89R8836 PRL-D

By: Cain H.B. No. 5013

A BILL TO BE ENTITLED

AN ACT

relating to the Texas Racing Commission and the regulation of dog races, including greyhound races, as live events in this state and of simulcast wagering on greyhound races conducted out of state.

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

SECTION 1. Section 481.172(a), Government Code, is amended to read as follows:

(a) The office shall:

(1) as the primary state governmental entity responsible for out-of-state tourism marketing and promotion efforts, promote and advertise within the United States and in foreign countries, by radio, television, newspaper, the Internet, and other means considered appropriate, tourism in this state by non-Texans, including persons from foreign countries, and distribute promotional materials through appropriate distribution channels;

(2) represent the state in domestic and international travel trade shows, trade missions, and seminars;

(3) encourage travel by Texans to this state's scenic, historical, cultural, natural, agricultural, educational, recreational, and other attractions;

(4) conduct a public relations campaign to create a responsible and accurate national and international image of this state;

(5) use current market research to develop a tourism marketing plan to increase travel to the state by domestic and international visitors;

(6) develop methods to attract tourist attractions to the state;

(7) assist communities to develop tourist attractions;

(8) not later than December 31, 2003, enter into a memorandum of understanding with the Parks and Wildlife Department, the Texas Department of Transportation, the Texas Historical Commission, and the Texas Commission on the Arts to direct the efforts of those agencies in all matters relating to tourism;

(9) promote and encourage the horse racing [and greyhound racing] industry, if funds are appropriated for the promotion or encouragement; and

(10) promote the sports industry and related industries in this state, including promoting this state as a host for national and international amateur athletic competition and promoting sports or fitness programs for the residents of this state, if funds are appropriated for the promotion.

SECTION 2. The heading to Section 751.0021, Health and Safety Code, is amended to read as follows:

Sec. 751.0021. APPLICABILITY TO CERTAIN HORSE [AND GREYHOUND] RACES.

SECTION 3. Section 751.0021(a), Health and Safety Code, is amended to read as follows:

(a) This chapter applies to a horse [or greyhound] race that attracts or is expected to attract at least 100 persons, except that this chapter does not apply if the race is held at a location at which pari-mutuel wagering is authorized under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act).

SECTION 4. Section 2021.002, Occupations Code, is amended to read as follows:

Sec. 2021.002. PURPOSE. The purpose of this subtitle is to provide for the strict regulation of horse racing [and greyhound racing] and the control of pari-mutuel wagering in connection with that racing.

SECTION 5. Sections 2021.003(30), (34), (41), (42), (44), (45), and (54), Occupations Code, are amended to read as follows:

(30) "Outstanding ticket" means a pari-mutuel ticket not presented for payment before the end of the horse racing day [or greyhound racing day] for which the ticket was purchased.

(34) "Pari-mutuel wagering" means the form of wagering on the outcome of horse racing [or greyhound racing] in which persons who wager purchase tickets of various denominations on an animal or animals and all wagers for each race are pooled and held by the racetrack association for distribution of the total amount, less the deductions authorized by this subtitle, to holders of tickets on the winning animals.

(41) "Racetrack" means a facility licensed under this subtitle for the conduct of pari-mutuel wagering on horse racing [or greyhound racing].

(42) "Racetrack association" means a person licensed under this subtitle to conduct a horse race meeting [or a greyhound race meeting] with pari-mutuel wagering.

(44) "Regular wagering" means wagering on a single horse [or greyhound] in a single race. The term includes wagering on the win pool, the place pool, or the show pool.

(45) "Sending track" means any licensed track for horse [or greyhound] racing in this state or another state from which a race is transmitted.

(54) "Trainer" means a person who is licensed by the commission to train horses [or greyhounds].

SECTION 6. Chapter 2021, Occupations Code, is amended by adding Section 2021.010 to read as follows:

Sec. 2021.010. DOG RACING PROHIBITED. Any form of dog racing, including greyhound racing, conducted as a live racing event in this state is prohibited.

SECTION 7. Section 2022.001(c), Occupations Code, is amended to read as follows:

(c) Of the appointed commission members:

(1) five members must be representatives of the general public and have general knowledge of business or agribusiness; and

(2) two members [one additional member] must have special knowledge or experience related to horse racing[; and

[(3) one additional member must have special knowledge or experience related to greyhound racing].

SECTION 8. Section 2022.004(b), Occupations Code, is amended to read as follows:

(b) A person may not be a commission member and may not be a commission employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of horse [or greyhound] racing or breeding; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of horse [or greyhound] racing or breeding.

