 51.002. Unless the advisory |
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board is continued in existence and the commission and department |
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are continued in existence as provided by that section, [chapter,] |
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and except as provided by Subsections (b) and (c), [the commission |
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is abolished and] this subtitle expires on the date provided by that |
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section [September 1, 2021]. |
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(b) If, at the time the commission, department, and advisory |
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board would be abolished under Subsection (a), a racetrack |
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association has outstanding long-term liabilities: |
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(1) the racetrack association may continue to operate |
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for a period not to exceed one year after those liabilities are |
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satisfied; and |
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(2) the commission, the department, and this subtitle |
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are continued in effect for the purpose of regulating that |
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racetrack association under this subtitle. |
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(c) If the commission, the department, and this subtitle are |
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continued in effect under Subsection (b), the commission and the |
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department are [is] abolished and this subtitle expires on the |
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first day of the state fiscal year following the state fiscal year |
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in which the commission certifies to the secretary of state that no |
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racetrack associations are operating under the terms of Subsection |
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(b). |
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(d) A racetrack association that continues to operate under |
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Subsection (b) may not incur any new liability without commission |
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or department approval. At the beginning of that period, the |
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commission or department shall: |
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(1) review the outstanding liabilities of the |
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racetrack association; and |
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(2) set a specific date by which the racetrack |
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association must retire its outstanding liabilities. |
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ARTICLE 2. TEXAS RACING ADVISORY BOARD; DEPARTMENT RECORDS AND |
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INFORMATION |
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SECTION 2.01. The heading to Chapter 2022, Occupations |
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Code, is amended to read as follows: |
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CHAPTER 2022. TEXAS RACING ADVISORY BOARD [COMMISSION] |
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SECTION 2.02. The heading to Section 2022.001, Occupations |
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Code, is amended to read as follows: |
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Sec. 2022.001. ADVISORY BOARD [COMMISSION] MEMBERSHIP. |
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SECTION 2.03. Section 2022.001(a), Occupations Code, is |
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amended to read as follows: |
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(a) The Texas Racing Advisory Board [commission] consists |
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of nine[: |
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[(1) seven] members appointed by the presiding officer |
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of the commission, with commission approval, as follows: |
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(1) one member who is a representative of a racetrack |
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association holding a class 1 racetrack license; |
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(2) one member who is a representative of a racetrack |
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association holding a class 2 racetrack license; |
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(3) one member who is a representative of a racetrack |
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association holding a class 3 racetrack license; |
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(4) one member who is: |
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(A) a representative of a racetrack association |
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holding a greyhound racetrack license; or |
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(B) a representative of the Texas Horsemen's |
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Partnership; |
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(5) one member who is a representative of the Texas |
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Thoroughbred Association; |
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(6) one member who is a representative of the Texas |
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Quarter Horse Association; |
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(7) one member who is a veterinarian; and |
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(8) two members of the public [governor with the |
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advice and consent of the senate; and |
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[(2) two ex officio members who have the right to |
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vote]. |
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SECTION 2.04. Subchapter A, Chapter 2022, Occupations Code, |
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is amended by adding Section 2022.0011 to read as follows: |
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Sec. 2022.0011. DUTIES OF ADVISORY BOARD. The advisory |
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board shall provide advice and recommendations to the department on |
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technical matters relevant to the administration of this subtitle. |
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SECTION 2.05. The heading to Section 2022.002, Occupations |
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Code, is amended to read as follows: |
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Sec. 2022.002. TERM OF OFFICE; VACANCIES. |
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SECTION 2.06. Section 2022.002, Occupations Code, is |
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amended by amending Subsection (a) and adding Subsection (c) to |
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read as follows: |
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(a) Advisory board [Appointed commission] members hold |
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office for staggered terms of six years with the terms of [two or] |
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three members expiring February 1 of each odd-numbered year. |
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(c) If a vacancy occurs during a member's term, the |
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presiding officer of the commission, with commission approval, |
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shall appoint a member to fill the vacancy for the remainder of the |
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unexpired term. |
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SECTION 2.07. Section 2022.008, Occupations Code, is |
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amended to read as follows: |
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Sec. 2022.008. PRESIDING OFFICER. (a) The presiding |
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officer of the commission [governor] shall designate a [public] |
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member of the advisory board [commission] as the presiding officer |
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of the advisory board [commission] to serve in that capacity for a |
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one-year term [at the pleasure of the governor]. |
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(b) The presiding officer of the advisory board may vote on |
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any matter before the advisory board. |
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SECTION 2.08. The heading to Section 2022.009, Occupations |
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Code, is amended to read as follows: |
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Sec. 2022.009. ADVISORY BOARD [COMMISSION] MEETINGS[; |
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RECORD OF COMMISSION VOTES]. |
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SECTION 2.09. Section 2022.009(a), Occupations Code, is |
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amended to read as follows: |
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(a) The advisory board [commission] shall meet at the call |
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of the presiding officer of the commission or the executive |
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director [hold at least six regular meetings each year on dates |
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fixed by the commission]. |
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SECTION 2.10. The heading to Section 2022.052, Occupations |
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Code, is amended to read as follows: |
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Sec. 2022.052. [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT. |
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SECTION 2.11. The heading to Section 2022.103, Occupations |
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Code, is amended to read as follows: |
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Sec. 2022.103. DEPARTMENT [COMMISSION] INVESTIGATIVE FILES |
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CONFIDENTIAL. |
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SECTION 2.12. Sections 2022.103(a), (b), and (c), |
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Occupations Code, are amended to read as follows: |
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(a) The contents of the investigatory files of the |
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department [commission] are not public records and are confidential |
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except: |
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(1) in a criminal proceeding; |
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(2) in a hearing conducted by the commission; |
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(3) on court order; or |
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(4) with the consent of the party being investigated. |
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(b) Except as otherwise provided by this subtitle, the |
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files, records, information, compilations, documents, photographs, |
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reports, summaries, and reviews of information and related matters |
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that are collected, retained, or compiled by the Department of |
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Public Safety in the discharge of the Department of Public Safety's |
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[department's] duties under this subtitle are confidential and are |
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not subject to public disclosure, but are subject to discovery by a |
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person who is the subject of the files, records, information, |
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compilations, documents, photographs, reports, summaries, and |
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reviews of information and related matters that are collected, |
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retained, or compiled by the Department of Public Safety |
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[department] in the discharge of the Department of Public Safety's |
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[department's] duties under this subtitle. |
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(c) An investigation report or other document submitted by |
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the Department of Public Safety to the department [commission] |
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becomes part of the investigative files of the department |
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[commission] and is subject to discovery by a person who is the |
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subject of the investigation report or other document submitted by |
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the Department of Public Safety [department] to the department |
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[commission] that is part of the investigative files of the |
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department [commission]. |
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SECTION 2.13. Section 2022.105(a), Occupations Code, is |
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amended to read as follows: |
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(a) The department [commission] shall require racetrack |
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associations, managers, totalisator license holders, and |
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concessionaires to keep books and records and to submit financial |
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statements to the commission. |
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ARTICLE 3. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL |
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POWERS AND DUTIES |
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SECTION 3.01. The heading to Chapter 2023, Occupations |
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Code, is amended to read as follows: |
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CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL |
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POWERS AND DUTIES |
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SECTION 3.02. Section 2023.001, Occupations Code, is |
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amended to read as follows: |
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Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF |
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HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any |
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contrary provision in this subtitle, the department under the |
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direction of the commission may license and regulate all aspects of |
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horse racing and greyhound racing in this state, regardless of |
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whether that racing involves pari-mutuel wagering. |
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(b) The commission[,] in adopting rules and the department |
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in the supervision and conduct of racing[,] shall consider the |
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effect of a proposed [commission] action on the state's |
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agricultural, horse breeding, horse training, greyhound breeding, |
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and greyhound training industry. |
