Bill Text: TX SB1969 | 2017-2018 | 85th Legislature | Enrolled


Bill Title: Relating to the nonsubstantive revision of the Texas Racing Act, including conforming amendments.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-06-15 - Effective on . . . . . . . . . . . . . . . [SB1969 Detail]

Download: Texas-2017-SB1969-Enrolled.html
 
 
  S.B. No. 1969
 
 
 
 
AN ACT
  relating to the nonsubstantive revision of the Texas Racing Act,
  including conforming amendments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. NONSUBSTANTIVE REVISION OF THE TEXAS RACING ACT
         SECTION 1.01.  Title 13, Occupations Code, is amended by
  adding Subtitle A-1 to read as follows:
  SUBTITLE A-1.  TEXAS RACING ACT
  CHAPTER 2021. GENERAL PROVISIONS
  CHAPTER 2022.  TEXAS RACING COMMISSION
  CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS
                 AND DUTIES
  CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER
  CHAPTER 2025.  LICENSING
  CHAPTER 2026.  RACETRACK OPERATION AND PREMISES
  CHAPTER 2027.  WAGERING
  CHAPTER 2028.  PARI-MUTUEL POOLS, PURSES, AND FEES
  CHAPTER 2029.  ALLOCATION OF RACING DAYS
  CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS
  CHAPTER 2031.  TEXAS DERBIES
  CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS
  CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES;
                 DISCIPLINARY POWERS
  CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING
  CHAPTER 2035.  LOCAL OPTION ELECTION TO LEGALIZE
                 PARI-MUTUEL WAGERING
  SUBTITLE A-1.  TEXAS RACING ACT
  CHAPTER 2021.  GENERAL PROVISIONS
  Sec. 2021.001.  SHORT TITLE 
  Sec. 2021.002.  PURPOSE 
  Sec. 2021.003.  GENERAL DEFINITIONS 
  Sec. 2021.004.  DEFINITIONS USED IN ADMINISTERING THIS
                   SUBTITLE 
  Sec. 2021.005.  PRECEDENCE OF SUIT UNDER TITLE 
  Sec. 2021.006.  RELEASE OF CIVIL LIABILITY 
  Sec. 2021.007.  FEE OR PAYMENT IN LIEU OF OTHER STATE
                   TAXES AND FEES 
  Sec. 2021.008.  SUNSET PROVISION 
  CHAPTER 2021.  GENERAL PROVISIONS
         Sec. 2021.001.  SHORT TITLE. This subtitle may be cited as
  the Texas Racing Act. (V.A.C.S. Art. 179e, Sec. 1.01.)
         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. (V.A.C.S. Art. 179e, Sec. 1.02.)
         Sec. 2021.003.  GENERAL DEFINITIONS. In this subtitle:
               (1)  "Accredited Texas-bred horse" means a Texas-bred
  horse that meets the accreditation requirements of the state horse
  breed registry for that breed of horse.
               (2)  "Active license" means a racetrack license
  designated by the commission as active.
               (3)  "Appaloosa horse" means a horse that is registered
  by the Appaloosa Horse Club.
               (4)  "Applicant" means a person with a legal,
  equitable, or beneficial interest in a license application.
               (5)  "Arabian horse" means a horse that is registered
  by the Arabian Horse Association or by the Canadian Arabian Horse
  Registry.
               (6)  "Breakage" means the odd cents by which the amount
  payable on each dollar wagered exceeds a multiple of 10 cents,
  except in a minus pool, in which the breakage must be in multiples
  of five cents.
               (7)  "Child" means an individual younger than 16 years
  of age.
               (8)  "Commission" means the Texas Racing Commission.
               (9)  "Concessionaire" means a person licensed by the
  commission to sell refreshments or souvenirs at a racetrack.
               (10)  "Contraband" means:
                     (A)  an item the possession of which is unlawful
  under this subtitle, a commission rule, or other law;
                     (B)  an item that might reasonably have the effect
  of unnaturally depressing, stimulating, or exciting an animal
  during a race in a manner contrary to this subtitle or a commission
  rule, including a prohibited device or prohibited substance; or
                     (C)  a document, including a credential or forged
  ticket, possessed or used by an individual in violation of this
  subtitle or a commission rule.
               (11)  "Credential" means any document indicating
  authority or permission under this subtitle, including a license,
  certificate, and identification card.
               (12)  "Cross-species simulcast signal" means a
  simulcast signal of a horse race at a greyhound racetrack or a
  simulcast signal of a greyhound race at a horse racetrack.
               (13)  "Enclosure" means all areas of a racetrack
  association's grounds, including the parking area, to which
  admission is ordinarily obtained only on payment of an admission
  fee or presentation of an official credential.
               (14)  "Executive director" means the executive
  director of the commission.
               (15)  "Greyhound" means a purebred greyhound dog
  registered by the National Greyhound Association.
               (16)  "Greyhound racing" means any race in which two or
  more greyhounds engage in a contest of speed or endurance or pursue
  a mechanical lure.
               (17)  "Greyhound racing day" means a day on which a
  racetrack association conducts greyhound racing. "One racing day"
  means a period beginning at noon and ending at 2 a.m. the next
  calendar day, other than a day on which a matinee performance is
  conducted.
               (18)  "Horse race meeting" means the conducting of
  horse races on a day or during a period of consecutive or
  nonconsecutive days.
               (19)  "Horse racing day" means the 24-hour period
  ending at 12 midnight.
               (20)  "Horsemen's organization" means an organization
  recognized by the commission that:
                     (A)  represents horse owners and trainers in
  negotiating and contracting with racetrack associations on
  subjects relating to racing; and
                     (B)  represents and advocates the interests of
  horse owners and trainers before administrative, legislative, and
  judicial forums.
               (21)  "Inactive license" means a racetrack license
  designated by the commission as inactive.
               (22)  "Judge" means a racing official with general
  authority and supervision over:
                     (A)  the conduct of a greyhound race meeting; and
                     (B)  all license holders at a racetrack during a
  greyhound race meeting.
               (23)  "Live pari-mutuel pool" means the total amount of
  money wagered by patrons on the result of a particular live race or
  combination of live races within the enclosure of the racetrack
  association where the race is being run.
               (24)  "Maiden" means a horse that has never won a race
  at a race meeting authorized by the commission or by another racing
  jurisdiction.
               (25)  "Matinee performance" means any performance
  starting between 10 a.m. and 5 p.m. on a day other than Sunday.
               (26)  "Minor" means an individual younger than 21 years
  of age.
               (27)  "Multiple wagering" means wagering on two or more
  animals in one race or on one or more animals in more than one race.  
  "Multiple two wagering" means wagering on two animals in one or more
  races.  "Multiple three wagering" means wagering on three or more
  animals in one or more races.
               (28)  "National historic district" means a district
  included in or eligible for inclusion in the National Register of
  Historic Places under 54 U.S.C. Section 302101 et seq.
               (29)  "Nonprofit corporation" means a nonprofit
  corporation governed by Chapter 22, Business Organizations Code,
  that:
                     (A)  does not distribute any of its income to its
  members, officers, or governing body, other than as reasonable
  compensation for services;
                     (B)  has a governing body or officers elected by a
  vote of members or by a vote of delegates elected by the members;
  and
                     (C)  has obtained an exemption under Section 501
  of the Internal Revenue Code of 1986.
               (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.
               (31)  "Paint horse" means a horse that is registered by
  the American Paint Horse Association.
               (32)  "Pari-mutuel pool" means the total amount of
  money wagered by patrons on the result of a particular race or
  combination of races, divided into separate mutuel pools for win,
  place, show, or combinations.
               (33)  "Pari-mutuel voucher" means a bearer instrument,
  issued by a pari-mutuel wagering machine, that represents money
  owned by a wagering patron and held by a racetrack association,
  including winnings from a pari-mutuel wager.
               (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.
               (35)  "Performance" means the consecutive running of a
  specified number of greyhound races as determined by the
  commission.
               (36)  "Person" includes any individual or entity
  capable of holding a legal or beneficial interest in property.
               (37)  "Prohibited device" means:
                     (A)  a spur or an electrical or other device
  prohibited by a commission rule regulating the unlawful influence
  of a race; or
                     (B)  a device specifically designed, made, or
  adapted to influence or affect the outcome of a race in a manner
  contrary to this subtitle or a commission rule.
               (38)  "Prohibited substance" means a drug, chemical, or
  other substance that:
                     (A)  in use or in intended use, is reasonably
  capable of influencing or affecting the outcome of a race in a
  manner contrary to this subtitle or a commission rule; and
                     (B)  is prohibited by a commission rule regulating
  the unlawful influence of a race.
               (39)  "Quarter horse" means a horse that is registered
  by the American Quarter Horse Association.
               (40)  "Race" includes a live audio and visual signal of
  a race.
               (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.
               (43)  "Receiving location" means a racetrack
  association in this state that has been allocated live and
  simulcast race dates or a facility not located in this state that is
  authorized to conduct wagering under the law of the jurisdiction in
  which it is located.
               (44)  "Regular wagering" means wagering on a single
  horse or greyhound in a single race.  The term includes wagering on
  the win pool, the place pool, or the show pool.
               (45)  "Sending track" means any licensed track for
  horse or greyhound racing in this state or another state from which
  a race is transmitted.
               (46)  "Simulcast" means the telecast or other
  transmission of live audio and visual signals of a race,
  transmitted from a sending track to a receiving location, for the
  purpose of wagering conducted on the race at the receiving
  location.
               (47)  "Simulcast pari-mutuel pool" means the total
  amount of money wagered by patrons at a racetrack in this state on
  the result of a particular simulcast race or combination of
  simulcast races.
               (48)  "State horse breed registry" means a designated
  association administering accredited Texas-bred horse requirements
  for a specific breed of horses.
               (49)  "Steward" means a racing official with general
  authority and supervision over:
                     (A)  the conduct of a horse race meeting; and
                     (B)  all license holders at a racetrack during a
  horse race meeting.
               (50)  "Texas-bred horse" means a horse qualified under
  commission rules that is:
                     (A)  sired by a stallion standing in Texas at the
  time of conception and foaled by a mare in Texas;
                     (B)  foaled by a mare bred outside Texas and
  brought into Texas to foal at any time in the mare's lifetime if the
  mare is bred back to a stallion standing in Texas; or
                     (C)  a Thoroughbred or Arabian horse foaled in
  Texas by an accredited Texas-bred mare if the mare was bred outside
  Texas and returned to Texas on or before August 15 of the calendar
  year of conception.
               (51)  "Thoroughbred horse" means a horse that is
  registered by the Jockey Club.
               (52)  "Thoroughbred racing" means the form of horse
  racing in which Thoroughbred horses mounted by jockeys engage in a
  race.
               (53)  "Touting" means an offense described by Section
  2033.013 or a similar offense under the laws of another state.
               (54)  "Trainer" means a person who is licensed by the
  commission to train horses or greyhounds.
               (55)  "Veterinarian" means a person licensed under
  Chapter 801.  (V.A.C.S. Art. 179e, Secs. 1.03(1), (2), (3), (6),
  (7), (8), (9), (11), (13), (15), (17), (18), (19), (20), (21), (22),
  (24), (25), (26), (35), (36), (42), (43), (45), (46), (47), (48),
  (50), (51), (52), (53), (54), (57), (59), (60), (61), (62), (63),
  (64), (65), (66), (68), (69), (70), (71), (72), (73), (74), (75),
  (76), (77), (78), (79), (80), (81).)
         Sec. 2021.004.  DEFINITIONS USED IN ADMINISTERING SUBTITLE.
  For the purpose of administering this subtitle:
               (1)  "Authorized agent" means a person appointed by an
  owner of a horse to represent the owner.  The term is limited to a
  person who is appointed by a written instrument that the commission
  acknowledges and approves.
               (2)  "Clerk of scales" means a racetrack official who
  is responsible for weighing a jockey before and after a race.
               (3)  "Handicapper" means a person who predicts the
  winner of a horse race.
               (4)  "Horseshoe inspector" means a racetrack official
  who inspects the shoes of the horses entered in a race.
               (5)  "Jockey" or "apprentice jockey" means a
  professional rider licensed by the commission to ride in horse
  races.
               (6)  "Jockey room custodian" means a person who
  maintains the premises of a room in which jockeys prepare for a
  race.
               (7)  "Official starter" means a racetrack official who
  is in charge of the start of a race.
               (8)  "Paddock judge" means a racetrack official who
  supervises animals entered in a race while the animals are
  assembled before the beginning of a race in an enclosure on the
  grounds of a racetrack.
               (9)  "Patrol judge" means a racetrack official who is
  stationed at a set point along the racetrack to monitor the running
  of a race.
               (10)  "Quarter horse racing" means the form of horse
  racing in which quarter horses mounted by jockeys engage in a race.
               (11)  "Stable foreman" means the person in charge of
  the building in which horses are lodged and fed.
               (12)  "Timer" means a racetrack official who times the
  running of a race. (V.A.C.S. Art. 179e, Secs. 1.03(10), (27), (28),
  (30), (31), (32), (34), (37), (38), (39), (40), (41); New.)
         Sec. 2021.005.  PRECEDENCE OF SUIT UNDER TITLE. A court
  shall accelerate the disposition of an action brought under this
  subtitle. (V.A.C.S. Art. 179e, Secs. 16.16, 18.04.)
         Sec. 2021.006.  RELEASE OF CIVIL LIABILITY. A commission
  member, a commission employee, 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. (V.A.C.S. Art. 179e, Sec. 18.06.)
         Sec. 2021.007.  FEE OR PAYMENT IN LIEU OF OTHER STATE TAXES
  AND FEES. (a)  A fee or payment collected by this state under this
  subtitle is in lieu of any other fee, payment, or tax imposed by
  this state.
         (b)  This section does not preclude the application of:
               (1)  the sales tax or an increase in the sales tax to
  the sale or purchase of a taxable item by a person licensed under
  this subtitle; or
               (2)  the franchise tax to a person licensed under this
  subtitle. (V.A.C.S. Art. 179e, Sec. 18.05.)
         Sec. 2021.008.  SUNSET PROVISION. (a)  The commission is
  subject to Chapter 325, Government Code (Texas Sunset Act).  Unless
  continued in existence as provided by that chapter, and except as
  provided by Subsections (b) and (c), the commission is abolished
  and this subtitle expires September 1, 2023.
         (b)  If, at the time the commission would be abolished under
  Subsection (a), a racetrack association has outstanding long-term
  liabilities:
               (1)  the racetrack association may continue to operate
  for a period not to exceed one year after those liabilities are
  satisfied; and
               (2)  the commission and this subtitle are continued in
  effect for the purpose of regulating that racetrack association
  under this subtitle.
         (c)  If the commission and this subtitle are continued in
  effect under Subsection (b), the commission is abolished and this
  subtitle expires on the first day of the state fiscal year following
  the state fiscal year in which the commission certifies to the
  secretary of state that no racetrack associations are operating
  under the terms of Subsection (b).
         (d)  A racetrack association that continues to operate under
  Subsection (b) may not incur any new liability without commission
  approval. At the beginning of that period, the commission shall:
               (1)  review the outstanding liabilities of the
  racetrack association; and
               (2)  set a specific date by which the racetrack
  association must retire its outstanding liabilities.
         (e)  Notwithstanding any contrary contract provision, a
  racetrack association may prepay any debt incurred by the racetrack
  association in conducting racing under this subtitle. (V.A.C.S. Art. 179e, Sec. 18.01.)
 