SECTION 9. Section 2022.052(c), Occupations Code, is amended to read as follows:

(c) The commission may not employ or continue to employ 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 10. The heading to Subchapter A, Chapter 2023, Occupations Code, is amended to read as follows:

SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO

HORSE RACING [AND GREYHOUND RACING]

SECTION 11. Section 2023.001, Occupations Code, is amended to read as follows:

Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF HORSE RACING [AND GREYHOUND RACING]. (a) Notwithstanding any contrary provision in this subtitle, the commission may license and regulate all aspects of horse racing [and greyhound racing] in this state, regardless of whether that racing involves pari-mutuel wagering.

(b) The commission, in adopting rules and in the supervision and conduct of racing, shall consider the effect of a proposed commission action on the state's agricultural, horse breeding, and horse training[, greyhound breeding, and greyhound training] industry.

SECTION 12. Section 2023.002, Occupations Code, is amended to read as follows:

Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT RACE MEETINGS. (a) The commission shall regulate and supervise each race meeting in this state that involves wagering on the result of horse racing [or greyhound racing]. Each person and thing relating to the operation of a race meeting is subject to regulation and supervision by the commission.

(b) The commission shall adopt rules, issue licenses, and take any other necessary action relating exclusively to horse racing [or greyhound racing].

SECTION 13. Section 2023.004(a), Occupations Code, is amended to read as follows:

(a) The commission shall adopt:

(1) rules for conducting horse racing [or greyhound racing] in this state that involves wagering; and

(2) rules for administering this subtitle in a manner consistent with this subtitle.

SECTION 14. Section 2023.056(a), Occupations Code, is amended to read as follows:

(a) The commission shall:

(1) 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; and

(2) investigate, or assist a local law enforcement agency in the investigation of, an unlawful dog race conducted in this state.

SECTION 15. Section 2023.061(b), Occupations Code, is amended to read as follows:

(b) The report must cover the operations of the commission and the condition of horse breeding and racing [and greyhound breeding and racing] during the previous year.

SECTION 16. Section 2023.101, Occupations Code, is amended to read as follows:

Sec. 2023.101. EMPLOYMENT OF STEWARDS [AND JUDGES]. (a) A horse race meeting must be supervised by three stewards[, and a greyhound race meeting must be supervised by three judges].

(b) The commission shall employ each steward [and judge] for the supervision of a horse race [or greyhound race] meeting.

(c) The 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 commission for the 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 commission.

SECTION 17. Section 2024.055(a), Occupations Code, is amended to read as follows:

(a) The comptroller shall deposit the state's share of each pari-mutuel pool from horse racing [and greyhound racing] in the general revenue fund.

SECTION 18. 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 commission. A person who violates this section commits an offense.

SECTION 19. Section 2025.053(b), Occupations Code, is amended to read as follows:

(b) The commission shall set application fees in amounts reasonable and necessary to cover the costs of administering this subtitle. The commission by rule shall establish a schedule of application fees for the various [types and] classifications of racetracks using minimum application fees. The minimum application fee[:

[(1) for a horse racetrack] is:

(1) [(A)] $15,000 for a class 1 racetrack;

(2) [(B)] $7,500 for a class 2 racetrack;

(3) [(C)] $2,500 for a class 3 racetrack; and

(4) [(D)] $1,500 for a class 4 racetrack[; and

[(2) for a greyhound racetrack is $20,000].

SECTION 20. Section 2025.101(c), Occupations Code, is amended to read as follows:

(c) The 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.

SECTION 21. Section 2025.102(b), Occupations Code, is amended to read as follows:

(b) In determining whether to grant or deny an application for any class of racetrack license, the 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.

SECTION 22. Sections 2025.201(a) and (c), Occupations Code, are amended to read as follows:

(a) The commission may refuse to issue a racetrack license or may revoke or suspend a 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, 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;

(5) failed to answer or falsely or incorrectly answered a question in an 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 not at least the minimum age necessary to purchase alcoholic beverages in this state;

(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;

(12) has not been a United States citizen residing in this state for the 10 consecutive years preceding the filing of the application;

(13) has improperly used a credential, including a license certificate or identification card, issued under this subtitle;

(14) resides with a person whose license was revoked for cause during the 12 months preceding the date of the present application;

(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 commission determines are detrimental to the best interests of the public and the sport of horse racing [or greyhound racing]; or

(17) fails to fully disclose the true owners of all interests, beneficial or otherwise, in a proposed racetrack.

(c) The 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.