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SECTION 3.03. Section 2023.002, Occupations Code, is |
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amended to read as follows: |
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Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT |
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RACE MEETINGS. (a) The department [commission] shall regulate and |
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supervise each race meeting in this state that involves wagering on |
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the result of horse racing or greyhound racing. Each person and |
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thing relating to the operation of a race meeting is subject to |
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regulation and supervision by the department [commission]. |
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(b) The commission shall adopt rules on the issuance of |
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licenses and other rules necessary to regulate horse racing and |
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greyhound racing and the department shall[,] issue licenses[,] and |
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take any other necessary action relating [exclusively] to the |
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regulation of horse racing or greyhound racing. |
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SECTION 3.04. Section 2023.003(b), Occupations Code, is |
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amended to read as follows: |
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(b) The department [commission] may charge in the amount set |
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by the commission an annual fee for licensing and regulating a track |
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that does not offer pari-mutuel wagering or a training facility in a |
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reasonable amount that may not exceed the actual cost of enforcing |
|
rules adopted by the commission for the licensing and regulation of |
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races and workouts at such a facility. |
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SECTION 3.05. Section 2023.004(d), Occupations Code, is |
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amended to read as follows: |
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(d) The commission shall post at each racetrack notice of a |
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meeting [under Subsection (c)] that includes an agenda of the |
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meeting and a summary of the proposed rule. |
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SECTION 3.06. Section 2023.006, Occupations Code, is |
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amended to read as follows: |
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Sec. 2023.006. CONSIDERATION OF PAST PERFORMANCE OF |
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RACETRACK ASSOCIATION. In considering a pleading of a racetrack |
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association, the department [commission] shall take into account |
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the operating experience of the racetrack association in this |
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state, including: |
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(1) the financial condition of the racetrack; |
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(2) the regulatory compliance and conduct; and |
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(3) any other relevant matter concerning the operation |
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of a racetrack. |
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SECTION 3.07. Section 2023.007, Occupations Code, is |
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amended to read as follows: |
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Sec. 2023.007. RIGHT OF ENTRY. A department employee |
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[commission member], an authorized department [commission] agent |
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or peace officer, a commissioned officer of the Department of |
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Public Safety, or a peace officer of the local jurisdiction in which |
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a racetrack association maintains a place of business may enter any |
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part of a racetrack or any other place of business of a racetrack |
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association at any time to enforce and administer this subtitle. |
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SECTION 3.08. Section 2023.008, Occupations Code, is |
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amended to read as follows: |
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Sec. 2023.008. TESTIMONY AND SUBPOENA POWER. (a) For |
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purposes of this section, "agent" means an appointed agent of the |
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department [commission]. |
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(b) A department employee [commission member] or an agent, |
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while involved in carrying out functions under this subtitle, may: |
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(1) take testimony; |
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(2) require by subpoena the attendance of a witness; |
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and |
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(3) require the production of books, records, papers, |
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correspondence, and other documents that the commission considers |
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advisable. |
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(c) A subpoena must be issued under the signature of the |
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executive director or the executive director's designee |
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[commission or an agent]. A person designated by the executive |
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director [commission] must serve the subpoena. |
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(d) A department employee [commission member] or an agent |
|
may administer an oath to a witness appearing before the department |
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[commission] or an agent. |
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(e) If a subpoena issued under this section is disobeyed, |
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the department [commission] or an agent may invoke the aid of a |
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Travis County district court in requiring compliance with the |
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subpoena. A Travis County district court may issue an order |
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requiring the person to appear and testify and to produce books, |
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records, papers, correspondence, and documents. Failure to obey |
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the court order shall be punished by the court as contempt. |
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SECTION 3.09. Sections 2023.051 and 2023.052, Occupations |
|
Code, are amended to read as follows: |
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Sec. 2023.051. RECOGNITION OF ORGANIZATION. (a) The |
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commission by rule shall adopt criteria to recognize an |
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organization to represent members of a segment of the racing |
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industry, including owners, breeders, trainers, kennel operators, |
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or other persons involved in the racing industry, in any |
|
interaction between the members of the organization and a racetrack |
|
association or the department [commission]. |
|
(b) The department [commission] may recognize an |
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organization that meets the criteria adopted under Subsection (a). |
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Sec. 2023.052. SECURITY FOR FEES AND CHARGES. The |
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department [commission] may require a racetrack association to post |
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security in an amount and form determined by the department |
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[commission] to adequately ensure the payment of any fee or charge |
|
due to this state or the department [commission] relating to |
|
pari-mutuel racing, including a charge for drug testing. |
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SECTION 3.10. Section 2023.053(f), Occupations Code, is |
|
amended to read as follows: |
|
(f) This section does not apply to: |
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(1) money deposited into the Texas-bred incentive fund |
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established under Section 2028.301; or |
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(2) an administrative penalty remitted to the |
|
comptroller for deposit in the general revenue fund under Section |
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2033.058. |
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SECTION 3.11. The heading to Section 2023.054, Occupations |
|
Code, is amended to read as follows: |
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Sec. 2023.054. [COMMISSION] STANDARDS ON GREYHOUND FARMS |
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AND FACILITIES. |
|
SECTION 3.12. Sections 2023.056, 2023.057, 2023.058, |
|
2023.059, and 2023.061, Occupations Code, are amended to read as |
|
follows: |
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Sec. 2023.056. COOPERATION WITH LAW ENFORCEMENT. (a) The |
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department [commission] shall cooperate with a district attorney, a |
|
criminal district attorney, a county attorney, the Department of |
|
Public Safety, the attorney general, or a peace officer in |
|
enforcing this subtitle. |
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(b) The department [commission], under department |
|
[commission] authority to obtain criminal history record |
|
information under Section 2023.057, shall maintain and exchange |
|
pertinent intelligence data with other states and agencies. |
|
Sec. 2023.057. ACCESS TO CRIMINAL HISTORY RECORDS. The |
|
department [commission] may obtain criminal history record |
|
information that relates to each applicant for [employment by the |
|
commission and to each applicant for] a license issued under this |
|
subtitle by the department, including an occupational license |
|
described by Section 2025.251(c), [commission] and that is |
|
maintained by the Department of Public Safety or the Federal Bureau |
|
of Investigation Identification Division. The department |
|
[commission] may refuse to issue a license to [recommend] an |
|
applicant who fails to provide a complete set of fingerprints. |
|
Sec. 2023.058. COST OF CRIMINAL HISTORY RECORD CHECK. (a) |
|
The commission shall, in determining the amount of a license fee, |
|
set the fee in at least an amount necessary to cover the cost to the |
|
department of conducting a criminal history record check on a |
|
license applicant. |
|
(b) The department [commission] shall reimburse the |
|
Department of Public Safety for the cost of conducting a criminal |
|
history record check under this subtitle. |
|
Sec. 2023.059. DISTANCE LEARNING. The department |
|
[commission] may provide assistance to members of the racing |
|
industry who are attempting to develop or implement adult, youth, |
|
or continuing education programs that use distance learning. |
|
Sec. 2023.061. BIENNIAL [ANNUAL] REPORT. (a) Not later |
|
than January 31 of each odd-numbered year, the department |
|
[commission] shall file a report with the governor, lieutenant |
|
governor, and speaker of the house of representatives. |
|
(b) The report must cover the operations of the department |
|
under this subtitle [commission] and the condition of horse |
|
breeding and racing and greyhound breeding and racing during the |
|
preceding two-year period [previous year]. |
|
(c) The department [commission] shall obtain from the |
|
Department of Public Safety a comprehensive report of any organized |
|
crime activities in this state [that the department may wish to |
|
report] and information concerning illegal gambling that may be |
|
related to this subtitle known to exist in this state. The |
|
department [commission] shall include in the biennial [annual] |
|
report the Department of Public Safety's [department's] report and |
|
any recommendations the department [commission] considers |
|
appropriate. |
|
SECTION 3.13. Sections 2023.101(b), (c), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(b) The department [commission] shall employ or contract |
|
with each steward and judge for the supervision of a horse race or |
|
greyhound race meeting. |
|
(c) The department [commission] shall designate one steward |
|
or judge, as appropriate, as the presiding steward or judge for each |
|
race meeting. |
|
(d) Following the completion of a race meeting, a racetrack |
|
association may submit to the department [commission] for the |
|
department's [commission's] review written comments regarding the |
|
job performance of the stewards and judges. A racetrack |
|
association's comments submitted under this section are not |
|
binding, in any way, on the department [commission]. |
|
SECTION 3.14. Section 2023.102(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] shall require each steward |
|
or judge to annually take and pass a written examination and a |
|
medical examination. |
|
SECTION 3.15. Section 2023.103, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.103. [EMPLOYMENT OF] STATE VETERINARIANS. For |
|
each race meeting, the department [commission] shall employ or |
|
contract for at least one state veterinarian. |
|
SECTION 3.16. Section 2023.104(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The fee amount for compensating each steward, judge, and |
|
state veterinarian must be reasonable according to industry |
|
standards for the compensation of those officials at other |
|
racetracks and may not exceed the actual cost to the department |
|
[commission] for compensating the officials. |
|
SECTION 3.17. Section 2023.105, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2023.105. EMPLOYMENT OF OTHER RACETRACK OFFICIALS. |
|
The racetrack association shall appoint, with the department's |
|
[commission's] approval, all racetrack officials other than the |
|
officials listed in Section 2023.104. Compensation for officials |
|
not compensated by the department [commission] is determined by the |
|
racetrack association. |
|
SECTION 3.18. Section 2023.106(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The commission shall adopt rules that specify: |
|
(1) the power and duties of each race meeting |
|
official, including the power of a steward or judge to impose |
|
penalties for unethical practices or violations of racing rules; |
|
and |
|
(2) procedures for hearings conducted under this |
|
section. |
|
SECTION 3.19. Section 2023.109, Occupations Code, is |
|
amended by adding Subsection (c) to read as follows: |
|
(c) The commission may adopt rules specifying the |
|
requirements for appealing a decision and eligibility of orders for |
|
consideration under this section. |
|
ARTICLE 4. POWERS AND DUTIES OF COMPTROLLER |
|
SECTION 4.01. Section 2024.002(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The comptroller may inspect all books, records, and |
|
financial statements required by the commission or obtained by the |
|
department under Section 2022.105. |
|
SECTION 4.02. Sections 2024.053(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The comptroller shall certify to the department |
|
[commission] the fact that a racetrack association or totalisator |
|
company: |
|
(1) does not comply with a rule adopted by the |
|
comptroller under this chapter; |
|
(2) refuses to allow access to or inspection of any of |
|
the racetrack association's or totalisator company's required |
|
