By: Raymond H.B. No. 2375
A BILL TO BE ENTITLED
AN ACT
relating to the authorization of racetrack extension locations,
providing rulemaking authority to the commission and comptroller,
and providing for administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. All provisions in Sections - through - below are
subject to the following restrictions and limitations:
(a) No new forms of gambling. All other portions of this Act
notwithstanding, all forms of gambling which were illegal on
December 31, 2102, shall remain illegal and prohibited.
(b) No new racetrack licenses created. All other portions of
this Act notwithstanding, all laws, regulations, conditions,
licensing and other restrictions and limitations which were in
place on December 31, 2012 relating to the number of racetracks
shall remain in full force and effect.
(c) No new racetrack locations authorized. All other
portions of this Act notwithstanding, all laws, regulations,
conditions, licensing and other restrictions and limitations which
were in place on December 31, 2012 relating to the locations of
racetracks shall remain in full force and effect.
(d) No authorization of new counties for pari-mutuel
wagering. All other portions of this Act notwithstanding, all laws,
regulations, legal prohibitions, and other restrictions and
limitations which were in place on December 31, 2012 relating to the
counties in which pari-mutuel wagering may not occur shall remain
in full force and effect.
SECTION 2. Section 1.03, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivisions
(17) and (64) and by adding Subdivisions (82), (83) and (84) to read
as follows:
(17) "Enclosure" means all areas of a racing
association's grounds which are contiguous with the surface upon
which live racing is conducted, including the parking area, to
which admission ordinarily can be obtained only on payment of an
admission fee or presentation of official credentials.
(64) "Receiving location" means a licensed racetrack
association in this state that has been allocated live and
simulcast race dates or a racetrack extension in this state or a
facility not located in this state that is authorized to conduct
wagering under the law of the jurisdiction in which it is located.
(82) An "extension" means a facility that is not
physically contiguous with an association's enclosure.
(83) With respect to an extension, "recorded" means
filed with the commission and not rejected by the commission.
(84) "Racetrack extension" means a facility located at
a recorded extension and operated by an association for the purpose
of presenting races for pari-mutuel wagering by simulcast.
SECTION 3. Section 6.091, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivision
(a) to read as follows:
(a) An association shall distribute from the total amount
deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
from each simulcast pari-mutuel pool and each simulcast
cross-species pool and each simulcast racetrack extension pool the
following shares:
(1) an amount equal to one percent of each simulcast
pool as the amount set aside for the state;
(2) an amount equal to 1.25 percent of each simulcast
cross-species pool as the amount set aside for the state;
(3) if the association is a horse racing 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 6.08(f) of this
Act;
(4) if the association is a greyhound 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 rules of the commission adopted to promote
greyhound breeding in this state; and
(5) the remainder as the amount set aside for purses,
expenses, the sending association, and the receiving location
pursuant to a contract approved by the commission between the
sending association and the receiving location.
SECTION 4. Section 11.01, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivision
(a) to read as follows:
(a) The commission shall adopt rules to regulate wagering on
greyhound races and horse races under the system known as
pari-mutuel wagering. Wagering may be conducted only by an
association within its enclosure or at a racetrack extension. A
person may not accept, in person, by telephone, or over the
Internet, a wager for a horse race or greyhound race conducted
inside or outside this state from a person in this state unless the
wager is authorized under this Act.
SECTION 5. Section 11.011, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivision
(f) to read as follows:
(f) Nothing in this Act is to be construed to allow wagering
in Texas on simulcast races at any location other than a racetrack
extension or a racetrack licensed under this Act that has been
granted live race dates by the commission.
SECTION 6. Section 11.04, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivision
(a) to read as follows:
(a) Only a person inside a racetrack extension or the
enclosure where both live and simulcast race meetings are
authorized may wager on the result of a live or simulcast race
presented by the association in accordance with commission rules.
Except as provided by this section, a person may not place, in
person, by telephone, or over the Internet, a wager for a horse race
or greyhound race conducted inside or outside this state. The
commission shall adopt rules to prohibit wagering by employees of
the commission and to regulate wagering by persons licensed under
this Act.
SECTION 7. The Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes), is amended by adding Article 11A to read as
follows:
Article 11A. Racetrack Extensions
Section 11A.01. Subject to the conditions, restrictions,
licensing requirements, and oversight authority set forth in this
Act, an association may operate a racetrack extension. Racetrack
extensions are authorized for the purpose of increasing purse money
and increasing the number of live racing days.