SECTION 23. 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 24. Section 2026.003(a), Occupations Code, is amended to read as follows:

(a) The commission by rule shall require that each racetrack association that holds a license for a class 1 racetrack or[,] class 2 racetrack[, or greyhound racetrack] annually file with the 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 commission.

SECTION 25. Section 2026.004(a), Occupations Code, is amended to read as follows:

(a) Except as provided by this section, Section 2026.005, or Section 2025.103, a racetrack association may not conduct horse racing [or greyhound racing] at any place other than the place designated in the license.

SECTION 26. Sections 2026.011 and 2026.051, Occupations Code, are amended to read as follows:

Sec. 2026.011. AUTOMOBILE RACING FACILITY PROHIBITED NEAR RACETRACK IN CERTAIN COUNTIES. An automobile racing facility may not be located within 10,000 feet of a horse [or greyhound] racetrack that is located in a county with a population of 2.1 million or more.

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 27. Section 2027.001(a), Occupations Code, is amended to read as follows:

(a) The commission shall adopt rules to regulate wagering on horse races [and greyhound races] under the system known as pari-mutuel wagering.

SECTION 28. Sections 2027.002(b) and (d), Occupations Code, are amended to read as follows:

(b) A person may not accept, in person, by telephone, or over the Internet, a wager for a horse [or greyhound] race conducted inside or outside this state from a person in this state unless the wager is authorized under this subtitle.

(d) Except as provided by Subsection (c), a person may not place, in person, by telephone, or over the Internet, a wager for a horse [or greyhound] race conducted inside or outside this state.

SECTION 29. Section 2027.006(a), Occupations Code, is amended to read as follows:

(a) A person who claims to be entitled to any part of a distribution from a pari-mutuel pool may, not later than the first anniversary of the day the ticket was purchased, file with the appropriate racetrack association a claim for the money accompanied by a substantial portion of the pari-mutuel ticket sufficient to identify the racetrack association, race, horse [or greyhound] involved, amount wagered, and type of ticket.

SECTION 30. Sections 2027.102(a) and (b), Occupations Code, are amended to read as follows:

(a) A person may not wager on the result of a horse [or greyhound] race in this state except as authorized by this subtitle.

(b) A person other than a racetrack association may not accept from a Texas resident while the resident is in this state a wager on the result of a horse [or greyhound] race conducted inside or outside this state.

SECTION 31. Section 2028.051, Occupations Code, is amended to read as follows:

Sec. 2028.051. SET-ASIDE FROM LIVE PARI-MUTUEL POOL. A horse [or greyhound] racetrack association shall set aside for this state from each live pari-mutuel pool at the racetrack an amount equal to:

(1) one percent of each live pari-mutuel pool from the total amount of all of the racetrack association's live pari-mutuel pools in a calendar year in excess of $100 million but less than $200 million;

(2) two percent of each live pari-mutuel pool from the total amount of all of the racetrack association's live pari-mutuel pools in a calendar year in excess of $200 million but less than $300 million;

(3) three percent of each live pari-mutuel pool from the total amount of all of the racetrack association's live pari-mutuel pools in a calendar year in excess of $300 million but less than $400 million;

(4) four percent of each live pari-mutuel pool from the total amount of all of the racetrack association's live pari-mutuel pools in a calendar year in excess of $400 million but less than $500 million; and

(5) five percent of each live pari-mutuel pool from the total amount of all of the racetrack association's live pari-mutuel pools in a calendar year in excess of $500 million.

SECTION 32. Sections 2028.202(a) and (a-1), Occupations Code, are amended to read as follows:

(a) A racetrack association shall distribute from the total amount deducted as provided by Section [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 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 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

(3) [(5)] the remainder as the amount set aside for purses, expenses, the sending track, and the receiving location under a contract approved by the commission between the sending track and the receiving location.

(a-1) A racetrack association shall pay to the commission for deposit into the Texas-bred incentive fund established under Section 2028.301 the shares to be distributed under Subsection (a)(2) [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 33. The heading to Chapter 2030, Occupations Code, is amended to read as follows:

CHAPTER 2030. TEXAS-BRED HORSES [AND GREYHOUNDS]

SECTION 34. 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;

(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 35. Section 2033.003(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if, without a license, the person in any capacity participates or is otherwise involved in horse racing [or greyhound racing] with pari-mutuel wagering.

SECTION 36. 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 racetrack license; and

(2) knows or reasonably should know that another person is betting on the final or partial outcome of the race.

SECTION 37. 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 commission under rules adopted under this subtitle.

SECTION 38. Section 2033.013(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if, with an intent to deceive and an intent to obtain a benefit, the person knowingly:

(1) makes a false statement about a horse [or greyhound] race to another person; or

(2) offers, agrees to convey, or conveys false information about a horse [or greyhound] race to another person.

SECTION 39. Sections 2033.014(a) and (b), Occupations Code, are amended to read as follows:

(a) A person commits an offense if, with the intent to influence or affect the outcome of a race in a manner contrary to this subtitle or a commission rule, the person offers, confers, or agrees to confer on another person, or solicits, accepts, or agrees to accept from another person, any benefit as consideration for the actions of a person who receives the benefit relating to the conduct, decision, opinion, recommendation, vote, or exercise of discretion as a license holder or other person associated with or interested in any stable, [kennel,] horse, [greyhound,] or horse [or greyhound] race.

(b) An offense under this section is a state jail felony unless the recipient of the benefit is a steward, judge, or other racetrack official exercising authority over a horse [or greyhound] race that the person providing or offering the benefit intended to influence, in which event the offense is a felony of the third degree.

SECTION 40. Sections 2033.015(b) and (c), Occupations Code, are amended to read as follows:

(b) A person commits an offense if, with the intent to influence or affect a horse [or greyhound] race in a manner contrary to this subtitle or a commission rule, the person uses or offers to use:

(1) a prohibited device; or

(2) a prohibited substance.

(c) An offense under Subsection (a) is a Class A misdemeanor unless the actor possessed the prohibited device or prohibited substance with the intent to influence or affect the outcome of a horse [or greyhound] race in a manner contrary to this subtitle or a commission rule, in which event the offense is a state jail felony.

SECTION 41. Section 2033.016, Occupations Code, is amended to read as follows:

Sec. 2033.016. CRIMINAL CONFLICT OF INTEREST. A person who is a commission member commits an offense if the person:

(1) accepts, directly or indirectly, employment or remuneration from a racetrack, racetrack association, or other license holder, including a racetrack, racetrack association, or license holder located or residing in another state;

(2) wagers or causes a wager to be placed on the outcome of a horse [or greyhound] race conducted in this state; or

(3) accepts or is entitled to any part of a purse to be paid to an animal in a race conducted in this state.

SECTION 42. Section 2035.001(a), Occupations Code, is amended to read as follows:

(a) The 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 43. Section 2035.002, Occupations Code, is amended to read as follows:

Sec. 2035.002. INITIATION OF LEGALIZATION ELECTION. The commissioners court:

(1) may, on its own motion by a majority vote of its members, order an election to approve the legalization of pari-mutuel wagering on horse races [or greyhound races]; and

(2) shall order an election on presentation of a petition meeting the requirements of this chapter.

SECTION 44. Section 2035.003, Occupations Code, is amended to read as follows:

Sec. 2035.003. ELECTION TO APPROVE WAGERING ON SIMULCAST RACES. The commissioners court of a county in which a racetrack is conducting live racing may, on its own motion by a majority vote of its members, order an election to approve pari-mutuel wagering on simulcast horse races [or greyhound races].

SECTION 45. Section 2035.005, Occupations Code, is amended to read as follows:

Sec. 2035.005. CONTENTS OF PETITION APPLICATION. To be valid, the petition application must contain:

(1) a heading, as follows: "Application for a Petition for a Local Option Election to Approve the Legalization of Pari-mutuel Wagering on Horse Races" [or "Application for a Petition for a Local Option Election to Approve the Legalization of Pari-mutuel Wagering on Greyhound Races," as appropriate];

(2) a statement of the issue to be voted on, as follows: "Legalizing pari-mutuel wagering on horse races in __________ County" [or "Legalizing pari-mutuel wagering on greyhound races in __________ County," as appropriate];

(3) a statement immediately above the signatures of the applicants, as follows: "It is the hope, purpose, and intent of the applicants whose signatures appear below that pari-mutuel wagering on horse races be legalized in __________ County" [or "It is the hope, purpose, and intent of the applicants whose signatures appear below that pari-mutuel wagering on greyhound races be legalized in __________ County," as appropriate]; and

(4) the printed name, signature, residence address, and voter registration certificate number of each applicant.

