Bill Text: TX SB704 | 2021-2022 | 87th Legislature | Engrossed

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Bill Title: Relating to the transfer of the regulation of racing to the Texas Department of Licensing and Regulation, the abolishment of the Texas Racing Commission, and the creation of the Texas Racing Advisory Board, following recommendations of the Sunset Advisory Commission.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Engrossed - Dead) 2021-05-06 - Referred to Licensing & Administrative Procedures [SB704 Detail]

Download: Texas-2021-SB704-Engrossed.html

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By: Buckingham, et al. S.B. No. 704

A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the regulation of racing to the Texas
Department of Licensing and Regulation, the abolishment of the
Texas Racing Commission, and the creation of the Texas Racing
Advisory Board, following recommendations of the Sunset Advisory
Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL PROVISIONS
SECTION 1.01. Subchapter C, Chapter 51, Occupations Code,
is amended by adding Section 51.1041 to read as follows:
Sec. 51.1041. PEACE OFFICERS. (a) The department may
commission as a peace officer an employee who has been certified as
qualified to be a peace officer by the Texas Commission on Law
Enforcement.
(b) A peace officer commissioned by the department may
enforce any provision of this chapter relating to the regulation of
racing or any law establishing a program regulated by the
department under Subtitle A-1, Title 13, related to the regulation
of racing.
(c) A peace officer commissioned under this section has the
powers, privileges, and immunities of a peace officer while
carrying out duties authorized by this chapter or a law
establishing a program regulated by the department.
SECTION 1.02. Section 2021.003, Occupations Code, is
amended by amending Subdivisions (2), (8), (9), (14), (20), (21),
(24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to
read as follows:
(2) "Active license" means a racetrack license
designated by the department [commission] as active.
(2-a) "Advisory board" means the Texas Racing Advisory
Board.
(8) "Commission" means the Texas [Racing] Commission
of Licensing and Regulation.
(9) "Concessionaire" means a person licensed by the
department [commission] to sell refreshments or souvenirs at a
racetrack.
(12-a) "Department" means the Texas Department of
Licensing and Regulation.
(14) "Executive director" means the executive
director of the department [commission].
(20) "Horsemen's organization" means an organization
recognized by the department [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 department [commission] as inactive.
(24) "Maiden" means a horse that has never won a race
at a race meeting authorized by the department [commission] or by
another racing jurisdiction.
(35) "Performance" means the consecutive running of a
specified number of greyhound races as determined by the department
[commission].
(54) "Trainer" means a person who is licensed by the
department [commission] to train horses or greyhounds.
SECTION 1.03. Sections 2021.004(1) and (5), Occupations
Code, are amended to read as follows:
(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 department
[commission] acknowledges and approves.
(5) "Jockey" or "apprentice jockey" means a
professional rider licensed by the department [commission] to ride
in horse races.
SECTION 1.04. Section 2021.006, Occupations Code, is
amended to read as follows:
Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission
member, the executive director, a department [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.
SECTION 1.05. Sections 2021.008(a), (b), (c), and (d),
Occupations Code, are amended to read as follows:
(a) The advisory board [commission] is subject to Chapter
325, Government Code (Texas Sunset Act). The advisory board shall
be reviewed during the period in which the commission and
department are reviewed under Section 51.002. Unless the advisory
board is continued in existence and the commission and department
are continued in existence as provided by that section, [chapter,]
and except as provided by Subsections (b) and (c), [the commission
is abolished and] this subtitle expires on the date provided by that
section [September 1, 2021].
(b) If, at the time the commission, department, and advisory
board 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, the department, and this subtitle
are continued in effect for the purpose of regulating that
racetrack association under this subtitle.
(c) If the commission, the department, and this subtitle are
continued in effect under Subsection (b), the commission and the
department are [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
or department approval. At the beginning of that period, the
commission or department 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.
ARTICLE 2. TEXAS RACING ADVISORY BOARD; DEPARTMENT RECORDS AND
INFORMATION
SECTION 2.01. The heading to Chapter 2022, Occupations
Code, is amended to read as follows:
CHAPTER 2022. TEXAS RACING ADVISORY BOARD [COMMISSION]
SECTION 2.02. The heading to Section 2022.001, Occupations
Code, is amended to read as follows:
Sec. 2022.001. ADVISORY BOARD [COMMISSION] MEMBERSHIP.
SECTION 2.03. Section 2022.001(a), Occupations Code, is
amended to read as follows:
(a) The Texas Racing Advisory Board [commission] consists
of nine[:
[(1) seven] members appointed by the presiding officer
of the commission, with commission approval, as follows:
(1) one member who is a representative of a racetrack
association holding a class 1 racetrack license;
(2) one member who is a representative of a racetrack
association holding a class 2 racetrack license;
(3) one member who is a representative of a racetrack
association holding a class 3 racetrack license;
(4) one member who is:
(A) a representative of a racetrack association
holding a greyhound racetrack license; or
(B) a representative of the Texas Horsemen's
Partnership;
(5) one member who is a representative of the Texas
Thoroughbred Association;
(6) one member who is a representative of the Texas
Quarter Horse Association;
(7) one member who is a veterinarian; and
(8) two members of the public [governor with the
advice and consent of the senate; and
[(2) two ex officio members who have the right to
vote].
SECTION 2.04. Subchapter A, Chapter 2022, Occupations Code,
is amended by adding Section 2022.0011 to read as follows:
Sec. 2022.0011. DUTIES OF ADVISORY BOARD. The advisory
board shall provide advice and recommendations to the department on
technical matters relevant to the administration of this subtitle.
SECTION 2.05. The heading to Section 2022.002, Occupations
Code, is amended to read as follows:
Sec. 2022.002. TERM OF OFFICE; VACANCIES.
SECTION 2.06. Section 2022.002, Occupations Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) Advisory board [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.
(c) If a vacancy occurs during a member's term, the
presiding officer of the commission, with commission approval,
shall appoint a member to fill the vacancy for the remainder of the
unexpired term.
SECTION 2.07. Section 2022.008, Occupations Code, is
amended to read as follows:
Sec. 2022.008. PRESIDING OFFICER. (a) The presiding
officer of the commission [governor] shall designate a [public]
member of the advisory board [commission] as the presiding officer
of the advisory board [commission] to serve in that capacity for a
one-year term [at the pleasure of the governor].
(b) The presiding officer of the advisory board may vote on
any matter before the advisory board.
SECTION 2.08. The heading to Section 2022.009, Occupations
Code, is amended to read as follows:
Sec. 2022.009. ADVISORY BOARD [COMMISSION] MEETINGS[;
RECORD OF COMMISSION VOTES].
SECTION 2.09. Section 2022.009(a), Occupations Code, is
amended to read as follows:
(a) The advisory board [commission] shall meet at the call
of the presiding officer of the commission or the executive
director [hold at least six regular meetings each year on dates
fixed by the commission].
SECTION 2.10. The heading to Section 2022.052, Occupations
Code, is amended to read as follows:
Sec. 2022.052. [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT.
SECTION 2.11. The heading to Section 2022.103, Occupations
Code, is amended to read as follows:
Sec. 2022.103. DEPARTMENT [COMMISSION] INVESTIGATIVE FILES
CONFIDENTIAL.
SECTION 2.12. Sections 2022.103(a), (b), and (c),
Occupations Code, are amended to read as follows:
(a) The contents of the investigatory files of the
department [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 of Public Safety's
[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 of Public Safety
[department] in the discharge of the Department of Public Safety's
[department's] duties under this subtitle.
(c) An investigation report or other document submitted by
the Department of Public Safety to the department [commission]
becomes part of the investigative files of the department
[commission] and is subject to discovery by a person who is the
subject of the investigation report or other document submitted by
the Department of Public Safety [department] to the department
[commission] that is part of the investigative files of the
department [commission].
SECTION 2.13. Section 2022.105(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] shall require racetrack
associations, managers, totalisator license holders, and
concessionaires to keep books and records and to submit financial
statements to the commission.