books, records, or financial statements; |
|
(3) refuses to allow access to or inspection of the |
|
totalisator system; or |
|
(4) becomes delinquent for: |
|
(A) the state's share of a pari-mutuel pool; or |
|
(B) any other tax collected by the comptroller. |
|
(b) With regard to the state's share of a pari-mutuel pool |
|
and any penalty related to the state's share, the comptroller, |
|
acting independently of the department [commission], may take any |
|
collection or enforcement action authorized under the Tax Code |
|
against a delinquent taxpayer. |
|
ARTICLE 5. LICENSING |
|
SECTION 5.01. Sections 2025.001 and 2025.002, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.001. COMMISSION AND DEPARTMENT LICENSING DUTIES. |
|
(a) To preserve and protect the public health, welfare, and safety, |
|
the commission shall adopt rules relating to license applications |
|
and the financial responsibility[, moral character,] and ability of |
|
applicants. |
|
(b) The department [commission] shall prescribe application |
|
forms for licenses issued under this subtitle and shall provide |
|
each occupational license holder with a credential. |
|
(c) The commission shall [annually] prescribe reasonable |
|
license fees for each category of license issued under this |
|
subtitle. |
|
(d) The commission by rule shall set fees in amounts |
|
reasonable and necessary to cover the department's [commission's] |
|
costs of regulating, overseeing, and licensing live and simulcast |
|
racing at racetracks. |
|
Sec. 2025.002. LICENSE AS PRIVILEGE. The operation of a |
|
racetrack and the participation in racing are privileges, not |
|
rights, granted only by the department [commission] by license and |
|
subject to reasonable and necessary conditions set by the |
|
commission and department. |
|
SECTION 5.02. Sections 2025.003(a), (c), (d), and (e), |
|
Occupations Code, are amended to read as follows: |
|
(a) An applicant for a license or license renewal under this |
|
subtitle must, except as otherwise provided by Section 2025.261, |
|
submit to the department [commission] a complete set of |
|
fingerprints for: |
|
(1) the applicant; or |
|
(2) if the applicant is not an individual, each |
|
officer or director of, and each person who owns at least a five |
|
percent interest in, the applicant. |
|
(c) A peace officer of any state[,] or any department |
|
employee designated by the executive director [district office of |
|
the commission,] shall take the fingerprints of an applicant for a |
|
license or license renewal on forms approved and furnished by the |
|
Department of Public Safety and immediately deliver the forms to |
|
the department [commission]. |
|
(d) If a complete set of fingerprints is required by the |
|
department [commission], the department [commission] shall, not |
|
later than the 10th business day after the date the department |
|
[commission] receives the fingerprints, forward the fingerprints |
|
to the Department of Public Safety or the Federal Bureau of |
|
Investigation. If the fingerprints are forwarded to the Department |
|
of Public Safety, the Department of Public Safety [department] |
|
shall: |
|
(1) classify the fingerprints and check the |
|
fingerprints against the Department of Public Safety's |
|
[department's] fingerprint files; and |
|
(2) report to the department [commission] the |
|
Department of Public Safety's [department's] findings concerning |
|
the existence or lack of a criminal record of the applicant. |
|
(e) The department [commission] may not issue a racetrack |
|
license until the report under Subsection (d) is made to the |
|
department [commission]. The department [commission] may issue a |
|
temporary occupational license before the report is made to the |
|
department [commission]. |
|
SECTION 5.03. Section 2025.051, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL |
|
PENALTY. A person may not conduct wagering on a horse or greyhound |
|
race meeting without first obtaining a racetrack license issued by |
|
the department [commission]. A person who violates this section |
|
commits an offense. |
|
SECTION 5.04. Sections 2025.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to submit an |
|
application, on a form prescribed by the department [commission], |
|
containing the following information: |
|
(1) if the applicant is an individual: |
|
(A) the individual's full name; |
|
(B) the individual's date of birth; |
|
(C) the individual's physical description; |
|
(D) the individual's current address and |
|
telephone number; and |
|
(E) a statement by the individual disclosing any |
|
arrest or conviction for a felony or for a misdemeanor, except a |
|
misdemeanor under Subtitle C, Title 7, Transportation Code, or a |
|
similar misdemeanor traffic offense; |
|
(2) if the applicant is a corporation: |
|
(A) the state of incorporation; |
|
(B) the names and addresses of the corporation's |
|
agents for service of process in this state; |
|
(C) the name and address of each officer and |
|
director of the corporation; |
|
(D) the name and address of each stockholder of |
|
the corporation; |
|
(E) for each individual named under this |
|
subdivision, the information required by Subdivision (1); and |
|
(F) identification of: |
|
(i) any other beneficial owner of a share in |
|
the applicant that has absolute or contingent voting rights; |
|
(ii) any other person who directly or |
|
indirectly exercises any participation in the applicant; and |
|
(iii) any other ownership interest in the |
|
applicant that the applicant making its best effort is able to |
|
identify; |
|
(3) if the applicant is an unincorporated business |
|
association: |
|
(A) the name and address of each member of the |
|
association and, for each individual named under this subdivision, |
|
the information required by Subdivision (1); and |
|
(B) identification of: |
|
(i) any other person who exercises voting |
|
rights in the applicant or directly or indirectly exercises any |
|
participation in the applicant; and |
|
(ii) any other ownership interest in the |
|
applicant that the applicant making its best effort is able to |
|
identify; |
|
(4) the exact location at which a race meeting is to be |
|
conducted; |
|
(5) if the racetrack is in existence, whether it is |
|
owned by the applicant and, if leased to the applicant: |
|
(A) the name and address of the owner; and |
|
(B) if the owner is a corporation or |
|
unincorporated business association, the name and address of each |
|
officer and director, any stockholder or member, and each agent for |
|
service of process in this state; |
|
(6) if construction of the racetrack has not been |
|
initiated, whether it is to be owned by the applicant and, if it is |
|
to be leased to the applicant: |
|
(A) the name and address of the prospective |
|
owner; and |
|
(B) if the owner is a corporation or |
|
unincorporated business association, the information required by |
|
Subdivision (5)(B); |
|
(7) identification of: |
|
(A) any other beneficial owner of a share that |
|
has absolute or contingent voting rights in the owner or |
|
prospective owner of the racetrack; |
|
(B) any other person that directly or indirectly |
|
exercises any participation in the owner or prospective owner; and |
|
(C) all other ownership interest in the owner or |
|
prospective owner that the applicant making its best effort is able |
|
to identify; |
|
(8) a detailed statement of the applicant's assets and |
|
liabilities; |
|
(9) the type of racing to be conducted and the dates |
|
requested; |
|
(10) proof of residency as required by Section |
|
2025.201; and |
|
(11) any other information required by the department |
|
[commission]. |
|
(b) An application must be attested [sworn] to: |
|
(1) by the applicant; or |
|
(2) if the applicant is a corporation or association, |
|
by its chief executive officer. |
|
SECTION 5.05. Sections 2025.053(a) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to pay the required |
|
application fee. The fee must accompany the application and be paid |
|
in the form of a cashier's check, [or] certified check, or other |
|
form of payment acceptable to the department. |
|
(c) Notwithstanding this section, if a licensed racetrack |
|
petitions for a higher racetrack classification, the department |
|
[commission] shall impose fees equal to the difference between the |
|
fees previously paid and the fees required for the higher |
|
classification. |
|
SECTION 5.06. Sections 2025.054(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall require each |
|
applicant for an original racetrack license to submit with the |
|
application for inspection and review by the department |
|
[commission] a copy of each management, concession, and totalisator |
|
contract associated with the proposed license at the proposed |
|
location in which the applicant has an interest. |
|
(b) An applicant or license holder shall: |
|
(1) advise the department [commission] of any change |
|
in any management, concession, or totalisator contract; and |
|
(2) at the request of the department, provide any |
|
information the department considers necessary to review the |
|
change. |
|
SECTION 5.07. Sections 2025.055 and 2025.056, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.055. CONFIDENTIALITY OF APPLICATION DOCUMENTS. |
|
Documents submitted to the department [commission] under Sections |
|
2025.051-2025.054 by an applicant are subject to discovery in a |
|
suit brought under this subtitle but are not public records and are |
|
not subject to Chapter 552, Government Code. |
|
Sec. 2025.056. BACKGROUND CHECK. (a) The department |
|
[commission] shall require a complete personal, financial, and |
|
business background check of the applicant or of any person who owns |
|
an interest in or exercises control over an applicant for a |
|
racetrack license, including the partners, stockholders, |
|
concessionaires, management personnel, management firms, and |
|
creditors. |
|
(b) The department may [commission shall] refuse to issue or |
|
renew a license or may revoke a license if[, in the commission's |
|
sole discretion,] the background checks reveal anything that may be |
|
detrimental to the public interest or the racing industry. A |
|
proceeding under this section is subject to Subchapter G, Chapter |
|
51. |
|
(c) The executive director [commission] may not hold a |
|
hearing on the application, or any part of the application, of a |
|
racetrack license applicant before the 14th day after the date the |
|
completed background check of the applicant has been on file with |
|
the department [commission]. |
|
SECTION 5.08. Section 2025.057(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] may, at any time, require a |
|
holder of or applicant for a racetrack license to post security in |
|
an amount reasonably necessary, as provided by commission rule, to |
|
adequately ensure the license holder's or applicant's compliance |
|
with substantive requirements of this subtitle and commission |
|
rules. |
|
SECTION 5.09. Section 2025.058, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.058. NOTIFICATION OF COMPLETED APPLICATION. When |
|
all requirements for the applicant's licensure described in this |
|
chapter have been satisfied, the department [commission] shall |
|
notify the applicant that the application is complete. |
|
SECTION 5.10. Sections 2025.101(b), (c), (e), and (f), |
|
Occupations Code, are amended to read as follows: |
|
(b) In considering an application for a horse racetrack |
|
license under this chapter, the department [commission] shall give |
|
additional weight to evidence concerning an applicant who has |
|
experience operating a horse racetrack licensed under this |
|
subtitle. |
|
(c) The department [commission] may not issue a license to |
|
operate a class 1 or class 2 racetrack or a greyhound racetrack to a |
|
corporation unless: |
|
(1) the corporation is incorporated under the laws of |
|
this state; and |
|
(2) a majority of any of its corporate stock is owned |
|
at all times by individuals who meet the residency qualifications |
|
prescribed by Section 2025.201 for individual applicants. |
|
(e) Subsections (c) and (d) and Section 2025.201(a)(10) |
|
[2025.201(a)(12)] do not apply to an applicant for or the holder of |
|
a racetrack license if the applicant, the license holder, or the |
|
license holder's parent company is a publicly traded company. |
|
(f) The department [commission] may condition the issuance |
|
of a license under this chapter on the observance of commission |
|
rules. [The commission may amend the rules at any time and may |
|
condition the continued holding of the license on compliance with |
|
the rules as amended.] |
|
SECTION 5.11. Section 2025.102, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.102. QUALIFICATIONS FOR ISSUANCE OF RACETRACK |
|
LICENSE. (a) The department [commission] may issue a racetrack |
|
license to a qualified person if the department [commission]: |
|
(1) determines that the conduct of race meetings at |
|
the proposed racetrack and location: |
|
(A) will be in the public interest; |
|
(B) complies with all zoning laws; and |
|
(C) complies with this subtitle and commission |
|
rules; and |
|
(2) determines by clear and convincing evidence that |
|
the applicant will comply with all criminal laws of this state. |
|
(b) In determining whether to grant or deny an application |
|
for any class of racetrack license, the department [commission] may |
|
consider: |
|
(1) the applicant's financial stability; |
|
(2) the applicant's resources for supplementing the |
|
purses for races for various breeds; |
|
(3) the location of the proposed racetrack; |
|
(4) the effect of the proposed racetrack on traffic |
|
flow; |
|
(5) facilities for patrons and occupational license |
|
holders; |
|
(6) facilities for race animals; |
|
(7) availability to the racetrack of support services |
|
and emergency services; |
|
(8) the experience of the applicant's employees; |
|
(9) the potential for conflict with other licensed |
|
race meetings; |
|
(10) the anticipated effect of the race meeting on the |
|
horse or greyhound breeding industry in this state; and |
|
(11) the anticipated effect of the race meeting on the |
|
state and local economy from tourism, increased employment, and |
|
other sources. |
|
(c) The department [commission] shall make a determination |
|
on a pending application not later than the 120th day after the date |
|
the department [commission] provides the notice required under |
|
Section 2025.058. |
|
SECTION 5.12. Sections 2025.103(a), (c), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(a) After a racetrack association has been granted a license |
|
to operate a racetrack and before the completion of construction at |
|
the designated place for which the license was issued, the |
|
department [commission] may, on application by the racetrack |
|
association, issue a temporary license that authorizes the |
|
racetrack association to conduct races at a location in the same |
|
county until the earlier of: |
|
(1) the second anniversary of the date of issuance of |
|
the temporary license; or |
|
(2) the completion of the permanent facility. |
|
(c) The department [commission] may set conditions and |
|
standards for issuance of a temporary license and allocation of |
|
appropriate race days. |
|
(d) The department [commission] may not issue a new |
|
temporary license or an extension of a temporary license to a person |
|
or to an individual belonging to a corporation or association that |
|
has been granted a temporary license after the temporary license |
|
has expired. |
|
SECTION 5.13. Sections 2025.104(a), (b), and (d), |
|
Occupations Code, are amended to read as follows: |
|
(a) The department [commission] shall designate each |
|
racetrack license as an active license or an inactive license. The |
|
department [commission] may change the designation of a racetrack |
|
license as appropriate. |
|
(b) The department [commission] shall designate a racetrack |
|
license as an active license if the license holder: |
|
(1) holds live racing events at the racetrack; or |
|
(2) makes good faith efforts to conduct live racing. |
|
(d) Before the first anniversary of the date a new racetrack |
|
license is issued, the department [commission] shall conduct an |
|
evaluation of the license to determine whether the license is an |
|
active or inactive license. |
|
SECTION 5.14. Section 2025.105, Occupations Code, is |
|
amended by amending Subsections (a), (b), (c), (d), and (e) and |
|
adding Subsection (g) to read as follows: |
|
(a) The commission by rule shall establish an annual renewal |
|
process for inactive licenses and may require the license holder to |
|
provide any information required for an original license |
|
application under this subtitle. An inactive license holder must |
|
complete the annual renewal process established under this section |
|
until the department [commission]: |
|