SECTION 46. Section 2035.006, Occupations Code, is amended to read as follows:

Sec. 2035.006. CONTENTS OF PETITION. To be valid, the petition must contain:

(1) a heading, as follows: "Petition for a Local Option Election to Approve the Legalization of Pari-mutuel Wagering on Horse Races" [or "Petition for a Local Option Election to Approve the Legalization of Pari-mutuel Wagering on Greyhound Races," as appropriate];

(2) a statement of the issue to be voted on, in the same words used in the application;

(3) a statement immediately above the signatures of the petitioners, as follows: "It is the hope, purpose, and intent of the petitioners whose signatures appear below that pari-mutuel wagering on horse races be legalized in __________ County" [or "It is the hope, purpose, and intent of the petitioners whose signatures appear below that pari-mutuel wagering on greyhound races be legalized in __________ County," as appropriate];

(4) lines and spaces for the names, signatures, addresses, and voter registration certificate numbers of the petitioners; and

(5) the date of issuance, the serial number, and the seal of the county clerk on each page.

SECTION 47. Section 2035.015, Occupations Code, is amended to read as follows:

Sec. 2035.015. BALLOT PROPOSITION. The ballots for an election under this subchapter shall be printed to permit voting for or against the proposition: "Legalizing pari-mutuel wagering on horse races in __________ County," ["Legalizing pari-mutuel wagering on greyhound races in __________ County,"] or "Authorizing pari-mutuel wagering on simulcast races in _____ County," as appropriate.

SECTION 48. Section 2035.016, Occupations Code, is amended to read as follows:

Sec. 2035.016. CERTIFICATION OF ELECTION RESULTS. If a majority of the votes cast in the election favor the legalization of pari-mutuel wagering on horse races [or greyhound races] in the county, or the authorization of pari-mutuel wagering on simulcast races in the county, as appropriate, the commissioners court shall certify that fact to the secretary of state not later than the 10th day after the date of the canvass of the returns.

SECTION 49. Section 2035.105, Occupations Code, is amended to read as follows:

Sec. 2035.105. BALLOT PROPOSITION. The ballots for an election under this subchapter shall be printed to permit voting for or against the proposition: "Rescinding the legalization of pari-mutuel wagering on horse races in __________ County" [or "Rescinding the legalization of pari-mutuel wagering on greyhound races in __________ County," as appropriate].

SECTION 50. Section 11.23(h), Tax Code, is amended to read as follows:

(h) County Fair Associations. A county fair association organized to hold agricultural fairs and encourage agricultural pursuits is entitled to an exemption from taxation of the land and buildings that it owns and uses to hold agricultural fairs. An association that holds a license issued after January 1, 2001, under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act), to conduct a horse race meeting [or a greyhound race meeting] with pari-mutuel wagering is not entitled to an exemption under this subsection. Land or a building used to conduct a horse race meeting [or a greyhound race meeting] with pari-mutuel wagering under a license issued after January 1, 2001, under that subtitle may not be exempted under this subsection. To qualify for an exemption under this subsection, a county fair association must:

(1) be a nonprofit corporation governed by Chapter 22, Business Organizations Code;

(2) be exempt from federal income taxes as an organization described by Section 501(c)(3), (4), or (5), Internal Revenue Code of 1986;

(3) qualify for an exemption from the franchise tax under Section 171.060; and

(4) meet the requirements of a charitable organization provided by Sections 11.18(e) and (f), for which purpose the functions for which the association is organized are considered to be charitable functions.

SECTION 51. The following provisions of the Occupations Code are repealed:

(1) Sections 2021.003(12), (15), (16), (17), (22), and (35);

(2) Section 2023.054;

(3) Subchapter D, Chapter 2025;

(4) Section 2026.010;

(5) Section 2027.052(b);

(6) Sections 2027.054(a) and (b);

(7) Section 2027.055;

(8) Section 2027.056;

(9) Subchapter D, Chapter 2028;

(10) Sections 2028.202(b), (c), (d), and (e);

(11) Section 2028.204(a);

(12) Subchapter B, Chapter 2029; and

(13) Subchapter B, Chapter 2030.

SECTION 52. As soon as practicable after the effective date of this Act, the Texas Racing Commission shall adopt the rules necessary to comply with Subtitle A-1, Title 13, Occupations Code (Texas Racing Act), as amended by this Act.

SECTION 53. (a) Not later than September 1, 2030, a greyhound racetrack association may submit an application to the Texas Racing Commission to convert the association's greyhound racetrack license to a class 2 or class 3 racetrack license, as classified under Subchapter C, Chapter 2026, Occupations Code, for horse racing.

(b) The Texas Racing Commission shall approve an application submitted under Subsection (a) of this section if:

(1) the applicant is in good standing with the commission; and

(2) information related to the applicant on file with the commission is current, complete, and accurate.

SECTION 54. (a) The changes in law made by this Act apply only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before the effective date of this Act is governed by the law in effect on the date the conduct occurred, and the former law is continued in effect for that purpose.

(b) 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 55. This Act takes effect September 1, 2025.