ARTICLE 3. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL
POWERS AND DUTIES
SECTION 3.01. The heading to Chapter 2023, Occupations
Code, is amended to read as follows:
CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL
POWERS AND DUTIES
SECTION 3.02. Section 2023.001, Occupations Code, is
amended to read as follows:
Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF
HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any
contrary provision in this subtitle, the department under the
direction of 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 the department
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.
SECTION 3.03. Section 2023.002, Occupations Code, is
amended to read as follows:
Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT
RACE MEETINGS. (a) The department [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 department [commission].
(b) The commission shall adopt rules on the issuance of
licenses and other rules necessary to regulate horse racing and
greyhound racing and the department shall[,] issue licenses[,] and
take any other necessary action relating [exclusively] to the
regulation of horse racing or greyhound racing.
SECTION 3.04. Section 2023.003(b), Occupations Code, is
amended to read as follows:
(b) The department [commission] may charge in the amount set
by the commission 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 by the commission for the licensing and regulation of
races and workouts at such a facility.
SECTION 3.05. Section 2023.004(d), Occupations Code, is
amended to read as follows:
(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.
SECTION 3.06. Section 2023.006, Occupations Code, is
amended to read as follows:
Sec. 2023.006. CONSIDERATION OF PAST PERFORMANCE OF
RACETRACK ASSOCIATION. In considering a pleading of a racetrack
association, the department [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.
SECTION 3.07. Section 2023.007, Occupations Code, is
amended to read as follows:
Sec. 2023.007. RIGHT OF ENTRY. A department employee
[commission member], an authorized department [commission] agent
or peace officer, 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.
SECTION 3.08. Section 2023.008, Occupations Code, is
amended to read as follows:
Sec. 2023.008. TESTIMONY AND SUBPOENA POWER. (a) For
purposes of this section, "agent" means an appointed agent of the
department [commission].
(b) A department employee [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
executive director or the executive director's designee
[commission or an agent]. A person designated by the executive
director [commission] must serve the subpoena.
(d) A department employee [commission member] or an agent
may administer an oath to a witness appearing before the department
[commission] or an agent.
(e) If a subpoena issued under this section is disobeyed,
the department [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.
SECTION 3.09. Sections 2023.051 and 2023.052, Occupations
Code, are amended to read as follows:
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 department [commission].
(b) The department [commission] may recognize an
organization that meets the criteria adopted under Subsection (a).
Sec. 2023.052. SECURITY FOR FEES AND CHARGES. The
department [commission] may require a racetrack association to post
security in an amount and form determined by the department
[commission] to adequately ensure the payment of any fee or charge
due to this state or the department [commission] relating to
pari-mutuel racing, including a charge for drug testing.
SECTION 3.10. Section 2023.053(f), Occupations Code, is
amended to read as follows:
(f) This section does not apply to:
(1) money deposited into the Texas-bred incentive fund
established under Section 2028.301; or
(2) an administrative penalty remitted to the
comptroller for deposit in the general revenue fund under Section
2033.058.
SECTION 3.11. The heading to Section 2023.054, Occupations
Code, is amended to read as follows:
Sec. 2023.054. [COMMISSION] STANDARDS ON GREYHOUND FARMS
AND FACILITIES.
SECTION 3.12. Sections 2023.056, 2023.057, 2023.058,
2023.059, and 2023.061, Occupations Code, are amended to read as
follows:
Sec. 2023.056. COOPERATION WITH LAW ENFORCEMENT. (a) The
department [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 department [commission], under department
[commission] authority to obtain criminal history record
information under Section 2023.057, shall maintain and exchange
pertinent intelligence data with other states and agencies.
Sec. 2023.057. ACCESS TO CRIMINAL HISTORY RECORDS. The
department [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 under this
subtitle by the department, including an occupational license
described by Section 2025.251(c), [commission] and that is
maintained by the Department of Public Safety or the Federal Bureau
of Investigation Identification Division. The department
[commission] may refuse to issue a license to [recommend] an
applicant who fails to provide a complete set of fingerprints.
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 to the
department of conducting a criminal history record check on a
license applicant.
(b) The department [commission] shall reimburse the
Department of Public Safety for the cost of conducting a criminal
history record check under this subtitle.
Sec. 2023.059. DISTANCE LEARNING. The department
[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.
Sec. 2023.061. BIENNIAL [ANNUAL] REPORT. (a) Not later
than January 31 of each odd-numbered year, the department
[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 department
under this subtitle [commission] and the condition of horse
breeding and racing and greyhound breeding and racing during the
preceding two-year period [previous year].
(c) The department [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
related to this subtitle known to exist in this state. The
department [commission] shall include in the biennial [annual]
report the Department of Public Safety's [department's] report and
any recommendations the department [commission] considers
appropriate.
SECTION 3.13. Sections 2023.101(b), (c), and (d),
Occupations Code, are amended to read as follows:
(b) The department [commission] shall employ or contract
with each steward and judge for the supervision of a horse race or
greyhound race meeting.
(c) The department [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 department [commission] for the
department's [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 department [commission].
SECTION 3.14. Section 2023.102(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] shall require each steward
or judge to annually take and pass a written examination and a
medical examination.
SECTION 3.15. Section 2023.103, Occupations Code, is
amended to read as follows:
Sec. 2023.103. [EMPLOYMENT OF] STATE VETERINARIANS. For
each race meeting, the department [commission] shall employ or
contract for at least one state veterinarian.
SECTION 3.16. Section 2023.104(b), Occupations Code, is
amended to read as follows:
(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 department
[commission] for compensating the officials.
SECTION 3.17. Section 2023.105, Occupations Code, is
amended to read as follows:
Sec. 2023.105. EMPLOYMENT OF OTHER RACETRACK OFFICIALS.
The racetrack association shall appoint, with the department's
[commission's] approval, all racetrack officials other than the
officials listed in Section 2023.104. Compensation for officials
not compensated by the department [commission] is determined by the
racetrack association.
SECTION 3.18. Section 2023.106(b), Occupations Code, is
amended to read as follows:
(b) The commission shall adopt rules that specify:
(1) 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;
and
(2) procedures for hearings conducted under this
section.
SECTION 3.19. Section 2023.109, Occupations Code, is
amended by adding Subsection (c) to read as follows:
(c) The commission may adopt rules specifying the
requirements for appealing a decision and eligibility of orders for
consideration under this section.
ARTICLE 4. POWERS AND DUTIES OF COMPTROLLER
SECTION 4.01. Section 2024.002(a), Occupations Code, is
amended to read as follows:
(a) The comptroller may inspect all books, records, and
financial statements required by the commission or obtained by the
department under Section 2022.105.
SECTION 4.02. Sections 2024.053(a) and (b), Occupations
Code, are amended to read as follows:
(a) The comptroller shall certify to the department
[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 department [commission], may take any
collection or enforcement action authorized under the Tax Code
against a delinquent taxpayer.
ARTICLE 5. LICENSING
SECTION 5.01. Sections 2025.001 and 2025.002, Occupations
Code, are amended to read as follows:
Sec. 2025.001. COMMISSION AND DEPARTMENT 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 department [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 department's [commission's]
costs of regulating, overseeing, and licensing live and simulcast
racing at racetracks.
Sec. 2025.002. LICENSE AS PRIVILEGE. The operation of a
racetrack and the participation in racing are privileges, not
rights, granted only by the department [commission] by license and
subject to reasonable and necessary conditions set by the
commission and department.
SECTION 5.02. Sections 2025.003(a), (c), (d), and (e),
Occupations Code, are amended to read as follows:
(a) An applicant for a license or license renewal under this
subtitle must, except as otherwise provided by Section 2025.261,
submit to the department [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.
(c) A peace officer of any state[,] or any department
employee designated by the executive director [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 department [commission].
(d) If a complete set of fingerprints is required by the
department [commission], the department [commission] shall, not
later than the 10th business day after the date the department
[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 of Public Safety [department]
shall:
(1) classify the fingerprints and check the
fingerprints against the Department of Public Safety's
[department's] fingerprint files; and
(2) report to the department [commission] the
Department of Public Safety's [department's] findings concerning
the existence or lack of a criminal record of the applicant.