  CHAPTER 2022.  TEXAS RACING COMMISSION
  SUBCHAPTER A.  COMPOSITION AND OPERATION
  Sec. 2022.001.  COMMISSION MEMBERSHIP 
  Sec. 2022.002.  TERM OF OFFICE 
  Sec. 2022.003.  FINANCIAL STATEMENT REQUIRED 
  Sec. 2022.004.  RESTRICTIONS ON COMMISSION APPOINTMENT,
                   MEMBERSHIP, AND EMPLOYMENT 
  Sec. 2022.005.  GROUNDS FOR REMOVAL 
  Sec. 2022.006.  MEMBER TRAINING 
  Sec. 2022.007.  MEMBER PER DIEM AND REIMBURSEMENT FOR
                   EXPENSES 
  Sec. 2022.008.  PRESIDING OFFICER 
  Sec. 2022.009.  COMMISSION MEETINGS; RECORD OF
                   COMMISSION VOTES 
  Sec. 2022.010.  COMMISSION OFFICES 
  Sec. 2022.011.  MONEY PAID TO COMMISSION 
  Sec. 2022.012.  LEGAL REPRESENTATION 
  Sec. 2022.013.  NEGOTIATED RULEMAKING AND ALTERNATIVE
                   DISPUTE RESOLUTION PROCEDURES 
  Sec. 2022.014.  PUBLIC PARTICIPATION 
  SUBCHAPTER B.  COMMISSION STAFF
  Sec. 2022.051.  EXECUTIVE DIRECTOR; DUTIES 
  Sec. 2022.052.  EMPLOYEES; RESTRICTIONS ON EMPLOYMENT 
  Sec. 2022.053.  COMMISSION INVESTIGATORS 
  Sec. 2022.054.  CAREER LADDER; PERFORMANCE EVALUATIONS 
  Sec. 2022.055.  EQUAL EMPLOYMENT OPPORTUNITY POLICY 
  Sec. 2022.056.  DIVISION OF RESPONSIBILITY 
  Sec. 2022.057.  BACKGROUND CHECKS AND QUALIFICATION
                   CRITERIA 
  Sec. 2022.058.  PROHIBITION ON EMPLOYMENT OF FORMER
                   COMMISSION MEMBERS OR EMPLOYEES BY
                   RACETRACK ASSOCIATION; CRIMINAL PENALTY 
  SUBCHAPTER C.  RECORDS AND INFORMATION
  Sec. 2022.101.  PUBLIC INTEREST INFORMATION 
  Sec. 2022.102.  INFORMATION RELATING TO COMPLAINT
                   PROCEDURES 
  Sec. 2022.103.  COMMISSION INVESTIGATIVE FILES
                   CONFIDENTIAL 
  Sec. 2022.104.  INTERAGENCY SHARING OF RECORDS 
  Sec. 2022.105.  BOOKS AND RECORDS; INSPECTION 
  Sec. 2022.106.  PUBLIC INSPECTION OF RECORDS 
  CHAPTER 2022.  TEXAS RACING COMMISSION
  SUBCHAPTER A.  COMPOSITION AND OPERATION
         Sec. 2022.001.  COMMISSION MEMBERSHIP.  (a)  The commission
  consists of:
               (1)  seven members appointed by the governor with the
  advice and consent of the senate; and
               (2)  two ex officio members who have the right to vote.
         (b)  The ex officio members are:
               (1)  the chair of the Public Safety Commission, or a
  member of the Public Safety Commission designated by the chair; and
               (2)  the comptroller or the comptroller's designee.
         (c)  Of the appointed commission members:
               (1)  five members must be representatives of the
  general public and have general knowledge of business or
  agribusiness;
               (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.
         (d)  At least one of the members appointed under Subsection
  (c)(1) may be a veterinarian.  Holding a veterinarian's license
  satisfies the requirement that the person have general knowledge of
  business or agribusiness.
         (e)  Appointments to the commission shall be made without
  regard to the race, color, disability, sex, religion, age, or
  national origin of the appointees.
         (f)  In making appointments to the commission, the governor
  shall attempt to reflect the minority groups found in the state's
  general populace. (V.A.C.S. Art. 179e, Secs. 2.02, 2.05(a) (part).)
         Sec. 2022.002.  TERM OF OFFICE.  (a)  Appointed commission
  members hold office for staggered terms of six years with the terms
  of two or three members expiring February 1 of each odd-numbered
  year.
         (b)  An ex officio member holds office on the commission for
  the time the member holds the member's other office. (V.A.C.S. Art.
  179e, Secs. 2.03(a) (part), (b).)
         Sec. 2022.003.  FINANCIAL STATEMENT REQUIRED.  (a)  Each
  appointed commission member and the executive director is an
  "appointed officer of a major state agency" for purposes of Chapter
  572, Government Code.
         (b)  An appointed commission member shall file a detailed
  financial statement with the secretary of state of the type
  required by the Texas Department of Banking in the application for a
  state bank charter. The financial statement is public information
  under Chapter 552, Government Code. (V.A.C.S. Art. 179e, Sec.
  2.06.)
         Sec. 2022.004.  RESTRICTIONS ON COMMISSION APPOINTMENT,
  MEMBERSHIP, AND EMPLOYMENT.  (a)  In this section, "Texas trade
  association" means a cooperative and voluntarily joined statewide
  association of business or professional competitors in this state
  designed to assist its members and its industry or profession in
  dealing with mutual business or professional problems and in
  promoting their common interest.
         (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.
         (c)  A person may not be a commission member or act as the
  general counsel to the commission if the person is required to
  register as a lobbyist under Chapter 305, Government Code, because
  of the person's activities for compensation on behalf of a
  profession related to the operation of the commission.
         (d)  An appointed member is not eligible to serve on the
  commission unless that member has been a resident of this state for
  at least 10 consecutive years immediately before appointment.
         (e)  A person is not eligible for appointment as a commission
  member 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. (V.A.C.S. Art. 179e, Secs. 2.04, 2.05(a)
  (part), (b), (d), 2.071.)
         Sec. 2022.005.  GROUNDS FOR REMOVAL. (a)  It is a ground for
  removal from the commission if a member:
               (1)  does not have at the time of appointment the
  qualifications required by Sections 2022.001, 2022.004, and
  2022.057;
               (2)  does not maintain during service on the commission
  the qualifications required by Sections 2022.001, 2022.004, and
  2022.057;
               (3)  violates a prohibition established by Section
  2022.004;
               (4)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (5)  is absent from more than half of the regularly
  scheduled commission meetings that the member is eligible to attend
  during a calendar year.
         (b)  The validity of an action of the commission is not
  affected by the fact that it is taken when a ground for removal of a
  commission member exists.
         (c)  If the executive director has knowledge that a potential
  ground for removal exists, the executive director shall notify the
  presiding officer of the commission of the potential ground. The
  presiding officer shall then notify the governor and the attorney
  general that a potential ground for removal exists. If the
  potential ground for removal involves the presiding officer, the
  executive director shall notify the next highest officer of the
  commission, who shall notify the governor and the attorney general
  that a potential ground for removal exists. (V.A.C.S. Art. 179e,
  Sec. 2.073.)
         Sec. 2022.006.  MEMBER TRAINING.  (a)  To be eligible to
  take office as a commission member, a person appointed to the
  commission must complete at least one course of a training program
  that complies with this section.
         (b)  The training program must provide information to the
  person regarding:
               (1)  the enabling legislation that created the
  commission;
               (2)  the programs operated by the commission;
               (3)  the role and functions of the commission;
               (4)  commission rules, with an emphasis on the rules
  that relate to disciplinary and investigatory authority;
               (5)  the current budget for the commission;
               (6)  the results of the most recent formal audit of the
  commission;
               (7)  the requirements of:
                     (A)  Chapter 551, Government Code;
                     (B)  Chapter 552, Government Code; and
                     (C)  Chapter 2001, Government Code;
               (8)  the requirements of the conflict of interest laws
  and other laws relating to public officials; and
               (9)  any applicable ethics policies adopted by the
  commission or the Texas Ethics Commission.
         (c)  A person appointed to the commission is entitled to
  reimbursement for travel expenses incurred in attending the
  training program, as provided by the General Appropriations Act and
  as if the person were a commission member. (V.A.C.S. Art. 179e, Sec.
  2.074.)
         Sec. 2022.007.  MEMBER PER DIEM AND REIMBURSEMENT FOR
  EXPENSES.  (a)  An appointed commission member is entitled to:
               (1)  a per diem in an amount prescribed by legislative
  appropriation for each day spent in performing the duties of the
  office; and
               (2)  reimbursement for actual and necessary expenses
  incurred in performing the duties of the office.
         (b)  Reimbursement for expenses under this section is
  subject to any applicable limitation in the General Appropriations
  Act.
         (c)  An ex officio commission member is entitled to
  reimbursement for expenses from the member's agency as provided by
  law for expenses incurred in the performance of the member's other
  official duties. (V.A.C.S. Art. 179e, Sec. 2.08.)
         Sec. 2022.008.  PRESIDING OFFICER.  The governor shall
  designate a public member of the commission as the presiding
  officer of the commission to serve in that capacity at the pleasure
  of the governor. (V.A.C.S. Art. 179e, Sec. 2.10.)
         Sec. 2022.009.  COMMISSION MEETINGS; RECORD OF COMMISSION
  VOTES.  (a)  The commission shall hold at least six regular
  meetings each year on dates fixed by the commission.
         (b)  The commission shall adopt rules providing for the
  holding of special meetings.
         (c)  The commission shall keep at the commission's general
  office a public record of every vote. (V.A.C.S. Art. 179e, Secs.
  2.11(a), (c).)
         Sec. 2022.010.  COMMISSION OFFICES.  The commission shall
  maintain a general office of the commission in Austin and may also
  establish branch offices. (V.A.C.S. Art. 179e, Sec. 2.09.)
         Sec. 2022.011.  MONEY PAID TO COMMISSION.  All money paid to
  the commission under this subtitle is subject to Subchapter F,
  Chapter 404, Government Code. (V.A.C.S. Art. 179e, Sec. 2.18.)
         Sec. 2022.012.  LEGAL REPRESENTATION.  The attorney general
  shall:
               (1)  designate at least one member of the attorney
  general's staff to counsel and advise the commission and to
  represent the commission in legal proceedings; and
               (2)  make available to the appropriate prosecuting
  attorneys any information obtained regarding violations of this
  subtitle. (V.A.C.S. Art. 179e, Sec. 2.14.)
         Sec. 2022.013.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION PROCEDURES.  (a)  The commission shall develop
  and implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of commission rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the commission's
  jurisdiction.
         (b)  The commission's procedures relating to alternative
  dispute resolution shall conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commission shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures. (V.A.C.S. Art. 179e, Sec. 2.25.)
         Sec. 2022.014.  PUBLIC PARTICIPATION. (a)  The commission
  by rule shall develop and implement policies that provide the
  public with a reasonable opportunity to appear before the
  commission and to speak on any issue under the jurisdiction of the
  commission.
         (b)  The executive director shall prepare and maintain a
  written plan that describes how a person who does not speak English
  can be provided reasonable access to the commission's programs and
  services. (V.A.C.S. Art. 179e, Secs. 2.11(d), 2.22 (part).)
  SUBCHAPTER B. COMMISSION STAFF
         Sec. 2022.051.  EXECUTIVE DIRECTOR; DUTIES.  (a)  The
  commission shall employ an executive director. The executive
  director serves at the pleasure of the commission on a full-time
  basis and may not hold other employment.
         (b)  The executive director shall:
               (1)  keep the records of the commission; and
               (2)  perform other duties required by the commission.
         (c)  The executive director or the executive director's
  designee shall provide to commission members and employees, as
  often as necessary, information regarding their qualification for
  office or employment under this subtitle and their responsibilities
  under applicable laws relating to standards of conduct for state
  officers or employees. (V.A.C.S. Art. 179e, Secs. 2.12(a) (part),
  2.13, 2.20.)
         Sec. 2022.052.  EMPLOYEES; RESTRICTIONS ON EMPLOYMENT.
  (a)  The commission shall hire employees as necessary to administer
  this subtitle.
         (b)  The commission shall employ the executive director and
  other employees to reflect the diversity of the state's population
  with regard to race, color, disability, sex, religion, age, and
  national origin.
         (c)  The commission may not employ or continue to employ a
  person who:
               (1)  owns or controls a financial interest in a
  commission license holder;
               (2)  is employed by or serves as a paid consultant to a
  commission license holder, an official state breed registry, or a
  Texas trade association, as defined by Section 2022.004(a), in the
  field of horse or greyhound racing or breeding;
               (3)  owns or leases a race animal that participates in
  pari-mutuel racing in this state;
               (4)  accepts or is entitled to any part of the purse or
  Texas-bred incentive award to be paid on a horse or a greyhound in a
  race conducted in this state; or
               (5)  resides with or is related within the first degree
  by affinity or consanguinity to a person subject to a
  disqualification prescribed by this subsection. (V.A.C.S. Art.
  179e, Secs. 2.12(a) (part), (b), (c), (d).)
         Sec. 2022.053.  COMMISSION INVESTIGATORS. (a)  The
  commission may commission as many investigators as the commission
  determines necessary to enforce this subtitle and commission rules.
         (b)  An investigator commissioned under this section shall
  take the constitutional oath of office and file it with the
  commission.
         (c)  An investigator commissioned under this section has the
  powers of a peace officer. (V.A.C.S. Art. 179e, Sec. 11.01(a-1).)
         Sec. 2022.054.  CAREER LADDER; PERFORMANCE EVALUATIONS.
  (a)  The executive director or the executive director's designee
  shall develop an intra-agency career ladder program that addresses
  opportunities for mobility and advancement for employees within the
  commission. The program shall require intra-agency posting of all
  positions concurrently with any public posting.
         (b)  The executive director or the executive director's
  designee shall develop a system of annual performance evaluations
  based on documented employee performance. All merit pay for
  commission employees must be based on the system established under
  this subsection. (V.A.C.S. Art. 179e, Secs. 2.19(a), (b).)
         Sec. 2022.055.  EQUAL EMPLOYMENT OPPORTUNITY POLICY.
  (a)  The executive director or the executive director's designee
  shall prepare and maintain a written policy statement to assure
  implementation of a program of equal employment opportunity under
  which all personnel transactions are made without regard to race,
  color, disability, sex, religion, age, or national origin.
         (b)  The policy statement must include:
               (1)  personnel policies, including policies relating
  to recruitment, evaluation, selection, appointment, training, and
  promotion of personnel that comply with the requirements of Chapter
  21, Labor Code;
               (2)  a comprehensive analysis of the commission
  workforce that meets federal and state laws, rules, regulations,
  and instructions directly promulgated from those laws, rules, and
  regulations;
               (3)  procedures by which a determination can be made
  about the extent of underuse in the commission workforce of all
  persons for whom federal or state laws, rules, regulations, and
  instructions directly promulgated from those laws, rules, and
  regulations encourage a more equitable balance; and
               (4)  reasonable methods to appropriately address those
  areas of underuse.
         (c)  The policy statement must:
               (1)  cover an annual period and be updated annually;
               (2)  be reviewed by the Texas Workforce Commission for
  compliance with Subsection (b)(1); and
               (3)  be filed with the governor's office. (V.A.C.S.
  Art. 179e, Secs. 2.19(c), (d).)
         Sec. 2022.056.  DIVISION OF RESPONSIBILITY. The commission
  by rule shall develop and implement policies that clearly separate
  the policymaking responsibilities of the commission and the
  management responsibilities of the executive director and the
  commission staff. (V.A.C.S. Art. 179e, Sec. 2.21.)
         Sec. 2022.057.  BACKGROUND CHECKS AND QUALIFICATION
  CRITERIA.  Each person appointed to or employed by the commission is
  subject to all background checks and qualification criteria
  required to hold a racetrack license or other license under this
  subtitle. (V.A.C.S. Art. 179e, Sec. 2.05(c).)
         Sec. 2022.058.  PROHIBITION ON EMPLOYMENT OF FORMER
  COMMISSION MEMBERS OR EMPLOYEES BY RACETRACK ASSOCIATION; CRIMINAL
  PENALTY. (a)  A racetrack association may not employ a person who
  has been a commission member, the executive director, or a
  commission employee in a position in the state employment
  classification plan of grade 12 or above, or a person related within
  the second degree by affinity or the third degree by consanguinity,
  as determined under Chapter 573, Government Code, to such a member
  or employee, during the one-year period immediately preceding the
  employment by the racetrack association.
         (b)  A person may not seek or accept employment with a
  racetrack association if the racetrack association would violate
  this section by employing the person.
         (c)  A racetrack association or person who violates this
  section commits an offense. (V.A.C.S. Art. 179e, Sec. 6.16.)
  SUBCHAPTER C. RECORDS AND INFORMATION
         Sec. 2022.101.  PUBLIC INTEREST INFORMATION. (a)  The
  commission shall prepare information of public interest describing
  the functions of the commission and the procedures by which
  complaints are filed with and resolved by the commission.
         (b)  The commission shall make the information described by
  Subsection (a) available to the public and appropriate state
  agencies. (V.A.C.S. Art. 179e, Sec. 2.23(a).)
         Sec. 2022.102.  INFORMATION RELATING TO COMPLAINT
  PROCEDURES. (a)  The commission by rule shall establish methods by
  which racetrack patrons are notified of the name, mailing address,
  and telephone number of the commission for the purpose of directing
  complaints to the commission. The commission may provide the
  notification:
               (1)  on every race performance program provided by each
  racetrack association; or
               (2)  on signs prominently displayed in the common
  public areas on the premises of each racetrack.
         (b)  The commission shall keep information about each
  complaint filed with the commission. The information must include:
               (1)  the date the complaint is received;
               (2)  the name of the complainant;
               (3)  the subject matter of the complaint;
               (4)  a record of all persons contacted in relation to
  the complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  for complaints for which the commission took no
  action, an explanation of the reason the complaint was closed
  without action.
         (c)  The commission shall keep a file about each written
  complaint filed with the commission that the commission has
  authority to resolve. The commission shall provide to the person
  filing the complaint and to the persons who are subjects of the
  complaint the commission's policies and procedures pertaining to
  complaint investigation and resolution.
         (d)  The commission, at least quarterly and until final
  disposition of a complaint, shall notify the person filing the
  complaint and the persons who are subjects of the complaint of the
  status of the complaint unless the notice would jeopardize an
  undercover investigation. (V.A.C.S. Art. 179e, Secs. 2.23(b),
  2.24.)
         Sec. 2022.103.  COMMISSION INVESTIGATIVE FILES
  CONFIDENTIAL. (a)  The contents of the investigatory files of the
  commission are not public records and are confidential except:
               (1)  in a criminal proceeding;
               (2)  in a hearing conducted by the commission;
               (3)  on court order; or
               (4)  with the consent of the party being investigated.
         (b)  Except as otherwise provided by this subtitle, the
  files, records, information, compilations, documents, photographs,
  reports, summaries, and reviews of information and related matters
  that are collected, retained, or compiled by the Department of
  Public Safety in the discharge of the department's duties under
  this subtitle are confidential and are not subject to public
  disclosure, but are subject to discovery by a person who is the
  subject of the files, records, information, compilations,
  documents, photographs, reports, summaries, and reviews of
  information and related matters that are collected, retained, or
  compiled by the department in the discharge of the department's
  duties under this subtitle.
         (c)  An investigation report or other document submitted by
  the Department of Public Safety to the commission becomes part of
  the investigative files of the commission and is subject to
  discovery by a person who is the subject of the investigation report
  or other document submitted by the department to the commission
  that is part of the investigative files of the commission.
         (d)  Information that is in a form available to the public is
  not privileged or confidential under this section and is subject to
  public disclosure. (V.A.C.S. Art. 179e, Secs. 2.15(b), 2.16.)
         Sec. 2022.104.  INTERAGENCY SHARING OF RECORDS. The
  commission may share with another regulatory agency of this state
  any investigatory file information that creates a reasonable
  suspicion of a person's violation of a law or rule under that
  agency's jurisdiction. The agency may use the information as if it
  was obtained through that agency's investigatory process.
  (V.A.C.S. Art. 179e, Sec. 2.15(c).)
         Sec. 2022.105.  BOOKS AND RECORDS; INSPECTION. (a)  The
  commission shall require racetrack associations, managers,
  totalisator license holders, and concessionaires to keep books and
  records and to submit financial statements to the commission.
         (b)  Except as provided by Section 2024.002(b), the
  commission shall adopt rules relating to the matters described by
  Subsection (a). (V.A.C.S. Art. 179e, Sec. 3.04.)
         Sec. 2022.106.  PUBLIC INSPECTION OF RECORDS. (a)  All
  commission records that are not made confidential by other law are
  open to inspection by the public during regular office hours.
         (b)  The commission shall maintain all applications for a
  license under this subtitle and make the applications available for
  public inspection during regular office hours. (V.A.C.S. Art. 179e, Sec. 2.15(a).)
 
  CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS AND
  DUTIES
  SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO
  HORSE RACING AND GREYHOUND RACING
  Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION
                   OF HORSE RACING AND GREYHOUND RACING 
  Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING
                   AT RACE MEETINGS 
  Sec. 2023.003.  OTHER LICENSING AND REGULATION:  RULES
                   AND FEES 
  Sec. 2023.004.  COMMISSION RULES 
  Sec. 2023.005.  LIMITATION ON RULES RESTRICTING
                   COMPETITIVE BIDDING OR ADVERTISING 
  Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF
                   RACETRACK ASSOCIATION 
  Sec. 2023.007.  RIGHT OF ENTRY 
  Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER 
  Sec. 2023.009.  JUDICIAL REVIEW OF COMMISSION ORDER 
  SUBCHAPTER B. GENERAL POWERS AND DUTIES
  Sec. 2023.051.  RECOGNITION OF ORGANIZATION 
  Sec. 2023.052.  SECURITY FOR FEES AND CHARGES 
  Sec. 2023.053.  TEXAS RACING COMMISSION FUND;
                   ADDITIONAL APPROPRIATIONS 
  Sec. 2023.054.  COMMISSION STANDARDS ON GREYHOUND FARMS
                   AND FACILITIES 
  Sec. 2023.055.  REPORT OF VIOLATION 
  Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT 
  Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS 
  Sec. 2023.058.  COST OF CRIMINAL HISTORY RECORD CHECK 
  Sec. 2023.059.  DISTANCE LEARNING 
  Sec. 2023.060.  CERTIFIED DOCUMENTS 
  Sec. 2023.061.  ANNUAL REPORT 
  SUBCHAPTER C.  EMPLOYMENT OF AND SUPERVISION BY RACE MEETING
  OFFICIALS
  Sec. 2023.101.  EMPLOYMENT OF STEWARDS AND JUDGES 
  Sec. 2023.102.  STEWARD AND JUDGE EXAMINATIONS 
  Sec. 2023.103.  EMPLOYMENT OF STATE VETERINARIANS 
  Sec. 2023.104.  RACE MEETING OFFICIAL COMPENSATION AND
                   FEE 
  Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS 
  Sec. 2023.106.  RACE MEETING OFFICIAL POWERS AND
                   DUTIES; RULES 
  Sec. 2023.107.  EXECUTIVE DIRECTOR REVIEW AND
                   MODIFICATION OF PENALTY 
  Sec. 2023.108.  FINAL DECISION; AVAILABILITY OF APPEAL 
  Sec. 2023.109.  APPEAL FROM DECISION OF RACE MEETING
                   OFFICIAL; DECISIONS NOT APPEALABLE 
  CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS AND
  DUTIES
  SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO
  HORSE RACING AND GREYHOUND RACING
         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,
  horse training, greyhound breeding, and greyhound training
  industry. (V.A.C.S. Art. 179e, Secs. 3.02(g), 3.021(a).)
         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. (V.A.C.S. Art. 179e, Sec. 3.02(a)
  (part).)
         Sec. 2023.003.  OTHER LICENSING AND REGULATION:  RULES AND
  FEES. (a)  The commission may adopt rules for the licensing and
  regulation of races and workouts at tracks that do not offer
  pari-mutuel wagering and for workouts at training facilities to
  secure past performances and workouts to:
               (1)  protect the health, safety, and welfare of race
  animals and participants in racing;
               (2)  safeguard the interest of the general public; and
               (3)  promote the orderly conduct of racing in this
  state.
         (b)  The commission may charge an annual fee for licensing
  and regulating a track that does not offer pari-mutuel wagering or a
  training facility in a reasonable amount that may not exceed the
  actual cost of enforcing rules adopted for the licensing and
  regulation of races and workouts at such a facility. (V.A.C.S. Art.
  179e, Secs. 3.021(b), (c).)
         Sec. 2023.004.  COMMISSION RULES. (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.
         (b)  The commission may establish separate sections to
  review or propose commission rules.
         (c)  The commission or a commission section shall hold a
  meeting on a proposed rule before the commission publishes the
  proposed rule in the Texas Register.
         (d)  The commission shall post at each racetrack notice of a
  meeting under Subsection (c) that includes an agenda of the meeting
  and a summary of the proposed rule.
         (e)  A copy of a proposed rule published in the Texas
  Register shall be posted concurrently at each racetrack.
         (f)  The commission or a commission section may appoint a
  committee of experts, members of the public, or other interested
  parties to advise the commission or section about a proposed
  commission rule. (V.A.C.S. Art. 179e, Secs. 3.02(a) (part), (b),
  (c), (d), (e), (f).)
         Sec. 2023.005.  LIMITATION ON RULES RESTRICTING COMPETITIVE
  BIDDING OR ADVERTISING. The commission may not adopt rules
  restricting competitive bidding or advertising by a license holder
  except to prohibit false, misleading, or deceptive practices.
  Commission rules to prohibit false, misleading, or deceptive
  practices may not:
               (1)  restrict the use of any medium for advertising;
               (2)  restrict the use of a license holder's personal
  appearance or voice in an advertisement;
               (3)  relate to the size or duration of an advertisement
  by the license holder; or
               (4)  restrict the license holder's advertisement under
  a trade name. (V.A.C.S. Art. 179e, Sec. 3.021(d).)
         Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF
  RACETRACK ASSOCIATION. In considering a pleading of a racetrack
  association, the commission shall take into account the operating
  experience of the racetrack association in this state, including:
               (1)  the financial condition of the racetrack;
               (2)  the regulatory compliance and conduct; and
               (3)  any other relevant matter concerning the operation
  of a racetrack. (V.A.C.S.  Art. 179e, Sec. 18.07.)
         Sec. 2023.007.  RIGHT OF ENTRY. A commission member, an
  authorized commission agent, a commissioned officer of the
  Department of Public Safety, or a peace officer of the local
  jurisdiction in which a racetrack association maintains a place of
  business may enter any part of a racetrack or any other place of
  business of a racetrack association at any time to enforce and
  administer this subtitle. (V.A.C.S. Art. 179e, Sec. 3.03.)
         Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER. (a)  For
  purposes of this section, "agent" means an appointed agent of the
  commission.
         (b)  A commission member or an agent, while involved in
  carrying out functions under this subtitle, may:
               (1)  take testimony;
               (2)  require by subpoena the attendance of a witness;
  and
               (3)  require the production of books, records, papers,
  correspondence, and other documents that the commission considers
  advisable.
         (c)  A subpoena must be issued under the signature of the
  commission or an agent. A person designated by the commission must
  serve the subpoena.
         (d)  A commission member or an agent may administer an oath
  to a witness appearing before the commission or an agent.
         (e)  If a subpoena issued under this section is disobeyed,
  the commission or an agent may invoke the aid of a Travis County
  district court in requiring compliance with the subpoena.  A Travis
  County district court may issue an order requiring the person to
  appear and testify and to produce books, records, papers,
  correspondence, and documents. Failure to obey the court order
  shall be punished by the court as contempt. (V.A.C.S. Art. 179e,
  Sec. 3.05; New.)
         Sec. 2023.009.  JUDICIAL REVIEW OF COMMISSION ORDER.
  (a)  Judicial review of a commission order is under the substantial
  evidence rule.
         (b)  Venue for judicial review of a commission order is in a
  district court in Travis County.  (V.A.C.S. Art. 179e, Sec. 5.02.)
  SUBCHAPTER B. GENERAL POWERS AND DUTIES
         Sec. 2023.051.  RECOGNITION OF ORGANIZATION.  (a)  The
  commission by rule shall adopt criteria to recognize an
  organization to represent members of a segment of the racing
  industry, including owners, breeders, trainers, kennel operators,
  or other persons involved in the racing industry, in any
  interaction between the members of the organization and a racetrack
  association or the commission.
         (b)  The commission may recognize an organization that meets
  the criteria adopted under Subsection (a).  (V.A.C.S. Art. 179e,
  Sec. 3.13.)
         Sec. 2023.052.  SECURITY FOR FEES AND CHARGES.  The
  commission may require a racetrack association to post security in
  an amount and form determined by the commission to adequately
  ensure the payment of any fee or charge due to this state or the
  commission relating to pari-mutuel racing, including a charge for
  drug testing.  (V.A.C.S. Art. 179e, Sec. 3.17.)
         Sec. 2023.053.  TEXAS RACING COMMISSION FUND; ADDITIONAL
  APPROPRIATIONS. (a)  The commission shall deposit the money it
  collects under this subtitle in the state treasury to the credit of
  a special fund to be known as the Texas Racing Commission fund.
         (b)  The Texas Racing Commission fund may be appropriated
  only for the administration and enforcement of this subtitle.
         (c)  Any unappropriated money exceeding $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.
         (d)  The legislature may appropriate money from the general
  revenue fund for the administration and enforcement of this
  subtitle.
         (e)  Any amount of general revenue appropriated for the
  administration and enforcement of this subtitle in excess of the
  cumulative amount deposited in the Texas Racing Commission fund
  shall be reimbursed from the Texas Racing Commission fund not later
  than the first anniversary of the date the general revenue funds are
  appropriated, with 6.75 percent interest. All payments made under
  this subsection are first attributable to interest accumulated
  under this subsection. (V.A.C.S. Art. 179e, Sec. 3.09(b).)
         Sec. 2023.054.  COMMISSION STANDARDS ON GREYHOUND FARMS AND
  FACILITIES. The commission shall adopt standards relating to the
  operation of greyhound farms or other facilities where greyhounds
  are raised for pari-mutuel racing. (V.A.C.S. Art. 179e, Sec.
  10.04(b).)
         Sec. 2023.055.  REPORT OF VIOLATION.  The commission's rules
  must allow anonymous reporting of a violation of this subtitle or of
  a commission rule.  (V.A.C.S. Art. 179e, Sec. 3.12.)
         Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT.  (a)  The
  commission shall cooperate with a district attorney, a criminal
  district attorney, a county attorney, the Department of Public
  Safety, the attorney general, or a peace officer in enforcing this
  subtitle.
         (b)  The commission, under commission authority to obtain
  criminal history record information under Section 2023.057, shall
  maintain and exchange pertinent intelligence data with other states
  and agencies.  (V.A.C.S. Art. 179e, Sec. 3.11.)
         Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS.  The
  commission may obtain criminal history record information that
  relates to each applicant for employment by the commission and to
  each applicant for a license issued by the commission and that is
  maintained by the Department of Public Safety or the Federal Bureau
  of Investigation Identification Division. The commission may
  refuse to recommend an applicant who fails to provide a complete set
  of fingerprints. (V.A.C.S. Art. 179e, Sec. 5.04.)
         Sec. 2023.058.  COST OF CRIMINAL HISTORY RECORD CHECK.
  (a)  The commission shall, in determining the amount of a license
  fee, set the fee in at least an amount necessary to cover the cost of
  conducting a criminal history record check on a license applicant.
         (b)  The commission shall reimburse the Department of Public
  Safety for the cost of conducting a criminal history record check
  under this subtitle. (V.A.C.S. Art. 179e, Sec. 5.05.)
         Sec. 2023.059.  DISTANCE LEARNING.  The commission may
  provide assistance to members of the racing industry who are
  attempting to develop or implement adult, youth, or continuing
  education programs that use distance learning. (V.A.C.S. Art. 179e,
  Sec. 18.08.)
         Sec. 2023.060.  CERTIFIED DOCUMENTS.  Instead of requiring
  an affidavit or other sworn statement in an application or other
  document that must be filed with the commission, the commission may
  require a certification of the document under penalty of perjury in
  the form prescribed by the commission. (V.A.C.S. Art. 179e, Sec.
  3.06.)
         Sec. 2023.061.  ANNUAL REPORT. (a)  Not later than January
  31 of each year, the commission shall file a report with the
  governor, lieutenant governor, and speaker of the house of
  representatives.
         (b)  The report must cover the operations of the commission
  and the condition of horse breeding and racing and greyhound
  breeding and racing during the previous year.
         (c)  The commission shall obtain from the Department of
  Public Safety a comprehensive report of any organized crime
  activities in this state that the department may wish to report and
  information concerning illegal gambling that may be known to exist
  in this state. The commission shall include in the annual report
  the department's report and any recommendations the commission
  considers appropriate.  (V.A.C.S. Art. 179e, Sec. 3.10.)
  SUBCHAPTER C.  EMPLOYMENT OF AND SUPERVISION BY RACE MEETING
  OFFICIALS
         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.
  (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)
         Sec. 2023.102.  STEWARD AND JUDGE EXAMINATIONS.  (a)  The
  commission shall require each steward or judge to annually take and
  pass a written examination and a medical examination.
         (b)  The commission by rule shall prescribe the methods and
  procedures for taking the examinations and the standards for
  passing.
         (c)  Failure to pass an examination is a ground for refusal
  to issue an original or renewal license to a steward or judge or for
  suspension or revocation of the license. (V.A.C.S. Art. 179e, Sec.
  3.07(c).)
         Sec. 2023.103.  EMPLOYMENT OF STATE VETERINARIANS.  For each
  race meeting, the commission shall employ at least one state
  veterinarian. (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)
         Sec. 2023.104.  RACE MEETING OFFICIAL COMPENSATION AND FEE.  
  (a)  The commission by rule may impose a fee on a racetrack
  association to offset the costs of compensating each steward,
  judge, and state veterinarian.
         (b)  The fee amount for compensating each steward, judge, and
  state veterinarian must be reasonable according to industry
  standards for the compensation of those officials at other
  racetracks and may not exceed the actual cost to the commission for
  compensating the officials. (V.A.C.S. Art. 179e, Sec. 3.07(a)
  (part).)
         Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS.  
  The racetrack association shall appoint, with the commission's
  approval, all racetrack officials other than the officials listed
  in Section 2023.104. Compensation for officials not compensated by
  the commission is determined by the racetrack association.
  (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)
         Sec. 2023.106.  RACE MEETING OFFICIAL POWERS AND DUTIES;
  RULES.  (a)  A steward or judge may on any day exercise the
  supervisory authority granted the steward or judge under this
  subtitle or commission rule, including the performance of
  supervisory acts requiring the exercise of discretion.
         (b)  The commission shall adopt rules that specify the power
  and duties of each race meeting official, including the power of a
  steward or judge to impose penalties for unethical practices or
  violations of racing rules.
         (c)  A penalty imposed by a steward or judge may include a
  fine of not more than $25,000, a suspension not to exceed five
  years, or both a fine and suspension.
         (d)  Before imposing a penalty under this section, a steward
  or judge shall conduct a hearing that is consistent with
  constitutional due process. A hearing conducted by a steward or
  judge under this section is not subject to Chapter 2001, Government
  Code. (V.A.C.S. Art. 179e, Secs. 3.07(b) (part), (g).)
         Sec. 2023.107.  EXECUTIVE DIRECTOR REVIEW AND MODIFICATION
  OF PENALTY. (a)  A decision of a steward or judge is subject to
  review by the executive director, who may modify the penalty.
         (b)  A penalty modified by the executive director under this
  section may include a fine of not more than $100,000, a suspension
  not to exceed five years, or both a fine and a suspension. (V.A.C.S.
  Art. 179e, Sec. 3.07(b) (part).)
         Sec. 2023.108.  FINAL DECISION; AVAILABILITY OF APPEAL.
  (a)  A decision of a steward or judge that is not reviewed or
  modified by the executive director is a final decision.
         (b)  Any decision of a steward or judge may be appealed under
  Section 2023.109 regardless of whether the decision is modified by
  the executive director. (V.A.C.S. Art. 179e, Sec. 3.07(b) (part).)
         Sec. 2023.109.  APPEAL FROM DECISION OF RACE MEETING
  OFFICIAL; DECISIONS NOT APPEALABLE. (a)  Except as provided by
  Subsection (b), a final decision of the stewards or judges may be
  appealed to the commission in the manner provided for a contested
  case under Chapter 2001, Government Code.
         (b)  A decision of the stewards or judges on a
  disqualification for a foul in a race or on a finding of fact
  regarding the running of a race is final and may not be appealed. (V.A.C.S. Art. 179e, Sec. 3.08.)
 
  CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER
  SUBCHAPTER A.  GENERAL POWERS AND DUTIES
  Sec. 2024.001.  COMPTROLLER RULES 
  Sec. 2024.002.  INSPECTION OF BOOKS, RECORDS, AND
                   FINANCIAL STATEMENTS 
  Sec. 2024.003.  RIGHT OF ENTRY 
  SUBCHAPTER B.  COLLECTION AND DEPOSIT OF STATE'S SHARE OF
  PARI-MUTUEL POOL
  Sec. 2024.051.  COLLECTION AND DEPOSIT OF STATE'S SHARE 
  Sec. 2024.052.  SECURITY 
  Sec. 2024.053.  CERTIFICATION OF NONCOMPLIANCE;
                   ADMINISTRATIVE APPEAL 
  Sec. 2024.054.  PENALTIES FOR LATE PAYMENT OR REPORT 
  Sec. 2024.055.  DEPOSIT OF STATE'S SHARE 
  SUBCHAPTER C.  APPLICABILITY OF OTHER LAW
  Sec. 2024.101.  APPLICABILITY OF CERTAIN TAX CODE
                   PROVISIONS 
  CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER
  SUBCHAPTER A.  GENERAL POWERS AND DUTIES
         Sec. 2024.001.  COMPTROLLER RULES. The comptroller may
  adopt rules for the enforcement of the comptroller's powers and
  duties under this subtitle. (V.A.C.S. Art. 179e, Sec. 4.03.)
         Sec. 2024.002.  INSPECTION OF BOOKS, RECORDS, AND FINANCIAL
  STATEMENTS. (a)  The comptroller may inspect all books, records,
  and financial statements required by the commission under Section
  2022.105.
         (b)  The comptroller by rule may specify the form and manner
  in which the books, records, and financial statements are to be kept
  and reports that relate to the state's share of a pari-mutuel pool
  are to be filed. (V.A.C.S. Art. 179e, Sec. 4.01.)
         Sec. 2024.003.  RIGHT OF ENTRY. The comptroller and the
  agents authorized by the comptroller may enter at any time the
  office, racetrack, or other place of business of a racetrack
  association or totalisator license holder to:
               (1)  inspect books, records, or financial statements;
  or
               (2)  inspect and test the totalisator system to
  determine the accuracy of totalisator-generated reports and
  calculations relating to the state's share of a pari-mutuel pool.
  (V.A.C.S. Art. 179e, Sec. 4.02.)
  SUBCHAPTER B.  COLLECTION AND DEPOSIT OF STATE'S SHARE OF
  PARI-MUTUEL POOL
         Sec. 2024.051.  COLLECTION AND DEPOSIT OF STATE'S SHARE.
  (a)  The comptroller by rule may prescribe procedures for the
  collection and deposit of the state's share of each pari-mutuel
  pool.
         (b)  A racetrack association shall deposit the state's share
  of each pari-mutuel pool at the time and in the manner prescribed by
  comptroller rule. (V.A.C.S. Art. 179e, Sec. 4.04(a).)
         Sec. 2024.052.  SECURITY. (a)  The comptroller by rule may
  require each racetrack association to post security in an amount
  estimated to be sufficient to cover the amount of state money that
  the racetrack association will collect and hold between bank
  deposits to ensure payment of the state's share of a pari-mutuel
  pool.
         (b)  The following are acceptable as security for purposes of
  this section:
               (1)  cash;
               (2)  a cashier's check;
               (3)  a surety bond;
               (4)  an irrevocable bank letter of credit;
               (5)  a United States Treasury bond that is readily
  convertible to cash; or
               (6)  an irrevocable assignment of a federally insured
  account in a bank, savings and loan institution, or credit union.
  (V.A.C.S. Art. 179e, Sec. 4.04(b).)
         Sec. 2024.053.  CERTIFICATION OF NONCOMPLIANCE;
  ADMINISTRATIVE APPEAL. (a)  The comptroller shall certify to the
  commission the fact that a racetrack association or totalisator
  company:
               (1)  does not comply with a rule adopted by the
  comptroller under this chapter;
               (2)  refuses to allow access to or inspection of any of
  the racetrack association's or totalisator company's required
  books, records, or financial statements;
               (3)  refuses to allow access to or inspection of the
  totalisator system; or
               (4)  becomes delinquent for:
                     (A)  the state's share of a pari-mutuel pool; or
                     (B)  any other tax collected by the comptroller.
         (b)  With regard to the state's share of a pari-mutuel pool
  and any penalty related to the state's share, the comptroller,
  acting independently of the commission, may take any collection or
  enforcement action authorized under the Tax Code against a
  delinquent taxpayer.
         (c)  An administrative appeal related to the state's share of
  a pari-mutuel pool or late reporting or deposit of the state's share
  is to the comptroller and then to the courts, as provided by Title
  2, Tax Code. (V.A.C.S. Art. 179e, Secs. 4.05(a), (b) (part).)
         Sec. 2024.054.  PENALTIES FOR LATE PAYMENT OR REPORT.
  (a)  A racetrack association is liable for a penalty if the
  racetrack association does not pay the state's share of a
  pari-mutuel pool or file a report related to the payment of that
  share on or before the time the payment or report is due.
         (b)  The amount of the penalty under Subsection (a) is the
  greater of:
               (1)  five percent of the total amount due; or
               (2)  $1,000.
         (c)  An additional penalty in an amount equal to one percent
  of the unpaid amount of the state's share of the pari-mutuel pool
  shall be added for each business day that the required report or
  payment is late, up to a maximum penalty of 12 percent.
         (d)  A penalty under this section may be waived in a
  situation in which a penalty would be waived under Section 111.103,
  Tax Code. (V.A.C.S. Art. 179e, Sec. 4.06.)
         Sec. 2024.055.  DEPOSIT OF STATE'S SHARE. The comptroller
  shall deposit the state's share of each pari-mutuel pool from horse
  racing and greyhound racing in the general revenue fund. (V.A.C.S.
  Art. 179e, Sec. 3.09(a).)
  SUBCHAPTER C.  APPLICABILITY OF OTHER LAW
         Sec. 2024.101.  APPLICABILITY OF CERTAIN TAX CODE
  PROVISIONS. (a)  Unless inconsistent with this subtitle, Chapters
  111 through 113, Tax Code, including provisions relating to the
  assessment of penalties and interest, apply to the collection of
  the state's share of a pari-mutuel pool under this subtitle.
         (b)  The state's share of a pari-mutuel pool under this
  subtitle is treated as if it were a tax for purposes of this section
  in applying the provisions of the Tax Code described by Subsection
  (a).
         (c)  The comptroller may use any procedure authorized under
  Title 2, Tax Code, for purposes of collecting the state's share of a
  pari-mutuel pool under this subtitle. (V.A.C.S. Art. 179e, Sec. 6.10.)
 
