Texas 2009 - 81st Regular

Texas Senate Bill SB1013 Compare Versions

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1	1	81R1847 GCB-D
2	2	By: Hinojosa S.B. No. 1013
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas Racing
8	8	Commission, the abolishment of the Equine Research Account Advisory
9	9	Committee, and the authority of Texas AgriLife Research.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2.071, Texas Racing Act (Article 179e,
12	12	Vernon's Texas Civil Statutes), is amended to read as follows:
13	13	Sec. 2.071. CONFLICT OF INTEREST. (a) A person may not be
14	14	a member of the commission and may not be a commission employee
15	15	employed in a "bona fide executive, administrative, or professional
16	16	capacity," as that phrase is used for purposes of establishing an
17	17	exemption to the overtime provisions of the federal Fair Labor
18	18	Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
19	19	(1) the person is an [An] officer, employee, or paid
20	20	consultant of a Texas trade association in the field of horse or
21	21	greyhound racing or breeding; or
22	22	(2) the person's [may not be a member of the commission
23	23	or an employee of the commission who is exempt from the state's
24	24	position classification plan or is compensated at or above the
25	25	amount prescribed by the General Appropriations Act for step 1,
26	26	salary group 17, of the position classification salary schedule.
27	27	[(b) A person who is the] spouse is [of] an officer,
28	28	manager, or paid consultant of a Texas trade association in the
29	29	field of horse or greyhound racing or breeding [may not be a member
30	30	of the commission and may not be an employee of the commission who
31	31	is exempt from the state's position classification plan or is
32	32	compensated at or above the amount prescribed by the General
33	33	Appropriations Act for step 1, salary group 17, of the position
34	34	classification salary schedule].
35	35	(b) A person may not be a member of the commission or act as
36	36	the general counsel to the commission if the person is required to
37	37	register as a lobbyist under Chapter 305, Government Code, because
38	38	of the person's activities for compensation on behalf of a
39	39	profession related to the operation of the commission.
40	40	(c) In [For the purposes of] this section, "Texas trade
41	41	association" means [a Texas trade association is] a cooperative and
42	42	voluntarily joined statewide [nonprofit] association of business
43	43	or professional competitors in this state designed to assist its
44	44	members and its industry or profession in dealing with mutual
45	45	business or professional problems and in promoting their common
46	46	interest.
47	47	SECTION 2. Article 2, Texas Racing Act (Article 179e,
48	48	Vernon's Texas Civil Statutes), is amended by adding Section 2.25
49	49	to read as follows:
50	50	Sec. 2.25. USE OF TECHNOLOGY. The commission shall
51	51	implement a policy requiring the commission to use appropriate
52	52	technological solutions to improve the commission's ability to
53	53	perform its functions. The policy must ensure that the public is
54	54	able to interact with the commission on the Internet.
55	55	SECTION 3. Article 2, Texas Racing Act (Article 179e,
56	56	Vernon's Texas Civil Statutes), is amended by adding Section 2.26
57	57	to read as follows:
58	58	Sec. 2.26. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE
59	59	RESOLUTION PROCEDURES. (a) The commission shall develop and
60	60	implement a policy to encourage the use of:
61	61	(1) negotiated rulemaking procedures under Chapter
62	62	2008, Government Code, for the adoption of commission rules; and
63	63	(2) appropriate alternative dispute resolution
64	64	procedures under Chapter 2009, Government Code, to assist in the
65	65	resolution of internal and external disputes under the commission's
66	66	jurisdiction.
67	67	(b) The commission's procedures relating to alternative
68	68	dispute resolution shall conform, to the extent possible, to any
69	69	model guidelines issued by the State Office of Administrative
70	70	Hearings for the use of alternative dispute resolution by state
71	71	agencies.
72	72	(c) The commission shall designate a trained person to:
73	73	(1) coordinate the implementation of the policy
74	74	adopted under Subsection (a) of this section;
75	75	(2) serve as a resource for any training needed to
76	76	implement the procedures for negotiated rulemaking or alternative
77	77	dispute resolution; and
78	78	(3) collect data concerning the effectiveness of those
79	79	procedures, as implemented by the commission.