Section 11A.02. Regulatory authority. The powers and
duties of the commission and the powers and duties of the
comptroller regarding the operation of a racetrack extension shall
be identical to those for operations occurring within the
association's enclosure. The commission and the comptroller, in
addition to other powers granted by this Act, shall have the
authority to adopt regulations relating to the operation of
racetrack extensions, provided however that the association's
obligations for licensing, reporting, handling of simulcast
operations, and handling of simulcast wagers shall be at least as
stringent as those in place for operations within the enclosure.
Section 11A.03. Regulatory action and penalties. The
commission's authority to suspend or revoke licenses or
registrations, to enjoin operations, to impose administrative
penalties, or to take any lawful action against violations of this
Act shall apply fully to all acts and omissions occurring at any
racetrack extension. It is not a defense to any commission
enforcement or disciplinary action that an alleged act or omission
occurred outside the association's enclosure.
Section 11A.04. Filing the site plan. An association
wishing to operate a racetrack extension shall file a site plan for
the proposed extension with the commission. Until and including the
90th day after the filing, the commission may reject the site plan
without prejudice. The commission shall not reject the site plan if
the commission has adopted rules for racetrack extensions and if
the site plan conforms with such rules. The association may re-file
a rejected site plan. If the commission does not reject the site
plan before the 91st day, the extension shall be recorded as an
authorized location for conducting pari-mutuel wagering on horse
racing and dog racing by simulcast.
Section 11A.05. Prohibited locations. Associations shall
not file a site plan which proposes an extension in any county in
which it is illegal to locate a racetrack facility.
Section 11A.06. Exclusive locations. Each association
shall have an exclusive zone for racetrack extension locations. The
exclusive zone is a circle with a radius of 50 miles centered on the
association's enclosure.
Section 11A.07. Locations for right of first refusal. Each
association shall have an additional option zone extending 75 miles
beyond the limits of its exclusive zone. An association shall have
the right of first refusal to place a racetrack extension at any
location within its option zone. The option zone shall expire and
cease to exist after December 31, 2015.
Section 11A.08. Invalid site plans; exception. If a site
plan is filed for a proposed extension at a location which would
violate the requirements of this Act, including at a location in a
prohibited county, or in another association's exclusive zone or
option zone, that filing shall be invalid without the need for the
commission to reject it unless the filing also contains a written
agreement under section 11A.10 that is approved by the commission.
Section 11A.09. Resolving conflicts on locations. Other
than a location inside a prohibited county, if a site plan would be
invalid under section 11A.08, the associations involved may resolve
the siting conflict by a written agreement to be filed with and
approved by the commission.
Section 11A.10. Live racing requirement. On each January 1
all operations at a racetrack extension shall cease for one full
calendar year unless the association has been granted live race
dates to occur within that calendar year.
11A.11. Transfer of race dates and purses. If an
association is unable to hold live races within its enclosure, then
the live race dates which have been scheduled for that association
shall be transferred to another racetrack facility at which the
live races will be held. If an association's race dates are
transferred, the association's purse money shall also be
transferred. The transferred race dates may be allocated to more
than one destination, and the purse money may be distributed in ways
other than exact proportionality to the fraction of race dates. A
written agreement among the transferring association, the
destination association or associations, and the horsemen's
organizations may be submitted to the commission specifying the
terms and conditions of the transfers. The commission shall approve
or reject any such written agreement. In the absence of an
agreement, or if the agreement is rejected, the commission shall
determine the terms and conditions of the transfers.
11A.12. Increasing the number of live race dates. To
implement the purpose set forth in section 11A.01, the commission
shall increase the number of live race dates granted to an
association. The increase in live race dates shall be in proportion
to the increase in purses resulting from operations at racetrack
extensions. The commission shall adopt rules relating to the
methods and standards to be used in determining the additional live
race dates. A written agreement among the association and the
horsemen's organizations may be submitted to the commission
regarding live race dates and purses. The commission shall approve
or reject any such written agreement. In the absence of an
agreement, or if the agreement is rejected, the commission shall
determine the live race dates and purses.
SECTION 8. This Act takes effect September 1, 2013.