  CHAPTER 2025.  LICENSING
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 2025.001.  COMMISSION LICENSING DUTIES 
  Sec. 2025.002.  LICENSE AS PRIVILEGE 
  Sec. 2025.003.  FINGERPRINTS REQUIRED 
  SUBCHAPTER B.  RACETRACK LICENSE APPLICATION REQUIREMENTS
  Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL
                   PENALTY 
  Sec. 2025.052.  APPLICATION 
  Sec. 2025.053.  APPLICATION FEE 
  Sec. 2025.054.  MANAGEMENT, CONCESSION, AND TOTALISATOR
                   CONTRACTS 
  Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION
                   DOCUMENTS 
  Sec. 2025.056.  BACKGROUND CHECK 
  Sec. 2025.057.  BOND 
  Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION 
  SUBCHAPTER C.  RACETRACK LICENSE ISSUANCE AND RENEWAL
  Sec. 2025.101.  LICENSE ELIGIBILITY REQUIREMENTS AND
                   LIMITATIONS 
  Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF
                   RACETRACK LICENSE 
  Sec. 2025.103.  ISSUANCE OF TEMPORARY LICENSE 
  Sec. 2025.104.  DESIGNATION OF RACETRACK LICENSE AS
                   ACTIVE OR INACTIVE 
  Sec. 2025.105.  RENEWAL OF INACTIVE RACETRACK LICENSE;
                   FEES 
  Sec. 2025.106.  COMMISSION REVIEW OF ACTIVE RACETRACK
                   LICENSE; FEE 
  Sec. 2025.107.  RACETRACK LICENSE NOT TRANSFERABLE;
                   TEMPORARY LICENSE 
  Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE 
  SUBCHAPTER D.  GREYHOUND RACETRACK LICENSES
  Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND
                   RACETRACK LICENSES 
  Sec. 2025.152.  LOCATION RESTRICTION FOR GREYHOUND
                   RACETRACK 
  SUBCHAPTER E. DISCIPLINARY ACTION FOR RACETRACK LICENSE HOLDERS
  Sec. 2025.201.  GROUNDS FOR DENIAL, REVOCATION, OR
                   SUSPENSION OF RACETRACK LICENSE 
  Sec. 2025.202.  DISCIPLINARY ACTION; ADMINISTRATIVE
                   PENALTY 
  Sec. 2025.203.  SUMMARY SUSPENSION 
  Sec. 2025.204.  SUMMARY SUSPENSION HEARING 
  Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER 
  SUBCHAPTER F.  OCCUPATIONAL LICENSES
  Sec. 2025.251.  OCCUPATIONAL LICENSE REQUIRED 
  Sec. 2025.252.  LICENSE CATEGORIES 
  Sec. 2025.253.  EXAMINATION NOTIFICATION 
  Sec. 2025.254.  ISSUANCE OF LICENSE 
  Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD 
  Sec. 2025.256.  LICENSE FEES 
  Sec. 2025.257.  TERM OF LICENSE; RENEWAL 
  Sec. 2025.258.  CRIMINAL HISTORY RECORD INFORMATION 
  Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE 
  Sec. 2025.260.  TEMPORARY LICENSES 
  Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE
                   APPLICANTS 
  Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND
                   SUSPENSION OF OCCUPATIONAL LICENSE 
  CHAPTER 2025.  LICENSING
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 2025.001.  COMMISSION LICENSING DUTIES. (a)  To
  preserve and protect the public health, welfare, and safety, the
  commission shall adopt rules relating to license applications and
  the financial responsibility, moral character, and ability of
  applicants.
         (b)  The commission shall prescribe application forms for
  licenses issued under this subtitle and shall provide each
  occupational license holder with a credential.
         (c)  The commission shall annually prescribe reasonable
  license fees for each category of license issued under this
  subtitle.
         (d)  The commission by rule shall set fees in amounts
  reasonable and necessary to cover the commission's costs of
  regulating, overseeing, and licensing live and simulcast racing at
  racetracks. (V.A.C.S. Art. 179e, Secs. 5.01(a), (b), (d), 6.06(a)
  (part).)
         Sec. 2025.002.  LICENSE AS PRIVILEGE. The operation of a
  racetrack and the participation in racing are privileges, not
  rights, granted only by the commission by license and subject to
  reasonable and necessary conditions set by the commission.
  (V.A.C.S. Art. 179e, Sec. 5.01(c).)
         Sec. 2025.003.  FINGERPRINTS REQUIRED. (a)  An applicant
  for a license or license renewal under this subtitle must, except as
  otherwise provided by Section 2025.261, submit to the commission a
  complete set of fingerprints for:
               (1)  the applicant; or
               (2)  if the applicant is not an individual, each
  officer or director of, and each person who owns at least a five
  percent interest in, the applicant.
         (b)  The Department of Public Safety may request any person
  owning any interest in an applicant for a racetrack license to
  submit a complete set of fingerprints.
         (c)  A peace officer of any state, or any district office of
  the commission, shall take the fingerprints of an applicant for a
  license or license renewal on forms approved and furnished by the
  Department of Public Safety and immediately deliver the forms to
  the commission.
         (d)  If a complete set of fingerprints is required by the
  commission, the commission shall, not later than the 10th business
  day after the date the commission receives the fingerprints,
  forward the fingerprints to the Department of Public Safety or the
  Federal Bureau of Investigation. If the fingerprints are forwarded
  to the Department of Public Safety, the department shall:
               (1)  classify the fingerprints and check the
  fingerprints against the department's fingerprint files; and
               (2)  report to the commission the department's findings
  concerning the existence or lack of a criminal record of the
  applicant.
         (e)  The commission may not issue a racetrack license until
  the report under Subsection (d) is made to the commission. The
  commission may issue a temporary occupational license before the
  report is made to the commission. (V.A.C.S. Art. 179e, Sec. 5.03.)
  SUBCHAPTER B.  RACETRACK LICENSE APPLICATION REQUIREMENTS
         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. (V.A.C.S. Art. 179e, Sec. 6.01.)
         Sec. 2025.052.  APPLICATION.  (a)  The commission shall
  require each applicant for an original racetrack license to submit
  an application, on a form prescribed by the commission, containing
  the following information:
               (1)  if the applicant is an individual:
                     (A)  the individual's full name;
                     (B)  the individual's date of birth;
                     (C)  the individual's physical description;
                     (D)  the individual's current address and
  telephone number; and
                     (E)  a statement by the individual disclosing any
  arrest or conviction for a felony or for a misdemeanor, except a
  misdemeanor under Subtitle C, Title 7, Transportation Code, or a
  similar misdemeanor traffic offense;
               (2)  if the applicant is a corporation:
                     (A)  the state of incorporation;
                     (B)  the names and addresses of the corporation's
  agents for service of process in this state;
                     (C)  the name and address of each officer and
  director of the corporation;
                     (D)  the name and address of each stockholder of
  the corporation;
                     (E)  for each individual named under this
  subdivision, the information required by Subdivision (1); and
                     (F)  identification of:
                           (i)  any other beneficial owner of a share in
  the applicant that has absolute or contingent voting rights;
                           (ii)  any other person who directly or
  indirectly exercises any participation in the applicant; and
                           (iii)  any other ownership interest in the
  applicant that the applicant making its best effort is able to
  identify;
               (3)  if the applicant is an unincorporated business
  association:
                     (A)  the name and address of each member of the
  association and, for each individual named under this subdivision,
  the information required by Subdivision (1); and
                     (B)  identification of:
                           (i)  any other person who exercises voting
  rights in the applicant or directly or indirectly exercises any
  participation in the applicant; and
                           (ii)  any other ownership interest in the
  applicant that the applicant making its best effort is able to
  identify;
               (4)  the exact location at which a race meeting is to be
  conducted;
               (5)  if the racetrack is in existence, whether it is
  owned by the applicant and, if leased to the applicant:
                     (A)  the name and address of the owner; and
                     (B)  if the owner is a corporation or
  unincorporated business association, the name and address of each
  officer and director, any stockholder or member, and each agent for
  service of process in this state;
               (6)  if construction of the racetrack has not been
  initiated, whether it is to be owned by the applicant and, if it is
  to be leased to the applicant:
                     (A)  the name and address of the prospective
  owner; and
                     (B)  if the owner is a corporation or
  unincorporated business association, the information required by
  Subdivision (5)(B);
               (7)  identification of:
                     (A)  any other beneficial owner of a share that
  has absolute or contingent voting rights in the owner or
  prospective owner of the racetrack;
                     (B)  any other person that directly or indirectly
  exercises any participation in the owner or prospective owner; and
                     (C)  all other ownership interest in the owner or
  prospective owner that the applicant making its best effort is able
  to identify;
               (8)  a detailed statement of the applicant's assets and
  liabilities;
               (9)  the type of racing to be conducted and the dates
  requested;
               (10)  proof of residency as required by Section
  2025.201; and
               (11)  any other information required by the commission.
         (b)  An application must be sworn to:
               (1)  by the applicant; or
               (2)  if the applicant is a corporation or association,
  by its chief executive officer.
         (c)  If the applicant is a nonprofit corporation, only
  directors and officers of the corporation must disclose the
  information required under Subsection (a)(2). (V.A.C.S. Art. 179e,
  Secs. 6.03(a) (part), (c), (f).)
         Sec. 2025.053.  APPLICATION FEE.  (a)  The commission shall
  require each applicant for an original racetrack license to pay the
  required application fee.  The fee must accompany the application
  and be paid in the form of a cashier's check or certified check.
         (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:
                     (A)  $15,000 for a class 1 racetrack;
                     (B)  $7,500 for a class 2 racetrack;
                     (C)  $2,500 for a class 3 racetrack; and
                     (D)  $1,500 for a class 4 racetrack; and
               (2)  for a greyhound racetrack is $20,000.
         (c)  Notwithstanding this section, if a licensed racetrack
  petitions for a higher racetrack classification, the commission
  shall impose fees equal to the difference between the fees
  previously paid and the fees required for the higher
  classification. (V.A.C.S. Art. 179e, Secs. 6.03(a) (part), (d),
  (e), (i).)
         Sec. 2025.054.  MANAGEMENT, CONCESSION, AND TOTALISATOR
  CONTRACTS.  (a)  The commission shall require each applicant for an
  original racetrack license to submit with the application for
  inspection and review by the commission a copy of each management,
  concession, and totalisator contract associated with the proposed
  license at the proposed location in which the applicant has an
  interest.
         (b)  An applicant or license holder shall advise the
  commission of any change in any management, concession, or
  totalisator contract.
         (c)  The criminal history record information, fingerprint,
  and other information required of a license applicant under
  Sections 2023.057, 2025.003, and 2025.052(a)(1)-(3) are required
  of proposed totalisator firms, concessionaires, and managers and
  management firms. (V.A.C.S. Art. 179e, Sec. 6.03(a) (part).)
         Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION DOCUMENTS.
  Documents submitted to the commission under Sections
  2025.051-2025.054 by an applicant are subject to discovery in a
  suit brought under this subtitle but are not public records and are
  not subject to Chapter 552, Government Code. (V.A.C.S. Art. 179e,
  Sec. 6.03(b) (part).)
         Sec. 2025.056.  BACKGROUND CHECK.  (a)  The commission shall
  require a complete personal, financial, and business background
  check of the applicant or of any person who owns an interest in or
  exercises control over an applicant for a racetrack license,
  including the partners, stockholders, concessionaires, management
  personnel, management firms, and creditors.
         (b)  The commission shall refuse to issue or renew a license
  if, in the commission's sole discretion, the background checks
  reveal anything that may be detrimental to the public interest or
  the racing industry.
         (c)  The commission may not hold a hearing on the
  application, or any part of the application, of a racetrack license
  applicant before the 14th day after the date the completed
  background check of the applicant has been on file with the
  commission. (V.A.C.S. Art. 179e, Sec. 6.031 (part).)
         Sec. 2025.057.  BOND. (a)  The commission may, at any time,
  require a holder of or applicant for a racetrack license to post
  security in an amount reasonably necessary, as provided by
  commission rule, to adequately ensure the license holder's or
  applicant's compliance with substantive requirements of this
  subtitle and commission rules.
         (b)  The following are acceptable as security for purposes of
  this section:
               (1)  cash;
               (2)  a cashier's check;
               (3)  a surety bond;
               (4)  an irrevocable bank letter of credit;
               (5)  a United States Treasury bond that is readily
  convertible to cash; or
               (6)  an irrevocable assignment of a federally insured
  deposit in a bank, savings and loan institution, or credit union.
         (c)  The security described by Subsection (b) must be:
               (1)  conditioned on compliance with this subtitle and
  commission rules adopted under this subtitle; and
               (2)  returned after satisfying the conditions of the
  security. (V.A.C.S. Art. 179e, Sec. 6.032.)
         Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION. When
  all requirements for the applicant's licensure described in this
  chapter have been satisfied, the commission shall notify the
  applicant that the application is complete. (V.A.C.S. Art. 179e,
  Sec. 6.04(a-1).)
  SUBCHAPTER C.  RACETRACK LICENSE ISSUANCE AND RENEWAL
         Sec. 2025.101.  LICENSE ELIGIBILITY REQUIREMENTS AND
  LIMITATIONS. (a)  The burden of proof is on the applicant for an
  original racetrack license to show compliance with this subtitle
  and commission rules. An applicant who does not show the necessary
  compliance is not eligible for a license under this chapter.
         (b)  In considering an application for a horse racetrack
  license under this chapter, the commission shall give additional
  weight to evidence concerning an applicant who has experience
  operating a horse racetrack licensed under this subtitle.
         (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.
         (d)  The majority ownership of a partnership, firm, or
  association applying for or holding a license must be held by
  citizens who meet the residency qualifications enumerated in
  Section 2025.201 for individual applicants. A corporation that
  holds a license to operate a racetrack under this subtitle and that
  violates this subsection is subject to forfeiture of its charter.  
  The attorney general, on receipt of information relating to the
  violation, shall file suit in a district court of Travis County for
  cancellation of the charter and revocation of the license issued
  under this subtitle.
         (e)  Subsections (c) and (d) and Section 2025.201(a)(12) do
  not apply to an applicant for or the holder of a racetrack license
  if the applicant, the license holder, or the license holder's
  parent company is a publicly traded company.
         (f)  The commission may condition the issuance of a license
  under this chapter on the observance of commission rules. The
  commission may amend the rules at any time and may condition the
  continued holding of the license on compliance with the rules as
  amended.
         (g)  A person may not own more than a five percent interest in
  more than three racetracks licensed under this subtitle.
         (h)  Notwithstanding any other law, a person who owns an
  interest in two or more racetracks licensed under this subtitle and
  who also owns an interest in a license issued under Subtitle B,
  Title 3, Alcoholic Beverage Code, may own an interest in the
  premises of another holder of a license or permit under Title 3,
  Alcoholic Beverage Code, if the premises of that other license or
  permit holder are part of the premises of a racetrack licensed under
  this subtitle. (V.A.C.S. Art. 179e, Secs. 6.03(g), (h), 6.06(c),
  (d) (part), (e), (h), (i), (j).)
         Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF RACETRACK
  LICENSE. (a)  The commission may issue a racetrack license to a
  qualified person if the commission:
               (1)  determines that the conduct of race meetings at
  the proposed racetrack and location:
                     (A)  will be in the public interest;
                     (B)  complies with all zoning laws; and
                     (C)  complies with this subtitle and commission
  rules; and
               (2)  determines by clear and convincing evidence that
  the applicant will comply with all criminal laws of this state.
         (b)  In determining whether to grant or deny an application
  for any class of racetrack license, the commission may consider:
               (1)  the applicant's financial stability;
               (2)  the applicant's resources for supplementing the
  purses for races for various breeds;
               (3)  the location of the proposed racetrack;
               (4)  the effect of the proposed racetrack on traffic
  flow;
               (5)  facilities for patrons and occupational license
  holders;
               (6)  facilities for race animals;
               (7)  availability to the racetrack of support services
  and emergency services;
               (8)  the experience of the applicant's employees;
               (9)  the potential for conflict with other licensed
  race meetings;
               (10)  the anticipated effect of the race meeting on the
  horse or greyhound breeding industry in this state; and
               (11)  the anticipated effect of the race meeting on the
  state and local economy from tourism, increased employment, and
  other sources.
         (c)  The commission shall make a determination on a pending
  application not later than the 120th day after the date the
  commission provides the notice required under Section 2025.058.
  (V.A.C.S. Art. 179e, Secs. 6.04(a), (a-2).)
         Sec. 2025.103.  ISSUANCE OF TEMPORARY LICENSE. (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 second anniversary of the date of issuance of
  the temporary license; or
               (2)  the completion of the permanent facility.
         (b)  An applicant for a temporary license must pay the
  application fees and post the bonds required of other license
  holders before the issuance of a temporary license.
         (c)  The commission may set conditions and standards for
  issuance of a temporary license and allocation of appropriate race
  days.
         (d)  The commission may not issue a new temporary license or
  an extension of a temporary license to a person or to an individual
  belonging to a corporation or association that has been granted a
  temporary license after the temporary license has expired.
  (V.A.C.S. Art. 179e, Sec. 6.15.)
         Sec. 2025.104.  DESIGNATION OF RACETRACK LICENSE AS ACTIVE
  OR INACTIVE. (a)  The commission shall designate each racetrack
  license as an active license or an inactive license.  The commission
  may change the designation of a racetrack license as appropriate.
         (b)  The commission shall designate a racetrack license as an
  active license if the license holder:
               (1)  holds live racing events at the racetrack; or
               (2)  makes good faith efforts to conduct live racing.
         (c)  The commission by rule shall provide guidance on actions
  that constitute, for purposes of this subtitle, good faith efforts
  to conduct live racing.
         (d)  Before the first anniversary of the date a new racetrack
  license is issued, the commission shall conduct an evaluation of
  the license to determine whether the license is an active or
  inactive license.
         (e)  An active license is effective until the license is
  designated as an inactive license or is surrendered, suspended, or
  revoked under this subtitle. (V.A.C.S. Art. 179e, Sec. 6.0601.)
         Sec. 2025.105.  RENEWAL OF INACTIVE RACETRACK LICENSE; FEES.
  (a)  The commission by rule shall establish an annual renewal
  process for inactive licenses and may require the license holder to
  provide any information required for an original license
  application under this subtitle.  An inactive license holder must
  complete the annual renewal process established under this section
  until the commission:
               (1)  designates the license as an active license; or
               (2)  refuses to renew the license.
         (b)  In determining whether to renew an inactive license, the
  commission shall consider:
               (1)  the inactive license holder's:
                     (A)  financial stability;
                     (B)  ability to conduct live racing;
                     (C)  ability to construct and maintain a
  racetrack; and
                     (D)  other good faith efforts to conduct live
  racing; and
               (2)  other necessary factors considered in the issuance
  of the original license.
         (c)  The commission may refuse to renew an inactive license
  if, after notice and a hearing, the commission determines that:
               (1)  renewal of the license is not in the best interests
  of the racing industry or the public; or
               (2)  the license holder has failed to make a good faith
  effort to conduct live racing.
         (d)  The commission shall consult with members of the racing
  industry and other key stakeholders in developing the license
  renewal process under this section.
         (e)  The commission shall set and collect renewal fees in
  amounts reasonable and necessary to cover the costs of
  administering and enforcing this section.
         (f)  The commission by rule shall establish criteria to make
  the determinations under Subsection (c). (V.A.C.S. Art. 179e, Sec.
  6.0602.)
         Sec. 2025.106.  COMMISSION REVIEW OF ACTIVE RACETRACK
  LICENSE; FEE. (a)  The commission shall review the ownership and
  management of an active license issued under this chapter every
  five years beginning on the fifth anniversary of the date of
  issuance of the license.
         (b)  In performing the review, the commission may require the
  license holder to provide any information that would be required to
  be provided in connection with an original license application
  under this chapter.
         (c)  The commission shall charge fees for the review in
  amounts sufficient to implement this section. (V.A.C.S. Art. 179e,
  Sec. 6.06(k).)
         Sec. 2025.107.  RACETRACK LICENSE NOT TRANSFERABLE;
  TEMPORARY LICENSE. (a)  A racetrack license is not transferable.
         (b)  If the death of any person causes a violation of the
  licensing provisions of this subtitle, the commission may issue, in
  accordance with commission rules, a temporary license for a period
  not to exceed one year. (V.A.C.S. Art. 179e, Sec. 6.12.)
         Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE.  The
  commission may prescribe a reasonable annual fee to be paid by each
  racetrack license holder.  The fee must be in an amount sufficient
  to provide that the total amount of fees imposed under this section,
  the license fees prescribed under Section 2025.001(c), and the
  renewal fees prescribed under Section 2025.105(e) are sufficient to
  cover the costs of administering and enforcing this subtitle.
  (V.A.C.S. Art. 179e, Sec. 6.18.)
  SUBCHAPTER D.  GREYHOUND RACETRACK LICENSES
         Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND RACETRACK
  LICENSES. The commission may not issue licenses for more than three
  greyhound racetracks in this state. (V.A.C.S. Art 179e, Secs.
  6.04(c) (part), 6.14(b).)
         Sec. 2025.152.  LOCATION RESTRICTION FOR GREYHOUND
  RACETRACK. Each greyhound racetrack must be located in a county
  that:
               (1)  has a population of more than 190,000;
               (2)  borders the Gulf of Mexico; and
               (3)  includes all or part of an island that borders the
  Gulf of Mexico. (V.A.C.S. Art. 179e, Secs. 6.04(c) (part),
  6.14(c).)
  SUBCHAPTER E. DISCIPLINARY ACTION FOR RACETRACK LICENSE HOLDERS
         Sec. 2025.201.  GROUNDS FOR DENIAL, REVOCATION, OR
  SUSPENSION OF RACETRACK LICENSE. (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.
         (b)  Subsection (a) applies to a corporation, partnership,
  limited partnership, or any other organization or group whose
  application is composed of more than one person if a shareholder,
  partner, limited partner, director, or officer is disqualified
  under Subsection (a).
         (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. (V.A.C.S. Art. 179e, Secs. 6.06(a) (part), (b), (f).)
         Sec. 2025.202.  DISCIPLINARY ACTION; ADMINISTRATIVE
  PENALTY. (a)  The commission by rule shall establish procedures
  for disciplinary action against a racetrack license holder.
         (b)  Notwithstanding the requirements of Section 2033.151,
  if, after notice and hearing as provided by Section 2033.152, the
  commission finds that a racetrack license holder or a person
  employed by the racetrack has violated this subtitle or a
  commission rule, or if the commission finds during a review or
  renewal that the racetrack is ineligible for a license under this
  chapter, the commission may:
               (1)  revoke, suspend, or refuse to renew the racetrack
  license;
               (2)  impose an administrative penalty as provided under
  Section 2033.051; or
               (3)  take any other action as provided by commission
  rule.
         (c)  The commission may not revoke an active license unless
  the commission reasonably determines that other disciplinary
  actions are inadequate to remedy the violation. (V.A.C.S. Art.
  179e, Sec. 6.0603; New.)
         Sec. 2025.203.  SUMMARY SUSPENSION. (a)  The commission may
  summarily suspend a racetrack license if the commission determines
  that a racetrack at which races or pari-mutuel wagering are
  conducted under the license is being operated in a manner that
  constitutes an immediate threat to the health, safety, or welfare
  of the racing participants or the patrons.
         (b)  After issuing a summary suspension order, the executive
  director shall serve on the racetrack association an order:
               (1)  stating the specific charges; and
               (2)  requiring the license holder immediately to cease
  and desist from all conduct permitted by the license.
         (c)  The executive director shall serve the order by personal
  delivery or registered or certified mail, return receipt requested,
  to the license holder's last known address. The order must contain
  a notice that a request for hearing may be filed under this
  subchapter.
         (d)  A summary suspension order continues in effect unless
  the order is stayed by the executive director. The executive
  director may impose any condition before granting a stay of the
  order. (V.A.C.S. Art. 179e, Secs. 6.063(a), (b), (e).)
         Sec. 2025.204.  SUMMARY SUSPENSION HEARING. (a)  A
  racetrack association that is the subject of a summary suspension
  order may request a hearing. The request must be filed with the
  executive director not later than the 10th day after the date the
  order was received or delivered.  The request must:
               (1)  be in writing;
               (2)  be directed to the executive director; and
               (3)  state the grounds for the request to set aside or
  modify the order.
         (b)  Unless a license holder who is the subject of the order
  requests a hearing in writing before the 11th day after the date the
  order is received or delivered, the order is final and
  nonappealable as to that license holder.
         (c)  On receiving a request for a hearing, the executive
  director shall serve notice of the time and place of the hearing by
  personal delivery or registered or certified mail, return receipt
  requested. The hearing must be held not later than the 10th day
  after the date the executive director receives the request for a
  hearing unless the parties agree to a later hearing date.
         (d)  At the hearing, the commission has the burden of proof
  and must present evidence in support of the order. The license
  holder requesting the hearing may cross-examine witnesses and show
  cause why the order should not be affirmed.
         (e)  Section 2003.021(b), Government Code, does not apply to
  a hearing conducted under this section. (V.A.C.S. Art. 179e, Secs.
  6.063(c), (d).)
         Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER. After the
  hearing on the suspension of a racetrack license, the executive
  director shall affirm, modify, or set aside, wholly or partly, the
  summary suspension order. An order affirming or modifying the
  summary suspension order is final for purposes of enforcement and
  appeal. (V.A.C.S. Art. 179e, Sec. 6.063(f).)
  SUBCHAPTER F.  OCCUPATIONAL LICENSES
         Sec. 2025.251.  OCCUPATIONAL LICENSE REQUIRED. (a)  Except
  as provided by this section, a person, other than as a spectator or
  as a person placing a wager, may not participate in racing with
  pari-mutuel wagering without first obtaining a license from the
  commission.  A person may not engage in any occupation for which
  commission rules require a license under this subtitle without
  first obtaining a license from the commission.
         (b)  The commission by rule shall categorize the occupations
  of racetrack employees and determine the occupations that afford
  the employee an opportunity to influence racing with pari-mutuel
  wagering.  The rules must require an employee to be licensed under
  this subtitle if the employee:
               (1)  works in an occupation determined by the
  commission to afford the employee an opportunity to influence
  racing with pari-mutuel wagering; or
               (2)  will likely have significant access to the
  backside of a racetrack or to restricted areas of the frontside of a
  racetrack. (V.A.C.S. Art. 179e, Secs. 7.01(a), (b).)
         Sec. 2025.252.  LICENSE CATEGORIES. The commission shall
  adopt categories of licenses for the various occupations licensed
  under this subchapter and shall specify by rule the qualifications
  and experience required for licensing in each category that
  requires specific qualifications or experience. (V.A.C.S. Art.
  179e, Sec. 7.02(b).)
         Sec. 2025.253.  EXAMINATION NOTIFICATION. (a)  If an
  examination is required for the issuance of a license under this
  subchapter, the commission shall notify each examinee of the
  results of the examination not later than the 30th day after the
  date the licensing examination is administered under this subtitle.
         (b)  If requested in writing by a person who fails a
  licensing examination administered under this subtitle, the
  commission shall furnish the person with an analysis of the
  person's performance on the examination. (V.A.C.S. Art. 179e, Secs.
  7.02(c), (d).)
         Sec. 2025.254.  ISSUANCE OF LICENSE.  The commission shall
  issue a license to a qualified person on application and payment of
  the license fee. (V.A.C.S. Art. 179e, Sec. 7.03.)
         Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD.  The
  commission shall issue a license certificate under this subchapter
  in the form of an identification card with a photograph and other
  information as prescribed by the commission. (V.A.C.S. Art. 179e,
  Sec. 7.06.)
         Sec. 2025.256.  LICENSE FEES.  (a)  The commission by rule
  shall adopt a fee schedule for licenses issued under this
  subchapter.
         (b)  The commission shall base the license fee amounts on the
  relative or comparative incomes or property interests of the
  various categories of license holders, with the lower income
  categories charged nearer the minimum fee and the higher income
  categories charged nearer the maximum fee.
         (c)  In setting the fee schedule under Subsection (a), the
  commission shall include the cost of criminal history record
  information obtained under Section 2023.058. The commission may
  determine the best method for recovering this cost and complying
  with this section, including collecting the costs over an extended
  period. (V.A.C.S. Art. 179e, Sec. 7.05.)
         Sec. 2025.257.  TERM OF LICENSE; RENEWAL.  (a)  A license
  issued under this subchapter is valid for a period set by the
  commission not to exceed 36 months following the date of issuance.  
  The license is renewable on the:
               (1)  completion of an application;
               (2)  receipt of satisfactory results of a criminal
  history record information check; and
               (3)  payment of the fee in accordance with commission
  rules.
         (b)  The commission by rule may adopt a system under which
  licenses expire on various dates during the year. For the year in
  which the license expiration date is changed, license fees shall be
  prorated on a monthly basis so that each license holder pays only
  that portion of the license fee that is allocable to the number of
  months during which the license is valid. On renewal of the license
  on the new expiration date, the total license renewal fee is
  payable. (V.A.C.S. Art. 179e, Secs. 7.07(a), (b).)
         Sec. 2025.258.  CRIMINAL HISTORY RECORD INFORMATION.  
  (a)  The commission shall obtain criminal history record
  information on each applicant renewing an occupational license
  under this subchapter.
         (b)  The commission shall ensure that criminal history
  record information is obtained on each license holder at least once
  every 36 months. (V.A.C.S. Art. 179e, Sec. 7.07(a-1).)
         Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE.  A license
  issued under this subchapter is valid, as determined by the
  commission, at all race meetings conducted in this state. (V.A.C.S.
  Art. 179e, Sec. 7.08.)
         Sec. 2025.260.  TEMPORARY LICENSES.  (a)  Pending
  investigation of an applicant's qualifications to receive an
  original or renewal license, the commission may issue a temporary
  license to an applicant under this subchapter whose application
  appears to comply with the requirements of law and who has paid the
  necessary fee.
         (b)  The temporary license is valid for a period not to
  exceed 120 days following the date of issuance. (V.A.C.S. Art.
  179e, Sec. 7.09.)
         Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE
  APPLICANTS. (a)  The commission may waive any prerequisite to
  obtaining a license for an applicant, including any requirement to
  submit a set of fingerprints, after reviewing the applicant's
  credentials and determining that the applicant holds a license from
  another state that has license requirements substantially
  equivalent to the requirements of this state.
         (b)  The commission may waive any prerequisite to obtaining a
  license, including any requirement to submit a set of fingerprints,
  for an applicant who holds a license from another state with which
  this state has a reciprocity agreement. The commission may enter
  into agreements with other states to allow for licensing by
  reciprocity. (V.A.C.S. Art. 179e, Sec. 7.10.)
         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. (V.A.C.S. Art. 179e, Sec. 7.04.)
 
