Bill Text: TX HB4115 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to eligibility for membership on and the regulation of horse racing by the Texas Racing Commission and a prohibition on the conduct of greyhound or other dog racing as live events in this state; creating a criminal offense; authorizing a fee.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2023-05-11 - Placed on General State Calendar [HB4115 Detail]

Download: Texas-2023-HB4115-Comm_Sub.html

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88R25685 BEE-D
By: Thompson of Harris, Bell of Montgomery H.B. No. 4115
Substitute the following for H.B. No. 4115:
By: Goldman C.S.H.B. No. 4115

A BILL TO BE ENTITLED
AN ACT
relating to eligibility for membership on and the regulation of
horse racing by the Texas Racing Commission and a prohibition on the
conduct of greyhound or other dog racing as live events in this
state; creating a criminal offense; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. MEMBERSHIP ON AND REGULATION OF HORSE RACING BY TEXAS
RACING COMMISSION
SECTION 1.001. 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 1.002. 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 1.003. 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 of any
crime involving moral turpitude].
SECTION 1.004. The heading to Section 2022.052, Occupations
Code, is amended to read as follows:
Sec. 2022.052. EMPLOYEES; RESTRICTIONS ON EMPLOYMENT;
CONTRACTING.
SECTION 1.005. 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 1.006. Subchapter B, Chapter 2022, Occupations
Code, is amended by adding Section 2022.0515 to read as follows:
Sec. 2022.0515. GRANTS. The executive director may apply
for and receive any grant applicable to the implementation or
enforcement of this subtitle or a rule adopted under this subtitle.
SECTION 1.007. Chapter 2022, Occupations Code, is amended
by adding Subchapter D to read as follows:
SUBCHAPTER D. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL AND
ESCROW ACCOUNT
Sec. 2022.151. DEFINITIONS. In this subchapter:
(1) "Council" means the Texas equine education and
research council.
(2) "Escrow account" means the Texas equine education
and research escrow account.
Sec. 2022.152. TEXAS EQUINE EDUCATION AND RESEARCH ESCROW
ACCOUNT. The Texas equine education and research escrow account is
a special account in the general revenue fund. Money deposited to
the credit of the escrow account may be used only for the purposes
described in this subchapter.
Sec. 2022.153. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL.
(a) The Texas equine education and research council is composed of:
(1) the executive director; and
(2) one representative designated by each of the
following entities:
(A) Texas A&M Veterinary Medical Diagnostic
Laboratory;
(B) Texas A&M AgriLife Extension Service;
(C) Texas A&M School of Veterinary Medicine &
Biomedical Sciences;
(D) Texas Animal Health Commission; and
(E) Department of State Health Services.
(b) The executive director serves as the council's
presiding officer.
SECTION 1.008. 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 1.009. 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 1.010. 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 1.011. 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 1.012. Section 2025.103(a), Occupations Code, is
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
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 fifth [second] anniversary of the date of
issuance of the temporary license; or
(2) the completion of the permanent facility.
SECTION 1.013. 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 1.014. Section 2026.008(b), Occupations Code, is
amended to read as follows:
(b) The commission shall adopt rules relating to:
(1) the approval of plans and specifications;
(2) the contents of plans and specifications,
including a requirement that a plan incorporate proposals for the
racetrack to support state emergency management activities under
Chapter 418, Government Code;
(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 commission;
(5) the inspection by the 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.
SECTION 1.015. 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 1.016. 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 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) the greater of two percent or $50,000 shall be set
aside for purposes of Subchapter D, Chapter 2022 [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 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 1.017. 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 1.018. 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 1.019. 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 1.020. Subchapter A, Chapter 2029, Occupations
Code, is amended by adding Section 2029.0015 to read as follows:
Sec. 2029.0015. TRANSFER OF ALLOCATED RACE DATE. (a) A
class 2 racetrack may submit to the commission an application to
transfer to a class 1 racetrack a race date the commission allocated
to the class 2 racetrack under Section 2029.001. The horsemen's
organization must agree to the transfer before the application is
submitted.
(b) The commission:
(1) shall approve or disapprove an application
submitted under Subsection (a) not later than the 10th day after the
date the application is submitted; and
(2) may not charge a fee for the submitted
application.
