88R14249 BEE-F
 
  By: Thompson of Harris H.B. No. 4115
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligibility for membership on and the regulation of
  horse and greyhound racing by the Texas Racing Commission; creating
  a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2021.003, Occupations Code, is amended
  by adding Subdivision (29-a) to read as follows:
               (29-a)  "Occupational license" means a license issued
  to an individual to conduct activities prescribed for that license
  in the commission rules.
         SECTION 2.  Section 2021.006, Occupations Code, is amended
  to read as follows:
         Sec. 2021.006.  RELEASE OF CIVIL LIABILITY. A commission
  member, a commission employee, a person contracted by the
  commission, a steward or judge, a racetrack association, a
  horsemen's organization, or any other person regulated under this
  subtitle is not liable for a cause of action that arises out of that
  person's performance or exercise of discretion in the
  implementation or enforcement of this subtitle or a rule adopted
  under this subtitle if the person has acted in good faith.
         SECTION 3.  Section 2022.004(e), Occupations Code, is
  amended to read as follows:
         (e)  A person is not eligible for appointment as a commission
  member or to be designated to serve as an ex officio member's
  designee as described by Section 2022.001(b) if:
               (1)  the person or the person's spouse:
                     (A)  is licensed by the commission, except as a
  commissioner;
                     (B)  is employed by the commission or participates
  in the management of a business entity or other organization
  regulated by the commission or receiving funds from or through the
  commission;
                     (C)  owns or controls, directly or indirectly,
  more than a 10 percent interest in a business entity or other
  organization regulated by the commission or receiving funds from or
  through the commission; or
                     (D)  uses or receives a substantial amount of
  tangible goods, services, or funds from or through the commission,
  other than compensation or reimbursement authorized by law for
  commission membership, attendance, or expenses; or
               (2)  the person:
                     (A)  owns any financial interest in a racetrack or
  its operation or is related within the second degree by affinity or
  the third degree by consanguinity, as determined under Subchapter
  B, Chapter 573, Government Code, to a person who owns any financial
  interest in a racetrack or its operation; [or]
                     (B)  has been convicted of a felony; or
                     (C)  has held a license issued by the commission
  during the 10-year period preceding the appointment [of any crime
  involving moral turpitude].
         SECTION 4.  The heading to Section 2022.052, Occupations
  Code, is amended to read as follows:
         Sec. 2022.052.  EMPLOYEES; RESTRICTIONS ON EMPLOYMENT;
  CONTRACTING.
         SECTION 5.  Sections 2022.052(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  The commission shall hire employees or contract with
  persons as necessary to administer this subtitle.
         (c)  The commission may not employ or continue to employ or
  contract with or continue to contract with a person who:
               (1)  owns or controls a financial interest in a
  commission license holder;
               (2)  is employed by or serves as a paid consultant to a
  commission license holder, an official state breed registry, or a
  Texas trade association, as defined by Section 2022.004(a), in the
  field of horse or greyhound racing or breeding;
               (3)  owns or leases a race animal that participates in
  pari-mutuel racing in this state;
               (4)  accepts or is entitled to any part of the purse or
  Texas-bred incentive award to be paid on a horse or a greyhound in a
  race conducted in this state; or
               (5)  resides with or is related within the first degree
  by affinity or consanguinity to a person subject to a
  disqualification prescribed by this subsection.
         SECTION 6.  Sections 2023.053(c) and (f), Occupations Code,
  are amended to read as follows:
         (c)  Any unappropriated money exceeding $2 million
  [$750,000] that remains in the fund at the close of each state
  fiscal biennium shall be transferred to the general revenue fund
  and may be appropriated for any purpose.
         (f)  This section does not apply to money deposited into the
  Texas-bred escrow account [incentive fund] established under
  Section 2028.301.
         SECTION 7.  Section 2023.061(a), Occupations Code, is
  amended to read as follows:
         (a)  Not later than January 31 of each year, the commission
  may [shall] file a report with the governor, lieutenant governor,
  and speaker of the house of representatives. The report may
  include, to the extent the commission considers appropriate:
               (1)  descriptions of changes to commission programs;
  and
               (2)  recommendations to the governor and the
  legislature. 