(e) The department [commission] may not issue a racetrack
license until the report under Subsection (d) is made to the
department [commission]. The department [commission] may issue a
temporary occupational license before the report is made to the
department [commission].
SECTION 5.03. Section 2025.051, Occupations Code, is
amended to read as follows:
Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL
PENALTY. A person may not conduct wagering on a horse or greyhound
race meeting without first obtaining a racetrack license issued by
the department [commission]. A person who violates this section
commits an offense.
SECTION 5.04. Sections 2025.052(a) and (b), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall require each
applicant for an original racetrack license to submit an
application, on a form prescribed by the department [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 department
[commission].
(b) An application must be attested [sworn] to:
(1) by the applicant; or
(2) if the applicant is a corporation or association,
by its chief executive officer.
SECTION 5.05. Sections 2025.053(a) and (c), Occupations
Code, are amended to read as follows:
(a) The department [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, or other
form of payment acceptable to the department.
(c) Notwithstanding this section, if a licensed racetrack
petitions for a higher racetrack classification, the department
[commission] shall impose fees equal to the difference between the
fees previously paid and the fees required for the higher
classification.
SECTION 5.06. Sections 2025.054(a) and (b), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall require each
applicant for an original racetrack license to submit with the
application for inspection and review by the department
[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:
(1) advise the department [commission] of any change
in any management, concession, or totalisator contract; and
(2) at the request of the department, provide any
information the department considers necessary to review the
change.
SECTION 5.07. Sections 2025.055 and 2025.056, Occupations
Code, are amended to read as follows:
Sec. 2025.055. CONFIDENTIALITY OF APPLICATION DOCUMENTS.
Documents submitted to the department [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.
Sec. 2025.056. BACKGROUND CHECK. (a) The department
[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 department may [commission shall] refuse to issue or
renew a license or may revoke 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. A
proceeding under this section is subject to Subchapter G, Chapter
51.
(c) The executive director [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 department [commission].
SECTION 5.08. Section 2025.057(a), Occupations Code, is
amended to read as follows:
(a) The department [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.
SECTION 5.09. Section 2025.058, Occupations Code, is
amended to read as follows:
Sec. 2025.058. NOTIFICATION OF COMPLETED APPLICATION. When
all requirements for the applicant's licensure described in this
chapter have been satisfied, the department [commission] shall
notify the applicant that the application is complete.
SECTION 5.10. Sections 2025.101(b), (c), (e), and (f),
Occupations Code, are amended to read as follows:
(b) In considering an application for a horse racetrack
license under this chapter, the department [commission] shall give
additional weight to evidence concerning an applicant who has
experience operating a horse racetrack licensed under this
subtitle.
(c) The department [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.
(e) Subsections (c) and (d) and Section 2025.201(a)(10)
[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 department [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.]
SECTION 5.11. Section 2025.102, Occupations Code, is
amended to read as follows:
Sec. 2025.102. QUALIFICATIONS FOR ISSUANCE OF RACETRACK
LICENSE. (a) The department [commission] may issue a racetrack
license to a qualified person if the department [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 department [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 department [commission] shall make a determination
on a pending application not later than the 120th day after the date
the department [commission] provides the notice required under
Section 2025.058.
SECTION 5.12. Sections 2025.103(a), (c), and (d),
Occupations Code, are amended to read as follows:
(a) After a racetrack association has been granted a license
to operate a racetrack and before the completion of construction at
the designated place for which the license was issued, the
department [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.
(c) The department [commission] may set conditions and
standards for issuance of a temporary license and allocation of
appropriate race days.
(d) The department [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.
SECTION 5.13. Sections 2025.104(a), (b), and (d),
Occupations Code, are amended to read as follows:
(a) The department [commission] shall designate each
racetrack license as an active license or an inactive license. The
department [commission] may change the designation of a racetrack
license as appropriate.
(b) The department [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.
(d) Before the first anniversary of the date a new racetrack
license is issued, the department [commission] shall conduct an
evaluation of the license to determine whether the license is an
active or inactive license.
SECTION 5.14. Section 2025.105, Occupations Code, is
amended by amending Subsections (a), (b), (c), (d), and (e) and
adding Subsection (g) to read as follows:
(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 department [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
department [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 department [commission] may refuse to renew an
inactive license if, after notice and a hearing, the department
[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 department [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 the department shall
collect renewal fees in amounts reasonable and necessary to cover
the costs of administering and enforcing this section.
(g) A proceeding under this section is a contested case for
purposes of Chapter 2001, Government Code.
SECTION 5.15. Section 2025.106, Occupations Code, is
amended to read as follows:
Sec. 2025.106. DEPARTMENT [COMMISSION] REVIEW OF ACTIVE
RACETRACK LICENSE; FEE. (a) The department [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 department [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 department [commission] shall charge fees for the
review in amounts set by the commission as sufficient to implement
this section.
SECTION 5.16. Section 2025.107(b), Occupations Code, is
amended to read as follows:
(b) If the death of any person causes a violation of the
licensing provisions of this subtitle, the department [commission]
may issue, in accordance with commission rules, a temporary license
for a period not to exceed one year.
SECTION 5.17. Sections 2025.108 and 2025.151, Occupations
Code, are amended to read as follows:
Sec. 2025.108. RACETRACK LICENSE ANNUAL FEE. The
commission may prescribe a reasonable annual fee to be paid to the
department 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.
Sec. 2025.151. LIMITATION ON NUMBER OF GREYHOUND RACETRACK
LICENSES. The department [commission] may not issue licenses for
more than three greyhound racetracks in this state.
SECTION 5.18. Section 2025.201, Occupations Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(d) to read as follows:
(a) The department [commission] may refuse to issue a
racetrack license or may revoke or suspend a license if, after
notice and hearing, the department [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 misdemeanor [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;
(4) [(5)] failed to answer or falsely or incorrectly
answered a question in an application;
(5) [(6)] fails to disclose the true ownership or
interest in a horse or greyhound as required by commission rules;
(6) [(7)] is indebted to this state for any fee or for
the payment of a penalty imposed by this subtitle or a commission
rule;
(7) has developed an incapacity that prevents or could
prevent the applicant or license holder from conducting the
applicant's or license holder's business with reasonable skill and
competence and in a manner that does not endanger public safety;
(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;
(9) [(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;
(10) [(12)] has not been a United States citizen
residing in this state for the 10 consecutive years preceding the
filing of the application;
(11) [(13)] has improperly used a credential,
including a license certificate or identification card, issued
under this subtitle;
(12) [(14)] resides with a person whose license was
revoked for cause during the 12 months preceding the date of the
present application;
(13) [(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 department [commission] determines are detrimental
to the best interests of the public and the sport of horse racing or
greyhound racing; or
(14) [(17)] fails to fully disclose the true owners of
all interests, beneficial or otherwise, in a proposed racetrack.
(c) The department [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.
(d) A proceeding under this section is a contested case for
purposes of Chapter 2001, Government Code.
SECTION 5.19. Section 2025.202(b), Occupations Code, is
amended to read as follows:
(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 department [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.
SECTION 5.20. Section 2025.203(a), Occupations Code, is
amended to read as follows:
(a) The executive director [commission] may summarily
suspend a racetrack license if the executive director [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.
SECTION 5.21. Section 2025.204(d), Occupations Code, is
amended to read as follows:
(d) At the hearing, the department [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.
SECTION 5.22. Sections 2025.205, 2025.251, 2025.253,
2025.254, and 2025.255, Occupations Code, are amended to read as
follows:
Sec. 2025.205. SUMMARY SUSPENSION FINAL ORDER. (a) After
the hearing on the suspension of a racetrack license, the
commission [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.
(b) A final order under this section may be appealed in the
manner provided by Subchapter G, Chapter 2001, Government Code.
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
department [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 department [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
department [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.