80	80	SECTION 4. Section 3.07(e), Texas Racing Act (Article 179e,
81	81	Vernon's Texas Civil Statutes), is amended to read as follows:
82	82	(e) To pay the charges associated with the medication or
83	83	drug testing, an association may use the money held by the
84	84	association to pay outstanding tickets and pari-mutuel vouchers.
85	85	If additional amounts are needed to pay the charges, the
86	86	association shall pay those additional amounts. [If the amount
87	87	held exceeds the amount needed to pay the charges, the association
88	88	shall pay the excess to the commission in accordance with Section
89	89	11.08 of this Act.]
90	90	SECTION 5. Sections 5.03(a) and (c), Texas Racing Act
91	91	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
92	92	as follows:
93	93	(a) An applicant for any license or license renewal under
94	94	this Act must, except as allowed under Section 7.10 of this Act,
95	95	submit to the commission a complete set of fingerprints of the
96	96	individual natural person applying for the license or license
97	97	renewal or, if the applicant is not an individual natural person, a
98	98	complete set of fingerprints of each officer or director and of each
99	99	person owning an interest of at least five percent in the applicant.
100	100	The Department of Public Safety may request any person owning any
101	101	interest in an applicant for a racetrack license to submit a
102	102	complete set of fingerprints.
103	103	(c) A peace officer of this or any other state, or any
104	104	district office of the commission, shall take the fingerprints of
105	105	an applicant for a license or license renewal on forms approved and
106	106	furnished by the Department of Public Safety and shall immediately
107	107	deliver them to the commission.
108	108	SECTION 6. Article 6, Texas Racing Act (Article 179e,
109	109	Vernon's Texas Civil Statutes), is amended by adding Section 6.032
110	110	to read as follows:
111	111	Sec. 6.032. BOND. (a) The commission may require a holder
112	112	of a racetrack license or an applicant for a racetrack license to
113	113	post security in an amount determined by commission rule to
114	114	adequately ensure the license holder's or applicant's compliance
115	115	with this Act and commission rules.
116	116	(b) Cash, cashier's checks, surety bonds, irrevocable bank
117	117	letters of credit, United States Treasury bonds that are readily
118	118	convertible to cash, or irrevocable assignments of federally
119	119	insured deposits in banks, savings and loan institutions, and
120	120	credit unions are acceptable as security for purposes of this
121	121	section. The security must be:
122	122	(1) conditioned on compliance with this Act and
123	123	commission rules adopted under this Act; and
124	124	(2) returned after the conditions of the security are
125	125	met.
126	126	SECTION 7. The heading to Section 6.04, Texas Racing Act
127	127	(Article 179e, Vernon's Texas Civil Statutes), is amended to read
128	128	as follows:
129	129	Sec. 6.04. ISSUANCE OF LICENSE[; BOND].
130	130	SECTION 8. Article 6, Texas Racing Act (Article 179e,
131	131	Vernon's Texas Civil Statutes), is amended by adding Section 6.0601
132	132	to read as follows:
133	133	Sec. 6.0601. LICENSE REVIEW AND RENEWAL; FEES. (a) The
134	134	commission by rule shall establish a renewal and review process for
135	135	racetrack licenses issued under this article.
136	136	(b) The commission shall review each racetrack license
137	137	designated by the commission as active not less than once every five
138	138	years, except as otherwise provided by this section.
139	139	(c) The commission shall annually review a racetrack
140	140	license designated by the commission as inactive.
141	141	(d) The commission by rule may adopt a system under which
142	142	racetrack licenses expire on various dates in a year or in various
143	143	years. For the year in which the license expiration date is
144	144	changed, license fees shall be prorated on a monthly basis so that
145	145	each license holder pays only that portion of the license fee
146	146	allocable to the number of months during which the license is valid.
147	147	On renewal of the license on the new expiration date, the total
148	148	license renewal fee is payable.
149	149	(e) The commission may require a license holder who is
150	150	renewing a racetrack license or who is subject to commission review
151	151	of the racetrack license to provide any information that would be
152	152	required to be provided in connection with an original license
153	153	application under this Act.
154	154	(f) In reviewing a racetrack license or in determining
155	155	whether to renew a racetrack license, the commission shall
156	156	consider:
157	157	(1) the license holder's financial stability and
158	158	ability to conduct live racing events; and
159	159	(2) other factors considered in the issuance of the
160	160	initial license.
161	161	(g) The commission may refuse to renew a racetrack license
162	162	or may revoke a license if, after notice and a hearing, the
163	163	commission determines under Subsection (f) of this section that
164	164	allowing the license holder to hold the racetrack license is not in
165	165	the best interests of the racing industry or the public.
166	166	(h) The commission may refuse to renew a racetrack license
167	167	or may revoke a license if, after notice and hearing, the commission
168	168	finds that the applicant has violated this Act or a commission rule.
169	169	(i) The commission shall set and collect renewal and review
170	170	fees in amounts reasonable and necessary to cover the costs of
171	171	administering and enforcing this Act.
172	172	(j) The commission shall consult with members of the racing
173	173	industry and other key stakeholders in developing the racetrack
174	174	license renewal and review process under this section.
175	175	SECTION 9. Article 6, Texas Racing Act (Article 179e,
176	176	Vernon's Texas Civil Statutes), is amended by adding Section 6.0602
177	177	to read as follows:
178	178	Sec. 6.0602. DISCIPLINARY ACTION. (a) The commission by
179	179	rule shall establish procedures for disciplinary action against a
180	180	racetrack license holder.
181	181	(b) If, after notice and hearing, the commission finds that
182	182	a racetrack license holder or a person employed by the racetrack has
183	183	violated this Act or a commission rule or if the commission finds
184	184	during a review or renewal that the racetrack is ineligible for a
185	185	license under this article, the commission may:
186	186	(1) revoke, suspend, or refuse to renew the racetrack
187	187	license;
188	188	(2) impose an administrative penalty as provided under
189	189	Section 15.03 of this Act; or
190	190	(3) take any other action as provided by commission
191	191	rule.
192	192	SECTION 10. The heading to Section 6.18, Texas Racing Act
193	193	(Article 179e, Vernon's Texas Civil Statutes), is amended to read
194	194	as follows:
195	195	Sec. 6.18. ANNUAL FEE FOR RACETRACK [TERM OF] LICENSE[;
196	196	RESTRICTIONS ON RACETRACKS].
197	197	SECTION 11. Section 6.18(b), Texas Racing Act (Article
198	198	179e, Vernon's Texas Civil Statutes), is amended to read as
199	199	follows:
200	200	(b) The commission may prescribe a reasonable annual fee to
201	201	be paid by each racetrack licensee. The fee must be in an amount
202	202	sufficient to provide that the total amount of fees imposed under
203	203	this section, together with the license fees prescribed under
204	204	Section 5.01(b) of this Act and the renewal and review fees
205	205	prescribed under Section 6.0601(i) of this Act, is sufficient to
206	206	pay the costs of administering and enforcing this Act.
207	207	SECTION 12. Section 7.01, Texas Racing Act (Article 179e,
208	208	Vernon's Texas Civil Statutes), is amended to read as follows:
209	209	Sec. 7.01. LICENSE REQUIRED. (a) Except as provided by
210	210	this section, a [A] person may not participate in racing with
211	211	pari-mutuel wagering other than as a spectator or as a person
212	212	placing a wager without first obtaining a license from the
213	213	commission. A person may not engage in any occupation for which
214	214	commission rules require a license under this Act without first
215	215	obtaining a license from the commission.
216	216	(b) The commission by rule shall categorize the occupations
217	217	of racetrack employees and determine the occupations that afford
218	218	the employee an opportunity to influence racing with pari-mutuel
219	219	wagering. The rules must require the following employees to be
220	220	licensed under this Act:
221	221	(1) an employee who works in an occupation determined
222	222	by the commission to afford the employee an opportunity to
223	223	influence racing with pari-mutuel wagering; or
224	224	(2) an employee who will likely have significant
225	225	access to the backside of a racetrack or to restricted areas of the
226	226	frontside of a racetrack.
227	227	(c) A racetrack licensed under this Act is responsible for
228	228	ensuring that its employees comply with this Act and commission
229	229	rules. The commission may impose disciplinary action against a
230	230	licensed racetrack for violations of this Act and commission rules
231	231	by its employees as provided by Section 6.0602 of this article.
232	232	SECTION 13. Section 7.07, Texas Racing Act (Article 179e,
233	233	Vernon's Texas Civil Statutes), is amended by amending Subsection
234	234	(a) and adding Subsection (a-1) to read as follows:
235	235	(a) A license issued under this article is valid for a
236	236	period set by the commission not to exceed 36 months following the
237	237	date of its issuance. It is renewable on application, satisfactory
238	238	results of a criminal history information record check, and payment
239	239	of the fee in accordance with the rules of the commission.
240	240	(a-1) The commission shall obtain criminal history record
241	241	information on each applicant renewing an occupational license
242	242	under this article.
243	243	SECTION 14. Section 11.01, Texas Racing Act (Article 179e,
244	244	Vernon's Texas Civil Statutes), is amended by amending Subsection
245	245	(a) and adding Subsection (a-1) to read as follows:
246	246	(a) The commission shall adopt rules to regulate wagering on
247	247	greyhound races and horse races under the system known as
248	248	pari-mutuel wagering. Wagering may be conducted only by an
249	249	association within its enclosure. A person may not accept, in
250	250	person, by telephone, or over the Internet, a wager for a horse race
251	251	or greyhound race conducted inside or outside this state from a
252	252	person in this state unless the wager is authorized under this Act.
253	253	(a-1) The commission may commission as many investigators
254	254	as the commission determines necessary to enforce this Act and the
255	255	rules of the commission. Each investigator shall take the
256	256	constitutional oath of office and file it with the commission. Each
257	257	commissioned investigator has the powers of a peace officer.
258	258	SECTION 15. Sections 11.04(a) and (c), Texas Racing Act
259	259	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
260	260	as follows:
261	261	(a) Only a person inside the enclosure where both live and
262	262	simulcast race meetings are authorized may wager on the result of a
263	263	live or simulcast race presented by the association in accordance
264	264	with commission rules. Except as provided by this section, a person
265	265	may not place, in person, by telephone, or over the Internet, a
266	266	wager for a horse race or greyhound race conducted inside or outside
267	267	this state. The commission shall adopt rules to prohibit wagering
268	268	by employees of the commission and to regulate wagering by persons
269	269	licensed under this Act.
270	270	(c) The commission shall adopt rules prohibiting an
271	271	association from accepting a wager made on credit and shall adopt
272	272	rules providing for the use of automatic banking machines within
273	273	the enclosure. The commission shall limit the use of an automatic
274	274	banking machine to [:
275	275	[(1)] allow a person to have access to only the
276	276	person's checking account at a bank or other financial
277	277	institution[; and
278	278	[(2) deliver no more than $200].
279	279	SECTION 16. Section 11.05, Texas Racing Act (Article 179e,
280	280	Vernon's Texas Civil Statutes), is amended to read as follows:
281	281	Sec. 11.05. UNLAWFUL WAGERING. A person shall not wager on
282	282	the result of a greyhound race or horse race in this state except as
283	283	permitted by this Act. A person who is not an association under
284	284	this Act may not accept from a Texas resident while the resident is
285	285	in this state a wager on the result of a greyhound race or horse race
286	286	conducted inside or outside this state.
287	287	SECTION 17. Section 18.01(a), Texas Racing Act (Article
288	288	179e, Vernon's Texas Civil Statutes), is amended to read as
289	289	follows:
290	290	(a) The Texas Racing Commission is subject to Chapter 325,
291	291	Government Code (Texas Sunset Act). Unless continued in existence
292	292	as provided by that chapter, and except as provided by Subsections
293	293	(b) and (c) of this section, the commission is abolished and this
294	294	Act expires September 1, 2015 [2009].
295	295	SECTION 18. Section 88.521(2), Education Code, is amended
296	296	to read as follows:
297	297	(2) "Director" means the executive director of Texas
298	298	AgriLife Research, formerly known as the Texas Agricultural
299	299	Experiment Station.
300	300	SECTION 19. Sections 88.522(b), (f), and (g), Education
301	301	Code, are amended to read as follows:
302	302	(b) The director shall administer the account through
303	303	established procedures of Texas AgriLife Research, formerly known
304	304	as the Texas Agricultural Experiment Station.
305	305	(f) Not more than 10 percent of the account may be spent each
306	306	year on the cost incurred in the operation or administration of the
307	307	[advisory committee or] account.
308	308	(g) All money received by [the advisory committee or] the
309	309	account under this chapter is subject to Subchapter F, Chapter 404,
310	310	Government Code.
