Bill Text: TX HB4115 | 2023-2024 | 88th Legislature | Comm Sub
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
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 |
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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 [ |
||
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 [ |
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(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 [ |
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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 | ||
[ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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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 [ |
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(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 [ |
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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 [ |
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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 [ |
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or who has committed any act tending or intended to corrupt horse | ||
[ |
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(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 [ |
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(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 [ |
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(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 | ||
[ |
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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 | ||
[ |
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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 [ |
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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 [ |
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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 [ |
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(a) The comptroller [ |
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of the simulcast pari-mutuel pool [ |
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under this chapter into a trust fund [ |
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state treasury [ |
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the Texas-bred escrow account. Money in the account may not be | ||
appropriated for state expenditure [ |
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(b) The commission shall distribute money from the | ||
Texas-bred escrow account [ |
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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 [ |
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under Chapter 751, Health and Safety Code; | ||
(2) the person wagers on the partial or final outcome | ||
of the horse [ |
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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 [ |
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(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 | ||
[ |
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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 | ||
[ |
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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 [ |
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(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 [ |
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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 [ |
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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 [ |
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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 [ |
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SECTION 2.003. Section 751.0021(a), Health and Safety Code, | ||
is amended to read as follows: | ||
(a) This chapter applies to a horse [ |
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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 [ |
||
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 [ |
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(34) "Pari-mutuel wagering" means the form of wagering | ||
on the outcome of horse racing [ |
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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 | ||
[ |
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(42) "Racetrack association" means a person licensed | ||
under this subtitle to conduct a horse race meeting [ |
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(44) "Regular wagering" means wagering on a single | ||
horse [ |
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the win pool, the place pool, or the show pool. | ||
(54) "Trainer" means a person who is licensed by the | ||
commission to train horses [ |
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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[ |
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[ |
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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 [ |
||
(2) the person's spouse is an officer, manager, or paid | ||
consultant of a Texas trade association in the field of horse [ |
||
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 [ |
||
SECTION 2.010. Section 2023.001, Occupations Code, is | ||
amended to read as follows: | ||
Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF | ||
HORSE RACING [ |
||
contrary provision in this subtitle, the commission may license and | ||
regulate all aspects of horse racing [ |
||
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[ |
||
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 [ |
||
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 [ |
||
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 [ |
||
(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 [ |
||
horse race meeting must be supervised by three stewards[ |
||
(b) The commission shall employ each steward [ |
||
the supervision of a horse race [ |
||
(c) The commission shall designate one steward [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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) [ |
||
(2) [ |
||
(3) [ |
||
(4) [ |
||
[ |
||
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 [ |
||
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 [ |
||
(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 [ |
||
(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 [ |
||
(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 [ |
||
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[ |
||
2 racetrack[ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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) [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
(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" [ |
||
(2) a statement of the issue to be voted on, as | ||
follows: "Legalizing pari-mutuel wagering on horse races in | ||
__________ County" [ |
||
(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" [ |
||
(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" [ |
||
(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" [ |
||
(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," [ |
||
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 [ |
||
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" [ |
||
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 [ |
||
pari-mutuel wagering is not entitled to an exemption under this | ||
subsection. Land or a building used to conduct a horse race meeting | ||
[ |
||
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. |