(c) The commission by rule may require the following persons
to hold an occupational license under this subtitle:
(1) an adoption program employee;
(2) an announcer;
(3) an apprentice jockey;
(4) an assistant farrier, plater, or blacksmith;
(5) an assistant starter;
(6) an assistant trainer;
(7) an assistant trainer/owner;
(8) an association assistant management employee;
(9) an association management employee;
(10) an association officer or director;
(11) an association staff employee;
(12) an association employee other than an employee
described in this subsection;
(13) an association veterinarian;
(14) an authorized agent;
(15) a chaplain;
(16) a chaplain assistant;
(17) an equine dental provider;
(18) an exercise rider;
(19) a farrier, plater, or blacksmith;
(20) a groom/exercise rider;
(21) a groom/hot walker;
(22) a groom/pony person;
(23) a jockey;
(24) a jockey agent;
(25) a kennel helper;
(26) a kennel owner;
(27) a kennel owner/owner;
(28) a kennel owner/owner/trainer;
(29) a kennel owner/trainer;
(30) a kennel registration employee;
(31) a lead-out;
(32) a maintenance employee;
(33) a medical employee;
(34) miscellaneous racetrack employees;
(35) a multiple owner/stable/farm registration
employee;
(36) a mutuel clerk;
(37) a mutuel employee other than a clerk;
(38) an owner;
(39) an owner-trainer;
(40) a pony person;
(41) a racing industry representative;
(42) a racing industry employee;
(43) a racing official;
(44) a security officer;
(45) a stable foreman;
(46) a tattooer;
(47) a test technician;
(48) a trainer;
(49) a training facility employee;
(50) a training facility general manager;
(51) a valet;
(52) a vendor concessionaire;
(53) a vendor concessionaire employee;
(54) a vendor-totalisator company;
(55) a vendor-totalisator employee;
(56) a veterinarian; and
(57) a veterinarian assistant.
Sec. 2025.253. EXAMINATION NOTIFICATION. (a) If an
examination is required for the issuance of a license under this
subchapter, the department [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
department [commission] shall furnish the person with an analysis
of the person's performance on the examination.
Sec. 2025.254. ISSUANCE OF LICENSE. The department
[commission] shall issue a license to a qualified person on
application and payment of the license fee.
Sec. 2025.255. ISSUANCE OF IDENTIFICATION CARD. The
department [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 department
[commission].
SECTION 5.23. Section 2025.256(c), Occupations Code, is
amended to read as follows:
(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 department
[commission] may determine the best method for recovering this cost
and complying with this section, including collecting the costs
over an extended period.
SECTION 5.24. Section 2025.258(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] shall obtain criminal
history record information on each applicant renewing an
occupational license under this subchapter.
SECTION 5.25. Section 2025.259, Occupations Code, is
amended to read as follows:
Sec. 2025.259. LICENSE VALID THROUGHOUT STATE. A license
issued under this subchapter is valid, as determined by the
department [commission], at all race meetings conducted in this
state.
SECTION 5.26. Section 2025.260(a), Occupations Code, is
amended to read as follows:
(a) Pending investigation of an applicant's qualifications
to receive an original or renewal license, the department
[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.
SECTION 5.27. Sections 2025.261 and 2025.262, Occupations
Code, are amended to read as follows:
Sec. 2025.261. RECIPROCAL LICENSES; OUT-OF-STATE
APPLICANTS. (a) The executive director [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 executive director [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 department [commission] may enter into agreements
with other states to allow for licensing by reciprocity.
Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND
SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department
[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 department [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 misdemeanor [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;
(4) [(5)] failed to answer or has falsely or
incorrectly answered a question in an original or renewal
application;
(5) [(6)] fails to disclose the true ownership or
interest in a horse or greyhound as required by commission rules;
(6) [(7)] is indebted to this state for any fee or for
the payment of a penalty imposed by this subtitle or a commission
rule;
(7) has developed an incapacity that prevents or could
prevent the applicant or license holder from conducting the
applicant's or license holder's business with reasonable skill and
competence and in a manner that does not endanger public safety;
(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;
(9) [(11)] has improperly used a temporary pass,
license certificate, credential, or identification card issued
under this subtitle;
(10) [(12)] resides with a person whose license was
revoked for cause during the 12 months preceding the date of the
present application;
(11) [(13)] has failed or refused to furnish a true
copy of the application to the department's [commission's] district
office in the district in which the premises for which the license
is sought are located; or
(12) [(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.
(b) A proceeding under this section is a contested case for
purposes of Chapter 2001, Government Code.
ARTICLE 6. RACETRACK OPERATIONS AND PREMISES
SECTION 6.01. Section 2026.003, Occupations Code, is
amended to read as follows:
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 department [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
department [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 department [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.
SECTION 6.02. Section 2026.004(b), Occupations Code, is
amended to read as follows:
(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 executive director [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 department [commission] to
conduct the same type of racing as may be conducted by the affected
racetrack association; and
(2) consents to the usage.
SECTION 6.03. Sections 2026.005 and 2026.006, Occupations
Code, are amended to read as follows:
Sec. 2026.005. CHANGE OF RACING LOCATION. On request of a
racetrack association, the department [commission] shall amend a
racetrack license to change the location of the racetrack if the
department [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.
Sec. 2026.006. LEASE OF RACETRACK PREMISES. (a) The
commission by rule may provide for the department to authorize a
racetrack association, as lessee, to contract for the lease of a
racetrack and the surrounding structures.
(b) The department [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
department [commission] may not approve a lease if the lessor and
lessee do not provide the required information.
SECTION 6.04. Section 2026.007(e), Occupations Code, is
amended to read as follows:
(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 department [executive director] may conduct inspections
of the premises and remedy emergency situations.
SECTION 6.05. Section 2026.008, Occupations Code, is
amended to read as follows:
Sec. 2026.008. SUPERVISION OF CONSTRUCTION, RENOVATION,
AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule 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 department
[commission];
(5) the inspection by the department [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 department [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 or department 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 department [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 under this
subtitle were met.
(e) If the department [commission] determines that the
racetrack association failed to comply with a requirement of this
section or a rule adopted under this section, the department
[commission] shall initiate an enforcement action against the
racetrack association. In addition to any other authorized
enforcement action, the department [commission] may rescind any
live or simulcast race date of any racetrack association that has
failed to comply with the requirements of this section.
SECTION 6.06. Section 2026.013(b), Occupations Code, is
amended to read as follows:
(b) The department [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.
SECTION 6.07. Section 2026.051, Occupations Code, is
amended to read as follows:
Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR
EJECTION. The commission shall adopt rules providing for the
exclusion or ejection from an enclosure where horse or greyhound
races are conducted, or from specified portions of an enclosure, of
a person:
(1) who has engaged in bookmaking, touting, or illegal
wagering;
(2) whose income is from illegal activities or
enterprises;
(3) who has been convicted of a violation of this
subtitle;
(4) who has been convicted of theft;
(5) who has been convicted under the penal law of
another jurisdiction for committing an act that would have
constituted a violation of any rule described in this section;
(6) who has committed a corrupt or fraudulent act in
connection with horse or greyhound racing or pari-mutuel wagering
or who has committed any act tending or intended to corrupt horse or
greyhound racing or pari-mutuel wagering;
(7) who is under suspension or has been excluded or
ejected from a racetrack by the department [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;
(10) [(11)] who is an agent [or habitual associate] of
a person excludable under this section; or
(11) [(12)] who has been convicted of a felony.
SECTION 6.08. Sections 2026.052(a) and (b), Occupations
Code, are amended to read as follows:
(a) A person who is excluded or ejected from an enclosure
under a commission rule may apply to the department [commission]
for a hearing on the question of the applicability of the rule to
that person.
(b) A proceeding [An application for a hearing] under this
section is [Subsection (a) constitutes] a contested case for
purposes of [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.
SECTION 6.09. Section 2026.102(a), Occupations Code, is
amended to read as follows:
(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 department [commission] under Subchapter A, Chapter 2029.
SECTION 6.10. Section 2026.103, Occupations Code, is
amended to read as follows:
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 department [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 department [commission]
determines additional or fewer days to be economically feasible and
in the best interest of this state and the racing industry, the
department [commission] shall grant the request.
(c) The department [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.
SECTION 6.11. Section 2026.105(b), Occupations Code, is
amended to read as follows:
(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 department [commission].
SECTION 6.12. Section 2026.106, Occupations Code, is
amended to read as follows:
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
executive director [commission] may waive or defer compliance with
the department's [commission's] standards regarding the physical
facilities or operations of a horse racetrack.
(b) The executive director [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 executive director [commission] defers
compliance, the department [commission] shall, when granting the
application, establish a schedule under which the license holder
must comply with the standards.
SECTION 6.13. Section 2026.107(b), Occupations Code, is
amended to read as follows:
(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 department [commission].
SECTION 6.14. Sections 2026.151 and 2026.152, Occupations
Code, are amended to read as follows:
Sec. 2026.151. DEPARTMENT [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 department [commission].
(b) The department [commission] shall refuse to approve a
concession or management contract if, in the sole discretion of the
department [commission], the background checks conducted under
Section 2025.056 reveal anything that might be detrimental to the
public interest or the racing industry.
Sec. 2026.152. DEPARTMENT [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
department [commission] shall review the security plan or contract
[in an executive session]. Documents submitted by an applicant to
the department [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 department [commission] shall attempt to ensure the
involvement of minority-owned businesses whenever possible.
SECTION 6.15. Section 2026.153(b), Occupations Code, is
amended to read as follows:
(b) The department [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.
ARTICLE 7. WAGERING
SECTION 7.01. Section 2027.001(b), Occupations Code, is
amended to read as follows:
(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 department [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.
SECTION 7.02. Sections 2027.003 and 2027.004, Occupations
Code, are amended to read as follows:
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
department [commission].
(b) The department [commission] may not require the use of a
particular make of equipment.
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) direct the department to 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 department [commission].
(c) The commission shall:
(1) adopt rules providing for collection, reporting,
and auditing of the transaction fee authorized under Subsection
(b); and
(2) direct the department to deposit the fee collected
under Subsection (b) to the credit of the general revenue fund.
SECTION 7.03. Section 2027.006(d), Occupations Code, is
amended to read as follows:
(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 department
[commission] under procedures prescribed by commission rule.
SECTION 7.04. Section 2027.052(a), Occupations Code, is
amended to read as follows:
(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 department [commission].
SECTION 7.05. The heading to Section 2027.053, Occupations
Code, is amended to read as follows:
Sec. 2027.053. DEPARTMENT [COMMISSION] APPROVAL REQUIRED
FOR PARI-MUTUEL POOL INCLUSION.
SECTION 7.06. Section 2027.053(a), Occupations Code, is
amended to read as follows:
(a) With department [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.
SECTION 7.07. Section 2027.054(c), Occupations Code, is
amended to read as follows:
(c) The department [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.
ARTICLE 8. PARI-MUTUEL POOLS, PURSES, AND FEES
SECTION 8.01. The heading to Subchapter A, Chapter 2028,
Occupations Code, is amended to read as follows:
SUBCHAPTER A. [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS
SECTION 8.02. Section 2028.001(a), Occupations Code, is
amended to read as follows:
(a) For any organization that receives funds generated by
live or simulcast pari-mutuel racing, the commission shall adopt
rules specifying the 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).
SECTION 8.03. Sections 2028.002 and 2028.003, Occupations
Code, are amended to read as follows:
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
department [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
department [commission].
(b) The department [commission] may review any record or
book of an organization that submits an independent audit to the
department [commission] as the department [commission] determines
necessary to confirm or further investigate the findings of an
audit or report.
Sec. 2028.003. SUSPENSION AND WITHHOLDING OF FUNDS. The
commission [by rule] may adopt rules authorizing the department to
suspend or withhold funds from an organization:
(1) that the department [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 department [commission].
SECTION 8.04. Section 2028.102(e), Occupations Code, is
amended to read as follows:
(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
department [commission].
SECTION 8.05. Sections 2028.103(a) and (a-1), Occupations
Code, are amended to read as follows:
(a) A horse racetrack association shall set aside for the
Texas-bred program and pay to the department [commission] an amount
equal to one percent of a live multiple two wagering pool and a live
multiple three wagering pool. From the set-aside amounts:
(1) 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.
(a-1) The department [commission] shall deposit money paid
to the commission under Subsection (a) into the Texas-bred
incentive fund established under Section 2028.301. The department
[commission] shall distribute the money collected under this
section and deposited into the fund to the appropriate state horse
breed registries for the Texas-bred program in accordance with
rules adopted under Subsection (c).
SECTION 8.06. Sections 2028.105(b), (d), and (d-1),
Occupations Code, are amended to read as follows:
(b) A horse racetrack association shall pay to the
department [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.
(d) The horse racetrack association shall pay to the
department [commission] for deposit into the Texas-bred incentive
fund established under Section 2028.301 and distribution to the
appropriate state horse breed registry the remaining 80 percent of
the total breakage to be allocated as follows:
(1) 40 percent to the owners of the accredited
Texas-bred horses that finish first, second, or third;
(2) 40 percent to the breeders of accredited
Texas-bred horses that finish first, second, or third; and
(3) 20 percent to the owner of the stallion standing in
this state at the time of conception whose Texas-bred get finish
first, second, or third.
(d-1) The department [commission] shall deposit the
portions of total breakage paid to the department [commission]
under Subsections (b) and (d) into the Texas-bred incentive fund
established under Section 2028.301. The department [commission]
shall distribute the money collected under this section and
deposited into the fund to the appropriate state horse breed
registries in accordance with this section and with rules adopted
by the commission under Section 2028.103.
SECTION 8.07. Section 2028.154(a), Occupations Code, is
amended to read as follows:
(a) A greyhound racetrack association shall pay 50 percent
of the breakage to the appropriate state greyhound breed
registry. Of that breakage percentage:
(1) 25 percent is to be used in stakes races; and
(2) 25 percent of that total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
the department [commission] for deposit into the Texas-bred
incentive fund established under Section 2028.301. The department
[commission] shall distribute the money collected under this
section and deposited into the fund to the state greyhound breed
registry for use in accordance with this section and commission
rules.
SECTION 8.08. Section 2028.201, Occupations Code, is
amended to read as follows:
Sec. 2028.201. RULES. (a) The commission shall adopt
rules relating to this subchapter and the oversight of the amounts
allocated under Sections 2028.202(b)(1), (2), and (3)
[2028.202(b)] and (c).
(b) The commission shall adopt rules relating to the
oversight of the amounts allocated under Section 2028.202(b)(4).
SECTION 8.09. Sections 2028.202(a), (a-1), and (b),
Occupations Code, are amended to read as follows:
(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 to the department [commission] for the
administration of this subtitle;
(2) an amount equal to 1.25 percent of each simulcast
cross-species pari-mutuel pool to the department [commission] for
the administration of this subtitle;
(3) for a horse racetrack association, an amount equal
to one percent of a multiple two wagering pool or multiple three
wagering pool as the amount set aside for the Texas-bred program to
be used as provided by Section 2028.103;
(4) for a greyhound racetrack association, an amount
equal to one percent of a multiple two wagering pool or a multiple
three wagering pool as the amount set aside for the Texas-bred
program for greyhound races, to be distributed and used in
accordance with commission rules adopted to promote greyhound
breeding in this state; and
(5) the remainder as the amount set aside for purses,
expenses, the sending track, and the receiving location under a
contract approved by the department [commission] between the
sending track and the receiving location.
(a-1) A racetrack association shall pay to the department
[commission] for deposit into the Texas-bred incentive fund
established under Section 2028.301 the shares to be distributed
under Subsections (a)(3) and (a)(4) for the Texas-bred program.
The department [commission] shall distribute the money collected
under this section and deposited into the fund to the appropriate
state breed registries for use under the Texas-bred program.
(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 deposited in the horse
industry escrow account as [escrowed with the commission in the
manner] provided by Section 2028.204.
SECTION 8.10. Sections 2028.203 and 2028.204, Occupations
Code, are amended to read as follows:
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 department [commission], from the horse industry escrow
[escrowed] account established under Section 2028.204
[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.