311	311	SECTION 20. Section 88.525, Education Code, is amended by
312	312	adding Subsections (a-1) and (b-1) and amending Subsection (b) to
313	313	read as follows:
314	314	(a-1) In awarding grants under this section, the director
315	315	shall comply with the conflict of interest provisions of The Texas
316	316	A&M University System.
317	317	(b) The [With the advice of the advisory committee, the]
318	318	director shall develop annually a request for proposals for equine
319	319	research grants. Each proposal received may [must] be evaluated by
320	320	a peer review committee appointed by the director and subject
321	321	matter experts as necessary to evaluate the proposal. The peer
322	322	review committee shall consider the applicant's research capacity
323	323	and the relevance and scientific merit of the proposal and make
324	324	recommendations to the director.
325	325	(b-1) The director may award a grant to an applicant who
326	326	proposes to commingle grant money awarded under this section with
327	327	other sources of funding or proposes to conduct research that
328	328	includes equine research.
329	329	SECTION 21. Section 88.526(a), Education Code, is amended
330	330	to read as follows:
331	331	(a) The director shall prepare an annual report on equine
332	332	research funded under this subchapter. The director shall
333	333	distribute the report to the Texas Racing Commission and [the]
334	334	members of the Texas horse racing industry [advisory committee].
335	335	The director shall make copies of the report available to
336	336	interested parties.
337	337	SECTION 22. Section 88.527, Education Code, is amended to
338	338	read as follows:
339	339	Sec. 88.527. CONFERENCE. Texas AgriLife Research [The
340	340	Texas Agricultural Extension Service] shall conduct an annual
341	341	conference on equine research. Money from the equine research
342	342	account shall be used to defray the costs of the conference. The
343	343	conference must be designed to bring to the attention of the Texas
344	344	horse racing industry the latest research results and technological
345	345	developments in equine research. The director shall make the
346	346	report created under Section 88.526 available at the conference.
347	347	SECTION 23. The following sections of the Texas Racing Act
348	348	(Article 179e, Vernon's Texas Civil Statutes) are repealed:
349	349	(1) Section 2.072;
350	350	(2) Section 6.04(b);
351	351	(3) Section 6.06(k);
352	352	(4) Section 6.18(a); and
353	353	(5) Section 7.02(a).
354	354	SECTION 24. The following sections of the Education Code
355	355	are repealed:
356	356	(1) Section 88.521(1);
357	357	(2) Section 88.523;
358	358	(3) Section 88.5231;
359	359	(4) Section 88.5232;
360	360	(5) Section 88.524;
361	361	(6) Section 88.5245; and
362	362	(7) Section 88.525(c).
363	363	SECTION 25. (a) Not later than January 1, 2010, the Texas
364	364	Racing Commission shall determine the expiration date of each
365	365	license issued under the Texas Racing Act (Article 179e, Vernon's
366	366	Texas Civil Statutes).
367	367	(b) Not later than September 1, 2010, the Texas Racing
368	368	Commission shall complete a review of each inactive racetrack
369	369	license as required by Section 6.0601, Texas Racing Act (Article
370	370	179e, Vernon's Texas Civil Statutes), as added by this Act.
371	371	(c) Notwithstanding Section 6.0601, Texas Racing Act
372	372	(Article 179e, Vernon's Texas Civil Statutes), as added by this
373	373	Act, the Texas Racing Commission shall conduct the initial review
374	374	of a racetrack license issued on or after January 1, 2007, by the
375	375	later of September 1, 2011, or the second anniversary of the date of
376	376	issuance.
377	377	(d) The Texas Racing Commission may adjust license renewal
378	378	and review fees pursuant to the commission's authority to adjust
379	379	fees under Section 5.01, Texas Racing Act (Article 179e, Vernon's
380	380	Texas Civil Statutes), and Section 6.0601, Texas Racing Act
381	381	(Article 179e, Vernon's Texas Civil Statutes), as added by this
382	382	Act, to recover any money lost by the change in law made by this Act
383	383	to Section 3.07(e), Texas Racing Act (Article 179e, Vernon's Texas
384	384	Civil Statutes).
385	385	(e) As soon as practicable, the executive director of Texas
386	386	AgriLife Research shall submit a report to the Texas Racing
387	387	Commission as required by Section 88.526, Education Code, as
388	388	amended by this Act.
389	389	SECTION 26. This Act takes effect September 1, 2009.