(1) designates the license as an active license; or |
|
(2) refuses to renew the license. |
|
(b) In determining whether to renew an inactive license, the |
|
department [commission] shall consider: |
|
(1) the inactive license holder's: |
|
(A) financial stability; |
|
(B) ability to conduct live racing; |
|
(C) ability to construct and maintain a |
|
racetrack; and |
|
(D) other good faith efforts to conduct live |
|
racing; and |
|
(2) other necessary factors considered in the issuance |
|
of the original license. |
|
(c) The department [commission] may refuse to renew an |
|
inactive license if, after notice and a hearing, the department |
|
[commission] determines that: |
|
(1) renewal of the license is not in the best interests |
|
of the racing industry or the public; or |
|
(2) the license holder has failed to make a good faith |
|
effort to conduct live racing. |
|
(d) The department [commission] shall consult with members |
|
of the racing industry and other key stakeholders in developing the |
|
license renewal process under this section. |
|
(e) The commission shall set and the department shall |
|
collect renewal fees in amounts reasonable and necessary to cover |
|
the costs of administering and enforcing this section. |
|
(g) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
SECTION 5.15. Section 2025.106, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.106. DEPARTMENT [COMMISSION] REVIEW OF ACTIVE |
|
RACETRACK LICENSE; FEE. (a) The department [commission] shall |
|
review the ownership and management of an active license issued |
|
under this chapter every five years beginning on the fifth |
|
anniversary of the date of issuance of the license. |
|
(b) In performing the review, the department [commission] |
|
may require the license holder to provide any information that |
|
would be required to be provided in connection with an original |
|
license application under this chapter. |
|
(c) The department [commission] shall charge fees for the |
|
review in amounts set by the commission as sufficient to implement |
|
this section. |
|
SECTION 5.16. Section 2025.107(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) If the death of any person causes a violation of the |
|
licensing provisions of this subtitle, the department [commission] |
|
may issue, in accordance with commission rules, a temporary license |
|
for a period not to exceed one year. |
|
SECTION 5.17. Sections 2025.108 and 2025.151, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.108. RACETRACK LICENSE ANNUAL FEE. The |
|
commission may prescribe a reasonable annual fee to be paid to the |
|
department by each racetrack license holder. The fee must be in an |
|
amount sufficient to provide that the total amount of fees imposed |
|
under this section, the license fees prescribed under Section |
|
2025.001(c), and the renewal fees prescribed under Section |
|
2025.105(e) are sufficient to cover the costs of administering and |
|
enforcing this subtitle. |
|
Sec. 2025.151. LIMITATION ON NUMBER OF GREYHOUND RACETRACK |
|
LICENSES. The department [commission] may not issue licenses for |
|
more than three greyhound racetracks in this state. |
|
SECTION 5.18. Section 2025.201, Occupations Code, is |
|
amended by amending Subsections (a) and (c) and adding Subsection |
|
(d) to read as follows: |
|
(a) The department [commission] may refuse to issue a |
|
racetrack license or may revoke or suspend a license if, after |
|
notice and hearing, the department [commission] finds that the |
|
applicant or license holder, as appropriate: |
|
(1) has been convicted of a violation of this subtitle |
|
or a commission rule, or has aided, abetted, or conspired to commit |
|
a violation of this subtitle or a commission rule; |
|
(2) has been convicted of a felony or misdemeanor [a |
|
crime involving moral turpitude], including a conviction for which |
|
the punishment received was a suspended sentence, probation, or a |
|
nonadjudicated conviction, that is reasonably related to the |
|
person's present fitness to hold a license under this subtitle; |
|
(3) [has violated or has caused to be violated this |
|
subtitle or a commission rule in a manner that involves moral |
|
turpitude, as distinguished from a technical violation of this |
|
subtitle or a rule; |
|
[(4)] is unqualified, by experience or otherwise, to |
|
perform the duties required of a license holder under this |
|
subtitle; |
|
(4) [(5)] failed to answer or falsely or incorrectly |
|
answered a question in an application; |
|
(5) [(6)] fails to disclose the true ownership or |
|
interest in a horse or greyhound as required by commission rules; |
|
(6) [(7)] is indebted to this state for any fee or for |
|
the payment of a penalty imposed by this subtitle or a commission |
|
rule; |
|
(7) has developed an incapacity that prevents or could |
|
prevent the applicant or license holder from conducting the |
|
applicant's or license holder's business with reasonable skill and |
|
competence and in a manner that does not endanger public safety; |
|
(8) [is not of good moral character or the person's |
|
reputation as a peaceable, law-abiding citizen in the community |
|
where the person resides is bad; |
|
[(9)] is not at least the minimum age necessary to |
|
purchase alcoholic beverages in this state; |
|
(9) [(10) is in the habit of using alcoholic beverages |
|
to an excess or uses a controlled substance as defined by Chapter |
|
481, Health and Safety Code, or a dangerous drug as defined in |
|
Chapter 483, Health and Safety Code, or is mentally incapacitated; |
|
[(11)] may be excluded from an enclosure under this |
|
subtitle; |
|
(10) [(12)] has not been a United States citizen |
|
residing in this state for the 10 consecutive years preceding the |
|
filing of the application; |
|
(11) [(13)] has improperly used a credential, |
|
including a license certificate or identification card, issued |
|
under this subtitle; |
|
(12) [(14)] resides with a person whose license was |
|
revoked for cause during the 12 months preceding the date of the |
|
present application; |
|
(13) [(15) 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 license is sought are |
|
located; |
|
[(16)] is engaged or has engaged in activities or |
|
practices the department [commission] determines are detrimental |
|
to the best interests of the public and the sport of horse racing or |
|
greyhound racing; or |
|
(14) [(17)] fails to fully disclose the true owners of |
|
all interests, beneficial or otherwise, in a proposed racetrack. |
|
(c) The department [commission] may refuse to issue a |
|
license or may suspend or revoke a license of a license holder under |
|
this subchapter who knowingly or intentionally allows access to an |
|
enclosure where horse races or greyhound races are conducted to a |
|
person: |
|
(1) who has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) whose income is from illegal activities or |
|
enterprises; or |
|
(3) who has been convicted of a violation of this |
|
subtitle. |
|
(d) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
SECTION 5.19. Section 2025.202(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Notwithstanding the requirements of Section 2033.151, |
|
if, after notice and hearing as provided by Section 2033.152, the |
|
commission finds that a racetrack license holder or a person |
|
employed by the racetrack has violated this subtitle or a |
|
commission rule, or if the department [commission] finds during a |
|
review or renewal that the racetrack is ineligible for a license |
|
under this chapter, the commission may: |
|
(1) revoke, suspend, or refuse to renew the racetrack |
|
license; |
|
(2) impose an administrative penalty as provided under |
|
Section 2033.051; or |
|
(3) take any other action as provided by commission |
|
rule. |
|
SECTION 5.20. Section 2025.203(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The executive director [commission] may summarily |
|
suspend a racetrack license if the executive director [commission] |
|
determines that a racetrack at which races or pari-mutuel wagering |
|
are conducted under the license is being operated in a manner that |
|
constitutes an immediate threat to the health, safety, or welfare |
|
of the racing participants or the patrons. |
|
SECTION 5.21. Section 2025.204(d), Occupations Code, is |
|
amended to read as follows: |
|
(d) At the hearing, the department [commission] has the |
|
burden of proof and must present evidence in support of the order. |
|
The license holder requesting the hearing may cross-examine |
|
witnesses and show cause why the order should not be affirmed. |
|
SECTION 5.22. Sections 2025.205, 2025.251, 2025.253, |
|
2025.254, and 2025.255, Occupations Code, are amended to read as |
|
follows: |
|
Sec. 2025.205. SUMMARY SUSPENSION FINAL ORDER. (a) After |
|
the hearing on the suspension of a racetrack license, the |
|
commission [executive director] shall affirm, modify, or set aside, |
|
wholly or partly, the summary suspension order. An order affirming |
|
or modifying the summary suspension order is final for purposes of |
|
enforcement and appeal. |
|
(b) A final order under this section may be appealed in the |
|
manner provided by Subchapter G, Chapter 2001, Government Code. |
|
Sec. 2025.251. OCCUPATIONAL LICENSE REQUIRED. (a) Except |
|
as provided by this section, a person, other than as a spectator or |
|
as a person placing a wager, may not participate in racing with |
|
pari-mutuel wagering without first obtaining a license from the |
|
department [commission]. A person may not engage in any occupation |
|
for which commission rules require a license under this subtitle |
|
without first obtaining a license from the department [commission]. |
|
(b) The commission by rule shall categorize the occupations |
|
of racetrack employees and determine the occupations that afford |
|
the employee an opportunity to influence racing with pari-mutuel |
|
wagering. The rules must require an employee to be licensed under |
|
this subtitle if the employee: |
|
(1) works in an occupation determined by the |
|
department [commission] to afford the employee an opportunity to |
|
influence racing with pari-mutuel wagering; or |
|
(2) will likely have significant access to the |
|
backside of a racetrack or to restricted areas of the frontside of a |
|
racetrack. |
|
(c) The commission by rule may require the following persons |
|
to hold an occupational license under this subtitle: |
|
(1) an adoption program employee; |
|
(2) an announcer; |
|
(3) an apprentice jockey; |
|
(4) an assistant farrier, plater, or blacksmith; |
|
(5) an assistant starter; |
|
(6) an assistant trainer; |
|
(7) an assistant trainer/owner; |
|
(8) an association assistant management employee; |
|
(9) an association management employee; |
|
(10) an association officer or director; |
|
(11) an association staff employee; |
|
(12) an association employee other than an employee |
|
described in this subsection; |
|
(13) an association veterinarian; |
|
(14) an authorized agent; |
|
(15) a chaplain; |
|
(16) a chaplain assistant; |
|
(17) an equine dental provider; |
|
(18) an exercise rider; |
|
(19) a farrier, plater, or blacksmith; |
|
(20) a groom/exercise rider; |
|
(21) a groom/hot walker; |
|
(22) a groom/pony person; |
|
(23) a jockey; |
|
(24) a jockey agent; |
|
(25) a kennel helper; |
|
(26) a kennel owner; |
|
(27) a kennel owner/owner; |
|
(28) a kennel owner/owner/trainer; |
|
(29) a kennel owner/trainer; |
|
(30) a kennel registration employee; |
|
(31) a lead-out; |
|
(32) a maintenance employee; |
|
(33) a medical employee; |
|
(34) miscellaneous racetrack employees; |
|
(35) a multiple owner/stable/farm registration |
|
employee; |
|
(36) a mutuel clerk; |
|
(37) a mutuel employee other than a clerk; |
|
(38) an owner; |
|
(39) an owner-trainer; |
|
(40) a pony person; |
|
(41) a racing industry representative; |
|
(42) a racing industry employee; |
|
(43) a racing official; |
|
(44) a security officer; |
|
(45) a stable foreman; |
|
(46) a tattooer; |
|
(47) a test technician; |
|
(48) a trainer; |
|
(49) a training facility employee; |
|
(50) a training facility general manager; |
|
(51) a valet; |
|
(52) a vendor concessionaire; |
|
(53) a vendor concessionaire employee; |
|
(54) a vendor-totalisator company; |
|
(55) a vendor-totalisator employee; |
|
(56) a veterinarian; and |
|
(57) a veterinarian assistant. |
|
Sec. 2025.253. EXAMINATION NOTIFICATION. (a) If an |
|
examination is required for the issuance of a license under this |
|
subchapter, the department [commission] shall notify each examinee |
|
of the results of the examination not later than the 30th day after |
|
the date the licensing examination is administered under this |
|
subtitle. |
|
(b) If requested in writing by a person who fails a |
|
licensing examination administered under this subtitle, the |
|
department [commission] shall furnish the person with an analysis |
|
of the person's performance on the examination. |
|
Sec. 2025.254. ISSUANCE OF LICENSE. The department |
|
[commission] shall issue a license to a qualified person on |
|
application and payment of the license fee. |
|
Sec. 2025.255. ISSUANCE OF IDENTIFICATION CARD. The |
|
department [commission] shall issue a license certificate under |
|
this subchapter in the form of an identification card with a |
|
photograph and other information as prescribed by the department |
|
[commission]. |
|
SECTION 5.23. Section 2025.256(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) In setting the fee schedule under Subsection (a), the |
|
commission shall include the cost of criminal history record |
|
information obtained under Section 2023.058. The department |
|
[commission] may determine the best method for recovering this cost |
|
and complying with this section, including collecting the costs |
|
over an extended period. |
|
SECTION 5.24. Section 2025.258(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] shall obtain criminal |
|
history record information on each applicant renewing an |
|
occupational license under this subchapter. |
|
SECTION 5.25. Section 2025.259, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2025.259. LICENSE VALID THROUGHOUT STATE. A license |
|
issued under this subchapter is valid, as determined by the |
|
department [commission], at all race meetings conducted in this |
|
state. |
|
SECTION 5.26. Section 2025.260(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) Pending investigation of an applicant's qualifications |
|
to receive an original or renewal license, the department |
|
[commission] may issue a temporary license to an applicant under |
|
this subchapter whose application appears to comply with the |
|
requirements of law and who has paid the necessary fee. |
|
SECTION 5.27. Sections 2025.261 and 2025.262, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2025.261. RECIPROCAL LICENSES; OUT-OF-STATE |
|
APPLICANTS. (a) The executive director [commission] may waive any |
|
prerequisite to obtaining a license for an applicant, including any |
|
requirement to submit a set of fingerprints, after reviewing the |
|
applicant's credentials and determining that the applicant holds a |
|
license from another state that has license requirements |
|
substantially equivalent to the requirements of this state. |
|
(b) The executive director [commission] may waive any |
|
prerequisite to obtaining a license, including any requirement to |
|
submit a set of fingerprints, for an applicant who holds a license |
|
from another state with which this state has a reciprocity |
|
agreement. The department [commission] may enter into agreements |
|
with other states to allow for licensing by reciprocity. |
|
Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND |
|
SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department |
|
[commission] may refuse to issue any original or renewal license |
|
under this subchapter or may revoke or suspend the license if, after |
|
notice and hearing, the department [commission] finds that the |
|
applicant or license holder, as appropriate: |
|
(1) has been convicted of a violation of this subtitle |
|
or a commission rule or has aided, abetted, or conspired to commit a |
|
violation of this subtitle or a commission rule; |
|
(2) has been convicted of a felony or misdemeanor [a |
|
crime involving moral turpitude] that is reasonably related to the |
|
person's present fitness to hold a license under this subtitle; |
|
(3) [has violated or has caused to be violated this |
|
subtitle or a commission rule in a manner that involves moral |
|
turpitude, as distinguished from a technical violation of this |
|
subtitle or a rule; |
|
[(4)] is unqualified, by experience or otherwise, to |
|
perform the duties required of a license holder under this |
|
subtitle; |
|
(4) [(5)] failed to answer or has falsely or |
|
incorrectly answered a question in an original or renewal |
|
application; |
|
(5) [(6)] fails to disclose the true ownership or |