Sec. 2028.204. HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND
ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry
escrow account is a trust account in the department's registry
composed of money deposited to the account in accordance with this
subtitle.
(b) A greyhound racetrack association shall deposit into
the horse industry [an] escrow account [in the commission's
registry] the purse set aside under Section 2028.202(b)(4).
(c) [(b)] Any horse racetrack association in this state may
apply to the department [commission] for receipt of money in the
horse industry escrow account for use as purses. Any state horse
breed registry listed in Section 2030.002(a) may apply for receipt
of money in the account for any event that furthers the horse
industry. The department [commission]:
(1) shall determine the horse racetrack associations
and state horse breed registries to be allocated money from the
account and the percentages to be allocated, taking into
consideration purse levels, racing opportunities, and the
financial status of the requesting racetrack association or
requesting breed registry; and
(2) may not annually allocate more than 70 percent of
the amount deposited into the account to horse racetrack
associations for use as purses.
SECTION 8.11. Section 2028.2041, Occupations Code, is
amended to read as follows:
Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS IN HORSE
INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT
BALANCE. (a) In each state fiscal biennium, the comptroller shall
deposit the amounts allocated under Section 151.801(c-3), Tax Code,
into the horse industry escrow account established under Section
2028.204 [2028.204(b)], until the comptroller determines the
amount deposited into the account in that fiscal biennium equals
the greater of:
(1) the amount appropriated to the department
[commission] for the purposes of Section 2028.204 for that fiscal
biennium; or
(2) $50 million.
(b) Once the comptroller determines the greater of the
amount described by Subsection (a)(1) or (2) has been deposited
during a state fiscal biennium into the horse industry escrow
account established under Section 2028.204 [2028.204(b)], for the
remainder of that fiscal biennium the comptroller shall deposit the
amounts allocated under Section 151.801(c-3), Tax Code, into the
general revenue fund.
(c) The balance of the horse industry escrow account
established under Section 2028.204 [2028.204(b)] shall not exceed
$50 million.
SECTION 8.12. Section 2028.205, Occupations Code, is
amended to read as follows:
Sec. 2028.205. ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY
ESCROW ACCOUNT 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 department [commission]
for an allocation of up to 20 percent of the money in the horse
industry escrow [escrowed] account established under Section
2028.204 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 department's [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 department [commission] shall allocate amounts
from the horse industry escrow [escrowed] account as the department
[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] account that is
attributable to the wagering on the interstate cross-species
simulcast signal at the greyhound racetrack.
(c) Money allocated by the department [commission] under
this section may be used by the racetrack association for any
purpose.
SECTION 8.13. Section 2028.301, Occupations Code, is
amended to read as follows:
Sec. 2028.301. TEXAS-BRED INCENTIVE FUND. (a) The
department [commission] shall deposit money set aside for the
Texas-bred program or set aside for use by state breed registries
under this chapter into an escrow account in the state treasury in
the registry of the department [commission] to be known as the
Texas-bred incentive fund.
(b) The department [commission] shall distribute money from
the Texas-bred incentive fund in accordance with this chapter and
commission rules.
SECTION 8.14. Chapter 2028, Occupations Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. NATIONAL EVENT INCENTIVES
Sec. 2028.401. NATIONAL EVENT INCENTIVES. (a) In this
section:
(1) "Breeders' Cup costs" means all costs for capital
improvements and extraordinary expenses reasonably incurred for
the operation of the Breeders' Cup races, including purses offered
on other days in excess of the purses that the host association is
required to pay by this subtitle.
(2) "Breeders' Cup races" means a series of
thoroughbred races known as the Breeders' Cup Championship races
conducted annually by Breeders' Cup Limited on a day known as
Breeders' Cup Championship day.
(3) "Development organization" means an organization
whose primary purpose is the marketing, promotion, or economic
development of a city, county, or region of the state, including
chambers of commerce, convention and visitors bureaus, and sports
commissions.
(4) "Political subdivision" means a city, county, or
other political subdivision of the state and includes any entity
created by a political subdivision.
(b) An association conducting the Breeders' Cup races may
apply to the reimbursement of Breeders' Cup costs amounts that
would otherwise be set aside by the association for the state under
Sections 2028.051 and 2028.202(a)(1) during the year in which the
association hosts the Breeders' Cup races, limited to an amount
equal to the lesser of the aggregate amount contributed to pay
Breeders' Cup costs by political subdivisions and development
organizations or $2 million. Beginning on January 1 of the year for
which the association has been officially designated to host the
Breeders' Cup races, amounts that would otherwise be set aside by
the association for the state during that year under Sections
2028.051 and 2028.202(a)(1) shall be set aside, in accordance with
procedures prescribed by the comptroller, for deposit into the
Breeders' Cup Developmental Account. The Breeders' Cup
Developmental Account is an account in the general revenue fund.
The department shall administer the account. Money in the account
may be appropriated only to the department and may be used only for
the purposes specified in this section. The account is exempt from
the application of Section 403.095, Government Code.
(c) The department shall make disbursements from the
Breeders' Cup Developmental Account to reimburse Breeders' Cup
costs actually incurred and paid by the association, after the
association files a request for reimbursement. Disbursements from
the account may not at any time exceed the aggregate amount actually
paid for Breeders' Cup costs by political subdivisions and
development organizations, as certified by the department to the
comptroller, or $2 million, whichever is less.
(d) Not later than January 31 of the year following the year
in which the association hosts the Breeders' Cup races, the
association shall submit to the department a report that shows:
(1) the total amount of Breeders' Cup costs incurred
and paid by the association;
(2) the total payments made by political subdivisions
and development organizations for Breeders' Cup costs; and
(3) any other information requested by the commission.
(e) Following receipt of the report required by Subsection
(d), the department shall take any steps it considers appropriate
to verify the report. Not later than March 31 of the year following
the event, the department shall transfer to the credit of the
general revenue fund any balance remaining in the Breeders' Cup
Developmental Account after reimbursement of any remaining
Breeders' Cup costs authorized under this section.
(f) In addition to the authority otherwise granted in this
subtitle, the commission and the comptroller may adopt rules for
the administration of this section as follows:
(1) the commission may adopt rules relating to:
(A) auditing or other verification of Breeders'
Cup costs and amounts paid or set aside by political subdivisions
and development organizations; and
(B) the disbursement of funds from the Breeders'
Cup Developmental Account; and
(2) the comptroller may adopt rules relating to:
(A) procedures and requirements for transmitting
or otherwise delivering to the treasury the money set aside under
this section; and
(B) depositing funds into the Breeders' Cup
Developmental Account.
(g) The commission may adopt rules to facilitate the conduct
of the Breeders' Cup races, including the adoption of rules or
waiver of existing rules relating to the overall conduct of racing
during the Breeders' Cup races in order to assure the integrity of
the races, licensing for all participants, special stabling and
training requirements for foreign horses, and commingling of
pari-mutuel pools.
(h) To the extent of any conflict between this section and
another provision of this subtitle, this section prevails.
SECTION 8.15. Section 2029.001, Occupations Code, is
amended to read as follows:
Sec. 2029.001. ALLOCATION OF HORSE RACING DAYS; PROHIBITED
RACING DAYS. (a) The department [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
department [commission] shall consider live race dates separately
from simulcast race dates.
(c) The commission by rule may prohibit racing on Sunday
unless the prohibition would conflict with another provision of
this subtitle. The commission may delegate to the executive
director the commission's authority under this subsection.
ARTICLE 9. ALLOCATION OF RACING DAYS
SECTION 9.01. Sections 2029.002(a) and (c), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall grant to each
racetrack association additional horse racing days during a horse
race meeting to be conducted as charity days. The department
[commission] shall grant to each class 1 racetrack and to each class
2 racetrack at least two and not more than five additional days.
(c) The department [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.
SECTION 9.02. Section 2029.003, Occupations Code, is
amended to read as follows:
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 department [commission].
(b) In granting approval under Subsection (a), the
department [commission] shall consider:
(1) the availability of competitive horses;
(2) economic feasibility; and
(3) public interest.
SECTION 9.03. Sections 2029.052(a) and (b), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall grant not less than
five additional greyhound racing days during a greyhound race
meeting to be conducted as charity days.
(b) The department [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.
SECTION 9.04. Section 2029.053, Occupations Code, is
amended to read as follows:
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 department [commission], the executive
director [commission] in the executive director's [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.
ARTICLE 10. TEXAS-BRED HORSES AND GREYHOUNDS
SECTION 10.01. Section 2030.001(b), Occupations Code, is
amended to read as follows:
(b) Rules adopted under this section are subject to approval
by the department [commission].
SECTION 10.02. Section 2030.002(b), Occupations Code, is
amended to read as follows:
(b) The appropriate state horse breed registry shall act in
an advisory capacity to each racetrack association and to the
department [commission] for the purpose of administering Sections
2030.003 and 2030.004.
SECTION 10.03. Sections 2030.005 and 2030.006, Occupations
Code, are amended to read as follows:
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 department [commission] under Section 2029.003.
(b) The commission by rule [or by order] may allow for an
exception to Subsection (a) if an insufficient number of horses of a
breed are available to provide sufficient competition. The
commission may delegate to the executive director the commission's
authority under this subsection.
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 department [commission] under Section
2029.003.
SECTION 10.04. Section 2030.051(b), Occupations Code, is
amended to read as follows:
(b) Rules adopted under this section are subject to approval
by the department [commission].
ARTICLE 11. TEXAS DERBIES
SECTION 11.01. Section 2031.001, Occupations Code, is
amended to read as follows:
Sec. 2031.001. ESTABLISHMENT OF TEXAS DERBIES. (a) The
commission by rule 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 department [commission].
The department [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 department [commission] may sell the right to name a
Texas Derby. The department [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.
SECTION 11.02. Section 2031.003(a), Occupations Code, is
amended to read as follows:
(a) For each Texas Derby, the department [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.
SECTION 11.03. Sections 2031.004(a) and (e), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall establish a Texas
Derby escrow purse fund.
(e) The department [commission] may not:
(1) use funds from the accredited Texas-bred program
under Subchapter A, Chapter 2030, or the horse industry escrow
[escrowed purse] account established 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.
ARTICLE 12. LIVESTOCK SHOWS, EXHIBITS, AND FAIRS
SECTION 12.01. Chapter 2032, Occupations Code, is amended
by adding Section 2032.004 to read as follows:
Sec. 2032.004. RULES. The commission may adopt rules as
necessary to:
(1) administer this chapter; and
(2) ensure public safety and welfare.
ARTICLE 13. CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY
POWERS
SECTION 13.01. Section 2033.006(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense if the person knowingly
possesses or displays a credential issued by the department or a
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.
SECTION 13.02. Sections 2033.007(a) and (b), Occupations
Code, are amended to read as follows:
(a) For purposes of this section, a request is lawful if it
is made:
(1) at any time by:
(A) the department [commission];
(B) an authorized department [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 issued by the department to
another person; or
(2) give the person's name, residence address, or date
of birth to another person.
SECTION 13.03. Section 2033.008(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense if the person knowingly
wagers on the result of a horse or greyhound race conducted in this
state that:
(1) is held on an American Indian reservation or on
American Indian trust land located in this state; and
(2) is not held under the supervision of the
department [commission] under rules adopted under this subtitle.
SECTION 13.04. Section 2033.009(a), Occupations Code, is
amended to read as follows:
(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 department [commission] from
entering a racetrack.
SECTION 13.05. Section 2033.012(c), Occupations Code, is
amended to read as follows:
(c) An offense under this section is a state jail felony
unless the statement was material in a department [commission]
action relating to a racetrack license, in which event the offense
is a felony of the third degree.
SECTION 13.06. Section 2033.013(c), Occupations Code, is
amended to read as follows:
(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 department employee; and
(B) knowingly represents that a commission
member or department employee or a person licensed by the
department [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.
SECTION 13.07. Sections 2033.018(a) and (b), Occupations
Code, are amended to read as follows:
(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 by
the department under this subtitle; or
(2) enters a racetrack under the authority of a
license or other credential alleged to have been issued by the
department 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 department [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.
SECTION 13.08. Sections 2033.021, 2033.051, and 2033.052,
Occupations Code, are amended to read as follows:
Sec. 2033.021. DEPARTMENT [COMMISSION] AUTHORITY. This
subchapter does not restrict the department's [commission's]
administrative authority to enforce this subtitle or commission
rules to the fullest extent authorized by this subtitle.
Sec. 2033.051. IMPOSITION OF PENALTY. If the commission or
the executive director 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 or the
executive director may assess an administrative penalty against
that person as provided by this subchapter or Subchapter F, Chapter
51.
Sec. 2033.052. AMOUNT OF PENALTY. (a) Notwithstanding
Subchapter F, Chapter 51, the [The] commission or the executive
director 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
or the executive director shall consider the seriousness of the
violation.
SECTION 13.09. Section 2033.057(a), Occupations Code, is
amended to read as follows:
(a) A complaint alleging a violation of this subtitle may be
instituted by the Department of Public Safety, the department
[commission], or the attorney general.
SECTION 13.10. Subchapter B, Chapter 2033, Occupations
Code, is amended by adding Section 2033.058 to read as follows:
Sec. 2033.058. DISPOSITION OF ADMINISTRATIVE PENALTY. The
commission shall remit an administrative penalty collected under
this subtitle to the comptroller for deposit in the general revenue
fund.
SECTION 13.11. Section 2033.106(a), Occupations Code, is
amended to read as follows:
(a) If the executive director reasonably believes that a
person has violated a final and enforceable cease and desist or
emergency 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.
SECTION 13.12. Section 2033.151, Occupations Code, is
amended to read as follows:
Sec. 2033.151. DISCIPLINARY ACTIONS. (a) The commission
may [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 department
[commission] on matters that are the basis of the probation.
(c) A disciplinary proceeding under this subtitle is
governed by:
(1) Chapter 51; and
(2) commission rules adopted under Chapter 51.
SECTION 13.13. The heading to Section 2033.152, Occupations
Code, is amended to read as follows:
Sec. 2033.152. PROCEEDING FOR DISCIPLINARY ACTION
[HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW
LICENSE.
SECTION 13.14. Section 2033.152(b), Occupations Code, is
amended to read as follows:
(b) A proceeding [Proceedings] for a disciplinary action,
other than those conducted by a steward or judge, in which the
commission proposes to suspend, revoke, or refuse to renew a
person's license is [are] governed by Chapter 2001, Government
Code.
SECTION 13.15. Section 2033.153, Occupations Code, is
amended to read as follows:
Sec. 2033.153. INJUNCTION. The department [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.
SECTION 13.16. Section 2033.154(b), Occupations Code, is
amended to read as follows:
(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 department [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.
ARTICLE 14. UNLAWFUL INFLUENCE ON RACING
SECTION 14.01. Section 2034.001, Occupations Code, is
amended by amending Subsections (b) and (c) and adding Subsection
(e) to read as follows:
(b) The rules adopted under this section by the commission
shall require testing to determine whether a prohibited substance
has been used.
(c) The [commission's] rules adopted under this section
must require state-of-the-art testing methods. The testing may:
(1) be prerace or postrace as determined by the
department [commission]; and
(2) be by an invasive or noninvasive method.
(e) The commission shall adopt rules regarding disciplinary
actions under this chapter, including the right of appeal to the
commission from a disciplinary action under Section 2034.006.
SECTION 14.02. Section 2034.002, Occupations Code, is
amended to read as follows:
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 department
[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
department [commission].
SECTION 14.03. Sections 2034.003(c), (d), and (e),
Occupations Code, are amended to read as follows:
(c) Charges for services performed under this section must
be forwarded to the department [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 department [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 department [commission]
shall forward a copy of the charges to the racetrack association for
immediate payment.
SECTION 14.04. Sections 2034.005(a) and (b), Occupations
Code, are amended to read as follows:
(a) The department [commission] may require urine samples
to be frozen for a period necessary to allow any follow-up testing
to detect and identify a prohibited substance. Any other specimen
shall be maintained for testing purposes in a manner required by
commission rule.
(b) If a test sample or specimen shows the presence of a
prohibited substance, the entire sample, including any split
portion remaining in the custody of the department [commission],
shall be maintained until final disposition of the matter.
SECTION 14.05. Section 2034.007, Occupations Code, is
amended to read as follows:
Sec. 2034.007. DISCIPLINARY ACTION FOR RULE VIOLATION OF
PROHIBITED DEVICE OR SUBSTANCE. In addition to any other
disciplinary action authorized by Chapter 51, this subtitle, or
commission rule, a [A] person who violates a rule adopted under this
chapter may:
(1) have any license issued to the person by the
department [commission] revoked or suspended; or
(2) be barred for life or any other period from
applying for or receiving a license issued by the department
[commission] or entering any portion of a racetrack.
ARTICLE 15. LOCAL OPTION ELECTION TO LEGALIZE PARI-MUTUEL WAGERING
SECTION 15.01. Section 2035.001(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] may not issue a racetrack
license or accept a license application for a racetrack to be
located in a county until the commissioners court has certified to
the secretary of state that the qualified voters of the county have
approved the legalization of pari-mutuel wagering on horse races or
greyhound races in the county at an election held under this
chapter.
SECTION 15.02. Section 2035.052, Occupations Code, is
amended to read as follows:
Sec. 2035.052. PARTIES. Any person who is licensed or who
has submitted to the department [commission] an application to be
licensed in any capacity under this subtitle may become a named
party to the contest proceedings by pleading to the petition on or
before the time set for hearing and trial as provided by Section
2035.053(b) or after that time by intervention on leave of court.
ARTICLE 16. CONFORMING AMENDMENTS
SECTION 16.01. Section 411.096(a), Government Code, is
amended to read as follows:
(a) The Texas [Racing] Commission of Licensing and
Regulation and the Texas Department of Licensing and Regulation are
[is] entitled to obtain from the department criminal history record
information maintained by the department that pertains to a person
who is:
(1) appointed to the commission;
(2) an applicant for employment by the commission; or
(3) an applicant for a license under Subtitle A-1,
Title 13, Occupations Code (Texas Racing Act), including an
occupational license described by Section 2025.251, Occupations
Code.
SECTION 16.02. Section 151.801(c-3), Tax Code, is amended
to read as follows:
(c-3) Subject to the limitation imposed under Section
2028.2041, Occupations Code, an amount equal to the proceeds from
the collection of the taxes imposed by this chapter on the sale,
storage, or use of horse feed, horse supplements, horse tack, horse
bedding and grooming supplies, and other taxable expenditures
directly related to horse ownership, riding, or boarding shall be
deposited to the credit of the horse industry escrow account
administered by the Texas Department of Licensing and Regulation
[Racing Commission] and established under Section 2028.204,
Occupations Code.
ARTICLE 17. REPEALER
SECTION 17.01. (a) The following provisions of the
Occupations Code are repealed:
(1) Sections 2022.001(b), (c), (d), (e), and (f);
(2) Section 2022.002(b);
(3) Sections 2022.003, 2022.004, 2022.005, 2022.006,
and 2022.007;
(4) Sections 2022.009(b) and (c);
(5) Sections 2022.010, 2022.011, 2022.012, 2022.013,
2022.014, and 2022.051;
(6) Sections 2022.052(a) and (b);
(7) Sections 2022.053, 2022.054, 2022.055, 2022.056,
2022.057, 2022.101, 2022.102, and 2022.106;
(8) Sections 2023.004(b), (c), and (f);
(9) Section 2023.009;
(10) Section 2025.204(e);
(11) Section 2025.258(b);
(12) Sections 2033.053, 2033.054, 2033.055, and
2033.056;
(13) Section 2033.057(b); and
(14) Sections 2033.152(a) and (c).
(b) Title 6, Vernon's Texas Civil Statutes, is repealed.
ARTICLE 18. TRANSITION AND SAVINGS PROVISIONS
SECTION 18.01. (a) On the effective date of this Act, the
Texas Racing Commission is abolished but continues in existence
until December 1, 2021, for the sole purpose of transferring
obligations, property, rights, powers, and duties to the Texas
Department of Licensing and Regulation. The Texas Department of
Licensing and Regulation assumes all of the obligations, property,
rights, powers, and duties of the Texas Racing Commission as they
exist immediately before the effective date of this Act. All
unexpended funds appropriated to the Texas Racing Commission are
transferred to the Texas Department of Licensing and Regulation.
(b) The Texas Racing Commission and the Texas Department of
Licensing and Regulation shall, in consultation with appropriate
state entities, ensure that the transfer of the obligations,
property, rights, powers, and duties of the Texas Racing Commission
to the Texas Department of Licensing and Regulation is completed
not later than December 1, 2021.
(c) All rules of the Texas Racing Commission are continued
in effect as rules of the Texas Department of Licensing and
Regulation until superseded by a rule of the Texas Commission of
Licensing and Regulation. A license issued by the Texas Racing
Commission is continued in effect as provided by the law in effect
immediately before the effective date of this Act. An application
for a license, endorsement, or certificate of registration pending
on the effective date of this Act is continued without change in
status after the effective date of this Act. A complaint,
investigation, contested case, or other proceeding pending on the
effective date of this Act is continued without change in status
after the effective date of this Act.
(d) Not later than September 1, 2022, the Texas Commission
of Licensing and Regulation shall adopt any rules necessary to
implement the changes in law made by this Act to Subtitle A-1, Title
13, Occupations Code.
(e) Unless the context indicates otherwise, a reference to
the Texas Racing Commission in a law or administrative rule means
the Texas Department of Licensing and Regulation.
SECTION 18.02. (a) Not later than December 1, 2021, the
presiding officer of the Texas Commission of Licensing and
Regulation, with the approval of the Texas Commission of Licensing
and Regulation, shall appoint members to the Texas Racing Advisory
Board in accordance with Section 2022.001, Occupations Code, as
amended by this Act. A member of the Texas Racing Commission whose
term expired under Section 18.01 of this Act is eligible for
appointment to the advisory board.
(b) The members of the Texas Racing Commission whose terms
expire under Section 18.01 of this Act shall continue to provide
advice to the Texas Department of Licensing and Regulation until a
majority of the members of the Texas Racing Advisory Board are
appointed under Subsection (a) of this section and qualified.
SECTION 18.03. (a) Not later than September 1, 2023, the
executive director of the Texas Department of Licensing and
Regulation in accordance with Section 51.202(c), Occupations Code,
shall determine with reasonable accuracy the cost to the department
of the racing program and activities for which a fee is charged.
(b) The executive director of the Texas Department of
Licensing and Regulation, on development of the cost management
procedures, shall make recommendations to the Texas Commission of
Licensing and Regulation for review and consideration.
SECTION 18.04. The changes in law made by this Act apply to
revenue received from the imposition of an administrative penalty
on or after the effective date of this Act, regardless of whether
the penalty was imposed before, on, or after the effective date of
this Act.
SECTION 18.05. (a) A violation of a law that is repealed by
this Act is governed by the law in effect when the violation was
committed, and the former law is continued in effect for that
purpose.
(b) For purposes of this section, a violation was committed
before the effective date of this Act if any element of the
violation occurred before that date.
SECTION 18.06. To the extent of any conflict, this Act
prevails over another Act of the 87th Legislature, Regular Session,
2021, relating to nonsubstantive additions to and corrections in
enacted codes.
SECTION 18.07. The Texas Legislative Council, with the
assistance of the Sunset Advisory Commission, shall prepare for
consideration by the 88th Legislature a nonsubstantive revision of
the statutes of this state as necessary to reflect the changes in
law made by this Act.
ARTICLE 19. EFFECTIVE DATE
SECTION 19.01. This Act takes effect September 1, 2021.