         SECTION 8.  Section 2024.055(b), Occupations Code, is
  amended to read as follows:
         (b)  This section does not apply to money deposited into the
  Texas-bred escrow account [incentive fund] established under
  Section 2028.301.
         SECTION 9.  Section 2025.001, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  The commission shall comply with Chapter 53 in the
  administration of the commission's licensing program.
         SECTION 10.  Section 2025.262, Occupations Code, is amended
  to read as follows:
         Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND
  SUSPENSION OF OCCUPATIONAL LICENSE. The 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
  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 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;
               (5)  failed to answer or has falsely or incorrectly
  answered a question in an original or renewal application;
               (6)  fails to disclose the true ownership or interest
  in a horse or greyhound as required by commission rules;
               (7)  is indebted to this state for any fee or for the
  payment of a penalty imposed by this subtitle or a commission rule;
               (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;
               (11)  has improperly used a temporary pass, license
  certificate, credential, or identification card issued under this
  subtitle;
               (12)  resides with a person whose license was revoked
  for cause during the 12 months preceding the date of the present
  application;
               (13)  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;
  or
               (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.
         SECTION 11.  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 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;
               (11)  who is an agent or habitual associate of a person
  excludable under this section; or
               (12)  who has been convicted of a felony.
         SECTION 12.  Section 2028.103(a-1), Occupations Code, is
  amended to read as follows:
         (a-1)  The commission shall deposit money paid to the
  commission under Subsection (a) into the Texas-bred escrow account
  [incentive fund] established under Section 2028.301. The
  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 13.  Sections 2028.105(d) and (d-1), Occupations
  Code, are amended to read as follows:
         (d)  The horse racetrack association shall pay to the
  commission for deposit into the Texas-bred escrow account
  [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 commission shall deposit the portions of total
  breakage paid to the commission under Subsections (b) and (d) into
  the Texas-bred escrow account [incentive fund] established under
  Section 2028.301. The 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 14.  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 commission for deposit into the Texas-bred escrow account
  [incentive fund] established under Section 2028.301. The
  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 15.  Section 2028.202(a-1), Occupations Code, is
  amended to read as follows:
         (a-1)  A racetrack association shall pay to the commission
  for deposit into the Texas-bred escrow account [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 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.
         SECTION 16.  Section 2028.301, Occupations Code, is amended
  to read as follows:
         Sec. 2028.301.  TEXAS-BRED ESCROW ACCOUNT [INCENTIVE FUND].
  (a) The comptroller [commission] shall deposit the state's share
  of the simulcast pari-mutuel pool [money set aside for the
  Texas-bred program or set aside] for use by state breed registries
  under this chapter into a trust fund [an escrow account] in the
  state treasury [in the registry of the commission] to be known as
  the Texas-bred escrow account. Money in the account may not be
  appropriated for state expenditure [incentive fund].
         (b)  The commission shall distribute money from the
  Texas-bred escrow account [incentive fund] in accordance with this
  chapter and commission rules.
         SECTION 17.  Section 2033.002, Occupations Code, is amended
  to read as follows:
         Sec. 2033.002.  UNLAWFUL RACING. A person commits an
  offense if:
               (1)  the person participates in, permits, or conducts a
  horse or greyhound race at a racetrack without a permit issued under
  Chapter 751, Health and Safety Code;
               (2)  the person wagers on the partial or final outcome
  of the horse or greyhound race or knows or reasonably should know
  that another person is betting on the partial or final outcome of
  the race; and
               (3)  the race is not part of a performance or race
  meeting conducted under this subtitle or commission rule.
         SECTION 18.  Section 2033.004(a), Occupations Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person:
               (1)  conducts a horse or greyhound race without:
                     (A)  a racetrack license; or
                     (B)  a permit issued under Chapter 751, Health and
  Safety Code; and
               (2)  knows or reasonably should know that another
  person is betting on the final or partial outcome of the race.