  CHAPTER 2026. RACETRACK OPERATION AND PREMISES
  SUBCHAPTER A.  REGULATION OF RACETRACK
  Sec. 2026.001.  PLANNING, CONSTRUCTION, AND OPERATION
                   RULES 
  Sec. 2026.002.  PREVENTION OF SUBTERFUGE IN RACETRACK
                   OWNERSHIP OR OPERATION 
  Sec. 2026.003.  FINANCIAL DISCLOSURE 
  Sec. 2026.004.  RACING LOCATION 
  Sec. 2026.005.  CHANGE OF RACING LOCATION 
  Sec. 2026.006.  LEASE OF RACETRACK PREMISES 
  Sec. 2026.007.  INAPPROPRIATE OR UNSAFE CONDITIONS;
                   ENFORCEMENT; RULES 
  Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,
                   AND MAINTENANCE; ENFORCEMENT 
  Sec. 2026.009.  RACETRACK SECURITY 
  Sec. 2026.010.  KENNELS 
  Sec. 2026.011.  AUTOMOBILE RACING FACILITY PROHIBITED
                   NEAR RACETRACK IN CERTAIN COUNTIES 
  Sec. 2026.012.  OTHER LAWFUL BUSINESSES AUTHORIZED 
  Sec. 2026.013.  EMPLOYEE COMPLIANCE 
  SUBCHAPTER B.  EXCLUSION OR EJECTION FROM RACETRACK
  Sec. 2026.051.  COMMISSION RULES REGARDING EXCLUSION OR
                   EJECTION 
  Sec. 2026.052.  EXCLUSION OR EJECTION FROM ENCLOSURE;
                   HEARING; APPEAL 
  Sec. 2026.053.  EXCLUSION OR EJECTION BY RACETRACK
                   ASSOCIATION 
  Sec. 2026.054.  CRIMINAL TRESPASS AT ENCLOSURE 
  SUBCHAPTER C.  CLASSIFICATION OF HORSE RACETRACKS
  Sec. 2026.101.  CLASSIFICATION 
  Sec. 2026.102.  CLASS 1 RACETRACK 
  Sec. 2026.103.  CLASS 2 RACETRACK 
  Sec. 2026.104.  CLASS 3 RACETRACK 
  Sec. 2026.105.  CLASS 4 RACETRACK 
  Sec. 2026.106.  WAIVER OR DEFERRAL OF CERTAIN STANDARDS
                   FOR CLASS 4 RACETRACK 
  Sec. 2026.107.  CALCULATION OF LIVE AND SIMULCAST RACE
                   DATES 
  SUBCHAPTER D.  CONCESSION, MANAGEMENT, OR TOTALISATOR CONTRACTS;
  SECURITY PLANS
  Sec. 2026.151.  COMMISSION APPROVAL REQUIRED 
  Sec. 2026.152.  COMMISSION REVIEW OF SECURITY PLANS AND
                   CERTAIN CONTRACTS 
  Sec. 2026.153.  MANAGEMENT CONTRACT:  REQUIREMENTS AND
                   LIMITATIONS 
  CHAPTER 2026. RACETRACK OPERATION AND PREMISES
  SUBCHAPTER A.  REGULATION OF RACETRACK
         Sec. 2026.001.  PLANNING, CONSTRUCTION, AND OPERATION
  RULES. To preserve and protect the public health, welfare, and
  safety, the commission shall adopt rules relating to all matters
  concerning the planning, construction, and operation of
  racetracks. (V.A.C.S. Art. 179e, Sec. 6.06(a) (part).)
         Sec. 2026.002.  PREVENTION OF SUBTERFUGE IN RACETRACK
  OWNERSHIP OR OPERATION. This subtitle shall be liberally construed
  to prevent subterfuge in the ownership and operation of a
  racetrack. (V.A.C.S. Art. 179e, Sec. 6.06(d) (part).)
         Sec. 2026.003.  FINANCIAL DISCLOSURE. (a)  The commission
  by rule shall require that each racetrack association that holds a
  license for a class 1 racetrack, class 2 racetrack, or greyhound
  racetrack annually file with the 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.
         (b)  Each transaction that involves an acquisition or a
  transfer of a pecuniary interest in the racetrack association must
  receive prior approval from the commission.  A transaction that
  changes the ownership of the racetrack association requires
  submission of updated information of the type required to be
  disclosed under Section 2025.052 and payment of a fee to recover the
  costs of the criminal background check. (V.A.C.S. Art. 179e, Sec.
  6.13.)
         Sec. 2026.004.  RACING LOCATION. (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.
         (b)  If the racetrack or enclosure designated in the license
  becomes unsuitable for racing because of fire, flood, or other
  catastrophe, the affected racetrack association, with the prior
  approval of the commission, may conduct a race meeting or any
  remaining portion of a meeting temporarily at any other racetrack
  if the other racetrack license holder:
               (1)  is licensed by the commission to conduct the same
  type of racing as may be conducted by the affected racetrack
  association; and
               (2)  consents to the usage. (V.A.C.S. Art. 179e, Sec.
  6.14(a).)
         Sec. 2026.005.  CHANGE OF RACING LOCATION. On request of a
  racetrack association, the commission shall amend a racetrack
  license to change the location of the racetrack if the commission
  determines that:
               (1)  the conduct of race meetings at the proposed new
  location will be in the public interest;
               (2)  there was not a competing applicant for the
  original license; and
               (3)  the racetrack association's desire to change
  location is not the result of a subterfuge in the original licensing
  proceeding. (V.A.C.S. Art. 179e, Sec. 6.14(d).)
         Sec. 2026.006.  LEASE OF RACETRACK PREMISES.  (a)  The
  commission by rule may authorize a racetrack association, as
  lessee, to contract for the lease of a racetrack and the surrounding
  structures.
         (b)  The commission may not approve a lease if:
               (1)  the lease appears to be a subterfuge to evade
  compliance with Section 2025.101 or 2025.201;
               (2)  the racetrack and surrounding structures do not
  conform to the rules adopted under this subtitle; or
               (3)  the lessee, prospective lessee, or lessor is
  disqualified from holding a racetrack license.
         (c)  Each lessor and lessee under this section must comply
  with the disclosure requirements of Section 2025.052(a)(1). The
  commission may not approve a lease if the lessor and lessee do not
  provide the required information. (V.A.C.S. Art. 179e, Sec. 6.07.)
         Sec. 2026.007.  INAPPROPRIATE OR UNSAFE CONDITIONS;
  ENFORCEMENT; RULES. (a)  The executive director shall issue a
  notice of violation to a racetrack association on a determination
  that an inappropriate or unsafe condition exists at a racetrack.
         (b)  If the executive director determines that an
  inappropriate or unsafe condition exists at the racetrack, the
  executive director shall order the racetrack association to take
  action within a specified period to remedy the inappropriate or
  unsafe condition. In determining the period for compliance, the
  executive director shall consider:
               (1)  the nature and severity of the problem; and
               (2)  the threat to the health, safety, and welfare of
  race participants, patrons, and animals.
         (c)  The commission by rule shall require a report of any
  corrective action taken by a racetrack association in response to
  an order of the executive director under Subsection (b).
         (d)  If a racetrack association fails to take action as
  required under Subsection (b), the executive director shall
  initiate an enforcement action against the racetrack association.
  The executive director may rescind any live or simulcast race date
  of a racetrack association that does not take corrective action
  within the period set by the executive director.
         (e)  The commission shall adopt rules implementing this
  section, including rules:
               (1)  requiring the report and correction of:
                     (A)  an inappropriate condition on the premises of
  a racetrack, including a failure to properly maintain the premises,
  that interferes with the administration of this subtitle; and
                     (B)  a condition on the premises that makes the
  premises unsafe for a race participant, patron, or animal; and
               (2)  determining the methods and manner by which the
  executive director may determine and remedy inappropriate or unsafe
  conditions on the premises, including the methods and manner in
  which the executive director may conduct inspections of the
  premises and remedy emergency situations.
         (f)  The commission shall adopt rules relating to the
  commission's review of an action taken under this section by the
  executive director.  A review procedure adopted under this
  subsection must be consistent with Chapter 2001, Government Code.  
  (V.A.C.S. Art. 179e, Sec. 6.061.)
         Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,
  AND MAINTENANCE; ENFORCEMENT.  (a)  The commission shall adopt a
  method of supervising and approving the construction, renovation,
  or maintenance of any building or improvement on the premises of a
  racetrack.
         (b)  The commission shall adopt rules relating to:
               (1)  the approval of plans and specifications;
               (2)  the contents of plans and specifications;
               (3)  the maintenance of records to ensure compliance
  with approved plans and specifications;
               (4)  the content and filing of construction progress
  reports by the racetrack association to the 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.
         (c)  If the commission has grounds to believe that a
  racetrack association has failed to comply with the requirements of
  this section, a representative of the racetrack association shall
  appear before the commission to consider the issue of compliance
  with rules adopted under this section.
         (d)  Before a building or improvement may be used by a
  racetrack association, the commission shall determine whether:
               (1)  the construction, renovation, or maintenance of
  the building or improvement was completed in accordance with the
  approved plans and specifications; and
               (2)  other commission requirements were met.
         (e)  If the commission determines that the racetrack
  association failed to comply with a requirement of this section or a
  rule adopted under this section, the commission shall initiate an
  enforcement action against the racetrack association. In addition
  to any other authorized enforcement action, the commission may
  rescind any live or simulcast race date of any racetrack
  association that has failed to comply with the requirements of this
  section. (V.A.C.S. Art. 179e, Sec. 6.062.)
         Sec. 2026.009.  RACETRACK SECURITY.  A horse racetrack
  association shall provide adequate security at the racetrack
  association's racetrack to ensure the safety of the spectators,
  employees, and animals. (V.A.C.S. Art. 179e, Sec. 9.07.)
         Sec. 2026.010.  KENNELS.  (a)  Each greyhound racetrack
  association shall:
               (1)  contract for a maximum of 18 kennels; and
               (2)  provide free kennel rent and schooling.
         (b)  In contracting with kennel owners for a racetrack, a
  racetrack association shall ensure that at least 50 percent of the
  kennels with which the racetrack association contracts are wholly
  owned by residents of this state.
         (c)  For purposes of this section, "residents of this state"
  are individuals who have resided in Texas for the five-year period
  preceding the date the kennel contract is signed. (V.A.C.S. Art.
  179e, Secs. 10.03, 10.06.)
         Sec. 2026.011.  AUTOMOBILE RACING FACILITY PROHIBITED NEAR
  RACETRACK IN CERTAIN COUNTIES. An automobile racing facility may
  not be located within 10,000 feet of a horse or greyhound racetrack
  that is located in a county with a population of 1.8 million or
  more. (V.A.C.S. Art. 179e, Sec. 11.10.)
         Sec. 2026.012.  OTHER LAWFUL BUSINESSES AUTHORIZED.  A
  racetrack association may conduct other lawful business on the
  racetrack association's grounds. (V.A.C.S. Art. 179e, Sec. 18.03.)
         Sec. 2026.013.  EMPLOYEE COMPLIANCE. (a)  A racetrack is
  responsible for ensuring that the racetrack's employees comply with
  this subtitle and commission rules.
         (b)  The commission may impose disciplinary action against a
  racetrack for violations of this subtitle and commission rules by
  the racetrack's employees as provided by Section 2025.202.
  (V.A.C.S. Art. 179e, Sec. 7.01(c).)
  SUBCHAPTER B.  EXCLUSION OR EJECTION FROM RACETRACK
         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. (V.A.C.S.
  Art. 179e, Sec. 13.01.)
         Sec. 2026.052.  EXCLUSION OR EJECTION FROM ENCLOSURE;
  HEARING; APPEAL. (a)  A person who is excluded or ejected from an
  enclosure under a commission rule may apply to the commission for a
  hearing on the question of the applicability of the rule to that
  person.
         (b)  An application for a hearing under Subsection (a)
  constitutes a contested case under Chapter 2001, Government Code.
  If, after a hearing as provided under Subchapter C of that chapter,
  the commission determines that the exclusion or ejection was
  proper:
               (1)  the commission shall issue an order to that effect
  and enter the order in the commission's minutes; and
               (2)  the person shall continue to be excluded from each
  racetrack association's enclosure.
         (c)  A person excluded or ejected may appeal an adverse
  decision of the commission by filing a petition for judicial review
  in the manner provided by Subchapter G, Chapter 2001, Government
  Code. Venue for the review is in a district court in Travis County.
         (d)  The judgment of the court may be appealed as in other
  civil cases. The person appealing the commission's ruling under
  this subtitle shall continue to be excluded from all enclosures in
  this state during the pendency of the appeal. (V.A.C.S. Art. 179e,
  Secs. 13.02(a), (b), (c) (part), (d).)
         Sec. 2026.053.  EXCLUSION OR EJECTION BY RACETRACK
  ASSOCIATION. This subtitle does not prohibit a racetrack
  association from excluding or ejecting a person from the racetrack
  association's enclosure for any lawful reason. (V.A.C.S. Art. 179e,
  Sec. 13.04.)
         Sec. 2026.054.  CRIMINAL TRESPASS AT ENCLOSURE. A person,
  for the purposes of Section 30.05, Penal Code, is presumed to have
  received notice that entry to an enclosure was forbidden if the
  person:
               (1)  was excluded or ejected from the enclosure under
  this subchapter;
               (2)  possessed, displayed, or used in the enclosure a
  credential that the person was not authorized to use; or
               (3)  entered the enclosure using a falsified
  credential. (V.A.C.S. Art. 179e, Sec. 13.03.)
  SUBCHAPTER C.  CLASSIFICATION OF HORSE RACETRACKS
         Sec. 2026.101.  CLASSIFICATION. A horse racetrack is
  classified as:
               (1)  a class 1 racetrack;
               (2)  a class 2 racetrack;
               (3)  a class 3 racetrack; or
               (4)  a class 4 racetrack. (V.A.C.S. Art. 179e, Sec.
  6.02(a).)
         Sec. 2026.102.  CLASS 1 RACETRACK. (a)  A class 1 racetrack
  is a racetrack on which live racing is conducted for a number of
  days in a calendar year, as determined by the commission under
  Subchapter A, Chapter 2029.
         (b)  A class 1 racetrack may operate only in a county with a
  population of not less than 1.3 million, or in a county adjacent to
  such a county.
         (c)  Not more than three class 1 racetracks may be licensed
  and operated in this state. (V.A.C.S. Art. 179e, Sec. 6.02(b).)
         Sec. 2026.103.  CLASS 2 RACETRACK. (a)  A class 2 racetrack
  is a racetrack on which live racing is conducted for a number of
  days, as determined by the commission under Subchapter A, Chapter
  2029.
         (b)  A class 2 racetrack is entitled to conduct 60 days of
  live racing in a calendar year. A racetrack association may request
  additional or fewer days of live racing. If, after receipt of a
  request from a racetrack association, the commission determines
  additional or fewer days to be economically feasible and in the best
  interest of this state and the racing industry, the commission
  shall grant the request.
         (c)  The commission may permit a racetrack association that
  holds a class 2 racetrack license and that is located in a national
  historic district to conduct horse races for more than 60 days in a
  calendar year. (V.A.C.S. Art. 179e, Sec. 6.02(c).)
         Sec. 2026.104.  CLASS 3 RACETRACK.  (a)  A class 3 racetrack
  is a racetrack operated by a county or a nonprofit fair under
  Chapter 2032.
         (b)  A racetrack association that holds a class 3 racetrack
  license and that conducted horse races in 1986 may conduct live
  races for a number of days not to exceed 16 days in a calendar year
  on the dates selected by the racetrack association. (V.A.C.S. Art.
  179e, Sec. 6.02(d).)
         Sec. 2026.105.  CLASS 4 RACETRACK.  (a)  A class 4 racetrack
  is a racetrack operated by a county fair under Section 2032.002.
         (b)  A racetrack association that holds a class 4 racetrack
  license may conduct live races for a number of days not to exceed
  five days in a calendar year on dates selected by the racetrack
  association and approved by the commission. (V.A.C.S. Art. 179e,
  Sec. 6.02(g).)
         Sec. 2026.106.  WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR
  CLASS 4 RACETRACK. (a)  In considering an application for a class 4
  racetrack license, except as provided by Subsection (b), the
  commission may waive or defer compliance with the commission's
  standards regarding the physical facilities or operations of a
  horse racetrack.
         (b)  The commission may not waive or defer compliance with
  standards that relate to the testing of horses or license holders
  for the presence of a prohibited substance, including a prohibited
  drug or chemical.
         (c)  If the commission defers compliance, the commission
  shall, when granting the application, establish a schedule under
  which the license holder must comply with the standards. (V.A.C.S.
  Art. 179e, Sec. 6.04(d).)
         Sec. 2026.107.  CALCULATION OF LIVE AND SIMULCAST RACE
  DATES. (a)  For purposes of this subchapter, live race dates are
  counted separately from the dates on which the racetrack
  association presents simulcast races.
         (b)  The number of race dates allowed under this subchapter
  relates only to live race dates. A racetrack may present simulcast
  races on other dates as approved by the commission. (V.A.C.S. Art.
  179e, Secs. 6.02(e), (f).)
  SUBCHAPTER D.  CONCESSION, MANAGEMENT, OR TOTALISATOR CONTRACTS;
  SECURITY PLANS
         Sec. 2026.151.  COMMISSION APPROVAL REQUIRED. (a)  All
  concession, management, and totalisator contracts submitted by an
  applicant under Section 2025.054 must have the prior approval of
  the commission.
         (b)  The commission shall refuse to approve a concession or
  management contract if, in the sole discretion of the commission,
  the background checks conducted under Section 2025.056 reveal
  anything that might be detrimental to the public interest or the
  racing industry. (V.A.C.S. Art. 179e, Secs. 6.03(a) (part), 6.031
  (part).)
         Sec. 2026.152.  COMMISSION REVIEW OF SECURITY PLANS AND
  CERTAIN CONTRACTS. (a)  On receipt of a plan for the security of a
  racetrack, or a copy of a concession, management, or totalisator
  contract for review under Section 2026.151, the commission shall
  review the security plan or contract in an executive session.
  Documents submitted by an applicant to the commission under this
  section or Section 2025.052 or 2025.054 are subject to discovery in
  a suit brought under this subtitle but are not public records and
  are not subject to Chapter 552, Government Code.
         (b)  In reviewing and approving contracts under Subsection
  (a), the commission shall attempt to ensure the involvement of
  minority-owned businesses whenever possible. (V.A.C.S. Art. 179e,
  Sec. 6.03(b).)
         Sec. 2026.153.  MANAGEMENT CONTRACT:  REQUIREMENTS AND
  LIMITATIONS. (a)  A person awarded a management contract to
  operate a racetrack must meet all of the requirements for a license
  under Sections 2025.101 and 2025.201.
         (b)  The commission may not approve a management contract to
  operate or manage a racetrack owned by a governmental entity unless
  the racetrack license holder is an owner of the entity that proposes
  to manage the racetrack. (V.A.C.S. Art. 179e, Secs. 6.06(g), 7.02(e).)
 
  CHAPTER 2027.  WAGERING
  SUBCHAPTER A.  PARI-MUTUEL WAGERING
  Sec. 2027.001.  PARI-MUTUEL WAGERING RULES 
  Sec. 2027.002.  WAGERING RESTRICTIONS 
  Sec. 2027.003.  WAGERING COMPUTATION EQUIPMENT 
  Sec. 2027.004.  AUTOMATED TELLER MACHINES:  RULES,
                   LIMITATIONS, AND FEES 
  Sec. 2027.005.  TICKET INFORMATION RULES 
  Sec. 2027.006.  CLAIM AFTER RACE MEETING 
  SUBCHAPTER B.  SIMULCAST WAGERING
  Sec. 2027.051.  SIMULCAST WAGERING RULES 
  Sec. 2027.052.  CONSTRUCTION OF LAWS RELATED TO
                   SIMULCAST RACES 
  Sec. 2027.053.  COMMISSION APPROVAL REQUIRED FOR
                   PARI-MUTUEL POOL INCLUSION 
  Sec. 2027.054.  REQUIREMENTS AND LIMITATIONS ON
                   SIMULCAST RACES 
  Sec. 2027.055.  CONTRACT REQUIRED FOR SIMULCAST RACES 
  Sec. 2027.056.  SIMULCAST CONTRACT TERMS AND
                   ARBITRATION 
  SUBCHAPTER C.  WAGERING PROHIBITIONS
  Sec. 2027.101.  RULES PROHIBITING WAGERING BY MINOR AND
                   VIEWING BY UNACCOMPANIED CHILD 
  Sec. 2027.102.  UNLAWFUL WAGERING 
  CHAPTER 2027.  WAGERING
  SUBCHAPTER A.  PARI-MUTUEL WAGERING
         Sec. 2027.001.  PARI-MUTUEL WAGERING RULES. (a)  The
  commission shall adopt rules to regulate wagering on horse races
  and greyhound races under the system known as pari-mutuel wagering.
         (b)  Rules adopted under this subtitle must include rules to:
               (1)  regulate wagering by a person licensed under this
  subtitle;
               (2)  prohibit wagering by a commission employee;
               (3)  prohibit a racetrack association from accepting a
  wager made by telephone; and
               (4)  prohibit a racetrack association from accepting a
  wager made on credit.
         (c)  Commission rules adopted under this subtitle must be
  written and updated to ensure maximum enforceability. (V.A.C.S.
  Art. 179e, Secs. 11.01(a) (part), (b), 11.04(a) (part), (b), (c)
  (part).)
         Sec. 2027.002.  WAGERING RESTRICTIONS. (a)  Wagering may be
  conducted only by a racetrack association within the racetrack
  association's enclosure.
         (b)  A person may not accept, in person, by telephone, or
  over the Internet, a wager for a horse or greyhound race conducted
  inside or outside this state from a person in this state unless the
  wager is authorized under this subtitle.
         (c)  Only a person inside an enclosure where both live and
  simulcast race meetings are authorized may wager on the result of a
  live or simulcast race presented by a racetrack association in
  accordance with commission rules.
         (d)  Except as provided by Subsection (c), a person may not
  place, in person, by telephone, or over the Internet, a wager for a
  horse or greyhound race conducted inside or outside this state.
  (V.A.C.S. Art. 179e, Secs. 11.01(a) (part), 11.04(a) (part).)
         Sec. 2027.003.  WAGERING COMPUTATION EQUIPMENT.
  (a)  Wagering authorized under this chapter may be calculated only
  by state-of-the-art computational equipment approved by the
  commission.
         (b)  The commission may not require the use of a particular
  make of equipment. (V.A.C.S. Art. 179e, Sec. 11.02.)
         Sec. 2027.004.  AUTOMATED TELLER MACHINES:  RULES,
  LIMITATIONS, AND FEES. (a)  The commission shall:
               (1)  adopt rules providing for the use of automated
  teller machines in an enclosure; and
               (2)  limit the use of automated teller machines by
  allowing a person access only to the person's checking account at a
  bank or other financial institution.
         (b)  A racetrack association that allows an automated teller
  machine in an enclosure as provided by Subsection (a) shall collect
  a fee of $1 for each transaction authorized under that subsection
  and forward the fee to the commission.
         (c)  The commission shall:
               (1)  adopt rules providing for collection, reporting,
  and auditing of the transaction fee authorized under Subsection
  (b); and
               (2)  deposit the fee collected under Subsection (b) to
  the credit of the general revenue fund. (V.A.C.S. Art. 179e, Secs.
  11.04(c) (part), (e).)
         Sec. 2027.005.  TICKET INFORMATION RULES. The commission by
  rule shall prescribe the information to be printed on each
  pari-mutuel ticket. (V.A.C.S. Art. 179e, Sec. 11.03.)
         Sec. 2027.006.  CLAIM AFTER RACE MEETING. (a)  A person who
  claims to be entitled to any part of a distribution from a
  pari-mutuel pool may, not later than the first anniversary of the
  day the ticket was purchased, file with the appropriate racetrack
  association a claim for the money accompanied by a substantial
  portion of the pari-mutuel ticket sufficient to identify the
  racetrack association, race, horse or greyhound involved, amount
  wagered, and type of ticket.
         (b)  A person who claims to be entitled to money from a
  pari-mutuel voucher may before the first anniversary of the day the
  voucher was issued file with the appropriate racetrack association
  a claim for the money accompanied by a substantial portion of the
  pari-mutuel voucher sufficient to identify the racetrack
  association, serial number, date issued, and amount of the voucher.
         (c)  If the claimant satisfactorily establishes a right to
  distribution from a pari-mutuel pool, the racetrack association
  shall pay the amount due the claimant.
         (d)  If the racetrack association refuses to pay a claimant
  who has established satisfactorily a right to distribution from a
  pari-mutuel pool, the claimant may appeal to the commission under
  procedures prescribed by commission rule. (V.A.C.S. Art. 179e, Sec.
  11.07.)
  SUBCHAPTER B.  SIMULCAST WAGERING
         Sec. 2027.051.  SIMULCAST WAGERING RULES. The commission
  shall adopt rules to license and regulate pari-mutuel wagering on:
               (1)  races conducted in this state and simulcast to
  in-state racetrack associations or out-of-state receiving
  locations; and
               (2)  races conducted out-of-state and simulcast to
  in-state racetrack associations. (V.A.C.S. Art. 179e, Sec.
  11.011(a).)
         Sec. 2027.052.  CONSTRUCTION OF LAWS RELATED TO SIMULCAST
  RACES. (a)  This subtitle may not be construed to allow wagering in
  this state on simulcast races at any location other than a racetrack
  licensed under this subtitle that has been granted live race dates
  by the commission.
         (b)  This subtitle may not be construed to prohibit wagering
  on:
               (1)  a simulcast horse race at a greyhound racetrack in
  this state; or
               (2)  a simulcast greyhound race at a horse racetrack in
  this state. (V.A.C.S. Art. 179e, Secs. 11.011(f), (g) (part).)
         Sec. 2027.053.  COMMISSION APPROVAL REQUIRED FOR
  PARI-MUTUEL POOL INCLUSION. (a)  With commission approval:
               (1)  wagers accepted on a simulcast race by any
  out-of-state receiving location may be included in the pari-mutuel
  pool for the race at the sending in-state racetrack association;
  and
               (2)  wagers accepted by an in-state racetrack
  association on a race simulcast from out-of-state may be included
  in the pari-mutuel pools for the race at the out-of-state sending
  track.
         (b)  The commission may adopt rules necessary to facilitate
  the interstate commingling of pari-mutuel pools as provided by
  Subsection (a).
         (c)  The racetrack where the wager is made is responsible for
  reporting and remitting this state's share of the pari-mutuel pool.
  (V.A.C.S. Art. 179e, Secs. 11.011(b), (c), (d), (e).)
         Sec. 2027.054.  REQUIREMENTS AND LIMITATIONS ON SIMULCAST
  RACES.  (a)  A horse racetrack may not be required to accept a
  greyhound simulcast signal. A horse racetrack that offers wagering
  on interstate greyhound simulcast races must offer wagering on all
  Texas greyhound races made available for simulcast wagering.
         (b)  A greyhound racetrack may not be required to accept a
  horse simulcast signal.  A greyhound racetrack that offers wagering
  on interstate horse simulcast races must offer wagering on all
  Texas horse races made available for simulcast wagering.
         (c)  The commission may not approve wagering on an interstate
  simulcast race unless the receiving location consents to wagering
  on interstate simulcast races at all other receiving locations in
  this state. (V.A.C.S. Art. 179e, Secs. 11.011(g) (part), (j), (m).)
         Sec. 2027.055.  CONTRACT REQUIRED FOR SIMULCAST RACES.  
  (a)  Except as provided by this subchapter, a horse racetrack may
  offer wagering on interstate greyhound race simulcast signals only
  as provided by a contract with the nearest greyhound racetrack. If
  an agreement between the racetracks cannot be reached by October 1
  of the year preceding the calendar year in which the simulcasting is
  to occur, the horse racetrack may purchase and offer wagering on
  greyhound race simulcast signals and shall pay to the nearest
  greyhound racetrack the amounts specified under Section
  2028.202(c)(1).
         (b)  Except as provided by this subchapter, a greyhound
  racetrack may offer wagering on interstate horse race simulcast
  signals only as provided by a contract with the nearest Class 1
  horse racetrack. If an agreement between the racetracks cannot be
  reached by October 1 of the year preceding the calendar year in
  which the simulcasting is to occur, the greyhound racetrack may
  purchase and offer wagering on interstate horse race simulcast
  signals and shall pay to the nearest Class 1 horse racetrack the
  amounts specified in Section 2028.202(b)(1).
         (c)  Wagering on a simulcast greyhound race at a horse
  racetrack that conducted its inaugural meet within 12 months of
  September 1, 1997, or at an operational horse racetrack within 60
  miles of that racetrack may be conducted only in accordance with an
  agreement between the racetracks. (V.A.C.S. Art. 179e, Secs.
  11.011(h), (i), (k).)
         Sec. 2027.056.  SIMULCAST CONTRACT TERMS AND ARBITRATION.
  (a)  Notwithstanding any other provisions of law, a greyhound
  racetrack association and the state greyhound breed registry shall
  by contract agree that each simulcast contract to which the
  greyhound racetrack association is a party, including a simulcast
  contract with a horse racetrack association or with another
  greyhound racetrack association, include terms that provide
  adequately for:
               (1)  the development of greyhound racing, breeding, and
  purses; and
               (2)  any actual or potential loss of live racing handle
  based on the racetrack association's historical live racing
  schedule and handle in this state.
         (b)  If a greyhound racetrack association and the state
  greyhound breed registry fail to reach an agreement under
  Subsection (a), the racetrack association or the breed registry may
  submit the contract negotiations for binding arbitration under
  Chapter 171, Civil Practice and Remedies Code, and commission
  rules.
         (c)  The arbitration must be conducted by a board of three
  arbitrators as follows:
               (1)  one arbitrator appointed by the greyhound
  racetrack association;
               (2)  one arbitrator appointed by the state greyhound
  breed registry; and
               (3)  one arbitrator appointed by the arbitrators
  appointed under Subdivisions (1) and (2).
         (d)  A greyhound racetrack association and the state
  greyhound breed registry shall each pay its own arbitration
  expenses. The greyhound racetrack association and the state
  greyhound breed registry shall equally pay the arbitrator fees and
  costs. (V.A.C.S. Art. 179e, Sec. 11.011(l) (part).)
  SUBCHAPTER C.  WAGERING PROHIBITIONS
         Sec. 2027.101.  RULES PROHIBITING WAGERING BY MINOR AND
  VIEWING BY UNACCOMPANIED CHILD. (a)  The commission shall adopt
  rules to prohibit:
               (1)  wagering by a minor; and
               (2)  a child from entering the viewing section of a
  racetrack unless accompanied by the child's parent or guardian.
         (b)  The rules adopted under Subsection (a) may except any
  conduct described as an affirmative defense by Section 2033.017.
  (V.A.C.S. Art. 179e, Sec. 11.06.)
         Sec. 2027.102.  UNLAWFUL WAGERING. (a)  A person may not
  wager on the result of a horse or greyhound race in this state
  except as authorized by this subtitle.
         (b)  A person other than a racetrack association may not
  accept from a Texas resident while the resident is in this state a
  wager on the result of a horse or greyhound race conducted inside or outside this state. (V.A.C.S. Art. 179e, Sec. 11.05.)
 