|
interest in a horse or greyhound as required by commission rules; |
|
(6) [(7)] is indebted to this state for any fee or for |
|
the payment of a penalty imposed by this subtitle or a commission |
|
rule; |
|
(7) has developed an incapacity that prevents or could |
|
prevent the applicant or license holder from conducting the |
|
applicant's or license holder's business with reasonable skill and |
|
competence and in a manner that does not endanger public safety; |
|
(8) [is not of good moral character or the person's |
|
reputation as a peaceable, law-abiding citizen in the community |
|
where the person resides is bad; |
|
[(9) 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 incapacitated; |
|
[(10)] may be excluded from an enclosure under this |
|
subtitle; |
|
(9) [(11)] has improperly used a temporary pass, |
|
license certificate, credential, or identification card issued |
|
under this subtitle; |
|
(10) [(12)] resides with a person whose license was |
|
revoked for cause during the 12 months preceding the date of the |
|
present application; |
|
(11) [(13)] has failed or refused to furnish a true |
|
copy of the application to the department's [commission's] district |
|
office in the district in which the premises for which the license |
|
is sought are located; or |
|
(12) [(14)] is engaged or has engaged in activities or |
|
practices that are detrimental to the best interests of the public |
|
and the sport of horse racing or greyhound racing. |
|
(b) A proceeding under this section is a contested case for |
|
purposes of Chapter 2001, Government Code. |
|
ARTICLE 6. RACETRACK OPERATIONS AND PREMISES |
|
SECTION 6.01. Section 2026.003, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.003. FINANCIAL DISCLOSURE. (a) The commission |
|
by rule shall require that each racetrack association that holds a |
|
license for a class 1 racetrack, class 2 racetrack, or greyhound |
|
racetrack annually file with the department [commission] a detailed |
|
financial statement that: |
|
(1) contains the names and addresses of all |
|
stockholders, members, and owners of any interest in the racetrack; |
|
(2) indicates compliance during the filing period with |
|
Section 2025.101; and |
|
(3) includes any other information required by the |
|
department [commission]. |
|
(b) Each transaction that involves an acquisition or a |
|
transfer of a pecuniary interest in the racetrack association must |
|
receive prior approval from the department [commission]. A |
|
transaction that changes the ownership of the racetrack association |
|
requires submission of updated information of the type required to |
|
be disclosed under Section 2025.052 and payment of a fee to recover |
|
the costs of the criminal background check. |
|
SECTION 6.02. Section 2026.004(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) If the racetrack or enclosure designated in the license |
|
becomes unsuitable for racing because of fire, flood, or other |
|
catastrophe, the affected racetrack association, with the prior |
|
approval of the executive director [commission], may conduct a race |
|
meeting or any remaining portion of a meeting temporarily at any |
|
other racetrack if the other racetrack license holder: |
|
(1) is licensed by the department [commission] to |
|
conduct the same type of racing as may be conducted by the affected |
|
racetrack association; and |
|
(2) consents to the usage. |
|
SECTION 6.03. Sections 2026.005 and 2026.006, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2026.005. CHANGE OF RACING LOCATION. On request of a |
|
racetrack association, the department [commission] shall amend a |
|
racetrack license to change the location of the racetrack if the |
|
department [commission] determines that: |
|
(1) the conduct of race meetings at the proposed new |
|
location will be in the public interest; |
|
(2) there was not a competing applicant for the |
|
original license; and |
|
(3) the racetrack association's desire to change |
|
location is not the result of a subterfuge in the original licensing |
|
proceeding. |
|
Sec. 2026.006. LEASE OF RACETRACK PREMISES. (a) The |
|
commission by rule may provide for the department to authorize a |
|
racetrack association, as lessee, to contract for the lease of a |
|
racetrack and the surrounding structures. |
|
(b) The department [commission] may not approve a lease if: |
|
(1) the lease appears to be a subterfuge to evade |
|
compliance with Section 2025.101 or 2025.201; |
|
(2) the racetrack and surrounding structures do not |
|
conform to the rules adopted under this subtitle; or |
|
(3) the lessee, prospective lessee, or lessor is |
|
disqualified from holding a racetrack license. |
|
(c) Each lessor and lessee under this section must comply |
|
with the disclosure requirements of Section 2025.052(a)(1). The |
|
department [commission] may not approve a lease if the lessor and |
|
lessee do not provide the required information. |
|
SECTION 6.04. Section 2026.007(e), Occupations Code, is |
|
amended to read as follows: |
|
(e) The commission shall adopt rules implementing this |
|
section, including rules: |
|
(1) requiring the report and correction of: |
|
(A) an inappropriate condition on the premises of |
|
a racetrack, including a failure to properly maintain the premises, |
|
that interferes with the administration of this subtitle; and |
|
(B) a condition on the premises that makes the |
|
premises unsafe for a race participant, patron, or animal; and |
|
(2) determining the methods and manner by which the |
|
executive director may determine and remedy inappropriate or unsafe |
|
conditions on the premises, including the methods and manner in |
|
which the department [executive director] may conduct inspections |
|
of the premises and remedy emergency situations. |
|
SECTION 6.05. Section 2026.008, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.008. SUPERVISION OF CONSTRUCTION, RENOVATION, |
|
AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule shall |
|
adopt a method of supervising and approving the construction, |
|
renovation, or maintenance of any building or improvement on the |
|
premises of a racetrack. |
|
(b) The commission shall adopt rules relating to: |
|
(1) the approval of plans and specifications; |
|
(2) the contents of plans and specifications; |
|
(3) the maintenance of records to ensure compliance |
|
with approved plans and specifications; |
|
(4) the content and filing of construction progress |
|
reports by the racetrack association to the department |
|
[commission]; |
|
(5) the inspection by the department [commission] or |
|
others; |
|
(6) the method for making a change or amendment to an |
|
approved plan or specification; and |
|
(7) any other method of supervision or oversight |
|
necessary. |
|
(c) If the department [commission] has grounds to believe |
|
that a racetrack association has failed to comply with the |
|
requirements of this section, a representative of the racetrack |
|
association shall appear before the commission or department to |
|
consider the issue of compliance with rules adopted under this |
|
section. |
|
(d) Before a building or improvement may be used by a |
|
racetrack association, the department [commission] shall determine |
|
whether: |
|
(1) the construction, renovation, or maintenance of |
|
the building or improvement was completed in accordance with the |
|
approved plans and specifications; and |
|
(2) other [commission] requirements under this |
|
subtitle were met. |
|
(e) If the department [commission] determines that the |
|
racetrack association failed to comply with a requirement of this |
|
section or a rule adopted under this section, the department |
|
[commission] shall initiate an enforcement action against the |
|
racetrack association. In addition to any other authorized |
|
enforcement action, the department [commission] may rescind any |
|
live or simulcast race date of any racetrack association that has |
|
failed to comply with the requirements of this section. |
|
SECTION 6.06. Section 2026.013(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The department [commission] may impose disciplinary |
|
action against a racetrack for violations of this subtitle and |
|
commission rules by the racetrack's employees as provided by |
|
Section 2025.202. |
|
SECTION 6.07. Section 2026.051, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR |
|
EJECTION. The commission shall adopt rules providing for the |
|
exclusion or ejection from an enclosure where horse or greyhound |
|
races are conducted, or from specified portions of an enclosure, of |
|
a person: |
|
(1) who has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) whose income is from illegal activities or |
|
enterprises; |
|
(3) who has been convicted of a violation of this |
|
subtitle; |
|
(4) who has been convicted of theft; |
|
(5) who has been convicted under the penal law of |
|
another jurisdiction for committing an act that would have |
|
constituted a violation of any rule described in this section; |
|
(6) who has committed a corrupt or fraudulent act in |
|
connection with horse or greyhound racing or pari-mutuel wagering |
|
or who has committed any act tending or intended to corrupt horse or |
|
greyhound racing or pari-mutuel wagering; |
|
(7) who is under suspension or has been excluded or |
|
ejected from a racetrack by the department [commission] or a |
|
steward in this state or by a corresponding authority in another |
|
state because of corrupt or fraudulent practices or other acts |
|
detrimental to racing; |
|
(8) who has submitted a forged pari-mutuel ticket or |
|
has altered or forged a pari-mutuel ticket for cashing or who has |
|
cashed or caused to be cashed an altered, raised, or forged |
|
pari-mutuel ticket; |
|
(9) [who has been convicted of committing a lewd or |
|
lascivious act or other crime involving moral turpitude; |
|
[(10)] who is guilty of [boisterous or] disorderly |
|
conduct while inside an enclosure; |
|
(10) [(11)] who is an agent [or habitual associate] of |
|
a person excludable under this section; or |
|
(11) [(12)] who has been convicted of a felony. |
|
SECTION 6.08. Sections 2026.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) A person who is excluded or ejected from an enclosure |
|
under a commission rule may apply to the department [commission] |
|
for a hearing on the question of the applicability of the rule to |
|
that person. |
|
(b) A proceeding [An application for a hearing] under this |
|
section is [Subsection (a) constitutes] a contested case for |
|
purposes of [under] Chapter 2001, Government Code. If, after a |
|
hearing as provided under Subchapter C of that chapter, the |
|
commission determines that the exclusion or ejection was proper: |
|
(1) the commission shall issue an order to that effect |
|
[and enter the order in the commission's minutes]; and |
|
(2) the person shall continue to be excluded from each |
|
racetrack association's enclosure. |
|
SECTION 6.09. Section 2026.102(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A class 1 racetrack is a racetrack on which live racing |
|
is conducted for a number of days in a calendar year, as determined |
|
by the department [commission] under Subchapter A, Chapter 2029. |
|
SECTION 6.10. Section 2026.103, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.103. CLASS 2 RACETRACK. (a) A class 2 racetrack |
|
is a racetrack on which live racing is conducted for a number of |
|
days, as determined by the department [commission] under Subchapter |
|
A, Chapter 2029. |
|
(b) A class 2 racetrack is entitled to conduct 60 days of |
|
live racing in a calendar year. A racetrack association may request |
|
additional or fewer days of live racing. If, after receipt of a |
|
request from a racetrack association, the department [commission] |
|
determines additional or fewer days to be economically feasible and |
|
in the best interest of this state and the racing industry, the |
|
department [commission] shall grant the request. |
|
(c) The department [commission] may permit a racetrack |
|
association that holds a class 2 racetrack license and that is |
|
located in a national historic district to conduct horse races for |
|
more than 60 days in a calendar year. |
|
SECTION 6.11. Section 2026.105(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A racetrack association that holds a class 4 racetrack |
|
license may conduct live races for a number of days not to exceed |
|
five days in a calendar year on dates selected by the racetrack |
|
association and approved by the department [commission]. |
|
SECTION 6.12. Section 2026.106, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2026.106. WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR |
|
CLASS 4 RACETRACK. (a) In considering an application for a class 4 |
|
racetrack license, except as provided by Subsection (b), the |
|
executive director [commission] may waive or defer compliance with |
|
the department's [commission's] standards regarding the physical |
|
facilities or operations of a horse racetrack. |
|
(b) The executive director [commission] may not waive or |
|
defer compliance with standards that relate to the testing of |
|
horses or license holders for the presence of a prohibited |
|
substance, including a prohibited drug or chemical. |
|
(c) If the executive director [commission] defers |
|
compliance, the department [commission] shall, when granting the |
|
application, establish a schedule under which the license holder |
|
must comply with the standards. |
|
SECTION 6.13. Section 2026.107(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The number of race dates allowed under this subchapter |
|
relates only to live race dates. A racetrack may present simulcast |
|
races on other dates as approved by the department [commission]. |
|
SECTION 6.14. Sections 2026.151 and 2026.152, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2026.151. DEPARTMENT [COMMISSION] APPROVAL REQUIRED. |
|
(a) All concession, management, and totalisator contracts |
|
submitted by an applicant under Section 2025.054 must have the |
|
prior approval of the department [commission]. |
|
(b) The department [commission] shall refuse to approve a |
|
concession or management contract if, in the sole discretion of the |
|
department [commission], the background checks conducted under |
|
Section 2025.056 reveal anything that might be detrimental to the |
|
public interest or the racing industry. |
|
Sec. 2026.152. DEPARTMENT [COMMISSION] REVIEW OF SECURITY |
|
PLANS AND CERTAIN CONTRACTS. (a) On receipt of a plan for the |
|
security of a racetrack, or a copy of a concession, management, or |
|
totalisator contract for review under Section 2026.151, the |
|
department [commission] shall review the security plan or contract |
|
[in an executive session]. Documents submitted by an applicant to |
|
the department [commission] under this section or Section 2025.052 |
|
or 2025.054 are subject to discovery in a suit brought under this |
|
subtitle but are not public records and are not subject to Chapter |
|
552, Government Code. |
|
(b) In reviewing and approving contracts under Subsection |
|
(a), the department [commission] shall attempt to ensure the |
|
involvement of minority-owned businesses whenever possible. |
|
SECTION 6.15. Section 2026.153(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The department [commission] may not approve a |
|
management contract to operate or manage a racetrack owned by a |
|
governmental entity unless the racetrack license holder is an owner |
|
of the entity that proposes to manage the racetrack. |
|
ARTICLE 7. WAGERING |
|
SECTION 7.01. Section 2027.001(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this subtitle must include rules to: |
|
(1) regulate wagering by a person licensed under this |
|
subtitle; |
|
(2) prohibit wagering by a department [commission] |
|
employee; |
|
(3) prohibit a racetrack association from accepting a |
|
wager made by telephone; and |
|
(4) prohibit a racetrack association from accepting a |
|
wager made on credit. |
|
SECTION 7.02. Sections 2027.003 and 2027.004, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2027.003. WAGERING COMPUTATION EQUIPMENT. (a) |
|
Wagering authorized under this chapter may be calculated only by |
|
state-of-the-art computational equipment approved by the |
|
department [commission]. |
|
(b) The department [commission] may not require the use of a |
|
particular make of equipment. |
|
Sec. 2027.004. AUTOMATED TELLER MACHINES: RULES, |
|
LIMITATIONS, AND FEES. (a) The commission shall: |
|
(1) adopt rules providing for the use of automated |
|
teller machines in an enclosure; and |
|
(2) direct the department to limit the use of |
|
automated teller machines by allowing a person access only to the |
|
person's checking account at a bank or other financial institution. |
|
(b) A racetrack association that allows an automated teller |
|
machine in an enclosure as provided by Subsection (a) shall collect |
|
a fee of $1 for each transaction authorized under that subsection |
|
and forward the fee to the department [commission]. |
|
(c) The commission shall: |
|
(1) adopt rules providing for collection, reporting, |
|
and auditing of the transaction fee authorized under Subsection |
|
(b); and |
|
(2) direct the department to deposit the fee collected |
|
under Subsection (b) to the credit of the general revenue fund. |
|
SECTION 7.03. Section 2027.006(d), Occupations Code, is |
|
amended to read as follows: |
|
(d) If the racetrack association refuses to pay a claimant |
|
who has established satisfactorily a right to distribution from a |
|
pari-mutuel pool, the claimant may appeal to the department |
|
[commission] under procedures prescribed by commission rule. |
|
SECTION 7.04. Section 2027.052(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) This subtitle may not be construed to allow wagering in |
|
this state on simulcast races at any location other than a racetrack |
|
licensed under this subtitle that has been granted live race dates |
|
by the department [commission]. |
|
SECTION 7.05. The heading to Section 2027.053, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2027.053. DEPARTMENT [COMMISSION] APPROVAL REQUIRED |
|
FOR PARI-MUTUEL POOL INCLUSION. |
|
SECTION 7.06. Section 2027.053(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) With department [commission] approval: |
|
(1) wagers accepted on a simulcast race by any |
|
out-of-state receiving location may be included in the pari-mutuel |
|
pool for the race at the sending in-state racetrack association; |
|
and |
|
(2) wagers accepted by an in-state racetrack |
|
association on a race simulcast from out-of-state may be included |
|
in the pari-mutuel pools for the race at the out-of-state sending |
|
track. |
|
SECTION 7.07. Section 2027.054(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) The department [commission] may not approve wagering on |
|
an interstate simulcast race unless the receiving location consents |
|
to wagering on interstate simulcast races at all other receiving |
|
locations in this state. |
|
ARTICLE 8. PARI-MUTUEL POOLS, PURSES, AND FEES |
|
SECTION 8.01. The heading to Subchapter A, Chapter 2028, |
|
Occupations Code, is amended to read as follows: |
|
SUBCHAPTER A. [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS |
|
SECTION 8.02. Section 2028.001(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) For any organization that receives funds generated by |
|
live or simulcast pari-mutuel racing, the commission shall adopt |
|
rules specifying the reporting, monitoring, and auditing |
|
requirements or other appropriate performance measures for: |
|
(1) any funds distributed to or used by the |
|
organization; and |
|
(2) any function or service provided by the |
|
expenditure of the funds described by Subdivision (1). |
|
SECTION 8.03. Sections 2028.002 and 2028.003, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2028.002. INDEPENDENT AUDIT REPORT; RECORDS REVIEW. |
|
(a) An organization that receives funds generated by live or |
|
simulcast pari-mutuel racing shall annually file with the |
|
department [commission] a copy of an audit report prepared by an |
|
independent certified public accountant. The audit must include a |
|
verification of any performance report sent to or required by the |
|
department [commission]. |
|
(b) The department [commission] may review any record or |
|
book of an organization that submits an independent audit to the |
|
department [commission] as the department [commission] determines |
|
necessary to confirm or further investigate the findings of an |
|
audit or report. |
|
Sec. 2028.003. SUSPENSION AND WITHHOLDING OF FUNDS. The |
|
commission [by rule] may adopt rules authorizing the department to |
|
suspend or withhold funds from an organization: |
|
(1) that the department [commission] determines has |
|
failed to comply with the requirements or performance measures |
|
adopted under Section 2028.001; or |
|
(2) for which material questions on the use of funds by |
|
the organization are raised following an independent audit or other |
|
report to the department [commission]. |
|
SECTION 8.04. Section 2028.102(e), Occupations Code, is |
|
amended to read as follows: |
|
(e) A horse racetrack association may pay a portion of the |
|
revenue set aside under this section to an organization recognized |
|
under Section 2023.051, as provided by a contract approved by the |
|
department [commission]. |
|
SECTION 8.05. Sections 2028.103(a) and (a-1), Occupations |
|
Code, are amended to read as follows: |
|
(a) A horse racetrack association shall set aside for the |
|
Texas-bred program and pay to the department [commission] an amount |
|
equal to one percent of a live multiple two wagering pool and a live |
|
multiple three wagering pool. From the set-aside amounts: |
|
(1) two percent shall be set aside for purposes of |
|
Subchapter F, Chapter 88, Education Code; and |
|
(2) the remaining amount shall be allocated as |
|
follows: |
|
(A) 10 percent may be used by the appropriate |
|
state horse breed registry for administration; and |
|
(B) the remainder shall be used for awards. |
|
(a-1) The department [commission] shall deposit money paid |
|
to the commission under Subsection (a) into the Texas-bred |
|
incentive fund established under Section 2028.301. The department |
|
[commission] shall distribute the money collected under this |
|
section and deposited into the fund to the appropriate state horse |
|
breed registries for the Texas-bred program in accordance with |
|
rules adopted under Subsection (c). |
|
SECTION 8.06. Sections 2028.105(b), (d), and (d-1), |
|
Occupations Code, are amended to read as follows: |
|
(b) A horse racetrack association shall pay to the |
|
department [commission] for use by the appropriate state horse |
|
breed registry, subject to commission rules, 10 percent of the |
|
total breakage from a live pari-mutuel pool or a simulcast |
|
pari-mutuel pool. The appropriate state horse breed registries are |
|
as follows: |
|
(1) the Texas Thoroughbred [Breeders] Association for |
|
Thoroughbred horses; |
|
(2) the Texas Quarter Horse Association for quarter |
|
horses; |
|
(3) the Texas Appaloosa Horse Club for Appaloosa |
|
horses; |
|
(4) the Texas Arabian Breeders Association for Arabian |
|
horses; and |
|
(5) the Texas Paint Horse Breeders Association for |
|
paint horses. |
|
(d) The horse racetrack association shall pay to the |
|
department [commission] for deposit into the Texas-bred incentive |
|
fund established under Section 2028.301 and distribution to the |
|
appropriate state horse breed registry the remaining 80 percent of |
|
the total breakage to be allocated as follows: |
|
(1) 40 percent to the owners of the accredited |
|
Texas-bred horses that finish first, second, or third; |
|
(2) 40 percent to the breeders of accredited |
|
Texas-bred horses that finish first, second, or third; and |
|
(3) 20 percent to the owner of the stallion standing in |
|
this state at the time of conception whose Texas-bred get finish |
|
first, second, or third. |
|
(d-1) The department [commission] shall deposit the |
|
portions of total breakage paid to the department [commission] |
|
under Subsections (b) and (d) into the Texas-bred incentive fund |
|
established under Section 2028.301. The department [commission] |
|
shall distribute the money collected under this section and |
|
deposited into the fund to the appropriate state horse breed |
|
registries in accordance with this section and with rules adopted |
|
by the commission under Section 2028.103. |
|
SECTION 8.07. Section 2028.154(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A greyhound racetrack association shall pay 50 percent |
|
of the breakage to the appropriate state greyhound breed |
|
registry. Of that breakage percentage: |
|
(1) 25 percent is to be used in stakes races; and |
|
(2) 25 percent of that total breakage from a live |
|
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to |
|
the department [commission] for deposit into the Texas-bred |
|
incentive fund established under Section 2028.301. The department |
|
[commission] shall distribute the money collected under this |
|
section and deposited into the fund to the state greyhound breed |
|
registry for use in accordance with this section and commission |
|
rules. |
|
SECTION 8.08. Section 2028.201, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.201. RULES. (a) The commission shall adopt |
|
rules relating to this subchapter and the oversight of the amounts |
|
allocated under Sections 2028.202(b)(1), (2), and (3) |
|
[2028.202(b)] and (c). |
|
(b) The commission shall adopt rules relating to the |
|
oversight of the amounts allocated under Section 2028.202(b)(4). |
|
SECTION 8.09. Sections 2028.202(a), (a-1), and (b), |
|
Occupations Code, are amended to read as follows: |
|
(a) A racetrack association shall distribute from the total |
|
amount deducted as provided by Sections 2028.101 and 2028.152 from |
|
each simulcast pari-mutuel pool and each simulcast cross-species |
|
pari-mutuel pool the following shares: |
|
(1) an amount equal to one percent of each simulcast |
|
pari-mutuel pool to the department [commission] for the |
|
administration of this subtitle; |
|
(2) an amount equal to 1.25 percent of each simulcast |
|
cross-species pari-mutuel pool to the department [commission] for |
|
the administration of this subtitle; |
|
(3) for a horse racetrack 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 2028.103; |
|
(4) for a greyhound racetrack 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 commission rules adopted to promote greyhound |
|
breeding in this state; and |
|
(5) the remainder as the amount set aside for purses, |
|
expenses, the sending track, and the receiving location under a |
|
contract approved by the department [commission] between the |
|
sending track and the receiving location. |
|
(a-1) A racetrack association shall pay to the department |
|
[commission] for deposit into the Texas-bred incentive fund |
|
established under Section 2028.301 the shares to be distributed |
|
under Subsections (a)(3) and (a)(4) for the Texas-bred program. |
|
The department [commission] shall distribute the money collected |
|
under this section and deposited into the fund to the appropriate |
|
state breed registries for use under the Texas-bred program. |
|
(b) From the total amount deducted under Subsection (a), a |
|
greyhound racetrack association that receives an interstate |
|
cross-species simulcast signal shall distribute the following |
|
amounts from each pari-mutuel pool wagered on the signal at the |
|
racetrack: |
|
(1) a fee of 1.5 percent to be paid to the racetrack in |
|
this state sending the signal; |
|
(2) a purse in the amount of 0.75 percent to be paid to |
|
the official state horse breed registry for Thoroughbred horses for |
|
use as purses at racetracks in this state; |
|
(3) a purse in the amount of 0.75 percent to be paid to |
|
the official state horse breed registry for quarter horses for use |
|
as purses at racetracks in this state; and |
|
(4) a purse of 4.5 percent to be deposited in the horse |
|
industry escrow account as [escrowed with the commission in the |
|
manner] provided by Section 2028.204. |
|
SECTION 8.10. Sections 2028.203 and 2028.204, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2028.203. REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If |
|
a racetrack association purchases an interstate simulcast signal |
|
and the signal cost exceeds five percent of the pari-mutuel pool, |
|
the department [commission], from the horse industry escrow |
|
[escrowed] account established under Section 2028.204 |
|
[2028.202(b)(4)], shall reimburse the racetrack association an |
|
amount equal to one-half of the signal cost that exceeds five |
|
percent of the pari-mutuel pool. |
|
Sec. 2028.204. HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND |
|
ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry |
|
escrow account is a trust account in the department's registry |
|
composed of money deposited to the account in accordance with this |
|
subtitle. |
|
(b) A greyhound racetrack association shall deposit into |
|
the horse industry [an] escrow account [in the commission's |
|
registry] the purse set aside under Section 2028.202(b)(4). |
|
(c) [(b)] Any horse racetrack association in this state may |
|
apply to the department [commission] for receipt of money in the |
|
horse industry escrow account for use as purses. Any state horse |
|
breed registry listed in Section 2030.002(a) may apply for receipt |
|
of money in the account for any event that furthers the horse |
|
industry. The department [commission]: |
|
(1) shall determine the horse racetrack associations |
|
and state horse breed registries to be allocated money from the |
|
account and the percentages to be allocated, taking into |
|
consideration purse levels, racing opportunities, and the |
|
financial status of the requesting racetrack association or |
|
requesting breed registry; and |
|
(2) may not annually allocate more than 70 percent of |
|
the amount deposited into the account to horse racetrack |
|
associations for use as purses. |
|
SECTION 8.11. Section 2028.2041, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS IN HORSE |
|
INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT |
|
BALANCE. (a) In each state fiscal biennium, the comptroller shall |
|
deposit the amounts allocated under Section 151.801(c-3), Tax Code, |
|
into the horse industry escrow account established under Section |
|
2028.204 [2028.204(b)], until the comptroller determines the |
|
amount deposited into the account in that fiscal biennium equals |
|
the greater of: |
|
(1) the amount appropriated to the department |
|
[commission] for the purposes of Section 2028.204 for that fiscal |
|
biennium; or |
|
(2) $50 million. |
|
(b) Once the comptroller determines the greater of the |
|
amount described by Subsection (a)(1) or (2) has been deposited |
|
during a state fiscal biennium into the horse industry escrow |
|
account established under Section 2028.204 [2028.204(b)], for the |
|
remainder of that fiscal biennium the comptroller shall deposit the |
|
amounts allocated under Section 151.801(c-3), Tax Code, into the |
|
general revenue fund. |
|
(c) The balance of the horse industry escrow account |
|
established under Section 2028.204 [2028.204(b)] shall not exceed |
|
$50 million. |
|
SECTION 8.12. Section 2028.205, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.205. ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY |
|
ESCROW ACCOUNT FOR CERTAIN RACETRACKS. (a) In addition to money |
|
allocated under Section 2028.204, a horse racetrack association |
|
operating a racetrack that is located not more than 75 miles from a |
|
greyhound racetrack that offers wagering on a cross-species |
|
simulcast signal and that sends the cross-species simulcast signal |
|
to the greyhound racetrack may apply to the department [commission] |
|
for an allocation of up to 20 percent of the money in the horse |
|
industry escrow [escrowed] account established under Section |
|
2028.204 that is attributable to the wagering on a cross-species |
|
simulcast signal at the greyhound racetrack. |
|
(b) If the applying horse racetrack association can prove to |
|
the department's [commission's] satisfaction that the racetrack |
|
association's handle has decreased directly due to wagering on an |
|
interstate cross-species simulcast signal at a greyhound racetrack |
|
located not more than 75 miles from the applying racetrack |
|
association, the department [commission] shall allocate amounts |
|
from the horse industry escrow [escrowed] account as the department |
|
[commission] considers appropriate to compensate the racetrack |
|
association for the decrease. The amounts allocated may not exceed |
|
20 percent of the money in the [escrowed] account that is |
|
attributable to the wagering on the interstate cross-species |
|
simulcast signal at the greyhound racetrack. |
|
(c) Money allocated by the department [commission] under |
|
this section may be used by the racetrack association for any |
|
purpose. |
|
SECTION 8.13. Section 2028.301, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2028.301. TEXAS-BRED INCENTIVE FUND. (a) The |
|
department [commission] shall deposit money set aside for the |
|
Texas-bred program or set aside for use by state breed registries |
|
under this chapter into an escrow account in the state treasury in |
|
the registry of the department [commission] to be known as the |
|
Texas-bred incentive fund. |
|
(b) The department [commission] shall distribute money from |
|
the Texas-bred incentive fund in accordance with this chapter and |
|
commission rules. |
|
SECTION 8.14. Chapter 2028, Occupations Code, is amended by |
|
adding Subchapter H to read as follows: |
|
SUBCHAPTER H. NATIONAL EVENT INCENTIVES |
|
Sec. 2028.401. NATIONAL EVENT INCENTIVES. (a) In this |
|
section: |
|
(1) "Breeders' Cup costs" means all costs for capital |
|
improvements and extraordinary expenses reasonably incurred for |
|
the operation of the Breeders' Cup races, including purses offered |
|
on other days in excess of the purses that the host association is |
|
required to pay by this subtitle. |
|
(2) "Breeders' Cup races" means a series of |
|
thoroughbred races known as the Breeders' Cup Championship races |
|
conducted annually by Breeders' Cup Limited on a day known as |
|
Breeders' Cup Championship day. |
|
(3) "Development organization" means an organization |
|
whose primary purpose is the marketing, promotion, or economic |
|
development of a city, county, or region of the state, including |
|
chambers of commerce, convention and visitors bureaus, and sports |
|
commissions. |
|
(4) "Political subdivision" means a city, county, or |
|
other political subdivision of the state and includes any entity |
|
created by a political subdivision. |
|
(b) An association conducting the Breeders' Cup races may |
|
apply to the reimbursement of Breeders' Cup costs amounts that |
|
would otherwise be set aside by the association for the state under |
|
Sections 2028.051 and 2028.202(a)(1) during the year in which the |
|
association hosts the Breeders' Cup races, limited to an amount |
|
equal to the lesser of the aggregate amount contributed to pay |
|
Breeders' Cup costs by political subdivisions and development |
|
organizations or $2 million. Beginning on January 1 of the year for |
|
which the association has been officially designated to host the |
|
Breeders' Cup races, amounts that would otherwise be set aside by |
|
the association for the state during that year under Sections |
|
2028.051 and 2028.202(a)(1) shall be set aside, in accordance with |
|
procedures prescribed by the comptroller, for deposit into the |
|
Breeders' Cup Developmental Account. The Breeders' Cup |
|
Developmental Account is an account in the general revenue fund. |
|
The department shall administer the account. Money in the account |
|
may be appropriated only to the department and may be used only for |
|
the purposes specified in this section. The account is exempt from |
|
the application of Section 403.095, Government Code. |
|
(c) The department shall make disbursements from the |
|
Breeders' Cup Developmental Account to reimburse Breeders' Cup |
|
costs actually incurred and paid by the association, after the |
|
association files a request for reimbursement. Disbursements from |
|
the account may not at any time exceed the aggregate amount actually |
|
paid for Breeders' Cup costs by political subdivisions and |
|
development organizations, as certified by the department to the |
|
comptroller, or $2 million, whichever is less. |
|
(d) Not later than January 31 of the year following the year |
|
in which the association hosts the Breeders' Cup races, the |
|
association shall submit to the department a report that shows: |
|
(1) the total amount of Breeders' Cup costs incurred |
|
and paid by the association; |
|
(2) the total payments made by political subdivisions |
|
and development organizations for Breeders' Cup costs; and |
|
(3) any other information requested by the commission. |
|
(e) Following receipt of the report required by Subsection |
|
(d), the department shall take any steps it considers appropriate |
|
to verify the report. Not later than March 31 of the year following |
|
the event, the department shall transfer to the credit of the |
|
general revenue fund any balance remaining in the Breeders' Cup |
|
Developmental Account after reimbursement of any remaining |
|
Breeders' Cup costs authorized under this section. |
|
(f) In addition to the authority otherwise granted in this |
|
subtitle, the commission and the comptroller may adopt rules for |
|
the administration of this section as follows: |
|
(1) the commission may adopt rules relating to: |
|
(A) auditing or other verification of Breeders' |
|
Cup costs and amounts paid or set aside by political subdivisions |
|
and development organizations; and |
|
(B) the disbursement of funds from the Breeders' |
|
Cup Developmental Account; and |
|
(2) the comptroller may adopt rules relating to: |
|
(A) procedures and requirements for transmitting |
|
or otherwise delivering to the treasury the money set aside under |
|
this section; and |
|
(B) depositing funds into the Breeders' Cup |
|
Developmental Account. |
|
(g) The commission may adopt rules to facilitate the conduct |
|
of the Breeders' Cup races, including the adoption of rules or |
|
waiver of existing rules relating to the overall conduct of racing |
|
during the Breeders' Cup races in order to assure the integrity of |
|
the races, licensing for all participants, special stabling and |
|
training requirements for foreign horses, and commingling of |
|
pari-mutuel pools. |
|
(h) To the extent of any conflict between this section and |
|
another provision of this subtitle, this section prevails. |
|
SECTION 8.15. Section 2029.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.001. ALLOCATION OF HORSE RACING DAYS; PROHIBITED |
|
RACING DAYS. (a) The department [commission] shall allocate the |
|
live and simulcast horse racing days for the conduct of live and |
|
simulcast racing at each racetrack. |
|
(b) In allocating race dates under this section, the |
|
department [commission] shall consider live race dates separately |
|
from simulcast race dates. |
|
(c) The commission by rule may prohibit racing on Sunday |
|
unless the prohibition would conflict with another provision of |
|
this subtitle. The commission may delegate to the executive |
|
director the commission's authority under this subsection. |
|
ARTICLE 9. ALLOCATION OF RACING DAYS |
|
SECTION 9.01. Sections 2029.002(a) and (c), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall grant to each |
|
racetrack association additional horse racing days during a horse |
|
race meeting to be conducted as charity days. The department |
|
[commission] shall grant to each class 1 racetrack and to each class |
|
2 racetrack at least two and not more than five additional days. |
|
(c) The department [commission] shall ensure that races |
|
conducted by a racetrack association on a charity day are |
|
comparable in all respects, including the generation of revenue, to |
|
races conducted by that racetrack association on any other horse |
|
racing day. |
|
SECTION 9.02. Section 2029.003, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.003. ACCESS TO RACES. (a) Each racetrack shall |
|
provide reasonable access to races for all breeds of horses as |
|
determined by the racetrack association through negotiations with |
|
the representative state horse breed registry with the final |
|
approval of the department [commission]. |
|
(b) In granting approval under Subsection (a), the |
|
department [commission] shall consider: |
|
(1) the availability of competitive horses; |
|
(2) economic feasibility; and |
|
(3) public interest. |
|
SECTION 9.03. Sections 2029.052(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall grant not less than |
|
five additional greyhound racing days during a greyhound race |
|
meeting to be conducted as charity days. |
|
(b) The department [commission] shall ensure that races |
|
conducted by a racetrack association on a charity day are |
|
comparable in all respects, including the generation of revenue, to |
|
races conducted by that racetrack association on any other |
|
greyhound racing day. |
|
SECTION 9.04. Section 2029.053, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2029.053. SUBSTITUTE RACING DAYS OR ADDITIONAL RACES. |
|
If, for a reason beyond a greyhound racetrack association's control |
|
and not caused by the racetrack association's fault or neglect, it |
|
is impossible for the racetrack association to conduct a race on a |
|
day authorized by the department [commission], the executive |
|
director [commission] in the executive director's [its] discretion |
|
and at the request of the racetrack association, as a substitute for |
|
the race, may: |
|
(1) specify another day for the racetrack association |
|
to conduct racing; or |
|
(2) add additional races to already programmed events. |
|
ARTICLE 10. TEXAS-BRED HORSES AND GREYHOUNDS |
|
SECTION 10.01. Section 2030.001(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this section are subject to approval |
|
by the department [commission]. |
|
SECTION 10.02. Section 2030.002(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The appropriate state horse breed registry shall act in |
|
an advisory capacity to each racetrack association and to the |
|
department [commission] for the purpose of administering Sections |
|
2030.003 and 2030.004. |
|
SECTION 10.03. Sections 2030.005 and 2030.006, Occupations |
|
Code, are amended to read as follows: |
|
Sec. 2030.005. EQUITABLE NUMBER OF RACES FOR EACH BREED. |
|
(a) A racetrack association that conducts a horse race meeting for |
|
more than one breed of horse at one racetrack shall provide that the |
|
number of races run by each breed on each day is equitable as |
|
determined by the department [commission] under Section 2029.003. |
|
(b) The commission by rule [or by order] may allow for an |
|
exception to Subsection (a) if an insufficient number of horses of a |
|
breed are available to provide sufficient competition. The |
|
commission may delegate to the executive director the commission's |
|
authority under this subsection. |
|
Sec. 2030.006. EQUITABLE STABLING. A racetrack association |
|
that conducts a horse race meeting for more than one breed of horse |
|
at one racetrack shall provide on-track stalls on an equitable |
|
basis as determined by the department [commission] under Section |
|
2029.003. |
|
SECTION 10.04. Section 2030.051(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) Rules adopted under this section are subject to approval |
|
by the department [commission]. |
|
ARTICLE 11. TEXAS DERBIES |
|
SECTION 11.01. Section 2031.001, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2031.001. ESTABLISHMENT OF TEXAS DERBIES. (a) The |
|
commission by rule shall establish as Texas Derbies the following |
|
annual stakes races: |
|
(1) one race open to three-year-old Thoroughbreds; |
|
(2) one race open only to three-year-old Texas-bred |
|
Thoroughbreds; |
|
(3) one race open to three-year-old quarter horses; |
|
and |
|
(4) one race open only to three-year-old Texas-bred |
|
quarter horses. |
|
(b) Each Texas Derby must be held annually on a date and at |
|
the class 1 racetrack determined by the department [commission]. |
|
The department [commission] shall determine the location of each |
|
Texas Derby in consultation with: |
|
(1) each class 1 racetrack; |
|
(2) the official state horse breed registries; and |
|
(3) the official horsemen's organization. |
|
(c) The department [commission] may sell the right to name a |
|
Texas Derby. The department [commission] shall deposit the |
|
proceeds from the sale of the right to name a Texas Derby into the |
|
Texas Derby escrow purse fund established under Section 2031.004. |
|
SECTION 11.02. Section 2031.003(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) For each Texas Derby, the department [commission] shall |
|
appoint a state veterinarian to conduct a prerace examination of |
|
each horse entered in the race to determine whether the horse: |
|
(1) is healthy; and |
|
(2) meets standards set by commission rule for racing. |
|
SECTION 11.03. Sections 2031.004(a) and (e), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] shall establish a Texas |
|
Derby escrow purse fund. |
|
(e) The department [commission] may not: |
|
(1) use funds from the accredited Texas-bred program |
|
under Subchapter A, Chapter 2030, or the horse industry escrow |
|
[escrowed purse] account established under Section 2028.204 to fund |
|
the Texas Derby escrow purse fund; or |
|
(2) order a state horse breed registry to fund a purse |
|
for a Texas Derby, make contributions to the Texas Derby escrow |
|
purse fund, or pay the expenses of a Texas Derby race. |
|
ARTICLE 12. LIVESTOCK SHOWS, EXHIBITS, AND FAIRS |
|
SECTION 12.01. Chapter 2032, Occupations Code, is amended |
|
by adding Section 2032.004 to read as follows: |
|
Sec. 2032.004. RULES. The commission may adopt rules as |
|
necessary to: |
|
(1) administer this chapter; and |
|
(2) ensure public safety and welfare. |
|
ARTICLE 13. CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY |
|
POWERS |
|
SECTION 13.01. Section 2033.006(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person knowingly |
|
possesses or displays a credential issued by the department or a |
|
false credential that identifies the person as the holder of the |
|
credential and the person knows that: |
|
(1) the credential is not issued to the person; or |
|
(2) the person is not a license holder. |
|
SECTION 13.02. Sections 2033.007(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) For purposes of this section, a request is lawful if it |
|
is made: |
|
(1) at any time by: |
|
(A) the department [commission]; |
|
(B) an authorized department [commission] agent; |
|
(C) the director or a commissioned officer of the |
|
Department of Public Safety; |
|
(D) a peace officer; or |
|
(E) a steward or judge; and |
|
(2) at any restricted location that is at a racetrack |
|
and is not a public place. |
|
(b) A person commits an offense if, after a lawful request, |
|
the person knowingly fails or refuses to: |
|
(1) display a credential issued by the department to |
|
another person; or |
|
(2) give the person's name, residence address, or date |
|
of birth to another person. |
|
SECTION 13.03. Section 2033.008(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person knowingly |
|
wagers on the result of a horse or greyhound race conducted in this |
|
state that: |
|
(1) is held on an American Indian reservation or on |
|
American Indian trust land located in this state; and |
|
(2) is not held under the supervision of the |
|
department [commission] under rules adopted under this subtitle. |
|
SECTION 13.04. Section 2033.009(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A person commits an offense if the person is a license |
|
holder and the person knowingly permits, facilitates, or allows |
|
access to an enclosure where races are conducted to another person |
|
who the person knows: |
|
(1) has engaged in bookmaking, touting, or illegal |
|
wagering; |
|
(2) derives income from illegal activities or |
|
enterprises; |
|
(3) has been convicted of a violation of this |
|
subtitle; or |
|
(4) is excluded by the department [commission] from |
|
entering a racetrack. |
|
SECTION 13.05. Section 2033.012(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) An offense under this section is a state jail felony |
|
unless the statement was material in a department [commission] |
|
action relating to a racetrack license, in which event the offense |
|
is a felony of the third degree. |
|
SECTION 13.06. Section 2033.013(c), Occupations Code, is |
|
amended to read as follows: |
|
(c) An offense under this section is a state jail felony if: |
|
(1) the actor: |
|
(A) is a license holder under this subtitle or a |
|
commission member or department employee; and |
|
(B) knowingly represents that a commission |
|
member or department employee or a person licensed by the |
|
department [commission] is the source of the false information; or |
|
(2) the false statement or information was contained |
|
in racing selection information provided to the public. |
|
SECTION 13.07. Sections 2033.018(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) A person consents to a search for a prohibited device, |
|
prohibited substance, or other contraband at a time and location |
|
described by Subsection (b) if the person: |
|
(1) accepts a license or other credential issued by |
|
the department under this subtitle; or |
|
(2) enters a racetrack under the authority of a |
|
license or other credential alleged to have been issued by the |
|
department under this subtitle. |
|
(b) A search may be conducted by a commissioned officer of |
|
the Department of Public Safety or a peace officer, including a |
|
peace officer employed by the department [commission], at any time |
|
and at any location at a racetrack, except a location: |
|
(1) excluded by commission rule from searches under |
|
this section; or |
|
(2) provided by a racetrack association under |
|
commission rule for private storage of personal items belonging to |
|
a license holder entering a racetrack. |
|
SECTION 13.08. Sections 2033.021, 2033.051, and 2033.052, |
|
Occupations Code, are amended to read as follows: |
|
Sec. 2033.021. DEPARTMENT [COMMISSION] AUTHORITY. This |
|
subchapter does not restrict the department's [commission's] |
|
administrative authority to enforce this subtitle or commission |
|
rules to the fullest extent authorized by this subtitle. |
|
Sec. 2033.051. IMPOSITION OF PENALTY. If the commission or |
|
the executive director determines that a person regulated under |
|
this subtitle has violated this subtitle or a rule or order adopted |
|
under this subtitle in a manner that constitutes a ground for a |
|
disciplinary action under this subtitle, the commission or the |
|
executive director may assess an administrative penalty against |
|
that person as provided by this subchapter or Subchapter F, Chapter |
|
51. |
|
Sec. 2033.052. AMOUNT OF PENALTY. (a) Notwithstanding |
|
Subchapter F, Chapter 51, the [The] commission or the executive |
|
director may assess an administrative penalty under this subchapter |
|
in an amount not to exceed $10,000 for each violation. |
|
(b) In determining the amount of the penalty, the commission |
|
or the executive director shall consider the seriousness of the |
|
violation. |
|
SECTION 13.09. Section 2033.057(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) A complaint alleging a violation of this subtitle may be |
|
instituted by the Department of Public Safety, the department |
|
[commission], or the attorney general. |
|
SECTION 13.10. Subchapter B, Chapter 2033, Occupations |
|
Code, is amended by adding Section 2033.058 to read as follows: |
|
Sec. 2033.058. DISPOSITION OF ADMINISTRATIVE PENALTY. The |
|
commission shall remit an administrative penalty collected under |
|
this subtitle to the comptroller for deposit in the general revenue |
|
fund. |
|
SECTION 13.11. Section 2033.106(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) If the executive director reasonably believes that a |
|
person has violated a final and enforceable cease and desist or |
|
emergency order, the executive director may: |
|
(1) initiate administrative penalty proceedings under |
|
Subchapter B; |
|
(2) refer the matter to the attorney general for |
|
enforcement by injunction and any other available remedy; or |
|
(3) pursue any other action that the executive |
|
director considers appropriate, including suspension of the |
|
person's license. |
|
SECTION 13.12. Section 2033.151, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2033.151. DISCIPLINARY ACTIONS. (a) The commission |
|
may [shall] revoke, suspend, or refuse to renew a license, place on |
|
probation a person whose license has been suspended, or reprimand a |
|
license holder for a violation of this subtitle or a commission |
|
rule. |
|
(b) If a license suspension is probated, the commission may |
|
require the license holder to report regularly to the department |
|
[commission] on matters that are the basis of the probation. |
|
(c) A disciplinary proceeding under this subtitle is |
|
governed by: |
|
(1) Chapter 51; and |
|
(2) commission rules adopted under Chapter 51. |
|
SECTION 13.13. The heading to Section 2033.152, Occupations |
|
Code, is amended to read as follows: |
|
Sec. 2033.152. PROCEEDING FOR DISCIPLINARY ACTION |
|
[HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW |
|
LICENSE. |
|
SECTION 13.14. Section 2033.152(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) A proceeding [Proceedings] for a disciplinary action, |
|
other than those conducted by a steward or judge, in which the |
|
commission proposes to suspend, revoke, or refuse to renew a |
|
person's license is [are] governed by Chapter 2001, Government |
|
Code. |
|
SECTION 13.15. Section 2033.153, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2033.153. INJUNCTION. The department [commission] may |
|
institute an action in its own name to enjoin the violation of this |
|
subtitle. An action for an injunction is in addition to any other |
|
action, proceeding, or remedy authorized by law. |
|
SECTION 13.16. Section 2033.154(b), Occupations Code, is |
|
amended to read as follows: |
|
(b) The executive director may issue an order prohibiting |
|
the racetrack association from making any transfer from a bank |
|
account held by the racetrack association for the conduct of |
|
business under this subtitle, pending department [commission] |
|
review of the records of the account, if the executive director |
|
reasonably believes that the racetrack association has failed to |
|
maintain the proper amount of money in the horsemen's account. The |
|
executive director shall provide in the order a procedure for the |
|
racetrack association to pay certain expenses necessary for the |
|
operation of the racetrack, subject to the executive director's |
|
approval. |
|
ARTICLE 14. UNLAWFUL INFLUENCE ON RACING |
|
SECTION 14.01. Section 2034.001, Occupations Code, is |
|
amended by amending Subsections (b) and (c) and adding Subsection |
|
(e) to read as follows: |
|
(b) The rules adopted under this section by the commission |
|
shall require testing to determine whether a prohibited substance |
|
has been used. |
|
(c) The [commission's] rules adopted under this section |
|
must require state-of-the-art testing methods. The testing may: |
|
(1) be prerace or postrace as determined by the |
|
department [commission]; and |
|
(2) be by an invasive or noninvasive method. |
|
(e) The commission shall adopt rules regarding disciplinary |
|
actions under this chapter, including the right of appeal to the |
|
commission from a disciplinary action under Section 2034.006. |
|
SECTION 14.02. Section 2034.002, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2034.002. MEDICATION AND DRUG TESTING PROCEDURES. (a) |
|
Medication or drug testing performed on a race animal under this |
|
subtitle must be conducted by: |
|
(1) the Texas A&M Veterinary Medical Diagnostic |
|
Laboratory; or |
|
(2) a laboratory operated by or in conjunction with or |
|
by a private or public agency selected by the department |
|
[commission] after consultation with the Texas A&M Veterinary |
|
Medical Diagnostic Laboratory. |
|
(b) Medication or drug testing performed on a human under |
|
this subtitle must be conducted by a laboratory approved by the |
|
department [commission]. |
|
SECTION 14.03. Sections 2034.003(c), (d), and (e), |
|
Occupations Code, are amended to read as follows: |
|
(c) Charges for services performed under this section must |
|
be forwarded to the department [commission] for approval of the |
|
reasonableness of the charges. Charges may include expenses |
|
incurred for travel, lodging, testing, and processing of test |
|
results. |
|
(d) The department [commission] shall determine whether the |
|
laboratory charges are reasonable in relation to industry standards |
|
by periodically surveying the drug testing charges of comparable |
|
laboratories in the United States. |
|
(e) The racetrack association that receives the services is |
|
responsible for the cost of approved charges for animal drug |
|
testing services under this section. The department [commission] |
|
shall forward a copy of the charges to the racetrack association for |
|
immediate payment. |
|
SECTION 14.04. Sections 2034.005(a) and (b), Occupations |
|
Code, are amended to read as follows: |
|
(a) The department [commission] may require urine samples |
|
to be frozen for a period necessary to allow any follow-up testing |
|
to detect and identify a prohibited substance. Any other specimen |
|
shall be maintained for testing purposes in a manner required by |
|
commission rule. |
|
(b) If a test sample or specimen shows the presence of a |
|
prohibited substance, the entire sample, including any split |
|
portion remaining in the custody of the department [commission], |
|
shall be maintained until final disposition of the matter. |
|
SECTION 14.05. Section 2034.007, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2034.007. DISCIPLINARY ACTION FOR RULE VIOLATION OF |
|
PROHIBITED DEVICE OR SUBSTANCE. In addition to any other |
|
disciplinary action authorized by Chapter 51, this subtitle, or |
|
commission rule, a [A] person who violates a rule adopted under this |
|
chapter may: |
|
(1) have any license issued to the person by the |
|
department [commission] revoked or suspended; or |
|
(2) be barred for life or any other period from |
|
applying for or receiving a license issued by the department |
|
[commission] or entering any portion of a racetrack. |
|
ARTICLE 15. LOCAL OPTION ELECTION TO LEGALIZE PARI-MUTUEL WAGERING |
|
SECTION 15.01. Section 2035.001(a), Occupations Code, is |
|
amended to read as follows: |
|
(a) The department [commission] may not issue a racetrack |
|
license or accept a license application for a racetrack to be |
|
located in a county until the commissioners court has certified to |
|
the secretary of state that the qualified voters of the county have |
|
approved the legalization of pari-mutuel wagering on horse races or |
|
greyhound races in the county at an election held under this |
|
chapter. |
|
SECTION 15.02. Section 2035.052, Occupations Code, is |
|
amended to read as follows: |
|
Sec. 2035.052. PARTIES. Any person who is licensed or who |
|
has submitted to the department [commission] an application to be |
|
licensed in any capacity under this subtitle may become a named |
|
party to the contest proceedings by pleading to the petition on or |
|
before the time set for hearing and trial as provided by Section |
|
2035.053(b) or after that time by intervention on leave of court. |
|
ARTICLE 16. CONFORMING AMENDMENTS |
|
SECTION 16.01. Section 411.096(a), Government Code, is |
|
amended to read as follows: |
|
(a) The Texas [Racing] Commission of Licensing and |
|
Regulation and the Texas Department of Licensing and Regulation are |
|
[is] entitled to obtain from the department criminal history record |
|
information maintained by the department that pertains to a person |
|
who is: |
|
(1) appointed to the commission; |
|
(2) an applicant for employment by the commission; or |
|
(3) an applicant for a license under Subtitle A-1, |
|
Title 13, Occupations Code (Texas Racing Act), including an |
|
occupational license described by Section 2025.251, Occupations |
|
Code. |
|
SECTION 16.02. Section 151.801(c-3), Tax Code, is amended |
|
to read as follows: |
|
(c-3) Subject to the limitation imposed under Section |
|
2028.2041, Occupations Code, an amount equal to the proceeds from |
|
the collection of the taxes imposed by this chapter on the sale, |
|
storage, or use of horse feed, horse supplements, horse tack, horse |
|
bedding and grooming supplies, and other taxable expenditures |
|
directly related to horse ownership, riding, or boarding shall be |
|
deposited to the credit of the horse industry escrow account |
|
administered by the Texas Department of Licensing and Regulation |
|
[Racing Commission] and established under Section 2028.204, |
|
Occupations Code. |
|
ARTICLE 17. REPEALER |
|
SECTION 17.01. (a) The following provisions of the |
|
Occupations Code are repealed: |
|
(1) Sections 2022.001(b), (c), (d), (e), and (f); |
|
(2) Section 2022.002(b); |
|
(3) Sections 2022.003, 2022.004, 2022.005, 2022.006, |
|
and 2022.007; |
|
(4) Sections 2022.009(b) and (c); |
|
(5) Sections 2022.010, 2022.011, 2022.012, 2022.013, |
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2022.014, and 2022.051; |
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(6) Sections 2022.052(a) and (b); |
|
(7) Sections 2022.053, 2022.054, 2022.055, 2022.056, |
|
2022.057, 2022.101, 2022.102, and 2022.106; |
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(8) Sections 2023.004(b), (c), and (f); |
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(9) Section 2023.009; |
|
(10) Section 2025.204(e); |
|
(11) Section 2025.258(b); |
|
(12) Sections 2033.053, 2033.054, 2033.055, and |
|
2033.056; |
|
(13) Section 2033.057(b); and |
|
(14) Sections 2033.152(a) and (c). |
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(b) Title 6, Vernon's Texas Civil Statutes, is repealed. |
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ARTICLE 18. TRANSITION AND SAVINGS PROVISIONS |
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SECTION 18.01. (a) On the effective date of this Act, the |
|
Texas Racing Commission is abolished but continues in existence |
|
until December 1, 2021, for the sole purpose of transferring |
|
obligations, property, rights, powers, and duties to the Texas |
|
Department of Licensing and Regulation. The Texas Department of |
|
Licensing and Regulation assumes all of the obligations, property, |
|
rights, powers, and duties of the Texas Racing Commission as they |
|
exist immediately before the effective date of this Act. All |
|
unexpended funds appropriated to the Texas Racing Commission are |
|
transferred to the Texas Department of Licensing and Regulation. |
|
(b) The Texas Racing Commission and the Texas Department of |
|
Licensing and Regulation shall, in consultation with appropriate |
|
state entities, ensure that the transfer of the obligations, |
|
property, rights, powers, and duties of the Texas Racing Commission |
|
to the Texas Department of Licensing and Regulation is completed |
|
not later than December 1, 2021. |
|
(c) All rules of the Texas Racing Commission are continued |
|
in effect as rules of the Texas Department of Licensing and |
|
Regulation until superseded by a rule of the Texas Commission of |
|
Licensing and Regulation. A license issued by the Texas Racing |
|
Commission is continued in effect as provided by the law in effect |
|
immediately before the effective date of this Act. An application |
|
for a license, endorsement, or certificate of registration pending |
|
on the effective date of this Act is continued without change in |
|
status after the effective date of this Act. A complaint, |
|
investigation, contested case, or other proceeding pending on the |
|
effective date of this Act is continued without change in status |
|
after the effective date of this Act. |
|
(d) Not later than September 1, 2022, the Texas Commission |
|
of Licensing and Regulation shall adopt any rules necessary to |
|
implement the changes in law made by this Act to Subtitle A-1, Title |
|
13, Occupations Code. |
|
(e) Unless the context indicates otherwise, a reference to |
|
the Texas Racing Commission in a law or administrative rule means |
|
the Texas Department of Licensing and Regulation. |
|
SECTION 18.02. (a) Not later than December 1, 2021, the |
|
presiding officer of the Texas Commission of Licensing and |
|
Regulation, with the approval of the Texas Commission of Licensing |
|
and Regulation, shall appoint members to the Texas Racing Advisory |
|
Board in accordance with Section 2022.001, Occupations Code, as |
|
amended by this Act. A member of the Texas Racing Commission whose |
|
term expired under Section 18.01 of this Act is eligible for |
|
appointment to the advisory board. |
|
(b) The members of the Texas Racing Commission whose terms |
|
expire under Section 18.01 of this Act shall continue to provide |
|
advice to the Texas Department of Licensing and Regulation until a |
|
majority of the members of the Texas Racing Advisory Board are |
|
appointed under Subsection (a) of this section and qualified. |
|
SECTION 18.03. (a) Not later than September 1, 2023, the |
|
executive director of the Texas Department of Licensing and |
|
Regulation in accordance with Section 51.202(c), Occupations Code, |
|
shall determine with reasonable accuracy the cost to the department |
|
of the racing program and activities for which a fee is charged. |
|
(b) The executive director of the Texas Department of |
|
Licensing and Regulation, on development of the cost management |
|
procedures, shall make recommendations to the Texas Commission of |
|
Licensing and Regulation for review and consideration. |
|
SECTION 18.04. The changes in law made by this Act apply to |
|
revenue received from the imposition of an administrative penalty |
|
on or after the effective date of this Act, regardless of whether |
|
the penalty was imposed before, on, or after the effective date of |
|
this Act. |
|
SECTION 18.05. (a) A violation of a law that is repealed by |
|
this Act is governed by the law in effect when the violation was |
|
committed, and the former law is continued in effect for that |
|
purpose. |
|
(b) For purposes of this section, a violation was committed |
|
before the effective date of this Act if any element of the |
|
violation occurred before that date. |
|
SECTION 18.06. To the extent of any conflict, this Act |
|
prevails over another Act of the 87th Legislature, Regular Session, |
|
2021, relating to nonsubstantive additions to and corrections in |
|
enacted codes. |
|
SECTION 18.07. The Texas Legislative Council, with the |
|
assistance of the Sunset Advisory Commission, shall prepare for |
|
consideration by the 88th Legislature a nonsubstantive revision of |
|
the statutes of this state as necessary to reflect the changes in |
|
law made by this Act. |
|
ARTICLE 19. EFFECTIVE DATE |
|
SECTION 19.01. This Act takes effect September 1, 2021. |