         SECTION 19.  Section 2033.014, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  A person commits an offense if the person:
               (1)  seeks to enter, train, or ride a horse for a horse
  race or seeks to enter or train a greyhound for a greyhound race
  that is part of a performance or race meeting conducted under this
  subtitle or commission rule; and
               (2)  knows or reasonably should know that the horse or
  greyhound has participated in a performance or race meeting in this
  state that was not conducted:
                     (A)  under this subtitle or commission rule; or
                     (B)  under a permit issued under Chapter 751,
  Health and Safety Code.
         SECTION 20.  Sections 2033.101(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  The executive director may issue a cease and desist
  order if the executive director reasonably believes a person
  [racetrack association or other license holder] is engaging or is
  likely to engage in conduct that violates this subtitle or a
  commission rule.
         (b)  On issuance of a cease and desist order, the executive
  director shall serve a proposed cease and desist order on the person
  [racetrack association or other license holder] by personal
  delivery or registered or certified mail, return receipt requested,
  to the person's last known address.
         SECTION 21.  Section 2033.104, Occupations Code, is amended
  to read as follows:
         Sec. 2033.104.  EMERGENCY CEASE AND DESIST ORDER; SEIZURE OF
  AFFECTED ANIMALS. (a) The executive director may issue an
  emergency cease and desist order if the executive director
  reasonably believes a person [racetrack association or other
  license holder] is engaged in a continuing activity that:
               (1)  violates this subtitle or a commission rule in a
  manner that threatens immediate and irreparable public harm; or
               (2)  involves suspected cruelty to an animal in
  violation of commission rule or Section 42.09 or 42.092, Penal
  Code.
         (b)  After issuing an emergency cease and desist order, the
  executive director shall serve on the person [racetrack association
  or other license holder] by personal delivery or registered or
  certified mail, return receipt requested, to the person's last
  known address, an order stating the specific charges and requiring
  the person immediately to cease and desist from the conduct that
  violates this subtitle or a commission rule. The order must contain
  a notice that a request for hearing may be filed under this section.
         (c)  On issuance of an emergency cease and desist order, the
  executive director may authorize the seizure of any animal
  suspected of being or to have been subject to cruelty to an animal
  in violation of commission rule or Section 42.09 or 42.092, Penal
  Code. An emergency cease and desist order issued under Subsection
  (a)(2) satisfies the evidence requirement for a showing of probable
  cause for purposes of Section 821.022, Health and Safety Code.
         SECTION 22.  Section 2034.001(c), Occupations Code, is
  amended to read as follows:
         (c)  The commission's rules must require state-of-the-art
  testing methods. The testing may:
               (1)  be conducted [prerace or postrace] as determined
  by the commission; and
               (2)  be by an invasive or noninvasive method.
         SECTION 23.  The following provisions of the Occupations
  Code are repealed:
               (1)  Section 2021.003(19);
               (2)  Section 2023.053(e);
               (3)  Sections 2023.061(b) and (c);
               (4)  Section 2025.001(a); and
               (5)  Section 2025.260.
         SECTION 24.  Section 2021.006, Occupations Code, as amended
  by this Act, applies only to a cause of action that accrues on or
  after the effective date of this Act.
         SECTION 25.  The term of a person who is serving as a member
  of the Texas Racing Commission immediately before the effective
  date of this Act and who is ineligible for appointment under Section
  2022.004(e), Occupations Code, as amended by this Act, expires on
  the effective date of the Act.
         SECTION 26.  On September 1, 2023, money in the Texas-bred
  incentive fund is transferred to the Texas-bred escrow account, and
  the Texas-bred incentive fund is abolished.
         SECTION 27.  The changes in law made by this Act apply only
  to an offense committed on or after the effective date of this Act.
  An offense committed before the effective date of this Act is
  governed by the law in effect on the date the offense was committed,
  and the former law is continued in effect for that purpose. For
  purposes of this section, an offense was committed before the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 28.  This Act takes effect September 1, 2023.