  CHAPTER 2028. PARI-MUTUEL POOLS, PURSES, AND FEES
  SUBCHAPTER A. COMMISSION OVERSIGHT OF PARI-MUTUEL RACING FUNDS
  Sec. 2028.001.  ADOPTION OF REQUIREMENTS OR OTHER
                   PERFORMANCE MEASURES 
  Sec. 2028.002.  INDEPENDENT AUDIT REPORT; RECORDS
                   REVIEW 
  Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS 
  SUBCHAPTER B. GENERAL DEDUCTIONS FROM LIVE PARI-MUTUEL POOL
  Sec. 2028.051.  SET-ASIDE FROM LIVE PARI-MUTUEL POOL 
  SUBCHAPTER C. DISPOSITION OF HORSE PARI-MUTUEL POOLS AND OTHER
  AMOUNTS RELATED TO HORSE RACING
  Sec. 2028.101.  DEDUCTIONS FROM HORSE PARI-MUTUEL POOLS 
  Sec. 2028.102.  HORSE RACETRACK ASSOCIATION SET-ASIDES
                   FOR PURSES; PURSE ACCOUNTS 
  Sec. 2028.103.  SET-ASIDE FOR TEXAS-BRED PROGRAM 
  Sec. 2028.104.  RACETRACK ASSOCIATION COMMISSION 
  Sec. 2028.105.  ALLOCATION OF BREAKAGE 
  Sec. 2028.106.  LIMITATION ON PURSE DEDUCTION 
  Sec. 2028.107.  LIMITATION ON INCENTIVES AWARDED TO
                   CERTAIN HORSES 
  SUBCHAPTER D. DISPOSITION OF GREYHOUND PARI-MUTUEL POOLS AND OTHER
  AMOUNTS RELATED TO GREYHOUND RACING
  Sec. 2028.151.  APPLICATION OF SUBCHAPTER 
  Sec. 2028.152.  DISTRIBUTION OF PARI-MUTUEL POOL 
  Sec. 2028.153.  STATE FEE 
  Sec. 2028.154.  BREAKAGE 
  Sec. 2028.155.  ALLOCATION OF PURSE IN GREYHOUND RACES 
  SUBCHAPTER E. DISTRIBUTION OF SIMULCAST PARI-MUTUEL POOLS
  Sec. 2028.201.  RULES 
  Sec. 2028.202.  REQUIRED DISTRIBUTIONS 
  Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL COST 
  Sec. 2028.204.  ALLOCATION OF ESCROWED PURSES 
  Sec. 2028.205.  ADDITIONAL ALLOCATIONS FOR CERTAIN
                   RACETRACKS 
  Sec. 2028.206.  HOST FEE 
  SUBCHAPTER F. COUNTY AND MUNICIPAL FEES
  Sec. 2028.251.  ADMISSION FEES AUTHORIZED 
  Sec. 2028.252.  ADDITIONAL FEES FOR CERTAIN COUNTIES 
  Sec. 2028.253.  PROCEDURES FOR FEE COLLECTION 
  Sec. 2028.254.  OTHER FEES AND TAXES PROHIBITED 
  CHAPTER 2028. PARI-MUTUEL POOLS, PURSES, AND FEES
  SUBCHAPTER A. COMMISSION OVERSIGHT OF PARI-MUTUEL RACING FUNDS
         Sec. 2028.001.  ADOPTION OF REQUIREMENTS OR OTHER
  PERFORMANCE MEASURES. (a)  For any organization that receives
  funds generated by live or simulcast pari-mutuel racing, the
  commission shall adopt reporting, monitoring, and auditing
  requirements or other appropriate performance measures for:
               (1)  any funds distributed to or used by the
  organization; and
               (2)  any function or service provided by the
  expenditure of the funds described by Subdivision (1).
         (b)  The commission shall adopt the requirements or
  performance measures after consultation with the affected
  organization. In adopting the rules, the commission shall consider
  the concerns of the affected organization. (V.A.C.S. Art. 179e,
  Secs. 6.092(a), (b).)
         Sec. 2028.002.  INDEPENDENT AUDIT REPORT; RECORDS REVIEW.
  (a)  An organization that receives funds generated by live or
  simulcast pari-mutuel racing shall annually file with the
  commission a copy of an audit report prepared by an independent
  certified public accountant. The audit must include a verification
  of any performance report sent to or required by the commission.
         (b)  The commission may review any record or book of an
  organization that submits an independent audit to the commission as
  the commission determines necessary to confirm or further
  investigate the findings of an audit or report. (V.A.C.S. Art.
  179e, Secs. 6.092(c), (d).)
         Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS. The
  commission by rule may suspend or withhold funds from an
  organization:
               (1)  that the commission determines has failed to
  comply with the requirements or performance measures adopted under
  Section 2028.001; or
               (2)  for which material questions on the use of funds by
  the organization are raised following an independent audit or other
  report to the commission. (V.A.C.S. Art. 179e, Sec. 6.092(e).)
  SUBCHAPTER B. GENERAL DEDUCTIONS FROM LIVE PARI-MUTUEL POOL
         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.
  (V.A.C.S. Art. 179e, Sec. 6.093(b).)
  SUBCHAPTER C. DISPOSITION OF HORSE PARI-MUTUEL POOLS AND OTHER
  AMOUNTS RELATED TO HORSE RACING
         Sec. 2028.101.  DEDUCTIONS FROM HORSE PARI-MUTUEL POOLS.
  (a)  A horse racetrack association shall deduct an amount from each
  pari-mutuel pool to be distributed as provided by Sections
  2028.102, 2028.103, and 2028.104.
         (b)  The total maximum deduction under Subsection (a) is:
               (1)  18 percent from a regular wagering pool;
               (2)  21 percent from a multiple two wagering pool; and
               (3)  25 percent from a multiple three wagering pool.
  (V.A.C.S. Art. 179e, Sec. 6.08(a).)
         Sec. 2028.102.  HORSE RACETRACK ASSOCIATION SET-ASIDES FOR
  PURSES; PURSE ACCOUNTS. (a)  A horse racetrack association shall
  set aside for purses an amount not less than:
               (1)  for live pari-mutuel pools:
                     (A)  seven percent of a live regular wagering pool
  or live multiple two wagering pool; and
                     (B)  8.5 percent of a live multiple three wagering
  pool; and
               (2)  for simulcast pari-mutuel pools from the takeout
  of the sending track:
                     (A)  38.8 percent of the regular wagering pool;
                     (B)  33.3 percent of the multiple two wagering
  pool; and
                     (C)  34 percent of the multiple three wagering
  pool.
         (b)  If the cost of the simulcast signal exceeds five percent
  of the simulcast handle, the receiving horse racetrack association
  shall split the cost of the signal in excess of five percent evenly
  with the horsemen's organization by allocating that cost against
  the purse money derived from that simulcast signal.
         (c)  The horse racetrack association shall:
               (1)  transfer the amount set aside for purses from any
  live and simulcast pool; and
               (2)  deposit the amounts in purse accounts maintained
  by breed by the horsemen's organization in one or more federally
  insured depositories.
         (d)  Legal title to purse accounts is vested in the
  horsemen's organization. The horsemen's organization may contract
  with a horse racetrack association to manage and control the purse
  accounts and to make disbursements from the purse accounts:
               (1)  to an owner whose horse won a purse;
               (2)  to the horsemen's organization for the
  organization's expenses; or
               (3)  for other disbursements as provided by contract
  between the horsemen's organization and the horse racetrack
  association.
         (e)  A horse racetrack association may pay a portion of the
  revenue set aside under this section to an organization recognized
  under Section 2023.051, as provided by a contract approved by the
  commission. (V.A.C.S. Art. 179e, Sec. 6.08(b).)
         Sec. 2028.103.  SET-ASIDE FOR TEXAS-BRED PROGRAM. (a)  A
  horse racetrack association shall set aside for the Texas-bred
  program an amount equal to one percent of a live multiple two
  wagering pool and a live multiple three wagering pool. From the
  set-aside amounts:
               (1)  two percent shall be set aside for purposes of
  Subchapter F, Chapter 88, Education Code; and
               (2)  the remaining amount shall be allocated as
  follows:
                     (A) 10 percent may be used by the appropriate
  state horse breed registry for administration; and
                     (B)  the remainder shall be used for awards.
         (b)  The amount set aside under Subsection (a) is in addition
  to any money received from the breakage.
         (c)  The commission shall adopt rules relating to the
  accounting, auditing, and distribution of all amounts set aside for
  the Texas-bred program under this subchapter. (V.A.C.S. Art. 179e,
  Secs. 6.08(d), (f), (g).)
         Sec. 2028.104.  RACETRACK ASSOCIATION COMMISSION. After
  allocation of the amounts specified in Sections 2028.102 and
  2028.103, the horse racetrack association shall retain as the
  racetrack association's commission the remainder of the amount
  deducted under Section 2028.101 from a regular wagering pool, a
  multiple two wagering pool, or a multiple three wagering pool.
  (V.A.C.S. Art. 179e, Sec. 6.08(e).)
         Sec. 2028.105.  ALLOCATION OF BREAKAGE.  (a)  A horse
  racetrack association shall allocate two percent of the breakage
  from a pari-mutuel pool for purposes of Subchapter F, Chapter 88,
  Education Code. The remaining 98 percent of the breakage
  constitutes "total breakage" and must be allocated as provided by
  Subsections (b), (c), and (d).
         (b)  A horse racetrack association shall pay to the
  commission for use by the appropriate state horse breed registry,
  subject to commission rules, 10 percent of the total breakage from a
  live pari-mutuel pool or a simulcast pari-mutuel pool. The
  appropriate state horse breed registries are as follows:
               (1)  the Texas Thoroughbred Breeders Association for
  Thoroughbred horses;
               (2)  the Texas Quarter Horse Association for quarter
  horses;
               (3)  the Texas Appaloosa Horse Club for Appaloosa
  horses;
               (4)  the Texas Arabian Breeders Association for Arabian
  horses; and
               (5)  the Texas Paint Horse Breeders Association for
  paint horses.
         (c)  A horse racetrack association shall retain 10 percent of
  the total breakage from a live pari-mutuel pool or a simulcast
  pari-mutuel pool to be used in stakes races restricted to
  accredited Texas-bred horses.
         (d)  The appropriate state horse breed registry shall pay the
  remaining 80 percent of the total breakage 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.
         (e)  If a share of the breakage cannot be distributed to the
  person entitled to the share, the appropriate state horse breed
  registry shall retain that share.
         (f)  For purposes of this section:
               (1)  "Breeder" means a person who, according to the
  rules of the appropriate state horse breed registry, is the breeder
  of the accredited Texas-bred horse.
               (2)  "Stallion owner" means a person who is owner of
  record, at the time of conception, of the stallion that sired the
  accredited Texas-bred horse.  (V.A.C.S. Art. 179e, Secs. 6.08(h),
  (i), (j), (k) (part), (m).)
         Sec. 2028.106.  LIMITATION ON PURSE DEDUCTION. (a)  In this
  section, "horse owner" means a person who is owner of record of an
  accredited Texas-bred horse at the time of a race.
         (b)  A horse racetrack association may not deduct or withhold
  any percentage of a purse from the account into which the purse paid
  to a horse owner is deposited for membership payments, dues,
  assessments, or any other payments to an organization except an
  organization chosen by the horse owner. (V.A.C.S. Art. 179e, Secs.
  6.08(k) (part), (l).)
         Sec. 2028.107.  LIMITATION ON INCENTIVES AWARDED TO CERTAIN
  HORSES. An accredited Texas-bred Thoroughbred or Arabian horse
  described by Section 2021.003(50)(C) is eligible for one-half of
  the incentives awarded under Sections 2028.103(a) and
  2028.105(d)(2). The appropriate state horse breed registry shall
  retain the remaining portion for general distribution at the same
  meeting in accordance with Sections 2028.103(a) and 2028.105(d).
  (V.A.C.S. Art. 179e, Sec. 6.08(n).)
  SUBCHAPTER D. DISPOSITION OF GREYHOUND PARI-MUTUEL POOLS AND OTHER
  AMOUNTS RELATED TO GREYHOUND RACING
         Sec. 2028.151.  APPLICATION OF SUBCHAPTER. The deductions
  and allocations made under this subchapter apply to live
  pari-mutuel pools. (V.A.C.S. Art. 179e, Sec. 6.09(e).)
         Sec. 2028.152.  DISTRIBUTION OF PARI-MUTUEL POOL. Each
  greyhound racetrack association shall distribute all money
  deposited in any pari-mutuel pool to the winning ticket holders who
  present tickets for payment not later than the 60th day after the
  closing day of the greyhound race meeting at which the pool was
  formed less:
               (1)  an amount paid as a commission of 18 percent of the
  total deposits in pools resulting from regular win, place, and show
  wagering;
               (2)  an amount not to exceed 21 percent of the total
  deposits in pools resulting from multiple two wagering; and
               (3)  an amount not to exceed 25 percent of the total
  deposits in pools resulting from multiple three wagering. (V.A.C.S.
  Art. 179e, Sec. 6.09(a).)
         Sec. 2028.153.  STATE FEE. On each racing day, a greyhound
  racetrack association shall pay to the comptroller the fee due this
  state. (V.A.C.S. Art. 179e, Sec. 6.09(c).)
         Sec. 2028.154.  BREAKAGE. (a)  A greyhound racetrack
  association shall pay 50 percent of the breakage to the appropriate
  state greyhound breed registry. Of that breakage percentage:
               (1)  25 percent is to be used in stakes races; and
               (2)  25 percent of that total breakage from a live
  pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
  the commission for use by the state greyhound breed registry,
  subject to commission rules.
         (b)  The commission by rule shall require the state greyhound
  breed registry to award a grant, in an amount equal to two percent
  of the money paid under Subsection (a)(2), to a person for the
  rehabilitation of greyhounds or to locate homes for greyhounds.
  (V.A.C.S. Art. 179e, Secs. 6.09(d), (f).)
         Sec. 2028.155.  ALLOCATION OF PURSE IN GREYHOUND RACES.
  (a)  The purse in a greyhound race may not be less than 4.7 percent
  of the total deposited in each pari-mutuel pool.
         (b)  Of the portion of a purse allocated to a greyhound:
               (1)  35 percent shall be paid directly to the greyhound
  owner; and
               (2)  the balance shall be paid to the greyhound's
  contract kennel as provided by commission rules. (V.A.C.S. Art.
  179e, Sec. 6.11.)
  SUBCHAPTER E. DISTRIBUTION OF SIMULCAST PARI-MUTUEL POOLS
         Sec. 2028.201.  RULES. The commission shall adopt rules
  relating to this subchapter and the oversight of the amounts
  allocated under Sections 2028.202(b) and (c). (V.A.C.S. Art. 179e,
  Sec. 6.091(j).)
         Sec. 2028.202.  REQUIRED DISTRIBUTIONS. (a)  A racetrack
  association shall distribute from the total amount deducted as
  provided by Sections 2028.101 and 2028.152 from each simulcast
  pari-mutuel pool and each simulcast cross-species pari-mutuel pool
  the following shares:
               (1)  an amount equal to one percent of each simulcast
  pari-mutuel pool as the amount set aside for this state;
               (2)  an amount equal to 1.25 percent of each simulcast
  cross-species pari-mutuel pool as the amount set aside for this
  state;
               (3)  for a horse racetrack association, an amount equal
  to one percent of a multiple two wagering pool or multiple three
  wagering pool as the amount set aside for the Texas-bred program to
  be used as provided by Section 2028.103;
               (4)  for a greyhound racetrack association, an amount
  equal to one percent of a multiple two wagering pool or a multiple
  three wagering pool as the amount set aside for the Texas-bred
  program for greyhound races, to be distributed and used in
  accordance with commission rules adopted to promote greyhound
  breeding in this state; and
               (5)  the remainder as the amount set aside for purses,
  expenses, the sending track, and the receiving location under a
  contract approved by the commission between the sending track and
  the receiving location.
         (b)  From the total amount deducted under Subsection (a), a
  greyhound racetrack association that receives an interstate
  cross-species simulcast signal shall distribute the following
  amounts from each pari-mutuel pool wagered on the signal at the
  racetrack:
               (1)  a fee of 1.5 percent to be paid to the racetrack in
  this state sending the signal;
               (2)  a purse in the amount of 0.75 percent to be paid to
  the official state horse breed registry for Thoroughbred horses for
  use as purses at racetracks in this state;
               (3)  a purse in the amount of 0.75 percent to be paid to
  the official state horse breed registry for quarter horses for use
  as purses at racetracks in this state; and
               (4)  a purse of 4.5 percent to be escrowed with the
  commission for purses in the manner provided by Section 2028.204.
         (c)  From the total amount deducted under Subsection (a), a
  horse racetrack association that receives an interstate
  cross-species simulcast signal shall distribute the following
  amounts from each pool wagered on the signal at the racetrack:
               (1)  a fee of 1.5 percent to be paid to the racetrack in
  this state sending the signal; and
               (2)  a purse in the amount of 5.5 percent to be paid to
  the official state greyhound breed registry for use at racetracks
  in this state.
         (d)  The official state greyhound breed registry may use not
  more than 20 percent of the amount described by Subsection (c)(2) to
  administer that subsection.
         (e)  A racetrack association offering wagering on an
  intrastate cross-species simulcast signal shall send the purse
  amount specified under Subsection (b)(4) or (c)(2), as appropriate,
  to the racetrack conducting the live race that is being simulcast.
  (V.A.C.S. Art. 179e, Secs. 6.091(a), (c), (d), (h).)
         Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If
  a racetrack association purchases an interstate simulcast signal
  and the signal cost exceeds five percent of the pari-mutuel pool,
  the commission, from the escrowed purse account under Section
  2028.202(b)(4), shall reimburse the racetrack association an
  amount equal to one-half of the signal cost that exceeds five
  percent of the pari-mutuel pool. (V.A.C.S. Art. 179e, Sec.
  6.091(g).)
         Sec. 2028.204.  ALLOCATION OF ESCROWED PURSES. (a)  A
  greyhound racetrack association shall deposit into an escrow
  account in the commission's registry the purse set aside under
  Section 2028.202(b)(4).
         (b)  Any horse racetrack association in this state may apply
  to the commission for receipt of all or part of the escrowed purse
  account for use as purses. The commission shall determine the horse
  racetrack associations to be allocated money from the escrowed
  purse account and the percentages to be allocated, taking into
  consideration purse levels, racing opportunities, and the
  financial status of the requesting racetrack association.
  (V.A.C.S. Art. 179e, Sec. 6.091(e) (part).)
         Sec. 2028.205.  ADDITIONAL ALLOCATIONS FOR CERTAIN
  RACETRACKS. (a)  In addition to money allocated under Section
  2028.204, a horse racetrack association operating a racetrack that
  is located not more than 75 miles from a greyhound racetrack that
  offers wagering on a cross-species simulcast signal and that sends
  the cross-species simulcast signal to the greyhound racetrack may
  apply to the commission for an allocation of up to 20 percent of the
  money in the escrowed purse account that is attributable to the
  wagering on a cross-species simulcast signal at the greyhound
  racetrack.
         (b)  If the applying horse racetrack association can prove to
  the commission's satisfaction that the racetrack association's
  handle has decreased directly due to wagering on an interstate
  cross-species simulcast signal at a greyhound racetrack located not
  more than 75 miles from the applying racetrack association, the
  commission shall allocate amounts from the escrowed purse account
  as the commission considers appropriate to compensate the racetrack
  association for the decrease. The amounts allocated may not exceed
  20 percent of the money in the escrowed purse account that is
  attributable to the wagering on the interstate cross-species
  simulcast signal at the greyhound racetrack.
         (c)  Money allocated by the commission under this section may
  be used by the racetrack association for any purpose. (V.A.C.S.
  Art. 179e, Sec. 6.091(f).)
         Sec. 2028.206.  HOST FEE. A racetrack association
  conducting a live race that is being simulcast may charge the
  receiving racetrack a host fee in addition to the amounts described
  in this subchapter. (V.A.C.S. Art. 179e, Sec. 6.091(i).)
  SUBCHAPTER F. COUNTY AND MUNICIPAL FEES
         Sec. 2028.251.  ADMISSION FEES AUTHORIZED. (a)  A
  commissioners court may collect a fee not to exceed 15 cents as an
  admission fee to a racetrack located in the county.
         (b)  If the racetrack is located in a municipality, the
  governing body of the municipality may collect a fee not to exceed
  15 cents as an admission fee to the racetrack.
         (c)  If the racetrack is not located in a municipality, the
  commissioners court may collect an additional fee not to exceed 15
  cents as an admission fee to a racetrack located in the county for
  allocation among the municipalities in the county.
         (d)  If the racetrack is not located in a municipality, the
  commissioners court on request of the governing bodies of a
  majority of the municipalities in the county shall collect the
  additional fee.  Allocation of the fees must be based on the
  population of the municipalities in the county. (V.A.C.S. Art.
  179e, Sec. 6.17(a).)
         Sec. 2028.252.  ADDITIONAL FEES FOR CERTAIN COUNTIES. If
  the racetrack is a class 1 racetrack, the commissioners court of
  each county with a population of not less than 1.3 million adjacent
  to the county in which the racetrack is located may each collect
  fees equal to the fees authorized by Section 2028.251. (V.A.C.S.
  Art. 179e, Sec. 6.17(b).)
         Sec. 2028.253.  PROCEDURES FOR FEE COLLECTION. (a)  A
  commissioners court by order may establish procedures for the
  collection of the fees under Section 2028.251.
         (b)  The procedures may require a racetrack association to
  keep records and file the reports considered necessary by the
  commissioners court. (V.A.C.S. Art. 179e, Sec. 6.17(c).)
         Sec. 2028.254.  OTHER FEES AND TAXES PROHIBITED. A county or
  municipality may not assess or collect any other license fee,
  privilege tax, excise tax, or racing fee on admissions to, or wagers placed at, a racetrack. (V.A.C.S. Art. 179e, Sec. 6.17(d).)
 