SECTION 1.021. 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 1.022. 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 1.023. 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 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 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 1.024. 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 1.025. 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 1.026. 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 1.027. 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);
(5) Section 2025.260;
(6) Section 2026.011; and
(7) Section 2028.2041(c).
SECTION 1.028. 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 1.029. 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 this Act.
SECTION 1.030. 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 1.031. 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.
ARTICLE 2. PROHIBITION ON CONDUCT OF GREYHOUND AND OTHER DOG RACING
AS LIVE EVENTS
SECTION 2.001. 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 2.002. 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 2.003. 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 2.004. 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 2.005. Sections 2021.003(30), (34), (41), (42),
(44), 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.
(54) "Trainer" means a person who is licensed by the
commission to train horses [or greyhounds].
SECTION 2.006. Chapter 2021, Occupations Code, is amended
by adding Section 2021.010 to read as follows:
Sec. 2021.010. GREYHOUND RACING PROHIBITED. Greyhound
racing conducted as a live racing event, or any other form of dog
racing, is prohibited in this state.
SECTION 2.007. 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) 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 2.008. 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 2.009. 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 2.010. 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 2.011. 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 2.012. 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 2.013. 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 2.014. 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 2.015. 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 2.016. 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 2.017. 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 2.018. 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 2.019. 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 2.020. 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 2.021. 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 2.022. 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 2.023. 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, or horse [or greyhound]
involved, amount wagered, and type of ticket.
SECTION 2.024. 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 2.025. Section 2028.202(a), Occupations Code, is
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
(4) [(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.
SECTION 2.026. The heading to Chapter 2030, Occupations
Code, is amended to read as follows:
CHAPTER 2030. TEXAS-BRED HORSES [AND GREYHOUNDS]
SECTION 2.027. 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 2.028. 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 2.029. 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 2.030. 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 2.031. 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 2.032. 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 2.033. 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 2.034. 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 2.035. The following provisions of the Occupations
Code are repealed:
(1) Sections 2021.003(15), (16), (17), (22), and (35);
(2) Section 2023.054;
(3) Subchapter D, Chapter 2025;
(4) Section 2026.010;
(5) Section 2027.056;
(6) Subchapter D, Chapter 2028;
(7) Sections 2028.202(b), (c), (d), and (e);
(8) Section 2028.205;
(9) Subchapter B, Chapter 2029; and
(10) Subchapter B, Chapter 2030.
SECTION 2.036. (a) Greyhound purse funds held by any
greyhound racetrack association on September 1, 2023, shall be
transferred to the Texas Racing Commission for deposit into an
escrow account in the commission's registry. Any horse breed
registry that holds greyhound purse funds on September 1, 2023,
shall retain those funds, and those funds may only be used for live
horse race purses. The commission by rule shall determine the
allocation of greyhound purse funds transferred to the commission
under this subsection.
(b) A racetrack association conducting live horse racing in
this state on or after September 1, 2023, may apply to the Texas
Racing Commission for allocation of purse funds described by
Subsection (a) of this section to be used for purses at the
association's racetrack during the calendar year for which the
purse funds are requested. A commission decision relating to the
allocation of purse funds is final.
SECTION 2.037. (a) On or before January 1, 2024, 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;
(2) information related to the applicant on file with
the commission is current, complete, and accurate; and
(3) the applicant pays a fee of $25,000 for the
commission's review of the application.
(c) An applicant approved under this section must complete
the conversion of the greyhound racetrack facility to a horse
racetrack facility not later than December 31, 2027.
SECTION 2.038. As soon as practicable after the effective
date of this Act, the Texas Racing Commission shall adopt the rules
necessary to implement this article.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.001. This Act takes effect September 1, 2023.