  CHAPTER 2029.  ALLOCATION OF RACING DAYS
  SUBCHAPTER A.  HORSE RACING
  Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS;
                   PROHIBITED RACING DAYS 
  Sec. 2029.002.  CHARITY DAYS 
  Sec. 2029.003.  ACCESS TO RACES 
  SUBCHAPTER B.  GREYHOUND RACING
  Sec. 2029.051.  NUMBER OF GREYHOUND RACING DAYS 
  Sec. 2029.052.  CHARITY DAYS 
  Sec. 2029.053.  SUBSTITUTE RACING DAYS OR ADDITIONAL
                   RACES 
  CHAPTER 2029.  ALLOCATION OF RACING DAYS
  SUBCHAPTER A.  HORSE RACING
         Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS; PROHIBITED
  RACING DAYS. (a)  The commission shall allocate the live and
  simulcast horse racing days for the conduct of live and simulcast
  racing at each racetrack.
         (b)  In allocating race dates under this section, the
  commission shall consider live race dates separately from simulcast
  race dates.
         (c)  The commission may prohibit racing on Sunday unless the
  prohibition would conflict with another provision of this subtitle.
  (V.A.C.S. Art. 179e, Sec. 8.01 (part).)
         Sec. 2029.002.  CHARITY DAYS. (a) The commission shall
  grant to each racetrack association additional horse racing days
  during a horse race meeting to be conducted as charity days.  The
  commission shall grant to each class 1 racetrack and to each class 2
  racetrack at least two and not more than five additional days.
         (b)  Each class 1 and class 2 racetrack shall conduct charity
  race days in accordance with this section.
         (c)  The commission shall ensure that races conducted by a
  racetrack association on a charity day are comparable in all
  respects, including the generation of revenue, to races conducted
  by that racetrack association on any other horse racing day.
         (d)  The commission shall adopt rules relating to the conduct
  of charity days. (V.A.C.S. Art. 179e, Sec. 8.02.)
         Sec. 2029.003.  ACCESS TO RACES. (a)  Each racetrack shall
  provide reasonable access to races for all breeds of horses as
  determined by the racetrack association through negotiations with
  the representative state horse breed registry with the final
  approval of the commission.
         (b)  In granting approval under Subsection (a), the
  commission shall consider:
               (1)  the availability of competitive horses;
               (2)  economic feasibility; and
               (3)  public interest. (V.A.C.S. Art. 179e, Sec. 8.01
  (part).)
  SUBCHAPTER B.  GREYHOUND RACING
         Sec. 2029.051.  NUMBER OF GREYHOUND RACING DAYS. A
  greyhound racetrack association is entitled to 300 evening
  performances and 150 matinee performances in a calendar year.
  (V.A.C.S. Art. 179e, Sec. 10.01 (part).)
         Sec. 2029.052.  CHARITY DAYS. (a)  The commission shall
  grant not less than five additional greyhound racing days during a
  greyhound race meeting to be conducted as charity days.
         (b)  The commission shall ensure that races conducted by a
  racetrack association on a charity day are comparable in all
  respects, including the generation of revenue, to races conducted
  by that racetrack association on any other greyhound racing day.
         (c)  The commission shall adopt rules relating to the conduct
  of charity days. (V.A.C.S. Art. 179e, Sec. 10.01 (part).)
         Sec. 2029.053.  SUBSTITUTE RACING DAYS OR ADDITIONAL RACES.
  If, for a reason beyond a greyhound racetrack association's control
  and not caused by the racetrack association's fault or neglect, it
  is impossible for the racetrack association to conduct a race on a
  day authorized by the commission, the commission in its discretion
  and at the request of the racetrack association, as a substitute for
  the race, may:
               (1)  specify another day for the racetrack association
  to conduct racing; or
               (2)  add additional races to already programmed events. (V.A.C.S. Art. 179e, Sec. 10.02.)
 
  CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS
  SUBCHAPTER A. TEXAS-BRED HORSES; BREED REGISTRIES; RACING
  Sec. 2030.001.  QUALIFICATIONS OF ACCREDITED TEXAS-BRED
                   HORSES 
  Sec. 2030.002.  STATE HORSE BREED REGISTRIES 
  Sec. 2030.003.  TEXAS-BRED RACES 
  Sec. 2030.004.  PURSE SUPPLEMENTS FOR TEXAS-BRED RACES 
  Sec. 2030.005.  EQUITABLE NUMBER OF RACES FOR EACH
                   BREED 
  Sec. 2030.006.  EQUITABLE STABLING 
  SUBCHAPTER B. TEXAS-BRED GREYHOUNDS
  Sec. 2030.051.  QUALIFICATIONS OF TEXAS-BRED GREYHOUNDS 
  Sec. 2030.052.  STATE GREYHOUND BREED REGISTRY 
  Sec. 2030.053.  BREAKAGE DISTRIBUTIONS DUE STATE
                   GREYHOUND BREED REGISTRY 
  CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS
  SUBCHAPTER A. TEXAS-BRED HORSES; BREED REGISTRIES; RACING
         Sec. 2030.001.  QUALIFICATIONS OF ACCREDITED TEXAS-BRED
  HORSES. (a)  Subject to this subtitle or commission rule, a state
  horse breed registry shall adopt reasonable rules to establish the
  qualifications of accredited Texas-bred horses to promote,
  develop, and improve the breeding of horses in this state.
         (b)  Rules adopted under this section are subject to approval
  by the commission. (V.A.C.S. Art. 179e, Sec. 9.01.)
         Sec. 2030.002.  STATE HORSE BREED REGISTRIES. (a)  The
  officially designated state horse breed registries for accredited
  Texas-bred horses are:
               (1)  the Texas Thoroughbred Breeders Association for
  Thoroughbred horses;
               (2)  the Texas Quarter Horse Association for quarter
  horses;
               (3)  the Texas Appaloosa Horse Club for Appaloosa
  horses;
               (4)  the Texas Arabian Breeders Association for Arabian
  horses; and
               (5)  the Texas Paint Horse Breeders Association for
  paint horses.
         (b)  The appropriate state horse breed registry shall act in
  an advisory capacity to each racetrack association and to the
  commission for the purpose of administering Sections 2030.003 and
  2030.004. (V.A.C.S. Art. 179e, Secs. 9.02, 9.03(b) (part).)
         Sec. 2030.003.  TEXAS-BRED RACES. (a)  In this section,
  "Texas-bred race" means a race limited to accredited Texas-bred
  horses.
         (b)  A racetrack association shall provide for the running of
  Texas-bred races.
         (c)  Except as provided by Subsection (d), on each horse
  racing day, a racetrack association shall provide for the running
  of at least two Texas-bred races, including one race restricted to
  maidens.
         (d)  In accordance with commission rule, a racetrack
  association may defer the running of one or both of the races
  required by Subsection (c) for each horse racing day if the
  racetrack association provides that the total number of accredited
  Texas-bred races in a horse race meeting is equal to twice the total
  number of horse racing days in the horse race meeting. (V.A.C.S.
  Art. 179e, Sec. 9.03(a) (part).)
         Sec. 2030.004.  PURSE SUPPLEMENTS FOR TEXAS-BRED RACES.
  (a)  In this section, "Texas-bred race" has the meaning assigned by
  Section 2030.003.
         (b)  To encourage horse breeding in this state, an accredited
  Texas-bred horse finishing first, second, or third in a race in this
  state, except a restricted stakes race, is entitled to receive a
  purse supplement.
         (c)  Funds for the purse supplements shall be derived from
  the breakage as provided by Subchapters C and E, Chapter 2028.
         (d)  An accredited Texas-bred Thoroughbred horse that
  finishes first, second, or third in a race other than a Texas-bred
  race is entitled to receive an owner's bonus award as a purse
  supplement. Twenty-five percent of the Texas-bred program funds
  received under Subchapters C and E, Chapter 2028, excluding
  expenses for administration of the Texas-bred program, shall be
  allocated to fund the bonus awards. (V.A.C.S. Art. 179e, Secs.
  9.03(a) (part), (b) (part), (c) (part), 9.04.)
         Sec. 2030.005.  EQUITABLE NUMBER OF RACES FOR EACH BREED.
  (a)  A racetrack association that conducts a horse race meeting for
  more than one breed of horse at one racetrack shall provide that the
  number of races run by each breed on each day is equitable as
  determined by the commission under Section 2029.003.
         (b)  The commission by rule or by order may allow an
  exception to Subsection (a) if an insufficient number of horses of a
  breed are available to provide sufficient competition. (V.A.C.S.
  Art. 179e, Sec. 9.05.)
         Sec. 2030.006.  EQUITABLE STABLING. A racetrack association
  that conducts a horse race meeting for more than one breed of horse
  at one racetrack shall provide on-track stalls on an equitable
  basis as determined by the commission under Section 2029.003.
  (V.A.C.S. Art. 179e, Sec. 9.06.)
  SUBCHAPTER B. TEXAS-BRED GREYHOUNDS
         Sec. 2030.051.  QUALIFICATIONS OF TEXAS-BRED GREYHOUNDS.
  (a)  Subject to this subtitle or commission rule, the state
  greyhound breed registry shall adopt reasonable rules to establish
  the qualifications of accredited Texas-bred greyhounds to promote,
  develop, and improve the breeding of greyhounds in this state.
         (b)  Rules adopted under this section are subject to approval
  by the commission. (V.A.C.S. Art. 179e, Sec. 10.04(a).)
         Sec. 2030.052.  STATE GREYHOUND BREED REGISTRY. The
  officially designated state greyhound breed registry for
  accredited Texas-bred greyhounds is the Texas Greyhound
  Association. (V.A.C.S. Art. 179e, Sec. 10.05 (part).)
         Sec. 2030.053.  BREAKAGE DISTRIBUTIONS DUE STATE GREYHOUND
  BREED REGISTRY. (a)  The state greyhound breed registry shall
  adopt rules to provide for the use of breakage received by the
  registry under Section 2028.154(a).
         (b)  A racetrack association shall pay the appropriate state
  greyhound breed registry at least every 30 days the breakage due to the breed registry. (V.A.C.S. Art. 179e, Sec. 10.05 (part).)
 
  CHAPTER 2031. TEXAS DERBIES
  Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES 
  Sec. 2031.002.  RACE CONDITIONS, ENTRANCE
                   QUALIFICATIONS, AND PREFERENCE SYSTEM 
  Sec. 2031.003.  PRERACE EXAMINATION 
  Sec. 2031.004.  TEXAS DERBY ESCROW PURSE FUND 
  CHAPTER 2031. TEXAS DERBIES
         Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES. (a)  The
  commission shall establish as Texas Derbies the following annual
  stakes races:
               (1)  one race open to three-year-old Thoroughbreds;
               (2)  one race open only to three-year-old Texas-bred
  Thoroughbreds;
               (3)  one race open to three-year-old quarter horses;
  and
               (4)  one race open only to three-year-old Texas-bred
  quarter horses.
         (b)  Each Texas Derby must be held annually on a date and at
  the class 1 racetrack determined by the commission. The commission
  shall determine the location of each Texas Derby in consultation
  with:
               (1)  each class 1 racetrack;
               (2)  the official state horse breed registries; and
               (3)  the official horsemen's organization.
         (c)  The commission may sell the right to name a Texas Derby.
  The commission shall deposit the proceeds from the sale of the right
  to name a Texas Derby into the Texas Derby escrow purse fund
  established under Section 2031.004. (V.A.C.S. Art. 179e, Secs.
  9A.001(a), (e), (f).)
         Sec. 2031.002.  RACE CONDITIONS, ENTRANCE QUALIFICATIONS,
  AND PREFERENCE SYSTEM. (a)  For each Texas Derby, the race
  conditions, the entrance qualifications, and the preference system
  used to determine race finalists shall be developed by:
               (1)  the racetrack that is awarded the derby, for a race
  described by Section 2031.001(a)(1) or (3); or
               (2)  the respective official state horse breed
  registries and the official horsemen's organization, for a race
  described by Section 2031.001(a)(2) or (4).
         (b)  The race conditions, the entrance qualifications, and
  the preference system developed under Subsection (a) are subject to
  review and approval by the executive director. (V.A.C.S. Art. 179e,
  Secs. 9A.001(b), (c), (d).)
         Sec. 2031.003.  PRERACE EXAMINATION. (a)  For each Texas
  Derby, the commission shall appoint a state veterinarian to conduct
  a prerace examination of each horse entered in the race to determine
  whether the horse:
               (1)  is healthy; and
               (2)  meets standards set by commission rule for racing.
         (b)  The examination may:
               (1)  be conducted at any time before the race; and
               (2)  include any procedure that the state veterinarian
  considers necessary to make the determination required by
  Subsection (a). (V.A.C.S. Art. 179e, Sec. 9A.002.)
         Sec. 2031.004.  TEXAS DERBY ESCROW PURSE FUND. (a)  The
  commission shall establish a Texas Derby escrow purse fund.
         (b)  Notwithstanding Section 2023.053 or 2024.055 or any
  other law, the commission by rule shall determine a portion of the
  fees, charges, and other revenue collected under this subtitle to
  be deposited to the credit of the Texas Derby escrow purse fund in
  the amount reasonably necessary to maintain competitive purses for
  each Texas Derby.
         (c)  The commission shall by rule establish a schedule of
  entrance fees for participants in each Texas Derby. A portion of
  each entrance fee, in the amount determined by the commission under
  Subsection (b), shall be deposited in the Texas Derby escrow purse
  fund.
         (d)  The commission by rule may assess under this subtitle
  additional charges and fees, including gate fees, to supplement the
  funds otherwise deposited in the Texas Derby escrow purse fund
  under this section.
         (e)  The commission may not:
               (1)  use funds from the accredited Texas-bred program
  under Subchapter A, Chapter 2030, or the escrowed purse account
  under Section 2028.204 to fund the Texas Derby escrow purse fund; or
               (2)  order a state horse breed registry to fund a purse
  for a Texas Derby, make contributions to the Texas Derby escrow
  purse fund, or pay the expenses of a Texas Derby race.
         (f)  State revenue may not be deposited to the credit of the
  Texas Derby escrow purse fund except as provided by this section. (V.A.C.S. Art. 179e, Sec. 9A.003.)
 
  CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS
  Sec. 2032.001.  COUNTY LIVESTOCK SHOWS AND EXHIBITS;
                   COUNTY RIGHTS 
  Sec. 2032.002.  COUNTIES HOLDING CERTAIN RACETRACK
                   LICENSES 
  Sec. 2032.003.  PUBLIC FAIRS AND LIVESTOCK EXHIBITIONS 
  CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS
         Sec. 2032.001.  COUNTY LIVESTOCK SHOWS AND EXHIBITS; COUNTY
  RIGHTS. (a)  Subject to the licensing requirements and other
  provisions of this subtitle, a county may conduct an annual race
  meeting, not to exceed 16 racing days, in connection with a
  livestock show or exhibit held under Chapter 319, Local Government
  Code.
         (b)  An agent qualified to hold a license under this subtitle
  and selected by the commissioners court under Section 319.004,
  Local Government Code, may conduct the race meeting.
         (c)  This subtitle does not prohibit a county from exercising
  any right otherwise granted to any person by this subtitle.
  (V.A.C.S. Art. 179e, Sec. 12.01.)
         Sec. 2032.002.  COUNTIES HOLDING CERTAIN RACETRACK
  LICENSES. (a)  A county that holds a class 4 racetrack license may
  conduct an annual race meeting not to exceed five racing days in
  connection with a livestock show or exhibit held under Chapter 319,
  Local Government Code. A racing day of the annual race meeting must
  be conducted on a day when general fair activities are conducted.
         (b)  A county that holds a class 4 racetrack license may
  contract with an agent to conduct any portion of a race meeting.
  The agent must hold a license issued under this subtitle that is
  appropriate for the service the agent provides. (V.A.C.S.
  Art. 179e, Sec. 12.03.)
         Sec. 2032.003.  PUBLIC FAIRS AND LIVESTOCK EXHIBITIONS.
  Subject to the licensing requirements and other provisions of this
  subtitle, a nonprofit corporation may conduct a race meeting, not
  to exceed 16 racing days, for the purpose of encouraging
  agriculture through the operation of public fairs and livestock exhibitions. (V.A.C.S. Art. 179e, Sec. 12.02.)
 
  CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY
  POWERS
  SUBCHAPTER A. CRIMINAL PENALTIES AND PROCEDURES
  Sec. 2033.001.  GENERAL CRIMINAL PENALTY 
  Sec. 2033.002.  UNLAWFUL RACING 
  Sec. 2033.003.  PARI-MUTUEL WAGERING WITHOUT LICENSE 
  Sec. 2033.004.  RACING WITHOUT LICENSE 
  Sec. 2033.005.  IMPERSONATING LICENSE HOLDER 
  Sec. 2033.006.  UNLAWFUL POSSESSION OR USE OF
                   CREDENTIAL 
  Sec. 2033.007.  FAILURE TO DISPLAY CREDENTIAL 
  Sec. 2033.008.  RACES CONDUCTED ON CERTAIN INDIAN LANDS 
  Sec. 2033.009.  ILLEGAL ACCESS TO ENCLOSURE 
  Sec. 2033.010.  HINDERING ENTRY OR SEARCH 
  Sec. 2033.011.  FORGING PARI-MUTUEL TICKET 
  Sec. 2033.012.  FALSE STATEMENTS 
  Sec. 2033.013.  TOUTING 
  Sec. 2033.014.  BRIBERY AND CORRUPT INFLUENCE 
  Sec. 2033.015.  POSSESSION OR USE OF PROHIBITED DEVICE
                   OR SUBSTANCE 
  Sec. 2033.016.  CRIMINAL CONFLICT OF INTEREST 
  Sec. 2033.017.  OFFENSE INVOLVING MINOR 
  Sec. 2033.018.  SEARCH AND SEIZURE 
  Sec. 2033.019.  PROSECUTION 
  Sec. 2033.020.  VENUE FOR PROSECUTION 
  Sec. 2033.021.  COMMISSION AUTHORITY 
  SUBCHAPTER B. ADMINISTRATIVE PENALTY
  Sec. 2033.051.  IMPOSITION OF PENALTY 
  Sec. 2033.052.  AMOUNT OF PENALTY 
  Sec. 2033.053.  PRELIMINARY REPORT AND NOTICE OF
                   VIOLATION AND PENALTY 
  Sec. 2033.054.  PENALTY TO BE PAID OR HEARING REQUESTED 
  Sec. 2033.055.  HEARING 
  Sec. 2033.056.  OPTIONS FOLLOWING DECISION:  PAY OR
                   APPEAL 
  Sec. 2033.057.  COMPLAINTS 
  SUBCHAPTER C.  CEASE AND DESIST ORDERS
  Sec. 2033.101.  CEASE AND DESIST ORDER 
  Sec. 2033.102.  HEARING CONCERNING PROPOSED CEASE AND
                   DESIST ORDER; FINAL ORDER 
  Sec. 2033.103.  PETITION FOR JUDICIAL REVIEW OF CEASE
                   AND DESIST ORDER 
  Sec. 2033.104.  EMERGENCY CEASE AND DESIST ORDER 
  Sec. 2033.105.  HEARING CONCERNING EMERGENCY CEASE AND
                   DESIST ORDER; FINAL ORDER 
  Sec. 2033.106.  VIOLATION OF FINAL CEASE AND DESIST
                   ORDER 
  SUBCHAPTER D. OTHER DISCIPLINARY POWERS
  Sec. 2033.151.  DISCIPLINARY ACTIONS 
  Sec. 2033.152.  HEARING CONCERNING SUSPENSION,
                   REVOCATION, OR REFUSAL TO RENEW
                   LICENSE 
  Sec. 2033.153.  INJUNCTION 
  Sec. 2033.154.  ENFORCEMENT REGARDING HORSEMEN'S
                   ACCOUNT 
  CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY
  POWERS
  SUBCHAPTER A. CRIMINAL PENALTIES AND PROCEDURES
         Sec. 2033.001.  GENERAL CRIMINAL PENALTY. If a provision of
  this subtitle creates an offense without providing a specific
  penalty, a person who violates that provision commits a state jail
  felony. (V.A.C.S. Art. 179e, Sec. 15.01.)
         Sec. 2033.002.  UNLAWFUL RACING. A person commits an
  offense if:
               (1)  the person participates in, permits, or conducts a
  horse or greyhound race at a racetrack;
               (2)  the person wagers on the partial or final outcome
  of the horse or greyhound race or knows or reasonably should know
  that another person is betting on the partial or final outcome of
  the race; and
               (3)  the race is not part of a performance or race
  meeting conducted under this subtitle or commission rule. (V.A.C.S.
  Art. 179e, Sec. 14.14.)
         Sec. 2033.003.  PARI-MUTUEL WAGERING WITHOUT LICENSE.  
  (a)  A person commits an offense if, without a license, the person
  in any capacity participates or is otherwise involved in horse
  racing or greyhound racing with pari-mutuel wagering.
         (b)  An offense under Subsection (a) is a Class A
  misdemeanor, unless the actor was required by this subtitle to
  obtain a racetrack license, in which event the offense is a state
  jail felony.
         (c)  It is an affirmative defense to prosecution under
  Subsection (a) that the actor was a spectator or a person placing a
  wager. (V.A.C.S. Art. 179e, Sec. 14.15.)
         Sec. 2033.004.  RACING WITHOUT LICENSE. (a)  A person
  commits an offense if the person:
               (1)  conducts a horse or greyhound race without a
  racetrack license; and
               (2)  knows or reasonably should know that another
  person is betting on the final or partial outcome of the race.
         (b)  An offense under this section is a felony of the third
  degree. (V.A.C.S. Art. 179e, Sec. 14.16.)
         Sec. 2033.005.  IMPERSONATING LICENSE HOLDER. (a)  A person
  commits an offense if the person impersonates a license holder with
  the intent to induce another person to submit to the actor's
  purported authority as a license holder or to rely on the actor's
  actions as an alleged license holder.
         (b)  An offense under this section is a Class A misdemeanor.
  (V.A.C.S. Art. 179e, Sec. 14.09.)
         Sec. 2033.006.  UNLAWFUL POSSESSION OR USE OF CREDENTIAL.
  (a)  A person commits an offense if the person knowingly possesses
  or displays a credential or false credential that identifies the
  person as the holder of the credential and the person knows that:
               (1)  the credential is not issued to the person; or
               (2)  the person is not a license holder.
         (b)  An offense under this section is a Class C misdemeanor.
  (V.A.C.S. Art. 179e, Sec. 14.02.)
         Sec. 2033.007.  FAILURE TO DISPLAY CREDENTIAL. (a)  For
  purposes of this section, a request is lawful if it is made:
               (1)  at any time by:
                     (A)  the commission;
                     (B)  an authorized commission agent;
                     (C)  the director or a commissioned officer of the
  Department of Public Safety;
                     (D)  a peace officer; or
                     (E)  a steward or judge; and
               (2)  at any restricted location that is at a racetrack
  and is not a public place.
         (b)  A person commits an offense if, after a lawful request,
  the person knowingly fails or refuses to:
               (1)  display a credential to another person; or
               (2)  give the person's name, residence address, or date
  of birth to another person.
         (c)  Except as provided by Subsection (d), an offense under
  this section is a Class B misdemeanor.
         (d)  At the punishment stage of a trial for an offense under
  Subsection (b)(1), the defendant may raise an issue as to whether
  the defendant was a license holder at the time of the offense.  If
  the defendant proves the issue, the offense is a Class C
  misdemeanor. (V.A.C.S. Art. 179e, Sec. 14.17.)
         Sec. 2033.008.  RACES CONDUCTED ON CERTAIN INDIAN LANDS.
  (a)  A person commits an offense if the person knowingly wagers on
  the result of a horse or greyhound race conducted in this state
  that:
               (1)  is held on an American Indian reservation or on
  American Indian trust land located in this state; and
               (2)  is not held under the supervision of the
  commission under rules adopted under this subtitle.
         (b)  An offense under this section is a felony of the third
  degree.
         (c)  It is an exception to the application of this section
  that the person is a member of a recognized Texas Indian tribe who
  lives on a reservation or on trust lands located in this state.
  (V.A.C.S. Art. 179e, Sec. 14.05.)
         Sec. 2033.009.  ILLEGAL ACCESS TO ENCLOSURE. (a)  A person
  commits an offense if the person is a license holder and the person
  knowingly permits, facilitates, or allows access to an enclosure
  where races are conducted to another person who the person knows:
               (1)  has engaged in bookmaking, touting, or illegal
  wagering;
               (2)  derives income from illegal activities or
  enterprises;
               (3)  has been convicted of a violation of this
  subtitle; or
               (4)  is excluded by the commission from entering a
  racetrack.
         (b)  An offense under this section is a Class B misdemeanor.
  (V.A.C.S. Art. 179e, Sec. 14.04.)
         Sec. 2033.010.  HINDERING ENTRY OR SEARCH. (a)  A person
  commits an offense if the person with criminal negligence refuses,
  denies, or hinders entry to another person who is exercising or
  attempting to exercise a power of entry under this subtitle or a
  commission rule.
         (b)  A person commits an offense if the person with criminal
  negligence refuses, denies, hinders, interrupts, disrupts,
  impedes, or otherwise interferes with a search by a person who is
  exercising or attempting to exercise a power to search under this
  subtitle or a commission rule.
         (c)  An offense under this section is a Class B misdemeanor.
  (V.A.C.S. Art. 179e, Sec. 14.07.)
         Sec. 2033.011.  FORGING PARI-MUTUEL TICKET.  (a)  In this
  section, "forge" has the meaning assigned by Section 32.21, Penal
  Code.
         (b)  A person commits an offense if the person knowingly
  forges a pari-mutuel ticket with the intent to defraud or harm
  another person.
         (c)  An offense under this section is a felony of the third
  degree. (V.A.C.S. Art. 179e, Sec. 14.08.)
         Sec. 2033.012.  FALSE STATEMENTS. (a)  In this section,
  "statement" means a representation of fact, including:
               (1)  a written or oral statement; or
               (2)  a sworn or unsworn statement.
         (b)  A person commits an offense if the person knowingly
  makes a material and false, incorrect, or deceptive statement to
  another person who is conducting an investigation or exercising
  discretion under this subtitle or a rule adopted under this
  subtitle.
         (c)  An offense under this section is a state jail felony
  unless the statement was material in a commission action relating
  to a racetrack license, in which event the offense is a felony of
  the third degree. (V.A.C.S. Art. 179e, Sec. 14.06.)
         Sec. 2033.013.  TOUTING. (a)  A person commits an offense
  if, with an intent to deceive and an intent to obtain a benefit, the
  person knowingly:
               (1)  makes a false statement about a horse or greyhound
  race to another person; or
               (2)  offers, agrees to convey, or conveys false
  information about a horse or greyhound race to another person.
         (b)  Except as provided by Subsection (c), an offense under
  this section is a Class A misdemeanor.
         (c)  An offense under this section is a state jail felony if:
               (1)  the actor:
                     (A)  is a license holder under this subtitle or a
  commission member or employee; and
                     (B)  knowingly represents that a commission
  member or employee or a person licensed by the commission is the
  source of the false information; or
               (2)  the false statement or information was contained
  in racing selection information provided to the public. (V.A.C.S.
  Art. 179e, Sec. 14.01.)
         Sec. 2033.014.  BRIBERY AND CORRUPT INFLUENCE. (a)  A
  person commits an offense if, with the intent to influence or affect
  the outcome of a race in a manner contrary to this subtitle or a
  commission rule, the person offers, confers, or agrees to confer on
  another person, or solicits, accepts, or agrees to accept from
  another person, any benefit as consideration for the actions of a
  person who receives the benefit relating to the conduct, decision,
  opinion, recommendation, vote, or exercise of discretion as a
  license holder or other person associated with or interested in any
  stable, kennel, horse, greyhound, or horse or greyhound race.
         (b)  An offense under this section is a state jail felony
  unless the recipient of the benefit is a steward, judge, or other
  racetrack official exercising authority over a horse or greyhound
  race that the person providing or offering the benefit intended to
  influence, in which event the offense is a felony of the third
  degree. (V.A.C.S. Art. 179e, Sec. 14.11.)
         Sec. 2033.015.  POSSESSION OR USE OF PROHIBITED DEVICE OR
  SUBSTANCE. (a)  A person commits an offense if the person
  possesses a prohibited device or prohibited substance at a
  racetrack, in an enclosure, or at a training facility.
         (b)  A person commits an offense if, with the intent to
  influence or affect a horse or greyhound race in a manner contrary
  to this subtitle or a commission rule, the person uses or offers to
  use:
               (1)  a prohibited device; or
               (2)  a prohibited substance.
         (c)  An offense under Subsection (a) is a Class A misdemeanor
  unless the actor possessed the prohibited device or prohibited
  substance with the intent to influence or affect the outcome of a
  horse or greyhound race in a manner contrary to this subtitle or a
  commission rule, in which event the offense is a state jail felony.
         (d)  An offense under Subsection (b) is a felony of the third
  degree. (V.A.C.S. Art. 179e, Sec. 14.10.)
         Sec. 2033.016.  CRIMINAL CONFLICT OF INTEREST. A person who
  is a commission member commits an offense if the person:
               (1)  accepts, directly or indirectly, employment or
  remuneration from a racetrack, racetrack association, or other
  license holder, including a racetrack, racetrack association, or
  license holder located or residing in another state;
               (2)  wagers or causes a wager to be placed on the
  outcome of a horse or greyhound race conducted in this state; or
               (3)  accepts or is entitled to any part of a purse to be
  paid to an animal in a race conducted in this state. (V.A.C.S.
  Art. 179e, Sec. 14.12.)
         Sec. 2033.017.  OFFENSE INVOLVING MINOR. (a)  A person
  commits an offense if the person with criminal negligence permits,
  facilitates, or allows:
               (1)  wagering by a minor at a racetrack; or
               (2)  entry by a child to the viewing section of a
  racetrack.
         (b)  A person commits an offense if the person is a minor and
  knowingly engages in wagering at a racetrack.
         (c)  An offense under Subsection (a) is a Class B
  misdemeanor.
         (d)  An offense under Subsection (b) is a Class C
  misdemeanor.
         (e)  It is an affirmative defense to prosecution of an
  offense under Subsection (a)(2) that a child was accompanied by and
  was in the physical presence of a parent, guardian, or spouse who
  was 21 years of age or older.
         (f)  It is an affirmative defense to prosecution of an
  offense under Subsection (a) that the minor falsely represented the
  minor's age by displaying to the person an apparently valid Texas
  driver's license or identification card issued by the Department of
  Public Safety that contains a physical description consistent with
  the minor's appearance. (V.A.C.S. Art. 179e, Sec. 14.13.)
         Sec. 2033.018.  SEARCH AND SEIZURE. (a)  A person consents
  to a search for a prohibited device, prohibited substance, or other
  contraband at a time and location described by Subsection (b) if the
  person:
               (1)  accepts a license or other credential issued under
  this subtitle; or
               (2)  enters a racetrack under the authority of a
  license or other credential alleged to have been issued under this
  subtitle.
         (b)  A search may be conducted by a commissioned officer of
  the Department of Public Safety or a peace officer, including a
  peace officer employed by the commission, at any time and at any
  location at a racetrack, except a location:
               (1)  excluded by commission rule from searches under
  this section; or
               (2)  provided by a racetrack association under
  commission rule for private storage of personal items belonging to
  a license holder entering a racetrack.
         (c)  A person conducting a search under Subsection (b) may
  seize a prohibited device, prohibited substance, or other
  contraband discovered during the search. (V.A.C.S. Art. 179e, Sec.
  14.18.)
         Sec. 2033.019.  PROSECUTION. A person subject to
  prosecution for an offense under this subtitle and another law may
  be prosecuted under either law. (V.A.C.S. Art. 179e, Sec. 14.19.)
         Sec. 2033.020.  VENUE FOR PROSECUTION. Venue for the
  prosecution of an offense under this subtitle is in Travis County or
  in a county in which an element of the offense occurred. (V.A.C.S.
  Art. 179e, Sec. 14.21.)
         Sec. 2033.021.  COMMISSION AUTHORITY. This subchapter does
  not restrict the commission's administrative authority to enforce
  this subtitle or commission rules to the fullest extent authorized
  by this subtitle. (V.A.C.S. Art. 179e, Sec. 14.20.)
  SUBCHAPTER B. ADMINISTRATIVE PENALTY
         Sec. 2033.051.  IMPOSITION OF PENALTY. If the commission
  determines that a person regulated under this subtitle has violated
  this subtitle or a rule or order adopted under this subtitle in a
  manner that constitutes a ground for a disciplinary action under
  this subtitle, the commission may assess an administrative penalty
  against that person as provided by this subchapter. (V.A.C.S. Art.
  179e, Sec. 15.03(a).)
         Sec. 2033.052.  AMOUNT OF PENALTY. (a)  The commission may
  assess an administrative penalty under this subchapter in an amount
  not to exceed $10,000 for each violation.
         (b)  In determining the amount of the penalty, the commission
  shall consider the seriousness of the violation. (V.A.C.S. Art.
  179e, Sec. 15.03(b).)
         Sec. 2033.053.  PRELIMINARY REPORT AND NOTICE OF VIOLATION
  AND PENALTY. (a)  If, after examination of a possible violation
  and the facts relating to that possible violation, the commission
  determines that a violation has occurred, the commission shall
  issue a preliminary report that states:
               (1)  the facts on which the conclusion is based;
               (2)  the fact that an administrative penalty is to be
  imposed; and
               (3)  the amount of the penalty to be assessed.
         (b)  Not later than the 10th day after the date on which the
  commission issues the preliminary report, the commission shall send
  a copy of the report to the person charged with the violation,
  together with a statement of the right of the person to a hearing
  relating to the alleged violation and the amount of the penalty.
  (V.A.C.S. Art. 179e, Sec. 15.03(c).)
         Sec. 2033.054.  PENALTY TO BE PAID OR HEARING REQUESTED.
  (a)  Not later than the 20th day after the date on which the
  commission sends the preliminary report under Section 2033.053, the
  person charged may:
               (1)  make a written request for a hearing; or
               (2)  remit the amount of the administrative penalty to
  the commission.
         (b)  Failure to request a hearing or to remit the amount of
  the administrative penalty in the period provided under this
  section results in a waiver of a right to a hearing under this
  subtitle. (V.A.C.S. Art. 179e, Sec. 15.03(d) (part).)
         Sec. 2033.055.  HEARING. (a)  If the person charged
  requests a hearing, the hearing shall be conducted in the manner
  provided for a contested case hearing under Chapter 2001,
  Government Code.
         (b)  If it is determined after the hearing that the person
  has committed the alleged violation, the commission shall:
               (1)  provide written notice to the person of the
  findings established by the hearing and the amount of the penalty;
  and
               (2)  enter an order requiring the person to pay the
  penalty. (V.A.C.S. Art. 179e, Sec. 15.03(d) (part).)
         Sec. 2033.056.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.
  (a)  Not later than the 30th day after the date on which the notice
  required under Section 2033.055 is received, the person charged
  shall pay the administrative penalty in full or exercise the right
  to appeal either the amount of the penalty or the fact of the
  violation.
         (b)  If a person exercises a right of appeal either as to the
  amount of the penalty or the fact of the violation, the amount of
  the penalty is not required to be paid until the 30th day after the
  date on which all appeals have been exhausted and the commission's
  decision has been upheld.
         (c)  Except as otherwise provided by Section 2024.053(c),
  all administrative appeals are to the commission and then to the
  courts. (V.A.C.S. Art. 179e, Secs. 4.05(b) (part), 15.03(e).)
         Sec. 2033.057.  COMPLAINTS. (a)  A complaint alleging a
  violation of this subtitle may be instituted by the Department of
  Public Safety, the commission, or the attorney general.
         (b)  The complaint must be decided by the commission under
  the contested case provisions of Chapter 2001, Government Code.
  (V.A.C.S. Art. 179e, Sec. 15.04.)
  SUBCHAPTER C.  CEASE AND DESIST ORDERS
         Sec. 2033.101.  CEASE AND DESIST ORDER.  (a)  The executive
  director may issue a cease and desist order if the executive
  director reasonably believes a 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
  racetrack association or other license holder by personal delivery
  or registered or certified mail, return receipt requested, to the
  person's last known address.
         (c)  The proposed order must state the specific acts or
  practices alleged to violate this subtitle or a commission rule.
  The proposed order must state the effective date, which may not be
  earlier than the 21st day after the date the proposed order is
  mailed or delivered. (V.A.C.S. Art. 179e, Secs. 3.18(a), (b)
  (part).)
         Sec. 2033.102.  HEARING CONCERNING PROPOSED CEASE AND DESIST
  ORDER; FINAL ORDER.  (a)  If the person against whom a proposed
  cease and desist order is directed requests, in writing, a hearing
  before the effective date of the proposed order, the order is
  automatically stayed pending final adjudication of the order.
  Unless the person against whom the proposed order is directed
  requests, in writing, a hearing before the effective date of the
  proposed order, the order takes effect and is final and
  nonappealable as to that person.
         (b)  On receiving a request for a hearing, the executive
  director shall serve notice of the time and place of the hearing by
  personal delivery or registered or certified mail, return receipt
  requested.
         (c)  At a hearing, the commission has the burden of proof and
  must present evidence in support of the order. Each person against
  whom the order is directed may cross-examine and show cause why the
  order should not be issued.
         (d)  After the hearing, the commission shall issue or decline
  to issue a cease and desist order. The proposed order may be
  modified as necessary to conform to the findings at the hearing. An
  order issued under this section is final for purposes of
  enforcement and appeal and must require the person to immediately
  cease and desist from the conduct that violates this subtitle or a
  commission rule. (V.A.C.S. Art. 179e, Secs. 3.18(b) (part), (c),
  (d).)
         Sec. 2033.103.  PETITION FOR JUDICIAL REVIEW OF CEASE AND
  DESIST ORDER. (a)  A person affected by a cease and desist order
  issued, affirmed, or modified after a hearing under Section
  2033.102 may file a petition for judicial review in a district court
  of Travis County under Chapter 2001, Government Code.
         (b)  A petition for judicial review does not stay or vacate
  the cease and desist order unless the court, after hearing,
  specifically stays or vacates the order. (V.A.C.S. Art. 179e, Sec.
  3.18(e).)
         Sec. 2033.104.  EMERGENCY CEASE AND DESIST ORDER. (a)  The
  executive director may issue an emergency cease and desist order if
  the executive director reasonably believes a racetrack association
  or other license holder is engaged in a continuing activity that
  violates this subtitle or a commission rule in a manner that
  threatens immediate and irreparable public harm.
         (b)  After issuing an emergency cease and desist order, the
  executive director shall serve on the 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.
  (V.A.C.S. Art. 179e, Secs. 3.19(a), (b).)
         Sec. 2033.105.  HEARING CONCERNING EMERGENCY CEASE AND
  DESIST ORDER; FINAL ORDER. (a)  A racetrack association or other
  license holder that is the subject of an emergency cease and desist
  order may request a hearing. The request must:
               (1)  be filed with the executive director not later
  than the 10th day after the date the order was received or
  delivered;
               (2)  be in writing and directed to the executive
  director; and
               (3)  state the grounds for the request to set aside or
  modify the order.
         (b)  Unless a person who is the subject of the emergency
  order requests a hearing in writing before the 11th day after the
  date the order is received or delivered, the emergency order is
  final and nonappealable as to that person.
         (c)  On receiving a request for a hearing, the executive
  director shall serve notice of the time and place of the hearing by
  personal delivery or registered or certified mail, return receipt
  requested. The hearing must be held not later than the 10th day
  after the date the executive director receives the request for a
  hearing unless the parties agree to a later hearing date.
         (d)  At the hearing, the commission has the burden of proof
  and must present evidence in support of the order. The person
  requesting the hearing may cross-examine witnesses and show cause
  why the order should not be affirmed. Section 2003.021(b),
  Government Code, does not apply to hearings conducted under this
  section.
         (e)  An emergency cease and desist order continues in effect
  unless the order is stayed by the executive director. The executive
  director may impose any condition before granting a stay of the
  order.
         (f)  After the hearing, the executive director shall affirm,
  modify, or set aside, wholly or partly, the emergency cease and
  desist order. An order affirming or modifying the emergency cease
  and desist order is final for purposes of enforcement and appeal.
  (V.A.C.S. Art. 179e, Secs. 3.19(c), (d), (e), (f).)
         Sec. 2033.106.  VIOLATION OF FINAL CEASE AND DESIST ORDER.
  (a)  If the executive director reasonably believes that a person
  has violated a final and enforceable cease and desist order, the
  executive director may:
               (1)  initiate administrative penalty proceedings under
  Subchapter B;
               (2)  refer the matter to the attorney general for
  enforcement by injunction and any other available remedy; or
               (3)  pursue any other action that the executive
  director considers appropriate, including suspension of the
  person's license.
         (b)  If the attorney general prevails in an action brought
  under Subsection (a)(2), the attorney general is entitled to
  recover reasonable attorney's fees. (V.A.C.S. Art. 179e, Sec.
  3.20.)
  SUBCHAPTER D. OTHER DISCIPLINARY POWERS
         Sec. 2033.151.  DISCIPLINARY ACTIONS. (a)  The commission
  shall revoke, suspend, or refuse to renew a license, place on
  probation a person whose license has been suspended, or reprimand a
  license holder for a violation of this subtitle or a commission
  rule.
         (b)  If a license suspension is probated, the commission may
  require the license holder to report regularly to the commission on
  matters that are the basis of the probation. (V.A.C.S. Art. 179e,
  Sec. 3.14.)
         Sec. 2033.152.  HEARING CONCERNING SUSPENSION, REVOCATION,
  OR REFUSAL TO RENEW LICENSE. (a)  If the commission proposes to
  suspend, revoke, or refuse to renew a person's license, the person
  is entitled to a hearing conducted by the State Office of
  Administrative Hearings.
         (b)  Proceedings for a disciplinary action, other than those
  conducted by a steward or judge, are governed by Chapter 2001,
  Government Code.
         (c)  Rules of practice adopted by the commission under
  Section 2001.004, Government Code, applicable to the proceedings
  for a disciplinary action, other than those conducted by a steward
  or judge, may not conflict with rules adopted by the State Office of
  Administrative Hearings. (V.A.C.S. Art. 179e, Sec. 3.15.)
         Sec. 2033.153.  INJUNCTION.  The commission may institute an
  action in its own name to enjoin the violation of this subtitle. An
  action for an injunction is in addition to any other action,
  proceeding, or remedy authorized by law. (V.A.C.S.  Art. 179e, Sec.
  3.21.)
         Sec. 2033.154.  ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT.
  (a)  The commission by rule shall develop a system for monitoring
  the activities of managers and employees of a racetrack association
  relating to the horsemen's account. The monitoring system may
  include review of the financial operations of the racetrack
  association, including inspections of records at the racetrack
  association's offices, at any racetrack, or at any other place the
  racetrack association transacts business.
         (b)  The executive director may issue an order prohibiting
  the racetrack association from making any transfer from a bank
  account held by the racetrack association for the conduct of
  business under this subtitle, pending commission review of the
  records of the account, if the executive director reasonably
  believes that the racetrack association has failed to maintain the
  proper amount of money in the horsemen's account. The executive
  director shall provide in the order a procedure for the racetrack
  association to pay certain expenses necessary for the operation of
  the racetrack, subject to the executive director's approval.
         (c)  An order issued under this section may be made valid for
  a period not to exceed 14 days.
         (d)  The executive director may issue an order requiring the
  appropriate transfers to or from the horsemen's account if, after
  reviewing the racetrack association's records of its bank accounts,
  the executive director determines there is an improper amount of
  money in the horsemen's account. (V.A.C.S. Art. 179e, Sec. 3.22.)
  CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING
  Sec. 2034.001.  RULES RELATING TO UNLAWFUL INFLUENCES
                   ON RACING AND REQUIRED TESTING 
  Sec. 2034.002.  MEDICATION AND DRUG TESTING PROCEDURES 
  Sec. 2034.003.  CHARGES FOR MEDICATION OR DRUG TESTING 
  Sec. 2034.004.  RESPONSIBILITY OF LICENSED TRAINER
                   CONCERNING PROHIBITED SUBSTANCE 
  Sec. 2034.005.  PROHIBITED SUBSTANCE IN TEST SAMPLE OR
                   SPECIMEN 
  Sec. 2034.006.  DISCIPLINARY ACTION FOR PROHIBITED
                   DEVICE OR SUBSTANCE 
  Sec. 2034.007.  DISCIPLINARY ACTION FOR RULE VIOLATION
                   OF PROHIBITED DEVICE OR SUBSTANCE 
  CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING
         Sec. 2034.001.  RULES RELATING TO UNLAWFUL INFLUENCES ON
  RACING AND REQUIRED TESTING.  (a)  The commission shall adopt
  rules prohibiting a person from unlawfully influencing or affecting
  the outcome of a race, including rules relating to the use of a
  prohibited device or prohibited substance at a racetrack or at a
  training facility.
         (b)  The commission shall require testing to determine
  whether a prohibited substance has been used.
         (c)  The commission's rules must require state-of-the-art
  testing methods.  The testing may:
               (1)  be prerace or postrace as determined by the
  commission; and
               (2)  be by an invasive or noninvasive method.
         (d)  The commission shall adopt rules relating to the drug
  testing of license holders. (V.A.C.S. Art. 179e, Secs. 3.16(a),
  (b), (i).)
         Sec. 2034.002.  MEDICATION AND DRUG TESTING PROCEDURES.
  (a)  Medication or drug testing performed on a race animal under
  this subtitle must be conducted by:
               (1)  the Texas A&M Veterinary Medical Diagnostic
  Laboratory; or
               (2)  a laboratory operated by or in conjunction with or
  by a private or public agency selected by the commission after
  consultation with the Texas A&M Veterinary Medical Diagnostic
  Laboratory.
         (b)  Medication or drug testing performed on a human under
  this subtitle must be conducted by a laboratory approved by the
  commission. (V.A.C.S. Art. 179e, Sec. 3.07(d) (part).)
         Sec. 2034.003.  CHARGES FOR MEDICATION OR DRUG TESTING.
  (a)  The commission by rule shall:
               (1)  prescribe procedures for approving and paying
  medical and drug testing laboratory charges under this section; and
               (2)  allocate responsibility for the costs of human
  drug testing of a license holder.
         (b)  The racetrack association that receives medication or
  drug testing services conducted under this subtitle shall pay the
  reasonable charges associated with those services.
         (c)  Charges for services performed under this section must
  be forwarded to the commission for approval of the reasonableness
  of the charges. Charges may include expenses incurred for travel,
  lodging, testing, and processing of test results.
         (d)  The commission shall determine whether the laboratory
  charges are reasonable in relation to industry standards by
  periodically surveying the drug testing charges of comparable
  laboratories in the United States.
         (e)  The racetrack association that receives the services is
  responsible for the cost of approved charges for animal drug
  testing services under this section.  The commission shall forward
  a copy of the charges to the racetrack association for immediate
  payment.
         (f)  To pay the charges associated with the medication or
  drug testing, a racetrack association may use the money held by the
  racetrack association to pay outstanding tickets and pari-mutuel
  vouchers. The racetrack association shall pay any additional
  amount needed for the charges. (V.A.C.S. Art. 179e, Secs. 3.07(d)
  (part), (e), (f).)
         Sec. 2034.004.  RESPONSIBILITY OF LICENSED TRAINER
  CONCERNING PROHIBITED SUBSTANCE.  The licensed trainer of an animal
  is: